Tortoise Captial Advisors
 

Tortoise MLP & Pipeline Fund Announces Distribution Strategy Update

LEAWOOD, Kan.-- April 23, 2014 ()--Tortoise Capital Advisors today announced a distribution strategy update for the Tortoise MLP & Pipeline Fund (TORIX, TORTX, TORCX). Under the new distribution policy, shareholders are expected to receive at least two distributions each year, beginning in 2014.

“We introduced the fund in 2011 to offer shareholders an efficient investment solution to access MLP and pipeline companies through an open-end mutual fund. We believe this distribution policy provides an additional attractive feature for shareholders. Specifically, it will reduce the amount of time between when the fund receives distributions from its investments and when it pays such distributions out to shareholders,” stated Tortoise managing director, Edward Russell.

The fund invests primarily in equity securities of master limited partnerships (MLP) and pipeline companies that own and operate essential North American energy infrastructure assets, with an investment objective of total return. Historically, the fund has paid one annual distribution in December, encompassing net investment income and net capital gains for the year. Beginning in 2014, the fund will pay distributions semi-annually in May and November with a possible distribution in December, if necessary. All such distributions will be paid towards the end of these respective months. The components of the distributions will vary, depending on the time of year, as summarized in the table below.

Distribution timing     Timing rationale     Distribution components
May     Semi-annual fiscal period     Net investment income (as defined below*) for the first half of the fiscal year and a portion of the return of capital associated with its investments in MLPs
 
November Fiscal year end Net investment income for the second half of the fiscal year, a portion of the return of capital associated with its investments in MLPs, and any short-term or long-term capital gains realized for the fiscal year
 
December (possible)     Calendar year end true-up     True-up of any remaining net investment income and capital gains for the calendar year to avoid excise tax, pursuant to tax regulations of regulated investment companies (RIC)
*Net investment income includes interest and dividends from investments and taxable income from MLPs, if any, net of expenses.
 
Fund distributions are not guaranteed.
 

About Tortoise Capital Advisors, L.L.C.

Tortoise Capital Advisors, L.L.C. is an investment manager specializing in listed energy investments. As of March 31, 2014, the adviser had approximately $15.5 billion of assets under management in NYSE-listed closed-end investment companies, open-end funds and other accounts. For more information, visit www.tortoiseadvisors.com.

About Montage Investments

Montage Investments provides institutional-caliber investments to investors and the financial professionals who serve them. Through a family of independent asset managers, unified by deep market insight and fundamental research, Montage offers alternative investment solutions across the spectrum of asset classes and strategies that include mutual funds, closed-end funds and separate accounts. Collectively, Montage Investments managed approximately $21 billion as of February 28, 2014. Visit www.montageinvestments.com.

Disclosures

Before investing in the fund, investors should consider their investment goals, time horizons and risk tolerance. The fund’s investment objective, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectus contains this and other important information about the fund. Copies of the fund’s prospectus may be obtained by calling 855-TCA-FUND (855-822-3863) or visiting www.tortoiseadvisors.com. Read it carefully before investing.

Mutual fund investing involves risk. Principal risk is possible. The fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the fund is more exposed to individual stock volatility than a diversified fund. Investing in specific sectors such as energy infrastructure may involve greater risk and volatility than less concentrated investments. Risks include, but are not limited to, risks associated with companies owning and/or operating pipelines and complementary assets, as well as MLP, capital markets, terrorism, natural disasters, climate change, operating, regulatory, environmental, supply and demand, and price volatility risks. MLPs are subject to many risks, including those that differ from the risks involved in an investment in the common stock of a corporation, such as limited control and voting rights. The value of an MLP will depend largely on its treatment as a partnership for U.S. federal income tax purposes. The performance of securities issued by MLP affiliates primarily depend on the performance of an MLP. Securities of MLPs or MLP affiliates may not be as liquid as other more commonly traded equity securities. The tax benefits received by an investor investing in the fund differs from that of a direct investment in an MLP by an investor. The value of the fund’s investment in an MLP will depend largely on the MLP’s treatment as a partnership for U.S. federal income tax purposes. If the MLP is deemed to be a corporation then its income would be subject to federal taxation, reducing the amount of cash available for distribution to the fund which could result in a reduction of the fund’s value. Investments in securities of non-U.S. issuers (including Canadian issuers) involve risks not ordinarily associated with investments in securities and instruments of U.S. issuers, including risks relating to political, social and economic developments abroad, differences between U.S. and foreign regulatory and accounting requirements, tax risk, and market practices, as well as fluctuations in foreign currencies. The fund invests in small and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility than larger companies. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The fund may also write call options which may limit the fund’s ability to profit from increases in the market value of a security, but cause it to retain the risk of loss should the price of the security decline.

Nothing contained in this communication constitutes tax, legal, or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation.

Certain marketing or sales related support provided by Montage Investments and certain of its affiliates, none of which are affiliated with Quasar Distributors, LLC. Montage Investments is the indirect majority owner of Tortoise Capital Advisors.

Quasar Distributors, LLC, Distributor

Contacts

Tortoise Capital Advisors, L.L.C.
Pam Kearney, 866-362-9331
Investor Relations
pkearney@tortoiseadvisors.com