
The opportunity:
A reliable infrastructure system is vital to economic stability and growth
An investment in infrastructure can provide access to attractive operating fundamentals which may translate into desirable investment characteristics. As a result, investors, particularly institutions, have increasingly allocated a portion of their investment portfolios to infrastructure.
Infrastructure assets include oil and gas pipelines and storage facilities, power grids, roads, bridges, water supply, sewers, and telecommunications.
Operating fundamentals
- Long-lived real assets
- Essential services
- Relatively inelastic demand
- Monopolistic with high barriers to entry
Targeted investment characteristics
- Long-term stability and low volatility
- Attractive risk-adjusted returns
- Diversification via low correlation with other asset classes
A differentiated asset class
Infrastructure: the physical components of interrelated systems providing commodities and services essential to enable, sustain or enhance societal living conditions.
Potable & Waste Water
- Reservoirs
- Desalination plants
- Water treatment plants
- Water towers
Transportation
- Roads, bridges & tunnels
- Rail, seaports, airports
- Subway systems
- Locks & canals
Communications
- Cell towers
- Switching offices
- Satellites
- Fiber optic cables

Understanding energy infrastructure
Nearly all other infrastructure is dependent on pipelines and other energy assets to provide essential services to the economy.

A compelling sector…energy infrastructure
The Fund will focus primarily on MLP and pipeline companies in the North American energy infrastructure value chain. Pipeline companies are entities in which the largest component of their assets, cash flow or revenue is associated with the operation or ownership of energy pipelines and complementary assets or which have an energy pipeline-related standard industrial classification.
MLP and pipeline companies own and operate a network of asset systems that transport, store, distribute, gather and/or process crude oil, refined petroleum products (including biodiesel and ethanol), natural gas or natural gas liquids.
Assets of pipeline and related companies typically produce volume or reservation based cash flows, with less exposure to commodity prices than many alternatives in the broader energy industry.
Solid business fundamentals
Traditionally viewed as a steady and defensive sector throughout economic cycles, supported by increasing demand for an essential service.
Energy infrastructure companies have historically produced predictable, recurring cash flows with limited direct commodity price exposure and offered partial inflation protection through regulated rates.
Relatively inelastic demand has generated stability throughout business cycles. Projected population growth of nearly 80 million people is expected to increase energy consumption by 17% from 2010 to 2035. New energy infrastructure will be needed to support these demographic changes and growth.
Financing growth
Pipeline and related infrastructure projects are expected to support growing population centers and facilitate the transportation of natural gas and crude oil across North America, creating a compelling investment opportunity in the coming decades.
Driving forces: North America has an abundant and accessible natural gas supply located in domestic shale plays. As a result of technology improvements, the United States has enough natural gas to last for approximately 80 to 100 years.1 Demand continues to increase for natural gas as a clean, reliable, domestic energy source.
Oil supply on the continent also is expanding as a result of oil shale plays and the Canadian oil sands. Canada's crude oil reserves are now the 2nd largest in the world, behind only Saudi Arabia2, with the United States importing more oil from Canada than any other country.3
1 Navigant Consulting (2008) • 2 Central Intelligence Agency (2011) • 3 Energy Information Administration (2011)
Anchored in risk management
Tortoise has managed investments across the energy infrastructure value chain through various economic cycles, with a philosophy particularly focused on quality.
Investment process Through its in-house research coverage of companies throughout the entire energy value chain, Tortoise's investment process uses a bottom-up, fundamentals-based approach. Tortoise believes its process is a competitive advantage, allowing it to evaluate risk and reward intelligently across the energy infrastructure universe.

A leading and innovative MLP adviser
Tortoise formed the first listed closed-end fund (TYG) focused on investing in energy infrastructure MLPs and is one of the largest investment managers of registered funds focused on energy infrastructure MLPs.
As of November 30, 2011, Tortoise had approximately $7.2 billion of assets under management, including the assets of six listed closed-end funds and separate accounts. Tortoise believes its history in the space and its long-only investment strategy offers competitive advantages in evaluating and managing investment opportunities.
Investment committee:
25 years average experience
- Kevin Birzer, CFA, CPA
- Zach Hamel, CFA
- Ken Malvey, CFA
- Terry Matlack, CFA
- David Schulte, CFA, CPA
Investment analysts:
12 years average experience
- Brian Kessens, CFA
- James Mick, CFA
- Matt Sallee, CFA
- Rob Thummel, CPA
Key reasons to invest
An investment in infrastructure can provide access to attractive operating fundamentals which may translate into desirable investment characteristics. As a result, investors, particularly institutions, have increasingly allocated a portion of their investment portfolios to infrastructure. Tortoise's philosophy yield + growth + quality investment approach provides an attractive total return potential.
How to invest in the fund
For additional information, please call 855-TCA-FUND (855-822-3863).
