Market timing scandal hits both US and Europe

A number of mutual fund companies, including Putnam, Janus, Bank of America and Invesco are under investigation for their alleged involvement in activities - such as late trading and market timing - that benefited short-term traders at the expense of long-term investors. Although the scandal has rocked the US mutual fund industry, European funds are not immune to market-timing and, earlier this year, Schroders was forced to implement anti-arbitrage mechanisms to protect its ISF range which is domiciled in Luxembourg, according to Robert Higginbotham, Schroder"s head of global marketing. ...