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AMZA Modifies Estimate of Deferred Tax Liability

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InfraCap MLP ETF (AMZA) has adjusted its estimate of deferred tax liability, adding approximately $7 million to its net asset value, equivalent to around $0.72 per share, based on information provided by Master Partnerships (MLPs). The Fund's estimates regarding its deferred tax liability are subject to change based on various factors such as statutory carryforward periods, shareholder transactions, and market conditions. The modification aims to more accurately reflect the Fund's actual tax liability.

Investors should carefully consider the risks associated with ETFs, MLPs, energy industry concentration, leverage, options, market price/NAV disparity, and market volatility. Changes in tax laws or business mix could impact MLP taxation, potentially reducing distributions and affecting investor returns.

L'ETF InfraCap MLP (AMZA) ha aggiornato la stima del debito fiscale differito, aggiungendo circa 7 milioni di dollari al suo valore netto di asset, equivalente a circa 0,72 dollari per azione, basandosi sulle informazioni fornite dalle Master Limited Partnerships (MLPs). Le stime del fondo sul debito fiscale differito possono cambiare in base a vari fattori come i periodi di trasporto fiscale, le transazioni degli azionisti e le condizioni di mercato. La modifica ha lo scopo di riflettere più accuratamente l'effettiva passività fiscale del fondo. Gli investitori dovrebbero considerare attentamente i rischi associati agli ETF, alle MLP, alla concentrazione nell'industria energetica, alla leva finanziaria, alle opzioni, alla discrepanza tra prezzo di mercato/NAV e alla volatilità del mercato. Cambiamenti nelle leggi fiscali o nel mix di attività potrebbero influenzare la tassazione delle MLP, riducendo potenzialmente le distribuzioni e impattando sui rendimenti degli investitori.
El fondo InfraCap MLP ETF (AMZA) ha ajustado su estimación de la responsabilidad fiscal diferida, añadiendo aproximadamente 7 millones de dólares a su valor neto de activos, lo que equivale a unos 0,72 dólares por acción, según la información proporcionada por las Master Limited Partnerships (MLPs). Las estimaciones del fondo sobre su responsabilidad fiscal diferida están sujetas a cambios basados en diversos factores como los periodos de arrastre estatutario, las transacciones de los accionistas y las condiciones del mercado. La modificación tiene como objetivo reflejar más precisamente la verdadera carga fiscal del fondo. Los inversores deberían considerar cuidadosamente los riesgos asociados con los ETFs, las MLPs, la concentración en la industria energética, el apalancamiento, las opciones, la disparidad entre el precio de mercado/NAV y la volatilidad del mercado. Cambios en las leyes fiscales o en la mezcla de negocios podrían afectar la tributación de las MLPs, reduciendo potencialmente las distribuciones y afectando los retornos de los inversores.
InfraCap MLP ETF(AMZA)는 마스터 리미티드 파트너십(MLPs)으로부터 제공된 정보를 바탕으로 연기된 세금 부채 추정치를 조정하였으며, 이에 따라 순자산가치에 약 700만 달러, 주당 약 0.72달러가 추가되었습니다. 펀드의 연기된 세금 부채 추정치는 법정 이월 기간, 주주 거래 및 시장 상황과 같은 다양한 요인에 따라 변경될 수 있습니다. 이 변경은 펀드의 실제 세금 부채를 더 정확하게 반영하려는 목적입니다. 투자자들은 ETF, MLP, 에너지 산업 집중도, 레버리지, 옵션, 시장 가격/NAV 차이 및 시장 변동성과 같은 위험을 신중하게 고려해야 합니다. 세법이나 사업 구성의 변경은 MLP의 과세에 영향을 미쳐 배당금을 감소시키고 투자 수익에 영향을 줄 수 있습니다.
L'ETF InfraCap MLP (AMZA) a ajusté son estimation de la dette fiscale reportée, ajoutant environ 7 millions de dollars à sa valeur nette d'actifs, ce qui équivaut à environ 0,72 dollars par action, en se basant sur les informations fournies par les partenariats à responsabilité limitée (MLP). Les estimations du fonds concernant sa dette fiscale différée sont susceptibles de changer en fonction de divers facteurs tels que les périodes de report légales, les transactions des actionnaires et les conditions du marché. La modification vise à refléter plus précisément la véritable passivité fiscale du fonds. Les investisseurs devraient soigneusement considérer les risques associés aux ETF, aux MLP, à la concentration dans l'industrie énergétique, au levier financier, aux options, à la disparité entre le prix du marché/NAV et à la volatilité du marché. Des changements dans les lois fiscales ou dans le mix d'affaires pourraient impacter la taxation des MLP, réduisant potentiellement les distributions et affectant les retours sur investissement.
Der InfraCap MLP ETF (AMZA) hat seine Schätzung der aufgeschobenen Steuerlast angepasst, indem er etwa 7 Millionen Dollar zum Nettovermögenswert hinzufügte, was ungefähr 0,72 Dollar pro Aktie entspricht, basierend auf Informationen von Master Limited Partnerships (MLPs). Die Schätzungen des Fonds bezüglich seiner aufgeschobenen Steuerlast können sich ändern, abhängig von verschiedenen Faktoren wie gesetzlichen Übertragungsfristen, Aktionärstransaktionen und Marktbedingungen. Die Änderung zielt darauf ab, die tatsächliche Steuerlast des Fonds genauer widerzuspiegeln. Investoren sollten die mit ETFs, MLPs, der Konzentration auf die Energieindustrie, Hebelwirkung, Optionen, der Diskrepanz zwischen Marktpreis/NAV und Marktschwankungen verbundenen Risiken sorgfältig abwägen. Änderungen in den Steuergesetzen oder im Geschäftsmix könnten die Besteuerung von MLPs beeinflussen, möglicherweise die Ausschüttungen reduzieren und die Investorenerträge beeinträchtigen.
Positive

