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Author: factoids Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 72  
Subject: New MLP Benchmark Date: 1/7/2010 12:01 AM
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    Swank Energy Income Advisors, an SEC-registered Investment Advisor focused on MLPs and natural resource companies, today announced the launch of the Cushing® 30 MLP Index, a composite of the MLP asset class. The Cushing® 30 MLP Index is an equal-weighted index comprised of 30 MLPs selected for inclusion according to a proprietary valuation system. [The Alerian indexes are cap weighted] Swank Energy believes the Cushing® 30 MLP Index is an optimal measure of the performance of publicly traded energy infrastructure companies.

    Swank Capital founder and managing partner, Jerry Swank commented, "With a current average yield just over 7%, MLPs offer a compelling total return proposition from both current income and capital appreciation. The asset class has also demonstrated sustainability and relative stability throughout this recent, challenging economic environment. We believe there will be strong demand from both retail and institutional investors looking for yield and inflation protection."

    Swank Energy's Cushing® 30 MLP Index has been developed for actual use by portfolio managers and does not include the more commodity-sensitive upstream and shipping MLP sub-sectors. All indices are total return.

Cushing® 30 MLP Index Index constituents:
Name ---------------- Ticker
Alliance Resource Partners ARLP
AmeriGas Partners LP APU
Boardwalk Pipeline Partners BWP
Buckeye Partners LP BPL
Copano Energy LLC CPNO
Duncan Energy Partners Lp DEP
El Paso Pipeline Partners LP EPB
Enbridge Energy Partners LP EEP
Energy Transfer Equity LP ETE
Energy Transfer Partners LP ETP
Enterprise GP Holdings LP EPE
Enterprise Product Partners LP EPD
Genesis Energy LP GEL
Inergy LP NRGY
Kinder Morgan Energy Part LP KMP
Magellan Midstream Partners MMP
Markwest Energy Partners LP MWE
Natural Resource Partners LP NRP
NuStar Energy LP NS
NuStar GP Holdings LLC NSH
ONEOK Partners LP OKS
Plains All American Pipeline PAA
Regency Energy Partners LP RGNC
SPECTRA ENERGY PARTNERS LP SEP
Sunoco Logistics Partners LP SXL
TARGA RESOURCES PARTNERS LP NGLS
TC Pipelines LP TCLP
Western Gas Partners LP WES
Williams Partners LP WPZ
Williams Pipeline Partners WMZ

    The Cushing 'fact sheet' - http://www.cushingmlpindex.com/downloads/MLP_Universe_Fact_S... - makes a pretty good sector update on MLPs - and contains full year 2009 returns for a lot of MLPs.

link to the index - www.cushingmlpindex.com

    Note: Cushing is run by Swank - which runs the SRV MLP CEF. SRV has not been a satisfactory CEF. A comment borrowed from the Investor Village board from a respected member: "Swank is a thief. He charged management expenses on his "deferred tax asset", ie LOSSES, in SRV. Let's see, overstate your NAV by almost 100% by incorporating your loss carry forwards as a REAL asset, and then charge the shareholders your fee on those LOSSES. He should be banned from the business unless they rebate the fees."

    Summation: I like the idea of having two indexes - the cap weighted one and a non-cap weighted one [which has historically done better]. And if Cushing/Swank does a monthly or quarterly Fact Sheet Update - it will be worth a quick read.
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