Ohio to Join Putnam Suit for 529 Plan

December 19, 2003 (PLANSPONSOR.com) - The Ohio Tuition Trust Authority, which uses Putnam Investments as manager for the state's CollegeAdvantage 529 plan, will join an existing class action lawsuit against the beleaguered fund company.

According to a Trust Authority news release, it would ask to be named lead plaintiff in one of the lawsuits against the Boston-based Putnam, which accuses Putnam of market-timing abuses.

Putnam currently manages 17 CollegeAdvantage investment options and provides recordkeeping and marketing services in conjunction with the Tuition Trust. CollegeAdvantage assets managed by Putnam were more than $2.8 billion as of October 31, 2003.

The Putnam International Equity Fund and Putnam International Capital Opportunities Fund – two offerings affected by the market timing activities – are options in CollegeAdvantage, officials said.

The Tuition Trust also announced this week that it has started the process to hire additional investment managers for CollegeAdvantage. The Tuition Trust issued a Request for Proposal (RFP) on December 12, 2003 for the provider of low-cost index investment options for CollegeAdvantage.