Tortoise Capital Advisors LLC has reportedly announced that it intends to modify its non-fundamental investment policy for Tortoise Energy Infrastructure Corp. (TYG) in order to its expand reach in renewable as well as power infrastructure companies.
Sources with relevant information stated that the company’s board of directors decided to change the non-fundamental policy which apparently eliminates the need to invest in assets in midstream equities and MLPs. The new modification in the policy will go in effect 60 days after the notice is written to the stakeholders.
If reports are to be believed, about 15% of TYG was allocated to development of renewable & power infrastructure along with various energy technology firms. Moreover, increasing number of midstream firms are participating in the ongoing energy evolution in order to reduce dependency on coal. This in turn has encouraged transportation of renewable diesel and natural gas while integrating green energy into several business operations, sources confirmed.
Matt Sallee, President at Tortoise mentioned in a comment that the power infrastructure companies across the globe are facing challenges in catering to the high demand of energy while focusing on decreasing CO2 emissions. He further added that zero- or low-carbon renewables and natural gas are required as a substitute for heavy-carbon energy sources and it is in stakeholder’s best interest to benefit from the evolving energy sector.
For each of TYG and Tortoise Midstream Energy Fund (NTG), the Board has agreed to revise the non-fundamental investment policies in a bid to adjust the measurements from the ‘Total Assets’ percentage to the ‘Total Investments’.
Tortoise is an investment management firm that focuses on energy & power infrastructure as well as clean energy transition. The company has over 20 years of experience in energy value chain investment research. In fact, it was one of the earliest investors in midstream energy.