DALLAS, Jan. 12, 2012 /PRNewswire/ -- SteelPath Advisors announced the launch of the SteelPath MLP & Infrastructure Debt Fund and the SteelPath MLP Alpha Plus Fund. These funds are actively managed by Gabriel Hammond, Stuart Cartner, and Brian Watson and provide a simple solution to access MLPs without the complexities of K-1s and Unrelated Business Taxable Income (UBTI). Mr. Hammond and Mr. Cartner are current Portfolio Managers on other SteelPath fund offerings (SteelPath MLP Alpha Fund, SteelPath MLP Income Fund, and SteelPath MLP Select 40 Fund). Mr. Watson joins as co-portfolio manager on the new offerings while retaining his duties as the firm's Director of Research. "Given Brian's extensive involvement as Director of Research for the past 3 years, we're excited for him to take on a more active role within the portfolios," commented SteelPath founder and CEO Gabriel Hammond.
The SteelPath MLP & Infrastructure Debt Fund (MLPWX) represents the industry's first debt-focused MLP mutual fund and invests in debt securities of approximately 15-20 MLP and energy infrastructure companies. SteelPath's MLP Alpha Plus Fund (MLPNX) is a concentrated portfolio of approximately 20 MLP equity securities and employs leverage to distinguish it from SteelPath's existing flagship fund, the MLP Alpha Fund.
Gabriel Hammond added, "Many investors are looking for alternative sources of income in this lowyielding environment, and these new funds are the result of demand for additional solutions." Scott Blankenship, the firm's Vice President of Sales & Marketing stated, "MLPs are becoming a permanent allocation within a broad range of investor portfolios given the asset class's historically consistent income distributions, low correlations to the broader markets, and strong total returns."
Both new funds, like all other SteelPath strategies, will focus on MLPs classified as "mid-stream", which describes those firms which are primarily responsible for the transportation, storage, and processing of carbon-based natural resources such as oil, natural gas, and refined products. Mid-stream MLPs present an attractive risk/reward proposition as they typically earn "tolls" or "fees" and tend to be less volatile since they typically do not take ownership of the underlying commodities they handle.
To learn more about SteelPath and these funds, call 866-752-5444 or visit www.steelpath.com for more information.
About SteelPath
SteelPath is a leading investment manager of Master Limited Partnership (MLP) portfolios. The firm has been investing in MLPs since 2004, and is based in Dallas, Texas. Products offered include mutual funds, separately managed accounts, and investment limited partnerships. SteelPath employs a fundamental, research‐driven portfolio selection process to invest predominately in U.S. based energy infrastructure companies structured as MLPs. Energy infrastructure MLPs transport, store, and process liquid hydrocarbons and natural gas, and generate revenues largely through fee or fee‐like contracts. MLPs will be tapped to build out the new infrastructure (pipelines, processing plants, terminals) to support the rapid growth in domestic energy production from non-traditional shale plays. SteelPath views these companies as having strong business models which potentially offer attractive investment opportunities given their consistent cash flow generations, ability to grow distributions and strong performance results.SteelPath's investment team has over 50 years of combined investment experience in the MLP asset class.
Footnotes:
You should consider the Funds' investment objectives, risks, charges and expenses carefully before investing. For a prospectus, or summary prospectus, that contains this and other information about the Funds, call 888-614-6614 or visit the Fund's website at www.steelpath.com. Please read the prospectus, or summary prospectus, carefully before investing.
Investing in MLPs differs from investments in common stock including risks related to cash flow, dilution and voting rights. Investments are concentrated in the energy infrastructure sector; with an exclusive emphasis on securities issued by MLPs. Concentration of the Fund's investment in the energy infrastructure sector, with an exclusive emphasis on securities issued by MLPs, may increase price fluctuation. Energy infrastructure companies are subject to risks specific to the industry such as fluctuations in commodity prices, reduced volumes of natural gas or other energy commodities, changes in the economy or the regulatory environment or extreme weather. MLPs may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling. Investing in ETFs and other investment companies may involve duplication of advisory fees and other expenses. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership which could reduce the value and income produced from the Fund. Some SteelPath Funds will be subject to certain MLP tax risks and risks associated with accounting for its deferred tax liability which could materially reduce the net asset value, which in turn, could significantly impact performance. The use of leverage through borrowing may exaggerate the effect of the Fund's net asset value of any increase or decrease in the value of the MLPs or other investment purchased with the borrowings. Investing in debt securities involves additional risks including interest rate risk, credit risk and prepayment risk. High yield securities involve greater risk than investment grade securities and tend to be more sensitive to economic conditions and credit risk. Private equity investments may be subject to greater risks than investments in publicly traded companies due to limited public information and lack of regulatory oversight.
Funds distributed by UMB Distribution Services, LLC 803 W. Michigan, Milwaukee, WI 53233
SteelPath Fund Advisors c 2009-2010. All rights reserved.
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Contact: Jami Schlicher, 973-850-7309
SOURCE SteelPath
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