ETF (UCITS compliant)

L&G US Energy Infrastructure MLP UCITS ETF

Fund facts

Fund size*
$33.9m
Base currency
USD
Listing date
19 May 2014
Domicile
Ireland
Index ticker
SOLEIMLP
Replication method
Synthetic - unfunded swap backed by collateral

Statistics

*As at 27 Sep 2021

Fund aim

The L&G US Energy Infrastructure MLP UCITS ETF (the "ETF") aims to track the performance of the Solactive US Energy Infrastructure MLP Index (the "Index").

  • Income distribution

MLPs pay out a vast majority of their operating cash flows as cash distributions

  • Tax efficiency

MLPs are pass-through entities that do not pay tax at the corporate level

  • Midstream MLPs

Cash flows of midstream MLPs such as pipelines and storage facilities have historically been less correlated to energy prices

US Energy Infrastructure MLP Index

The Index aims to track the performance of a basket of master limited partnerships (‘MLPs’) in the midstream segment of the US energy infrastructure market.

The Index is comprised of Master Limited Partnerships (“MLPs”) that are publicly traded on US stock exchanges that derive the majority of their revenues from owning and operating assets used in energy logistics, including: pipelines, storage facilities and other assets used for transporting, storing, gathering, and processing natural gas, natural gas liquids, crude oil and/or refined products.

An MLP is only eligible for inclusion in the Index if it: (1) is of a sufficient size (determined by reference to the total market value of its units); (2) is sufficiently “liquid” (a measure of how actively its units are traded on a daily basis); and (3) makes at least one “distribution” payment to investors each year (similar to a dividend paid by a company). The eligible MLPs are then ranked according to their (1) “forward looking distribution yield” (i.e. the projected value of their future distributions) and (2) “distribution stability” (i.e. how consistent their distributions are in terms of value). The top 25 ranking MLPs are then selected for inclusion in the Index and are weighted equally.

Index data

Provider
Solactive
Bloomberg code
SOLEIMLP
Reuters code
.SOLEIMLP
Type
Net Total Return
Website
www.solactive.com

Performance

Source: Lipper.

Performance (%)
Select period:
Change

    Performance summary (%)

    As at 31 Aug 2021

    CumulativeFundBenchmark
    1 month-4.10-4.02
    6 months17.0817.55
    Year to date37.6338.34
    3 years-2.040.23
    5 years-5.46-1.31
    Since launch-28.53-
    AnnualisedFundBenchmark
    1 year66.15-
    3 years-0.680.08
    5 years-1.12-0.26
    Since launch--

    As at 30 Jun 2021

    CumulativeFundBenchmark
    Quarterly21.7421.99
    Year to date53.6554.22
    3 years16.6319.39
    5 years8.0612.84
    Since launch-20.21-
    AnnualisedFundBenchmark
    1 year92.4593.78
    3 years5.266.08
    5 years1.562.44
    Since launch--
    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

    Rolling 12-month performance to last quarter end (%)

    12 months to 30 June 2017 2018 2019 2020 2021
    Fund6.08-12.663.67-41.5492.45
    Benchmark7.24-11.864.83-41.2393.78

    Calendar year performance (%)

    2016 2017 2018 2019 2020
    Fund22.03-8.47-14.794.57-20.09
    Benchmark23.37-7.58-13.925.72-19.85

    Monthly performance (%)

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund66.15-0.68-1.12-
    Benchmark-0.08-0.26-

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund92.455.261.56-
    Benchmark93.786.082.44-

    Performance for the USD Distributing ETF class in USD, listed on 19 May 2014. Source: Lipper. Performance assumes all ETF charges have been taken and that all income generated by the investments, after deduction of tax, remains in the ETF.

    Past performance is not a guide to the future.

    Portfolio

    As at 31 Aug 2021. All data source LGIM unless otherwise stated. Totals may not sum to 100% due to rounding.

    The breakdowns below relate to the Index.

