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 KYN’s Dividend Reinvestment Plan (“DRIP”), which may be satisfied by the following two methods:
a) 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 company’s common stock one day prior to the dividend payment date.
b) Open Market purchases (“OM”) – If KYN’s common stock is trading below net asset value at the time of valuation, upon notice from the company, 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 company may be comprised of qualified dividend income and/or return of capital. Return of capital is considered nontaxable and reduces the stockholder’s cost basis of the investment. The company 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 KYN adopted a monthly distribution policy following the close of its merger with Kayne Anderson Energy Development Company (KED) on 8/6/18. The distribution paid in September 2018 was the first monthly distribution under this new policy. See press release dated 9/10/18.
5 Represents an initial partial distribution.
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