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SEC Puts the Freeze on Heartland Muni Funds

Regulators shut down firm's high-yield municipal bond funds.

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The Securities and Exchange Commission has essentially shut down Heartland Advisors' three high-yield municipal bond funds because the Milwaukee-based firm has failed to submit audited financial statements for last year.

The SEC filed papers in the U.S. District Court for the Northern District of Illinois in Chicago late Wednesday that freeze the assets of the funds, including two that suffered historic and controversial one-day losses last year, and put them in the hands of a court-appointed receiver.

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Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.