Eagle Energy Infrastructure Fund Class A · NASDAQ:EGLAX
Eagle Energy Infrastructure Fund Class A — Eagle MLP Strategy Fund — Investor Presentation (June 2016)
37 slides from Eagle Energy Infrastructure Fund Class A's investor presentation, Jun 30, 2016
Slide 1: Eagle MLP Strategy Fund
Sy —_) EAGLE MLP STRATEGY FUND PRINCETON FUND ADVISORS, LLC 6537-NLD-7/29/2016
Slide 2: Eagle MLP Strategy Fund Risk Disclosures
Eagle MLP Strategy Fund Risk Disclosures Credit Risk: There is a risk that note issuers will not make payments on securities held by the Fund, resulting in losses to the Fund. In addition, the credit quality of securities held by the Fund may be lowered if an issuer's financial condition changes. Di
Slide 3: Eagle MLP Strategy Fund Risk Disclosures
Eagle MLP Strategy Fund Risk Disclosures Market Risk: Overall securities market risks may affect the value of individual instruments in which the Fund invests. Factors such as domestic and foreign economic growth and market conditions, interest rate levels, and political events affect the securities
Slide 4: Risk and Prospectus Disclosures
Eagle MLP Strategy Fund Risk and Prospectus Disclosures demand for crude oil, natural gas and refined petroleum products resulting from a recession or an increase in market price or higher taxes; Depletion of the natural gas reserves or other commodities if not replaced; Changes in the regulatory en
Slide 5: Table of Contents
Eagle MLP Strategy Fund Table of Contents 1. Fund Highlights 2. MLP Overview 3. The Eagle MLP Investment Strategy 4. MLP Investment Performance 5. Management Team 6. Fund Information 7. Glossary 5
Slide 6: Eagle MLP Strategy Fund Highlights
Eagle MLP Strategy Fund Highlights • The Eagle MLP Strategy Fund (the “Fund”) aims to provide access to high current income and the total return opportunity associated with Master Limited Partnerships (“MLPs”) through a diversified and actively managed portfolio of MLP and MLP-related securities. •
Slide 7: MLP Overview
MLP Overview
Slide 8: The Energy Supply Chain
The Energy Supply Chain • MLPs are broadly categorized in three segments: Upstream, Midstream and Downstream. • The Fund focuses primarily on the Midstream segment. Fund Focus 8
Slide 9: Midstream Energy Infrastructure
Midstream Energy Infrastructure • Midstream MLPs typically do not own the energy commodity they transport and Toll Road Business Model store, but collect revenue to act as a “toll road” or storage facility Free Cash Flow • History of cash flows paid to investors • Potential to grow cash flow through
Slide 10: Accessing MLPs and Energy Infrastructure
Accessing MLPs and Energy Infrastructure • Master Limited Partnerships (“MLPs”) are Limited Partnerships that are publicly traded and listed on major stock exchanges such as the NYSE. These Publicly Traded Partnerships (“PTPs”) are more commonly known as Master Limited Partnerships or MLPs and are h
Slide 11: Energy Infrastructure Market Overview
Energy Infrastructure Market Overview • Since 6/1/2006 the Alerian MLP Index has outperformed the S&P 500 TR with a cumulative gain of 144% versus a gain of 105% for the S&P 500 TR, and 9.2% versus a gain of 7.4% on a compounded annualized basis.(1) • The total returns of the Alerian MLP Index are,
Slide 12: Oil & Gas Basins and Prospective Shale Developments
Oil & Gas Basins and Prospective Shale Developments 12
Slide 13: The MLP Market Today
The MLP Market Today We believe MLPs remain attractive for three main reasons: 1. Valuations • Relative to other yield alternatives: REITS, Utilities, Corporate Bonds, US Treasuries and Municipal Bonds. 2. Potential Cash Flow • We believe the long-term opportunities for midstream energy infrastructu
Slide 14: The Eagle MLP Investment Strategy
The Eagle MLP Investment Strategy
Slide 15: Comparing the Eagle MLP Strategy Fund
Comparing the Eagle MLP Strategy Fund Compared to MLP Separate Accounts • 1099 vs. multiple K-1s • Accommodate small minimum purchasers • No UBTI and potentially appropriate for tax-exempt investors (Endowment/Foundation, IRA, 401k) • No state tax filings Compared to Existing MLP Closed- & Open-End
Slide 16: The "Tax Drag"
The “Tax Drag” • Mutual funds typically qualify as regulated investment companies (“RICs”) under Subchapter M of the Internal Revenue Code of 1986 (as amended). • If a mutual fund qualifies as a RIC, the fund should not be subject to federal income tax on its net investment income or net capital gai
Slide 17: Targeted Portfolio Composition
Targeted Portfolio Composition • MLPs That Issue K-1s – are companies that own energy infrastructure assets and are structured as publicly traded MLP partnerships (PTPs). These partnerships issue K-1s to U.S. Institutional Shares tax payers. • Portfolio Weight: 5-10% • MLP Institutional Shares – are
Slide 18: Key Attributes of Current MLP Investment Options
Key Attributes of Current MLP Investment Options Passive Strategies Active Strategies Exchange Traded Exchange Traded Closed- or Open- Private Separate Eagle MLP Note Fund End Funds Partnership Account Strategy Fund Liquidity Daily Daily Daily Quarterly Daily Daily Tax Reporting 1099 1099 1099 Conso
Slide 19: Eagle MLP Strategy Fund Profile
