Call 1.866.825.3005 for more information
Individual Investor
Dan Plettner
Financial Services
- Education New York University (MBA), Miami University (BA Magna Cum Laude)
- Investment Experience Approximately 20 years
MLP Direct Ownership
The MLP Direct Ownership Model intends to foster long term tax-advantages of investing in Master Limited Partnerships via direct ownership of publicly traded MLP units.
An MLP combines the tax benefits of a limited partnership (ie. Avoiding taxes at the corporate level) with the liquidity of publicly traded securities.
MLPs generally offer stable yield, as they are required to pay minimum quarterly distributions to the limited partners by contract.
The target annual yield of this model is 6-7%.
The MLP structure is limited by US Code to only apply to enterprises that engage in certain businesses. Most pertain to the use of natural resources (ie: petroleum and natural gas extraction and transportation).
In a space cluttered with extraordinary IDRs ("Incentive Distribution Rights" to the General Partner), the model seeks to select MLPs where management is perceived least subject to conflicted interest that hazard ordinary investors.
Tax efficiencies of MLP structures may be degraded through ETFs, ETNs, or Closed-End Funds alternatives. The model does not use ETFs, ETNs, or Closed-End Funds. The model approaches individual MLPs from a long term perspective.
An MLP combines the tax benefits of a limited partnership (ie. Avoiding taxes at the corporate level) with the liquidity of publicly traded securities.
MLPs generally offer stable yield, as they are required to pay minimum quarterly distributions to the limited partners by contract.
The target annual yield of this model is 6-7%.
The MLP structure is limited by US Code to only apply to enterprises that engage in certain businesses. Most pertain to the use of natural resources (ie: petroleum and natural gas extraction and transportation).
In a space cluttered with extraordinary IDRs ("Incentive Distribution Rights" to the General Partner), the model seeks to select MLPs where management is perceived least subject to conflicted interest that hazard ordinary investors.
Tax efficiencies of MLP structures may be degraded through ETFs, ETNs, or Closed-End Funds alternatives. The model does not use ETFs, ETNs, or Closed-End Funds. The model approaches individual MLPs from a long term perspective.
The model approaches individual MLPs from a long term perspective. Excessive IDRs (Incentive Distribution Rights to the General Partner) are perceived a signal of long term risk.
In this sector, a partnership's IDRs (Incentive Distribution Rights to the General Partner) are believed a potential indicator of Managerial Conflict of Interest Hazards. Research seeks to mitigate that hazard in selecting long term holdings.
The focus is on long term holdings with minimal turnover.
There is no mandate here. However, the model desires to be focused on long term holdings. If the risk profile becomes undesirable, the MLP would be considered for sale.
The model does not surmise that MLPs are right for everybody, and supposes that marketplace misuse leaves unbalanced risk and return through various available securities and products. This model focuses on MLPs but the model manager (for whom Covestor carries alternate models too) has more extensive personal allocations to strategies of alternate focus.
- Approach Fundamental , Sector Focus , Yield Focus
- Asset class Equity
- Geography US
- Sectors Energy
Model commentary
Well-priced stocks will ride out these market swings
21 February 2012
The question to ask, I think, is “If I were a ground squirrel just awakened from hibernation, would I like valuations today?”
show more