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GeeAyeC Angry Kena Conned By Msian Fund Manager?

makapaaa

Alfrescian (Inf)
Asset
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<TABLE border=0 cellSpacing=0 cellPadding=0 width="98%" align=center><NOINDEX><TBODY><TR><TD><TABLE width="100%"><TBODY><TR class=txt-body height=25><TD>Go to Singapore Law Watch <!-- --></TD><TD align=right> <FORM id=openEmailForm onsubmit="return false;" method=post name=openEmailForm action=/remweb/slw/mailer.jsp target=slw_email> </FORM></TD></TR></TBODY></TABLE></TD></TR></NOINDEX><TR><TD class=txt-body><LINK rel=stylesheet type=text/css href="ektnormal.css"><LINK rel=stylesheet type=text/css href="../lawnetcms.css"><!--BeginNoIndex--><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR><TD align=middle>MAS sues fund manager for alleged false trading in 2004
[2009] 17 Aug_BT</TD></TR></TBODY></TABLE>
<TABLE class=noprint border=0 cellSpacing=1 cellPadding=1 width="100%"><TBODY><TR><TD align=right>javascript:window.close();</TD></TR></TBODY></TABLE><TABLE border=0 cellSpacing=0 cellPadding=3><TBODY><TR vAlign=top><TD class=txt-label align=right><NOBR>Title:</NOBR> </TD><TD class=txt-body>MAS sues fund manager for alleged false trading in 2004</TD></TR><TR vAlign=top><TD class=txt-label align=right><NOBR>Source:</NOBR> </TD><TD class=txt-body>Business Times</TD></TR><TR vAlign=top><TD class=txt-label align=right><NOBR>Author:</NOBR> </TD><TD class=txt-body>Chew Xiang</TD></TR></TBODY></TABLE>

<!--EndNoIndex-->Legal News Archive

<!--lglcntbegin-->(SINGAPORE) The Monetary Authority of Singapore (MAS) is suing well-known fund manager Tan Chong Koay for alleged false trading in Singapore-listed United Envirotech (UET) shares in late 2004.
Dr Tan is chief executive of Pheim Asset Management, a US$1.26 billion boutique fund he founded in 1994. Pheim has also been named as a defendant in the suit, the second such filed by MAS under its new civil penalty regime. The first, an insider trading suit against a former WBL Corp executive, is still ongoing.
According to court documents seen by BT, Pheim bought 360,000 shares in UET from Dec 29 to Dec 31 through a UOB-KayHian broker.
That was almost 90 per cent of the total number of UET shares traded in that period and the share price also rose from 38 cents to 44.5 cents over the three days, a 17 per cent jump. Most of the trades were also closed within the last half hour of trading.
The trades allegedly increased the net asset value of certain Pheim client accounts by some $1 million over the period, triggering performance bonuses totalling $50,790, and benefiting Pheim's reputation and marketability of its products, the documents say.
The trades also 'created a false and/or misleading appearance' in the market for UET shares and so contravened section 197 (1) (b) of the Securities and Futures Act, MAS said.
Section 197 (1) (b) states that a person should not create or do anything that is intended or likely to create a false or misleading appearance with respect to the market or the price of securities.
In his defence, Dr Tan argued that the share purchases were 'bona fide commercial transactions' carried out as part of the ordinary business of a fund manager.
Pheim had subscribed for UET shares at its initial public offering in April 2004 and through the rest of the year continued to buy UET shares for client accounts at an average of 47.5 cents.
That was because Pheim believed the shares were undervalued as the stock held bright prospects, the court documents say. The alleged false orders at the end of December had also been placed on a 'careful discretion' basis, the documents say.
This means the broker had discretion to package the orders to not unduly move the market price and so would slice them up to match available sell orders.
According to a presentation to investors posted on its website, Pheim's assets under management rose from US$97 million in 1998 to US$1.26 billion as at June 2009. The Government of Singapore Investment Corporation has been a client for 16 years, according to the presentation. Malaysia's Employee Provident Fund and Norway's central bank are also among its clients.
MAS is represented by Senior Counsel Cavinder Bull of Drew & Napier, who also acted for it in the ongoing insider trading suit against former WBL Corp executive Kevin Lew.
Dr Tan is represented by Senior Counsel Michael Hwang, and Pheim by Foo Maw Shen of Rodyk & Davidson. The case is due for hearing in the High Court at the end of the month.
MAS has enforced civil penalties 17 times without court action since the civil penalty regime was introduced in 2004 as an alternative to criminal prosecutions. The civil route requires less evidence to prove misconduct, but unlike criminal trials does not carry a jail term.

Lawyers for Pheim confirmed a suit had been filed but declined further comment. When contacted, MAS also confirmed a suit had been filed but similarly declined comment.
Source: Business Times © Singapore Press Holdings Ltd. Permission required for reproduction.


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Dr Tan Chong Koay,
Chief Executive,
Pheim Asset Management

Dr Tan Chong Koay founded Pheim Asset Management Sdn Bhd and Pheim Asset Management (Asia) Pte Ltd in 1994 and 1995 respectively. Pheim provides portfolio management services to mainly institutions (including government agencies, government-linked companies, corporations, insurance funds, unit trusts and mutual funds), and high net worth individuals. As at 30th June 2008, Pheim manages US$ 1.1 billion in total assets under management. Pheim specializes in value investing in the region of ASEAN and Asia ex Japan, on the foundation of a proven unique investment philosophy of not being fully invested at all times. Pheim also has an established track record of managing funds in accordance with Syariah principles, and with small cap focus.


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