UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No.)
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[ ] Preliminary Proxy Statement.
[ ]Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
[X] Definitive Proxy Statement
[ ] Definitive Additional Materials.
[ ] Soliciting Material Pursuant to §240.14a-12
TORTOISE ENERGY INFRASTRUCTURE CORPORATION
TORTOISE POWER AND ENERGY INFRASTRUCTURE FUND, INC.
TORTOISE MIDSTREAM ENERGY FUND, INC.
TORTOISE PIPELINE & ENERGY FUND, INC.
TORTOISE ENERGY INDEPENDENCE FUND, INC.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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[X] | No fee required. |
[ ] | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
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TORTOISE ENERGY INFRASTRUCTURE CORPORATION
11550 Ash Street, Suite 300
Leawood, Kansas 66211
April 2, 2019
Dear Fellow Stockholder:
You are cordially invited to attend athe combined specialannual meeting (the “Meeting”) of stockholders of each of Tortoise Energy Infrastructure Corporation (“TYG”), Tortoise Power and Energy Infrastructure Fund, Inc. (“TPZ”),Tortoise MLPMidstream Energy Fund, Inc. (“NTG”),Tortoise Pipeline & Energy Fund, Inc. (“TTP”) and Tortoise Energy Independence Fund, Inc. (“NDP”) (each a “Company” and collectively, the “Companies”) on December 21, 2017Monday, May 20, 2019 at 10:00 a.m., Central Time at 11550 Ash Street, Suite 300, Leawood, Kansas 66211.
At the Meeting, stockholders of each Companymeeting, you will be asked to consider(i) elect two directors of the Company, (ii) ratify the selection of Ernst & Young LLP as the independent registered public accounting firm of the Company for its fiscal year ending November 30, 2019, and vote on a proposal to approve a new investment advisory agreement between that Company and its current investment adviser, Tortoise Capital Advisors, L.L.C. (the “Adviser”). Stockholders of each Company are also being asked to(iii) consider and take action upon such other business as may properly come before the Meeting,meeting, including the adjournment andor postponement thereof.
Enclosed with this letter are the formal notice of the Meeting, answers to questions you may have about the proposals, the formal notice of the meeting, the Companies’ combined proxy statement, which gives detailed information about each of the proposals you will be asked to vote on and why each Company’s Board of Directors recommends that you vote to approve each
Your vote is important. Please vote your shares via the internet or by telephone, or complete, sign and date the enclosed proxy card (your ballot) and mail it in the postage-paid envelope included in this package.
Sincerely, | |
P. Bradley Adams |
TORTOISE ENERGY INFRASTRUCTURE CORPORATION
TORTOISE POWER AND ENERGY INFRASTRUCTURE FUND, INC.
TORTOISE MLPMIDSTREAM ENERGY FUND, INC.
TORTOISE PIPELINE & ENERGY FUND, INC.
TORTOISE ENERGY INDEPENDENCE FUND, INC.
ANSWERS TO SOME IMPORTANT QUESTIONS
Q. | WHAT AM I BEING ASKED TO VOTE “FOR” ON THIS PROXY? |
A. | This proxy contains three proposals for each Company to: (i) elect two directors to serve until the 2022 Annual Stockholder Meeting; (ii) ratify Ernst & Young LLP as the Company’s independent registered public accounting firm; and (iii) consider and take action upon such other business as may properly come before the meeting, including the adjournment or postponement thereof. |
Q. | HOW DOES THE BOARD OF DIRECTORS SUGGEST THAT I VOTE? |
A. | The Board of Directors of each Company unanimously recommends that you vote “FOR” all proposals on the enclosed proxy card. |
Q. | HOW CAN I VOTE? |
A. | Voting is quick and easy. You may vote your shares via the internet, by telephone (for internet and telephone voting, please follow the instructions on the proxy ballot), or by simply completing and signing the enclosed proxy ballot, and mailing it in the postage-paid envelope included in this package. You may also vote in person if you are able to attend the meeting. However, even if you plan to attend the meeting, we urge you to cast your vote early. That will ensure your vote is counted should your plans change. |
This information summarizes information that is included in more11550 Ash Street, Suite 300detail in the Proxy Statement. We urge you toLeawood, Kansas 662111-866-362-9331read the entire Proxy Statement carefully.
If you have questions, call 1-866-362-9331.
NOTICE OF SPECIALANNUAL MEETING OF STOCKHOLDERS
To the Stockholders of: | Tortoise Energy Infrastructure Corporation | |
Tortoise Power and Energy Infrastructure Fund, Inc. | ||
Tortoise | ||
Tortoise Pipeline & Energy Fund, Inc. | ||
Tortoise Energy Independence Fund, Inc.: |
NOTICE IS HEREBY GIVEN that athe combined special meeting (the “Meeting”)Annual Meeting of Stockholders of Tortoise Energy Infrastructure Corporation, Tortoise Power and Energy Infrastructure Fund, Inc., Tortoise MLPMidstream Energy Fund, Inc., Tortoise Pipeline & Energy Fund, Inc. and Tortoise Energy Independence Fund, Inc., each a Maryland corporation (each a “Company” and, collectively, the “Companies”), will be held on December 21, 2017Monday, May 20, 2019 at 10:00 a.m., Central Time at 11550 Ash Street, Suite 300, Leawood, Kansas 66211 for the following purposes:
1. | For all Companies:To |
2. | For all Companies: To ratify the selection of Ernst & Young LLP as the independent registered public accounting firm of the Company for its fiscal year ending November 30, 2019; and |
3. | For all Companies: To consider and take action upon such other business as may properly come before the |
The foregoing items of business are more fully described in the combined proxy statementProxy Statement accompanying this Notice.
Stockholders of record as of the close of business on October 17, 2017March 7, 2019 are entitled to notice of and to vote at the Meetingmeeting (or any adjournment or postponement of the Meeting)meeting).
By Order of the Board of Directors of | |
Diane M. Bono Secretary |
April 2, 2019
Leawood, Kansas
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All stockholders are cordially invited to attend the meeting in person. Whether or not you expect to attend the meeting, please vote your shares via the internet, by telephone or by completing, dating, signing and returning the enclosed proxy as promptly as possible in order to ensure your representation at the meeting. If you choose to vote using the enclosed proxy, a return envelope (which postage is prepaid if mailed in the United States) is enclosed for that purpose. Even if you have given your proxy, you may still vote in person if you attend the meeting. Please note, however, that if your shares are held of record by a broker, bank or other nominee and you wish to vote at the meeting, you must obtain from the record holder a proxy issued in your name.
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TORTOISE ENERGY INFRASTRUCTURE CORPORATION
TORTOISE POWER AND ENERGY INFRASTRUCTURE FUND, INC.
TORTOISE MLPMIDSTREAM ENERGY FUND, INC.
TORTOISE PIPELINE & ENERGY FUND, INC.
TORTOISE ENERGY INDEPENDENCE FUND, INC.
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COMBINED PROXY STATEMENTFOR SPECIAL SHAREHOLDERANNUAL MEETING TO BE HELD ONOF STOCKHOLDERSDECEMBER 21, 2017
This combined proxy statement is being sent to you by the Boards of Directors of each of Tortoise Energy Infrastructure Corporation (“TYG”), Tortoise Power and Energy Infrastructure Fund, Inc. (“TPZ”), Tortoise MLPMidstream Energy Fund, Inc. (“NTG”),Tortoise Pipeline & Energy Fund, Inc. (“TTP”) and Tortoise Energy Independence Fund, Inc. (“NDP”) (each a “Company” and collectively, the “Companies”). The Board of Directors of each Company is asking you to complete and return the enclosed proxy, permitting allyour shares you own in eachof the Company to be voted at a combined specialthe annual meeting of stockholders (the “Meeting”)called to be held on December 21, 2017.May 20, 2019. The Board of Directors of each Company has fixed the close of business on October 17, 2017March 7, 2019 as the record date (the “Record Date”“record date”) for the determination of stockholders entitled to notice of and to vote at the Meetingmeeting and at any adjournment or postponement thereof as set forth in this combined proxy statement. This combined proxy statement and the enclosed proxy are first being mailed to stockholders on or about November 3, 2017.
Each Company’s reportsannual report can be accessed through its link on the closed-end fund section of its investment adviser’s website (www.tortoiseadvisors.com) or on the Securities and Exchange Commission’s (“SEC”) website (www.sec.gov). You may also request, and each Company will provide to you without charge, a copy of the Company’s most recent annual report and most recent semi-annual report succeeding the annual report, by writing to the Secretary of the Company at the Company’s offices located at 11550 Ash Street, Suite 300, Leawood, Kansas 66211 or by calling the Company at 1-866-362-9331.
Important Notice Regarding the Availability of Proxy Materials for the SpecialAnnual Meeting of Stockholders to be Held on December 21, 2017:May 20, 2019: This combined proxy statement is available on the Internetinternet at http:https://closedendfunds.tortoiseadvisors.com/cef.tortoiseadvisors.com/annual-proxy-information/. On this site, you will be able to access the proxy statement for the Meetingannual meeting and any amendments or supplements to the foregoing material required to be furnished to stockholders.
