Power Financial, a Canadian insurance company, is interested in possibly acquiring Putnam Investments as a way of gaining an entrée to the U.S. mutual fund industry, the Globe and Mail reports, citing investment banking sources familiar with the matter.

Power Financial owns Great-West Lifeco, and in so doing, is a major player in the U.S. insurance industry. It also owns IGM Financial, which is parent company of Canadian mutual fund firms Investors Group and Mackenzie Financial.

But some are skeptical Power Financial would be interested in Putnam, which has been losing assets since the bear market and timing scandal. The firm’s assets now stand at $180 billion, down 57% from $422 billion six years ago.

“Power has typically bought good companies and made them better,” commented one investment banker, who said they have worked with the company. “It would be something of a departure for them to take on a turnaround like Putnam.”

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.