Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Have Bond Funds Caught Subprime Flu? Not Rated 5.0 Email Routing List Email & Route  Print Print
Tuesday, September 18, 2007

Have Bond Funds Caught Subprime Flu?

by: Neil Anderson, Managing Editor

The Securities and Exchange Commission is trying to figure out if mutual funds' subprime holdings are accurately valued. Bloomberg's Miles Weiss and Jesse Westbrook report that in August the SEC talked to the 25 biggest fund firms, fearing that the combined effect of redemptions and subprime fallout could be misleading and hurting the shareholders who stay behind.

"If they sell off the more-liquid securities to satisfy redemption requests, then the valuation of the remaining portfolio becomes even more critical," Douglas Scheidt, associate director in the SEC's investment management division, told Weiss and Westbrook.

An American Funds spokesperson insists that valuing its funds subprime holdings "was not a problem", but at least one fund firm has publicly acknowledged the issue. In a 12b-25 filed August 30 with the SEC, Morgan Keegan revealed that it "is unable to complete" certain forms for the recent fiscal year for three funds (the Regions Morgan Keegan Select High Income Fund, the Regions Morgan Keegan Select Intermediate Bond Fund and the Regions Morgan Keegan Select Short Term Bond Fund because "recent instability in the markets for fixed income securities has necessitated a more extensive process for verification of the values of certain of the portfolio securities held by the funds at the June 30 fiscal-year-end in order to assure that this information will be accurately reflected in the Funds' audited financial statements." 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

5.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use