Dreyfus and The Boston Company Launch MLP Mutual Fund to Invest in Energy Infrastructure
BNY Mellon Sees Opportunity for Retail Investors to Gain Exposure to Attractive Yield and Total Return Potential of Asset Class
NEW YORK, April 30, 2015 – The Dreyfus Corporation and The Boston Company Asset Management (TBCAM), both businesses of BNY Mellon, have launched the Dreyfus MLP Fund, which provides individual investors with an opportunity to invest in the entities which own and operate the critical infrastructure underpinning the energy industry in the U.S.
The fund primarily invests in master limited partnerships (MLPs) and related entities which own and operate assets used in the midstream segment of energy infrastructure such as oil and gas pipelines, storage terminals, gathering systems, processing plants and export facilities.
The MLP market has matured and grown to support the build out of the U.S. energy infrastructure, according to Bart Grenier, chief executive officer and chief investment officer of TBCAM, the sub-adviser to the MLP fund. He added, “MLPs are designed to provide a tax efficient way to invest in energy infrastructure. The Dreyfus MLP Fund aims to provide access to the MLP asset class, while focusing on strong current yield and total return. Our portfolio managers use an event-driven approach and actively seek to identify catalysts which have the potential to drive stock appreciation.”
Grenier added, “This is an attractive investment segment as it is composed of assets that deliver critical services to energy providers and tend to have long-term, fee-based contracts; yet they are difficult to replace in an industry with high barriers to entry.”
The fund is managed by Robert A. Nicholson and Zev D. Nijensohn, who joined TBCAM in November, 2014, as senior managing directors and senior portfolio managers from Pine Cobble Capital LLC, which they co-founded in 2007. The team manages TBCAM’s Energy Infrastructure MLP strategy for institutional investors which they launched in April 2013.
“Energy infrastructure is an attractive investment area for active managers such as TBCAM,” said Nijensohn. “It is a market sector that generally is not widely followed or held in portfolios by traditional asset managers. In addition, we believe it is a dynamic operational and transaction environment, driven by large capital projects, joint ventures and acquisitions, creating a robust environment for event-driven investing.”
Nicholson added that this has been attractive asset class for the last decade. “We believe the recent dislocation in energy markets provides an opportune time to bring this strategy to retail investors. The mutual fund structure provides investors with daily liquidity, transparency and flexibility along with the simplified tax reporting of a 1099 rather than multiple K-1s,” he said.
The Boston Company Asset Management, LLC, a BNY Mellon Investment Management boutique, provides active equity investment-management services for corporate, public, mutual funds and union sponsored and jointly trusteed retirement plans, endowments and foundations. Assets are managed by The Boston Company as well as its personnel acting as dual officers of either The Dreyfus Corporation or The Bank of New York Mellon.
The Dreyfus Corporation, established in 1951 and headquartered in New York City, is one of the nation's leading asset management and distribution companies currently managing more than $284 billion in mutual funds and other cash management vehicles. MBSC Securities Corporation is a Dreyfus subsidiary.
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.7 trillion in assets under management. It encompasses BNY Mellon’s affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of March 31, 2015, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.7 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.
All information source BNY Mellon as of March 31, 2015. This press release is qualified for issuance in the US only and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Investment Management to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. A BNY Mellon Company.
Asset allocation and diversification cannot guarantee a profit or protect against loss.
Master Limited Partnership (MLP) investments involve risks that differ from investments in common stock, including risks related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential conflicts of interest between the MLP and the MLP's general partner, cash flow risks, dilution risks and risks related to the general partner's right to require unit-holders to sell their common units at an undesirable time or price. Under normal circumstances, the fund concentrates its investments in the energy sector, focusing on energy infrastructure MLPs, and may, therefore, be more susceptible to the risks affecting such sector and MLPs. In addition, the fund's performance may be more vulnerable to changes in the market value than more broadly diversified funds. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in the underlying assets. A small investment in derivatives could have a potentially large impact on the fund’s performance. Short sales may involve substantial risk and “leverage.” Short sales expose the fund to the risk that it will be required to buy the security sold short at a time when the security has appreciated in value, thus resulting in a loss. Exposure to the commodities markets may subject the fund to greater volatility than investments in traditional securities.
Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. To obtain a prospectus, or a summary prospectus, if available, that contains this and other information about the fund, investors should contact their financial advisors or visit Dreyfus.com. Investors should read the prospectus carefully before investing.
MBSC Securities Corporation, distributor.