On Monday, Tortoise Capital expanded its fund library with the launch of the Tortoise Energy Fund (TNGY). Formerly a mutual fund, the Tortoise Energy Fund is now an ETF available on the New York Stock Exchange.
TNGY is an actively managed fund that primarily looks to generate income for its investors. Secondarily, it will also seek to generate capital appreciation over the long term. The fund has a net expense ratio of 85 basis points.
To execute on its investment strategy, TNGY invests in a mix of equity and debt securities of different energy companies. For equity exposure, the fund may invest in both stock and master limited partnerships (MLPs). Meanwhile, TNGY can derive fixed income exposure from both investment-grade and high yield bonds.
Constructing Energy Exposure
As an energy-focused fund, TNGY can provide access to a number of different companies operating in the energy sector. However, the fund does have a primary focus on energy infrastructure companies. This includes utilities, renewable energy, and emerging technologies, among others.
Crucially, TNGY reserves the right to opportunistically pursue covered calls and other options strategies, should the situation call for it. This flexible approach to options exposure can give the fund extra options to deliver yield for its investors.
“As investing has been transformed by ETFs, so too is the U.S. energy market undergoing a period of rapid transformation,” noted Tom Florence, CEO of Tortoise Capital. “TNGY is at the nexus of all of this change and arrives as the modern solution to accessing the growth, yield and diversification potential inherent in modern energy investing.”
TNGY now joins Tortoise Capital’s lineup of funds that deliver efficient access to energy companies across the globe. This includes the Tortoise North American Pipeline Fund (TPYP), which has over $700 million in assets under management.
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