Nov. 17, 2003 — Assets at troubled Putnam Investments dropped by another $7 billion in the past week, the mutual fund company’s parent, Marsh & McLennan (MMC), said today in a regulatory filing.
Putnam, which has been rocked by the mutual fund trading scandal, saw its assets under management slip to $256 billion from $263 billion a week earlier. Marsh & McLennan previously disclosed that investors pulled $14 billion out of Putnam in the first week of November.
The latest investor defections came as Putnam agreed to settle charges with the Securities and Exchange Commission stemming from improper trading of its funds.
Under the settlement announced last week, Putnam will repay investors for losses due to so-called market timing by its employees. The fund company also said it would improve its governance and compliance.
Marsh & McLennan has said that Putnam has “sufficient liquidity” to handle investor redemptions without increasing portfolio transaction costs.