Actively Managed ETF Aims to Offer Investors Greater
Liquidity at Net Asset Value
OVERLAND
PARK, Kan., Aug. 6, 2024
/PRNewswire/ -- Tortoise Capital Advisors, L.L.C. (Tortoise
Capital), a fund manager focused on traditional energy and power
infrastructure investing, today announced its plans to merge three
of its closed-end funds into a newly formed actively managed
exchange-traded fund (ETF), Tortoise Power and Energy
Infrastructure ETF.
The three similar funds merging into an active ETF are Tortoise
Power and Energy Infrastructure Fund, Inc. (NYSE: TPZ), Tortoise
Pipeline & Energy Fund, Inc. (NYSE: TTP), and Tortoise Energy
Independence Fund, Inc. (NYSE: NDP), with TPZ as the surviving
strategy. Tortoise Capital expects the ETF to adopt the accounting
and performance history of TPZ as well as maintain a similar
investment strategy, investing primarily in fixed income and
dividend-paying equity securities of power and energy
infrastructure companies.
This merger of the closed-end funds was approved by the board of
directors and is consistent with its efforts to provide shareholder
value through strategic initiatives.
Tortoise Capital, the manager of TPZ, TTP, and NDP, will
continue as manager of Tortoise Power and Energy Infrastructure ETF
with the same investment team that has been in place at the
closed-end funds. The combined assets in the three funds to be
merged, including leverage, totaled $313.3
million as of July 31, 2024.
Tortoise expects the management fee of the ETF to be 85 basis
points.
"We believe these actions are in the best interest of fund
shareholders, providing them greater liquidity without a potential
discount to net asset value," said Tom
Florence, CEO of Tortoise Capital. "Actively managed ETFs
will play an ever-growing role in fund investing and we will
continue to evaluate the structure for our other products."
Tortoise Capital expects the transactions will close in the
fourth quarter, subject to requisite fund shareholder approvals,
satisfaction of applicable regulatory requirements and approvals,
and customary closing conditions. Each merger is intended to
qualify as a tax-free reorganization for federal income tax
purposes. No merger is contingent upon any other merger. There is
no assurance when or whether such approvals, or any other approvals
required for the transactions, will be obtained. More information
on the proposed transactions will be contained in proxy materials
and registration statement materials that TPZ, TTP, and NDP and the
newly created ETF anticipate filing in the coming weeks.
The company recently announced a strategic restructuring through
which it will sell its Ecofin Advisors Limited business and its
private credit business to focus on traditional energy and power
infrastructure investing.
About Tortoise Capital Advisors
Based in Overland Park, Kansas,
Tortoise Capital Advisors is an SEC-registered fund manager that
invests primarily in publicly traded companies in the energy and
power infrastructure sectors—from production to transportation to
distribution. With approximately $8
billion in assets under management as of July 31, 2024, Tortoise Capital's solid record of
investment experience and research dates back more than 20 years.
As one of the earliest investors in midstream energy, Tortoise
Capital believes it is well-positioned to be at the forefront of
the global energy evolution that is under way. For more information
about Tortoise Capital, visit www.Tortoiseadvisors.com.
Media Contacts:
Margaret Kirch Cohen/Richard Chimberg
Newton Park PR
+1 847-507-2229
+1 617-312-4281
margaret@newtonparkpr.com
rich@newtonparkpr.com
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may be forward-looking.
Actual future events may differ significantly from those expressed
in forward-looking statements for a variety of reasons, which may
include, without limitation, the ability to obtain requisite
shareholder approvals or to satisfy other conditions for the
proposed mergers; changes in market conditions; changes in
applicable legal, regulatory or tax considerations; and other risks
and uncertainties.
Investors should not place undue reliance on forward-looking
statements, as they speak only as of the date they are made.
Tortoise Capital Advisors and the funds it manages do not undertake
to update or revise any forward-looking statements. The annual and
semi-annual reports of TPZ, TTP and NDP and other regulatory
filings with the Securities and Exchange Commission (SEC) are
accessible at www.sec.gov and at https://cef.tortoiseadvisors.com/.
The information contained on the funds' website is not a part
of this press release.
IMPORTANT INFORMATION
In connection with the proposed mergers discussed in this press
release, the funds and the new ETF expect to file with the SEC
solicitation materials in the form of a joint proxy
statement/prospectus that will be included in a registration
statement on Form N-14. After the registration statement is
filed with the SEC, it may be amended or withdrawn, and the joint
proxy statement/prospectus will not be distributed to fund
shareholders unless and until the registration statement is
declared effective by the SEC. Investors are urged to read the
joint proxy statement/prospectus and any other relevant documents
when they become available because they will contain important
information about the proposed mergers and the new ETF. Once
filed, copies of the joint proxy statement/prospectus and other
materials will be available free of charge at www.sec.gov.
This press release is for informational purposes only and is not
a solicitation of a proxy from any fund shareholder and does not
constitute an offer of any securities for sale. No offer of
securities will be made except pursuant to a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933. However,
Tortoise Capital Advisors, the funds and certain of their
respective directors, officers and affiliates may be deemed under
the rules of the SEC to be participants in the solicitation of
proxies from fund shareholders in connection with the proposed
mergers discussed in this press release. Information about the
directors and officers of the funds may be found in their annual
reports previously filed with the SEC.
View original
content:https://www.prnewswire.com/news-releases/tortoise-capital-advisors-plans-merger-of-three-closed-end-funds-into-active-etf-302215028.html
SOURCE Tortoise Capital