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This combined proxy statement sets forth the information that each Company’s stockholders should know in order to evaluate each of the following proposals. The following table presents a summary of the proposals for each Company and the class of stockholders of the Company being solicited with respect to each proposal.
| Class of Stockholders of Each | |
For Each Company | ||
1. | To | |
H. Kevin Birzer | For each of TYG, NTG and TTP For each of TPZ and NDP – Common Stockholders voting as a class | |
Alexandra A. Herger | For each of TYG, NTG and TTP – Common Stockholders and Preferred Stockholders, voting as a single class For each of TPZ and NDP | |
For Each Company | ||
2. | To ratify the selection of Ernst & Young LLP as the independent registered public accounting firm of the Company for the fiscal year ending November 30, 2019. | For each of TYG, NTG and TTP – Common Stockholders and Preferred Stockholders, voting as a single class For each of TPZ and NDP – Common Stockholders voting as a class |
For Each Company | ||
3. | To consider and take action upon such other business as may properly come before the meeting, including the adjournment | For each of TYG, NTG and TTP For each of TPZ and NDP |
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PROPOSAL ONE
ELECTION OF A NEW INVESTMENT ADVISORY AGREEMENT
The Board of Directors of each Company unanimously nominated H. Kevin Birzer and Alexandra A. Herger following a recommendation by the Nominating and Governance Committee of each of TYG, TPZ, NTG, TTP and NDP for election as directors at the combined annual meeting of stockholders of the Companies. Mr. Birzer and Ms. Herger are currently directors of each Company. Each of Mr. Birzer and Ms. Herger has consented to be named in this proxy statement and has agreed to serve if elected. The Companies have no reason to believe that either Mr. Birzer or Ms. Herger will be unavailable to serve.
The persons named on the accompanying proxy card intend to vote at the meeting (unless otherwise directed) “FOR” the election of Mr. Birzer and Ms. Herger as directors of each Company. Currently, each Company has five directors. In accordance with each Company’s Articles of Incorporation, its Board of Directors is divided into three classes of approximately equal size. The terms of the directors of the different classes are staggered. The term of Conrad S. Ciccotello expires on the date of the 2020 annual meeting of stockholders of each Company and term of each of Rand C. Berney and Jennifer Paquette expires on the date of the 2021 annual meeting of stockholders of each Company. Pursuant to the terms of each of TYG’s, NTG’s and TTP’s preferred shares, the separate investment advisory agreement between Tortoise Capital Advisors, L.L.C. (the “Adviser”) and each Company (each, a “Current Investment Advisory Agreement” and collectively, the “Current Investment Advisory Agreements”), Tortoise Capital Advisers, L.L.C. currently serves as the investment adviser to each Company and is responsible for the management of the portfoliopreferred stockholders of each Company. The date of eachthose Companies have the exclusive right to elect two directors to their Company’s Current Investment Advisory Agreement and the date on which it was last approved by shareholders and last approved for continuance by the Board of Directors is set forth on Appendix A.
Holders of Section 15(f) of the 1940 Act. The closing of the Transaction is subject to the satisfaction or waiver of customary closing conditions, including shareholder approval of new investment advisory agreements for each Company which have been approved by the Boardcommon shares and receipt of the requisite consents from advisory clients representing a significant
With respect to each Company, if elected, Mr. Birzer and Ms. Herger will hold office until the 2022 annual meeting of stockholders of each Company and until their successors are duly elected and qualified. If either Mr. Birzer or Ms. Herger is unable to serve because of an event not now anticipated, the persons named as proxies may vote for another person designated by the Company’s Board of Directors.
The following table sets forth each Board member’s name, age and address; position(s) with the Companies will also serve onand length of time served; principal occupation during the Investment Committee forpast five years; the Companies. Followingnumber of companies in the closingFund Complex that each Board member oversees and other public company directorships held by
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each Board member. Unless otherwise indicated, the address of the Transaction, the Adviser will continue to operate independently under the Tortoise brand and will remain located ateach director is 11550 Ash Street, Suite 300, Leawood, Kansas 66211.
Nominee for Director Who is an Interested Person: | ||||
Name and | Positions(s) | Principal Occupation | Number of | Other Public |
H. Kevin Birzer* | Director and Chairman of the Board of each Company since its inception. | Member of the Board of Directors of the Adviser; Managing Director of the Adviser and member of the Investment Committee of the Adviser since 2002; Director and Chairman of the Board of TEAF since its inception; Director and Chairman of the Board of each of Tortoise Energy Capital Corporation (“TYY”) and Tortoise North American Energy Corporation (“TYN”) from its inception until its merger into TYG effective June 23, 2014. CFA charterholder. | Six | Tortoise Essential Assets Income Term Fund |
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Nominee For Director Who is Independent: | ||||
Name and | Positions(s) | Principal Occupation | Number of | Other Public |
Alexandra A. Herger | Director of each Company since January 1, 2015 | Retired in 2014; Previously interim vice president of exploration for Marathon Oil and director of international exploration and new ventures for Marathon Oil from 2008 to 2014; Held various positions with Shell Exploration and Production Co. between 2002 and 2008; Member of the Society of Exploration Geophysicists, the American Association of Petroleum Geologists, the Houston Geological Society and the Southeast Asia Petroleum Exploration Society; Member of the 2010 Leadership Texas/Foundation for Women’s Resources since 2010; Director of Panoro Energy ASA, an international independent oil and gas company listed on the Oslo Stock Exchange. | Six | Tortoise Essential Assets Income Term Fund |
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Remaining Directors Who Are Independent: | ||||
Name and | Positions(s) | Principal Occupation | Number of | Other Public |
Rand C. Berney | Director of each Company since January 1, 2014. | Executive-in-Residence and Professor for Professional Ethics Course, College of Business Administration, Kansas State University since 2012; Formerly Senior Vice President of Corporate Shared Services of ConocoPhillips from April 2009 to 2012, Vice President and Controller of ConocoPhillips from 2002 to April 2009, and Vice President and Controller of Phillips Petroleum Company from 1997 to 2002; Member of the Oklahoma Society of CPAs, the Financial Executive Institute, American Institute of Certified Public Accountants, the Institute of Internal Auditors and the Institute of Management Accountants. | Six | Tortoise Essential Assets Income Term Fund |
Conrad S. Ciccotello (Born 1960) | Director of each Company since its inception. | Professor and the Director, Reiman School of Finance, University of Denver (faculty member since 2017); Associate Professor and Chairman of the Department of Risk Management and Insurance, Director of the Asset and Wealth Management Program, Robinson College of Business, Georgia State University (faculty member from 1999 to 2017); Investment Consultant to the University System of Georgia for its defined contribution retirement plan (2008-2017); Formerly Faculty Member, Pennsylvania State University (1997-1999); Published a number of academic and professional journal articles on investment company performance and structure, with a focus on MLPs. | Seven | CorEnergy Infrastructure Trust, Inc.; Peachtree Alternative Strategies Fund; Tortoise Tax-Advantaged Social Infrastructure Fund, Inc.; Tortoise Essential Assets Income Term Fund |
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Remaining Directors Who Are Independent: | ||||
Name and | Positions(s) | Principal Occupation | Number of | Other Public |
Jennifer Paquette (Born 1962) | Director of each Company since May 18, 2018 | Retired in 2017; Previously Chief Investment Officer of the Public Employees’ Retirement Association of Colorado (“Colorado PERA”) from 2003 to 2017; Held various positions within Colorado PERA from 1999 to 2003 and 1995 to 1996; Formerly Vice-President Institutional Account Executive at Merrill Lynch, Pierce, Fenner & Smith from 1991 to 1994; Vice-President, Portfolio Manager and Analyst at Alliance Capital Management from 1987 to 1991; Portfolio Assistant and Assistant at Mitchell Hutchins Asset Management from 1985 to 1987. Chartered Financial Analyst (“CFA”) charterholder. | Six | Tortoise Essential Assets Income Term Fund |
* | Mr. Birzer, as a principal of the Adviser, is an “interested persons” of the Company, as that term is defined in Section 2(a)(19) of the 1940 Act. |
In addition to the receiptexperience provided in the table above, each director possesses the following qualifications, attributes and skills, each of certain regulatorywhich factored into the conclusion to invite them to join the Company’s Board of Directors: Mr. Ciccotello, experience as a college professor, a Ph.D. in finance and client approvalsexpertise in energy infrastructure MLPs; Mr. Berney, experience as a college professor, executive leadership and business experience; Ms. Herger, executive leadership and business experience; Ms. Paquette, investment management experience as a chief investment officer of a state public employees’ retirement association; and Mr. Birzer, investment management experience as an executive, portfolio manager and leadership roles with the satisfaction or waiverAdviser.
