NBW Capital: NBW Capital: Master Limited Partnerships Investment Review and Outlook 2Q2023
June 30, 2023: Master Limited Partnerships (“MLPs”), as measured by the Alerian Total Return Index (“MLP Index”), had a positive return of 5.38% during the second quarter of 2023. For the year-to-date period ending June 30, 2023, the total return was 9.70%. NBW Capital’s MLP Strategy total returns performed in line with the MLP Index during the second quarter, and trailed the MLP Index year-to-date due in part to the underperformance of C-Corp midstream holdings, which trailed their MLP peers. We view this as a transitory event and anticipate a return to index beating results, in line with our historical record. C-Corp midstream companies have become a bigger part of the MLP investment landscape over the last few years. Although the Alerian Total Return Index remains the industry's standard market benchmark, the Alerian organization has developed a sub-index which includes C-Corps. The sub-index is called the Alerian U.S. Midstream Energy Index. We will include this index in our client reporting going forward for information purposes.
