1 The distribution rate is calculated as four times the quarterly distribution amount divided by the closing price on the payable date.
2 Our distribution reinvestment plan (the “DRIP”), may be satisfied by the following two methods:
a) New Shares issued (“NS”) – The number of new or treasury shares to be issued to a stockholder shall be based on share price equal to 95% of the closing price of our common stock one day prior to the Distribution payment date.
b) Open Market purchases (“OM”) – Our Board of Directors may instruct us to purchase shares of our common stock in the open market if our common stock is trading below net asset value at the time of valuation. The plan administrator will receive the distribution in cash and will purchase common stock in the open market, for the participants’ accounts.
3 Represents an initial partial distribution.
4 Special distribution. See press release dated 6/25/15.
5 The Fund previously announced its intention to adopt a monthly distribution after the closing of its merger with Kayne Anderson Energy Total Return Fund, which closed on 8/6/18. The distribution payable in September is the first monthly distribution under the new policy.
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