NEW YORK, Jan. 18, 2019 /PRNewswire/ -- The InfraCap MLP ETF (NYSE: AMZA) (the "Fund") has declared a monthly distribution of $0.08 ($0.96 per share on an annualized basis). The dividend will be paid January 30, 2019 to shareholders of record as of the close of business January 23, 2019.
The monthly dividend rate of $0.08 per share ($0.96 per annum) is lowered from the prior rate of $0.11 per share ($1.32 per annum), a rate which had been in place since January 2018. The Fund recently adopted a policy of reviewing the distribution level on a semi-annual basis.
Jay D. Hatfield, Chief Executive Officer of Infrastructure Capital Advisors, commented: "The midstream MLP industry is emerging from a period of financial restructuring. Despite a healthy operating environment, twelve companies reduced their distributions in 2018, resulting in a reduced flow of funds to investors. The cumulative impact of the lowered payments is the key factor driving the fund's distribution reduction."
"Midstream MLPs enter 2019 in a stronger financial position, with reduced leverage, better coverage of distributions, the elimination of incentive distribution rights and improved governance," Hatfield continued. "We believe the industry is at an inflection point, ending a period of distribution cuts related to restructurings and entering a period of growth for the industry's distributions to investors."
AMZA Cash Distribution:
- Ex-Date: Tuesday, January 22, 2019
- Record Date: Wednesday, January 23, 2019
- Payable Date: Wednesday, January 30, 2019
The fund estimates that 100 percent of the distribution, or $0.08 per share, is attributable to return of capital and that 0.00 percent, or $0.00 per share, is attributable to dividend income. Infrastructure Capital Advisors expects to declare future distributions on a monthly basis. Distributions are planned, but not guaranteed, for every month. The next distribution is scheduled to occur in February 2019.
For more information about AMZA's distribution policy, its 2019 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, 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.
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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.
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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.
SOURCE InfraCap MLP ETF