New York, NY (Law Firm Newswire) January 19, 2016 - Zamansky LLC announces that it is investigating the Waddell and Reed’s Ivy High Income Fund for excessive risk and lack of disclosure.
The Ivy High Income Fund is a high yield debt mutual fund that is registered under the Investment Company Act of 1940. It is managed by a subsidiary of Waddell & Reed Financial Inc., a public company with over $71 billion under management, and has retail and institutional share classes (Fund symbols: WHIAX, WHIBX and WRHIX).
On December 15, 2015, Bloomberg News reported that Waddell & Reed Financial Inc., whose shares plunged 7.5 percent on Monday, said in a statement that its Ivy High Income Fund has almost half of its bond holdings in the CCC category. Forty-seven percent of the assets are rated BBB to B. The Ivy High Income Fund is trading at $6.86 down 20% over the past two years.
According to Jake Zamansky, securities fraud attorney, the Ivy High Income Fund has substantial holdings of the riskiest and most illiquid assets. In this market, it should be viewed as a high risk and speculative investment by retail investors, he says.
Zamansky states that the Fund has also received numerous investor redemptions this past year. To meet the redemptions, the Fund has likely sold the most liquid and highest quality assets in its portfolio, leaving existing investors stuck with the riskier and lower quality assets that could not be sold, he states.
We are examining whether the Fund has violated any securities laws in its disclosures to investors, or its management of the Fund and its handling of liquidity and redemptions.
Zamansky also cautions investors to review their 401(k) plans, retirement plans, savings plans, variable annuities or other financial products for the Fund.
What Ivy High Income Fund Investors Can Do
If you are an investor in the Ivy High Income Fund, and wish to have your investment reviewed or to discuss your legal rights, you may, without obligation or cost to you, email [email protected] or call the law firm at (212) 742-1414.
About Zamansky LLC
Zamansky LLC is a leading investment fraud law firm specializing in securities, hedge fund and ERISA class action litigation, and FINRA securities arbitration. We are investment fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.
To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.
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Jake Zamansky, 212-742-1414