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Dreyfus and The Boston Company Launch MLP Mutual Fund to Invest in Energy Infrastructure

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.