Kayne Anderson Fund Advisors

KYN - MLP/Midstream Investment Company

KYN - Fact Sheet

Fact Sheet

Overview
as of 1/31/19

Symbol
KYN
Exchange
NYSE
CUSIP
486606106
Inception Date
9/28/2004
   
Total Assets
$3,562 million
Leverage
$1,111 million
   
Monthly Distribution1 ($/share)
$0.12
   
% of Portfolio Assets with Call Options
None
Objective

KYN is a closed-end fund that invests principally in equity securities of energy-related master limited partnerships and their affiliates (“MLPs”) and other companies that, as their principal business, operate assets used in the gathering, transporting, processing, storing, refining, distributing, mining or marketing of natural gas, natural gas liquids, crude oil, refined petroleum products or coal (collectively with midstream MLPs, “Midstream Energy Companies”). KYN’s investment objective is to obtain high after tax total returns for its shareholders.

Investment Merits
Midstream Opportunities
-Opportunity to invest across the full value chain for the Midstream Sector through investments in Midstream MLPs and Midstream Companies

-Midstream Sector generates attractive riskadjusted returns and has stable characteristics

-Development of “unconventional reserves” is changing the North American energy industry, driving the need for new Midstream assets and creating significant growth opportunities for the Midstream sector

Attractive Fund Structure
- KYN 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, KYN does not generate unrelated business taxable income (UBTI).

Access to Private Investments.

KYN provides access to private investment opportunities not available to retail investors.

Portfolio
as of 1/31/19
[image]
Top 10 Holdings
as of 1/31/19
Enterprise Products Partners L.P.
13.4%
Energy Transfer LP
10.6%
ONEOK, Inc.
8.8%
The Williams Companies, Inc.
8.6%
MPLX LP
7.6%
Western Gas Partners, LP
5.9%
Plains All American Pipeline, L.P.
5.4%
Targa Resources Corp.
4.7%
Buckeye Partners, L.P.
4.5%
Magellan Midstream Partners, L.P.
4.0%
 

73.5%
   

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

 

Annual Distributions per Fiscal Year
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View the complete Distribution History for KYN.


View the complete Distribution History for KED.


Information on Tax Character of Distributions

Our distributions are treated as a taxable dividend (qualified dividends) to our common stockholders to the extent of our current and accumulated earnings and profits. If the distribution exceeds our current or accumulated earnings and profits, the distribution will be treated as a return of capital to our common stockholders to the extent of each stockholder’s basis in our common stock, and then the amount of a distribution in excess of such stockholder’s basis would be taxed as capital gain. Because the cash distributions received from the MLPs in our portfolio are expected to exceed the earnings and profits associated with owning such MLPs, a portion of our distributions may be paid from sources other than our current and accumulated earnings and profits. The table below summarizes the tax character of our distributions since inception. Common stockholders will receive a 1099-DIV from us, sample forms for each year can be found at www.kaynefunds.com/kyn/tax-information. This information does not constitute, and should not be construed as, tax, legal, investment, or other professional advice and cannot be used or relied upon for the purpose of avoiding tax penalties. Investors should consult their tax adviser or legal counsel for advice and information concerning that particular situation.

The  table below summarizes the tax character of our distributions since inception.
Calendar
Year
Qualified
Dividends
 Nondividend
distributions
(Return of Capital)
Total
2007   5%   95% 100%
2008  100% 100% 100%
2009 - 100% 100%
2010   44% 56% 100%
2011  64% 36% 100%
2012   74% 26% 100%
2013   67% 33% 100%
2014   90% 10% 100%
2015   82% 18% 100%
2016  - 100% 100%
2017    28% 72% 100%
2018  100% - 100%
2019E4  - 100% 100%

Sample Form 1099-DIV for each year can be found at Tax Information.

Total Return (NAV plus distributions)
9/28/04 to 1/31/19
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Share Price and NAV History
9/28/04 to 1/31/19
[image]
Premium/Discount to NAV
9/28/04 to 1/31/19
[image]
Calendar Year Returns
as of 1/31/19
 
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
NAV and distrib2
79.8%
36.7%
12.8%
3.6%
35.7%
4.9%
-43.5%
29.9%
3.3%
-14.2%
19.2%
NAV only
61.9%
26.5%
5.1%
-5.3%
28.9%
-2.2%
-48.4%
13.3%
-7.0%
-23.6%
18.3%
Share price & distrib2
70.6%
35.8%
3.6%
6.1%
42.4%
2.8%
-50.5%
29.9%
8.0%
-18.9%
13.5%
Share price only
53.6%
25.7%
-3.5%
-3.0%
35.2%
-4.2%
-54.7%
13.2%
-2.7%
-27.8%
12.6%
Period Returns (Not annualized)
as of 1/31/19
 
3 Mo.
6 Mo.
1-Yr
2-Yr
3-Yr
5-Yr
10-Yr
Since Inception
NAV and distrib2
2.7%
-7.9%
-5.6%
1.3%
60.8%
-19.0%
167.3%
133.1%
NAV only
-0.3%
-12.1%
-14.5%
-16.9%
16.6%
-51.2%
9.8%
-28.8%
Share price & distrib2
-0.1%
-14.3%
-9.0%
-6.1%
39.3%
-32.4%
112.4%
102.9%
Share price only
-3.0%
-18.2%
-17.6%
-23.0%
1.0%
-59.3%
-12.7%
-38.0%
Growth of Hypothetical $10,000 Investment3
Date
NAV and Distrib
Share Price
and Distrib
Inception (9/28/04)
$10,000
$10,000
12/31/04
10,233
10,000
12/31/05
11,134
10,329
12/31/06
14,062
14,963
12/31/07
15,213
14,136
12/31/08
7,346
8,508
12/31/09
13,211
14,517
12/31/10
18,064
19,717
12/31/11
20,384
20,425
12/31/12
21,112
21,674
12/31/13
28,655
30,855
12/31/14
30,068
31,716
12/31/15
16,989
15,713
12/31/16
22,068
20,407
12/31/17
22,791
22,043
12/31/18
19,553
17,874
01/31/19
23,307
20,289
1) Payable on 2/28/19 (ex-date 2/13/19).  (See "Information on Tax Character of Distributions" on page 2)

2) Assumes that distributions have been reinvested through the Dividend Reinvestment Program (DRIP).
 
3) 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.
 
4) This estimate is based on our anticipated earnings and profits for fiscal 2019. The final determination of the tax character of distributions will be made in early 2020 when we can determine our actual earnings and profits for the year (including gains and losses on sales of securities during fiscal 2019) and may differ substantially from this preliminary information.

This fact sheet is provided for informational purposes only. This material shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer or sale is not permitted. Performance data quoted represents past performance; past performance is not a guarantee of future results. Current performance may be lower or higher than that shown based on market fluctuations from the end of the reported period. 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. An investment in the fund could suffer loss. Before investing in the fund, you should consider the investment objective, risks, charges and expenses of the fund, which, together with 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.

NOT FDIC INSURED
NOT BANK GUARANTEED
MAY LOSE VALUE

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