NXG Cushing® Midstream Energy Fund

Investment Objective

The Fund's investment objective is to obtain a high after-tax total return from a combination of capital appreciation and current income. The Fund seeks to achieve its investment objective by investing, under normal conditions, at least 80% of its net assets, plus any borrowings for investment purposes, in midstream energy investments.

  • Diversified exposure to midstream energy through a single investment
  • Suitable for IRAs and other tax exempt accounts. Unlike direct holdings in MLPs, SRV does not generate unrelated business taxable income.

Why Invest in the Fund?

Midstream energy companies build and operate pipelines and storage facilities for the transportation of domestic energy supplies critical to the nation's economy. These companies own the infrastructure that connects the energy raw commodity to the end user.

  • Seeks High Total Return and Current Income: The underlying portfolio is designed to provide investors with opportunities for income and growth.
  • Potential Income: Majority of company cash flows are distributed to investors
  • Simplified Tax Reporting: Investors receive a single tax form rather than a schedule K-1 from each underlying MLP.
  • Hedge Against Inflation: Company distributions have grown over time, providing a potential inflation hedge

About the Fund

The Fund is a non-diversified, closed-end management investment company with an investment objective of seeking a high after-tax total return from a combination of capital appreciation and current income. The Fund will pursue its investment objective by investing, under normal market conditions, at least 80% of its net assets, plus any borrowings for investment purposes, in a portfolio of midstream energy investments. The Fund considers midstream energy investments to be investments that offer economic exposure to securities of midstream energy companies, which are companies that engage provide midstream services in the energy infrastructure sector, including the gathering, transporting, processing, fractionation, storing, refining and distribution of natural resources, such as natural gas, natural gas liquids, crude oil refined petroleum products, biofuels, carbon sequestration, solar, and wind. The Fund considers a company to be a midstream energy company if at least 50% of its assets, income, sales or profits are committed to, derived from or otherwise related to midstream energy services. The Fund is traded on the New York Stock Exchange under the symbol “SRV.”

All investments involve risk, including possible loss of principal. You should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. Additional information regarding the Fund can be found in the Fund’s most recent shareholder report. Past performance is not indicative of future results. Closed-end funds, unlike open-end funds, are not continuously offered. After the initial public offering, shares are sold on the open market through a stock exchange. As with any stock, the price of the Fund’s shares will fluctuate with market conditions and other factors. Shares of closed-end funds frequently trade at a market price that is below their net asset value. There is no assurance that the Fund will achieve its investment objective. The Fund is subject to numerous risks. Leverage creates risks which may adversely affect return, including the likelihood of greater volatility of net asset value and market value. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. Energy companies may be affected by fluctuations in the prices of commodities, declines in production or supply sources, a sustained decline in demand, environmental liabilities, changes in regulation and other risks. The Fund will invest in master limited partnerships (“MLPs”). MLPs are subject certain risks inherent in the structure of MLPs, including complex tax structure risks, the limited ability for election or removal of management, limited voting rights, potential dependence on parent companies or sponsors for revenues to satisfy obligations, and potential conflicts of interest between partners, members and affiliates. The potential tax benefits from investing in MLPs depend on them being treated as partnerships for federal income tax purposes. If the MLP is deemed to be a corporation then its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution to the Fund which could result in a reduction of the Fund’s value. The Fund is not a complete investment program and you may lose money by investing in the Fund. An investment in the Fund may not be appropriate for all investors.

Fund Prices

As of TBD

Market Price
NAV
Fund AUM
Listed
SRV
NYSE

Fund Details

Ticker SRV
CUSIP 231631300
Fund Inception August 24, 2007
Recent Distribution1 $0.45
Shares Outstanding 2.2 million
Management Fee2 1.00%

1. Paid on 11/30/2023 to shareholders of record on 11/3/2023.
2. After voluntary waiver of 25 bps

Portfolio Manager

  • John Musgrave
  • Todd Sunderland

Sector Exposure

As of TBD

Top Holdings

As of TBD

Company % of Total Portfolio

Fund holdings and sector allocations are subject to change at any time and are not remcommendations to buy or sell any security.

Performance

As of TBD

Report of Organizational Actions Affecting Basis of Securities

Issuers of corporate securities, including the NXG Cushing® Midstream Energy Fund ("SRV"),  are required to complete Internal Revenue Service Form 8937 to report organizational actions, including nontaxable distributions, that affect the basis of the securities involved in the organizational action.

2021 Sample 1099-DIV
SRV 2022 8937
SRV 2021 8937
SRV 2020 8937