Tortoise Pipeline & Energy Fund, Inc. and Tortoise Power and Energy Infrastructure Fund, Inc. Provide Section 19(a) Notice

Rhea-AI Summary

Tortoise Pipeline & Energy Fund (TTP) and Tortoise Power and Energy Infrastructure Fund (TPZ) have announced their Section 19(a) distributions for November 29, 2024. TTP distributed $0.59 per share, with 16% from net investment income and 84% from return of capital. TPZ distributed $0.105 per share, with 24% from net investment income and 76% from return of capital.

TTP reported a five-year average annual return of 3.30% and a fiscal year-to-date return of 39.34%. TPZ showed stronger performance with a five-year average annual return of 9.12% and a fiscal year-to-date return of 26.76%. Both funds indicate they have distributed more than their income and net realized capital gains.

Positive

• TTP achieved a significant 39.34% fiscal year-to-date return
• TPZ delivered strong 26.76% fiscal year-to-date return
• TPZ maintained solid 9.12% five-year average annual return

Negative

• Both funds are distributing more than their earned income and capital gains
• Majority of distributions (84% for TTP, 76% for TPZ) consist of return of capital
• TTP's five-year average annual return of 3.30% is relatively low

Insights

Financial Analyst

This Section 19(a) notice reveals concerning distribution patterns for both TTP and TPZ funds. A significant portion of their distributions comes from return of capital - 84% for TTP and 76% for TPZ - rather than from investment income. While TTP shows impressive fiscal year returns of 39.34% and TPZ at 26.76%, the high reliance on return of capital for distributions suggests potential sustainability issues.

The funds' distribution policies may not align with their actual earnings capacity, as evidenced by the minimal contribution from net investment income and absence of capital gains in the distributions. This structure could gradually erode the funds' capital base if investment performance doesn't sufficiently cover the distributions. The high annualized distribution rates (5.15% for TTP and 6.58% for TPZ) relative to their five-year returns warrant careful monitoring.

OVERLAND PARK, KS / ACCESSWIRE / November 29, 2024 / This required notice under Section 19(a) of the Investment Company Act of 1940 provides stockholders of Tortoise Pipeline & Energy Fund, Inc. (NYSE:TTP) and Tortoise Power and Energy Infrastructure Fund, Inc. (NYSE:TPZ) with information regarding the sources of the distributions paid on Nov. 29, 2024, and cumulative distributions paid fiscal year-to-date.

The following table sets forth the estimated amounts of the current distributions, payable Nov. 29, 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	0.0915	16%	0.4492	19%
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	0.4985	84%	1.9108	81%
Total (per common share)	0.5900	100%	2.3600	100%

Average annual total return (in relation to NAV) for the five years ending on October 31, 2024	3.30%
Annualized current distribution rate expressed as a percentage of NAV as of October 31, 2024	5.15%
Cumulative total return (in relation to NAV) for the fiscal year through October 31, 2024	39.34%
Cumulative fiscal year distributions as a percentage of NAV as of October 31, 2024	5.15%

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 0.0256 24% 0.2961 24% 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 0.0794 76% 0.9639 76% Total (per common share) 0.1050 100% 1.2600 100% Average annual total return (in relation to NAV) for the five years ending on October 31, 2024 9.12% Annualized current distribution rate expressed as a percentage of NAV as of October 31, 2024 6.58% Cumulative total return (in relation to NAV) for the fiscal year through October 31, 2024 26.76% Cumulative fiscal year distributions as a percentage of NAV as of October 31, 2024 6.58%

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 Capital

With approximately $8.8 billion in assets under management as of October 31, 2024, Tortoise Capital's record of investment experience and research dates back more than 20 years. As an early investor in midstream energy, Tortoise Capital believes it is well-

positioned to be at the forefront of the global energy evolution that is under way. Based in Overland Park, Kansas, Tortoise Capital Advisors, L.L.C. 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. For more information about Tortoise Capital, visit www.TortoiseAdvisors.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.

Media Contacts

Margaret Kirch Cohen/Richard Chimberg
Newton Park PR
+1 847-507-2229
+1 617-312-4281
margaret@newtonparkpr.com
rich@newtonparkpr.com

SOURCE: Tortoise Capital

View the original press release on accesswire.com

FAQ

What is the current distribution rate for Tortoise Pipeline & Energy Fund (TTP)?

TTP's current distribution is $0.59 per share, with an annualized distribution rate of 5.15% of NAV as of October 31, 2024.

How much of TPZ's distribution is return of capital?

76% ($0.0794 per share) of TPZ's current distribution represents return of capital.

What is the five-year average annual return for TPZ as of October 31, 2024?

TPZ's five-year average annual return in relation to NAV is 9.12% as of October 31, 2024.

What percentage of TTP's distribution comes from net investment income?

16% ($0.0915 per share) of TTP's current distribution comes from net investment income.