Thursday 10 November 2016

know all you want to know about the ALerian MLP ETF Investment in Infrastructure MLP

The ALerian MLP ETF - Investment in Infrastructure MLP – performance linked to the results of the underlying index Alerian MLP Infrastructure Index (the "Index")- Only for US residents.
MLPS own, operate and build infrastructure assets, earn income and the payout is in form of quarterly dividends to the investors. However with stable cash flows with the investment, there are few factors to taken into account before investment is that interest of the general partner may prevail over the interest of MLP, resulting in loss. There are chances of investment risk including loss of entire principal amount. The changes in law , energy prices , depletion of natural resources , risk from extreme weather conditions, changes in exchange rates can adversely affect the earnings of MLPS.
MLP fund - Hedge funds in US mostly associated with energy sector generating stable cash flows.
Master Limited Liability fund are publicly traded stocks in US. The revenues of MLP are derived by investments made by the fund in nation’s energy infrastructure. The major areas of investment are transportation of oil, natural gas, coal etc.  These investment unable made by MLP enable them to qualify for tax benefits in form of tax deferred returns on capital. These funds receive preferred tax treatment under US tax code. The open ended MLP funds enables investors to keep pace with inflation by providing inflation hedge as well.
NGL Energy Partners LP (NGL)- listed on New York Stock Exchange – Publicly traded MLP
NGL formed in 2010 and operates in United States through its various subsidiaries in various sectors. NGL provides various services to producers as well as end- users. It is diversified midstream MLP in United States.  It has Five segments of business through vertical and geographical integration namely: Crude Oil Logistics •Water Solutions •NGL Logistics •Retail Propane •Refined Products. It builds value for its unit holders through industry leadership and diversified midstream and retail operations. The structure of the MLP allows flexibility to respond to the emerging growth options. It specialises in the above mentioned sectors which enables to generate stable cash flows and payment of dividends at regular intervals.

Wednesday 9 November 2016

Boosting of Investment in Energy Related Infrastructure Projects

Master Limited Partnership (MLP) – Limited Partnership firm in United States that is publicly traded in Stock Markets providing tax benefits to small investors.
MLP is a limited partnership that generates more than 90% of its revenues from the qualifying sources as determined by Internal Revenue Service under section 7704 (d)(1)(e) in United States. The qualifying sources are activities like transportation of oil, natural gas, coal, real property rents.
Partnership by individual with MLP can start with a low stake of about 2% as well. They earn income and get paid quarterly by way of increase in share of partnership. MLPs act as pass through entities and are not taxed, and the individual partners are allowed to take benefit of pro rata share of depreciation in their individual firm to reduce tax liability.  MLPs on the other hand give relatively cheap funding.
The Fund Manager – Jay D. Hatfield – Having extensive experience in advising and investing in energy infrastructure companies in United States.
Mr. Hatfield an MBA from Wharton School and a BS from the University of California started his career as a CPA at Ernst & Young. Thereafter Investment Banker at Morgan Stanley &Co in field of Energy and Utility Sector and thereafter Hedge Fund Manager as well as co-founder  and general partner at NYSE Listed MLP – NGL  Energy Partners, LP. He is the President and co -founder of ICA.  With experience in various posts and sectors enables him to provide the best services as fund manager.
MLP Investing – Benefits associated with long term investments in MLP‘s.
Investments in MLP generate most stable cash flows in the long term taking into account the high operating leverage and high financial leverage. MLP’s have low cost of capital in account of absence of taxes and yield higher returns.   MLP investments also have many disadvantages as well. MLP unit holders are personally liable to taxes for their share of partnership in the MLP. There is small pool of potential investors as compared to investment in equities by various fund houses.

Sunday 6 November 2016

Investment Advisory Services provided by various firms in United States of America

Infrastructure Capital Advisors is a New York based capital Advisory firm formed in 2012 that provides investment advices to various persons, issue reports or analyses of various securities and is registered with SEC as an investment advisor to manage various actively managed ETF and other Hedge funds.
MLF ETF - an exchange traded fund that is actively managed and sub advised by Infrastructure Capital Advisors.
The Fund invests mainly in companies and firms that are in the field of energy, real estate, transportation, industrials and Utilities that enable us to generate better returns by giving weightage to fundamentals of the Company instead of market capitalisation. The fund mainly invests in Master Limited Partnership entities.
Capital appreciation , increase in level of current income with steady growth in income is the main objective of the fund through with it returns to the stakeholders of the fund and enables them with various tax benefits on the investments made by them in the fund . The fund provides dividend income along with quarterly income distribution and 1099 tax reporting (No. K-1s). The fund is structured in such a manner that there is scope for delivery of tax deferred income. Options strategies provided by the fund can be used to increase income level and manage risk.
AMZA is used as the ticker symbol for the fund floated in US for Investment.
The fund has various advantages and disadvantages as well that must be considered before investing in the fund.  There is high degree of volatility in investment as compared to volatility in underlying securities. Risk of concentration is there as investment is there in a particular sector only.  Chances of loses is huge the fund uses derivatives in form of options, forwards, swaps etc. The fund does not guarantee returns as there is no sureity that the objective of formation of the fund is met by the fund managers.  The fund managers leverage the funds, which increases the risk of the investors. Therefore before investment in the fund all advantages and disadvantages must be accounted.