Putnam Investments is expanding its reach into the 529 college savings plan arena, after its 10-year partnership with Ohio Tuition Trust Authority comes to an end in October. Putnam is seeking new opportunities in the nationwide college savings marketplace, including new state partnerships and investment-only mandates, a spokesman from the firm said.
When the Ohio Tuition Trust Authority recently decided to scale back the Putnam College Advantage Plan, Putnam decided to extend its adviser-sold investment product lineup, sales infrastructure and program administration to the 529 space. The transition to the new program should be complete in October, the firm said.
“We appreciate the experience of working in partnership with the Ohio Tuition Trust Authority and financial advisers to help families save for higher education over the last decade, but we see enormous opportunity to bring the full weight and breadth of Putnam’s strengthened investment capabilities, innovative product solutions, and heralded service and distribution teams to bear for the broader college savings marketplace,” said Putnam President and CEO Robert L. Reynolds.
Putnam has been the program manager for the Ohio advisor plan since October 2000. The existing assets currently in the Putnam CollegeAdvantage advisor plan will transition to management by BlackRock on or about October 1.
“Putnam has been an important partner to Ohio for nearly 10 years and they have contributed significantly to the success of Ohio’s plan," said Mike Prescott, executive director of the Tuition Trust. "We wish Putnam continued success as they move forward with new directions and initiatives.”