Putnam may shut funds because its sales are declining

"It would seem to be in their best interest, and possibly in shareholders' best interest, to collapse those funds into larger funds."

At the end of 2001, nine of Putnam's 28 stock funds rated by Morningstar were rated four or five, the two highest ratings, down from 14 at the end of 1999. Funds rated four or five by Morningstar capture a disproportionate share of the new money invested in funds, according to analysts.