DALLAS, Jan. 23, 2015 /PRNewswire/ -- The Cushing® MLP Total Return Fund (NYSE: SRV) announced today that the Fund's Board of Trustees has declared a quarterly distribution for the fiscal quarter ending February 28, 2015 of $0.055 per common share. The Fund's distribution will be payable on March 16, 2015 to shareholders of record on March 11, 2015. The ex-date for the Fund's distribution is March 9, 2015. The Fund's current quarterly distribution represents an annualized distribution rate of 3.55%, based on market price and 4.55% based on net asset value, each as of January 21, 2015.
"After careful consideration, the Fund's adviser, Cushing Asset Management, LP ("Cushing") proposed, and the Board of Trustees approved, a reduction in the Fund's distribution to reflect, in part, reduced earnings from the Fund's investments in certain upstream master limited partnerships (MLPs) that were negatively impacted by the recent substantial downturn in crude oil and natural gas prices as well as the impact of leverage maintained by the Fund," said Jerry Swank, Chairman and Chief Executive Officer of the Fund and Managing Partner of Cushing.
In addition, the Fund announced that, effective immediately, the frequency of the Fund's distributions to shareholders will be changed from quarterly to monthly. The Fund's Board of Trustees has declared a distribution for the month of March 2015 of $0.018 per common share. The Fund's distribution will be payable on March 31, 2015 to shareholders of record on March 18, 2015. The ex-date for the Fund's distribution is March 16, 2015.
It is anticipated but not certain that approximately 100% of the Fund's distributions will be treated as a return of capital. The final determination of such amounts will be made and reported to shareholders in early 2016, after the end of the calendar year when the Fund determines its earnings and profits for the year. The final tax status of the distributions may differ substantially from this preliminary information.
The Fund's Board of Trustees has also approved a waiver of the Fund's management fees in the amount of 0.50% of the Fund's Managed Assets for the next twelve months, beginning as of February 1, 2015.
The Fund is a non-diversified, closed-end management investment company with an investment objective of seeking a high after-tax total return from a combination of capital appreciation and current income. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets, plus any borrowings for investment purposes, in MLP investments. The Fund is traded on the New York Stock Exchange under the symbol "SRV."
No assurance can be given that the Fund's investment objective will be achieved.
Cushing will host a live webcast on Tuesday, January 27, 2015 at 3:00 p.m. Central Time to discuss current energy industry market conditions and recent Fund performance. Those interested in viewing the webcast and participating in the question and answer session should register at: http://www.cushingwebcast012715.com. An online replay will be available following the webcast.
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 December 31, 2014, Cushing had approximately $4.6 billion of assets under management in closed-end funds, mutual funds, privately offered funds and separately managed accounts.
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