Swank Capital

MLP Asset Class | Investment Characteristics

Energy Infrastructure MLPs

MLPs build and operate pipelines and storage facilities for the transmission of domestic energy supplies critical to the nation's economy. MLPs own the infrastructure that connects the crude oil and natural gas - at the wellhead - to the end user. They represent minimal exposure to actual commodity price risk with only moderate sensitivity to most economic shifts.

  • Strong Cash Flow:Cash flows generated have historically been stable and predictable
  • Potential Income:Majority of cash flows are distributed to unitholders
  • Tax Conscious:Distributions are largely a return of capital
  • Hedge Against Inflation:Distributions have grown over time, providing an effective inflation hedge
  • Historical Performance:The Cushing® 30 MLP Index has historically outperformed other yield oriented investments as shown in the chart below