KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2022
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | No. of | Value | |||
Long-Term Investments — 134.7% |
| ||||
Equity Investments(1) — 133.4% |
| ||||
Midstream Company(2) — 48.5% |
| ||||
Aris Water Solutions, Inc. | 140 | $ | 2,371 | ||
Enbridge Inc.(3) | 393 |
| 16,210 | ||
Energy Transfer LP(4) | 2,632 |
| 30,817 | ||
Enterprise Products Partners L.P.(4) | 940 |
| 24,728 | ||
Enterprise Products Partners L.P. — Convertible Preferred Units(4)(5)(6)(7) | 18 |
| 17,973 | ||
Magellan Midstream Partners, L.P.(4) | 59 |
| 3,057 | ||
MPLX LP(4) | 891 |
| 29,048 | ||
ONEOK, Inc. | 269 |
| 16,488 | ||
Pembina Pipeline Corporation(3) | 495 |
| 17,490 | ||
Plains GP Holdings, L.P.(8)(9) | 1,591 |
| 19,062 | ||
Plains GP Holdings, L.P. — Plains AAP, L.P.(5)(8)(9)(10) | 690 |
| 8,261 | ||
Targa Resources Corp.(11) | 613 |
| 41,813 | ||
Western Midstream Partners, LP(4) | 182 |
| 5,115 | ||
| 232,433 | ||||
Natural Gas & LNG Infrastructure Company(2)(12) — 33.0% |
| ||||
Cheniere Energy, Inc.(11) | 259 |
| 41,439 | ||
Cheniere Energy Partners, L.P.(4) | 160 |
| 8,197 | ||
DT Midstream, Inc. | 402 |
| 22,167 | ||
Kinder Morgan, Inc. | 1,143 |
| 20,946 | ||
Streamline Innovations Holdings, Inc. — Series C Preferred Shares(5)(6)(9)(13)(14) | 1,375 |
| 6,875 | ||
TC Energy Corporation(3) | 455 |
| 21,911 | ||
The Williams Companies, Inc. | 1,068 |
| 36,358 | ||
| 157,893 | ||||
Renewable Infrastructure Company(2)(12) — 25.1% |
| ||||
Atlantica Sustainable Infrastructure plc(3) | 491 |
| 16,403 | ||
Brookfield Renewable Corporation — Class A(3)(8) | 202 |
| 7,739 | ||
Brookfield Renewable Partners L.P.(3)(8) | 445 |
| 16,545 | ||
Clearway Energy, Inc. — Class A | 231 |
| 7,951 | ||
Clearway Energy, Inc. — Class C | 137 |
| 5,086 | ||
Corporacion Acciona Energias Renovables, S.A.(3) | 175 |
| 7,262 | ||
Enviva Inc. | 154 |
| 10,715 | ||
Innergex Renewable Energy Inc.(3) | 544 |
| 8,223 | ||
NextEra Energy Partners, LP | 238 |
| 19,529 | ||
Northland Power Inc.(3) | 308 |
| 10,536 |
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2022
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | No. of | Value | |||
Renewable Infrastructure Company (continued) |
| ||||
Orsted A/S(3) | 32 | $ | 3,084 | ||
Polaris Renewable Energy Inc.(3) | 63 |
| 920 | ||
Terna Energy S.A.(3) | 309 |
| 5,510 | ||
TransAlta Renewables Inc.(3) | 56 |
| 743 | ||
| 120,246 | ||||
Utility Company(2) — 21.9% |
| ||||
Algonquin Power & Utilities Corp. — Convertible Preferred Units(3)(12)(15) | 93 |
| 4,146 | ||
American Electric Power Company, Inc. | 22 |
| 2,174 | ||
Capital Power Corporation(3)(12) | 33 |
| 1,265 | ||
Dominion Energy, Inc.(12) | 147 |
| 12,041 | ||
Duke Energy Corporation(12) | 120 |
| 12,797 | ||
EDP — Energias de Portugal, S.A.(3)(12) | 982 |
