MutualFundWire.com: Reynolds Boosts Putnam's Margin ... to Zero

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Wednesday, May 12, 2010

Reynolds Boosts Putnam's Margin ... to Zero

As the markets have recovered over the past year from the turmoil of 2008, Bob Reynolds has eliminated Putnam's operating loss. On Thursday Putnam's Canadian parent, Great-West Lifeco (itself a subsidiary of Power Financial) reported that the mutual fund firm's pre-tax operating margin climbed a 31.4 percent loss in the first quarter of 2009 to a zero percent operating margin in Q1 2010.

Bob Reynolds
Putnam Investments
CEO

Over the same period, Putnam's expenses climbed to $204 million in Q1 2010 from $188 million in Q1 2009. And its fee income rose by 36 percent, thanks to a 41 percent rise in investment management fees, from $97 million in Q1 2009 to $137 million in Q1 2010.

Putnam's mutual fund assets under management climbed 33.8 percent from $48.5 billion in Q1 2009 to $64.9 million in Q1 2010. Overall AUM rose from $98.6 billion to $118.4 billion.

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