Tuesday, August 26, 2008

Putnam, Janus investors get millions

The Securities and Exchange Commission has distributed about $58 million to investors who were harmed by undisclosed market timing in mutual funds managed by Putnam Investments and Janus Capital Management LLC.

Under the terms of the settlement with Putnam, more than 600,000 investors who put money in funds managed by the Boston-based company will receive $40 million.

This is the first of several fair fund distributions that will return more than $150 million to more than 1.5 million affected investors in Putnam mutual funds.

After settling separate proceedings brought by the SEC and the Massachusetts Securities Division in April 2004, Putnam agreed to pay disgorgement and financial penalties and to implement certain compliance, mutual fund governance and employee trading reforms.

The SEC also distributed more than $18 million to more than 325,000 investors who were affected by market timing in certain mutual funds managed by Denver-based Janus. The distribution is the first in a series that will return about $100 million to investors harmed as part of the SEC's 2004 settlement with the money manager.

Under the terms of the settlement, Janus agreed to an SEC order that charged the company with anti-fraud violations and requiring the respondents to pay $50 million in disgorgement and $50 million in civil penalties.

Janus agreed to the order without admitting or denying the allegations.

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