Schedule of Options Written (unaudited)
August 31, 2020
TEAF
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options Written
|
|
Expiration Date
|
|
Strike Price
|
|
Contracts
|
|
Notional Value
|
|
Fair Value
|
Equitrans Midstream Corp.
|
|
September 2020
|
|
|
$
|
11.50
|
|
|
|
3,500
|
|
|
$
|
4,025,000
|
|
$
|
(45,903
|
)
|
ONEOK, Inc.
|
|
September 2020
|
|
|
|
29.00
|
|
|
|
450
|
|
|
|
1,305,000
|
|
|
(30,213
|
)
|
Cheniere Energy Inc.
|
|
September 2020
|
|
|
|
55.00
|
|
|
|
398
|
|
|
|
2,189,000
|
|
|
(33,830
|
)
|
Targa Resources Corp.
|
|
September 2020
|
|
|
|
20.00
|
|
|
|
2,359
|
|
|
|
4,718,000
|
|
|
(47,180
|
)
|
The Williams Companies, Inc.
|
|
September 2020
|
|
|
|
23.00
|
|
|
|
2,679
|
|
|
|
6,161,700
|
|
|
(8,037
|
)
|
Total Value of Call Options Written (Premiums received $330,248)
|
|
|
|
|
|
|
|
|
|
|
$
|
18,398,700
|
|
$
|
(165,163
|
)
|
See accompanying Notes to Financial Statements.
|
|
|
|
Statements of Assets & Liabilities (unaudited)
|
August 31, 2020
|
|
|
|
|
|
|
|
|
Tortoise Energy
|
|
Tortoise
|
|
|
Infrastructure
|
|
Midstream Energy
|
|
|
Corp.(1)
|
|
Fund, Inc.
|
Assets
|
|
|
|
|
|
|
|
|
Investments in unaffiliated securities at fair value(2)
|
|
$
|
386,151,400
|
|
|
$
|
211,653,721
|
|
Investments in affiliated securities at fair value(3)
|
|
|
10,803,401
|
|
|
|
—
|
|
Cash
|
|
|
—
|
|
|
|
—
|
|
Receivable for investments sold
|
|
|
—
|
|
|
|
116,144
|
|
Dividends, distributions and interest receivable from investments
|
|
|
850,010
|
|
|
|
431,110
|
|
Tax reclaims receivable
|
|
|
—
|
|
|
|
—
|
|
Deferred tax asset
|
|
|
—
|
|
|
|
—
|
|
Income tax receivable
|
|
|
52,052,354
|
|
|
|
—
|
|
Prepaid expenses and other assets
|
|
|
813,552
|
|
|
|
359,126
|
|
Total assets
|
|
|
450,670,717
|
|
|
|
212,560,101
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Call options written, at fair value(4)
|
|
|
—
|
|
|
|
—
|
|
Payable to Adviser
|
|
|
603,720
|
|
|
|
316,324
|
|
Accrued directors’ fees and expenses
|
|
|
—
|
|
|
|
33,657
|
|
Payable for shares repurchased
|
|
|
97,688
|
|
|
|
26,620
|
|
Accrued expenses and other liabilities
|
|
|
1,713,047
|
|
|
|
871,965
|
|
Unrealized depreciation of interest rate swap contracts
|
|
|
245,527
|
|
|
|
—
|
|
Current tax liability
|
|
|
29,536,506
|
|
|
|
19,418,791
|
|
Credit facility borrowings
|
|
|
—
|
|
|
|
—
|
|
Senior notes, net(5)
|
|
|
92,445,842
|
|
|
|
38,101,577
|
|
Mandatory redeemable preferred stock, net(6)
|
|
|
31,634,329
|
|
|
|
12,388,266
|
|
Total liabilities
|
|
|
156,276,659
|
|
|
|
71,157,200
|
|
Net assets applicable to common stockholders
|
|
$
|
294,394,058
|
|
|
$
|
141,402,901
|
|
Net Assets Applicable to Common Stockholders Consist of:
|
|
|
|
|
|
|
|
|
Capital stock, $0.001 par value per share
|
|
$
|
13,072
|
|
|
$
|
6,214
|
|
Additional paid-in capital
|
|
|
665,598,455
|
|
|
|
576,223,784
|
|
Total distributable loss
|
|
|
(371,217,469
|
)
|
|
|
(434,827,097
|
)
|
Net assets applicable to common stockholders
|
|
$
|
294,394,058
|
|
|
$
|
141,402,901
|
|
Capital shares:
|
|
|
|
|
|
|
|
|
Authorized
|
|
|
100,000,000
|
|
|
|
100,000,000
|
|
Outstanding
|
|
|
13,072,083
|
|
|
|
6,213,567
|
|
Net Asset Value per common share outstanding (net assets applicable
|
|
|
|
|
|
|
|
|
to common stock, divided by common shares outstanding)
|
|
$
|
22.52
|
|
|
$
|
22.76
|
|
|
|
|
|
|
|
|
|
|
(1) Consolidated Statement of Assets and Liabilities
(See Note 13 to the financial statements for further disclosure).
|
|
|
|
|
|
|
|
|
(2) Investments in unaffiliated securities at cost
|
|
$
|
495,452,396
|
|
|
$
|
284,732,939
|
|
(3) Investments in affiliated securities at cost
|
|
$
|
53,206,470
|
|
|
$
|
—
|
|
(4) Call options written, premiums received
|
|
$
|
—
|
|
|
$
|
—
|
|
(5) Deferred debt issuance and offering costs
|
|
$
|
320,825
|
|
|
$
|
98,423
|
|
(6) Deferred offering costs
|
|
$
|
665,671
|
|
|
$
|
311,734
|
|
See accompanying Notes to Financial Statements.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Tortoise Power
|
|
Tortoise
|
|
Tortoise Pipeline
|
|
Tortoise Energy
|
|
and Energy
|
|
Essential Assets
|
|
& Energy
|
|
Independence
|
|
Infrastructure
|
|
Income Term
|
|
Fund, Inc.
|
|
Fund, Inc.
|
|
Fund, Inc.
|
|
Fund(1)
|
|
|
|
|
|
|
|
|
|
$
|
71,317,650
|
|
|
$
|
33,590,424
|
|
|
$
|
110,767,960
|
|
|
$
|
192,776,980
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
41,615,788
|
|
|
|
—
|
|
|
|
—
|
|
|
|
800
|
|
|
|
100,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
161,442
|
|
|
|
145,507
|
|
|
|
1,037,109
|
|
|
|
2,461,898
|
|
|
|
—
|
|
|
|
2,884
|
|
|
|
15,576
|
|
|
|
296,500
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
406,036
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
99,849
|
|
|
|
20,689
|
|
|
|
16,759
|
|
|
|
32,249
|
|
|
|
71,578,941
|
|
|
|
33,759,504
|
|
|
|
111,838,204
|
|
|
|
237,689,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
165,163
|
|
|
|
134,357
|
|
|
|
62,290
|
|
|
|
174,879
|
|
|
|
539,359
|
|
|
|
25,957
|
|
|
|
23,842
|
|
|
|
26,534
|
|
|
|
5,523
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
401,620
|
|
|
|
135,950
|
|
|
|
305,068
|
|
|
|
202,587
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,400,000
|
|
|
|
26,100,000
|
|
|
|
30,500,000
|
|
|
|
18,347,731
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,033,422
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,943,087
|
|
|
|
4,622,082
|
|
|
|
26,606,481
|
|
|
|
31,412,632
|
|
|
$
|
46,635,854
|
|
|
$
|
29,137,422
|
|
|
$
|
85,231,723
|
|
|
$
|
206,276,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,473
|
|
|
$
|
1,846
|
|
|
$
|
6,951
|
|
|
$
|
13,491
|
|
|
|
187,376,745
|
|
|
|
221,128,808
|
|
|
|
126,411,721
|
|
|
|
261,037,094
|
|
|
|
(140,743,364
|
)
|
|
|
(191,993,232
|
)
|
|
|
(41,186,949
|
)
|
|
|
(54,773,766
|
)
|
|
$
|
46,635,854
|
|
|
$
|
29,137,422
|
|
|
$
|
85,231,723
|
|
|
$
|
206,276,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100,000,000
|
|
|
|
100,000,000
|
|
|
|
100,000,000
|
|
|
|
100,000,000
|
|
|
|
2,472,842
|
|
|
|
1,845,997
|
|
|
|
6,951,333
|
|
|
|
13,491,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
18.86
|
|
|
$
|
15.78
|
|
|
$
|
12.26
|
|
|
$
|
15.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
92,108,079
|
|
|
$
|
38,327,412
|
|
|
$
|
125,457,098
|
|
|
$
|
187,944,156
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50,057,453
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
330,248
|
|
|
$
|
52,269
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
66,578
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
See accompanying Notes to Financial Statements.
|
|
|
|
Statements of Operations (unaudited)
|
Period from December 1, 2019 through August 31, 2020
|
|
|
|
|
|
|
|
|
Tortoise Energy
|
|
Tortoise
|
|
|
Infrastructure
|
|
Midstream Energy
|
|
|
Corp.(1)
|
|
Fund, Inc.
|
Investment Income
|
|
|
|
|
|
|
|
|
Distributions from master limited partnerships
|
|
$
|
45,654,595
|
|
|
$
|
30,363,927
|
|
Dividends and distributions from common stock
|
|
|
8,898,945
|
|
|
|
8,473,623
|
|
Dividends and distributions from preferred stock
|
|
|
5,058,028
|
|
|
|
3,152,258
|
|
Dividends and distributions from private investments
|
|
|
275,000
|
|
|
|
—
|
|
Less return of capital on distributions(2)
|
|
|
(52,502,189
|
)
|
|
|
(34,636,258
|
)
|
Less foreign taxes withheld
|
|
|
(32,347
|
)
|
|
|
(27,044
|
)
|
Net dividends and distributions from investments
|
|
|
7,352,032
|
|
|
|
7,326,506
|
|
Interest income
|
|
|
1,890,834
|
|
|
|
1,040,977
|
|
Total Investment Income
|
|
|
9,242,866
|
|
|
|
8,367,483
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
Advisory fees
|
|
|
6,438,837
|
|
|
|
4,223,327
|
|
Administrator fees
|
|
|
206,888
|
|
|
|
113,789
|
|
Professional fees
|
|
|
320,700
|
|
|
|
208,072
|
|
Directors fees
|
|
|
102,050
|
|
|
|
98,836
|
|
Stockholder communication expenses
|
|
|
112,450
|
|
|
|
72,413
|
|
Custodian fees and expenses
|
|
|
27,317
|
|
|
|
17,703
|
|
Fund accounting fees
|
|
|
49,027
|
|
|
|
35,690
|
|
Registration fees
|
|
|
39,268
|
|
|
|
47,195
|
|
Swap breakage fees
|
|
|
—
|
|
|
|
—
|
|
Stock transfer agent fees
|
|
|
38,507
|
|
|
|
45,345
|
|
Franchise fees
|
|
|
2,893
|
|
|
|
—
|
|
Other operating expenses
|
|
|
114,424
|
|
|
|
49,811
|
|
Total Operating Expenses
|
|
|
7,452,361
|
|
|
|
4,912,181
|
|
Leverage Expenses
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
6,752,508
|
|
|
|
4,973,964
|
|
Distributions to mandatory redeemable preferred stockholders
|
|
|
3,474,380
|
|
|
|
2,409,643
|
|
Amortization of debt issuance costs
|
|
|
317,020
|
|
|
|
252,421
|
|
Premium on redemption of senior notes
|
|
|
2,332,000
|
|
|
|
2,888,000
|
|
Premium on redemption of mandatory redeemable preferred stock
|
|
|
1,327,000
|
|
|
|
1,193,000
|
|
Other leverage expenses
|
|
|
247,932
|
|
|
|
124,265
|
|
Total Leverage Expenses
|
|
|
14,450,840
|
|
|
|
11,841,293
|
|
Total Expenses
|
|
|
21,903,201
|
|
|
|
16,753,474
|
|
Less fees waived by Adviser (Note 4)
|
|
|
—
|
|
|
|
—
|
|
Net Expenses
|
|
|
21,903,201
|
|
|
|
16,753,474
|
|
Net Investment Income (Loss), before Income Taxes
|
|
|
(12,660,335
|
)
|
|
|
(8,385,991
|
)
|
Deferred tax benefit (expense)
|
|
|
1,786,896
|
|
|
|
1,080,642
|
|
Net Investment Income (Loss)
|
|
|
(10,873,439
|
)
|
|
|
(7,305,349
|
)
|
(1)
|
Consolidated Statement of Operations (See Note 13 to the financial statements for further disclosure).
|
(2)
|
Return of Capital may be in excess of current year distributions due to prior year adjustments. See Note 2 to the financial statements for further disclosure.
|
See accompanying Notes to Financial Statements.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Tortoise Power
|
|
Tortoise
|
|
Tortoise Pipeline
|
|
Tortoise Energy
|
|
and Energy
|
|
Essential Assets
|
|
& Energy
|
|
Independence
|
|
Infrastructure
|
|
Income Term
|
|
Fund, Inc.
|
|
Fund, Inc.
|
|
Fund, Inc.
|
|
Fund(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,243,402
|
|
|
$
|
321,965
|
|
|
$
|
2,241,245
|
|
|
$
|
3,265,266
|
|
|
|
4,814,371
|
|
|
|
1,063,752
|
|
|
|
1,612,226
|
|
|
|
3,481,653
|
|
|
|
141,359
|
|
|
|
142,286
|
|
|
|
116,995
|
|
|
|
644,149
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,694,453
|
|
|
|
(4,236,600
|
)
|
|
|
(487,045
|
)
|
|
|
(2,972,277
|
)
|
|
|
(3,320,914
|
)
|
|
|
(190,712
|
)
|
|
|
(16,771
|
)
|
|
|
(17,231
|
)
|
|
|
(305,414
|
)
|
|
|
2,771,820
|
|
|
|
1,024,187
|
|
|
|
980,958
|
|
|
|
9,459,193
|
|
|
|
3,971
|
|
|
|
1,381
|
|
|
|
3,442,079
|
|
|
|
4,738,041
|
|
|
|
2,775,791
|
|
|
|
1,025,568
|
|
|
|
4,423,037
|
|
|
|
14,197,234
|
|
|
|
|
|
985,446
|
|
|
|
433,673
|
|
|
|
937,805
|
|
|
|
2,460,849
|
|
|
|
36,240
|
|
|
|
23,774
|
|
|
|
45,532
|
|
|
|
72,995
|
|
|
|
128,863
|
|
|
|
101,422
|
|
|
|
128,185
|
|
|
|
204,683
|
|
|
|
90,128
|
|
|
|
88,359
|
|
|
|
81,621
|
|
|
|
77,244
|
|
|
|
42,392
|
|
|
|
27,471
|
|
|
|
55,737
|
|
|
|
28,673
|
|
|
|
3,585
|
|
|
|
7,902
|
|
|
|
3,947
|
|
|
|
6,370
|
|
|
|
22,877
|
|
|
|
19,787
|
|
|
|
19,165
|
|
|
|
22,486
|
|
|
|
15,543
|
|
|
|
18,719
|
|
|
|
18,370
|
|
|
|
7,044
|
|
|
|
—
|
|
|
|
—
|
|
|
|
370,000
|
|
|
|
—
|
|
|
|
7,530
|
|
|
|
25,636
|
|
|
|
10,998
|
|
|
|
11,452
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,249
|
|
|
|
22,936
|
|
|
|
13,447
|
|
|
|
16,626
|
|
|
|
1,355,853
|
|
|
|
769,679
|
|
|
|
1,684,807
|
|
|
|
2,908,422
|
|
|
|
|
|
825,771
|
|
|
|
228,294
|
|
|
|
778,924
|
|
|
|
406,063
|
|
|
|
440,767
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
35,106
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
96,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
99,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
37,587
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,534,231
|
|
|
|
228,294
|
|
|
|
778,924
|
|
|
|
406,063
|
|
|
|
2,890,084
|
|
|
|
997,973
|
|
|
|
2,463,731
|
|
|
|
3,314,485
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(212,695
|
)
|
|
|
2,890,084
|
|
|
|
997,973
|
|
|
|
2,463,731
|
|
|
|
3,101,790
|
|
|
|
(114,293
|
)
|
|
|
27,595
|
|
|
|
1,959,306
|
|
|
|
11,095,444
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(12,934
|
)
|
|
|
(114,293
|
)
|
|
|
27,595
|
|
|
|
1,959,306
|
|
|
|
11,082,510
|
|
|
See accompanying Notes to Financial Statements.
|
|
|
|
Statements of Operations (unaudited) (continued)
|
Period from December 1, 2019 through August 31, 2020
|
|
|
|
Tortoise Energy
Infrastructure
Corp.(1)
|
|
Tortoise
Midstream Energy
Fund, Inc.
|
Realized and Unrealized Loss on Investments and Foreign Currency
|
|
|
|
|
|
|
|
|
Net realized loss on investments in unaffiliated securities
|
|
$
|
(744,195,165
|
)
|
|
$
|
(566,095,480
|
)
|
Net realized gain (loss) on options
|
|
|
64,521
|
|
|
|
(252,868
|
)
|
Net realized loss on interest rate swap settlements
|
|
|
(95,203
|
)
|
|
|
—
|
|
Net realized loss on currency futures
|
|
|
—
|
|
|
|
—
|
|
Net realized gain (loss) on foreign currency and translation of other assets
and liabilities denominated in foreign currency
|
|
|
804
|
|
|
|
—
|
|
Net realized loss, before income taxes
|
|
|
(744,225,043
|
)
|
|
|
(566,348,348
|
)
|
Current tax expense
|
|
|
(2,891,325
|
)
|
|
|
(30,016,378
|
)
|
Deferred tax benefit
|
|
|
123,777,222
|
|
|
|
42,773,078
|
|
Income tax benefit, net
|
|
|
120,885,897
|
|
|
|
12,756,700
|
|
Net realized loss
|
|
|
(623,339,146
|
)
|
|
|
(553,591,648
|
)
|
Net unrealized appreciation (depreciation) of investments in unaffiliated securities
|
|
|
42,124,596
|
|
|
|
69,324,174
|
|
Net unrealized depreciation of investments in affiliated securities
|
|
|
(3,014,690
|
)
|
|
|
—
|
|
Net unrealized depreciation of options
|
|
|
(63,848
|
)
|
|
|
(69,929
|
)
|
Net unrealized appreciation (depreciation) of interest rate swap contracts
|
|
|
(83,687
|
)
|
|
|
—
|
|
Net unrealized appreciation of forward currency contracts
|
|
|
—
|
|
|
|
—
|
|
Net unrealized appreciation of other assets and liabilities due to foreign currency translation
|
|
|
362
|
|
|
|
302
|
|
Net unrealized appreciation (depreciation), before income taxes
|
|
|
38,962,733
|
|
|
|
69,254,547
|
|
Deferred tax expense
|
|
|
(9,091,961
|
)
|
|
|
(15,961,235
|
)
|
Net unrealized appreciation (depreciation)
|
|
|
29,870,772
|
|
|
|
53,293,312
|
|
Net Realized and Unrealized Loss
|
|
|
(593,468,374
|
)
|
|
|
(500,298,336
|
)
|
Net Decrease in Net Assets Applicable to Common Stockholders Resulting from Operations
|
|
$
|
(604,341,813
|
)
|
|
$
|
(507,603,685
|
)
|
(1)
|
Consolidated Statement of Operations (See Note 13 to the financial statements for further disclosure).
|
(2)
|
Return of Capital may be in excess of current year distributions due to prior year adjustments. See Note 2 to the financial statements for further disclosure.
|
See accompanying Notes to Financial Statements.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
Tortoise Pipeline
& Energy
Fund, Inc.
|
|
Tortoise Energy
Independence
Fund, Inc.
|
|
Tortoise Power
and Energy
Infrastructure
Fund, Inc.
|
|
Tortoise
Essential Assets
Income Term
Fund(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(95,956,745
|
)
|
|
$
|
(48,703,991
|
)
|
|
$
|
(26,250,465
|
)
|
|
$
|
(43,591,217
|
)
|
|
|
204,023
|
|
|
|
1,449,792
|
|
|
|
—
|
|
|
|
986,278
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(18,276
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(534,591
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(59,254
|
)
|
|
|
925
|
|
|
|
380
|
|
|
|
281,785
|
|
|
|
(95,811,976
|
)
|
|
|
(47,253,274
|
)
|
|
|
(26,268,361
|
)
|
|
|
(42,857,745
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(95,811,976
|
)
|
|
|
(47,253,274
|
)
|
|
|
(26,268,361
|
)
|
|
|
(42,857,745
|
)
|
|
|
16,920,323
|
|
|
|
16,643,820
|
|
|
|
(7,227,056
|
)
|
|
|
20,218,580
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8,049,067
|
)
|
|
|
(142,140
|
)
|
|
|
(354,660
|
)
|
|
|
—
|
|
|
|
(116,963
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
8,589
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
320,491
|
|
|
|
393
|
|
|
|
403
|
|
|
|
515
|
|
|
|
36,561
|
|
|
|
16,778,576
|
|
|
|
16,289,563
|
|
|
|
(7,217,952
|
)
|
|
|
12,409,602
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16,778,576
|
|
|
|
16,289,563
|
|
|
|
(7,217,952
|
)
|
|
|
12,409,602
|
|
|
|
(79,033,400
|
)
|
|
|
(30,963,711
|
)
|
|
|
(33,486,313
|
)
|
|
|
(30,448,143
|
)
|
|
$
|
(79,147,693
|
)
|
|
$
|
(30,936,116
|
)
|
|
$
|
(31,527,007
|
)
|
|
$
|
(19,365,633
|
)
|
|
See accompanying Notes to Financial Statements.
|
|
|
|
Statements of Changes in Net Assets
|
|
|
|
|
Tortoise Energy Infrastructure Corp.(1)
|
|
|
Period from
December 1, 2019
through
August 31, 2020
|
|
Year Ended
November 30,
2019
|
|
|
(unaudited)
|
|
|
Operations
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
$
|
(10,873,439
|
)
|
|
$
|
(16,044,174
|
)
|
Net realized gain (loss)
|
|
|
(623,339,146
|
)
|
|
|
29,052,706
|
|
Net unrealized appreciation (depreciation)
|
|
|
29,870,772
|
|
|
|
(204,418,240
|
)
|
Net decrease in net assets applicable to common stockholders resulting from operations
|
|
|
(604,341,813
|
)
|
|
|
(191,409,708
|
)
|
Distributions to Common Stockholders
|
|
|
|
|
|
|
|
|
From distributable earnings
|
|
|
—
|
|
|
|
—
|
|
From return of capital
|
|
|
(25,203,702
|
)
|
|
|
(140,587,568
|
)
|
Total distributions to common stockholders
|
|
|
(25,203,702
|
)
|
|
|
(140,587,568
|
)
|
Capital Stock Transactions
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common shares through offerings
|
|
|
—
|
|
|
|
—
|
|
Repurchases of common stock
|
|
|
(6,345,952
|
)
|
|
|
—
|
|
Underwriting discounts and offering expenses associated with the issuance of common stock
|
|
|
—
|
|
|
|
(6,953
|
)
|
Issuance of common shares from reinvestment of distributions to stockholders
|
|
|
—
|
|
|
|
1,990,050
|
|
Net increase (decrease) in net assets applicable to common stockholders
from capital stock transactions
|
|
|
(6,345,952
|
)
|
|
|
1,983,097
|
|
Total increase (decrease) in net assets applicable to common stockholders
|
|
|
(635,891,467
|
)
|
|
|
(330,014,179
|
)
|
Net Assets
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
930,285,525
|
|
|
|
1,260,299,704
|
|
End of period
|
|
$
|
294,394,058
|
|
|
$
|
930,285,525
|
|
Transactions in common shares
|
|
|
|
|
|
|
|
|
Shares outstanding at beginning of period
|
|
|
53,732,462
|
|
|
|
53,635,054
|
|
Net share reduction due to reverse stock splits (See Note 14)
|
|
|
(40,299,345
|
)
|
|
|
—
|
|
Shares repurchased (See Note 15)
|
|
|
(361,034
|
)
|
|
|
—
|
|
Shares issued through offerings
|
|
|
—
|
|
|
|
—
|
|
Shares issued through reinvestment of distributions
|
|
|
—
|
|
|
|
97,408
|
|
Shares outstanding at end of period
|
|
|
13,072,083
|
|
|
|
53,732,462
|
|
(1)
|
Consolidated Statement of Changes in Net Assets (See Note 13 to the financial statements for further disclosure).
