Smiley Bishop & Porter LLP has represented a number of individual and institutional investors who bought shares of Morgan Keegan’s RMK High Yield Bond Funds. RMK Funds were marketed as low risk investments, despite a high concentration in subprime mortgage-backed securities and collateralized debt obligations. A particular problem was that the funds invested in low level tranches which generate high yield but have a high risk of loss. It has been alleged that Morgan Keegan did not adequately disclose risks associated with the Funds’ holdings. The Funds realized significant losses beginning in 2007.
The RMK Funds in question are the Select High (MKHIX), Select Intermediate (MKIBX), Advantage Income Fund (RMA), Strategic Income (RSF), RMK High Income (RMH), and the Multi-Sector High Income (RHY). The remaining funds have been renamed “Helios” and reportedly use a very different investor strategy than when controlled by RMK. The Select High and Select Intermediate Funds are now defunct.
Claims have centered on Morgan Keegan’s sales and marketing efforts of the RMK Bond Funds, as well as the suitability of the investments. The collapse of the Funds has generated SEC, state, and FINRA regulatory complaints, class-action suits, and hundreds of arbitration claims. Smiley Bishop & Porter LLP has successfully represented several claimants in obtaining arbitration awards to recover their losses.
If you believe you have suffered losses because of these products, please contact Smiley Bishop & Porter LLP to discuss your rights at 770-829-3850 or toll-free (800) 697-4514. Smiley Bishop & Porter LLP represents individual and institutional investors in securities arbitration and business litigation. The firm focuses on cases involving defrauded investors, suitability claims, and mismarketeted investment products. Smiley Bishop & Porter LLP is available for a free initial consultation. Please visit us at www.sbpllplaw.com to obtain additional information.
