First American Funds, the mutual fund unit of U.S. Bancorp Asset Management, is the subject of an informal SEC investigation, said Cheryl Stone, U.S. Bancorp spokeswoman. Ms. Stone said the probe does not involve late trading or market-timing allegations; she would not provide further details. "As the action might relate to employees, we don't comment on employee matters, but we believe we have taken appropriate action," Ms. Stone said.
"We can neither confirm nor deny that there is an investigation. We don't comment beyond that," said John Heine, SEC spokesman.