Easterly ROCMuni High Income Municipal Bond Fund (RMHIX) – Investor Alert
The White Law Group is investigating potential securities claims involving the Easterly ROCMuni High Income Municipal Bond Fund (Ticker: RMHIX). At least two FINRA-registered broker-dealers are believed to have recommended this fund to retail investors.
About the Easterly ROCMuni High Income Municipal Bond Fund
According to the fund’s marketing materials, the Easterly Fund was promoted as a municipal bond fund investing at least 80% of its net assets in tax-exempt debt securities. Traditionally, municipal bond funds are perceived as relatively safe investments due to their backing by state or local governments.
However, the Easterly Fund’s portfolio reportedly diverged sharply from that norm. Instead of focusing on high-quality, investment-grade municipal bonds, the fund’s holdings allegedly consisted largely of poorly rated, below investment-grade bonds — commonly referred to as “junk bonds.”
Moreover, the majority of these bonds were purportedly not backed by municipalities at all, but rather issued by small companies for speculative projects, increasing the risk profile significantly.
Fund Performance and Decline in Value
According to Morningstar.com, the Easterly Fund’s I (Institutional) share class had $15.1 million in total assets.
As of the close of trading on Wednesday, the fund’s Net Asset Value (NAV) was reported at $2.95, according to the Easterly Fund website.
For the year, the fund is reportedly down 56.3%, with most of the sharp decline occurring over just a few days in mid-June. Such a steep drop in value is highly unusual for a municipal bond fund and may be indicative of extreme volatility and elevated risk exposure.
Potential Concerns for Investors
The marketing of RMHIX as a municipal bond fund may have led some investors to believe it carried the low-risk characteristics of traditional municipal bonds. If your broker or financial advisor recommended the Easterly ROCMuni High Income Municipal Bond Fund without fully explaining its speculative nature and junk bond concentration, you may have legal options.
Brokers and advisors have a duty to recommend investments that are suitable for their clients based on risk tolerance, investment objectives, and financial situation. If they fail in this duty, they can be held liable for investment losses through FINRA arbitration.
How to Recover Losses in RMHIX
If you invested in RMHIX and have suffered significant losses, you may be able to recover damages through a FINRA arbitration claim against the brokerage firm that sold you the investment.
The White Law Group has represented thousands of investors in claims against brokerage firms for unsuitable investment recommendations, misrepresentation, and failure to conduct adequate due diligence.
FINRA Arbitration – An Alternative to Court
FINRA arbitration is a private dispute resolution process specifically designed for resolving conflicts between investors and their brokers. It is often faster and less costly than traditional litigation, and it can be used to seek recovery for losses caused by unsuitable investment recommendations or securities fraud.
Free Consultation
If you have concerns about your investment in the Easterly ROCMuni High Income Municipal Bond Fund (RMHIX), call The White Law Group at 888-637-5510 for a free consultation.
Frequently Asked Questions
1. Why did RMHIX lose so much value in 2025?
The steep decline was largely due to the fund’s concentration in risky, below investment-grade bonds that are vulnerable to default or rapid devaluation, particularly during periods of market stress.
2. Are municipal bond funds normally this risky?
No. Traditional municipal bond funds typically invest in high-quality, government-backed debt. RMHIX differed because it invested heavily in speculative “junk” municipal securities not backed by municipalities.
3. Can I sue my broker for recommending RMHIX?
While you generally cannot “sue” in court, you may be able to file a FINRA arbitration claim if your broker recommended RMHIX without properly disclosing the risks or ensuring the investment was suitable for your financial profile.