| 4,689 | ||
Enel S.p.A.(3)(12) | 489 |
| 2,294 | ||
Evergy, Inc.(12) | 56 |
| 3,865 | ||
Eversource Energy | 98 |
| 8,745 | ||
NextEra Energy, Inc.(12) | 125 |
| 10,607 | ||
NRG Energy, Inc. | 33 |
| 1,375 | ||
Public Power Corporation S.A.(3)(12)(14) | 712 |
| 3,722 | ||
Sempra Energy(11)(12) | 84 |
| 13,858 | ||
SSE plc(3)(12) | 60 |
| 1,151 | ||
The AES Corporation(12) | 157 |
| 3,983 | ||
TransAlta Corporation(3)(12) | 540 |
| 5,066 | ||
Xcel Energy Inc.(12) | 173 |
| 12,845 | ||
| 104,623 | ||||
Other Energy Company(2) — 4.9% |
| ||||
Phillips 66 | 85 |
| 7,577 | ||
Shell plc — ADR(3)(16) | 158 |
| 8,345 | ||
TotalEnergies SE — ADR(3)(16) | 153 |
| 7,728 | ||
| 23,650 | ||||
Total Equity Investments (Cost — $522,551) |
| 638,845 |
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2022
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
Description | Interest | Maturity | Principal | Value | |||||||
Debt Investments — 1.3% |
|
|
| ||||||||
Midstream Company(2) — 1.2% |
|
|
| ||||||||
Energy Transfer LP(4) | 5.30 | % | 4/15/47 | $ | 250 | $ | 220 | ||||
EQM Midstream Partners, LP | 7.50 |
| 6/1/30 |
| 333 |
| 329 | ||||
EQM Midstream Partners, LP | 6.50 |
| 7/15/48 |
| 6,000 |
| 5,091 | ||||
Plains All American Pipeline, L.P.(4)(9) | 4.90 |
| 2/15/45 |
| 250 |
| 203 | ||||
|
|
| 5,843 | ||||||||
Natural Gas & LNG Infrastructure Company(2)(12) — 0.1% | |||||||||||
Kinder Morgan, Inc. | 5.55 |
| 6/1/45 |
| 250 |
| 244 | ||||
The Williams Companies, Inc. | 5.10 |
| 9/15/45 |
| 250 |
| 233 | ||||
|
|
| 477 | ||||||||
Total Debt Investments (Cost — $6,966) |
| 6,320 | |||||||||
Total Long-Term Investments — 134.7% (Cost — $529,517) |
| 645,165 |
Liabilities | Strike | Expiration | No. of | Notional | ||||||||||
Call Option Contracts Written(14) | ||||||||||||||
Midstream Company(2) | ||||||||||||||
Targa Resources Corp. | $ | 77.50 | 10/21/22 | 180 | $ | 1,228 |
| (17 | ) | |||||
Natural Gas & LNG Infrastructure Company(2) |
|
|
|
| ||||||||||
Cheniere Energy, Inc. |
| 200.00 | 10/21/22 | 120 |
| 1,922 |
| (8 | ) | |||||
Cheniere Energy, Inc. |
| 210.00 | 10/21/22 | 120 |
| 1,922 |
| (1 | ) | |||||
|
|
| (9 | ) | ||||||||||
Utility Company(2) |
|
|
|
| ||||||||||
Sempra Energy |
| 175.00 | 10/21/22 | 120 |
| 1,980 |
| (22 | ) | |||||
Sempra Energy |
| 180.00 | 10/21/22 | 120 |
| 1,980 |
| (10 | ) | |||||
|
|
| (32 | ) | ||||||||||
Total Call Option Contracts Written (Premiums Received — $107) |
| (58 | ) | |||||||||||
|
|
|
| |||||||||||
Debt |
| (130,091 | ) | |||||||||||
Mandatory Redeemable Preferred Stock at Liquidation Value |
| (41,491 | ) | |||||||||||
Other Assets in Excess of Other Liabilities |
| 5,542 |
| |||||||||||
Net Assets Applicable to Common Stockholders | $ | 479,067 |
|
____________
(1) Unless otherwise noted, equity investments are common units/common shares.
