The Yorkville High Income MLP ETF (NYSE: YMLP) has declared its third
distribution at an annualized yield of 9.29 percent. 30 Day SEC Yield as
of 9/30/12 was 7.61%.
YMLP, the first and only exchange-traded fund (ETF) delivering exposure
to high income, commodity-based master-limited partnerships (MLPs), will
issue $0.405206 per share to holders of the fund. Yorkville estimates
that 100% of the distribution will be treated as return of capital.
The ex-/reinvestment date for the distribution is November 14, 2012, the
record date is November 16, 2012, and the payable date is November 20,
2012. Yorkville ETF Advisors plans to issue future distributions on a
quarterly basis. Distributions are scheduled, but not guaranteed, going
forward each year in February, May, August and November, with the next
distribution occurring in February 2013.
Since inception on 3/13/12 through 9/30/12, YMLP has returned -1.00%,
for an annualized total return of -1.83%. The performance data quoted
represents past performance. Past performance does not guarantee future
results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more
or less than their original cost and current performance may be lower or
higher than the performance quoted.
For performance current to the most recent month-end, please call
1-855-937-9383 (1-855-YES-YETF) or visit http://www.yetfs.com.
The Solactive High Income MLP Index tracked by YMLP is a rules-based
index that applies a multi-factor selection model to the MLP universe.
Analyzed factors include coverage ratio of distributions, distribution
growth and size of distributions. A select group of MLPs deemed to be
most favorable across all three factors become index constituents.
The Solactive High Income MLP Index is published and maintained by Structured
Solutions AG, which determines the components and relative
weightings of the securities in the Index and publishes information
regarding the Index.
Exchange Traded Concepts, LLC serves as investment adviser to YMLP.
Yorkville ETF Advisors, LLC, and Index Management Solutions, LLC, serve
For more information on YMLP, please visit www.yetfs.com.
To obtain the most recent prospectus, please click here YMLP
About Yorkville ETF Advisors, LLC
Yorkville ETF Advisors, LLC is an asset management firm and a subsidiary
of Yorkville ETF Holdings, LLC.
The firm offers a rules-based investment philosophy with the intention
of creating ETFs to track new investable indexes oriented toward income
and superior investment solutions. Yorkville ETF Advisors has proven
investment management and research that provides investors with
innovative investment strategies.
The team at Yorkville ETF Advisors consists of leading industry
professionals who have extensive experience in areas such as MLP
research and investment management, index derivatives and distribution.
This experience gives the firm the necessary resources to develop
income-generating ETFs and provide leadership to support the initiatives
of the firm and its sister companies within Yorkville ETF Holdings.
To receive a distribution, you must be a registered shareholder of the
fund on the record date. Distributions are paid to shareholders on the
payment date. There is no guarantee that capital gains distributions
will not be made in the future. Your own trading will also generate tax
consequences and transaction expenses. Past distributions are not
indicative of future distributions. Please consult your tax professional
or financial adviser for more information regarding your tax situation.
Carefully consider the Fund’s investment objectives, risk factors,
charges and expenses before investing. This and additional information
can be found in the Fund’s prospectus, which may be obtained by visiting
yetfs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal.
Narrowly focused investments typically exhibit higher volatility. The
energy industry is highly volatile due to significant fluctuation in the
prices of energy commodities, as well as political and regulatory
developments. Rising interest rates could adversely impact the
performance and/or the present value of cash flow of MLPs operating in
the energy sector. The abilities of MLPs operating in the energy sector
to grow and increase cash distributions can be highly dependent on their
ability to make acquisitions that generate increasing cash flows.
Investments in common units of MLPs involve risks that differ from
investments in common stock including risks inherent in the structure of
MLPs, including (i) tax risks, (ii) risk related to limited control of
management or the general partner or managing member, (iii) limited
rights to vote on matters affecting the MLP, except with respect to
extraordinary transactions, and (iv) conflicts of interest between the
general partner or managing member and its affiliates and the limited
partners or members, including those arising from incentive distribution
payments or corporate opportunities, and cash flow risks. General
partners typically have limited fiduciary duties to an MLP, which could
allow a general partner to favor its interests over the MLP’s interests.
MLP common units can be affected by macro-economic and other factors
affecting the stock market in general, expectations of interest rates,
investor sentiment towards MLPs or the energy sector, changes in a
particular issuer’s financial condition, or unfavorable or unanticipated
poor performance of a particular issuer (in the case of MLPs, generally
measured in terms of distributable cash flow). Prices of common units of
individual MLPs and other equity securities also can be affected by
fundamentals unique to the partnership or company, including cash flow
growth, cash generating power and distribution coverage. See the
prospectus for more detail.
The fund invests in royalty trusts, which are dependent upon the product
and sales of natural resources; as the resources deplete, production and
cash flows steadily decline, which may decrease distribution rates to
The fund is treated as a regular corporation for federal income tax,
which differs from most investment companies. Unlike traditional ETFs,
the Fund is subject to U.S. federal income tax as well as state and
local income taxes. Further, the amount of taxes currently paid by the
Fund will vary depending on the amount of income, and gains derived from
investments and/or sales of MLP interests and such taxes will reduce
your return. A portion of the Fund’s distributions is expected to be
treated as a return of capital for tax purposes. To the extent
distributions represent a return of capital; an investor’s cost basis
will be reduced at the time of sale potentially increasing taxes owed.
The Fund may defer income taxes for many years on gains attributable to
its underlying MLP holdings and the deferred tax liability used to
calculate the Fund’s NAV could vary dramatically from the Fund’s actual
tax liability. Upon sale of an MLP security, the Fund may be liable for
previously deferred taxes and, as a result, the determination of the
Fund’s actual tax liability may substantially increase expenses and
lower the Fund’s NAV.
Unlike most ETFs, the Fund expects to effect share redemptions
principally for cash, rather than in-kind, which may make the Fund less
tax-efficient than an investment in a conventional ETF. Furthermore, the
Fund may need to sell portfolio securities in order to raise cash for
redemptions. These factors may increase transaction costs and result in
the Fund having wider bid and offering spreads than conventional ETFs.
Exchange Traded Concepts, LLC serves as the investment advisor and
Yorkville ETF Advisors, LLC and Index Management Solutions, LLC serve as
sub advisors to the fund. The Funds are distributed by SEI Investments
Distribution Co., which is not affiliated with Exchange Traded Concepts,
LLC or any of its affiliates.
Solactive Indexes have been licensed for use by Exchange Traded
Concepts, LLC. Yorkville Funds are not sponsored, endorsed, issued,
sold, or promoted by Solactive, nor does this company make any
representations regarding the advisability of investing in the Yorkville