Kayne Anderson Energy Infrastructure Fund, Inc.
Overview
Investment Objective
To provide a high after-tax total return with an emphasis on making cash distributions to stockholders. KYN intends to achieve this objective by investing at least 80% of its total assets in securities of Energy Infrastructure Companies.
1) Paid on 1/11/22 (ex-date 1/3/22). (See Distributions section below for more information).
2) Calculated by annualizing the most recent distribution amount divided by the closing market price. The Distribution rate is subject to change and is not a quotation of fund performance.
Investment Highlights
Opportunities in North American Energy Infrastructure
- Unique opportunity to invest across the full spectrum of North American energy infrastructure companies through investments in traditional midstream energy, natural gas infrastructure, renewable infrastructure, and utilities
- Renewable infrastructure companies and utilities have many attractive attributes, including lower volatility and correlation to the broader equity markets, contracted/regulated cash flows, multi-year growth visibility, and attractive ESG characteristics
Positioned to Capitalize on the Energy Transition
- Energy Transition is the global shift to a more sustainable mix of lower carbon and renewable energy sources aimed at reducing emissions of carbon dioxide and other greenhouse gasses
- A multi-decade “mega-trend” in the energy and infrastructure sectors with the goal to reduce emissions of carbon dioxide other greenhouse gasses and limit the impact of climate change
Attractive Fund Structure
- Simplified tax reporting with a single Form 1099 (no K-1)
- Suitable for IRAs, foundations, and tax-exempt accounts (no UBTI)
Daily Pricing
Performance
Quarterly Performance
a) Net Asset Return is defined as the change in net asset value per share plus cash distributions paid during the period (assuming reinvestment through our dividend reinvestment plan).
b) Market Return is defined as the change in share price plus cash distributions paid during the period (assuming reinvestment through our dividend reinvestment plan).
c) KYN’s Composite Energy Infrastructure Index is comprised of an 80% weighting to the midstream sector, a 12.5% weighting to the renewable infrastructure sector, and a 7.5% weighting to the utility sector. Returns for each period are total returns (assuming reinvestment of dividends). The sub-sector allocations for this composite index were established by Kayne Anderson at the beginning of fiscal 2021 and are expected to change on an annual basis. Please see footnote (e) for a description of the benchmarks used for each energy infrastructure sub-sector.
d) Portfolio returns reflect KYN’s asset level returns for each sub-sector based on KYN’s portfolio holdings. Asset level return is calculated as the total return (before leverage and expenses) of KYN’s portfolio holdings for each sub-sector.
e) The benchmark for the midstream sector is the Alerian Midstream Energy Total Return Index (AMNAX). The benchmark for the renewable infrastructure sector is a composite total return for 39 domestic and international renewable infrastructure and utility companies (calculated on a market-cap weighted basis with individual constituents capped at a 10% weighting). The benchmark for the U.S. utilities sector is the Utilities Select Sector SPDR (XLU), which is an ETF linked to the Utilities Select Sector Index (IXU), a sub-set of the S&P 500.
f) Excludes preferred and credit investments.
g) Includes Algonquin Power & Utilities Corp., EDP – Energias de Portugal, S.A., Enel S.p.A., NextEra Energy Inc., and SSE plc as these are all included in the benchmark for the renewable infrastructure sector.
h) Includes TransAlta Corporation.
Premium/Discount to NAV
Total Return (NAV plus distributions)
Period Returns (Not Annualized)
Calendar Year Returns
3) Assumes that distributions have been reinvested at the Dividend Reinvestment Plan (DRIP) price.
Growth of Hypothetical $10,000 Investment4
4) The growth of $10,000 chart is a hypothetical illustration based upon the performance of the fund’s common shares since inception. Ending values as of the dates shown in the chart. Assumes reinvestment of distributions at the DRIP price, the deduction of management fees, operating expenses, and all other fund expenses but does not reflect transaction fees or broker commissions. Current performance may be lower or higher than the performance data quoted.
