, which on Wednesday launched a new defined contribution platform
using recordkeeping from sister company FASCore
(see coverage from The MFWire's
), hopes to grow its 401(k) business to as much as $200 billion in the coming years, reports
The Boston Herald's
Putnam currently manages $12.5 billion of 401(k) and Taft-Hartley plan assets.
Since Bob Reynolds
, one of the architects behind Fidelity's
bundled 401(k) product, took the top job at Putnam last summer, there has been no shortage of speculation among industry insiders as to how his arrival would impact Putnam's 401(k) strategy, with some predicting that he might do an acquisition.
Putnam currently does not have its own recordkeeping operations; it is a player in the 401(k) market on the defined contribution investment-only side. In the past, though, it had been in the recordkeeping business until 2004, when its then-parent, Marsh & McLennan Companies formed Mercer HR Outsourcing, combining Putnam's DC recordkeeping business and William Mercer's benefits outsourcing business.
On Wednesday, Putnam said it has renewed its contract with Mercer for existing clients. This covers
500 corporate and Taft-Hartley plans, 500,000 participants and $12 billion of assets. For new business,
Putnam will work with FASCore.
Among the other media outlets that covered Putnam's announcement include The Boston Globe
Wall Street Journal
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