    Sector (%)

    Energy100.0

    Currency (%)

    USD100.0
    Top 10 constituents73.9
    Rest of Index26.1
    No. of constituents in Index16

    Top 10 constituents (%)

    Energy Transfer Partners11.6
    Magellan Midstream Partners11.2
    BP Midstream Partners10.2
    Plains All American Pipeline10.0
    Phillips 66 Partners5.5
    DCP Midstream5.4
    Enable Midstream Partners5.3
    MPLX5.0
    Crestwood Equity Partners4.9
    Western Midstream Partners4.8

    Country (%)

    United States100.0

    Investment Manager

    GO ETF Solutions LLP is the investment manager for this ETF and is responsible for its day-to-day investment management decisions. The team is highly experienced with respect to all aspects relating to the management of an ETF portfolio, including collateral management, OTC swap trading, adherence to UCITS regulations and counterparty exposure and monitoring.

    Literature

    Marketing documents

    Income

    Latest dividends

    of

    Dividend history

    Total dividends paid in each financial year of the fund.

    Prices

    Name
    USD Inc
    Currency
    USD
    NAV
    4.41
    Price time
    16:00 EST (NY)

    Further details

    Charges

    TER
    0.27%

    Management / administration

    Issuer
    Legal & General UCITS ETF Plc
    Depositary and Trustee
    The Bank of New York Mellon SA/NV, Dublin Branch
    Securities regulator
    Central Bank of Ireland

    Country registration

    This share class is registered for sale in the following countries:

    Listings

    Details
    Codes
    ExchangeCurrencyTickerListing dateISINBloomberg codeReuters codeTrading hours (local)
    London Stock ExchangeGBPMLPX19/05/2014IE00BHZKHS06MLPX LNMLPX.L08:00 - 16:30
    London Stock ExchangeUSDMLPI19/05/2014IE00BHZKHS06MLPI LNMLPI.L08:00 - 16:30
    Borsa ItalianaEURMLPI11/09/2014IE00BHZKHS06MLPI IMMLPI.MI09:00 - 17:30
    Deutsche BörseEURXMLP19/05/2014IE00BHZKHS06XMLP GYXMLP.DE09:00 - 17:30
    SIX Swiss ExchangeCHFMLPI08/09/2014IE00BHZKHS06MLPI SWMLPI.S09:00 - 17:30

    Key risks

    The value of an investment and any income taken from it is not guaranteed and can go down as well as up. You may not get back the amount you originally invested.

    Past performance is not a guide to the future.

    An investment in the ETF may expose an investor to the risks associated with interests in MLPs. For certain MLPs, the general partner (GP) and limited partnership (LP) are controlled and run by the same management teams. Some potential areas of conflict include (1) the price at which the MLP is acquiring assets from the GP, (2) the GP aggressively increasing the distribution to achieve the 50%/50% split level instead of managing distribution growth to maximize the long-term value of the underlying MLP, (3) the potential for management to place the interests of the parent corporation or the GP above the interests of the LP holders, and (4) underlying MLP equity issuances to fund growth initiatives benefit the GP regardless of whether the acquisition or project is accretive.

    While there is no legislation currently aimed at MLPs, a removal or alteration of MLPs' tax treatment could negatively affect performance. Further, legislation aimed at the oil and gas industry could affect MLPs. In addition, in the event the ETF gains exposure to the Index through direct acquisition of the components of the Index, there may be certain withholding tax implications on capital gains and /or income which may affect the ability for the ETF to track the Index accurately.

    If a swap counterparty is no longer willing or able to continue entering into swaps with the ETF, the ETF will not be able to continue tracking the Index.

    MLPs are highly reliant on equity and debt markets to fund growth. Because MLPs pay out the majority of their cash to holders, they must continually access the debt and equity markets to finance growth. If MLPs were unable to access these markets or could not access these markets on favourable terms, this could affect price performance and inhibit long-term distribution growth.

    Some MLPs have significant exposure to commodity price fluctuations, including partnerships involved in oil and gas production, gathering and processing, and coal. In addition, MLP unit prices tend to move with a potential high correlation to commodity prices.

    MLPs have generally underperformed during periods of rapidly rising interest rates. Thus, during periods when investors anticipate rapidly rising rates in the future or if rates were to rise faster than expected, this could affect performance.

