Target-Date Series Invests in Active ETFs Utilizing a Sustainable Investing Approach
BOSTON–(BUSINESS WIRE)–Putnam Investments today announced the availability of Putnam Sustainable Retirement Funds, a target-date series for the retirement savings marketplace. The suite invests in actively managed sustainable and environmental, social and governance (ESG)-focused exchange-traded funds (ETFs) managed by Putnam.
Implementing a similar retirement glidepath philosophy as the firm’s other target-date offering, Putnam Retirement Advantage1, the series offers vintages for every five years from 2025 through 2065, along with a maturity fund. The Putnam Global Asset Allocation team, which also manages Putnam Retirement Advantage, is responsible for the glidepath and both the tactical and ETF allocations of the Putnam Sustainable Retirement target-date suite.
“As the retirement marketplace continues to evolve and grow, there is tremendous appetite for meaningful product innovation that creates greater choice of offerings to help working Americans achieve their financial goals,” said Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments.
“Putnam is pleased to continue our commitment to delivering differentiated active management strategies by adding Putnam Sustainable Retirement Funds to our line-up of investment products for plan sponsors and their participants,” he explained.
In discussing the announcement, Steven P. McKay, Putnam’s Head of Global Defined Contribution Investment Only, said, “There is growing interest in sustainable investing within the defined contribution realm, and we are excited to deliver this innovative approach to target-date investing to the retirement savings marketplace.”
Putnam Sustainable Retirement Funds will invest in ETFs across asset classes managed by the firm, including:
Putnam Sustainable Future ETF (NYSE Arca: PFUT)
Putnam Sustainable Leaders ETF (NYSE Arca: PLDR)
Putnam ESG Core Bond ETF (NYSE Arca: PCRB)
Putnam ESG High Yield ETF (NYSE Arca: PHYD)
Putnam ESG Ultra Short ETF (NYSE Arca: PULT)
Putnam PanAgora ESG Emerging Markets Equity ETF (NYSE Arca: PPEM) *
Putnam PanAgora ESG International Equity ETF (NYSE Arca: PPIE) *
*Sub-advised by PanAgora Asset Management, Inc.
Putnam Sustainable Retirement Funds succeed the Putnam RetirementReady® Funds.
About Putnam Investments
Founded in 1937, Putnam Investments is a global money management firm with over 85 years of investment experience. At the end of January 2023, Putnam had over $170 billion in assets under management. Putnam has offices in Boston, London, Munich, Singapore, Sydney and Tokyo. For more information, visit putnam.com.
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Each Sustainable Retirement Fund has a different target date indicating when the fund’s investors expect to retire and begin withdrawing assets from their account. The dates range from 2025 to 2065 in five-year intervals. The funds are generally weighted more heavily toward more aggressive, higher-risk investments when the target date of the fund is far off, and more conservative, lower-risk investments when the target date of the fund is near. This means that both the risk of your investment and your potential return are reduced as the target date of the particular fund approaches, although there can be no assurance that any one fund will have less risk or more reward than any other fund. The principal value of the fund is not guaranteed at any time, including the target date.
Consider these risks before investing: If the quantitative models or data that are used in managing an underlying fund prove to be incorrect or incomplete, investment decisions made in reliance on the models or data may not produce the desired results and the fund may realize losses. Our allocation of assets among permitted asset categories may hurt performance.
The value of investments in the underlying ETF portfolios may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, asset class, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the underlying funds’ portfolio holdings.
Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Default risk is generally higher for non-qualified mortgages. Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise. The underlying funds may have to invest the proceeds from prepaid investments, including mortgage- and asset-backed investments, in other investments with less attractive terms and yields. International investing involves currency, economic, and political risks. Emerging market securities carry illiquidity and volatility risks.
The principal value of each fund is not guaranteed at any time, including at the target date. Changes in the financial condition of an issuer or counterparty, changes in specific economic or political conditions that affect a particular type of issuer, and changes in general economic or political conditions can increase the risk of default by an issuer or counterparty, which can affect a security’s or instrument’s credit quality or value.
Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the underlying funds may not perform as well as other securities that we do not select for the underlying funds. We, or the underlying funds’ other service providers, may experience disruptions or operating errors that could have a negative effect on the underlying funds. You can lose money by investing in the funds.
Request a prospectus or a summary prospectus, if available, from your financial representative or by calling Putnam at 1-800-225-1581. These prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.
1 Putnam Retirement Advantage is offered through two series: Putnam Retirement Advantage Trusts (collective investment trusts) and Putnam Retirement Advantage Funds (mutual funds).
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