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Seeking Monthly Income with ICAP

InfraCap Equity Income Fund ETF

(NYSEArca: ICAP)

InfraCap Equity Income Fund ETF(NYSEArca: ICAP)

Seeking Dividend Income

Monthly dividend potential

Income and Total Return Opportunities

An alternative to traditional stocks
and bonds*

An innovative tool for your investment income needs

*Investments offering higher yield potential can be subject to greater risks. This presentation is intended only for the designated recipient or recipients.  It may contain confidential or proprietary information and may be subject to attorney-client privilege or other confidentiality protections. If you are not among the designated recipients, you are not permitted to review, copy, or distribute this message. The information contained herein represents our subjective belief and opinions and should not be construed as investment advice. The information and opinions provided should not be taken as specific advice on the merits of any investment decision. Investors should make their own decisions regarding any investments mentioned, and their prospects based on such investors’ own review of publicly available information and should not rely on the information contained herein. Infrastructure Capital Advisors, LLC nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. This data includes information based on data and calculations sourced from Bloomberg and third-party sources. We believe that the data is reliable, we have not sought, nor have we received, permission from any third-party to include their information in this article. Comparative fund information is provided for informational purposes only, funds may have different characteristics and risks which are not presented. Many of the statements in this file reflect our subjective belief. If you have any questions, please reach out to Craig Starr at Craig.Starr@icmllc.com or 212-763-8336.

INVESTMENT THESIS

We believe that large capitalization dividend stocks are an attractive addition to most investors’ portfolios. The S&P 500 High Dividend Index* has over 80 companies with an average market capitalization of $35.5 billion and an average dividend yield of approximately 5.11% (compared to the S&P 500 dividend yield of 2.49%). Equity income securities are common equity instruments from issuers who prioritize returning capital to shareholders in the form of increasing dividends. Often yielding  3-6%, these securities offer investors current income in addition to capital appreciation opportunities.

Current Income

•The investable universe provides annualized yields in the range of 3-10%

•High current yields offer investors the opportunity to earn income and outpace inflation

Potential for Capital Appreciation

•As common equity instruments, equity income securities are correlated with the equity capital markets, providing potential for capital appreciation. The S&P 500 High Dividend Index offers income investors exposure to many of the top dividend paying stocks in the S&P 500. We review these companies along with other high dividend paying companies that are publicly listed and exchange traded.

Liquidity

• Large-cap common stocks offer daily liquidity which facilitates buy and sell decisions in these companies.

Large Investable Universe

• Common equity investments can be made in companies across all sectors allowing the ETF to capture the benefits of sector diversification. A large investable universe provides on-going investment opportunities for the ETF

Strong Credit Ratings

• Large capitalization dividend stocks generally have investment-grade credit ratings. The average credit rating of the S&P 500 High Dividend Index is BBB+*, which is investment grade.

The S&P 500 High Dividend Index serves as a benchmark for income seeking equity investors. The index is designed to measure the performance of 80 high yield companies within the S&P 500 and is equally weighted to best represent the performance of this group, regardless of constituent size. The average credit rating is obtained from Bloomberg, based on the index holdings and the average credit ratings for each issuer by Standard and Poor's or Moody's.

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Why Seek Monthly Income?
Your Bills Don’t Change With Interest Rates, They Arrive
Every Month

The average retiree spends $4,932 per month, including:

✓ $1,698 on housing

✓ $684 on transportation

✓ $599 on health care

✓ $600 on food

✓ $267 on insurance and pension contributions

✓ $218 on entertainment

Your expenses may be higher or lower than this illustration, but regardless, your bills come every month. Are you seeking monthly income?

Consider the Risks of Reaching for Yield

  • Investors have been reaching, perhaps too far, across the risk spectrum for additional yield—but higher yielding assets can be riskier.

  • High yield bonds are 30%* more volatile than Treasuries and 40%* more volatile than municipal bonds—that is, their prices go up and down more, putting your savings at risk.

