Description
Fund Update | December 31, 2015
Description
Fund Facts
ƒƒ ALPS | Alerian MLP Infrastructure Index Fund (NYSE: ALERX) delivers exposure
Symbols & CUSIPS
A Shares
C Shares
I Shares
to the Alerian MLP Infrastructure Index (NYSE: AMZI), a capped, float-adjusted,
capitalization-weighted composite of energy infrastructure Master Limited
Partnerships that earn the majority of their cash flow from the transportation, storage,
and processing of energy commodities.
Thematically, MLPs represent an investment in the build-out of US energy infrastructure
over the next few decades. MLPs own, operate, and build energy infrastructure assets
such as pipelines, storage facilities, and processing plants.
Fund Expenses
ƒƒ Energy renaissance drives growth. Billions of investment dollars are required
Expense
Ratios
for infrastructure to keep pace with the boom in domestic production of natural gas
and oil.
Class I:
Class A:
Class C:
ƒƒ Toll-road business models. MLPs possess regional monopoly footprints and
benefit from inflation-hedged contracts and inelastic energy demand.
quarterly dividends.1
No K-1s – 1099 Tax Reporting
Qualified Dividends
No Leverage
Continuous Liquidity
IRA and 401k Eligible
GROWTH OF $10,000
$20,000
What
You Pay*
6.44%
6.71%
7.09%
0.85%
1.25%
1.85%
*The What You Pay may reflect that the Advisor
has contractually agreed to limit fees and/or
reimburse expenses (excluding certain expenses)
until at least February 29, 2016, however, the
Fund’s Board of Trustees may terminate or
amend this arrangement prior to that date.
The Manager can be reimbursed by the Fund within three years after the date the limitation and/or expense reimbursement has been made by the Manager, provided that such repayment does not cause the expenses of any class of the Fund to exceed the limits described in the notes to the fee table in the prospectus. The What You Pay is also net of deferred income tax expense, which represents an estimate of the Fund’s potential tax liability. This expense may vary from year to year.
Because the Fund’s deferred income tax expense is excluded from the expense cap, the Fund’s What You Pay is increased by the amount of this expense. The Fund’s What You Pay including deferred income tax expense is 5.74% for Class A. Class A distributions have been classified as “return of capital” which reduces the investor’s adjusted cost basis.
See the prospectus for details. Potential Fund Advantages ƒƒ ƒƒ ƒƒ ƒƒ ƒƒ Total Expense Ratio Management Fee 0.70% ƒƒ Income potential. MLPs pay out the majority of their operating cash flow as The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the Alerian MLP Infrastructure Index. 317612828 317612810 317612794 Minimum Initial Investment: Class A & C: $500 for tax-deferred, $2,500 for all others Class I: $1,000,000 Typical Portfolio Holdings: 22 Holdings Inception Date: 12/31/12 Adviser: ALPS Advisors, Inc. Why Energy Infrastructure MLPs? Investment Objective ALERX ALRCX ALRIX ALPS | Alerian MLP Infrastructure Index Fund Class A (NAV) Alerian MLP Infrastructure Index Historical Quarterly Distributions $0.19 $15,000 $0.18 $9,511 Alerian MLP Infrastructure Index $10,000 $8,410 ALPS | Alerian MLP Infrastructure Index Fund $5,000 12/31/12 12/31/13 12/31/14 12/31/15 $0.17 $0.1800 $0.1820 $0.1839 $20000 $0.1860 $0.1879 $15000 $0.16 $0.15 $10000 10/31/14 2/19/15 5/20/15 8/19/15 10/30/15 The chart above represents the total return historical performance of a hypothetical investment of $10,000 in the Fund over the life of the Fund. Performance calculations are as of the end of each month.
Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 1 The current 22 constituents all pay quarterly distributions. This chart does not imply rates for any future distributions. The Fund is not required to make distributions or make distributions $5000 that are equal to the distribution rate of the underlying partnership programs.
These distributions reflect a return of capital. www.alpsalerianmlp.com | 866.759.5679 . Fund Update | December 31, 2015 ALPS | Alerian MLP INFRASTRUCTURE INDEX FUND INDEX PORTFOLIO CHARACTERISTICS SECTOR WEIGHTINGS TOP 10 HOLDINGS^ 22 $215 Enterprise Products Partners LP MPLX LP 8.6% $9,756 $6,790 $51,307 $1,181 66.2% 0.62 Magellan Midstream Partners LP 7.6% Plains All American Pipeline LP 7.4% Buckeye Partners LP 7.3% Energy Transfer Partners LP 6.8% ONEOK Partners LP 4.8% Williams Partners LP 4.8% Enbridge Energy Partners LP 4.5% Sunoco Logistics Partners LP Number of Companies Market Capitalization ($ Billions) Company Size ($ Millions) Average Median Largest Smallest Top 10 Holdings (% Market Cap Share) Correlation with S&P 500® Index 4.3% Pipeline Transportation | Petroleum - 44.1% Gathering & Processing - 29.5% Pipeline Transportation | Natural Gas - 26.4% Correlation based on monthly data over the trailing 3-year period. Subject to change. ^ PERFORMANCE as of 12/31/2015 3 Month1 Class A (NAV) Class A (MOP) Class C (NAV) Class C (CDSC) Class I Alerian MLP Infrastructure Index3 -1.38% -6.75% -1.54% -2.50% -1.37% -1.65% 1 Year -31.28% -35.06% -31.26% -31.90% -31.13% -31.74% Since Inception2 -5.61% -7.37% -5.85% -5.85% -5.40% -1.66% Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data please call 1-866-759-5679. Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%.
Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months. 1 Performance less than 1 year is cumulative. 2 Fund inception date of 12/31/12. 3 The Alerian MLP Infrastructure Index is comprised of 22 midstream energy Master Limited Partnerships. An investor may not invest directly in an index. 10.1% Future holdings are subject to change. SOLUTION BASED PARTNERSHIP ALPS Advisors ƒƒ Serves as Advisor to the Fund ƒƒ Specialist in manager oversight & evaluation ƒƒ Focuses on delivering innovative asset management solutions Alerian Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure.
Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. Over $19 billion is directly tied to the Alerian Index Series through exchange-traded products, delta one notes, and separately managed accounts. For index values, yields, constituents, and announcements regarding rebalancings, please visit www.alerian.com. alpsalerianmlp@alpsinc.com | 866.759.5679 IMPORTANT DISCLOSURES & DEFINITIONS An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1.866.759.5679 or visit www.alpsfunds.com.
Read the prospectus carefully before investing. Investments in securities of MLPs involve risks that differ from an investment in common stock. MLPs are controlled by their general partners, which generally have conflicts of interest and limited fiduciary duties to the MLP, which may permit the general partner to favor its own interests over the MLPs. The benefit you are expected to derive from the Fund’s investment in MLPs depends largely on the MLPs being treated as partnerships for federal income tax purposes. As a partnership, an MLP has no federal income tax liability at the entity level.
Therefore, treatment of one or more MLPs as a corporation for federal income tax purposes could affect the Fund’s ability to meet its investment objective and would reduce the amount of cash available to pay or distribute to you. Legislative, judicial, or administrative changes and differing interpretations, possibly on a retroactive basis, could negatively impact the value of an investment in MLPs and therefore the value of your investment in the Fund. The Fund invests primarily in energy infrastructure companies which may be adversely affected by changes in worldwide energy prices, exploration, production spending, government regulation, changes in exchange rates and depletion of natural resources. If an MLP in the portfolio is deemed a corporation rather than a partnership for federal income tax purposes, then the income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution to the fund which could result in a reduction of the fund’s value. Correlation: a statistical measure of how two securities move in relation to each other. The ALPS | Alerian MLP Infrastructure Index Fund is not suitable for all investors. Subject to investment risks, including possible loss of the principal amount invested. Not FDIC Insured • No Bank Guarantee • May Lose Value The ALPS | Alerian MLP Infrastructure Index Fund is a series of Financial Investors Trust. ALPS Portfolio Solutions Distributor, Inc.
is the distributor for the ALPS | Alerian MLP Infrastructure Index Fund. ALPS Portfolio Solutions Distributor, Inc. is not affiliated with Alerian. ALE000181 4/30/16 .
. .
The Manager can be reimbursed by the Fund within three years after the date the limitation and/or expense reimbursement has been made by the Manager, provided that such repayment does not cause the expenses of any class of the Fund to exceed the limits described in the notes to the fee table in the prospectus. The What You Pay is also net of deferred income tax expense, which represents an estimate of the Fund’s potential tax liability. This expense may vary from year to year.
Because the Fund’s deferred income tax expense is excluded from the expense cap, the Fund’s What You Pay is increased by the amount of this expense. The Fund’s What You Pay including deferred income tax expense is 5.74% for Class A. Class A distributions have been classified as “return of capital” which reduces the investor’s adjusted cost basis.
See the prospectus for details. Potential Fund Advantages ƒƒ ƒƒ ƒƒ ƒƒ ƒƒ Total Expense Ratio Management Fee 0.70% ƒƒ Income potential. MLPs pay out the majority of their operating cash flow as The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the Alerian MLP Infrastructure Index. 317612828 317612810 317612794 Minimum Initial Investment: Class A & C: $500 for tax-deferred, $2,500 for all others Class I: $1,000,000 Typical Portfolio Holdings: 22 Holdings Inception Date: 12/31/12 Adviser: ALPS Advisors, Inc. Why Energy Infrastructure MLPs? Investment Objective ALERX ALRCX ALRIX ALPS | Alerian MLP Infrastructure Index Fund Class A (NAV) Alerian MLP Infrastructure Index Historical Quarterly Distributions $0.19 $15,000 $0.18 $9,511 Alerian MLP Infrastructure Index $10,000 $8,410 ALPS | Alerian MLP Infrastructure Index Fund $5,000 12/31/12 12/31/13 12/31/14 12/31/15 $0.17 $0.1800 $0.1820 $0.1839 $20000 $0.1860 $0.1879 $15000 $0.16 $0.15 $10000 10/31/14 2/19/15 5/20/15 8/19/15 10/30/15 The chart above represents the total return historical performance of a hypothetical investment of $10,000 in the Fund over the life of the Fund. Performance calculations are as of the end of each month.
