Ray Cunningham, Invescos chief operating officer, Timothy Miller, the portfolio manager of the Invesco Dynamics Fund and the Invesco Mid-Cap Growth Fund, and Thomas Kolbe, a senior account executive at Invesco, have left the company, AIM Investments told Money Management Executive on Friday.
"Ray Cunningham and Thomas Kolbe are no longer with the company," a spokesperson for AIM said in a telephone interview. The company also issued a press release early Friday saying that Miller has left the company.
Last December, the Securities and Exchange Commission and New York Attorney General Eliot Spitzer filed an administrative complaint against the Denver-based fund complex and Cunningham alleging that Invesco knowingly permitted preferred clients to market time its mutual funds at the expense of long-term shareholders.
Miller and Kolbe were named in the original complaint but not charged. As a result of the complaint, Cunningham and Kolbe were put on leave, while Miller relinquished his duties as chief investment officer to focus more on stock selection.
However, last week, the SEC announced plans to amend the suit to include "additional defendants" and "additional charges." Although the individuals were not named, a source familiar with the matter told MME that one of the defendants is a portfolio manager at Invesco. The SEC plans to file the amended complaint on or before July 26, according to a motion filed earlier this month with the U.S. District Court in Denver.
Millers attorney, Marc Kasowitz, and Cunninghams attorney, James Doty, did not return phone calls seeking comment.
Regarding Millers departure, AIM said that the management changes "will not have a significant impact on the way the funds are managed." However, the company conceded that the team will work to reduce the funds large-cap exposure and place a heavier emphasis on selecting growth stocks with attractive valuations.
Paul Rasplicka and Michael Chapman will replace Miller and Michelle Espelien Fenton as managers of the two Invesco funds. AIMs Small/Mid-Cap Core team will also provide assistance in running those funds. Rasplicka, the lead manager, joined AIM Investments in 1998 and has 22 years of experience in the investment management business. Chapman has worked at AIM since 2001 and has nine years under his belt.