INVESTMENT ADVISER ANNOUNCES ANTICIPATED CONVERSION TO ESOP OWNERSHIP
Woodstock, NY, July 19, 2018 (GLOBE NEWSWIRE) — The current shareholders of Miller/Howard Investments, Inc. (the “Investment Adviser”), the investment adviser of the Miller/Howard High Income Equity Fund (the “Fund”), announced that they have agreed to sell 100% of their stock in the Investment Adviser to an ESOP (Employee Stock Ownership Plan). Upon completion of the transaction, the ESOP will hold in trust, through an institutional trustee, all of the equity exclusively for the benefit of all current and future employees of the Investment Adviser (the “ESOP Conversion”).
Under ownership by the ESOP, the Investment Adviser has indicated that it will continue to operate as before, with no changes to the investment team, investment process or philosophy by which the Company provides investment advice. Lowell Miller will remain Chief Investment Officer and will serve as Chairman of the Investment Adviser’s Board of Directors, which has been expanded and includes an independent Board member. The current Management Committee of the Investment Adviser, which reports to the Board of the Investment Adviser, will continue to manage the day to day affairs of the business.
ESOP Conversion
As a result of the expected change of control of the Investment Adviser in connection with the ESOP Conversion, an “assignment” of the current investment advisory agreement between the Fund and the Investment Adviser (the “Existing Advisory Agreement”) under the Investment Company Act of 1940, as amended (the “1940 Act”) is expected to occur. This assignment will automatically terminate the Existing Advisory Agreement in accordance with its terms as required by Section 15 of the 1940 Act.
In order for the Investment Adviser to continue to serve as the Fund’s investment adviser upon the closing of the ESOP Conversion, the shareholders of the Fund must approve a new investment advisory agreement between the Fund and the Investment Adviser (the “New Advisory Agreement”).
It is anticipated that the Board of Trustees of the Fund will consider a new advisory agreement between the Fund and the Investment Adviser (the “New Advisory Agreement”), after taking into consideration the ESOP Conversion and any other factors the Board of Trustees deems relevant. If approved by the Board of Trustees, the New Advisory Agreement will be presented to the Fund’s shareholders for approval at the 2018 Annual Meeting of Shareholders (the “2018 Annual Meeting”). The date of the 2018 Annual Meeting has not yet been set. The Investment Adviser anticipates that the ESOP Conversion will close in 2018, subject to applicable regulatory approvals and client consents.
About the Miller/Howard High Income Equity Fund
The Fund is managed by Miller/Howard Investments Inc., based in Woodstock, New York. Miller/Howard Investments’ total firm assets as of March 31, 2018 were approximately $5.5 billion, including $0.5 billion in assets under advisement. Miller/Howard Investments focuses on income-producing equities. The Fund’s emphasis is on high-quality stocks with high yield and strong dividend growth offering investors the opportunity for capital appreciation, current income, and growth of income.
About Miller/Howard Investments, Inc.
Miller/Howard Investments, Inc. was founded as an institutional research firm in 1984 and has managed equity portfolios with an income focus since 1991. The firm invests in quality stocks with strong balance sheets and fundamentals, and the ability to pay and willingness to increase dividends over the years, creating compounding returns, and, ultimately, capital appreciation based on the expected valuation of companies producing ever higher cash flows. The focus is classic sector-diverse dividend and dividend growth quality stock investing providing reliable and rising income, with several additional sector specialties. It is a long-term approach, though always seasoned with an ever-alert awareness of economic and business trends that may provide tailwinds or headwinds for specific companies.
Disclosures
A copy of the Fund’s prospectus, including the prospectus supplement, and the Fund’s statement of additional information may be obtained on the SEC’s website at www.sec.gov. The prospectus, including any supplements, may also be found on the Fund’s website www.mhinvest.com.
This press release shall not constitute an offer to sell or the solicitation of any offer to buy the securities discussed herein, nor shall there be any offer, solicitation or sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. An investment in the Fund is subject to a risk of loss, and the risks of investing in the Fund are fully described in the Fund’s prospectus. An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing. The prospectus supplement, as well as the prospectus, contains this and other information about the Fund. An investor may obtain a prospectus supplement, as well as the prospectus, as set forth in the above paragraph. The prospectus supplement and prospectus should be read carefully before investing.
CONTACT: Dana Troxell Miller/Howard Investments Inc. 845-679-9166 [email protected]