Master Limited Partnerships Closed End Funds (CEFs)
By: Tim McPartland,
Below you will find our listing of Master Limited Partnership Closed End Funds (CEF’s)
This list may not be a complete list, but does contain the vast majority of funds that are devoted to Master Limited Partnerships. Note that it is typical for these funds to be required to own approximately 80% MLP common units of publically traded MLP’s, while the other 20% can be devoted to items such as non publically traded units.
As you scan through some of the issues there are issues that specifically target a specific sector of the MLP market, i.e. midstream while others purchase most any master limited partnership available.
Closed end funds generally use leverage when investing–given that borrowing costs are low they are able to earn more in dividends from their holdings than the cost of the leverage (interest) thus they are able to pay a larger distribution.
Closed end funds may trade above or below NAV (Net Asset Value) and this is simply a function of supply and demand.
Below we show the current prices and distributions for the Closed End Funds as well as the most recent distribution extrapolated out to a 12 month period.
One of the most desirable features of owning a MLP Closed End Fund versus the individual shares is that the CEF’s generally issue a 1099 for dividends while owning individual MLP issues means that you will be issued a K-1 which typically is difficult to deal with at tax time.
This list in NOT meant to be the end of your research–but instead it should be just the start.
Note that we have a 2013/2014/2015 Yield Hunter MLP Stock Index for the Closed End Funds.
The Yield Hunter MLP Closed End Fund Index Start 1/1/2013 54.94 High 8/27/2014 69.55 Low 1/02/2013 54.94