Another company has accepted the government's money-fund guarantee offer. Putnam Investments
said Wednesday that it has joined the program. Shareholders of Putnam’s retail money market funds as of the close of business on September 19, 2008, will be protected should any of the funds see their NAV fall below $0.995.
Putnam has already had to close its' Prime Market Fund, an institutional offering, earlier this month. The company eventually stuck a deal with Federated Investments
to give investors in the liquidated fund shares of a similar Federated fund.
Company Press Release
BOSTON, October 1, 2008 – The Board of Trustees of the Putnam Funds
authorized the Putnam Fund’s participation in the U.S. Treasury’s Money
Market Guaranty Program.
The program provides coverage to shareholders of Putnam’s retail money
market funds as of the close of business on September 19, 2008. The
temporary guaranty will be triggered if a participating fund’s net asset
value falls below $0.995.
“We believe participation in the program is the right thing to do for
shareholders who are understandably concerned about preserving their
assets,” said Robert L. Reynolds, President and Chief Executive Officer of
Putnam Investments. “Putnam’s money market funds have maintained their
$1.00 share price and continue to represent safe and high-quality
investments. However, the program is well worth the peace of mind we hope
it provides to investors.”
According to the Treasury Department, the program will exist for an initial
three-month term, after which the Secretary of the Treasury will review the
need and terms for extending the program. While the program protects the
accounts of investors, each money market fund makes the decision to sign up
for the program. Investors cannot sign up for the program individually.
Founded in 1937, Putnam Investments is one of the nation's oldest and
largest money management firms. As of August 31, 2008, Putnam managed $163
billion in assets, of which $96 billion is for mutual fund investors and
$67 billion is for institutional accounts. Putnam has offices in Boston,
London and Tokyo. For more information, go to www.putnam.com.
Stay ahead of the news ... Sign up for our email alerts now