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OppenheimerFunds launches new SteelPath MLP & Energy Infrastructure Fund

OFI SteelPath, an OppenheimerFunds company, has launched the Oppenheimer SteelPath MLP & Energy Infrastructure Fund, which will primarily invest in the equity securities of North American midstream energy infrastructure companies while adhering to a 25 per cent limit on master limited partnership (MLP) holdings.

The Fund will focus on US and Canadian energy infrastructure companies with a 40 per cent limit on non-US holdings. Further, the Fund may invest up to 20 per cent in the fixed-income securities of energy infrastructure operators.
 
Stuart Cartner and Bob Coble will act as portfolio managers for the Fund.
 
“The launch of this new Fund demonstrates OppenheimerFunds commitment to developing client-centric solutions in the midstream energy sector,” says Brian Watson, director of research and senior portfolio manager. “This Fund continues our legacy of innovation in the MLP and energy infrastructure space.”
 
The Fund will be structured as a traditional flow-through mutual fund with no fund level taxation.
 
“The SteelPath MLP & Energy Infrastructure Fund provides investors seeking to limit the impact of fund level taxation an additional option. By limiting the Fund’s MLP holdings to 25 per cent, the Fund can qualify for pass-through tax treatment,” says Cartner.
 
The universe of investable midstream companies structured as c-corps has expanded significantly since the launch of the original SteelPath funds in 2010.
 
“Our proven bottoms-up, risk-focused investment process will drive the construction of the portfolio to help our clients achieve their investment goals,” says Coble.
 
OFI SteelPath, a leading innovator in developing midstream energy investment products, was first to market with MLP-focused open-end mutual funds, providing investors convenient access to the asset class. Energy infrastructure assets include pipelines, tanks, rail cars, ships, terminals, and storage facilities characterised by their strategic importance and largely fee-based revenues.
 
OppenheimerFunds’ SteelPath MLP funds were recently ranked as three of the top five funds in US News & World Report’s “Best Mutual Funds – Energy Limited Partnership”i rankings, with the Oppenheimer SteelPath MLP Select 40 Fund coming in second, the Oppenheimer SteelPath MLP Alpha Fund fourth and the Oppenheimer SteelPath MLP Income Fund fifth.

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