Market Timing Seen As Betrayal
Fund Firms Admit Role in Market Timing Trades
Four of Canada's largest mutual fund companies have acknowledged
giving preferential treatment to a handful of sophisticated market
professionals at the expense of long-term unitholders. Karen Howlett
and John Saunders have the story.
Mutual-Fund Giants Pay Price of Betrayal
Initial reports of mutual fund market timing in Canada wasn't a case of much ado
about nothing. AGF, AIC, CI and Investors Group let a handful of pros flip in
and out of their funds. The brokerage arms of Bank of Montreal, Royal Bank and
TD Bank helped at least 15 institutions strike special arrangements to
facilitate this traffic. Andrew Willis explains and editorializes.
Dealers Slapped With Close to $50-Million in Penalties
Investment dealers were slapped with close to $50-million in penalties
yesterday for failing to detect and prevent systemic market timing in mutual
funds by some of their clients. The fines, stiffer than expected by the fund
industry, are meant to penalize the financial institutions that ignored their
obligations to the investing public, regulators said. Keith Damsell has the
OSC Rapped For Not Being Tougher
The OSC has broadened its market timing crackdown by targeting Franklin
Templeton Investments. However, Canada's largest securities regulator was also
criticized for settling with — rather than imposing fines against — three fund
companies that were originally targeted in the scandal. Keith Damsell looks at
From The Archives:
Market Timing Special Investigation
MORE ON FUNDS: Outflows, Loyalty and
Outflows Continue for Mutual Funds
Mutual fund investors embraced conservative income products and shunned equities
last month, losing out on gains posted by recovering stock markets at home and
abroad. Read Keith Damsell's report.
Loyalty to Mutual Funds Linked to Returns
Family Ties Target of Probe Into Fidelity
Federal regulators investigating conflicts of interest in the mutual fund
industry are looking into whether traders at Fidelity Investments improperly
steered business to siblings who work at brokerage firms, according to a
published report. Read about this unfolding story.
PERSONAL INVESTING: Tax Schemes and
Donation Tax Schemes Can Come Back to Bite You in Three Years
On Dec. 5, 2003, the Finance Department announced changes to Canadian tax law to
effectively shut down certain tax shelters. This year, the schemes have been
structured a little differently to attempt to get around the tax law, but Tim
Cestnick warns that CCRA might still catch up to you.
Easy Riding May Have To Wait Five Years
"Steven" has a gross annual income of $90,000, lives in a house worth $260,000,
and has $130,000 in financial assets plus a pension that will pay him $27,900
when he retires. He also has $87,500 in debts, child support payments and an
expensive settlement with his ex-wife. Can he retire at 55? Andrew Allentuck
adds it up.