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Victory Floating Rate Fund Investigation

Have you suffered losses investing in Victory Floating Rate Fund? If so, The White Law Group may be able to help.

Victory Floating Rate Fund is an open-end fund incorporated in the USA. The Fund seeks a high level of current income. The Fund invests in in floating rate loans and other floating rate investments.

What is a floating rate fund?

A floating rate fund is a mutual fund that invests in financial instruments with a variable or floating interest rate. A floating rate fund invests in bonds and debt instruments whose coupons fluctuate in line with the underlying level of interest rates, as opposed to fixed-rate coupons.

When interest rates are low, fixed-income investors are often searching for creative ways to increase their income.

But investors should beware, some floating-rate funds allow you to purchase shares daily, but will only allow you to redeem your shares monthly or quarterly. Because they generally invest in the debt of low credit quality borrowers, floating-rate funds should be considered a riskier part of your portfolio.

Floating-rate funds usually invest at least 70-80% of their investment holdings in floating-rate bank loans. The other 20-30% of the fund’s holdings are often invested in things like cash, investment-grade and junk bonds, and derivatives.

The White Law Group is investigating the liability that brokerage firms may have for improperly recommending these funds.

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

Mutual funds are generally thought to be relatively safe investments.  However, not all mutual funds are created equal and some can be very risky.  Given the performance and liquidity risks of these funds, the possibility exists that financial advisor improperly recommended these investments and failed to adequately disclose the risk of these particular mutual funds.

If you suffered losses in a floating rate fund and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (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 Franklin, Tennessee.

For more information on The White Law Group and its representation of investors, please visit https://whitesecuritieslaw.com.

Tags: , , , , , , , , Last modified: March 25, 2019