Conning Sees Continued Interest in Mid-Stream MLPs Given Long-Term Growth Opportunities

November 14, 2016


Conning Sees Continued Interest in Mid-Stream MLPs Given Long-Term Growth Opportunities

Conning Performs in Top Quartile of eVestment Universe for MLP Equity Products

HARTFORD, CT – November 14, 2016 –According to leading global investment management firm Conning, institutional investors, including insurers and pensions, continue to increase allocations to Master Limited Partnership (MLP) strategies in their search for yield in the current low interest rate environment.

According to Marcus McGregor, MLP Investment Strategist at Conning, “Over the past three years institutional ownership of large cap MLPs increased 60%.2 Despite the ongoing unprecedented volatility in commodity prices and still relatively high capital costs for MLPs, we maintain a favorable long-term fundamental outlook on midstream MLPs as we reiterate visible North American energy infrastructure needs over the next couple of decades.” In an April 2016 study, the INGAA Foundation, Inc. indicated that $546 billion in total investment will be needed for all North American Midstream Infrastructure through 2035. Additionally, roughly 57% of the total investment in the most-likely outlook will be earmarked for natural gas infrastructure.

Healthy balance sheets, a lack of distribution cuts, and the ability to raise substantial capital are among the key factors supporting Conning’s positive outlook on high quality midstream MLPs. Moreover, based on recent improvements in midstream MLP valuations, Conning believes that many investors may be focused on potential growth opportunities in the space rather than near-term movements in commodity prices. Other factors that have been attracting investors to midstream MLPs include their mostly fee-based revenue streams and predictable cash flows.

McGregor added, “We continue to see value in high quality midstream MLPs – not only from a market point of view but more importantly as a means for further portfolio diversification, as well as their potential for capital appreciation, high levels of taxdeferred distributions and after-tax yields.”

Since launched in 2013, Conning’s MLP investment strategy has consistently outperformed the Alerian MLP Index by 518 basis points annually (as of September 30, 2016). Additionally, Conning’s three-year risk-adjusted return, as measured by its Information Ratio, ranked in the top quartile of the eVestment Alliance MLP universe ending September 30, 2016. 1

ABOUT CONNING®

Conning (www.conning.com) is a leading global investment management firm with approximately $120 billion in global assets under management as of September 30, 2016.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, awardwinning risk modeling software, and industry research. Founded in 1912, Conning has offices in Boston, Cologne, Hartford, Hong Kong, London, New York, and Tokyo.


As of September 30, 2016, represents the combined global assets under management for the affiliated firms under Conning Holding Co. Ltd., and Cathay Securities Investment Trust Co., Ltd. ("SITE"). SITE reports internally into Conning Asia Pacific Limited but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning entities.

1 eVestment and its affiliated entities (collectively, “eVestment”) collect information directly from investment management firms and other sources believed to be reliable; however, eVestment does not guarantee or warrant the accuracy, timeliness, or completeness of the information provided and is not responsible for any errors or omissions. Performance results may be provided with additional disclosures available on eVestment’s systems and other important considerations such as fees that may be applicable. Not for general distribution. * All categories not necessarily included; Totals may not equal 100%. Copyright 2011-2016 eVestment Alliance, LLC. All Rights Reserved.

2 © Bloomberg 2013-2016.

All investment performance information included within this material is historical. Past performance is not indicative of future results. Any tax related information contained within this presentation is for informational purposes only and should not be considered tax advice. You should consult a tax professional with any questions.

Conning, Inc., Goodwin Capital Advisers, Inc., Conning Investment Products, Inc., a FINRA-registered broker dealer, Conning Asset Management Limited, and Conning Asia Pacific Limited are all direct or indirect subsidiaries of Conning Holdings Limited (collectively, “Conning”) which is one of the family of companies owned by Cathay Financial Holding Co., Ltd., a Taiwan-based company. Conning has offices in Hartford, New York, London, Cologne, Hong Kong and Tokyo.

Conning, Inc., Conning Investment Products, Inc., and Goodwin Capital Advisers, Inc. are registered with the Securities and Exchange Commission (“SEC”) under the Investment Advisers Act of 1940 and have noticed other jurisdictions they are conducting securities advisory business when required by law. In any other jurisdictions where they have not provided notice and are not exempt or excluded from those laws, they cannot transact business as an investment adviser and may not be able to respond to individual inquiries if the response could potentially lead to a transaction in securities.

Conning Investment Products, Inc. is also registered with the Ontario Securities Commission. Conning Asset Management Limited is Authorised and regulated by the United Kingdom's Financial Conduct Authority (FCA#189316), and Cathay Conning Asset Management Limited is regulated by Hong Kong’s Securities and Futures Commission for Types 1, 4 and 9 regulated activities. Conning primarily provides asset management services for third-party assets. Conning predominantly invests client portfolios in fixed income strategies in accordance with guidelines supplied by its institutional clients.

All investment performance information included within this material is historical. Past performance is not indicative of future results. Any tax related information contained within this presentation is for informational purposes only and should not be considered tax advice. You should consult a tax professional with any questions.

For complete details regarding Conning and its services, you should refer to our Form ADV Part 2, which may be obtained by calling us.

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