utnam Investments and the Ohio Tuition Trust Authority
are now offering a stable-value fund for the Putnam CollegeAdvantage
program, Ohio's 529-college savings plan. The move was made to meet the needs of investors across the country seeking "safe" investments that offer relatively high returns.
"Investors can combine the Stable Value Option with 14 other investment choices currently available through Putnam CollegeAdvantage as part of a diversified 529 portfolio," says Elaine Sullivan
, director of education savings at Putnam.
CollegeAdvantage's Stable Value Option invests in fixed-income securities through Putnam Income Fund
and Putnam Money Market Fund
, and has also entered into an insurance contract issued by Transamerica Life
that protects the principal against a loss.
Putnam Investments and the state authority launched the savings plan in October 2000. The other 14 options include 10 individual portfolios, each of which invests in a single underlying Putnam mutual fund; and four asset allocation portfolios, which invest in several underlying funds.
The Stable Value Option is being sold at regular mutual fund prices and is available in Class A (initial sales charge), B (deferred sales charge), C (level load) shares and the O shares available in Ohio.
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