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.
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