The Securities and Exchange Commission has fined four fund companies—AllianceBernstein, Putnam Investment Management, Smith Barney Fund Management and Salomon Brothers Asset Management—$1.7 million for failing to disclose to investors in closed-end funds that distributions it paid to them between 2001 and 2004 came either entirely or partly from shareholder capital or capital gains. Alliance, Smith Barney and Salomon are each paying a fine of $450,000, and Putnam is paying $350,000. The four firms settled with the SEC without admitting or denying the charges.

The SEC said that Alliance made 22 such distributions between 2002 and 2004 for two close-end funds, The Spain Fund and Alliance All-Market Advantage Fund, and Putnam made 42 such distributions in four-closed funds between 2000 and 2002, the Putnam Master Intermediate Income Trust, Putnam Premier Income Trust, Putnam Master Income Trust and Putnam Managed High Yield Trust.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.