The Desmarais family’s failed effort to turn around the fund manager cost its Canadian owners well over $1 billion. Read more here.
Putnam, which had been losing clients after a mutual fund-market timing scandal, appeared to be an inexpensive play for growth in the United States. It had nearly US$200 billion in assets under management when Great-West and its parent, Power Corp. of Canada, unveiled the takeover.
“We struggled financially and economically to make a profit at it,” Power chief executive Jeffrey Orr said. “Putnam had a great performance, but when the market is not purchasing active funds, it did not translate into positive flows. So we never got the revenues to go with all the investments we made.”Article content
Great-West took a US$1.3-billion after-tax charge in 2008, said its chief financial officer Garry MacNicholas.
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Franklin Templeton to buy Putnam from Great-West as Desmarais family exitsFranklin will pay US$925 million in cash and stock for Putnam from Great\u002DWest Lifeco, part of the Desmarais family’s Power Corp. Read on.
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