Easterly ROCMuni High Income Fund (RMJAX, RMHIX, RMHVX) Losses

Altamirano PLLC is investigating claims involving the Easterly ROCMuni High Income Fund (RMJAX, RMHIX, RMHVX). Marketed as a municipal bond fund, Easterly ROCMuni collapsed after concentrating in junk-rated debt, distressed projects, and leveraged municipal securities. Investors who were promised safe, tax-exempt income instead faced steep losses. If you invested in Easterly ROCMuni through a brokerage firm or financial advisor, you may be able to pursue recovery through FINRA arbitration.

Fund Background

The Easterly ROCMuni High Income Fund promised municipal bond exposure with a high-income focus. But the portfolio carried far more risk than most investors realized. According to the fund’s strategy disclosures, Easterly ROCMuni:

• Invested at least 80% of assets in tax-exempt municipal debt securities.
• Focused on below-investment-grade “junk bonds” and distressed credits.
• Concentrated holdings in healthcare, education, housing, transportation, and power projects.
• Used inverse floaters and other leverage structures, which magnified volatility.
• Could invest in defaulted municipal bonds, Rule 144A private placements, and other illiquid securities.
• Borrowed against credit lines to further leverage the portfolio.

These strategies exposed investors to significant risks, which may not have been adequately disclosed by brokers. The failure to disclose or explain those material risks can constitute broker negligence, exposing firms to investor claims and potential liability in FINRA arbitration.

The fund’s NAV fell sharply in June 2025 after the fund took large markdowns and sold illiquid, high-yield municipal bonds. Many investors saw their holdings drop by a large percentage in a matter of days.

A class action lawsuit over the Easterly ROCMuni Fund losses continues to move forward. The court has set February 20, 2026, as the deadline for the lead plaintiff to file an amended complaint. Defendants must file any motions by January 30, 2026, with responses due February 20 and replies due March 6, 2026.

Brokerage firms that recommended and sold the fund, including Stifel, Nicolaus & Co. and Osaic Wealth (formerly Royal Alliance Associates Inc.), have been mentioned in connection with potential investor claims.

Investor Profile Impact

Easterly ROCMuni was marketed as a municipal bond fund, but its holdings looked nothing like traditional muni portfolios. Instead of stable, investment-grade debt, the fund bought risky project bonds and layered on leverage. For retirees and conservative income investors, that mismatch was disastrous. Retail investors expecting steady tax-free income may have been unaware that the product was heavily invested in junk bonds, distressed issuers, and exotic structures that collapsed under stress or volatility. 

Potential Conflicts of Interest and Distribution Fees

Easterly ROCMuni also carried heavy distribution charges. Under Rule 12b-1, the fund’s distributor, Easterly Securities LLC, collected ongoing fees ranging from 0.25% to 1.00% of assets annually depending on share class. Class C shares in particular imposed the highest cost. On top of these fees, the fund’s distributor and adviser paid additional compensation to financial intermediaries, brokers, advisers, banks, and retirement plan administrators. These payments created conflicts of interest, rewarding firms for steering investors into Easterly ROCMuni regardless of suitability or their clients’ best interests.

For investors, this means not only were they placed into an unsuitable, high-risk product, but they were also saddled with unnecessary ongoing fees. Investors may have claims against the brokerage firms that sold the fund for:

• Regulation Best Interest (Reg BI) violations.
• Failure to supervise by brokerage firms that pushed the fund.
• Unsuitable investment recommendations under FINRA Rule 2111.

Key Risks of Easterly ROCMuni

The collapse of the Easterly ROCMuni Fund highlights several risks:

• • Speculative holdings: heavy exposure to junk-rated municipal debt.
  • Leverage: inverse floaters and credit line borrowing amplified volatility.
  • Illiquidity: positions that could not be easily sold in stressed markets.
  • Fee drag: 12b-1 fees and intermediary compensation eroded returns.
  • Concentration: bets in narrow sectors like healthcare or housing.

Why It Matters for Investors

The fund’s collapse was not just about market swings. It revealed how brokers pitched and sold Easterly ROCMuni as a municipal bond income fund while downplaying leverage, junk credit, and fees. Investors may have been steered into a product inconsistent with their goals. For example, a broker who placed a retiree into a speculative, high-risk product that did not match the client’s objectives, age, or tolerance for risk.

This collapse of a municipal bond fund marketed as safe income underscores how unsuitable products can devastate retirees and conservative investors.

Contact Altamirano PLLC About Easterly ROCMuni Claims

If you invested in the Easterly ROCMuni High Income Fund (RMJAX, RMHIX, RMHVX) and suffered losses, contact Altamirano PLLC today. Our Principal, Jorge Altamirano, has handled more than 1,500 FINRA arbitration claims and represents investors nationwide. 

Call us at (212) 220-6556 to discuss your options. We handle cases on a contingency fee basis, which means you do not owe us a legal fee unless we recover for you.

Securities claims are time-sensitive. Harmed investors are encouraged to act quickly and contact Altamirano PLLC to speak with an experienced securities arbitration lawyer about recovering losses in the Easterly ROCMuni Fund.