How do you make a splash in the mutual fund industry right now? Well, incredibly strong performance is one sure way. But beyond that, it will be interesting to watch Putnam's experimentation with fees. The company just might be onto something. Then again, the customers it's targeting could just as easily yawn.

Bloomberg notes that Putnam plans to introduce performance-based fees on its growth-stock and international funds as part of an overall price-cutting program. This is a break from the industry, which usually compensates managers based on assets under management, not performance. The old system has been consistently criticized. So the question now is whether this shift will really make a difference? Will it return Putnam to its old glory? Or do mutual fund consumers really care?  

For more:
- here's the Bloomberg article

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