N-Q 1 tortoise-tx_nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY



Investment Company Act file number: 811-23318


Tortoise Tax-Advantaged Social Infrastructure Fund, Inc.
(Exact name of registrant as specified in charter)

11550 Ash Street, Suite 300
Leawood, KS 66211
(Address of principal executive offices) (Zip code)

Jeremy Goff
11550 Ash Street, Suite 300
Leawood, KS
 (Name and address of agent for service)


(913)981-1020
Registrant's telephone number, including area code











Date of fiscal year end: September 30, 2019

Date of reporting period: December 31, 2018

 
Item 1. Schedule of Investments.
 
Schedule of Investments December 31, 2018 (unaudited)
 
             
Tortoise Tax-Advantaged Social Infrastructure Fund, Inc.
 

   
Principal Amount
   
Fair Value
 
Corporate Bonds - 10.2%(1)
           
Multi-Family Construction - 10.2%(1)
           
Bridgemoor Senior Living
           
11.500%, 12/31/2025(2)
 
$
5,000,000
   
$
5,000,000
 
Roseville Senior Living
               
12.000%, 12/31/2025(2)
   
6,255,000
     
6,255,000
 
                 
Total Corporate Bonds (Cost $11,255,000)
           
11,255,000
 
                 
Municipal Bonds - 60.2%(1)
               
Alabama - 0.6%(1)
               
Auburn University
               
5.000%, 06/01/2024
     650,000        677,911  
Arizona - 5.0%(1)
               
Arizona Industrial Development Authority
               
     (Obligor: Windsong Senior Living)
               
12.000%, 12/01/2023(2)
   
5,480,000
     
5,500,550
 
Florida - 16.2%(1)
               
Capital Trust Agency Inc.
               
     (Obligor: Championship Charter School I - Series A)
               
8.250%, 11/15/2025(2)
   
8,425,000
     
8,448,084
 
Capital Trust Agency Inc.
               
     (Obligor: Championship Charter School I - Series B)
               
8.500%, 11/15/2025(2)
   
485,000
     
489,404
 
Capital Trust Agency Inc.
               
     (Obligor: Championship Academy of Distinction West Broward - Series 2018 A)
               
8.250%, 11/15/2025(2)
   
8,250,000
     
8,272,605
 
Capital Trust Agency Inc.
               
     (Obligor: Championship Academy of Distinction West Broward - Series 2018 B)
               
8.500%, 11/15/2025(2)
   
550,000
     
552,805
 
             
17,762,898
 
Massachusetts - 0.3%(1)
               
Massachusetts Development Finance Agency
               
     (Obligor: President & Fellows of Harvard College)
               
5.000%, 10/15/2040
   
340,000
     
359,125
 
New Jersey - 1.2%(1)
               
New Jersey Educational Facilities Authority
               
     (Obligor: Princeton University)
               
5.000%, 07/01/2021
   
600,000
     
647,394
 
New Jersey Health Care Facilities Financing Authority
               
     (Obligor: The University of Pennsylvania Health System Obligated Group)
               
5.000%, 07/01/2023
   
635,000
     
714,458
 
             
1,361,852
 
New York - 0.4%(1)
               
New York State Dormitory Authority
               
     (Obligor: State University of New York)
               
5.000%, 07/01/2031
   
445,000
     
476,203
 
Oklahoma - 0.6%(1)
               
Oklahoma Development Finance Authority
               
     (Obligor: INTEGRIS Health Obligated Group)
               
5.000%, 08/15/2022
   
625,000
     
685,962
 
Pennsylvania - 1.0%(1)
               
West Shore Area Authority
               
     (Obligor: Holy Spirit Hospital of the Sisters of Christian Charity/PA)
               
5.625%, 01/01/2032
   
1,000,000
     
1,096,290
 
Tennessee - 0.7%(1)
               
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board
               
     (Obligor: The Vanderbilt University)
               
5.000%, 10/01/2028
   
650,000
     
716,040
 
Virginia - 0.3%(1)
               
Fairfax County Industrial Development Authority
               
     (Obligor: Inova Health System Obligated Group)
               
4.000%, 05/15/2022
   
280,000
     
298,894
 


Wisconsin - 33.9%(1)
               
Public Finance Authority
               
     (Obligor: Alleghany House - Series A)
               
12.500%, 01/01/2029(2)
   
