Separately Managed Accounts - Product Information
Income-Equity Strategy is a diversified, dividend-growth equity portfolio that seeks high current dividend income plus growth of income and principal. The strategy targets compounding income—not style, sector, or asset allocation—as the main driver of portfolio selection. The investment process considers both the financial and environmental, social and governance (ESG) profile of each candidate. Stocks are primarily US-traded, multi-cap companies, including ADRs and Master Limited Partnerships (MLPs).
Morningstar Sustainability Rating*
Category - US Equity Large Cap Value portfolios
Focus - Dividends
Inception Date - 1997
ESG Managed  
Materials:
Quarterly Report
Income-Equity Strategy (No MLPs) is a version of our Income-Equity Strategy that includes only securities that do not generate K-1 reports.
Morningstar Sustainability Rating**
Category - US Equity Large Cap Value
Focus - Dividends
Inception Date - 2004
ESG Managed  
Materials:
Quarterly Report
Drill Bit to Burner Tip® comprises companies exposed to all stages of the North American energy revolution, such as producers, transporters, processors, distributors, enablers, and energy-intensive industrial companies poised to benefit from newly accessible supplies. The portfolio also includes companies tasked with improving the environmental health, safety, and efficiency of US shale oil and gas drilling.
Focus - Infrastructure
Inception Date - 2011
Drill Bit to Burner Tip® (No K-1s) is a version of our Drill Bit to Burner Tip® strategy that includes only securities that do not generate K-1 reports.
Focus - Infrastructure
Inception Date - 2013
Materials:
Infrastructure invests in companies that own and operate critical infrastructure, such as utilities, communications, energy infrastructure, and transportation companies, as well as enablers whose products and services help to facilitate the infrastructure build-out. Stock selection is biased toward monopolistic, essential services companies that are financially sound, attractive yield growers experiencing favorable secular tailwinds, and have strong environmental, social, and governance (ESG) practices and below-average risk profiles.
Focus - Infrastructure
Inception Date - 1991
ESG Managed  
MLP Strategy invests primarily in midstream energy infrastructure companies that generate cash flow from the gathering, processing, transportation, and storage of natural gas, crude oil, and refined petroleum products. The strategy is composed of Master Limited Partnerships (MLPs) and C-corporations. Our goal is to construct a portfolio of high quality companies that provides attractive current income along with growth of income.
Focus - Infrastructure
Inception Date - 2009
Materials:
Quarterly Report
Utilities Plus focuses on the stability and dynamic growth often available in utility and utility-like essential services companies. Stock selection is biased toward utilities with visible capex programs for rate base growth, supportive regulatory environment, healthy and growing dividend, and consolidation potential. The strategy has a long track record of owning companies that have been acquired, and we specifically target companies that appear to be strong acquisition candidates.
Focus - Infrastructure
Inception Date - 1999
Materials:
Quarterly Report

* Income-Equity Strategy (with MLPs) Morningstar Sustainability Rating of 4 globes out of US Equity Large Cap Value portfolios, as of September 30, 2020 (100% of AUM).
** Income-Equity Strategy (No MLPs) Morningstar Sustainability Rating of 5 globes out of US Equity Large Cap Value portfolios, as of September 30, 2020 (100% of AUM).

Opinions and estimates offered constitute Miller/Howard Investments' judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. Nothing stated herein, including the mention of specific company names, should be construed as a recommendation to buy, hold, or sell any security, sector, or MLPs in general. To receive a list of all recommendations for the previous year, please email compliance@mhinvest.com. All investments carry a certain degree of risk, including possible loss of principal. It is important to note that there are risks inherent in any investment and there can be no assurance that any asset class will provide positive performance over any period of time. The material may also contain forward-looking statements that involve risk and uncertainty, and there is no guarantee they will come to pass.

Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer’s board of directors, and the amount of any dividend may vary over time. Dividend yield is one component of performance and should not be the only consideration for investment.

The information and analyses contained herein are not intended as tax, legal, or investment advice and may not be appropriate for your specific circumstances; accordingly, you should consult your own tax, legal, investment, or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such appropriateness. Any investment returns — past, hypothetical, or otherwise — are not indicative of future performance.

Past performance does not guarantee future results.

