Message #3 From:
NewsBot Date: September 29, 2006 02:59:00 PM
PIM News Putnam Extends Share Repurchase Program for Closed-End Funds
BOSTON--(BUSINESS WIRE)--Putnam Investments announced today that the Trustees of the Putnam Funds
have voted to extend the current closed-end fund share repurchase
program, which allows each Putnam closed-end fund to repurchase up to a
total of 10% of its outstanding shares, through October 6, 2007.
The Trustees of the Putnam Funds had initiated the program in October
2005 by authorizing the repurchase of up to 5% of outstanding shares
over twelve months. In March 2006, the Trustees increased the program to
cover 10% of each fund’s outstanding shares
over the same period. The share repurchase program is intended to
enhance shareholder value, as repurchases made at a discount have the
effect of increasing the net asset value per share of the applicable fund’s
remaining shares.
The Trustees believe that the record of the repurchase program to date
supports the assertion that share repurchases represent attractive
investment opportunities for the funds. Since the commencement of the
program, the funds have repurchased shares at an aggregate market price
of over $155 million, and these repurchases have contributed in the
aggregate approximately $23 million in per-share net asset value to
remaining shareholders of the 11 closed-end funds. As indicated in the
table below, the repurchase program has been an important contributor to
fund returns at net asset value.
Contribution to Returns at Net Asset Value (10/25/05—8/31/06)
Total Returns at Net Asset Value (10/25/05—8/31/06)
Performance information does not reflect returns at market price,
which will vary from, and may be lower than, returns at net asset value. Performance
attribution is approximate and reflects the daily impact of per-share
net asset value increases caused by share repurchases made at a discount
to net asset value during the period. Past performance does not
guarantee future results. More recent returns may be less or more than
those shown. Investment return, net asset value and market price will
fluctuate and you may have a gain or a loss when you sell your shares. Performance
assumes reinvestment of distributions and does not account for taxes. For
more recent performance information, call 1-800-225-1581 or visit www.putnam.com.
Putnam Investments and the Trustees of the Putnam Funds take actions and
make recommendations that they believe are in the long-term best
interests of fund shareholders. Over the last two years, the Trustees,
in conjunction with Putnam Investments, have undertaken a number of
voluntary initiatives on behalf of shareholders in addition to the share
repurchase program, including reducing fees and enhancing disclosures.
There is no assurance that the funds will purchase shares at any
particular discount levels or in any particular amounts. Under certain
conditions, regulatory requirements and other legal considerations may
limit the fund’s ability to repurchase shares.
Each fund’s repurchase activity will be
disclosed in its shareholder reports for the relevant fiscal periods.
See the funds’ most recent shareholder reports
for details. The number of shares permitted to be repurchased under the
program is based on shares outstanding as of October 7, 2005 (date of
program commencement). There is no assurance that the market price of a
fund’s shares, either absolutely or relative
to net asset value, will increase as a result of any share repurchases.
Some of Putnam's closed-end funds use leverage, which involves risk and
may increase the volatility of the fund's net asset value.
About Putnam Investments: At Putnam Investments, our top priority
remains prudently managing money for our more than 10 million individual
and institutional investors worldwide. Since 1937, our values have been
rooted in a profound sense of responsibility for the money entrusted to
us. We use a research-driven team approach to seek consistent,
dependable, superior investment results over time, although there is no
guarantee a fund will meet its objectives. We are committed to doing
what's right for investors, including maintaining stringent investor
protections for every Putnam fund.
Founded in 1937, Putnam Investments is one of the nation's oldest and
largest money management firms. As of August 31, 2006, Putnam managed
$181 billion in assets, of which $117 billion is for mutual fund
investors and $64 billion is for institutional accounts. Putnam has
offices in Boston, London and Tokyo. For more information, go to www.putnam.com
