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To make certain that the perpetrators, and not the investors, bear the burden, I suggest the following: Any cash penalties should not be paid out of fund assets but by those responsible, whether fund managers, executives or directors.
For example, the complaint against Putnam Investment Management filed by Massachusetts regulators on Oct. 28, stated that the fund giant allowed one of its retirement plan clients, Boilermakers Local Lodge No.5, to trade in and out of fund shares frequently because Putnam sought to expand its retirement plan business and keep the plans it already had happy.
In the last two months, prosecutors in New York and Massachusetts have filed suit against fund companies for allowing certain investors to conduct after-hours trades in fund shares and for permitting some investors to trade frequently in and out of fund shares, a practice that is typically forbidden by fund companies.
The stealth-mode cloud computing startup CloudSwitch is its first investment out of Fund VIII, Matrix Partners participated as well.
The memo notes that Formation 8 will continue to manage current investments, including follow-on rounds for existing portfolio companies, out of "meaningful reserves" that it still has in Fund 2. We're publishing below the text of the memo, which was sent to companies that were investments out of Fund 2 from one of the partners.
Similar(7)
When I am out of funds and sorts.
Running out of funds in the middle of a project is a situation you want to avoid.
And he has recently restarted his out-of-town fund-raising efforts as well.
But you can switch out of the fund into another one.
Should they bail out of mutual funds and equities?
After the the market fell 20% on Oct. 19, people wanted out of stock funds.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com