Tortoise Investment Management, LLC (“Tortoise”) is a New York limited liability company
formed in September 2004, and has been registered as an investment adviser with the United
States Securities and Exchange Commission since January 13, 2006. Rochelle Yankwitt, a
member of our Board of Managers, is Tortoise’s principal owner through a trust for which
she serves as trustee. Tortoise’s management is vested in its three-member Board of
Managers, currently comprised of: Chief Operating Officer, Riva Roloff; Managing Director,
Justin Singer; and Rochelle Yankwitt. Michael Mattern serves as Tortoise’s Chief
Compliance Officer.
Tortoise provides customized, sophisticated investment management and financial advice.
Portfolios are managed with an understanding of each client’s complete financial
circumstances.
We have structured our business to put your interests first in every aspect of our relationship:
we are, and always have been, your fiduciary, independent, and fee-only.
Every investor should have a strategic plan that coordinates investments into an integrated
whole and incorporates the entirety of the investor’s financial circumstances. An integrated
plan, properly implemented, leads to disciplined decision-making instead of making
individual decisions in a vacuum or letting inertia govern and doing nothing.
Our investment strategy emphasizes risk management, a conservative, long-term approach,
and tax-efficiency. We believe that it is more important to maximize the probability of having
enough money rather than taking the risk necessary to strive to have the most money.
Risk and potential return are inextricably entwined. The key to successfully navigating the
vagaries of the capital markets is having a more realistic assessment of the universe of
possible outcomes, the uncertainty of the future, and the impact of potential losses on real
life. A more fully developed understanding of your ability and willingness to bear risk
enhances our ability to take the appropriate amount of risk on your behalf. This
understanding can only come from on-going, open discussions with you, informed by our
professional judgment.
Tortoise provides discretionary investment management primarily to high net-worth
individuals and trusts, both making and implementing the investment decisions. A
substantial portion of our clientele consists of professionals in demanding careers who
appreciate the combination of expertise, implementation and global advice from a
trustworthy advisor.
In addition to what is customarily referred to as investment management, upon specific client
request Tortoise may advise clients on a variety of financial, non-investment issues. These
issues may include among others: college and retirement planning, mortgage financing,
general liabilities management, insurance, charitable giving, estate planning, and wealth
transfer. In cases where we discuss estate planning, inter-generational gifting or related
matters with a client, and some, but not all, other family members are clients, a potential
conflict (or the appearance thereof) may arise. The client retains absolute discretion as to
whether or not to implement any of Tortoise’s advice. While Tortoise believes that it is
important for the client to address financial, non-investment issues on an ongoing basis,
Tortoise’s fee, as set forth at Item 5 below, will remain the same regardless of whether the
client decides to address financial, non-investment issues with Tortoise.
The services that we provide vary in certain respects based on the needs and desires of
individual clients. For example, some clients have more unresolved financial planning
matters than others do. In addition, different clients prefer different formats and frequencies
of communication. And, of course, each client’s investment portfolio is driven by the client’s
particular circumstances. Clients may impose restrictions on certain investments as
described in the Investment Discretion section. We do not provide a truncated, more limited
version of our services. We do not serve as your attorney, accountant or insurance agent, and
no portion of our services should be construed as same. Accordingly, Tortoise does not prepare
legal documents, prepare tax returns, or sell insurance products. To the extent requested by
a client, we may recommend the services of other professionals for non-investment
implementation purposes (i.e., attorneys, accountants, insurance, etc.). Clients are under no
obligation to engage the services of any recommended professional, who shall be solely
responsible for the quality and competency of the services they provide. If the client engages
any unaffiliated recommended professional, and a dispute arises related to the engagement,
the client should seek recourse exclusively from and against the engaged professional.
