Tortoise Capital Advisors Plans Merger of Three Closed-End Funds into Active ETF
Tortoise Capital Advisors has announced plans to merge three closed-end funds into a new actively managed ETF, the Tortoise Power and Energy Infrastructure ETF. The funds to be merged 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). TPZ will be the surviving strategy, with the ETF adopting its accounting and performance history.
The combined assets of the three funds, including leverage, totaled $313.3 million as of July 31, 2024. The expected management fee for the ETF is 85 basis points. The merger aims to provide shareholders with greater liquidity without potential discounts to net asset value. Tortoise Capital expects the transactions to close in the fourth quarter of 2024, subject to shareholder approvals and regulatory requirements.
Tortoise Capital Advisors ha annunciato piani per fondere tre fondi chiusi in un nuovo ETF attivamente gestito, il Tortoise Power and Energy Infrastructure ETF. I fondi che verranno fusi sono Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ), Tortoise Pipeline & Energy Fund, Inc. (NYSE:TTP) e Tortoise Energy Independence Fund, Inc. (NYSE:NDP). TPZ sarà la strategia che sopravvive, con l'ETF che adotta la sua contabilità e la sua storia di performance.
Le attività combinate dei tre fondi, inclusi i leva, ammontavano a 313,3 milioni di dollari al 31 luglio 2024. La commissione di gestione prevista per l'ETF è di 85 punti base. La fusione mira a fornire agli azionisti maggiore liquidità senza potenziali sconti sul valore netto degli attivi. Tortoise Capital prevede che le operazioni si chiuderanno nel quarto trimestre del 2024, soggette all'approvazione degli azionisti e ai requisiti normativi.
Tortoise Capital Advisors ha anunciado planes para fusionar tres fondos cerrados en un nuevo ETF gestionado activamente, el Tortoise Power and Energy Infrastructure ETF. Los fondos que se fusionarán son Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ), Tortoise Pipeline & Energy Fund, Inc. (NYSE:TTP) y Tortoise Energy Independence Fund, Inc. (NYSE:NDP). TPZ será la estrategia sobreviviente, con el ETF adoptando su contabilidad e historial de rendimiento.
Los activos combinados de los tres fondos, incluyendo el apalancamiento, totalizaban 313.3 millones de dólares al 31 de julio de 2024. La tarifa de gestión esperada para el ETF es de 85 puntos básicos. La fusión tiene como objetivo proporcionar a los accionistas mayor liquidez sin descuentos potenciales en el valor neto de los activos. Tortoise Capital espera que las transacciones se cierren en el cuarto trimestre de 2024, sujeto a la aprobación de los accionistas y los requisitos regulatorios.
Tortoise Capital Advisors는 세 개의 폐쇄형 펀드를 새로운 능동 관리 ETF로 병합할 계획을 발표했습니다, Tortoise Power and Energy Infrastructure ETF입니다. 병합될 펀드는 Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ), Tortoise Pipeline & Energy Fund, Inc. (NYSE:TTP), Tortoise Energy Independence Fund, Inc. (NYSE:NDP)입니다. TPZ가 생존 전략이 되며, ETF는 TPZ의 회계 및 성과 기록을 채택합니다.
세 펀드의 결합 자산은 레버리지를 포함하여 2024년 7월 31일 기준으로 3억 1,330만 달러에 달했습니다. ETF의 예상 관리 수수료는 85베이시스 포인트입니다. 이 병합은 주주에게 순 자산 가치에 대한 잠재적 할인 없이 더 큰 유동성을 제공하는 것을 목표로 하고 있습니다. Tortoise Capital은 주주 승인 및 규제 요건에 따라 2024년 4분기에 거래가 마무리될 것으로 예상하고 있습니다.
Tortoise Capital Advisors a annoncé des plans pour fusionner trois fonds fermés en un nouvel ETF géré activement, l'ETF Tortoise Power and Energy Infrastructure. Les fonds à fusionner sont le Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ), le Tortoise Pipeline & Energy Fund, Inc. (NYSE:TTP) et le Tortoise Energy Independence Fund, Inc. (NYSE:NDP). TPZ sera la stratégie survivante, l'ETF adoptant sa comptabilité et son historique de performance.
Les actifs combinés des trois fonds, y compris l'effet de levier, s'élevaient à 313,3 millions de dollars au 31 juillet 2024. Les frais de gestion prévus pour l'ETF sont de 85 points de base. La fusion vise à offrir aux actionnaires une plus grande liquidité sans potentiels escomptes sur la valeur nette des actifs. Tortoise Capital s'attend à ce que les transactions soient finalisées au cours du quatrième trimestre 2024, sous réserve des approbations des actionnaires et des exigences réglementaires.
Tortoise Capital Advisors hat Pläne angekündigt, drei geschlossene Fonds in einen neuen aktiv verwalteten ETF zu fusionieren, den Tortoise Power and Energy Infrastructure ETF. Die zu fusionierenden Fonds sind Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ), Tortoise Pipeline & Energy Fund, Inc. (NYSE:TTP) und Tortoise Energy Independence Fund, Inc. (NYSE:NDP). TPZ wird die überlebende Strategie sein, wobei der ETF ihre Buchhaltungs- und Leistungsgeschichte übernimmt.
Die kombinierten Vermögenswerte der drei Fonds betrugen einschließlich Leverage zum 31. Juli 2024 insgesamt 313,3 Millionen Dollar. Die erwartete Verwaltungsgebühr für den ETF beträgt 85 Basispunkte. Die Fusion zielt darauf ab, den Aktionären größere Liquidität ohne potenzielle Abschläge auf den Nettowert der Vermögenswerte zu bieten. Tortoise Capital erwartet, dass die Transaktionen im vierten Quartal 2024 abgeschlossen werden, vorbehaltlich der Genehmigungen der Aktionäre und der regulatorischen Anforderungen.
- Merger aims to provide shareholders with greater liquidity at net asset value
- Combined assets of the three funds total $313.3 million as of July 31, 2024
- ETF structure may offer improved tax efficiency compared to closed-end funds
- Continuity of investment strategy and management team
- Merger subject to shareholder approvals and regulatory requirements
- Potential integration challenges during the transition to ETF structure
- Possible short-term market disruption during the reorganization process
Insights
This merger of closed-end funds into an actively managed ETF is a strategic move by Tortoise Capital to enhance shareholder value. The key benefits include:
- Improved liquidity for investors
- Elimination of potential discounts to NAV
- Maintained investment strategy and team
The combined assets of
This merger reflects a broader industry trend towards actively managed ETFs, which offer benefits of both active management and ETF structure. Key market implications include:
- Increased competition in the energy infrastructure ETF space
- Potential for improved investor sentiment towards Tortoise's offerings
- Possible catalyst for similar moves by other closed-end fund managers
The timing aligns with growing investor interest in energy infrastructure amid global energy transitions. However, the success will hinge on the new ETF's ability to deliver consistent performance and attract inflows in a competitive landscape.
Actively Managed ETF Aims to Offer Investors Greater Liquidity at Net Asset Value
OVERLAND PARK, KS / ACCESSWIRE / August 6, 2024 / 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
"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
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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.
SOURCE: Tortoise
View the original press release on accesswire.com
FAQ
What closed-end funds are being merged into the new Tortoise Power and Energy Infrastructure ETF?
When is the expected closing date for the merger of TPZ into the new ETF?
What is the total asset value of the three funds being merged into the Tortoise Power and Energy Infrastructure ETF?
What is the expected management fee for the new Tortoise Power and Energy Infrastructure ETF?
