UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549


FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY


Investment Company Act file number  811-22593


The Cushing Energy Income Fund
 (Exact name of registrant as specified in charter)


8117 Preston Road Suite 440
Dallas, TX 75225
 (Address of principal executive offices) (Zip code)


Jerry V. Swank
8117 Preston Road Suite 440
Dallas, TX 75225
 (Name and address of agent for service)


214-692-6334
Registrant’s telephone number, including area code



Date of fiscal year end: November 30


Date of reporting period:  August 31, 2018


Item 1. Schedule of Investments.

The Cushing Energy Income Fund
SCHEDULE OF INVESTMENTS (Unaudited)
           
   
August 31, 2018
           
       
Fair
Common Stock - 69.5%
Shares
 
  
Value
Exploration & Production - 59.0%
        
Canada - 8.0%
        
Suncor Energy, Inc.(1)
34,397
   $
            1,416,468
Vermilion Energy, Inc.
24,500
    
776,650
France - 2.4%
        
Total S.A.(1)
10,300
    
646,222
Netherlands - 4.8%
        
Royal Dutch Shell Plc(1)
19,981
    
1,303,361
United Kingdom - 4.8%
        
BP Plc(1)
30,307
    
1,299,564
United States - 39.0%
        
Anadarko Petroleum Corporation
6,750
    
434,700
Antero Resources Corporation(1)(2)
17,000
    
314,670
Cabot Oil & Gas Corporation
61,608
    
1,468,119
Chevron Corporation(1)
11,110
    
1,316,091
EOG Resources, Inc.(1)
12,280
    
1,451,864
EQT Corporation(1)
11,100
    
566,322
Extraction Oil & Gas, Inc.(2)
47,321
    
546,557
Noble Energy, Inc.
28,578
    
849,338
Occidental Petroleum Corporation
10,901
    
870,663
Parsley Energy, Inc.(2)
48,302
    
1,341,346
Pioneer Natural Resource Company(1)
6,558
    
1,145,683
Whiting Petroleum Corporation(2)
6,790
    
345,679
         
16,093,297
General Partners - 10.5%
        
United States - 10.5%
        
ONEOK, Inc.(1)
20,400
    
1,344,564
Targa Resources Corporation(1)
27,926
    
1,537,885
         
2,882,449
Total Common Stocks (Cost $16,425,329)
     $
 18,975,746
         
MLP Investments and Related Companies - 23.2%
        
Large Cap Diversified - 4.7%
        
United States - 4.7%
        
Energy Transfer Partners, L.P.(1)
56,832
   $
 1,281,562
         
Natural Gas Gatherers & Processors - 6.5%
        
United States - 6.5%
        
DCP Midstream Partners, L.P.(1)
27,821
    
1,146,503
EnLink Midstream Partners, L.P.(1)
35,000
    
623,000
         
1,769,503
Shipping - 5.9%
        
Republic of the Marshall Islands - 5.9%
        
GasLog Partners, L.P.
44,653
    
1,085,068
Golar LNG Partners, L.P.
38,624
    
522,196
         
1,607,264
 
Upstream - 6.1%
        
United States - 6.1%
        
Mid-Con Energy Partners, L.P.(3)
116,279
    
176,744
Viper Energy Partners, L.P.
38,785
    
1,509,125
         
1,685,869
Total MLP Investments and Related Companies (Cost $5,267,334)
     $
6,344,198
         
Preferred Stock - 1.6%
        
Large Cap Diversified - 1.6%
        
United States - 1.6%
        
Kinder Morgan, Inc.
13,000
   $
  434,330
Total Preferred Stock (Cost $609,722)
     $
   434,330
         
Fixed Income - 11.0%
        
Exploration & Production - 11.0%
        
United States - 11.0%
        
Bill Barrett Corporation, 7.000%, due 10/15/2022
500,000
   $
  502,500
Continental Resources, Inc., 3.800%, due 06/01/2024
500,000
    
