KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
AUGUST 31, 2021
(amounts in 000s, except number of option contracts)
(UNAUDITED)
Description |
No. of Shares/Units |
Value | ||||||
Long-Term Investments 136.3% |
||||||||
Equity Investments(1) 134.7% |
||||||||
Midstream Company(2) 48.2% |
||||||||
DCP Midstream, LP Series A Preferred Units(3)(4) |
1,785 | $ | 1,723 | |||||
Enbridge Inc.(5) |
348 | 13,678 | ||||||
Energy Transfer LP(3) |
2,632 | 24,475 | ||||||
EnLink Midstream Partners, LP, Series C Preferred Units(6) |
6,005 | 4,507 | ||||||
Enterprise Products Partners L.P.(3) |
755 | 16,795 | ||||||
Enterprise Products Partners L.P. Convertible Preferred Units(3)(7)(8)(9) |
18 | 19,457 | ||||||
Magellan Midstream Partners, L.P.(3) |
179 | 8,789 | ||||||
MPLX LP (3) |
891 | 25,041 | ||||||
ONEOK, Inc. |
269 | 14,142 | ||||||
Pembina Pipeline Corporation(5) |
468 | 14,238 | ||||||
Phillips 66 Partners LP(3) |
35 | 1,241 | ||||||
Plains GP Holdings, L.P.(10)(11) |
922 | 8,996 | ||||||
Plains GP Holdings, L.P. Plains AAP, L.P.(7)(10)(11)(12) |
690 | 6,730 | ||||||
Rattler Midstream LP(10) |
424 | 4,620 | ||||||
Targa Resources Corp.(13) |
794 | 34,891 | ||||||
|
|
|||||||
199,323 | ||||||||
|
|
|||||||
Renewable Infrastructure Company(2)(14) 29.6% |
||||||||
Atlantica Sustainable Infrastructure plc(5) |
479 | 18,003 | ||||||
Brookfield Renewable Partners L.P.(5) |
412 | 16,699 | ||||||
Brookfield Renewable Corporation Class A(5) |
202 | 8,831 | ||||||
Clearway Energy, Inc. Class A |
231 | 6,858 | ||||||
Clearway Energy, Inc. Class C |
137 | 4,304 | ||||||
Corporacion Acciona Energias Renovables, S.A.(5)(15) |
175 | 6,257 | ||||||
EDP Renováveis, S.A.(5) |
61 | 1,630 | ||||||
Enviva Partners, LP(3)(16) |
231 | 12,489 | ||||||
Innergex Renewable Energy Inc.(5) |
460 | 7,331 | ||||||
NextEra Energy Partners, LP |
244 | 19,503 | ||||||
Northland Power Inc.(5) |
308 | 10,183 | ||||||
Orsted A/S(5) |
32 | 5,024 | ||||||
Polaris Infrastructure Inc.(5) |
63 | 926 | ||||||
Terna Energy S.A.(5) |
309 | 4,420 | ||||||
|
|
|||||||
122,458 | ||||||||
|
|
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2021
(amounts in 000s, except number of option contracts)
(UNAUDITED)
Description |
No. of Shares/Units |
Value | ||||||
Utility Company(2) 29.3% |
||||||||
AB Ignitis Grupe(5)(14) |
94 | $ | 2,753 | |||||
Algonquin Power & Utilities Corp.(5)(14) |
437 | 6,787 | ||||||
Algonquin Power & Utilities Corp. Convertible Preferred Units(5)(14)(17) |
93 | 4,696 | ||||||
Avangrid, Inc.(14) |
99 | 5,388 | ||||||
Dominion Energy, Inc.(14) |
87 | 6,795 | ||||||
Duke Energy Corporation(14) |
86 | 9,032 | ||||||
EDP Energias de Portugal, S.A.(5)(14) |
1,352 | 7,425 | ||||||
Enel Società per Azioni(5)(14) |
837 | 7,621 | ||||||
Engie SA(5)(14) |
225 | 3,224 | ||||||
Evergy, Inc.(14) |
56 | 3,861 | ||||||
Eversource Energy |
80 | 7,240 | ||||||
Iberdrola, S.A.(5)(14) |
249 | 3,083 | ||||||
NextEra Energy, Inc.(14) |
156 | 13,136 | ||||||
RWE AG(5)(14) |
51 | 2,003 | ||||||
Sempra Energy(14) |
61 | 8,021 | ||||||
SSE plc(5)(14) |
283 | 6,358 | ||||||
The AES Corporation(14) |
157 | 3,736 | ||||||
The AES Corporation Convertible Preferred Shares(14)(18) |
50 | 4,964 | ||||||
TransAlta Corporation(5)(14) |
824 | 8,072 | ||||||
Xcel Energy Inc.(14) |
106 | 7,281 | ||||||
|
|
|||||||
121,476 | ||||||||
|
|
|||||||
Natural Gas & LNG Infrastructure Company(2)(14) 25.9% |
||||||||
Cheniere Energy, Inc.(13)(19) |
294 | 25,687 | ||||||
Cheniere Energy Partners, L.P.(3) |
160 | 6,545 | ||||||
DT Midstream, Inc. |
254 | 11,785 | ||||||
Equitrans Midstream Corporation |
163 | 1,421 | ||||||
Kinder Morgan, Inc. |
858 | 13,966 | ||||||
TC Energy Corporation(5) |
438 | 20,810 | ||||||
The Williams Companies, Inc. |
1,101 | 27,176 | ||||||
|
|
|||||||
107,390 | ||||||||
|
|
|||||||
Other Energy Company(2) 1.7% |
||||||||
Phillips 66 |
98 | 6,953 | ||||||
|
|
|||||||
Total Equity Investments (Cost $515,613) |
|
557,600 | ||||||
|
|
Interest Rate |
Maturity Date |
Principal Amount |
||||||||||||||||||
Debt Investments 1.6% |
||||||||||||||||||||
Midstream Company(2) 1.6% |
||||||||||||||||||||
Buckeye Partners, L.P. (Cost $5,728) |
|
6.375 | % | 1/22/78 | $ | 7,301 | 6,644 | |||||||||||||
|
|
|||||||||||||||||||
Total Long-Term Investments 136.3% (Cost $521,341) |
|
564,244 | ||||||||||||||||||
