Sep 13, 2017   SOURCE: BusinessWire

Tortoise Index Solutions Announces Index Updates for Third Quarter 2017 and Methodology Changes

Tortoise Index Solutions today announced upcoming additions and deletions to its indices as part of its regular quarterly rebalancing for the third quarter of 2017. Following the close of trading on Sept. 15, 2017, the indices will be rebalanced and as a result, the following changes will become effective.

 

Tortoise MLP Index®

(TMLP/TMLPT)

Action   Company   Ticker(s)
Addition   Alliance Resource Group   ARLP
Deletion   Navios Maritime Midstream Partners LP   NAP

The full constituent list can be viewed at http://www.tortoiseindexsolutions.com/tmlp/constituents.

     

Tortoise North American Pipeline IndexSM

(TNAP/TNAPT)

Action       Company       Ticker(s)
Addition       N/A       N/A
Deletion       UGI Corp       UGI

The full constituent lists can be viewed at http://www.tortoiseindexsolutions.com/tnap/constituents.

 

Tortoise North American Oil & Gas Producers IndexSM

(TNEP/TNEPT)

Action   Company   Ticker
Addition   N/A   N/A
Deletions   EP Energy Corp

Energy XXI Gulf Coast Inc

TORC Oil & Gas Ltd

  EPE

EXXI

TOG CN

The full constituent list can be viewed at http://www.tortoiseindexsolutions.com/tnep/constituents.

 

Tortoise North American Water IndexSM

(TBLUE/TBLUET)

Action   Company   Ticker
Addition   N/A   N/A
Deletion   N/A   N/A

The full constituent list can be viewed at http://www.tortoiseindexsolutions.com/tblue/constituents.

Changes to Methodology

To help achieve the objective of maintaining a diverse and investable asset class universe, we are updating the methodology governing the maximum weight of individual constituents within Tortoise MLP Index® (TMLP) and Tortoise North American Pipeline IndexSM (TNAP).

In response to the evolving landscape of the energy sector, Tortoise is modifying its methodology to cap the aggregate weight of MLP limited partners (LPs) and their affiliated general partners (GPs) to a combined 7.5% weight. The cap of affiliated LPs and GPs will be done conditionally based on the share of the GP’s cash flow that is derived from the affiliated LP. As a conditional threshold, the GP must derive greater than 50% of its cash flow from its affiliated LP within the index. Should the affiliated GP and LP meet this cash flow threshold and the aggregate weight of those names exceed 7.5% at the reference date as a result of market cap, the weight in excess of 7.5% will be reallocated across the index to all other constituents with weights below the 7.5% threshold, pro rata based on market cap. This methodology will be implemented as part of the quarterly rebalance on the third Friday of each March, June, September and December. The maximum weight of 7.5% for individual constituents remains intact.

The list of companies and the respective indices that could be affected by this methodology change are listed below:

                 
Company   Ticker   Index  

Weighting at
Reference Date
(09/6/2017)

 

Weighting at
Rebalance
Date

Enbridge Energy Partners LP   EEP   TMLP   2.5%   2.87%
Enbridge Energy Management LLC EEQ

0.7%

0.78%

            3.2%   3.65%
Energy Transfer Equity LP ETE TMLP 7.8% 3.23%
Energy Transfer Partners LP ETP

7.3%

4.23%

            15.1%   7.45%
The Williams Cos. Inc. WMB TNAP 7.7% 6.50%
Williams Partners LP WPZ

0.9%

0.99%

            8.6%   7.49%
 

Special Rebalances

Tortoise has added language regarding special rebalances to all of its index methodologies. Special rebalances are generally triggered by corporate events such as a merger between two or more constituents. When applicable, a merger resulting in the absorption of one constituent by another will cause the newly combined entity to replace the absorbed entity. In this instance, a constituent will be deleted from an index if it is being absorbed by a non-constituent entity. Special rebalances will be implemented on a case-by-case basis and could occur between quarterly rebalances as they are likely event-driven.

About Tortoise Index Solutions

Tortoise Index Solutions, LLC provides research-driven indices that can be used as a realistic basis for exchange-traded products and thought leadership in the universe of essential assets. Its indices are intended to fill a void in the market and provide benchmarks and investible asset class universes for use by investment professionals, research analysts and industry executives to analyze relative performance, as well as to provide a basis for passively managed exchange-traded products. Tortoise Index Solutions, LLC is part of the Tortoise Investments family, which had approximately $19.9 billion of assets under advisement through its family of registered advisers as of Aug. 31, 2017. For more information about Tortoise Index Solutions, LLC visit www.tortoiseindexsolutions.com or www.tortoiseinvest.com.

About Tortoise MLP Index®

The Tortoise MLP Index is a float-adjusted, capitalization weighted index of energy master limited partnerships (MLPs). The index is comprised of publicly traded companies organized in the form of limited partnerships or limited liability companies engaged in transportation, production, processing and/or storage of energy commodities.

About Tortoise North American Pipeline IndexSM

The Tortoise North American Pipeline Index is a float-adjusted, capitalization weighted index of pipeline companies that are organized and have their principal place of business in the United States or Canada. A pipeline company is defined as a company that either 1) has been assigned a standard industrial classification (“SIC”) system code that indicates the company operates in the energy pipeline industry or 2) has at least 50% of its assets, cash flow or revenue associated with the operation or ownership of energy pipelines. Pipeline companies engage in the business of transporting natural gas, crude oil and refined products, storing, gathering and processing such gas, oil and products and local gas distribution. The index includes pipeline companies structured as corporations, limited liability companies and master limited partnerships (MLPs).

About Tortoise North American Oil & Gas Producers IndexSM

The Tortoise North American Oil & Gas Producers Index is a float-adjusted, capitalization weighted index of North American energy companies primarily engaged in the production of crude oil, condensate, natural gas or natural gas liquids (NGLs). The index includes exploration and production companies structured as corporations, limited liability companies, and master limited partnerships, but excludes United States royalty trusts.

About Tortoise Water IndexSM

The Tortoise Water Index is a float-adjusted, modified market capitalization-weighted index comprised of companies that are materially engaged in the water infrastructure or water management industries. Water infrastructure companies’ principal business is providing public water distribution or supporting water distribution infrastructure via equipment or engineering and construction. Water management companies’ primary business is providing technologies or products that manage or facilitate water distribution and usage, including the fields of water efficiency, water treatment and irrigation.

Safe Harbor Statement

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

The Tortoise indices are the exclusive property of Tortoise Index Solutions, LLC, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Tortoise MLP Index®, Tortoise North American Pipeline IndexSM , Tortoise North American Oil and Gas Producers IndexSM , and the Tortoise Water IndexSM (the “Indices”). The Indices are not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omission in calculating the Indices. “Calculated by S&P Dow Jones Indices” and its related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Tortoise Index Solutions, LLC and its affiliates. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“SPFS”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”).

No portion of this publication may be reproduced in any format or by any means including electronically or mechanically, by photocopying, or by any other form or manner whatsoever, without the prior written consent of Tortoise Index Solutions, LLC.