Other MLPs to gain as cash may exit Kinder Morgan, Morgan Stanley says

|About: Kinder Morgan, Inc. (KMI)|By:, SA News Editor

Other MLPs should gain as several billion dollars likely will rotate out of Kinder Morgan (KMI, KMP) thanks to various investors who prefer to remain invested in MLPs, which could bring a big boost to the rest of the asset class this year, Morgan Stanley says.

The tally of funds impacted by Kinder Morgan's decision to roll up all its MLP assets into a single non-MLP corporate parent and investors’ reactions to the move theoretically could run as high as $62B, the firm says.

Likely key beneficiaries include large-cap and higher-yield MLPs, the two primary investment styles displaced in investors’ portfolios by the transaction, Stanley says; the larger the potential rotation, the wider the benefits likely to be experienced.

ETFs: AMLP, AMJ, MLPL, YMLP, MLPI, MLPA, ENY, MLPN, MLPG, EMLP, MLPS, MLPX, MLPY, MLPJ, AMU, YMLI, ATMP, ZMLP, MLPW, IMLP, ENFR, MLPC