Unilever Leaves Putnam; DuPont Shuts Out Janus

Putnam Investments and Janus Capital Group Inc., two mutual fund companies that were implicated early on in the industry scandal, suffered new blows as some big clients defected.

Boston-based Putnam said Wednesday that it had been fired by Anglo-Dutch consumer goods giant Unilever from managing part of the firm’s British pension fund.

Separately, DuPont Co. said its employees would not be able to put new money into retirement accounts managed by Denver-based Janus.

Unilever joins a growing number of companies, including Wal-Mart Stores Inc., Revlon Inc. and Merck & Co., that have pulled money from Putnam. The client exodus began soon after Oct. 28, when regulators charged Putnam with securities fraud for allowing insiders to engage in “market timing” in Putnam funds. The firm settled Securities and Exchange Commission charges without admitting guilt.

Janus also has suffered cash outflows related to allegations of timing abuses in its funds, though the firm hasn’t been formally charged with wrongdoing.

From Reuters