Tortoise Pipeline & Energy Fund, Inc. and Tortoise Power and Energy Infrastructure Fund, Inc. Provide Section 19(a) Notice
Tortoise Pipeline & Energy Fund, Inc. and Tortoise Power and Energy Infrastructure Fund, Inc. have announced distributions for February 29, 2024. The distributions include net investment income, capital gains, and return of capital. The funds have shown varying percentages for different sources of distributions, with Tortoise Pipeline & Energy Fund, Inc. having a higher return of capital percentage compared to Tortoise Power and Energy Infrastructure Fund, Inc. The average annual total return, current distribution rate, and cumulative total return for both funds are provided for investor insight.
The distribution data for Tortoise Pipeline & Energy Fund, Inc. and Tortoise Power and Energy Infrastructure Fund, Inc. indicates a significant portion of the distributions is classified as return of capital. This is noteworthy as it suggests that the funds are returning a part of the investors' original investment rather than paying out profits. This can be a red flag for long-term sustainability as it may imply that the funds are not generating enough income from their investments.
Analyzing the average annual total return in relation to the Net Asset Value (NAV) being negative for Tortoise Pipeline & Energy Fund over the past five years is a cause for concern. It indicates that the fund has underperformed, which could be a deterrent for potential investors. Conversely, the positive average annual total return for Tortoise Power and Energy Infrastructure Fund suggests a better performance, albeit the annualized current distribution rate being higher than the average annual total return could indicate a potential pressure on the fund's assets.
Investors should be aware of the annualized distribution rates in relation to the NAV, as these figures can provide insight into the fund's ability to maintain its distributions. A high distribution rate may not be sustainable if it exceeds the fund's total returns, potentially leading to a depletion of capital over time.
From a market perspective, the distribution breakdown between net investment income and return of capital is important. A higher proportion of distributions coming from return of capital, as seen particularly in Tortoise Pipeline & Energy Fund, can be less attractive to income-focused investors who prefer regular income from dividends or interest rather than a return of their initial investment. This could impact the fund's marketability and investor sentiment.
The cumulative fiscal year distributions as a percentage of NAV also provide insight into the funds' payout strategies. For instance, a higher percentage might appeal to yield-seeking investors but could also signal a potential risk if the payouts are not supported by the funds' earnings and capital gains. This balance is crucial for the funds' ability to attract and retain investors, especially in a competitive market where numerous investment options are available.
Strategically, the difference in performance and distribution sources between the two funds could indicate varying investment approaches or asset allocations, which could be of interest to investors with specific investment goals or risk tolerances. For instance, a fund with a higher percentage of distribution from net investment income may be employing a strategy focused on generating income through dividends or interest, which can be perceived as more stable compared to capital gains.
Furthermore, the historical performance data, such as the average annual total return and cumulative total return, are critical for assessing the funds' past effectiveness in asset management and can influence future investment decisions. A negative average annual total return over a five-year period may prompt investors to scrutinize the fund's management decisions and the sectors it is invested in, while a positive return could reinforce investor confidence.
02/29/2024 - 04:02 PM
LEAWOOD, KS / ACCESSWIRE / February 29, 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 February 29, 2024, and cumulative distributions paid fiscal year-to-date.
The following table sets forth the estimated amounts of the current distributions, payable February 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 0.0350
6%
0.0350
6%
Net Realized Short-Term Capital Gains 0.0004
0%
0.0004
0%
Net Realized Long-Term Capital Gains 0.0000
0%
0.0000
0%
Return of Capital 0.5546
94%
0.5546
94%
Total (per common share) 0.5900
100%
0.5900
100%
Average annual total return (in relation to NAV) for the 5 years ending on 1/31/2024 -5.45% Annualized current distribution rate expressed as a percentage of NAV as of 1/31/2024 6.81% Cumulative total return (in relation to NAV) for the fiscal year through 1/31/2024 0.12% Cumulative fiscal year distributions as a percentage of NAV as 1/31/2024 1.70%
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 0.0332
32%
0.0996
32%
Net Realized Short-Term Capital Gains 0.0130
12%
0.0389
12%
Net Realized Long-Term Capital Gains 0.0013
1%
0.0041
1%
Return of Capital 0.0575
55%
0.1724
55%
Total (per common share) 0.1050
100%
0.3150
100%
Average annual total return (in relation to NAV) for the 5 years ending on 1/31/2024 4.13%
Annualized current distribution rate expressed as a percentage of NAV as of 1/31/2024 7.66%
Cumulative total return (in relation to NAV) for the fiscal year through 1/31/2024 2.74%
Cumulative fiscal year distributions as a percentage of NAV as of 1/31/2024 1.91%
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.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.
Contact Information
For more information contact Eva Lipner at (913) 981-1020 or info@tortoiseadvisors.com .
SOURCE: Tortoise
press release on accesswire.com
The estimated sources of distributions for Tortoise Pipeline & Energy Fund, Inc. include net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital.
The breakdown of the current distribution for Tortoise Pipeline & Energy Fund, Inc. includes 0.03506% from net investment income, 0.00040% from net realized short-term capital gains, 0.00000% from net realized long-term capital gains, and 0.554694% from return of capital.
The total cumulative distribution for the fiscal year to date for Tortoise Pipeline & Energy Fund, Inc. is 0.5900100% per common share.
The average annual total return for Tortoise Pipeline & Energy Fund, Inc. for the 5 years ending on 1/31/2024 is -5.45%.
The annualized current distribution rate expressed as a percentage of NAV for Tortoise Pipeline & Energy Fund, Inc. as of 1/31/2024 is 6.81%.
The cumulative total return for Tortoise Pipeline & Energy Fund, Inc. for the fiscal year through 1/31/2024 is 0.12%.
The estimated sources of distributions for Tortoise Power and Energy Infrastructure Fund, Inc. include net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital.
The breakdown of the current distribution for Tortoise Power and Energy Infrastructure Fund, Inc. includes 0.033232% from net investment income, 0.013012% from net realized short-term capital gains, 0.00131% from net realized long-term capital gains, and 0.057555% from return of capital.
The total cumulative distribution for the fiscal year to date for Tortoise Power and Energy Infrastructure Fund, Inc. is 0.1050100% per common share.
The average annual total return for Tortoise Power and Energy Infrastructure Fund, Inc. for the 5 years ending on 1/31/2024 is 4.13%.
The annualized current distribution rate expressed as a percentage of NAV for Tortoise Power and Energy Infrastructure Fund, Inc. as of 1/31/2024 is 7.66%.
The cumulative total return for Tortoise Power and Energy Infrastructure Fund, Inc. for the fiscal year through 1/31/2024 is 2.74%.
