- What is this settlement about?
On March 16, 2006, Bear Stearns entered into a settlement with the SEC without admitting
or denying the allegations against it. In compliance with the Order, Bear Stearns established the Bear Stearns Distribution
Fund ("Fund"). The Fund was in the amount of $250 million and was for the benefit
of shareholders in certain mutual funds who may have been affected by the late trading
and market timing activity between 1999 and 2003 as described in the Order. The
dollar amount available for distribution to mutual funds and shareholders included
the original $250 million plus accumulated interest net of tax liabilities for the
interest earned by the Fund.
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- What is "market timing"?
"Market timing" is the frequent trading into and out of the same mutual fund to
take advantage of inefficiencies in the pricing of the fund. Market timing can dilute
the value of shares and/or disrupt the management of a funds portfolio. Market
timing can harm long-term accountholders.
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- What is "late trading"?
"Late trading" is the practice of placing an order to buy or sell shares in a mutual
fund after the fund establishes the closing per share price for that day, providing
the trader with an advantage over other buyers or sellers of fund shares, who are
permitted to buy or sell only prior to that value being established.
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- How much money is Bear Stearns required to pay as
part of the settlement?
As part of its March 2006 settlement with the SEC, Bear Stearns paid $250 million
into a distribution fund for the benefit of shareholders of mutual funds who may
have been affected by the market timing and late trading activity at issue in this
administrative proceeding. Individual payments to mutual fund shareholders were
based on their proportionate share of losses, as calculated by the IDC and as outlined
in the Distribution Plan.
The $250 million Bear Stearns Distribution Fund came entirely from the Bear Stearns
corporate treasury. In addition, although Bear Stearns is now a division of another
firm, Bear Stearns continues to be responsible for all costs and expenses associated
with the development and implementation of the Distribution Plan.
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- Who is eligible to receive a distribution payment?
A shareholder who owned shares in one or more EMFs during part or all of the Relevant
Period between 1999 and 2003 and had a calculated distribution payment of at least
$10 was eligible to receive a distribution payment if the EMF was slated for a direct
shareholder distribution; these shareholders are also referred to as "Eligible Contemporaneous
Accountholders." Contemporaneous Accountholders who held shares in one or more of
the EMFs identified in the Distribution Details
charts received a distribution payment if their calculated payment exceeded the
minimum (de minimis) amount of $10. That is, shareholders with a calculated distribution
payment of less than $10 did not receive a payment.
Distribution payments were also made to shareholders through existing Fund Family
IDCs and directly to the asset bases of certain EMFs for which a direct shareholder
(or Contemporaneous Accountholder) distribution was determined to be not practicable
or feasible. Please review the
Distribution Plan for a detailed list of all EMFs, or contact the Fund Administrator
for the detailed list of EMFs.
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- Do I need to ask for and submit a claim form?
No, this Fund was not distributed according to a claims-made process, and therefore,
the procedures for making and approving claims were not applicable. That is, it
was not necessary for you to submit a claim in order to receive a payment under
this Distribution Plan.
Payments were determined by the IDC from the transaction and share holdings data
provided by EMFs, and Eligible Contemporaneous Accountholders were paid directly
by the Fund Administrator.
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- Who is an "Eligible Contemporaneous Accountholder"?
An "Eligible Contemporaneous Accountholder" was a long-term shareholder of an EMF
slated for a direct shareholder distribution and was awarded at least the de minimis
payment amount of $10 from the Fund.
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- If eligible, when will I receive my payment?
All payments were mailed to Eligible Contemporaneous Accountholders between May
and August 2009.
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- Why did I receive a check?
The check represented your share of the Bear Stearns Distribution Fund, which was
established by Bear Stearns in compliance with the March 2006 SEC Order. The IDC determined that you were an Eligible Contemporaneous
Accountholder and held shares in EMFs that were affected by the market timing and
late trading activity at issue in this administrative proceeding.
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- How were payments calculated?
In general, distribution payments were calculated using quarterly share balances
held by shareholders in EMFs during the relevant time period and the overall calculated
loss for the EMF. This payment amount was determined by the IDC using the methodology
set forth in the Distribution
Plan. If you would like additional information regarding the methodology
employed to calculate payments, please refer to the Distribution Plan.
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- How will this settlement affect my tax reporting?
For tax information related to this settlement, please refer to the
Tax Information section of this website. However, please consult your financial
adviser or tax professional to determine the potential tax consequences
and appropriate tax treatment for your individual situation.
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- I received a check, but I have misplaced or lost
the check. Can you provide me with a new check?
No. Unfortunately, the deadline for reissuing checks has passed. In addition, the
check cashing period ended on January 15, 2010 and the distribution is now closed.
If you attempt to deposit or negotiate your check, it will be returned due to insufficient
funds, and you may incur a penalty or fee with your bank as a result.
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- What are the responsibilities of the Independent
Distribution Consultant who developed the Distribution Plan?
Professor Francis E. McGovern was appointed as the IDC for this matter.
As the IDC, Professor McGovern was asked to:
- - Develop a Distribution
Plan to distribute Fund monies to mutual funds and shareholders of mutual funds
that may have been affected by the market timing and late trading activity at issue
in this administrative proceeding;
- - Submit the Distribution Plan for approval by the U.S. Securities and Exchange
Commission;
- - Ensure that the approved Distribution Plan is implemented within the guidelines
set forth in the Plan;
- - Determine whether any person who disputes their eligibility or appeals the distribution
payment they received is entitled to a distribution or review of their distribution
payment amount.
