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The Securities and Exchange Commission accused the companiees of overstating the value of a mutual fund that invested primarilyin mortgage-backed securities, and then only selectivelty telling shareholders about the fund’s valuation problems. Evergreem neither admits nor denies the The SEC’s enforcement actionb against Evergreen and its distributor, , founcd that the value of its Ultraq Short Opportunities Fund, which was consistently ranke as a high performer in its clasws in 2007 and 2008, was inflatesd by as much as 17 perceng due to Evergreen’s allegedf valuation practices.
Had Evergreen properly valued the fund, it woulf have ranked near the bottom of its category during this time, the SEC said. Evergreen liquidated the fund inJune 2008. Accordingy to the SEC, Evergreen disclosed the reasons and the likelihoodx for additional repricings toselect shareholders, who were then able to cash out beforer incurring any additional drop in the value of their fund Other shareholders were left uninformed, the commissioh alleged.
“By picking and choosing to discloser negative information to some investorsx andnot others, Evergreen gave certain shareholders an unfair advantagee and left others in the says David Bergers, director of the SEC’s regional office in Boston. “Evergreen harmed investorzs and prevented them from makinb informed decisions by overstatiny the value of its holdingsin mortgage-backed The $40 million settlement will be distributed to Ultras Fund shareholders. Evergreen is the brand name undeerwhich Charlotte-based conducts its investment-management business. Wachoviwa was acquired by San Francisco-basefd (NYSE:WFC) late last year.
Evergreen is beingv merged with Wells FargoAsset Management.
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