As technology continues to advance and production costs fall, the United States is poised to be the world’s top energy producer by 2018.1 Furthermore, with an estimated $100 billion of energy infrastructure spending needed over the next five years, Oppenheimer SteelPath MLP Alpha Fund offers investors access to the midstream assets necessary to transport crude oil, natural gas, natural gas liquids and other energy commodities
- ^Source: Wells Fargo, March 2017. 2. Ranking is based on total return, without considering sales charges. Different share classes may have different expenses and performance characteristics. The Fund’s total-return percentile rank is relative to all funds that are in the Morningstar Energy Limited Partnership category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top performing fund in a category will always receive a rank of 1. Fund rankings are subject to change monthly. Y shares are not available to all investors. 3. Source: Capital IQ, as of 6/30/17. 4. Source: SteelPath analyst estimates. 5. Source: Company investor presentations. 6. ETP owns 38.25%; MPLX owns 9.2%.
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’s investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase volatility. 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. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. Additional management fees and other expenses are associated with investing in MLP funds. The Fund is subject to certain MLP tax risks. An investment in the Fund does not offer the same tax benefits of a direct investment in an MLP. The Fund is organized as a Subchapter “C” Corporation and is subject to U.S. federal income tax on taxable income at the corporate tax rate (currently as high as 35%) as well as state and local income taxes. The potential tax benefit of investing in MLPs depends on them being treated as partnerships for federal income tax purposes. If the MLP is deemed to be a corporation, its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution which could result in a reduction of the fund’s value. MLPs may accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation on its investments. This deferred tax liability, if applicable, is reflected in the daily NAV and as a result a MLP fund’s after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked.These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.
OppenheimerFunds is not undertaking to provide impartial investment advice or to provide advice in a fiduciary capacity.