The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Alerian Benchmarks First-Ever MLP ETF

Wednesday, August 25, 2010

Alerian Benchmarks First-Ever MLP ETF08:32 EDT Wednesday, August 25, 2010New Exchange-Traded Fund Tracks the Alerian MLP Infrastructure IndexDALLAS, Aug. 25 /PRNewswire-FirstCall/ -- Alerian, a leader in MLP-market intelligence, announced today the launch of the Alerian MLP ETF (NYSE Arca: AMLP), the first Exchange-Traded Fund (ETF) to access the Master Limited Partnership (MLP) asset class. The Alerian MLP ETF provides exposure to the Alerian MLP Infrastructure Index (AMZI).The Alerian MLP Infrastructure Index is a liquid, midstream-focused subset of energy MLPs whose constituents earn the majority of their cash flow from the transportation, storage, and processing of energy commodities. The index provides diversified, hard-asset exposure specifically to infrastructure investment."Alerian is thrilled to provide the index supporting the launch of the first MLP ETF and bring investors a new standard in liquidity and transparency to access the MLP asset class," said Alerian President and CEO Kenny Feng. "The Alerian MLP ETF provides a single Form 1099, no K-1s, and allows investors to potentially benefit from return of capital and qualified dividend tax treatment of distributions. We believe this product is the answer to what the marketplace has demanded for years and represents a breakthrough in MLP investment."Investors should carefully consider the investment objectives, risk, charges and expenses of any exchange traded fund prior to investing. For a prospectus containing this and other information, please visit or call 1-877-398-8461. Please read the prospectus carefully before investing.There are risks involved with investing in ETFs including the loss of money. Additional information regarding the risks of this investment is available in the disclosure.There is no credit risk as investors own shares in a corporation that holds the underlying securities. Additionally, the ETF provides tax accounts such as IRA and 401(k) plans with a new option for participating in the energy infrastructure MLP asset class without Unrelated Business Taxable Income concerns. Investors will not receive K-1s as they would if investing directly in MLPs.All K-1s are received and processed by the Alerian MLP ETF. The Alerian MLP ETF distributes a single Form 1099 to its shareholders. This notice is provided to you for informational purposes only, and should not be considered tax advice. Please consult your tax advisor for further assistance.The Fund's concentration in securities of MLPs involves risks that differ from investments in common stock, including risks related to: (1) limited control and rights to vote on matters affecting the MLP; (2) potential conflicts of interest between the MLP and its general partner; (3) cash flow; (4) dilution; and (5) the general partner's limited call right. Actual results, performance or events may also be affected by, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) changes in laws and regulations and (5) changes in the policies of governments and/or regulatory authorities. An investor's shares, when sold, may be worth more or less than their original cost. MLPs may have additional expenses, as some MLPs pay incentive distribution fees to their general partners. Infrastructure companies are subject to risks specific to the industry they serve including, but not limited to commodity price fluctuations; reduced volumes of energy commodities available for transporting, processing, storing or distributing; changes in the economy or regulatory environment; and extreme weather.The Fund invests primarily in energy infrastructure companies which may be adversely affected by changes in worldwide energy prices, exploration, production spending, government regulation, changes in exchange rates and depletion of natural resources.ALPS Distributors, Inc. is the Distributor of the Alerian MLP ETF.DefinitionsMLP:  Master Limited PartnershipETF:  Exchange Traded FundUBTI: Income regularly generated by a tax-exempt entity by means of taxable activities.Liquidity:  ETFs are considered to have continuous liquidity because they allow for an individual to trade throughout the day.Transparency: ETFs are transparent because holdings are disclosed dailyAbout AlerianAlerian is an independent company that provides objective market information. The company is a leader in MLP-market intelligence, providing benchmarks, data sets, and analytics that are used extensively by a range of stakeholders such as investment banks, stock exchanges, investment professionals, consultants, and Master Limited Partnerships. The Alerian Index Series is used for the purposes of asset allocation, investment analysis, portfolio hedging, and the creation of index tracking funds. Alerian is widely known for maintaining the leading benchmark of MLP equities: the Alerian MLP Index (NYSE: AMZ). For more information, please visit Relations:Jackie ProstkoAlerian+1 (214) 740-6020jp@alerian.comMedia:Liz PierceMakovsky + Company+1 (212) 508-9698lpierce@makovsky.comSOURCE AlerianFor further information: Client Relations: Jackie Prostko, Alerian, +1-214-740-6020,; Media: Liz Pierce, Makovsky + Company, +1-212-508-9698,