|
(2)
|
Commencement of operations.
|
See accompanying Notes to Financial Statements.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
Tortoise Midstream Energy Fund, Inc.
|
|
Tortoise Pipeline & Energy Fund, Inc.
|
|
Period from
December 1, 2019
through
August 31, 2020
|
|
Year Ended
November 30,
2019
|
|
Period from
December 1, 2019
through
August 31, 2020
|
|
Year Ended
November 30,
2019
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(7,305,349
|
)
|
|
$
|
(17,549,941
|
)
|
|
$
|
(114,293
|
)
|
|
$
|
(1,235,742
|
)
|
|
|
(553,591,648
|
)
|
|
|
(35,175,815
|
)
|
|
|
(95,811,976
|
)
|
|
|
(15,534,668
|
)
|
|
|
53,293,312
|
|
|
|
(87,752,183
|
)
|
|
|
16,778,576
|
|
|
|
(2,671,988
|
)
|
|
|
(507,603,685
|
)
|
|
|
(140,477,939
|
)
|
|
|
(79,147,693
|
)
|
|
|
(19,442,398
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
(16,806,063
|
)
|
|
|
(106,822,149
|
)
|
|
|
(3,652,948
|
)
|
|
|
(13,872,732
|
)
|
|
|
(16,806,063
|
)
|
|
|
(106,822,149
|
)
|
|
|
(3,652,948
|
)
|
|
|
(13,872,732
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,895,522
|
)
|
|
|
—
|
|
|
|
(450,066
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(24,715
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,895,522
|
)
|
|
|
(24,715
|
)
|
|
|
(450,066
|
)
|
|
|
—
|
|
|
|
(526,305,270
|
)
|
|
|
(247,324,803
|
)
|
|
|
(83,250,707
|
)
|
|
|
(33,315,130
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
667,708,171
|
|
|
|
915,032,974
|
|
|
|
129,886,561
|
|
|
|
163,201,691
|
|
|
$
|
141,402,901
|
|
|
$
|
667,708,171
|
|
|
$
|
46,635,854
|
|
|
$
|
129,886,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63,208,377
|
|
|
|
63,208,377
|
|
|
|
10,016,413
|
|
|
|
10,016,413
|
|
|
|
(56,887,538
|
)
|
|
|
—
|
|
|
|
(7,512,309
|
)
|
|
|
—
|
|
|
|
(107,272
|
)
|
|
|
—
|
|
|
|
(31,262
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,213,567
|
|
|
|
63,208,377
|
|
|
|
2,472,842
|
|
|
|
10,016,413
|
|
|
See accompanying Notes to Financial Statements.
|
|
|
|
Statements of Changes in Net Assets (continued)
|
|
|
|
|
Tortoise Energy Independence Fund, Inc.
|
|
|
Period from
December 1, 2019
through
August 31, 2020
|
|
Year Ended
November 30,
2019
|
|
|
|
(unaudited)
|
|
|
|
|
|
Operations
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
$
|
27,595
|
|
|
$
|
(1,490,748
|
)
|
Net realized gain (loss)
|
|
|
(47,253,274
|
)
|
|
|
(83,448,293
|
)
|
Net unrealized appreciation (depreciation)
|
|
|
16,289,563
|
|
|
|
29,302,069
|
|
Net decrease in net assets applicable to common stockholders resulting from operations
|
|
|
(30,936,116
|
)
|
|
|
(55,636,972
|
)
|
Distributions to Common Stockholders
|
|
|
|
|
|
|
|
|
From distributable earnings
|
|
|
—
|
|
|
|
—
|
|
From return of capital
|
|
|
(1,476,797
|
)
|
|
|
(15,828,822
|
)
|
Total distributions to common stockholders
|
|
|
(1,476,797
|
)
|
|
|
(15,828,822
|
)
|
Capital Stock Transactions
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common shares through offerings
|
|
|
—
|
|
|
|
—
|
|
Repurchases of common stock
|
|
|
—
|
|
|
|
—
|
|
Underwriting discounts and offering expenses associated with the issuance of common stock
|
|
|
—
|
|
|
|
—
|
|
Issuance of common shares from reinvestment of distributions to stockholders
|
|
|
—
|
|
|
|
527,895
|
|
Net increase (decrease) in net assets applicable to common stockholders
from capital stock transactions
|
|
|
—
|
|
|
|
527,895
|
|
Total increase (decrease) in net assets applicable to common stockholders
|
|
|
(32,412,913
|
)
|
|
|
(70,937,899
|
)
|
Net Assets
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
61,550,335
|
|
|
|
132,488,234
|
|
End of period
|
|
$
|
29,137,422
|
|
|
$
|
61,550,335
|
|
Transactions in common shares
|
|
|
|
|
|
|
|
|
Shares outstanding at beginning of period
|
|
|
14,767,968
|
|
|
|
14,696,260
|
|
Net share reduction due to reverse stock splits (See Note 14)
|
|
|
(12,921,971
|
)
|
|
|
—
|
|
Shares repurchased (See Note 15)
|
|
|
—
|
|
|
|
—
|
|
Shares issued through offerings
|
|
|
—
|
|
|
|
—
|
|
Shares issued through reinvestment of distributions
|
|
|
—
|
|
|
|
71,708
|
|
Shares outstanding at end of period
|
|
|
1,845,997
|
|
|
|
14,767,968
|
|
(1)
|
Consolidated Statement of Changes in Net Assets (See Note 13 to the financial statements for further disclosure).
|
(2)
|
Commencement of operations.
|
See accompanying Notes to Financial Statements.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
Tortoise Power and Energy
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure Fund, Inc.
|
|
|
Tortoise Essential Assets Income Term Fund(1)
|
|
Period from
|
|
|
|
|
|
Period from
|
|
Period from
|
|
December 1, 2019
|
|
Year Ended
|
|
December 1, 2019
|
|
March 29, 2019(2)
|
|
through
|
|
November 30,
|
|
through
|
|
through
|
|
August 31, 2020
|
|
2019
|
|
August 31, 2020
|
|
November 30, 2019
|
|
(unaudited)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,959,306
|
|
|
$
|
2,722,077
|
|
|
$
|
11,082,510
|
|
|
$
|
4,144,381
|
|
|
|
(26,268,361
|
)
|
|
|
4,821,830
|
|
|
|
(42,857,745
|
)
|
|
|
(10,438,827
|
)
|
|
|
(7,217,952
|
)
|
|
|
(11,426,405
|
)
|
|
|
12,409,602
|
|
|
|
(15,820,905
|
)
|
|
|
(31,527,007
|
)
|
|
|
(3,882,498
|
)
|
|
|
(19,365,633
|
)
|
|
|
(22,115,351
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,391,371
|
)
|
|
|
(9,729,252
|
)
|
|
|
(8,747,075
|
)
|
|
|
(4,545,707
|
)
|
|
|
(1,864,829
|
)
|
|
|
(697,748
|
)
|
|
|
(3,071,151
|
)
|
|
|
(5,700,804
|
)
|
|
|
(6,256,200
|
)
|
|
|
(10,427,000
|
)
|
|
|
(11,818,226
|
)
|
|
|
(10,246,511
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
269,722,540
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
269,722,540
|
|
|
|
(37,783,207
|
)
|
|
|
(14,309,498
|
)
|
|
|
(31,183,859
|
)
|
|
|
237,360,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
123,014,930
|
|
|
|
137,324,428
|
|
|
|
237,460,678
|
|
|
|
100,000
|
|
|
$
|
85,231,723
|
|
|
$
|
123,014,930
|
|
|
$
|
206,276,819
|
|
|
$
|
237,460,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,951,333
|
|
|
|
6,951,333
|
|
|
|
13,491,127
|
|
|
|
5,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,486,127
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,951,333
|
|
|
|
6,951,333
|
|
|
|
13,491,127
|
|
|
|
13,491,127
|
|
|
See accompanying Notes to Financial Statements.
|
|
|
|
Statements of Cash Flows (unaudited)
|
Period from December 1, 2019 through August 31, 2020
|
|
|
|
|
|
|
|
|
|
|
Tortoise Energy
|
|
|
|
|
|
|
Infrastructure
|
|
Tortoise Midstream
|
|
|
Corp.(1)
|
|
Energy Fund, Inc.
|
Cash Flows From Operating Activities
|
|
|
|
|
|
|
|
|
Dividends, distributions and interest received from investments
|
|
$
|
61,429,124
|
|
|
$
|
41,171,536
|
|
Purchases of long-term investments
|
|
|
(233,347,049
|
)
|
|
|
(164,752,764
|
)
|
Proceeds from sales of long-term investments
|
|
|
776,856,644
|
|
|
|
591,573,609
|
|
Sales (purchases) of short-term investments, net
|
|
|
(30,591,177
|
)
|
|
|
(7,967,104
|
)
|
Proceeds from litigation settlement
|
|
|
1,834
|
|
|
|
—
|
|
Proceeds from funds held in escrow
|
|
|
814,669
|
|
|
|
—
|
|
Call options written, net
|
|
|
(66,903
|
)
|
|
|
(29,401
|
)
|
Payments on interest rate swap contracts, net
|
|
|
(95,203
|
)
|
|
|
—
|
|
Payments on forward currency contracts, net
|
|
|
—
|
|
|
|
—
|
|
Interest received on securities sold, net
|
|
|
—
|
|
|
|
—
|
|
Interest expense paid
|
|
|
(10,431,181
|
)
|
|
|
(6,932,849
|
)
|
Distributions to mandatory redeemable preferred stockholders
|
|
|
(6,220,961
|
)
|
|
|
(3,339,746
|
)
|
Other leverage expenses paid
|
|
|
(148,355
|
)
|
|
|
(37,326
|
)
|
Income taxes paid
|
|
|
(14,359,806
|
)
|
|
|
(8,278,157
|
)
|
Premium on redemption of senior notes
|
|
|
(2,332,000
|
)
|
|
|
(2,888,000
|
)
|
Premium on redemption of mandatory redeemable preferred stock
|
|
|
(1,327,000
|
)
|
|
|
(1,193,000
|
)
|
Operating expenses paid
|
|
|
(9,799,649
|
)
|
|
|
(6,925,213
|
)
|
Net cash provided by operating activities
|
|
|
530,382,987
|
|
|
|
430,401,585
|
|
Cash Flows From Financing Activities
|
|
|
|
|
|
|
|
|
Payments on credit facilities, net
|
|
|
(93,900,000
|
)
|
|
|
(53,600,000
|
)
|
Redemption of mandatory redeemable preferred stock
|
|
|
(132,700,000
|
)
|
|
|
(119,300,000
|
)
|
Repayment of senior notes
|
|
|
(272,233,333
|
)
|
|
|
(238,800,000
|
)
|
Redemption of common stock
|
|
|
(6,345,952
|
)
|
|
|
(1,895,522
|
)
|
Distributions paid to common stockholders
|
|
|
(25,203,702
|
)
|
|
|
(16,806,063
|
)
|
Net cash used in financing activities
|
|
|
(530,382,987
|
)
|
|
|
(430,401,585
|
)
|
Net change in cash
|
|
|
—
|
|
|
|
—
|
|
Cash — beginning of period
|
|
|
—
|
|
|
|
—
|
|
Cash — end of period
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Consolidated Statement of Cash Flows (See Note 13 to the financial statements for further disclosure).
|
See accompanying Notes to Financial Statements.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Tortoise Power
|
|
Tortoise
|
|
Tortoise Pipeline
|
|
Tortoise Energy
|
|
and Energy
|
|
Essential Assets
|
|
& Energy
|
|
Independence
|
|
Infrastructure
|
|
Income Term
|
|
Fund, Inc.
|
|
Fund, Inc.
|
|
Fund, Inc.
|
|
Fund(1)
|
|
|
|
|
|
|
|
|
|
$
|
6,585,499
|
|
|
$
|
1,592,200
|
|
|
$
|
7,433,886
|
|
|
$
|
16,786,863
|
|
|
|
(34,076,375
|
)
|
|
|
(33,403,427
|
)
|
|
|
(33,640,306
|
)
|
|
|
(130,599,437
|
)
|
|
|
79,667,391
|
|
|
|
55,534,592
|
|
|
|
62,547,799
|
|
|
|
132,609,483
|
|
|
|
(7,318,392
|
)
|
|
|
181,569
|
|
|
|
62,482
|
|
|
|
(2,465,349
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(38,578
|
)
|
|
|
915,534
|
|
|
|
—
|
|
|
|
390,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(18,276
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(534,591
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
570,204
|
|
|
|
—
|
|
|
|
(1,104,640
|
)
|
|
|
(370,534
|
)
|
|
|
(917,740
|
)
|
|
|
(448,492
|
)
|
|
|
(513,715
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(96,000
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(99,000
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,603,585
|
)
|
|
|
(873,137
|
)
|
|
|
(1,793,672
|
)
|
|
|
(2,698,692
|
)
|
|
|
41,402,605
|
|
|
|
23,576,797
|
|
|
|
34,244,377
|
|
|
|
13,039,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,800,000
|
)
|
|
|
(22,100,000
|
)
|
|
|
(28,000,000
|
)
|
|
|
(1,500,000
|
)
|
|
|
(9,900,000
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(15,600,000
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(450,066
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,652,539
|
)
|
|
|
(1,476,797
|
)
|
|
|
(6,256,200
|
)
|
|
|
(11,818,227
|
)
|
|
|
(41,402,605
|
)
|
|
|
(23,576,797
|
)
|
|
|
(34,256,200
|
)
|
|
|
(13,318,227
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(11,823
|
)
|
|
|
(278,442
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
12,623
|
|
|
|
378,442
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
800
|
|
|
$
|
100,000
|
|
|
See accompanying Notes to Financial Statements.
|
|
|
|
Statements of Cash Flows (unaudited) (continued)
|
Period from December 1, 2019 through August 31, 2020
|
|
|
|
|
|
|
|
|
Tortoise Energy
|
|
Tortoise
|
|
|
Infrastructure
|
|
Midstream Energy
|
|
|
Corp.(1)
|
|
Fund, Inc.
|
Reconciliation of net decrease in net assets applicable to common stockholders
|
|
|
|
|
|
|
|
|
resulting from operations to net cash provided by operating activities
|
|
|
|
|
|
|
|
|
Net decrease in net assets applicable to common stockholders resulting from operations
|
|
$
|
(604,341,813
|
)
|
|
$
|
(507,603,685
|
)
|
Adjustments to reconcile net decrease in net assets applicable to common stockholders
|
|
|
|
|
|
|
|
|
resulting from operations to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Purchases of long-term investments
|
|
|
(233,347,049
|
)
|
|
|
(164,752,764
|
)
|
Proceeds from sales of long-term investments
|
|
|
774,511,719
|
|
|
|
589,398,317
|
|
Sales (purchases) of short-term investments, net
|
|
|
(30,591,177
|
)
|
|
|
(7,967,104
|
)
|
Proceeds from litigation settlement
|
|
|
1,834
|
|
|
|
—
|
|
Call options written, net
|
|
|
(66,903
|
)
|
|
|
(29,401
|
)
|
Return of capital on distributions received
|
|
|
52,502,189
|
|
|
|
34,636,258
|
|
Deferred tax benefit
|
|
|
(116,470,157
|
)
|
|
|
(27,892,485
|
)
|
Net unrealized (appreciation) depreciation
|
|
|
(38,962,733
|
)
|
|
|
(69,254,547
|
)
|
Amortization (accretion) of market premium (discount), net
|
|
|
(254,923
|
)
|
|
|
(190,065
|
)
|
Net realized loss
|
|
|
744,130,644
|
|
|
|
566,348,348
|
|
Amortization of debt issuance costs
|
|
|
317,020
|
|
|
|
252,421
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
(Increase) decrease in dividends, distributions and interest receivable from investments
|
|
|
(61,008
|
)
|
|
|
(1,642,140
|
)
|
(Increase) decrease in escrow receivable
|
|
|
814,669
|
|
|
|
—
|
|
Decrease in current tax asset
|
|
|
11,138,214
|
|
|
|
2,319,733
|
|
Increase in income tax receivable
|
|
|
(52,052,354
|
)
|
|
|
—
|
|
(Increase) decrease in receivable for investments sold
|
|
|
2,344,925
|
|
|
|
2,175,292
|
|
Decrease in receivable for premiums on options written
|
|
|
—
|
|
|
|
—
|
|
(Increase) decrease in prepaid expenses and other assets
|
|
|
29,658
|
|
|
|
(41,284
|
)
|
Increase in payable for investments purchased
|
|
|
—
|
|
|
|
—
|
|
Decrease in payable to Adviser, net of fees waived
|
|
|
(2,329,563
|
)
|
|
|
(1,738,061
|
)
|
Increase (decrease) in current tax liability
|
|
|
29,536,506
|
|
|
|
19,418,791
|
|
Decrease in accrued expenses and other liabilities
|
|
|
(6,466,711
|
)
|
|
|
(3,036,039
|
)
|
Total adjustments
|
|
|
1,134,724,800
|
|
|
|
938,005,270
|
|
Net cash provided by operating activities
|
|
$
|
530,382,987
|
|
|
$
|
430,401,585
|
|
(1)
|
Consolidated Statement of Cash Flows (See Note 13 to the financial statements for further disclosure).
|
See accompanying Notes to Financial Statements.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Tortoise Power
|
|
Tortoise
|
|
Tortoise Pipeline
|
|
Tortoise Energy
|
|
and Energy
|
|
Essential Assets
|
|
& Energy
|
|
Independence
|
|
Infrastructure
|
|
Income Term
|
|
Fund, Inc.
|
|
Fund, Inc.
|
|
Fund, Inc.
|
|
Fund(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(79,147,693
|
)
|
|
$
|
(30,936,116
|
)
|
|
$
|
(31,527,007
|
)
|
|
$
|
(19,365,633
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(34,076,375
|
)
|
|
|
(33,403,427
|
)
|
|
|
(33,640,306
|
)
|
|
|
(129,658,576
|
)
|
|
|
79,667,391
|
|
|
|
55,534,592
|
|
|
|
62,547,799
|
|
|
|
132,609,483
|
|
|
|
(7,318,392
|
)
|
|
|
181,569
|
|
|
|
62,482
|
|
|
|
(2,465,349
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(38,578
|
)
|
|
|
915,534
|
|
|
|
—
|
|
|
|
323,265
|
|
|
|
4,236,600
|
|
|
|
487,045
|
|
|
|
2,972,277
|
|
|
|
3,320,914
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12,934
|
|
|
|
(16,778,576
|
)
|
|
|
(16,289,563
|
)
|
|
|
7,217,952
|
|
|
|
(12,409,602
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
214,144
|
|
|
|
(316,933
|
)
|
|
|
95,811,976
|
|
|
|
47,253,274
|
|
|
|
26,250,085
|
|
|
|
42,323,154
|
|
|
|
35,106
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(426,892
|
)
|
|
|
79,587
|
|
|
|
394,632
|
|
|
|
(414,352
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
66,735
|
|
|
|
(5,339
|
)
|
|
|
(11,066
|
)
|
|
|
(10,857
|
)
|
|
|
(28,628
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(940,861
|
)
|
|
|
(237,188
|
)
|
|
|
(110,613
|
)
|
|
|
(117,040
|
)
|
|
|
31,586
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(319,435
|
)
|
|
|
(124,019
|
)
|
|
|
(119,784
|
)
|
|
|
(48,352
|
)
|
|
|
120,550,298
|
|
|
|
54,512,913
|
|
|
|
65,771,384
|
|
|
|
32,405,418
|
|
|
$
|
41,402,605
|
|
|
$
|
23,576,797
|
|
|
$
|
34,244,377
|
|
|
$
|
13,039,785
|
|
|
See accompanying Notes to Financial Statements.
|
|
Period from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 1, 2019
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
through
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
|
August 31, 2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, beginning of period
|
|
$
|
69.24
|
|
|
$
|
94.00
|
|
|
$
|
95.72
|
|
|
$
|
115.32
|
|
|
$
|
117.12
|
|
|
$
|
197.36
|
|
Income (Loss) from Investment Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss(3)
|
|
|
(0.30
|
)
|
|
|
(1.20
|
)
|
|
|
(1.96
|
)
|
|
|
(2.60
|
)
|
|
|
(3.12
|
)
|
|
|
(2.48
|
)
|
Net realized and unrealized gain (loss)
|
|
|
(44.54
|
)
|
|
|
(13.08
|
)
|
|
|
10.36
|
|
|
|
(6.56
|
)
|
|
|
11.76
|
|
|
|
(67.40
|
)
|
Total income (loss) from investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations
|
|
|
(44.84
|
)
|
|
|
(14.28
|
)
|
|
|
8.40
|
|
|
|
(9.16
|
)
|
|
|
8.64
|
|
|
|
(69.88
|
)
|
Distributions to Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From return of capital
|
|
|
(1.88
|
)
|
|
|
(10.48
|
)
|
|
|
(10.48
|
)
|
|
|
(10.48
|
)
|
|
|
(10.48
|
)
|
|
|
(10.36
|
)
|
Capital Stock Transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums less underwriting discounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and offering costs on issuance of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common stock(4)
|
|
|
—
|
|
|
|
(0.00
|
)
|
|
|
0.36
|
|
|
|
0.04
|
|
|
|
0.04
|
|
|
|
(0.00
|
)
|
Net Asset Value, end of period
|
|
$
|
22.52
|
|
|
$
|
69.24
|
|
|
$
|
94.00
|
|
|
$
|
95.72
|
|
|
$
|
115.32
|
|
|
$
|
117.12
|
|
Per common share market value,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period
|
|
$
|
16.50
|
|
|
$
|
67.28
|
|
|
$
|
90.36
|
|
|
$
|
103.44
|
|
|
$
|
122.52
|
|
|
$
|
106.28
|
|
Total investment return based on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
market value(5)(6)
|
|
|
(74.27
|
)%
|
|
|
(15.46
|
)%
|
|
|
(3.42
|
)%
|
|
|
(7.49
|
)%
|
|
|
26.21
|
%
|
|
|
(37.86
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data and Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders, end of period (000’s)
|
|
$
|
294,394
|
|
|
$
|
930,286
|
|
|
$
|
1,260,300
|
|
|
$
|
1,181,528
|
|
|
$
|
1,412,274
|
|
|
$
|
1,405,733
|
|
Average net assets (000’s)
|
|
$
|
532,362
|
|
|
$
|
1,203,943
|
|
|
$
|
1,388,683
|
|
|
$
|
1,406,724
|
|
|
$
|
1,345,764
|
|
|
$
|
1,974,038
|
|
Ratio of Expenses to Average Net Assets(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory fees
|
|
|
1.61
|
%
|
|
|
1.62
|
%
|
|
|
1.58
|
%
|
|
|
1.74
|
%
|
|
|
1.74
|
%
|
|
|
1.76
|
%
|
Other operating expenses
|
|
|
0.25
|
|
|
|
0.14
|
|
|
|
0.13
|
|
|
|
0.12
|
|
|
|
0.12
|
|
|
|
0.10
|
|
Total operating expenses,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before fee waiver
|
|
|
1.86
|
|
|
|
1.76
|
|
|
|
1.71
|
|
|
|
1.86
|
|
|
|
1.86
|
|
|
|
1.86
|
|
Fee waiver(8)
|
|
|
—
|
|
|
|
(0.00
|
)
|
|
|
(0.04
|
)
|
|
|
(0.00
|
)
|
|
|
(0.01
|
)
|
|
|
—
|
|
Total operating expenses
|
|
|
1.86
|
|
|
|
1.76
|
|
|
|
1.67
|
|
|
|
1.86
|
|
|
|
1.85
|
|
|
|
1.86
|
|
Leverage expenses
|
|
|
3.61
|
|
|
|
2.15
|
|
|
|
1.87
|
|
|
|
1.78
|
|
|
|
2.29
|
|
|
|
1.75
|
|
Income tax expense (benefit)(9)
|
|
|
(28.39
|
)
|
|
|
(5.49
|
)
|
|
|
(11.02
|
)
|
|
|
(5.28
|
)
|
|
|
4.64
|
|
|
|
(24.50
|
)
|
Total expenses
|
|
|
(22.92
|
)%
|
|
|
(1.58
|
)%
|
|
|
(7.48
|
)%
|
|
|
(1.64
|
)%
|
|
|
8.78
|
%
|
|
|
(20.89
|
)%
|
See accompanying Notes to Financial Statements.