1,210,000
     
1,187,070
 
Public Finance Authority
               
     (Obligor: Alleghany House - Series B)
               
12.500%, 01/01/2029(2)
   
45,000
     
44,147
 
Public Finance Authority
               
     (Obligor: Brookside Glen - Series A)
               
9.500%, 10/01/2028(2)
   
4,200,000
     
4,160,478
 
Public Finance Authority
               
     (Obligor: Brookside Glen - Series B)
               
12.500%, 10/01/2028(2)
   
95,000
     
93,114
 
Public Finance Authority
               
     (Obligor: Gardens of Montgomery - Series A)
               
0.000%, 01/01/2029(2)(3)
   
1,610,000
     
1,416,269
 
Public Finance Authority
               
     (Obligor: Gardens of Montgomery - Series B)
               
0.000%, 01/01/2029(2)(3)
   
29,000
     
25,595
 
Public Finance Authority
               
     (Obligor: Gardens of Rome - Series C)
               
10.000%, 01/01/2024
   
1,630,000
     
1,625,909
 
Public Finance Authority
               
     (Obligor: Gardens of Rome - Series D)
               
10.000%, 01/01/2024
   
70,000
     
69,824
 
Public Finance Authority
               
     (Obligor: Gardens of Savannah - Series C)
               
10.000%, 01/01/2024(2)
   
1,065,000
     
1,062,327
 
Public Finance Authority
               
     (Obligor: Gardens of Savannah - Series D)
               
10.000%, 01/01/2024(2)
   
80,000
     
79,798
 
Public Finance Authority
               
     (Obligor: Gardens of Social Circle - Series C)
               
10.000%, 01/01/2024(2)
   
2,030,000
     
2,024,905
 
Public Finance Authority
               
     (Obligor: Gardens of Social Circle - Series D)
               
10.000%, 01/01/2024(2)
   
65,000
     
64,916
 
Public Finance Authority
               
     (Obligor: Gardens of Waterford - Series C)
               
10.000%, 01/01/2024(2)
   
1,185,000
     
1,182,026
 
Public Finance Authority
               
     (Obligor: Gardens of Waterford - Series D)
               
10.000%, 01/01/2024(2)
   
75,000
     
74,812
 
Public Finance Authority
               
     (Obligor: Greenville - Series A)
               
9.500%, 10/01/2028(2)
   
4,600,000
     
4,553,816
 
Public Finance Authority
               
     (Obligor: Greenville - Series B)
               
12.500%, 10/01/2028(2)
   
90,000
     
88,214
 
Public Finance Authority
               
     (Obligor: Hertford House - Series B)
               
12.500%, 01/01/2022(2)
   
55,000
     
54,543
 
Public Finance Authority
               
     (Obligor: Lake Lure - Series A)
               
12.500%, 01/01/2029
   
2,260,000
     
2,217,173
 
Public Finance Authority
               
     (Obligor: Lake Lure - Series B)
               
12.500%, 01/01/2029
   
55,000
     
53,958
 
Public Finance Authority
               
     (Obligor: Lakeview Village - Series B)
               
12.500%, 01/01/2022
   
50,000
     
49,584
 
Public Finance Authority
               
     (Obligor: Landings of Columbus - Series C)
               
10.000%, 01/01/2024
   
1,055,000
     
1,053,639
 
Public Finance Authority
               
     (Obligor: Landings of Columbus - Series D)
               
10.000%, 01/01/2024
   
80,000
     
79,798
 
Public Finance Authority
               
     (Obligor: Landings of Douglas - Series C)
               
10.000%, 01/01/2024(2)
   
1,255,000
     
1,251,850
 
Public Finance Authority
               
     (Obligor: Landings of Douglas - Series D)
               
10.000%, 01/01/2024(2)
   
75,000
     
74,812
 
Public Finance Authority
               
(Obligor: Landings of Gainsville - Series C)
               
10.000%, 01/01/2024
     1,020,000        1,017,440  
Public Finance Authority
               
 (Obligor: Landings of Gainsville - Series D)
               
10.000%, 01/01/2024(2)
     80,000        79,798  
Public Finance Authority
               
 (Obligor: Landings of Montgomery - Series C)
               
10.000%, 01/01/2029(2)
     1,955,000        1,942,918  


Public Finance Authority
               
     (Obligor: Landings of Montgomery - Series D)
               
