DALLAS, Oct. 27 /PRNewswire/ -- Swank Capital is pleased to announce the launch of The Cushing® MLP Premier Fund, an open-end mutual fund which was made available to investors on October 19, 2010. The Fund (CSHAX, CSHCX, CSHZX) invests in midstream energy infrastructure Master Limited Partnerships (MLPs), which have historically provided tax-advantaged income to their investors. Swank Energy Income Advisors, LP, a subsidiary of Swank Capital, serves as the Fund's adviser.
The Cushing® MLP Premier Fund is one of the first open-end mutual funds to invest in the MLP sector. The Fund invests primarily in midstream MLPs that build and operate pipelines and storage facilities for the transportation of domestic energy supplies critical to the nation's economy. MLPs own the infrastructure that connects crude oil, natural gas, coal and other energy resources to refineries and other end users.
"MLPs, as represented by The Cushing® 30 MLP Index (MLPX), have had one of the best risk adjusted returns of any asset class over the last ten years ending September 30, 2010. They've provided investors a combination of high income and growth sustained by a continually increasing need for energy infrastructure in the U.S.," said Jerry V. Swank, portfolio manager of the Fund and founder of Swank Capital. "In addition, MLPs have a long history of growing distributions faster than inflation, which has made them useful as a potential inflation hedge."
"We are excited about the opportunities we are seeing in this sector," said Swank. "Finding new sources of energy is a national priority, and with that comes the need for new infrastructure. We believe our experience, insight and strong industry relationships enable us to anticipate market trends and adapt to changing economic conditions allowing us to take advantage of these opportunities for our shareholders."
Swank Capital believes that midstream energy MLPs are positioned to benefit from an increasing need for new pipelines and storage facilities as demand for new domestic sources of oil and natural gas continues to grow. In addition, Swank Capital believes that MLPs offer an attractive business model to meet that demand: fees are charged for transportation and storage, contracts are typically long term and demand is generally stable. Furthermore, many midstream MLPs have minimal exposure to actual commodity price risk with only moderate sensitivities to most economic shifts. "We created this fund to make MLP investing available to broad classes of investors," said Swank. "Increasingly, retiring baby boomers are looking for income and need investments that provide stable sources they can count on. We've designed our fund to meet that need by providing the potential for stability and tax-advantaged quarterly dividends."
One of the distinct aspects of MLPs is the tax-advantaged treatment of their distributions as largely a "return of capital." The mutual fund structure allows for investors to potentially receive return of capital distributions and provides a single 1099 instead of multiple K-1s. Those considering investing should consult the Fund's prospectus and their individual tax professional to learn more.
As of October 22, 2010, The Cushing MLP Premier Fund's top ten holdings with their respective percentages are: Magellan Midstream Partners LP 5.24%; Penn Virginia GP Holdings 5.16%; Linn Energy LLC 5.16%; Kinder Morgan Energy LP 5.12%; El Paso Pipeline Partners LP 5.05%; Enterprise Products Partners LP 5.02%; Energy Transfer Equity LP 5.01%; Regency Energy Partners LP 3.45%; Oxford Resource Partners LP 3.35%; Genesis Energy LP 3.34%.
Shares can be purchased through your investment advisor, broker, or direct from the Fund at www.cushingfunds.com.
ABOUT SWANK CAPITAL AND THE CUSHING® MLP FUNDS
Swank Capital and The Cushing® MLP Funds are headquartered in Dallas, Texas. With over $1.1 billion under management, Swank Capital and its subsidiaries serve as investment adviser to funds that invest primarily in securities of MLPs and other natural resource companies. Swank Capital also sponsors two MLP indices: The Cushing® 30 MLP Index (MLPX) and The Cushing® High Income Index (MLPY). Swank Capital continues to expand its platform of MLP-related investment products, leveraging extensive industry contacts and unparalleled research depth to drive both passive and actively managed investment opportunities for individual and institutional investors.
