12 MLPs Report: 6.8% 2Q Growth

Wunderlich reports: "Twelve master limited partnerships (MLPs) have reported distributions earned in calendar 2Q10 and payable in 3Q10, representing 33% of total MLP market cap. We estimate ~6.8% market-capitalization weighted year-over-year growth and 1.6% sequential growth so far this quarter. Equal weighted, year-over-year growth has outperformed last year by 6.8%. Our valuation of the Alerian MLP Index (AMZ-$330.34) at $312 assumes forward growth of 5% versus the 6.8% posted thus far this quarter." Wunderlich suggests to consult a Tax Advisor, as units of many MLPs will provide a Schedule K-1 for investors and may produce unrelated business taxable income in tax-exempt accounts such as IRAs and 401Ks. We suggest investors consult a tax advisor prior to purchase.