Alerian MLP and inclusion of NGL Energy Partners into the Alerian MLP Index

Alerian, an independent company is the market leader when it comes to MLP and energy infrastructure market intelligence. The benchmarks, analytical data and data sets provided by this independent company is extensively used by many industry stakeholders in the likes of management teams, research analysts, national media and other investment professionals. The Index series of Alerian is used to help analyse the relative performance and also in order to create index tracking funds. The Alerian MLP Index is the tie up of Algerian’s indices with the MLP equities. Alerian MLP is a leading benchmark.

What is an MLP?

An MLP or a master limited partnership is a form of Partnership Company found in the United States. It follows the category of a limited partnership. It also enjoys the benefits of liquidity of traded securities of the public sector. Hence it enjoys a combination of the benefits from tax of a limited partnership company and the public traded security’s liquidity benefit. MLP Fund is the component of an MLP.

What is the Alerian MLP Index?

The Alerian MLP Index composites of 50 of the most highly prominent energy Master Limited Partnerships who provide new investors with a revolutionized and unbiased benchmark for the asset classes of the investment. This is not only unbiased but completely comprehensive. This form of indexing is formed through a capitalization weighted and float adjusted method. It follows a price return basis. It is also real time decimated making it one of a kind. It also follows a time return basis in certain cases.

Addition of NGL energy partners to the Alerian MLP Index.

In 2013 the Alerian MLP company officials released a statement that NGL Energy Partners will be added to both the Alerian MLP Equal Weight Index and the Alerian MLP index. The company dealt in crude oil, propane logistics and NGL. This company has been added to the list of 50 companies after PAA Natural Gas Storage LP was removed from the list. The addition and deletion though do not forecast any change in the policies of Alerian MLP as the index will be re-balanced after the addition and the deletion.