GLOBAL - Boston-based fund manager Putnam Investments wants to fix its weak spot of continued outflows with a broad fund shake-up under new chief executive Robert Reynolds.

The fund manager has announced a "broad restructuring of its equity investment unit", and is merging six of its stock mutual funds into larger, lower-priced funds and reorganises bonuses for managers to reward ‘top-flight' results.

Putnam also said it will cut 47 jobs - 12 of those are portfolio manager in addition to 35 other staff positions including reductions in quantitative research.

Reynolds, appointed in July, said the company would "reorganise the way it manages money" to place its prime focus on improving equity performances.

He told reporters yesterday equities have been Putnam's weak spot, noting "this is the leaky bucket".

The company was earlier forced to close its prime money market institutional fund and return the assets to investors. (See earlier IPE story: Putnam's money market fund falls victim)

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