Kayne Anderson Energy Total Return Fund Announces Distribution of $0.25 per Share for Q1 2016

HOUSTON--()--Kayne Anderson Energy Total Return Fund, Inc. (the “Fund”) (NYSE:KYE) announced today its quarterly distribution of $0.25 per share for the quarter ended February 29, 2016. The distribution will be payable on April 15, 2016 to common stockholders of record on April 6, 2016, with an ex-dividend date of April 4, 2016.

“The board has elected to reduce the quarterly distribution from $0.33 per share to $0.25 per share, in light of continued weak conditions in the energy markets,” said Kevin McCarthy, CEO of the Fund. “In the past quarter, our net distributable income (NDI) declined due the effects of further deleveraging during January and February (where lower rate leverage has been repaid by selling higher rate securities) as well as significantly lower call writing activities. During the current market downturn, we believe it is in the best interest of our shareholders to curtail our call writing activities and, as a result, we will set our distribution policy based on the assumption that no call options will be written. The board of directors intends to review this policy as market conditions improve.”

The Fund estimates that 100% of this distribution will be treated as a return of capital for tax purposes. This estimate is based on the Fund’s anticipated earnings and profits for fiscal 2016 and its accumulated earnings and profits as of February 29, 2016 (including gains and losses on sales of securities during the three months ended February 29, 2016). The Fund’s estimate does not include a projection of gains or losses on the sale of securities for the remainder of fiscal 2016. The final determination of the tax character of the distribution will be made in early 2017 when the Fund can determine its actual earnings and profits for the full year (including gains and losses on the sale of securities for the remainder of fiscal 2016) and may differ substantially from this preliminary information.

The Fund is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940 whose common stock is traded on the NYSE. The Fund’s investment objective is to obtain a high total return with an emphasis on current income by investing primarily in securities of companies engaged in the energy industry, principally including publicly-traded energy-related master limited partnerships and limited liability companies taxed as partnerships and their affiliates, energy-related U.S. and Canadian trusts and income trusts and other companies that derive at least 50% of their revenues from operating assets used in, or providing energy-related services for, the exploration, development, production, gathering, transportation, processing, storing, refining, distribution, mining or marketing of natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from the Fund’s historical experience and its present expectations or projections indicated in any forward-looking statement. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; energy industry risk; commodity pricing risk; leverage risk; valuation risk; non-diversification risk; interest rate risk; tax risk; and other risks discussed in the Fund’s filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund’s investment objectives will be attained.

Contacts

KA Fund Advisors, LLC
Monique Vo, 877-657-3863
http://www.kaynefunds.com/

Contacts

KA Fund Advisors, LLC
Monique Vo, 877-657-3863
http://www.kaynefunds.com/