Loomis Sayles & Co. may have conducted trades that have market-timing implications, the Boston-based company announced on its Web site Tuesday, Reuters reports.
What the company did was accept investments in its Loomis Sayles Bond Fund from an institutional client that in turn used the fund to "manage liquidity," Chairman and Chief Executive Robert Blanding said. Another client that Loomis Sayles later found out that had been "named in a regulatory investigation" traded into the fund as well.
Dan Fuss, the high-profile manager of the fund who has run it since 1991, would not return calls regarding the companys admission. Blanding said his company has and will continue to take additional action "to prevent undesirable short-term trading" in the future.