Bob Reynolds and his team are preparing a series of multi-cap mutual funds. Yesterday Putnamfiled to create the Putnam Multi-Cap Core Fund, and the firm will also transform three other funds, the Putnam Mid Cap Value Fund on the one hand and the Putnam New Opportunities Fund and Putnam Vista Fund, into the Putnam Multi-Cap Value Fund and the Putnam Multi-Cap Growth Fund, respectively.
"Putnam's multi-cap suite will allow the funds' experienced managers to select from all companies within their style universes and essentially build a portfolio of their best ideas, whatever the market cap of the securities they choose," stated Reynolds, president and CEO.
Gerard Sullivan, manager of Putnam Investors Fund, will PM the new Multi-Cap Core Fund. Mid Cap Value Fund PM James Polk will continue to PM the fund as it transforms into Multi-Cap Value, while Putnam Growth Opportunities Fund PM Robert Brookby will take over the Multi-Cap Growth Fund.
The new Multi-Cap Core Fund will boast six share classes: A shares for 136 basis points, B shares for 211 bps, C shares for 211 bps, M shares for 186 bps, R shares for 161 bps and Y shares for 111 bps. Putnam has not yet named an accounting firm for the new fund, and State Street will serve as its custodian. Ropes & Gray is the proposed fund's independent counsel.
Company Press Release
BOSTON, June 14, 2010 — Putnam Investments today announced that it will be launching a suite of three U.S. multi-cap equity funds, available in its entirety by late September 2010, to provide investors and their advisors with an approach to investing by style — value, core/blend, growth — regardless of the market capitalization of the underlying securities. The multi-cap equity funds will join a series of solutions-based product suites that have been launched or expanded by Putnam in the past 18 months, including Putnam Absolute Return Funds, Putnam Spectrum Funds and Putnam Global Sector Funds.
Drawing on both new and reconstituted products, the Putnam multi-cap suite will offer exposure to the full array of stocks within the value, core/blend, and growth universes by utilizing the firm’s stock-picking and fundamental research capabilities. Each fund’s portfolio manager will have the ability to own a holding as it changes in capitalization — if desired — without constraints that would require him to sell if the company were to get too large, or that would prevent him from taking advantage of an attractively priced stock.
“As the equity market continues to rapidly evolve, with its ever-changing set of dynamics, there are opportunities to be realized — and potentially losses to be avoided — through more flexible portfolio parameters,” said Putnam Investments President and Chief Executive Officer Robert L. Reynolds. “Putnam’s multi-cap suite will allow the funds’ experienced managers to select from all companies within their style universes and essentially build a portfolio of their best ideas, whatever the market cap of the securities they choose.”
“In virtually all of Putnam’s new product offerings since the start of 2009, the firm has sought to address investment needs and capture opportunity through fund vehicles that enable greater portfolio construction flexibility in a market environment that has little use for rigidity and convention,” Reynolds explained.
In particular, he noted the ability of Putnam Absolute Return Funds to invest in a range of securities in pursuit of a targeted return above Treasury bills, Putnam Capital Spectrum Fund to invest across a company’s entire capital structure, and Putnam Global Sector Funds to provide world-wide, active investment exposure to all sectors of the MSCI World Index.
The suite of Putnam multi-cap equity funds will consist of the following:
Putnam Multi-Cap Value Fund will seek capital appreciation by investing in value stocks of small, midsize, and large companies. Formerly Putnam Mid Cap Value Fund, the fund’s name and investment strategy will change effective September 1, 2010. Its new investment strategy will give it the flexibility to invest across all capitalization levels. The fund will continue to be managed by James Polk, who has been Portfolio Manager since 2004. He joined Putnam in 1998 and is a CFA charterholder with 16 years of investment industry experience.
Putnam Multi-Cap Core Fund is a new fund that, subject to SEC review, will be available in late September 2010, and will seek capital appreciation by investing in growth and value stocks of small, midsize, and large companies. The fund will be managed in Putnam’s core/blend style by Gerard Sullivan, who currently manages Putnam Investors Fund and has 28 years of investment experience.
Putnam Multi-Cap Growth Fund will seek capital appreciation by investing in growth stocks of small, midsize, and large companies. Formerly Putnam New Opportunities Fund, the fund’s name will change effective September 1, 2010 to better reflect the fund’s investment strategy. In addition, in late September 2010, subject to the approval of shareholders of Putnam Vista Fund (also a growth fund), Putnam Vista Fund will merge into Putnam Multi-Cap Growth Fund. In July, Putnam Vista Fund’s shareholders will receive proxy materials requesting their vote on the merger, and Putnam Vista Fund will close to new accounts on or about July 15, 2010.
The fund will be managed by Robert Brookby, who also manages Putnam Growth Opportunities Fund and has 11 years of industry experience. Prior to joining Putnam in 2008, Robert served as Portfolio Manager of American Century Fundamental Equity Fund, a large- and mid-cap portfolio.
All changes to existing funds will also take effect for corresponding variable trust funds.
Putnam Investment Solutions
The new Putnam multi-cap equity suite represents the latest step in the turnaround of the 70-year-old Boston-based company that began when Putnam President and Chief Executive Officer Robert L. Reynolds took the helm in July 2008. The company’s revival has been driven by improved performance, innovative new products and platforms and a renewed focus on the retirement market. Among the steps that have been taken are:
Developing Putnam Absolute Return Funds, the mutual fund industry’s first suite of absolute return mutual funds, designed to provide positive returns over time, with less volatility than more traditional mutual funds, whether markets are rising or falling;
Introducing Putnam Spectrum Funds, which invest in the securities of leveraged companies while looking to generate returns through investments across their entire capital structure.
Expanding the scope of the actively managed Putnam Global Sector Funds to target stocks in dynamic sectors across global markets, covering nine sectors across the entire MSCI World Index, and which can be combined to create a highly customized portfolio. Additionally, Putnam recently launched the first fund-of-sector-funds in the global equity space, providing exposure to all sectors contained in the MSCI World Index — in weighted proportions — by investing in eight Putnam global sector funds.
Becoming the first investment manager to add target absolute return strategies to the mix of underlying investments in Putnam RetirementReady® Funds, the firm’s suite of 10 target-date/lifecycle retirement funds. Employed in retirement portfolios, absolute return strategies are intended to pursue positive returns in up and down markets, to protect against the harmful effects of adverse investment returns, and to reduce volatility, particularly for investors in or near retirement.
Putnam’s dramatic turnaround has been recognized recently by Institutional Investor, which named Putnam Investments “Mutual Funds Manager of the Year” and Reynolds as “Fund Leader of the Year.” Earlier this year, Lipper/Barron’s Best Mutual-Fund Families Survey, ranked Putnam #1 based on dramatic gains by individual funds and advancements across the entire fund complex in 2009.
About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money management firm with over 70 years of investment experience. The firm was recently ranked #1 out of 61 fund families based on its funds’ performance during 2009 in a Lipper/Barron’s Fund Families Survey and named “Mutual Fund Manager of the Year” by Institutional Investor. At the end of March 2010, Putnam had $118 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Amsterdam, Tokyo, Singapore, and Sydney. For more information, visit putnam.com.
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Putnam mutual funds are distributed by Putnam Retail Management.