Read Alpha-Class-A.pdf text version

MLP Alpha Fund

as of 6/30/2012 General Information

SteelPath has been a leading energy infrastructure investment manager since 2004 and seeks to achieve this exposure primarily through the Master Limited Partnership (MLP) asset class. Headquartered in Dallas, Texas, the firm serves individuals, financial advisors, and institutional investors with a suite of MLP mutual funds, providing its clients MLP access with liquidity at NAV, transparency, and no K-1s.*

Investment Objectives

Concentrated portfolio of energy infrastructure MLPs providing substantial long-term capital appreciation through distribution growth and an attractive level of current income, with a single form 1099.

Principal Strategy

Focusing on the twenty (20) MLPs with the strongest projected distribution growth, or the greatest potential for significant upward revaluation, providing an attractive risk-reward balance for investors.

Class A Shares

Ticker NAV per Share Number of Holdings Total Net Assets Last Declared Dividend (quarterly) Portfolio Turnover MLPAX $10.35 21 $156,312,725 $0.1723 17.46%

Quarterly Dividend Distribution

$0.20 $0.19 $0.18 $0.17 $0.16 $0.15 $0.14 $0.13 $0.12

Yield

Current Yield

1

6.66% -0.74%

$0.11 $0.10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12

30 Day SEC Yield 2

Fees and Expense

Redemption Fee Maximum Load Gross Expense Ratio Fee Limitation and/or Expense Reimbursement3 Net Expense Ratio Deferred Income Tax Expense4 Net Expense Ratio before Limitation or Reimbursement and Deferred Taxes3

1

Average Annual Total Return Comparison

None 5.75% 3.35% -0.17% = 3.18% - 1.68% = 1.50% MLP Alpha - Class A MLP Alpha - Class A w/Max Load Lipper Equity Income Funds Index5 S&P 500 Index6

5

1 Month

2.27% -3.63% 4.20% 4.12%

3 Months 12 Months Since Inception

-2.33% -7.97% -2.12% -2.75% 3.24% -2.67% 3.21% 5.45% 8.20% 5.39% 8.13% 9.27%

Current Yield is computed as the annualized current dividend over NAV per share and reflects dividends and interest earned, including Return of Capital in the calculation. 2Income determined to be from Return of Capital is not included in the 30 day SEC yield calculation and thus causes the reported yield to be zero. 3The advisor has agreed to limit fees and/or reimburse expenses until at least March 31, 2013, however, the Trust's Board of Trustees may be terminate or amend prior to this date. The Advisor can be reimbursed by the Fund within three years after the date the fee limitation and/or expense reimbursement has been made by the Advisor, provided that such repayment does not cause the expenses of any class of the Fund to exceed the foregoing limits. See the most recent prospectus for details. 4Expenses include deferred income tax which represents an estimate of the Fund's potential tax liability. This expense may vary greatly from year to year depending on the performance of the Fund's investment. A change in the estimate of deferred tax liability could result in a loss to net asset value.

The Lipper Equity Income Funds Index is composed of funds that invest at least 65% of their portfolio in dividend paying equity securities. 6The S&P 500 Index is an unmanaged capitalization-weighted index (weighted by the market value of the companies) of 500 stocks listed on various exchanges. The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and the principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the information quoted. To obtain performance information current to the most recent month-end please call 866-752-5444. If you are a direct investor, please call 888-614-6614.

Risk Metrics7

Alpha Fund

Beta8 Standard Deviation Sharpe Ratio10 Max Drawdown

7 9 11 9

Lipper Equity Income Funds Index

0.93 15.85 0.51 -16.29

S&P 500 Index

1.00 16.90 0.54 -16.26

0.56 8.23 1.02 -6.20

Risk metrics calculated since inception. 8Relative measure of return volatility versus the broader market. Absolute measure of return volatility. 10A ratio of performance to risk. 11Maximum peak-to-trough decline.

