Tortoise Power and Energy Infrastructure Fund, Inc. Provides Section 19(a) Notice
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Insights
Examining the distribution announcement by Tortoise Power and Energy Infrastructure Fund, Inc. (TPZ), the data reveals their current and cumulative payouts to shareholders. A significant portion of the distribution, 67.2%, is classified as a return of capital, which indicates that some of the money being returned to investors is not from income or capital gains but from the invested capital itself. This could suggest that the fund's investments are not generating sufficient returns, or it is part of a strategic approach to provide investors with liquidity.
Furthermore, the annualized current distribution rate is 7.75% relative to the Net Asset Value (NAV) as of November 30, 2023. This high distribution rate might appeal to income-focused investors, but it warrants a closer look at the sustainability of such payouts. The average annual total return of 4.40% over the past five years, juxtaposed with the distribution rate, raises questions about whether the distributions are being subsidized by capital, which could lead to a reduction in NAV over time.
From a market perspective, the distribution details of TPZ offer insight into the fund's fiscal health and strategy. The breakdown between income and capital gains is critical. The minimal percentages from net realized short-term and long-term capital gains, at 0.2% and 1.92% respectively, indicate limited capital gains being realized by the fund. This could reflect a conservative investment strategy or a focus on high-yield investments with less emphasis on capital appreciation.
The cumulative total return of 12.57% for the fiscal year is a robust indicator of the fund's performance, but the cumulative fiscal year distributions as a percentage of NAV at 0.65% might seem conservative. This discrepancy could be due to timing differences between when income is earned and when distributions are made, or it may reflect a policy of retaining earnings to reinvest in the fund's portfolio.
LEAWOOD, KS / ACCESSWIRE / December 29, 2023 / This notice provides stockholders of Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ) with information regarding the distribution paid on December 29, 2023, and cumulative distribution paid fiscal year-to-date.
The following table sets forth the estimated amounts of the current distribution, paid on December 29, 2023, and the cumulative distribution paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital. All amounts are expressed per common share.
Tortoise Power and Energy Infrastructure Fund, Inc.
Estimated Sources of Distributions | ||||
($) Current | % Breakdown of the | ($) Total Cumulative Distributions | % Breakdown of the Total Cumulative | |
| Net Investment Income | 0.0273 | 0.0273 | ||
| Net Realized Short-Term Capital Gains | 0.0002 | 0.0002 | ||
| Net Realized Long-Term Capital Gains | 0.0019 | 0.0019 | ||
| Return of Capital | 0.0756 | 0.0756 | ||
| Total (per common share) | 0.1050 | 0.1050 | ||
| Average annual total return (in relation to NAV) for the 5 years ending on 11/30/2023 | |
| Annualized current distribution rate expressed as a percentage of NAV as of 11/30/2023 | |
| Cumulative total return (in relation to NAV) for the fiscal year through 11/30/2023 | |
| Cumulative fiscal year distributions as a percentage of NAV as of 11/30/2023 |
You should not draw any conclusions about TPZ's investment performance from the amount of this distribution or from the terms of TPZ's distribution policies.
TPZ estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in TPZ is paid back to you. A return of capital distribution does not necessarily reflect TPZ's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon TPZ's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. TPZ will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Tortoise Capital Advisors is the Adviser to the Tortoise Power and Energy Infrastructure Fund, Inc.
For additional information on this fund, please visit cef.tortoiseecofin.com.
About Tortoise
Tortoise focuses on energy and power infrastructure and the transition to cleaner energy. Tortoise's solid track record of energy value chain investment experience and research dates back more than 20 years. As an early investor in midstream energy, Tortoise believes it is well-positioned to be at the forefront of the global energy evolution that is underway. With a steady wins approach and a long-term perspective, Tortoise strives to make a positive impact on clients and communities. To learn more, visit www.TortoiseEcofin.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the funds and Tortoise Capital Advisors believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund's reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the funds and Tortoise Capital Advisors do not assume a duty to update this forward-looking statement.
Safe Harbor Statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Contact Information
For more information contact Eva Lipner at (913) 981-1020 or info@tortoiseecofin.com.
SOURCE: Tortoise
View the original press release on accesswire.com
FAQ
What is the current distribution rate of Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ)?
What are the sources of the distribution paid by Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ)?
What is the average annual total return for the 5 years ending on 11/30/2023 for Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ)?
What is the cumulative total return for the fiscal year through 11/30/2023 for Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ)?
What is the annualized current distribution rate as a percentage of NAV as of 11/30/2023 for Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ)?
