Yorkville MLP High Income Strategy

The investment objective of the Yorkville MLP High Income Strategy is to maximize current income by primarily investing in MLPs with high quality income and above average yields.

Yorkville’s MLP High Income Strategy takes a long-term fundamental approach to investing. The strategy seeks to invest in MLPs with (i) above average yields, (ii) stable distributions, and (iii) attractive valuations.

Strategy
Brochure

Performance
 
Name QTD YTD 1 Year Since
Inception+
Yorkville MLP High Income Strategy (Gross) (1) -5.2%-1.2%25.6%15.7%
Yorkville MLP High Income Strategy (Net) (2)-5.4%-1.9%21.6%12.6%
Alerian MLP (3)-6.4%-2.7%0.4%16.7%
S&P 500 (4)3.1%9.3%17.9%6.7%

+ Since Inception: October 1, 2015

Past Performance is not indicative of future returns.

Performance Commentary*

The Yorkville MLP High Income Strategy lost 5.2% for the second quarter of 2017. This outperformed the AMZX Index, which fell 6.4%. The quarterly outperformance can primarily be attributed to investor appetite for higher-yielding MLPs which continue to maintain or increase distributions.

Sector Breakdown*
 

* as of 6/30/2017

Strategy Description
Investment StyleIncome
Investment PhilosophyStrategic Investment
AnalysisFundamental
Time HorizonLong-term
Holding Period2-5 Years
Alpha DriverFundamentals
Typical InvestmentsMLPs, Energy Companies, and Energy Infrastructure Companies

Stability Score(5)

2nd Quarter 2017

10.0

Current Yield(6)

2nd Quarter 2017

11.1%

Fundamental Attribution*

100% of the holdings in the Yorkville MLP High Income Strategy (HIS) either increased or maintained their distributions in the second quarter of 2017 versus the prior year (1Q17). The portfolio yielded 11.1% as of June 30, 2017 compared to a yield of approximately 7.1% for the Alerian MLP Index (“AMZX Index”).

Contribution by Sector*

Gathering & Processing and Natural Gas Pipelines were the lagging sectors for the second quarter of 2017, contributing losses of 460 and 170 basis points respectively to the HIS’ total returns. Meanwhile, Downstream contributed a positive 160 basis points to returns, followed by Natural Resources’ 90 basis points.

 
Strategy Fundamentals*
Average Yield  11.1%
Median Distribution Growth Rate  0.0%
Average Market Capitalization  $5,123
Coverage Ratio  1.1x
Median Leverage  5.3x
Reports

Strategy Brochure

Attribution Analysis

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The Yorkville MLP High Income Strategy Wrap Composite contains fully discretionary equity accounts. The accounts are invested in the Yorkville MLP High Income Strategy through a wrap program.

1 Gross-of-fees returns are pure gross-of-fee returns which do not reflect the deduction of a management fee, commissions, and certain transaction cost which will reduce performance.

2 Net-of-fee returns are calculated by deducting a wrap fee of 3.0% from the monthly gross composite return.

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 6/30/2017. 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 Current Yield: Weighted average current yield (most recent quarterly dividend divided by price) of portfolio holdings as of 6/30/2017.

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.