10.000%, 01/01/2029(2)
   
65,000
     
64,596
 
Public Finance Authority
               
     (Obligor: Reidsville House - Series A)
               
12.500%, 01/01/2029
   
1,860,000
     
1,824,697
 
Public Finance Authority
               
     (Obligor: Reidsville House - Series B)
               
12.500%, 01/01/2029
   
55,000
     
53,958
 
Public Finance Authority
               
     (Obligor: Senters Memory Care - Series A)
               
8.500%, 01/01/2029(2)
   
4,040,000
     
3,277,450
 
Public Finance Authority
               
     (Obligor: Senters Memory Care - Series B)
               
8.500%, 01/01/2029(2)
   
105,000
     
85,340
 
Public Finance Authority
               
     (Obligor: Windsor House - Series A)
               
9.500%, 10/01/2028(2)
   
6,335,000
     
6,271,396
 
Public Finance Authority
               
     (Obligor: Windsor House - Series B)
               
12.500%, 10/01/2028(2)
   
60,000
     
58,809
 
             
37,264,979
 
                 
Total Municipal Bonds (Cost $66,503,482)
           
66,200,704
 
                 
Short Term Investments - 21.0%(1)
               
Arizona - 0.1%(1)
               
Arizona Health Facilities Authority
               
     (Obligor: Banner Health Obligated Group)
               
Weekly VRDN and Put, 1.800%, 01/01/2029(4)
   
100,000
     
100,000
 
California - 1.0%(1)
               
California Health Facilities Financing Authority
               
     (Obligor: Kaiser Credit Group)
               
Weekly VRDN and Put, 1.620%, 06/01/2041(4)
   
1,100,000
     
1,100,000
 
Colorado - 0.2%(1)
               
Colorado Health Facilities Authority
               
     (Obligor: Sisters of Charity of Leavenworth Health System Inc)
               
Weekly VRDN and Put, 1.750%, 12/01/2045(4)
   
200,000
     
200,000
 
Connecticut - 0.4%(1)
               
Connecticut State Health & Educational Facilities Authority
               
     (Obligor: Yale-New Haven Health Obligated Group)
               
Weekly VRDN and Put, 1.760%, 07/01/2025(4)
   
470,000
     
470,000
 
Georgia - 0.8%(1)
               
DeKalb Private Hospital Authority
               
     (Obligor: Children's Healthcare of Atlanta Obligated Group)
               
Weekly VRDN and Put, 1.690%, 07/01/2042(4)
   
500,000
     
500,000
 
Private Colleges & Universities Authority
               
     (Obligor: Emory University)
               
Weekly VRDN and Put, 1.700%, 09/01/2035(4)
   
200,000
     
200,000
 
Private Colleges & Universities Authority
               
     (Obligor: Emory University)
               
Weekly VRDN and Put, 1.700%, 09/01/2036(4)
   
200,000
     
200,000
 
             
900,000
 
Illinois - 3.3%(1)
               
Illinois Finance Authority
               
     (Obligor: Advocate Health Care Network Obligated Group)
               
Weekly VRDN and Put, 1.800%, 11/01/2038(4)
   
600,000
     
600,000
 
Illinois Finance Authority
               
     (Obligor: Advocate Health Care Network Obligated Group)
               
Weekly VRDN and Put, 1.710%, 11/01/2038(4)
   
1,050,000
     
1,050,000
 
Illinois Finance Authority
               
     (Obligor: The University of Chicago)
               
Weekly VRDN and Put, 1.680%, 07/01/2038(4)
   
2,000,000
     
2,000,000
 
             
3,650,000
 
Maryland - 1.7%(1)
               
Maryland Economic Development Corp
               
     (Obligor: Howard Hughes Medical Institute)
               
Weekly VRDN and Put, 1.720%, 02/15/2043(4)
   
500,000
     
500,000
 
Maryland Health & Higher Educational Facilities Authority
               
     (Obligor: Johns Hopkins University)
               
Weekly VRDN and Put, 1.680%, 07/01/2036(4)
   
1,320,000
     
1,320,000
 
             
1,820,000
 
Minnesota - 2.7%(1)
               
City of Minneapolis/St Paul Minnesota Housing & Redevelopment Authority
               
     (Obligor: Allina Health Obligated Group)
               
Weekly VRDN and Put, 1.700%, 11/15/2034(4)
   
