Evergreen Funds confirmed Tuesday that the Securities and Exchange Commission is investigating potential market timing at the firm and may bring an enforcement action, Dow Jones reports. The firms parent company, Wachovia, first made the indication that a former employee may be charged in an SEC filing. The SEC is also interested in the activities of a portfolio manager, Wachovia indicated.
An Evergreen spokeswoman declined to comment on the individuals or the funds involved, but said the firm intends to formally explain to the SEC in a Wells submission "why Wachovia believes enforcement action shouldnt be taken."
Christopher Davis, an analyst with Morningstar, said he was not surprised to see Evergreen implicated since the firm "has fallen short on many measures of shareholder friendliness," including higher-than-average fees.
"This is a company you might have bet would be touched by the scandal," Davis told Dow Jones.