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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (89233)	8/14/2007 6:05:46 PM
From: fxfun	Respond to of 206338

Re BZP - Collateral damage? Morgan Keegan closed-end funds fall sharply Tue Aug 14, 2007 5:48PM EDT NEW YORK, Aug 14 (Reuters) - Shares of four funds from brokerage firm Morgan Keegan & Co. with investments in risky credit assets tumbled on Tuesday as a decline that started several weeks ago picked up speed. Holdings in the funds include collateralized debt obligations and other securities that can be difficult to value. By the close of trading on the New York Stock Exchange, the funds accounted for four of the day's top 10 percentage losers, with declines ranging from 14 to 17 percent. A spokesman for Morgan Keegan, part of Regions Financial Corp. (RF.N: Quote, Profile, Research), said the company had no immediate comment. An open-end mutual fund offered by Morgan Keegan, the RMK Select High Income Fund (MKHIX.O: Quote, Profile, Research), has suffered steep losses this year. Through Aug. 13, the fund is down 32 percent. While open-end funds are purchased from fund companies and sold back when redeemed, closed-end funds trade on exchanges. Closed-end funds can trade at a discount or a premium to the net asset value of the portfolio. Lawrence Jones, a Morningstar Inc. analyst who tracks the RMK open-end fund but not the closed-end funds, said that earlier this year the fund had about 15 percent of its portfolio in subprime mortgage issues. He said a recent regulatory filing suggested there were significant redemptions that could have forced the fund manager to sell securities at unfavorable prices. One of the closed-end funds, the RMK Multi Sector High Income Fund (RHY.N: Quote, Profile, Research) fell 16 percent to $6.95. According to the Web site etfconnect.com, as of March 31, that fund has 28 percent of its portfolio in corporate bonds, 24.5 percent in collateralized debt obligations, 17.5 percent in collateralized mortgage obligations, 10.6 percent in home equity loans, 8.8 percent in common stocks, 5.4 percent in equipment leasing and 5.2 percent in other areas. The RMK Strategic Income Fund (RSF.N: Quote, Profile, Research) fell 17 percent to $6.46, the RMK Advantage Income Fund (RMA.N: Quote, Profile, Research) fell 15 percent to $6.90 and the RMK High Income Fund (RMH.N: Quote, Profile, Research) fell 14 percent to $6.96. Declines in the four closed-end funds so far this year range from 55.5 percent to 58 percent. reuters.com