InfraCap MLP ETF (NYSE: AMZA) Announces Changes to Distribution Policy
19 1월 2018 - 11:00PM
Business Wire
The InfraCap MLP ETF (NYSE: AMZA) has announced that it is
adopting a monthly dividend policy, replacing its traditional
quarterly schedule, which had been in place since the fund’s 2014
inception.
The next dividend is scheduled to be declared on February 20th
and paid on February 28th. Dividends are planned, but not
guaranteed, for each subsequent month. The anticipated monthly
dividend rate is $0.11 per share ($1.32 per share on an annualized
basis). This action is being taken in order to align AMZA’s
distributions to shareholders more closely with its distributable
cash flow.
Edward F. Ryan, Chief Financial Officer of Infrastructure
Capital Advisors, LLC, commented: “Many AMZA shareholders utilize
the fund as a part of an income-seeking strategy. Such investors
have expressed a strong preference for consistent, monthly
distributions.
“At the new payment schedule and rate,” Ryan continued, “the
fund is positioned to make substantial cash distributions to its
shareholders while minimizing potential net capital distributions.
The new dividend rate is set at a level that we think can be
consistently covered by the fund’s distributable cash flow. It was
determined after consideration of the average yield of midstream
MLP sector stocks and the fund’s use of leverage and option
strategies to generate an enhanced level of income for
distribution.”
Investors should note that a portion of the fund’s distributions
may be categorized as return of capital. For more information about
AMZA’s distribution policy, its 2018 distribution calendar, or tax
information, please visit the fund’s website at
www.virtusetfs.com.
ABOUT INFRASTRUCTURE CAPITAL ADVISORS, LLC
Infrastructure Capital Advisors, LLC (ICA) is an SEC-registered
investment advisor that manages exchange traded funds and a series
of hedge funds. The firm was formed in 2012 and is based in New
York City. ICA seeks total-return opportunities in key
infrastructure sectors, including energy, real estate,
transportation, industrials and utilities. It often identifies
opportunities in entities that are not taxed at the entity level,
such as master limited partnerships ("MLPs") and real estate
investment trusts ("REITs"). It also looks for opportunities in
credit and related securities, such as preferred stocks. Current
income is a primary objective in most, but not all, of the
company's investing activities. The focus is generally on
asset-intensive companies that generate and distribute substantial
streams of free cash flow. For more information, please visit
www.infracapfunds.com.
DISCLOSURE
Fund Risks
Exchange Traded Funds: The value of an ETF may be more
volatile than the underlying portfolio of securities the ETF is
designed to track. The costs of owning the ETF may exceed the cost
of investing directly in the underlying securities.
MLP Interest Rates: As yield-based investments, MLPs
carry interest rate risk and may underperform in rising interest
rate environments. Additionally, when investors have heightened
fears about the economy, the risk spread between MLPs and competing
investment options can widen, which may have an adverse effect on
the stock price of MLPs. Rising interest rates may increase the
potential cost of MLPs financing projects or cost of operations,
and may affect the demand for MLP investments, either of which may
result in lower performance by or distributions from the Fund’s MLP
investments.
Industry/Sector Concentration: A fund that focuses its
investments in a particular industry or sector will be more
sensitive to conditions that affect that industry or sector than a
non-concentrated fund.
Short Sales: The fund may engage in short sales, and may
experience a loss if the price of a borrowed security increases
before the date on which the fund replaces the security.
Leverage: When a fund leverages its portfolio, the value
of its shares may be more volatile and all other risks may be
compounded.
Derivatives: Investments in derivatives such as futures,
options, forwards, and swaps may increase volatility or cause a
loss greater than the principal investment.
MLPs: Investments in Master Limited Partnerships may be
adversely impacted by tax law changes, regulation, or factors
affecting underlying assets.
No Guarantee: There is no guarantee that the portfolio
will meet its objective.
You should consider the fund’s investment objectives, risks,
and charges and expenses carefully before investing. Contact ETF
Distributors LLC at 1-888-383-4184 or visit
www.infracapmlp.com to obtain a prospectus which contains
this and other information about the fund. The prospectus should be
read carefully before investing.
Virtus ETF Advisers, LLC serves as the investment advisor and
Infrastructure Capital Advisors, LLC serves as the sub-advisor to
the Fund.
The Fund is distributed by ETF Distributors LLC, an affiliate
of Virtus ETF Advisers, LLC.
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Fund Information:ETF Distributors
LLC212-593-4383 or 1-888-383-4184 (toll
free)info@etfis.comorMedia:GREGORY
FCAHaley Rosa, 610-228-2805haley@gregoryfca.com
ETFis Series Trust I (AMEX:AMZA)
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ETFis Series Trust I (AMEX:AMZA)
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