  • The Fund's adjustment of its deferred tax liability estimate aims to enhance accuracy in reflecting the actual tax liability, providing investors with a more transparent view of the Fund's financials.

Negative

  • Investors in the Fund face risks related to ETF volatility, MLP taxation changes, energy industry concentration risks, leverage impact on security values, options trading risks, market price/NAV discrepancies, and market volatility, which could affect investment outcomes.

NEW YORK--(BUSINESS WIRE)-- InfraCap MLP ETF (NYSE Arca: AMZA or the “Fund”) has modified the estimate of the Fund’s deferred tax liability based on information reported by the Master Limited Partnerships (MLPs) and will record an additional accrual of approximately $7 million (approximately $0.72 per share) into the net asset value of the Fund on April 30, 2024.

The Fund will rely to a large extent on information provided by the MLPs, which is largely reported on a delayed basis and is not necessarily timely, to estimate deferred tax liability for purposes of financial statement reporting and determining the NAV. From time to time, the Adviser will modify the estimates or assumptions regarding the Fund’s deferred tax liability as new information becomes available and may consider, among other matters, the duration of statutory carryforward periods, shareholder transactions, underlying index constituent changes and market conditions. The Fund’s estimates regarding its deferred tax liability are made in good faith; however, the daily estimate of the Fund’s deferred tax liability used to calculate the Fund’s NAV could vary significantly from the Fund’s actual tax liability.

Please direct any inquiries to info@virtus.com or by calling 1-888-383-0553.

Important Disclosures

Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. Contact us at 1-888-383-0553 or visit virtus.com for a copy of the Fund's prospectus. Read the prospectus carefully before you invest or send money.

