The Cushing Energy Income Fund
|
||||||||
SCHEDULE OF INVESTMENTS (Unaudited)
|
||||||||
August 31, 2017
|
||||||||
Fair
|
||||||||
Common Stock - 83.3%
|
Shares
|
Value
|
||||||
Exploration & Production - 73.0%
|
||||||||
Canada - 7.6%
|
||||||||
Canadian Natural Resources Ltd.(1)
|
19,000
|
$
|
585,580
|
|||||
Seven Generations Energy Ltd.(2)
|
20,500
|
311,463
|
||||||
Suncor Energy, Inc.(1)
|
27,658
|
866,525
|
||||||
France - 3.9%
|
||||||||
Total S.A.(1)
|
17,200
|
895,088
|
||||||
Netherlands - 9.2%
|
||||||||
Royal Dutch Shell Plc(1)
|
38,500
|
2,124,430
|
||||||
Norway - 5.9%
|
||||||||
Statoil ASA(1)
|
71,800
|
1,353,430
|
||||||
United Kingdom - 5.4%
|
||||||||
BP Plc(1)
|
36,064
|
1,252,503
|
||||||
United States - 41.0%
|
||||||||
Anadarko Petroleum Corporation
|
6,750
|
276,278
|
||||||
Antero Resources Corporation(1)(2)
|
17,000
|
334,730
|
||||||
Callon Petroleum Company(1)(2)
|
61,625
|
638,435
|
||||||
Centennial Resource Development, Inc.(1)(2)
|
15,000
|
259,350
|
||||||
Chevron Corporation(1)
|
14,000
|
1,506,680
|
||||||
Cimarex Energy Company
|
5,000
|
498,450
|
||||||
Concho Resources, Inc.(1)(2)
|
4,400
|
488,268
|
||||||
EOG Resources, Inc.(1)
|
12,280
|
1,043,677
|
||||||
Newfield Exploration Company(1)(2)
|
19,962
|
521,607
|
||||||
Oasis Pete, Inc.(1)(2)
|
9,000
|
65,700
|
||||||
Parsley Energy, Inc.(1)(2)
|
22,348
|
559,817
|
||||||
Pioneer Natural Resource Company(1)
|
10,558
|
1,368,845
|
||||||
QEP Resources, Inc.(2)
|
52,000
|
392,600
|
||||||
Range Resources Corporation
|
6,000
|
104,160
|
||||||
Rice Energy, Inc.(1)(2)
|
30,000
|
820,800
|
||||||
RSP Permian, Inc.(1)(2)
|
17,659
|
554,139
|
||||||
16,822,555
|
||||||||
General Partners - 5.4%
|
||||||||
United States - 5.4%
|
||||||||
Targa Resources Corporation(1)
|
27,926
|
1,244,662
|
||||||
Integrated Oil & Gas - 2.3%
|
||||||||
Canada - 2.3%
|
||||||||
Cenovus Energy, Inc.
|
67,000
|
523,940
|
||||||
Oil Services - 2.6%
|
||||||||
United States - 2.6%
|
||||||||
Halliburton Company(1)
|
15,500
|
604,035
|
||||||
Total Common Stocks (Cost $20,580,522)
|
$
|
19,195,192
|
||||||
MLP Investments and Related Companies - 23.3%
|
||||||||
Large Cap Diversified - 4.7%
|
||||||||
United States - 4.7%
|
||||||||
Energy Transfer Partners, L.P.(1)
|
56,832
|
$
|
1,080,376
|
|||||
Natural Gas Gatherers & Processors - 7.3%
|
||||||||
United States - 7.3%
|
||||||||
American Midstream Partners, L.P.(1)
|
29,000
|
381,350
|
||||||
DCP Midstream Partners, L.P.(1)
|
22,821
|
732,782
|
||||||
EnLink Midstream Partners, L.P.
|
35,000
|
568,050
|
||||||
1,682,182
|
||||||||
Shipping - 9.7%
|
||||||||
Republic of the Marshall Islands - 9.7%
|
||||||||
GasLog Partners, L.P.
|
48,000
|
1,089,600
|
||||||
Golar LNG Partners, L.P.
|
52,000
|
1,142,960
|
||||||
2,232,560
|
||||||||
Upstream - 1.6%
|
||||||||
United States - 1.6%
|
||||||||
Kimbell Royalty Partners, L.P.
|
14,613
|
229,278
|
||||||
Mid-Con Energy Partners, L.P.(3)
|
116,279
|
132,558
|
||||||
361,836
|
||||||||
Total MLP Investments and Related Companies (Cost $5,986,992)
|
$
|
5,356,954
|
||||||
Preferred Stock - 2.4%
|
||||||||
Large Cap Diversified - 2.4%
|
||||||||
United States - 2.4%
|
||||||||
Kinder Morgan, Inc.
