BP Capital TwinLine Energy Fund
The BP Capital TwinLine Energy Fund (the “BP Energy Fund” or the “Fund”) seeks total return, and trades under the following symbols:
- BP Capital TwinLine Energy Fund – Class A: BPEAX
- BP Capital TwinLine Energy Fund – Class I: BPEIX
The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets (plus borrowings for investment purposes) in publicly traded equity and debt securities of U.S. energy companies and companies we believe will benefit from global energy market dynamics. The Advisor considers U.S. energy companies to be companies operating in the United States that are involved in specific types of activities related to the production, transmission, supply and distribution of all sources of energy.
- Invests across the full spectrum of the energy value chain—a balanced approach to investing in energy
- Form 1099
- Daily liquidity at NAV
- IRA/401(k) eligible (No UBTI)*
* Master Limited Partnerships (MLPs) and MLP investments have unique tax characteristics. In general, an investment in the Fund will not generate unrelated business taxable income (UBTI) for tax-exempt U.S. investors. Neither the Fund nor the investment adviser provide tax advice. Please consult your tax advisor before making an investment. The Fund does not receive the same tax benefits of a direct investment in an MLP.
Top Ten Holdings (as of 06/30/2018)
Up to 25% of the Fund’s net assets may be invested in energy-related MLPs and another 25% in debt securities rated below investment-grade, commonly known as high-yield securities or junk bonds. The Fund may invest in debt of any maturity or duration.
|wdt_ID||Company||% Of Net Assets|
|1||Quanta Services Inc.||3.45|
|2||Patterson-UTI Energy Inc.||3.19|
|4||Pioneer Natural Resources Co.||3.60|
|5||Parsley Energy Inc - Class A||4.08|
|6||WPX Energy Inc.||3.85|
|7||Anadarko Petroleum Corp.||3.37|
|10||Devon Energy Corp.||3.35|
Sector Weightings (as of 06/30/2018)
Returns (as of 06/30/2018)
|wdt_ID||Fund||QTD||YTD||1 Year||3 Year||Since Inception|
|1||TwinLine Energy Fund (BPEIX)||10.41||2.37||17.86||3.03||2.42|
|2||S&P North American Natural Resources Index (SPGINRTR)||12.05||5.29||19.80||3.29||-1.06|
|3||S&P 500 Energy Index (S5ENRS)||13.49||6.81||20.99||3.67||-0.46|
Calendar Year Performance (as of 06/30/2018)
|TwinLine Energy Fund (BPEIX)||1||-1.75||-24.41||43.33||2.17|
|S&P North American Natural Resources Index (SPGINRTR)||2||-9.79||-24.28||30.87||1.21|
|S&P 500 Energy Index (S5ENRS)||3||-7.79||-21.12||27.36||-1.01|
Definitions and Disclosures
S&P 500 Index – The S&P 500 is a gauge of large cap U.S. equities. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.
S&P N. America Natural Resources Index – The S&P North American Natural Resources Index provides investors with a benchmark that represents U.S. traded securities that are classifed under the GICS® energy and materials sector excluding the chemicals industry; and steel sub-industry. One cannot invest directly in an index.
Please review the fund Prospectus, Fact Sheet, Summary Prospectus, SAI and Risks for more information. The Funds disclose their Top 10 holdings on their website within 30 days of the calendar quarter end.
As with any mutual fund, it is possible to lose money by investing in the Fund. The Fund is new, with a limited operating history upon which to rely in determining whether to invest. The Fund may invest a large percentage of its assets in a small number of issuers, potentially exposing it to greater loss than a more diversified portfolio. Further, the types of assets in which the Fund invests entail certain risks, as summarized below.
Energy-related companies are subject to specific risks, including, among others, fluctuations in commodity prices and consumer demand, substantial government regulation, and depletion of reserves. Small-cap stocks and initial public offerings may be more volatile and less liquid than securities issued by large companies and seasoned issuers. High-yield bonds involve greater risks of default, downgrade, or price declines and are more volatile and tend to be less liquid than investment-grade securities.
Master Limited Partnerships (“MLPs”) are publicly traded partnerships listed on a national securities exchange. The prices of MLP units may fluctuate abruptly and trading volume may be low, making it difficult for the Fund to sell its units at a favorable price. MLP general partners have the power to take actions that adversely affect the interests of unit holders. MLPs do not pay U.S. federal income tax at the partnership level, but an adverse change in tax laws could result in MLPs being treated as corporations for federal income tax purposes, which could reduce or eliminate distributions paid by MLPs to the Fund.
The Fund expects that a substantial portion of the cash flow it receives will come from its investments in MLPs and will be characterized as a “return of capital” to the Fund. When the Fund distributes this cash to its shareholders, the amount may exceed the Fund’s income from dividends, interest and net realized capital gains, and therefore a portion of a shareholder’s distribution would be a return of capital.
If the Fund’s MLP investments exceed 25% of its assets, the Fund may not qualify for treatment as a regulated investment company (“RIC”) under the Internal Revenue Code (“Code”). The Fund would be taxed as an ordinary corporation, which could substantially reduce the Fund’s net assets and its distributions to shareholders.
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