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Top MLP Funds Are in the Red in 2018

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Negative total returns

The Tortoise MLP and Pipeline (TORTX), the Oppenheimer Steelpath MLP Select 40 Fund (MLPFX), and the Oppenheimer Steelpath MLP Income Fund (MLPDX) all generated negative total returns in the first half of 2018. They’re among the largest MLP funds by assets under management. The Center Coast Brookfield MLP Focus Fund (CCCAX) and the Oppenheimer Steelpath MLP Alpha Fund (MLPAX) also generated negative returns in the first half of 2018.

The above chart shows the total returns generated by the top open-ended MLP funds year-to-date.

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TORTX and CCCAX

TORTX invests in MLPs and pipeline companies. TORTX The Tortoise MLP and Pipeline (TORTX) has ~$4.1 billion of assets under management. ONEOK (OKE), Cheniere Energy (LNG), and Williams Companies (WMB) are the fund’s top three holdings. They form 9.4%, 8.8%, and 8.3%, respectively, of TORTX.

The Center Coast Brookfield MLP Focus Fund invests at least 80% of its assets in MLPs, MLP affiliates, and midstream C corporations.

Oppenheimer Steelpath funds

MLPFX has ~$3.3 billion in assets under management. MLPFX mainly invests in midstream MLPs. MLPFX’s benchmark index is the Alerian MLP Total Return Index. Energy Transfer Partners (ETP) is the fund’s top holding. Energy Transfer Partners forms nearly 5.7% of the fund. Enterprise Products Partners (EPD), Energy Transfer Equity (ETE), and MPLX (MPLX) each form ~5% of the fund.

MLPAX’s top five holdings account for 44.6% of its assets. Enterprise Products, Energy Transfer Partners, and Energy Transfer Equity are the fund’s top three holdings. They form 10.8%, 10.1%, and 8.4%, respectively, of MLPAX.

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