Other attributes and qualifications considered for each director in connection with their selection to join the Board of certain other customary closing conditions. The Transaction will result inDirectors of each Company were their character and integrity and their willingness and ability to serve and commit the time necessary to perform the duties of a change in controldirector for all of the Companies. In addition, as to each director other than Mr. Birzer, his status as an Independent Director; and, as to Mr. Birzer, his roles with the Adviser and will, therefore, constitutewere an “assignment”important factor in his selection as a director. No experience, qualification, attribute or skill was by itself controlling.
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Mr. Birzer serves as Chairman of the Current Investment Advisory AgreementsBoard of Directors of each Company. Mr. Birzer is an “interested person” of the Companies within the meaning of the Investment1940 Act. The appointment of Mr. Birzer as Chairman reflects each Board of Directors’ belief that his experience, familiarity with each Company’s day-to-day operations and access to individuals with responsibility for each Company’s management and operations provides the Board of Directors with insight into each Company’s business and activities and, with his access to appropriate administrative support, facilitates the efficient development of meeting agendas that address each Company’s business, legal and other needs and the orderly conduct of meetings of the Board of Directors. Mr. Ciccotello serves as Lead Independent Director. The Lead Independent Director will, among other things, chair executive sessions of the four directors who are Independent Directors, serve as a spokesperson for the Independent Directors and serve as a liaison between the Independent Directors and each Company’s management. The Independent Directors will regularly meet outside the presence of management and are advised by independent legal counsel. The Board of Directors also has determined that its leadership structure, as described above, is appropriate in light of each Company’s size and complexity, the number of Independent Directors and the Board of Directors’ general oversight responsibility. The Board of Directors also believes that its leadership structure not only facilitates the orderly and efficient flow of information to the Independent Directors from management, but also enhances the independent and orderly exercise of its responsibilities.
Information About Executive Officers
Mr. Birzer is the Chairman of the Board of each Company. The preceding tables give more information about Mr. Birzer. The following table sets forth each other executive officer’s name, age and address; position(s) held with the Company Actand length of 1940,time served; principal occupation during the past five years; the number of portfolios in the Fund Complex overseen by each officer and other public company directorships held by each officer. Unless otherwise indicated, the address of each officer is 11550 Ash Street, Suite 300, Leawood, Kansas 66211. Each officer serves until his successor is elected and qualified or until his resignation or removal. As employees of the Adviser, each of the following officers are “interested persons” of the Company, as amended (the “1940 Act”). An investment advisory agreement automatically terminates upon its “assignment” under the applicable provisionsthat term is defined in Section 2(a)(19) of the 1940 Act.
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Name and | Position(s) Held With | Principal Occupation | Number of | Other Public |
P. Bradley Adams | Chief Executive Officer of | Managing Director of the Adviser since January 2013; Director of Financial Operations of the Adviser from 2005 to January 2013; Chief Executive Officer, Chief Financial Officer and treasurer of TEAF since its inception; Chief Executive Officer, Principal Financial Officer and treasurer of TSIFX since its inception; Chief Financial Officer of each of TYY and TYN from May 2011 to June 23, 2014; Assistant Treasurer of each of TYY and TYN from November 2005 to May 2011. | Seven | None |
Matthew G.P. Sallee | President of | Senior Portfolio Manager of the Adviser since February 2019; Managing Director of the Adviser since January 2014; Member of the Investment Committee of the Adviser since June 30, 2015; Portfolio Manager of the Adviser from July 2013 to January 2019; Senior Investment Analyst of the Adviser from June 2012 to July 2013; Investment Analyst of the Adviser from 2009 to June 2012; Research Analyst of the Adviser from 2005 to 2009; CFA charterholder. | Two | None |
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Name and | Position(s) Held With | Principal Occupation | Number of | Other Public |
Brian A. Kessens | President of | Senior Portfolio Manager of the Adviser since February 2019; Managing Director of the Adviser since January 2015 and a member of the Investment Committee of the Adviser since June 30, 2015; Portfolio Manager of the Adviser from July 2013 to January 2019; Senior Investment Analyst of the Adviser from June 2012 to July 2013; Investment Analyst of the Adviser from 2008 to June 2012; CFA charterholder. | Two | None |
Robert J. Thummel, Jr. | President of | Senior Portfolio Manager of the Adviser since February 2019; Managing Director of the Adviser since January 2014 and a member of the Investment Committee of the Adviser since June 30, 2015; Portfolio Manager of the Adviser from July 2013 to January 2019; Senior Investment Analyst of the Adviser from June 2012 to July 2013; Investment Analyst of the Adviser from 2004 to June 2012; President of TYN from 2008 until its merger into TYG in June 2014. | One | None |
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Name and | Position(s) Held With | Principal Occupation | Number of | Other Public |
Nicholas S. Holmes | Vice President of | Director of the Adviser since January 2018; Investment Analyst of the Adviser since January 2015; Research Analyst of the Adviser from January 2012 through December 2014 and Assistant Research Analyst from January 2010 through December 2011; CFA charterholder. | Two | None |
Brett Jergens | Vice President of NDP since June 30, 2015. | Director and Portfolio Manager of the Adviser since January 2018; Investment Analyst of the Adviser from December 2010 to January 2018; Research Analyst of the Adviser from June 2007 to December 2010; CFA charterholder. | One | None |
Stephen Pang | Vice President of TTP since May 2017 | Managing Director of Adviser since January 2019; Portfolio Manager of Adviser since January 2018; Investment Analyst of Adviser from January 2015 to January 2018; Director in Credit Suisse’s Equity Capital Markets Group from 2012 to September 2014; CFA charterholder. | One | Tortoise Acquisition Corp. |
Adam Peltzer | Vice President of TPZ since May 2017 | Director and Investment Analyst of the Adviser since March 2015; Investment Analyst and Principal at Fountain Capital Management from 2006 to March 2015; CFA charterholder. | One | None |
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Name and | Position(s) Held With | Principal Occupation | Number of | Other Public |
Shobana Gopal | Vice President of TYG, NTG, TPZ, TTP and NDP since June 30, 2015. | Director, Tax of the Adviser since January 2013; Tax Analyst of the Adviser from September 2006 through December 2012; Vice President of TEAF since its inception; Vice President of TSIFX since its inception. | Seven | None |
Diane Bono | Chief Compliance Officer of TYG since 2006 and of each of NTG, TPZ, TTP and NDP since its inception; Secretary of TYG, NTG, TPZ, TTP and NDP since May 2013. | Managing Director of the Adviser since January 2018; Chief Compliance Officer of the Adviser since June 2006; Chief Compliance Officer and Secretary of TEAF since its inception; Chief Compliance Officer and Secretary of TSIFX since its inception. | Seven | None |
Committees of the end of each calendar quarter. The amount of fees paid to the Adviser during each Company’s most recently ended fiscal year is set forth in Appendix D.
Each Company’s Board of Directors currently has four standing committees: (i) the Executive Committee; (ii) the Audit and Valuation Committee; (iii) the Nominating and Governance Committee; and (iv) the Compliance Committee. Currently, all of the non-interested directors, Messrs. Ciccotello and Berney and Mses. Herger and Paquette, are the only members of each of these committees, except for the Executive Committee, for each Company. Each Company’s Executive Committee currently consists of Mr. Birzer and Mr. Ciccotello.
Executive Committee. The Executive Committee of each Company has authority to exercise the powers of the Board (i) to address emergency matters where assembling the full Board in a timely manner is impracticable, or (ii) to address matters of an administrative or ministerial nature. Mr. Birzer is an “interested person” of each Company as defined by Section 2(a)(19) of the 1940 Act. In the absence of either member of the Executive Committee, the remaining member is authorized to act alone.
● | Audit and Valuation Committee. The Audit and Valuation Committee of each of TYG, TPZ, NTG, TTP and NDP was established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and operates under a written charter adopted |
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and approved by the voteBoard, a current copy of which is available at the Company’s link on the Adviser’s website (www.tortoiseadvisors.com) and in print to any stockholder who requests it from the Secretary of the holders of a majority of the outstanding shares of the Company on 60 days written notice to the Adviser. Each Current Investment Advisory Agreement and its corresponding New Investment Advisory Agreement
● | Nominating and Governance Committee. Each Nominating and Governance Committee member is “independent” as defined under the New York Stock Exchange listing standards, and none are “interested persons” of TYG, TPZ, NTG, TTP or NDP as defined in the 1940 Act. The Nominating and Governance Committee of each Company operates under a written charter adopted and approved by the Board, a current copy of which is available at the Company’s link on the Adviser’s website (www.tortoiseadvisors.com). The Committee: (i) identifies individuals qualified to become Board members and recommends to the Board the director nominees for the next annual meeting of stockholders and to fill any vacancies; (ii) monitors the structure and membership of Board committees and recommends to the Board director nominees for each committee; (iii) reviews issues and developments related to corporate governance issues and develops and recommends to the Board corporate governance guidelines and procedures, to the extent necessary or desirable; (iv) has the sole authority to retain and terminate any search firm used to identify director candidates and to approve the search firm’s fees and other retention terms, though it has yet to exercise such authority; and (v) may not delegate its authority. The Nominating and Governance Committee will consider stockholder recommendations for nominees for membership to the Board so long as such recommendations are made in accordance with the Company’s Bylaws. Nominees recommended by stockholders in compliance with |
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the Bylaws of the Current Investment Advisory AgreementCompany will be evaluated on the same basis as other nominees considered by the Committee. Stockholders should see “Stockholder Proposals and Nominations for the New Investment Advisory Agreement,2020 Annual Meeting” below for information relating to the submission by stockholders of nominees and heldmatters for consideration at a meeting of the Company’s stockholders. Each Company’s Bylaws require all nominees for directors, at the time of nomination, (1) to be at least 21 and less than 75 years of age and have substantial expertise, experience or relationships relevant to the business of the Company, or (2) to be a current director of the Company that has not reached 75 years of age. The Committee has the sole discretion to determine if an individual satisfies the foregoing qualifications. The Committee also considers the broad background of each individual nominee for director, including how such individual would impact the diversity of the Board, but does not have a formal policy regarding consideration of diversity in identifying nominees for director.
