RMHIX, ROCMuni High Income Municipal Bond Fund, is a junk bond fund. Many have alleged that brokers and advisors have recommended this fund to retirees and others who were not looking for speculative investments.
In June 2025, this junk bond fund lost over half of its value. This is of great concern to those recommended the fund as a source of income with low or moderate risk. Those recommended the investment likely have legal recourse against those recommending the investment as such.
Financial advisors have a duty to only recommend investments that are suitable and in the best interests of the investor. An advisor is required to know that this fund carried a high level of risk. An advisor is also responsible for knowing his/her investor which includes knowing the level of risk an investor wants and the appropriate level of risk given the investor’s circumstances.
Other funds of concern include RMJAX and RMHVX.
Please contact Jeffrey Pederson for questions concerning this post.
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