|
|
|
|
52
|
Tortoise
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
|
Period from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 1, 2019
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
through
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
|
August 31, 2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of net investment loss to average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net assets before fee waiver(7)
|
|
|
(2.72
|
)%
|
|
|
(1.33
|
)%
|
|
|
(1.89
|
)%
|
|
|
(2.27
|
)%
|
|
|
(2.83
|
)%
|
|
|
(1.50
|
)%
|
Ratio of net investment loss to average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net assets after fee waiver(7)
|
|
|
(2.72
|
)%
|
|
|
(1.33
|
)%
|
|
|
(1.85
|
)%
|
|
|
(2.27
|
)%
|
|
|
(2.82
|
)%
|
|
|
(1.50
|
)%
|
Portfolio turnover rate(5)
|
|
|
26.84
|
%
|
|
|
26.35
|
%
|
|
|
17.96
|
%
|
|
|
20.38
|
%
|
|
|
24.23
|
%
|
|
|
12.94
|
%
|
Credit facility borrowings,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000’s)
|
|
$
|
—
|
|
|
$
|
93,900
|
|
|
$
|
107,100
|
|
|
$
|
112,700
|
|
|
$
|
109,300
|
|
|
$
|
66,000
|
|
Senior notes, end of period (000’s)
|
|
$
|
92,767
|
|
|
$
|
365,000
|
|
|
$
|
380,000
|
|
|
$
|
412,500
|
|
|
$
|
442,500
|
|
|
$
|
545,000
|
|
Preferred stock, end of period (000’s)
|
|
$
|
32,300
|
|
|
$
|
165,000
|
|
|
$
|
165,000
|
|
|
$
|
165,000
|
|
|
$
|
165,000
|
|
|
$
|
295,000
|
|
Per common share amount of senior
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
notes outstanding, end of period
|
|
$
|
7.10
|
|
|
$
|
27.17
|
|
|
$
|
28.34
|
|
|
$
|
33.41
|
|
|
$
|
36.12
|
|
|
$
|
45.40
|
|
Per common share amount of net assets,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding senior notes, end of period
|
|
$
|
29.62
|
|
|
$
|
96.41
|
|
|
$
|
122.34
|
|
|
$
|
129.13
|
|
|
$
|
151.44
|
|
|
$
|
162.52
|
|
Asset coverage, per $1,000 of principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amount of senior notes and credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
facility borrowings(10)
|
|
$
|
4,522
|
|
|
$
|
3,387
|
|
|
$
|
3,926
|
|
|
$
|
3,564
|
|
|
$
|
3,858
|
|
|
$
|
3,784
|
|
Asset coverage ratio of senior notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and credit facility borrowings(10)
|
|
|
452
|
%
|
|
|
339
|
%
|
|
|
393
|
%
|
|
|
356
|
%
|
|
|
386
|
%
|
|
|
378
|
%
|
Asset coverage, per $10 liquidation value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per share of mandatory redeemable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
preferred stock(11)
|
|
$
|
34
|
|
|
$
|
25
|
|
|
$
|
29
|
|
|
$
|
27
|
|
|
$
|
30
|
|
|
$
|
26
|
|
Asset coverage ratio of preferred stock(11)
|
|
|
335
|
%
|
|
|
249
|
%
|
|
|
293
|
%
|
|
|
271
|
%
|
|
|
297
|
%
|
|
|
255
|
%
|
(1)
|
Information presented relates to a share of common stock outstanding for the entire period.
|
(2)
|
During the period from December 1, 2019 through August 31, 2020, the Fund effected the following reverse stock split: May 1, 2020, 1 for 4. All historical per share information has been retroactively adjusted to reflect this reverse stock split.
|
(3)
|
The per common share data for the years ended November 30, 2019, 2018, 2017, 2016, and 2015 do not reflect the change in estimate of investment income and return of capital, for the respective year. See Note 2C to the financial statements for further disclosure.
|
(4)
|
Represents underwriting and offering costs of less than $0.01 for the year ended November 30, 2019. Represents premium on shelf offerings of $0.40 per share, less the underwriting and offering costs of $0.04 per share, for the year ended November 30, 2018. Represents the premium on the shelf offerings of $0.04 per share, less the underwriting and offering costs of less than $0.01 per share for the year ended November 30, 2017. Represents the premium on the shelf offerings of $0.04 per share, less the underwriting and offering costs of less than $0.01 per share for the year ended November 30, 2016. Represents underwriting and offering costs of less than $0.01 per share for the year ended November 30, 2015.
|
(5)
|
Not annualized for periods less than one full year.
|
(6)
|
Total investment return is calculated assuming a purchase of common stock at the beginning of the period and a sale at the closing price on the last day of the period reported (excluding brokerage commissions). The calculation also assumes reinvestment of distributions at actual prices pursuant to TYG’s dividend reinvestment plan.
|
(7)
|
Annualized for periods less than one full year.
|
(8)
|
Less than 0.01% for the years ended November 30, 2019 and 2017.
|
(9)
|
For the period from December 1, 2019 through August 31, 2020, TYG accrued $116,472,157 for net deferred income tax benefit and $2,891,325 for current income tax expense. For the year ended November 30, 2019, TYG accrued $73,090,370 for net deferred income tax benefit and $7,034,755 for current income tax expense. For the year ended November 30, 2018, TYG accrued $152,516,725 for net deferred income tax benefit, which included a deferred tax benefit of $125,271,378 due to the impact from the federal tax rate reduction related to the Tax Cuts and Jobs Act. For the year ended November 30, 2017, TYG accrued $35,365,364 for current income tax expense and $109,662,030 for net deferred income tax benefit. For the year ended November 30, 2016, TYG accrued $57,075,786 for current income tax expense and $5,303,392 for net deferred income tax expense. For the year ended November 30, 2015, TYG accrued $66,785,732 for net current income tax expense and $550,449,662 for net deferred income tax benefit.
|
(10)
|
Represents value of total assets less all liabilities and indebtedness not represented by senior notes, credit facility borrowings and preferred stock at the end of the year divided by senior notes and credit facility borrowings outstanding at the end of the period.
|
(11)
|
Represents value of total assets less all liabilities and indebtedness not represented by senior notes, credit facility borrowings and preferred stock at the end of the year divided by senior notes, credit facility borrowings and preferred stock outstanding at the end of the period.
|
See accompanying Notes to Financial Statements.
|
|
|
|
Tortoise
|
53
|
|
|
Period from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 1, 2019
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
through
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
|
August 31, 2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, beginning of period
|
|
$
|
105.60
|
|
|
$
|
144.80
|
|
|
$
|
159.60
|
|
|
$
|
192.20
|
|
|
$
|
186.50
|
|
|
$
|
298.30
|
|
Income (Loss) from Investment Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss(3)
|
|
|
(0.19
|
)
|
|
|
(2.80
|
)
|
|
|
(4.30
|
)
|
|
|
(4.20
|
)
|
|
|
(4.60
|
)
|
|
|
(3.20
|
)
|
Net realized and unrealized gain (loss)(3)
|
|
|
(79.99
|
)
|
|
|
(19.50
|
)
|
|
|
13.60
|
|
|
|
(11.50
|
)
|
|
|
27.20
|
|
|
|
(91.70
|
)
|
Total income (loss) from investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations
|
|
|
(80.18
|
)
|
|
|
(22.30
|
)
|
|
|
9.30
|
|
|
|
(15.70
|
)
|
|
|
22.60
|
|
|
|
(94.90
|
)
|
Distributions to Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From return of capital
|
|
|
(2.66
|
)
|
|
|
(16.90
|
)
|
|
|
(16.90
|
)
|
|
|
(16.90
|
)
|
|
|
(16.90
|
)
|
|
|
(16.90
|
)
|
Capital stock transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums less underwriting discounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and offering costs on issuance of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common stock(4)
|
|
|
—
|
|
|
|
(0.00
|
)
|
|
|
(7.19
|
)
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
(0.00
|
)
|
Net Asset Value, end of period
|
|
$
|
22.76
|
|
|
$
|
105.60
|
|
|
$
|
144.81
|
|
|
$
|
159.60
|
|
|
$
|
192.19
|
|
|
$
|
186.50
|
|
Per common share market value,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period
|
|
$
|
16.79
|
|
|
$
|
98.80
|
|
|
$
|
137.20
|
|
|
$
|
159.00
|
|
|
$
|
189.00
|
|
|
$
|
161.80
|
|
Total investment return based on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
market value(5)(6)
|
|
|
(81.95
|
)%
|
|
|
(17.63
|
)%
|
|
|
(4.10
|
)%
|
|
|
(7.67
|
)%
|
|
|
27.99
|
%
|
|
|
(37.08
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data and Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders, end of period (000’s)
|
|
$
|
141,403
|
|
|
$
|
667,708
|
|
|
$
|
915,033
|
|
|
$
|
754,085
|
|
|
$
|
904,866
|
|
|
$
|
876,409
|
|
Average net assets (000’s)
|
|
$
|
340,823
|
|
|
$
|
871,496
|
|
|
$
|
887,014
|
|
|
$
|
892,196
|
|
|
$
|
862,527
|
|
|
$
|
1,174,085
|
|
Ratio of Expenses to Average Net Assets(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory fees
|
|
|
1.65
|
%
|
|
|
1.59
|
%
|
|
|
1.54
|
%
|
|
|
1.61
|
%
|
|
|
1.56
|
%
|
|
|
1.56
|
%
|
Other operating expenses
|
|
|
0.27
|
|
|
|
0.14
|
|
|
|
0.15
|
|
|
|
0.14
|
|
|
|
0.16
|
|
|
|
0.12
|
|
Total operating expenses,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before fee waiver
|
|
|
1.92
|
|
|
|
1.73
|
|
|
|
1.69
|
|
|
|
1.75
|
|
|
|
1.72
|
|
|
|
1.68
|
|
Fee waiver
|
|
|
—
|
|
|
|
(0.03
|
)
|
|
|
(0.09
|
)
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
(0.09
|
)
|
Total operating expenses
|
|
|
1.92
|
|
|
|
1.70
|
|
|
|
1.60
|
|
|
|
1.75
|
|
|
|
1.71
|
|
|
|
1.59
|
|
Leverage expenses
|
|
|
4.62
|
|
|
|
2.34
|
|
|
|
1.98
|
|
|
|
1.89
|
|
|
|
1.95
|
|
|
|
1.42
|
|
Income tax expense (benefit)(8)
|
|
|
0.83
|
|
|
|
(4.80
|
)
|
|
|
(6.09
|
)
|
|
|
(4.33
|
)
|
|
|
7.25
|
|
|
|
(21.92
|
)
|
Total expenses
|
|
|
7.37
|
%
|
|
|
(0.76
|
)%
|
|
|
(2.51
|
)%
|
|
|
(0.69
|
)%
|
|
|
10.91
|
%
|
|
|
(18.91
|
)%
|
See accompanying Notes to Financial Statements.
|
|
|
|
54
|
Tortoise
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
|
Period from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 1, 2019
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
through
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
|
August 31, 2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of net investment loss to average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net assets before fee waiver(7)
|
|
|
(2.85
|
)%
|
|
|
(2.05
|
)%
|
|
|
(2.65
|
)%
|
|
|
(2.22
|
)%
|
|
|
(2.53
|
)%
|
|
|
(1.36
|
)%
|
Ratio of net investment loss to average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net assets after fee waiver(7)
|
|
|
(2.85
|
)%
|
|
|
(2.02
|
)%
|
|
|
(2.56
|
)%
|
|
|
(2.22
|
)%
|
|
|
(2.52
|
)%
|
|
|
(1.27
|
)%
|
Portfolio turnover rate(5)
|
|
|
28.64
|
%
|
|
|
29.21
|
%
|
|
|
13.67
|
%
|
|
|
20.94
|
%
|
|
|
35.47
|
%
|
|
|
17.54
|
%
|
Credit facility borrowings,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000’s)
|
|
$
|
—
|
|
|
$
|
53,600
|
|
|
$
|
73,100
|
|
|
$
|
49,800
|
|
|
$
|
46,800
|
|
|
$
|
62,800
|
|
Senior notes, end of period (000’s)
|
|
$
|
38,200
|
|
|
$
|
277,000
|
|
|
$
|
312,000
|
|
|
$
|
284,000
|
|
|
$
|
284,000
|
|
|
$
|
348,000
|
|
Preferred stock, end of period (000’s)
|
|
$
|
12,700
|
|
|
$
|
132,000
|
|
|
$
|
132,000
|
|
|
$
|
110,000
|
|
|
$
|
110,000
|
|
|
$
|
90,000
|
|
Per common share amount of senior
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
notes outstanding, end of period
|
|
$
|
6.15
|
|
|
$
|
43.82
|
|
|
$
|
49.36
|
|
|
$
|
60.11
|
|
|
$
|
60.30
|
|
|
$
|
74.00
|
|
Per common share amount of net assets,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding senior notes, end of period
|
|
$
|
28.91
|
|
|
$
|
149.42
|
|
|
$
|
194.17
|
|
|
$
|
219.71
|
|
|
$
|
252.49
|
|
|
$
|
260.50
|
|
Asset coverage, per $1,000 of principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amount of senior notes and credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
facility borrowings(7)
|
|
$
|
5,034
|
|
|
$
|
3,419
|
|
|
$
|
3,719
|
|
|
$
|
3,589
|
|
|
$
|
4,068
|
|
|
$
|
3,353
|
|
Asset coverage ratio of senior notes and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
credit facility borrowings(9)
|
|
|
503
|
%
|
|
|
342
|
%
|
|
|
372
|
%
|
|
|
359
|
%
|
|
|
407
|
%
|
|
|
335
|
%
|
Asset coverage, per $25 liquidation value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per share of mandatory redeemable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
preferred stock(10)
|
|
$
|
94
|
|
|
$
|
61
|
|
|
$
|
69
|
|
|
$
|
67
|
|
|
$
|
76
|
|
|
$
|
69
|
|
Asset coverage ratio of preferred stock(10)
|
|
|
378
|
%
|
|
|
244
|
%
|
|
|
277
|
%
|
|
|
270
|
%
|
|
|
305
|
%
|
|
|
275
|
%
|
(1)
|
Information presented relates to a share of common stock outstanding for the entire period.
|
(2)
|
During the period from December 1, 2019 through August 31, 2020, the Fund effected the following reverse stock split: May 1, 2020, 1 for 10. All historical per share information has been retroactively adjusted to reflect this reverse stock split.
|
(3)
|
The per common share data for the years ended November 30, 2019, 2018, 2017, 2016, and 2015 do not reflect the change in estimate of investment income and return of capital, for the respective year. See Note 2C to the financial statements for further disclosure.
|
(4)
|
Represents underwriting and offering costs of less than $0.01 for the years ending November 30, 2019 and 2015. Represents the discounts on shares issued through rights offerings of $5.50, plus the underwriting and offering costs of $1.69 per share for the year ended November 30, 2018. Represents underwriting and offering costs of $0.01 for the year ending November 30, 2016.
|
(5)
|
Not annualized for periods less than one full year.
|
(6)
|
Total investment return is calculated assuming a purchase of common stock at the beginning of the period and a sale at the closing price on the last day of the period reported (excluding brokerage commissions). This calculation also assumes reinvestment of distributions at actual prices pursuant to NTG’s dividend reinvestment plan.
|
(7)
|
Annualized for periods less than one full year.
|
(8)
|
For the period from December 1, 2019 to August 31, 2020, NTG accrued $27,892,485 for net deferred income tax benefit and $30,016,378 for current tax expense. For the year ended November 30, 2019, NTG accrued $40,282,948 for net deferred income tax benefit and $1,510,530 for current tax benefit. For the year ended November 30, 2018, NTG accrued $54,197,357 for net deferred income tax benefit, which included a deferred tax benefit of $47,436,124 due to the impact from the federal tax rate reduction related to the Tax Cuts and Jobs Act. For the year ended November 30, 2017, NTG accrued $440,504 for current income tax expense and $39,035,257 for net deferred income tax benefit. For the year ended November 30, 2016, NTG accrued $1,891,670 for current income tax expense and $60,652,872 for net deferred income tax expense. For the year ended November 30, 2015, NTG accrued $200,550 for current income tax expense and $257,585,058 for net deferred income tax benefit.
|
(9)
|
Represents value of total assets less all liabilities and indebtedness not represented by senior notes, credit facility borrowings and preferred stock at the end of the period divided by senior notes and credit facility borrowings outstanding at the end of the period.
|
(10)
|
Represents value of total assets less all liabilities and indebtedness not represented by senior notes, credit facility borrowings and preferred stock at the end of the period divided by senior notes, credit facility borrowings and preferred stock outstanding at the end of the period.
|
See accompanying Notes to Financial Statements.
|
|
|
|
Tortoise
|
55
|
|
|
Period from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 1, 2019
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
through
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
|
August 31, 2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, beginning of period
|
|
$
|
51.88
|
|
|
$
|
65.16
|
|
|
$
|
75.28
|
|
|
$
|
93.68
|
|
|
$
|
78.84
|
|
|
$
|
140.16
|
|
Income (Loss) from Investment Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)(3)
|
|
|
(0.02
|
)
|
|
|
(0.48
|
)
|
|
|
(0.60
|
)
|
|
|
(0.20
|
)
|
|
|
0.16
|
|
|
|
0.88
|
|
Net realized and unrealized gain (loss)(3)
|
|
|
(31.54
|
)
|
|
|
(7.24
|
)
|
|
|
(3.00
|
)
|
|
|
(11.68
|
)
|
|
|
21.20
|
|
|
|
(54.40
|
)
|
Total income (loss) from investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations
|
|
|
(31.56
|
)
|
|
|
(7.72
|
)
|
|
|
(3.60
|
)
|
|
|
(11.88
|
)
|
|
|
21.36
|
|
|
|
(53.52
|
)
|
Distributions to Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.16
|
)
|
|
|
(0.20
|
)
|
|
|
(1.52
|
)
|
|
|
(1.36
|
)
|
From net realized gains from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment transactions
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.00
|
)
|
|
|
(5.00
|
)
|
|
|
(6.44
|
)
|
From return of capital
|
|
|
(1.46
|
)
|
|
|
(5.56
|
)
|
|
|
(6.36
|
)
|
|
|
(5.32
|
)
|
|
|
—
|
|
|
|
—
|
|
Total distributions to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders
|
|
|
(1.46
|
)
|
|
|
(5.56
|
)
|
|
|
(6.52
|
)
|
|
|
(6.52
|
)
|
|
|
(6.52
|
)
|
|
|
(7.80
|
)
|
Net Asset Value, end of period
|
|
$
|
18.86
|
|
|
$
|
51.88
|
|
|
$
|
65.16
|
|
|
$
|
75.28
|
|
|
$
|
93.68
|
|
|
$
|
78.84
|
|
Per common share market value,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period
|
|
$
|
14.11
|
|
|
$
|
46.08
|
|
|
$
|
57.32
|
|
|
$
|
68.04
|
|
|
$
|
86.20
|
|
|
$
|
69.88
|
|
Total investment return based on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
market value(4)(5)
|
|
|
(67.42
|
)%
|
|
|
(11.10
|
)%
|
|
|
(7.03
|
)%
|
|
|
(14.18
|
)%
|
|
|
34.89
|
%
|
|
|
(41.19
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data and Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders, end of period (000’s)
|
|
$
|
46,636
|
|
|
$
|
129,887
|
|
|
$
|
163,202
|
|
|
$
|
188,517
|
|
|
$
|
234,539
|
|
|
$
|
197,443
|
|
Average net assets (000’s)
|
|
$
|
78,887
|
|
|
$
|
157,017
|
|
|
$
|
188,518
|
|
|
$
|
219,359
|
|
|
$
|
192,888
|
|
|
$
|
292,473
|
|
Ratio of Expenses to Average Net Assets(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory fees
|
|
|
1.66
|
%
|
|
|
1.54
|
%
|
|
|
1.51
|
%
|
|
|
1.43
|
%
|
|
|
1.48
|
%
|
|
|
1.44
|
%
|
Other operating expenses
|
|
|
0.63
|
|
|
|
0.35
|
|
|
|
0.32
|
|
|
|
0.26
|
|
|
|
0.29
|
|
|
|
0.22
|
|
Total operating expenses,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before fee waiver
|
|
|
2.29
|
|
|
|
1.89
|
|
|
|
1.83
|
|
|
|
1.69
|
|
|
|
1.77
|
|
|
|
1.66
|
|
Fee waiver
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.00
|
)
|
|
|
(0.07
|
)
|
|
|
(0.14
|
)
|
Total operating expenses
|
|
|
2.29
|
|
|
|
1.89
|
|
|
|
1.83
|
|
|
|
1.69
|
|
|
|
1.70
|
|
|
|
1.52
|
|
Leverage expenses
|
|
|
2.59
|
|
|
|
1.62
|
|
|
|
1.40
|
|
|
|
1.06
|
|
|
|
1.23
|
|
|
|
0.93
|
|
Total expenses
|
|
|
4.88
|
%
|
|
|
3.51
|
%
|
|
|
3.23
|
%
|
|
|
2.75
|
%
|
|
|
2.93
|
%
|
|
|
2.45
|
%
|
See accompanying Notes to Financial Statements.
|
|
|
|
56
|
Tortoise
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
|
Period from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 1, 2019
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
through
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
|
August 31, 2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of net investment income (loss) to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average net assets before fee waiver(6)
|
|
|
(0.19
|
)%
|
|
|
(0.79
|
)%
|
|
|
(0.80
|
)%
|
|
|
(0.21
|
)%
|
|
|
0.12
|
%
|
|
|
0.60
|
%
|
Ratio of net investment income (loss) to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average net assets after fee waiver(6)
|
|
|
(0.19
|
)%
|
|
|
(0.79
|
)%
|
|
|
(0.80
|
)%
|
|
|
(0.21
|
)%
|
|
|
0.19
|
%
|
|
|
0.74
|
%
|
Portfolio turnover rate(4)
|
|
|
30.06
|
%
|
|
|
21.31
|
%
|
|
|
14.27
|
%
|
|
|
24.23
|
%
|
|
|
90.22
|
%
|
|
|
18.84
|
%
|
Credit facility borrowings,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000’s)
|
|
|
—
|
|
|
$
|
11,800
|
|
|
$
|
19,800
|
|
|
$
|
19,300
|
|
|
$
|
16,600
|
|
|
$
|
16,900
|
|
Senior notes, end of period (000’s)
|
|
$
|
18,400
|
|
|
$
|
34,000
|
|
|
$
|
34,000
|
|
|
$
|
34,000
|
|
|
$
|
34,000
|
|
|
$
|
54,000
|
|
Preferred stock, end of period (000’s)
|
|
$
|
6,100
|
|
|
$
|
16,000
|
|
|
$
|
16,000
|
|
|
$
|
16,000
|
|
|
$
|
16,000
|
|
|
$
|
16,000
|
|
Per common share amount of senior
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
notes outstanding, end of period
|
|
$
|
7.44
|
|
|
$
|
13.58
|
|
|
$
|
13.58
|
|
|
$
|
13.58
|
|
|
$
|
13.56
|
|
|
$
|
21.56
|
|
Per common share amount of net assets,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding senior notes, end of period
|
|
$
|
26.30
|
|
|
$
|
65.46
|
|
|
$
|
78.74
|
|
|
$
|
88.86
|
|
|
$
|
107.24
|
|
|
$
|
100.40
|
|
Asset coverage, per $1,000 of principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amount of senior notes and credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
facility borrowings(7)
|
|
$
|
3,866
|
|
|
$
|
4,185
|
|
|
$
|
4,331
|
|
|
$
|
4,837
|
|
|
$
|
5,951
|
|
|
$
|
4,010
|
|
Asset coverage ratio of senior notes and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
credit facility borrowings(7)
|
|
|
387
|
%
|
|
|
419
|
%
|
|
|
433
|
%
|
|
|
484
|
%
|
|
|
595
|
%
|
|
|
401
|
%
|
Asset coverage, per $25 liquidation value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per share of mandatory redeemable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
preferred stock(8)
|
|
$
|
73
|
|
|
$
|
78
|
|
|
$
|
83
|
|
|
$
|
93
|
|
|
$
|
113
|
|
|
$
|
82
|
|
Asset coverage ratio of preferred stock(8)
|
|
|
290
|
%
|
|
|
310
|
%
|
|
|
334
|
%
|
|
|
372
|
%
|
|
|
452
|
%
|
|
|
327
|
%
|
(1)
|
Information presented relates to a share of common stock outstanding for the entire period.