● | Compliance Committee. Each Compliance Committee member is “independent” as defined under the New York Stock Exchange listing standards, and none are “interested persons” of the Company as defined in the 1940 Act. Each Company’s Compliance Committee operates under a written charter adopted and approved by the Board. The committee reviews and assesses management’s compliance with applicable securities laws, rules and regulations; monitors compliance with the Company’s Code of Ethics; and handles other matters as the Board or committee chair deems appropriate. |
The Board of Directors’ role in the Company’s risk oversight reflects its responsibility under applicable state law to oversee generally, rather than to manage, the Company’s operations. In line with the Adviser on October 9, 2017 to discuss and address issues and questions. The Transaction Materials provided tothis oversight responsibility, the Board of Directors included, among other things, responsive informationwill receive reports and make inquiry at its regular meetings and as needed regarding (1) the organizationalnature and operational structureextent of Acquirersignificant risks (including investment, compliance and howvaluation risks) that potentially could have a materially adverse impact on the Adviser would be integrated into that structure, (2) the background and qualifications of Lovell Minnick and the executives who will be primarily responsible for the Acquirer’s relationship with
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time. For example, the Audit and Valuation Committee will regularly meet with the Company’s independent public accounting firm to review, among other things, reports on internal controls for financial reporting.
The Board of Directors believes that not all risks that may affect the Company can be identified, that it may not be practical or cost-effective to eliminate or mitigate certain risks, that it may be necessary to bear certain risks (such as investment-related risks) to achieve the Company’s goals and objectives, and that the processes, procedures and controls employed to address certain risks may be limited in their effectiveness. Moreover, reports received by the directors as to risk management matters are typically summaries of relevant information and may be inaccurate or incomplete. As a result of the Transaction.
None of the CompanyCompanies currently has a standing compensation committee. None of the Companies has any employees and its stockholders to approve the New Investment Advisory AgreementYork Stock Exchange does not require boards of directors of registered closed-end funds to have a standing compensation committee.
The following table shows the number of Board and committee meetings held during the fiscal year ended November 30, 2018 for a term expiring upon the earlier of (i) December 31, 2019 or (ii) two years from the effective dateeach of the New Investment Advisory Agreement, subject to stockholder approval andCompanies:
| TYG | TPZ | NTG | TTP | NDP |
Board of Directors | 8 | 6 | 11 | 6 | 6 |
Executive Committee | 0 | 0 | 0 | 0 | 0 |
Audit and Valuation Committee | 4 | 4 | 4 | 4 | 4 |
Nominating and Governance Committee | 3 | 3 | 3 | 3 | 3 |
Compliance Committee | 2 | 2 | 2 | 2 | 2 |
During the closing2018 fiscal year, for each of the Transaction, and resolved to recommend thatCompanies, all directors who were directors during the stockholders2018 fiscal year attended at least 75% of the Company approveaggregate of (1) the New Investment Advisory Agreementtotal number of meetings of the Board and (2) the total number of meetings held by all committees of the Board on which they served. None of the Companies has a policy with respect to such Company.
Director and Officer Compensation
None of the Companies compensates any of its directors considered, among otherwho are interested persons nor any of its officers. The following table sets forth certain information and factors,with respect to the following factors regarding the Transaction’s effect upon the Advisercompensation paid by each Company and the Company’s relationship withFund Complex for fiscal 2018 to each of the Adviser:current independent directors for their services as a director. None of the Companies has any retirement or pension plans.
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Name of | Aggregate Compensation | Pension or | Estimated | Total | ||||
TYG | TPZ | NTG | TTP | NDP | ||||
Independent Directors | ||||||||
Conrad S. Ciccotello | $48,100 | $27,500 | $42,000 | $29,500 | $29,500 | $0 | $0 | $196,600 |
Rand C. Berney | $46,100 | $27,500 | $41,000 | $28,500 | $28,500 | $0 | $0 | $171,600 |
Charles E. Heath(2) | $17,497 | $10,824 | $14,995 | $11,203 | $11,203 | $0 | $0 | $65,722 |
Alexandra A. Herger | $46,100 | $27,500 | $41,000 | $28,500 | $28,500 | $0 | $0 | $171,600 |
Jennifer Paquette(2) | $28,603 | $16,676 | $26,005 | $17,297 | $17,297 | $0 | $0 | $105,878 |
* | For the |
(1) | No amounts have been deferred for any of the persons listed in |
(2) | Mr. Heath retired as a |
For the 2019 fiscal year, each independent director receives an annual retainer from each Company including the Independent Directors, consideredas set forth below, and evaluated all the information provided to it by the Adviser and Lovell Minnick. The directors did not identify any single factor as being all-important or controlling, anda fee of $1,000 for each director may have attributed different levelsmeeting of important to
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| TYG | TPZ | NTG | TTP | NDP |
Annual Board Retainer | $33,800 | $18,000 | $28,200 | $19,000 | $18,000 |
Audit and Valuation Committee Chairman Retainer | $3,000 | $1,000 | $2,000 | $2,000 | $2,000 |
Other Committee Chairman Retainer | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Required Vote. With respect to energy companies, MLP markets and financing (including private financing).
BOARD RECOMMENDATION
The Board of Directors of each of TYG, NTG and TTP unanimously recommends that the common and preferred stockholders of each Company vote “for” Ms. Herger as a director. The Board of Directors of each of TYG, NTG and TTP uananimously recommends that the preferred stockholders vote “for” Mr. Birzer as a director. The Board of Directors of each of TPZ and NDP unanimously recommends that the common stockholders of each Company vote “for” Mr. Birzer as a director and “for” Ms. Herger as a director.
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RATIFICATION OF SELECTION OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors of each Company recommends that the stockholders of the Company ratify the selection of Ernst & Young LLP (“EY”) as the independent registered public accounting firm (“independent auditors”), to audit the accounts of the Company for the fiscal year ending November 30, 2019. EY’s selection was approved by each Company’s Audit and Valuation Committee. Their selection also was ratified and approved by the Board of Directors of each Company, including a majority of the directors who are not “interested persons” of the Company within the meaning of the 1940 Act, and who are “independent” as defined in the New York Stock Exchange listing standards.
EY has audited the financial statements of each Company since prior to each Company’s commencement of business (TYG in February 2004, TPZ in July 2009, NTG in July 2010, TTP in October 2011 and NDP in July 2012) and does not have any direct financial interest or any material indirect financial interest in any of the Companies. A representative of EY is expected to be available at the meeting and to have the opportunity to make a statement and respond to appropriate questions from the stockholders. Each Company’s Audit and Valuation Committee meets twice each year with representatives of EY to discuss the scope of their engagement, review the financial statements of the Company and the results of their examination.
Required Vote
EY will be ratified as a Company’s independent registered public accounting firm by the affirmative vote of a majority of the shares voted, in person or by proxy, at the meeting by the holders of common stock and the holders of preferred stock (if any), voting together as a single class. With respect to each of TYG, NTG and TTP, each common share and each preferred share is entitled to one vote on Proposal One. Abstentionsthis proposal. With respect to TPZ and NDP, each common share is entitled to one vote on this proposal. For the purposes of the vote on this proposal for each Company, abstentions and broker non-votes if any,(which occur when a broker has not received directions from customers and does not have discretionary authority to vote the customers’ shares), will not be counted as shares voted and will have theno effect of a vote against Proposal One.
BOARD RECOMMENDATION
The Board of Directors of each Company unanimously recommends that the stockholders of each Company vote “FOR” approval“for” the ratification of Proposal One.Ernst & Young LLP as their Company’s Independent Registered Public Accounting Firm.
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AUDIT AND VALUATION COMMITTEE REPORT
The Audit and Valuation Committee of each of TYG, TPZ, NTG, TTP and NDP, reviews the Company’s annual financial statements with both management and the independent auditors.
The Audit and Valuation Committee of each Company, in discharging its duties, has met with and has held discussions with management and the Company’s independent auditors. Each Company’s Audit and Valuation Committee has reviewed and discussed the Company’s audited financial statements for the fiscal year ended November 30, 2018 with management. Management of each Company has represented to the independent auditors that the Company’s financial statements were prepared in accordance with U.S. generally accepted accounting principles.
