*WRITING SAMPLE* Putnam Memorandum


Published on

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

*WRITING SAMPLE* Putnam Memorandum

  1. 1. PUTNAM MEMORANDUM TO: CHARLES HALDEMAN FROM: JUSTIN FENWICK SUBJECT: PUTNAM RECOVERY: MARKET TIMING ALLEGATIONS DATE: 12/18/2013 CC: ECON490 F I R S T F E W DAY S -Criticize company culture and the movement to recognizing its historic brand of dependability and value. -Refrain from interrupting regular business; show confidence in current investing practices. -Vow to improve fund oversight. -Admit to wrongdoings to clean the slate and set the foundation for recovery. -Protect future plans: don’t release details too far in advance. S T E P S TO R E C OV E RY Putnam Investments is seriously crippled. There is a guaranteed level of outflow that will occur. We should (1) minimize outflow and (2) recapture a level of sustained growth. Restructure through means of one-on-one client/staff interaction, clear appearance of disclosure, and some definable changes that drive demand and control. Redefine Putnam culture. M I N I M I Z E O U T F L OW Increase communication transparency to diminish fear of current and future clients. Implement blogs to share in the ups and downs of the company. Give room to share information on a ‘Putnam defined stage’, not one of the media. Also include consistent reports of employee performance, emphasizing proactive control. Personalize client service to emphasize that Putnam is in the business of customer service. Add more direct lines of communication and evaluate managers on this caveat of controlling outflow. Strongly consider hiring staff dedicated to engaging the decision to stay with or fire Putnam services. Help in the transition in or out, retention as the formal goal. Lower prices and rates to match integrity and image losses suffered by Putnam and the investment division. A strong message to the commitment and confidence in investment packages that more importantly helps the ‘money grabbing’ image of Putnam. Keep commission the same to maintain advisor incentive.
  2. 2. Clear structural control to prevent market timing and possibly other uncovered industry issues. The problem shouldn’t only be fixed but Putnam should emerge as a clear leader in cleaning up its market share. Early redemption penalties offset market timing and still maintain client/manager elasticity. Fresh advertising campaigns to continue as currently implemented. They show the old has already transformed into new. Further advertisements should stress the innovation in restructuring investing on top of the current focus on combining investment styles. R E C A P T U R E S U S TA I N E D G ROW T H Retain and attract talent in and outside of the company respectively. Top down communication should increase to encourage confidence, to be implemented along side strong bonus incentives. Remember correct ethical encouragement and the goal of preventing self-serving dealings by managers. Use media attention as an opportunity to focus inward. Focus image promotion inward to staff and clients. Small changes in structure can give an exaggerated feeling of transformation. Consider readjusting a few roles of analysts, managers, advisors, and other investment staff. Release key elements that differentiate Putnam from other companies. The media will bite. CONCLUTION There is a guaranteed outflow. Keeping a tight grip on the situation can be accomplished through (1) improving performance, (2) assurance of protection from further wrongdoing, and (3) clear change in company culture. Stronger communication and clearer in-company definitions of market timing could have prevented this disaster. A proactive response was needed. Sincerely, Justin Fenwick 2