Jobs Act may be stirring up investor interest in MLPs

Accounting Today,  December, 2004  by Cynthia Harrington

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Section 331 of the American Jobs Creation Act included a provision that could potentially have a big impact on some investors.

After Jan. 1, 2005, mutual funds can invest in master limited partnerships to a greater extent. For managers in the $7 trillion mutual fund arena, that translates into a lot of potential new demand for the $50 billion MLP market. While the affect may not be immediate, the scope is hard to ignore.

Under the new law, income from MLPs is considered one of the qualifying incomes for mutual funds. Previously registered funds could not receive more than 10 ...