Putnam Investment Management LLC

Latest Action: On August 18, 2008, the SEC announced the first in a series of distributions to mutual fund investors harmed by undisclosed market timing and excessive short-term trading in certain mutual funds managed by Putnam Investment Management, LLC. The first distribution consists of nearly $40 million going to more than 600,000 affected investors. Ultimately, the SEC will return more than $150 million to over 1.5 million affected Putman investors. Investors can obtain additional information about the distribution process by visiting the Putnam Fair Fund website or by calling 1-800-848-9697.

Background: On April 8, 2004, the SEC entered an Order against Putnam Investment Management LLC in connection with market timing and excessive short term trading by Putnam employees, including Putnam investment professionals, in Putnam mutual funds. The Order required, among other things, that Putnam pay $55 million in disgorgement and civil penalties, plus an additional amount, which has been calculated to be $42.9 million. Putnam assented to the Order. Under the terms of the SEC's Order, an Independent Distribution Consultant was retained to submit to the SEC a distribution plan for the distribution of the Fair Fund containing approximately $98 million to investors. For more information on the SEC's action, you can read In the Matter of Putnam Investment Management LLC, IA-2226 (Apr. 8, 2004) and a prior Order in which Putnam assented to other relief, In the Matter of Putnam Investment Management LLC, IA-2192 (Nov. 13, 2003).

On March 30, 2007, the SEC published a Notice of Proposed Distribution Plan and Opportunity for Comment in connection with this matter. The Notice advised that all interested parties could obtain a written copy of the proposed Distribution Plan and that all persons who desired to comment on the Distribution Plan could submit their comments, in writing, no later than April 30, 2007. The SEC received and considered public comments on the plan.

On July 20, 2007, the SEC approved a modified Distribution Plan. You can read the SEC’s Order Approving Modified Distribution Plan. A distribution may begin in the late summer or early fall of 2008 and, when it does, the distribution will continue over several months.

If you have questions, please contact the SEC's Boston Regional Office at boston@sec.gov.

http://www.sec.gov/divisions/enforce/claims/putnam.htm