] received a B for its new Stewardship grade, Morningstar's
Kathryn Spica writes. As Spica writes, Invesco has been through tough times, such as its implication in the 2003 market timing scandal, but CEO Marty Flanagan
gave industry watchers confidence that he could steer Invesco in the right direction.
Invesco has made major strides under his watch, such as the purchase of PowerShares in 2006, which gave the firm a strong entry into the ETF business, Spica writes. Its purchase of a suite of mutual funds from Van Kampen has continued to improve its mutual fund lineup, Spica says, and established a co-CIO structure, which helped build a sustainable investment culture.
Why a B then?
Manager retention is still low compared with similarly sized firms, Spica writes, which may contribute to performance beneath the firm's standards. In general, however, the firm is on the right path, Spica says.
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