NEWS Summary

Gretchen Morrison of the New York Times News Service wrote the article "Is mutual fund mass exodus next" that was published in the Toronto Star on November 9, 2003. Gretchen writes "The investigations into anti-investor practices at mutual funds are starting to register with fund shareholders. In the week that ended November 5, investors in Putnam funds pulled roughly $5.4 billion (U.S.) from the company, according to AMG Data Services. Guess these folks don't like the idea that Putnam fund managers might have put their personal profits ahead of their shareholders, as regulators contend."

Gretchen also makes an important observation "Investors have lived through a steady stream of financial mischief in recent years. But the mutual fund scandal is worse because fund managers have a fiduciary duty to put their investors' interests first."

SIPA says - The last comment applies equally to Brokers and Registered Representatives. They have a fiduciary duty to their investors.