Kayne Anderson MLP Midstream Fund (KYN) Investment Losses

Kayne Anderson MLP Midstream Fund Investigation

Have you suffered losses investing in Kayne Anderson MLP Midstream Fund? If so, the securities  attorneys at The White Law Group may be able to help you recover your losses through FINRA Arbitration.

KYN is a non-diversified, closed-end fund with an investment objective to obtain a high after-tax total return for its shareholders by investing at least 85% of our total assets in energy-related master limited partnerships and their affiliates and in other companies that operate assets used in the gathering, transporting, processing, storing, refining, distributing, mining or marketing of natural gas, natural gas liquids, crude oil, refined petroleum products or coal (collectively with MLPs, “Midstream Energy Companies”).

Unfortunately for investors, most oil and gas MLPs are down substantially in the last year. According to Yahoo Finance, the fund’s share price has declined 70% in the past year.

MLP Funds are Complex Investments

The White Law Group is investigating the liability that brokerage firms may have for recommending high risk mutual funds that invest primarily in MLPs.

Master Limited Partnerships (MLPs) are extremely complex and risky, making them better suited for institutional investors or wealthy and sophisticated retail investors.

Aggressive financial advisors may have unsuitably recommended MLP funds in an effort to chase yield. Investors who buy solely on the basis of the dividend may experience losses as the dividend is cut and the stock price declines in response.

If your financial advisor over-concentrated your portfolio, 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, can be unsuitable for many investors.

If you suffered losses investing in Kayne Anderson MLP Midstream Fund and would like to discuss your litigation options, please call The White Law Group at 888-637-5510 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 Franklin, Tennessee.  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.