BOSTON–(BUSINESS WIRE)–Putnam Investments today announced that the firm will bring four of its key U.S. equity strategies to market this year in the form of semi-transparent active exchange-traded funds (ETFs), with the first of the products expected to be available in the spring, upon completion of the registration process. These offerings will represent the first ETF products provided by the company, which currently makes available an array of retail mutual funds, separately managed accounts, collective investment trusts, private funds and non-U.S. funds.
The investment strategies for the four initial ETF products will be similar to existing mutual funds with well-established track records, both in the ESG and large-cap equity areas, and will include: Putnam Sustainable Leaders ETF, Putnam Sustainable Future ETF, Putnam Focused Large Cap Growth ETF and Putnam Focused Large Cap Value ETF.
“Putnam Investments is excited to launch its first suite of actively managed ETFs, providing financial advisors and investors with another vehicle to access our firm’s key investment strategies,” said Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments. “As a long-time active manager, Putnam is enthused to enter the active ETF marketplace, which we expect will gain meaningful traction in the years ahead.”
Commenting further, Putnam Chief Operating Officer Aaron Cooper explained, “In an effort to provide our clients with greater optionality in accessing the firm’s deep, expansive capabilties, Putnam will be combining its fundamentally-driven investment approach with the benefits offered by an ETF structure. Our goal is to deliver strong, risk-adjusted investment performance through an array of products, including traditional mutual funds, separately managed accounts, and soon, active ETFs.”
The four ETF strategies to be launched by Putnam include:
- Putnam Sustainable Leaders ETF – Seeks long-term capital appreciation by investing mainly in common stocks of U.S. companies of any size, with a focus on companies that exhibit a commitment to sustainable business practices
- Putnam Sustainable Future ETF – Seeks long-term capital appreciation by investing mainly in common stocks of U.S. companies of any size, with a focus on companies whose products and services provide solutions that directly contribute to sustainable social, environmental and economic development
- Putnam Focused Large Cap Growth ETF – Seeks capital appreciation by investing mainly in common stocks of large U.S. companies, with a focus on growth stocks
- Putnam Focused Large Cap Value ETF – Seeks capital growth and current income by investing mainly in common stocks of large and midsize U.S. companies, with a focus on value stocks that offer the potential for capital growth, current income, or both
Carlo Forcione, Head of Product and Strategy at Putnam, pointed to the firm’s continuing work to identify and offer the most compelling, solutions-oriented product lineup – including innovative strategies and vehicles – to best serve advisors and their clients in achieving long-term investment goals.
All four Putnam ETFs will utilize the Fidelity tracking basket methodology for active equity ETFs. Fidelity’s tracking basket methodology and related features are designed to provide market makers with enough information to make effective markets in shares of the ETFs, while also maintaining the confidentiality of portfolio holdings necessary for Putnam to execute these strategies for the benefit of investors.
About Putnam Investments
Founded in 1937, Putnam Investments is a global money management firm with over 80 years of investment experience. At the end of January 2021, Putnam had $190 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Tokyo, Singapore and Sydney. For more information, visit putnam.com.
NOTE: The registration statement relating to these securities has been filed with the SEC but has not yet been declared effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
Fidelity’s “tracking basket” methodology maintains confidentiality of a portfolio’s securities and trading strategies by disclosing a “tracking basket” comprised of select recently disclosed portfolio holdings, liquid U.S. ETFs that convey information about the types of instruments in which the fund invests, and cash and cash equivalents. This “tracking basket” is disclosed daily and is used to facilitate the creation and redemption process. Each ETF’s portfolio holdings will be disclosed on its website on a monthly basis with a 30-day lag.
No products or investment vehicles offered by PUTNAM INVESTMENTS are sponsored, endorsed, sold, or promoted by FIDELITY or any of its affiliates.
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