Did your financial advisor recommend Priority Income Fund Class R2? You may be holding a high-risk investment that has lost over half its value.
Our firm is investigating potential claims of unsuitable investment recommendations regarding Priority Income Fund Class R2. Marketed to retail investors as a steady income generator, this fund is actually a complex, high-risk vehicle investing in the "equity" tranches of Collateralized Loan Obligations (CLOs)—essentially leveraged bets on the debt of lower-rated companies.
Hidden Losses in a "Non-Traded" Security
Unlike standard stocks, Priority Income Fund Class R2 is not publicly traded on a major exchange under a single ticker symbol. This lack of transparency means you won't see the price drop on a daily ticker tape, but the internal erosion of value has been severe.
As of October 31, 2025, the Fund’s estimated Net Asset Value (NAV) has plummeted to just $5.19 per share. For investors who purchased shares in 2020 (when the NAV was approx. $10.73), this represents a loss of roughly 51.6% of your principal.
The "Yield Trap" Explained
Brokers often sold this product by highlighting its massive dividend yield. Priority Income Fund Class R2 was advertised with an annualized distribution rate of 25.87% as of November 30, 2025.
- Warning: When a fund’s price drops by 50% while the yield skyrockets, it often signals a "yield trap." The high percentage is driven by the collapsing share price, and distributions may be funded by returning your own capital to you, further eroding the fund's value.
Unsuitable Advice and High Commissions
Brokers were incentivized to sell Class R2 shares by high upfront commissions—often up to 6.0% of your investment. This immediate fee puts investors in a hole from day one. If your broker failed to disclose the high risks of CLO equity or the lack of liquidity, they may have violated Regulation Best Interest. Priority Income Fund Class R2 involves significant investment risks.
Recover Your Investment Losses If you have suffered losses in Priority Income Fund, you may be entitled to recover damages through FINRA arbitration.
Contact us today for a free, confidential consultation. Call 1-888-760-6552 or visit us at securitieslawyer.com.