The fund provides exposure to US energy infrastructure via Master Limited Partnerships (MLPs), which own and operate many of the US’s core infrastructure assets. It is the first fund in Europe targeting the sector.
According to the firm, MLPs have historically generated stable cash flows, with relatively low sensitivity to commodity prices, and have typically paid out a high percentage of cash flows to investors.
The fund is benchmarked against the Morningstar MLP Composite Index, which targets 97% of the MLP universe by market capitalisation and currently comprises 39 constituents.
It has a management fee of 0.5% and is domiciled in Ireland. It is available in reinvesting and distributing share classes.
The fund was launched mid-May and was followed into the market by new offerings from Vanguard and Lyxor a couple of days later.
