Press Release Source: Alerian On Tuesday July 13, 2010, 9:35 am EDT
DALLAS, July 13 /PRNewswire/ -- Alerian announced today that UBS AG has launched an Exchange-Traded Note (ETN) listed on NYSE Arca under ticker symbol "MLPG" that provides investors single-security exposure to the Alerian Natural Gas MLP Index (NYSE:ANGI - News).
The Alerian Natural Gas MLP Index is a midstream-focused subset of Master Limited Partnerships (MLPs) whose constituents earn the majority of their cash flow from the transportation, storage, and processing of natural gas and natural gas liquids. The index provides diversified, hard-asset exposure to the expansion of existing natural gas infrastructure, as well as the substantial new investment required to accommodate ongoing geographical supply shifts associated with shale gas development.
"Investor interest in the US natural gas industry has dramatically increased over the last decade as improvements in drilling techniques have made the Marcellus and Haynesville shale plays economic and prolific," said Alerian President and CEO Kenny Feng. "We are excited to partner with UBS again in providing investor access to this critical component of US energy infrastructure."
The ETN will track the change in value of the Alerian Natural Gas MLP Index and pass on the corresponding distributions from the underlying companies as a quarterly coupon, net of fees. Unlike directly investing in MLPs, investors will not receive K-1s, but instead will receive one Form 1099 reflecting the distribution pass-through as ordinary income.
About Alerian
Alerian is an independent company that provides objective market information. The company is a leader in MLP-market intelligence, providing benchmarks, data sets, and analytics that are used extensively by a range of stakeholders such as investment banks, stock exchanges, investment professionals, consultants, and Master Limited Partnerships. The Alerian Index Series is used for the purposes of asset allocation, investment analysis, portfolio hedging, and the creation of index tracking funds. Alerian is widely known for maintaining the leading benchmark of MLP equities: the Alerian MLP Index (NYSE:AMZ - News). For more information, please visit www.alerian.com. |
