Kayne Anderson Fund Advisors

KYE - Energy Total Return Fund

KYE - Fact Sheet

Fact Sheet

Overview
as of 1/31/17
Symbol
KYE
Exchange
NYSE
CUSIP
48660P104
Inception Date
6/28/2005
   
Total Assets
$688 million
Leverage
$199 million
   
Quarterly Distribution1 ($/share)
$0.25
   
% of portfolio assets with Call Options
None
   
Objective

KYE is a closed-end fund that invests principally in equity and debt securities of companies in the energy industry, such as energy-related master limited partnerships (MLPs), midstream corporations, marine transportation and energy-related debt. KYE’s objective is to obtain a high total return with an emphasis on current income.

Investment Merits
Diversified Portfolio of Energy Investments

KYE targets a diversified investment portfolio across multiple energy sub-sectors – MLPs, midstream corporations, marine transportation and energy-related debt. This multi-sector strategy allows KYE to reduce the portfolio’s volatility.

Positive Long-Term Outlook for Energy Industry

Global demand for energy continues to increase, largely driven by global population increases and continued growth from developing economies. KYE believes that demand growth will increase the need for additional energy infrastructure assets and create growth opportunities for KYE's portfolio investments.

Attractive Fund Structure

- KYE 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, KYE does not generate unrelated business taxable income (UBTI).

Portfolio
as of 1/31/17
[image]
Top 10 Holdings
as of 1/31/17
Enbridge Energy Management, L.L.C.
8.2%
Plains GP Holdings, L.P.
6.0%
ONEOK, Inc.*
5.9%
Targa Resources Corp.
5.6%
Golar LNG Partners LP
5.0%
The Williams Companies, Inc.
4.0%
KNOT Offshore Partners LP
3.7%
Capital Product Partners L.P.
3.6%
Energy Transfer Partners, L.P.**
3.5%
GasLog Partners LP
2.9%
48.4%
 

* On February 1, 2017, ONEOK, Inc. (“OKE”) and ONEOK Partners, L.P. (“OKS”) announced an agreement to combine in a stock-for-unit merger. On a combined basis, OKE and OKS represent 7.7% of long-term investments as of January 31, 2017.

** On November 21, 2016, Energy Transfer Partners, L.P. (“ETP”) and Sunoco Logistics Partners L.P. (“SXL”) announced an agreement to combine in a unit-for-unit merger. On a combined basis, ETP and SXL represent 5.1% of long-term investments as of January 31, 2017.

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 KYE.
Information on Tax Character of Distributions

Our distributions are generally taxable as ordinary income (a portion of which may be qualified dividends) or capital gains. Distributions of our ordinary income plus net short-term capital gains in excess of net long-term capital losses will be taxable as ordinary income to the extent of our current or accumulated earnings and profits. If our distributions exceed our current or accumulated earnings and profits, the distributions 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 distributed in excess of such stockholder’s basis would be taxed as a capital gain. Common stockholders will receive a Form 1099 from us and will recognize ordinary 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. Sample Form 1099-DIV for each year can be found at www.kaynefunds.com/kye/tax-information.

Calendar
Year
Ordinary dividends Qualified dividends Capital gains
distrib.
    Nondividend
distrib.
(Return of Capital)
       Total
2005 71% 29% -   -                   100%
2006 44% 54% -   2%                100%
2007 27% 48% 25%   -                   100%
2008 - 20% -   80%               100%
2009 15% 16% -   69%               100%
2010 85% 15% -     -                   100%
2011 100%     -                   100%
2012 15% 22%   63%                100%
2013  3% 64%    33%                100%
2014 66% 33% 1%    -                   100%
2015 - - -   100%              100%
2016 56% 33% -   11%              100%

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

Total Return (NAV plus distributions)
6/28/05 to 1/31/17
[image]
Share Price and NAV History
6/28/05 to 1/31/17
[image]
Premium/Discount to NAV
6/28/05 to 1/31/17
[image]
Calendar Year Returns
as of 1/31/17
 
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
NAV and distrib2
22.8%
-52.5%
97.4%
37.5%
2.9%
0.0%
28.7%
-2.5%
-59.5%
55.1%
-1.4%
NAV only
15.0%
-57.5%
76.7%
27.4%
-4.4%
-7.1%
19.9%
-9.1%
-64.2%
40.9%
-1.4%
Share price & distrib2
13.8%
-53.5%
124.4%
36.0%
-6.4%
4.6%
19.4%
9.3%
-65.6%
53.5%
4.3%
Share price only
6.6%
-58.4%
100.9%
26.0%
-13.1%
-2.8%
11.2%
1.8%
-69.6%
39.4%
4.3%
Returns (Not annualized)
as of 1/31/17
 
3 Mo.
6 Mo.
1-Yr
2-Yr
3-Yr
5-Yr
10-Yr
Since Inception
NAV and distrib2
11.7%
20.1%
95.9%
-34.7%
-39.5%
-25.3%
22.5%
47.3%
NAV only
9.5%
15.1%
77.9%
-47.7%
-54.8%
-51.7%
-48.9%
-44.4%
Share price & distrib2
16.3%
18.7%
79.5%
-36.8%
-39.2%
-31.2%
14.6%
30.6%
Share price only
14.0%
13.9%
63.0%
-49.3%
-54.5%
-55.6%
-52.2%
-50.7%
Growth of Hypothetical $10,000 Investment
Date
NAV and Distrib
Share Price
and Distrib
Inception (6/28/05)
$10,000
$10,000
12/31/05
10,209
8,515
12/31/06
11,614
11,477
12/31/07
14,267
13,065
12/31/08
6,778
6,072
12/31/09
13,381
13,626
12/31/10
18,397
18,535
12/31/11
18,933
17,340
12/31/12
18,931
18,140
12/31/13
24,364
21,663
12/31/14
23,760
23,676
12/31/15
9,630
8,153
12/31/16
14,954
12,529
1/31/17
14,729
13,059

 

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) Payable on 1/13/17 (ex-date 12/28/16) for the quarter ended 11/30/16. (See "Information on Tax Character of Distributions" on Distributions tab)

2) 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

Copyright © 2017 - KA Fund Advisors, LLC - All rights reserved.