|
(2)
|
During the period from December 1, 2019 through August 31, 2020, the Fund effected the following reverse stock split: May 1, 2020, 1 for 4. All historical per share information has been retroactively adjusted to reflect this reverse stock split.
|
(3)
|
The per common share data for the years ended November 30, 2019, 2018, 2017, 2016, and 2015, do not reflect the change in estimate of investment income and return of capital, for the respective year. See Note 2C to the financial statements for further disclosure.
|
(4)
|
Not annualized for periods less than one full year.
|
(5)
|
Total investment return is calculated assuming a purchase of common stock at the beginning of the period and a sale at the closing price on the last day of the period reported (excluding brokerage commissions). The calculation also assumes reinvestment of distributions at actual prices pursuant to TTP’s dividend reinvestment plan.
|
(6)
|
Annualized for periods less than one full year.
|
(7)
|
Represents value of total assets less all liabilities and indebtedness not represented by senior notes, credit facility borrowings and preferred stock at the end of the period divided by senior notes and credit facility borrowings outstanding at the end of the period.
|
(8)
|
Represents value of total assets less all liabilities and indebtedness not represented by senior notes, credit facility borrowings and preferred stock at the end of the period divided by senior notes, credit facility borrowings and preferred stock outstanding at the end of the period.
|
See accompanying Notes to Financial Statements.
|
|
|
|
Tortoise
|
57
|
|
|
Period from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 1, 2019
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
through
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
|
August 31, 2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data(1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, beginning of period
|
|
$
|
33.36
|
|
|
$
|
72.16
|
|
|
$
|
103.04
|
|
|
$
|
135.60
|
|
|
$
|
124.24
|
|
|
$
|
182.08
|
|
Income (Loss) from Investment Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss(3)
|
|
|
—
|
|
|
|
(0.80
|
)
|
|
|
(2.32
|
)
|
|
|
(1.60
|
)
|
|
|
(0.96
|
)
|
|
|
(0.80
|
)
|
Net realized and unrealized gain (loss)(3)
|
|
|
(16.78
|
)
|
|
|
(29.36
|
)
|
|
|
(14.56
|
)
|
|
|
(16.96
|
)
|
|
|
26.32
|
|
|
|
(43.04
|
)
|
Total income (loss) from investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations
|
|
|
(16.78
|
)
|
|
|
(30.16
|
)
|
|
|
(16.88
|
)
|
|
|
(18.56
|
)
|
|
|
25.36
|
|
|
|
(43.84
|
)
|
Distributions to Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income(4)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.00
|
)
|
From net realized gains from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment transactions
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
From return of capital
|
|
|
(0.80
|
)
|
|
|
(8.64
|
)
|
|
|
(14.00
|
)
|
|
|
(14.00
|
)
|
|
|
(14.00
|
)
|
|
|
(14.00
|
)
|
Total distributions to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders
|
|
|
(0.80
|
)
|
|
|
(8.64
|
)
|
|
|
(14.00
|
)
|
|
|
(14.00
|
)
|
|
|
(14.00
|
)
|
|
|
(14.00
|
)
|
Net Asset Value, end of period
|
|
$
|
15.78
|
|
|
$
|
33.36
|
|
|
$
|
72.16
|
|
|
$
|
103.04
|
|
|
$
|
135.60
|
|
|
$
|
124.24
|
|
Per common share market value,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period
|
|
$
|
11.76
|
|
|
$
|
29.04
|
|
|
$
|
72.00
|
|
|
$
|
99.12
|
|
|
$
|
126.80
|
|
|
$
|
105.44
|
|
Total investment return based on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
market value(5)(6)
|
|
|
(58.01
|
)%
|
|
|
(52.35
|
)%
|
|
|
(15.10
|
)%
|
|
|
(11.04
|
)%
|
|
|
36.27
|
%
|
|
|
(31.05
|
)%
|
|
Supplemental Data and Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders, end of period (000’s)
|
|
$
|
29,137
|
|
|
$
|
61,550
|
|
|
$
|
132,488
|
|
|
$
|
187,889
|
|
|
$
|
246,088
|
|
|
$
|
225,410
|
|
Average net assets (000’s)
|
|
$
|
40,334
|
|
|
$
|
94,144
|
|
|
$
|
176,481
|
|
|
$
|
209,940
|
|
|
$
|
212,528
|
|
|
$
|
288,672
|
|
Ratio of Expenses to Average Net Assets(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory fees
|
|
|
1.43
|
%
|
|
|
1.52
|
%
|
|
|
1.50
|
%
|
|
|
1.43
|
%
|
|
|
1.42
|
%
|
|
|
1.33
|
%
|
Other operating expenses
|
|
|
1.11
|
|
|
|
0.51
|
|
|
|
0.32
|
|
|
|
0.26
|
|
|
|
0.29
|
|
|
|
0.21
|
|
Total operating expenses,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before fee waiver
|
|
|
2.54
|
|
|
|
2.03
|
|
|
|
1.82
|
|
|
|
1.69
|
|
|
|
1.71
|
|
|
|
1.54
|
|
Fee waiver
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
(0.13
|
)
|
|
|
(0.13
|
)
|
Total operating expenses
|
|
|
2.54
|
|
|
|
2.03
|
|
|
|
1.82
|
|
|
|
1.68
|
|
|
|
1.58
|
|
|
|
1.41
|
|
Leverage expenses
|
|
|
0.75
|
|
|
|
1.30
|
|
|
|
0.99
|
|
|
|
0.56
|
|
|
|
0.37
|
|
|
|
0.21
|
|
Total expenses
|
|
|
3.29
|
%
|
|
|
3.33
|
%
|
|
|
2.81
|
%
|
|
|
2.24
|
%
|
|
|
1.95
|
%
|
|
|
1.62
|
%
|
See accompanying Notes to Financial Statements.
|
|
|
|
58
|
Tortoise
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
|
Period from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 1, 2019
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
through
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
|
August 31, 2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of net investment income (loss) to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average net assets before fee waiver(7)
|
|
|
0.09
|
%
|
|
|
(1.58
|
)%
|
|
|
(2.40
|
)%
|
|
|
(1.41
|
)%
|
|
|
(0.98
|
)%
|
|
|
(0.61
|
)%
|
Ratio of net investment income (loss) to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average net assets after fee waiver(7)
|
|
|
0.09
|
%
|
|
|
(1.58
|
)%
|
|
|
(2.40
|
)%
|
|
|
(1.40
|
)%
|
|
|
(0.85
|
)%
|
|
|
(0.48
|
)%
|
Portfolio turnover rate(5)
|
|
|
63.32
|
%
|
|
|
182.52
|
%
|
|
|
143.77
|
%
|
|
|
64.88
|
%
|
|
|
47.03
|
%
|
|
|
15.63
|
%
|
Credit facility borrowings,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000’s)
|
|
$
|
4,400
|
|
|
$
|
26,500
|
|
|
$
|
57,100
|
|
|
$
|
64,500
|
|
|
$
|
63,800
|
|
|
$
|
61,800
|
|
Asset coverage, per $1,000 of principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amount of credit facility borrowings(8)
|
|
$
|
7,622
|
|
|
$
|
3,323
|
|
|
$
|
3,320
|
|
|
$
|
3,913
|
|
|
$
|
4,857
|
|
|
$
|
4,647
|
|
Asset coverage ratio of credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
facility borrowings(8)
|
|
|
762
|
%
|
|
|
332
|
%
|
|
|
332
|
%
|
|
|
391
|
%
|
|
|
486
|
%
|
|
|
465
|
%
|
(1)
|
Information presented relates to a share of common stock outstanding for the entire year.
|
(2)
|
During the period from December 1, 2019 through August 31, 2020, the Fund effected the following reverse stock split: May 1, 2020, 1 for 8. All historical per share information has been retroactively adjusted to reflect this reverse stock split.
|
(3)
|
The per common share data for the years ended November 30, 2019, 2018, 2017, 2016, and 2015 do not reflect the change in estimate of investment income and return of capital, for the respective year. See Note 2C to the financial statements for further disclosure.
|
(4)
|
Less than $0.01 for the year ended November 30, 2015.
|
(5)
|
Not annualized for period less than one full year.
|
(6)
|
Total investment return is calculated assuming a purchase of common stock at the beginning of the year and a sale at the closing price on the last day of the year reported (excluding brokerage commissions). The calculation also assumes reinvestment of distributions at actual prices pursuant to NDP’s dividend reinvestment plan.
|
(7)
|
Annualized for period less than one full year.
|
(8)
|
Represents value of total assets less all liabilities and indebtedness not represented by credit facility borrowings at the end of the period divided by credit facility borrowings outstanding at the end of the period.
|
See accompanying Notes to Financial Statements.
|
|
|
|
Tortoise
|
59
|
|
|
Period from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 1, 2019
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
through
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
|
August 31, 2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, beginning of period
|
|
$
|
17.70
|
|
|
$
|
19.76
|
|
|
$
|
21.33
|
|
|
$
|
23.89
|
|
|
$
|
21.23
|
|
|
$
|
31.08
|
|
Income (loss) from Investment Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income(2)
|
|
|
0.28
|
|
|
|
0.39
|
|
|
|
0.24
|
|
|
|
0.59
|
|
|
|
0.71
|
|
|
|
0.88
|
|
Net realized and unrealized gain (loss)(2)
|
|
|
(4.82
|
)
|
|
|
(0.95
|
)
|
|
|
(0.31
|
)
|
|
|
(1.65
|
)
|
|
|
3.49
|
|
|
|
(7.87
|
)
|
Total income (loss) from investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operations
|
|
|
(4.54
|
)
|
|
|
(0.56
|
)
|
|
|
(0.07
|
)
|
|
|
(1.06
|
)
|
|
|
4.20
|
|
|
|
(6.99
|
)
|
Distributions to Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.63
|
)
|
|
|
(1.40
|
)
|
|
|
(1.50
|
)
|
|
|
(1.04
|
)
|
|
|
(1.29
|
)
|
|
|
(0.91
|
)
|
From net realized gains from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment transactions
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.36
|
)
|
|
|
(0.25
|
)
|
|
|
(1.95
|
)
|
From return of capital
|
|
|
(0.27
|
)
|
|
|
(0.10
|
)
|
|
|
(0.36
|
)
|
|
|
(0.10
|
)
|
|
|
—
|
|
|
|
—
|
|
Total distributions to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders
|
|
|
(0.90
|
)
|
|
|
(1.50
|
)
|
|
|
(1.86
|
)
|
|
|
(1.50
|
)
|
|
|
(1.54
|
)
|
|
|
(2.86
|
)
|
Net Asset Value, end of period
|
|
$
|
12.26
|
|
|
$
|
17.70
|
|
|
$
|
19.40
|
|
|
$
|
21.33
|
|
|
$
|
23.89
|
|
|
$
|
21.23
|
|
|
Per common share market value,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period
|
|
$
|
9.24
|
|
|
$
|
15.57
|
|
|
$
|
17.17
|
|
|
$
|
19.94
|
|
|
$
|
21.43
|
|
|
$
|
18.53
|
|
Total investment return based on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
market value(3)(4)
|
|
|
(35.60
|
)%
|
|
|
(1.38
|
)%
|
|
|
(6.82
|
)%
|
|
|
(0.27
|
)%
|
|
|
25.57
|
%
|
|
|
(22.54
|
)%
|
Total investment return based on net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
asset value(3)(5)
|
|
|
(24.83
|
)%
|
|
|
(2.59
|
)%
|
|
|
0.24
|
%
|
|
|
(4.31
|
)%
|
|
|
22.18
|
%
|
|
|
(23.19
|
)%
|
|
Supplemental Data and Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders, end of period (000’s)
|
|
$
|
85,232
|
|
|
$
|
123,015
|
|
|
$
|
137,324
|
|
|
$
|
148,243
|
|
|
$
|
166,073
|
|
|
$
|
147,563
|
|
Average net assets (000’s)
|
|
$
|
96,045
|
|
|
$
|
137,701
|
|
|
$
|
147,616
|
|
|
$
|
162,708
|
|
|
$
|
146,274
|
|
|
$
|
187,752
|
|
Ratio of Expenses to Average Net Assets(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory fees
|
|
|
1.30
|
%
|
|
|
1.32
|
%
|
|
|
1.29
|
%
|
|
|
1.25
|
%
|
|
|
1.27
|
%
|
|
|
1.20
|
%
|
Other operating expenses
|
|
|
1.03
|
|
|
|
0.38
|
|
|
|
0.37
|
|
|
|
0.31
|
|
|
|
0.39
|
|
|
|
0.31
|
|
Total operating expenses,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before fee waiver
|
|
|
2.33
|
|
|
|
1.70
|
|
|
|
1.66
|
|
|
|
1.56
|
|
|
|
1.66
|
|
|
|
1.51
|
|
Fee waiver
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01
|
)
|
Total operating expenses
|
|
|
2.33
|
|
|
|
1.70
|
|
|
|
1.66
|
|
|
|
1.56
|
|
|
|
1.66
|
|
|
|
1.50
|
|
Leverage expenses
|
|
|
1.08
|
|
|
|
1.25
|
|
|
|
0.98
|
|
|
|
0.59
|
|
|
|
0.44
|
|
|
|
0.26
|
|
Current foreign tax expense(7)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total expenses
|
|
|
3.41
|
%
|
|
|
2.95
|
%
|
|
|
2.64
|
%
|
|
|
2.15
|
%
|
|
|
2.10
|
%
|
|
|
1.76
|
%
|
See accompanying Notes to Financial Statements.
|
|
|
|
60
|
Tortoise
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
|
Period from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 1, 2019
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
through
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
November 30,
|
|
|
August 31, 2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of net investment income to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average net assets before fee waiver(6)
|
|
|
2.72
|
%
|
|
|
1.98
|
%
|
|
|
1.14
|
%
|
|
|
2.51
|
%
|
|
|
3.39
|
%
|
|
|
3.25
|
%
|
Ratio of net investment income to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average net assets after fee waiver(6)
|
|
|
2.72
|
%
|
|
|
1.98
|
%
|
|
|
1.14
|
%
|
|
|
2.51
|
%
|
|
|
3.39
|
%
|
|
|
3.26
|
%
|
Portfolio turnover rate(3)
|
|
|
25.54
|
%
|
|
|
25.27
|
%
|
|
|
31.41
|
%
|
|
|
30.86
|
%
|
|
|
40.61
|
%
|
|
|
30.99
|
%
|
Credit facility borrowings,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
end of period (000’s)
|
|
$
|
26,100
|
|
|
$
|
54,100
|
|
|
$
|
53,400
|
|
|
$
|
53,400
|
|
|
$
|
50,600
|
|
|
$
|
49,900
|
|
Asset coverage, per $1,000 of principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amount of senior notes and credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
facility borrowings(7)
|
|
$
|
4,266
|
|
|
$
|
3,274
|
|
|
$
|
3,572
|
|
|
$
|
3,776
|
|
|
$
|
4,282
|
|
|
$
|
3,957
|
|
Asset coverage ratio of senior notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and credit facility borrowings(7)
|
|
|
427
|
%
|
|
|
327
|
%
|
|
|
357
|
%
|
|
|
378
|
%
|
|
|
428
|
%
|
|
|
396
|
%
|
(1)
|
Information presented relates to a share of common stock outstanding for the entire period.
|
(2)
|
The per common share data for the years ended November 30, 2019, 2018, 2017, 2016 and 2015 do not reflect the change in estimate of investment income and return of capital, for the respective year. See Note 2C to the financial statements for further disclosure.
|
(3)
|
Not annualized for period less than one full year.
|
(4)
|
Total investment return is calculated assuming a purchase of common stock at the beginning of the period and a sale at the closing price on the last day of the period reported (excluding brokerage commissions). The calculation also assumes reinvestment of distributions at actual prices pursuant to TPZ’s dividend reinvestment plan.
|
(5)
|
Total investment return is calculated assuming a purchase of common stock at the beginning of the period and a sale at net asset value on the last day of the period reported. The calculation also assumes reinvestment of distributions at actual prices pursuant to TPZ’s dividend reinvestment plan.
|
(6)
|
Annualized for period less than one full year.
|
(7)
|
Represents value of total assets less all liabilities and indebtedness not represented by credit facility borrowings at the end of the period divided by credit facility borrowings outstanding at the end of the period.
|
See accompanying Notes to Financial Statements.
|
|
|
|
Tortoise
|
61
|
|
|
|
|
TEAF Financial Highlights
|
|
|
|
|
Period From
|
|
Period From
|
|
|
December 1, 2019
|
|
March 29, 2019(1)
|
|
|
through
|
|
through
|
|
|
August 31, 2020
|
|
November 30, 2019
|
|
|
(unaudited)
|
|
|
|
|
Per Common Share Data(2)
|
|
|
|
|
|
|
|
|
Net Asset Value, beginning of period
|
|
$
|
17.60
|
|
|
$
|
20.00
|
|
Income (loss) from Investment Operations
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
0.82
|
|
|
|
0.31
|
|
Net realized and unrealized loss
|
|
|
(2.25
|
)
|
|
|
(1.95
|
)
|
Total loss from investment operations
|
|
|
(1.43
|
)
|
|
|
(1.64
|
)
|
Distributions to Common Stockholders
|
|
|
|
|
|
|
|
|
From net investment income
|
|
|
(0.39
|
)
|
|
|
(0.34
|
)
|
From return of capital
|
|
|
(0.49
|
)
|
|
|
(0.42
|
)
|
Total distributions to common stockholders
|
|
|
(0.88
|
)
|
|
|
(0.76
|
)
|
Net Asset Value, end of period
|
|
$
|
15.29
|
|
|
$
|
17.60
|
|
Per common share market value, end of period
|
|
$
|
11.20
|
|
|
$
|
15.60
|
|
Total investment return based on market value(3)(4)
|
|
|
(22.99
|
)%
|
|
|
(18.45
|
)%
|
|
|
|
|
|
|
|
|
|
Supplemental Data and Ratios
|
|
|
|
|
|
|
|
|
Net assets applicable to common stockholders, end of period (000’s)
|
|
$
|
206,277
|
|
|
$
|
237,461
|
|
Average net assets (000’s)
|
|
$
|
211,954
|
|
|
$
|
252,217
|
|
Ratio of Expenses to Average Net Assets(5)
|
|
|
|
|
|
|
|
|
Advisory fees
|
|
|
1.55
|
%
|
|
|
1.51
|
%
|
Other operating expenses
|
|
|
0.28
|
|
|
|
0.81
|
|
Total operating expenses, before fee waiver
|
|
|
1.83
|
|
|
|
2.32
|
|
Fee waiver
|
|
|
(0.14
|
)
|
|
|
(0.28
|
)
|
Total operating expenses
|
|
|
1.69
|
|
|
|
2.04
|
|
Leverage expenses
|
|
|
0.25
|
|
|
|
0.36
|
|
Income tax expense (benefit)(6)
|
|
|
0.01
|
|
|
|
(0.24
|
)
|
Total expenses
|
|
|
1.95
|
%
|
|
|
2.16
|
%
|
See accompanying Notes to Financial Statements.
|
|
|
|
62
|
Tortoise
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
|
|
|
|
|
Period From
|
|
Period From
|
|
|
December 1, 2019
|
|
March 29, 2019(1)
|
|
|
through
|
|
through
|
|
|
August 31, 2020
|
|
November 30, 2019
|
|
|
(unaudited)
|
|
|
|
|
Ratio of net investment income to average net assets before fee waiver(5)
|
|
|
6.82
|
%
|
|
|
2.15
|
%
|
Ratio of net investment income to average net assets after fee waiver(5)
|
|
|
6.96
|
%
|
|
|
2.43
|
%
|
Portfolio turnover rate(3)
|
|
|
53.75
|
%
|
|
|
50.44
|
%
|
Credit facility borrowings, end of period (000’s)
|
|
$
|
30,500
|
|
|
$
|
32,000
|
|
Asset coverage, per $1,000 of principal amount of senior notes and credit facility borrowings(7)
|
|
$
|
7,763
|
|
|
$
|
8,421
|
|
Asset coverage ratio of senior notes and credit facility borrowings(7)
|
|
|
776
|
%
|
|
|
842
|
%
|
(1)
|
Commencement of operations.
|
(2)
|
Information presented relates to a share of common stock outstanding for the entire period.
|
(3)
|
Not annualized.
|
(4)
|
Total investment return is calculated assuming a purchase of common stock at the beginning of the period and a sale at the closing price on the last day of the period reported (excluding brokerage commissions). The calculation also assumes reinvestment of distributions at actual prices pursuant to TEAF’s dividend reinvestment plan.
|
(5)
|
Annualized.
|
(6)
|
For the period from December 1, 2019 to August 31, 2020, TEAF accrued $12,934 for net deferred income tax expense. For the period ended November 30, 2019, TEAF accrued $418,970 for net deferred income tax benefit.
|
(7)
|
Represents value of total assets less all liabilities and indebtedness not represented by margin facility borrowings at the end of the period divided by margin facility borrowings outstanding at the end of the period.
|
See accompanying Notes to Financial Statements.
|
|
|
|
Tortoise
|
63
|
|
|
|
|
Notes to Financial Statements (unaudited)
|
August 31, 2020
|
|
1. General Organization
This report covers the following companies, each of which is listed on the New York Stock Exchange (“NYSE”): Tortoise Energy Infrastructure Corp. (“TYG”), Tortoise Midstream Energy Fund, Inc. (“NTG”) (formerly Tortoise MLP Fund, Inc.), Tortoise Pipeline & Energy Fund, Inc. (“TTP”), Tortoise Energy Independence Fund, Inc. (“NDP”), Tortoise Power and Energy Infrastructure Fund, Inc. (“TPZ”), and Tortoise Essential Assets Income Term Fund (“TEAF”). These companies are individually referred to as a “Fund” or by their respective NYSE symbols, or collectively as the “Funds”, and each is a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). Each of TYG, NTG, TTP, NDP and TEAF has a primary investment objective to seek a high level of total return with an emphasis on current distributions. TPZ has a primary investment objective to provide a high level of current income, with a secondary objective of capital appreciation. TEAF commenced operations on March 29, 2019.
2. Significant Accounting Policies
The Funds follow accounting and reporting guidance applicable to investment companies under U.S. generally accepted accounting principles (“GAAP”).
A. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the amount of income and expenses during the period reported. Actual results could differ from those estimates.
B. Security Valuation
In general, and where applicable, the Funds use readily available market quotations based upon the last updated sales price from the principal market to determine fair value. The Funds primarily own securities that are listed on a securities exchange or are traded in the over-the-counter market. The Funds value those securities at their last sale price on that exchange or over-the-counter market on the valuation date. If the security is listed on more than one exchange, the Funds use the price from the exchange that it considers to be the principal exchange on which the security is traded. If there has been no sale on such exchange or over-the-counter market on such day, the security is valued at the mean between the last bid price and last ask price on such day. Securities listed on the NASDAQ are valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. These securities are categorized as Level 1 in the fair value hierarchy.
