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The Regions Morgan Keegan Select Bond Fund
The Regions Morgan Keegan Select Intermediate Bond Fund “RIBCX” is an intermediate term bond fund which seeks income with capital appreciation as a secondary objective. This fund was advertised to invest primarily in investment grade intermediate term bonds. Based on information and belief, this intermediate bond fund was sold to be a low risk investment. We have talked to clients who were told that the risk of principal loss was virtually non-existent and that investment in this mutual fund was appropriate for the most conservative investment objective. Some investors have replaced CD and Money Market investments with this bond fund.
Unfortunately, this intermediate bond fund became over-concentrated in asset backed and mortgage backed securities. Particularly disturbing is the fact that by 3/31/07 this intermediate bond fund had approximately $240 Million invested in collateralized debt obligations. In recent months collateralized debt obligations and many asset backed securities have come under increasing pressure as rating agencies reevaluate their rating and scrutinize the risks of their underlying investments.
If you are an investor in a Morgan Keegan intermediate bond fund and have sustained significant losses in that fund we encourage you to contact us immediately so we can evaluate the facts and circumstances surrounding how those investments were presented to you and the reasons why you believed this investment was appropriate for your investment portfolio.†
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† Your communication with us through this web site may not be considered as privileged or confidential and you may not send us confidential information through this web site unless you have spoken to one of our attorneys and obtained authorization to do so. Maddox, Hargett & Caruso, P.C. is an association of attorneys.