Alliance Fires Fund Manager Amid Fund Probe

Separately, Alliance said in a regulatory filing Friday that its internal investigation found that it had arrangements with certain investors who were permitted to make so-called market timing trades in certain of its domestic mutual funds in exchange for making investments “which were not actively traded” in other Alliance products, such as hedge funds.

Alliance also said in the filing that the manager of the Technology fund permitted market timing transactions in the fund past the point where he recognized that the transactions were “disruptive and possibly causing harm to other shareholders.” The manager subsequently acknowledged that he believed that the transactions had “adversely affected” the fund’s performance, Alliance said.

In connection with its internal investigation Alliance last week fired Michael Laughlin, the head of its mutual fund distribution unit, and John Carifa, president and chief operating officer of Alliance.

The company last month named Janet Walsh to succeed Malone on the Technology fund. Walsh also runs AllianceBernstein Sel Inv Srs:Technology/A (AITAX).