Past performance does not guarantee future results. This chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 1 The current 22 constituents all pay quarterly distributions. This chart does not imply rates for any future distributions. The Fund is not required to make distributions or make distributions $5000 that are equal to the distribution rate of the underlying partnership programs.
These distributions reflect a return of capital. www.alpsalerianmlp.com | 866.759.5679 . Fund Update | December 31, 2015 ALPS | Alerian MLP INFRASTRUCTURE INDEX FUND INDEX PORTFOLIO CHARACTERISTICS SECTOR WEIGHTINGS TOP 10 HOLDINGS^ 22 $215 Enterprise Products Partners LP MPLX LP 8.6% $9,756 $6,790 $51,307 $1,181 66.2% 0.62 Magellan Midstream Partners LP 7.6% Plains All American Pipeline LP 7.4% Buckeye Partners LP 7.3% Energy Transfer Partners LP 6.8% ONEOK Partners LP 4.8% Williams Partners LP 4.8% Enbridge Energy Partners LP 4.5% Sunoco Logistics Partners LP Number of Companies Market Capitalization ($ Billions) Company Size ($ Millions) Average Median Largest Smallest Top 10 Holdings (% Market Cap Share) Correlation with S&P 500® Index 4.3% Pipeline Transportation | Petroleum - 44.1% Gathering & Processing - 29.5% Pipeline Transportation | Natural Gas - 26.4% Correlation based on monthly data over the trailing 3-year period. Subject to change. ^ PERFORMANCE as of 12/31/2015 3 Month1 Class A (NAV) Class A (MOP) Class C (NAV) Class C (CDSC) Class I Alerian MLP Infrastructure Index3 -1.38% -6.75% -1.54% -2.50% -1.37% -1.65% 1 Year -31.28% -35.06% -31.26% -31.90% -31.13% -31.74% Since Inception2 -5.61% -7.37% -5.85% -5.85% -5.40% -1.66% Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data please call 1-866-759-5679. Maximum Offering Price (MOP) for Class A shares includes the Fund’s maximum sales charge of 5.50%.
Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account. A Contingent Deferred Sales Charge (“CDSC”) of 1.00% may apply to Class C shares redeemed within the first 12 months. 1 Performance less than 1 year is cumulative. 2 Fund inception date of 12/31/12. 3 The Alerian MLP Infrastructure Index is comprised of 22 midstream energy Master Limited Partnerships. An investor may not invest directly in an index. 10.1% Future holdings are subject to change. SOLUTION BASED PARTNERSHIP ALPS Advisors ƒƒ Serves as Advisor to the Fund ƒƒ Specialist in manager oversight & evaluation ƒƒ Focuses on delivering innovative asset management solutions Alerian Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure.
Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. Over $19 billion is directly tied to the Alerian Index Series through exchange-traded products, delta one notes, and separately managed accounts. For index values, yields, constituents, and announcements regarding rebalancings, please visit www.alerian.com. alpsalerianmlp@alpsinc.com | 866.759.5679 IMPORTANT DISCLOSURES & DEFINITIONS An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1.866.759.5679 or visit www.alpsfunds.com.
Read the prospectus carefully before investing. Investments in securities of MLPs involve risks that differ from an investment in common stock. MLPs are controlled by their general partners, which generally have conflicts of interest and limited fiduciary duties to the MLP, which may permit the general partner to favor its own interests over the MLPs. The benefit you are expected to derive from the Fund’s investment in MLPs depends largely on the MLPs being treated as partnerships for federal income tax purposes. As a partnership, an MLP has no federal income tax liability at the entity level.
Therefore, treatment of one or more MLPs as a corporation for federal income tax purposes could affect the Fund’s ability to meet its investment objective and would reduce the amount of cash available to pay or distribute to you. Legislative, judicial, or administrative changes and differing interpretations, possibly on a retroactive basis, could negatively impact the value of an investment in MLPs and therefore the value of your investment in the Fund. The Fund invests primarily in energy infrastructure companies which may be adversely affected by changes in worldwide energy prices, exploration, production spending, government regulation, changes in exchange rates and depletion of natural resources. If an MLP in the portfolio is deemed a corporation rather than a partnership for federal income tax purposes, then the income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution to the fund which could result in a reduction of the fund’s value. Correlation: a statistical measure of how two securities move in relation to each other. The ALPS | Alerian MLP Infrastructure Index Fund is not suitable for all investors. Subject to investment risks, including possible loss of the principal amount invested. Not FDIC Insured • No Bank Guarantee • May Lose Value The ALPS | Alerian MLP Infrastructure Index Fund is a series of Financial Investors Trust. ALPS Portfolio Solutions Distributor, Inc.
is the distributor for the ALPS | Alerian MLP Infrastructure Index Fund. ALPS Portfolio Solutions Distributor, Inc. is not affiliated with Alerian. ALE000181 4/30/16 .
. .
