Morgan Keegan Mutual Funds
Did you purchase Morgan Keegan Mutual Funds, such as the Region Morgan Keegan Select High Income Fund; Regions Morgan Keegan Strategic Income Fund; Regions Morgan Keegan Select Intermediate Bond Fund; Regions Morgan Keegan Multi-Sector High Income Fund; or the Regions Morgan Keegan Advantage Income Fund?
The law firm of Sonn & Erez has recovered monies for investors from Morgan Keegan in arbitration, including a $430,000 recovery on a net loss of $340,000, and $285,000 on a net loss of $190,000. Sonn and Erez PLC does not believe that these Morgan Keegan fund losses were caused solely by market forces, such as the banking crises or credit crises, as Morgan Keegan may contend. On July 19, 2007. Bloomberg News described James Kelsoe, the funds’ manager, as having an “intoxication” with structured financial products which “kept him from pulling out completely.” These high risk products included “collateralized debt obligations” (CDOs), “collateralized mortgage obligations” (CMOs) and “collateralized loan obligations” (CLOs). Much of the losses are related to the surging defaults and delinquencies in the loans that underlied the securities that Kelso bought.
Sonn & Erez PLC believes that investors were not told about the true risks of the fund, the extent to which the funds were invested in illiquid securities; that due to the illiquidity of some assets, the fund manager was forced to sell the lower risk assets first, thereby penalizing fund holders; that the funds were heavily invested in risky subprime loans and collateralized debt obligations; that the funds’ board of directors had a conflict of interest; that the funds, which were said to be independent with different strategies, were nearly identical in strategy, resulting in increased risk and that the pre-2006 results were attributable to their concentration in illiquid, subprime and untested investment structures. The bottom line is that it appears that investors may have been hoodwinked by Morgan Keegan.
If you believe that you may have been misled as to the risk of your Morgan Keegan mutual funds and wish to learn more about our investigation, please contact us toll free at 1-866-372-8311 or fill out the “contact us” form.
If you have information or wish to discuss your rights as an investor, contact us at 1-866-372-8311 or contact Jeff Sonn, Esq. at jsonn@sonnerez.com or Jeff Erez at jerez@sonnerez.com, or Stefan Apotheker at sapotheker@sonnerez.com.
