Irvine, CA, February 13, 2015 --(PR.com
)-- Vertical Capital Markets Group today announced the launch of the Vertical Capital MLP & Energy Infrastructure Fund (VMLPX, VMLIX), an open-end mutual fund consisting of midstream master limited partnerships (MLPs), and energy and infrastructure securities that will be sub-advised by MAI Capital Management, LLC of Cleveland, Ohio.
MAI was chosen based on its expertise and five years of experience with MLP energy and infrastructure strategies.
“This may be an ideal time for Vertical to enter the energy marketplace,” according to Vertical Capital President Bayard Closser. “As oil prices have dropped, so have prices of MLPs and MLP funds. But long-term, major investments will be needed in infrastructure to store and process oil and natural gas, and to transport it throughout the country.”
Midstream funds, such as the Vertical Capital MLP & Energy Infrastructure Fund, invest in businesses that provide transportation, processing and storage to the energy industry.
IHS Global, Inc., an information and analytics company based in Englewood, Colo., estimates that more than $80 billion in direct capital will be invested in oil and gas infrastructure annually from 2014 through 2020.
The Vertical Capital MLP & Energy Infrastructure Fund seeks long-term capital appreciation and current income through a diversified portfolio of investments in energy infrastructure and MLPs. It is intended to have low correlation with stocks or bonds, so it can be used to increase diversification, which reduces risk, Closser said.
The benchmark for the fund is the Alerian MLP Index. The fund is structured as a regulated investment company (RIC), as RICs are generally not subject to the 35% corporate tax. However, RIC regulations limit investments in MLPs to 25% of a fund’s portfolio.
An MLP combines many of the tax benefits of a limited partnership with the liquidity of publicly traded securities. Under federal law, only certain businesses – primarily energy-related businesses – can organize as MLPs.
The portfolio management team for the Vertical Capital MLP & Energy Infrastructure Fund includes four professionals with an average of 22 years of industry experience. The team has both equity and fixed-income experience.
“We have confidence that MAI has the right skill set for the fund,” Closser said. “The portfolio management team members know and have ongoing contact with midstream companies, which provides them with more in-depth market intelligence than would be available if they relied solely on analyst reports.”
About Vertical Capital Markets Group
The Vertical group of companies, founded in 2004, provides access to an outstanding team of professionals with strong backgrounds in banking, finance, and investing. Our senior partners combine to have more than 150 years of collective experience in the manufacturing, marketing and distribution of financial service products to retail broker-dealers, registered investment advisors, family offices and individual investors.
About MAI Capital Management, LLC
MAI Capital Management, LLC of Cleveland has a history dating back to 1973 and more than 80 employees. The firm is a manager and provider of innovative, targeted investment solutions for financial advisors and institutional investors. For more information, call Managing Director, Scott Roulston at 216.920.4959.
An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. A copy of the prospectus is available at ncfunds.com or by calling Shareholder Services at 1-855-609-VCAM (8226). The prospectus should be read carefully before investing.
An investment in the Fund is subject to investment risks, including the possible loss of some or the entire principal amount invested. There can be no assurance that the Fund will be successful in meeting its investment objective. Investment in the Fund is also subject to the following risks: MLP Risk, Industry Specific Risk, Commodity Risk, Supply and Demand Risk, Depletion Risk, Environmental and Regulatory Risk, Acquisition Risk, Interest Rate Risk, Extreme Weather Risk, Catastrophic Event Risk, Concentration Risk, Liquidity Risk, Equity Securities of MLPs Risk, Investment Company and RIC Compliance Risk, MLP Tax Risk, Regulatory Risk, Model Risk, General Market Risk, Sector Risk, Cash Flow Risk and New Fund Risk. More information about these risks and other risks can be found in the Fund’s prospectus.
The is distributed by Capital Investment Group, Inc., Member FINRA/SIPC, 17 Glenwood Ave, Raleigh, NC, 27603. There is no affiliation between the Vertical Capital MLP Energy & Infrastructure Fund, Vertical Capital Markets Group, MAI Capital Management, the principals of these organizations, and Capital Investment Group, Inc.