Key Takeaways
- • Putnam Investments plans to launch five active, ESG-focused exchange-traded funds: three fixed income ETFs and two quantitative equity ETFs, pending completion of the regulatory process.
- • Fixed income lineup comprises the Putnam ESG Core Bond ETF, Putnam ESG High Yield ETF and Putnam ESG Ultra Short ETF, built on the existing Putnam Fixed Income team's capabilities.
- • Quantitative equity lineup comprises the Putnam PanAgora ESG International Equity ETF and Putnam PanAgora ESG Emerging Markets Equity ETF, sub-advised by affiliate PanAgora Asset Management, Inc.
- • Putnam will serve as sponsor and investment adviser on all five ETFs, which will also feed the firm's ESG target-date series, the Putnam Sustainable Retirement Funds.
- • The target-date repositioning will replace the existing Putnam RetirementReady Funds series over the coming months.
Summary
Putnam Investments announced on June 19, 2022 that it will bring five actively managed, environmental, social and governance (ESG)-focused exchange-traded funds to market in the coming months, subject to the completion of regulatory procedures, according to a Business Wire release datelined Boston. The offering spans fixed income and quantitative equity, and is designed to help investors build ESG portfolios across asset classes.
The three fixed income products are the Putnam ESG Core Bond ETF, the Putnam ESG High Yield ETF and the Putnam ESG Ultra Short ETF. The company said these portfolios build on the long-standing capabilities and experience of its Putnam Fixed Income team, now delivered in an ETF format. The Putnam ESG High Yield ETF, per the firm's fund materials, invests in companies or issuers that Putnam Management believes meet relevant ESG criteria.
The two quantitative equity products are the Putnam PanAgora ESG International Equity ETF and the Putnam PanAgora ESG Emerging Markets Equity ETF. Both will be sub-advised by Putnam affiliate PanAgora Asset Management, Inc., which the release describes as well regarded in the industry for quantitative investment management. Putnam will act as sponsor and investment adviser on all five funds.
The new ETFs, together with the existing Putnam Sustainable Leaders ETF and Putnam Sustainable Future ETF, will serve as underlying components of the firm's ESG-focused target-date series, the Putnam Sustainable Retirement Funds. The suite will be implemented over the coming months through a repositioning of the current Putnam RetirementReady Funds target-date series.
Robert L. Reynolds, Putnam's president and chief executive, framed the launch around the firm's commitment to "thoughtful, alpha-seeking sustainable and ESG offerings" as part of long-term portfolio construction. The release does not disclose fund sizes, expense ratios or specific launch dates.
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The three fixed income products are the Putnam ESG Core Bond ETF, the Putnam ESG High Yield ETF and the Putnam ESG Ultra Short ETF. The company said these portfolios build on the long-standing capabilities and experience of its Putnam Fixed Income team, now delivered in an ETF format. The Putnam ESG High Yield ETF, per the firm's fund materials, invests in companies or issuers that Putnam Management believes meet relevant ESG criteria.
The two quantitative equity products are the Putnam PanAgora ESG International Equity ETF and the Putnam PanAgora ESG Emerging Markets Equity ETF. Both will be sub-advised by Putnam affiliate PanAgora Asset Management, Inc., which the release describes as well regarded in the industry for quantitative investment management. Putnam will act as sponsor and investment adviser on all five funds.
The new ETFs, together with the existing Putnam Sustainable Leaders ETF and Putnam Sustainable Future ETF, will serve as underlying components of the firm's ESG-focused target-date series, the Putnam Sustainable Retirement Funds. The suite will be implemented over the coming months through a repositioning of the current Putnam RetirementReady Funds target-date series.
Robert L. Reynolds, Putnam's president and chief executive, framed the launch around the firm's commitment to "thoughtful, alpha-seeking sustainable and ESG offerings" as part of long-term portfolio construction. The release does not disclose fund sizes, expense ratios or specific launch dates.
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