Miscellaneous
Retirement Plan Rollovers and Conflicts of Interest. A client or prospective client leaving an
employer typically has four options regarding an existing retirement plan (and may engage
in a combination of these options): (i) leave the money in the former employer’s plan, if
permitted, (ii) roll over the assets to the new employer’s plan, if one is available and rollovers
are permitted, (iii) roll over to an Individual Retirement Account (“IRA”), or (iv) cash out the
account value (which could, depending upon the client’s age, result in adverse tax
consequences). If Tortoise recommends that a client roll over retirement plan assets into an
account to be managed by Tortoise, such a recommendation creates a conflict of interest if
Tortoise will earn new (or increase its current) compensation as a result of the rollover. Of
course, a similar conflict of interest arises any time a client contemplates putting additional
assets (whether retirement plan assets or otherwise) under Tortoise’s management. If
Tortoise provides a recommendation as to whether a client should engage in a rollover or not
(whether it is from an employer’s plan or an existing IRA), Tortoise is acting as a fiduciary
within the meaning of Title I of the Employee Retirement Income Security Act and/or the
Internal Revenue Code, as applicable, which are laws governing retirement accounts. No
client is under any obligation to roll over retirement plan assets to an account managed by
Tortoise.
Portfolio Trading Activity. As part of its investment advisory services, Tortoise will review
client portfolios on an ongoing basis to determine if any changes are necessary based upon
various factors, including, but not limited to, investment performance, additions,
withdrawals, and/or a change in the client’s investment objectives. A review does not
necessarily imply that some action will be taken. In fact, Tortoise often determines that
taking no action, in the particular circumstances, is the best action. Clients remain subject
to the fees described in Item 5 below during periods of account trading inactivity.
Trustee Directed Plans. Tortoise can be engaged to provide discretionary investment advisory
services to ERISA retirement plans, whereby the Firm will manage plan assets consistent
with the investment objectives designated by the plan trustees. In these engagements,
Tortoise will serve as a fiduciary as that term is defined under The Employee Retirement
Income Security Act of 1974 (“ERISA”). Tortoise will generally provide services on an “assets
under
management” fee basis according to the terms and conditions of a written agreement
between the plan and Tortoise.
Client Retirement Plan Assets. Upon engagement to do so, Tortoise shall manage assets held
in a client’s employer-sponsored 401(k), but their investment selections are limited to the
options available on the applicable platform or accompanying brokerage link. Tortoise will
not receive any communications from the plan sponsor or custodian, and those clients are
exclusively obligated to notify Tortoise of any changes in investment alternatives,
restrictions, etc. pertaining to the retirement account.
Unaffiliated Private Investment Funds. Tortoise does not generally recommend private
investment funds, However, when requested by a client, Tortoise may discuss investment in
unaffiliated private investment funds (any corresponding purchase by the client shall be on
a non-discretionary basis). If Tortoise determines to provide advisory services, Tortoise’s role
shall be limited to its initial and ongoing investment review and monitoring services, and,
unless determined by Tortoise to the contrary, in writing, the amount of assets invested in
the fund(s) shall be included as part of “assets under management” for purposes of Tortoise
calculating its investment advisory fee. Tortoise’s advisory fee shall be in addition to the
fund’s fees. Tortoise clients are under absolutely no obligation to consider or make an
investment in any private investment fund(s).
Private investment funds generally involve various risk factors, including, but not limited to,
potential for complete loss of principal, liquidity constraints and lack of transparency, a
complete discussion of which is set forth in each fund’s offering documents, which will be
provided to each client for review and consideration. Unlike liquid investments that a client
may own, private investment funds do not provide daily liquidity or pricing. Each prospective
client investor will be required to complete a Subscription Agreement, pursuant to which the
client shall establish that the client is qualified for investment in the fund, and acknowledges
and accepts the various risk factors that are associated with such an investment.
Interval Funds: Risks and Limitations. Where appropriate, Tortoise may utilize interval
funds. An interval fund is a non-traditional type of closed-end mutual fund that periodically
offers to buy back a percentage of outstanding shares from shareholders. Investments in an
interval fund involve additional risk, including lack of liquidity and restrictions on
withdrawals.
