The Cushing Energy Income Fund
|
|||||||||
SCHEDULE OF INVESTMENTS (Unaudited)
|
|||||||||
February 28, 2019
|
|||||||||
Fair
|
|||||||||
Common Stock - 69.8%
|
Shares
|
Value
|
|||||||
Exploration & Production - 49.9%
|
|||||||||
Canada - 7.4%
|
|||||||||
Suncor Energy, Inc.(1)
|
17,397
|
$ |
599,501
|
||||||
Vermilion Energy, Inc.(1)
|
41,000
|
1,048,780
|
|||||||
France - 2.7%
|
|||||||||
Total S.A.(1)
|
10,300
|
586,173
|
|||||||
Netherlands - 5.6%
|
|||||||||
Royal Dutch Shell Plc(1)
|
19,981
|
1,243,018
|
|||||||
United Kingdom - 5.8%
|
|||||||||
BP Plc(1)
|
30,307
|
1,292,594
|
|||||||
United States - 28.4%
|
|||||||||
Anadarko Petroleum Corporation(1)
|
6,750
|
293,625
|
|||||||
Cabot Oil & Gas Corporation(1)
|
37,870
|
932,359
|
|||||||
Chevron Corporation(1)
|
11,110
|
1,328,534
|
|||||||
Cimarex Energy Company(1)
|
6,500
|
467,415
|
|||||||
Concho Resources, Inc.(1)(2)
|
4,500
|
495,000
|
|||||||
Occidental Petroleum Corporation(1)
|
10,901
|
721,101
|
|||||||
Parsley Energy, Inc.(1)(2)
|
48,302
|
876,198
|
|||||||
Pioneer Natural Resource Company(1)
|
3,900
|
549,705
|
|||||||
Rosehill Resources, Inc.(1)(2)
|
146,749
|
444,649
|
|||||||
Whiting Petroleum Corporation(1)(2)
|
6,790
|
165,472
|
|||||||
11,044,124
|
|||||||||
Large Cap Diversified C Corps - 5.9%
|
|||||||||
United States - 5.9%
|
|||||||||
ONEOK, Inc.(1)
|
20,400
|
1,310,904
|
|||||||
Natural Gas Gatherers & Processors - 5.1%
|
|||||||||
United States - 5.1%
|
|||||||||
Targa Resources Corporation(1)
|
27,926
|
1,123,742
|
|||||||
Oil & Gas Exploration & Production - 4.6%
|
|||||||||
United States - 4.6%
|
|||||||||
Conoco Phillips(1)
|
6,900
|
468,165
|
|||||||
Diamondback Energy Inc.(1)
|
5,403
|
556,131
|
|||||||
1,024,296
|
|||||||||
Oil & Gas Refining & Marketing - 2.0%
|
|||||||||
United States - 2.0%
|
|||||||||
WPX Energy Inc.(2)
|
36,000
|
444,240
|
|||||||
Refiners - 2.3%
|
|||||||||
United States - 2.3%
|
|||||||||
Marathon Petroleum Corporation
|
30,000
|
498,000
|
|||||||
Total Common Stock (Cost $15,491,002)
|
$ |
15,445,306
|
|||||||
MLP Investments and Related Companies - 25.1%
|
Units
|
||||||||
Exploration & Production - 0.2%
|
|||||||||
United States - 0.2%
|
|||||||||
Kimbell Partners L.P.(1)
|
2,238
|
$ |
39,165
|
||||||
Large Cap MLP - 4.8%
|
|||||||||
United States - 4.8%
|
|||||||||
Energy Transfer, L.P.(1)
|
72,745
|
1,075,898
|
|||||||
Marine - 2.2%
|
|||||||||
Republic of the Marshall Islands - 2.2%
|
|||||||||
Golar LNG Partners, L.P.(1)
|
38,624
|
498,250
|
|||||||
Natural Gas Gatherers & Processors - 9.4%
|
|||||||||
United States - 9.4%
|
|||||||||
DCP Midstream Partners, L.P.(1)
|
27,821
|
896,671
|
|||||||
EnLink Midstream Partners, L.P.
|
40,250
|
448,787
|
|||||||
Noble Midstream Partners, L.P.
|
21,871
|
736,178
|
|||||||
2,081,636
|
|||||||||
Coal - 2.6%
|
|||||||||
Canada - 2.6%
|
|||||||||
Natural Resource Partners L.P.(1)
|
20,000
|
568,000
|
|||||||
Upstream MLPs - 5.9%
|
|||||||||
United States - 5.9%
|
|||||||||
Viper Energy Partners, L.P.(1)
|
39,685
|
1,306,033
|
|||||||
Total MLP Investments and Related Companies (Cost $5,407,606)
|
$ |
5,568,982
|
|||||||
Preferred Stock - 0.5%
|
Shares
|
||||||||
Upstream MLPs - 0.5%
|
|||||||||
United States - 0.5%
|
|||||||||
Mid-Con Energy Partners, L.P.
