Three pension fund managers are reviewing $1 billion of investments with MFS as the company draws nearer to a settlement with regulators on allegations of improper trading in its mutual funds, the Boston Globe reports.

The Los Angeles Water and Power Retirement Plan put MFS on its probationary watch list according to investment officer Lesley Kuo. MFS manages about $240 million for the Los Angeles fund. So has the Oregon Public Employees' Retirement Fund which MFS oversees $443 million for. The New Mexico Public Employees' Retirement Association has also lined up to monitor the company.

Meanwhile, MFS' parent, Sun Life Financial, announced that it had set aside millions to prepare for a settlement with regulators. Regulators are also considering suspending MFS CEO John Ballen and chief investment officer Kevin Parke.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE