UPDATE: Bank of America Initiates Neutral on Kayne Anderson Energy Total Return Fund

Bank of America initiates coverage on Kayne Anderson Energy Total Return Fund

with a Neutral rating as it expects flat to modes dividend growth. Bank of America lists driving factors behind the assessment of the fund: "1) KYE's portfolio consists of ~15% debt securities, primarily noninvestment grade; and unlike cash distributions from MLP equities, the coupon payments from fixed-income investments do not have the potential to grow over time 2) ~15% of KYE's current investment income is derived from premiums received from call options written and we view option income as lower quality than dividend income derived from KYE's underlying portfolio holdings, 3) commodity price risk from its US and Canadian income trusts holdings, and 4) underwhelming marine transportation fundamentals (~16% of KYE's portfolio), although KYE is less exposed to some of the weaker areas in marine transportation." KYE closed at $27.42 per share on Tuesday.