|
|
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2021
(amounts in 000s, except number of option contracts)
(UNAUDITED)
Description |
Strike Price |
Expiration Date |
No. of Contracts |
Notional Amount(20) |
Value | |||||||||||||||
Liabilities |
||||||||||||||||||||
Call Option Contracts Written(19) |
||||||||||||||||||||
Midstream Company(2) |
||||||||||||||||||||
Targa Resources Corp. |
$ | 45.00 | 9/17/21 | 250 | $ | 1,098 | $ | (25 | ) | |||||||||||
Targa Resources Corp. |
46.00 | 9/17/21 | 500 | 2,196 | (33 | ) | ||||||||||||||
Targa Resources Corp. |
48.00 | 10/15/21 | 1,000 | 4,392 | (80 | ) | ||||||||||||||
|
|
|||||||||||||||||||
(138 | ) | |||||||||||||||||||
|
|
|||||||||||||||||||
Natural Gas & LNG Infrastructure Company(2) |
||||||||||||||||||||
Cheniere Energy, Inc. |
92.50 | 9/17/21 | 350 | 3,061 | (14 | ) | ||||||||||||||
Cheniere Energy, Inc. |
97.50 | 10/15/21 | 150 | 1,312 | (10 | ) | ||||||||||||||
|
|
|||||||||||||||||||
(24 | ) | |||||||||||||||||||
|
|
|||||||||||||||||||
Total Call Option Contracts Written (Premiums Received $210) |
|
(162 | ) | |||||||||||||||||
|
|
|||||||||||||||||||
Debt |
|
(112,515 | ) | |||||||||||||||||
Mandatory Redeemable Preferred Stock at Liquidation Value |
|
(41,491 | ) | |||||||||||||||||
Other Assets in Excess of Other Liabilities |
|
3,844 | ||||||||||||||||||
|
|
|||||||||||||||||||
Net Assets Applicable to Common Stockholders |
|
$ | 413,920 | |||||||||||||||||
|
|
(1) | Unless otherwise noted, equity investments are common units/common shares. |
(2) | Refer to the Glossary of Key Terms for the definitions. |
(3) | Securities are treated as a qualified publicly-traded partnership for regulated investment company (RIC) qualification purposes. To qualify as a RIC for tax purposes, the Fund may directly invest up to 25% of its total assets in equity and debt securities of entities treated as qualified publicly-traded partnerships. The Fund had 20.5% of its total assets invested in qualified publicly-traded partnerships at August 31, 2021. It is the Funds intention to be treated as a RIC for tax purposes. |
(4) | Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units. Distributions are payable at a rate of 7.375% per annum through December 15, 2022. On and after December 15, 2022, distributions on the Series A Preferred Units will be payable at a rate equal to the three-month LIBOR plus 5.148% per annum. |
(5) | Foreign security. |
(6) | Series C Preferred Units are cumulative redeemable perpetual units. Distributions on the Series C Preferred Units are payable at a rate of 6.0% per annum through December 15, 2022. On and after December 15, 2022, the rate will be based on three-month LIBOR, determined quarterly, plus 4.11%. |
(7) | The Funds ability to sell this security is subject to certain legal or contractual restrictions. As of August 31, 2021, the aggregate value of restricted securities held by the Fund was $26,187 (4.6% of total assets), which included $6,730 of Level 2 securities and $19,457 of Level 3 securities. See Note 7 Restricted Securities. |
(8) | Fair valued on a recurring basis using significant unobservable inputs (Level 3). See Notes 2 and 3 in Notes to Financial Statements. |
(9) | The Enterprise Products Partners, L.P. (EPD) Series A Cumulative Convertible Preferred Units (EPD Convertible Preferred Units) are senior to the common units in terms of liquidation |
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2021
(amounts in 000s, except number of option contracts)
(UNAUDITED)
preference and priority of distributions, and pay a distribution of 7.25% per annum. The EPD Convertible Preferred Units are convertible into EPD common units at any time after September 29, 2025 at the liquidation preference amount divided by 92.5% of the 5-day volume weighted average price of the EPDs common units at such time. |
(10) | This company is structured like an MLP, but is not treated as a qualified publicly-traded partnership for RIC qualification purposes. |
(11) | The Fund believes that it is an affiliate of Plains AAP, L.P. (PAGP-AAP) and Plains GP Holdings, L.P. (PAGP). See Note 5 Agreements and Affiliations. |
