Yorkville Energy Infrastructure Strategy

The investment objective of the Yorkville Energy Infrastructure Strategy is to maximize total returns by investing primarily in mispriced energy and energy infrastructure companies.

Yorkville’s Energy Infrastructure Opportunities Strategy takes a long-term fundamental approach to investing. The strategy invests primarily in companies that are structured as corporations with (i) strong or improving fundamentals, (ii) clearly identifiable catalysts to unlock shareholder value, and (iii) significant total return potential.

Strategy
Brochure

Performance
 
Name QTD YTD 1 Year Since
Inception+
Yorkville Energy Infrastructure Strategy (Gross) (1) 2.4%2.4%66.2%9.6%
Yorkville Energy Infrastructure Strategy (Net) (2)2.0%2.0%59.5%6.1%
Alerian MLP (3)3.9%3.9%28.3%12.7%
S&P 500 (4)6.1%6.1%17.2%17.4%

+ Since Inception: October 1, 2015

Past Performance is not indicative of future returns.

Performance Commentary*

The Yorkville Energy Infrastructure Strategy gained 2.4% for the first quarter of 2017. EIS underperformed the Alerian MLP Index (“AMZX Index”), which returned 3.9%. The underperformance can primarily be attributed to broader C-corp energy indices underperforming MLPs (AMZX) in 1Q17.

Sector Breakdown*
 

* as of 3/31/2017

Strategy Description
Investment StyleTotal Return
Investment PhilosophyStrategic Investment
AnalysisFundamental
Time HorizonLong-term
Holding Period2-5 Years
Alpha DriverFundamentals
Typical InvestmentsMLP General Partners, Energy Infrastructure and Energy Companies

Stability Score(5)

1st Quarter 2017

10.0

Growth Score(6)

1st Quarter 2017

20.0%

Fundamental Attribution*

100% of the holdings in the Yorkville Energy Infrastructure Strategy (EIS) either increased or maintained their distributions in the first quarter of 2017 versus the prior year (1Q16). On average, the holdings produced year-over-year distribution growth of +20.0%. EQT GP (EQGP) and Tallgrass GP (TEGP) increased by 45.1% and 60.4% versus the prior year, respectively.

Contribution by Sector*

General Partners and Gathering & Processing were the two best sectors for the portfolio in the first quarter of 2017, contributing gains of 640 and 40 basis points, respectively, to the Strategy’s total returns. Meanwhile, Crude Oil Pipelines detracted 230 basis points from performance and Energy Services lost 190 basis points for the Strategy.

 
Portfolio Characteristics*
Yield  3.0%
Distribution Growth (Average)  20.0%
Net Debt/EBITDA  4.47
# of Constituents  10
Market Capitalization (Total)  $141,393
Market Capitalization (Average)  $14,139
Market Capitalization (Median)  $10,668
Reports

Strategy Brochure

Attribution Analysis

<?xml version="1.0" encoding="utf-16"?>

The Yorkville Energy Infrastructure Composite contains fully discretionary equity accounts. The accounts are invested in the Yorkville Energy Infrastructure Strategy.

1 Gross-of-fee returns do not reflect the deduction of management fees and certain transaction costs which will reduce performance.

2 Net-of-fees returns are calculated by deducting a management fee of 1.50% from the monthly gross composite return and a performance fee according to the following schedule: 10% performance fee above 10% hurdle with a high water mark.

3 Alerian MLP Index is the leading gauge of energy Master Limited Partnerships (MLPs). The float-adjusted, capitalization-weighted index, whose constituents represent approximately 85% of total float-adjusted market capitalization, is disseminated real-time on a price-return basis (AMZ) and on a total-return basis (AMZX).

4 The S&P 500® Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. Standard Deviation measures the risk or volatility of an investment’s return over a particular time period; the greater the number, the greater the risk.

5 Stability: Calculated as the percentage of holdings which either maintained or increased their distribution versus the same period in the prior year. Based on holdings as of 3/31/2017. Excludes positions which were added to the portfolio following a distribution cut in any of its previous four quarters. Excludes positions with less than 1-year history. The percentage is represented on a scale from 0.0 to 10.0 whereby 0.0 = 0.0% and 10.0 = 100%.

6 Growth: Average of the year-over-year distribution growth for holdings as of 3/31/2017. Excludes positions which were added to the portfolio following a distribution cut in any of its previous four quarters. Excludes positions with less than 1-year history.

This information has been provided by Yorkville Capital Management, LLC. All materials presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in an investment-making decision. The views and opinions expressed are those of the portfolio management team at the time of publication and are subject to change. There is no guarantee that these views will come to pass. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. Past performance is not indicative of future returns. For a GIPS® compliant presentation contact Yorkville Capital Management, LLC at (212) 755-1970 or info@yorkvillecapital.com.