Stratos Master Limited Partners & Equity Income strategy

With investments in master limited partnerships (MLPs) and stocks with a history of dividend payment, high-net-worth investors may create a reliable income stream with the Stratos Master Limited Partners & Equity Income strategy. MLPs are business entities that share similarities to both corporations and partnerships and typically pay consistent income with specific tax benefits. MLPs are restricted to certain industries; most operate in the energy sector. In combination with high-dividend stocks, this strategy is intended to provide higher than average income compared to traditional fixed-income strategies.

Risk suitability: Suitable for high-net-worth investors with a high tolerance for risk who can tolerate periods of increased volatility

IMPORTANT DISCLOSURES

Any opinions are those of the investment manager(s) and their team. Opinions are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security outside of a managed account. This should not be considered forward looking and does not guarantee the future performance of any investment.

All investments are subject to risk, including loss. There is no assurance that any investment strategy will be successful. Asset allocation and diversification does not ensure a profit or protect against a loss. It is important to review the investment objectives, risk tolerance, tax objectives and liquidity needs before choosing an investment style or manager.

This is an investment advisory program in which the client’s financial advisor invests the client’s assets on a discretionary basis in a range of securities. Investment advisory programs may require a minimum asset level and, depending on your specific investment objectives and financial position, may not be suitable for you.

In a fee-based account clients pay a quarterly fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship. In deciding to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading. Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account. Clients should periodically reevaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. A list of additional considerations, as well as the fee schedule, is available in the firm’s Form ADV Part 2 as well as the client agreement.

ASSET CLASS RISK CONSIDERATIONS

Equities: Investors should be willing and able to assume the risks of equity investing. The value of a client’s portfolio changes daily and can be affected by changes in interest rates, general market conditions and other political, social and economic developments, as well as specific matters relating to the companies in which the strategy has invested. Companies paying dividends can reduce or cut payouts at any time.

MLP distributions are not guaranteed. The actual amounts of cash distributions may fluctuate and will depend on the MLP’s future operations performance. Increasing interest rates could have an adverse effect on MLP unit prices as alternative yields become more attractive. Increasing debt service cost and interest expense negatively affect cash flow and could impact the MLP’s ability to make cash distributions.

Investors should also be aware of the risks of MLPs. Among them: concentration risk, liquidity, exposure to potential volatility, tax reporting complexity, fiscal policy and market risk. It is advisable to consider the suitability of MLPs, given your individual income needs and portfolio constraints.

Investments in securities of MLPs involve risks that differ from an investment in common stock. MLPs are controlled by their general partners, which generally have conflicts of interest and limited fiduciary duties to the MLP, which may permit the general partner to favor its own interests over the MLPs.