cushing-ren_nq.htm
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY


Investment Company Act file number: 811-22499


The Cushing Renaissance Fund
(Exact name of registrant as specified in charter)


8117 Preston Road, Suite 440, Dallas, TX 75225
(Address of principal executive offices) (Zip code)


Jerry V. Swank
8117 Preston Road, Suite 440, Dallas, TX 75225
(Name and address of agent for service)


214-692-6334
Registrant's telephone number, including area code


Date of fiscal year end: November 30

Date of reporting period:  February 28, 2015
 
 
 
 
 
 
Item 1. Schedule of Investments.
 

The Cushing® Renaissance Fund
  
SCHEDULE OF INVESTMENTS (Unaudited)
  
             
   
February 28, 2015
  
             
         
Fair
  
Common Stock - 50.1%
  
Shares
    
Value
  
Chemicals - 11.2%
            
Netherlands - 3.8%
            
LyondellBasell Industries NV
     67,538     $ 5,802,190  
United States - 7.4%
                
E.I. du Pont de Nemours and Company
     40,000       3,114,000  
The Dow Chemical Company (1)
     90,000       4,431,600  
Westlake Chemical Corporation (1)
     55,000       3,671,800  
              17,019,590  
Commercial Service Supplies & Distributors - 2.3%
                
United States - 2.3%
                
United Rentals, Inc.(2)
     37,000       3,443,220  
                 
Construction & Engineering - 1.8%
                
United States - 1.8%
                
Fluor Corporation (1)
     20,000       1,160,000  
Quanta Services, Inc.(2)
     55,000       1,582,900  
              2,742,900  
Integrated Oil & Gas - 2.7%
                
Netherlands - 1.7%
                
Royal Dutch Shell plc (1)
     39,500       2,582,115  
United States - 1.0%
                
Occidental Petroleum Corporation
     20,000       1,557,600  
              4,139,715  
Machinery - 2.2%
                
United States - 2.2%
                
Greenbrier Companies, Inc.
     25,000       1,469,250  
Wabtec Corporation
     20,000       1,897,800  
              3,367,050  
Oil & Gas Refining & Marketing - 12.6%
                
United States - 12.6%
                
Delek US Holdings, Inc.
     30,000       1,118,400  
HollyFrontier Corporation
     32,000       1,407,680  
Marathon Petroleum Corporation
     25,100       2,635,500  
Phillips 66 (1)
     80,000       6,276,800  
Tesoro Corporation
     25,000       2,296,000  
Western Refining Inc.
     115,000       5,416,500  
              19,150,880  
Oil & Gas Storage & Transportation - 7.3%
                
Bermuda - 4.2%
                
GasLog Ltd. (1)
     270,677       5,356,698  
Golar LNG Limited
     33,486       1,038,735  
Republic of the Marshall Islands - 3.1%
                
Ardmore Shipping Corporation
     153,854       1,626,237  
Teekay Corporation
     70,000       3,096,800  
              11,118,470  
 
 
 
 
 
Transportation - 2.4%
                
United States - 2.4%
                
Genesee & Wyoming, Inc.(2)
     19,500       2,010,450  
Swift Transportation Company(1)(2)
     60,000       1,696,800  
              3,707,250  
Utilities - 7.6%
                
United States - 7.6%
                
Centerpoint Energy, Inc.
     105,000       2,182,950  
Dominion Resources, Inc.
     25,000       1,802,250  
PPL Corporation
     100,000       3,410,000  
Sempra Energy
     13,000       1,406,600  
The Southern Company (1)
     60,500       2,770,295  
              11,572,095  
Total Common Stocks (Cost $60,106,361)
           $ 76,261,170  
                 
