Regions Morgan Keegan is defending hundreds of arbitration lawsuits regarding the funds, which were backed by risky mortgage-related assets. Investors allege the funds were represented as low-risk securities, but when the mortgage crisis hit beginning in the middle of 2007, the funds suffered staggering and sudden losses. Some funds dropped between 62 and 82 percent almost overnight.

After Hyperion aquired the RMK funds, several of them were rebranded under the Helios name. Funds set for liquidation are Helios Select High Income (HIFAX), Helios Select Intermediate Bond (HSIBX) and Helios Select Short Term Bond (MSBIX).

Source: Morningstar Fund Times

SOURCE: Morgan Keegan Investment Fraud › Helios bond funds set for liquidation

The Memphis native best known for his Major League career with the St. Louis Cardinals wanted to work with his hometown brokerage firm when he selected Morgan Keegan – based in Memphis and owned as a subsidiary of Birmingham, Ala. based Regions Financial Corp. – for his investments, the News says. However, his funds were placed in high-risk funds, resulting in unusually fast and severe losses.

The troubled funds were shifted to Hyperion Brookfield Asset Management in the summer of 2008, and the company has rebranded the funds under the Helios name.

Although McCarver received much less than his reported losses, the News quotes him as being happy with the result of the case, saying, “Morgan Keegan was found liable. I am delighted.”

SOURCE: Morgan Keegan Investment Fraud › McCarver gets $100,000 in RMK claim

The deal is pending approval by Regions shareholders, but if approved will remove the financial company from the mutual funds business entirely, according to the Journal.

This news follows on the heels of other efforts by Regions to divest itself of investment funds following a series of lawsuits filed last year by investors who claimed RMK investment funds had been misrepresented. The suits allege investment portfolios were presented as low risk, when in actuality they were tied to the high-risk subprime mortgage market. Investors suffered steep and immediate losses as a result.

Just a few months ago, Regions transferred management of a group of its bond funds from Morgan Keegan to Hyperion-Brookfield Asset Managment, Inc., and most of those funds changed to the brand name Helio to reflect the new brand name. Six of those funds also received new trading symbols.

According to the Birmingham Business Journal, the transaction with Pioneer involves a separate group of funds than those now managed by Hyperion.

Bloomberg recently reported that Regions Financial Corp. reported a 23-year-low in New York trading after reporting a record $6.24 billion loss. According to the news report, the losses are blamed largely on bad debt resulting from the collapse in the mortgage-lending industry, with a record number of loan defaults and foreclosures.

SOURCE: Morgan Keegan Investment Fraud › Regions selling off RMK Select Funds

Hyperion took over management of the Morgan Keegan investment arm of Regions after several funds suffered steep and sudden drops in value as a result of their connection to the subprime mortgage securities market.

On Dec. 30, the Daily News announced that Hyperion had changed the names of seven former RMK investment funds, now calling them Helios funds, reflecting the change in management, and of course removing the stigma of the RMK investment debacle.

Sales of the Select Short Term Bond Fund shares to new investors will stop effective Jan. 23.

SOURCE: Morgan Keegan Investment Fraud › RMK fund set for liquidation

The Commercial Appeal quotes Marion Hayes, a spokesperson for Hyperion, as saying, “It’s not right for these funds to be named Regions Morgan Keegan funds when they’re managed by us.”

The change affects four closed-end funds and three open-end funds. Hyperion took over management of the Morgan Keegan investment arm from Regions after several funds suffered steep and sudden drops in value as a result of their connection to the subprime mortgage securities market.

Following is a list of the changes:

Former RMK funds:
Helios Advantage Income Fund: From RMA to HAV
Helios High Income Fund: From RMH to HIH
Helios Multi-Sector High Income Fund: From RHY to HMH
Helios Strategic Income Fund: From RSF to HSA

Former Regions-Morgan Keegan Select funds:
Helios Select High Income Fund: From MKHIX to HIFAX
Helios Select Intermediate Income Fund: From MKIBX to HSIBX
Helios Select Short Term Bond Fund: MSBIX, no change

SOURCE: Morgan Keegan Investment Fraud › RMK funds change names to reflect new Helios brand

Hyperion is working to reposition and revamp the funds, which faltered badly as a result of ties to subprime mortgage lending. It is estimated that investors, who were promised low-risk funds but were instead placed into high-risk securities, suffered losses up to 90 percent of the value of their funds when the mortgage lending crisis caused value of the funds to plummet.

According to the Commercial Appeal, the new fund managers are beginning by evaluating each portfolio individually, and trying to determine whether there is any chance the fund in question could rebound. Hyperion will then work to secure better investments for the funds, hoping to see an improvement when the overall economy improves.

Hyperion fund managers have cut dividends for all seven funds, while purchasing promising high-yield corporate bonds, with a goal of improving the long-term financial picture by developing capital growth, according to the Commercial Appeal.

SOURCE: Morgan Keegan Investment Fraud › New MK fund managers tight-lipped

According to a report in the Memphis Commercial Appeal, Hyperion Brookfield, based in New York, NY, took over the management of three open-end funds and four closed-end funds that had been managed by Morgan Asset Managment, an arm of Morgan Keegan, which is based in Memphis. Morgan Asset Management is owned by Regions Financial Corp., based in Birmingham, Ala.

The Commercial Appeal reports that Hyperion investors will reposition the funds and revamp the portfolios in an effort to revive them. New investments will focus on investment grade corporates and high-yield securities, according to Dana Erikson, who is now portfolio manager, the Appeal says.

Hyperion Brookfield has scheduled a conference call for shareholders on Sept. 4 to discuss specific plans of the portfolio restructuring.

SOURCE: Morgan Keegan Investment Fraud › MK funds get new asset manager