Putnam Investments to pay $110m fine

The sixth-biggest mutual fund, Putnam Investments, is to pay fines totaling $110m (€90.93m) over market timing and has agreed to make "far-reaching reforms".

Market timing, though not illegal, is the practice of short-term trading in mutual funds' own shares, which breaches industry codes as it harms the interests of long term investors.

This is the first time the US state and federal regulators have fined a company over improper trading in mutual funds.

Managers and clients of the company were found to be engaging in improper rapid trading of mutual fund shares at the expense of shareholders.