Tortoise, a company working in power and energy infrastructure investments, has reportedly announced that its Board of Directors has approved the merger of NDP (Tortoise Energy Independence Fund, Inc.) as well as TTP (Tortoise Pipeline & Energy Fund, Inc.), following a strategic review of the funds.
The newly integrated fund would have an investment strategy that would focus on investing in those companies who the Tortoise team believes are well-positioned to greatly benefit from the ongoing energy evolution going on throughout the world. The new fund would be renamed and rebranded as, The Tortoise Energy Evolution Infrastructure Fund.
Chief Executive Officer of Tortoise’s close end funds, Brad Adams stated that the company believes that the merger of TTP and NDP is in the best interest of company shareholders as it gives them an opportunity to take part in the ongoing global energy evolution.
Adams further added that this strategy would provide the portfolio exposure to what the company’s investment team deems as the best value and growth opportunities in midstream and renewable energy enterprises across the globe. The company expects that the new fund would provide a powerful total return profile with an impressive yield as well as low overall volatility, which is a perfect combination according to the company.
The firm’s strategic shift is in line with its ongoing efforts to reduce the discounts at which the closed end funds are trading. The firm’s research suggests that funds invested in power infrastructure and renewables have been trading near to net asset value.
The Tortoise Energy Evolution Infrastructure Fund would invest in global shares that operate vital renewable infrastructure like wind and solar generation as well as energy infrastructure such as LNG (liquefied natural gas) export facilities. These industries are moving the energy sector towards natural gas, wind, and solar, far from coal, boosting the reduction of worldwide CO2 emissions.