ALERIAN MLP ETF TAX UPDATE
DENVER, May 15, 2024 /PRNewswire/ — Alerian MLP ETF (the “Fund” or “AMLP”) has modified the estimate of the Fund’s deferred tax liability based on information reported by the Master Limited Partnerships (MLPs) and recorded an additional tax accrual of approximately $32.1 million (approximately $0.18 per share) into the net asset value (NAV) of the Fund on May 16, 2024. As part of the additional tax accrual, the Fund’s deferred tax liability (DTL) has increased due to tax reporting received from the underlying investments that indicates a larger portion of future realized gains will be characterized as ordinary income rather than capital. The Fund will rely to a large extent on information provided by the MLPs, which is largely reported on a delayed basis and is not necessarily timely, to estimate deferred tax liability for purposes of financial statement reporting and determining the NAV. From time to time, the Adviser will modify the estimates or assumptions regarding the Fund’s deferred tax liability as new information becomes available and may consider, among other matters, the duration of statutory carryforward periods, shareholder transactions, underlying index constituent changes and market conditions. The Fund’s estimates regarding its deferred tax liability are made in good faith; however, the daily estimate of the Fund’s deferred tax liability used to calculate the Fund’s NAV could vary significantly from the Fund’s actual tax liability.