An investment in Enbridge Energy Management offers an attractive yield and is structured as an attractive alternative to direct investment in master limited partnerships for investors without the complications associated with Schedule K-1 tax reporting. The structure offers a number of unique investment attributes, which also have appeal for individual investors:
Enbridge Management shareholders receive quarterly distributions in the form of additional shares, also known as Paid-In-Kind (PIK) distributions.
The receipt of PIK distributions is a non-taxable event to the shareholder.
The sale of Enbridge Management shares is generally subject to capital gains treatment, providing a tax efficient form of investment.
While we operate under a low-risk business model, our yield is among the highest when compared to other large capitalization, investment-grade Master Limited Partnerships (MLPs) or when compared to other asset classes such as Real Estate Investment Trusts (REITs).