|
116,279
|
$ |
113,942
|
||||||
Total Preferred Stock (Cost $250,000)
|
$ |
113,942
|
|||||||
Fixed Income - 15.4%
|
Principal
Amount
|
||||||||
Exploration & Production - 15.4%
|
|||||||||
United States - 15.4%
|
|||||||||
Continental Resources, Inc., 3.800%, due 06/01/2024(1)
|
500,000
|
494,408
|
|||||||
Highpoint Operation Corporation, 7.000%, due 10/15/2022
|
500,000
|
481,250
|
|||||||
Murphy Oil Corporation, 5.875%, due 12/01/2042(1)
|
600,000
|
530,187
|
|||||||
QEP Resources, Inc., 5.625%, due 03/01/2026(1)
|
1,500,000
|
1,413,750
|
|||||||
Range Resources Corporation, 5.000%, due 03/15/2023(1)
|
500,000
|
485,000
|
|||||||
Total Fixed Income (Cost $3,389,277)
|
$ |
3,404,595
|
|||||||
Short-Term Investments - Investment Companies - 4.4%
|
Shares
|
||||||||
United States - 4.4%
|
|||||||||
Fidelity Government Portfolio Fund - Institutional Class, 2.29%(1)(3)
|
242,882
|
$ |
242,882
|
||||||
First American Prime Obligations Fund - Class Z, 2.29%(1)(3)
|
242,882
|
242,882
|
|||||||
Invesco Short-Term Government & Agency Portfolio - Institutional Class, 2.33%(1)(3)
|
242,883
|
242,883
|
|||||||
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class, 2.31%(1)(3)
|
242,883
|
242,883
|
|||||||
Total Short-Term Investments - Investment Companies (Cost $971,530)
|
$ |
971,530
|
|||||||
Total Investments - 115.2% (Cost $25,509,415)
|
$ |
25,504,355
|
|||||||
Written Options(4) -
(0.0)% (Premiums received $8,690)
|
(800)
|
||||||||
Liabilities in Excess of Other Assets - (15.2)%
|
(3,369,408)
|
||||||||
Net Assets Applicable to Common Stockholders - 100.0%
|
$ |
22,134,147
|
(1)
|
All or a portion of these securities are held as collateral pursuant to the loan agreements.
|
|||||||
(2)
|
No distribution or dividend was made during the fiscal year ended February 28, 2019. As such, it is classified as a
non-income producing security as of February 28, 2019.
|
|||||||
(3)
|
Rate reported is the current yield as of February 28, 2019.
|
|||||||
(4)
|
Description
|
Exercise
Price |
Expiration
Date |
Currency
|
Number of
Contracts |
Premiums
Received |
Fair
Value |
Unrealized
Appreciation (Depreciation) |
Viper Energy Partners, L.P., Call Option
|
$37.00
|
3/19/2019
|
USD
|
160
|
$8,690
|
$800
|
$7,890
|
|
$8,690
|
$800
|
$7,890
|
Cost of investments
|
$
|
25,500,725
|
||
Gross unrealized appreciation
|
2,315,200
|
|||
Gross unrealized depreciation
|
(2,312,370
|
)
|
||
Net unrealized appreciation
|
$
|
2,830
|
·
|
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)
|
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
|
February 28, 2019
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets
Equity Securities
|
||||||||||||||||
Common Stock (a)
|
$
|
15,445,306
|
$
|
15,445,306
|
$
|
-
|
$
|
-
|
||||||||
Master Limited
Partnerships and
Related
Companies (a)
|
5,568,982
|
5,568,982
|
-
|
-
|
||||||||||||
Preferred Stock
(a)
|
113,942
|
113,942
|
-
|
|||||||||||||
Total Equity Securities
|
21,128,230
|
21,128,230
|
-
|
-
|
||||||||||||
Notes
Senior Notes(a)
|
3,404,595
|
-
|
3,404,595
|
|||||||||||||
Total Notes
|
3,404,595
|
-
|
3,404,595
|
|||||||||||||
Other
Short Term
Investments (a)
|
971,530
|
971,530
|
-
|
-
|
||||||||||||
Total Other
|
971,530
|
971,530
|
-
|
-
|
||||||||||||
Total Assets
|
$
|
25,504,355
|
$
|
22,099,760
|
$
|
3,404,595
|
$
|
-
|
||||||||
Liabilities
Written Options
|
$
|
800
|
$
|
800
|
$
|
-
|
$
|
-
|
||||||||
Total Liabilities
|
$
|
800
|
$
|
800
|
$
|
-
|
$
|
-
|
(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 February 28, 2019.
|
The effect of derivative instruments on the Statement of Operations for the period ended February 28, 2019:
|
|||||
Amount of Realized Gain (Loss) on Derivatives Recognized in Income
|
|||||
Derivatives not accounted for as hedging instruments under ASC 815
|
Purchased
Options
|
Written
Options
|
Total
|
||
Equity Contracts
|
$ -
|
$ 63,982
|
$ 63,982
|
||
Amount of Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
|
||||
Derivatives not accounted for as hedging instruments under ASC 815
|
Purchased
Options
|
Written
Options
|
Total
|
|
Equity Contracts
|
$ -
|
$ 7,890
|
$ 7,890
|
|
Asset derivatives
|
||||
Risk Exposure Category
|
Statement of Assets and
Liabilities location
|
Fair Value
|
||
Equity Contracts
|
Written options, at fair value
|
$ 800
|
(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.
|