Invesco Funds Group is the next fund company to face securities fraud charges, The Wall Street Journal reports this morning, in an expose on how some of the firms fund managers fought with top executives over their decision to permit market timing.
Calling the infight a "stormy debate," The Journal explains in detail how the portfolio managers didnt want big-money hedge funds to sap their performance. Management, however, was more than happy to accept the fund flows during the bear market.
Invesco issued a statement yesterday denying it had "engaged in any wrongful conduct to fund shareholders."
The piece goes on to describe the aggressive, go-go marketing strategy the firm adopted under the aegis of Mark Williamson during the late 1990s, much like what has been written about Larry Lasser, the former CEO of Putnam and Dick Strong, former chairman of Strong Funds.
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The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
