Yorkville Capital Management said it created 11 sector indices and 4 composite indices that will track the performance of master limited partnerships that get traded on public exchanges.
Yorkville, which invests in master limited partnership, said the 11 sector indices include:
The Yorkville MLP Refined Product Pipelines and Terminals Index; the Yorkville MLP Gathering & Processing Index; the Yorkville MLP NGL Pipelines Index; the Yorkville MLP Marine Transportation Index; the Yorkville MLP Propane Index; the Yorkville MLP Natural Resources Index; the Yorkville MLP Exploration & Production Index; the Yorkville MLP General Partners Index; the Yorkville MLP Exploration & Production Index; Yorkville PTP Legacy Partnerships Index and the Yorkville PTP Financials Index.
These in turn are aggregated into four broader, composite indices: the Yorkville PTP Universe Index; the Yorkville MLP Universe Index; the Yorkville MLP Infrastructure Universe Index; and the Yorkville MLP Commodity Universe Index.
The methodology behind the development of the indices can be found in the firm’s white paper, Yorkville Publicly Traded Partnerships Universe Indices: A Complete Study of Risk and Return (1986-2011).
The data is designed to help investors evaluate the correlation, risk and performance of this asset to other classes.
“The lack of education on MLPs has left the asset class both underutilized and misunderstd,” said Yorkville Capital Management founder Darren Schuringa in a statement. “Our goal in both releasing this white paper and creating a family of benchmarks is to empower investors by offering the most complete and accurate view of the MLP and PTP asset class.”
Publicly traded partnerships are limited partnerships which are traded on public exchanges. According to the Yorkville studyu, 84.2% of Publicly Traded Partnerships are Master Limited Partnerships.
In PTPs and MLPs typically there are two types of: the limited partners that provide capital by buying into security, and the general partner that manages the partnership.
The products are marketed as combining the tax advantages of limited partnerships with the liquidity of public securities.
In order to qualify for the tax benefits, the funds have to derive most of their income from a single sector, such as real estate, commodities or natural resources and energy.
Yorkville launched its first exchange traded fund in the market, the Yorkville High Income MLP ETF, in December. The ETF tracks MLPs specializing the production and transportation of natural resources.