Cushing Asset Management, LP

Strategies

Explore Cushing’s Strategies

 

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. For performance information current to the most recent month-end, visit our web site at mainstayinvestments.com.

Swank Capital, LLC is not affiliated with NYLIFE Distributors LLC. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. The MainStay Funds are managed by New York Life Investment Management LLC and distributed by NYLIFE Distributors LLC, 30 Hudson Street, Jersey City, NJ 07302, a wholly owned subsidiary of New York Life Insurance Company. NYLIFE Distributors LLC is a Member FINRA/SIPC.

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.

MainStay Cushing Renaissance Advantage Fund: The Fund’s investments will be concentrated issuers in the energy sector. Because the Fund will be concentrated in the energy sector, it may be subject to more risks than if it were broadly diversified over numerous industries and sectors of the economy.

MainStay Cushing MLP Premier Fund and MainStay Cushing Renaissance Advantage Fund: Securities purchased by the Fund that are liquid at the time of purchase may subsequently become illiquid due to, among other things, events relating to the issuer of the securities, market events, economic conditions, investor perceptions, or lack of market participants. The lack of an active trading market may make it difficult to obtain an accurate price for a security. As a result, an investor could pay more than the market value when buying Fund shares or receive less than the market value when selling Fund shares.

MainStay Cushing MLP Premier Fund, MainStay Cushing Royalty Energy Fund, and MainStay Cushing Renaissance Advantage Fund: 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.

MainStay Cushing MLP Premier Fund, MainStay Cushing Royalty Energy Fund: 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.

MainStay Cushing Royalty Energy Fund: 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.

MainStay Cushing MLP Premier Fund, MainStay Cushing Royalty Energy Fund, and MainStay Cushing Renaissance Advantage Fund: The investment strategies, practices, and risk analysis used by the subadvisor may not produce the desired results.

MainStay Cushing MLP Premier Fund: Distributions made by the Fund to shareholders may be considered ordinary income or non-taxable return of capital. The Fund is organized as a regular or “C” corporation for U.S. federal income tax purposes and is subject to U.S. federal income tax on taxable income at the corporate tax rate (currently as high as 35%) as well as state, foreign, and local taxes.

MainStay Cushing MLP Premier Fund: Midstream MLPs gather, process, and transport natural resources.

Mainstay Cushing Royalty Energy Income Fund: 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.

MainStay Cushing Royalty Energy Income Fund: 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.


MainStay Cushing Royalty Energy Fund: 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.

MainStay Cushing Renaissance Advantage Fund: Small- and mid-cap stocks are often more volatile and less liquid than large-cap stocks. Smaller companies generally face higher risks due to their limited product lines, markets, and financial resources.