Risk Factors to Consider When Investing in Master Limited Partnerships (MLPs)

  • Cash distributions are not guaranteed and may fluctuate with the MLP's operating or business performance.
  • MLPs have a General Partner. Unit holders will have limited voting rights and do not own an interest in, vote with, or control the General Partner. The General Partner often cannot be removed without its own consent, and the General Partner has conflicts of interest and limited fiduciary responsibilities, which may permit it to favor its own interests to the detriment of unit holders.
  • The MLP may issue additional common units, diluting existing unit holders' interests.
  • Unit holders may be required to pay taxes on income from the MLP even if they do not receive cash distributions.
  • The IRS could reclassify the MLP as a taxable entity, which could reduce the cash available for distribution to unit holders.
  • If at any time the GP owns 85% or more of the issued and outstanding limited partner interests, the GP will have the right to purchase all of the limited partnership interests not held by the GP at a price that may be undesirable.

Tax Considerations of MLPs
The tax treatment for investors in MLPs is different from that of an investment in stock, including: (a) the investor's share of the MLP's income, deductions, and expenses are reported on Schedule K-1, not Form 1099; (b) because of the possibility of unrelated business taxable income, charitable remainder trusts should not invest in this strategy, and other nontaxable investors (such as ERISA and IRA accounts) should carefully consider whether to invest in this strategy; (c) investors may have to file income tax returns in states in which the MLP's do business; and (d) MLP tax information is sent directly from the partnership, which generally has until April 15th to provide this information. You should discuss these and any other tax implications with your tax advisor.

Morningstar® Sustainability Rating™
The Morningstar® Sustainability Rating™ is intended to measure how well the issuing companies of the securities within a fund's portfolio are managing their environmental, social, and governance ("ESG") risks and opportunities relative to the fund's Morningstar® category peers. The Morningstar Sustainability Rating™ calculation is a two-step process. First, each fund with at least 50% of assets covered by a company-level ESG score from Sustainalytics receives a Morningstar Portfolio Sustainability Score.™

The Morningstar® Portfolio Sustainability Score™ is an asset-weighted average of normalized company-level ESG scores with deductions made for controversial incidents by the issuing companies, such as environmental accidents, fraud, or discriminatory behavior.

The Morningstar® Sustainability Rating™ is then assigned to all scored funds within Morningstar® Categories in which at least ten (10) funds receive a Portfolio Sustainability Score and is determined by each fund's rank within the following distribution:

  • High (highest 10%)
  • Above Average (next 22.5%)
  • Average (next 35%)
  • Below Average (next 22.5%) and
  • Low (lowest 10%)

The Morningstar Sustainability Rating™ is depicted by globe icons where High equals 5 globes and Low equals 1 globe.

A Sustainability Rating is assigned to any fund that has more than half of its underlying assets rated by Sustainalytics and is within a Morningstar Category with at least 10 scored funds; therefore, the rating it is not limited to funds with explicit sustainable or responsible investment mandates. Morningstar updates its Sustainability Ratings monthly. Portfolios receive a Morningstar Portfolio Sustainability Score and Sustainability Rating one month and six business days after their reported as-of date based on the most recent portfolio. As part of the evaluation process, Morningstar uses Sustainalytics' ESG scores from the same month as the portfolio as-of date.

Please visit http://corporate1.morningstar.com/SustainableInvesting/ for more detailed information about the Morningstar Sustainability Rating™ and its calculation.

Sustainability Score and Sustainability Rating as of September 30, 2020. Sustainalytics provides company-level analysis used in the calculation of Morningstar's® Sustainability Score. Sustainability Mandate information is derived from the fund prospectus.

Sustainalytics is an independent ESG and corporate governance research, ratings, and analysis firm and is not an affiliated company of Morningstar, Inc.

© 2020 Morningstar® All rights reserved. The information contained herein: (1) is proprietary to Morningstar® and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar® nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

© 2021 Miller/Howard Investments.

DISCLOSURE

* Income-Equity Strategy (with MLPs) Morningstar Sustainability Rating of 4 globes out of US Equity Large Cap Value portfolios, as of September 30, 2020 (100% of AUM).
** Income-Equity Strategy (No MLPs) Morningstar Sustainability Rating of 5 globes out of US Equity Large Cap Value portfolios, as of September 30, 2020 (100% of AUM).

Opinions and estimates offered constitute Miller/Howard Investments' judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. Nothing stated herein, including the mention of specific company names, should be construed as a recommendation to buy, hold, or sell any security, sector, or MLPs in general. To receive a list of all recommendations for the previous year, please email compliance@mhinvest.com. All investments carry a certain degree of risk, including possible loss of principal. It is important to note that there are risks inherent in any investment and there can be no assurance that any asset class will provide positive performance over any period of time. The material may also contain forward-looking statements that involve risk and uncertainty, and there is no guarantee they will come to pass.

Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer’s board of directors, and the amount of any dividend may vary over time. Dividend yield is one component of performance and should not be the only consideration for investment.

The information and analyses contained herein are not intended as tax, legal, or investment advice and may not be appropriate for your specific circumstances; accordingly, you should consult your own tax, legal, investment, or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such appropriateness. Any investment returns — past, hypothetical, or otherwise — are not indicative of future performance.

Past performance does not guarantee future results.

Risk Factors to Consider When Investing in Master Limited Partnerships (MLPs)

  • Cash distributions are not guaranteed and may fluctuate with the MLP's operating or business performance.
  • MLPs have a General Partner. Unit holders will have limited voting rights and do not own an interest in, vote with, or control the General Partner. The General Partner often cannot be removed without its own consent, and the General Partner has conflicts of interest and limited fiduciary responsibilities, which may permit it to favor its own interests to the detriment of unit holders.
  • The MLP may issue additional common units, diluting existing unit holders' interests.
  • Unit holders may be required to pay taxes on income from the MLP even if they do not receive cash distributions.
  • The IRS could reclassify the MLP as a taxable entity, which could reduce the cash available for distribution to unit holders.
  • If at any time the GP owns 85% or more of the issued and outstanding limited partner interests, the GP will have the right to purchase all of the limited partnership interests not held by the GP at a price that may be undesirable.

Tax Considerations of MLPs
The tax treatment for investors in MLPs is different from that of an investment in stock, including: (a) the investor's share of the MLP's income, deductions, and expenses are reported on Schedule K-1, not Form 1099; (b) because of the possibility of unrelated business taxable income, charitable remainder trusts should not invest in this strategy, and other nontaxable investors (such as ERISA and IRA accounts) should carefully consider whether to invest in this strategy; (c) investors may have to file income tax returns in states in which the MLP's do business; and (d) MLP tax information is sent directly from the partnership, which generally has until April 15th to provide this information. You should discuss these and any other tax implications with your tax advisor.

Morningstar® Sustainability Rating™
The Morningstar® Sustainability Rating™ is intended to measure how well the issuing companies of the securities within a fund's portfolio are managing their environmental, social, and governance ("ESG") risks and opportunities relative to the fund's Morningstar® category peers. The Morningstar Sustainability Rating™ calculation is a two-step process. First, each fund with at least 50% of assets covered by a company-level ESG score from Sustainalytics receives a Morningstar Portfolio Sustainability Score.™

The Morningstar® Portfolio Sustainability Score™ is an asset-weighted average of normalized company-level ESG scores with deductions made for controversial incidents by the issuing companies, such as environmental accidents, fraud, or discriminatory behavior.

The Morningstar® Sustainability Rating™ is then assigned to all scored funds within Morningstar® Categories in which at least ten (10) funds receive a Portfolio Sustainability Score and is determined by each fund's rank within the following distribution:

  • High (highest 10%)
  • Above Average (next 22.5%)
  • Average (next 35%)
  • Below Average (next 22.5%) and
  • Low (lowest 10%)

The Morningstar Sustainability Rating™ is depicted by globe icons where High equals 5 globes and Low equals 1 globe.

A Sustainability Rating is assigned to any fund that has more than half of its underlying assets rated by Sustainalytics and is within a Morningstar Category with at least 10 scored funds; therefore, the rating it is not limited to funds with explicit sustainable or responsible investment mandates. Morningstar updates its Sustainability Ratings monthly. Portfolios receive a Morningstar Portfolio Sustainability Score and Sustainability Rating one month and six business days after their reported as-of date based on the most recent portfolio. As part of the evaluation process, Morningstar uses Sustainalytics' ESG scores from the same month as the portfolio as-of date.

Please visit http://corporate1.morningstar.com/SustainableInvesting/ for more detailed information about the Morningstar Sustainability Rating™ and its calculation.

Sustainability Score and Sustainability Rating as of September 30, 2020. Sustainalytics provides company-level analysis used in the calculation of Morningstar's® Sustainability Score. Sustainability Mandate information is derived from the fund prospectus.

Sustainalytics is an independent ESG and corporate governance research, ratings, and analysis firm and is not an affiliated company of Morningstar, Inc.

© 2020 Morningstar® All rights reserved. The information contained herein: (1) is proprietary to Morningstar® and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar® nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

© 2021 Miller/Howard Investments.

Contact Us
Privacy Policy
Disclosures
Cookies