The U.S. Department of Labor’s Employee Benefits Security Administration has reached a settlement agreement with Atlanta-based Invesco Trust Company, a subsidiary of Invesco Ltd., after the DOL found that Invesco Trust had violated the Employee Retirement Income Security Act by shoring up an investment fund without adequate disclosure to investors.
According to the agency, the fund in question was the Invesco Short-Term Investment Fund, a multibillion-dollar collective fund composed of ERISA plan assets. The DOL found that Invesco violated ERISA when it took steps to keep ISTIF trading at $1, despite the fact that the fund’s net asset value had fallen below $1 due to losses in the value of the fund’s securities holdings.
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