Power Financial CEO Jeffrey Orr told attendees at the firm’s annual meeting that Putnam Investments is back on track, but that its profit margins won’t reach industry levels for a year or two, the Montreal Gazette reports.“One of the strongest pieces of evidence that the company’s affairs are strengthening is that the redemption rate has how reached the industry level,” Orr said. “It’s not like money is flowing out of Putnam faster than other companies. The challenge right now is to get more gross sales.”
But to strengthen sales further, he added, Power intends to sound a strong message about its faith in the company and prompt better performance in Putnam’s large-cap funds.
Power Chairman Robert Gratton said one of the reasons the company acquired Putnam in February is that it has offices managing $18 billion in China and Japan, areas where Power has wanted to expand.