he move, announced Thursday, is part of the London-based money manager's plan to fold its scandal-tainted Invesco mutual funds unit into another subsidiary, AIM Investments of Houston. The changes take effect Oct. 15. Invesco built its reputation as a no-load fund group, but its business was hurt during the recession. The company then faced a scandal when regulators accused it and former chief executive Ray Cunningham of allowing improper trading by wealthy investors. Invesco and AIM recently agreed to a $451 million settlement. Cunningham reached his own settlement, accepting a $500,000 penalty and a two-year ban from the industry. Invesco will still manage $120 billion for institutions in North America and billions more for retail mutual fund investors outside the country. It reported $14 billion in assets under management at the end of June 30, down from $56 billion four years ago. Also Thursday, the company said four Invesco fund said managers had been replaced: Thomas Wald of the Invesco Health Sciences fund; Joseph Skornicka of the Invesco Financial Services fund; and Stacie Cowell and Cameron Cooke, who managed the Invesco Small Company Growth fund. AIM spokesman David Bachert said the management changes weren't related to the settlement over improper trading allegations. Bachert said the new managers would "best serve the interest of shareholders" but declined to comment further.
Seventeen Invesco funds to be rebranded as AIM Investments
DENVER (AP) - All 17 of Invesco's U.S. retail mutual funds will adopt the AIM Investments label later this month, as Amvescap PLC seeks to restore investor confidence following an improper trading scandal and $451 million settlement.
