The case against two former State Street execs accused of misleading investors has been dismissed. The SEC charged that John Flannery and James Hopkins had not disclosed the amount of exposure a $2.9bn fund had to risk subprime mortgage-related investments. Flannery was a chief investment officer of the Americas for State Street Global Advisors until November 2007. SSgA is the investment management arm for Boston-based State Street. The case centered on disclosures around SSgA's Limited Duration Bond Fund. The investment vehicle was managed as an "enhanced cash" fund that was designed to beat short-term interest rate benchmarks. The fund had $2.9bn in assets in mid-2007. Flannery and Hopkins, a former head of product engineering for SSgA North America, were accused of misleading investors about the extent of subprime mortgage-related investments in the fund. Investors included Emory Investment Management, General Motors Co, Xerox Corp, the Monetary Authority of Macao and the Houston Police Officers Pension System, case documents show. [Reuters, 10/31/11]