Putnam Announces Sweeping Changes to Fees on Retail Funds

July 28, 2009 (PLANSPONSOR.com) - Putnam Investments and the Board of Trustees of the Putnam Funds announced that the firm and the Funds will make sweeping changes to the management fees on Putnam's retail mutual funds.

A Putnam news release said the changes are designed to provide investors with a host of immediate and long-term pricing benef its and to make Putnam’s product line-up more competitive in the marketplace. Certain changes will require the approval of shareholders at shareholder meetings to be held later this year.

As of August 1, 2009, m anagement fees will be reduced from current contractual levels for mutual funds in the following product categories (on average, as of June 30, 2009):

  • Putnam Fixed Income Funds — a 13% reduction; ranging as high as a 34% reduction ;
  • Putnam Asset Allocation Funds — a 10% reduction ; and
  • Putnam RetirementReady Funds — elimination of “wrap” management fees .

In addition, according to the news release, U.S. growth funds, international funds, and the Putnam Global Equity Fund will have performance fees reflecting the strength or weakness of the investment performance of the given fund. Management fees for these equity funds will decline from their standard fee if the funds underperform their benchmarks and will rise if the funds outperform.

The asset-level discounts for investors will be based more broadly on the growth of all Putnam mutual fund assets, rather than the growth of an individual Putnam mutual fund’s assets. The company says e very dollar invested in a Putnam mutual fund essentially benefits all Putnam mutual fund shareholders under this model.  

More information is at www.putnam.com .