While Putnam has lost 60% of assets in the past five years, its remaining $192 billion will give the Canadian acquirer a presence in the U.S. mutual fund market.
Many believe Power Financial will breathe new life into Putnam. “It’s a good brand that you can resuscitate,” Eric Bushell, chief investment officer at Signature Funds, told Bloomberg.
MMC has said it will use the $2.5 billion it will collect after taxes to acquire another company, buy back stock or reduce debt.
As part of the deal, Putnam CEO Charles “Ed” Haldeman, Jr. will remain in his position.
