TransAmerica to pay $97M for flawed fund assumptions

August 27, 2018

The Securities & Exchange Commission levied a $97 million sanction on affiliates of TransAmerica and parent company Aegon, stating portfolio managers used flawed modeling for mutual funds that were the basis for billions of dollars in investments on behalf of its clients.

TransAmerica handles retirement or benefit plans for the state of Connecticut and multiple municipalities in the state, including the town of Greenwich.

“Investors were repeatedly misled about the quantitative models being used to manage their investments, which subjected them to significant hidden risks and deprived them of the ability to make informed investment decisions,” said Dabney O’Riordan, co-chief of the SEC’s asset management enforcement unit, in a written statement.

Alex.Soule@scni.com; 203-842-2545; @casoulman

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