MLPs in 2008

The Alerian MLP Index has had an excellent growth record over its 13 years history. 9 year were up & only 4 suffered declines. Last year (-41%), especially in the 2nd half, was the brutal year. Using a crude mathematical relationship, the other 3 down years combined did less damage than the 2008 decline. And those years started from lower levels. The value including reinvested income at over 4X is superb. These securities have been purchased for their high yields. MLPs have an outstanding record which will stand up well when compared to other indices or stocks.

Alerian Index 12/31/95.....100

Alerian Index 12/31/08.....176
Alerian Index 12/31/08.....428 (including reinvested income)
Yield income 12/31/08.......12%


Alerian MLP Index --- 13 years





Other high yield securities have a similar showing, but maybe not as favorable. Junk bonds don't have an index but have performed in a similar fashion. The Dow Jones REIT Index only covers this decade, with a comparable track record subject to wider swings between highs & lows (especially in the last 2 years). Both groups have clearly been known for their high yields.


Dow Jones REIT Index --- 9 years