Short and Ultrashort Bond Funds Arbitration


Fixed-income and bond strategies used to be considered the “conservative’s conservative” investment. But that was all before Wall Street introduced a toxic mix of products and securities that introduced highly speculative, illiquid assets to this normally calm market for investors.

Investors have suffered the brunt of losses from short and ultra short bond funds that were allegedly marketed as conservative but were anything but. Masking themselves as “cash equivalents,” because fund managers invest in only short term bonds, investors have experienced large losses and filed claims with Zamansky LLC to recover losses due to the fraudulent sale of these funds.

While some of the blame lies with rating agencies that gave coveted AAA ratings to many bonds tied to subprime and Alt-A mortgages, brokers and investment advisors have a fiduciary responsibility to only recommend investments that are suitable to their clients’ risk profile. Investments in short and ultrashort bond funds likely were not suitable for a great many of the investors who ended up purchasing them.

Among the short and ultrashort bond funds Zamansky LLC is investigating are:

  • Fidelity Ultra-Short Bond Fund (FUSFX)
  • Evergreen Ultra Short Opportunities Fund (EUBAX)
  • Van Kampan Limited Duration Fund (ACFMX)
  • UBS Absolute Return Bond Fund (BNRAX)
  • Morgan Stanley Institutional Fund Trust (MPLDX)
  • Metropolitan West Strategic Income Fund (MWSTX)
  • Principal Investors Fund Inc (USBIX)
  • Charles Schwab Plus Select (SWYSX)
  • Charles Schwab Yield Plus Fund (SWYPX)

Zamansky LLC offers free consultation to the investors in the funds and all potential victims of securities related matters.