Skip to content

Separately Managed Accounts and Model Accounts

Investors can access the Energy Income Partners Energy Infrastructure and MLP Income Strategy (EIP SMA) under the supervision of a financial advisor via several approved platforms.

The investment objective of EIP SMA is to seek to generate above-average returns and yield by investing in the securities of noncyclical energy infrastructure companies in the pipeline, electric power and renewable development sectors.

Portfolio Overview

EIP seeks to include companies in this portfolio that operate energy infrastructure such as pipelines and storage facilities with stable fee-for-service revenues, conservative balance sheets and superior management teams. Commodity exposure is sought to be minimized through stock selection and portfolio construction. The vast majority of the portfolio is generally invested in companies that pay out most or all of their free cash flow every quarter. These cash flows are derived from either regulated tariffs or long-term contracts that are generally not linked to commodity prices, yet often have price escalators linked to inflation or actual costs.

Investment Philosophy

EIP believes the best risk-adjusted returns in commodity businesses come from companies that make steady low double-digit returns for providing a mundane service. Imposing capital discipline on these companies through a forced payout of most of their free cash flow keeps income coming to their investors.

EIP believes that dividends provide a good head start on total return while helping reduce the volatility and correlation of total return to other parts of client portfolios.

Read more about our Approach

* Energy Income Partners, LLC (“EIP”) has entered into a contractual agreement with First Trust Portfolios L.P. (”First Trust”) to solicit clients for EIP. EIP pays 30% of its management fee to First Trust with respect to each solicited client for the first five years from the date such solicited client becomes a client of EIP, and 20% each year thereafter. Since EIP’s management fees are based upon a percentage of assets under management, the more assets under management, the higher fee income to both EIP and First Trust. In addition, due to such compensation, First Trust has an incentive to recommend advisory services of EIP, resulting in a material conflict of interest which should be considered when making a decision to engage EIP. First Trust will not be involved in the provision of services by EIP. First Trust Capital Partners, LLC, an affiliate First Trust Portfolios, LP has, through a wholly owned subsidiary, an ownership interest in EIP and its affiliate EIP Partners, LLC. Investors are encouraged to read the respective Fund’s offering documents for the terms and risks associated with investing in the Fund. Investors are also encouraged to read the Energy Income Partners, LLC’s (EIP) ADV Parts I and II for further information on EIP, including risks factors associated with the strategy.

Join Our Newsletter

    Back To Top
    Energy Income Partners, LLC.