Great-West Lifeco, a Canadian insurance giant, has ended its relationship with Putnam Investments because of the Boston firm’s involvement in the mutual fund scandal, Canadian Press reports.

Great-West Lifeco is the latest in a series of Putnam partners that have opted out since the company became entangled in a market-timing mess. Last month, Putnam paid $110 million to settle with federal and state regulators. Putnam had sub advised for over $670 million worth of Great-West funds.

Great-West Senior Vice President Rich Rausch told Canadian Press, "We believe that Putnam has acted capably on behalf of our unit holders over the past decade, but with our review, we have identified other international sub-advisors who we believe will enhance our international fund offerings."

The decision marked the end of a six-month period in which Great-West weighed the pros and cons of its relationship with Putnam, which will formally end July 19. New sub-advisers, including UBS and JP Morgan , will take over then.


The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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