Operating expenses totaled $2.1 million, including $1.3 million of investment management fees; $0.4 million of interest expense and $0.4 million of other operating expenses. Interest expense included $0.1 million of amortization of debt issuance costs. Investment management fees were equal to an annual rate of 1.75% of average total assets.

The Company’s net investment loss totaled $0.3 million and included a deferred income tax benefit of $0.1 million.

The Company had net realized losses from investments of $3.2 million, after taking into account a deferred income tax benefit of $1.9 million. The majority of the losses are attributable to the sale of the Company’s interest in PostRock Energy Corporation.

The Company had net unrealized gains of $20.2 million. The net unrealized gain consisted of $32.0 million of unrealized gains from investments and a deferred income tax expense of $11.8 million. The majority of these gains are attributable to the Company’s investment in public MLPs and its investments in IRP and Direct Fuels.

The Company had an increase in net assets resulting from operations of $16.7 million. This increase is composed of a net investment loss of $0.3 million; net realized losses of $3.2 million; and net unrealized gains of $20.2 million, as noted above.

NET ASSET VALUE

As of February 28, 2011, the Company’s net asset value was $225.0 million or $21.88 per share. This represents an increase of $1.32 per share or 6.4% for the quarter. The fair value of the Company's investments exceeds the total cost basis of such investments. This difference, combined with capital and net operating losses, results in a net deferred tax liability of $20.3 million, or approximately $1.98 per share.

LIQUIDITY AND CAPITAL RESOURCES

As of February 28, 2011, the Company had approximately $4.0 million in short-term investments, which consisted of money market funds and repurchase agreements. The Company’s repurchase agreements are collateralized by U.S. Treasury securities, and the Company’s counterparty is J.P. Morgan Securities Inc.

If you liked this article you might like

Wednesday's Ex-Dividends To Watch: NBD, KED, NMZ

Wednesday's Ex-Dividends To Watch: KED, WGL, PDCO

Dividend Watch: 3 Stocks Going Ex-Dividend Tomorrow: KED, CHI, WGL

Ex-Dividends To Watch: 3 Stocks Going Ex-Dividend Tomorrow: GDO, KED, LDP

Ex-Div Reminder For Kayne Anderson Energy Development (KED)