Putnam Investments has raised its stake in PanAgora Asset Management to 80 per cent, in a move aimed at increasing the firm’s access to mathematically driven products. Putnam has acquired a further 30 per cent stake in PanAgora from Nippon Life Insurance Co., Japan’s largest insurer, in a deal that is expected to be completed by mid-May. Transaction terms were not disclosed.
Nippon Life will retain a 20 percent stake in PanAgora, which has more than $13 billion in assets under management. Putnam first invested in Boston-based PanAgora in 1997. In the new structure, William Poutsiaka, PanAgora’s president and chief executive, will become chairman of PanAgora and Eric Sorensen, chief investment officer of Putnam’s structured equity products, will become CEO. Edgar Peters will remain PanAgora’s CIO and chief global strategist.
In a statement, Poutsiaka said PanAgora hopes to turn rising demand from institutional investors for quantitative products, which use mathematical formulas to identify the best stocks, into an opportunity to grow. He said the company has been limited by distribution and operational infrastructure. Kiyoshi Ujihara, a director, CIO and senior general manager of international operations of Nippon Life, said the company expects PanAgora to dramatically expand its sales performance in the United States, which will increase interest in Japan.