More Investors Withdraw from Putnam Funds

[NNN0LHI]

http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=3&u=/nm/20031117/bs_nm/financial_fund_putnam_dc

BOSTON (Reuters) - Putnam Investments, the No. 5 U.S. mutual fund family, suffered $7 billion in outflows in the last week but the company has been able to handle those without increasing transaction costs, its parent, insurer Marsh & McLennan Cos., said on Monday.

Putnam had $256 billion in assets under management as of Nov. 14, including $168 billion in mutual funds and $88 billion of institutional assets, Marsh said. That compares with $263 billion of assets under management as of Nov. 7, including $171 billion in mutual funds and $92 billion of institutional assets, Marsh said one week ago.

more

[Ripley]

1. Just Great.

Where the hell can I put my money these days???? Stocks and mutual funds are all run by crooks and the money market savings are at a piddly 2%. I guess I should do what the big guys do and take it overseas.

[Onlooker]

2. Actually, your money isn't really affected by these crooks

The average investor isn't particularly harmed by the kind of corruption going on in mutual funds. If you're invested in one of the funds that was heavily manipulated, companies like Putnam are promising to make up for any losses (which probably isn't much unless you have millions of dollars in your 401K).

The whole irony of this scandal is that the nature of capitalism is to steal. (I'm not saying the economic alternatives to capitalism are any better.) I mean look how many rich familieis made their money off of slavery, child labor, polluting well water, killing union workers, supporting murderous regimes, and so on. Look at how the "lucky" investor in Enron, who happened to buy low and sell high (perhaps without knowing about the corruption), will be able to keep his profits. How many of the investors in tobacco who made millions have managed to keep those millions because they sold their stock before the scandal hit the courts? Lots of innocent people profit off corporate corruption and get to keep their gain, while honest workers and retirees get screwed. Our system is totally unfair. Get used to it.

[Ripley]

3. No, I don't have millions.

Actually I only have one Putnam fund and it's not a lot. But this seems to be a cancer spreading. What next Franklin, American? Then another S&L fiasco?

At least under Clinton I was making buckets of money just by being "conservative" and socking it away in high-yield money markets. I was rewarded for saving and paying off my credit cards each month.

Yeah, the system is weighted towards the wealthy. But there was a day when regular middle class Americans could make smart choices and save up a nest egg. Now, it doesn't appear I can even do that.

[huckleberry]

5. My letter from Putnam.

I have two mutual fund accounts with Putnam. Here is an excerpt from the letter I received last week.

- Reimburse the funds. At this point, we have no reason to believe these activities resulted in significant financial harm to shareholders. Nevertheless, Putnam has pledged to make full restitution to the funds for losses resulting from improper market timing activity either by Putnam employees or within Putnam-administered 401(k) plans."

At this point, I'm just going to leave my money with Putnam and hope for the best!

[jmcgowanjm]

4. desperation showing w/ SEC covering Putnam's settlement quick

Article showing at least a 1/4 of all funds
admitting insider trading. I would bet more.

If MorganStanley/JPM/GS are doing it,
pretty much everyone is doing it.

This had better go away.

[SoCalDem]

6. Don't worry, it WILL go away..

unfortunately, so will the money of a lot of people.:(..

I am starting to think that the ones who stuff money in their mattresses, might just have the right idea:)

[DulceDecorum]

7. Shush

The Muslims might hear you.
They have been keeping their hard earned cash OUT of institutions such as these ones.

Around a fifth of the world's population is Muslim, but investments in financial services that meet with Islamic Shari'ah law are estimated at less than $200bn.
Private wealth in the Middle East alone is put at four times that figure.
http://news.bbc.co.uk/2/hi/business/2393685.stm

These guys follow Shariah (Islamic religious law) and that forbids charging interest or loaning money to unsavoury charcters.
Shariah also allows for the amputation of the right hand for anyone caught with said hand in the till. Hence the marked unpopularity of Shariah banking with charcters such as Kenny Boy.

[sendero]

8. with...

..."safe" investments (CDs, MMs, passbook accts) paying in the .75 - 1.5% range, I think a mattress is perhaps the logical choice. A fireproof one, especially :)