The Audit and Valuation Committee of each Company has also discussed with the independent auditors the matters required to be discussed by Auditing Standard 1301, Communications with Audit Committees, as adopted by the Public Company Accounting Oversight Board. The independent auditors provided to each Company’s Audit and Valuation Committee the written disclosures and the letter required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent auditors’ communications with the Audit and Valuation Committee concerning independence, and each Company’s Audit and Valuation Committee discussed with representatives of the independent auditors their firm’s independence with respect to that Company.
With respect to each Company, based on the Audit and Valuation Committee’s review and discussions with management and the independent auditors, the representations of management and the reports of the independent auditors to the committee, the Audit and Valuation Committee recommended that the Board include the audited financial statements in the Company’s Annual Report for filing with the SEC.
The Audit and Valuation Committee of each of TYG, TPZ, NTG, TTP and NDP Conrad S. Ciccotello (Chairman) Rand C. Berney Alexandra A. Herger Jennifer Paquette |
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Each Company’s Audit and Valuation Committee selected Ernst & Young LLP (“E&Y”)EY as the independent registered public accounting firm to audit the books and records of the Company for its fiscal year ending November 30, 2017. On May 18, 2017, the stockholders of each Company ratified the selection of E&Y. E&Y2019. EY is registered with the Public Company Accounting Oversight Board.
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FEES AND SERVICES
The following table sets forth the approximate amounts of the aggregate fees billed to each Company for the fiscal years ended November 30, 2018 and 2017 by EY, respectively:
TYG | TPZ | NTG | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Audit Fees(1) | $ | 240,000 | $ | 227,000 | $ | 118,000 | $ | 123,000 | $ | 171,000 | $ | 144,000 | ||||||||||||
Audit-Related Fees(2) | — | — | — | — | — | — | ||||||||||||||||||
Tax Fees(3) | $ | 91,000 | $ | 82,000 | $ | 21,000 | $ | 20,000 | $ | 64,000 | $ | 55,000 | ||||||||||||
All Other Fees | — | — | — | — | — | — | ||||||||||||||||||
Aggregate Non-Audit Fees | $ | 91,000 | $ | 82,000 | $ | 21,000 | $ | 20,000 | $ | 64,000 | $ | 55,000 |
TTP | NDP | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Audit Fees(1) | $ | 123,000 | $ | 119,000 | $ | 111,000 | $ | 116,000 | ||||||||
Audit-Related Fees(2) | — | — | — | — | ||||||||||||
Tax Fees(3) | $ | 21,000 | $ | 20,000 | $ | 21,000 | $ | 20,000 | ||||||||
All Other Fees | — | — | — | — | ||||||||||||
Aggregate Non-Audit Fees | $ | 21,000 | $ | 20,000 | $ | 21,000 | $ | 20,000 |
(1) | For professional services rendered with respect to the audit of each Company’s financial statements and the review of each Company’s statutory and regulatory filings with the SEC. |
(2) | For professional services rendered with respect to assurance related services in connection with each Company’s compliance with its rating agency guidelines. |
(3) | For professional services for tax compliance, tax advice and tax planning. |
The Audit and Valuation Committee of each Company has adopted pre-approval policies and procedures. Under these policies and procedures, the Audit and Valuation Committee of each Company pre-approves (i) the selection of the Company’s independent registered public accounting firm, (ii) the engagement of the independent registered public accounting firm to provide any non-audit services to the Company, (iii) the engagement of the independent registered public accounting firm to provide any non-audit services to the Adviser or any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the Company, if the engagement relates directly to the operations and financial reporting of the Company, and (iv) the fees and other compensation to be paid to the independent registered public accounting firm. With respect to each Company, the Chairman of the Audit and Valuation
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Committee of the Company may grant the pre-approval of any engagement of the independent registered public accounting firm for non-audit services of less than $10,000, and such delegated pre-approvals will be presented to the full Audit and Valuation Committee at its next meeting for ratification. Under certain limited circumstances, pre-approvals are not required under securities law regulations for certain non-audit services below certain de minimus thresholds. Since each Company’s respective adoption of these policies and procedures, the Audit and Valuation Committee of the Company has pre-approved all audit and non-audit services provided to the Company by EY. None of these services provided by EY were approved by the Audit and Valuation Committee pursuant to the de minimus exception under Rule 2.01(c)(7)(i)(C) or Rule 2.01(c)(7)(ii) of Regulation S-X. All of EY’s hours spent on auditing each Company’s financial statements were attributed to work performed by full-time permanent employees of EY.
The Adviser paid to EY $458,000 in 2017 and $136,500 in 2018 for tax and other non-audit services provided to the Adviser. These non-audit services were not required to be preapproved by each Company’s Audit and Valuation Committee. No entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to any of the Companies, has paid to, or been billed for fees by, EY for non-audit services rendered to the Adviser or such entity during the Companies’ last two fiscal years.
The Audit and Valuation Committee of each Company has considered whether EY’s provision of services (other than audit services) to the Company, the Adviser or any entity controlling, controlled by, or under common control with the Adviser that provides services to the Company is compatible with maintaining EY’s independence in performing audit services.
OTHER MATTERS
The Board of Directors of each Company knows of no other matters that are intended to be brought before the meeting. If other matters are presented for action, the proxies named in the enclosed form of proxy will vote on those matters in their sole discretion.
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SECURITY OWNERSHIP OF MANAGEMENT AND
CERTAIN BENEFICIAL OWNERS
At December 31, 2018, each director and director nominee beneficially owned (as determined pursuant to Rule 16a-1(a)(2) under the Exchange Act) shares of each Company asoverseen by such director in the Fund Complex having values within the indicated dollar ranges. Other than the Fund Complex, with respect to each Company, none of the closeCompany’s directors and director nominees who are not interested persons of business on the Record Date, is included in Appendix FCompany, nor any of their immediate family members, has ever been a director, officer or employee of the Adviser or its affiliates.
Director | Dollar Range of Holdings in the Company (1) | ||
Interested Persons | TYG | TPZ | NTG |
H. Kevin Birzer | Over $100,000 | $10,001-$50,000 | Over $100,000 |
Independent Persons | |||
Conrad S. Ciccotello | Over $100,000 | $10,001-$50,000 | Over $100,000 |
Rand C. Berney | $10,001-$50,000 | $10,001-$50,000 | $10,001-$50,000 |
Alexandra A. Herger | $1-$10,000 | $1-$10,000 | None |
Jennifer Paquette | $1-$10,000 | $1-$10,000 | $1-$10,000 |
Director | Dollar Range of Holdings | |
Interested Persons | TTP | NDP |
H. Kevin Birzer | $50,001-$100,000 | $10,001-$50,000 |
Independent Persons | ||
Conrad S. Ciccotello | $10,001-$50,000 | $1-$10,000 |
Rand C. Berney | $10,001-$50,000 | $10,001-$50,000 |
Alexandra A. Herger | None | $1-$10,000 |
Jennifer Paquette | $1-$10,000 | $1-$10,000 |
Director | Aggregate Dollar Range |
Interested Persons | |
H. Kevin Birzer | Over $100,000 |
Independent Persons | |
Conrad S. Ciccotello | Over $100,000 |
Rand C. Berney | $50,001-$100,000 |
Alexandra A. Herger | $10,001-$50,000 |
Jennifer Paquette | $10,001-$50,000 |
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(1) | Based on the closing price of each Company’s common shares on the New York Stock Exchange on December 31, 2018. |
(2) | Includes TYG, TPZ, NTG, TTP and NDP. Amounts based on the closing price of each of TYG’s, TPZ’s, NTG’s, TTP’s and NDP’s common shares on the New York Stock Exchange on December 31, 2018. For Mr. Ciccotello, also includes TSIFX, based upon the reported per share net asset value at December 31, 2018. |
At December 31, 2018, each director, each officer and the directors and officers as a group, beneficially owned (as determined pursuant to this Proxy Statement.Rule 13d-3 under the Exchange Act) the following number of shares of common and preferred stock of each Company (or percentage of outstanding shares). Unless otherwise indicated each individual has sole investment and voting power with respect to the shares listed.
| TYG | TPZ | NTG | TTP | NDP |
Independent Directors | |||||
Conrad Ciccotello | 12,018.32(1) | 893.00(2) | 2,370.34 | 1,798.07 | 1,100.00 |
Rand C. Berney | 1,508.00(3) | 1,108.00(3) | 1,416.00(3) | 1,067.00(3) | 1,677.00(3) |
Alexandra A. Herger | 500.00 | 250.00 | 0 | 0 | 1,000.00 |
Jennifer Paquette | 230.00 | 330.00 | 410.00 | 375.00 | 380.00 |
Interested Directors and Officers | |||||
H. Kevin Birzer | 69,792.02(4) | 2,850.00(5) | 13,228.00(6) | 7,517.00(7) | 6,750.00(8) |
P. Bradley Adams | 10,616.40(9) | 1,965.31 | 4,519.24(10) | 509.63(11) | 1,182.32 |
Matthew G.P. Sallee | 7,100.00 | 400.00 | 10,125.00 | 400.00 | 500.00 |
Brian A. Kessens | 500.00(12) | 1,000.00(12) | 4,446.00(13) | 1,150.00(12) | 500.00(12) |
Robert J. Thummel, Jr. | 1,367.00 | 0 | 1,667.00 | 250.00 | 3,000.00 |
Brett Jergens | 1,010.00 | 0 | 0 | 0 | 0 |
Nicholas S. Holmes | 1,750.00 | 0 | 2,500.00 | 0 | 0 |
Stephen Pang | 127.00 | 0 | 0 | 0 | 0 |
Adam Peltzer | 600.00 | 0 | 1,800.00 | 0 | 0 |
Shobana Gopal | 2,698.95(14) | 0 | 1,069.00 | 691.74 | 781.83 |
Diane Bono | 1,371.87(15) | 0 | 0 | 0 | 0 |
Directors and Officers as a Group | 107,585.56(16) | 8,396.31(16) | 37,437.58(16) | 13,108.44(16) | 15,871.15(16) |
None of the independent directors and none of the interested directors and officers hold any TYG preferred shares, NTG preferred shares or TTP preferred shares.
