Once again three Morgan Keegan Bond Funds top the list of Wall Street’s worst-performing bond funds. The RMK Select Intermediate Bond Fund, High Income Fund and Short Term Bond Fund share this distinction for yet another time.
These funds have lost 84.5%, 77.6% and 50.8% respectively in the last year.
On July 29, 2008, Hyperion Brookfield Asset Management assumed the duties as asset manager of these funds. Hyperion took over for Morgan Asset Management and manager James Kelsoe.
Under the management of Kelsoe, these funds saw losses far exceeding the losses of other similar funds. The primary reason for the incredible losses was the over-exposure of the RMK funds to the subprime mortgage market.
Many investors purchased the RMK funds as safe, income-producing investments. Certainly losses of up to 84% do not constitute safe, income-producing investments.
Even with the change in management, it may take some time before the RMK bond funds loose their hold at the top of the worst-performing list.