Putnam Investments Launches Putnam 529 for AmericaSM, New Advisor-Sold National College Savings Plan with Innovative, Diversi...
01 Octubre 2010 - 7:00AM
Business Wire
Putnam Investments today announced the immediate nationwide
availability of Putnam 529 for AmericaSM, its new advisor-sold 529
college savings plan. Putnam 529 for AmericaSM provides
tax-advantaged, innovative strategies, including the only absolute
return funds available in a 529 college savings plan, to help
families pursue their college savings goals in a period of
skyrocketing college costs, competing personal financial needs and
volatile markets.
As program manager for one of the state of Nevada’s advisor-sold
529 college savings plans, Putnam will seek to bring a new level of
solutions-based innovation to families across the nation who are
saving for higher education goals. Effective today, the Putnam plan
will include the first use of absolute return investment strategies
– designed to target positive 3-year returns above inflation, as
measured by T-bills and with lower relative volatility – by the
industry.
“Putnam 529 for AmericaSM offers a whole new generation of
college savings strategies that every family with college-bound
children should consider,” said Putnam’s Chief Executive Officer,
Robert L. Reynolds. “With the cost of a college education having
risen several times faster than the rate of inflation in recent
decades, saving for college is already one of the biggest financial
challenges families face. We are pleased to be able to offer
families and their financial advisors, in Nevada and across
America, what we believe is an enhanced, investor-friendly way to
address the demands of paying for college.”
"We are very excited about the opportunities our partnership
with such a long-standing and accomplished company such as Putnam
provides for families looking to secure a better future for their
children by saving for college," said Kate Marshall, Treasurer,
State of Nevada. "Putnam's proven track record of success and the
company's commitment to assisting families across America meet the
financial challenges of a college education make Putnam a perfect
partner for Nevada."
Putnam has been helping families throughout the nation invest
for their children’s future since offering among the first
advisor-sold 529 college savings plans a decade ago. Reynolds
indicated that Putnam has a strong legacy in the college savings
market through its varied investment offering, accomplished service
record, and unyielding commitment to education of advisors and
investors, at a reasonable cost.
To encourage participation in the new plan, Putnam will waive
sales charges for participants who transfer funds over from
existing 529 plans, as well as waive the annual maintenance fees
until 2012.
The Putnam 529 for America plan includes a mix of diversified
and competitively priced investment choices from Putnam and other
leading firms. The plan offers several different portfolio options,
each geared to the goals and risk tolerance of individual
families:
- Age-based, asset allocation portfolios:
Actively-managed portfolios that automatically adjust annually over
time, becoming more conservative as a child approaches college age,
shifting from a mix of investments composed primarily of stock
funds to one with more fixed-income funds and money-market funds.
Within this, Conservative, Moderate or Aggressive investment
options are available.
- Goal-based, asset allocation
portfolios: Actively-managed portfolios that keep the same
allocation mix, regardless of a child’s age. Balanced, Growth and
Aggressive Growth investment options are available.
- Individual fund investment options:
Investors may build their own portfolios from a selection of 11
stock, bond and cash funds overall from Putnam and other leading
fund companies. Among the Putnam selections available to investors
is the well-recognized flagship Putnam Voyager Fund.
- Putnam Absolute Return Funds: The
investment choices include Putnam’s four target Absolute Return
Funds,* which comprise the industry’s only comprehensive suite of
absolute return strategies. The funds are designed to help pursue
college savings goals with potentially lower volatility than more
traditional mutual fund investments.
The Putnam 529 for AmericaSM plan is also the only 529 college
savings program to offer absolute return strategies as an
investment option. These strategies, which seek a positive return
that exceeds the rate of inflation over a period of three years,
regardless of market conditions, are designed to help investors
pursue their college savings goals with potentially lower
volatility than more traditional mutual funds.
A number of innovative features will be offered in the Putnam
529 for AmericaSM plan, including a comprehensive tuition payment
analysis tool to more accurately estimate how much in tuition
payments plan participants’ current savings may generate based on
historical analyses. The Putnam plan also will provide advisors
with a dedicated portal to manage all of their clients’ Putnam 529
plans with a single login as well as other data, analytical and
educational tools to help them better serve their clients.
“America has a savings gap: We’re saving far too little for
everything from college to retirement,” said Reynolds. “As a firm,
we are seeking to help Americans meet this challenge. We are
focused on providing the marketplace with superior investment
products, world-class service, innovative tools and leading-edge
technologies to raise the bar for college savings plans. We expect
the Putnam 529 for AmericaSM plan to become a role model for other
college savings plans around the country adopting many of its
innovative features.”
Contributions to a Putnam 529 account may be made not only by
parents but also by other family members and friends, up to a total
of $370,000 for a particular beneficiary. The proceeds from a
Putnam 529 account may be used to pay for tuition, fees, room and
board, books and other qualified expenses at any accredited college
or other institution of higher learning. Investment earnings are
not subject to federal income tax while the account is invested,
enabling faster growth, and are also exempt from federal income tax
upon withdrawal if used for qualified expenses.
If the child decides not to attend college, the assets may be
left invested in the plan for later use; used for another family
member’s college expenses; or withdrawn for non-college use,
subject to additional federal tax. Unlike other college savings
vehicles, assets in a 529 plan remain under the parent’s or other
account owners control even after a child reaches legal age.
About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money
management firm with over 70 years of investment experience. The
firm was recently named “Mutual Fund Manager of the Year” by
Institutional Investor. At the end of August 2010, Putnam had $113
billion in assets under management. Putnam has offices in Boston,
London, Frankfurt, Amsterdam, Tokyo, Singapore, and Sydney. For
more information, visit putnam.com.
Putnam mutual funds are distributed by Putnam Retail
Management.
*Putnam’s target Absolute Return Funds are not intended to
outperform stocks and bonds during strong market rallies.
The State of Nevada
The State of Nevada, through the Treasurer’s Office, currently
offers several direct-sold 529 college savings plans, including the
Upromise College Fund 529 Plan, Vanguard 529 College Savings Plan
and the USAA College Savings Plan. Putnam previously spent more
than a decade serving the 529 college savings market through
advisors in a partnership with the State of Ohio. For more
information about how you can begin to “Save for College, One
Step at a Time,” go to nevadatreasurer.gov or call (702)
486-2025 or 1-888-477-2667 (toll free).
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