Kayne Anderson Fund Advisors

KYN - MLP Investment Company

KYN - Fact Sheet

Fact Sheet

Overview
as of 11/30/14
Symbol
KYN
Exchange
NYSE
CUSIP
486606106
Inception Date
9/28/2004
   
NAV updates1
Thursdays &
month end
   
Total Assets
$7.5 billion
Leverage
$2.0 billion
   
Quarterly Distribution2 ($/share)
$0.65
   
% 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 (MLPs). KYN's objective is to obtain high after tax total returns 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

- 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 11/30/14
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Top 10 Holdings
as of 10/31/14
Kinder Morgan, Inc.
13.2%
Enterprise Products Partners L.P.
9.3%
Energy Transfer Partners, L.P.
6.2%
Regency Energy Partners LP
5.8%
MarkWest Energy Partners, L.P.
5.6%
Williams Partners L.P.
5.5%
Plains All American Pipeline, L.P.
4.7%
DCP Midstream Partners, LP
4.1%
ONEOK Partners, L.P.
3.5%
Access Midstream Partners, L.P.
3.1%
61.0%

 

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

Quarterly Distributions per Share
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View the complete Distribution History for KYN.

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. Common stockholders will receive a Form 1099 from us and will recognize dividend income only to the extent of our current and accumulated earnings and profits. 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.

Year  Nondividend
distributions
(Return of Capital)
Qualified
 Dividends 
Total
2005    91%   9% 100%
2006   100%   0% 100%
2007    95%   5% 100%
2008  100%   0% 100%
2009  100%   0% 100%
2010   56% 44% 100%
2011   36% 64% 100%
2012   26% 74% 100%
2013   33% 67% 100%
2014E5 74%  26% 100%

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

Total Return (NAV plus distributions)
9/28/04 to 11/30/14
[image]
Share Price and NAV History4
9/28/04 to 11/30/14
[image]
Premium/Discount to NAV4
9/28/04 to 11/30/14
[image]
Calendar Year Returns
as of 11/30/14
 
2005
2006
2007
2008
2009
2010
2011
2012
2013
'14 YTD
NAV and distributions3
8.8%
26.3%
8.2%
-51.7%
79.8%
36.7%
12.8%
3.6%
35.7%
12.3%
NAV only
2.6%
18.1%
1.9%
-55.4%
61.9%
26.5%
5.1%
-5.3%
28.9%
4.6%
Share price and distrib3
3.3%
44.9%
-5.5%
-39.8%
70.6%
35.8%
3.6%
6.1%
42.4%
2.7%
Share price only
-2.6%
35.5%
-11.0%
-44.4%
53.6%
25.7%
-3.5%
-3.0%
35.2%
-4.3%
Period Returns (Not annualized)
as of 11/30/14
 
3 Mo.
6 Mo.
1-Yr
2-Yr
3-Yr
5-Yr
Since Inception
NAV and distributions3
-9.5%
2.6%
14.8%
48.1%
67.9%
161.3%
221.7%
NAV only
-11.0%
-0.9%
7.0%
28.8%
35.9%
82.4%
54.9%
Share price and distributions3
-5.4%
5.9%
9.9%
40.9%
68.1%
123.7%
216.8%
Share price only
-7.0%
2.3%
2.4%
22.5%
36.1%
56.1%
52.6%
Growth of Hypothetical $10,000 Investment
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
11/30/14
32,171
31,683

 

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) Weekly NAVs are calculated as of close of business on Thursdays and posted to our website on Fridays after the market closes at KYN NAV. Month-end NAVs are issued via press release and posted to the website within a few days of the end of the month.
2) Payable on 10/10/14 (ex-date 10/1/14) for the quarter ended 8/31/14.(See "Information on Tax Character of Distributions" on Distributions tab)
3) Assumes that distributions have been reinvested through the Dividend Reinvestment Program (DRIP).
4) NAV and share price shown monthly until 7/31/07 and weekly and at month-end thereafter.
5) This estimate is based on our estimated earnings and profits for fiscal 2014, which includes actual results for the first nine months of the fiscal year and does not include a projection for any gains or losses on the sale of securities during the last three months of fiscal 2014. The final determination of the tax character of our distributions will be made after our fiscal year-end when we can determine our actual earnings and profits for the full year. The final tax status of our distributions is dependent on our earnings and profits (including gains and losses on the sale of securities) for the remainder of our fiscal year end and may differ substantially from this preliminary information.

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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