Putnam Investments cuts 75 jobs

Putnam Investments recently cut about 75 jobs in distribution and support functions after the mid-year acquisition of the money manager by an affiliate of Canada's Power Financial Corp, Putnam said.

"Putnam eliminated approximately 75 jobs in August in the distribution and support areas where there was some redundant capability," Putnam spokeswoman Laura McNamara said on Tuesday. "No jobs were impacted in the investment division," she said. The Boston-based money manager was bought in early August by Power Financial's Great-West Lifeco Incaffiliate from insurance broker Marsh & McLennan Cos Inc for $3.9 billion in cash.

The cuts came as Putnam appointed William Connolly in August as head of its global distribution.

Putnam has around 2,700 employees and $191 billion in assets under management, McNamara said. She said she could not provide an estimate of the financial impact of the job cuts.

Assets have shrunk from about $371 billion in 2000 as growth-style investing -- or picking stocks that show fast earnings growth, which was Putnam's key strength -- went out of favor in the 2000-2002 bear market and as it was later charged by regulators with trading abuses.

But with growth-style investing making a comeback in recent months, Putnam's performance could improve. Outflows from its stock and bond funds have slowed to $872 million in September from more than $1 billion both in August and September 2006, according to data from research firm Financial Research Corp. (Reuters)