Paul Baiocchi, Senior Investment Strategy Advisor, SS&C ALPS Advisors discusses the energy sector’s recent performance along with key trends in real assets.
Since oil prices briefly went negative in April of 2020, oil demand has seen a stable and gradual uptick. Despite COVID-19’s initially devastating impact on gasoline demand, the quicker than expected recovery has driven MLP and Midstream company stock prices to rebound since their march 18th all-time lows.
Many energy-focused companies experienced significant losses in the second quarter of 2020. Moving forward, Baiocchi expects that the volumes at which these companies are operating will dramatically improve due to the concrete changes they had implemented prior to the pandemic. For example, many of these companies shifted from a growth spending model to a more flexible, protective spending model. This change is one way they have set themselves up to bounce back faster from market volatility. Both the Alerian MLP ETF (AMLP) and Alerian Energy Infrastructure ETF (ENFR) have closely followed market trends and are benefitting from strategic adjustments made before the market collapse in 2020. They are expected to recover as the industry as a whole stabilizes in the following months. In a recent webcast, Baiocchi and Alerian’s Stacey Morris expand on the political and tax implications facing the energy sector in 2020.
Ultimately, investors can diversify their portfolio with exposure to real assets. Energy infrastructure companies, in particular, aim to generate inflation-protected cash flows under long-term contracts. Alerian provides advisors with the indexing, data, and research they need to successfully analyze the energy and master limited partnership (MLP) asset classes. MLPs within the energy infrastructure space are designed to offer investors income potential, diversification and certain tax advantages. SS&C ALPS Advisors has been championed for its expertise in the ETF space since 1995. It is a subsidiary of SS&C Technologies Holdings, the world’s largest hedge fund and private equity administrator.
Paul is a Senior Distribution Support Analyst at SS&C ALPS, spearheading the firm’s distribution strategy and execution for the Alerian MLP and Energy Infrastructure ETF suite. Paul works closely with the distribution teams to tailor the firm’s messaging for AMLP and ENFR to meet the needs of a varied institutional investor base. In addition to providing subject matter expertise in client meetings, Paul supports the marketing and PR teams while also aiding the research efforts of SS&C ALPS in the MLP and Energy Infrastructure space. Prior to joining the firm, Paul was Vice President of ETF Business Development at Fidelity Institutional Asset Management where he helped build and grow the firm’s ETF lineup for 6 years. Previously, he worked at ETF.com, building an ETF analytics platform, writing about the ETF industry and moderating panels at Inside ETFs conferences. Paul has been in the Financial Services industry for 16 years. He holds a Bachelor’s degree in Business Administration from California State University at Chico, an MBA from the University of British Columbia’s Sauder School of Business and is a CFA Charterholder.
To learn more, head here. ALPS’ Baiocchi On MLPs & The Energy Sector
Paul Baiocchi, Senior Investment Strategy Advisor, SS&C ALPS Advisors discusses the energy sector’s recent performance along with key trends in real assets.
Since oil prices briefly went negative in April of 2020, oil demand has seen a stable and gradual uptick. Despite COVID-19’s initially devastating impact on gasoline demand, the quicker than expected recovery has driven MLP and Midstream company stock prices to rebound since their march 18th all-time lows.
Many energy-focused companies experienced significant losses in the second quarter of 2020. Moving forward, Baiocchi expects that the volumes at which these companies are operating will dramatically improve due to the concrete changes they had implemented prior to the pandemic. For example, many of these companies shifted from a growth spending model to a more flexible, protective spending model. This change is one way they have set themselves up to bounce back faster from market volatility. Both the Alerian MLP ETF (AMLP) and Alerian Energy Infrastructure ETF (ENFR) have closely followed market trends and are benefitting from strategic adjustments made before the market collapse in 2020. They are expected to recover as the industry as a whole stabilizes in the following months. In a recent webcast, Baiocchi and Alerian’s Stacey Morris expand on the political and tax implications facing the energy sector in 2020.
Ultimately, investors can diversify their portfolio with exposure to real assets. Energy infrastructure companies, in particular, aim to generate inflation-protected cash flows under long-term contracts. Alerian provides advisors with the indexing, data, and research they need to successfully analyze the energy and master limited partnership (MLP) asset classes. MLPs within the energy infrastructure space are designed to offer investors income potential, diversification and certain tax advantages. SS&C ALPS Advisors has been championed for its expertise in the ETF space since 1995. It is a subsidiary of SS&C Technologies Holdings, the world’s largest hedge fund and private equity administrator.
Paul is a Senior Distribution Support Analyst at SS&C ALPS, spearheading the firm’s distribution strategy and execution for the Alerian MLP and Energy Infrastructure ETF suite. Paul works closely with the distribution teams to tailor the firm’s messaging for AMLP and ENFR to meet the needs of a varied institutional investor base. In addition to providing subject matter expertise in client meetings, Paul supports the marketing and PR teams while also aiding the research efforts of SS&C ALPS in the MLP and Energy Infrastructure space. Prior to joining the firm, Paul was Vice President of ETF Business Development at Fidelity Institutional Asset Management where he helped build and grow the firm’s ETF lineup for 6 years. Previously, he worked at ETF.com, building an ETF analytics platform, writing about the ETF industry and moderating panels at Inside ETFs conferences. Paul has been in the Financial Services industry for 16 years. He holds a Bachelor’s degree in Business Administration from California State University at Chico, an MBA from the University of British Columbia’s Sauder School of Business and is a CFA Charterholder.
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