Putnam trustees “pleased” with $110m settlement
US – The head of Putnam’s funds trustee board says he is “pleased” with Putnam Investments’ 110 million-dollar market timing settlement with the SEC and the state of Massachusetts.
“The Trustees of the Putnam Funds are pleased that Putnam Investments has reached a final settlement with the SEC and Massachusetts with respect to all allegations regarding improper trading in the Putnam Funds,” said John Hill, the chairman of the board of trustees of the Putnam Funds.
“These matters have now been thoroughly investigated for over six months by both agencies as well as by our own board's audit committee, which issued its report and recommendations several weeks ago.
“We are confident that strong procedures are now in place at Putnam to prevent any recurrence of similar problems in the future.”
Hill added: “We intend to work with the independent consultants appointed under these settlements to ensure that appropriate restitution will be paid to the Funds and their shareholders as quickly as possible.” Putnam would reimburse all costs, civil penalties and legal fees.
Hill said the settlements would allow Putnam’s chief executive Ed Haldeman and his managers “to focus their energies on pursuing Putnam's number one goal: achieving superior and consistent investment results for our shareholders”.
Last week Putnam confirmed it had made settlement agreements with the Securities and Exchange Commission and the SEC and Massachusetts over market timing in mutual funds trading. The total settlement was 110 million dollars.
"These settlement agreements with the SEC and Secretary Galvin's office reflect our commitment to put these matters behind us and continue to move forward as a firm focusing on rebuilding investor confidence and delivering consistent, dependable, superior investment performance over time," Haldeman said.