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White Papers
Master Limited Partnerships

Master limited partnerships (MLPs) serve an important role in a diversified investment portfolio. In addition to an attractive total return, MLPs provide portfolio diversification and a potential hedge against unanticipated inflation

Introduction

A master limited partnership (MLP) is a publicly traded partnership that receives preferential tax treatment if at least 90% of its gross income is from qualifying sources. Qualifying income includes “…income and gains derived from the exploration, development, mining or production, processing, refining, transportation (including pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resource (including fertilizer, geothermal energy, and timber)….”1 More simply put, MLPs provide investors with the liquidity of stocks with the income stability of bonds, with a preferential tax benefit.

 

Read Canterbury's white paper on Master Limited Partnerships

 

1.  U.S. Code, Title 26, Internal Revenue Code, Subtitle F, Chapter 79, Subsection 7704.