Milwaukee Journal Sentinel – Five years after regulators forced the sale of Strong Funds to Wells Fargo and Co. at the height of a national mutual fund scandal, investors in 24 former Strong Funds are moving closer to receiving their share of a $154 million settlement.
A proposal for doling out the money was developed by an independent consultant and has been published on the Securities and Exchange Commission Web site.
The proposal, which awaits SEC approval, would give priority to reimbursing investors in 24 Strong funds whose losses were related to ”frequent trading.” Frequent traders often aim to take advantage of differences between the share price of a fund and the actual value of the securities it holds – a maneuver that can harm the interests of long-term shareholders.
