The Tortoise Essential Assets Income Term Fund seeks to provide a high level of total return with an emphasis on current distributions.

Fund Stats as of 8/23/2019:

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$16.30

NAV

$17.62

Premium/Discount

-7.50%

Distribution Rate

7.99%

Listen to a replay of the August 21, 2019 Tortoise Essential Assets Income Term Fund update call. (877) 481-4010 | Replay ID: #53360 (available through Sept. 21, 2019)

TEAF is designed to provide:

  • Attractive total return potential with emphasis on current income and uncorrelated assets
  • Access to differentiated direct investments in essential assets
  • Investments in tangible, long-lived assets and services
  • Ability to make a positive social and economic impact
  • One 1099
  • Expertise of Tortoise

Fund data (unaudited)

As of 8/23/2019
Market Price 1 $16.30
NAV $17.62
IPO Date 3/26/2019
IPO Price $20.00
Distribution Frequency Monthly
As of 7/31/2019
Total Assets $284.5 million
Leverage % of Total Assets 2 11.10%
Shares Outstanding 13.49 million
Management Fee (year 1) 3 1.10%
Management Fee 4 1.35%
Fiscal Year End November 30
CUSIP 89148A103
  1. Copyright © 2019 Market data provided by Barchart Solutions. Reflects real-time price when available. Quotes are delayed at least 15 minutes. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please see our disclaimer.

  2. Anticipated 10-15% of total assets

  3. Annual rate applied to the fund's average monthly total assets (including any assets attributable to leverage) less the sum of accrued liabilities (other than debt entered into for purposes of leverage and the aggregate liquidation preference of outstanding preferred stock) ("Managed Assets").

    Tortoise has agreed to waive a portion of the investment advisory fee in the amount of 0.25% for one year following the effective date of this registration statement. This waiver will not apply after this one year period.

  4. Annual rate applied to the fund's average monthly total assets (including any assets attributable to leverage) less the sum of accrued liabilities (other than debt entered into for purposes of leverage and the aggregate liquidation preference of outstanding preferred stock) ("Managed Assets").

TEAF Distribution History

Record Date Payment Date Amount Market Price NAV DRIP
11/22/2019 11/29/2019 $0.1085
10/24/2019 10/31/2019 $0.1085
9/23/2019 9/30/2019 $0.1085
8/23/2019 8/30/2019 $0.1085
7/24/2019 7/31/2019 $0.1085 $18.5 $18.69 $17.18
6/21/2019 6/28/2019 $0.1085 $17.7 $19.31 $18.07
5/24/2019 5/31/2019 $0.1085 $18.45 $18.94 $18.45
Fiscal Year 2019 Total: $0.7595

Determining distributions to stockholders

We pay monthly distributions based primarily upon our current and estimated future distributable cash flow (DCF). In addition, and to the extent that the sum of our net investment company taxable income and net realized gains from investments exceed our monthly distributions, we intend to make an additional distribution to common stockholders in the last quarter of the calendar year to avoid being subject to U.S. federal income taxes. Our Board of Directors periodically reviews the distribution rate and may adjust the distribution throughout the year.

DCF is income from investments less expenses. Income from investments includes the amount we receive as cash or paid-in-kind distributions from securities in which we invest and dividend payments on short-term investments. Income also includes the premiums received from sales of covered call options, net of amounts paid to buy back out-of-the-money options. The total expenses include current or anticipated operating expenses and leverage costs.

Tax characterization of 2019 distributions will be determined after the completion of TEAF's fiscal year. 

As of 8/16/2019

Leverage Summary

Total leverage outstanding $31,500,000
Leverage as % of total assets 11.5%
Effective all-in cost of leverage 2.97%
Credit Facility Amount Amount Outstanding Non-use Rate Rate (1-month
LIBOR + 0.80%)
Maturity Date
$45,000,000 $31,500,000 0.20% 2.97% 179 calendar-day rolling commitment
Total Debt $31,500,000      

*Non-use fees are waived when amount outstanding is at least $31,500,000.

Leverage in the form of a margin loan is utilized within TEAF to acquire additional portfolio investments consistent with its investment philosophy. The terms of the leverage are governed by regulatory and contractual asset coverage requirements that arise from the use of leverage.

Leverage costs consist of interest expense on the bank margin loan, including non-use fees.

We consider market conditions at the time leverage is incurred and monitor for asset coverage ratios relative to 1940 Act requirements and our financial covenants on an ongoing basis. Leverage as a percent of total assets will vary depending on market conditions, but will normally range between 10% and 15%. The leverage ratio is impacted by increases or decreases in investment values, issuance of equity and/or the sale of securities when proceeds are used to reduce leverage.

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