BT to stick with Putnam
BT Financial Grouphas signalled it will maintain its relationship with funds management partner, Putnam Investments, despite daily monitoring of the US-based manager in light of the controversy that has engulfed it over the past few weeks.
BT chief executive David Clarke says that while the situation regarding Putnam was disappointing, BT has worked through the issues.
Clarke’s comments came as part of his response to questions relating to BT’s ongoing relationship with Putnam in circumstances where the US firm has been investigated over allegations of “market timing”, or moving clients’ funds frequently in and out of markets to take advantage of short-term price changes.
He says that in addition to working through the Putnam issue, BT has formed a small team of senior executives who monitor the situation on a daily basis.
Clarke says that given the level of scrutiny now being directed at Putnam, there is unlikely to be a repeat of the event.
“We are comfortable with Putnam but we are keeping them under close review,” he says.
Clarke’s reference to the ongoing relationship with Putnam came at the same time as he and his senior executive team outlined the achievements of the BT Financial Group over the past 12 months in what represented a virtual first anniversary review of Westpac’s acquisition of BT and the integration of Sagitta, Rothschild and Westpac Financial Services.
Clarke says it was a remarkable year which had finished with BT emerging with its house in order.
He says that while there were doubters, “we took a clean sheet of paper and built a new business”.
“The new BT is diverse and sustainable,” Clarke says.
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