... And Yet Another One
Several mutual fund subsidiaries owned by Allianz AG have
settled with the SEC over market timing. Once again, the case involved the Canary Partners hedge fund. The subsidiaries include the fund distributors, the investment advisor, and the sub-advisor for the stock funds. The PIMCO fixed income funds were not involved. Civil suits against two top managers are still pending.
I recall reading that a majority of mutual fund investments made in the US are through intermediaries, including insurance companies, financial planners, retirement plans, banks, and brokers. Please let me point out that not one fund sold directly to the investor has been implicated.
Not Many Left to Settle
Invesco/AIM was one of the last fund families to settle with the SEC and the attorneys general of New York and Colorado for $450 million. The company press release doesn't mention it, but their
former CEO has agreed to a $500,000 fine and a lifetime ban from the industry.
Invesco was involved in market timing with Canary Partners, the hedge fund that kicked off the whole scandal. Their involvement led to substantial withdrawals from their funds. The combination of bad press and heavy penalties may bring on a sale or reorganization of the fund unit by its UK parent, Amvescap Plc.