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% of Outstanding Shares (17) | |||||
TYG | TPZ | NTG | TTP | NDP | |
Independent Directors | |||||
Conrad Ciccotello | * | * | * | * | * |
Rand C. Berney | * | * | * | * | * |
Alexandra A. Herger | * | * | * | * | * |
Jennifer Paquette | * | * | * | * | * |
Interested Directors and Officers | |||||
H. Kevin Birzer | * | * | * | * | * |
P. Bradley Adams | * | * | * | * | * |
Matthew G.P. Sallee | * | * | * | * | * |
Brian A. Kessens | * | * | * | * | * |
Robert J. Thummel, Jr. | * | * | * | * | * |
Brett Jergens | * | * | * | * | * |
Nicholas S. Holmes | * | * | * | * | * |
Stephen Pang | * | * | * | * | * |
Adam Peltzer | * | * | * | * | * |
Shobana Gopal | * | * | * | * | * |
Diane Bono | * | * | * | * | * |
Directors and Officers as a Group | * | * | * | * | * |
* | Indicates less than 1%. |
(1) | Mr. Ciccotello holds 620 of these shares jointly with his wife. |
(2) | Mr. Ciccotello holds these shares jointly with his wife. |
(3) | Mr. Berney holds these shares jointly with his wife. |
(4) | Includes 617 shares held by Mr. Birzer’s minor children in accounts established under the Kansas Uniform Transfer to Minor’s Act for which his wife is the custodian, 4.32 shares held jointly with his wife. Excludes shares held by his adult children no longer living at his home. |
(5) | Includes 100 shares held by Mr. Birzer’s minor children in accounts established under the Kansas Uniform Transfer to Minor’s Act for which his wife is the custodian. Excludes shares held by his adult children no longer living at his home. |
(6) | Includes 126 shares held by Mr. Birzer’s minor children in accounts established under the Kansas Uniform Transfer to Minor’s Act for which his wife is the custodian. Excludes shares held by his adult children no longer living at his home. |
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(7) | Includes 116 shares held by Mr. Birzer’s minor children in accounts established under the Kansas Uniform Transfer to Minor’s Act for which his wife is the custodian. Excludes shares held by his adult children no longer living at his home. |
(8) | Includes 100 shares held by Mr. Birzer’s minor children in accounts established under the Kansas Uniform Transfer to Minor’s Act for which his wife is the custodian. Excludes shares held by his adult children no longer living at his home. |
(9) | Includes 4,604.66 shares held by Mr. Adams as sole trustee of a joint trust for Mr. Adams and his wife, and 137.06 shares held by his wife, and excludes shares held by an adult child no longer living at his home. |
(10) | Includes 360.85 shares held by Mr. Adams as sole trustee of a joint trust for Mr. Adams and his wife. |
(11) | Includes 141.33 shares held by Mr. Adams as sole trustee of a joint trust for Mr. Adams and his wife and 137.83 shares held by his wife. |
(12) | Held with his wife. |
(13) | Includes 3,966 shares held with his wife. |
(14) | Includes 360 shares held jointly with her husband. |
(15) | Includes 340.42 shares held jointly with her husband. |
(16) | For TYG, total excludes shares held by Messrs. Kessens, Thummel, Jergens, Pang and Peltzer, who are not officers of TYG. For TPZ, total excludes shares held by Mr. Sallee, who is not an officer of TPZ. For NTG, total excludes shares held by Messrs. Kessens and Thummel, who are not officers of NTG. For TTP, total excludes shares held by Messrs. Sallee and Thummel, who are not officers of TTP. For NDP, total excludes shares held by Messrs. Sallee and Kessens, who are not officers of NDP. |
(17) | Based on the following shares outstanding as of December 31, 2018: 53,635,054 shares of TYG common stock, 6,951,333 shares of TPZ common stock, 63,208,377 shares of NTG common stock, 10,016,413 shares of TTP common stock, and 14,696,260 shares of NDP common stock. |
The table below indicates the persons known to TPZ to own 5% or more of its common stock as of December 31, 2018.
Name and Address | Number of TPZ | Percent of Class |
Advisors Asset Management, Inc.(*) | 365,232 | 5.25% |
(*) | Information based on a Schedule 13G filed on February 11, 2019 reporting sole voting and dispositive power over the shares listed in the table above. Advisors Asset Management, Inc. is the sponsor of several unit investment trusts which hold shares of TPZ. Advisors Investment Management, Inc., disclaims beneficial ownership of the identified shares of TPZ. |
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The table below indicates the outstanding sharespersons known to NDP to own 5% or more of each classits common stock as of each Company are provided in Appendix HDecember 31, 2018.
Name and Address | Number of NDP | Percent of Class |
First Trust Portfolios L.P. (*) | 933,203 | 6.43% |
(*) | Information based on a Schedule 13G amendment jointly filed on January 24, 2019 by First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation reporting beneficial ownership of 933,203 shares, sole voting power over 0 shares, shared voting power over 0 shares, sole dispositive power over 0 shares, and shared dispositive power over 933,203 shares. The Charger Corporation is the General Partner of both First Trust Portfolios L.P. and First Trust Advisors L.P. First Trust Portfolios L.P. acts as sponsor of certain unit investment trusts which hold shares of NDP. First Trust Advisors L.P. acts as portfolio supervisor of the unit investment trusts sponsored by First Trust Portfolios L.P. that hold shares of NDP. Each of the First Trust Portfolios L.P., First Trust Advisors L.P and The Charter Corporation disclaims beneficial ownership of the identified shares of NDP. |
As of December 31, 2018, to this Proxy Statement. To the best knowledge of each Company,TYG, no person held (sole or entity beneficially ownedshared) power to vote or dispose of more than 5% of the outstanding common shares of any classTYG.
As of a Fund exceptDecember 31, 2018, to the knowledge of NTG, no person held (sole or shared) power to vote or dispose of more than 5% of the outstanding common shares of NTG.
As of December 31, 2018, to the knowledge of TTP, no person held (sole or shared) power to vote or dispose of more than 5% of the outstanding common shares of TTP.
The table below indicates the persons known to TYG to own 5% or more of its shares of preferred stock as stated in Appendix H.of December 31, 2018.
