Whats the Catalyst for MLPs?
We believe the energy sector broadly is healthy and well positioned to benefit from some normalization of sector allocation. Additionally, we believe that such rotation from historically underweight exposure to the energy sector would benefit many of the holdings within the SteelPath Focused MLP Strategy through its exposure across to the upstream, downstream, and midstream energy subsectors.

In our view, broader energy rotation is likely to benefit the MLP, or midstream, sector. It appears that MLPs today offers the same kind of value proposition investors found interesting in 2009: Sector valuations are at historic lows and distribution yields appear attractive.

However, the fundamental backdrop for growth in North American oil and gas production and associated infrastructure development appears healthier than ever. Further, we foresee that first-quarter operating results for mid-April through May will confirm this trend—and that operators may take the opportunity to ease investor anxiety about the Federal Energy Regulatory Commission’s (FERC’s) recent announcement. As a result, we believe our suite of MLP funds may benefit as well.