KED - Energy Development Company

Fact Sheet

Overview
as of 8/31/11
Symbol
KED
Exchange
NYSE
Inception Date
9/21/2006
NAV updates
Quarterly1
Net Asset Value (NAV)
$22.01
Leverage
Quarterly Distribution2 ($/share)
$0.38
Total Assets
$310 million

Objective

KED is a closed-end fund that invests principally in debt and equity securities of privately-held energy-related master limited partnerships (MLPs), publicly-traded MLPs, and other energy companies. KED's objective is to generate both current income and capital appreciation for its shareholders. MLPs are publicly traded limited partnerships. Energy-related MLPs own domestic infrastructure assets that are used in the gathering, processing, transportation, storage, refining and distribution of energy-related commodities.

Investment Merits
MLP Sector Opportunity

- MLPs provide steady distributions with attractive growth profiles. MLPs are expanding their asset bases to meet growing needs for energy infrastructure in the U.S.

Attractive Fund Structure

- KED issues a Form 1099 (as opposed to K-1s issued by MLPs).
-Suitable for IRAs, foundations and tax-exempt accounts, because unlike direct holdings in MLPs, KED does not generate unrelated business taxable income (UBTI).

Access to Private Investments

- Provides access to private investment opportunities not available to retail investors.
- Kayne Anderson pioneered the private MLP market and is the leading investment firm originating and structuring private MLPs.

Portfolio
as of 8/31/11
[image]
Top 10 Holdings
as of 8/31/11
Direct Fuels Partners LP
14.1%
VantaCore Partners LP
6.0%
ProPetro Services, Inc.
5.7%
Enterprise Products Partners LP
5.2%
Energy Transfer Partners LP
4.8%
ONEOK Partners LP
4.4%
Buckeye Partners LP
4.1%
Penn Virginia Resource Partners LP
4.0%
Energy Transfer Equity LP
3.4%
Regency Energy Partners LP
3.1%
54.8%

For the full portfolio, please see the Schedule of Investments in our most recent quarterly or annual report

Quarterly Distributions per Share
[image]

View the complete Distribution History for KED.

Tax Character of 2010 Distributions
Return of capital  
58%
Qualified dividends  
42%
 
100%

 

 

 

View Forms 1099-DIV and Tax Information for KED

Total Return (NAV plus distributions)
9/21/06 to 8/31/11
[image]
Share Price and NAV History1
9/21/06 to 8/31/11
[image]
Premium/Discount to NAV1
9/21/06 to 8/31/11
[image]
Fiscal Year Returns1
as of 8/31/11
 
2007
2008
2009
2010
2011 YTD
NAV and distributions3
5.1%
-27.0%
14.4%
34.3%
12.9%
NAV only
-0.3%
-32.8%
3.0%
24.0%
7.1%
Share price and distributions3
9.3%
-54.8%
56.1%
45.8%
18.8%
Share price only
3.7%
-58.4%
40.5%
34.6%
12.7%
Returns (Not annualized)
as of 8/31/11
 
3 Mo.
6 Mo.
1-Yr
2-Yr
3-Yr
Since Inception
NAV and distributions3
-1.8%
4.3%
23.6%
60.8%
29.4%
37.2%
NAV only
-3.7%
0.6%
15.0%
37.4%
-0.8%
-5.6%
Share price and distributions3
8.2%
15.4%
51.2%
106.4%
17.2%
19.3%
Share price only
6.1%
11.3%
40.6%
76.3%
-10.2%
-17.9%
Growth of Hypothetical $10,000 Investment
Date
NAV and Distrib 
Share Price
and Distrib 
Inception (9/21/06)
$10,000
 $10,000
11/30/06
10,304
8,928 
11/30/07
10,830
9,761 
11/30/08
7,910
4,414 
11/30/09
9,048
6,888 
11/30/10
12,151
10,039 
08/31/11
13,719
11,931 
 
 
 

KED's fiscal year ends 11/30.

This table illustrates the growth of a hypothetical $10,000 investment in the fund's common shares beginning on the inception date with all distributions reinvested through the Dividend Reinvestment Program (DRIP). Ending values as of the dates shown in the table. Performance does not reflect transaction fees or broker commissions. Past performance is no guarantee of future results.

1) KED's fiscal year ends 11/30. NAV is published quarterly for the following dates - 2/28 (or 2/29), 5/31, 8/31, and 11/30. Share prices are available daily.
2) Payable on 10/28/11 for the quarter ended 08/31/11.
3) Assumes that distributions have been reinvested through the Dividend Reinvestment Program (DRIP).

This material shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer or sale is not permitted. Past performance is not a guarantee of future results. An investment in the fund could suffer loss. Current performance may be lower or higher than that shown based on market fluctuations from the end of the reported period. Before making an investment in the fund, you should consider the investment objective, risks, charges and expenses of the fund, which, together with and other important information are included in the fund's most recent prospectus and other filings with the SEC. There can be no assurance that the fund's investment objectives will be attained. Shares of closed-end funds frequently trade at a market price that is below their net asset value. Leverage creates risks which may adversely affect return, including the likelihood of greater volatility of net asset value and market price of common shares, and fluctuations in dividend rates on any preferred shares.

NOT FDIC INSURED
NOT BANK GUARANTEED
MAY LOSE VALUE

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