SteelPath has launched the SteelPath MLP Funds, the first mutual fund family to provide access to the master limited partnership asset class.
Without the burden of K-1s, or state and UBTI tax filings to the shareholder, the SteelPath mutual fund platform creates a transparent and liquid energy infrastructure MLP access product.
The three new funds, SteelPath MLP Income, SteelPath MLP Select 40, and SteelPath MLP Alpha, focus on energy infrastructure MLPs.
This asset class consists of companies that own and operate the physical assets that transport crude oil, refined petroleum products, and natural gas, such as pipelines, as well as the associated storage facilities.
These companies’ long term contracts and toll road business models have minimal exposure to commodity prices.
"The SteelPath MLP Funds provide 1099 tax reporting, qualified dividend treatment of taxable distributions, low investment minimums, and full daily liquidity at a transparent NAV," says portfolio manager Gabriel Hammond. "The funds are an especially compelling new option for IRA and 401(k) plans that were previously unable to benefit from the potential steady returns and high income offered by MLPs."
The SteelPath family of MLP mutual funds is designed to meet varying investor needs while focusing on a long-term investment horizon, diversified exposure and prudent risk management.
Class A shares of all three funds carry a minimum investment of USD3,000 for individual investors, while the institutional class shares have been specifically created to provide a cost efficient option for institutional investors from insurance companies to pension funds.
The SteelPath MLP Income Fund seeks to provide a high level of inflation protected current income, a higher distribution yield compared to equity alternatives such as Reits and utilities, and provides the highest level of current income of the three SteelPath Funds.
The SteelPath MLP Select 40 Fund is a portfolio of 40 energy infrastructure MLPs which seeks investment returns that outperform the broader equities market, through a disciplined investment process that provides a portfolio focused on diversification and risk elimination.
The SteelPath MLP Alpha Fund is a concentrated portfolio of 20 energy infrastructure MLPs that uses a securities selection process designed to uncover those MLPs with the best risk-adjusted opportunities for superior distribution growth and price performance.
MLPs are primarily engaged in the transportation, storage, or processing, of natural resources such as crude oil and natural gas.