Putnam Investments is poised to recover after suffering $6.6 billion in outflows in the first quarter, according to Michael Cherkasky, chief executive officer of parent company, Marsh & McLennan Cos.

The outflows aren't over quite yet, said Cherkasky, speaking to analysts during a conference call. The firm expects investors to yank another $5 billion by the middle of the year due, in part, to the end of a partnership with an Australian institutional investor, he said. Much of the outflows have been due to retail investors punishing the firm for its part in the mutual fund scandal. But by the third quarter, Cherkasky contends, the tide will turn, bringing positive inflows to the company.

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