MainStay Cushing Royalty Energy Income Fund

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 Cushing Assest Management

Cushing Asset Management, LP, a wholly owned subsidiary of Swank Capital, LLC, is a SEC-registered investment advisor headquartered in Dallas, Texas. The firm serves as investment advisor to registered and unregistered funds, which invest primarily in securities of MLPs and other natural resource companies.

Management Team

  • Jerry V. Swank
  • Jerry V. Swank – MainStay Cushing Funds Manager

    Fund's Manager:
    Since Inception

    Industry Experience:
    42 years

  • Judd B. Cryer
  • Judd B. Cryer – MainStay Cushing Funds Manager

    Fund's Manager:
    Since Inception

    Industry Experience:
    15 years

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  • Summary
  • Performance
  • Portfolio
  • Distributions
    & Yields
  • Fees &

Fund Objective: Seeks current income and capital appreciation. In seeking current income, the Fund intends to pay current cash distributions to shareholders, regardless of the character of such distributions for tax or accounting purposes.

  • Investment Strategy and Process
    Under normal market conditions, the Funds invests at least 80% of its assets in a portfolio of energy-related U.S. royalty trusts and Canadian royalty trusts and exploration and production (E&P) companies; E&P master limited partnerships (MLPs); and securities of other North American-based companies principally engaged in activities in the energy sector. The Fund is non-diversified and may invest in companies of any market capitalization size.

    The Subadvisor seeks to invest in energy companies with strong fundamentals and dividends or distribution yields that are attractive relative to comparable companies, with a focus on companies with operations in the development and production of crude oil and natural gas. The Fund is actively managed, incorporating dynamic quantitative analysis with the Subadvisor’s proprietary research process.

    The Subadvisor selects a core group of energy companies utilizing a proprietary quantitative ranking system, seeking to build a strategically developed core portfolio of investments designed to take advantage of the changing dynamics within the upstream energy sector.

    The Subadvisor uses fundamental, proprietary research to seek to identify the most attractive investments with attractive dividend or distribution yields and distribution growth prospects. The amount of cash available for distributions to shareholders will depend on the ability of the underlying energy company investments to make distributions or pay dividends to their investors and the tax character of those distributions.

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Class A & INV: 5.5% maximum initial sales charge. Class C: 1% CDSC if redeemed within one year. Class I: No initial sales charge or CDSC. Total annual operating expenses are: Class A: 1.60%, INV: 1.77%, C: 2.41%, I: 1.33%. Net annual fund operating expenses after recoupments/waivers/reimbursements are: Class A: 1.47%, INV: 1.64%, C: 2.28%, I: 1.20%.

Performance data quoted represents past performance. Past performance is no guarantee of future results. Due to market volatility, current performance may be less or higher than the figures shown. Investment return and principal value will fluctuate, so that upon redemption, shares may be worth more or less than their original cost. Performance figures reflect contractual fee waiver and/or expense limitation agreements in effect through 4/1/16 and 7/11/16 and a management fee waiver agreement in effect through 4/1/16, unless extended by New York Life Investments and approved by the Fund's Board, and without which total returns may have been lower.

Before You Invest

All mutual funds are subject to market risk, including possible loss of principal.

Before considering an investment in the Fund, you should understand that you could lose money.

The investment strategy of investing primarily in MLPs and being treated as a regular corporation, or “C” corporation, rather than electing to be treated as a regulated investment company for U.S. federal income tax purposes, is a relatively new investment strategy for open-end registered investment companies, such as the Fund. This strategy involves complicated and, in some cases, unsettled accounting, tax, net asset, and share valuation aspects that cause the Fund to differ significantly from most other open-end registered investment companies. This may result in unexpected and potentially significant accounting, tax, and valuation consequences for the Fund and for its shareholders. In addition, accounting, tax, and valuation practices in this area are still developing, and there may not always be a clear consensus among industry participants as to the most appropriate approach, which may result in changes over time in the practices applied by the Fund, which, in turn, could have material adverse consequences on the Fund and its shareholders.

The Fund is a non-diversified, open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). Accordingly, the Fund may invest a greater portion of its assets in a more limited number of issuers than a diversified fund. There are currently approximately 120 publicly traded MLPs. The Fund will select its investments in MLPs from this small pool of issuers together with securities issued by any newly public MLPs, and may invest in securities of private MLPs, affiliates of MLPs, and non-MLP issuers, consistent with its investment objective and policies. An investment in the Fund may present greater risk to an investor than an investment in a diversified portfolio because changes in the financial condition or market assessment of a single issuer may cause greater fluctuations in the value of the Fund’s shares.

