Investors in Morgan Stanley's Prime Income Trust (XPITX) have seen 2008 losses hit more than 35%. The fund employs a modest amount of leverage--it hasn't topped 10%--initiated as an opportunistic ploy in April 2008 hasn't helped, some of the fund's sector and loan selections have been central to its weakness.
Morgan Stanley Prime Income Trust made loans to the now-bankrupt Tribune and distressed gaming concern Harrah's were in the portfolio's top 10 holdings. And while the portfolio hasn't been wildly concentrated in any particular sectors the fund has taken a hit.
The fund's relatively high expense ratio -- approximately 1.34% -- doesn't help. If you were solicited to purchase shares of Morgan Stanley's Prime Income Trust -- XPITX -- and have suffered losses call us to discuss your options.
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