The firm also agreed to launch a review of its proxy voting policy in relation to executive compensation as well as a number of other investor protections and disclosures. The measures go beyond the requirements Putnam submitted to in its settlements with regulators. As a result, Putnam will again be eligible to compete for CalPERS and CalSTRS business. The sister pension fund groups terminated their combined $1.5 billion relationships with Putnam in late 2003 at the urging of the California Treasurer, who is a member of the board of both groups.
The three California groups have worked closely with Putnam over the last three months to develop the new standards.
Putnam also agreed to disclose fees by providing a "calculator" on its Web site so that investors can figure out fees or potential fees on an investment. The Boston-based fund manager will also disclose the aggregate annual compensation paid to each funds portfolio management team. Putnam will also divulge senior managements securities ownership, disclosed as a dollar range.
The firm will also make public the commissions it pays to the largest broker/dealers for equity funds as well as key investment staff turnover. Lastly, Putnam will provide a "detailed analysis and rationale" of its fee schedule on its Web site.
