Hit last October with charges of fraud in the mutual fund investigations, Putnam Investments has been losing close to $3 billion in assets a month as investors cut and run. In an effort to shore up its reputation, the Boston mutual-fund giant has already cut fees on many of its mutual funds. But with regulators taking a closer look at 529 plans, Putnam Investments has now decided to voluntarily cut fees and broaden disclosure on its 529 plan.
Putnam's 529 plan has been less pinched by asset outflows than some of Putnam's mutual funds, said Elaine Sullivan, director of educational savings at Putnam Investments. Today there is $3 billion under management in CollegeAdvantage, a figure that has grown over the past six months, she said. While this is primarily because of a strong stock market, it was also boosted by some asset inflows, Sullivan said, though she declined to provide details on inflows.