INCOME-EQUITY NO MLP

Our Income-Equity No MLP Strategy is a diversified, dividend-growth equity portfolio that seeks high current income plus growth of income and principal. Stocks are primarily US based, multi-cap companies from across the broad equity market. The investment philosophy, objective, and strategy behind this portfolio are the same as the Income-Equity Strategy. The only difference in this portfolio is that it does not generate K-1 tax reports, because it excludes Master Limited Partnerships (MLPs) among its holdings.

This strategy has the potential to provide “unfixed income” from stocks with high current income and growth of income from dividends. Investors seeking solid total returns that comprise both income and growth, high current income that may increase every year, potential for inflation protection, and a lower federal tax rate on qualified dividends will find this strategy attractive.

Investment Philosophy

Consistent with our firm philosophy, this portfolio invests in financially strong companies with rising dividends. Our disciplined investment process focuses on compounding income — not style, sector, or asset allocation — the main driver of long-term returns. Many studies, including our own, show that dividend-paying stocks have historically outperformed non-dividend-paying stocks, and companies that increase their dividends tend to perform the best. Stock prices may fluctuate, but dividends, when paid, are always positive. And unlike bonds (with static income), equities with growth of income help protect investors from the ravages of inflation. Even a “tame” inflation rate of 2.5% can destroy almost two thirds of an investor's purchasing power over 20 years.

Investment Objective

Our investment objective is to provide high current income, growth of income, and growth of principal as conservatively as possible while investing in the equity markets. We seek to add value to our clients' overall investments by lowering volatility, raising the income level, and enhancing total return.

Investment Strategy

Our investment objective is to provide high current income, growth of income, and growth of principal as conservatively as possible while investing in the equity markets. We seek to add value to our clients' overall investments by lowering volatility, raising the income level, and enhancing total return.

Composite Inception Date: December 2003
Portfolio Manager: MHI Investment Team

Performance and portfolio information can be obtained by contacting MHI. If you are an advisor/financial professional, you may log on to our Advisor site to obtain this information.