Putnam’s new CIO is a ‘critical hire,’ CEO says

Robert Reynolds, Putnam Investment's president and chief executive, is counting on new chief investment officer Walter C. Donovan to help the firm make deeper incursions into the 401(k) sector and to generate consistent returns for shareholders.

Robert Reynolds, Putnam Investment’s president and chief executive, is counting on new chief investment officer Walter C. Donovan to help the firm make deeper incursions into the 401(k) sector and to generate consistent returns for shareholders.
Mr. Donovan’s hiring was officially announced today.
He most recently served as the president of the equity division at Fidelity Investments of Boston, and replaces Kevin Cronin, who left Putnam in September.
“Even when Kevin Cronin was chief investment officer, early on we made the decision that we needed to find a head of equities,” Mr. Reynolds said in an interview. “Kevin’s background was in fixed income.”
When Mr. Cronin left, the search began for a chief investment officer who had expertise in all areas of investment to oversee both fixed income and equities, Mr. Reynolds said.
Since September, Mr. Reynolds has been acting in that role and has focused on turning the company around.
Putnam has struggled with persistent outflows, largely from its equity mutual funds.
Mr. Donovan will oversee the management of the entire investment group and will report directly to Mr. Reynolds.
“This becomes a critical hire going forward,” Mr. Reynolds said. “We are not only going to get more involved in the 401(k) business, but we are also focused on being able to deliver, on a consistent basis, returns for our shareholders.”
Next month, Putnam will launch two new funds to be managed by David Glancy, who joined the firm in February and had previously served at Fidelity as a portfolio manager, Mr. Reynolds said.
They will be an equity fund and an opportunistic fund that will invest in capital structure, Mr. Reynolds said.
Putnam has $100 billion in assets under management.