Restricted securities are subject to statutory or contractual restrictions on their public resale, which may make it more difficult to obtain a valuation and may limit a Fund’s ability to dispose of them. Investments in private placement securities and other securities for which market quotations are not readily available are valued in good faith by using fair value procedures. Such fair value procedures consider factors such as discounts to publicly traded issues, time until conversion date, securities with similar yields, quality, type of issue, coupon, duration and rating. If events occur that affect the value of a Fund’s portfolio securities before the net asset value has been calculated (a “significant event”), the portfolio securities so affected are generally priced using fair value procedures.
An equity security of a publicly traded company acquired in a private placement transaction without registration under the Securities Act of 1933, as amended (the “1933 Act”), is subject to restrictions on resale that can affect the security’s liquidity and fair value. If such a security is convertible into publicly traded common shares, the security generally will be valued at the common share market price adjusted by a percentage discount due to the restrictions and categorized as Level 2 in the fair value hierarchy. To the extent that such securities are convertible or otherwise become freely tradable within a time frame that may be reasonably determined, an amortization schedule may be used to determine the discount. If the security has characteristics that are dissimilar to the class of security that trades on the open market, the security will generally be valued and categorized as Level 3 in the fair value hierarchy.
Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity. Unobservable inputs reflect the Funds’ own beliefs about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances, which might include the Fund’s own data. The Fund’s own data are adjusted if information is reasonably available without undue cost and effort that indicates that market participants would use different assumptions. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Options (including options on futures contracts) and futures contracts are valued using readily available market quotations. Exchange-traded options are valued at the last reported sale price on any exchange on which they trade. If there are no sales reported on any exchange, exchange-traded options shall be valued at the mean between the last highest bid and last lowest asked prices obtained as of the closing of the exchanges on which the option is traded. Exchange-traded domestic futures contracts are valued at the last reported sale price on the Chicago Mercantile Exchange. Exchange-traded foreign futures contracts are valued at the last reported sale price on the primary foreign exchange on which they principally trade. The value of Flexible Exchange Options (FLEX Options) are determined (i) by an evaluated price as determined by a third-party valuation service; or (ii) by using a quotation provided by a broker-dealer.
The Funds generally value debt securities at evaluated prices obtained from an independent third-party valuation service that utilizes a pricing matrix based upon yield data for securities with similar characteristics, or based on a direct written broker-dealer quotation from a dealer who has made a market in the security. Debt securities with 60 days or less to maturity at time of purchase are valued on the basis of amortized cost, which approximates fair value. The securities are categorized as level 2 in the fair value hierarchy.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
Interest rate swap contracts are valued by using industry-accepted models, which discount the estimated future cash flows based on a forward rate curve and the stated terms of the interest rate swap agreement by using interest rates currently available in the market, or based on dealer quotations, if available, and are categorized as Level 2 in the fair value hierarchy.
Various inputs are used in determining the fair value of the Funds’ investments and financial instruments. These inputs are summarized in the three broad levels listed below:
Level 1 —
|
quoted prices in active markets for identical investments
|
|
|
Level 2 —
|
other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.)
|
|
|
Level 3 —
|
significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments)
|
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following tables provide the fair value measurements of applicable assets and liabilities by level within the fair value hierarchy as of August 31, 2020. These assets and liabilities are measured on a recurring basis.
TYG:
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Master Limited Partnerships(a)
|
|
$
|
236,185,310
|
|
$
|
—
|
|
$
|
—
|
|
$
|
236,185,310
|
Common Stock(a)
|
|
|
59,416,393
|
|
|
—
|
|
|
—
|
|
|
59,416,393
|
Preferred Stock(a)
|
|
|
—
|
|
|
—
|
|
|
32,989,751
|
|
|
32,989,751
|
Corporate Bonds(a)
|
|
|
—
|
|
|
14,484,431
|
|
|
—
|
|
|
14,484,431
|
Convertible Bond(a)
|
|
|
—
|
|
|
—
|
|
|
4,703,344
|
|
|
4,703,344
|
Private Investment(a)
|
|
|
—
|
|
|
—
|
|
|
10,803,401
|
|
|
10,803,401
|
Special Purpose Acquisition Companies(a)
|
|
|
7,559,396
|
|
|
—
|
|
|
—
|
|
|
7,559,396
|
Short-Term Investment(b)
|
|
|
30,812,775
|
|
|
—
|
|
|
—
|
|
|
30,812,775
|
Total Assets
|
|
$
|
333,973,874
|
|
$
|
14,484,431
|
|
$
|
48,496,496
|
|
$
|
396,954,801
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swap Contracts
|
|
$
|
—
|
|
$
|
245,527
|
|
$
|
—
|
|
$
|
245,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NTG:
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Master Limited Partnerships(a)
|
|
$
|
126,320,810
|
|
$
|
—
|
|
$
|
—
|
|
$
|
126,320,810
|
Common Stock(a)
|
|
|
47,855,634
|
|
|
—
|
|
|
—
|
|
|
47,855,634
|
Preferred Stock(a)
|
|
|
—
|
|
|
—
|
|
|
20,382,800
|
|
|
20,382,800
|
Corporate Bond(a)
|
|
|
—
|
|
|
1,360,000
|
|
|
—
|
|
|
1,360,000
|
Convertible Bond(a)
|
|
|
—
|
|
|
—
|
|
|
3,274,708
|
|
|
3,274,708
|
Special Purpose Acquisition Companies(a)
|
|
|
4,191,712
|
|
|
—
|
|
|
—
|
|
|
4,191,712
|
Short-Term Investment(b)
|
|
|
8,268,057
|
|
|
—
|
|
|
—
|
|
|
8,268,057
|
Total Assets
|
|
$
|
186,636,213
|
|
$
|
1,360,000
|
|
$
|
23,657,508
|
|
$
|
211,653,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TTP:
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock(a)
|
|
$
|
41,453,475
|
|
$
|
—
|
|
$
|
—
|
|
$
|
41,453,475
|
Master Limited Partnerships(a)
|
|
|
15,405,559
|
|
|
—
|
|
|
—
|
|
|
15,405,559
|
Preferred Stock(a)
|
|
|
2,931,519
|
|
|
—
|
|
|
2,675,903
|
|
|
5,607,422
|
Special Purpose Acquisition Companies(a)
|
|
|
1,296,200
|
|
|
—
|
|
|
—
|
|
|
1,296,200
|
Short-Term Investment(b)
|
|
|
7,554,994
|
|
|
—
|
|
|
—
|
|
|
7,554,994
|
Total Assets
|
|
$
|
68,641,747
|
|
$
|
—
|
|
$
|
2,675,903
|
|
$
|
71,317,650
|
|
|
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
NDP:
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock(a)
|
|
$
|
28,087,659
|
|
$
|
—
|
|
$
|
—
|
|
$
|
28,087,659
|
Master Limited Partnerships(a)
|
|
|
2,766,586
|
|
|
—
|
|
|
—
|
|
|
2,766,586
|
Preferred Stock(a)
|
|
|
—
|
|
|
—
|
|
|
1,936,691
|
|
|
1,936,691
|
Special Purpose Acquisition Companies(a)
|
|
|
681,896
|
|
|
—
|
|
|
—
|
|
|
681,896
|
Short-Term Investment(b)
|
|
|
117,592
|
|
|
—
|
|
|
—
|
|
|
117,592
|
Total Assets
|
|
$
|
31,653,733
|
|
$
|
—
|
|
$
|
1,936,691
|
|
$
|
33,590,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TPZ:
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bonds(a)
|
|
$
|
—
|
|
$
|
66,381,264
|
|
$
|
—
|
|
$
|
66,381,264
|
Convertible Bond(a)
|
|
|
—
|
|
|
—
|
|
|
942,828
|
|
|
942,828
|
Master Limited Partnerships(a)
|
|
|
19,585,373
|
|
|
—
|
|
|
—
|
|
|
19,585,373
|
Common Stock(a)
|
|
|
15,218,550
|
|
|
—
|
|
|
—
|
|
|
15,218,550
|
Preferred Stock(a)
|
|
|
2,155,981
|
|
|
—
|
|
|
2,184,923
|
|
|
4,340,904
|
Special Purpose Acquisition Companies(a)
|
|
|
2,156,940
|
|
|
—
|
|
|
—
|
|
|
2,156,940
|
Term Loan(a)
|
|
|
—
|
|
|
1,960,000
|
|
|
—
|
|
|
1,960,000
|
Short-Term Investment(b)
|
|
|
182,101
|
|
|
—
|
|
|
—
|
|
|
182,101
|
Total Assets
|
|
$
|
39,298,945
|
|
$
|
68,341,264
|
|
$
|
3,127,751
|
|
$
|
110,767,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEAF:
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock(a)
|
|
$
|
83,585,550
|
|
$
|
—
|
|
$
|
—
|
|
$
|
83,585,550
|
Master Limited Partnerships(a)
|
|
|
24,343,723
|
|
|
—
|
|
|
—
|
|
|
24,343,723
|
Corporate Bonds(a)
|
|
|
—
|
|
|
29,052,131
|
|
|
—
|
|
|
29,052,131
|
Preferred Bonds(a)
|
|
|
—
|
|
|
9,247,200
|
|
|
—
|
|
|
9,247,200
|
Preferred Stock(a)
|
|
|
7,032,112
|
|
|
—
|
|
|
8,775,030
|
|
|
15,807,142
|
Private Investments(a)
|
|
|
—
|
|
|
—
|
|
|
43,599,692
|
|
|
43,599,692
|
Municipal Bonds(a)
|
|
|
—
|
|
|
13,506,530
|
|
|
—
|
|
|
13,506,530
|
Construction Note(a)
|
|
|
—
|
|
|
—
|
|
|
3,522,285
|
|
|
3,522,285
|
Convertible Bond(a)
|
|
|
—
|
|
|
—
|
|
|
3,953,040
|
|
|
3,953,040
|
Term Loan(a)
|
|
|
—
|
|
|
4,900,000
|
|
|
—
|
|
|
4,900,000
|
Short-Term Investment(b)
|
|
|
2,875,475
|
|
|
—
|
|
|
—
|
|
|
2,875,475
|
Total Assets
|
|
$
|
117,836,860
|
|
$
|
56,705,861
|
|
$
|
59,850,047
|
|
$
|
234,392,768
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Written Call Options
|
|
$
|
89,047
|
|
$
|
76,116
|
|
$
|
—
|
|
$
|
165,163
|
(a)
|
All other industry classifications are identified in the Schedule of Investments.
|
(b)
|
Short-term investment is a sweep investment for cash balances.
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
|
The following tables present each Fund’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period ended August 31, 2020:
Preferred Stock
|
|
TYG
|
|
NTG
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
Balance — beginning of period
|
|
$
|
40,613,580
|
|
|
$
|
24,705,787
|
|
|
$
|
5,990,475
|
|
|
$
|
2,133,275
|
|
|
$
|
4,629,781
|
|
|
$
|
8,564,680
|
|
Purchases
|
|
|
355,596
|
|
|
|
254,260
|
|
|
|
18,890
|
|
|
|
—
|
|
|
|
16,475
|
|
|
|
146,434
|
|
Return of capital
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Sales
|
|
|
(7,222,467
|
)
|
|
|
(4,329,758
|
)
|
|
|
(3,310,291
|
)
|
|
|
—
|
|
|
|
(2,439,257
|
)
|
|
|
—
|
|
Total realized gain/loss
|
|
|
945,467
|
|
|
|
566,758
|
|
|
|
433,391
|
|
|
|
—
|
|
|
|
319,257
|
|
|
|
—
|
|
Change in unrealized gain/loss
|
|
|
(1,702,425
|
)
|
|
|
(814,247
|
)
|
|
|
(456,462
|
)
|
|
|
(196,584
|
)
|
|
|
(341,333
|
)
|
|
|
63,916
|
|
Balance — end of period
|
|
$
|
32,989,751
|
|
|
$
|
20,382,800
|
|
|
$
|
2,675,903
|
|
|
$
|
1,936,691
|
|
|
$
|
2,184,923
|
|
|
$
|
8,775,030
|
|
|
Private Investments
|
|
TYG
|
|
|
NTG
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
Balance — beginning of period
|
|
$
|
14,093,091
|
|
|
$
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40,885,774
|
|
Purchases
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,779,081
|
|
Return of capital
|
|
|
(275,000
|
)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Sales
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total realized gain/loss
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Change in unrealized gain/loss
|
|
|
(3,014,690
|
)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6,065,163
|
)
|
Balance — end of period
|
|
$
|
10,803,401
|
|
|
$
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,599,692
|
|
|
Construction Note
|
|
TYG
|
|
NTG
|
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
Balance — beginning of period
|
|
$
|
|
—
|
|
|
$
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,516,669
|
|
Purchases
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,234
|
|
Return of capital
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Sales
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total realized gain/loss
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Change in unrealized gain/loss
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,618
|
)
|
Balance — end of period
|
|
$
|
|
—
|
|
|
$
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,522,285
|
|
|
Convertible Bond
|
|
TYG
|
|
NTG
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
Balance — beginning of period
|
|
$
|
|
—
|
|
|
$
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Purchases
|
|
|
15,284,100
|
|
|
|
10,643,100
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,061,500
|
|
|
|
11,848,550
|
|
Return of capital
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Sales
|
|
|
(15,167,482
|
)
|
|
|
(10,562,247
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,037,565
|
)
|
|
|
(11,734,635
|
)
|
Total realized gain/loss
|
|
|
2,497,382
|
|
|
|
1,739,147
|
|
|
|
—
|
|
|
|
—
|
|
|
|
500,065
|
|
|
|
2,067,015
|
|
Change in unrealized gain/loss
|
|
|
2,089,344
|
|
|
|
1,454,708
|
|
|
|
—
|
|
|
|
—
|
|
|
|
418,828
|
|
|
|
1,772,110
|
|
Balance — end of period
|
|
$
|
4,703,344
|
|
|
$
|
3,274,708
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
942,828
|
|
|
$
|
3,953,040
|
|
|
|
|
TYG
|
|
NTG
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
Change in unrealized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gain/loss on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
still held at August 31, 2020
|
|
$
|
(1,955,800
|
)
|
|
$
|
1,043,301
|
|
|
$
|
(148,471
|
)
|
|
$
|
(196,585
|
)
|
|
$
|
304,448
|
|
|
$
|
(4,231,755
|
)
|
TYG, NTG, TTP, NDP and TPZ own units of preferred stock of Targa Resources Corp. (“TRGP Pfd”) that were issued in a private placement transaction that closed on March 16, 2016. TEAF owns units of TRGP Pfd that were purchased in a private placement transaction that closed on November 18, 2019. The preferred stock provides the purchaser an option to convert into common stock after 12 years. In addition, the preferred stock can be repurchased by the issuer at a price of $1,100 per share after five years and $1,050 per share after six years.
TYG, NTG, TTP, TPZ and TEAF own units of preferred stock of Altus Midstream Company (“ALTM Pfd”) that were issued in a private placement transaction that closed on June 12, 2019. The preferred stock carries a conversion option into common stock after the 7th anniversary of issuance (June 12, 2026) with a conversion rate determined as the quotient of Altus’ common unit price divided by a 6% discount to the prior 20-Day Volume Weighted Average Price (“VWAP”). Alternately, Altus can force conversion into common stock at a value determined by a minimum rate of return: before 5 years: greater of 1.3x Multiple on Invested Capital (“MOIC”) or 11.5% Internal Rate of Return (“IRR”), and after 5 years: greater of 1.3x MOIC or 13.75% IRR.
|
|
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
|
TYG, NTG, TPZ and TEAF own units of a convertible bond in Sunnova Energy International Inc. (“NOVA”) that was entered into on May 13, 2020. The convertible bond provides the purchaser an option to convert into common stock equal to the aggregate principal amount of the notes to be converted, together with accrued but unpaid interest up to, but excluding, the date of the conversion, divided by $13.50. Additionally, the issuer has the right to redeem 33.33% of the security during the first two years at 115% of the principal amount, anytime on or after the 3 year anniversary and prior to the 4 year anniversary of the issuance date (May 14, 2023 through May 14, 2024), the issuer may redeem at a redemption price equal to 115% of the principal amount; and any time after the 4 year anniversary (May 14, 2024), the issuer may redeem at a redemption price equal to 110% of the principal amount. In addition, after 3 years, the issuer can force conversion to common stock equal to the aggregate principal amount of the notes to be converted, together with accrued but unpaid interest up to, but excluding, the date of the conversion, divided by $13.50 should the common stock price equals or exceeds the conversion price by 150%. On or after September 23, 2024, the purchaser has an option to require the issuer to redeem all of the bonds for cash equal to 110% of the principal amount.
TEAF owns units of Mexico Pacific Limited LLC (“MPL”), which was issued in a private transaction that closed on October 23, 2019. As of August 31, 2020, the investment in MPL was valued using the purchase price.
A lattice model prepared by an independent third party is being utilized to determine fair value of the level 3 TRGP Pfd securities. Unobservable inputs used to determine the discount rate include a debt discount rate that generally reflects the credit worthiness of the company. An increase (decrease) in the debt discount rate would lead to a corresponding decrease (increase) in fair value of the preferred stock. An increase (decrease) in estimated future volatility would lead to a corresponding increase (decrease) in fair value of the preferred stock.
A discounted cash flow model prepared by an independent third party is being used to determine fair value of the level 3 ALTM Pfd securities. Unobservable inputs used to determine the discount rate include a debt discount rate that generally reflects the credit worthiness of the company. An increase (decrease) in the debt discount rate would lead to a corresponding decrease (increase) in fair value of the preferred stock.
A lattice model prepared by an independent third party is being utilized to determine fair value of NOVA. Unobservable inputs used to determine the discount rate include a debt discount rate that generally reflects the credit worthiness of the company. An increase (decrease) in the debt discount rate would lead to a corresponding decrease (increase) in fair value of the convertible bond. An increase (decrease) in estimated future volatility would lead to a corresponding increase (decrease) in fair value of the convertible bond.
A discounted cash flows model is being utilized to determine fair value of the construction note. Unobservable inputs used to determine the discount rate include a risk spread based on similar projects and an illiquidity spread due to the note being issued in the private market. An increase (decrease) in the risk spread or illiquidity spread would lead to a corresponding decrease (increase) in fair value of the note.
The following tables summarize the fair value and significant unobservable inputs that each Fund used to value its portfolio investments categorized as Level 3 as of August 31, 2020:
Assets at Fair Value
|
|
TYG
|
|
NTG
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
Construction Note
|
|
$
|
—
|
|
$
|
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,522,285
|
Convertible Bond
|
|
$
|
4,703,344
|
|
$
|
3,274,708
|
|
$
|
—
|
|
$
|
—
|
|
$
|
942,828
|
|
$
|
3,953,040
|
Preferred Stock
|
|
$
|
32,989,751
|
|
$
|
20,382,800
|
|
$
|
2,675,903
|
|
$
|
1,936,691
|
|
$
|
2,184,923
|
|
$
|
8,775,030
|
Private Investments
|
|
$
|
10,803,401
|
|
$
|
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
43,599,692
|
Assets at Fair Value
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Input
|
Preferred Stock (ALTM Pfd)
|
|
Discounted cash flow model
|
|
Debt discount rate
|
|
|
9.20
|
%
|
Preferred Stock (TRGP Pfd)
|
|
Lattice model
|
|
Debt discount rate
|
|
|
8.51
|
%
|
Convertible Bond (NOVA)
|
|
Lattice model
|
|
Debt discount rate
|
|
|
23.78
|
%
|
Private Investment (TK NYS Solar Holdco, LLC)
|
|
Discounted cash flow model
|
|
Post-contracted weighted average cost of capital
|
|
|
8.50
|
%
|
Private Investment (Mexico Pacific Limited)
|
|
Recent transaction
|
|
Purchase price
|
|
$
|
2,000,000
|
Private Investment (Renewable Holdco, LLC)
|
|
Recent transaction
|
|
Purchase price
|
|
$
|
11,996,581
|
Private Investment (Renewable Holdco I, LLC)
|
|
Discounted cash flow model
|
|
Post-contracted weighted average cost of capital
|
|
|
7.50
|
%
|
Private Investment (Renewable Holdco II, LLC)
|
|
Discounted cash flow model
|
|
Post-contracted weighted average cost of capital
|
|
|
8.50
|
%
|
Construction Note
|
|
Discounted cash flow model
|
|
Risk spread
|
|
|
1.7500
|
%
|
Construction Note
|
|
Discounted cash flow model
|
|
Illiquidity spread
|
|
|
1.7255
|
%
|
C. Securities Transactions and Investment Income
Securities transactions are accounted for on the date the securities are purchased or sold (trade date). Realized gains and losses are reported on an identified cost basis. Interest income is recognized on the accrual basis, including amortization of premiums and accretion of discounts. Dividend income and distributions are recorded on the ex-dividend date. Distributions received from investments generally are comprised of ordinary income and return of capital. The Funds estimate the allocation of distributions between investment income and return of capital at the time such distributions are received based on historical information or regulatory filings. These estimates may subsequently be revised based on actual allocations received from the portfolio companies after their tax reporting periods are concluded, as the actual character of these distributions is not known until after the fiscal year-end of the Funds.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
|
Subsequent to November 30, 2019, the Funds reallocated the amount of return of capital recognized for the period from December 1, 2018 through November 30, 2019 based on the 2019 tax reporting information received. The impact of this adjustment is as follows:
|
|
Estimated Return
|
|
Revised Return
|
|
Increase/(Decrease)
|
|
|
of Capital %
|
|
of Capital %
|
|
in Return of Capital
|
TYG
|
|
88%
|
|
89%
|
|
|
$
|
2,235,694
|
|
|
NTG
|
|
90%
|
|
88%
|
|
|
$
|
(1,725,051
|
)
|
|
TTP
|
|
68%
|
|
65%
|
|
|
$
|
(552,237
|
)
|
|
NDP
|
|
39%
|
|
40%
|
|
|
$
|
13,518
|
|
|
TPZ
|
|
82%
|
|
78%
|
|
|
$
|
(280,903
|
)
|
|
TEAF
|
|
52%
|
|
50%
|
|
|
$
|
(185,184
|
)
|
|
In addition, the Funds may be subject to withholding taxes on foreign-sourced income. The Funds accrue such taxes when the related income is earned.
D. Foreign Currency Translation
For foreign currency, investments in foreign securities, and other assets and liabilities denominated in a foreign currency, the Funds translate these amounts into U.S. dollars on the following basis: (i) market value of investment securities, assets and liabilities at the current rate of exchange on the valuation date, and (ii) purchases and sales of investment securities, income and expenses at the relevant rates of exchange on the respective dates of such transactions. The Funds do not isolate the portion of gains and losses on investments that is due to changes in the foreign exchange rates from that which is due to changes in market prices of securities.
E. Federal and State Income Taxation
Each of TYG and NTG, as corporations, are obligated to pay federal and state income tax on its taxable income. Currently, the federal income tax rate for corporations is 21%.
TTP, NDP, TPZ and TEAF each qualify as a regulated investment company (“RIC”) under the Internal Revenue Code (“IRC”). As a result, TTP, NDP, TPZ and TEAF generally will not be subject to U.S. federal income tax on income and gains that they distribute each taxable year to stockholders if they meet certain minimum distribution requirements. However, TEAF’s taxable subsidiary, created to hold certain investments is generally subject to federal and state income taxes on its income. RICs are required to distribute substantially all of their income, in addition to meeting certain asset diversification requirements, and are subject to a 4% non-deductible U.S. federal excise tax on certain undistributed income unless the fund makes sufficient distributions to satisfy the excise tax avoidance requirement.
The Funds invest in master limited partnerships (“MLPs”), which generally are treated as partnerships for federal income tax purposes. As a limited partner in the MLPs, each Fund reports its allocable share of the MLP’s taxable income in computing its own taxable income. The Funds’ tax expense or benefit, if applicable, is included in the Statements of Operations based on the component of income or gains (losses) to which such expense or benefit relates. For TYG and NTG, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized.
