Easterly ROCMuni High Income Municipal Bond Fund Investor Alert

Soreide Law Group is currently investigating potential investor claims involving sales practice violations by securities brokers and financial advisors. One investment that has come under sharp scrutiny is the Easterly ROCMuni High Income Municipal Bond Fund. Marketed as a municipal bond product, the fund collapsed in mid-2025, leaving many investors with significant financial harm. The collapse has raised questions about how the fund was sold, whether its risks were properly disclosed, and if brokerage firms put their clients at undue risk.

Investors who purchased this product may have claims to recover losses. The sections below explain what the fund is, why it collapsed, and the potential violations that could support legal recovery.

What is the Easterly ROCMuni High Income Municipal Bond Fund?

The Easterly ROCMuni High Income Municipal Bond Fund—also referred to by its ticker symbols RMHIX, RMJAX, and RMVHX—was launched in 2017 as a mutual fund. Like other municipal bond funds, it was marketed to investors as a way to generate steady, tax-advantaged income. Mutual funds of this type are generally seen as less volatile than stocks, since they are tied to municipal debt obligations that are often backed by states, counties, or local governments.

The fund operated under the regulatory framework applied to mutual funds, which requires daily pricing of shares based on net asset value (NAV). Investors therefore expected transparency and accurate reporting of the value of the securities it held. For retirees and other conservative investors, this type of product was often presented as a safer way to achieve yield while avoiding the unpredictability of the stock market.

In promotional materials, the fund emphasized its focus on overlooked areas of the municipal bond market, suggesting that it could deliver higher returns by identifying income opportunities others ignored. For many, that language suggested an innovative but still relatively safe municipal bond product. Unfortunately, the reality turned out to be very different.

Concerns About the Easterly ROCMuni High Income Municipal Bond Fund

It has been alleged that the Easterly ROCMuni fund did not follow the model of a traditional municipal bond investment. According to some accounts, rather than focusing on high-quality, government-backed obligations, the fund may have invested heavily in debt securities described as junk-rated or unrated. Reports suggest that many of these were tied to speculative private projects, which were said to include things like alternative energy facilities, recycling plants, and senior-living developments. Unlike traditional municipal bonds, these instruments were reportedly not backed by a taxing authority, which commentators have suggested made them more vulnerable to default.

Sharp Decline In NAV

Observers have claimed that the risks became more visible in June 2025, when the fund was said to have experienced a sharp decline. According to market commentary, the NAV allegedly fell by more than half within days, moving from over $6 per share to under $3. Some reports further claimed that assets under management dropped from over $230 million to less than $20 million by the end of the month. Critics have argued that many investors who relied on the fund for stability may have seen large portions of their savings diminish rapidly.

Fund Pressured To Sell Illiquid Bonds At Steep Discounts

Industry publications have described one trigger as what was called a “fire sale.” According to these accounts, the fund was allegedly pressured by redemption requests to sell illiquid bonds at steep discounts. Reports claimed that securities previously valued at 70–90 cents on the dollar were liquidated for just a few cents, and that in some cases defaulted bonds were sold for almost nothing.

Since then, analysts and industry commentators have alleged that the fund may have inflated valuations, understated its concentration in illiquid securities, and failed to diversify adequately. Some reports suggested that nearly a third of the fund’s holdings were already in default as the crisis emerged, and that more than 90% of its securities lacked a rating. These allegations have led to questions from some observers about whether investors were given a fully accurate picture of the risks they faced.

Potential Sales Practice Violations

When a broker or advisor recommends an investment, they must follow strict rules designed to protect investors. The collapse of the Easterly ROCMuni fund has raised the possibility that many of these obligations were violated. Some of the most common types of misconduct in cases like this include:

• Unsuitable recommendations: Recommending speculative, high-yield bond funds to retirees or conservative investors who needed stability and preservation of capital.
• Misrepresentations or omissions: Marketing the fund as a standard municipal bond product when, in reality, it was concentrated in risky, illiquid, and below-investment-grade securities.
• Failure to conduct due diligence: Firms have a duty to investigate the securities and funds they recommend. Allegations suggest some firms may not have adequately reviewed the Easterly ROCMuni fund’s portfolio or risk structure before approving it for sale to customers.
• Failure to supervise: Brokerage firms must oversee their brokers and advisors to prevent inappropriate sales practices. Weak oversight can result in widespread harm to investors.

If you purchased this fund through a broker or financial advisor, and especially if you were led to believe it was safe or conservative, you may have grounds to pursue legal action. Claims are often brought through FINRA arbitration, which allows investors to recover losses without enduring the delays and costs of traditional court proceedings. Arbitration can provide a more direct route to holding firms accountable for misconduct.

Did You Sustain Losses By Investing in the Easterly ROCMuni High Income Municipal Bond Fund?

Did you lose money because you invested in the Easterly ROCMuni High Income Municipal Bond Fund at the recommendation of your financial advisor or broker? If so, you may be entitled to pursue compensation. Reach out to Soreide Law Group online or call (888) 760-6552 to speak with a securities attorney about your rights and options for recovery.

Soreide Law Group has represented investors nationwide in cases against brokerage firms and financial professionals. The firm works on a contingency fee basis, advancing all costs and only collecting fees if a recovery is obtained. With extensive experience in securities arbitration and litigation, Soreide Law Group has helped investors across the country recover millions in losses from unsuitable or misrepresented investments.

If you or a family member suffered losses in this fund, it is critical to seek legal advice as soon as possible. Time limits can apply to securities claims, and acting quickly may help preserve your rights. Do not assume that losses in a fund marketed as a municipal bond are simply part of “market risk.” In many cases, those losses may have been the result of sales practice violations, lack of due diligence, or failures by your broker-dealer to protect you.