Franklin Templeton1 has launched FTGF Putnam US Large Cap Value Fund2, a sub-fund of the Franklin Templeton Global Funds plc range domiciled in Ireland. The fund adopts the approach of the highly successful Putnam US Large Cap Value Equity Strategy, which has been running since 1992 and has $64 billion3 in assets under management. The new fund has been registered for sale in the United Kingdom and is now available to investors.
Harry Reeves, Head of Sales, UK Wholesale said: “In the current market environment, characterised by uncertainty due to political factors, this strategy offers UK investors diversified exposure to the US market with a disciplined approach to blending multiple sources of alpha. As a true value strategy, it has only one Magnificent Seven constituent in its top ten, making it a steady and reliable choice for investors seeking consistent performance. We are seeing strong client appetite for this strategy and believe it will be particularly appealing to platforms, IFAs and wealth managers.”
The Putnam US Large Cap Value Fund’s objective is to seek capital appreciation by investing at least 80% of its total assets in equity securities of large cap US companies which the Investment Manager believes are undervalued. Specifically, the portfolio managers will focus on underappreciated stocks that are priced attractively relative to their cash flows and poised for positive change.
The fund’s strategy pursues consistent superior risk-adjusted returns through a disciplined approach to idea generation, portfolio construction, and risk management. The fund is differentiated as follows:
A stock-driven, not style-driven approach
Delivering consistently good, not occasionally great returns
The Putnam US Large Cap Value Equity Strategy has demonstrated consistent risk-adjusted returns regardless of which style is in favour, outperforming its benchmark in nine of the last ten calendar years4. It has generated positive excess return in varying market environments while staying true to style with relatively low turnover. As part of their disciplined investment process, the portfolio managers look beyond traditional value metrics to find opportunities across the value universe.
The new fund will be co-managed by Boston-based Portfolio Managers Darren Jaroch, CFA, and Lauren DeMore, CFA, who have over 24 years of combined experience managing portfolios at Putnam.They are supported by a tenured team of more than 30 research analysts with deep sector expertise. Putnam’s research team includes industry veterans based in Boston, London, and Singapore.
Darren Jaroch commented: “As portfolio managers, we don’t try to predict the duration or magnitude of macroeconomic disruptions or turbulent markets. However, we do analyse the overall market environment in the context of how it affects our individual stock holdings. Our focus is on stock selection, while aiming to keep the portfolio as immune as possible to macroeconomic challenges.”
Lauren DeMore added: “We believe the winners in a value portfolio are those that are underappreciated and undervalued. They are companies that are poised to exceed expectations for earnings and revenue growth, that are more disciplined in their capital expenditures, and that will return more capital to shareholders than anticipated.”
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.
For more information please visit: https://www.franklintempleton.co.uk/our-funds/focus-funds/ftgf-putnam-us-large-cap-value-fund
