Alerian, a North American energy infrastructure and master limited partnership (MLP) research provider, is set to launch its first UCITS ETF via white-label platform HANetf.
The Alerian Midstream Energy Dividend UCITS ETF (MMLP) is expected to list on the London Stock Exchange later this month.
MMLP will be available in USD and GBP.
Tracking the Alerian Midstream Energy Dividend index, MMLP is comprised of companies from the North American energy infrastructure market.
It is fundamentally weighted based on the liquid, dividend-paying portion of the underlying stocks.
Midstream energy companies, which include MLPs and C-corporations, are any company that are taxed separately from their owners, generate fees by transporting, processing and storing oil and natural gases.
MMLP’s benchmark has a five-year average yield of 7.3% and has a current yield of 10.4% as of 30 June.
The fund enables European investors to access the MLP market which are not typically included in broad US equity market indices.
Hector McNeil (pictured), co-CEO of HANetf, said: “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.”