Invesco and Massachusetts Financial Services Co. were put on review by the Illinois Teachers’ Retirement System because of alleged mutual fund trading abuses. Invesco Global Asset Management oversees $609 million in international equities for the fund, and MFS Institutional Advisors manages $616 million in domestic large-company growth stocks, said John Day, a spokesman for the fund. Inclusion on Illinois’ “watch list” can lead to a company’s firing.
The Securities and Exchange Commission has brought a complaint against Invesco Funds Group and notified MFS it may be subject to civil action. Pension funds have pulled money from mutual funds accused of trading abuses, including Putnam Investments, which has lost over $10 billion in withdrawals in the past two months.