ST. LOUIS--(BUSINESS WIRE)--The St. Louis based MLP & Energy Infrastructure Team of Advisory Research, Inc. today announced the expansion of its investment lineup, and introduced the Advisory Research MLP & Equity Fund ("the Fund"), an MLP focused open-end mutual fund seeking to maximize total return through investment primarily in the equity securities of publicly traded Master Limited Partnerships (MLPs) and energy infrastructure companies.
“This new Fund provides the same great access to MLPs and energy infrastructure companies as our flagship open-end MLP & Energy Income Fund (INFIX), in an equity-only approach,” said Jim Cunnane, Jr., co-portfolio manager of the Fund.
The Fund is differentiated by the MLP team’s top-down strategy, which places a higher importance on less volatile businesses, strategic assets, cleaner balance sheets, and proven management teams. The newest offering expands Advisory Research’s rich history in the MLP sector. The portfolio management team averages 19 years of industry experience and first began managing MLPs in separately managed accounts in 1995.
“Like INFIX, INFEX offers an efficient and convenient way to invest in the MLP and energy infrastructure space; issuing a simple 1099 at year end,” said Quinn Kiley, co-portfolio manager of the Fund. “And after a tough year due to weak commodity prices, MLP valuations are as depressed as they have been in 10 years, providing what we believe to be a great investment opportunity.”
Structured as a Regulated Investment Company (RIC), the Fund may invest up to 25% of total assets in MLPs and avoid additional taxation at the fund level while also issuing a 1099 tax form and no Unrelated Business Taxable Income (“UBTI”) to its investors. The remainder of the portfolio is primarily invested in midstream focused, MLP parent and energy infrastructure entities. Class A, Class C, and Institutional (I) shares are available under the ticker symbols: INFJX, INFKX, and INFEX, respectively.
Investors can access the Fund directly through the Fund's transfer agent, UMB Fund Services, Inc. and through various broker dealers and financial intermediaries. Advisory Research, Inc. is a wholly owned subsidiary of Piper Jaffray Companies.
Investment Considerations
The Fund is newly organized and
has no operating history. There can be no assurances that its objective
will be met. The Fund’s overall result will depend on the Adviser’s
judgement about the quality, relative yield, value or market trends
affecting a particular security, industry, sector or region. MLPs and
other higher yield securities historically have shown sensitivity to
interest rate movements and involve a significant degree of risk.
Under normal circumstances, the Fund concentrates its investments in the energy infrastructure sector and may invest a significant portion of its assets in the natural resources sector of the economy, which includes a number of risks, including the following: supply and demand risk, depletion and exploration risk, marine transportation companies risk, regulatory risk, commodity pricing risk, weather risk, cash flow risk, affiliated party risk, catastrophe risk, acquisition risk, and natural resources sector risk.
The Fund may invest in securities of small and mid-capitalization companies that may be more volatile and less liquid than larger more established companies.
Investing in foreign securities including ADRs (American Depositary Receipt) may be more volatile because of economic and social conditions abroad, political developments, and changes in the regulatory environments of foreign countries. In addition, changes in exchange rates and interest rates may adversely affect the values of the Fund’s foreign investments. Foreign companies are generally subject to different legal and accounting standards.
The Fund may invest in IPOs (Initial Public Offering). The market value of IPO shares will fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, the small number of shares available for trading and limited information about the issuer. The purchase of IPO shares may involve high transaction costs. IPO shares are subject to market risk and liquidity risk.
The Fund intends to elect to be treated and to qualify each year, as a regulated investment company (“RIC”) under the U.S. Internal Revenue Code. To maintain qualification for federal income tax purposes as a regulated investment company under the Code, the Fund must meet certain source-of-income, asset diversification and distribution of its income requirements. If the Fund were to fail to qualify as a RIC and became subject to federal income tax, shareholders of the Fund would be subject to diminished returns.
About Advisory Research, Inc.
The MLP and Energy
Infrastructure team, located in St. Louis, MO, is a 15-person team fully
dedicated to managing $5.6 billion in assets in Master Limited
Partnerships (MLPs) and energy infrastructure strategies for open- and
closed-end mutual funds, private wealth individuals, public and
corporate pension plans, endowments and foundations. The MLP and Energy
Infrastructure team is part of Advisory Research, which manages more
than $11 billion in assets, including MLPs, domestic equity,
international equity and alternative investments.
The Fund’s prospectus, or summary prospectus which is available upon request by calling the Fund at (888) 665-1414 or by visiting our website at www.advisoryresearch.com, includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.
The Advisory Research Funds are distributed by IMST Distributors, LLC.
