NEW YORK, April 17, 2020 /PRNewswire/ -- The InfraCap MLP ETF (NYSE Arca: AMZA) (the "Fund") has declared a monthly distribution of $0.25 per share ($3.00 per share on an annualized basis). This rate compares to a monthly rate of $0.03 per share paid in the prior month ($0.30 per share on a split-adjusted basis), which was paid prior to the Fund completing a 1-for-10 reverse split. The distribution will be paid April 28, 2020 to shareholders of record as of the close of business April 21, 2020.
The April distribution reflects recent challenging energy market conditions, including persistent high volatility and oil price pressure resulting from both supply and demand concerns. In the interest of downside risk mitigation, portfolio leverage remains lower than historical Fund averages, directly impacting current investment income. In addition, covered call writing activity is at a low level due to unfavorable market conditions, and several midstream MLPs cut dividends this month.
The Fund announced last month that the semi-annual review of distribution levels has been modified to a monthly review frequency. Monthly reviews will continue until financial market conditions stabilize.
AMZA Cash Distribution:
- Ex-Date: Monday, April 20, 2020
- Record Date: Tuesday, April 21, 2020
- Payable Date: Tuesday, April 28, 2020
The Fund estimates that 100 percent of the distribution, or $0.25 per share, is attributable to return of capital and that 0.00 percent, or $0.00 per share, is attributable to dividend income. Distributions are planned, but not guaranteed, for every month. The next distribution is scheduled to occur in May 2020.
For more information about AMZA's distribution policy, its 2020 distribution calendar, or tax information, please visit the Fund's website at www.virtusetfs.com.
About Virtus ETF Advisers
Virtus ETF Advisers is a New York-based, multi-manager ETF sponsor and affiliate of Virtus Investment Partners. With actively managed and index-based investment capabilities across multiple asset classes, Virtus offers a range of complementary exchange-traded-funds subadvised by select investment managers.
About Infrastructure Capital Advisors
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.
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 VP Distributors, LLC, member FINRA and subsidiary of Virtus Investment Partners, Inc.
SOURCE InfraCap MLP ETF