Fund Firms Touched by Scandal Continue Outflows

March 23, 2004 ( - The ongoing mutual fund trading scandal continued to exact a toll on some fund companies' assets in February as investors headed for the exits.

The FRC, a financial services research firm, reported that Putnam Investments – the Boston-based firm that has been a key target of the market timing and late trading probe – gave back $2.4 billion in February on top of the $3.1 billion outflow in January. Putnam, which FRC continues to rank as the sixth largest fund company, has $128 billion in assets.

FRC also reported that:

  • Janus had a $1.9 billion February outflow on top of January’s $2 billion loss. It now has $83 billion in assets.
  • AIM Distributors had an $865 million outflow in February after  January’s $785 million decline. AIM has $79 billion in assets.
  • MFS Investment Management had a $513 million February outflow in addition to its $99 million giveback the month before. It has $80 billion in assets.