When investors placed funds in The Ultra Short Fund (Nasdaq: AULTX), managed by The Asset Management Fund (“AMF”), they believed their funds were safely on the sidelines in a money market alternative. Later surprised by substantial losses in this fund, many now seek legal representation.
On its website, AMF describes itself as a no-load mutual fund complex managed by Shay Assets Management, Inc., a privately-held investment adviser registered with the Securities and Exchange Commission (“SEC”). The AMF Funds are distributed by Shay Financial Services, Inc., a member of FINRA and SIPC. Shay Asset Management’s corporate headquarters are located in Chicago, Illinois.
The Ultra Short Fund’s objective is listed as “current income with a very low degree of share-price fluctuation.” However, the fund has declined more than 15% year to date. For investors seeking modest income and very low degree of price fluctuation, such losses are unacceptable, said Kirk G. Smith, a partner of the law firm Shepherd Smith Edwards & Kantas LTD LLP (SSEK).
According to public disclosures the Fund was heavily invested in Adjustable Rate Mortgages (“ARMs”), specifically “hybrid ARMs” and “LIBOR ARMs.” Considering the credit crunch over the past year, investors question why they were led to believe their funds were invested into a low-risk conservative fund while the fund’s managers were investing the assets into esoteric high-risk products such as hybrid ARMs? Furthermore, the fund did not begin to register its serious decline until May of this year, more than a year after the start of the upheaval in the financial markets.
“My law firm is currently assessing the legal position of those who invested in this fund,” said Smith, “we have represented investors in more than 1,000 cases over the last 18 years and recovered over $100 million for our clients.” He adds that “SSEK is unique because our team of attorneys, consultants and staff has more than 100 years of combined experience in the securities industry and in securities law.”
SSEK represents clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the American Arbitration Association (AAA) and in private arbitration actions. Those seeking additional information on The Ultra Short Term Fund and similar investments should contact SSEK to arrange a free consultation with experienced securities attorney Kirk Smith.