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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
       
Investment Company Act file number
  811-21593
 
   
KAYNE ANDERSON MLP INVESTMENT COMPANY
 
(Exact name of registrant as specified in charter)
     
1800 Avenue of the Stars, Second Floor, Los Angeles, California   90067
 
(Address of principal executive offices)   (Zip code)
David Shladovsky, Esq.
 
Kayne Anderson Capital Advisors, L.P., 1800 Avenue of the Stars, Second Floor, Los Angeles, California 90067
 
(Name and address of agent for service)
       
Registrant’s telephone number, including area code:
  (310) 556-2721
 
   
       
Date of fiscal year end:
  November 30th
 
   
 
Date of reporting period:
  June 1, 2005 through August 31, 2005
 
   
 
 

 

 

Item 1: Schedule of Investments
KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS
AUGUST 31, 2005
(shares/units and $ amounts in 000’s)
(unaudited)
                 
    No. of        
Description   Shares/Units     Value  
Long-Term Investments — 141.7%
                
Equity Investments (a) — 141.5%
                
Pipeline MLP (b) — 113.2 %
                
Atlas Pipeline Partners, L.P.
     155     $ 7,275  
Buckeye Partners, L.P.
     146       6,884  
Copano Energy, L.L.C.
     84       3,329  
Copano Energy, L.L.C. — Unregistered (c)
     471       18,259  
Copano Energy, L.L.C. — Class B Units, Unregistered (c)
     1,656       62,912  
Crosstex Energy, L.P.
     238       10,035  
Crosstex Energy, L.P. — Senior Subordinated Units, Unregistered (c)
     1,047       40,559  
Enbridge Energy Management, L.L.C. (d)
     413       22,322  
Enbridge Energy Partners, L.P.
     1,943       104,816  
Energy Transfer Partners, L.P.
     4,556       168,532  
Enterprise Products Partners L.P.
     6,447       156,525  
Genesis Energy, L.P.
     134       1,425  
Hiland Partners, LP
     35       1,348  
Holly Energy Partners, L.P.
     109       4,581  
Holly Energy Partners, L.P. — Unregistered (c)
     32       1,288  
Kinder Morgan Management, LLC (d)
     2,630       125,139  
Magellan Midstream Partners, L.P.
     486       16,025  
Magellan Midstream Partners, L.P. — Subordinated Units (c)
     3,478       110,378  
MarkWest Energy Partners, L.P.
     193       9,636  
Northern Border Partners, L.P.
     633       30,265  
Pacific Energy Partners, L.P.
     388       12,704  
Plains All American Pipeline, L.P.
     921       43,140  
Sunoco Logistics Partners L.P.
     24       940  
TC PipeLines, LP
     226       7,804  
TEPPCO Partners, L.P.
     455       18,806  
TransMontaigne Partners L.P.
     56       1,448  
Valero L.P.
     633       36,721  
 
              
 
             1,023,096  
 
              
Propane MLP — 14.1%
                
Ferrellgas Partners, L.P.
     1,776       38,939  
Inergy, L.P.
     2,983       88,797  
 
              
 
             127,736  
 
              
Shipping MLP — 2.6%
                
K-Sea Transportation Partners L.P. (e)
     119       4,758  
Martin Midstream Partners L.P.
     113       3,430  
Teekay LNG Partners L.P.
     167       5,322  
U.S. Shipping Partners L.P.
     374       9,640  
 
              
 
             23,150  
 
              
Coal MLP — 0.8%
                
Penn Virginia Resource Partners, L.P.
     151       7,615  
 
              
 
MLP Affiliate — 4.0%
                
Atlas America, Inc. (f)
     114       5,274  
Crosstex Energy, Inc.
     326       20,785  
MarkWest Hydrocarbon, Inc. (e)
     257       6,412  
TransMontaigne Inc.
     360       3,407  
 
              
 
             35,878  
 
              
Other — 6.8%
                
Arlington Tankers Ltd.
     144       3,237  
Clearwater Natural Resources, LP — Unregistered (c)
     2,650       53,000  
Diana Shipping Inc.
     256       3,581  
DryShips Inc.
     76       1,221  
 
              
 
             61,039  
 
              
Total Equity Investments (Cost $1,064,866)
             1,278,514  
 
              

 

KAYNE ANDERSON MLP INVESTMENT COMPANY
SCHEDULE OF INVESTMENTS
AUGUST 31, 2005
(shares/units and $ amounts in 000’s)
(unaudited)
                                 
                Principal        
    Interest     Maturity     Amount        
Description   Rate     Date     (in 000’s)     Value  
Fixed Income Investment — 0.2%
                                
MLP Affiliate — 0.2%
                                
TransMontaigne Inc. (Cost $2,024)
     9.125 %     06/01/10     $ 2,000     $ 2,100  
 
                              
 
Total Long-Term Investments (Cost $1,066,890)
                             1,280,614  
 
                              
 
