ClearBridge Energy MLP Strategy Portfolio Manager Commentary Q1 2019

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Includes: AM, BPMP, CNXM, D, DM, ENLC, EPD, ET, GEL, HEP, KNOP, OKE, WES, WMB
by: ClearBridge Investments
Summary

ClearBridge is a leading global asset manager committed to active management. Research-based stock selection guides our investment approach, with our strategies reflecting the highest-conviction ideas of our portfolio managers.

Energy MLP companies rebounded strongly in the first quarter, outperforming the broad U.S. equity market.

Continued growth in U.S. energy production and associated infrastructure buildout will drive increasing cash flows for energy infrastructure companies.

Given their higher cash flow growth and yields, we do not believe MLP stocks trading at lower multiples than the broader U.S. equity market, utilities and REITs will be sustainable in the long term.