Commentary

OFI Steelpath (MLP sub-advisor)

1 Oct 2016

Market Overview

For the third quarter of 2016, master limited partnerships (MLPs), as measured by the Alerian MLP Index (AMZ), were down 0.8% on a price basis but up 1.1% on a total return basis, or including the impact of distributions. As measured by the Alerian MLP Infrastructure Index (AMZI), a more concentrated measure of midstream MLPs, the sector increased 0.0% on a price basis and 1.9% on a total return basis. For context, the broader market, as measured by the S&P 500, gained 3.3% on a price basis and 3.9% on a total return basis.

1 Jul 2016

Market Overview

For the second quarter of 2016, master limited partnerships (MLPs), as measured by the Alerian MLP Index (AMZ), were up 17.4% on a price basis and 19.7% on a total return basis, or including the impact of distributions. As measured by the Alerian MLP Infrastructure Index (AMZI), a more concentrated measure of midstream MLPs, the sector increased 18.2% on a price basis and 20.6% on a total return basis. For context, the broader market, as measured by the S&P 500, gained 1.9% on a price basis or 2.5% from a total return perspective.

1 Apr 2016

Market Overview

For the first quarter of 2016, master limited partnerships (MLPs), as measured by the Alerian MLP Index (AMZ), were down 6.5% on a price basis and down 4.2% on a total return basis, or including the impact of distributions. As measured by the Alerian MLP Infrastructure Index (AMZI), a more concentrated measure of midstream MLPs, the sector fell 8.0% on a price basis and lost 5.6% on a total return basis. For context, the broader market, as measured by the S&P 500, gained 0.8% on a price basis or 1.3% from a total return perspective.

15 Oct 2015

Market Overview

For the third quarter of 2015, master limited partnerships (MLPs), as measured by the Alerian MLP Index (AMZ), were down 23.5% on a price basis and down 22.1% on a total return basis, or including the impact of distributions. Midstream MLPs, as measured by the Alerian MLP Infrastructure Index (AMZI), fell 23.3% on a price basis and lost 22.0% on a total return basis. For context, the broader market, as measured by the S&P 500 Index, lost 6.9% on a price basis or 6.4% on a total return basis.

1 Jul 2015

Market Overview

For the second quarter of 2015, master limited partnerships (MLPs), as measured by the Alerian MLP Index (AMZ), were down 7.5% on a price basis and down 6.1% on a total return basis, or including the impact of distributions or dividends. Midstream MLPs, as measured by the Alerian MLP Infrastructure Index (AMZI), fell 7.5% on a price basis and lost 6.2% on a total return basis. For context, the broader market, as measured by the S&P 500, returned 0.2% on a price basis or 0.3% on a total return basis.

The energy sector experienced significant weakness over the last month of the quarter as the crude price recovery began to stall and crude oil futures prices began to exhibit weakness.

1 Apr 2015

Market Overview

For the first quarter of 2015, MLPs, as measured by the Alerian MLP Index (“AMZ”), were down 6.6% on a price basis and down 5.2% once distributions or dividends are considered. Midstream MLPs, as measured by the Alerian MLP Infrastructure Index (“AMZI”), fell 6.5% on a price basis and lost 5.1% on a total return basis. For context, the broader market, as measured by the S&P 500 Index, provided a return of 1.0% with price performance contributing 0.4%.

1 Jan 2015

Market Overview

For the fourth quarter of 2014, MLPs, as measured by the Alerian MLP Index (“AMZ”), were down 13.5% on a price basis and down 12.3% once distributions or dividends are considered. Midstream MLPs, as measured by the Alerian MLP Infrastructure Index (“AMZI”), fell 11.5% on a price basis and lost 10.3% on a total return basis. For context, the broader market, as measured by the S&P 500, provided a return of 4.9% with price performance contributing 4.4%. As a result, for the year-ended December 31, 2014, the AMZ and the AMZI generated total returns of 4.8% and 7.6%, respectively, compared to the S&P 500’s 13.7% return.

30 Oct 2014

By OFI Steelpath

 

Market Overview

For the third quarter of 2014, MLPs, as measured by the Alerian MLP Index (“AMZ”), provided a total return of 2.7% with price performance contributing 1.3% and the remainder earned from distributions or dividends paid.

24 Jul 2014

By OFI Steelpath

Market Overview

For the second quarter of 2014, MLPs, as measured by the Alerian MLP Index (“AMZ”), provided a total return of 14.2% with price performance contributing 12.6% and the remainder earned from distributions or dividends. For context, the broader market, as measured by the S&P 500, provided a return of 5.2% with price performance contributing 4.7%. Notably, this represents the first time the AMZ has meaningfully outperformed the S&P 500 index, on both a price and total return basis, since the first quarter of 2013.

16 Apr 2014

Market Commentary

For the first quarter of 2014, MLPs, as measured by the Alerian MLP Index (“AMZ”) provided a total return of 1.9% with price performance contributing only 0.4% and the remainder earned from distributions or dividends. For context, the broader market, as measured by the S&P 500, provided a similar return of 1.8% with price performance contributing a more meaningful 1.3%.

28 Jan 2014

OFI SteelPath Macroeconomic Overview
MLPs underperformed the broader markets in the fourth quarter, lagging behind the S&P 500 by 5.2% on a total return basis. Though performance lagged the broader market, the 5.3% total return provided by the asset class, as measured by the Alerian MLP Index (AMZ), was healthy on an absolute basis and relative to the sector’s historical performance; over the past ten years, average quarterly total return has been 4.2%.

20 Jul 2013

OPPENHEIMER STEELPATH FRONT STREET MLP FUNDS

A Dedicated and Experienced Team
The OppenheimerFunds MLP team consists of seasoned investment professionals specializing in United States energy infrastructure investments. Headquartered in Dallas, Texas, the dedicated team consists of an investment committee, portfolio managers, research analysts and traders who are solely focused on the Master Limited Partnership (“MLP”) space.

1 Feb 2013

Economic Overview and Fund Positioning

A Dedicated and Experienced Team

OFI SteelPath focuses on energy infrastructure investment primarily through the Master Limited Partnership (MLP) asset class. OFI SteelPath has a market leading position and an eight-year track record in MLP investing, including an investment
team with over 50 years of combined energy infrastructure analysis and investment experience. The Investment Team is located in Dallas, Texas, in close proximity to the majority of MLP management teams and the country’s energy industry leaders.

23 Aug 2011

The latest commentary from Steelpath's MLP portfolio management team.

31 Dec 2010

For the month of December, the Alerian MLP Index1 (NYSE: AMZ) rose 1.7% while the broader market ended the year on a high note, up 6.7% for the month, as measured by the S&P 500.

Overview

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Disclaimer:

The opinions expressed herein reflect those of the individual portfolio manager. These opinions are subject to change at any time based on market or other conditions, and Front Street Capital disclaims any responsibility to update such views. These opinions may differ from those of other portfolio managers or of Front Street Capital as a whole.

These views are for informational purposes only and are not intended to be a forecast of future events, a guarantee of future results or investment advice. All data referenced herein are from sources deemed to be reliable but cannot be guaranteed.

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If specific securities are referenced, they have been selected by the portfolio manager on an objective basis to illustrate the views expressed herein. Such references do not include all material information about such securities, including risks, and are not intended to be recommendations to take any action with respect to such securities. Referenced securities may not be representative of the portfolio manager's current or future investments and are subject to change at any time.