Swank Energy Income Advisors, LP (“Swank Energy”), a wholly-owned subsidiary of Swank Capital, LLC and investment advisor to The Cushing MLP Total Return Fund (NYSE: SRV), today announced that Credit Suisse Securities (USA) LLC has launched an Exchange-Traded Note (“ETN”) tracking the Swank Energy sponsored Cushing® 30 MLP Index (the “Cushing® 30”). The ETN is listed on the NYSE Arca under the ticker symbol “(MLPN)”.
The Cushing® 30 is a fundamental based North American energy infrastructure index, comprised of 30 equally weighted publicly traded MLPs. By basing inclusion in the index on fundamental drivers such as cash flow, distribution growth, and balance sheet strength, the Cushing® 30 corrects inherent flaws of market-capitalization weighted indices and provides investors with an index that more accurately reflects the performance of a well-diversified passive MLP portfolio. The fundamental selection processes used to create the Cushing® 30, as well as its design as a predominately static index, creates the benchmark for MLP investors.
The Cushing® 30 is calculated by Standard & Poor’s and reported under the Bloomberg ticker “MLPX”.
Swank Capital, LLC founder and managing partner, Jerry Swank, commented, “MLPs provide exposure to both current income and growth, and the Cushing® 30 linked ETN provides an additional means for investors who seek passive exposure to the emerging MLP asset class. For individual and institutional investors, efficient and prudent access to passively-managed MLPs can be optimally achieved through the Cushing 30® MLP Index, the only MLP index with allocations that capture fundamentally-derived performance and potential. In this way, the Cushing® 30 is more representative of the MLP sector, and is a more “investable” portfolio than a highly concentrated, market capitalization-weighted MLP index.”
Over time, the Cushing® 30 has outperformed other MLP and broader market indices:
|Performance Vs. The Benchmarks|
|Avg Trailing Total Return||CAGR|
|YTD||1 Yr||3 Yrs||5 Yrs||2001|
|Cushing® 30 MLP Index TR||9.19%||82.54%||10.81%||17.15%||20.36%|
|Alerian MLP Index TR||8.25%||71.73%||6.31%||12.29%||14.08%|
|Alerian MLP Infrastructure Index TR||8.46%||77.42%||6.66%||14.07%||17.29%|
|S&P 500 TR||5.39%||49.77%||(4.16%)||1.92%||2.19%|
|REIT Index TR||9.90%||106.50%||(10.39%)||3.98%||9.45%|
|PHLX Utility Index TR||(3.33%)||19.82%||(5.51%)||4.29%||6.49%|
|Merrill Lynch HY Bond Index||4.82%||57.22%||6.53%||7.67%||8.68%|
|Merrill Lynch Muni Bond Index||1.27%||11.00%||4.46%||4.61%||5.50%|
The launch of the ETN linked to the Cushing 30® builds on Swank Capital’s unparalleled expertise in the MLP asset class, which also includes the launch of one of the first dedicated MLP hedge funds in 2003 and serving as investment advisor of the Cushing MLP Total Return Fund ( SRV). The Firm will continue to expand its platform of MLP-related investment products, leveraging extensive industry contacts and unparalleled research depth to drive both passive and actively managed investment opportunities for individual and institutional investors.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state, province or other jurisdiction.
The Preliminary Pricing Supplement dated April 2, 2010 is available at the website of the U.S. Securities and Exchange Commission, www.sec.gov or a link is also available at www.cushingmlpindex.com. The supplement is also available from Credit Suisse Securities (USA) LLC: 11 Madison Avenue, New York, NY 10010. (Phone number: 888-537-4898)
ABOUT SWANK ENERGY INCOME ADVISORS, LP.
Swank Energy Income Advisors, LP (“Swank Energy”), is an SEC-registered Investment Advisor headquartered in Dallas, Texas. Swank Energy serves as investment adviser to affiliated funds, which invest primarily in securities of MLPs and other natural resource companies. Through these and related investment vehicles, Swank Energy seeks to achieve a high after-tax total return from a combination of capital appreciation and current income (as opposed to relative performance against a benchmark index). The Investment Advisor seeks to identify and exploit investment niches it believes are generally less understood and less followed by the broader investor community.
The Cushing® 30 MLP Index is an equal-weighted index of the 30 most stable and widely held energy infrastructure MLPs. The S&P 500 is an index of 500 stocks used industry wide as a macro level indicator of the overall U.S. equity market. The REIT Index is the Dow Jones Equity REIT Total Return Index which includes REITs that directly own all or part of the properties in their portfolios. The PHLX Utility Index is a utility sector index which includes communication services, electrical power providers and natural gas distributors. The Merrill Lynch High Yield Bond Index is an unmanaged index that tracks the performance of below-investment-grade U.S. dollar-denominated corporate bonds. The Merrill Lynch Muni Bond Index is an unmanaged index comprised of investment grade municipal bonds.
MLPX Constituents: (ARLP), (APU), (BWP), (BPL), (CPNO), (DEP), (EPB), (EEP), (ETE), (ETP), (EPE), (EPD), (GEL), (NRGY), (KMP), (MMP), (MWE), (NRP), (NS), (NSH), (OKS), (PAA), (RGNC), (SEP), (SXL), (NGLS), (TCLP), (WES), (WPZ), (WMZ).
The Cushing® 30 MLP Index (the “Cushing® 30”) is the exclusive property of Swank Capital, LLC, which has contracted with the Standard & Poor’s (“S&P”) to maintain and calculate the Index. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC “Calculated by S&P Custom Indices” and related stylized mark(s) are service marks of Standard & Poor’s Financial Services LLC and have been licensed by use by Swank Capital, LLC. S&P and its affiliates shall have no liability for any errors or omissions in calculating the Index.
SOURCE Swank Energy Income Advisors, LP