Eagle MLP Strategy Fund Profile Portfolio of MLPs and MLP-Related Securities Our goal is to: • Provide investors access to the MLP asset class through what we believe to be a diversified portfolio of primarily midstream companies • Focus on businesses that we believe can generate consistent distribu
Slide 20: Active Management
Active Management We Believe MLPs Are Attractive For Active Management We believe: • Limited institutional interest and dominance by retail investors lead to inefficiencies in MLP assets. • Professional management using internally generated independent research can have significant value in this inv
Slide 21: Focus on Distribution Growth
Focus on Distribution Growth Future Distribution Growers = MLPs That Grew Distributions To Limited Partners The Most In The Next Year Highest Distribution Growers Source: Ned Davis Research The performance quoted is for informational purposes only and is not intended as a solicitation to buy or sell
Slide 22: MLP Investment Performance
MILP Investment Performance
Slide 23: MLP Historical Performance Data
MLP Historical Performance Data(1) • Income – 7.1% distribution yield(1) • Historical Total Return(2) – 9.2% annualized return from 6/1/06 through 06/30/16(3) • Historical Risk-Adjusted Return – Sharpe Ratio(2) of 0.38 (1) • Tax Efficiency – MLP distributions are largely a return of capital and thus
Slide 24: Asset Class Performance Comparisons
Asset Class Performance Comparisons June 2006 – June 2016 Hypothetical Annualized Value of Correlation to % Positive Standard Return Current Yield $1,000 MLPs Sharpe Ratio Months Deviation MLPs 9.2% 7.1% $ 2,436 1.00 0.38 58% 19.1% REITs 7.9% 4.0% $ 2,158 0.32 0.23 61% 25.3% Utilities 10.0% 3.1% $ 2
Slide 25: Total Returns vs. Equities and Bonds
Total Returns vs. Equities and Bonds Growth of a hypothetical $1,000 invested – June 1, 2006 to June 30, 2016 $4,000 $3,500 $3,000 Alerian MLP Index $2,435.59 $2,500 NAREIT All Equity REITS $2,000 $2,158.47 S&P 500 $1,500 $2,049.26 Barclays Agg $1,000 $1,653.22 $500 $- 06/06 06/07 06/08 06/09 06/10
Slide 26: Potential Diversification Benefits
Potential Diversification Benefits Adding MLPs to a Traditional Equity/Fixed Income Portfolio – June 1, 2006 to June 30, 2016 9% 50%|20%|30% 40%|30%|30% Annualized Return 30%|40%|30% 20%|50%|30% 10%|60%|30% 0%|70%|30% MLPS %|Equities %|Fixed Income % 6% 8% 10% 12% 14% Risk (Annualized Standard Devia
Slide 27: Current Yield Comparison
Current Yield Comparison 9% 8% 7.12% 7% 6% 5% 4.03% MLPs have historically been a source of 4% 3.42% income for investors 3.07% 3% MLPs may receive favorable tax treatment 2% 1.61% 1.47% of distributions to investors 1% 0% MLPs REITS Baa Utilities Municipal 10 Year Treasury For index and statist
Slide 28: History of Income and Growth
History of Income and Growth History of Alerian MLP Index distribution growth (June 1, 2006 to June 30, 2016) $500 $400 $300 Unit Price Return $200 $100 Aggregate Distributions $0 -$100 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 For index and statistical definitions and index-specific ri
Slide 29: Management Team
Management Team
Slide 30: Eagle MLP Strategy Fund Management Team
Eagle MLP Strategy Fund Management Team Eagle Global Advisors was founded in 1996 and located in Houston, TX, the knowledge center for both Energy and MLPs. Eagle is an SEC registered investment advisor and manages approximately $4.5 billion of assets comprised of public funds, hedge funds and separ
Slide 31: Eagle Global Investment Management Committee
Eagle Global Investment Management Committee EDWARD R. ALLEN III, Ph.D., CFA, Senior Partner Mr. Allen is a founder and Senior Partner of Eagle since 1996. He serves on the MLP portfolio management team and is a member of the MLP Investment committee. Mr. Allen is also a member of the Domestic and I
Slide 32: Princeton Fund Advisors Management Team
Princeton Fund Advisors Management Team GREG D. ANDERSON, Managing Member Prior to founding Princeton Fund Advisors, LLC and its affiliated entities, Mr. Anderson was a Senior Vice President and Managing Director of Investment Manager Search, Evaluation, and Due Diligence at Portfolio Management Con
Slide 33: Fund Information
Fund Information
Slide 34: Eagle MLP Strategy Fund Performance
Eagle MLP Strategy Fund Performance Performance Summary as of 06/30/2016 Share Class Q2 2016 YTD One Year Three Year Since Inception* I Share 25.42% 19.53% -29.34% -7.73% -1.84% A Share (NAV) 25.24% 19.23% -29.59% -8.00% -2.12% A Share (Max Load) 18.02% 12.37% -33.64% -9.81% -3.63% C Share 25.12% 19
Slide 35: Eagle MLP Strategy Fund Facts
Eagle MLP Strategy Fund Facts AIP/AWP & Gross Investment Redemption Net Expense Class Inception Share Class Ticker CUSIP Subsequent Expense 12B-1 Fee Minimum Fee Ratio Structure Date Minimum Ratio A Share EGLAX 66537Y322 $2,500 $100 None 1.72% 1.65% 5.75% Load* 0.25% 9/14/2012 I Share EGLIX 66537Y31
Slide 36: Glossary
Glossary Index Definitions and Associated Risks: MLPs are represented by the total return of the Alerian MLP Index, a composite index of the 50 most prominent energy master limited partnerships. Investments in MLPs involve risks different from those of investing in common stock, including limited co
Slide 37: Glossary
Glossary Definitions: Alpha: A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha. Ann
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