1,750,000
     
1,750,000
 
City of Rochester Minnesota
               
     (Obligor: Mayo Clinic)
               
Weekly VRDN and Put, 1.730%, 11/15/2047(4)
   
1,250,000
     
1,250,000
 
             
3,000,000
 

Mississippi - 0.3%(1)
               
Mississippi Hospital Equipment & Facilities Authority
               
     (Obligor: North Mississippi Medical Center Obligated Group)
               
Weekly VRDN and Put, 1.700%, 05/15/2033(4)
   
300,000
     
300,000
 
North Carolina - 3.4%(1)
               
North Carolina Educational Facilities Finance Agency
               
     (Obligor: Duke University)
               
Weekly VRDN and Put, 1.610%, 12/01/2021(4)
   
830,000
     
830,000
 
North Carolina Medical Care Commission
               
     (Obligor: FirstHealth of the Carolinas Inc)
               
Weekly VRDN and Put, 1.730%, 10/01/2038(4)
   
970,000
     
970,000
 
North Carolina Medical Care Commission
               
     (Obligor: Moses H Cone Memorial Hospital Obligated Group)
               
Weekly VRDN and Put, 1.630%, 10/01/2035(4)
   
1,600,000
     
1,600,000
 
University of North Carolina at Chapel Hill
               
Weekly VRDN and Put, 1.730%, 02/01/2029(4)
   
300,000
     
300,000
 
             
3,700,000
 
Ohio - 0.5%(1)
               
The Ohio State University
               
Weekly VRDN and Put, 1.700%, 12/01/2031(4)
   
100,000
     
100,000
 
The Ohio State University
               
Weekly VRDN and Put, 1.610%, 12/01/2027(4)
   
500,000
     
500,000
 
             
600,000
 
Rhode Island - 0.3%(1)
               
Rhode Island Health & Educational Building Corp
               
(Obligor: Brown University in Providence in the State of Rhode Island & Providence Planta)
         
Weekly VRDN and Put, 1.680%, 05/01/2035(4)
   
290,000
     
290,000
 
Texas - 3.2%(1)
               
Tarrant County Cultural Education Facilities Finance Corp
               
     (Obligor: Texas Health Resources Obligated Group)
               
Weekly VRDN and Put, 1.660%, 11/15/2047(4)
   
1,655,000
     
1,655,000
 
Tarrant County Cultural Education Facilities Finance Corp
               
     (Obligor: Texas Health Resources Obligated Group)
               
Weekly VRDN and Put, 1.730%, 11/15/2051(4)
   
200,000
     
200,000
 
The University of Texas System
               
Weekly VRDN and Put, 1.710%, 08/01/2033(4)
   
600,000
     
600,000
 
The University of Texas System
               
Weekly VRDN and Put, 1.660%, 08/01/2034(4)
   
1,100,000
     
1,100,000
 
             
3,555,000
 
Virginia - 2.8%(1)
               
Albermarle County Economic Development Authority
               
     (Obligor: Sentara Healthcare Obligated Group)
               
Daily VRDN and Put, 1.650%, 10/01/2048(4)
   
500,000
     
500,000
 
Fairfax County Industrial Development Authority
               
     (Obligor: Inova Health System Obligated Group)
               
Weekly VRDN and Put, 1.680%, 05/15/2042(4)
   
1,355,000
     
1,355,000
 
Loudoun County Economic Development Authority
               
     (Obligor: Howard Hughes Medical Institute)
               
Weekly VRDN and Put, 1.720%, 02/15/2038(4)
   
565,000
     
565,000
 
Loudoun County Economic Development Authority
               
     (Obligor: Howard Hughes Medical Institute)
               
Weekly VRDN and Put, 1.720%, 02/15/2038(4)
   
500,000
     
500,000
 
Norfolk Economic Development Authority
               
     (Obligor: Sentara Healthcare Obligated Group)
               
Weekly VRDN and Put, 1.670%, 11/01/2034(4)
   
200,000
     
200,000
 
             
3,120,000
 
Washington - 0.3%(1)
               
Washington Health Care Facilities Authority
               
     (Obligor: Providence St Joseph Health Obligated Group)
               
Weekly VRDN and Put, 1.740%, 10/01/2042(4)
   
100,000
     
100,000
 
Washington Health Care Facilities Authority
               
     (Obligor: Providence St Joseph Health Obligated Group)
               
Weekly VRDN and Put, 1.740%, 10/01/2042(4)
   
200,000
     
200,000
 
             
300,000
 
                 
Total Short Term Investments (Cost $23,105,000)
           
23,105,000
 
                 
Total Investments - 91.4% (1)
               
(Cost $100,863,482)
           
100,560,704
 
Assets in Excess of Other Liabilities, Net - 8.6%(1)
           
9,436,620
 
Total Net Assets - 100.0%(1)
         
$
109,997,324
 
 
(1)
 
Calculated as a percentage of net assets.
         
