Putnam Investments is to buy London-based high-yield asset management firm New Flag Asset Management...
Putnam Investments is to buy London-based high-yield asset management firm New Flag Asset Management after failing to establish itself in European high yield.
The acquisition will enable Putnam to enhance its European and global fixed income investment capability, especially in high yield for institutional and retail clients, according to Tom Reilly, managing director of Putnam Investments and head of European Business.
The 11-strong New Flag team will remain in London and be integrated into Putnam's 27-strong global bonds team.
New Flag, which has £60m of assets under management, will continue to concentrate on existing small institutional and high net worth clients through its New Flag First Euro High Yield fund.
Putnam, which markets offshore funds through intermediaries in the UK, believes European investors will focus increasingly on credit markets as a source of potential return.
Both Putnam and New Flag take a bottom-up credit intensive analysis approach to investment.
Reilly said: 'This gives us instant access to a team of people who have an excellent track record in high yield.'
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November