Cushing 30 MLP Index

High-energy barometer of infrastructure


Open End PERLES on Cushing® 30 MLP TR Index (USD)

I. Energy Infrastructure

Firms engaged in the transport of coal, oil and gas play a key role in this respect. They ensure that the various fuels are moved quickly and smoothly from the places where they are drilled or extracted, to refineries and consumers. In 1987 the US government under the then President Ronald Reagan acknowledged the high importance of energy supplies and laid the legal basis for exchange-listed Master Limited Partnerships (MLPs) which are treated preferentially for tax purposes. By providing the high-cost infrastructure that was required, they also enabled the extraction of shale oil and shale gas to be expanded on a massive scale.

II. Cushing® 30 MLP TR Index (USD)

Meanwhile, the MLP market has now developed into an asset class of its own in the US. The Cushing® 30 MLP TR Index (USD) comprises an equal weighting of 30 North American energy infrastructure MLPs, which mainly operate pipelines and storage facilities for oil and gas. A proprietary points system developed by Swank Capital, LLC is used to select the index members. It takes into account both qualitative and quantitative aspects using a top-down and bottom-up approach.

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