KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2022
(amounts in 000’s)
(UNAUDITED)
Description | No. of | Value | |||
Long-Term Investments — 133.9% |
| ||||
Equity Investments(1) — 132.5% |
| ||||
Midstream Company(2) — 48.1% |
| ||||
Aris Water Solutions, Inc. | 333 | $ | 4,865 | ||
Enbridge Inc.(3) | 348 |
| 15,024 | ||
Energy Transfer LP(4) | 2,632 |
| 26,685 | ||
Enterprise Products Partners L.P.(4) | 755 |
| 18,425 | ||
Enterprise Products Partners L.P. — Convertible Preferred | 18 |
| 19,157 | ||
Magellan Midstream Partners, L.P.(4) | 179 |
| 8,666 | ||
MPLX LP(4) | 891 |
| 29,190 | ||
ONEOK, Inc. | 269 |
| 17,583 | ||
Pembina Pipeline Corporation(3) | 468 |
| 15,880 | ||
Plains GP Holdings, L.P.(8)(9) | 922 |
| 10,425 | ||
Plains GP Holdings, L.P. - Plains AAP, L.P.(5)(8)(9)(10) | 690 |
| 7,799 | ||
Rattler Midstream LP(8) | 424 |
| 5,854 | ||
Targa Resources Corp. | 629 |
| 41,146 | ||
| 220,699 | ||||
Natural Gas & LNG Infrastructure Company(2)(11) — 31.0% |
| ||||
Cheniere Energy, Inc. | 259 |
| 34,381 | ||
Cheniere Energy Partners, L.P.(4) | 160 |
| 8,655 | ||
DT Midstream, Inc. | 402 |
| 21,320 | ||
Kinder Morgan, Inc. | 1,143 |
| 19,894 | ||
TC Energy Corporation(3) | 438 |
| 23,540 | ||
The Williams Companies, Inc. | 1,101 |
| 34,430 | ||
| 142,220 | ||||
Renewable Infrastructure Company(2)(11) — 25.2% |
| ||||
Atlantica Sustainable Infrastructure plc(3) | 479 |
| 16,155 | ||
Brookfield Renewable Partners L.P.(3)(8) | 412 |
| 14,804 | ||
Brookfield Renewable Corporation — Class A(3)(8) | 202 |
| 7,533 | ||
Clearway Energy, Inc. — Class A | 231 |
| 7,054 | ||
Clearway Energy, Inc. — Class C | 137 |
| 4,579 | ||
Corporacion Acciona Energias Renovables, S.A.(3)(12) | 175 |
| 5,877 | ||
EDP Renováveis, S.A.(3) | 61 |
| 1,490 | ||
Enviva Inc. | 218 |
| 15,174 | ||
Innergex Renewable Energy Inc.(3) | 544 |
| 7,910 | ||
NextEra Energy Partners, LP | 204 |
| 15,914 | ||
Northland Power Inc.(3) | 308 |
| 9,785 | ||
Orsted A/S(3) | 32 |
| 4,089 | ||
Polaris Infrastructure Inc.(3) | 63 |
| 771 | ||
Terna Energy S.A.(3) | 309 |
| 4,481 | ||
| 115,616 |
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2022
(amounts in 000’s)
(UNAUDITED)
Description | No. of | Value | |||
Utility Company(2) — 23.8% |
| ||||
AB Ignitis Grupe(3)(11) | 78 | $ | 1,700 | ||
American Electric Power Company, Inc. | 11 |
| 997 | ||
Algonquin Power & Utilities Corp. — Convertible Preferred | 93 |
| 4,290 | ||
Dominion Energy, Inc.(11) | 116 |
| 9,257 | ||
Duke Energy Corporation(11) | 96 |
| 9,639 | ||
EDP — Energias de Portugal, S.A.(3)(11) | 1,352 |
| 6,605 | ||
Enel — S. p. A.(3)(11) | 837 |
| 6,165 | ||
Engie SA(3)(11) | 225 |
| 3,585 | ||
Evergy, Inc.(11) | 56 |
| 3,520 | ||
Eversource Energy | 80 |
| 6,528 | ||
Iberdrola, S.A.(3)(11) | 249 |
| 2,823 | ||
NextEra Energy, Inc.(11) | 125 |
| 9,760 | ||
Public Power Corporation S.A.(3)(11)(14) | 712 |
| 6,762 | ||
RWE AG(3)(11) | 51 |
| 2,376 | ||
Sempra Energy(11) | 68 |
| 9,807 | ||
SSE plc(3)(11) | 283 |
| 6,422 | ||
The AES Corporation(11) | 157 |
| 3,323 | ||
TransAlta Corporation(3)(11) | 611 |
| 6,198 | ||
Xcel Energy Inc.(11) | 137 |
| 9,218 | ||
| 108,975 | ||||
Other Energy Company(2) — 4.4% |
| ||||
Phillips 66 | 116 |
| 9,755 | ||
Shell plc — ADR(3)(15) | 47 |
| 2,473 | ||
TotalEnergies SE — ADR(3)(15) | 153 |
| 7,731 | ||
| 19,959 | ||||
Total Equity Investments (Cost — $516,893) |
| 607,469 |
Interest | Maturity | Principal | ||||||||||
