Franklin Templeton1 introduces the FTGF Putnam US Research Fund2, a sub-fund of the Irish-domiciled Franklin Templeton Global Funds plc range, to UK investors.
Adopting a similar approach to the Putnam US Research Equity strategy, the fund willoffer US large-cap equity exposure, focusing on stock selection as the primary driver of active return. This highly successful strategy was established in 1995 and has $2.4 billion3 of US client assets across pooled and segregated portfolios.
Harry Reeves, Head of Sales, UK Wholesale said:
“Following the launch of the Putnam US Large Cap Value Fund last month, we are excited to add another innovative and high-quality investment solution with the Putnam US Research Fund to our UK range. This US Core fund will be a valuable addition to our clients’ portfolios, offering the potential for strong performance in a variety of market conditions.”
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.
History of consistent high stock-specific alpha
The Putnam US Research Equity strategy has historically delivered consistent outperformance of the US equity market as measured by the S&P 500 Index, over all long periods -3- ,5-, and 10-years ended 31 March 20254. In addition, low tracking error and high alpha have resulted in highly efficient returns.
The fund will be co-managed by Boston-based Portfolio Managers Kate Lakin 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.
Kate Lakin commented:
“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 $169 million4 in assets under management, this follows the re-positioning of the FTGF Clearbridge US Appreciation Fund5.
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. The firm was recognised in Barron’s “Best Fund Families 2023” for strong investment performance with 86% of its mutual fund assets rated 4 or 5 stars by Morningstar as of 31 December 2024.