This fact sheet must be accompanied or preceded by a prospectus. *An investment in the Fund does not offer the tax benefits of a direct investment in an MLP. The majority of distributions have been classified as "return of capital" which reduces the investor's adjusted cost basis. steelpath.com //SteelPath Fund Advisors

as of 6/30/2012

MLPs at a Glance

SteelPath specializes in energy infrastructure investments primarily through the MLP asset class. Energy infrastructure MLPs generally operate toll-road business models that transport, store and process hydrocarbons such as oil, natural gas, natural gas liquids and refined products. Over the past decade, the MLP asset class has been emerging as the accepted home of energy infrastructure and has benefited from the migration of legacy infrastructure assets into the sector through both acquisitions and new offerings. Though the continued migration of legacy assets is expected, the sector should also benefit from the development of new energy infrastructure assets to meet the logistical needs of growing U.S. oil and gas production stemming from the use of new drilling technologies and techniques. We expect energy infrastructure MLPs to continue to benefit from their low-risk business model and the robust opportunities to further grow their businesses. Investors may benefit from attractive levels of tax-deferred income and low correlations with the broader market. Inflation protection has historically come from both the inherent value of long-life physical assets (i.e. pipelines) and from the application of federally regulated pricing models to crude oil and refined products pipelines.

Sector Composition

18.5% Petroleum Transportation Natural Gas Pipelines Gathering & Processing Diversified 12.6%

46.3%

22.6%

Top 10 Holdings

Name Plains All American Pipeline LP Enterprise Products Partners LP El Paso Pipeline Partners LP Holly Energy Partners LP ONEOK Partners LP Energy Transfer Equity, LP Regency Energy Partners LP TC Pipelines LP Enbridge Energy Partners LP Sunoco Logistics Partners LP Sector % of Fund Holdings Petroleum Transportation 7.6% Diversified 7.0% Natural Gas Pipelines 6.4% Petroleum Transportation 6.0% Diversified 5.9% Natural Gas Pipelines 5.8% Gathering & Processing 5.7% Natural Gas Pipelines 5.1% Petroleum Transportation 5.0% Petroleum Transportation 5.0%

The fund's portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security. Characteristics expressed as a percentage of net assets.

WHAT YOU SHOULD KNOW BEFORE INVESTING

You should consider the Funds' investment objectives, risks, charges and expenses carefully before investing. For a prospectus, or summary prospectus, that contains this and other information about the Funds, call 866-752-5444 or visit the Fund's website at www.steelpath.com. If you are a direct investor and would like to speak with a representative about your account, please call 888-614-6614 . Please read the prospectus, or summary prospectus, carefully before investing. Risks of Investing Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Each Fund's investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase price fluctuation. Energy infrastructure companies are subject to risks specific to the industry such as fluctuations in commodity prices, reduced volumes of natural gas or other energy commodities, environmental hazards, changes in the macroeconomic or the regulatory environment or extreme weather. MLPs may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. Additional management fees and other expenses are associated with investing in MLP funds. Some SteelPath Funds will be subject to certain MLP tax risks and risks associated with accounting for its deferred tax liability which could materially reduce the net asset value. To the extent that a Fund obtains leverage through borrowings, there will be the potential for greater gains and the risk of magnified losses. Investing in debt securities involves additional risks including interest rate risk, credit risk, duration risk, and duplication of advisory fees and other expenses. High yield securities involve more risks than investment grade securities and tend to be more sensitive to economic conditions. Private equity investments may be subject to greater risks than investments in publicly traded companies due to limited public information and lack of regulatory oversight. SteelPath Funds are distributed by UMB Distribution Services, LLC.

FSALPHA-A0712

steelpath.com //SteelPath Fund Advisors

Information

2 pages

Find more like this

Report File (DMCA)

Our content is added by our users. We aim to remove reported files within 1 working day. Please use this link to notify us:

Report this file as copyright or inappropriate

1024422


You might also be interested in

BETA