Unsuitable Recommendations Of Cushing Royalty & Income Fund Shares May Give Rise To Investor Claims

by Gray on June 15, 2015

in Closed-End Funds,Royalty Trusts

Cushing Royalty & Income Fund (NYSE:SRF), an exchange-traded fund that traded at $25 in February 2012 ,currently trades at less than $5. It is a leveraged fund which invests in oil and gas royalty trusts that was reportedly sold in some cases to elderly and conservative retirees who did not understand the risky nature of the fund. The fund is believed to have lost value due to drops in the prices of oil and gas. In addition to the risky nature of this investment, the fees and commissions associated with its sale are believed to have exceeded 6% in some instances.

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The Fund describes itself as a non-diversified, closed-end management investment company, with an investment objective of seeking a high total return with an emphasis on current income, that seeks to provide shareholders with a tax-efficient vehicle to invest in a portfolio of energy-related U.S. royalty trusts, exploration and production master limited partnerships.
Cushing & Royalty Income Fund was underwritten by these broker-dealers

• Stifel, Nicolaus & Company

• RBC Capital Markets

• Oppenheimer & Co.

• Robert W. Baird & Co.

• BB&T Capital Markets, a division of Scott & Stringfellow

• Ladenburg Thalmann & Co.

• Wunderlich Securities

• Maxim Group
Customers of these firms may have had the Cushing Royalty & Income Fund recommended to them as part of the initial distribution of shares.
Brokers and financial advisors are required to make investment recommendations that are consistent with their clients’ risk tolerance, net worth, investment objectives and experience in the market. However, high sales commissions can lead brokers and financial advisors to disregard these responsibilities and recommend higher-risk products that also carry high commissions.

If you have suffered significant losses as a result of unsuitable recommendations of Cushing Royalty & Income Fund or another oil and gas-linked investment by a stockbroker or financial advisor, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact an investor rights attorney at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

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