HMS Income Fund Inc. Decreases DRP Share Price
Are you concerned about your investment in HMS Income Fund Inc. at the recommendation of your financial advisor? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
HMS Income Fund is a publicly registered, non-traded business development company (BDC) sponsored by Hines.
According to SEC filings on April 8, HMS Income Fund Inc. announced a 14.8% decrease in the price at which it issued shares under its distribution reinvestment plan from $7.80 to $6.65 as of April 1, 2020. This comes after a similar decrease in December 2019, from $8.00 to $7.95.
A Business Development Company (BDC) is a company that invests in small and mid-sized businesses. Investors can buy shares in a BDC, and the money from their investments is used to fund the businesses. In turn, investors can profit from dividends paid on their investments, or, possibly, the sale of their shares.
Non-traded BDCs are high-risk investments. They typically have high commissions, and lack liquidity–similar to real estate investment trusts (REITs).
According to Central Trade & Transfer, a secondary market for alternative investments, shares of HMS Income fund were listed in March for $7.00/share. Shares of the fund were originally sold for $10.00 per share.
The White Law Group continues to investigate potential claims against the broker dealers that sold high risk investments, like HMS Income Fund.
Recovery of Investment Losses
Broker-dealers are required to perform adequate due diligence on any investment they recommend. They should also ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience.
Broker-dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim.
If you have suffered losses investing in HMS Income Fund, the securities attorneys at The White Law Group may be able to help you. Please call The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. To learn more about The White Law Group visit www.whitesecuritieslaw.com.