Deals & People August 20, 2008

Genworth, AssetMark Complete Acquisition

Genworth Financial, Inc., launched its new wealth management division, Genworth Financial Wealth Management, Inc.
Reported by

The announcement completes the integration of two Genworth companies: AssetMark Investment Services, Inc., and Genworth Financial Asset Management, according to a Genworth release. Genworth completed its acquisition of AssetMark in October 2006.

The newly combined firm has more than 4,500 financial advisers and $18 billion in assets under management.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

“The integration of AssetMark and Genworth Financial Asset Management creates a unique opportunity to bring together two companies with deep roots in the independent advisory business and a shared vision for the future,” said Ron Cordes, co-chairman, Genworth Financial Wealth Management, in the release. “We were able to examine what each company did well individually, blend the best of both platforms, and create new tools and services to meet the evolving needs of independent financial advisers.”

Genworth Financial Wealth Management offers independent advisers a fee-based investment management platform, including a choice of eleven portfolio strategists and an array of investment management firms, the company said.


Compliance August 20, 2008

Putnam Begins Payouts for Market-Timing Settlement

Putnam Investment Management, LLC, will pay the first distribution of $40 million to compensate its mutual fund investors affected by undisclosed market timing and excessive short-term trading.
Reported by

According to the Securities and Exchange Commission (SEC), the payment is the first in a series of Fair Fund distributions totaling more than $150 million to more than 1.5 million Putnam mutual fund investors. The first payment will reach 600,000 investors.

When the market-time scandal was unveiled in 2003, the SEC and the Massachusetts Securities Division brought separate administrative proceedings against Putnam (see Market Timing Leads to “Late” Departure of Putnam Fund Managers). As part of an April 2004 settlement, Putnam agreed to pay disgorgement and financial penalties and to implement certain compliance measures, mutual fund governance steps, and employee trading reforms. The Fair Fund distribution is composed of money that Putnam paid to settle both the SEC and Massachusetts actions, according to the SEC.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

More information Fair Fund distribution and the Putnam settlement is available at www.putnam.com/individual/fair_fund/.

«