Dec. 23, 2003 — Principal Financial Group (PFG), which runs the Principal mutual fund family, revealed that some of its employees, including two portfolio managers, engaged in market timing trades in their personal accounts, according to an SEC filing dated today.

Principal said that, as a result of an ongoing investigation, it found that “the majority” of these employees, including the managers, are no longer with the firm. Principal added that the “vast majority” of this activity took place between 1998 and 2000. Restitution will be made to all impacted funds, the filing indicated.

The company noted that no market timing activity by portfolio managers has occurred since 2000.