Miller/Howard MLP Fundamental Index®*

Overview

About This Index

The Miller/Howard MLP Fundamental Index is a composite of 25 energy master limited partnerships (MLPs) that uses modified equal weighting based on certain quantitative fundamental factors of publicly traded MLPs. The index seeks to go beyond cap-weighted MLP exposure, focusing on fundamental factors that we've identified as potential key drivers of total return performance.

Selection Criteria:

  • Distribution Growth
  • Distribution Coverage
  • Estimated Fiscal Year Capital Expenditure

Key Ranking Factors

The index utilizes three main factors in its selection process: distribution growth, distribution coverage, and estimated capital expenditures. In addition, a portion of the index is allocated to mid- and small-cap MLPs.

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Eligibility Requirements

  • Must be listed on the New York Stock Exchange (including NYSE Arca and NYSE Amex) or NASDAQ.
  • Must have existed for at least 12 months.
  • Must be an energy MLP or general partner.
  • No distribution cut in previous year.
  • Market capitalization of at least $500 million.
  • Above certain three-month-average daily trading volume thresholds.

News

October 13, 2017—Western Refining Logistics LP (WNRL) is expected to be removed from the Miller/Howard MLP Fundamental Index in a special rebalancing. WNRL will cease to trade due to its merger with Andeavor Logistics LP (ANDX). The rebalance will take place one full trading day after confirmation that the merger has completed. The replacement candidate for WNRL will be Shell Midstream Partners LP (SHLX). SHLX will enter the index at WNRL's weight.

The WNRL/ANDEX Merger is expected to be completed on October 30, 2017. The special rebalance is likely to occur October 31, 2017 at the close.

Sector Weights


As of selection date 8/18/2017

Index Information


Tickers
Price Return MLPMP
Total Return MLPMH
Inception Date August 23, 2013
Calculated by Chicago Board Options Exchange
Rebalancing Quarterly

Index Portfolio Characteristics


Number of Companies 25
15 MLPs from Large Group equal weighted at 5%
10 MLPs from Mid-Small Group equal weighted at 2.5%

Document Links

Linked Products

Performance

Growth of $100 (7 years as of 6/30/2017)*
MLPMH Performance Source: Morningstar Direct.
Annualized Performance
(as of 6/30/2017)*
1 Year 3 Years 5 Years 7 Years
MHI MLP Fundamental Index 5.02 (12.68) 2.41 7.45
Alerian MLP Index 0.40 (11.23) 1.77 6.02
S&P 500 Index 17.9 9.61 14.63 15.41
Source: Morningstar Direct. Parentheses represent negative performance data.
 MHI MLP Fundamental Index
 Alerian MLP Index
 S&P 500 Index

*Miller/Howard Investments, LLC conducted a back test for the MLP Fundamental Index going back to the selection date of November 21, 2008 (Invest Date: November 28, 2008). For the back test, the threshold for the three-month average daily value was waived for all selection dates, excluding the selection date conducted on August 16, 2013. For the historical date November 21, 2008, the Market Capitalization requirement of $500 million was reduced to $400 million to ensure an eligible universe of at least 25 companies. The Market Capitalization requirement was used on all following selection dates. Annualized Performance and Growth of $100 noted above are based on the back test for the period November 28, 2008 to August 22, 2013.

Past performance does not guarantee future results.

Constituents

Miller/Howard Fundamental Index® Holdings Special Rebalance Date 9/15/2017
Large Cap Group / Company Ticker
Antero Midstream Partners AM
Andeavor Logistics LP ANDX
AmeriGas Partners LP APU
Buckeye Partners LP BPL
Enterprise Products Partners LP EPD
EQT GP Holdings LP EQGP
EQT Midstream Partners LP EQM
Energy Transfer Equity LP ETE
Energy Transfer Partners LP ETP
Magellan Midstream Partners LP MMP
MPLX LP MPLX
Phillips 66 Partners LP PSXP
Spectra Energy Partners LP SEP
Western Gas Partners WES
Western Gas Equity Partners WGP

Mid-Small Cap Group / Company Ticker
Boardwalk Pipeline Partners LP BWP
Dominion Energy Midstream Partners LP DM
Genesis Energy LP GEL
Holly Energy Partners LP HEP
NuStar Energy LP NS
Rice Midstream Partners LP RMP
TC Pipelines LP TCP
Tallgrass Energy Partners LP TEP
Valero Energy Partners LP VLP
Western Refining Logistics LP WNRL
Total Members 25
Download Constituents List

*Fundamental Index® is a registered trademark of Research Affiliates, LLC, which is used under license by Miller/Howard Investments, Inc.

The securities identified and described above do not represent all of the securities purchased, sold or recommended for client accounts, or all securities considered as a candidate for inclusion in the Index. The reader should not assume that an investment in the securities identified was or will be profitable.

Past performance does not guarantee future results.


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