Kayne Anderson Midstream / Energy Fund
KMF is a non-diversified, closed-end fund whose investment objective is to provide a high level of total return with an emphasis on making cash distributions to our stockholders. We seek to achieve that investment objective by investing at least 80% of our total assets in the securities of companies in the Midstream/Energy Sector, consisting of (a) Midstream MLPs, (b) Midstream Companies, (c) Other MLPs and (d) Other Energy Companies. We anticipate that the majority of our investments will consist of investments in Midstream MLPs and Midstream Companies.
- Opportunity to invest across the full value chain for the midstream sector through investments in midstream MLPs and midstream companies
- Development of “unconventional reserves” is changing the North American energy industry, driving the need for new midstream assets and creating growth opportunities for the midstream sector
- Midstream sector is expected to generate attractive risk adjusted returns for investors; companies are expected to generate stable cash flows from fee based assets with high barriers to entry
Attractive Fund Structure
- KMF issues a Form 1099 (no K-1)
- Suitable for IRAs, foundations and tax-exempt accounts, because unlike direct holdings in MLPs, KMF does not generate unrelated business taxable income (UBTI)
- KMF is a Regulated Investment Company (RIC) and, as such, does not pay income taxes at the fund level
Access to Private Investments
- KMF provides access to private investment opportunities not available to retail investors
† As of 3/31/19
1 Payable on 4/30/19 (ex-date 4/17/19). (See “Distributions” section below for more information).
Share Price and NAV History
Premium/Discount to NAV
Performance data quoted represents past performance and are for the stated time period only. 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.
Total Return (NAV plus distributions)
Period Returns (Not Annualized)
Calendar Year Returns
2 Assumes that distributions have been reinvested through the Dividend Reinvestment Program (DRIP).
Growth of Hypothetical $10,000 Investment3
3 This chart 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 chart. Performance reflects the deduction of management fees and expenses but does not reflect transaction fees or broker commissions. Past performance is no guarantee of future results.
Top 10 Holdings
Portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security. Top ten holdings are determined on the basis of the value of individual securities held. The fund may also hold positions in other types of securities issued by the companies listed above. You can obtain a complete listing of holdings by viewing our quarterly or annual report for the most recent completed period.
Annual Distributions per Fiscal Year
* Includes an initial partial distribution.
** Includes special distribution, see press release dated 6/25/15.
*** Based on year-to-date distributions paid or declared.
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. Common stockholders will receive a Form 1099-DIV from us, sample forms for each year can be found within the Tax Information section of this page.
The table below summarizes the tax character of our distributions since inception.
Information on Tax Character of Distributions
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.
The fund pays regular monthly cash distributions to common stockholders at a level rate that may be adjusted from time to time based on the projected income of the fund. The amount of monthly distributions is not guaranteed and may vary depending on a number of factors, including changes in portfolio holdings and market conditions.
KMF uses leverage in the form of unsecured notes, preferred stock and revolving bank credit facilities to acquire additional portfolio investments consistent with its investment objective and strategies. Under normal conditions, our policy is to utilize leverage in an amount that represents approximately 30% of the fund’s total assets.
