Our Master Limited Partnerships strategies are designed to provide attractive levels of income and potential for capital appreciation.

What are Master Limited Partnerships?

Master Limited Partnerships (MLPs) are liquid investments that trade on major exchanges like common stock. They are generally tied to the energy sector and may offer attractive income yields that are generated from long-term service contracts.

 

 

 

Advantages of MLPs

  • No Double Tax: MLPs pass through all earnings and taxable income to their limited partners

  • High Level of After-Tax Income and Growth: Typically 70%-100% of quarterly distributions are tax deferred

  • "Toll-Like" Business Models: More than 80% of MLPs are in the midstream segment where cash flows are typically fee-based

 

Our MLP Strategy

 

Conning's strategy focuses solely on companies in the midstream sector which gather, process, transport and store oil, natural gas and refined petroleum products. This segment of the market offers attractive yields, predictable cash flows with the potential for growth and limited exposure to commodity prices. We employ the potential for distribution growth and competitive positioning, along with a qualitative evaluation of management teams.

 

 


Our MLP Expert

Marcus McGregor

Director, Investment Research

marcus.mcgregor@conning.com