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 3/31/2020:

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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 3/31/2020
Market Price $10.10
NAV $12.64
IPO Date 3/26/2019
IPO Price $20.00
Distribution Frequency Monthly
As of 2/29/2020
Total Assets $264.9 million
Leverage % of Total Assets 1 13.10%
Shares Outstanding 13.49 million
Management Fee (year 1) 2 1.10%
Management Fee 3 1.35%
Fiscal Year End November 30
CUSIP 89148A103
  1. Anticipated 10-15% of total assets

  2. 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.

  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").

Impact information reported by certain portfolio companies

as of 12/31/2019


Tons of CO2 avoided (estimated) Reduction in deforestation (estimated)
32,466 or 3,187 trips around the world 438,000 trees annually


# of students educated (projection) # of senior housing units (projection)
4,270 243
Impact information updated quarterly.

Portfolio Allocation*

As of 2/29/2020

*Percentages based on total investment portfolio
** ‘Private’ or ‘Public’ identifier made at time of investment; ‘private’ may include securities that are freely tradable but acquired in a private investment in public equity (PIPE) transaction

Top 10 Holdings *

  1. Percent of Investments and Cash Equivalents.

As of 2/29/2020

* Fund holdings are subject to change and are not recommendations to buy or sell any security.

Date Summary Sleeve Amount Details
March 2020 Pioneer Technology & Arts Academy Social Infrastructure $410,000 View Details
January 2020 New Fortress Energy LLC Energy Infrastructure $4,875,000 View Details
December 2019 Sunnova Energy International Inc. Energy Infrastructure $5,300,000 View Details
November 2019 Noble Midstream Partners Energy Infrastructure $5,500,000 View Details
October 2019 St. James Christian Academy Social Infrastructure $185,000 View Details
October 2019 Mexico Pacific Limited, LLC Energy Infrastructure (private equity) View Details
October 2019 The Cottages of Perry Hall Social Infrastructure $2,280,000 View Details
July 2019 Vonore Fiber Products LLC Social Infrastructure $8,925,000 View Details
June 2019 The Village Charter School, Inc. Social Infrastructure $800,000 View Details
June 2019 Grace Commons senior living Social Infrastructure $3,650,000 (Series A)
$1,825,000 (Series B)
View Details
July 2019 Operating Stage Solar Acquisitions—CO/FL/NJ/PR Sustainable Infrastructure $26,000,000 (approx.) View Details
June 2019 Construction Stage Solar Acquisitions—CA/MA Sustainable Infrastructure $18,000,000 (approx.) View Details
June 2019 Athenian Academy charter school Social Infrastructure $445,000 View Details
June 2019 Altus Midstream Company Energy Infrastructure $4,000,000 (approx.) View Details
May 2019 MaST Community Charter School III Social Infrastructure $3,135,000 View Details
April 2019 Utility-scale solar projects—Bermuda Sustainable Infrastructure $6,700,000 (approx.) View Details
April 2019 Enviva Partners, LP Energy Infrastructure $5,000,000 View Details
Record Date Payment Date Amount Market Price NAV DRIP
5/22/2020 5/29/2020 $0.1085
4/23/2020 4/30/2020 $0.1085
3/24/2020 3/31/2020 $0.1085
2/21/2020 2/28/2020 $0.1085 $15.3200 $16.9000 $15.7302
1/24/2020 1/31/2020 $0.1085 $16.3800 $18.3000 $16.9300
12/24/2019 12/31/2019 $0.1085 $16.3900 $18.4700 $16.5400
Fiscal Year 2020 Total: $0.6510

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.

2019 distributions to common stockholders were approximately 25.82% ordinary income, 25.50% qualified dividend income and 48.68% return of capital. Tax characterization of 2020 distributions will be determined after the completion of TPZ's fiscal year. For more details, see TEAF's complete distribution and tax information here.

Tax Information (NYSE: TEAF) Tortoise Essential Assets Income Term Fund

Find distributions and other tax-related resources for Tortoise closed-end funds. Tax forms, publications and instructions are available for download from the IRS Web site.

Questions? Visit our Frequently Asked Tax Questions page.

Annual 1099-DIV

2019 Common Stock Tax Information

TEAF provides the following tax information to its common stockholders pertaining to the character of distributions paid during 2019. For stockholders who received all distributions in cash during 2019, approximately 25.82% was treated as ordinary income (Box 1a less Box 1b), 25.50% as qualified dividend income (Box 1b), and 48.68% treated as return of capital (Box 3). The per share characterization is reflected in the sample Form 1099-DIV below.

  1. Box 1a: Ordinary dividends are taxed at ordinary income tax rates.

  2. Box 1b: Qualified dividends are taxed at capital gain tax rates if the stockholder meets holding period requirements.

  3. Box 2a: Capital gain distributions (long-term) are taxed at capital gain tax rates.

  4. Box 3: Nondividend distributions are nontaxable and considered return of capital.

For stockholders who participated in the company sponsored dividend reinvestment plan, the tax basis of shares acquired is the greater of the purchase price or the market close price on the payment date.

Report of Organizational Actions Affecting Basis of Securities

Effective January 1, 2012, issuers of regulated investment company securities must complete Form 8937 to report organizational actions, including nontaxable distributions, that affect the basis of the securities involved in the organizational action. The information contained below is intended to satisfy the requirements of public reporting under section 1.6045B-1(a)(3) and (b)(4) of the Treasury Regulations.

Nothing contained herein should be construed as tax advice; consult your tax adviser for more information. Furthermore, you may not rely upon any information herein for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code.

As of 3/27/2020

Leverage Summary

Total leverage outstanding $25,800,000
Leverage as % of total assets 13.0%
Effective all-in cost of leverage 1.99%
Credit Facility Amount Amount Outstanding Non-use Rate Rate (1-month
LIBOR + 0.80%)
Maturity Date
$45,000,000 $25,800,000 0.20% 1.79% 179 calendar-day rolling commitment
Total Debt $25,800,000      

*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.