Eagle Energy Infrastructure Fund Class A · NASDAQ:EGLAX
Eagle Energy Infrastructure Fund Class A — Eagle MLP Strategy Fund — Investor Presentation (December 2023)
35 slides from Eagle Energy Infrastructure Fund Class A's investor presentation, Dec 31, 2023
Slide 1: Eagle MLP Strategy Fund
REFINITIV LIPPER FUND AWARDS 2023 WINNER UNITED STATES 7 = Ca —_) EAGLE MLP STRATEGY FUND =f PRINCETON FUND EAGLE GL&BAL ADVISORS / ADVISORS, LLC
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: An Award Winning Fund
An Award Winning Fund • The Eagle MLP Strategy Fund has been recognized as the best Energy MLP Fund (out of 23 funds) over 3 years at the U.S. Refinitiv Lipper Fund Awards 2023. • The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering
Slide 6: 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 6
Slide 7: 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”) and Midstream Energy Securities through a diversified and actively managed portfolio of ML
Slide 8: Midstream Energy Overview
Midstream Energy Overview
Slide 9: The Energy Supply Chain
The Energy Supply Chain • Energy Companies are broadly categorized in three segments: Upstream, Midstream and Downstream. • The Fund focuses primarily on the Midstream segment. Fund Focus 9
Slide 10: Midstream Energy Infrastructure
Midstream Energy Infrastructure • Midstream MLPs typically do not own the energy commodity they transport and Fee-Bases Business • store, but collect revenue to act as a “toll road” or storage facility Free Cash Flow • History of generating free cash flows that is paid to investors • MLPs and Midstr
Slide 11: 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 12: Macro Environment
Macro Environment • Energy demand has recovered to pre-pandemic levels while supply has not, leading to increased energy prices worldwide. • The global community has underinvested in traditional energy for nearly a decade, a risk shrouded by the pandemic that led to widespread energy complacency. •
Slide 13: The MLP and Midstream Outlook
The MLP and Midstream Outlook We believe MLPs are attractive for several reasons: • Attractive free cash flow yields provide for accelerated deleveraging and increased adoption of share buy-back programs to return value to equity holders. • High distribution coverage supports sustained and potential
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) Compared to Existing MLP Closed- & Open-End Mutual Funds • No corpo
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 • Portfolio Weight: 25% • Tax on Distributions: • MLPs That Issue K-1s – are companies that own Largely return of capital energy infrastructure assets and are structured as publicly traded partnerships (PTPs). These partnerships issue K-1s to U.S.
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 Midstream Energy asset class through what we believe to be a diversified portfolio of primarily MLPs and midstream companies • Focus on businesses that we believe can genera
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: MLP and Midstream Investment Performance
MLP and Midstream Investment Performance
Slide 22: MLP Historical Performance Data
MLP Historical Performance Data(1) • Income – 7.2% distribution yield(1) • Historical Total Return(2): 7.6% annualized return from 06/1/06 through 12/31/23(3) • Tax Efficiency – MLP distributions are largely a return of capital and thus tax deferred • Low Correlation(2) • 0.58 to the S&P 500 TR • 0.
Slide 23: Total Returns vs. Equities and Bonds
Total Returns vs. Equities and Bonds Growth of a hypothetical $1,000 invested – June 1, 2006 to December 31, 2023 $4,000 Alerian MLP Index $3,500 $3,631.69 $3,000 NAREIT All Equity REITS $3,041.08 $2,500 $2,000 Barclays Agg $1,500 $1,761.62 $1,000 $500 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 24: Current Yield Comparison
Current Yield Comparison 10% 9% 8% 7.2% 7% 6% 5.3% ▪ MLP yield advantage remains high in a low- income world. 5% 4.0% 4.0% 3.9% ▪ Prior distribution cuts have eroded investor 4% 3.2% confidence in payouts. 3% ▪ Current distribution coverage ratio is 1.8X 2% versus 1.2X in 2015. 1% 0% MLPs Baa Utilit
Slide 25: Real Assets And Inflation
Real Assets And Inflation Midstream Has a History of Better Performance During Inflationary Periods. Annual Changes to CPI, Alerian MLP Index, S&P 500 Annual Change in Annual Change in Annual Change in Period CPI AMZX S&P 500 Average 1996-2023 2.51% 14.04% 11.25% Average During Low Inflation* 1.64%
Slide 26: Management Team
Management Team
Slide 27: 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 $1.9 billion of assets (as of 9/30/2023) comprised of public funds, hed
Slide 28: 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 29: Eagle Global Investment Management Committee
Eagle Global Investment Management Committee ALEX MEIER, Co-Portfolio Manager, MLP Strategies Alex serves as Co-Portfolio Manager of the Midstream/MLP strategies and is a member of the MLP investment committee. Prior to joining Eagle in April 2013, Alex was employed by Waterfront Capital Partners as
Slide 30: 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 31: Fund Information
Fund Information
Slide 32: Performance
Eagle MLP Strategy Fund Performance Performance Summary as of 12/31/2023 Since Share Class Q4 2023 YTD One Year Five Year Ten Year Inception* I Share 4.74% 16.07% 16.07% 13.94% 1.51% 3.86% A Share (NAV) 4.54% 15.60% 15.60% 13.65% 1.26% 3.59% A Share (Max Load) -1.54% 8.96% 8.96% 12.30% 0.66% 3.05% C
Slide 33: 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 1.98% 1.65% 5.75% Load* 0.25% 9/14/2012 I Share EGLIX 66537Y31
Slide 34: 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 35: 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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