Portfolio

Wells Fargo, parent of the Evergreen mutual funds, has agreed to pay $40 million to the Securities and Exchange Commission to settle charges it inflated the value of mortgage-backed securities held by one of its mutual funds, the Ultra Short Opportunities Fund.

As part of an increasing trend among mutual fund companies to diversify their offerings into new areas, Putnam Investments is planning to offer hedge funds in the next six to 12 months, according to the firm’s chief executive officer, Robert L. Reynolds.

Hedge funds posted their best monthly performance in nine years, with the HFRI Fund Weighted Composite Index rising 5.2% in May, Hedge Fund Research indicated.

Citing the positive effects of diversification and continued contributions, Vanguard announced that the median decline in the three million defined contribution accounts it administers fell 17% in the 15 months ended March 31, as opposed to the market’s overall 44% decline.

Fidelity Investments and Kohlberg Kravis Roberts jointly announced Monday that the two firms have struck an agreement whereby the Boston-based mutual fund company's customers will be to access the initial public offerings and secondary stock sales of KKR portfolio companies.

Fidelity Investments’ chief of technology and real estate operations, Marvin Adams, will be leaving the company, according to reports.

Finally, insiders launched candid criticism at the mutual fund industry last week, to help it respond sensibly to the economic meltdown and reposition itself to regain investor trust.

Abigail Johnson Chairs Fidelity Fund Board

Conn. Fails to Pass Hedge Fund Bill

Thanks to shady money managers like Bernie Madoff who ruined it for everyone, the lucrative and surreptitious heydays of hedge funds may be gone for good.