Wilshire trades.Pension fund investors are watching with particular interest the case of Santa Monica-based Wilshire Associates Inc., whose short-term "market timing" trades dating back to 1993 are being examined by the SEC. The question, said one money manager familiar with such practices, is whether Wilshire's in-and-out trades in mutual funds violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. the internal procedures of some of its fund-company clients, which publish the provisions against the practice in their prospectuses. Many mutual funds also impose penalties to discourage market timers Market timer A money manager who assumes he or she can forecast when the stock market will go up and down. . "It does hurt investors," said the money manager. "But unless you have a provision, it's not illegal." The SEC is reviewing investments Wilshire Associates made for its clients and for its own accounts that involved buying selected mutual funds and simultaneously selling short equity index futures Index Futures A futures contract on a stock or financial index. For each index there may be a different multiple for determining the price of the futures contract. Notes: For example, the S&P 500 index is one of the most widely traded index futures contracts in the U.S. contracts to profit from changes in the spread, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a statement issued by the company last week. Wilshire, the second-largest pension consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , said in the statement that it doesn't believe its conduct violated any law, and that decisions regarding implementation of the strategy were made "independent of the consulting and the analytics divisions of the firm." A spokeswoman for the firm declined further comment. |
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