(Reuters) - "In order to buy, exchange and redeem shares in these mutual funds, these hedge funds employed deceptive techniques designed to avoid detection by these mutual funds. ZCM came to learn that the hedge funds were utilizing deceptive practices to market-time mutual funds, and nonetheless ZCM provided financing to them and took administrative steps that substantially assisted them," the SEC said.
Market timing of mutual funds includes frequent buying and selling of shares of the same fund, or buying or selling fund shares to exploit fund pricing inefficiencies. Market timing is not illegal but it can disrupt management of a fund's portfolio and harm other shareholders by diluting the value of their shares.
Read more at Reuters.com Government Filings News
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