Putnam Investments had $189 billion in assets under management as of March 31, unchanged from Dec. 31 but down 5% from the first quarter last year, according to a news release from parent Marsh & McLennan. In a conference call, Marsh President and CEO Michael G. Cherkasky predicted Putnam's outflows would reverse "by the end of the year."
Putnam had $126 million in mutual fund assets as of March 31, unchanged from Dec. 31 and down 6.7% from the year before, while the firm's institutional assets came to $63 billion, unchanged from Dec. 31 but down 1.6% from the year before. Market appreciation of $7 billion in the first quarter narrowly offset net redemptions of $6.6 billion.
Putnam should continue to see net outflows of about $5 billion during the second quarter, mainly because of the end of the firm's distribution alliance in Australia, Mr. Cherkasky said. But with RFP activity picking up, the firm's institutional flows should turn positive in the third quarter, he said. And with the firm's mutual fund sales showing an upturn as well, Putnam should be enjoying net inflows by the end of the year, he said.
Putnam contributed revenue of $345 million, down 4.3% from the previous quarter and down 13% from the first quarter 2005.