While this week has been prosperous for most other fund companies, the story is different at Putnam Investments.
In the first full week after being charged with civil securities charges by U.S. regulators, the firm has seen investors withdraw $4.4 billion from its funds, The Wall Street Journal reports, citing a report by AMG Data Services.
State pension plans and other institutional investors had already taken $4 billion of their own out of Putnam, but according to Robert Adler, president of AMG, the news of the investors withdrawals and the amount they withdrew constituted one of the largest one-week mass exoduses in fund history, and easily the largest this year.
"Investors are voting with their dollars," Adler told The Journal. He added that those leaving Putnam were "making a strong statement" about their feelings over the companys legal trouble.
Putnam, the nations fifth-largest fund company, has said it is innocent of the Securities and Exchange Commissions charges.
The AMG report revealed that excluding Putnams withdrawals, this week would have been one of the best in weeks as far as fund inflows go.