According to a TRS news release, the board’s actions were prompted by the two firms’ involvement in the ongoing fund trading scandal with civil enforcement actions levied against them by the US Securities and Exchange Commission (SEC).
INVESCO Global Asset Management manages a $609 million international equity assignment while MFS Institutional Advisors manages a $616 million domestic large cap growth mandate, according to the release.
INVESCO Funds Group and its president and chief executive officer Raymond Cunningham were slapped last week with parallel state and federal civil fraud lawsuits in connection with allegations of widespread market timing (See Prosecutors: Invesco Engaged in Massive Market Timing Scheme ). Also, Massachusetts Financial Services Co. (MFS) Investments, which has said it is policing market timing, apparently missed 11 funds now under scrutiny because the company determined the funds were not at risk for stale market price (See MFS Misses Market Timing in 11 Funds ).
TRS is the retirement system for public school teachers and administrators employed in all Illinois public schools except the city of Chicago. It serves more than 310,000 members and annuitants and had $29 billion in asset as of November 30.