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Home > Cases > Morgan Keegan Bond Funds > SEC Requesting Information from Regions Financial over Morgan Keegan

SEC Requesting Information from Regions Financial over Morgan Keegan

Reuters reported February 27, that Regions Financial Corp said the SEC is requesting information on Morgan Keegan's mutual funds in relation to several lawsuits pending over these funds. The lawsuits are on behalf of investors who claim they were misled or not told about the funds' risks.

In 2007, several bond funds operated by Morgan Keegan lost more than 50 percent of their value due to exposure to complex debt that are often tied to mortgages and investor redemptions. According to Morningstar:

  • One Morgan Keegan fund, Select Intermediate Bond A (MKIBX), fell 50.3 percent last year, and saw assets shrink to $53 million from $342 million.
  • Another fund, Select High Income A (MKHIX), fell 59.7 percent last year, as assets plummeted to $43 million from $558 million.

The intermediate fund has fallen another 32.5 percent in 2008, while the high income fund is down 14.8 percent. Before 2007, neither had lost money in any calendar year since their creation in 1999. It is rare for bond mutual funds to suffer annual losses of that magnitude.

In the summer of 2007, our group, who individually and collectively have extensive experience in representing investors against Wall Street, formed an affiliation. Our affiliation of lawyers is actively involved in advising individual and institutional investors in evaluating their legal options when confronted with subprime and other mortgage related investment losses. Contact us.


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