Putnam Investments Introduces Range of Model Portfolios to Address Market Demand

BOSTON, November 18, 2019 – In keeping with its commitment to provide financial advisors with a broad range of investment solutions to meet the changing needs of their clients, Putnam Investments today announced that it has begun offering seven equity model-based separately managed accounts (SMAs) and is expected to have six multi-asset model portfolios available to the marketplace by year-end.

“The demand for strategies in the model delivery structure is rapidly increasing as advisors seek products that are fee-efficient and tailored to meet their clients’ individual preferences,” said Robert L. Reynolds, President and CEO, Putnam Investments. “We think it is important to offer our investment strategies through a host of different investment vehicles to allow maximum flexibility for advisors as they develop individualized portfolio solutions that help generate their clients’ desired investment results.”

Putnam’s decision to offer SMAs reflects emerging preferences among investors for strategies in the equity space that are generally cost-effective and tax efficient and provide opportunities for customization, enabling investors to work with their advisors to screen for certain investments that they deem in conflict with their personal values.

“Most importantly, investors are looking for solid, long-term, risk-adjusted performance that can produce positive returns net of fees,” explained Reynolds. “We are pleased to make a number of our competitively performing active equity strategies available to address a growing marketplace desire for key characteristics offered in an SMA format.”

The recently launched model SMAs developed by Putnam include:

  • U.S. Large Cap Value Equity
  • U.S. Large Cap Growth Equity
  • U.S. Multi-Cap Core Equity
  • Sustainable Leaders
  • Sustainable Future
  • U.S. Small Cap Growth Equity
  • International Durable Equity (ADR only)

Putnam to Offer Multi-Asset Model Portfolios

In addition to offering SMAs, Putnam will also enter the multi-asset model portfolio space later this year with six offerings. The model portfolios will use a systematic investing approach and be composed of Putnam’s active mutual funds and third-party exchange-traded funds (ETFs). The portfolios largely will be benchmarked to custom multi-asset portfolio benchmarks.

Each model portfolio will have a different risk profile as a result of the split between equities and fixed income, with increasing levels of equities in increments of 20%. Active investments will represent approximately half of each portfolio.

Putnam’s Multi-Asset Model Portfolio lineup will include:

  • Income (targeted 0% equity)
  • Balanced Income: (targeted 20% equity)
  • Conservative Growth: (targeted 40% equity)
  • Balanced Growth: (targeted 60% equity)
  • Growth (targeted 80% equity)
  • Aggressive Growth (targeted 100% equity)

The portfolios will be managed by Putnam’s long-tenured Global Asset Allocation team, which currently manages approximately $15 billion in assets, as of October 31, 2019.

“Model-delivered solutions represent an exciting convergence of customer preferences, modern distribution, and technological advancement. We will continue to be active in innovating around the delivery of our active management insights,” added Reynolds.

About Putnam Investments

Founded in 1937, Putnam Investments is a leading global money management firm with over 80 years of investment experience. At the end of October 2019, Putnam had $177 billion in assets under management. For more information, visit www.putnam.com.