Bringing you live news and features since 2006 

Swank Capital launches open-end mutual fund


Swank Capital has launched The Cushing MLP Premier Fund, an open-end mutual fund which was made available to investors on 19 October. 

The fund invests in midstream energy infrastructure master limited partnerships, which have historically provided tax-advantaged income to their investors. 

Swank Energy Income Advisors, a subsidiary of Swank Capital, serves as the fund’s adviser.

The Cushing MLP Premier Fund is one of the first open-end mutual funds to invest in the MLP sector. The fund invests primarily in midstream MLPs that build and operate pipelines and storage facilities for the transportation of domestic energy supplies critical to the nation’s economy. MLPs own the infrastructure that connects crude oil, natural gas, coal and other energy resources to refineries and other end users.

"MLPs, as represented by The Cushing 30 MLP Index, have had one of the best risk adjusted returns of any asset class over the last ten years ending 30 September 2010. They’ve provided investors a combination of high income and growth sustained by a continually increasing need for energy infrastructure in the US," says Jerry V. Swank, portfolio manager of the fund and founder of Swank Capital. "In addition, MLPs have a long history of growing distributions faster than inflation, which has made them useful as a potential inflation hedge."

Swank Capital believes that midstream energy MLPs are positioned to benefit from an increasing need for new pipelines and storage facilities as demand for new domestic sources of oil and natural gas continues to grow. In addition, Swank Capital believes that MLPs offer an attractive business model to meet that demand: fees are charged for transportation and storage, contracts are typically long term and demand is generally stable. Furthermore, many midstream MLPs have minimal exposure to actual commodity price risk with only moderate sensitivities to most economic shifts.

"We created this fund to make MLP investing available to broad classes of investors," says Swank. "Increasingly, retiring baby boomers are looking for income and need investments that provide stable sources they can count on. We’ve designed our fund to meet that need by providing the potential for stability and tax-advantaged quarterly dividends."

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by