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UPDATE 1-Fund manager Putnam to cut about 115 jobs, or 8 pct of staff

Published 2016-11-15, 04:10 p/m
© Reuters.  UPDATE 1-Fund manager Putnam to cut about 115 jobs, or 8 pct of staff
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(Adds details on Putnam's financial performance)

By Tim McLaughlin

BOSTON, Nov 15 (Reuters) - Putnam Investments plans to cut about 115 jobs, or nearly 8 percent of its workforce, the mutual fund manager's parent company said on Tuesday.

Investors have pulled billions of dollars out of Putnam's actively managed mutual funds this year amid a broader industry shift toward passively managed index funds and exchange-traded funds.

With headquarters in Boston, Putnam is the U.S.-based asset manager for Canada's Great-West Lifeco Inc GWO.TO .

Most of the cuts will be made in Putnam's operations and technology areas, according to a statement from Great-West Lifeco. A small number of investment management professionals also will be leaving, it said.

In the third quarter, Putnam's fee income tumbled 19 percent to $176 million, outpacing a 5 percent drop in operating expenses, according to Great-West's financial statements. Putnam's operations posted an operating loss of $5 million.

At the end of the third quarter, Putnam's mutual funds had $72.3 billion in assets under management, compared with $78.7 billion in the year-earlier period.

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