OVERLAND PARK, KS / ACCESS Newswire / December 19, 2025 / Tortoise Capital Advisors, L.L.C. (Tortoise Capital), a fund manager focused on energy and infrastructure investing, today announced a series of strategic enhancements to the Tortoise Essential Energy Fund (TPZ) that will become effective on January 1, 2026. These updates include changes to the fund's investment policy and name, as well as a shift in distribution frequency.

TPZ's new non-fundamental investment policy is centered on what Tortoise believes may be one of the most powerful and durable investment themes of the next decade: the buildout of North American electrification infrastructure. Electrification refers to the rapidly expanding system of power generation, transmission, distribution, and equipment needed to support rising electricity demand across industries. To reflect this expanded focus, the fund will be renamed the Tortoise Electrification Infrastructure ETF, positioning it to invest primarily in the companies powering the growth of the modern electricity infrastructure.

Demand for electrification is accelerating across AI compute, data centers, reshoring, transportation, grid hardening, and industrial activity. After nearly two decades of flat electric load growth, electricity demand is now increasing, driving investment from regulated utilities to high-growth electrical equipment and power infrastructure manufacturers. Annual spending on electricity infrastructure now exceeds investment in the oil supply chain, reinforcing Tortoise's perspective: "Electricity is the New Oil™."

"AI, data centers, and grid modernization are reshaping the power landscape," said Matt Sallee, Head of Investments. "This repositioning ensures the fund is aligned with where capital spending is going - toward the critical infrastructure required for electrification. Our focus is on companies with visible rate-base growth, essential natural gas infrastructure, and the equipment and technology enabling the buildout of tomorrow's power system."

As part of this modernization, the fund will transition from monthly to quarterly distributions. The distribution rate will be adjusted to align with the fund's total-return focus. This change provides a more sustainable distribution framework and allows the portfolio to more efficiently pursue growth opportunities within the electrification theme.

These enhancements represent the final step in TPZ's evolution following its December 2024 conversion from a closed-end fund to an ETF. The updates fully align the portfolio with the structural electrification opportunity and further reinforce Tortoise Capital's long-standing focus on essential energy and infrastructure.

The fund's investable universe spans more than $6 trillion in market capitalization and includes companies across the electricity value chain:

  • Regulated electric utilities and independent power producers

  • Natural gas networks, midstream infrastructure, and liquefied natural gas (LNG) terminals

  • Electrical equipment, components, and connectivity manufacturers

  • High-voltage transmission and distribution modernization

"Investors have almost no active ETF choices focused on energy and electrification - precisely where active management matters most," said Mark Marifian, Head of Product. "TPZ can adjust to changes in power demand, utility investment cycles, and natural gas and LNG infrastructure - flexibility passive ETFs cannot offer."

These enhancements position the fund to capture potential long-term structural growth across electricity infrastructure through an active management approach.

To learn more about TPZ and Tortoise Capital please visit www.tortoisecapital.com.

About Tortoise Capital

With approximately $9.1 billion in assets under management as of November 30, 2025, Tortoise Capital's record of investment experience and research dates back more than 20 years. As an early investor in midstream energy, Tortoise Capital believes it is well-positioned to be at the forefront of the global energy evolution that is under way. Based in Overland Park, Kansas, Tortoise Capital Advisors, L.L.C. is an SEC-registered investment adviser who manages funds that invest primarily in publicly traded companies in the energy and power infrastructure sectors-from production to transportation to distribution. For more information about Tortoise Capital, visit www.tortoisecapital.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the funds and Tortoise Capital Advisors believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund's reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the funds and Tortoise Capital Advisors do not assume a duty to update this forward-looking statement.

Safe Harbor Statement

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

IMPORTANT INFORMATION

Tortoise Capital Advisors, LLC is the advisor to the Tortoise Essential Energy Fund.

Before investing in the funds, investors should consider their investment goals, time horizons and risk tolerance. The funds' investment objective, risks, charges and expenses must be considered carefully before investing. The statutory prospectuses and the summary prospectuses (click here) contain this and other important information about the funds. Copies of the funds' prospectus may be obtained by calling 855-994-4437 or by emailing [email protected]. Read it carefully before investing.

The fund's strategy of concentrating its assets in the power and energy infrastructure industries means that the performance of the Fund will be closely tied to the performance of these particular market sectors.

Widespread disease, including pandemics and epidemics, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Fund's investments. Investment advisers, including the Adviser, must rely in part on digital and network technologies (collectively "cyber networks") to conduct their businesses.

Covered Call Option Risk: We cannot guarantee that our covered call option strategy will be effective. The use of options also may require us to sell portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation we can realize on an investment, or may cause us to hold a security we might otherwise sell.

Shares of exchange-traded funds (ETFs) are not individually redeemable and owners of the shares may acquire those shares from the ETF and tender those shares for redemption to the ETF in Creation Units only, see the ETF prospectus for additional information regarding Creation Units. Investors may purchase or sell ETF shares throughout the day through any brokerage account, which will result in typical brokerage commissions.

Investing involves risk. Principal loss is possible. The fund is registered as a non-diversified, open-end management investment company under the 1940 Act. Accordingly, there are no regulatory limits under the 1940 Act on the number or size of securities that we hold, and we may invest more assets in fewer issuers compared to a diversified fund. An investment in MLP securities involves some risks that differ from the risks involved in an investment in the common stock of a corporation, including risks relating to the ownership structure of MLPs, the risk that MLPs might lose their partnership status for tax purposes and the risk that MLPs will not make distributions to holders (including us) at anticipated levels or with the expected tax character.

We may invest a portion of our assets in fixed income securities rated "investment grade" by nationally recognized statistical rating organizations ("NRSROs") or judged by our investment adviser, Tortoise Capital Advisors, L.L.C. (the "Adviser"), to be of comparable credit quality. Non-investment grade securities are rated Ba1 or lower by Moody's, BB+ or lower by S&P or BB or lower by Fitch or, if unrated, are determined by our Adviser to be of comparable credit quality. Investments in the securities of non-U.S. issuers may involve risks not ordinarily associated with investments in securities and instruments of U.S. issuers, including different accounting, auditing and financial standards, less government supervision and regulation, additional tax withholding and taxes, difficulty enforcing rights in foreign countries, less publicly available information, difficulty effecting transactions, higher expenses, and exchange rate risk.

Restricted securities (including Rule 144A securities) are less liquid than freely tradable securities because of statutory and contractual restrictions on resale. This lack of liquidity creates special risks for us. Rule 144A provides an exemption from the registration requirements of the Securities Act of 1933 (the "1933 Act"), for the resale of certain restricted securities to qualified institutional buyers, such as the fund. We cannot guarantee that our covered call option strategy will be effective. There are several risks associated with transactions in options on securities. For example, the significant differences between the securities and options markets could result in an imperfect correlation between these markets. Certain securities may trade less frequently than those of larger companies that have larger market capitalizations.

Quasar Distributors, LLC, distributor

NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE

Media Contacts
Craft & Capital
Chris Sullivan [email protected]
Rob Jesselson [email protected]

SOURCE: Tortoise Capital Advisors LLC



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