For all his work in trying to resuscitate a flatlining mutual fund and retirement business, there's still more work to be done for Putnam's [see profile] chief Bob Reynolds, according to Morningstar's Fund Spy column.

According to the column, Reynolds' turnaround isn't complete. The international funds, which in general have been weaker than the fixed-income and domestic-equity offerings, are due to get new leadership this summer. And the firm's Absolute Return funds, which were launched in late 2008 and have been a big seller for Putnam, "continue to be a controversial touchstone". In addition, Rob Bloemker, the head of fixed income, resigned in February 2011, necessitating new leadership for that group.

However, the column did give props to Reynolds' initiatives, which it said are "shareholder-friendly and indicate that Putnam is more fundholder-focused under its current leader".

"Taken together, the Reynolds Era has made tangible improvements that should benefit fundholders, but key concerns remain, particularly with the international funds," Morningstar writes. 

Edited by: Hung Tran


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