1) Distribution rate is calculated by annualizing the indicated monthly or quarterly distribution amount, excluding special distributions, divided by the closing market price as of the stated payment date.
2) Indicates the distribution reinvestment price and method pursuant to KMF’s Dividend Reinvestment Plan (“DRIP”), which may be satisfied by the following two methods:
- New Shares issued (“NS”) – The number of shares to be issued to a stockholder shall be based on share price equal to 95% of the closing price of the fund’s common stock one day prior to the dividend payment date.
- Open Market purchases (“OM”) – If KMF’s common stock is trading below net asset value at the time of valuation, upon notice from the fund, the plan administrator will receive the dividend or distribution in cash and will purchase shares in the open market for participants’ accounts.
3) Distributions paid by the fund may be comprised of income (ordinary and/or qualified dividends), capital gains, and/or return of capital. Return of capital is considered nontaxable and reduces the stockholder’s cost basis of the investment. The fund will issue a Form 1099-DIV after each fiscal year-end once the final tax character of distributions has been determined. A current estimate of the tax character of distributions can be found in the most recent distribution press release and/or within the Distributions section of this page. The final tax character may differ substantially from preliminary estimates.
4) On March 16, 2020, in an effort to enhance our flexibility with respect to the timing and amount of leverage reductions, our Board of Directors elected to delay the payment of the distribution originally scheduled to be paid on March 31, 2020, until April 30, 2020. We also announced our plan to revert to making distributions to shareholders on a quarterly basis, with an expectation that the first such quarterly distribution would be declared and paid in June 2020. See the related press release dated March 16, 2020 and press release dated June 8, 2020.
5) The Fund adopted a monthly distribution policy following the close of its merger with Kayne Anderson Energy Total Return Fund, Inc. (KYE) on August 6, 2018. The distribution paid in September 2018 was the first monthly distribution under this new policy. See press release dated September 10, 2018.
6) Special distribution, see press release dated June 25, 2015.
7) Represents an initial partial distribution.
KMF pays cash distributions to common stockholders at a rate that may be adjusted from time to time. The amount of distributions is not guaranteed and may vary depending on a number of factors, including changes in portfolio holdings and market conditions.
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 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 | NO BANK GUARANTEE | MAY LOSE VALUE