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Volatility differences are measured as differences between 2-yr annualized volatilities. Beta (β) is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole (usually the S&P 500). Stocks with betas higher than 1.0 can be interpreted as more volatile than the S&P 500. Data as of August 31, 2023. All data taken from Bloomberg. Treasury (LUATTRUU Index), Municipal (LMBITR Index), Corporate Bond (LUACTRUU Index), Preferreds (SPTREFTR Index, PFF Equity), High Yield (LF98TRUU Index). Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. *See www.infracapfunds.com  for more disclosure on indices. Performance data quoted represents past results. Past performance is no guarantee of future results. The distributions among asset classes can vary significantly with respect to the components that make up the distributions. It should be noted that Treasury Assets, Municipal Assets, Corporate Bonds, Preferred Stocks, and High Yield Assets each contains materially different characteristics including risks, expenses, and outcomes not captured by this chart. Key risks of these yield alternative assets include: credit, liquidity and interest rate risks;

Key Benefits:
Aiming to Providing Monthly Dividends with Moderate Volatility

Assisting in meeting your monthly cash-flow needs:

A focus on income:

Active management:

Enhanced exposure:

(ICAP) aims to provide monthly dividend payouts with moderate volatility, and to provide the potential of long-term gains.

By investing in equity income securities, (including preferred stocks) we offer the potential for attractive yields, while pursuing compelling total return results.

We systematically and continually adjust security selection and weightings based on a variety of quantitative, qualitative,
and relative valuation factors.

We use modest leverage (typically 20-30%) to enhance
our ETF’s exposure to market appreciation and to potentially enhance current income.

The Process

  • Bottom-up Financial Models Security analysis includes detailed review of a company using fundamental financial models  (Detailed breakup valuations, In-house earnings forecasts, Discounted cash flow projections)

  • Due Diligence — Review of company financials, macroeconomic data and industry research complemented by discussions with company management, sell-side analysts, industry-specific consultants/researchers

  • Leverage — Moderate leverage (15-25%) is opportunistically applied to increase yield.

  • Options — Thoughtful option strategies are utilized in order to enhance portfolio yield and hedge exposure.

  • Preferred Stocks — Selection of high yielding preferred stocks (an equity instrument of a company) can lower the portfolio’s beta while increasing its yield. Depending on the preferred stock, total return opportunities are available too.

  • Opportunistic Investments — Monitoring of the portfolio and market in order to identify and capitalize on key trends such as: Economic policy, Interest rates, Corporate actions (Mergers and Acquisitions, restructurings, etc.).

  • Active Management — Unlike passively-managed ETFs and Mutual Funds, the portfolio will benefit from:

    • Daily Proprietary screens and investment opportunities

    • Daily Portfolio Management (buy and sells).

    • Daily Risk Management

Volatility differences are measured as differences between 2-yr annualized volatilities

 

Data as of October 31, 2021. All data taken from Bloomberg. Treasury (LUATTRUU Index), Municipal (LMBITR Index), Corporate Bond (LUACTRUU Index), Preferreds (SPTREFTR Index, PFF Equity), High Yield (LF98TRUU Index). Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. *See www.infracapfunds.com for more disclosure on indices. Performance data quoted represents past results. Past performance is no guarantee of future results. The distributions among asset classes can vary significantly with respect to the components that make up the distributions. It should be noted that Treasury Assets, Municipal Assets, Corporate Bonds, Preferred Stocks, and High Yield Assets each contains materially different characteristics including risks, expenses, and outcomes not captured by this chart. Key risks of these yield alternative assets include: credit, liquidity and interest rate risks;

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About Us

Infrastructure Capital Advisors, LLC

The Income Specialists

Infrastructure Capital Advisors, LLC (ICA) is a registered investment advisor that manages exchange traded funds (ETFs) and a series of hedge funds. The firm was formed in 2012 and is based in New York City.

