Global money management firm Putnam Investments announced the launch of a series of new actively managed exchange traded funds (ETFs), including three fixed income and two non-U.S. equity strategies.
The launch marks the expansion of Putnam’s suite of actively managed ETF offerings. Putnam launched its first actively managed exchange-traded funds in 2021, with two ETFs based on the firm’s ESG funds, as well as two large cap equity funds.
Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments, said:
“One of Putnam’s hallmarks has been its commitment to providing investment strategies that align with investors’ evolving needs. With today’s launch, Putnam is bringing a number of significant investment offerings to market in an ETF format.”
The new fixed income funds include the Putnam ESG Core Bond ETF, investing in a diversified portfolio of investment-grade fixed income securities issues primarily by U.S.-based companies and governments, with a focus on issuers meeting relevant ESG criteria; the Putnam ESG High Yield ETF, targeting below investment grade bonds from issuers meeting relevant ESG criteria on a sector-specific basis; and the Putnam ESG Ultra Short ETF, investing in a diversified portfolio of fixed income securities composed of short-duration, investment-grade money market and other fixed income securities, focused on issuers meeting relevant ESG criteria on a sector-specific basis.
The equity ETFs, sub-advised by Putnam affiliate PanAgora Asset Management, include the Putnam PanAgora ESG International Equity ETF and Putnam PanAgora ESG Emerging Markets Equity ETF, each investing in non-U.S. and emerging markets stocks, respectively, with a focus on securities offering attractive benchmark-relative returns and exhibiting positive ESG metrics, based on a proprietary quantitative framework.
Putnam said that it also aims to launch a new ESG-focused target-date suite, the Putnam Sustainable Retirement Funds, in the coming weeks, with the new ESG ETFs, alongside the existing Putnam Sustainable Leaders ETF and Putnam Sustainable Future ETF as underlying investments.
Carlo Forcione, Head of Product and Strategy at Putnam, said:
“Today’s newly launched ETFs are powered by strong existing investment capabilities and demonstrate the firm’s continuing focus on providing an array of compelling offerings in asset classes that are important to our clients and the broader marketplace.”