The Cushing MLP Funds

Swank Capital | About

 

MLP Asset Management Specialists

Swank Capital, through its wholly-owned investment adviser subsidiary, Cushing MLP Asset Management, LP, brings highly experienced asset management to publicly traded energy infrastructure Master Limited Partnerships (MLPs). Founded in 2003, we were one of the pioneers of the hedge fund structure in MLP asset management.  Having leveraged our expertise and the knowledge we've acquired over the years, we firmly believe we are leaders of our specialty.

We believe that the MLP asset class offers solid investment options that have historically paid relatively high quarterly dividends. MLPs are integral to the nation's energy infrastructure yet represent minimal commodity exposure. Because MLPs operate as partnerships (as opposed to corporations), they pass tax benefits through to their investors. The majority of the distribution is treated as "return of capital", thereby providing potential tax advantages for investors. 

The firm’s investment strategies embrace both active and passive management. Investment vehicles include open-end mutual funds, closed-end funds, private funds and separately managed accounts.  Additionally, Swank Capital developed and sponsors three MLP benchmark indices - the Cushing® 30 MLP Index (MLPX), the Cushing® MLP High Income Index (MLPY),  and the Cushing® MLP Market Cap (CMCI) Index as well as a unique benchmark for the upstream energy sector, the Cushing Royalty Trust and Upstream Income Index (CRTY).  These indices use selection criteria designed by Swank Capital and that are calculated and maintained by S&P Custom Indices.

Swank People: Diversity

The diverse backgrounds of our team members have prepared them well for their specialized profession. They have worked as energy consultants, petroleum engineers, money managers, wealth advisors, and investment bankers. The majority hold advanced degrees. All have proven records of MLP asset management. Managing Partner Jerry Swank combines long experience in equity and fixed income markets with extensive personal knowledge of the energy sector.

Swank Research: Depth

Swank Capital's MLP asset management specialists seek to identify MLP companies that could achieve consistently superior growth rates. This ability is based on experience, knowledge, insight and precise analysis. We construct and maintain detailed financial models for all publicly traded MLPs in our energy sector universe. We assess performance and potential, focusing on key drivers of earnings growth.

Swank research personnel have been involved in structuring initial public offerings (IPOs) and merger & acquisition (M&A) transactions for MLP companies. They have helped MLP companies raise debt and equity capital. They have worked on engineering projects similar to those undertaken by MLPs. We believe their broad, relevant experience gives Swank Capital a competitive advantage in research and portfolio management.

 

Mutual fund investing involves risk. Principal loss is possible. The Fund is nondiversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. The fund will invest in Master Limited Partnerships (MLPs) which concentrate investments in the natural resource sector and are subject to the risks of energy prices and demand and the volatility of commodity investments. Damage to facilities and infrastructure of MLPs may significantly affect the value of an investment and may incur environmental costs and liabilities due to the nature of their business.  MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment.  Investments in smaller companies involve additional risks such as limited liquidity and greater volatility. Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods. MLPs are subject certain risks inherent in the structure of MLPs, including complex tax structure risks, the limited ability for election or removal of management, limited voting rights, potential dependence on parent companies or sponsors for revenues to satisfy obligations, and potential conflicts of interest between partners, members and affiliates..