Two Putnam Investments portfolio managers resigned Friday although neither was said to be involved in the improper trading that has pulverized the nation's sixth largest mutual fund company, Reuters reports.
Thomas Hoey, who headed up the company's Mid-Cap Value Fund for five years and Graham Spiers, a global asset allocation team member, quit for personal reasons. Neither, Reuters said, was immediately available for comment.
"These were personal decisions that were not related to market timing," said Putnam spokesperson Laura McNamara.
New CEO Charles Haldeman, who replaced Lawrence Lasser in November, had just recently redesigned the company's bonus system in his continued effort to revamp a firm that suffered $54 billion in outflows in 2003's fourth quarter alone. The bonus system overhaul had prompted many analysts to predict that Putnam managers might leave.
Replacing Hoey is Edward Shadek, already involved with the Mid-Cap Value Fund. In place of Spiers, Bruce MacDonald was added. Putnam uses teams, rather than individuals, to manage its funds.
Putnam, the first firm to be legally charged in the fund scandal, is trying to repair its image under the tutelage of Haldeman, who is said to be heavily pushing for performance upticks.