Tortoise Pipeline & Energy Fund, Inc. and Tortoise Power and Energy Infrastructure Fund, Inc. Provide Section 19(a) Notice
On May 31, 2024, Tortoise Pipeline & Energy Fund (NYSE:TTP) and Tortoise Power and Energy Infrastructure Fund (NYSE:TPZ) issued a Section 19(a) notice regarding their distributions. TTP's current distribution is $0.5900 per share, primarily consisting of a 67% return of capital. Cumulative distributions for the fiscal year total $1.1800 per share, with an 80% return of capital. TPZ's current distribution is $0.1050 per share, with a 69% return of capital. Cumulative distributions for TPZ are $0.6300 per share, with a 75% return of capital.
The funds have distributed more than their income and capital gains, indicating that a portion of the distribution is a return of capital. This should not be confused with yield or income, and actual amounts may differ for tax reporting purposes.
For the 5-year period ending April 30, 2024, TTP had an average annual total return of -3.77%, while TPZ had a 5.08% return. Current distribution rates, as of April 30, 2024, were 6.81% for TTP and 7.22% for TPZ.
- TPZ has an average annual total return of 5.08% over the past 5 years.
- TPZ's current distribution rate is 7.22% as of April 30, 2024.
- TTP has a cumulative total return of 12.94% for the fiscal year through April 30, 2024.
- TPZ has a cumulative total return of 11.20% for the fiscal year through April 30, 2024.
- TTP's average annual total return for the past 5 years is -3.77%.
- Both TTP and TPZ have a high percentage of distributions as return of capital, 67% and 69% respectively.
- TTP's cumulative fiscal year distributions are heavily weighted towards return of capital at 80%.
- TPZ's cumulative fiscal year distributions are 75% return of capital.
Insights
The distribution breakdown provided by Tortoise Pipeline & Energy Fund (TTP) and Tortoise Power and Energy Infrastructure Fund (TPZ) involves significant reliance on return of capital (ROC). For TTP,
ROC distributions can be concerning for investors as they effectively return the original investment rather than earned profits, potentially eroding fund value over time. The annualized current distribution rates of
Retail investors should be cautious and consider the long-term implications of these ROC-heavy distributions. They should also monitor future earnings and NAV performance alongside the fund's ability to generate income to ensure distributions are supported by actual gains.
The provided data reveals both TTP and TPZ funds have experienced positive cumulative total returns for the fiscal year
Investors should evaluate the market conditions influencing the energy sector and infrastructure investments. Given the volatility in energy markets, an over-reliance on ROC might indicate underlying challenges in maintaining consistent income levels. It's vital to consider industry trends, regulatory impacts and broader economic factors that could affect fund sustainability and growth.
Moreover, investors need to differentiate between total return and the sources of distributions, ensuring they understand the implications of ROC on their investment returns and potential future value.
LEAWOOD, KS / ACCESSWIRE / May 31, 2024 / This notice provides stockholders of Tortoise Pipeline & Energy Fund, Inc. (NYSE:TTP) and Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ) with information regarding the distributions paid on May 31, 2024, and cumulative distributions paid fiscal year-to-date.
The following table sets forth the estimated amounts of the current distributions, payable May 31, 2024, and the cumulative distributions 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 Pipeline & Energy Fund, Inc.
| Estimated Sources of Distributions | |||||||||||||||||
| ($) Current Distribution | % Breakdown of the Current Distribution | ($) Total Cumulative Distributions for the Fiscal Year to Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year to Date | ||||||||||||||
Net Investment Income | 0.1923 | 33 | % | 0.2330 | 20 | % | |||||||||||
Net Realized Short-Term Capital Gains | 0.0000 | 0 | % | 0.0000 | 0 | % | |||||||||||
Net Realized Long-Term Capital Gains | 0.0000 | 0 | % | 0.0000 | 0 | % | |||||||||||
Return of Capital | 0.3977 | 67 | % | 0.9470 | 80 | % | |||||||||||
Total (per common share) | 0.5900 | 100 | % | 1.1800 | 100 | % | |||||||||||
| Average annual total return (in relation to NAV) for the 5 years ending on 4/30/2024 | - |
| Annualized current distribution rate expressed as a percentage of NAV as of 4/30/2024 | |
| Cumulative total return (in relation to NAV) for the fiscal year through 4/30/2024 | |
| Cumulative fiscal year distributions as a percentage of NAV as 4/30/2024 |
Tortoise Power and Energy Infrastructure Fund, Inc.
| Estimated Sources of Distributions | ||||||||||||||||
| ($) Current Distribution | % Breakdown of the Current Distribution | ($) Total Cumulative Distributions for the Fiscal Year to Date | % Breakdown of the Total Cumulative Distributions for the Fiscal Year to Date | |||||||||||||
Net Investment Income | 0.0327 | 31 | % | 0.1575 | 25 | % | ||||||||||
Net Realized Short-Term Capital Gains | 0.0000 | 0 | % | 0.0000 | 0 | % | ||||||||||
Net Realized Long-Term Capital Gains | 0.0000 | 0 | % | 0.0000 | 0 | % | ||||||||||
Return of Capital | 0.0723 | 69 | % | 0.4725 | 75 | % | ||||||||||
Total (per common share) | 0.1050 | 100 | % | 0.6300 | 100 | % | ||||||||||
| Average annual total return (in relation to NAV) for the 5 years ending on 4/30/2024 | |
| Annualized current distribution rate expressed as a percentage of NAV as of 4/30/2024 | |
| Cumulative total return (in relation to NAV) for the fiscal year through 4/30/2024 | |
| Cumulative fiscal year distributions as a percentage of NAV as of 4/30/2024 |
You should not draw any conclusions about TTP's or TPZ's investment performance from the amount of this distribution or from the terms of TTP's and TPZ's distribution policies.
TTP and TPZ estimate that they have distributed more than their 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 TTP and/or TPZ is paid back to you. A return of capital distribution does not necessarily reflect TTP's and/or 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 TTP's and TPZ's investment experience during the remainder of their fiscal years and may be subject to changes based on tax regulations. TTP and/or 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 Pipeline & Energy Fund, Inc. and the Tortoise Power and Energy Infrastructure Fund, Inc.
For additional information on these funds, please visit cef.tortoiseadvisors.com.
About Tortoise
Tortoise focuses on energy & 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, please 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@tortoiseadvisors.com
SOURCE: Tortoise
View the original press release on accesswire.com
FAQ
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What is TPZ's current distribution rate as of April 30, 2024?
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