Yep, it pulls air in thru the radiator to cool it. That cowling guides air from the top of the radiator into the fan.
I've had overheating problems in the past with missing fan shrouds on later model V-8s. Usually it's fine as long as the vehicle is moving. But when you start the stop n go stuff or just sitting there idling, then is when things start getting a bit overheated.
