Source’s US Energy Infrastructure ETF raises us$45m and is now available to european retail investors

Source, a leading European ETP provider, announces the successful passporting of the Source Morningstar US Energy Infrastructure MLP UCITS ETF, which seeks to track the Morningstar® MLP Composite IndexSM (TR) into a number of financial markets in Europe. The ETF provides exposure to US energy infrastructure via Master Limited Partnerships (“MLPs”) and is the first in Europe to offer diversified exposure to this compelling segment of the US energy market…

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Following widespread interest since launch in early May, the ETF now has US$45m in total assets. The ETF is now approved for sale to retail investors in the following jurisdictions: Austria – Finland – France – Germany – Italy –    Norway – Sweden.

About the US energy sector

The US energy landscape is undergoing a profound structural shift.  Domestic energy production has seen extraordinary growth since 2005, as technological advances have allowed the extraction of oil and natural gas from previously inaccessible reserves. Infrastructure is central to this transformation: rising energy production is driving a significant expansion of energy infrastructure, across the US.  MLPs are key players in this build-out. They own and operate many of the US’s core infrastructure assets, including pipelines, storage facilities, gathering systems and processing facilities.  Although structured as partnerships, MLPs are listed and traded on US exchanges like conventional shares.

Historically, MLPs have generated stable cash flows, with relatively low sensitivity to commodity prices, and have typically paid out a high percentage of cash flows to investors. As such, they can offer an interesting opportunity to investors. The Source Morningstar US Energy Infrastructure MLP UCITS ETF offers diversified exposure to MLPs via the Morningstar® MLP Composite IndexSM (TR), a transparent, rules-based index. Launched in 2010, the index targets 97% of the MLP universe, by market capitalisation, and currently comprises 39 constituents.

The Source Morningstar US Energy Infrastructure MLP UCITS ETF is listed on the London Stock Exchange. It has a management fee of 0.50% per annum and is available in reinvesting and distributing share classes.

PRODUCT SUMMARY

Source UK Services Limited is authorised and regulated by the Financial Conduct Authority in the UK.

Source: ETFWorld.co.uk  – Source