The Funds recognize the tax benefits of uncertain tax positions only when the position is “more likely than not” to be sustained upon examination by the tax authorities based on the technical merits of the tax position. The Funds’ policy is to record interest and penalties on uncertain tax positions as part of tax expense. As of August 31, 2020, the Funds had no uncertain tax positions and no penalties or interest was accrued. The Funds do not expect any change in their unrecognized tax positions in the next twelve months. The tax years ended on the following dates remain open to examination by federal and state tax authorities:
TYG — November 30, 2016 through 2019
NTG — November 30, 2013 through 2019
TTP, NDP and TPZ — November 30, 2016 through 2019
TEAF — November 30, 2019
F. Distributions to Stockholders
Distributions to common stockholders are recorded on the ex-dividend date. The Funds may not declare or pay distributions to its common stockholders if it does not meet asset coverage ratios required under the 1940 Act or the rating agency guidelines for its debt and preferred stock following such distribution. The amount of any distributions will be determined by the Board of Directors. The character of distributions to common stockholders made during the year may differ from their ultimate characterization for federal income tax purposes.
As RICs, TTP, NDP, TPZ and TEAF each intend to make cash distributions of its investment company taxable income and capital gains to common stockholders. In addition, on an annual basis, TTP, NDP, TPZ and TEAF each may distribute additional capital gains in the last calendar quarter if necessary to meet minimum distribution requirements and thus avoid being subject to excise taxes. Distributions paid to stockholders in excess of investment company taxable income and net realized gains will be treated as return of capital to stockholders.
|
|
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
|
Distributions to mandatory redeemable preferred (“MRP”) stockholders are accrued daily based on applicable distribution rates for each series and paid periodically according to the terms of the agreements. The Funds may not declare or pay distributions to its preferred stockholders if it does not meet a 200% asset coverage ratio for its debt or the rating agency basic maintenance amount for the debt following such distribution. The character of distributions to preferred stockholders made during the year may differ from their ultimate characterization for federal income tax purposes.
For tax purposes, distributions to stockholders for the year ended November 30, 2019 were characterized as follows:
|
|
|
|
|
|
TYG
|
|
|
|
NTG
|
|
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
|
|
Common
|
|
Preferred
|
|
Common
|
|
Preferred
|
|
Common
|
|
Preferred
|
|
Common
|
|
Common
|
|
Common
|
Qualified dividend income
|
|
|
21%
|
|
|
100%
|
|
—
|
|
—
|
|
—
|
|
|
50%
|
|
|
—
|
|
|
10
|
%
|
|
|
|
29%
|
|
Ordinary dividend income
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
%
|
|
|
|
15%
|
|
Return of capital
|
|
|
79%
|
|
|
—
|
|
100%
|
|
100%
|
|
100%
|
|
|
50%
|
|
|
100%
|
|
|
7
|
%
|
|
|
|
56%
|
|
Long-term capital gain
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
%
|
|
|
|
—
|
|
*
|
For Federal income tax purposes, distributions of short-term capital gains are included in qualified dividend income.
|
G. Offering and Debt Issuance Costs
Offering costs related to the issuance of common stock are charged to additional paid-in capital when the stock is issued. Debt issuance costs related to senior notes and MRP Stock are deferred and amortized over the period the debt or MRP Stock is outstanding.
There were no offering or debt issuance costs recorded during the period December 1, 2019 through August 31, 2020 for TYG, NTG, TTP, NDP, TPZ or TEAF.
H. Derivative Financial Instruments
The Funds have established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. The Funds do not hold or issue derivative financial instruments for speculative purposes. All derivative financial instruments are recorded at fair value with changes in fair value during the reporting period, and amounts accrued under the agreements, included as unrealized gains or losses in the accompanying Statements of Operations. Derivative instruments that are subject to an enforceable master netting arrangement allow a Fund and the counterparty to the instrument to offset any exposure to the other party with amounts owed to the other party. The fair value of derivative financial instruments in a loss position are offset against the fair value of derivative financial instruments in a gain position, with the net fair value appropriately reflected as an asset or liability within the accompanying Statements of Assets & Liabilities.
TYG utilizes interest rate swap contracts in an attempt to manage interest rate risk. Cash settlements under the terms of the interest rate swap contracts and the termination of such contracts are recorded as realized gains or losses in the accompanying Statements of Operations.
TYG, NTG, TTP, NDP and TEAF may seek to provide current income from gains earned through an option strategy that normally consists of writing (selling) call options on selected equity securities held in the portfolio (“covered calls”). The premium received on a written call option is initially recorded as a liability and subsequently adjusted to the then current fair value of the option written. Premiums received from writing call options that expire unexercised are recorded as a realized gain on the expiration date. Premiums received from writing call options that are exercised are added to the proceeds from the sale of the underlying security to calculate the realized gain (loss). If a written call option is repurchased prior to its exercise, the realized gain (loss) is the difference between the premium received and the amount paid to repurchase the option.
TEAF may enter into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. TEAF uses forward currency contracts to manage exposure to changes in exchange rates. On a daily basis, TEAF’s investment adviser values forward currency contracts and records unrealized appreciation or depreciation for open forward currency contracts in the Statements of Assets & Liabilities. Realized gains or losses are recorded at the time the forward currency contracts are closed.
I. Indemnifications
Under each of the Funds’ organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds may enter into contracts that provide general indemnification to other parties. A Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred, and may not occur. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
J. Cash and Cash Equivalents
Cash and cash equivalents include short-term, liquid investments with an original maturity of three months or less and money market fund accounts.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
K. Recent Accounting and Regulatory Updates
In August 2018, the FASB issued ASU No. 2018-13 (ASU 2018-13), Fair Value Measurement (Topic 820): Disclosure Framework which modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, early adoption is permitted. Management is currently evaluating this guidance to determine the impact on the financial statements.
In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04 Reference Rate Reform (Topic 848); Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The guidance is applicable to contracts referencing London Interbank Offered Rate (LIBOR) or another reference rate that is expected to be discontinued due to reference rate reform. The ASU is effective as of March 12, 2020 and generally can be applied through December 31, 2022. Management is evaluating the underlying securities referencing LIBOR or another reference rate that is expected to be discontinued as a reference rate over the period of time the ASU is effective.
3. Risks and Uncertainties
TYG, NTG, TTP, NDP and TPZ concentrate their investments in the energy sector. TEAF concentrates its investments in issuers operating in essential asset sectors. Funds that primarily invest in a particular sector may experience greater volatility than companies investing in a broad range of industry sectors. A Fund may, for defensive purposes, temporarily invest all or a significant portion of its assets in investment grade securities, short-term debt securities and cash or cash equivalents. To the extent a Fund uses this strategy, it may not achieve its investment objective.
As of the date these financial statements were issued, the outbreak of the novel coronavirus (COVID-19) in many countries continues to adversely impact global commercial activity, and has contributed to significant volatility in financial markets. The global impact of the outbreak has been rapidly evolving, and as cases of the virus have continued to be identified in additional countries, many countries have reacted by instituting quarantines and restrictions on travel. Such measures, as well as the general uncertainty surrounding the dangers and impact of COVID-19, are creating significant disruption in supply chains and economic activity. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID- 19. Nevertheless, COVID-19 presents material uncertainty and risk with respect to our and our portfolio companies performance and financial results.
4. Agreements
The Funds have each entered into an Investment Advisory Agreement with Tortoise Capital Advisors, L.L.C. (the Adviser). The Funds each pay the Adviser a fee based on the Funds average monthly total assets (including any assets attributable to leverage and excluding any net deferred tax asset) minus accrued liabilities (other than net deferred tax liability, debt entered into for purposes of leverage and the aggregate liquidation preference of outstanding preferred stock) (Managed Assets), in exchange for the investment advisory services provided. Average monthly Managed Assets is the sum of the daily Managed Assets for the month divided by the number of days in the month. Accrued liabilities are expenses incurred in the normal course of each Funds operations. Waived fees are not subject to recapture by the Adviser. The annual fee rates paid to the Adviser as of August 31, 2020 are as follows:
TYG 0.95% up to $2,500,000,000, 0.90% between $2,500,000,000 and $3,500,000,000, and 0.85% above $3,500,000,000.
NTG 0.95%.
TTP 1.10%.
NDP 1.10%.
TPZ 0.95%.
TEAF 1.35%, less a fee waiver of 0.25% for one year following March 29, 2019.
U.S. Bancorp Fund Services, LLC d/b/a U.S. Bank Global Fund Services serves as each Funds administrator. Each Fund pays the administrator a monthly fee computed at an annual rate of 0.04% of the first $1,000,000,000 of the Funds Managed Assets, 0.01% on the next $500,000,000 of Managed Assets and 0.005% on the balance of the Funds Managed Assets.
U.S. Bank, N.A. serves as the Funds custodian. Each Fund pays the custodian a monthly fee computed at an annual rate of 0.004% of the Funds U.S. Dollar-denominated assets and 0.015% of the Funds Canadian Dollar-denominated assets, plus portfolio transaction fees.
|
|
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
5. Income Taxes
TYG and NTG:
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting and tax purposes. Components of TYG’s and NTG’s deferred tax assets and liabilities as of August 31, 2020 are as follows:
|
|
TYG
|
|
NTG
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
Net operating loss carryforwards
|
|
$
|
—
|
|
|
$
|
53,647
|
|
Capital loss carryforwards
|
|
|
88,826,067
|
|
|
|
120,033,853
|
|
Net unrealized loss on investment securities
|
|
|
35,419,365
|
|
|
|
16,822,766
|
|
Less: Valuation Allowance
|
|
|
(64,885,824
|
)
|
|
|
(117,770,742
|
)
|
|
|
|
59,359,608
|
|
|
|
19,139,524
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
Basis reduction of investments
|
|
|
59,359,608
|
|
|
|
19,139,524
|
|
|
|
|
59,359,608
|
|
|
|
19,139,524
|
|
Total net deferred tax liability (asset)
|
|
$
|
—
|
|
|
$
|
—
|
|
At August 31, 2020, a valuation allowance on deferred tax assets was necessary because each of TYG and NTG believe that it is not more likely than not that there is an ability to realize its deferred tax assets through future taxable income. TYG and NTG have recorded valuation allowances of $64,885,824 and $117,770,742 respectively. Any adjustments to TYG’s or NTG’s estimates of future taxable income will be made in the period such determination is made.
Total income tax expense for each of TYG and NTG differs from the amount computed by applying the federal statutory income tax rate of 21% to net investment loss and net realized and unrealized gains (losses) on investments for the period ended August 31, 2020, as follows:
|
|
TYG
|
|
NTG
|
Application of statutory income tax rate
|
|
$
|
(150,763,881
|
)
|
|
$
|
(106,150,756
|
)
|
State income taxes, net of federal tax effect
|
|
|
(16,584,027
|
)
|
|
|
(10,210,691
|
)
|
Permanent differences
|
|
|
985,256
|
|
|
|
714,598
|
|
Rate change on capital loss carryback
|
|
|
(12,104,004
|
)
|
|
|
—
|
|
Change in valuation allowance
|
|
|
64,885,824
|
|
|
|
117,770,742
|
|
Total income tax expense (benefit)
|
|
$
|
(113,580,832
|
)
|
|
$
|
2,123,893
|
|
Total income taxes are being calculated by applying the federal rate plus a blended state income tax rate.
For the period ended August 31, 2020, the components of income tax expense for TYG and NTG include the following:
|
|
TYG
|
|
NTG
|
Current tax expense
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
(4,000,914
|
)
|
|
$
|
26,525,400
|
|
State
|
|
|
6,892,239
|
|
|
|
3,490,978
|
|
Total current tax expense
|
|
|
2,891,325
|
|
|
|
30,016,378
|
|
Deferred tax (benefit)
|
|
|
|
|
|
|
|
|
Federal
|
|
|
(104,929,871
|
)
|
|
|
(25,444,926
|
)
|
State (net of federal tax effect)
|
|
|
(11,542,286
|
)
|
|
|
(2,447,559
|
)
|
Total deferred tax (benefit)
|
|
|
(116,472,157
|
)
|
|
|
(27,892,485
|
)
|
Total income tax expense (benefit), net
|
|
$
|
(113,580,832
|
)
|
|
$
|
2,123,893
|
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
As of November 30, 2019, NTG had net operating losses for federal income tax purposes of approximately $1,300,000, which may be carried forward for 20 years. If not utilized, these losses will expire in the years ending November 30, 2033 through 2038. As of November 30, 2019, NTG had capital loss carryforwards of approximately $26,900,000, which may be carried forward for 5 years. If not utilized, these capital losses will expire in the year ending November 30, 2024. Such estimate is subject to revision upon receipt of the 2019 tax reporting information from the individual MLPs. For corporations, capital losses can only be used to offset capital gains and cannot be used to offset ordinary income. The amount of deferred tax asset for net operating losses and capital loss carryforwards at August 31, 2020 includes amounts for the period from December 1, 2019 through August 31, 2020. As of November 30, 2019, NTG had $1,412,445 of AMT credits available, which may be utilized against future tax liabilities. AMT credit carryovers may be eligible for a partial refund in 2018, 2019 or 2020 and any remaining unused credit will be fully refundable in 2021. NTG is estimating it will utilize all AMT credits against its current tax liability.
TTP, NDP, TPZ and TEAF:
It is the intention of TTP, NDP, TPZ and TEAF to qualify as RICs under Subchapter M of the IRC and distribute all of its taxable income. Accordingly, no provision for federal income taxes is required in the financial statements. However, TEAF’s taxable subsidiary created to make and hold certain investments is generally subject to federal and state income taxes on its income.
As of August 31, 2020, TEAF consolidated the balance of a deferred tax expense of $12,934 related to the investment activities of its taxable subsidiary. Total income taxes are computed by applying the federal statutory rate plus a blended state income tax rate totaling 26.17%.
At August 31, 2020, a valuation allowance on deferred tax assets was not deemed necessary because TEAF believes it is more likely than not that its able to realize its deferred tax assets through future taxable income. Any adjustments to TEAF’s estimates of future taxable income will be made in the period such determination is made.
Total income tax expense for TEAF’s taxable subsidiary differs from the amount computed by applying the federal statutory income tax rate of 21% to net income for the period ended August 31, 2020, as follows:
Application of Statutory Income tax rate
|
|
$
|
4,109
|
State Income taxes, net of federal tax effect
|
|
|
1,012
|
Permanent differences
|
|
|
7,813
|
Total income tax expense
|
|
$
|
12,934
|
The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to return of capital distributions from underlying investments, wash sales, straddles, swaps, differences in the timing of recognition of gains or losses on investments and distributions in excess of current earnings. These reclassifications have no impact on net assets or results of operations. Permanent book and tax basis differences, if any, may result in reclassifications of undistributed (accumulated) net investment income (loss), undistributed (accumulated) net realized gain (loss) and additional paid-in capital.
As of November 30, 2019, the components of accumulated earnings (deficit) on a tax basis were as follows:
|
|
TTP
|
|
|
NDP
|
|
TPZ
|
|
TEAF
|
Unrealized appreciation (depreciation)
|
|
$
|
(40,841,708
|
)
|
|
|
$
|
(49,544,380
|
)
|
|
|
$
|
(5,257,348
|
)
|
|
$
|
(18,827,811
|
)
|
|
Capital loss carryfrorwards
|
|
|
(20,597,807
|
)
|
|
|
|
(110,941,585
|
)
|
|
|
|
—
|
|
|
|
(7,332,247
|
)
|
|
Undistributed ordinary income
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Other temporary differences
|
|
|
(156,156
|
)
|
(1)
|
|
|
(571,151
|
)
|
(2)
|
|
|
(11,223
|
)
|
|
|
(501,000
|
)
|
(3)
|
Accumulated earnings (deficit)
|
|
$
|
(61,595,671
|
)
|
|
|
$
|
(161,057,116
|
)
|
|
|
$
|
(5,268,571
|
)
|
|
$
|
(26,661,058
|
)
|
|
(1)
|
Primarily related to losses deferred under straddle regulations per IRC Sec. 1092 and dividends payable.
|
(2)
|
Primarily related to late year loss deferral.
|
(3)
|
Primarily related to expenses of TEAF’s taxable subsidiary and losses deferred under straddle regulations per IRC Sec. 1092.
|
As of November 30, 2019, TTP, NDP and TEAF had short-term capital loss carryforwards of approximately $780,000, $30,750,000 and $7,350,000 respectively, and TTP and NDP had long-term capital loss carryforwards of approximately $19,820,000 and $80,200,000 respectively, which may be carried forward for an unlimited period under the Regulated Investment Company Modernization Act of 2010. To the extent future net capital gains are realized, those gains will be offset by any unused capital loss carryforwards. Capital loss carryforwards will retain their character as either short-term or long-term capital losses. Thus, such losses must be used first to offset gains of the same character; for example, long-term loss carryforwards will first offset long-term gains, before they can be used to offset short-term gains.
In order to meet certain excise tax distribution requirements, TTP, NDP, TPZ and TEAF are required to measure and distribute annually net capital gains realized during a twelve month period ending October 31 and net investment income earned during a twelve month period ending December 31. In connection with this, TTP, NDP, TPZ and TEAF are permitted for tax purposes to defer into their next fiscal year, November 30, 2019, For the taxable year ended November 30, 2019, TTP, TPZ and TEAF do not plan to defer any losses. NDP plans to defer, on a tax basis, late year ordinary losses of approximately $571,000.
|
|
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
As of August 31, 2020, the aggregate cost of investments, aggregate gross unrealized appreciation and aggregate gross unrealized depreciation on a federal income tax basis were as follows:
|
|
TYG
|
|
NTG
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
Tax cost of investments
|
|
$
|
316,146,100
|
|
|
$
|
193,355,868
|
|
|
$
|
90,864,252
|
|
|
$
|
45,898,773
|
|
|
$
|
120,197,365
|
|
|
$
|
236,083,527
|
|
Gross unrealized appreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of investments
|
|
$
|
114,647,004
|
|
|
$
|
32,977,333
|
|
|
$
|
2,696,729
|
|
|
$
|
2,511,655
|
|
|
$
|
5,607,803
|
|
|
$
|
16,918,695
|
|
Gross unrealized depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of investments
|
|
|
(34,083,830
|
)
|
|
|
(14,679,480
|
)
|
|
|
(22,243,331
|
)
|
|
|
(14,820,004
|
)
|
|
|
(15,037,208
|
)
|
|
|
(18,444,369
|
)
|
Net unrealized appreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(depreciation) of investments
|
|
$
|
80,563,174
|
|
|
$
|
18,297,853
|
|
|
$
|
(19,546,602
|
)
|
|
$
|
(12,308,349
|
)
|
|
$
|
(9,429,405
|
)
|
|
$
|
(1,525,674
|
)
|
6. Restricted Securities
Certain of the Funds’ investments are restricted and are valued as determined in accordance with fair value procedures, as more fully described in Note 2. The following table shows the principal amount or shares, acquisition date(s), acquisition cost, fair value and the percent of net assets which the securities comprise at August 31, 2020.
TYG:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
as Percent
|
Investment Security
|
|
Investment Type
|
|
Amount/Shares
|
|
Acquisition Date(s)
|
|
Acquisition Cost
|
|
Fair Value
|
|
of Net Assets
|
Sunnova Energy Intl Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.750%
|
|
Convertible Bond
|
|
$
|
2,614,000
|
|
5/14/20
|
|
$
|
2,614,000
|
|
$
|
4,703,344
|
|
|
1.6
|
%
|
|
Altus Midstream Company,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.000%
|
|
Preferred Stock
|
|
|
10,427
|
|
06/12/19-5/14/20
|
|
|
10,427,244
|
|
|
11,888,840
|
|
|
4.0
|
|
|
Targa Resources Corp.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.500%
|
|
Preferred Stock
|
|
|
21,758
|
|
03/16/16
|
|
|
18,397,248
|
|
|
21,100,911
|
|
|
7.2
|
|
|
TK NYS Solar Holdco, LLC
|
|
Private Investment
|
|
|
N/A
|
|
08/18/17-08/19/19
|
|
|
53,206,470
|
|
|
10,803,401
|
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
$
|
84,644,962
|
|
$
|
48,496,496
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NTG:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
as Percent
|
Investment Security
|
|
Investment Type
|
|
Amount/Shares
|
|
Acquisition Date(s)
|
|
Acquisition Cost
|
|
Fair Value
|
|
of Net Assets
|
Sunnova Energy Intl Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.750%
|
|
Convertible Bond
|
|
$
|
1,820,000
|
|
5/14/20
|
|
$
|
1,820,000
|
|
$
|
3,274,708
|
|
|
2.3
|
%
|
|
Altus Midstream Company,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.000%
|
|
Preferred Stock
|
|
|
7,456
|
|
06/12/19-5/14/20
|
|
|
7,455,805
|
|
|
8,500,810
|
|
|
6.0
|
|
|
Targa Resources Corp.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.500%
|
|
Preferred Stock
|
|
|
12,252
|
|
03/16/16
|
|
|
10,359,550
|
|
|
11,881,990
|
|
|
8.4
|
|
|
|
|
|
|
|
|
|
|
|
$
|
19,635,355
|
|
$
|
23,657,508
|
|
|
16.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TTP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as Percent
|
Investment Security
|
|
Investment Type
|
|
Shares
|
|
Acquisition Date(s)
|
|
Acquisition Cost
|
|
Fair Value
|
|
of Net Assets
|
Altus Midstream Company,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.000%
|
|
Preferred Stock
|
|
|
544
|
|
06/12/19-5/14/20
|
|
$
|
553,926
|
|
$
|
631,565
|
|
|
1.3
|
%
|
|
Targa Resources Corp.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.500%
|
|
Preferred Stock
|
|
|
2,108
|
|
03/16/16
|
|
|
1,866,506
|
|
|
2,044,338
|
|
|
4.4
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,420,432
|
|
$
|
2,675,903
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NDP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
as Percent
|
Investment Security
|
|
Investment Type
|
|
|
Shares
|
|
Acquisition Date
|
|
Acquisition Cost
|
|
Fair Value
|
|
of Net Assets
|
Targa Resources Corp.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.500%
|
|
Preferred Stock
|
|
|
1,997
|
|
03/16/16
|
|
$
|
1,668,542
|
|
$
|
1,936,691
|
|
|
6.7
|
%
|
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
TPZ:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
as Percent
|
Investment Security
|
|
Investment Type
|
|
Amount/Shares
|
|
Acquisition Date(s)
|
|
Acquisition Cost
|
|
Fair Value
|
|
of Net Assets
|
Ascent Resources Utica Holdings, LLC,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.000%, 04/01/2022*
|
|
Corporate Bond
|
|
$
|
1,302,000
|
|
08/27/18
|
|
$
|
1,367,073
|
|
$
|
1,217,370
|
|
|
1.4
|
%
|
|
Blue Racer Midstream, LLC,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.625%, 07/15/2026*
|
|
Corporate Bond
|
|
$
|
5,900,000
|
|
6/18/18-02/05/19
|
|
|
5,925,565
|
|
|
5,192,000
|
|
|
6.1
|
|
|
Duquesne Light Holdings, Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.900%, 12/01/2021*
|
|
Corporate Bond
|
|
$
|
2,000,000
|
|
11/18/11-12/05/11
|
|
|
2,013,935
|
|
|
2,109,294
|
|
|
2.5
|
|
|
Hess Corporation,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.625%, 02/15/2026*
|
|
Corporate Bond
|
|
$
|
4,160,000
|
|
07/19/18-08/06/18
|
|
|
4,185,905
|
|
|
4,328,230
|
|
|
5.1
|
|
|
Rockies Express Pipeline LLC,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.950%, 07/15/2029*
|
|
Corporate Bond
|
|
$
|
3,000,000
|
|
04/12/19
|
|
|
3,002,585
|
|
|
3,015,000
|
|
|
3.5
|
|
|
Ruby Pipeline, LLC,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.000%, 04/01/2022*
|
|
Corporate Bond
|
|
$
|
1,022,727
|
|
09/17/12
|
|
|
1,041,087
|
|
|
912,784
|
|
|
1.1
|
|
|
Southern Star Central.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.125%, 07/15/2022*
|
|
Corporate Bond
|
|
$
|
1,642,000
|
|
06/17/14
|
|
|
3,004,823
|
|
|
1,640,083
|
|
|
1.9
|
|
|
Tallgrass Energy LP,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.500%, 01/15/2028*
|
|
Corporate Bond
|
|
$
|
3,250,000
|
|
09/24/18-02/06/19
|
|
|
3,256,210
|
|
|
2,973,750
|
|
|
3.5
|
|
|
Sunnova Energy Intl Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.750%, 04/30/2025
|
|
Convertible Bond
|
|
$
|
524,000
|
|
05/14/20
|
|
|
524,000
|
|
|
942,828
|
|
|
1.1
|
|
|
Altus Midstream Company,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.000%
|
|
Preferred Stock
|
|
|
483
|
|
06/12/19-05/14/20
|
|
|
483,100
|
|
|
550,810
|
|
|
0.7
|
|
|
Targa Resources Corp.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.500%
|
|
Preferred Stock
|
|
|
1,685
|
|
03/16/16
|
|
|
1,424,734
|
|
|
1,634,113
|
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
$
|
26,229,017
|
|
$
|
24,516,262
|
|
|
28.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEAF:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
as Percent
|
Investment Security
|
|
Investment Type
|
|
Amount/Shares
|
|
Acquisition Date(s)
|
|
Acquisition Cost
|
|
Fair Value
|
|
of Net Assets
|
Antero Midstream Partners LP,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.750%, 01/15/2028*
|
|
Corporate Bond
|
|
$
|
3,750,000
|
|
10/31/19-11/19/19
|
|
$
|
3,093,750
|
|
$
|
3,346,875
|
|
|
1.6
|
%
|
|
Blue Racer Midstream, LLC,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.625%, 07/15/2026*
|
|
Corporate Bond
|
|
$
|
3,000,000
|
|
03/29/19
|
|
|
3,075,000
|
|
|
2,640,000
|
|
|
1.3
|
|
|
Grace Commons Property,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.000%, 10/31/2023*
|
|
Corporate Bond
|
|
$
|
1,825,000
|
|
06/17/19
|
|
|
1,825,000
|
|
|
1,825,000
|
|
|
0.9
|
|
|
Grace Commons Property,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.000%, 10/31/2021*
|
|
Corporate Bond
|
|
$
|
3,650,000
|
|
06/17/19
|
|
|
3,650,000
|
|
|
3,650,000
|
|
|
1.8
|
|
|
Realco Perry Hall MD LLC/OPCO,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.000%, 10/01/2024*
|
|
Corporate Bond
|
|
$
|
2,280,000
|
|
01/01/19
|
|
|
2,280,000
|
|
|
1,550,389
|
|
|
0.7
|
|
|
Targa Resources Corp.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.500%
|
|
Preferred Stock
|
|
|
4,000
|
|
03/16/16
|
|
|
4,300,000
|
|
|
3,879,200
|
|
|
1.9
|
|
|
Altus Midstream Company,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.000%
|
|
Preferred Stock
|
|
|
4,294
|
|
06/12/19-05/14/20
|
|
|
4,293,985
|
|
|
4,895,830
|
|
|
2.4
|
|
|
Mexico Pacific Limited LLC (MPL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series A
|
|
Private Investment
|
|
|
88,889
|
|
10/23/19
|
|
|
2,000,000
|
|
|
1,983,904
|
|
|
0.9
|
|
|
Renewable Holdco, LLC
|
|
Private Investment
|
|
|
N/A
|
|
07/25/19-8/31/20
|
|
|
16,661,888
|
|
|
11,996,581
|
|
|
5.8
|
|
|
Renewable Holdco I, LLC
|
|
Private Investment
|
|
|
N/A
|
|
09/09/19
|
|
|
26,526,217
|
|
|
24,738,352
|
|
|
12.0
|
|
|
Renewable Holdco II, LLC
|
|
Private Investment
|
|
|
N/A
|
|
10/15/19-03/06/20
|
|
|
4,869,348
|
|
|
4,880,855
|
|
|
2.4
|
|
|
Saturn Solar Bermuda1 Ltd.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.000%, 06/30/2020
|
|
Construction Note
|
|
$
|
3,510,000
|
|
05/24/19-07/03/19
|
|
|
3,770,670
|
|
|
3,522,285
|
|
|
1.7
|
|
|
Sunnova Energy Intl Inc.,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.750%, 04/30/2025
|
|
Convertible Bond
|
|
$
|
2,197,000
|
|
05/14/20
|
|
|
2,197,000
|
|
|
3,953,040
|
|
|
1.9
|
|
|
|
|
|
|
|
|
|
|
|
$
|
81,972,510
|
|
$
|
72,862,311
|
|
|
35.3
|
%
|
|
*
|
Security is eligible for resale under Rule 144A under the 1933 Act.