IMPORTANT RISK CONSIDERATIONS

Exchange-Traded Funds (ETF): The value of an ETF may be more volatile than the underlying portfolio of securities it is designed to track. The costs to the fund of owning shares of an ETF may exceed the cost of investing directly in the underlying securities. Master Limited Partnerships: Investments in MLPs may be adversely impacted by interest rates, tax law changes, regulation, or factors affecting underlying assets. Energy Industry Concentration: The portfolio’s investments are concentrated in the energy industry and presents greater risks than if the portfolio was broadly diversified over numerous sectors of the economy. Leverage: When a portfolio is leveraged, the value of its securities may be more volatile and all other risks may be compounded. Options: Selling call options may limit the opportunity to profit from the increase in price of the underlying asset. Selling put options risks loss if the option is exercised while the price of the underlying asset is rising. Buying options risks loss of the premium paid for those options. Market Price/NAV: At the time of purchase and/or sale, an investor’s shares may have a market price that is above or below the Fund’s NAV, which may increase the investor’s risk of loss. Market Volatility: The value of the securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Local, regional, or global events such as war, terrorism, pandemic, or recession could impact the portfolio, including hampering the ability of the portfolio’s manager(s) to invest its assets as intended. Prospectus: For additional information on risks, please see the Fund’s prospectus.

MLPs taxed as partnerships generally do not pay U.S. federal income tax at the partnership level, subject to the application of certain partnership audit rules. Rather, each partner is allocated a share of the MLP’s income, gains, losses, deductions and expenses. A change in current tax law, or a change in the underlying business mix of a given MLP, could result in an MLP being treated as a corporation for U.S. federal income tax purposes, which would result in such MLP being required to pay U.S. federal income tax on its taxable income. The classification of an MLP as a corporation for U.S. federal income tax purposes would have the effect of reducing the amount of cash available for distribution by the MLP. Thus, if any of the MLPs owned by the Fund were treated as corporations for U.S. federal income tax purposes, it could result in a reduction in the value of your investment in the Fund and lower income.

The Fund is classified for federal income tax purposes as a taxable regular corporation or so-called Subchapter “C” corporation. As a “C” corporation, the Fund accrues deferred tax liability for its future tax liability associated with the capital appreciation of its investments and the distributions received by the Fund on equity securities of master limited partnerships considered to be a return of capital and for any net operating gains. The Fund’s accrued deferred tax liability, if any, is reflected each day in the Fund’s net asset value per share. The deferred income tax expense/(benefit) represents an estimate of the Fund’s potential tax expense/(benefit) if it were to recognize the unrealized gains/ (losses) in the portfolio. An estimate of deferred income tax expense/(benefit) is dependent upon the Fund’s net investment income/(loss) and realized and unrealized gains/(losses) on investments and such expenses may vary greatly from year to year and from day to day depending on the nature of the Fund’s investments, the performance of those investments and general market conditions. Therefore, any estimate of deferred income tax expense/(benefit) cannot be reliably predicted from year to year.

Not insured by FDIC/NCUSIF or any federal government agency. No bank guarantee. Not a deposit. May lose value.

ETFs distributed by VP Distributors, LLC, member FINRA and subsidiary of Virtus Investment Partners, Inc.

Fund Information:

ETF Distributors LLC

212-593-4383 or 1-888-383-4184 (toll free)

info@etfis.com

Media:

Joe Fazzino

860-263-4725

joe.fazzino@virtus.com

Source: InfraCap MLP ETF

FAQ

What prompted the modification of AMZA's deferred tax liability estimate?

The adjustment was based on information provided by Master Partnerships (MLPs) to more accurately reflect the Fund's actual tax liability.

How much was the additional accrual into the net asset value of AMZA?

Approximately $7 million, equivalent to around $0.72 per share.

What risks should investors consider when investing in AMZA?

Investors should be aware of ETF volatility, MLP taxation changes, energy industry concentration risks, leverage impact, options trading risks, market price/NAV disparities, and market volatility.

How does the modification of the deferred tax liability estimate benefit investors?

The adjustment aims to provide a clearer view of the Fund's financials and enhance transparency for investors.

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InfraCap MLP ETF

NYSE:AMZA

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AMZA Stock Data

9.82M
United States of America