The former
Morningstar analysts Christopher Davis and Jeffrey Ptak cited a regulatory filing the company made late last year in which it disclosed that the trading took place in the $293 million Evergreen Precious Metals Fund. However, Morningstar criticized the firm for failing to adequately explain the circumstances to shareholders.
Long before the SEC launched an investigation into these questionable trading practices,, Evergreen mentioned the improper trades in a footnote on page 17 of the funds annual report last October. No further disclosures were made regarding the matter.
Morningstar characterized Evergreens handling of the matter as "very disconcerting" The company has yet to provide a full accounting of what happened. "Evergreen did the bare minimum and hope the problems would simply go away. That doesnt cut it," Morningstar said. The Chicago-based fund-tracking firm urges Evergreen investors to "closely monitor the situation."