DALLAS, June 1, 2016 /PRNewswire/ -- The
Cushing® Energy Income Fund (formerly known as the
Cushing® Royalty &
Income Fund) (NYSE: SRF) announced its monthly distribution and
changes to non-fundamental investment policies.
Monthly Distribution
The Fund declared a distribution for June
2016 of $0.057 per common
share. The Fund's distribution will be payable on June 30, 2016 to shareholders of record on
June 16, 2016. The ex-date for
the Fund's distribution is June 14,
2016.
It is anticipated but not certain that approximately 100% of the
Fund's distribution will be treated as a return of capital. The
final determination of such amounts will be made and reported to
shareholders in early 2017, 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.
Changes to Non-Fundamental Investment Policies
The Fund's Board of Trustees approved modifications to certain
non-fundamental investment policies, which will become effective as
of October 1, 2016.
The Fund will continue to pursue its investment objective to
seek a high total return with an emphasis on current income.
The Fund currently pursues its investment objective by investing in
certain companies engaged in the upstream energy sector.
Under the modified investment policies, the Fund will focus on a
wider array of exploration and production ("E&P") companies,
including large cap E&P companies and integrated energy
companies with significant E&P activities.
Effective as of October 1,
2016:
- Under normal market conditions, the Fund will invest at least
80% of its assets net assets, plus any borrowings for investment
purposes, in public and private securities of energy companies
involved in exploring, developing, producing, transporting,
gathering and processing, storing, refining, distributing, mining
or marketing natural gas, natural gas liquids (including propane),
crude oil, refined products or coal.
- 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.
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, 2017. 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.
Additional Information
The Fund is a non-diversified, closed-end management investment
company. The Fund is traded on the New York Stock Exchange
under the symbol "SRF."
The Fund is managed by Cushing® Asset Management, LP
("Cushing"). 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 March 31, 2016, Cushing had approximately $2.9 billion of assets under management in
closed-end funds, mutual funds, privately offered funds and
separately managed accounts.
IMPORTANT INFORMATION
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.
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SOURCE Cushing Asset Management, LP