Alerian has listed Midstream Energy ETF on Deutsche Boerse via HANetf platform
- The Alerian Midstream
Energy Dividend UCITS ETF (JMLP) has listed on Deutsche Boerse’s Xetra today
- First UCITS ETF for Alerian
-pioneers of energy infrastructure and Master Limited Partnerships (MLP)
indexing and research
- The current yield of JMLP is 11.08%
- MMLP will be the 9th
ETP on the HANetf platform since it launched its first ETF in October 2018
6th August, 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 UCITS ETF (JMLP).
The Irish-domiciled ETF, the Alerian Midstream Energy Dividend UCITS ETF (JMLP) is benchmarked to the Alerian Midstream Energy Dividend Index (AEDW) and
has listed on Deutsche Boerse today.
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.
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%
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 11.08%. As of July 31, companies with investment
grade credit ratings represented 84.1% of the index by weighting. Past performance is no guarantee of future
performance. When you trade ETFs, your capital is at risk.
JMLP 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 JMLP 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.
JMLP 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. JMLP 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.
launch of JMLP 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.”
McNeil co-CEO of HANetf said “We are excited to bring JMLP to
European investors who are in desperate need of more high-yielding and stable
income streams. JMLP 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.
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. JMLP will be an excellent way to invest in that opportunity.”
The fund listed last week on London Stock Exchange and will also list
on Borsa Italiana this week. The Midstream ETF has
been passported across Europe to Austria, Denmark, Finland, Germany, Ireland,
Italy, Luxembourg, Netherlands, Norway, Sweden and UK.
When you trade ETFs, your capital is at risk.