Tortoise Capital Advisors said it has gained shareholder approval for two key fund merger proposals, including the transformation of certain closed-end funds into an actively managed exchange-traded fund (ETF).
Tortoise Capital Advisors Gets Go-Ahead For 2 Strategic Fund Merger Proposals
The changes are said to be aimed at enhancing operational efficiency and boosting shareholder value, with the final implementations set for 23 December 2024.
The first merger involves Tortoise Midstream Energy Fund (NTG) and Tortoise Energy Infrastructure Corp. (TYG). TYG will emerge as the surviving entity, maintaining its original strategy and becoming Tortoise’s flagship closed-end fund.
The merged fund will manage a combined total of $1.1 billion in assets as of 29 November 2024.
Furthermore, a notable move will see TYG’s distributions shift from quarterly to monthly, with a 40% increase to $0.365 per share starting in December.
Separately, three closed-end funds—Tortoise Power and Energy Infrastructure Fund (TPZ), Tortoise Pipeline & Energy Fund (TTP), and Tortoise Energy Independence Fund (NDP)—will merge into a new actively managed ETF, with TPZ leading the strategy.
The firm explained that the ETF will continue TPZ’s focus on high-quality energy opportunities and income generation while leveraging the modern ETF structure for greater liquidity and efficiency. Combined assets for the ETF will total $358 million post-merger.
“These strategic initiatives reflect our commitment to delivering value and flexibility to our shareholders. By merging TYG and NTG, we are solidifying TYG as our flagship closed-end fund solution for long-term investors,” said Tom Florence, CEO of Tortoise Capital.
“Simultaneously, the merger and conversion of TPZ, TTP, and NDP into an actively managed ETF provides a modernized structure that enhances liquidity, reduces inefficiencies, and offers access to high-quality opportunities in the energy sector.”
