| View previous topic :: View next topic |
| Author |
The Rise of Evergreen Investments? |
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11260
Location: Los Angeles, California
|
 Posted: Sat Jun 02, 2007 11:53 am Post subject: The Rise of Evergreen Investments? |
 |
|
This was definitely an unlikely scenario:
Fund Times: Top High-Yield Manager Lands at Evergreen
http://news.morningstar.com/article/article.asp?id=192259
I spoke to a VP at European Credit Management (one of the leading managers in European fixed income - winning the Global Investor's Magazine Award for Investment Excellence in this category from 2004 to 2006, with PIMCO and Goldman Sachs Asset Management as runner-ups) and I was also surprised they were taken over by Evergreen (Wachovia) earlier this year:
http://www.europeancredit.com/text/2/about_ecm.html |
|
| Back to top |
|
 |
| Author |
The Rise of Evergreen Investments? Replies |
HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11260
Location: Los Angeles, California
|
| Posted: Thu Jun 11, 2009 10:47 am Post subject: |
|
|
Evergreen at it again - landing in hot water as the SEC forces the firm to pay $41.1 million to investors:
http://news.morningstar.com/articlenet/article.aspx?id=294951
| Quote: | The case against Evergreen also alleges a few other disturbing claims. First, only certain shareholders were told of the reasons for the declining NAV when the fund began re-pricing the affected securities. Second, the fund's management team did not adhere to regulatory requirements when cross-trading with other Evergreen funds. Specifically, bonds were sold from Ultra to another fund at a price below the level that a broker was willing to pay for them. And finally, from September 2007 to August 2008, Evergreen's affiliated broker-dealer, Evergreen Investment Services, did not keep a record of certain electronic messages sent via personal digital assistants.
The SEC's findings are very troubling and point to poor stewardship practices at Evergreen. The mutual fund industry has been subject to similar securities pricing scandals in the past (the most notable incident occurred at Heartland nearly a decade ago and also involved pricing of thinly traded bonds), so we're puzzled as to why Evergreen's compliance systems weren't designed to catch similar problems.
Compliance also appears to be lacking when it comes to cross-trades. We saw similar problems in the early 1990s at the former Strong funds, which now--ironically--are also part of the Wells Fargo organization.
Most disturbing, however, is the fact that Evergreen got in trouble in the market-timing scandal and thus had ample reason to boost its compliance efforts and shore up its flagging corporate culture. In addition, we're disappointed that in both cases the firm failed to come clean to investors once the problems were uncovered. This appears to be a serious breach of investors' trust. |
|
|
| Back to top |
|
|
Please log in to view without the ad banners |
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
Powered by phpBB
|
FAQ
Search
Memberlist
Usergroups
Statistics
Register
Profile
Log in to check your private messages
Log in