During any time periods outside of the specified repurchase offer window(s), investors will be
unable to sell their shares of the interval fund. There is no assurance that an investor will be
able to tender shares when or in the amount desired. There can also be situations where an
interval fund has a limited amount of capacity to repurchase shares and may not be able to
fulfill all purchase orders. In addition, the eventual sale price for the interval fund could be
less than the interval fund value on the date that the sale was requested.
While an interval fund periodically offers to repurchase a portion of its securities, there is no
guarantee that investors may sell their shares at any given time or in the desired amount.
As interval funds can expose investors to liquidity risk, investors should consider interval
fund shares to be an illiquid investment. Typically, interval funds are not listed on any
securities exchange and are not publicly traded. Therefore, there is no secondary market for
the fund’s shares.
Because these types of investments involve certain additional risk, these funds will only be
utilized when consistent with a client’s investment objectives, individual situation,
suitability, tolerance for risk and liquidity needs. Investment should be avoided where an
investor has a short-term investing horizon or cannot bear the loss of some, or all, of the
investment. There can be no assurance that an interval fund investment will prove profitable
or successful. In light of these enhanced risks, a client may direct Tortoise, in writing, not to
purchase interval funds for the client’s account.
Cash Sweep Accounts. Certain account custodians can require that cash proceeds from
account transactions or new deposits, be swept to and/or initially maintained in a specific
custodian designated sweep account. The yield on the sweep account will generally be lower
than those available for other money market accounts. When this occurs, to help mitigate the
corresponding yield differential, Tortoise, within a reasonable period of time, will generally
(with exceptions) purchase a higher yielding money market fund (or other type security)
available on the custodian’s platform, unless Tortoise reasonably anticipates that it will
utilize the cash proceeds in the short-term to purchase additional investments for the client’s
account. Exceptions and/or modifications can and will occur with respect to all or a portion of
the cash balances for various reasons, including, but not limited to the amount of the
difference between the sweep account and a money market fund, the size of the case balance,
an indication from the client of a need for access to such cash, or the client has a demonstrated
history of writing checks from the account.
The above does not apply to the cash component maintained within Tortoise’s actively
managed investment strategy (the cash balances for which shall generally remain in the
custodian designated cash sweep account), an indication from the client of a need for access
to such cash, assets allocated to an unaffiliated investment manager, and cash balances
maintained for fee billing purposes.
The client shall remain exclusively responsible for cash balance decisions and corresponding
transactions for cash balances maintained in any Tortoise unmanaged accounts.
Client Obligations. In performing our services, Tortoise will not verify any information
received from the client or from the client’s other professionals and, clients authorize Tortoise
to rely on that information. Clients are responsible to promptly notify Tortoise if there is ever
any change in their financial situation or investment objectives for the purpose of reviewing,
evaluating, or revising our previous recommendations and services.
Investment Risk. Investing in securities involves risk of loss that clients should be prepared
to bear, including the loss of principal investment. Past performance does not guarantee
future results. Different types of investments involve varying degrees of risk, and it should
not be assumed that future performance of any specific investment or investment strategy
(including the investments and/or investment strategies recommended or undertaken by
Tortoise) will be profitable or equal any specific performance level. Investment strategies
such as asset allocation, diversification, or rebalancing do not assure or guarantee better
performance and cannot eliminate the risk of investment losses. There is no guarantee that
a portfolio employing these or any other strategy will outperform a portfolio that does not
engage in such strategies. While asset values may increase and client account values could
benefit as a result, it is also possible that asset values may decrease and client account values
could suffer a loss.
Tortoise does not manage or sponsor a Wrap Fee Program.
As of December 31, 2023, Tortoise managed $1,431,899,609 of client assets on a discretionary
basis and $29,312,289 of client assets on a non-discretionary basis.