Haselkorn & Thibaut has opened an investigation into potential unsuitable investment recommendations made by financial advisors at Osaic Wealth and Stifel Nicolaus & Company regarding the Easterly ROCMuni High Income Municipal Bond Fund. If you invested in this fund through either firm and suffered losses, you may have legal options to recover your investment.
Understanding the Easterly ROCMuni High Income Municipal Bond Fund Situation
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The Easterly ROCMuni High Income Municipal Bond Fund (ticker: RHMHIX) experienced a dramatic decline of more than 50% in June 2024, leaving investors with substantial losses. According to recent reports, the fund’s net asset value dropped to just $2.95 per share, devastating portfolios of investors who trusted their financial advisors’ recommendations.
What makes this situation particularly concerning is that many bonds within the fund were not backed by municipalities like states or local governments, as investors might have expected from a municipal bond fund. Instead, these were bonds issued by small companies for speculative projects, carrying significantly higher risk than traditional municipal bonds.
Key Red Flags Investors Should Have Been Warned About
Several warning signs should have prompted financial advisors to exercise caution before recommending this investment:
| Red Flag | What It Means for Investors |
|---|---|
| Lack of Liquidity | Many bonds in the fund lacked a liquid market, making it difficult to sell when needed |
| High-Risk Classification | The fund contained speculative, high-risk bonds unsuitable for conservative investors |
| Poor Credit Ratings | Many holdings had below-investment-grade ratings, indicating higher default risk |
| Misleading Name | Despite “Municipal Bond” in its name, many holdings weren’t traditional municipal bonds |
Who May Have Been Affected
The impact of this fund’s collapse appears particularly severe for elderly investors and those seeking conservative income investments. One reported case involves an 84-year-old widow who lost more than 35% of her savings after purchasing the fund just days before its dramatic decline. This highlights a troubling pattern where advisors may have recommended unsuitable investments to vulnerable clients.
If you or a loved one invested in the Easterly ROCMuni High Income Municipal Bond Fund through Osaic Wealth or Stifel Nicolaus, you’re not alone. Many investors trusted their advisors’ recommendations without being properly informed about the significant risks involved.
Understanding Your Rights as an Investor
Financial advisors have a duty to recommend investments that are suitable for their clients’ financial situations, risk tolerance, and investment objectives. When advisors recommend high-risk investments to conservative investors or fail to adequately explain the risks involved, they may be held liable for resulting losses.
Key factors that determine suitability include:
- Your age and retirement timeline
- Your financial goals and needs
- Your risk tolerance and investment experience
- Your overall financial situation
- The concentration of risky investments in your portfolio
Steps to Take If You Suffered Losses
If you invested in the Easterly ROCMuni High Income Municipal Bond Fund and suffered losses, consider taking these important steps:
- Gather your investment documents, including account statements, confirmations, and any communications with your advisor
- Document your losses by comparing your initial investment to current values
- Review your investor profile to determine if this investment aligned with your stated objectives
- Check your advisor’s record on FINRA BrokerCheck for any past complaints or regulatory actions
- Seek professional legal guidance to understand your options for recovery
Time May Be Limited to Take Action
Investment loss claims are subject to statutes of limitations, which means there are deadlines for filing claims. The sooner you act, the better positioned you’ll be to potentially recover your losses. Additionally, important documents and evidence may become harder to obtain as time passes.
How Haselkorn & Thibaut Can Help
With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has helped investors nationwide recover millions of dollars in losses from unsuitable investment recommendations. The firm operates on a “no recovery, no fee” basis, meaning you don’t pay unless they successfully recover funds for you.
The experienced attorneys at Haselkorn & Thibaut understand the devastating impact that investment losses can have on your financial security and peace of mind. They work diligently to investigate each case, gathering evidence and building strong claims to help investors seek the recovery they deserve.
Get Your Free Consultation Today
If you invested in the Easterly ROCMuni High Income Municipal Bond Fund through Osaic Wealth or Stifel Nicolaus and suffered losses, don’t wait to explore your legal options. Contact Haselkorn & Thibaut today at 1-888-885-7162 for a free, confidential consultation. Their experienced team will review your situation, explain your rights, and help you understand the best path forward for potentially recovering your investment losses.
Remember, you trusted your financial advisor to act in your best interests. When that trust is violated through unsuitable investment recommendations, you have the right to seek recovery. Call 1-888-885-7162 now to take the first step toward protecting your financial future.
