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Enterprise Products Partners L.P. Message Board

  • ch4_tycoon ch4_tycoon Jul 20, 2009 3:11 PM Flag

    For those wanting an MLP in an IRA

    You might consider KYN, a closed end fund made up of MLP's. They apparently manage the fund to have little or no UBTI and they send out a 1099 at years end rather than K1....and it is pretty much neck and neck with EPD for the last 6 months

    There top 10 holdings are
    Plains All American Pipeline, LP 11.3%
    Enterprise Products Partners, LP 8.6%
    Kinder Morgan Management, LLC 7.7%
    Inergy, LP 7.5%
    Energy Transfer Partners, LP 7.3%
    Magellan Midstream Holdings, LP 5.7%
    Copano Energy Partners, LLC 5.1%
    MarkWest Energy Partners, LP 4.9%
    Enbridge Energy Partners, LP 4.3%
    Energy Transfer Equity, LP 4.2%

    ...the downside of owning this CEF is that you are paying management fees that can be pretty hefty

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    • or KY jelly

    • or if you want an MLP in an IRA, then why wouldn't you buy an 'IRA-friendly' MLP like CPLP or TOO that issue 1099s instead of K-1s?

    • [1] EPD has produced negative UBTIs the last three years - which means over that time period, it has not been a problem to hold in an IRA.
      [2] Over the LTM [comparing year over year distributions from the second quarter], EPD's distribution is up 5.91%, over the last 24 month the distribution is up 6.38%%/year, and over the last 36 months the distribution is up 6.93%/year.
      [3] Over the LTM, KYN's dividend is down 3.03%, over the last 24 month the distribution is up 2.75%/year, and over the last 36 months the distribution is up 3.88%/year.

      Add to that, as of 7-17, KYN was selling at 124% of NAV. Of course, EPD always sells at 100% of NAV.

      So you - ch4_tycooon, are suggesting one buy a closed end fund at a 24% premium to NAV that is growing the div/distribution substantially slower than EPD . . and you have the belief that it is just as good as EPD because the 'charts' have been close to the same over the last six months????

      {note - while I try to play well with others, I do not get along well with 'chart readers']

      • 1 Reply to factoids2002
      • <<<So you - ch4_tycooon, are suggesting one buy a closed end fund

        No, I am saying that I have seen on this board some folks desiring to hold MLP's in an IRA. The CEF I pointed out would allow for that in a relatively simple fashion.

        I own EPD directly, not in a CEF, and I point out that there are hefty fees to the "privilege" of owning a CEF.

        <<<while I try to play well with others

        You sound more like a prick to me.

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