January 28, 2016 Comments (0) Blog

Investor Alert: Spirit of America Energy Fund Securities Investigation

(Last Updated On: January 28, 2016)

Have you suffered losses investing in the Spirit of America Energy Fund (ticker SOAEX)?  If so, the securities attorney of The White Law Group may be able to help you recover those losses through a FINRA arbitration claim against the brokerage firm that recommended the investment.

The Spirit of America Funds were created exclusively for clients of David Lerner & Associates.  The Spirit of America Energy Fund is an open-end fund incorporated in the USA. According to Bloomberg, the Fund aims to provide investors long-term capital appreciation and current income. The Fund invests in a combination of securities and other assets of energy and energy related companies.  The fund has a gross expense ratio of 1.86%.

According to the Spirit of America Fund website, an investment in the Energy Fund may be suitable for intermediate to long-term investors who seek capital appreciation and attractive levels of current income through diversified exposure to securities and other assets of energy and energy related companies. Investors should be willing to accept the risks and potential volatility of such investments.

According to Morningstar, the Spirit of America Energy Fund is down over 41% in the last year.  This is not surprising since the largest holdings in the fund are energy MLPs (most of which have been crushed with the declining price of oil).  Morningstar indicates that the largest current holdings of the Spirit of America Energy Fund are MarkWest Energy Partners LP, Energy Transfer Partners LP, Calumet Specialty Products Partners LP, Enterprise Products Partners LP, Spectra Energy Partners LP.

The White Law Group continues to investigate the liability that brokerage firms may have for improperly recommending high-risk energy investments, including investments that focus on oil and gas MLPs, like the Spirit of America Energy Fund.  For more on the firm’s MLP investigations, visit here.

Brokerage firms are required to perform adequate due diligence on the investments they recommend to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

If you suffered losses investing in the Spirit of America Energy Fund or another energy investment that focuses on oil and gas MLPs and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.