Tortoise Tax-Advantaged Social Infrastructure Fund NAV Update
In an effort to provide visibility to our shareholders, Tortoise Tax-Advantaged Social Infrastructure Fund (TSIFX) is providing additional detail on its recent decline in net asset value (NAV). This decline was a result of markdowns in investments in two charter schools that are operated by the same management company in Florida. The proceeds from these two investments were used to outfit buildings and equipment for a K-8 and High School in Broward County, Florida.
In August of 2019, we recognized the two charter schools were behind their operating targets and began actively working with the management company on a long-term solution for these issues. Throughout the first half of the school year, the management company has continued to experience a combination of operating issues and enrollment weakness, which has ultimately led to a failure to make payments to TSIFX. Based on that situation, a subsequent drop in valuation and NAV occurred for TSIFX as of Dec. 13, 2019.
We continue to drive forward on a long-term solution for these schools, and despite this near-term issue, continue to believe in the long-term prospects for both schools. Their essentiality to the community remains strong and we hope our proposed solutions will help put the schools back on track. We ultimately believe this impairment to be temporary as we put the longer-term solution in place.
Nothing contained in this communication constitutes tax, legal, or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation.
This data is provided for informational purposes only and is not intended for trading purposes. This communication shall not constitute an offering of any security, product or service. The addition, removal or inclusion of a security in the index is not a recommendation to buy, sell or hold that security, nor is it investment advice. The information contained in this communication is current as of the publication date. Tortoise makes no representations with respect to the accuracy or completeness of these materials and will not accept responsibility for damages, direct or indirect, resulting from an error or omission in this document. The methodology involves rebalancing and maintenance of the index that is made periodically during each year and may not, therefore, reflect real time information.
About Tortoise
Tortoise invests in essential assets ? those assets and services that are indispensable to the economy and society. With a steady wins approach and a long-term perspective, Tortoise strives to make a positive impact on clients and communities. To learn more, please visit www.tortoiseadvisors.com.
About Tortoise Credit Strategies
Tortoise Credit Strategies is the Adviser to the Tortoise Tax-Advantaged Social Infrastructure Fund. Tortoise Credit Strategies is a registered investment adviser specializing in fixed income and direct lending investments. The team's investment philosophy is deeply rooted in an investment decision process refined over many economic and financial cycles, which emphasizes top-down macro views, business fundamentals, bottom-up credit analysis as well as a disciplined focus on managing risk.
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