CBSI Alternative Investments Commentary-BR

The range of choices in the alternative investments asset class have return and risk profiles that vary from high return/high risk to low return/low risk. For example, REITs and MLPs have high return/high risk profiles as they are a subset of the U.S. Equity market. They have features that may be attractive during different economic cycles or inflationary periods, or may offer higher income or dividend distributions than traditional stocks or bonds. We have a positive outlook on the energy MLP sector despite its lagging performance in 2017. (MLPs are partnerships traded on major U.S. securities exchanges.) We believe an eventual ramp up in crude and natural gas volumes should lead to production recovery, drive strong operating leverage and increase cash flow. Ultimately, however, the performance of this sector will likely be driven by the direction of oil prices. If oil prices retreat toward $40 per barrel, energy MLPs will

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