December 11, 2015 Comments (0) Blog, Securities Fraud

Recovery of IPath S&P MLP ETN investment losses

(Last Updated On: December 11, 2015)

Have you suffered losses in IPath S&P MLP ETN?  If so, the securities attorneys of The White Law Group may be able to help you recover those losses from the brokerage firm or financial advisor that recommended the investment.

The IMLP tracks the S&P MLP Index measuring the performance of MLP stocks that are classified in the GICS Energy Sector and GICS Gas Utilities Industry.

In the United States, a master limited partnership (MLP) is a limited partnership that is publicly traded on an exchange qualifying under Section 7704 of the Internal Revenue Code. It combines the tax benefits of a limited partnership with the liquidity of publicly traded securities.

In the last few years, MLPs have become a popular way to structure energy/oil and gas investments.  According to Morningstar, from the start of 2010 to the end of 2014, a net $44 billion flowed into MLP mutual funds and exchange-traded funds.

Unfortunately for investors in these products, most oil and gas MLPs are down substantially in the last year, including the IPath S&P MLP ETN.

If your financial advisor over-concentrated your portfolio in the IPath S&P MLP ETN, you may have a viable claim to recover your losses.  Financial advisors are required to make suitable investment recommendations, accounting for your age, income, net worth, investment experience, and investment objectives.  Diversification is the key to reducing risk.  As such, over-concentrated exposure to any sector or investment (but particularly volatile industries like oil and gas which are so dependent on global demand and supply), can be unsuitable for many investors.

The White Law Group is investigating the liability that brokerage firms may have for making bad bets in the IPath S&P MLP ETN.

If you lost money investing in the IPath S&P MLP ETN and would like to discuss your litigation options, please call the securities arbitration attorneys of The White Law Group at 312/238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  For more information on the firm and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.