- Balance Sheet as of February 28, 2019 (Unaudited) - See press release
- Balance Sheet as of January 31, 2019 (Unaudited) - See press release
- Balance Sheet as of December 31, 2018 (Unaudited) - See press release
- Balance Sheet as of November 30, 2018 (Unaudited) - See press release
- Balance Sheet as of October 31, 2018 (Unaudited) - See press release
- Balance Sheet as of September 30, 2018 (Unaudited) - See press release
- Balance Sheet as of July 31, 2018 (Unaudited) - See press release
- Other Material Documents
- Dividend Reinvestment Plan
- Expense Ratios
- Section 19(a) Notifications
- Second amendment to the 2018 agreement dated February 8, 2019
- Amended and restated credit agreement dated February 15, 2018
- $50 million Series C Notes Purchase Agreement dated March 22, 2012
- $40 million Series D Notes Purchase Agreement dated May 1, 2013
- $30 million Series E Notes Purchase Agreement dated April 30, 2014
- $130 million Series F to I Notes Purchase Agreement dated April 16, 2013
- $70 million Series J Notes Purchase Agreement dated October 7, 2014
Mandatory Redeemable Preferred Shares (MRPS)
- $40 million Seres C MRPS Securities Purchase Agreement dated April 30, 2014
- Series C MRPS Articles Supplementary
- $20 million Series D MRPS Securities Purchase Agreement dated September 7, 2016
- Series D MRPS Articles Supplementary
- $20 million Series E MRPS Securities Purchase Agreement dated November 29, 2017
- Series E MRPS Articles Supplementary
Section 19(a) Notifications of Sources of Distributions
- 03/14/2019 - KMF Section 19(a) Notification
- 02/14/2019 - KMF Section 19(a) Notification
- 01/17/2019 - KMF Section 19(a) Notification
- 12/20/2018 - KMF Section 19(a) Notification
- 11/15/2018 - KMF Section 19(a) Notification
- 10/11/2018 - KMF Section 19(a) Notification
- 09/20/2018 - KMF Section 19(a) Notification
- 07/09/2018 - KMF Section 19(a) Notification
- 04/13/2018 - KMF Section 19(a) Notification
- 12/29/2017 - KMF Section 19(a) Notification
- 10/09/2017 - KMF Section 19(a) Notification
- 07/10/2017 - KMF Section 19(a) Notification
- 04/13/2017 - KMF Section 19(a) Notification
- 12/30/2016 - KMF Section 19(a) Notification
- 10/07/2016 - KMF Section 19(a) Notification
- 07/08/2016 - KMF Section 19(a) Notification
- 04/15/2016 - KMF Section 19(a) Notification
- 12/30/2015 - KMF Section 19(a) Notification
- 10/16/2015 - KMF Section 19(a) Notification
- 07/10/2015 - KMF Section 19(a) Notification
- 04/17/2015 - KMF Section 19(a) Notification
- 12/30/2014 - KMF Section 19(a) Notification
- Quarterly and Annual Reports
- Proxy Statements
Quarterly and Annual Reports
- 11/30/2018 - KMF 2018 Annual Report
- 08/31/2018 - KMF Q3 2018 Quarterly Report
- 05/31/2018 - KMF 2018 Semi-Annual Report
- 02/28/2018 - KMF Q1 2018 Quarterly Report
- 11/30/2017 - KMF 2017 Annual Report
- 08/31/2017 - KMF Q3 2017 Quarterly Report
- 05/31/2017 - KMF 2017 Semi-Annual Report
- 02/28/2017 - KMF Q1 2017 Quarterly Report
- 11/20/2016 - KMF 2016 Annual Report
- 08/31/2016 - KMF Q3 2016 Quarterly Report
- 05/31/2016 - KMF 2016 Semi-Annual Report
- 02/29/2016 - KMF Q1 2016 Quarterly Report
- Sample Forms 1099-DIV
- Form 8937
- William R. Cordes, Director
- Anne K. Costin, Director
- Barry R. Pearl, Director
- Albert L. Richey, Director
- William H. Shea Jr., Director
- William L. Thacker, Director
Code of Ethics
Voting Policies and Procedures
This material 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 represent past performance and are for the stated time period only, 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.
Closed-end funds, unlike open-end funds, are not continuously offered. After the initial public offering, shares are sold on the open market through a stock exchange. As with any other stock, total return and market value will fluctuate so that an investment, when sold, may be worth more or less than its original cost. Shares of closed-end funds frequently trade at a market price that is below their net asset value.
All investments involve risk, including possible loss of principal. An investment in the fund could suffer loss. The fund’s concentration of investments in energy-related MLPs and midstream entities subjects it to the risks of MLPs, midstream entities and the energy sector, including the risks of declines in energy and commodity prices, decreases in energy demand, adverse weather conditions, natural or other disasters, changes in government regulation, and changes in tax laws. 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, and increases a shareholder’s risk of 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, available here or at http://www.sec.gov. There can be no assurance that the fund’s investment objective will be attained.
Nothing contained in this communication is intended to recommend any investment policy or investment strategy or take into account the specific objectives or circumstances of any investor. Please consult with your investment, tax or legal adviser regarding your individual circumstances prior to investing.
NOT FDIC INSURED | NOT BANK GUARANTEED | MAY LOSE VALUE