According to Nuveen's annual report, Symphony Asset Management has been notified that the SEC would like it to repay the fund family $2.8 million in overcharges on sub-adivsory fees and roughly $1 million in interest. The asset management unit served as sub-adviso to one of the funds in the unaffiliated fund family between 1995 to May 2001. Similar problems arising from incorrect calculations of performance fees led to overcharges in various other funds of the fund family, the SEC said.
Nuveen said that when Symphony entered into sub-advisory agreements with the fund family, the family certified that the performance fee arrangements met legal requirements. Nuveen has retained legal counsel and said it is reviewing the case.
In its report, Nuveen also said that it had received requests for information from a number of regulators including the U.S. Attorney for the Southern District of New York and the U.S. Attorney for the Eastern District of Missouri. Information sought by regulators included topics like market timing, late trading valuation of international securities, mutual fund revenue sharing, fund directed brokerage and soft dollar usage, among other things.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
