Franklin Templeton is pleased to introduce the FTGF Putnam US Research Fund, a sub-fund of the Irish-domiciled Franklin Templeton Global Funds plc range, to European and UK investors.
The fund has been classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). Adopting a similar approach to the Putnam US Research Equity strategy, the fund will offer US large-cap equity exposure, focusing on stock selection as the primary driver of active return. This strategy was established in 1995 and has $2.4bn of US client assets across pooled and segregated portfolios.
Matt Harrison, head of Americas (ex-US), Europe & UK said: “Putnam is a world-class manager, renowned for its deep research capabilities, disciplined investment processes, and a proven track record of delivering consistent results. Following the launch of the Putnam US Large Cap Value Fund last month, we are excited to give investors access to another innovative, high-quality investment solution with the Putnam US Research Fund.
"This sector-neutral portfolio, relative to the S&P 500 index, seeks to generate differentiated alpha through its construction of individually managed sleeves. Capitalising on the expertise of Putnam’s tenured and experienced research team, the fund will focus on providing stock-specific alpha that can offer attractive and complementary exposures to client portfolios.”
The Putnam US Research Fund will pursue consistent, superior risk-adjusted returns through a disciplined approach to idea generation, portfolio construction, and risk management. Managed with a sector-neutral approach, the strategy can own both growth and value stocks. The key differentiating characteristics are:
• Best-ideas, stock-driven approach:
Sleeve managers are directly responsible for managing industry-specific sleeves that reflect their highest-conviction ideas using a bottom-up fundamental process.
• Differentiated research:
The team adopts an opportunistic, targeted approach to research that drives insights and the ability to develop non consensus views about companies’ earnings power and value. Leveraging their tenure and respective industry expertise, Putnam’s analysts aim to build long-term “thought partnerships” with company management teams.
• Disciplined risk management:
The risk management sleeve aims to minimise the consolidated portfolio’s sector and factor risks relative to the benchmark. This unique combination of individual sleeves with a risk management sleeve drives natural portfolio diversification that seeks to deliver consistent alpha, moderate tracking error, low downside capture and high information ratios.
The fund will be co-managed by Boston-based Portfolio Managers Kate Lakin (pictured) and Matt LaPlant, CFA, who have an average of 22 years in the industry. The sleeve managers on the strategy have over 20 years of industry experience on average and partner with the broader Putnam research team, which includes industry veterans based in Boston, London, and Singapore.
Lakin said: “The fund is the powerful combination of our fundamental research engine paired with purposeful risk management. It is at the heart of everything we do. Our tenured team has deep sector expertise focused on driving returns from stock selection leading to outperformance in a variety of market environments.”
The FTGF Putnam US Research Fund comes to market with approximately $169mz in assets under management, this follows the repositioning of the FTGF Clearbridge US Appreciation Fund6.
Backed by the scale and resources of Franklin Templeton, the Putnam team comprises over 75 investment professionals, including portfolio managers, fundamental and quantitative analysts, risk managers and traders located in Boston, London and Singapore. Putnam’s investment capabilities cover value, core and growth strategies across US large, small- and multi-caps, as well as global, non-US and dedicated sustainable investment solutions.
