MEMPHIS, Tenn.--(BUSINESS WIRE)--The MainGate MLP Fund has received Morningstar’s five-star rating within the research firm’s Equity Energy category based on three-year performance ending 2/28/14. The Fund also is ranked #1 out 101 Equity Energy Funds based on three-year performance ending 2/28/14. Past performance does not guarantee future results.
“We are honored to receive the 5 star Morningstar rating for the three year return of the MainGate MLP Fund,” says Matthew G. Mead, CEO MainGate MLP Fund. “This recognition is an honor for the entire MainGate investment team,” he concluded.
The MainGate MLP Fund is one of the first to offer mutual-fund investment access to Master Limited Partnerships (MLPs) — publicly traded entities that are significant owners of U.S. energy infrastructure. It provides a means of investing in MLPs with the liquidity, transparency and flexibility of a mutual fund as well as the consolidated tax reporting of a single 1099 rather than multiple K-1s. Constructed with a total-return perspective and a focus on managing risk, The MainGate MLP Fund seeks to pursue the generation of income combined with the appreciation of capital. Managed by Chickasaw Capital Management, the Fund — in the current environment — concentrates on MLP interests that it deems attractive in today's market based on a variety of key considerations.
The MainGate MLP Fund offers two classes, which both launched on February 17, 2011 at $10 per unit: Class A shares (AMLPX; $2,500 minimum initial investment) and Class I shares (IMLPX; $1,000,000 minimum initial investment).
About Chickasaw Capital Management
Chickasaw Capital Management, LLC is a leading MLP investment manager serving institutions and high net-worth individuals. The firm’s investment professionals have been continuously involved with the MLP market since the early days of the structure and have played a direct role in the evolution of the MLP space — including their involvement with MLP IPOs and innovative capital funding techniques. The firm’s leaders maintain longstanding relationships with MLP management teams, providing a strong foundation for their intellectual capital in this dynamic market. To learn more, visit www.chickasawcap.com.
About Master Limited Partnerships (MLPs)
An MLP is a publicly traded entity that is listed on the major U.S. stock exchanges and conforms to the same accounting, reporting and regulations as any publicly traded corporation. MLPs are significant owners of America’s energy infrastructure, controlling substantial assets involved in the transportation, processing and storage of the nation’s energy resources. These assets include major pipeline systems that deliver products such as natural gas, crude oil and refined fuels to end markets.
About Morningstar, Inc. and the Star Ratings System
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. Morningstar rates mutual funds from one to five stars based on how well they have performed in comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star. To learn more, visit www.morningstar.com.
The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 855.MLP.FUND (855.657.3863). Read it carefully before investing.
Mutual fund investing involves risk. Principal loss is possible. The Fund is nondiversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual security price volatility than a diversified fund. The Fund will invest in Master Limited Partnerships (MLPs) which concentrate investments in the natural resource sector and are subject to the risks of energy prices and demand and the volatility of commodity investments. Damage to facilities and infrastructure of MLPs may significantly affect the value of an investment and may incur environmental costs and liabilities due to the nature of their business. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment. Investments in smaller companies involve additional risks, such as limited liquidity and greater volatility. Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods. MLPs are subject to certain risks inherent in the structure of MLPs, including complex tax structure risks, limited ability for election or removal of management, limited voting rights, potential dependence on parent companies or sponsors for revenues to satisfy obligations, and potential conflicts of interest between partners, members and affiliates.
Past performance does not guarantee future results.
Earnings growth for a Fund holding does not guarantee a corresponding increase in the market value of the holding or the Fund.
Opinions expressed are those of MainGate and are subject to change, are not guaranteed, and should not be considered investment advice.
An investment in the Fund does not receive the same tax advantages as a direct investment in the MLP.
The Fund is treated as a regular corporation or “C” corporation and is therefore subject to U.S. federal income tax on its taxable income at rates applicable to corporations (currently at a maximum rate of 35%) as well as state and local income taxes.
MLP Funds 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 of its investments. This deferred tax liability is reflected in the daily NAV and as a result the MLP Fund’s after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked.
The potential tax benefits from investing in MLPs depend on them being treated as partnerships for federal income tax purposes.
If the MLP is deemed to be a corporation then its income would be subject to federal taxation, reducing the amount of cash available for distribution to the Fund which could result in a reduction of the Fund’s value.
Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and is not exhaustive. MLPs and MLP investments have unique tax characteristics. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.
© Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
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