Putnam Investments : to Form Two Funds to Pursue Environmental, Social and Governance Investment Strategies
Putnam Sustainable Leaders Fund will be one of the Nation’s Largest
ESG Funds With $4.3 Billion in Assets
Investments today announced plans to offer two funds with dedicated
environmental, social and governance (ESG) strategies to the marketplace
toward the end of Q1 2018, pending SEC staff review. The new funds, to
be named Putnam Sustainable Leaders Fund and Putnam Sustainable Future
Fund, will bring two distinct investment lenses to identify
opportunities driven by corporate sustainability practices and
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Katherine Collins, Head of Sustainable Investing at Putnam Investments. (Photo: Business Wire)
Following the creation of Putnam’s Sustainable Investing team last year,
which is headed by Katherine Collins, the firm has been exploring a
variety of sustainability-focused solutions – for both the retail and
institutional markets – and has been increasingly embedding ESG analysis
across its broader investment platforms.
“The true value of active management is being able to find compelling,
differentiated investment opportunities that are often undiscovered and
away from underlying benchmarks – ultimately seeking to add meaningful
alpha to clients’ portfolios,” said Robert L. Reynolds, President and
CEO, Putnam Investments. “Our ESG product developments are part of a
larger continuing effort by Putnam to use its evolving product line-up
to help clients capitalize on a broad range of market dynamics through
an effective mix of innovative traditional and non-traditional
The two new Putnam ESG funds will be formed through the repositioning of
two existing products offered by the firm. Putnam Multi-Cap Growth Fund
will become Putnam Sustainable Leaders Fund, a multi-cap fund – with
$4.3 billion in assets at the end of December 2017 – focused on
identifying companies with demonstrated commitment to sustainable
business practices. The fund will be managed by Katherine Collins, Head
of Sustainable Investing and Shep Perkins, Co-Head of Equities. They
will be joined by Assistant Portfolio Manager Stephanie Henderson, an
analyst on the firm’s sustainable investing team. Rob Brookby, who
previously managed Putnam Multi-Cap Growth Fund, will be leaving the
firm to pursue other opportunities.
Additionally, Putnam Multi-Cap Value Fund will become Putnam Sustainable
Future Fund, a mid-cap fund – with $450 million in assets at the end of
December 2017 – focused on identifying companies with products and
services that provide solutions directly contributing to sustainable
social, environmental, and economic development. The fund will continue
to be managed by Katherine Collins, who will be joined by Assistant
Portfolio Manager Stephanie Henderson.
“There is a growing realization in the marketplace that companies
engaged in sustainability often show enhanced fundamental and financial
performance,” said Aaron Cooper, Chief Investment Officer, Equities,
“These ESG offerings are a powerful recognition by our firm that clients
and investors, who are increasingly intrigued by sustainable investing,
stand to benefit from focused strategies in this area in the years
ahead,” explained Cooper.
The two Putnam ESG-focused funds are expected to be available in the
marketplace in March 2018.
About Putnam Investments
Founded in 1937, Putnam Investments is a global money management firm
with 80 years of investment experience. At the end of December 2017,
Putnam had $171 billion in assets under management. Putnam has offices
in Boston, London, Frankfurt, Tokyo, Singapore and Sydney. For more
information, visit putnam.com.
Putnam mutual funds are distributed by Putnam Retail Management.