US fund manager Putnam Investments has recruited Walter Donovan from Fidelity Investments to take up the role of chief investment officer.

At Fidelity, Mr Donovan had served as president of the equity division since 2007, holding responsibility for portfolio management, investment research and trading. He was also responsible for the firm’s high yield group, in addition to having previously held leadership roles in equity trading, structured credit and counterparty risk management.

In his new role Mr Donovan will oversee the management of the entire investment group and reports to Robert Reynolds, Putnam Investments’ president and chief executive officer.

"Given the challenges and opportunities provided by today's market environment, we sought – and now have – a distinguished industry veteran to lead our investment team, as we create a performance-driven culture for a new era at Putnam," said Mr Reynolds.

Mr Reynolds joined Putnam in July 2008 and the hire of Mr Donovan is his latest move to revitalise the performance of the firm, Putnam said in a statement.

Putnam has made a number of senior hires in recent months, including February’s appointment of David Glancy, formerly of Andover Capital, as managing director and portfolio manager.

Last November Putnam announced a restructure of its equity investment division, with a focus on individual fund manager responsibility and a realignment of manager and analyst incentives.

Putnam Investments has $98.6 billion in assets under management, as at 31 March 2009. The firm, which employs 153 investment professionals, is headquartered in Boston, with offices in London, Frankfurt, Copenhagen, Amsterdam, Tokyo, Sydney, and Singapore.