|
|
|
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
7. Affiliated Company Transactions
A summary of the transactions in affiliated companies during the period ended August 31, 2020 is as follows:
TYG:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8/31/20
|
|
|
|
|
Net Change
|
|
|
11/30/19
|
|
Gross
|
|
Gross
|
|
Realized
|
|
Distributions
|
|
Share
|
|
8/31/20
|
|
in Unrealized
|
Investment Security
|
|
Share Balance
|
|
Additions
|
|
Reductions
|
|
Gain/(Loss)
|
|
Received
|
|
Balance
|
|
Value
|
|
Depreciation
|
TK NYS Solar Holdco, LLC
|
|
N/A
|
|
|
$ —
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
275,000
|
|
N/A
|
|
$
|
10,803,401
|
|
$
|
(3,014,690
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEAF:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8/31/20
|
|
|
|
|
Net Change
|
|
|
11/30/19
|
|
Gross
|
|
Gross
|
|
Realized
|
|
Distributions
|
|
Share
|
|
8/31/20
|
|
in Unrealized
|
Investment Security
|
|
Share Balance
|
|
Additions
|
|
Reductions
|
|
Gain/(Loss)
|
|
Received
|
|
Balance
|
|
Value
|
|
Depreciation
|
Renewable Holdco, LLC
|
|
N/A
|
|
$
|
4,830,319
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,194,453
|
|
N/A
|
|
$
|
11,996,581
|
|
$
|
(5,331,548
|
)
|
Renewable Holdco I, LLC
|
|
N/A
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
500,000
|
|
N/A
|
|
$
|
24,738,352
|
|
$
|
(661,720
|
)
|
Renewable Holdco II, LLC
|
|
N/A
|
|
$
|
3,948,762
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
N/A
|
|
$
|
4,880,855
|
|
$
|
(55,811
|
)
|
Total
|
|
|
|
$
|
8,779,081
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,694,453
|
|
|
|
$
|
41,615,788
|
|
$
|
(6,049,079
|
)
|
8. Investment Transactions
For the period ended August 31, 2020, the amount of security transactions (other than U.S. government securities and short-term investments), is as follows:
|
|
TYG
|
|
NTG
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
Purchases
|
|
$
|
233,347,049
|
|
$
|
164,752,764
|
|
$
|
34,076,375
|
|
$
|
33,403,427
|
|
$
|
33,640,306
|
|
$
|
129,658,576
|
Sales
|
|
$
|
774,511,719
|
|
$
|
589,398,317
|
|
$
|
79,667,391
|
|
$
|
55,534,592
|
|
$
|
62,547,799
|
|
$
|
132,609,483
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
9. Senior Notes
TYG, NTG and TTP each have issued private senior notes (collectively, the “Notes”), which are unsecured obligations and, upon liquidation, dissolution or winding up of a Fund, will rank: (1) senior to all of the Fund’s outstanding preferred shares, if any; (2) senior to all of the Fund’s outstanding common shares; (3) on parity with any unsecured creditors of the Fund and any unsecured senior securities representing indebtedness of the Fund and (4) junior to any secured creditors of the Fund. Holders of the Notes are entitled to receive periodic cash interest payments until maturity. The Notes are not listed on any exchange or automated quotation system.
The Notes are redeemable in certain circumstances at the option of a Fund, subject to payment of any applicable make-whole amounts or early redemption premiums. The Notes for a Fund are also subject to a mandatory redemption if the Fund fails to meet asset coverage ratios required under the 1940 Act or the rating agency guidelines if such failure is not waived or cured. At August 31, 2020, each of TYG, NTG and TTP were in compliance with asset coverage covenants and basic maintenance covenants for its senior notes.
Details of each Fund’s outstanding Notes, including estimated fair value, as of August 31, 2020 are included below. The estimated fair value of each series of fixed-rate Notes was calculated, for disclosure purposes, by discounting future cash flows by a rate equal to the current U.S. Treasury rate with an equivalent maturity date, plus either 1) the spread between the interest rate on recently issued debt and the U.S. Treasury rate with a similar maturity date or 2) if there has not been a recent debt issuance, the spread between the AAA corporate finance debt rate and the U.S. Treasury rate with an equivalent maturity date plus the spread between the fixed rates of the Notes and the AAA corporate finance debt rate. The estimated fair value of floating rate Notes approximates the carrying amount because the interest rate fluctuates with changes in interest rates available in the current market. The estimated fair values in the following tables are Level 2 valuations within the fair value hierarchy.
TYG:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional
|
|
Estimated
|
Series
|
|
Maturity Date
|
|
Interest Rate
|
|
Payment Frequency
|
|
Amount
|
|
Fair Value
|
Series O
|
|
September 27, 2020
|
|
3.78%
|
|
Semi-Annual
|
|
$
|
4,840,000
|
|
$
|
4,928,171
|
Series Z
|
|
June 14, 2021
|
|
2.98%
|
|
Semi-Annual
|
|
|
4,033,333
|
|
|
4,123,641
|
Series R
|
|
January 22, 2022
|
|
3.77%
|
|
Semi-Annual
|
|
|
8,066,667
|
|
|
8,414,671
|
Series DD
|
|
September 27, 2022
|
|
4.21%
|
|
Semi-Annual
|
|
|
4,194,667
|
|
|
4,550,749
|
Series II
|
|
December 18, 2022
|
|
3.22%
|
|
Semi-Annual
|
|
|
3,226,667
|
|
|
3,414,226
|
Series K
|
|
December 19, 2022
|
|
3.87%
|
|
Semi-Annual
|
|
|
3,226,667
|
|
|
3,465,653
|
Series S
|
|
January 22, 2023
|
|
3.99%
|
|
Semi-Annual
|
|
|
3,226,667
|
|
|
3,472,014
|
Series P
|
|
September 27, 2023
|
|
4.39%
|
|
Semi-Annual
|
|
|
3,872,000
|
|
|
4,345,759
|
Series FF
|
|
November 20, 2023
|
|
4.16%
|
|
Semi-Annual
|
|
|
3,266,667
|
|
|
3,589,775
|
Series JJ
|
|
December 18, 2023
|
|
3.34%
|
|
Semi-Annual
|
|
|
6,453,333
|
|
|
6,991,082
|
Series T
|
|
January 22, 2024
|
|
4.16%
|
|
Semi-Annual
|
|
|
8,066,667
|
|
|
8,956,402
|
Series L
|
|
December 19, 2024
|
|
3.99%
|
|
Semi-Annual
|
|
|
6,453,333
|
|
|
7,305,597
|
Series AA
|
|
June 14, 2025
|
|
3.48%
|
|
Semi-Annual
|
|
|
3,226,667
|
|
|
3,614,173
|
Series NN
|
|
June 14, 2025
|
|
3.20%
|
|
Semi-Annual
|
|
|
9,680,000
|
|
|
10,711,846
|
Series KK
|
|
December 18, 2025
|
|
3.53%
|
|
Semi-Annual
|
|
|
3,226,667
|
|
|
3,651,682
|
Series OO
|
|
April 9, 2026
|
|
3.27%
|
|
Semi-Annual
|
|
|
9,680,000
|
|
|
10,924,366
|
Series PP
|
|
September 25, 2027
|
|
3.33%
|
|
Semi-Annual
|
|
|
8,066,667
|
|
|
9,294,227
|
|
|
|
|
|
|
|
|
$
|
92,766,667
|
|
$
|
101,754,034
|
TYG’s Series LL Notes, with a notional amount of $20,000,000 and a floating rate based on 3-month LIBOR plus 1.20% were prepaid in full on December 4, 2019.
On April 13, 2020, TYG prepaid $8,466,667 of Series Y Notes, $10,160,000 of Series O Notes, $8,466,667 of Series Z Notes, $16,933,333 of Series R Notes, $8,805,333 of Series DD Notes, $6,773,333 of Series II Notes, $6,773,333 of Series K Notes, $6,773,333 of Series S Notes, $8,128,000 of Series P Notes, $6,773,333 of Series FF Notes, $13,546,667 of Series JJ Notes, $16,933,333 of Series T Notes, $13,546,667 of Series L Notes, $6,773,333 of Series AA Notes, $20,320,000 of Series NN Notes, $6,773,333 of Series KK Notes, $20,320,000 of Series OO Notes and $16,933,333 of Series PP Notes subject to a 1% prepayment premium.
TYG’s Series Y Notes with a notional amount of $4,033,333 and a fixed interest rate of 2.77% were paid in full upon maturity on June 14, 2020.
|
|
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
NTG:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional
|
|
Estimated
|
Series
|
|
Maturity Date
|
|
Interest Rate
|
|
Payment Frequency
|
|
Amount
|
|
Fair Value
|
Series D
|
|
December 15, 2020
|
|
4.29%
|
|
|
Quarterly
|
|
|
$
|
22,879,144
|
|
$
|
23,308,451
|
Series J
|
|
April 17, 2021
|
|
3.72%
|
|
|
Semi-Annual
|
|
|
|
6,128,342
|
|
|
6,321,428
|
Series M
|
|
April 17, 2021
|
|
3.06%
|
|
|
Semi-Annual
|
|
|
|
2,042,781
|
|
|
2,093,526
|
Series P
|
|
October 16, 2023
|
|
3.79%
|
|
|
Semi-Annual
|
|
|
|
2,979,055
|
|
|
3,279,964
|
Series Q
|
|
October 16, 2025
|
|
3.97%
|
|
|
Semi-Annual
|
|
|
|
2,234,291
|
|
|
2,588,259
|
Series R
|
|
October 16, 2026
|
|
4.02%
|
|
|
Semi-Annual
|
|
|
|
1,936,386
|
|
|
2,288,864
|
|
|
|
|
|
|
|
|
|
|
$
|
38,200,000
|
|
$
|
39,880,492
|
NTG’s Series L Notes, with a notional amount of $20,000,000 and a floating rate based on 3-month LIBOR plus 1.45% were prepaid in full on December 4, 2019.
On March 31, 2020, NTG prepaid $5,416,667 of Series P Notes, $4,062,500 of Series Q Notes, $3,520,833 of Series R Notes, $32,000,000 of Series N Notes and $25,000,000 of Series O Notes subject to a 2% prepayment premium.
On April 14, 2020, NTG prepaid $89,120,856 of Series D Notes, $23,871,658 of Series J Notes, $7,957,219 of Series M Notes, $11,604,278 of Series P Notes, $8,703,209 of Series Q Notes and $7,542,781 of Series R Notes subject to a 1% prepayment premium.
TTP:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional
|
|
Estimated
|
Series
|
|
Maturity Date
|
|
Interest Rate
|
|
Payment Frequency
|
|
Amount
|
|
Fair Value
|
Series F
|
|
December 12, 2020
|
|
3.01%
|
|
Semi-Annual
|
|
$
|
3,942,857
|
|
$
|
3,992,248
|
Series D
|
|
December 15, 2021
|
|
4.08%
|
|
Semi-Annual
|
|
|
10,514,286
|
|
|
11,028,269
|
Series H
|
|
December 13, 2024
|
|
3.97%
|
|
Semi-Annual
|
|
|
3,942,857
|
|
|
4,460,902
|
|
|
|
|
|
|
|
|
$
|
18,400,000
|
|
$
|
19,481,419
|
On March 30, 2020, TTP prepaid $6,000,000 of Series G Notes at par.
On April 14, 2020, TTP prepaid $2,057,143 of Series F Notes, $5,485,714 of Series D Notes and $2,057,143 of Series H Notes subject to a 1% prepayment premium.
10. Mandatory Redeemable Preferred Stock
TYG, NTG and TTP each have issued and outstanding MRP Stock at May 31, 2020. The MRP Stock has rights determined by the Board of Directors. Except as otherwise indicated in the Funds’ Charter or Bylaws, or as otherwise required by law, the holders of MRP Stock have voting rights equal to the holders of common stock (one vote per MRP share) and will vote together with the holders of shares of common stock as a single class except on matters affecting only the holders of preferred stock or the holders of common stock. The 1940 Act requires that the holders of any preferred stock (including MRP Stock), voting separately as a single class, have the right to elect at least two directors at all times.
Under the 1940 Act, a fund may not declare dividends or make other distributions on shares of common stock or purchases of such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding MRP Stock would be less than 200%. The MRP Stock is also subject to a mandatory redemption if a Fund fails to meet an asset coverage ratio of at least 225% as determined in accordance with the 1940 Act or a rating agency basic maintenance amount if such failure is not waived or cured. At August 31, 2020, each of TYG, NTG and TTP were in compliance with asset coverage covenants and basic maintenance covenants for its MRP Stock.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
Details of each Fund’s outstanding MRP Stock, including estimated fair value, as of August 31, 2020 is included below. The estimated fair value of each series of TYG, NTG and TTP MRP Stock was calculated for disclosure purposes by discounting future cash flows at a rate equal to the current U.S. Treasury rate with an equivalent maturity date, plus either 1) the spread between the interest rate on recently issued preferred stock and the U.S. Treasury rate with a similar maturity date or 2) if there has not been a recent preferred stock issuance, the spread between the AA corporate finance debt rate and the U.S. Treasury rate with an equivalent maturity date plus the spread between the fixed rates of the MRP Stock and the AA corporate finance debt rate. The estimated fair values of each series of the TYG, NTG and TTP MRP Stock are Level 2 valuations within the fair value hierarchy.
TYG:
TYG has 65,000,000 shares of preferred stock authorized and 3,230,000 shares of MRP Stock outstanding at May 31, 2020. TYG’s MRP Stock has a liquidation value of $10.00 per share plus any accumulated but unpaid distributions, whether or not declared. Holders of the MRP D Stock and MRP E Stock are entitled to receive cash interest payments semi-annually at a fixed rate until maturity. On April 9, 2020, TYG redeemed 6,836,061 of Series D MRP Shares and 6,433,939 of Series E MRP Shares for a total liquidation preference amount of $132,700,000. TYG paid a 1% premium upon redemption. The TYG MRP Stock is not listed on any exchange or automated quotation system.
|
|
|
|
|
|
|
|
Aggregate Liquidation
|
|
Estimated Fair
|
Series
|
|
Mandatory Redemption Date
|
|
Fixed Rate
|
|
Shares Outstanding
|
|
Preference
|
|
Value
|
Series D
|
|
December 17, 2021
|
|
4.01%
|
|
1,663,939
|
|
|
$
|
16,639,390
|
|
|
|
$
|
17,301,477
|
|
Series E
|
|
December 17, 2024
|
|
4.34%
|
|
1,566,061
|
|
|
|
15,660,610
|
|
|
|
|
17,551,872
|
|
|
|
|
|
|
|
3,230,000
|
|
|
$
|
32,300,000
|
|
|
|
$
|
34,853,349
|
|
TYG’s MRP Stock is redeemable in certain circumstances at the option of TYG, subject to payment of any applicable make-whole amounts.
NTG:
NTG has 10,000,000 shares of preferred stock authorized and 508,000 shares of MRP Stock outstanding at May 31, 2020. NTG’s MRP Stock has a liquidation value of $25.00 per share plus any accumulated but unpaid distributions, whether or not declared. Holders of NTG MRP Stock are entitled to receive cash interest payments each quarter at a fixed rate until maturity. On April 10, 2020, NTG redeemed 180,757 of Series C MRP Shares, 1,446,061 of Series D MRP Shares, 1,446,061 of Series E MRP Shares, 903,788 of Series F MRP Shares and 795,333 of Series G MRP Shares for a total liquidation preference amount of $119,300,000. NTG paid a 1% premium upon redemption. The NTG MRP Stock is not listed on any exchange or automated quotation system.
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Liquidation
|
|
Estimated Fair
|
Series
|
|
Mandatory Redemption Date
|
|
Fixed Rate
|
|
Shares Outstanding
|
|
Preference
|
|
Value
|
Series C
|
|
|
December 8, 2020
|
|
|
3.73%
|
|
|
19,243
|
|
|
|
$
|
481,075
|
|
|
|
$
|
487,585
|
|
Series D
|
|
|
December 8, 2022
|
|
|
4.19%
|
|
|
153,939
|
|
|
|
|
3,848,475
|
|
|
|
|
4,108,041
|
|
Series G
|
|
|
October 16, 2023
|
|
|
4.39%
|
|
|
84,667
|
|
|
|
|
2,116,675
|
|
|
|
|
2,308,672
|
|
Series E
|
|
|
December 13, 2024
|
|
|
3.78%
|
|
|
153,939
|
|
|
|
|
3,848,475
|
|
|
|
|
4,218,032
|
|
Series F
|
|
|
December 13, 2027
|
|
|
4.07%
|
|
|
96,212
|
|
|
|
|
2,405,300
|
|
|
|
|
2,779,244
|
|
|
|
|
|
|
|
|
|
|
508,000
|
|
|
|
$
|
12,700,000
|
|
|
|
$
|
13,901,574
|
|
NTG’s MRP Stock is redeemable in certain circumstances at the option of NTG, subject to payment of any applicable make-whole amounts.