(2) Refer to the Glossary of Key Terms for definitions.
(3) Foreign security.
(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 18.3% of its total assets invested in qualified publicly-traded partnerships at August 31, 2022. It is the Fund’s intention to be treated as a RIC for tax purposes.
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2022
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
(5) The Fund’s ability to sell this security is subject to certain legal or contractual restrictions. As of August 31, 2022, the aggregate value of restricted securities held by the Fund was $33,109 (5.1% of total assets), which included $8,261 of Level 2 securities and $24,848 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) 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”), Plains All American Pipeline, L.P. (“PAA”), Plains GP Holdings, L.P. (“PAGP”) and Streamline Innovations Holdings, Inc. (“Streamline”). 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 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 August 31, 2022, the Fund’s PAGP-AAP investment is valued at PAGP’s closing price. See Note 7 — Restricted Securities.
(11) Security or a portion thereof is segregated as collateral on option contracts written.
(12) 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, the Fund includes Renewable Infrastructure Companies, Natural Gas & LNG Infrastructure Companies and certain Utility Companies as NextGen Companies.
(13) Streamline is a privately-held company. Streamline Series C Preferred Shares are convertible into common equity at any time at the Fund’s option and are senior to common equity and Series A and Series B preferred shares in terms of liquidation preference and priority of distributions. Streamline Series C Preferred Shares are entitled to receive a quarterly dividend beginning in March 31, 2025, at an annual rate of 12.0%, which rate shall increase 2.0% each year thereafter to a maximum rate of 18.0%. Streamline Series C Preferred Shares are redeemable by Streamline at any time after March 31, 2025, at a price sufficient for the Fund to achieve a 20.0% internal rate of return on its investment.
(14) Security is non-income producing.
(15) Algonquin Power & Utilities Corp. Convertible Preferred Units (“AQNU”) consist 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.
(16) ADR — American Depositary Receipt.
(17) 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, 2022.
See accompanying notes to financial statements.
KAYNE ANDERSON NEXTGEN ENERGY & INFRASTRUCTURE, INC.
SCHEDULE OF INVESTMENTS
AUGUST 31, 2022
(amounts in 000’s, except number of option contracts)
(UNAUDITED)
At August 31, 2022, the Fund’s geographic allocation was as follows:
Geographic Location | % of Long-Term | |
United States | 73.5% | |
Canada | 17.2% | |
Europe/U.K. | 9.3% |
Schedule of Outstanding Forward Currency Contracts
Settlement | Currency to be | Value (USD) | Currency to be | Value (USD) | Unrealized | |||||||||||||
11/30/2022 | 25,405 | EUR | $ | 25,678 | 27,424 | USD | $ | 27,424 | $ | 1,746 |
| |||||||
11/30/2022 | 28,715 | CAD |
| 21,861 | 22,514 | USD |
| 22,514 |
| 653 |
| |||||||
11/30/2022 | 2,265 | GBP |
| 2,635 | 2,865 | USD |
| 2,865 |
| 230 |
| |||||||
11/30/2022 | 22,419 | DKK |
| 3,048 | 3,265 | USD |
| 3,265 |
| 217 |
| |||||||
11/30/2022 | 1,571 | USD |
| 1,571 | 1,317 | GBP |
| 1,532 |
| (39 | ) | |||||||
11/30/2022 | 5,521 | USD |
| 5,521 | 5,401 | EUR |
| 5,460 |
| (61 | ) | |||||||
Total Forward Currency Contracts | $ | 60,314 | $ | 63,060 | $ | 2,746 |
|
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, 2022.
(2) Unrealized appreciation is a receivable and unrealized depreciation is a payable.
See accompanying notes to financial statements.