Liberty Street Creates Energy Fund

Liberty Street Advisors has launched the Center Coast MLP Focus Fund, an open-end mutual fund, which will invest in midstream energy infrastructure master limited partnerships (MLPs).

A news release said the fund’s sub-adviser is Center Coast Capital Advisors, a Houston-based investment adviser.

MLPs, represented by the Wells Fargo Securities MLP Index, have provided one of the best risk adjusted rate of returns of any asset class over the past decade, as compared to such indices as the S&P 500, MSCI EAFE, FTSE NAREIT, and Barclays Capital US Corp High Yield Total Return, according to the announcement.

The fund will be managed by Center Coast CEO and founder, Dan Tutcher, as well as by co-founders Steven Sansom and Darrell Horn, and senior portfolio manager, Robert Chisholm.

Direct investments in MLPs have historically created onerous and complex tax obligations, as investors would receive K-1s and, in some cases, State and UBTI tax filings for each MLP owned, the news release said. Investors in the Center Coast MLP Focus Fund will receive a single IRS Form 1099. The fund intends to provide daily liquidity and will be available in A, C, and Institutional share classes.

The Center Coast MLP Focus Fund intends to invest in a focused portfolio of approximately 15 to 20 high quality MLP common units and equity securities of MLP affiliates, mostly involved in midstream energy refining, storing, and transportation. The fund is currently available for purchase through Fidelity and Schwab.