Putnam Renews Share Repurchase Program for Closed-End Funds
17 September 2009 - 10:41PM
Business Wire
Putnam Investments announced today that the Board of Trustees of
The Putnam Funds (the “Trustees”) has voted to renew the current
repurchase program for Putnam’s closed-end funds. As renewed, the
program will allow each of the five Putnam closed-end funds to
repurchase, during the one-year period beginning October 8, 2009,
up to 10% of its common shares outstanding as of October 7,
2009.
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 shows that share repurchases represent
attractive investment opportunities for the funds. Since the
commencement of the program in 2005, repurchases by these five
funds have contributed in the aggregate approximately $50.4 million
in per-share net asset value to remaining common shareholders of
the funds. As indicated in the table on the following page, the
repurchase program has been an important contributor to fund
returns at net asset value.
Contribution of
Share Repurchases to Total Returns at Net
Asset Value (10/25/05-8/31/09)
Cumulative Total
Returns (Including Share Repurchases) at Net
Asset Value (10/25/05-8/31/09)
Putnam High Income SecuritiesFund
(NYSE: PCF)
2.00% 12.51%
Putnam Managed MunicipalIncome
Trust (NYSE: PMM)
0.89% 3.77%
Putnam Master IntermediateIncome
Trust (NYSE: PIM)
2.03% 9.62%
Putnam Municipal
OpportunitiesTrust (NYSE: PMO)
1.27% 8.18%
Putnam Premier IncomeTrust (NYSE:
PPT)
2.68% 11.11%
Performance information does not reflect returns at market
price, which will vary from, and may be lower than, returns at net
asset value. 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.
Performance attribution is approximate and reflects the daily
impact, gross of fees, of per-share net asset value increases
caused by share repurchases made at a discount to net asset value
during the period. In addition to reflecting repurchases under the
share repurchase program, cumulative total returns at net asset
value reflect the impact of issuer tender offers completed both by
each fund in July 2007 for 10% of its outstanding shares at 98% of
net asset value and by PIM in April 2008 for 15% of its outstanding
shares at 99% of net asset value. For PMO and PMM, contributions to
returns at net asset value reflect that the number of shares deemed
to have been repurchased by these funds was revised using the pro
forma combinations, as of October 5, 2007, of Putnam High Yield
Municipal Trust and PMM and of Putnam Investment Grade Municipal
Trust and Putnam Municipal Bond Fund and PMO. (In February 2008,
Putnam High Yield Municipal Trust merged into PMM, and Putnam
Investment Grade Municipal Trust and Putnam Municipal Bond Fund
merged into PMO.)
In October 2005, the Trustees initiated the program, which, as
subsequently amended, authorized the repurchase of up to 10% of
each fund’s outstanding common shares over the two-years ending
October 5, 2007. The Trustees subsequently renewed the program
twice, to permit the repurchase of an additional 10% of each fund’s
outstanding common shares over the twelve-month period beginning on
October 8, 2007 and of an additional 10% over the twelve-month
period beginning on October 8, 2008 (in each case based on common
shares outstanding as of the last business day prior to such
period).
The funds will repurchase shares at a discount, subject to
procedures approved by the Trustees. 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. 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 such funds’ net asset value.
About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money
management firm with over 70 years of investment experience. As of
August 31, 2009, Putnam had $110 billion in assets under
management. Putnam has offices in Boston, London, Frankfurt,
Amsterdam, Tokyo, Singapore, and Sydney. For more information, go
to www.putnam.com.
Putnam mutual funds are distributed by Putnam Retail
Management.
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