Returns reflect the deduction of management fees and expenses but do not reflect transaction fees or broker commissions. Performance data quoted represents past performance and is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than that shown based on market fluctuations from the end of the reported period.
Portfolio
Portfolio (%)
Top 10 Holdings
*Includes ownership Plains All American Pipeline, L.P. (PAA) and Plains AAP, L.P. (PAGP-AAP).
Click here for the most recent Schedule of Investments
Reflected as a percentage of long-term investments. Portfolio holdings and/or sector allocations are subject to change at any time, without notice, and are not recommendations to buy or sell any security. You can obtain a complete listing of holdings by viewing our quarterly or annual report for the most recently completed period.
Distributions
Annual Distributions per Calendar Year
* Based on year-to-date distributions paid or declared.
The amount of distributions is not guaranteed and may vary depending on a number of factors, including changes in portfolio holdings and market conditions.
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 for the past ten years.
Information on Tax Character of Distributions
5) This estimate is based on our anticipated earnings and profits for fiscal 2021. The final determination of the tax character of distributions will be made in early 2022 and may differ substantially from this preliminary information.
6) This estimate is based on our anticipated earnings and profits for fiscal 2022. The final determination of the tax character of distributions will be made in early 2023 and may differ substantially from this preliminary information.
Leverage
KYN 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 25% to 30% of the fund’s total assets.
Leverage Summary
*KYN will pay a fixed interest rate of 1.735% on $25 million of the Term Loan. The remaining $25 million of the Term Loan will accrue interest daily at a rate of LIBOR plus 1.30%. Amounts repaid under the Term Loan cannot be reborrowed.
Balance Sheet
Balance Sheet as of December 31, 2021 (Unaudited)
Balance Sheet as of November 30, 2021 (Unaudited)
Balance Sheet as of October 31, 2021 (Unaudited)
Balance Sheet as of September 30, 2021 (Unaudited)
Balance Sheet as of August 31, 2021 (Unaudited)
Balance Sheet as of July 31, 2021 (Unaudited)
Balance Sheet as of June 30, 2021 (Unaudited)
Balance Sheet as of May 31, 2021 (Unaudited)
Balance Sheet as of April 30, 2021 (Unaudited)
Balance Sheet as of March 31, 2021 (Unaudited)
Balance Sheet as of February 28, 2021 (Unaudited)
Resources
- Other Material Documents
- Dividend Reinvestment Plan
- Expense Ratios
Credit Facility
Term Loan Facility
Senior Notes
- $175 million Series X to CC Notes Purchase Agreement dated 5/3/12
- Series BB to CC Notes Purchase Amendment dated 11/5/20
- $235 million Series DD to GG Notes Purchase Agreement dated 4/16/13
- Series EE to GG Notes Purchase Amendment dated 11/5/20
- $140 million Series II to KK Notes Purchase Agreement dated 4/30/14
- Series JJ to KK Notes Purchase Amendment dated 11/5/20
- $200 million Series LL to OO Notes Purchase Agreement dated 10/29/14
- Series MM to OO Notes Purchase Amendment dated 11/5/20
- Series PP and QQ Notes Purchase Agreement dated 5/11/21
Mandatory Redeemable Preferred Shares (MRPS)
Dividend Reinvestment Plan
SEC Filings
- Quarterly and Annual Reports
- Prospectuses
- Proxy Statements
- 08/31/2021 KYN Q3 2021 Quarterly Report
- 05/31/2021 KYN Q2 2021 Quarterly Report