(2)
 
Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional buyers." These securities are determined to be liquid by the Adviser.  As of December 31, 2018, the value of these investments were $63,737,447 or 57.9% of total net assets.
 
(3)
 
Capital appreciation bond - The rate shown is the rate in effect through December 31, 2018.
       
(4)
 
Variable rate demand notes are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right
 
   
of demand to receive payment of the principal balance plus accrued interest at specified dates.  Unless otherwise noted, the coupon rate is
   
determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates.  The rate shown
   
is the rate in effect as of December 31, 2018.

The Fund has adopted fair value accounting standards, which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value, a discussion in changes in valuation techniques and related inputs during the period and expanded disclosure of valuation levels for major security types.  These inputs are summarized in the three broad levels listed below:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than quoted prices included in Level 1.  These inputs may include quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Significant unobservable inputs for the asset or liability, representing the Fund’s view of assumptions a market participant would use in valuing the asset or liability.

Following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis.  The Fund’s investments are carried at fair value.

Corporate and Municipal Bonds — Corporate and municipal bonds, including listed issues, are valued at fair value on the basis of valuations furnished by an independent pricing service which utilizes both dealer-supplied valuations and formula-based techniques. The pricing service may consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, and fundamental data relating to the issuer. Most municipal bonds are categorized in Level 2 of the fair value hierarchy.

Securities for which market quotations are not readily available, or if the closing price does not represent fair value, are valued following procedures approved by the Board of Directors. The Board of Directors will regularly evaluate whether the Fund’s fair value pricing procedures continue to be appropriate in light of the specific circumstances of the Fund and the quality of prices obtained through the application of such procedures by the Fund’s valuation committee.

When fair value pricing is employed, security prices that the Fund uses to calculate its NAV may differ from quoted or published prices for the same securities. Due to the subjective and variable nature of fair value pricing, it is possible that the fair value determined for a particular security may be materially different (higher or lower) than the price of the security quoted or published by others, the value when trading resumes, and/or the value realized upon the security’s sale. Therefore, if a shareholder purchases or redeems Fund shares when the Fund holds securities priced at a fair value, the number of shares purchased or redeemed may be higher or lower than it would be if the Fund were using market value pricing.

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following table is a summary of the inputs used to value the Fund’s securities by level within the fair value hierarchy as of December 31, 2018:

   
Level 1
   
Level 2
   
Level 3
   
Total
 
Corporate Bonds
 
$
-
   
$
11,255,000
   
$
-
   
$
11,255,000
 
Municipal Bonds
   
-
     
66,200,704
     
-
     
66,200,704
 
Short Term Investments
   
-
     
23,105,000
     
-
     
23,105,000
 
Total Investments
 
$
-
   
$
100,560,704
   
$
-
   
$
100,560,704
 

Transfers between levels are recognized at the end of the reporting period.  During the period ended December 31, 2018, the Fund recognized no transfers between levels.

The Fund did not invest in any Level 3 investments during the period.


 
Item 2. Controls and Procedures.
 
(a)
The Registrant’s Chief Executive Officer, Principal Financial Officer and Treasurer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d‑15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).

(b)
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

 
Item 3. Exhibits.
 
A certification for the principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) is filed herewith.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:  March 1, 2019

Tortoise Tax-Advantaged Social Infrastructure Fund, Inc.
 
   
 
 
 
 
By:
 /s/ P. Bradley Adams
 
       
P. Bradley Adams
Chief Executive Officer, Principal Financial Officer and Treasurer
 
     
 
 
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date:  March 1, 2019

Tortoise Tax-Advantaged Social Infrastructure Fund, Inc.
 
 
 
 
 
 
By:
 /s/ P. Bradley Adams
 
     
P. Bradley Adams
Chief Executive Officer, Principal Financial Officer and Treasurer