MLP Investment Scores

Yorkville believes that stability and growth of income (distribution growth) are the most critical components of the long-term MLP investment thesis.

To better quantify these important drivers of MLP returns, Yorkville is introducing two new metrics: the (1) Yorkville Distribution Stability Score and the (2) Yorkville Distribution Growth Score. These metrics provide an easy way for investors to quickly monitor the sustainability and strength of the asset class’s long-term outlook on a monthly basis.

Stability Score
 

The Stability Score allows for investors to determine the quality and consistency of income on a broad-based level. By looking at distribution cuts across the MLP Universe, investors can get a feel for whether the fundamentals are intact or deteriorating on an asset class basis.

For the quarter, the Yorkville Distribution Stability Score came in at 9.1. This means 91% of all MLPs either maintained or grew their distributions versus last year. This figure excludes variable distribution MLPs and any other MLPs that cut their distribution for non-operating reasons.

2nd Quarter 2017

9.1

The Yorkville Distribution Stability Score quantifies the stability of distributions across the MLP asset class by looking at the number of MLPs which increased, maintained, or cut payouts.

Growth Score
 

The Growth Score is critical for a variety of reasons:

  1. Growth in distributions provides MLP investors with a hedge against inflation.
  2. Growth protects investors amidst rising rate environments.
  3. Growth powers and drives ultimate price outperformance amongst MLPs.

The Yorkville Intrinsic Distribution Growth Rate measures average year-over-year distribution growth adjusted for seasonality, variable distributions, and distribution cuts for non-operating reasons. The Yorkville Intrinsic Distribution Growth Rate was 2.2% for the quarter.

2nd Quarter 2017

2.2%

The Yorkville Intrinsic Distribution Growth Rate measures average year- over-year distribution growth adjusted for seasonality, variable distributions, and distribution cuts for non-operating reasons.