Administration March 3, 2005

Nuveen Discloses SEC Fee Probe

March 3, 2005 (PLANSPONSOR.com) - Nuveen Investments Inc. revealed Thursday in a regulatory filing that the US Securities and Exchange Commission (SEC) believes its asset management unit overcharged mutual funds.
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According to Nuveen’s annual report, an SEC attorney believes the unit, Symphony Asset Management, should repay the funds $2.8 million in overcharges in subadvisory fees along with about $1 million in interest, according to the Associated Press.

Symphony, acquired by Nuveen in July 2001, served as subadviser to one of the funds from 1995 to May 2001, the filing said.

The SEC believes there were similar problems with the calculation of performance fees payable to sub-advisers of various other mutual funds, resulting in overcharges, the filing said.

Elsewhere in the annual report, Nuveen Investments disclosed that it has been subpoenaed in connection with mutual-fund investigations by the US Attorney for the Southern District of New York and the US Attorney for the Eastern District of Missouri.

The Chicago-based Nuveen sells investment products through banks, brokerages, insurance agents and other financial-service providers.

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