MainGate MLP Fund
MLP Opportunity Meets Mutual Fund Convenience
Now you can tap into the energy Master Limited Partnership (MLP) asset class with the convenience of a mutual fund ... 1099 tax reporting, no K-1s or UBTI1, daily liquidity at NAV.
Objective
Our primary investment objective is total return by pursuing the generation of current income combined with the appreciation of capital.
Strategies
Chickasaw Capital Management seeks well-established MLPs with significant asset bases and operations that are projected to continue their record of achieving earnings growth through expansion, rate increases and acquisitions.
We assess the strategic value of an MLP’s energy infrastructure assets in terms of stability and predictability of the cash flows they generate. In addition, a lack of broad institutional ownership and in-depth research often makes the market for MLPs inefficient — an opportunity which the Fund seeks to exploit.
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(1) UBTI (Unrelated Business Taxable Income): Income regularly generated by a tax-exempt entity by means of taxable activities. This income is not related to the main function of the entity, but is needed to generate a small portion of income.
(2) Applies to Class A purchases of $1,000,000 or more where no sales charge was paid that are subsequently redeemed within 18 months of purchase and Class C purchases that are subsequently redeemed within 12 months of purchase. The Fund’s accrued deferred tax liability is reflected in its net asset value per share on a daily basis. 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) depends upon the Fund’s net investment income/(loss) and realized and unrealized gains/(losses) on its portfolio, which may vary greatly on a daily, monthly and annual basis depending on the nature of the Fund’s investments and their performance, and may currently be higher or lower than the figure quoted above. An estimate of deferred income tax expenses/(benefit) cannot be reliably predicted from year to year. The 1.41% deferred tax expense represents the performance impact of accrued deferred tax liabilities across the Fund, not individual share classes, for the fiscal year ended November 30, 2023.
MAINGATE MLP FUND HIGHLIGHTS
- 1099 tax reporting
- No K-1s or UBTI
- Performance potential compared to broader equity markets and other asset classes
- Income & growth potential
- Liquidity, transparency and flexibility
- Inflation-hedging potential
- Qualified retirement plan eligibility
- IRA eligibility
- Portfolio diversification
Performance
| as of 9/30/24 | AVERAGE ANNUAL RETURNS | ||||||||
| Share Class | Inception Date |
NAV/POP Per Share |
3 Month | Calendar YTD |
1 Year | 3 Year | 5 Year | 10 Year | Since Inception |
|---|---|---|---|---|---|---|---|---|---|
| Class A without load | 2/17/11 | $8.93 | 3.69% | 23.69% | 27.05% | 26.08% | 14.70% | 2.64% | 5.99% |
| Class A with 5.75% maximum front-end load |
2/17/11 | $9.47 | -2.25% | 16.55% | 19.77% | 23.65% | 13.35% | 2.03% | 5.53% |
| Class C without load | 3/31/14 | $8.08 | 3.56% | 23.00% | 26.10% | 25.10% | 13.83% | 1.86% | 2.89% |
| Class C with 1.00% Contingent Deferred Sales Charge |
3/31/14 | $8.08 | 2.56% | 22.00% | 25.10% | 25.10% | 13.83% | 1.86% | 2.89% |
| Class I | 2/17/11 | $9.46 | 3.82% | 23.83% | 27.50% | 26.37% | 14.98% | 2.89% | 6.26% |
Expense Ratios (Gross/Net): A Shares = 3.15%/3.14% | C Shares = 3.90%/3.89% | I Shares = 2.90%/2.89%. Gross and net expense ratios represent the percentages paid by investors and reflect a 1.41% deferred income tax expense which represents the performance impact of accrued deferred tax liabilities across the Fund, not individual share classes, for the fiscal year ended November 30, 2023 (the Fund had $0 in current tax expense and $10,861,413 in deferred tax expense). The Fund’s adviser has contractually agreed to cap the Fund’s total annual operating expenses (excluding brokerage fees and commissions; Class A 12b-1 fees; borrowing costs; taxes, such as Deferred Income Tax Expense; and extraordinary expenses) at 1.50% through March 31, 2025. The performance data shown For Class C with load reflects the Class C maximum deferred sales charge of 1.00%. 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) depends upon the Fund’s net investment income/(loss) and realized and unrealized gains/(losses) on its portfolio, which may vary greatly on a daily, monthly and annual basis depending on the nature of the Fund’s investments and their performance. An estimate of deferred income tax expenses/(benefit) cannot be reliably predicted from year to year.
The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and the principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the information quoted. To obtain performance information current to the most recent month-end please call 855.MLP.FUND (855.657.3863). Performance data shown for Class A shares with load reflects the maximum sales charge of 5.75%. Performance data shown for Class C shares with load reflects the maximum deferred sales charge of 1.00%. Performance data shown for Class I shares does not reflect the deduction of a sales load or fee. Performance data shown “Without Load” does not reflect the deduction of the sales load or fee. If reflected, the load or fee would reduce the performance quoted.
The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectus contains this and other important information about the investment company, and it may be obtained by clicking the link above or by calling 855.MLP.FUND (855.657.3863). Read it carefully before investing.
Sectors & Holdings
as of 9/30/24
Gathering/Processing
Targa Resources Corporation
Western Midstream Partners, L.P.
EnLink Midstream, LLC
Kinetik Holdings, Inc.
Antero Midstream Corporation
14.88%
12.41%
9.53%
1.54%
1.00%
Pipelines and Storage
Energy Transfer, L.P.
Enterprise Products
ONEOK, Inc.
Williams Companies,
Cheniere Energy, Inc.
Kinder Morgan, Inc.
DT Midstream, Inc.
11.20%
7.60%
7.31%
3.99%
3.87%
1.03%
0.69%
Pipelines and Storage
MPLX, L.P.
Plains GP Holdings, L.P.
Plains All American Pipeline, L.P.
Genesis Energy, L.P.
Phillips 66
Enbridge, Inc.
11.89%
5.58%
3.63%
2.60%
0.92%
0.33%
Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.
Mutual fund investing involves risk. Principal loss is possible. The Fund is nondiversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual security price volatility than a diversified fund. The Fund will invest in Master Limited Partnerships (MLPs) which concentrate investments in the natural resource sector and are subject to the risks of energy prices and demand and the volatility of commodity investments. Damage to facilities and infrastructure of MLPs may significantly affect the value of an investment and may incur environmental costs and liabilities due to the nature of their business. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment. Investments in smaller companies involve additional risks, such as limited liquidity and greater volatility. Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods. MLPs are subject to certain risks inherent in the structure of MLPs, including complex tax structure risks, limited ability for election or removal of management, limited voting rights, potential dependence on parent companies or sponsors for revenues to satisfy obligations, and potential conflicts of interest between partners, members and affiliates.
Diversification does not assure a profit or protect against a loss in a declining market.
The Fund does not receive the same tax benefits of a direct investment in an MLP. The Fund is treated as a regular corporation, or “C” corporation and is therefore subject to U.S. federal income tax on its taxable income at rates applicable to corporations (currently at a rate of 21%) as well as state and local income taxes. MLP Funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments. This deferred tax liability is reflected in the daily NAV and as a result the MLP Fund’s after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked. The potential tax benefits from investing in MLPs depend on them being treated as partnerships for federal income tax purposes. If the MLP is deemed to be a corporation then its income would be subject to federal taxation, reducing the amount of cash available for distribution to the Fund which could result in a reduction of the Fund’s value.
Quasar Distributors, LLC, distributor.