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- I held mutual fund shares through a broker or a retirement
account. Were these shares included in the determination of whether I am eligible
for a distribution payment?
Yes, the Distribution
Plan is available for you review, and paragraphs 55-65 explain in detail
the process used to identify shareholders who owned mutual fund shares through a
third party.
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- I held mutual fund shares through a broker or a retirement
account. When will I receive a distribution payment?
Checks were mailed on a rolling basis through October 2009 to individuals who held
shares through a third-party broker or retirement account.
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- Do I need to take any further action?
There was no action necessary on your part to participate in the settlement. The
IDC reviewed relevant shareholder account information and determined who met the
$10 minimum threshold to receive a distribution payment from the Bear Stearns Distribution
Fund.
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- Do any of the web site names similar to the name
for the Bear Stearns web site belong to the Bear Stearns Fair Fund Settlement?
No. You should be aware that web pages with addresses very similar to the Fair Fund
Administrator's actual page (including site addresses with variations and incorrect
spellings of the name "Bear Stearns & Co.") have been established. If you believe
you may be an eligible claimant, you should make sure you receive information only
from the Fair Fund Administrator's web page at
http://www.bearstearnsfairfundsettlement.com. Only this web site and the
SEC web site, www.sec.gov, are
the authentic locations for accurate information.
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- I understand that the distribution is closed. Is
there any way for me to receive my distribution payment?
Unfortunately, the deadline for having your distribution payment wired to your bank
was March 3, 2010. If you would like additional information, please call the appropriate
Fund Administrator.
If the check number listed in the top right corner of the check is greater than 4500000,
please contact the Fund Administrator at:
- 1-888-402-5789 (toll-free), Monday through Friday, 9:00 AM 6:00 PM Eastern Time
If the check number listed in the top right corner of the check is less than 4500000,
please contact the Fund Administrator at:
- 1-888-356-0259 (toll-free), Monday through Friday, 9:00 AM 6:00 PM Eastern Time
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- I received a payment from the Distribution Fund;
who should I contact if I have additional questions?
Please note that the check cashing period ended on January 15, 2010, and the distribution
is now closed. Unfortunately, the check that you have was voided and cannot be cashed.
If you attempt to deposit or negotiate your check, it will be returned due to insufficient
funds, and you may incur a penalty or fee with your bank as a result.
If the check number listed in the top right corner of the check is greater than 4500000,
please contact the Fund Administrator at:
- 1-888-402-5789 (toll-free), Monday through Friday, 9:00 AM 6:00 PM Eastern Time
- Or by US Mail at the following address:
- Bear Stearns Distribution Fund
c/o BFDS
P.O. Box 9120
Canton, MA 02021-9120
If the check number listed in the top right corner of the check is less than 4500000,
please contact the Fund Administrator at:
- 1-888-356-0259 (toll-free), Monday through Friday, 9:00 AM 6:00 PM Eastern Time
- Or by US Mail at the following address:
- Bear Stearns Distribution Fund
c/o Rust Consulting
P.O. Box 1917
Faribault, MN 55021-7172
If you have additional questions relating to specific Eligible Mutual Funds please
use the contact information detailed below:
If you have questions about the following fund families and EMFs:
|
Fund Family |
Current EMF Name |
Previous EMF Name(s) |
Contact |
|
Credit Suisse |
Credit Suisse
International Focus Fund
|
Warburg Pincus International Equity Fund,
Warburg Pincus International Small Company
Fund,
Credit Suisse International Small Company Fund
|
1-888-356-0259 |
Credit Suisse Japan
Equity Fund
|
Warburg Pincus Japan Growth Fund,
Credit Suisse Japan Growth Fund,
Warburg Pincus Japan Small Company Fund,
Credit Suisse Japan Small Cap Fund,
Warburg Pincus Japan OTC Fund
|
|
Kinetics |
Kinetics Internet Fund |
-
|
1-888-356-0259 |
Please contact the Fund Administrator by phone at:
1-888-356-0259 (toll-free), Monday through Friday, 9:00 AM 6:00 PM Eastern Time
Or by US Mail at the following address:
Bear Stearns Distribution Fund
c/o Rust Consulting
P.O. Box 1917
Faribault, MN 55021-7172
If you have questions about the following fund families and EMFs:
|
Fund Family |
Current EMF Name |
Previous EMF Name(s) |
Contact |
Franklin Templeton
(Class A
shares only)
|
Mutual European Fund
|
- |
1-888-402-5789 |
|
Templeton Foreign Fund |
- |
Templeton Global
Opportunities Trust |
- |
Templeton Global
Smaller Companies Fund |
- |
|
Templeton World Fund |
- |
Old Mutual
(PBHG)
|
Old Mutual Emerging
Growth Fund
|
PBHG Emerging Growth Fund |
1-888-402-5789 |
|
Old Mutual Growth Fund |
PBHG Growth Fund |
|
RS Investments
|
RS Emerging Growth
Fund
|
- |
1-888-402-5789 |
|
RS International Growth Fund |
Guardian Baillie Gifford International Fund |
Please contact the Fund Administrator by phone at:
1-888-402-5789 (toll-free), Monday through Friday, 9:00 AM 6:00 PM Eastern Time
Or by US Mail at the following address:
Bear Stearns Distribution Fund
c/o BFDS
P.O. Box 9120
Canton, MA 02021-9120
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