Fremont Funds Uncover Market Timing

Nov. 24, 2003 — Fremont Investment Advisors has uncovered instances of rapid-fire trading in its mutual funds.

Fremont said an internal review found “market timing arrangements with a few clients that may have been inconsistent with” polices of the firm and the Fremont Funds.

The last arrangement was terminated more than a year ago, Fremont said in a statement on the funds’ web site, adding that the aggregate trading activity lost money for the investors involved in them. The in-house investigation has found no evidence of late trading in the funds, according to Fremont.

Fremont said the “few management personnel” it believes “may have initiated, negotiated or approved” the rapid trading left the firm for reasons unrelated to market timing. “Most” of its funds were not affected by the trading, the company said.