DALLAS, Dec. 20, 2017 /PRNewswire/ -- The Board of Trustees of the Cushing® MLP Total Return Fund (the "Fund") has approved certain changes in the Fund's non-fundamental investment policies and a change of the Fund's name to the Cushing® MLP & Infrastructure Total Return Fund, each of which will become effective as of February 20, 2018.
The Fund will continue to pursue its investment objective to seek a high after-tax total return from a combination of capital appreciation and current income. No assurance can be given that the Fund's investment objective will be achieved.
The Fund currently pursues its investment objective by investing in master limited partnership ("MLP") investments. Under the modified investment policies, the Fund will continue to invest in MLPs, but will also have the ability to other midstream energy companies as well, regardless of whether the companies are structured as MLPs.
Effective as of February 20, 2018:
- Under normal market conditions, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in a portfolio of infrastructure master limited partnerships ("MLPs") and MLP-related investments (together, "MLP Investments") (the "80% policy"). For purposes of the Fund's 80% policy, MLP Investments are investments that offer economic exposure to public and private MLPs in the form of common or subordinated units issued by MLPs, securities of entities holding primarily general partner or managing member interests in MLPs, debt securities of MLPs, and securities that are derivatives of interests in MLPs, which are I-Shares and other derivative securities that have economic characteristics of MLP securities, and businesses that operate and have the economic characteristics of MLP Investments but are organized and taxed as "C" corporations or as limited liability companies ("Other Natural Resources Companies"). The Fund considers an MLP Investment to be an infrastructure MLP Investment if at least 50% of its assets, income, sales or profits are committed to or derived from the development, construction, management, ownership or operation of assets that are used for natural resources-based activities.
- The Fund will invest no more than 25% of its total assets in securities of energy master limited partnerships ("MLPs") that qualify as publicly traded partnerships under the Internal Revenue Code.
As a result of the changes to the Fund's investment policies, the Fund's name will change to the Cushing® MLP & Infrastructure Total Return Fund.
The Fund is treated as a regular corporation, or a "C" corporation, for U.S. federal income tax purposes and, as a result, unlike most investment companies, is subject to corporate income tax to the extent the Fund recognizes taxable income. As a result of the modifications to the Fund's investment policies and strategy described above, the Fund intends to manage its portfolio in a manner intended to allow the Fund to qualify and elect to be treated as a regulated investment company ("RIC") for U.S. federal income tax purposes beginning in the Fund's fiscal year ending November 30, 2018. In order to qualify as a RIC, the Fund must, among other things, satisfy income, asset diversification and distribution requirements. There can be no assurance that the Fund will qualify as a RIC. Until the Fund elects and qualifies to be treated as a RIC, the Fund will continue to be treated a C Corporation for U.S. federal income tax purposes. If the Fund qualifies and elects to be treated as a RIC, the Fund would be subject to tax on any net unrealized appreciation as of the last day the Fund was taxable as a C corporation. Also, the Fund would be required to distribute any earnings and profits accumulated as of the last day the Fund was taxable as a C corporation. Shareholders are urged to consult their own tax advisors to determine the tax consequences to them of investing in the Fund.
The Fund is a non-diversified closed-end management investment company. The Fund is traded on the New York Stock Exchange under the symbol "SRV."
The Fund is managed by Cushing® Asset Management, LP. No assurance can be given that the Fund's investment objective will be achieved.
ABOUT CUSHING® ASSET MANAGEMENT, LP
Cushing, a subsidiary of Swank Capital, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of MLPs and other natural resource companies. As of September 29, 2017, Cushing had approximately $3.6 billion of assets under management in closed-end funds, mutual funds, privately offered funds and separately managed accounts.
Cushing® Asset Management, LP
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the Funds and Cushing believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the company's reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the Funds and Cushing do not assume a duty to update this forward-looking statement.
SOURCE Cushing® Asset Management, LP