DALLAS, Dec. 19 /PRNewswire/ -- The Cushing MLP Total Return Fund (the "Fund"), in consultation with its auditors, Deloitte, has been evaluating, pursuant to FAS 109, the appropriateness of its deferred tax asset. Currently, the Fund's total deferred tax asset is approximately $49.1 million and, to date, the Fund has established a valuation allowance of approximately $15.9 million against the deferred tax asset resulting in a net deferred tax asset of approximately $33.2 million. Based on recently received guidance from its auditors, the Fund has determined it appropriate to establish a valuation allowance to fully offset the remaining net deferred tax asset. The result of this determination is a decrease in net asset value per share of $3.49, resulting in a net asset value per share of $3.79 as of the close on December 18, 2008.
The establishment of this valuation allowance does not impact the value of the investments held by the fund. As an update, the Fund has approximately $5 million of outstanding debt under its borrowing arrangement and is currently in compliance with its borrowing covenants.
Currently, the Investment Advisor reimburses the Fund's expenses to the extent that total annual Fund operating expenses, not including interest payments or other expenses on borrowed funds, exceed 1.50% of average managed assets. The Investment Advisor has decided to discontinue this reimbursement. Additionally, given the current market conditions, the Investment Advisor will temporarily reduce the management fee charged the Fund from the current annual rate of 1.25% to 1.00%.
The Fund is a non-diversified, closed-end management investment company. 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 market conditions, at least 80% of its net assets, plus any borrowings for investment purposes, in MLP investments. No assurance can be given that the Fund's investment objective will be achieved.
The Fund is traded on the New York Stock Exchange under the symbol "SRV." The Fund is managed by Swank Energy Income Advisors, LP, an investment adviser registered with the Securities and Exchange Commission (the "SEC") and headquartered in Dallas, Texas.
Copies of the Fund's annual and semi-annual reports may be obtained upon request, without charge, by calling toll-free (800) 662-7232 and also are available on the Fund's website at http://www.swankcapital.com/. You may also call this toll-free telephone number to request other information about the Fund or to make shareholder inquiries. The SEC maintains an internet website at http://www.sec.gov/ that contains other information regarding the Fund.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release may contain forward-looking statements describing the Fund's future plans and objectives. We may use words such as "anticipates," "believes," "expects," "intends," "will," "should," "may," "plans," "could," "estimates," "potential," "continue," "target," or the negative of these terms or other similar expressions to identify forward-looking statements. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from the Fund's historical experience and its present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; MLP industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in the Fund's filings with the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable law. There is no assurance that the Fund's investment objective will be attained.
Contact: The Cushing MLP Total Return Fund For additional information contact: 1-800-662-7232 http://www.swankcapital.com/