|
13,000
|
$
|
548,210
|
|||||
Total Preferred Stock (Cost $609,722)
|
$
|
548,210
|
||||||
Fixed Income - 11.9%
|
||||||||
Exploration & Production - 8.5%
|
||||||||
United States - 8.5%
|
||||||||
Bill Barrett Corporation, 7.000%, due 10/15/2022
|
500,000
|
$
|
435,000
|
|||||
Continental Resources, Inc., 3.800%, due 06/01/2024
|
500,000
|
467,500
|
||||||
Murphy Oil Corporation, 6.125%, due 12/01/2042
|
600,000
|
567,000
|
||||||
Range Resources Corporation, 5.000%, due 03/15/2023(4)
|
500,000
|
496,250
|
||||||
1,965,750
|
||||||||
Upstream - 3.4%
|
||||||||
United States - 3.4%
|
||||||||
EV Energy Partners, L.P., 8.000%, due 04/15/2019(1)
|
2,000,000
|
790,000
|
||||||
Total Fixed Income (Cost $3,920,257)
|
$
|
2,755,750
|
||||||
Short-Term Investments - Investment Companies - 2.3%
|
||||||||
United States - 2.3%
|
||||||||
Fidelity Government Portfolio Fund - Institutional Class, 0.90%(5)
|
133,434
|
$
|
133,434
|
|||||
First American Prime Obligations Fund - Class Z, 0.88%(5)
|
133,434
|
133,434
|
||||||
Invesco Short-Term Government & Agency Portfolio - Institutional Class, 0.93%(5)
|
133,433
|
133,433
|
||||||
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class, 0.89%(5)
|
133,433
|
133,433
|
||||||
Total Short-Term Investments - Investment Companies (Cost $533,734)
|
$
|
533,734
|
||||||
Total Investments - 123.2% (Cost $31,631,227)
|
$
|
28,389,840
|
||||||
Liabilities in Excess of Other Assets - (23.2%)
|
(5,352,638)
|
|
||||||
Net Assets Applicable to Common Stockholders - 100.0%
|
$
|
23,037,202
|
||||||
SCHEDULE OF WRITTEN OPTIONS - 0.0%
|
||||||||
United States - 0.0%
|
Contracts
|
|||||||
Energy Transfer Partners LP
|
||||||||
Expiration: September 2017, Exercise Price $21.00
|
(200)
|
|
$
|
(400)
|
|
|||
Halliburton Company
|
||||||||
Expiration: September 2017, Exercise Price $42.50
|
(75)
|
|
(225)
|
|
Royal Dutch Shell Plc
|
||||||||
Expiration: September 2017, Exercise Price $57.50
|
(150)
|
|
(375)
|
|
||||
Targa Resources Corporation
|
||||||||
Expiration: September 2017, Exercise Price $48.00
|
(120)
|
|
(600)
|
|
||||
Total S.A.
|
||||||||
Expiration: September 2017, Exercise Price $52.50
|
(69)
|
|
(2,622)
|
|
||||
Total Written Options (Proceeds $15,115)
|
$
|
(4,222)
|
|
(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 period ended August 31, 2017. As such, it is classified as a non-income producing security as of August 31, 2017.
|
|||
(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 0.58% of the Fund's net assets at August 31, 2017.
|
|||
(4)
|
Securities purchased pursuant to Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional buyers." These securities have been deemed to be liquid by the Fund's adviser under the supervision of the Board of Directors. As of August 31, 2017, the value of these investments was $496,250, or 2.15% of total net assets.
|
|||
(5)
|
Rate reported is the current yield as of August 31, 2017.
|
|||
Cost of investments
|
$
|
31,616,112
|
||
Gross unrealized appreciation
|
1,746,281
|
|||
Gross unrealized depreciation
|
(4,976,774)
|
|
||
Net unrealized appreciation
|
$
|
(3,230,493)
|
|
·
|
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
|
August 31, 2017
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets
Equity Securities
|
||||||||||||||||
Common Stock (a)
|
$
|
19,195,192
|
$
|
19,195,192
|
$
|
-
|
$
|
-
|
||||||||
Master Limited
Partnerships and
Related
Companies (a)
Preferred Stock(a)
|
5,356,954
548,210
|
5,224,396
548,210
|
132,558
-
|
-
-
|
||||||||||||
Total Equity Securities
|
25,100,356
|
24,967,798
|
132,558
|
-
|
||||||||||||
Notes
Senior Notes(a)
|
2,755,750
|
-
|
2,755,750
|
-
|
||||||||||||
Total Notes
|
2,755,750
|
-
|
2,755,750
|
-
|
||||||||||||
Other
Short Term
Investments (a)
|
533,734
|
533,734
|
-
|
-
|
||||||||||||
Total Other
|
533,734
|
533,734
|
-
|
-
|
||||||||||||
Total Assets
|
$
|
28,389,840
|
$
|
25,501,532
|
$
|
2,888,308
|
$
|
-
|
||||||||
Liabilities
Options
|
$
|
4,222
|
$
|
4,222
|
$
|
-
|
$
|
-
|
||||||||
Total Liabilities
|
$
|
4,222
|
$
|
4,222
|
$
|
-
|
$
|
-
|
(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, 2017.
|
Contracts
|
Premiums
|
|||||||
Outstanding at November 30, 2016
|
-
|
$
|
-
|
|||||
Options written
|
614
|
15,115
|
||||||
Options covered
|
-
|
-
|
||||||
Options expired
|
-
|
-
|
||||||
Options exercised
|
-
|
-
|
||||||
Outstanding at August 31, 2017
|
614
|
$
|
15,115
|
The effect of derivative instruments on the Statement of Operations for the period ended August 31, 2017:
|
|||||
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
|
$ -
|
$ -
|
$ -
|
||
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
|
$ -
|
$ 10,893
|
$ 10,893
|
(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.
|