The firm seeks current income as its primary objective in most of its investing activities. Consequently, the firm focuses generally on companies that generate and distribute substantial streams of free cashflow.

This approach is based on the belief that tangible assets that produce free cashflow have intrinsic values that are unlikely to deteriorate over time.

Leadership Team

Jay D. Hatfield | Founder, CEO, and Portfolio Manager

Mr. Hatfield has almost three decades of experience in the securities and investment industries.  At ICA, he is the portfolio manager of InfraCap MLP ETF (NYSE: AMZA), InfraCap REIT Preferred ETF (NYSE: PFFR), Virtus InfraCap U.S. Preferred Stock ETF (NYSE: PFFA), and a series of hedge funds.  He leads the investment team and directs the company’s business development.

 

During his career, Mr. Hatfield has gained a broad perspective on the U.S. financial markets with years as an investment banker, a research director and portfolio manager, and as a co-founder of a NYSE-listed company.  A focus on companies that own real or hard assets, like energy infrastructure and real estate, runs through Mr. Hatfield’s career.

 

Prior to forming ICA, he partnered with senior energy industry executives to acquire several midstream MLPs.  These companies were merged to form a company now known as NGL Energy Partners, LP (NYSE: NGL).  NGL was an IPO in May 2011.  He is a general partner of the publicly-traded company.

 

In the years prior to forming NGL, Mr. Hatfield was a portfolio manager at SAC Capital (now Point72 Asset Management), running a portfolio focused on income securities.  He joined SAC from Zimmer Lucas Partners, a hedge fund focused on energy and utility sectors, where he was head of research.  Earlier in his career, he was head of an investment banking unit at CIBC/Oppenheimer and a Principal in an investment banking unit at Morgan Stanley & Co.  He began his career as a CPA at Ernst & Young.  He holds an MBA from the Wharton School at the University of Pennsylvania and a BS from the University of California at Davis.

ICAP ETF

Exchange

NYSE ARCA 

NAV Symbol

ICAP.NV

IOPV Symbol

ICAP.IV

CUSIP Number

81752T619

Inception date

12/29/2021

Gross expense ratio

1.71%

Management fee

0.80%

Advisor

Infrastructure Capital Advisors, LLC

Distributor

Quasar Distributors, LLC

30-day SEC Yield

9.19% (12/31/2023)

Fund Overview

We believe that our proven, income-focused strategy can be overlayed into the common equity asset class which possesses: high amounts of liquidity, a robust investor base, a large investable universe, and, complementary yield-enhancement opportunities.

​Liquidity

  • Large-cap common stocks could provide liquidity allowing for nimble asset management in and out of securities seeking to provide downside protection and opportunistic buys

  • Increased liquidity provides scalability ensuring a large runway for increasing AUM

​Large Investable Universe

  • Common equity investments can be made in companies across all sectors allowing the Fund to fully capture diversification benefits

  • A large investable universe presents a substantial opportunity set for timely and opportunistic investments

Options / Preferreds

  • The Fund will utilize options strategies to both hedge the portfolio and capture additional yield

  • A deep understanding of preferred stocks presents opportunities for significant investments in low-beta, high-dividend preferred stocks creating a unique investment vehicle

Volatility differences are measured as differences between 2-yr annualized volatilities

 

Data as of October 31, 2021. All data taken from Bloomberg. Treasury (LUATTRUU Index), Municipal (LMBITR Index), Corporate Bond (LUACTRUU Index), Preferreds (SPTREFTR Index, PFF Equity), High Yield (LF98TRUU Index). Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. *See www.infracapfunds.com for more disclosure on indices. Performance data quoted represents past results. Past performance is no guarantee of future results. The distributions among asset classes can vary significantly with respect to the components that make up the distributions. It should be noted that Treasury Assets, Municipal Assets, Corporate Bonds, Preferred Stocks, and High Yield Assets each contains materially different characteristics including risks, expenses, and outcomes not captured by this chart. Key risks of these yield alternative assets include: credit, liquidity and interest rate risks;

