Investment Merits Diversified Portfolio of Energy Investments
KYE targets a diversified investment portfolio across multiple energy sub-sectors - MLPs, royalty trusts, marine transportation and coal companies. This multi-sector strategy allows KYE to reduce the portfolio's volatility.
Positive Long-Term Outlook for Energy Industry
Global demand for energy continues to increase, largely driven by global population increases and continued growth from developing economies. KYE believes that demand growth will increase the need for additional energy infrastructure assets and create growth opportunities for KYE's portfolio investments.
Attractive Fund Structure
- KYE issues a Form 1099 (as opposed to K-1s issued by MLPs).
- Suitable for IRAs, foundations and tax-exempt accounts, because unlike direct holdings in MLPs, KYE does not generate unrelated business taxable income (UBTI).