Morgan Keegan Bond Funds FAQs for Investors
Morgan Keegan Bond Funds: What Investors Need To Know
- Is it too late to recover money lost in my Morgan Keegan bond funds?
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No. As a rule, limitations periods exist that require investors to file a claim within a certain period of time. Statutes of limitations vary depending on state law and the location of the individual client. Please contact an attorney for further details about the eligibility of your potential claim.
- What is the history and status of the Morgan Keegan funds today?
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In 2007, investors in seven Morgan Keegan mutual funds experienced massive financial losses because the company's management either misrepresented or failed to disclose relevant facts about the funds, including the asset makeup, the inherent risk factors and how the securities in the funds were valued.
The seven mutual funds are collectively known as the RMK funds, and include four Regions Morgan Keegan closed-end funds: Advantage Income Fund, High Income Fund, Multi-Sector High Income Fund and Strategic Income Fund; and three open-end funds: Regions Morgan Keegan Select Short Term Bond Fund, Intermediate Bond Fund and High Income Fund.
Upon investigation, the RMK funds were highly concentrated in subprime mortgage-backed securities and other exotic investments such as collateralized debt obligations. The funds were marketed and sold to investors, however, as “conservative investments.”
The overexposure to toxic subprime-related securities, in concert with other undisclosed risks, caused the majority of the RMK funds to lose more than 75% of their value in 2007. - Is there a minimum amount of losses to hire a lawyer to file an arbitration claim with the Financial Industry Regulatory Authority (FINRA) against Morgan Keegan?
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Yes. We are pursuing investor claims ranging from minimum losses of $30,000 to more than $1 million.
- Does it matter how I purchased my shares of the Morgan Keegan funds?
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If you purchased a Morgan Keegan bond fund through a Morgan Keegan stockbroker, he or she, as well as the company of Morgan Keegan had many legal duties to you. If your stockbroker recommended the fund, did he or she disclose and explain the potential risks to you? Once we review your individual situation, we can provide a more accurate assessment of the viability of your case.
- I have a good relationship with my stockbroker, and don't want to cause trouble. However, I also want to recover my Morgan Keegan investment losses. Is there a way to do both?
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Yes. We do not name stockbrokers in Financial Industry Regulatory Authority (FINRA) arbitration claims.
A stockbroker essentially has two primary duties. He or she needs to assess what investments are appropriate for clients and then select the investments that those requirements dictate. Stockbrokers also must fully disclose and discuss all risks associated with the appropriate investments. It is a reasonable assumption that the information and recommendations a broker provides his or her clients will be accurate and true.
At Wall Street brokerages, however, individual brokers do not research your funds; rather, they are told by management which funds to sell like the Morgan Keegan funds. In several instances, brokers have told us that Morgan Keegan did not disclose the true risks regarding the funds to them.
To date, the arbitration filings handled by our firm on behalf of investors in the Morgan Keegan funds do not target individual stockbrokers.
- I was told that Morgan Keegan investments had no mortgage related or subprime risks. I would never have put my money in this fund if I had known this. What can I do?
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Many investors in Morgan Keegan funds were retirees - individuals who put their money into the funds because they thought it was a safe place to grow their savings. Unbeknownst to investors, however, the funds' management exposed a significant portion of the funds' assets to risky and toxic mortgage-backed securities. If you believe you were not made aware of the risks associated with a particular RMK fund, contact us today.
- Does it cost me any money to file a lawsuit?
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First and foremost, our team of lawyers will work with you to review your situation. You are not responsible for any fees or expenses unless a recovery is obtained. To review your case, call us at 866-827-6537.
- Where can I find articles or additional information about the Morgan Keegan bond funds?
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This website offers a comprehensive library of articles and information on the Morgan Keegan bond funds, as well as information on other investment-related issues.
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