Debt Investments — 1.4% |
|
|
|
| ||||||||
Midstream Company(2) — 1.4% |
|
|
|
| ||||||||
Buckeye Partners, L.P. (Cost — $6,188) | 6.375 | % | 1/22/78 | $ | 7,831 |
| 6,539 |
| ||||
Total Long-Term Investments — 133.9% (Cost — $523,081) |
| 614,008 |
| |||||||||
Debt |
| (115,091 | ) | |||||||||
Mandatory Redeemable Preferred Stock at Liquidation Value |
| (41,491 | ) | |||||||||
Other Assets in Excess of Other Liabilities |
| 1,208 |
| |||||||||
Net Assets Applicable to Common Stockholders | $ | 458,634 |
|
____________
(1) Unless otherwise noted, equity investments are common units/common shares.
(2) Refer to the Glossary of Key Terms for definitions.
(3) Foreign security.
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2022
(amounts in 000’s)
(UNAUDITED)
(4) 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 18.0% of its total assets invested in qualified publicly-traded partnerships at February 28, 2022. It is the Fund’s intention to be treated as a RIC for tax purposes.
(5) The Fund’s ability to sell this security is subject to certain legal or contractual restrictions. As of February 28, 2022, the aggregate value of restricted securities held by the Fund was $26,956 (4.4% of total assets), which included $7,799 of Level 2 securities and $19,157 of Level 3 securities. See Note 7 — Restricted Securities.
(6) Fair valued on a recurring basis using significant unobservable inputs (Level 3). See Notes 2 and 3 in Notes to Financial Statements.
(7) 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 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 EPD’s common units at such time.
(8) This company is structured like an MLP, but is not treated as a qualified publicly-traded partnership for RIC qualification purposes.
(9) 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.
(10) The Fund’s 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 Fund’s 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 February 28, 2022, the Fund’s PAGP-AAP investment is valued at PAGP’s closing price. See Note 7 — Restricted Securities.
(11) For the purposes of the Fund’s 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.
(12) Security is not currently paying cash distributions but is expected to pay cash distributions within the next 12 months.
(13) 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.
(14) Security is non-income producing.
(15) ADR — American Depositary Receipt.
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
FEBRUARY 28, 2022
(amounts in 000’s)
(UNAUDITED)
At February 28, 2022, the Fund’s geographic allocation was as follows:
Geographic Location | % of Long-Term | |
United States | 70.0% | |
Canada | 17.2% | |
Europe/U.K. | 12.8% |
Schedule of Outstanding Forward Currency Contracts
Settlement | Currency to be | Value (USD) | Currency to be | Value (USD) | Unrealized | |||||||||||||
5/31/2022 | 34,853 | EUR | $ | 39,235 | 39,342 | USD | $ | 39,342 | $ | 107 |
| |||||||
5/31/2022 | 29,584 | CAD |
| 23,349 | 23,158 | USD |
| 23,158 |
| (191 | ) | |||||||
5/31/2022 | 3,986 | GBP |
| 5,347 | 5,294 | USD |
| 5,294 |
| (53 | ) | |||||||
5/31/2022 | 24,614 | DKK |
| 3,724 | 3,744 | USD |
| 3,744 |
| 20 |
| |||||||
Total Forward Currency Contracts | $ | 71,655 | $ | 71,538 | $ | (117) |
|
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 February 28, 2022.
(2) Unrealized appreciation is a receivable and unrealized depreciation is a payable.
See accompanying notes to financial statements.