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

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

Rating:Morningstar to Evergreen: What Are You Hiding? Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, August 6, 2004

Morningstar to Evergreen: What Are You Hiding?

by: Theresa Sim

A Wednesday article by two at Morningstar condemns Wachovia unit Evergreen Investment Management for "abysmal" disclosure of frequent trading by one of its managers.

On Tuesday, officials at the companies disclosed that the SEC notified them on July 28 about a proposed enforcement action against Evergreen. The regulators allege that a former Evergreen employee and a broker arranged to trade mutual fund shares, violating policies laid out in fund prospectuses. Evergreen did not disclose the name of the former employee in the filing.

Based on past notes in Evergreen's funds' prospectus and annual report, the Morningstar analysts speculate that the former Evergreen employee is Prescott Crocker, the ex-head of Evergreen's high yield group and manager of Evergreen Precious Metals fund. Crocker retired in February 2004.

The Morningstar reporters uncovered that Evergreen included disclosures in two funds' documents -- the Mid Cap Growth Fund and the Precious Metals Fund -- noting that the funds were paid back because an investor engaged in frequent trading of the fund's shares. The disclosures were in documents dating back to the fall of 2003.

Evergreen did not indicate the amount paid back to the Mid Cap Growth Fund, while it said it paid back the Precious Metals Fund $70,878.

"If Evergreen discovered that employees had directly participated in, or otherwise facilitated, violations of the funds' prospectuses...then the firm has a responsibility to share those findings with shareholders in the most transparent way possible," wrote the reporters.

"Based on what we've seen, Evergreen did the bare minimum and hoped the problem would simply go away. That doesn't cut it," they wrote. 

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

0.0
 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