INVESTING IN ENERGY

A $4.5 trillion opportunity1

Why energy now?

Demand for energy has been on the rise for the past several decades, and North America has increasingly become a key supplier to the world. Meeting this growing need will require ongoing investment in U.S. energy infrastructure.

The opportunity

Investing across energy subsectors

There are five large energy subsectors, each instrumental in ensuring the uninterrupted flow of and access to energy.1

RETURNS WITHIN EACH SUBSECTOR CAN BE VOLATILE

Because each subsector can perform differently year to year, having the flexibility to move across the energy value chain as market opportunities change may improve investment returns.

ANNUAL RETURNS FOR ENERGY SUBSECTORS

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Annaul returns of midstream equities from 2007 to 2017. +12.7% -36.9% +76.4% +35.9% +13.9% +4.8% +27.6% +4.8% -32.6% +18.3% -6.5% Annaul returns of energy credit from 2007 to 2017. +5.6% -24.7% +51.1% +13.0% +8.5% +11.7% +6.1% -7.4% -23.6% +38.4% +7.6% Annaul returns of energy services equities from 2007 to 2017. +38.5% -57.9% +66.5% +29.8% -5.5% +0.0% +26.2% -35.4% -37.8% +27.3% -22.5% Annaul returns of upstream equities from 2007 to 2017. +28.0% -43.1% +38.8% +28.0% +0.5% +3.1% +27.1% -30.1% -36.7% +37.1% -10.1% Annaul returns of large cap energy equities from 2007 to 2017. +32.4% -35.9% +11.3% +17.9% +2.8% +2.3% +22.3% -10.0% -23.6% +23.7% -3.8% Annaul returns of natural gas from 2007 to 2017. +30.2% -21.4% +3.6% -27.4% -29.6% +15.4% +25.3% +0.0% -40.8% +9.4% +10.8% Annaul returns of crude oil from 2007 to 2017. +57.2% -53.5% +77.9% +15.1% +8.2% -7.1% +7.2% -45.9% -30.5% +45.0% +12.5%

Data from 1/1/2007–12/29/2017. Past performance does not guarantee future results. This data is for illustrative purposes only. An investment cannot be made directly in an index. Subsectors are represented by the following: Crude oil: West Texas Intermediate spot price; Natural gas: Henry Hub spot price; Large-cap energy equities: S&P 500 Energy Index; Upstream equities: S&P Oil & Gas Exploration & Production Index; Energy services equities: S&P Oil & Gas Equipment & Services Index; Energy credit: ICE BofAML U.S. High Yield Energy Index; Midstream equities: Alerian MLP Index.

Investor considerations

Investing in energy and energy infrastructure companies may contain certain risks. Commodity price risk: The profitability of energy and energy infrastructure companies, particularly those involved in exploration and production, may be materially affected by the price of commodities such as crude oil and natural gas. Cyclicality risk: The operating results of energy companies tend to be cyclical. The highly cyclical nature of energy and energy infrastructure companies may adversely affect the earnings or operating cash flows of such companies. Energy demand risk: A sustained decline in demand for natural resources, including, but not limited to, crude oil, refined products, petrochemicals, natural gas, natural gas liquids, coal, metals and renewable energy sources could adversely affect the revenues and cash flows of energy and energy infrastructure companies. Regulatory risk: Energy and energy infrastructure companies are subject to stringent and complex federal, state and local environmental laws and regulations which could restrict business activity and increase compliance costs for energy companies.

Investing in energy

Find opportunity in energy and energy infrastructure