(12) | The Funds ownership of PAGP-AAP is exchangeable on a one-for-one basis into either PAGP shares or Plains All American Pipeline, L.P. (PAA) units at the Funds option. The Fund values its PAGP-AAP investment on an as exchanged basis based on the higher public market value of either PAGP or PAA. As of August 31, 2021, the Funds PAGP-AAP investment is valued at PAGPs closing price. See Note 7 Restricted Securities. |
(13) | Security or a portion thereof is segregated as collateral on option contracts written. |
(14) | For the purposes of the Funds investment policies, it considers NextGen companies to be Energy Companies and Infrastructure Companies that are meaningfully participating in, or benefitting from, the Energy Transition. For these purposes we include Renewable Infrastructure Companies, Natural Gas & LNG Infrastructure Companies and certain Utility Companies. |
(15) | Security is not currently paying cash distributions but is expected to pay cash distributions within the next 12 months. |
(16) | On October 15, 2021, Enviva Partners, LP announced its intention to convert from a master limited partnership to a corporation to be named Enviva Inc. The conversion is expected to take effect as of December 31, 2021. |
(17) | The Algonquin Power & Utilities Corp. Convertible Preferred Units (AQNU) consists of a 1/20, or 5%, undivided beneficial interest in a $1,000 principal amount remarketable senior note of Algonquin Power & Utilities Corp. (AQN) due June 15, 2026, and a contract to purchase AQN common shares on June 15, 2024 based on a reference price determined by the volume-weighted average AQN common share price over the preceding 20 day trading period. AQNU pays quarterly distributions at a rate of 7.75% per annum. |
(18) | The AES Corporation Convertible Preferred Stock is comprised of a purchase contract and a 1/10, or 10%, undivided beneficial ownership interest in one share of 0% Series A Cumulative Perpetual Convertible Preferred Stock, without par value, with a liquidation preference of $1,000 per share (Series A Preferred Stock). The purchase contract obligates holders to purchase on February 15, 2024, for a price of $100, a number of newly issued shares of the companys common stock. The purchase contracts pay quarterly contract adjustment payments at a rate of 6.875% per annum on the stated amount of $100 per purchase contract. Prior to February 15, 2024, the Series A Preferred Stock may be converted at the option of the holder only under limited circumstances in connection with a fundamental change. On and after February 15, 2024, the Series A Preferred Stock may be converted freely at the option of the holder. The conversion rate is initially 31.5428 shares of common stock per one share of Series A Preferred Stock. |
(19) | Security is non-income producing. |
(20) | The notional amount of call option contracts written is the product of (a) the number of contracts written, (b) 100 (each contract entitles the option holder to 100 units/shares) and (c) the market price of the underlying security as of August 31, 2021. |
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2021
(amounts in 000s, except number of option contracts)
(UNAUDITED)
At August 31, 2021, the Funds geographic allocation was as follows:
Geographic Location |
% of Long-Term Investments |
|||
United States |
68.1 | % | ||
Canada |
19.9 | % | ||
Europe/U.K. |
12.0 | % |
Schedule of Outstanding Forward Currency Contracts
Settlement Date(1) |
Currency to be delivered |
Value (USD) | Currency to be received |
Value (USD) | Unrealized Appreciation (Depreciation)(2) |
|||||||||||||||||||||||
11/30/2021 | 26,493 | EUR | $ | 31,345 | 31,593 | USD | $ | 31,593 | $ | 248 | ||||||||||||||||||
11/30/2021 | 30,793 | CAD | 24,412 | 24,874 | USD | 24,874 | 462 | |||||||||||||||||||||
11/30/2021 | 4,070 | GBP | 5,597 | 5,655 | USD | 5,655 | 58 | |||||||||||||||||||||
11/30/2021 | 25,245 | DKK | 4,015 | 4,047 | USD | 4,047 | 32 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Total Forward Currency Contracts |
|
$ | 65,369 | $ | 66,169 | $ | 800 | |||||||||||||||||||||
|
|
|
|
|
|
CAD Canadian Dollar
DKK Danish Krone
EUR Euro
GBP British Pound Sterling
USD U.S. Dollar
(1) | Bannockburn Global Forex, LLC is the counterparty for all outstanding forward currency contracts held by the Fund as of August 31, 2021. |
(2) | Unrealized appreciation is a receivable and unrealized depreciation is a payable. |
See accompanying notes to financial statements.