Name and Address | Number of TYG | Percent |
Babson Capital Management LLC (*) 470 Atlantic Ave Boston, MA 02210-2208
Massachusetts Mutual Life Insurance Company (*) 1295 State Street Springfield, MA 01111 | 4,600,000 | 27.9% |
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Name and Address | Number of TYG | Percent |
Voya Financial, Inc. (**) 230 Park Ave. 14th Floor New York, NY 10169 | 2,700,000 | 16.4% |
The Guardian Life Insurance Company of America (***) 7 Hanover Square New York, NY 10004 | 2,100,000 | 12.7% |
Knights of Columbus (****) One Columbus Plaza New Haven, CT 06510 | 2,100,000 | 12.7% |
Principal Global Investors, LLC (*****) Principal Life Insurance Company (*****) RGA Reinsurance Company (*****) 711 High Street, G-26 Des Moines, IA 50392 | 1,800,000 | 10.9% |
Teachers Insurance and Annuity Association of America (****) 730 Third Avenue New York, NY 10017 | 1,400,000 | 8.5% |
Athene Asset Management, L.P. (******) Athene Annuity and Life Company (******) Royal Neighbors of America (******) 7700 Mills Civic Parkway West Des Moines, IA 50266 | 1,360,000 | 8.2% |
(*) | Information based on Schedule 13G amendment filed on January 7, 2015. Babson Capital Management LLC reports that, in its capacity as investment adviser, it has sole voting and dispositive power with respect to the 4,600,000 shares of Mandatory Redeemable Preferred Stock held in certain advisory accounts owned (directly or indirectly) by affiliated entities and therefore may be deemed to beneficially own such shares. Babson Capital Management LLC is a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company (“MassMutual”), the direct beneficial owner of 4,415,000 shares of Mandatory Redeemable Preferred Stock. In addition, C.M. Life Insurance Company, a wholly-owned subsidiary of MassMutual, owns 185,000 shares of Mandatory Redeemable Preferred Stock, which therefore may be deemed to be indirectly owned by MassMutual. |
(**) | Information based on a Schedule 13G filed on February 13, 2015. The Schedule 13G was filed by Voya Financial, Inc. as the ultimate parent corporation of the following entities, each of which is a direct or indirect wholly owned subsidiary of Voya Financial, Inc.: Voya Retirement Insurance and Annuity Company, Voya Insurance and Annuity Company, ReliaStar Life Insurance Company, Security Life of Denver Insurance Company, ReliaStar Life Insurance Company of New York and Voya Investment Management, LLC (as investment adviser to the foregoing subsidiaries). Voya Financial, Inc. reports that it has sole voting and dispositive power over the shares listed in the table above. |
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(***) | Information based on a Schedule 13G amendment filed on January 13, 2017. The Guardian Life Insurance Company of America reports that it has sole voting and dispositive power over the shares listed in the table above. |
(****) | Information based on a Securities Purchase Agreement dated October 9, 2014. |
(*****) | Information based on a Securities Purchase Agreement dated October 9, 2014 through which Principal Global Investors, LLC obtained beneficial ownership of shares on behalf of Principal Life Insurance Company and RGA Reinsurance Company. |
(******) | Information based on a Securities Purchase Agreement dated October 9, 2014 through which Athene Asset Management, L.P. obtained beneficial ownership of shares on behalf of Athene Asset and Life Company and Royal Neighbors of America in its capacity as investment adviser. |
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The table below indicates the persons known to NTG to own 5% or more of its shares of preferred stock as of December 31, 2018.
Name and Address | Number of | Percent |
Prudential Financial, Inc.(*) 751 Broad Street Newark, New Jersey 07102-3777 | 3,480,000 | 65.9% |
Mutual of Omaha Insurance Company(**) United of Omaha Life Insurance Company (**) Mutual of Omaha Plaza Omaha, Nebraska 68175 | 400,000 | 9.1% |
National Life Insurance Company(***) One National Life Drive Montpelier, Vermont 05604 | 400,000 | 9.1% |
MetLife Insurance K.K.(****) 1-3 Kioicho, Chiyoda-ku Tokyo, 102-8525 JAPAN | 392,000 | 8.9% |
Metropolitan Life Insurance Company(****) 200 Park Avenue New York, New York 10166 | 296,000 | 6.7% |
Employers Reassurance Corporation(****) 7101 College Boulevard, Suite 1400 Overland Park, Kansas 66210 | 228,000 | 5.2% |
(*) | Information is based on a Schedule 13G amendment filed on February 4, 2019 by Prudential Financial Inc., reporting sole voting and dispositive power as a parent holding company of The Prudential Insurance Company of America which beneficially owns 1,880,000 shares, Prudential Retirement Insurance and Annuity Company which beneficially owns 1,600,000 shares and PGIM, Inc. which beneficially owns 3,480,000 shares. |
(**) | Information is based on Schedule 13G amendment filed on January 8, 2016. Mutual of Omaha Insurance Company reports that it has sole voting and dispositive power over the shares listed in the table above. Mutual of Omaha Insurance Company reports that it is the parent company of United of Omaha Life Insurance Company which acquired the security being reported on. |
(***) | Information based on a Securities Purchase Agreement dated December 8, 2015. |
(****) | Information based on a Securities Purchase Agreement dated December 13, 2017. |
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The table below indicates the persons known to TTP to own 5% or more of its shares of preferred stock as of December 31, 2018.
Name and Address | Number of | Percent |
Prudential Financial, Inc.(*) 751 Broad Street Newark, NJ 07102-377 | 640,000 | 100% |
(*) | Information is based on a Schedule 13G reporting sole voting and dispositive power as a parent holding company of PGIM, Inc. which beneficially owns 640,000 shares and The Prudential Insurance Company of America which has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the identified shares. |
INVESTMENT ADVISER
Tortoise Capital Advisors, LLC is each Company’s investment adviser. The Adviser’s address is 11550 Ash Street, Suite 300, Leawood, Kansas 66211. As of February 28, 2019, the Adviser had approximately $16.3 billion of client assets under management.
MORE INFORMATION ABOUT THE MEETING
Stockholders. At the record date, each Company had the following number of shares issued and outstanding:
| Common Shares | Preferred Shares |
TYG | 53,635,054 | 16,500,000 |
TPZ | 6,951,333 | N/A |
NTG | 63,208,377 | 5,280,000 |
TTP | 10,016,413 | 640,000 |
NDP | 14,732,857 | N/A |
How Proxies Will Be Voted.Voted. All proxies solicited by the Board of Directors of each Company that are properly executed and received prior to the meeting, and that are not revoked, will be voted at the meeting. Shares represented by those proxies will be voted in accordance with the instructions marked on the proxy. If no instructions are specified, shares will be counted as a vote FOR the proposals described in this proxy statement.
How To Vote.Vote. You may vote your shares via the internet, by telephone (for internet and telephone voting, please follow the instructions on the proxy ballot), or by simply completing and signing the enclosed proxy ballot,card (your ballot), and mailing it in the postage-paid envelope included in this package. You may also vote in person if you are able to attend the meeting. However, even if you plan to attend the meeting, we urge you to cast your vote early. That will ensure your vote is counted should your plans change.
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Expenses and Solicitation of Proxies.Proxies. The expenses of preparing, printing and mailing the enclosed proxy card, the accompanying notice and this proxy statement and all other costs, in connection with the solicitation of proxies will be borne by the parties to the Purchase Agreement.
Revoking a Proxy. Proxy. With respect to each Company, at any time before it has been voted, you may revoke your proxy by: (1) sending a letter stating that you are revoking your proxy to the Secretary of the Company at the Company’s offices located at 11550 Ash Street, Suite 300, Leawood, Kansas 66211; (2) properly executing and sending a later-dated proxy; or (3) attending the Meeting,meeting, requesting return of any previously delivered proxy, and voting in person.
Quorum. With respect to each Company, the presence, in person or by proxy, of holders of shares entitled to cast a majority of the votes entitled to be cast (without regard to class) constitutes a quorum. For purposes of determining the presence or absence of a quorum, shares present at the Meetingannual meeting that are not voted, or abstentions, and broker non-votes (which occur when a broker has not received directions from customers and does not have discretionary authority to vote the customers’ shares), if any, will be treated as shares that are present at the meeting but have not been voted.
With respect to each Company, if a quorum is not present in person or by proxy at the Meeting,meeting, the Chairmanchairman of the Meetingmeeting or the stockholders entitled to vote at such meeting, present in person or by proxy, have the power to adjourn the Meetingmeeting to a date not more than 120 days after the Record Dateoriginal record date without notice other than announcement at the Meeting.meeting.
Availability of Annual Report of TYG, TPZ, NTG, TTP and NDP. Each Company will furnish without charge upon written request a copy of its most recent annual report. Each such request must include a good faith representation that, as of the record date, the person making such request was a beneficial owner of the Company’s common shares entitled to vote at the annual meeting of stockholders. Such written request should be directed to the Company’s Secretary at 11550 Ash Street, Suite 300, Leawood, Kansas 66211, (866) 362-9331.
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SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 30(h) of the 1940 Act and Adjournment. Maryland law andSection 16(a) of the Exchange Act require each Company’s bylaws provide thatdirectors and officers, the ChairmanAdviser, affiliated persons of the Meeting may prescribe such rules,Adviser and persons who own more than 10% of a registered class of the Company’s equity securities to file forms reporting their affiliation with the Company and reports of ownership and changes in ownership of the Company’s shares with the SEC and the New York Stock Exchange. Those persons and entities are required by SEC regulations to furnish the applicable Company with copies of all Section 16(a) forms they file. Based on a review of those forms furnished to the Company, each Company believes that its directors and proceduresofficers, the Adviser and take such action as,affiliated persons of the Adviser have complied with all applicable Section 16(a) filing requirements during the last fiscal year, except that Mr. Berney was late in reporting shares of NTG acquired pursuant to the discretionexercise of rights, which were reported on Form 5, and Lovell Minnick Partners LLC, who is the majority owner of the Adviser’s parent, was late in filing Form 3s reporting initial ownership for each of the Companies. To the knowledge of management of each Company, no person is the beneficial owner (as defined in Rule 16a-1 under the Exchange Act) of more than 10% of a class of such Chairman, are appropriate for the proper conductCompany’s equity securities, except as set forth above with respect to preferred shares of the Meeting. This may include, without limitation, recessing or adjourning the Meeting to a later dateTYG, NTG and timeTTP.
