Longstanding investors in MLPs (master limited partnerships) have been rewarded for their patience throughout the past three years, as the asset class has been among the strongest performers in listed real assets with the recovery from COVID-19. Today, we see an opportunity for investors to supplant their MLP and midstream energy holdings with listed infrastructure.
We believe listed infrastructure offers:
Existing hydrocarbon exposure that can be tactically managed amid a more comprehensive investment universe with durable investment themes.
Stronger risk-adjusted returns in the long term, and attractive relative valuations today.
A superior potential total return proposition with the opportunity for greater outperformance from active management.
Flush production: The recovery in midstream energy
After peaking in late 2014 with commodity prices, the midstream energy sector embarked on a period of underperfo