Short-Term Investment — 4.4%
                                
Repurchase Agreement — 4.4%
                                
Bear, Stearns & Co. Inc. (Agreement dated 8/31/05 to be repurchased at $39,353), collateralized by $40,493 in U.S. Government and Agency Securities (Cost $39,349)
     3.530       09/01/05       39,349       39,349  
 
                              
 
Total Investments (Cost $1,106,239)
                             1,319,963  
 
                              
                                 
                    No. of          
                    Shares/Units          
Liabilities
                                
Securities Sold Short
                                
Equity Investment
                                
Coal MLP
                                
Alliance Resource Partners, L.P.
                     15       (1,358 )
 
                              
                                 
                    Principal          
                    Amount          
                    (in 000’s)          
Fixed Income Investment
                                
Pipeline MLP
                                
Enterprise Products Partners L.P.
     4.950       06/01/10     $ 5,350       (5,359 )
 
                              
Total Securities Sold Short (Cash proceeds received $6,415)
                             (6,717 )
 
                              
Auction Rate Senior Notes
                             (260,000 )
Unrealized Depreciation on Interest Rate Swap Contracts
                             (2,613 )
Deferred Taxes
                             (81,114 )
Current Taxes
                             (2,250 )
Other Liabilities
                             (3,193 )
 
                              
Total Liabilities
                             (355,887 )
Other Assets
                             14,311  
 
                              
Total Liabilities in Excess of Other Assets
                             (341,576 )
 
                              
Preferred Stock at Redemption Value
                             (75,000 )
 
                              
Net Assets Applicable to Common Stockholders
                           $ 903,387  
 
                              
 
(a)   Unless otherwise noted, equity investments are common units/common shares.
(b)   Includes Limited Liability Companies or L.L.C.s.
(c)   Fair valued security. These securities are restricted from public sale. The Company negotiates certain aspects of the method and timing of the disposition of these investments, including registration rights and related costs.
(d)   Distributions made are paid in-kind.
(e)   Security or a portion thereof is segregated as collateral on interest rate swap contracts and securities sold short.
(f)   Security is non-income producing.
Certain of the Company’s investments are restricted as to resale and are valued as determined in accordance with procedures established by the Board of Directors. The table below shows the number of units held, the acquisition dates, aggregate costs, fair value as of August 31, 2005, value per unit of such securities, percent of net assets and total assets which the securities comprise. Unless otherwise noted, the security is a common unit.

 

 

                                                         
    Number of                                   Percent     Percent  
    Units     Acquisition     Cost     Fair Value     Value Per     of Net     of Total  
Security   (in 000’s)     Date     (in 000’s)     (in 000’s)     Unit     Assets     Assets  
Clearwater Natural Resources, LP — Unregistered
     2,650       08/01/05     $ 53,000     $ 53,000     $ 20.00       5.9 %     4.0 %
Copano Energy, L.L.C. — Unregistered
     471       08/01/05       13,543       18,259       38.80       2.0       1.4  
Copano Energy, L.L.C. — Class B Units, Unregistered
     1,656       08/01/05       46,458       62,912       37.98       7.0       4.7  
Crosstex Energy, L.P. — Senior Subordinated Units, Unregistered
     1,047       06/24/05       35,011       40,559       38.75       4.5       3.0  
Holly Energy Partners, L.P. — Unregistered
     32       07/08/05       1,316       1,288       40.12       0.1       0.1  
Magellan Midstream Partners, L.P. — Subordinated Units
     3,478       04/13/05       100,021       110,378       31.73       12.2       8.3  
 
                                                
 
                   $ 249,349     $ 286,396               31.7 %     21.5 %
 
                                                
At August 31, 2005, the cost basis of investments for Federal income tax purposes was $1,106,239. At August 31, 2005, gross unrealized appreciation and depreciation of investments for Federal income tax purposes were as follows:
           
Gross unrealized appreciation (including securities sold short)
   $ 214,811  
Gross unrealized depreciation (including securities sold short)
     (1,388 )
 
      
Net unrealized appreciation
   $ 213,423  
 
      
Securities valuation policies and other investment related disclosures are hereby incorporated by reference to the Company’s semi-annual report previously filed with the Securities and Exchange Commission on Form N-CSR on August 9, 2005, with a file number 811-21593.
Other information regarding the Company is available in the Company’s most recent semi-annual report. This information is also available on the Company’s website at http://www.kaynemlp.com; or on the website of the Securities and Exchange Commission, http://www.sec.gov.
Item 2: Controls and Procedures
     (a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)), were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities and Exchange Act of 1934.
     (b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3: Exhibits
1.   The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report.

 

 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  KAYNE ANDERSON MLP INVESTMENT COMPANY
 		  
  /s/ Kevin S. McCarthy    
  Name:   Kevin S. McCarthy   
  Title:   Chief Executive Officer   
  Date:   October 31, 2005    
 
     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
     
  /s/ Kevin S. McCarthy    
  Name:   Kevin S. McCarthy   
  Title:   Chief Executive Officer    
  Date:   October 31, 2005    
 
     
  /s/ Ralph Collins Walter    
  Name:   Ralph Collins Walter   
  Title:   Chief Financial Officer    
  Date:   October 31, 2005