Staff of the Ontario Securities Commission today said they are in discussions with CI Mutual Funds Inc., AIC Limited, AGF Funds Inc. and Investors Group Inc. with a view to resolving allegations of frequent trading market timing by investors in certain funds managed by the four fund managers.

“We are committed to resolving these matters as expeditiously as possible,” said Michael Watson, the OSC’s director of enforcement, in a release.

The discussions are part of the ongoing review of potential trading abuses in the Canadian mutual fund industry and are proceeding concurrently with the review of trading practices at other mutual fund groups.

To date, staff have not uncovered any evidence of late trading. Staff also have not found evidence of market timing by any insiders of the four fund managers.

No evidence of ongoing market timing activity has been found since the review of the mutual fund industry began in November 2003.

Market timing involves short-term trading by investors of mutual fund units to take advantage of short-term discrepancies between the stale value of securities in a mutual fund’s portfolio and the current market value of those securities.

OSC Web site
http://www.osc.gov.on.ca