April 7, 2018 Comments (0) Blog, Current Investigations

MainGate MLP Fund – Investigating Potential Claims

MainGate MLP Fund

Securities Investigation – MainGate MLP Fund

Are you concerned about your investment in MainGate MLP Fund? If so, the securities attorneys at The White Law Group may be able to help you.

MainGate MLP Fund is a mutual fund that invests in “Master Limited Partnerships (MLPs) which concentrate investments in the natural resource sector and are subject to the risks of energy prices and demand and the volatility of commodity investments.”

According to its website, “Mutual fund investing involves risk. Principal loss is possible. The MainGate MLP Fund is nondiversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. “

Further, “Damage to facilities and infrastructure of MLPs may significantly affect the value of an investment and may incur environmental costs and liabilities due to the nature of their business. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment. Investments in smaller companies involve additional risks, such as limited liquidity and greater volatility.”

Difference between MLPs & MLP Funds

Master Limited Partnerships (MLPs) are exchange-traded investments that are focused on exploration, development, mining, processing, or transportation of minerals or natural resources.  MLPs hold cash-generating assets such as oil and gas properties or pipelines.  MLPs have certain characteristics that can make them attractive to some investors, including partnership tax consequences, limited liability to investors for the MLP’s debts, and anticipated consistent distributions of cash.

However, like all investments, MLPs have risks investors should consider before making an investment decision.

MLP funds are mutual funds that focus on companies that use the master limited partnership (MLP) tax structure. Typically, these firms will be in the energy industry or in another natural resource industry. As MLPs, the companies are required to pay out a high percentage of their cash flows to investors as distributions. These funds can be indexed or actively managed.

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended investments such as MainGate MLP Fund to investors.

Broker dealers have a responsibility to perform adequate due diligence on every investment before recommending them to investors. If you are concerned about your investment in the MainGate MLPFund, please contact the securities attorney of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC 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 White Law Group, visit https://www.whitesecuritieslaw.com.