Kayne Anderson Closed-End Funds Announce Tax Characterization of 2022 Distributions

Rhea-AI Summary

On January 24, 2023, KA Fund Advisors announced the tax characterization of 2022 distributions for Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) and Kayne Anderson NextGen Energy & Infrastructure (NYSE: KMF). KYN reported that 100% of its distributions are qualified dividends, while KMF disclosed that 21% of its distributions are qualified dividends and 79% are nondividend distributions (return of capital). No ordinary dividends or capital gains distributions were reported for either fund. Investors are encouraged to consult their tax advisors for specific implications related to these distributions.

Positive

• KYN reported 100% of distributions as qualified dividends, enhancing tax efficiency for investors.
• KMF has a significant portion (21%) of its distributions classified as qualified dividends.

Negative

• KMF reported a high proportion (79%) of nondividend distributions (return of capital), which may affect future income tax liabilities for shareholders.

HOUSTON, Jan. 24, 2023 (GLOBE NEWSWIRE) -- KA Fund Advisors, LLC (“Kayne Anderson”), which serves as the adviser to Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) and Kayne Anderson NextGen Energy & Infrastructure, Inc. (NYSE: KMF) announced today the tax characterization of 2022 distributions to stockholders.

		KYN Common Shares			KMF Common Shares
Ordinary dividends		-			-
Qualified dividends		100	%		21	%
Capital gains distributions		-			-
Nondividend distributions (return of capital)		-			79	%
		100	%		100	%

Additional information regarding the tax characterization of KYN’s and KMF’s 2022 distributions is available at www.kaynefunds.com.

This information is provided for general informational purposes only. It does not constitute, and should not be construed as, tax, legal, investment, or other professional advice and cannot be used or relied upon for the purpose of avoiding tax penalties. Investors should consult their tax adviser or legal counsel for advice and information concerning their particular situation.

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The Company’s investment objective is 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. See Glossary of Key Terms in the Company’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.

Kayne Anderson NextGen Energy & Infrastructure, Inc. (NYSE: KMF) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The Fund’s investment objective is to provide a high level of total return with an emphasis on making cash distributions to its stockholders. The Fund seeks to achieve its investment objective by investing at least 80% of its total assets in securities of Energy Companies and Infrastructure Companies. The Fund anticipates that the majority of its investments will consist of investments in ”NextGen” companies, which we define as Energy Companies and Infrastructure Companies that are meaningfully participating in, or benefitting from, the Energy Transition. See Glossary of Key Terms in the Fund’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.

This press release 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. Nothing contained in this press release is intended to recommend any investment policy or investment strategy or consider any investor’s specific objectives or circumstances. Before investing, please consult with your investment, tax, or legal adviser regarding your individual circumstances.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events. These and other statements not relating strictly to historical or current facts constitute forward-looking statements as defined under the U.S. federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include but are not limited to changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Company’s filings with the SEC, available at www.kaynefunds.com or www.sec.gov. Actual events could differ materially from these statements or our present expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained.

Contact: Investor Relations at 877-657-3863 or cef@kaynecapital.com

FAQ

What are the tax implications of KYN's distributions for 2022?

KYN's distributions for 2022 are classified as 100% qualified dividends, which provide a favorable tax treatment for investors.

What percentage of KMF's distributions are qualified dividends for 2022?

KMF reported that 21% of its 2022 distributions are qualified dividends.

How much of KMF's distributions are nondividend distributions for 2022?

KMF indicated that 79% of its distributions for 2022 are classified as nondividend distributions (return of capital).

Were there any ordinary dividends reported for KYN or KMF in 2022?

No ordinary dividends were reported for either KYN or KMF in 2022.

Where can I find more information about KYN and KMF's 2022 distributions?

Additional information about the tax characterization of KYN’s and KMF’s distributions is available at www.kaynefunds.com.