Putnam Investments, the nation’s seventh-largest mutual fund company, will re-compartmentalize its stock-picking units in order to try and regain the business it has lost as a result of the scandal, Reuters reports.

In the move, Putnam, the Marsh & McLennan unit that has lost $63 billion in assets over the past year thanks to its tumultuous ride in the ongoing improper trading scandal, will eliminate its specialty growth group and push all its small-cap teams into one large unit. Currently, Putnam manages about $10 billion in small-cap funds, specializing in value, core and growth stocks.

Morningstar Analyst Dan McNeela said, "These moves suggest Putnam wants a more consistent framework across its small-cap business and that [CEO Charles] Haldeman is looking for a more mainstream approach to growth investing."
Putnam’s CIO and small-cap value fund leader Edward Shadek will lead the new small cap division, while specialty growth group leaders Daniel Miller and Roland Gillis will retire.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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