ABOUT THE CUSHING® INDICES
The Cushing® 30 MLP Index: The Cushing® 30 MLP Index tracks the performance of 30 publicly traded securities that hold midstream energy infrastructure assets in North America chosen according to a proprietary fundamental scoring model (SValuES©) developed by Swank Capital to rank potential MLPs for inclusion in the Index. The Cushing® 30 MLP Index is calculated by Standard & Poor's and reported on a real-time basis under the Bloomberg ticker MLPX.
Current MLPX Index Constituents: ARLP, APU, BWP, BPL, CPNO, DEP, EPB, EEP, ETE, ETP, EPE, EPD, GEL, NRGY, KMP, MMP, MWE, NRP, NS, NSH, OKS, PAA, PVG, RGNC, SEP, SXL, NGLS, TCLP, WES, WIZ. The Cushing® MLP High Income Index: The Cushing® MLP High Income Index provides a benchmark to achieve higher income from master limited partnerships. The Index is comprised of 30 companies and utilizes a three tiered weighting system, based upon current indicative yields, to determine the constituents. Indicative yield is defined as the last quarterly distribution annualized divided by the current stock price. The Cushing® High Income Index is calculated by Standard & Poor's and reported on a real-time basis under the Bloomberg ticker MLPY.
Current MLPY Index Constituents: BWP, BBEP, CLMT, CQP, CPNO, EVEP, EEP, ENP, ETE, ETP, EXLP, FGP, GEL, NRGY, KMP, LGCY, LINE, MWE, NRP, NMM, NKA, NS, PVG, PVR, PAA, RGNC, NGLS, TOO, VNR, WPZ.
The Cushing® 30 MLP Index and The Cushing® High Income Index are the exclusive property of Swank Capital, LLC, which has contracted with Standard & Poor's ("S&P") to maintain and calculate the Index. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC. "Calculated by S&P Custom Indices" and its related stylized mark(s) are service marks of Standard & Poor's Financial Services LLC and have been licensed by use by Swank Capital, LLC. S&P and its affiliates shall have no liability for any errors or omissions in calculating the Index.
The Fund is actively managed and will not seek to track the returns of, and will perform differently than an index, including those described herein. The index components of the indices described above are not intended to illustrate or reflect the actual or expected portfolio securities held by the Fund. Index returns should not be taken as an indication or guarantee of future performance of the Fund. It is not possible to invest directly in an index.
Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds' prospectus and/or summary prospectus, which may be obtained by calling 877-965-7386 or by visiting www.cushingfunds.com. Read the prospectus and/or summary prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund and may be more exposed to individual stock volatility than a diversified fund. The Fund will concentrate investments in the natural resource sector and will be more subject to the risks associated with that sector and industries within that sector. MLPs are subject to certain risks inherent in the structure of MLPs, including tax risks, the limited ability for election or removal of management, limited voting rights, and potential conflicts of interest between partners, members and affiliates. The Fund will be treated as a regular corporation, or "C" corporation, and will pay taxes at the fund level and will be subject to tax risks and risks associated with accounting for its deferred tax liability and/or asset balances. The investment strategy of investing primarily in MLPs and electing to be taxed as a regular corporation, or "C" corporation, rather than as a regulated investment company for U.S. federal income tax purposes, is a new and untested investment strategy for open-end mutual funds such as the Fund. This strategy involves complicated and in some cases unsettled accounting, tax and net asset and share valuation aspects that cause the Fund to differ significantly from most other open-end registered investment companies. This may result in unexpected and potentially significant accounting, tax and valuation consequences for the Fund and for its shareholders. Certain investments by the Fund may subject the Fund to liquidity risk.
The Cushing® MLP Premier Fund is an actively managed fund and therefore will perform differently than any index, including but not limited to, those mentioned herein.
Distributed by Quasar Distributors, LLC.
SOURCE Cushing MLP Funds