Master Limited Partnerships and Related Companies - 31.8%
                
Oil & Gas Exploration & Production - 0.5%
                
United States - 0.5%
                
BreitBurn Energy Partners, L.P. (1)
     103,192     $ 739,887  
                 
Oil & Gas Refining & Marketing - 1.3%
                
Republic of the Marshall Islands - 1.3%
                
Knot Offshore Partners, L.P.
     85,970       1,930,026  
                 
Oil & Gas Storage & Transportation - 28.8%
                
Republic of the Marshall Islands - 17.5%
                
Golar LNG Partners, L.P.
     204,686       5,344,352  
Capital Product Partners, L.P.
     551,830       5,132,019  
Delek Logistics Partners, L.P. (1)
     179,000       7,478,620  
GasLog Partners, L.P. (1)
     138,694       3,528,375  
Teekay LNG Partners, L.P. (1)
     60,000       2,223,000  
Teekay Offshore Partners, L.P.
     133,400       2,926,796  
United States - 11.3%
                
Cheniere Energy Partners, L.P.
     230,000       7,049,500  
Phillips 66 Partners, L.P. (1)
     89,870       6,397,845  
Tesoro Logistics, L.P. (1)
     30,100       1,728,342  
World Point Terminals, L.P.
     101,000       2,017,980  
              43,826,829  
Transportation - 1.2%
                
Republic of the Marshall Islands - 1.2%
                
Navios Maritime Partners, L.P. (1)
     150,000       1,837,500  
                 
Total Master Limited Partnerships and Related Companies (Cost $37,579,555)
           $ 48,334,242  
                 
   
Principal
          
Fixed Income - 23.8%
  
Amount
          
Commercial Service Supplies & Distributors - 2.8%
                
United States - 2.8%
                
United Rentals, Inc., 5.750%, due 11/15/2024 (1)
     4,000,000     $ 4,240,000  
                 
Construction & Engineering - 3.2%
                
United States - 3.2%
                
 
 
 
 
 
Zachry Holdings, Inc., 7.500%, due 02/01/2020(3)
     5,000,000       4,887,500  
                 
Oil & Gas Equipment & Services - 1.8%
                
United States - 1.8%
                
Key Energy Services, 6.750%, due 03/01/2021
     4,000,000       2,692,500  
                 
Oil & Gas Exploration & Production - 10.9%
                
United States - 2.3%
                
MEG Energy Corp., 6.375%, due 01/30/2023(3)
     3,725,000       3,557,375  
United States - 8.6%
                
Barrett Bill Corp., 7.000%, due 10/15/2022
     2,750,000       2,578,125  
Comstock Resources, Inc., 7.750%, due 04/01/2019
     5,000,000       3,125,000  
Denbury Resources, Inc., 4.625%, due 07/15/2023
     4,000,000       3,605,000  
Sanchez Energy Corp., 6.125%, due 01/15/2023(3)
     4,000,000       3,690,000  
              16,555,500  
Oil & Gas Refining & Marketing - 2.4%
                
United States - 2.4%
                
Western Refining, Inc., 6.250%, due 04/01/2021 (1)
     3,750,000       3,750,000  
                 
Oil & Gas Storage & Transportation - 0.7%
                
United States - 0.7%
                
Sabine Pass Liquefaction, LLC, 5.750%, due 05/15/2024
     1,000,000       1,027,500  
                 
Trading Companies & Distributors - 1.3%
                
United States - 1.3%
                
H & E Equipment Services Inc., 7.000%, due 09/01/2022
     2,000,000       2,065,000  
                 
Utilities - 0.7%
                
United States - 0.7%
                
Sabine Pass Liquefaction, LLC, 5.625%, due 02/01/2021
     1,000,000       1,028,750  
Total Fixed Income (Cost $40,803,709)
           $ 36,246,750  
                 
Short-Term Investments - Investment Companies - 1.8%
  
Shares
          
United States - 1.8%
                
AIM Short-Term Treasury Portfolio Fund - Institutional Class, 0.01%(4)
     543,365     $ 543,365  
Fidelity Government Portfolio Fund, 0.01%(4)
     543,365       543,365  
Fidelity Money Market Portfolio, 0.07%(4)
     543,365       543,365  
First American Government Obligations Fund - Class Z, 0.01%(4)
     543,365       543,365  
Invesco STIC Prime Portfolio, 0.04%(4)
     543,365       543,365  
Total Short-Term Investments - Investment Companies (Cost $2,716,825)
           $ 2,716,825  
                 
