Riding the top of a killer fund flows wave, Putnam Investments
plans to bolster its wholesaling force by 30%.
A Putnam executive confirmed for MFWire
that the firm, which currently has 60 internals and 60 externals, will add 20 more people to each side over the next 12-to-18 months.
The firm had a killer spring so far in terms of asset gathering. Year-to-date as of May 2014, the firm saw $3.7 billion of net inflows, according to Morningstar
. The firm pulled in $3.725 billion of net flows for all of 2013, also according to Morningstar
. The 2013 flows were the best numbers Putnam had seen since 2000.
A major driver of these flows was Putnam's investing performance. For example, Bob Reynolds'
firm ranked second out of 64 in the Barron’s
/Lipper Fund Family Ranking based on total return across asset classes in 2013. The firm also ranked second out of 55 fund families for five-year performance as of December 31, 2013.
Putnam has a distinctive approach to filling its wholesaling ranks. Roughly 75 percent of Putnam's external wholesalers come from its internal ranks. Meanwhile, candidates for internal slots have to undergo a rigorous training and development program. Some of these candidates come from elsewhere within Putnam, while others are recruited out of undergraduate and graduate programs.
The growth of Putnam's sales team is expected to take place over a 12 to 18 month period.
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