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Monthly Market Commentary & Economic Outlook Webinar

with Jay Hatfield, InfraCap CEO, CIO and Portfolio Manager

Online Brokers

The inclusion of these links is not an endorsement from any of these firms does not represent a recommendation or solicitation to purchase or sell any securities. Additionally, the inclusion of these links does not represent an endorsement by Infrastructure Capital Advisors, LLC of any of these firms

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Fund Summary

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Returns for periods of less than one year are cumulative total returns. The fund commenced operations on December 29th, 2021,  therefore the performance in the period above reflects only a partial time period. Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please call 800-617-0004 for performance data current to the most recent month end. Shares shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total Returns are calculated using the daily 4:00pm EST net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.

Fact Sheet

Returns for periods of less than one year are cumulative total returns. The fund commenced operations on December 29th, 2021,  therefore the performance in the period above reflects only   a partial time period. Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that   shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Please call 800-617-0004   for performance data current to the most recent month end. Shares shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund.   Total Returns are calculated using the daily 4:00pm EST net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange   where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.

ICAP ETF DISCLOSURE

About Us:

Infrastructure Capital Advisors, LLC (ICA) is an SEC-registered investment advisor that manages exchange traded funds (ETFs) and a series of hedge funds. The firm was formed in 2012 and is based in New York City. ICA seeks current income opportunities as a primary objective in most, but not all, of ICA's investing activities.

DISCLOSURE

The information contained herein represents our subjective belief and opinions and should not be construed as investment, tax, legal, or financial advice. This information does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell, or otherwise transact in any investment including any products or services or an invitation, offer or solicitation to engage in any investment activity. This article is not an offer to sell, or solicitation of an offer to buy any investment product or services offered by Infrastructure Capital Advisors, LLC, (“ICA”) or its affiliates. ICA, will only conduct such solicitation of an offer to buy any investment product or service offered by ICA, if at all, by (1) purported definitive documentation (which will include disclosures relating to investment objective, policies, risk factors, fees, tax implications and relevant qualifications), (2) to qualified participants, if applicable, and (3) only in those jurisdictions where permitted by law.  Infrastructure Capital Advisors, LLC nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. This data includes information based on data and calculations sourced from Bloomberg and third-party sources. We believe that the data is reliable, we have not sought, nor have we received, permission from any third-party to include their information in this article. The preferred market place information and comparative active and passive management information is provided for informational purposes only, actual funds and indices may have different characteristics and risks which are not presented. Many of the assumptions in this illustration reflect our subjective belief and is subject to change without notice. Certain information contained in this document constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or other comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements.  Additionally, any projections, market outlooks and estimates included herein are based upon certain assumptions, including but not limited to the prior experience of ICA and other factors it deems relevant such as current and expected market conditions These materials are provided for informational purposes only.

FUND RISKS - Investors should consider each investment objectives, risks, charges, and expenses carefully before investing. For a prospectus with this and other information about the Fund, please click here. Please read the prospectus carefully before investing.

ICAP Exchange Traded Funds (ETF): Investing involves risk, including possible loss of principal. An investment in the Fund may be subject to risks which include, among others, investing in equities securities, dividend paying securities, utilities, small-, mid- and large-capitalization companies, real estate investment trusts, master limited partnerships, foreign investments and emerging, debt securities, depositary receipts, market events, operational, high portfolio turnover, trading issues, active management, fund shares trading, premium/discount risk and liquidity of fund shares, which may make these investments volatile in price. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's returns. Small and Medium-capitalization companies, foreign investments and high yielding equity and debt securities may be subject to elevated risks. The Fund is a recently organized investment company with no operating history. Please see prospectus for discussion of risks. Distributor, Quasar Distributors, LLC. Visit www.icapetf.com for a copy of the prospectus and other risks.

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