TTP:
TTP has 10,000,000 shares of preferred stock authorized and 244,000 shares of MRP Stock outstanding at May 31, 2020. TTP’s MRP Stock has a liquidation value of $25.00 per share plus any accumulated but unpaid distributions, whether or not declared. Holders of TTP MRP Stock are entitled to receive cash interest payments each quarter at a fixed rate until maturity. On April 10, 2020, TTP redeemed 396,000 of Series B MRP Shares. TTP paid a 1% premium upon redemption. The TTP MRP Stock is not listed on any exchange or automated quotation system.
|
|
|
|
|
|
|
|
Aggregate Liquidation
|
|
Estimated Fair
|
Series
|
|
Mandatory Redemption Date
|
|
Fixed Rate
|
|
Shares Outstanding
|
|
Preference
|
|
Value
|
Series B
|
|
December 13, 2024
|
|
6.57%
|
|
244,000
|
|
|
$
|
6,100,000
|
|
|
|
$
|
7,425,619
|
|
TTP’s MRP Stock is redeemable in certain circumstances at the option of TTP, subject to payment of any applicable make-whole amounts.
|
|
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
11. Credit Facilities
The following table shows key terms, average borrowing activity and interest rates for the period during which the facility was utilized during the period from December 1, 2019 through August 31, 2020 as well as the principal balance and interest rate in effect at August 31, 2020 for each of the Funds’ credit facilities:
|
|
TYG
|
|
NTG
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
Lending syndicate
|
|
|
|
Bank of America,
|
|
The Bank
|
|
The Bank
|
|
The Bank
|
|
The Bank
|
agent
|
|
U.S. Bank, N.A.
|
|
N.A.
|
|
of Nova Scotia
|
|
of Nova Scotia
|
|
of Nova Scotia
|
|
of Nova Scotia
|
|
|
Unsecured,
|
|
Unsecured,
|
|
Unsecured,
|
|
Secured,
|
|
Secured,
|
|
|
|
|
revolving credit
|
|
revolving credit
|
|
revolving credit
|
|
revolving credit
|
|
revolving credit
|
|
Margin loan
|
Type of facility
|
|
facility
|
|
facility
|
|
facility
|
|
facility
|
|
facility
|
|
facility
|
Borrowing
|
|
|
|
|
|
|
|
|
|
|
|
|
capacity
|
|
$90,000,000
|
|
$65,000,000
|
|
$20,000,000
|
|
$12,000,000
|
|
$30,000,000
|
|
$45,000,000
|
|
|
|
|
|
|
364-day rolling
|
|
179-day rolling
|
|
179-day rolling
|
|
|
Maturity date
|
|
June 12, 2021
|
|
June 12, 2021
|
|
evergreen
|
|
evergreen
|
|
evergreen
|
|
N/A
|
|
|
1-month LIBOR
|
|
1-month LIBOR
|
|
1-month LIBOR
|
|
1-month LIBOR
|
|
1-month LIBOR
|
|
1-month LIBOR
|
Interest rate
|
|
plus 1.10%
|
|
plus 1.10%
|
|
plus 1.125%
|
|
plus 0.80%
|
|
plus 0.80%
|
|
plus 0.80%
|
Non-usage fee
|
|
0.15%-0.25%(1)
|
|
0.15%-0.25%(2)
|
|
0.15%
|
|
0.20%(3)
|
|
0.20%(4)
|
|
0.20%(5)
|
|
For the period ended August 31, 2020:
|
Average principal
|
|
|
|
|
|
|
|
|
|
|
|
|
balance
|
|
$63,600,000
|
|
$67,100,000
|
|
$9,600,000
|
|
$12,100,000
|
|
$35,200,000
|
|
$30,700,000
|
Average interest
|
|
|
|
|
|
|
|
|
|
|
|
|
rate
|
|
2.79%
|
|
2.73%
|
|
2.74%
|
|
1.62%
|
|
2.90%
|
|
1.62%
|
|
As of August 31, 2020:
|
Principal balance
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding
|
|
$—
|
|
$—
|
|
$—
|
|
$4,400,000
|
|
$26,100,000(6)
|
|
$30,500,000
|
Interest rate
|
|
N/A
|
|
N/A
|
|
N/A
|
|
0.96%
|
|
2.87%
|
|
0.96%
|
(1)
|
Non-use fees are equal to a rate of 0.25% when the outstanding balance is below $45,000,000 and 0.15% when the outstanding balance is at least $45,000,000, but below $63,000,000. The outstanding balance will not be subject to the non-use fee when the amount outstanding is at least $63,000,000.
|
(2)
|
Non-use fees are equal to a rate of 0.25% when the outstanding balance is below $32,500,000 and 0.15% when the outstanding balance is at least $32,500,000, but below $45,500,000. The outstanding balance will not be subject to the non-use fee when the amount outstanding is at least $45,500,000.
|
(3)
|
Non-usage fee is waived if the outstanding balance on the facility is at least $8,400,000.*
|
(4)
|
Non-usage fee is waived if the outstanding balance on the facility is at least $21,000,000.
|
(5)
|
Non-usage fee is waived if the outstanding balance on the facility is at least $31,500,000.
|
(6)
|
TPZ’s credit facility allows for interest rates to be fixed on all or a portion of the outstanding balance. Amounts reflect activity on the credit facility for the period from December 1, 2019 through August 31, 2020 and include $9,000,000 of the outstanding principal balance that has a fixed rate of 3.03% through June 30, 2023 and $15,000,000 of the outstanding principal balance that has a fixed rate of 3.04% through June 30, 2024.
|
For the period from December 1, 2019 through April 2, 2020 (the date the agreement was terminated), TYG had a revolving credit facility with The Bank of Nova Scotia. The terms of the agreement provided for a $90,000,000 facility. Outstanding balances accrued interest at a variable rate equal to one-month LIBOR plus 1.20%. The average principal balance and interest rate during which this credit facility was utilized was approximately $62,200,000 and 2.83%, respectively.
Under the terms of the credit and margin facilities, the Funds must maintain asset coverage required under the 1940 Act. If a Fund fails to maintain the required coverage, it may be required to repay a portion of an outstanding balance until the coverage requirement has been met. At August 31, 2020, each Fund was in compliance with facility terms.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
12. Derivative Financial Instruments
The Funds have adopted the disclosure provisions of FASB Accounting Standard Codification 815, Derivatives and Hedging (“ASC 815”). ASC 815 requires enhanced disclosures about the Funds’ use of and accounting for derivative instruments and the effect of derivative instruments on the Funds’ results of operations and financial position. Tabular disclosure regarding derivative fair value and gain/loss by contract type (e.g., interest rate contracts, foreign exchange contracts, credit contracts, etc.) is required and derivatives accounted for as hedging instruments under ASC 815 must be disclosed separately from those that do not qualify for hedge accounting. Even though the Funds may use derivatives in an attempt to achieve an economic hedge, the Funds’ derivatives are not accounted for as hedging instruments under ASC 815 because investment companies account for their derivatives at fair value and record any changes in fair value in current period earnings.
Forward Currency Contracts
TEAF invests in derivative instruments for hedging or risk management purposes, and for short-term purposes such as maintaining market exposure pending investment of the proceeds of an offering or transitioning its portfolio between different asset classes. The Fund’s use of derivatives could enhance or decrease the cash available to the Fund for payment of distributions or interest, as the case may be. Derivatives can be illiquid, may disproportionately increase losses and have a potentially large negative impact on the Fund’s performance. Derivative transactions, including options on securities and securities indices and other transactions in which the Fund may engage (such as forward currency transactions, futures contracts and options thereon and total return swaps), may subject the Fund to increased risk of principal loss due to unexpected movements in stock prices, changes in stock volatility levels, interest rates and foreign currency exchange rates and imperfect correlations between the Fund’s securities holdings and indices upon which derivative transactions are based. The Fund also will be subject to credit risk with respect to the counterparties to any OTC derivatives contracts the Fund enters into.
Interest Rate Swap Contracts
TYG and TPZ have each entered into interest rate swap contracts in an attempt to protect it from increasing interest expense on its leverage resulting from increasing interest rates. A decline in interest rates may result in a decline in the value of the swap contracts, which may result in a decline in the net assets of TYG and TPZ. At the time the interest rate swap contracts reach their scheduled termination, there is a risk that TYG and TPZ will not be able to obtain a replacement transaction, or that the terms of the replacement would not be as favorable as on the expiring transaction. In addition, if TYG or TPZ is required to terminate any swap contract early due to a decline in net assets below a threshold amount or failing to maintain a required 300% asset coverage of the liquidation value of the outstanding debt, then TYG or TPZ could be required to make a payment to the extent of any net unrealized depreciation of the terminated swaps, in addition to redeeming all or some of its outstanding debt. TYG and TPZ each segregate a portion of its assets as collateral for the amount of any net liability of its interest rate swap contracts.
TYG and TPZ are exposed to credit risk on the interest rate swap contracts if the counterparty should fail to perform under the terms of the interest rate swap contracts. The amount of credit risk is limited to the net appreciation of the interest rate swap contracts, if any, as no collateral is pledged by the counterparty. In addition, if the counterparty to the interest rate swap contracts defaults, the Fund would incur a loss in the amount of the receivable and would not receive amounts due from the counterparty to offset the interest payments on the Fund’s leverage.
The average notional amount of all open swap agreements for TYG and TPZ for the period from December 1, 2019 through August 31, 2020 was $10,000,000 and $2,716,364, respectively.
The following table presents TYG’s interest rate swap contract, which is subject to a netting agreement, on a gross and a net basis at August 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Assets & Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Gross Amounts
|
|
Net Amounts of
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Amounts
|
|
Offset in the
|
|
Assets Presented in
|
|
|
|
|
|
|
|
|
|
|
|
|
of Recognized
|
|
Statements of
|
|
the Statements of
|
|
Financial
|
|
Cash Collateral
|
|
|
|
|
Description
|
|
Liabilities
|
|
Assets & Liabilities
|
|
Assets & Liabilities
|
|
Instruments
|
|
Received
|
|
Net Amount
|
TYG: Interest Rate Swap Contracts
|
|
|
$
|
245,527
|
|
|
|
$
|
—
|
|
|
|
$
|
(245,527
|
)
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(245,527
|
)
|
|
|
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
Written Call Options
Transactions in written option contracts for TYG, NTG, TTP, NDP and TEAF for the period from December 1, 2019 through August 31, 2020 are as follows:
|
|
TYG
|
|
NTG
|
|
TTP
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
Contracts
|
|
Premium
|
|
Contracts
|
|
Premium
|
|
Contracts
|
|
Premium
|
Options outstanding at November 30, 2019
|
|
3,700
|
|
|
$
|
127,576
|
|
|
3,600
|
|
|
$
|
115,174
|
|
|
5,043
|
|
|
$
|
225,578
|
|
Options written
|
|
14,750
|
|
|
|
122,200
|
|
|
12,380
|
|
|
|
100,832
|
|
|
14,214
|
|
|
|
544,579
|
|
Options closed*
|
|
(1,053
|
)
|
|
|
(37,877
|
)
|
|
(725
|
)
|
|
|
(26,079
|
)
|
|
(13,940
|
)
|
|
|
(527,297
|
)
|
Options exercised
|
|
(1,197
|
)
|
|
|
(52,056
|
)
|
|
(825
|
)
|
|
|
(35,875
|
)
|
|
(1,079
|
)
|
|
|
(52,886
|
)
|
Options expired
|
|
(16,200
|
)
|
|
|
(159,843
|
)
|
|
(14,430
|
)
|
|
|
(154,052
|
)
|
|
(4,238
|
)
|
|
|
(189,974
|
)
|
Options outstanding at August 31, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
NDP
|
|
TEAF
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts
|
|
Premium
|
|
Contracts
|
|
Premium
|
|
|
|
|
|
|
|
Options outstanding at November 30, 2019
|
|
24,139
|
|
|
$
|
534,008
|
|
|
17,184
|
|
|
$
|
570,114
|
|
|
|
|
|
|
|
|
Options written
|
|
82,077
|
|
|
|
1,394,004
|
|
|
67,979
|
|
|
|
2,049,477
|
|
|
|
|
|
|
|
|
Options closed*
|
|
(70,988
|
)
|
|
|
(1,390,773
|
)
|
|
(42,713
|
)
|
|
|
(1,451,785
|
)
|
|
|
|
|
|
|
|
Options exercised
|
|
(16,616
|
)
|
|
|
(284,531
|
)
|
|
(15,709
|
)
|
|
|
(274,427
|
)
|
|
|
|
|
|
|
|
Options expired
|
|
(18,612
|
)
|
|
|
(252,708
|
)
|
|
(17,355
|
)
|
|
|
(563,131
|
)
|
|
|
|
|
|
|
|
Options outstanding at August 31, 2020
|
|
—
|
|
|
$
|
—
|
|
|
9,386
|
|
|
$
|
330,248
|
|
|
|
|
|
|
|
|
*
|
The aggregate cost of closing written option contracts was $489,005 for TYG, $137,047 for NTG, $530,270 for TTP, $193,939 for NDP, and $1,468,686 for TEAF, resulting in net realized gain (loss) of $(99,170), $(68,280), $(2,974), $1,196,834 and $440,891 for TYG, NTG, TTP, NDP and TEAF, respectively.
|
The following table presents the types and fair value of derivatives by location as presented on the Statements of Assets & Liabilities at August 31, 2020:
|
|
Assets/(Liabilities)
|
Derivatives not accounted for
|
|
|
|
|
|
|
as hedging instruments under ASC 815
|
|
Location
|
|
Fair Value
|
TYG: Interest rate swap contracts
|
|
Interest rate swap contracts
|
|
$
|
(245,527
|
)
|
TEAF: Written equity call options
|
|
Options written, at fair value
|
|
$
|
(165,163
|
)
|
The following table presents the effect of derivatives on the Statements of Operations for the period ended August 31, 2020:
|
|
|
|
|
|
|
|
Net Unrealized
|
|
|
|
|
Net Realized
|
|
Appreciation
|
Derivatives not accounted for
|
|
Location of Gains (Losses)
|
|
Gain (Loss) on
|
|
(Depreciation)
|
as hedging instruments under ASC 815
|
|
on Derivatives
|
|
Derivatives
|
|
of Derivatives
|
TYG: Interest rate swap contracts
|
|
Interest rate swaps
|
|
$
|
(95,203
|
)
|
|
$
|
(83,687
|
)
|
TYG: Written equity call options
|
|
Options
|
|
$
|
64,521
|
|
|
$
|
(63,848
|
)
|
NTG: Written equity call options
|
|
Options
|
|
$
|
(252,868
|
)
|
|
$
|
(69,929
|
)
|
TTP: Written equity call options
|
|
Options
|
|
$
|
204,023
|
|
|
$
|
(142,140
|
)
|
NDP: Written equity call options
|
|
Options
|
|
$
|
1,449,792
|
|
|
$
|
(354,660
|
)
|
TPZ: Interest rate swap contracts
|
|
Interest rate swaps
|
|
$
|
(18,276
|
)
|
|
$
|
8,589
|
|
TEAF: Written equity call options
|
|
Options
|
|
$
|
986,278
|
|
|
$
|
(116,963
|
)
|
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
13. Basis For Consolidation
As of August 31, 2020, TYG has committed a total of $55,256,470 of equity funding to Tortoise Holdco II, LLC, a wholly-owned investment of TYG. Tortoise Holdco II, LLC wholly owns TK NYS Solar Holdco, LLC, which owns and operates renewable energy assets. TK NYS Solar Holdco, LLC acquired the commercial and industrial solar portfolio between August 2017 and November 2019. Fair value of TK NYS Solar Holdco, LLC is net of tax benefits.
TYG’s consolidated schedule of investments includes the portfolio holdings of the Fund and its subsidiary, Tortoise Holdco II, LLC. All inter-company transactions and balances have been eliminated.
As of August 31, 2020, TEAF has committed $48,057,453 to TEAF Solar Holdco, LLC, a wholly-owned investment of TEAF. TEAF Solar Holdco, LLC wholly owns each of Renewable Holdco, LLC and Renewable Holdco I, LLC, which owns and operates renewable energy assets. TEAF Solar Holdco, LLC owns a majority partnership interest in Renewable Holdco II, LLC. Renewable Holdco, LLC and Renewable Holdco II, LLC’s acquisition of the commercial and industrial solar portfolio is ongoing. Renewable Holdco I, LLC acquired the commercial and industrial solar portfolio in September 2019.
As of August 31, 2020, TEAF has provided $3,770,670 to TEAF Solar Holdco I, LLC, a wholly-owned investment of TEAF. TEAF Solar Holdco I, LLC has committed to $6,667,100 of debt funding to Saturn Solar Bermuda 1, Ltd. through a construction note. Under the terms of the note Tortoise Solar Holdco I, LLC receives cash payments monthly at an annual rate of 8%. As of August 31, 2020, $3,510,000 of the construction note had been funded.
TEAF’s consolidated schedule of investments includes the portfolio holdings of the Fund and its subsidiaries, TEAF Solar Holdco, LLC and TEAF Solar Holdco I, LLC. All inter-company transactions and balances have been eliminated.
14. Reverse Stock Split
On May 1, 2020, TYG, NTG, TTP, and NDP’s shares were adjusted to reflect a reverse stock split. The effect of this reverse stock split was to reduce the number of shares outstanding in the Funds, while maintaining each Fund’s and each stockholder’s aggregate net asset value. All historical per share information has been retroactively adjusted to reflect this reverse stock split. Set forth below are details regarding the reverse stock splits:
|
|
|
|
Net Asset Value
|
|
Net Asset Value
|
|
Shares Outstanding
|
|
Shares Outstanding
|
Fund
|
|
Rate
|
|
Before Split
|
|
After Split
|
|
Before Split
|
|
After Split
|
TYG
|
|
1-for-4
|
|
|
$
|
5.64
|
|
|
|
$
|
22.56
|
|
|
|
53,732,462
|
|
|
|
13,433,117
|
|
NTG
|
|
1-for-10
|
|
|
$
|
2.32
|
|
|
|
$
|
23.20
|
|
|
|
63,208,377
|
|
|
|
6,320,839
|
|
TTP
|
|
1-for-4
|
|
|
$
|
4.77
|
|
|
|
$
|
19.08
|
|
|
|
10,016,413
|
|
|
|
2,504,104
|
|
NDP
|
|
1-for-8
|
|
|
$
|
1.98
|
|
|
|
$
|
15.84
|
|
|
|
14,767,968
|
|
|
|
1,845,997
|
|
15. Share Repurchase Programs
On July 8, 2020, each of TYG, NTG and TTP announced a share repurchase program effective through December 31, 2020. Under the program, each of TYG, NTG and TTP may purchase, in the open market, up to $25,000,000, $12,500,000 and $5,000,000, respectively, of its outstanding common shares, if trading at a discount to NAV in excess of 10%.
|
|
|
|
|
|
|
Shares
|
|
Average
|
|
Average
|
Fund
|
|
Dollars Repurchased
|
|
Repurchased
|
|
Share Price
|
|
Discount to NAV
|
TYG
|
|
|
$
|
4,457,409.67
|
|
|
|
262,156
|
|
|
$17.00
|
|
26.1%
|
NTG
|
|
|
$
|
1,893,912.62
|
|
|
|
107,272
|
|
|
$17.66
|
|
24.5%
|
TTP
|
|
|
$
|
449,548.69
|
|
|
|
31,262
|
|
|
$14.38
|
|
25.3%
|
|
|
|
|
Notes to Financial Statements (unaudited) (continued)
|
|
16. Subsequent Events
TYG:
From the period from September 1, 2020 through the date the financial statements were issued, TYG repurchased 579,569 shares of its common stock at an average share price of $15.75 and average discount to NAV of 24.4%.
TYG has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no additional items require recognition or disclosure.
NTG:
From the period from September 1, 2020 through the date the financial statements were issued, NTG repurchased 230,802 shares of its common stock at an average share price of $15.54 and average discount to NAV of 25.6%.
NTG has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no additional items require recognition or disclosure.
TTP:
From the period from September 1, 2020 through the date the financial statements were issued, TTP repurchased 33,893 shares of its common stock at an average share price of $13.26 and average discount to NAV of 25.9%.
TTP has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no additional items require recognition or disclosure.
NDP:
NDP has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no items require recognition or disclosure.
TPZ:
On September 30, 2020, TPZ paid a distribution in the amount of $0.05 per common share, for a total of $347,567. Of this total, the dividend reinvestment amounted to $3,593.
On October 14, 2020, TPZ announced a share repurchase program effective through August 31, 2021. Under the program, TPZ may purchase, in the open market up to $5,000,000 of its outstanding common shares, if trading at a discount to NAV in excess of 10%. Through the date the financial statements were issued, TPZ has repurchased 1,700 shares of its common stock at an average share price of $8.24 per share and average discount to NAV of 29.3%.
On October 30, 2020, TPZ paid a distribution in the amount of $0.05 per common share, for a total of $347,567. Of this total, the dividend reinvestment amounted to $3,548.
TPZ has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no additional items require recognition or disclosure.
TEAF:
On September 30, 2020, TEAF paid a distribution in the amount of $0.075 per common share, for a total of $1,011,835. Of this total, the dividend reinvestment amounted to $69,029.
On October 30, 2020, TEAF paid a distribution in the amount of $0.075 per common share, for a total of $1,011,835. Of this total, the dividend reinvestment amounted to $56,851.
TEAF has performed an evaluation of subsequent events through the date the financial statements were issued and has determined that no additional items require recognition or disclosure.
|
|
2020 3rd Quarter Report | August 31, 2020
|
|
Additional Information (unaudited)
|
|
Director and Officer Compensation
The Funds do not compensate any of its directors who are “interested persons,” as defined in Section 2(a)(19) of the 1940 Act, nor any of its officers. For the period from December 1, 2019 through August 31, 2020, the aggregate compensation paid by the Funds to the independent directors was as follows:
TYG
|
|
NTG
|
|
TTP
|
|
NDP
|
|
TPZ
|
|
TEAF
|
$96,200
|
|
$91,100
|
|
$76,100
|
|
$74,300
|
|
$71,800
|
|
$60,700
|
The Funds did not pay any special compensation to any of its directors or officers.
Forward-Looking Statements
This report contains “forward-looking statements” within the meaning of the 1933 Act and the Securities Exchange Act of 1934, as amended. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Several factors that could materially affect each Fund’s actual results are the performance of the portfolio of investments held by it, the conditions in the U.S. and international financial, petroleum and other markets, the price at which shares of each Fund will trade in the public markets and other factors discussed in filings with the Securities and Exchange Commission (SEC).
Proxy Voting Policies
A description of the policies and procedures that each Fund uses to determine how to vote proxies relating to portfolio securities owned by the Fund and information regarding how each Fund voted proxies relating to the portfolio of securities during the 12-month period ended June 30, 2020 are available to stockholders (i) without charge, upon request by calling the Adviser at (913) 981-1020 or toll-free at (866) 362-9331 and on or through the Adviser’s Web site at www.tortoiseecofin.com; and (ii) on the SEC’s Web site at www.sec.gov.
Form N-PORT
Each Fund files its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the SEC on Part F of Form N-PORT. Each Fund’s Form Part F of Form N-PORT are available without charge upon request by calling the Adviser at (866) 362-9331 or by visiting the SEC’s Web site at www.sec.gov.
Each Fund’s N-PORTs are also available through the Adviser’s Web site at www.tortoiseecofin.com.
Statement of Additional Information
The Statement of Additional Information (“SAI”) includes additional information about each Fund’s directors and is available upon request without charge by calling the Adviser at (866) 362-9331 or by visiting the SEC’s Web site at www.sec.gov.
Certifications
Each Fund’s Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the SEC, as an exhibit to its most recently filed Form N-CSR, the certification of its Chief Executive Officer and Principal Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Privacy Policy
In order to conduct its business, each Fund collects and maintains certain nonpublic personal information about its stockholders of record with respect to their transactions in shares of each Fund’s securities. This information includes the stockholder’s address, tax identification or Social Security number, share balances, and distribution elections. We do not collect or maintain personal information about stockholders whose share balances of our securities are held in “street name” by a financial institution such as a bank or broker.
We do not disclose any nonpublic personal information about you, the Funds’ other stockholders or the Funds’ former stockholders to third parties unless necessary to process a transaction, service an account, or as otherwise permitted by law.
To protect your personal information internally, we restrict access to nonpublic personal information about the Funds’ stockholders to those employees who need to know that information to provide services to our stockholders. We also maintain certain other safeguards to protect your nonpublic personal information.
Repurchase Disclosure
Notice is hereby given in accordance with Section 23(c) of the 1940 Act, that each Fund may from time to time purchase shares of its common stock in the open market.
Office of the Company
|
and of the Investment Adviser
|
Tortoise Capital Advisors, L.L.C.
|
5100 W. 115th Place
|
Leawood, Kan. 66211
|
(913) 981-1020
|
(913) 981-1021 (fax)
|
www.tortoiseadvisors.com
|
|
Board of Directors of
|
Tortoise Energy Infrastructure Corp.
|
Tortoise Midstream Energy Fund, Inc.
|
Tortoise Pipeline & Energy Fund, Inc.
|
Tortoise Energy Independence Fund, Inc.
|
Tortoise Power and Energy Infrastructure Fund, Inc.
|
Tortoise Essential Assets Income Term Fund
|
H. Kevin Birzer, Chairman
|
Tortoise Capital Advisors, L.L.C.
|
Rand C. Berney
|
Independent
|
Conrad S. Ciccotello
|
Independent
|
Alexandra Herger
|
Independent
|
Jennifer Paquette
|
Independent
|
Administrator
|
U.S. Bancorp Fund Services, LLC
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615 East Michigan St.
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Milwaukee, Wis. 53202
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Custodian
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U.S. Bank, N.A.
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1555 North Rivercenter Drive, Suite 302
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Milwaukee, Wis. 53212
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Transfer, Dividend Disbursing
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and Reinvestment Agent
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Computershare Trust Company, N.A. /
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Computershare Inc.
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P.O. Box 30170
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College Station, Tex. 77842-3170
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(800) 426-5523
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www.computershare.com
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Legal Counsel
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Husch Blackwell LLP
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4801 Main St.
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Kansas City, Mo. 64112
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Investor Relations
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(866) 362-9331
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info@tortoiseadvisors.com
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Stock Symbols
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Listed NYSE Symbols: TYG, NTG, TTP, NDP, TPZ, TEAF
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This report is for stockholder information. This is not a
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prospectus intended for use in the purchase or sale of fund
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shares. Past performance is no guarantee of future
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results and your investment may be worth more or
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less at the time you sell.
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5100 W. 115th Place
Leawood, KS 66211
www.tortoiseecofin.com