World’s Leading Energy Infrastructure and Master Limited Partnership (MLP) Index Provider, Alerian, makes European UCITS ETF debut on HANetf platform
- First UCITS ETF for Alerian
– pioneers of energy infrastructure and MLP indexing and research
- The Alerian Midstream
Energy Dividend UCITS ETF (MMLP) will list on London Stock Exchange in July 2020
- The current yield of MMLP
is 10.36%
- MMLP will be the 9th
ETP on the HANetf platform since it launched its first ETF in October 2018
15 July, 2020
Alerian, a world leader in North American energy infrastructure and MLP
market research and classification, will make its UCITS ETF debut via the
HANetf white-label platform with The Alerian Midstream Energy Dividend UCITSETF (MMLP).
The Irish-domiciled ETF, the Alerian Midstream Energy Dividend UCITS ETF (MMLP) is benchmarked to the Alerian Midstream Energy Dividend Index (AEDW) and
will list on London Stock Exchange later this month.
US-based Alerian is the world leader in North American energy
infrastructure indexing and research, pioneering how the MLP asset class is
measured and creating the most widely used real-time benchmark for midstream MLPs
– the Alerian MLP Index. As of 30th June, 2020, Alerian had a 75.8% AuM market share for US-listed
passive MLP exchange traded products [1].
Midstream energy infrastructure companies, including MLPs and C-corporations,
generate fees by transporting, processing, and storing oil, natural gas and
natural gas liquids, driving stable cash flows. The midstream sector has
attracted investors due to its high income-yield characteristics, particularly
among MLPs.
With a historic 5 year average yield of 7.25% [2]
for the Alerian Midstream Energy Dividend Index, which MMLP tracks, midstream
energy infrastructure compares favorably
to infrastructure and energy assets as well as other income strategies while often
performing more defensively during periods of energy price declines. The
current yield of the Alerian Midstream Energy Dividend Index was 10.36% as of
30.06.20 [3]. This
compares favourably to the FTSE 100 TR Index which has a current yield of 4.42% [4] . As of June 30, companies with investment
grade credit ratings represented 82.2% of the index by weighting [5]. Past performance is no guarantee of future
performance. When you trade ETFs, your capital is at risk.
MMLP also addresses a significant gap in mainstream US equity holdings
as MLPs are not included in broad US equity market indexes and midstream
corporations only represent a small portion of major US equity indices. The
inclusion of Canadian midstream corporations provides an added layer of
diversification and defensiveness. The launch of MMLP offers a rare gateway for
European investors into the North American midstream market via a diversified,
rules-based, dividend-weighted index strategy from the leaders in energy
infrastructure and MLP indexing and research, Alerian.
MMLP represents a significant step forward from first generation MLP
ETFs that tended to track end-of-day market cap weighted indices or capture
only a narrow slice of the overall midstream energy market. MMLP has improved
on this approach by tracking a real-time dividend-weighted index that contains
over 30 constituents - including MLPs, US corporations, and Canadian
corporations - providing broad midstream exposure and diversification.
“The launch of MMLP demonstrates
European investors’ interest in exposure to North American midstream energy
infrastructure,” said David LaValle, CEO at Alerian. “We are excited about our
partnership with HANetf and our joint innovation to answer investors’ call for
yield and income,” noted LaValle.
Hector McNeil co-CEO of HANetf said “We
are excited to bring MMLP to European investors who are in desperate need of
more high-yielding and stable income streams. MMLP is the first and currently
only UCITS ETF that embeds the expertise, coverage and classification of the
world leader in this sector - Alerian. Launches like this illustrate why HANetf
was created – to offer real value-added investment solutions in a transparent
and tradable format.
“The North American energy
infrastructure market represents a favourable investment opportunity. With the
onset of the coronavirus crisis and the recent collapse in energy prices to
levels never seen before, midstream energy companies have been trading at
historically big discounts. With the expectation that the global economy will
gradually lift lockdown restrictions and reopen for business, and as shale
production and energy demand recover to pre-crisis levels, midstream energy
companies offer an attractive risk-return opportunity to investors. MMLP will
be an excellent way to invest in that opportunity.”
ETF |
Exchange |
BB Code |
ISIN |
SEDOL |
CCY |
Alerian Midstream Energy Dividend UCITS ETF (MMLP)
|
LSE
|
MMLP
|
IE00BKPTXQ89
|
BMVF02
|
USD
|
When you trade ETFs, your capital is
at risk.
About
Alerian
Alerian is an independent information services company
serving asset managers and investment professionals around the globe through
its indexing, research and data capabilities. Built on a foundation of data
rigor and specialty research, Alerian pioneered how the master limited
partnership (MLP) asset class is measured and created the first real-time MLP
index—the Alerian MLP Index-- the most widely used benchmark for midstream MLP
energy. Today, Alerian continues to innovate, delivering indexes, tools,
thought leadership, and actionable insights that equip stakeholders to make
informed decisions.