Tortoise Capital's Closed-End Funds: Fortress Balance Sheets in a Volatile World

The market's volatility is back with a vengeance—stocks are swinging wildly, interest rates are a guessing game, and investors are scrambling for safety. But what if I told you there are funds out there that aren't just weathering the storm? They're thriving in it.

Enter Tortoise Capital's closed-end funds, specifically TYG (Tortoise Energy Infrastructure Corp.) and TEAF (Tortoise Sustainable & Social Impact Term Fund). These aren't just any funds—they're financial fortresses. With asset coverage ratios blowing past regulatory requirements, rock-solid balance sheets, and a laser focus on infrastructure and sustainability, they're the kind of investments that make me say, “This is a BUY!”

Why Asset Coverage Matters—and These Funds Nail It

Let's start with the numbers. The 1940 Act requires closed-end funds to maintain an asset coverage ratio of at least 300% for senior securities. Both TYG and TEAF are crushing this benchmark. As of April 2025:
- TYG's senior securities coverage: 668%
- TEAF's senior securities coverage: 670%

That's more than DOUBLE the regulatory minimum. Translation? These funds aren't playing with fire. Their leverage is conservative, their buffers are thick, and they're built to survive—and even profit—when markets tank.

Digging Into the Details: TYG's Energy Infrastructure Might

TYG is the powerhouse here. With $945.9 million in total assets and a $43.64 NAV per share, it's loaded with energy infrastructure investments—pipelines, power plants, renewable projects. The leverage structure? A model of prudence:
- Total leverage: $185.3 million (19.6% of assets).
- Short-term borrowings: $42.3 million (minimal risk).
- Senior notes and preferred stock: Held at levels that keep that 668% coverage ratio sky-high.

And here's the kicker: TYG has only $0.5 million in cash, meaning nearly every dollar is deployed into income-generating assets. This isn't a sitting-duck fund; it's a cash machine.

TEAF's Sustainable Edge in a Green World

TEAF, meanwhile, is all about the future—social impact bonds, green energy projects, and ESG-aligned infrastructure. With $208.3 million in assets and a $13.10 NAV per share, it's a smaller but equally sturdy ship.
- Leverage: $31 million in credit facility borrowings, but that's offset by a 670% coverage ratio.
- Focus: Deployed almost entirely into impact-driven sectors—healthcare facilities, affordable housing, and renewable energy.

In a world where ESG is no longer a buzzword but a business imperative, TEAF isn't just hedging bets—it's betting on the winners.

The Bottom Line: These Funds Are Built to Last

So why should you care? Because conservative leverage + infrastructure focus = dividend stability. Both funds have a long history of payouts, and their robust balance sheets mean those dividends are safer than ever.

• TYG's dividend: Steady at around $2.28 annually (5.2% yield).
• TEAF's dividend: A competitive $0.60 annually (4.6% yield).

And don't forget: Tortoise Capital manages $9.6 billion in energy and infrastructure assets. This isn't a fly-by-night shop—it's a sector titan with the expertise to navigate even the roughest markets.

The Call to Action: Don't Wait—Act Now!

Here's the deal: If you're seeking safety, income, and a hedge against volatility, these funds are your ticket. Their fortress-like balance sheets aren't just numbers on a page—they're proof of prudent management.

• TYG: For energy infrastructure believers.
• TEAF: For the ESG crowd craving impact and income.

The data doesn't lie. The ratios are there. The expertise is there. The time to act is NOW.

Final Note: Check the Data, Then Pull the Trigger

Before you go, visit cef.tortoiseadvisors.com to dig into the full balance sheets and leverage summaries. But don't let analysis paralysis keep you out of these deals. In a market this shaky, you don't need perfect timing—you need strong fundamentals.

Tortoise's funds have them in spades.

BUY TYG. BUY TEAF. And hold onto your dividends—they're here to stay.

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This is not financial advice. Consult your advisor before investing. Past performance does not guarantee future results.