Putnam To Cut Costs, Trying To Win Back Investors

Boston, Jan 28: | Updated: Jan 29 2004, 05:30am hrs
Putnam Investments said it will cut investor fees and offer better fund data to win back clients who pulled billions of dollars as the No 6 US mutual fund firm faces charges over improper trading.

Boston-based Putnam, the highest profile company to date to be caught in a scandal that has tarnished the $7 trillion mutual fund industry, said it will cut expense ratios on all of its funds, reduce up-front sales charges and provide more detailed information about how its fund managers are paid.

Investors who make Class A share purchases of less than $500,000 in equity funds, or less than $250,000 in fixed-income funds will save money.

Clients will now pay $50, or 9 per cent, less for $10,000 invested in Putnam stock funds.

Reuters