Putnam will merge funds and cut jobs

Putnam Investments said today it will merge six of its equity funds into larger stock funds and put funds under the control of individual fund managers.

Putnam, the Boston mutual fund company, also said it would cut 12 portfolio managers and 35 staff positions as part of its restructuring, out of a workforce of about 2,500 people.

The changes are the latest by Robert Reynolds, the company's new chief executive, brought in to revamp the company after years of middling performance. He also plans to change the company's compensation structure to make it more driven by performance, both for portfolio managers and for research analysts.

"We would make these changes where markets were rising or falling,'' Reynolds said in a statement today. "They reflect a drive to simplify our offerings and foster leaner, more rapid decision-making to deliver better results.''

Putnam is still looking to hire more talent, he added in the statement.

Funds that will be merged into larger Putnam funds include the firm's Capital Appreciation Fund, Classic Equity Fund, Discovery Growth Fund, New Value Fund, OTC & Emerging Growth Fund, and Tax Smart Equity Fund.
(By Ross Kerber, Globe staff)