Income Growth Advisors, LLC MLP SMA performance up 23.9% year to date.

Income Growth Advisors’ MLP strategy is strongly rebounding and outperforming our benchmarks. Through May 31, our MLP separate account strategy rose 23.9% significantly outperforming our MLP and S&P benchmarks which rose 9.11% and 2.93%, respectively.

The oil market is stabilizing and the prospects for many US shale markets are solid in this $50/bl oil price range. However, while the rebound in energy prices may now be over, we still see good upside for MLPs.

There are three reasons to be optimistic and positive on the MLP story today:

1. After a major decline of 50% in price a market needs to recover 100% to return to parity. Since yields on MLPs are still well above their recent low yields, MLPs should rally another 50% from here.

2. The yield picture has never been so extraordinarily low. Globally ten trillion in government bonds have negative yields. Our largest ($5mm plus) portfolio, with 10 positions yields 8.6%. Ten year US Treasuries yield 1.6%.

3. Lastly, over fifteen years of experience has taught us what to look for to find growing franchises in the MLP space. With this skill, we expect to continue to perform well and outperform our benchmarks.

Based on our year end forecast of MLPs yielding 6%, a 25% return from today’s levels seems reasonable. So while some investors may feel like you missed the cyclical bottom in MLPs, there is still enough damage repair to be done in this space that adding to MLPs makes good sense.

We recommend investing in MLPs through separately managed accounts. We work with US Trust/BAML and Interactive Brokers. The returns of MLPs through separate accounts has significantly outperformed funds due to the taxation imposed upon 1940 Act fund structures like closed end funds, ETFs and mutual funds. The performance differential is on the order of 30% of your annual return. For investments in excess of $100,000, it makes sense to own MLPs outright with a top MLP manager.

Please note our new address. We moved our office across the street.

Sincerely,

Tyson Halsey

Tyson Halsey, CFA
Managing Member
Income Growth Advisors, LLC
225 Seven Farms Drive, Suite 108
Charleston, SC 29492
www.incomegrowthadvisors.com
th@incomegrowthadvisors.com email
843-628-5611 telephone
917-667-5512 cellular
803-753-9556 facsimile

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The information expressed on our website is based upon the interpretation of available data. The data being presented was obtained or derived from sources believed to be accurate, but Tyson Halsey and Income Growth Advisors, LLC

(IGA) cannot and does not guarantee the accuracy of these sources which may be incomplete and/or condensed. The data and information presented is provided for informational purposes only, and is not offered as a basis for trading in securities nor is it offered for that purpose.

Nothing contained herein should be construed as a recommendation to buy or sell any securities.

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