As of press time, analysts say Marsh & McLennan is expected to sell its Putnam fund family and investment unit to the Canadian investment firm Power Corporation. The sale price commonly being referred to is $3.9 billion, or 2 percent of assets. “It looks like a fair price,” says Bill Bergman, an equity analyst with Morningstar. “And this is a healthy move for Marsh.”
According to Financial Research Corporation, Putnam Investments experienced about $13 billion in net outflows through October 2006 after outflows of roughly $17.5 billion in 2006. Assets under management stood at $94 billion in October 2006 vs. $99 billion in October 2005; these figures exclude proprietary fund of funds.
Morningstar has picked the top three fund managers by asset class for 2006:
o O. Mason Hawkins and Staley Cates of Longleaf Partners Fund (LLPFX), and Longleaf Partners Small Cap (LLSCX) in the domestic category;
o David Herro of Oakmark International (OAKIX) and Oakmark International Small Cap (OAKEX) in the international category; and