| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 107.88 | n/a |
| Intrinsic value (DCF) | 158827.87 | n/a |
| Graham-Dodd Method | 3.07 | n/a |
| Graham Formula | 101.28 | n/a |
The Ecofin Sustainable and Social Impact Term Fund (TEAF) is a closed-end balanced mutual fund managed by Tortoise Capital Advisors, focusing on investments in essential asset sectors such as education, housing, healthcare, infrastructure, and telecommunications. The fund employs a dual strategy of investing in equities across all market capitalizations and fixed-income securities, including high-yield corporate and government debt. TEAF also allocates capital to private equities, leveraging fundamental and quantitative analysis to build a diversified portfolio. Formerly known as Tortoise Essential Assets Income 2024 Term Fund, TEAF emphasizes sustainable and social impact investments, targeting long-term income and capital appreciation. With a market cap of approximately $158 million, TEAF is positioned in the financial services sector, appealing to investors seeking exposure to socially responsible assets with stable returns. The fund's focus on essential services provides resilience against economic downturns, making it a compelling option for impact-focused portfolios.
TEAF offers investors a unique blend of income generation and social impact, targeting essential asset sectors that demonstrate long-term stability. The fund's diversified approach—spanning equities, fixed income, and private equity—enhances risk-adjusted returns while maintaining a focus on sustainability. With a beta of 0.63, TEAF exhibits lower volatility compared to broader markets, appealing to conservative investors. However, its relatively small market cap and niche focus may limit liquidity and scalability. The fund's dividend yield of $1.08 per share and strong net income of $12.4 million in the latest fiscal year underscore its income-generating capability. Risks include exposure to high-yield debt and private equity illiquidity, but TEAF's sector resilience and impact-driven mandate provide a compelling case for ESG-focused portfolios.
TEAF differentiates itself through its dual mandate of sustainable investing and income generation, targeting essential asset sectors that are less cyclical. Its competitive advantage lies in Tortoise Capital Advisors' expertise in infrastructure and essential services, combined with a rigorous analytical framework for selecting high-impact investments. The fund's ability to invest across public and private markets provides diversification benefits not always available in traditional closed-end funds. However, TEAF faces competition from larger ESG-focused funds and ETFs that offer similar themes with greater liquidity. Its niche focus on essential assets may limit growth compared to broader ESG funds, but it also reduces correlation to volatile market segments. TEAF's performance hinges on its manager's ability to identify undervalued impact investments, a skill that sets it apart from passive ESG strategies. The fund's term structure (originally set to 2024) adds a layer of complexity, though its rebranding suggests a potential shift toward a perpetual mandate.