Marsh & McClennan
, as expected, is selling its Putnam Investments mutual fund company to a Canadian financial services firm for $3.9 billion in cash.
Great-West Lifeco, a division of of Power Financial, is buying Putnam. A tentative deal had been reached in late December.
Marsh had been shopping its tarnished mutual fund arm, which has suffered from bad performance and investor redemptions, for the past several months.
Power is Canada's biggest mutual fund operator.
In the now three-year-old mutual fund trading scandal, Putnam took a big hit to its reputation after regulators discovered that some of the firm's portfolio managers had been making inappropriate trades in the funds they managed. Putnam ultimately paid a $110 million penalty in a settlement with securities regulators over its role in the mutual fund trading scandal. The fund company was one of the first to be charged in the far-reaching scandal.
Marsh, in September, said it had received a number of inquiries from possible buyers about whether it would be interested in selling Putnam. In light of those inquiries, the New York-based insurance broker said it would explore various options for the Boston-based fund family, including a sale.