January 28, 2016 Comments (0) Blog

Babson Active Short Duration Bond Fund Securities Investigation

(Last Updated On: January 28, 2016)

Have you suffered losses investing in the Babson Active Short Duration Bond Fund?  If so, the securities attorneys of The White Law Group may be able to help you recover your losses from the brokerage firm that recommended the investment.

The Babson Active Short Duration Bond Fund is an open-end fund incorporated in the USA.  According to Bloomberg, the Fund seeks a high total rate of return primarily from current income while minimizing fluctuations in capital values. The Fund invests in diversified portfolio of short-term investment grade fixed income securities.

According to Morningstar, the fund currently has a leverage ratio of over 29%.  This is a surprising amount of leverage for a fund that would typically be sold as low risk.  The fund is down to $15/share from a high over $24/share in mid 2014.  While such a decline may not be unusual for certain investments, it is unusual for a bond fund.

 

The White Law Group is investigating the liability that brokerage firms may have for improperly selling the Babson Active Short Duration Bond Fund, particularly if such agents represented that the Babson Active Short Duration Bond Fund was a safe investment.

Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income.  Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.

If you suffered losses investing in the Babson Active Short Duration Bond Fund and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  The firm represents investors in FINRA arbitration claims throughout the country.  For more information on the firm, visit http://www.whitesecuritieslaw.com.