Fred Alger Management has reached a tentative settlement agreement with New York Attorney General Eliot Spitzer and the Securities and Exchange Commission for allowing market timing and late trading in its mutual funds.

Without admitting or denying liability, the company agreed to reimburse $30 million to fund shareholders , pay a $10 million fee and reduce fees by $1 million a year for five years.

The company said it would have no further comment until a final agreement is approved by the SEC and Spitzer's office.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.