A Canadian mutual fund firm is the likely buyer of
Marsh & McClennan's
Putnam Investments, according to a published report.
Montreal-based Power has a tentative deal with Marsh to buy Putnam for $3.9 billion, says The Wall Street Journal. Marsh had been shopping its tarnished mutual fund arm 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.