Great-West Lifeco Inc. today reported 5% drop in third quarter profit as financial services company took charges for impaired assets and the liquidation of the a Putnam money market fund.

The Winnipeg-based life insurance and wealth management company said profit slipped to $436 million, or 48.5¢ a diluted share, in the three months ended Sept. 30. That was down from $461 million, or 51.3¢, in the year-earlier period.

Adjusted return on common shareholders’ equity, a measure of profitability, was 21.4% for the 12 months ended Sept. 30, compared with 22.1% for year earlier period.

Net income at Great-West’s Canadian business rose 2% to $251 million. The Canadian results include an after-tax charge for asset impairment of $12 million.

Total assets under administration at Sept. 30, 2008 were $96.5 billion in Canada, compared to $100.8 billion at Dec. 31, 2007.

Great-West, which acquired Boston-based money manager Putnam Investments Trust last year, said net income at its business in United States fell 71% to $43 million.

The company took charges of $30 million for asset impairment, and $19 million tied to the liquidation of Putnam’s Prime Money Market fund.

Putnam said in September it would close and liquidate the fund, after institutional clients suddenly demanded their money back.

Net income at Great-West’s European operations dropped 13% to $140 million.

IE