The Tortoise Select Opportunity Fund targets investments with
the potential to benefit from catalyst-driven opportunistic themes
across the energy value chain and beyond
Tortoise Capital Advisors today announced the introduction of
the Tortoise Select Opportunity Fund, an open-end mutual fund that
has a dedicated focus on select opportunities across the energy
value chain and beyond.
“The North American energy value chain is a dynamic,
ever-changing, essential network of commerce, continuously creating
different opportunities and catalysts that impact its
participants,” said Tortoise investment analyst, Brett Jergens.
“From the upstream producers of oil and natural gas - to those who
transport the resources by pipeline, rail or by other means - to
the downstream users and beneficiaries who process and use the
resources. The current energy revolution taking place in North
America’s shale basins is just one such example of a
driving force that can, and is, creating opportunities across
this expansive energy value chain.”
The fund was developed to provide investors with access to the
North American energy companies and their beneficiaries that
Tortoise believes are, or will be, in a differentiated position to
benefit from changing dynamics, catalysts and opportunities across
the North American energy value chain that may occur over time.
Current and potential examples of such themes may include changing
market trends, infrastructure constraints, supply / demand
imbalances, price differentials, valuation and structural
disparities, mergers and acquisitions, restructuring, paradigm
shifts and company specific events.
“Based on the prevailing market and economic conditions and
areas of highest conviction, we may shift the fund’s proportional
exposure to these opportunities over time. As a result, the fund’s
portfolio mix across the value chain could significantly vary over
time,” stated Jeremy Goff, a vice president in product development.
“With a flexible, yet opportunistic strategy, the fund has the
ability to capitalize on what we believe are the most compelling
opportunities, regardless of their location within the energy value
chain, with the ability to be nimble as dynamics shift.”
The fund is structured as a traditional mutual fund providing
daily liquidity at NAV, with flow-through tax treatment and no
taxation at the fund level. Simplified tax reporting is provided to
investors through a single 1099. Investor, C Class and
Institutional shares are available under the symbols TOPTX, TOPCX,
and TOPIX, respectively.
This new strategy expands upon Tortoise’s leadership and history
in the sector. Tortoise formed the first NYSE-listed closed-end
fund focused on MLPs in 2004 and is one of the largest investment
managers of registered energy infrastructure funds. As an industry
pioneer, Tortoise has managed energy infrastructure investments for
nearly a decade, across economic cycles and natural disasters.
The fund was initiated in cooperation with Montage Investments.
Montage’s diverse group of boutique asset managers offer multiple
investment solutions, including mutual funds, closed-end funds,
separately managed accounts and alternative partnership
investments. Additional information regarding the fund may be
obtained by calling 855-TCA-FUND (855-822-3863) or visiting
www.tortoiseadvisors.com.
About Tortoise Capital Advisors, LLC
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 is a unique group of institutional
investment managers – each offering a distinct approach to money
management that reflects many decades of professional experience
and proprietary investment strategies across global asset classes.
The firm’s organizational approach is to allow individual
investment managers to retain boutique processes, talents and
cultures that have proven records of adding value to portfolios and
meeting client objectives. For more information, 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 loss 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 may involve greater risk and volatility than less
concentrated investments. Risks include, but are not limited to,
risks associated with the North American energy companies,
including upstream energy companies, midstream energy companies,
downstream energy companies, energy company beneficiaries,
commodity price volatility risk, supply and demand risk, reserve
and depletion risk, operations risk, regulatory risk, environmental
risk, terrorism risk, natural disasters and climate change risks.
The adviser does not anticipate that the fund will significantly
invest in MLPs in all circumstances and market conditions, and may
not be invested in MLPs at all. However, the fund may invest up to
25% of its total assets in MLPs. 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 foreign companies involve risk not
ordinarily associated with investments in securities and
instruments of U.S. issuers, including risks related 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 invest in derivatives including options, futures and swap
agreements, which can be highly volatile, illiquid and difficult to
value, and changes in the value of a derivative held by the fund
may not correlate with the underlying instrument or the fund’s
other investments and can include additional risks such as
liquidity risk, leverage risk and counterparty risk that are
possibly greater than risks associated with investing directly in
the underlying investments. The fund may engage in short sales and
in doing so is subject to the risk that it may not always be able
to borrow a security, or to close out a short position at a
particular time or at an acceptable price.
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.
The Tortoise open end funds are distributed by Quasar
Distributors, LLC.
Tortoise Capital Advisors, LLCPam Kearney,
866-362-9331pkearney@tortoiseadvisors.com