Putnam stakes claim in 401(k) market

Mar 25, 2009 @ 12:04 pm

By Sue Asci

Putnam Investments of Boston today launched a new defined contribution platform for advisers and clients, signaling its expansion into the 401(k) market.

The platform will provide plan sponsors with a range of investment choices, plan designs and record-keeping.

The record-keeping services will be provided through FASCore LLC, a subsidiary of Great-West Lifeco Inc. in Greenwood Village, Colo., which is part of the Power Financial Corp. of Montreal, the parent company of Putnam.

The 401(k) program will offer not only Putnam's proprietary mutual fund offerings, including its recently launched Absolute Return Fund series, but will also include investment options from other fund groups through open architecture. The program will have a range of default investment alternatives options.

Prior to today’s move, Putnam offered defined contribution services on another platform which served predominantly small and mid-sized companies. The firm has $13 billion in defined contribution assets under management.

The new program will allow the firm to serve plans of all sizes.

“The technology allows us to be more efficient and flexible in bringing more products and features to the marketplace,” said Jeffrey Carney, head of global marketing and products at Putnam.

Still, the defined contribution market is a competitive one.

“The legacy of the defined contribution market is that it constantly improves,” Mr. Carney said. “This market has tested the retirement system. We believe we can add value and do it fairly quickly.”

The move to expand its defined contribution offerings follows the firm's recent hiring of Mr. Carney and Edmund Murphy as co-heads of Putnam's defined contribution business, part of Putnam's overall turnaround strategy.

“We have a vision and strategy that we are executing and the market is not going to stop us from doing that,” he said.

Mr. Carney, hired in October, formerly served as president of Charlotte, N.C.-based Bank of America's retirement and global wealth and investment client solutions group and, before that, as the head of Fidelity Investments Retirement Services of Boston.

Mr. Murphy, hired in February, previously served at Fidelity in several senior positions including executive vice president of distribution for personal and workplace investing and as executive vice president of Fidelity Institutional Retirement Services Co.

Putnam managed $96 billion in assets as of Feb. 28.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Why advisers are pessimistic about the economy

Deputy editor Bob Hordt and senior research analyst Matt Sirinides discuss a recent InvestmentNews survey of advisers, most of whom see a recession ahead before the next presidential election.

Recommended Video

Keys to a successful deal

Latest news & opinion

Blackrock exposed data on 12,000 financial advisers

The data appeared in three spreadsheets, linked on one of the New York-based company's web pages dedicated to its iShares exchange-traded funds

Advisers throw cold water on FIRE movement

Millennials love it, advisers don't: Turns out, extreme early retirement is a suitable goal for almost nobody.

10 universities with the most billionaire alumni

These 10 American schools have the greatest number of alumni who are billionaires.

Top-performing ETFs of 2018

The markets took a beating last year, but these exchange-traded funds bucked the trend

Morningstar says investors rushed the exits in 2018

Net flows into mutual funds and ETFs were the lowest since the 2008 financial crisis, while money-market funds captured inflows.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print