A mutual fund group that wants to go out of business used overstated net asset values (NAV) for its funds.

Life Cycle funds of Wayne, Pa., overstated its NAV because the funds' adviser, Benson White & Co., Inc., withdrew the seed money it had put into the fund without reimbursing some of the start-up expenses it owed the funds, according to reports from the funds' accountants, PriceWaterhouseCoopers. Life Cycle filed the reports with the SEC Tuesday. The report said the NAV overstatements "likely" exceeded one penny per share but PriceWaterhouseCoopers did not estimate the precise amount.

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