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  811-22593


The Cushing Energy Income 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:  August 31, 2016

Item 1. Schedule of Investments.

The Cushing Energy Income Fund
SCHEDULE OF INVESTMENTS (Unaudited)
           
   
August 31, 2016
           
       
Fair
Common Stock - 65.9%
Shares
 
  
Value
Exploration & Production - 62.8%
        
France - 5.8%
        
Total S A
31,700
   $
1,513,675
Netherlands - 6.6%
        
Royal Dutch Shell Plc(1)
35,500
    
1,735,950
Norway - 5.2%
        
Statoil ASA(1)
88,300
    
1,381,895
United Kingdom - 6.2%
        
BP Plc(1)
48,564
    
1,644,377
United States - 39.0%
        
Anadarko Petroleum Corporation(1)
10,500
    
561,435
Chevron Corporation(1)
19,000
    
1,911,020
Devon Energy Corporation(1)
22,532
    
976,312
EOG Resources, Inc.
11,338
    
1,003,300
Exxon Mobil Corporation(1)
20,500
    
1,786,370
Noble Energy, Inc.(1)
15,000
    
517,200
Occidental Petroleum Corporation(1)
25,300
    
1,944,305
Pioneer Natural Resource Company
7,058
    
1,263,735
Synergy Resources Corporation(2)
45,000
    
294,750
         
16,534,324
Midstream - 3.1%
        
United States - 3.1%
        
Targa Resources Corporation
18,476
    
805,184
         
Total Common Stocks (Cost $17,775,682)
     $
17,339,508
         
Master Limited Partnerships and Related Companies - 29.4%
        
Crude Oil & Refined Products - 5.5%
        
United States - 5.5%
        
NuStar Energy, L.P.
15,900
   $
 763,200
Rose Rock Midstream, L.P.(1)
27,000
    
678,240
         
1,441,440
Large Cap Diversified - 8.8%
        
United States - 8.8%
        
Energy Transfer Partners, L.P.(1)
20,888
    
834,267
ONEOK Partners, L.P.
19,200
    
744,000
Williams Partners, L.P.(1)
19,500
    
742,950
         
2,321,217
Natural Gas Gatherers & Processors - 1.9%
        
United States - 1.9%
        
EnLink Midstream Partners, L.P.
29,000
    
511,850
         
Propane - 3.2%
        
United States - 3.2%
        
NGL Energy Partners, L.P.(1)
46,943
    
851,546
         
 
 
Shipping - 8.0%
        
Republic of the Marshall Islands - 8.0%
        
GasLog Partners, L.P.
48,000
    
952,320
Golar LNG Partners, L.P.
59,000
    
1,145,780
         
2,098,100
Upstream - 2.0%
        
United States - 2.0%
        
Dorchester Minerals, L.P.(1)
18,223
    
271,340
Mid-Con Energy Partners, L.P.
116,279
    
254,651
         
525,991
         
Total Master Limited Partnerships and Related Companies (Cost $8,553,188)
     $
  7,750,144
         
Fixed Income - 10.2%
        
Exploration & Production - 10.2%
        
United States - 10.2%
        
Continental Resources, Inc., 3.800%, due 06/01/2024
500,000
   $
453,750
EV Energy Partners, L.P., 8.000%, due 04/15/2019(1)
2,000,000
    
1,250,000
Range Resources Corporation, 5.000%, due 03/15/2023
500,000
    
496,250
SM Energy Company, 6.125%, due 11/15/2022
500,000
    
488,750
Total Fixed Income (Cost $3,231,710)
     $
2,688,750
         
Short-Term Investments - Investment Companies - 2.2%
        
United States - 2.2%
        
Fidelity Government Portfolio Fund - Institutional Class, 0.01%(3)
146,628
   $
   146,628
First American Prime Obligations Fund - Class Z, 0.01%(3)
146,628
    
146,628
Morgan Stanley Institutional Liquidity Funds - Government Portfolio, 0.27%(3)
146,628
    
146,628
STIT-Government & Agency Portfolio, 0.28%(3)
146,628
    
146,628
Total Short-Term Investments - Investment Companies (Cost $586,512)
     $
  586,512
         
Total Investments - 107.8% (Cost $30,147,092)
     $
28,364,914
Liabilities in Excess of Other Assets - (7.8%)
      
(2,040,728)
Net Assets Applicable to Common Stockholders - 100.0%
     $
 26,324,186
           
(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 August 31, 2016.  As such, it is classified as a non-income producing security as of August 31, 2016.
        
(3) 
Rate reported is the current yield as of August 31, 2016.
        



Tax Basis

The cost basis of investments for federal income tax purposes at August 31, 2016 was as follows*:
 
Cost of investments 
  
$
30,457,739
  
Gross unrealized appreciation        
    
977,413
  
Gross unrealized depreciation    
    
(3,070,238
)
Net unrealized depreciation 
  
$
(2,092,825
)

* The above table only reflects tax adjustments through November 30, 2015.  For the previous fiscal year’s federal income tax information, please refer to the Notes to Financial Statements section in the Cushing Energy Income Fund’s (the “Fund”) most recent semi-annual or annual report.

Fair Value Measurements
Various inputs that are used in determining the fair value of the Fund’s 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
  
August 31, 2016
    
(Level 1)
    
(Level 2)
    
(Level 3)
  
Assets
Equity Securities
                        
Common Stock (a)
  
$
17,339,508
    
$
17,339,508
    
$
-
    
$
-
  
Master Limited
     Partnerships and
     Related
     Companies (a)
    
7,750,144
      
7,750,144
      
-
      
-
  
                                 
Total Equity Securities
    
25,089,652
      
25,089,652
      
-
      
-
  
Notes
        Senior Notes(a)
    
2,688,750
      
-
      
2,688,750
      
-
  
 
 
Total Notes
    
2,688,750
      
-
      
2,688,750
      
-
  
Other
                                
Short-Term
      Investments
    
586,512
      
586,512
      
-
      
-
  
Total Other
    
586,512
      
586,512
      
-
      
-
  
Total
  
$
28,364,914
    
$
25,676,164
    
$
2,688,750
    
$
-
  

(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 August 31, 2016.

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 August 31, 2016.

Item 2. Controls and Procedures.
(a) The Fund’s President and Treasurer have concluded that the Fund’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 Fund’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 Fund’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Fund’s internal control over financial reporting.


Item 3. Exhibits.
Separate certifications for each principal executive officer and principal financial officer of the Fund 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 Fund has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)       The Cushing Energy Income Fund                                      

 
By (Signature and Title)          /s/ Jerry V. Swank                                           
Jerry V. Swank, President & Chief Executive Officer
 
Date            10/21/2016                                                                                        
 


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 Fund and in the capacities and on the dates indicated.

By (Signature and Title)          /s/ Jerry V. Swank                                           
Jerry V. Swank, President & Chief Executive Officer

Date            10/21/2016                                                                                        

 
By (Signature and Title)          /s/ John H. Alban                                           
John H. Alban, Treasurer & Chief Financial Officer
 
Date            10/21/2016