Total Investments - 107.5% (Cost $141,206,450)
           $ 163,558,987  
Liabilities in Excess of Other Assets - (7.5%)
             (11,396,991 )
Net Assets Applicable to Common Stockholders - 100.0%
           $ 152,161,996  
   
 
Percentages are stated as a percent of net assets.
  (1)
All or a portion of these securities are held as collateral pursuant to the loan agreements.
  (2)
No distribution or dividend was made during the period ended February 28, 2015.  As such, it is classified as a non-income producing security as of February 28, 2015.
  (3)
Restricted security under rule 144A under the Securities Act of 1933, as amended.
  (4)
Rate reported is the current yield as of February 28, 2015.

 
 
 
 
Tax Basis

The cost basis of investments for federal income tax purposes at February 28, 2015 was as follows*:
 
Cost of investments
   $ 141,511,332  
Gross unrealized appreciation
     30,861,761  
Gross unrealized depreciation
  
­­­­ (8,814,106)
  
Net unrealized appreciation
   $ 22,047,655  

* The above table only reflects tax adjustments through November 30, 2014.  For the previous fiscal year's federal income tax information, please refer to the Notes to Financial Statements section in the Fund's most recent semi-annual or annual report.

 
Fair Value Measurements
 
Various inputs that are used in determining the fair value of the Cushing Renaissance Fund’s (the “Fund”) investments are summarized in the three broad levels listed below:
 
·  
Level 1 — quoted prices in active markets for identical securities
·  
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
·  
Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
 
These inputs are summarized in the three broad levels listed below.
 
      Fair Value Measurements at Reporting Date Using        
         
Quoted Prices in
          
Significant
  
         
Active Markets for
    
Significant Other
    
Unobservable
  
   
Fair Value at
    
Identical Assets
    
Observable Inputs
    
Inputs
  
Description
  
February 28, 2015
    
(Level 1)
    
(Level 2)
    
(Level 3)
  
Assets
Equity Securities
                        
Common Stock (a)
   $ 76,261,170     $ 76,261,170     $ -     $ -  
Master Limited
      Partnerships and
      Related
      Companies (a)
     48,334,242       48,334,242       -       -  
Total Equity Securities
     124,595,412       124,595,412       -       -  
Notes
        Senior Notes(a)
     36,246,750       -       36,246,750       -  
Total Notes
     36,246,750       -       36,246,750       -  
 
 
 
 
 
                         
Other
                        
      Short Term
            Investments (a)
     2,716,825       2,716,825       -       -  
Total Other
     2,716,825       2,716,825       -       -  
Total
   $ 163,558,987     $ 127,312,237     $ 36,246,750     $ -  


(a)  
All other industry classifications are identified in the Schedule of Investments.  The Fund did not hold Level 3 investments at any time during the period ended February 28, 2015.

Transfers into and out of each level are measured at fair value at the end of the fiscal period.  There were no transfers between any levels during the period ended February 28, 2015.

Derivative Financial Instruments

The Fund did not hold any derivative instruments during the period ended February 28, 2015.

 
 
 
 
 
Item 2. Controls and Procedures.
 
(a)  
The Registrant’s President and Treasurer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).

(b)  
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.


Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).  Filed herewith.
 

 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)                 The Cushing Renaissance Fund                           

 
By (Signature and Title)         /s/ Daniel L. Spears                                    
Daniel L. Spears, President

Date               April 23, 2015                                                                          



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)          /s/ Daniel L. Spears                                   
Daniel L. Spears, President

Date               April 23, 2015                                                                          

 
By (Signature and Title)        /s/ John H. Alban                                            
 John H. Alban, Treasurer

Date               April 23, 2015