Putnam unveils retirement management program
Putnam Investments today introduced a program to manage 401(k) retirement plans for companies and plan advisers, the latest new product from the Boston mutual fund firm.
Putnam, a unit of Canada’s Power Financial Corp., said its new 401(k) program will allow it to sell both its own mutual funds and those of other fund families.
Putnam had seen billions of dollars withdrawn by investors amid poor performance, and since last summer, new chief executive Robert Reynolds has brought in new executives and changed some fund management structures to improve returns.
In January, he also introduced a set of “absolute return’’ funds aimed at providing steady results to individual investors in any market conditions.
Those funds will be among the products offered through the new program, Putnam said. Power Financial’s FASCore record-keeping business also will be involved with the 401(k) program.
In an interview today Putnam’s head of marketing, Jeffrey Carney, said the new program will replace a previous program in which Putnam sold retirement plans together with Mercer LLC, a unit of Marsh & McLennan Cos. of New York. Marsh & McLennan previously owned Putnam before selling the funds company to Power in 2007.
Carney said the move to FASCore will give it more reach to sell retirement plans and help lower costs.
“It gives us advantages both from a product and pricing standpoint,’’ he said.
(By Ross Kerber, Globe staff)