MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, March 31, 2010 Judge Delivers a Blow to Schwab Charles Schwab Corp. received bad news yesterday, when a U.S. district judge in San Francisco issued a ruling in the case involving Schwab's YieldPlus fund. U.S. District Judge William Alsup ruled that Schwab breached the law when it did not obtain the go-ahead from shareholders before putting more than a quarter of YieldPlus fund assets into mortgage-backed securities, Bloomberg reports. Schwab's portfolio managers "reversed field and repudiated" the fund's policy of restricting investments in a single industry to 25 percent, according to Alsup. "While we disagree with the judge's ruling on this issue, he has only ruled on one of several claims and there are many more issues to be decided," wrote Schwab spokesperson David Weiskopf in e-mailed comments to The MFWire. "We look forward to putting all the facts, evidence and expert testimony to the jury and presenting a strong case at trial. " Printed from: MFWire.com/story.asp?s=31810 Copyright 2010, InvestmentWires, Inc. All Rights Reserved |