The Fund concentrates its investments in the natural resources sector, with an emphasis on securities issued by MLPs. MLPs and other natural resources sector companies are subject to certain risks, including, but not limited to fluctuations in the prices of commodities; the highly cyclical nature of the natural resources sector may adversely affect the earnings or operating cash flows of the issuers in which the Fund will invest; a significant decrease in the production of energy commodities would reduce the revenue, operating income, and operating cash flows of MLPs and other natural resources sector companies and, therefore, their ability to make distributions or pay dividends.

Unlike U.S. royalty trusts, Canadian royalty trusts and exploration and production companies may engage in the acquisition, development and production of natural gas and crude oil to replace depleting reserves. They may have employees, issue new shares, borrow money, acquire additional properties, and may manage the resources themselves. As a result, Canadian royalty trusts and Canadian exploration and production companies are exposed to commodity risk and production and reserve risks, as well as operating risk.

The investment strategies, practices, and risk analysis used by the subadvisor may not produce the desired results.

Credit Ratings: Credit ratings apply to the underlying debt securities and are rated by an independent rating agency such as Standard & Poor’s (S&P), Moody’s, and/or Fitch. S&P rates borrowers on a scale from AAA to D. AAA through BBB represent investment grade, while BB through D represent non-investment grade. Moody’s rates borrowers on a scale from Aaa through C. Aaa through Baa3 represent investment grade, while Ba1 through C represent non-investment grade. Fitch rates borrowers on a scale from AAA through D. AAA through BBB represent investment grade, while BB through D represent noninvestment grade.

Energy trust is a type of corporation which exists solely to hold oil and gas mineral rights. Royalty trusts buy the right to royalties on the production and sale of a natural resource company and pass on the profits to trust unit holders. Upstream energy companies are involved in exploration and production of crude oil and natural gas.


1. POP (Public Offering Price) is the NAV (Net Asset Value) plus a sales charge. All POPs are subject to revision and include the maximum sales charge.

2. Average annual total returns include the change in share price and reinvestment of dividends and capital gain distributions. Effective after the close of business 7/11/14, Cushing® Royalty Energy Income Fund was renamed MainStay Cushing Royalty Energy Income Fund. Performance for Class A, C, and I shares reflect the performance of the then-existing Class A, C, and I shares of Cushing Royalty Energy Income Fund (which was subject to a different fee structure) for periods prior to 7/11/14. Performance for Investor Class shares reflects the historical performance of Class A shares adjusted to reflect differences in fees and expenses. Unadjusted, the performance of the new class would likely have been different. Class I shares are generally available only to corporate and institutional investors.

4. No sales charge applies to Class A and Investor Class share investments of $1,000,000 or more ($250,000 or more with respect to MainStay California Tax Free Opportunities Fund, MainStay High Yield Municipal Bond Fund, MainStay New York Tax Free Opportunities Fund, MainStay Tax Advantaged Short Term Bond Fund, and MainStay Tax Free Bond Fund; or $500,000 or more with respect to MainStay Floating Rate Fund and MainStay Short Duration High Yield Fund), but a CDSC of 1% may be imposed on certain redemptions of such shares within one year (18 months for MainStay Short Duration High Yield Fund) of the date of purchase.

Investment Definitions

The S&P 500® Index is an unmanaged index and is widely regarded as the standard for measuring large-cap U.S. stock-market performance. Index results assume the reinvestment of all capital gain and dividend distributions. The securities holdings and volatility of the Fund differ significantly from the stocks that make up the S&P 500 Index. An investment cannot be made directly into an index.

The P/E Ratio (price-to-earnings) denotes the weighted average of all the P/Es of the securities in the Fund's portfolio. The P/B Ratio (price-to-book) is the weighted average of all the P/Bs of the securities in the Fund's portfolio. Return on Equity (ROE) is the weighted average of all the ROEs of the securities in the Fund's portfolio. ROE is calculated by dividing net income by book value. Standard deviation measures how widely dispersed a fund's returns have been over a specified period of time. A high standard deviation indicates that the range is wide, implying greater potential for volatility. Beta is a measure of historical volatility relative to an appropriate index (benchmark) based on its investment objective. A beta greater than 1.00 indicates volatility greater than the benchmark's. Alpha measures a fund's risk-adjusted performance and is expressed as an annualized percentage. R-Squared measures the percentage of a fund's movements that result from movements in the index. The Sharpe Ratio shown is calculated for the past 36-month period by dividing annualized excess returns by annualized standard deviation. The Annual Turnover Rate is as of the most recent annual shareholder report. Upside/Downside Market Capture measures a manager's performance in up/down markets relative to the Fund's benchmark.