On Monday $40-billion securities and trading giant MF Global filed
for chapter 11 bankruptcy protection, and mutual fund firms are already rushing to downplay the collapse or distance themselves from it.
both highlighted some of MF Global's top common shareholders. It looks like several fund firms owned big chunks of MF Global, probably through their mutual funds and other investing products.
Fortune claims Fidelity
institutional arm Pyramis Global Advisors
holds 8.66 percent of MF Global's common shares, while Bloomberg says Fidelity held 14.8 percent. Both list TIAA-CREF
as holding a bit less (Fortune say 5.77 percent, Bloomberg 6.6 percent). Fortune also mentions quasi-indexing giant Dimensional Fund Advisors
(5.41 percent) and Rydex Security Global Investors
TIAA-CREF declined to comment for this story. A Fidelity spokesman told MFWire.com
's sister publication, The 401kWire
, that, "as of September, the majority of Fidelity's equity portfolios Ö did not hold MF Global stock" and that the Boston Behemoth does "not expect developments involving this company or its stock to have a significant effect" [see The 401kWire, 11/1/2011
Rydex, now part of Guggenheim
, released a statement clarifying that it held less than 0.25 percent of MF Global's common shares, not the 5.13 percent reported by Fortune, and that the shares are spread out among six index-based Rydex products.
Fortune also listed Guardian
's RS Investments
as holders of 7.81 percent of MF Global's common stock, but a Guardian spokeswoman clarified that the RS Partners Fund
unloaded its MF Global shares on October 26, five days before the bankruptcy filing.
And Eaton Vance
felt the need to issue its own release clarifying that, "as of October 31, 2011, no Eaton Vance mutual fund, institutional separate account or pooled vehicle had exposure to MF Global Holdings Ltd. securities."
Company Press Release
Eaton Vance Comments on Exposure to MF Global Holdings Ltd BOSTON, November 1, 2011 - Securities firm MF Global Holdings Ltd. announced its Chapter 11 bankruptcy filing on Monday, October 31, 2011. As of October 31, 2011, no Eaton Vance mutual fund, institutional separate account or pooled vehicle (LLCs, CITs, etc.) had exposure to MF Global Holdings Ltd. securities,
nor was MF Global Holdings Ltd. counterparty to any positions within any Eaton Vance mutual funds or institutional accounts or vehicles.
©2011 Eaton Vance Investment Managers
Two International Place, Boston, MA 02110 800.225.6265 www.eatonvance.com
Company Press Release
New York, Nov. 1, 2011 -- In response to recent reports that Security Investors, LLC ("Rydex|SGI") owns more than five percent of MF Global Holdings Ltd ("MF Global"), Rydex|SGI stated today that its exposure to MF Global as of September 30, 2011, including the exposure of mutual funds and ETFs managed by Rydex|SGI, is substantially less than 0.25 percent of MF Globalís outstanding common stock. Currently, six Rydex|SGI index-based funds hold MF Globalís stock in approximately the same proportion as in each fundís underlying index.
Rydex|SGI manages approximately $24 billion in assets, including approximately $8.3 billion in exchange traded product assets. The firm offers institutional investors and financial intermediaries a broad spectrum of traditional and non-traditional investment options that span four distinct disciplines: fundamental alpha (actively-managed equity and fixed-income), alternative strategies, target beta strategies, and ETFs.
Read the fundís prospectus and summary prospectus (if available) carefully before investing. It contains the fundís investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.rydex-sgi.com or call 800.820.0888.
Rydex|SGI funds are distributed by Rydex Distributors, LLC (RDL). Security Investors, LLC (SI) is a registered investment advisor, and does business as Security Global Investorsģ and Rydex Investments.
Neil Anderson, Managing Editor
Stay ahead of the news ... Sign up for our email alerts now