Money magazine’s October issue charges that for more than a decade through 2002, Wilshire Associates engaged in far-reaching fund timing that resulted in fat returns.

On any given day, Wilshire traded more than $100 million worth of mutual funds, typically in funds with at least $1 billion in assets. This suggests that some of the biggest fund companies in the nation allowed the investment advisor to engage in fund timing, even though most fund prospectuses explicitly forbid such trades. If this is true, then New York Attorney General Eliot Spitzer’s investigation into late trading and market timing in funds could be even more widespread than he originally thought.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.