On Wednesday, USCF today announced the launch of the USCF Midstream Energy Income Fund (UMI) with sub-adviser Miller/Howard Investments, a Woodstock, NY-based, research-driven portfolio management firm. UMI, an actively-managed ETF, will apply Miller/Howard’s hallmark bottom-up fundamental research to midstream energy infrastructure companies focused on energy transportation, storage, and gathering/processing.
The Miller/Howard investment philosophy emphasizes income-producing equities as essential elements to building long-term wealth. Dividend income from high-yielding sectors like midstream energy can be used to fund current spending needs or, when reinvested, to drive the power of compounding to grow wealth over time. Miller/Howard has integrated environmental, social, and governance (ESG) analysis with fundamental research since its first strategy in 1991.
“USCF was founded on the principle of bringing previously difficult to access asset classes to every investor,” said John Love, President and CEO of USCF. “UMI introduces the midstream energy market to our investors thoughtfully by not only seeking a high level of income but also offering exposure to master limited partnerships (MLPs) without a K-1.”
Yes, ESG Is Now in Energy
UMI is the first collaboration between USCF and Miller/Howard and illustrates how it is possible to invest in the energy sector while considering ESG attributes.
Miller/Howard’s research and analysis focuses on the quality of a company, its ability to grow income, and the sustainability of its business model and practices. In the unique case of MLPs, where traditional avenues for shareholder engagement and proxy voting are unavailable, Miller/Howard has written two Open Letters to MLP/Midstream Management Teams calling for them to address key issues ESG issues identified by investors. Miller/Howard is also dedicated to dialogues with MLP and midstream companies, with recent initiatives focused on environmental management, board gender diversity, and disclosures around executive compensation.
“We are excited to enter the ETF arena with our new collaborators, USCF,” said Luan Jenifer, President of Miller/Howard Investments. “This new Fund utilizes the established methods that Miller/Howard has effected to bring the midstream energy sector, including MLPs, to investors more broadly and without a K-1.”
“Our team is thrilled with the opportunity to work alongside Miller/Howard,” added Love. “We feel that their perspective and approach to midstream energy is refreshing and beneficial to the space.”