Putnam Investments has bolstered its ranks of retail mutual fund wholesalers, but it will take more than that to snag additional face time with financial advisers.
The asset manager this year has hired six new external wholesalers, bringing its roster to 54, and it expects to have 60 by the end of the year.
Notable additions include
AllianceBernstein LP veterans Bud Angelus and Dan Hemberger, who will cover Chicago and Southern California, respectively.
The goal isn't so much to enter new channels, but rather to deepen existing relationships with banks, registered investment advisers and broker-dealers through internal and external wholesaling. One strategy will be to use wholesalers who operate in both, according to Bill Connolly, global head of distribution for retail and institutional sales at Putnam. The fund company also has stepped up its webinars to attract advisers to its online content.
“We've been fortunate, through up and down times, to have maintained strong relationships with the home offices of the adviser firms,” he said.
Stepping up the wholesaling presence also gives Putnam more face time with larger advisers.
“This allows us to segment the market from a campaign and firm standpoint, so that the top advisers can be touched by Putnam in a way that suits them,” Mr. Connolly added.
The move is a way for Putnam to position itself in the event of a market recovery. Analyst Rob Wherry of Morningstar Inc. estimates that each wholesaler can target 100 to 200 advisers, so the addition of six new wholesalers suggests the firm would like to tap upward of 600-1,200 new advisers.
“There's a lot of anticipation that if the market recovers, a lot of cash on the sidelines will be put back to use, and the fund companies want to be on the receiving end,” he said.
Putnam isn't the only one that's been stocking up on wholesalers, and that could make it more difficult for the fund company to stand out — especially as it continues to overcome past challenges.
“Putnam is trying to reinvigorate its brand,” Mr. Wherry said. “Its wholesalers aren't the only ones knocking at the doors: Other companies have better performance and lower fees.”