ADMINISTRATOR
TYG, TPZ, NTG, TTP and place announced at the Meeting, including for the purpose of soliciting additional proxies if there are insufficient votes at the time of the Meeting to approve any proposal, without notice other than announcement at the Meeting.
STOCKHOLDER COMMUNICATIONS
Stockholders are able to send communications to the Board of Directors of each Company. Communications should be addressed to the Secretary of the applicable Company at its principal offices at 11550 Ash Street, Suite 300, Leawood, Kansas 66211. The Secretary will forward any communications received directly to the Board of Directors or particular director, as applicable.
CODE OF ETHICS
Each of the Companies has adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that establishes personal trading procedures for employees designated as access persons and which is available through the Company’s link on its investment adviser’s website (www.tortoiseadvisors.com).
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STOCKHOLDER PROPOSALS AND NOMINATIONS FOR THE 20182019 ANNUAL MEETING
Method for Including Proposals in a Company’s Proxy Statement. Under the rules of the SEC, if you want to have a proposal included in a Company’s proxy statement for its next annual meeting of stockholders, that proposal must be received by the Secretary of the Company at 11550 Ash Street, Suite 300, Leawood, Kansas 66211, not later than 5:00 p.m., Central Time on December 4, 2017.2019. Such proposal must comply with all applicable requirements of Rule 14a-8 of the Exchange Act. Timely submission of a proposal does not mean the proposal will be included in the proxy material sent to stockholders.
Other Proposals and Nominations. If you want to nominate a director or have other business considered at a Company’s next annual meeting of stockholders but do not want those items included in such Company’sour proxy statement, you must comply with the advance notice provisionsprovision of the Company’s Bylaws. Under each Company’s Bylaws, nominations for director or other business proposals to be addressed at the Company’s next annual meeting may be made by a stockholder who has delivered a notice to the Secretary of the Company at 11550 Ash Street, Suite 300, Leawood, Kansas 66211, no earlier than November 4, 20172019 for each of TPZ, NTG, TTP and NDP and December 4, 20172019 for TYG, and nonor later than 5:00 p.m. Pacific Time on December 4, 20172019 for each of NTG, TTP and NDP and 5:00 p.m. Central Time on December 4, 20172019 for TPZ and January 3, 20182019 for TYG. The stockholder must satisfy certain requirements set forth in the Company’s Bylaws and the notice must contain specific information required by the Company’s Bylaws. With respect to nominees for director, the notice must include, among other things, the name, age, business address and residence address of any nominee for director, certain information regarding such person’s ownership of Company shares, and all other information relating to the nominee as is required to be disclosed in solicitations of proxies in an election contest or as otherwise required by Regulation 14A under the Exchange Act. With respect to other business to be brought before the meeting, a notice must include, among other things, a description of the business and any material interest in such business by the stockholder and certain associated persons proposing the business. Any stockholder wishing to make a proposal should carefully read and review the applicable Company’s Bylaws. A copy of each Company’s Bylaws may be obtained by contacting the Secretary of the
These advance notice provisions are in addition to, and separate from, the requirements that a stockholder must meet in order to have a proposal included in any Company’s proxy statement under the rules of the SEC.
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A proxy granted by a stockholder will give discretionary authority to the proxies to vote on any matters introduced pursuant to the above advance notice Bylaw provisions, subject to applicable rules of the SEC.
By Order of the Board of Directors | |
Common Shares | Preferred Shares | |
TYG | 49,311,266 | 16,500,000 |
TPZ | 6,951,333 | — |
NTG | 47,246,780 | 4,400,000 |
TTP | 10,016,413 | 640,000 |
NDP | 14,583,662 | — |
Diane M. Bono | Secretary | ||
April 2, 2019
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TYG Common Shares | TPZ Common Shares | NTG Common Shares | TTP Common Shares | NDP Common Shares | |
Independent Directors | |||||
Conrad Ciccotello | 9,985.61(1) | 893.00(2) | 1,436.35 | 1,559.72 | 1,000.00 |
Rand C. Berney | 1,508.00(3) | 1,094.00(3) | 1,062.00(3) | 1,067.00(3) | 1,677.00(3) |
Charles Heath | 15,000.00(4) | 3,500.00(4) | 3,500.00(4) | 1,000.00 | 1,000.00 |
Alexandra A. Herger | 0 | 250.00 | 0 | 0 | 1,000.00 |
Interested Directors and Officers | |||||
H. Kevin Birzer | 70,108.09(5) | 2,650.00(6) | 5,620.00(7) | 7,317.00(8) | 6,550.00(9) |
Terry C. Matlack | 54,987.72(10) | 8,967.09(11) | 16,476.08(11) | 9,614.44(11) | 7,292.57(11) |
P. Bradley Adams | 8,993.78(12) | 2,838.41(13) | 796.07(14) | 453.86(15) | 942.65 |
Matthew G.P. Sallee | 1,100.00 | N/A | 1,100.00 | N/A | N/A |
Brian A. Kessens | N/A | 720.00(16) | N/A | 1,150.00(16) | N/A |
Robert J. Thummel, Jr. | N/A | N/A | N/A | N/A | 2,100.00 |
Adam Peltzer | N/A | 0 | N/A | N/A | N/A |
Stephen Pang | N/A | N/A | N/A | 0 | N/A |
TYG Common Shares | TPZ Common Shares | NTG Common Shares | TTP Common Shares | NDP Common Shares | |
Brett Jergens | N/A | N/A | N/A | N/A | 0 |
Nicholas S. Holmes | 750 | N/A | 0 | N/A | N/A |
Shobana Gopal | 2,386.58(17) | 0 | 650.37 | 600.28 | 628.52 |
Diane Bono | 1,186.53(18) | 0 | 0 | 0 | 0 |
Directors and Officers as a Group | 166,006.31 | 20,912.50 | 30,640.87 | 22,762.30 | 22,190.74 |
Name and Address | Number of TYG Common Shares | Percent of Class |
Bank of America Corporation(*) 100 N. Tryon Street Charlotte, NC 28255 | 2,508,796 | 5.1% |
Name and Address | Number of NTG Common Shares | Percent of Class |
Morgan Stanley(*) Morgan Stanley Smith Barney LLC(*) 1585 Broadway New York, NY 10036 | 3,444,861 | 7.3% |
Name and Address | Number of TTP Common Shares | Percent of Class |
Morgan Stanley(*) Morgan Stanley Smith Barney LLC(*) 1585 Broadway New York, NY 10036 | 651,439 | 6.5% |
Guggenheim Capital, LLC(**) Guggenheim Partners, LLC(**) Guggenheim Funds Services, LLC(**) Guggenheim Funds Distributors, LLC(**) 227 West Monroe Street Chicago, IL 60606 GI Holdco II LLC(**) GI Holdco LLC(**) Guggenheim Partners Investment Management Holdings, LLC(**) 330 Madison Avenue New York, NY 10017 | 545,007 | 5.4% |
Name and Address | Number of TYG Preferred Shares | Percent of Class |
Barings LLC (*) 470 Atlantic Ave Boston, MA 02210-2208 Massachusetts Mutual Life Insurance Company (*) 1295 State Street Springfield, MA 01111 | 4,600,000 | 27.9% |
Voya Financial, Inc. (**) 230 Park Ave. 14th Floor New York, NY 10169 | 2,700,000 | 16.4% |
The Guardian Life Insurance Company of America (***) 7 Hanover Square New York, NY 10004 | 2,100,000 | 12.7% |
Knights of Columbus (****) One Columbus Plaza New Haven, CT 06510 | 2,100,000 | 12.7% |
Athene Asset Management, L.P. (*****) Athene Annuity and Life Company (*****) Royal Neighbors of America (*****) 7700 Mills Civic Parkway West Des Moines, IA 50266 | 1,800,000 | 10.9% |
Principal Global Investors, LLC (******) Principal Life Insurance Company (******) RGA Reinsurance Company (******) 711 High Street, G-26 Des Moines, IA 50392 | 1,800,000 | 10.9% |
Teachers Insurance and Annuity Association of America (****) 730 Third Avenue New York, NY 10017 | 1,400,000 | 8.5% |
Name and Address | Number of NTG Preferred Shares | Percent of Class |
Massachusetts Mutual Life Insurance Co.(*) 1295 State Street Springfield, Massachusetts 01111 | 2,500,000 | 56.8% |
Prudential Financial, Inc.(**) 751 Broad Street Newark, New Jersey 07102-3777 | 1,000,000 | 22.7% |
Mutual of Omaha Insurance Company(***) United of Omaha Life Insurance Company Mutual of Omaha Plaza Omaha, Nebraska 68175 | 400,000 | 9.1% |
National Life Insurance Company(****) One National Life Drive Montpelier, Vermont 05604 | 400,000 | 9.1% |
Name and Address | Number of TTP Preferred Shares | Percent of Class |
Massachusetts Mutual Life Insurance Co.(*) 1295 State Street Springfield, Massachusetts 01111 | 520,000 | 81.2% |
Phoenix Life Insurance Company (**) One American Row Hartford, CT 06102 | 120,000 | 18.8% |