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During grant reviews, GCI could help identify proposals of greater novelty (a weighting factor for many funding groups) by serving as a novelty measure.
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So many fund groups offer state-specific funds.
That is why many fund groups have policies saying they try to prohibit or restrict such short-term trading.
Many fund groups, including Strong, said they discouraged the practice, and it does not seem to have occurred to regulators that insiders might be doing it.
Many have bought hedge-fund groups outright (such as JPMorgan Chase's purchase of Highbridge Capital Management) or have taken minority stakes in them (Lehman Brothers bought 20% of D.E. Shaw in March).
But as they compete for an increasingly limited pool of public funds, many groups see the appeal of allowing those names to be stamped on their property.
"There's a symbiotic relationship between the portfolio managers," said Mr. Friedman, who runs the $950 million Mutual European fund and oversees many of the fund group's insurance investments.
But many fund managers fear the worst.
This dissuaded many funds from voting.
That requires expertise many funds lack.
Campaigning group FairPensions says many ethical providers are failing to represent the views of their customers, and too many funds are working with outdated ideas about what should be included in an ethical fund.
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