Columbia Reinstates 2 Managers Put on Leave

Columbia Management Group, the Bank of America Corp. unit that was penalized for having improper mutual fund trading agreements, on Wednesday reinstated two money managers who were placed on leave during settlement talks with U.S. regulators.

Kurt Havnaer was renamed co-manager of the $1.8-billion Columbia High Yield Fund and Kimberly Campbell was added to three funds, including the $1.8-billion Columbia Tax Exempt Fund, said Charles Salmans, a spokesman for Boston-based Columbia. The two were suspended Feb. 26.

“The two portfolio managers were asked to take a leave of absence when we were engaged” in settlement talks with federal and state authorities, Salmans said. “We are happy the facts are such that we could reinstate them.”

Columbia, formerly a subsidiary of FleetBoston Financial Corp., permitted $2.5 billion of short-term trades by nine investors including hedge funds between 1998 and last year, according to the Securities and Exchange Commission and New York Atty. Gen. Eliot Spitzer, who led a fund industry probe.

Salmans said he did not know the status of a third manager placed on leave in March, Christopher Legallet of the Columbia Newport Tiger Fund.