Putnam to Merge Six Equity Funds and Lay Off 47

Bob Reynolds, the former Fidelity executive, has taken additional steps to make his mark upon Putnam Investments, announcing November 17 that the firm will lay off a total of 47 people, including 12 portfolio managers, from its 2,500-person workforce and will eschew Putnam’s traditional team-based approach of managing money in its equity mutual funds in favor of a “decision-making process that vests full authority and responsibility with individual fund managers.” The steps announced by Reynolds, who became CEO of Putnam in July 2008, include merging six equity funds into larger “lower-priced” funds, according to the company.

The merged funds are Putnam’s Capital Appreciation Fund, Classic Equity Fund, Discovery Growth Fund, New Value Fund, OTC & Emerging Growth Fund, and Tax Smart Equity Fund (see list at bottom of article for more information).