    MLPs are regulated across a number of industries. Interstate pipelines in the US are regulated by the Federal Energy Regulatory Commission. Coal is one of the most heavily regulated industries in the country, being subject to regulation by federal, state, and local authorities in the US. A change in the regulation of hydraulic fracking could reduce drilling activity and infrastructure needs. Any number of regulatory hurdles could affect MLPs' ability to grow.

    For more information, please refer to the key investor information document.

    Important information

    In the United Kingdom and outside the European Economic Area, it is issued by Legal & General Investment Management Limited, authorised and regulated by the Financial Conduct Authority, No. 119272. Registered in England and Wales No. 02091894 with registered office at One Coleman Street, London, EC2R 5AA.

    In the European Economic Area, it is issued by LGIM Managers (Europe) Limited, authorised by the Central Bank of Ireland as a UCITS management company (pursuant to European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 (S.I. No. 352 of 2011), as amended) and as an alternative investment fund manager with “top up” permissions which enable the firm to carry out certain additional MiFID investment services (pursuant to the European Union (Alternative Investment Fund Managers) Regulations 2013 (S.I. No. 257 of 2013), as amended). Registered in Ireland with the Companies Registration Office (No. 609677). Registered Office: 70 Sir John Rogerson’s Quay, Dublin, 2, Ireland. Regulated by the Central Bank of Ireland (No. C173733).

    LGIM Managers (Europe) Limited operates a branch network in the European Economic Area, which is subject to supervision by the Central Bank of Ireland. In Italy, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Commissione Nazionale per le società e la Borsa (“CONSOB”) and is registered with Banca d’Italia (no. 23978.0) with registered office at Via Uberto Visconti di Modrone, 15, 20122 Milan, (Companies’ Register no. MI - 2557936). In Germany, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the German Federal Financial Supervisory Authority (“BaFin”). In the Netherlands, the branch office of LGIM Managers (Europe) Limited is subject to limited supervision by the Dutch Authority for the Financial Markets (“AFM“) and it is included in the register held by the AFM and registered with the trade register of the Chamber of Commerce under number 74481231. Details about the full extent of our relevant authorisations and permissions are available from us upon request.

    We are a member of the Irish Funds Association.

    All features described on this website are those current at the time of publication and may be changed in the future. Nothing on this website should be construed as advice and it is therefore not a recommendation to buy or sell securities. If in doubt about the suitability of this product, you should seek professional advice. Copies of the prospectus, key investor information document, annual and semi-annual reports & accounts are available free of charge on request or at www.lgimetf.com.

    This website is only directed at investors resident in jurisdictions where our funds are registered for sale. It is not an offer or invitation to persons outside of those jurisdictions. We reserve the right to reject any applications from outside of such jurisdictions.

    Source and third party data

    Source: Unless otherwise indicated all data contained on this website is sourced from Legal & General Investment Management Limited.

    Where this document contains third party data ('Third Party Data’), we cannot guarantee the accuracy, completeness or reliability of such Third Party Data and accept no responsibility or liability whatsoever in respect of such Third Party Data

    Index disclaimer

    The L&G US Energy Infrastructure MLP UCITS ETF (the “ETF”) is not sponsored, promoted, sold or supported by the Solactive AG. Nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade mark or the Index Price, at any time or in any other respect.

    The Solactive US Energy Infrastructure MLP Index TR (the “Index”) is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards Legal & General UCITS ETF Plc, Solactive AG has no obligation to point out errors in the Index to third parties including, but not limited to, investors and/or financial intermediaries of the Financial instrument. Solactive AG does not guarantee the accuracy and/or the completeness of the Index or any related data, and shall not have any liability for any errors, omissions or interruptions therein.

    Neither publication of the Index by Solactive AG, nor the licensing of the Index or Index trade mark, for the purpose of use in connection with the ETF, constitutes a recommendation by Solactive AG to invest capital in said ETF nor does it, in any way, represent an assurance or opinion of Solactive AG with regard to any investment in this ETF. In no event shall Solactive AG have any liability for any lost profits or indirect, punitive, special or consequential damages or losses, even if notified of the possibility thereof.

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