http://www.infracapmlp.com/about/management.html - The growing master limited partnership (MLP) investment space continues to parallel growing investor interest in real assets.

1. U.S. Energy Investing: New Actively-Managed MLP ETF Seeks Superior Total Return
 The growing master limited partnership (MLP) investment space continues to parallel growing
investor interest in real assets.
 A first actively-managed MLP ETF signifies that novel approaches offer opportunity to access the
investment class in more nuanced ways.
 The U.S. midstream sector is expected to grow, with $346 billion projected in investment in
midstream, downstream and energy-related chemicals value chains between 2012 and 2025.*.
The asset class of infrastructure continues to receive growing investor interest. Particularly since
the financial crisis of 2007-2008 and ensuing economic recession, confidence in many asset
classes were diminished as well as retirement portfolio values. While the stock market has
"recovered" in general, investor sentiment can be characterized as mixed with Federal Reserve
interventions hanging over the U.S. stock market and low rates for savings. Interestingly, the
infrastructure asset class, based on less volatile, real assets, has received more investor capital
than in years past.
Infrastructure investment is increasingly becoming accessible to investors of all types through
listed firms, master limited partnerships (MLPS) and real estate investment trusts (REITs). An
infrastructure investor article notes the following:
Average annual performance for global listed infrastructure stood at 11.4% over the past ten
years, higher than the 5.0% rate of return for global bonds and approximately 8.0% return for
global equities, according to a paper by Franklin Templeton. "A third of the total return has come
from dividends, and dividends have grown by on average over 10% per year over that ten-year
period (from 2003 to 2014)," said Wilson Magee, director of global real estate and infrastructure
securities at Franklin Real Asset Advisors, who authored the paper. - "Global Infra Equities
Provide Long-term Outperformance," Infrastructure Investor, Oct 1, 2014.
Numerous analysts see that the midstream area of energy has "tremendous growth
opportunities." The shale gas boom began the renewed interest in MLP investments, but the
shale oil boom reinforced the overall mega-trend - that the U.S. has become a top global oil and
gas producer. These trends in U.S. oil and gas production are expected to be positive for a
number of decades, according to Energy Information Administration projections. The U.S. will
become an exporter of natural gas, and exports of refined petroleum products are increasing year
by year.[i]

2. Source: EIA, Annual Energy Outlook, 2014
A Total Return MLP
According to a Barron's article about income investing, energy MLPs have performed well year-
to-date:
Year to date, the Alerian MLP Index (Total return: AMZX) is higher by 17.0%, compared to an
increase of 12.2% for the Philadelphia Utilities Index components and an increase of 8.0% for
the S&P 500. For the past 12 months, Alerian has returned 24.1%, compared to a 13.5% increase
for the Philadelphia Utilities Index components and 17.4% for the S&P 500.
Aside from the return aspects of the MLP universe, the access to MLP investing is becoming
simplified by the numerous MLP ETFs available. A new first-of-its-kind MLP ETF listed on
October 1 - the InfraCap MLP ETF (NYSEARCA:AMZA). Unique to the ETF is its "actively
managed" status, by Infrastructure Capital Advisers, the New York City-based investment
specializing in energy, MLPs and other key infrastructure sectors.

3. AMZA consists of high-quality, midstream energy MLPs and related general partners, a pure
MLP exposure; the firm expects to establish an initial annualized distribution yield of 8.0%. The
fund seeks to achieve capital appreciation, a high level of current income and steady growth in
the income stream. According to fund manager Jay Hatfield, with deep expertise in the sector, he
expects they will "generate superior total return."
Hatfield believes that growth prospects for certain MLPs is superior to others. He notes,"We
have prudently substituted the general partner (GP) for limited partners (LP), in particular, where
the valuation is attractive, and on an ongoing basis. The wonderful thing about GPs is that they
have a superior return on capital, depending on their vintage." Think Energy Transfer Equity
(NYSE:ETE), the GP to Energy Transfer Partners (NYSE:ETP), the LP. Bellwether MLP ETF,
the Alerian MLP ETF (NYSEARCA:AMLP), and most other indices do not include the GP,
offers Hatfield. Through the ways in which AMZA will structure its portfolio, Hatfield expects
that cash flow should grow by 2-3% higher than the index (AMZ). The fund's fees are 1.05%,
compared to the category average of 2.08%.
About the GP optimization strategy, Hatfield says:
"By substituting in more attractively priced MLPs, in particular the GPs, you can directly see the
higher return on invested capital. There are other MLPs that have superior investment
opportunities, however, we look at our relative valuation model to consider their price. The GPs
are a better way to optimize the index."
Beyond being actively managed, the fund differentiates itself from the index by using the tools
of:
1) Optimizing the weighting of holdings based on relative growth characteristics, alongside the
GP additions.
2) Responding to corporate events such as mergers and acquisitions and equity issuances, and
adjusting weightings accordingly.
3) Selectively using leverage and limited options trading. They have no leverage to date as they
prefer to move more slowly than quickly in the beginning.
Speaking for Infrastructure Advisors, Hatfield mentions that they wanted to develop a business
driven by distribution to individuals and wealth managers. By offering good products and
developing trust, he believes they will create a long-term business with franchise value. This
particular ETF is useful for personal and trust accounts and IRAs.
The AMZA outlook
The ETF AMZA can be viewed alongside other MLP ETFs, but note that the fund's inception
was October 1, in comparison to the Alerian MLP ETF of 8/25/2010 and UBS E-TRACS Alerian
MLP Infrastructure Index (NYSEARCA:MLPI) of 3/31/2010, both closely tracking the index.

4. AMZA has assets under management of $2.5 million and over 100,000 shares issued. Hatfield
was a co-founder of the MLP NGL Energy Partners LP (NYSE:NGL) and serves on the board.
When asked about the recent declines in West Texas Intermediate (WTI), the U.S. crude oil
benchmark, which recently drove down E&P and MLP stocks, Hatfield was not overly
concerned. He says, "In the short run, we think it is a good opportunity. We look at dislocations
to change weightings. It is also a good entry point right now to get into the asset class because
there is a little weakness." MLPs tend to over-respond to oil prices, Hatfield observes: "Since
they have longer-term contracts, they are insensitive to commodity swings within a band.
Commodity volatility is one reason why active management can be an advantage over passive
management."
The large opportunity to help investors gain income security in retirement was a motivation for
the fund's inception. "After the recession, the MLPs had a tendency to survive and continue their
distributions. MLPs and REITs did relatively well and survived versus financial institutions that
reduced their dividends," he adds. Hatfield believes that "income from real assets" is a way
forward.