Deutsche/Scudder Nears Settlement with Regulators
Firm also seeks approval to merge fund boards and streamline fees.
Deutsche Asset Management, the advisor to the Scudder Funds (which will be renamed DWS Funds on Feb. 6), has issued a shareholder proxy addressing a raft of issues. Most prominent among them is an expected $134 million settlement with regulators over market-timing arrangements in its funds--only one of which was previously disclosed.
The settlement, which Deutsche expects to finalize early this year, will cover six timing arrangements in the legacy Kemper funds (which merged with Scudder's in 2001), three timing deals in the legacy Scudder funds (which were acquired by Deutsche in 2002), and one deal in a Deutsche legacy fund. Deutsche says that, as part of the agreement, it will cap fund management fees, which were previously reduced, at current levels for the next five years.
Greg Carlson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.