MainStay Cushing Master Limited Partnerships and Energy Equity Funds Post Significant Losses

The securities and investment fraud attorneys at Malecki Law are interested in hearing from investors in MainStay Investments’ Cushing series Master Limited Partnerships (MLPs) and Energy Equity mutual funds.  MainStay Investments is a subsidiary of New York Life Insurance Company.

Among the MainStay Cushing portfolio of funds, a number of them declined between 33% and 57% in 2015 year to date, per Morningstar.  These funds include:

  • MainStay Cushing® Royalty Energy Inc A (CURAX)
  • MainStay Cushing® Royalty Energy Inc I (CURZX)
  • MainStay Cushing® Royalty Energy Inc Inv (CURNX)
  • MainStay Cushing® Royalty Energy Inc C (CURCX)
  • MainStay Cushing® MLP Premier I (CSHZX)
  • MainStay Cushing® MLP Premier A (CSHAX)
  • MainStay Cushing® MLP Premier Investor (CSHNX)
  • MainStay Cushing® MLP Premier C (CSHCX)

For example, CURCX, a fund that reportedly manages more than $61.2 million in assets, has had its net asset value decline significantly in the past year, from approximately $9.06 NAV in January 2015 to approximately $3.23 in January 2016, according to recent reported pricing data provided by Morningstar.  According to Morningstar data, CSHZX, a master limited partnership, is reported to manage more than 1.15 billion in assets and suffered a price decline of approximately 50% over the past year, down to approximately $10.72 in January 2016 from approximately $21.03 in January 2015.

These MainStay Cushing funds were said to have been marketed to investors and sold by financial advisors at brokerages such as Cetera Advisors LLC, Mid Atlantic Capital Corp., JPMorgan, Ameriprise Brokerage, Raymond James, RBC Wealth Management, Morgan Stanley, and Securities America Inc.

Investments in these or other MainStay Cushing funds have proven to be risky, and only suitable to certain investors.  If you were promised good returns with safety to your principal over a short investment horizon, yet were not informed of the many risks associated with energy sector investments, you may have a claim premised on suitability.

Given that MLPs and other energy sector funds are non-traditional products and typically focus on one sector with significant historical volatility, great care should be taken by an advisor to ensure that the investment is appropriate for the investor in light of their specific risk tolerance, investment objectives and other factors.  When a product is sold to an investor, despite being unsuitable for that investor, the financial advisor’s firm may be liable to the investor for those recommendations.

Investors who lost money in these investments at the recommendation of their financial advisor may be entitled to recover their losses from the brokerage house who sold it to them.  If you or a family member invested in MainStay Cushing funds, you should contact the attorneys at Malecki Law for a free consultation and to explore your legal rights and options.

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel.