DALLAS, November 7, 2017 – OFI SteelPath, an OppenheimerFunds company, launched the Oppenheimer SteelPath MLP & Energy Infrastructure Fund. The Fund will primarily invest in the equity securities of North American midstream energy infrastructure companies while adhering to a 25% limit on master limited partnership (MLP) holdings. The Fund will focus on U.S. and Canadian energy infrastructure companies with a 40% limit on non-U.S. holdings. Further, the Fund may invest up to 20% in the fixed-income securities of energy infrastructure operators.
“The launch of this new Fund demonstrates OppenheimerFunds commitment to developing client-centric solutions in the midstream energy sector,” said Brian Watson, director of research and senior portfolio manager. “This Fund continues our legacy of innovation in the MLP and energy infrastructure space.”
The Fund will be structured as a traditional flow-through mutual fund with no fund level taxation.
“The SteelPath MLP & Energy Infrastructure Fund provides investors seeking to limit the impact of fund level taxation an additional option. By limiting the Fund’s MLP holdings to 25%, the Fund can qualify for pass-through tax treatment.” said Cartner.
The universe of investable midstream companies structured as c-corps has expanded significantly since the launch of the original SteelPath funds in 2010.
“Our proven bottoms-up, risk-focused investment process will drive the construction of the portfolio to help our clients achieve their investment goals,” said Coble.
OFI SteelPath, a leading innovator in developing midstream energy investment products, was first to market with MLP-focused open-end mutual funds, providing investors convenient access to the asset class. Energy infrastructure assets include pipelines, tanks, rail cars, ships, terminals, and storage facilities characterized by their strategic importance and largely fee-based revenues.
OppenheimerFunds’ SteelPath MLP funds were recently ranked as three of the top five funds in U.S. News & World Report’s “Best Mutual Funds – Energy Limited Partnership"1 rankings, with the Oppenheimer SteelPath MLP Select 40 Fund coming in second, the Oppenheimer SteelPath MLP Alpha Fund fourth and the Oppenheimer SteelPath MLP Income Fund fifth.
SteelPath’s current mutual fund lineup includes:
- NEW – Oppenheimer SteelPath MLP & Energy Infrastructure Fund
- Oppenheimer SteelPath MLP Alpha Fund
- Oppenheimer SteelPath MLP Alpha Plus Fund
- Oppenheimer SteelPath MLP Income Fund
- Oppenheimer SteelPath MLP Select 40 Fund
- Oppenheimer SteelPath Panoramic Fund
OppenheimerFunds, Inc., a leader in global asset management, is dedicated to providing solutions for its partners and end investors. OppenheimerFunds, including its subsidiaries, manages more than $246 billion in assets for over 13 million shareholder accounts, including sub-accounts, as of October 31, 2017.
Founded in 1959, OppenheimerFunds is an asset manager with a history of providing innovative strategies to its investors. The firm’s 16 investment management teams specialize in equity, fixed income, alternative, multi-asset, and revenue-weighted-ETF strategies, including ESG. OppenheimerFunds and its subsidiaries offer a broad array of products and services to clients, who range from endowments and sovereigns to financial advisors and individual investors. OppenheimerFunds and certain of its subsidiaries provide advisory services to the Oppenheimer family of funds, and OFI Global Asset Management offers solutions to institutions. The firm is also active through its Philanthropy & Community initiative: 10,000 Kids by 2020, reaching children with introductions to math literacy programs.
- ^The U.S. News Mutual Fund Score is produced using an equal weighting of the overall ratings provided by their data sources. Individual fund rating systems are normalized to a 100-point scale based on point totals assigned to individual scoring systems. For Morningstar's and CFRA's five-Star ranking and Zacks five-point scale, each star or point awarded would receive 20 points. In TheStreet.com's A-to-E scale, a highly rated "A" fund would receive 100 points, while a low-rated "E" would receive 20 points. The five Lipper Leader categories are each worth a total of 20 points, giving 4 points to each 1-to-5 point scale assigned to each section of the Lipper rankings. The U.S. News score is calculated by dividing total points awarded according to the above system by the number data sources (5). The combined U.S. News Mutual Fund Score ranks funds numerically based on this score. Funds with identical scores to one decimal place are awarded the same numerical ranking. Funds must be ranked by all five data sources to receive a U.S. News Mutual Fund Score. Lipper rankings are comprised of five unique measures (Total Return, Consistent Return, Preservation, Expense, and Tax Efficiency), each with a 1-to-5 score. While the U.S. News Mutual Fund Score combines all five equally weighted category scores to achieve its weighting in our score, Lipper intends its measures to be used as individual assessments of a fund's ability to meet specific goals, rather than as a cumulative measure of fund quality. The U.S. News Mutual Fund Score groups funds by their Morningstar fund category (Energy Limited Partnership funds). However, some systems use different categorizations when ranking funds.
Small and mid-sized company stock is typically more volatile than that of larger company stock. It may take a substantial period of time to realize a gain on an investment in a small-sized company, if any gain is realized at all. Investments in securities of growth companies may be volatile. Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. The Fund may invest no more than 25% of total assets in MLPs. Energy infrastructure companies are subject to risks specific to the industry such as fluctuations in commodity prices, reduced volumes of natural gas or other energy commodities, environmental hazards, changes in the macroeconomic or the regulatory environment or extreme weather. MLPs may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling. Below-investment-grade (“high yield” or “junk”) bonds are more at risk of default and are subject to liquidity risk. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially volatile. The Fund is classsified as a “non-diversified” fund and may invest a greater portion of its assets in the securities of a single issuer.