Dec. 4–Shares in London-listed Amvescap dropped 14 pence to 389 1\/2 pence in heavy trading as investors fretted it might lose investment funds on the back of a civil action for fraud at its USsubsidiary Invesco Funds Group (IFG).<\/p>\n
In a clear sign of the potential of the British fallout from the US “market timing” trading scandal, rival Putnam Investments was sacked yesterday by Unilever from a UKpound 275 million mandate to run part of its pension fund in the UK.<\/p>\n
Unilever said it decided to end the mandate when it heard Putnam was being investigated.<\/p>\n
Putnam reached an undisclosed settlement last month with the US Securities and Exchange Commission over allegations it was involved in securities trading fraud. It neither admitted nor denied wrongdoing.<\/p>\n
More than UKpound 17 billion of funds have pulled out of Putnam following the scandal.<\/p>\n
Amvescap’s IFG, and its chief executive Paul Cunningham, were accused by New York attorney general Eliot Spitzer and the SEC of allowing “massive” amounts of improper mutual funds share trading by hedge funds. They are “vigorously” contesting the charges.<\/p>\n
Amvescap, which manages UKpound 193 billion of assets, has already lost nearly UKpound 7 billion of funds this year, mainly in the US.<\/p>\n
Amvescap said: “Of course it is a concern and we are talking to our clients. But they understand that we continue to focus on the business and that this is totally separate from our other international operations.”<\/p>\n
—–<\/p>\n
To see more of the Daily Mail and the Financial Mail on Sunday, or to subscribe to the newspaper, go to http:\/\/www.financialmail.co.uk<\/p>\n
UKpound preceding a numeral refers to the United Kingdom’s pound sterling. (c) 2003, Daily Mail and the Financial Mail on Sunday, London. Distributed by Knight Ridder\/Tribune Business News.<\/p>\n
AVZ, MMC, UL, UN,<\/p>\n","protected":false},"excerpt":{"rendered":"
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