Products May 12, 2010

SteelPath Launches MLP Alpha Fund

SteelPath has announced the launch of the SteelPath MLP Alpha Fund.
Reported by

The fund provides investors a concentrated portfolio of 20 energy infrastructure Master Limited Partnerships (MLPs) intended to result in substantial long-term capital appreciation through distribution growth and a 6.6% yield at present. Infrastructure MLPs generally operate toll-road businesses that do not take title to the commodities they transport, and are unaffected by the level of commodity prices. 

The MLP Alpha Fund provides 1099 tax reporting, qualified dividend treatment of taxable distributions, low investment minimums, and full daily liquidity at a transparent NAV. Taxable investors concerned about the burdens of K-1 filings and investors seeking to invest through IRA and 401(k) plans now have a product to participate in the energy infrastructure MLP asset class through the SteelPath funds, the announcement said. 

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Class A shares of the fund carry a minimum investment of $3,000 for individual investors, while the Class I shares have been created for institutional investors.  

More information is at www.steelpath.com.

The Markets May 12, 2010

401(k) Participants Flocked to Equities in April

401(k) participant transfers were strongly equity-oriented in April, according to the Hewitt 401(k) Index.
Reported by

A total of $288 million moved from fixed-income investments into equities during the month. Excluding company stock fund flows, diversified equities gained transfers of $498 million, Hewitt data showed. In addition, nearly three-quarters (71%) of the days were equity-oriented in April. 

Both large and small U.S. equity funds received large inflows, and together accounted for two-thirds of total transfers. Large U.S. equities gained $227 million and small U.S. equities received $211 million. Lifestyle/premixed funds also received $110 million in transfers during the month. 

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All three fixed-income asset classes experienced outflows in April—mainly from GIC/stable value funds, which lost a total of $294 million. In addition, company stock funds had outflows of $210 million. As the MSCI EAFE Index declined (while domestic markets were up), international funds had net transfers out of $86 million.  

Participants’ overall equity holdings rose by 0.6% in April to 59.5%, due to stock market return and participant transfer activity. GIC/stable value funds held 24.63% of 401(k) assets at the end of the month, while large U.S. equity and lifestyle/premixed held 17.86% and 11.86% of assets, respectively.

Company stock funds accounted for 14.2% of assets at the end of April. 

Employee-only equity contribution was also up—from 60.2% to 60.9% at the end of April. Lifestyle/premixed funds took in 24.19% of participant contributions during the month. Large U.S. equity took in 17.27% and GIC/stable value funds received 18.71% of participant contributions. 

Lifestyle/premixed, GIC/stable value, and large U.S. equity funds were also the biggest receivers of overall contributions to 401(k) plans in April at 23.74%, 17.29%, and 15.96%, respectively. Company stock funds received 13.19% of overall plan contributions during the month. 

The “Hewitt 401(k) Index Observations” for April is here. 

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