493,039
Murphy Oil Corporation, 5.875%, due 12/01/2042
600,000
    
541,977
QEP Resources, Inc., 5.625%, due 03/01/2026
1,000,000
    
960,000
Range Resources Corporation, 5.000%, due 03/15/2023
500,000
    
491,650
Total Fixed Income (Cost $2,901,777)
     $
  2,989,166
         
Short-Term Investments - Investment Companies - 3.3%
        
United States - 3.3%
        
Fidelity Government Portfolio Fund - Institutional Class, 1.82%(4)
221,937
   $
   221,937
First American Prime Obligations Fund - Class Z, 1.80%(4)
221,937
    
221,937
Invesco Short-Term Government & Agency Portfolio - Institutional Class, 1.85%(4)
221,938
    
221,938
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class, 1.84%(4)
221,937
    
221,937
Total Short-Term Investments - Investment Companies (Cost $887,749)
     $
  887,749
         
Total Investments - 108.6% (Cost $26,091,911)
     $
 29,631,189
Liabilities in Excess of Other Assets - (8.6%)
      
(2,336,161)
Net Assets Applicable to Common Stockholders - 100.0%
     $
 27,295,028
 
           
(1) 
All or a portion of these securities are held as collateral pursuant to the loan agreement.
      
(2) 
No distribution or dividend was made during the period ended August 31, 2018.  As such, it is classified as a non-income producing security as of August 31, 2018.
      
(3) 
Restricted security.  Fair valued by the Adviser using the Fund’s valuation prodecures and subsequently ratified by the Board of Trustees.  The position was acquired on August 11, 2016 at $250,000 and the fair value accounted for 0.65% of the Fund’s net assets at August 31, 2018.
(4) 
Rate reported is the current yield as of August 31, 2018.
      


Fair Value Measurements
Various inputs that are used in determining the fair value of the Fund’s investments are summarized in the three broad levels listed below:

·
Level 1 — quoted prices in active markets for identical securities
·
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
·
Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

These inputs are summarized in the three broad levels listed below.
         
Fair Value Measurements at Reporting Date Using
        
         
Quoted Prices in
          
Significant
  
         
Active Markets for
    
Significant Other
    
Unobservable
  
   
Fair Value at
    
Identical Assets
    
Observable Inputs
    
Inputs
  
Description
  
August 31, 2018
    
(Level 1)
    
(Level 2)
    
(Level 3)
  
Assets
Equity Securities
                        
Common Stock (a)
  
$
18,975,746
    
$
18,975,746
    
$
-
    
$
-
  
Master Limited
Partnerships and Related
Companies (a)
    
6,344,198
      
6,167,454
      
176,744
      
-
  
Preferred  Stock (a)
    
434,300
      
434,330
      
-
          
Total Equity Securities
    
25,754,274
      
25,577,530
      
176,744
      
-
  
Notes
        Senior Notes(a)
    
2,989,166
      
-
      
2,989,166
      
-
  
Total Notes
    
2,989,166
      
-
      
2,989,166
      
-
  
Other
      Short Term
     Investments (a)
    
887,749
      
887,749
      
-
      
-
  
Total Other
    
887,749
      
887,749
      
-
      
-
  
Total Assets
  
$
29,631,189
    
$
26,465,279
    
$
3,165,910
    
$
-
  

(a)
All other industry classifications are identified in the Schedule of Investments.  The Fund did not hold Level 3 investments at any time during the period ended August 31, 2018.

Transfers into and out of each level are measured at fair value at the end of the period. There were no transfers between any levels during the period ended August 31, 2018.
 

Item 2. Controls and Procedures.
(a)
The Fund’s President and Treasurer have concluded that the Fund’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d‑15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).

(b)
There were no changes in the Fund’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Fund’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Fund’s internal control over financial reporting.

Item 3. Exhibits.
Separate certifications for each principal executive officer and principal financial officer of the Fund as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).  Filed herewith.

 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Fund has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)       The Cushing Energy Income Fund                                               

 
By (Signature and Title)        /s/ Jerry V. Swank                                                   
Jerry V. Swank, President & Chief Executive Officer
 
Date        10/25/2018             
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Fund and in the capacities and on the dates indicated.
 

By (Signature and Title)      /s/ Jerry V. Swank                                                    
  Jerry V. Swank, President & Chief Executive Officer

Date        10/25/2018              

 
By (Signature and Title)       /s/ John H. Alban                                                    
   John H. Alban, Treasurer & Chief Financial Officer
 
Date        10/25/2018