Investors due a reimbursement from the mutual fund scandals shouldn't get hopes up of striking gold. The process of going through years of investment history for thousands of investors is costly, and some investors may end up with chump change of $10 or less, according to the Wall Street Journal.
Consultants have been trying to figure out the best way to distribute the settlement money. Two large companies that owe investors settlement funds--Pilgrim, Baxter & Associates Ltd's PBHG Funds and Columbia Management Advisors Inc.'s Columbia Funds--distributed plans for public comment, with the comment period recently closing. An SEC spokesman said the agency is analyzing the comments, but there is no timeline yet for when the distribution plans will be finalized.
The plans show how it is complicated to find some investors, particularly those in omnibus accounts, which are huge accounts for some 401(k) plans that may comprise thousands of investors. Many companies are worried that the costs of digging up investors' information will be higher than the actual amount of money going back to them. Additionally, companies are worried about getting reimbursed for the extra workload.
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.