- 02/28/2021 KYN Q1 2021 Quarterly Report
- 11/30/2020 KYN 2020 Annual Report
- 08/31/2020 KYN Q3 2020 Quarterly Report
- 05/31/2020 KYN 2020 Semi-Annual Report
- 02/29/2020 KYN Q1 2020 Quarterly Report
- 11/30/2019 KYN 2019 Annual Report
- 08/31/2019 KYN Q3 2019 Quarterly Report
- 05/31/2019 KYN 2019 Semi-Annual Report
- 02/28/2019 KYN Q1 2019 Quarterly Report
- 11/30/2018 KYN 2018 Annual Report
- 08/31/2018 KYN Q3 Quarterly Report
- 05/31/2018 KYN 2018 Semi-Annual Report
- 02/28/2018 KYN Q1 2018 Quarterly Report
- 11/30/2017 KYN 2017 Annual Report
- 08/31/2017 KYN Q3 2017 Quarterly Report
- 05/31/2017 KYN 2017 Semi-Annual Report
- 02/28/2017 KYN Q1 2017 Quarterly Report
- 11/30/2016 KYN 2016 Annual Report
- 08/31/2016 KYN Q3 2016 Quarterly Report
- 05/31/2016 KYN 2016 Semi-Annual Report
- 02/29/2016 KYN Q1 2016 Quarterly Report
Tax Information
- Sample Forms 1099-DIV (Common)
- Form 8937
- Sample Forms 1099-DIV (Preferred)
- KYN 2020 Form 1099-DIV
- KYN 2019 Form 1099-DIV
- KYN 2018 Form 1099-DIV
- KYN 2017 Form 1099-DIV
- KYN 2016 Form 1099-DIV
- KYN 2015 Form 1099-DIV
- KYN 2014 Form 1099-DIV
- KYN 2013 Form 1099-DIV
- KYN 2012 Form 1099-DIV
- KYN 2011 Form 1099-DIV
- KYN 2010 Form 1099-DIV
- KYN 2009 Form 1099-DIV
- KYN 2008 Form 1099-DIV
- KYN 2007 Form 1099-DIV
- KYN 2006 Form 1099-DIV
- KYN 2005 Form 1099-DIV
- KYN 2020 Form 1099-DIV (Series F Preferred)
- KYN 2019 Form 1099-DIV (Series F Preferred)
- KYN 2018 Form 1099-DIV (Series F Preferred)
- KYN 2017 Form 1099-DIV (Series F Preferred)
- KYN 2016 Form 1099-DIV (Series E Preferred)
- KYN 2016 Form 1099-DIV (Series F Preferred)
- KYN 2016 Form 1099-DIV (Series G Preferred)
- KYN 2015 Form 1099-DIV (Series E Preferred)
- KYN 2015 Form 1099-DIV (Series F Preferred)
- KYN 2015 Form 1099-DIV (Series G Preferred)
- KYN 2014 Form 1099-DIV (Series E Preferred)
- KYN 2014 Form 1099-DIV (Series F Preferred)
- KYN 2014 Form 1099-DIV (Series E Preferred)
- KYN 2013 Form 1099-DIV (Series D Preferred)
- KYN 2013 Form 1099-DIV (Series E Preferred)
- KYN 2013 Form 1099-DIV (Series F Preferred)
- KYN 2013 Form 1099-DIV (Series G Preferred)
- KYN 2012 Form 1099-DIV (Series D Preferred)
- KYN 2012 Form 1099-DIV (Series E Preferred)
- KYN 2011 Form 1099-DIV (Series D Preferred)
Governance
Independent Directors
- William R. Cordes, Director
- Anne K. Costin, Director
- Barry R. Pearl, Director
- Albert L. Richey, Director
- William H. Shea, Jr., Director (Lead Independent)*
Interested Directors
- Jim Baker, Chairman of the Board of Directors, President, and Chief Executive Officer
Governance Documents
Second Amended and Restated Bylaws
Code of Ethics
Voting Policies and Procedures
Charters
*Role as the KYN and KMF lead independent director effective April 2, 2020.
Performance data quoted represent past performance as of the stated date herein. 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 the energy and infrastructure industries subjects it to greater risk and volatility than a diversified fund. Risks include, but are not limited to, those associated with energy infrastructure companies, midstream companies, renewable infrastructure companies, 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 that 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.
This site is provided for informational purposes only and does 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. Nothing contained on this site constitutes tax, legal or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE