US-headquartered State Street Global Advisors (SSgA), the asset management business of State Street Corporation, has rolled out the SSgA S&P MLP Index Strategy.
This strategy enables institutional investors to gain exposure to master limited partnerships (MLPs) and other related securities of firms in the energy infrastructure sector, including those engaged in transportation, storage, refining, marketing, exploration, production, and processing of minerals and natural resources.
According to SSgA, the S&P MLP Index strategy is managed using a replication methodology to proportionally invest in the securities comprising the S&P MLP Index, and is currently implemented as separately managed accounts.
The total annualized returns and distribution rate of the S&P MLP Index as of 30 June 2012 are 7.72% (1-year), 26.88% (3-year) and 9.62% (5-year) with a distribution rate of 5.99%.
SSgA senior managing director and Global Equity Beta Solutions CIO Lynn Blake said the current growth in the energy infrastructure industry offers opportunities to investors seeking to diversify their portfolio while generating stable revenue streams.
"With SSgA’s S&P MLP Index strategy, clients have access to an alternative asset class with high historical returns and distribution rates," Blake said.