Institutional Investment Management

Philosophy and Approach

Throughout our history we have remained responsive to the needs of our clients. We have developed a number of distinct equity and fixed income strategies designed to meet these needs.

Global expertise: We actively manage across all market segments to construct broadly diversified portfolios.

Informed by broad economic themes, we focus on bottom-up security selection and fully integrate environmental, social, and governance (ESG) research throughout the investment decision making process.

Quantitative strategies: Sector-neutral dividend income strategies, high quality, cash flow-focused security selection that fully integrates environmental, social, and governance (ESG) research throughout the investment decision-making process.

Thoughtful composition: While we typically invest for the long term, our approach allows us to move quickly when dictated by changing quantitative indicators or fundamentals identified by our active risk management techniques.

Investment Management Services

Proprietary Equity Separate Account Management

Individually managed stock portfolios across multiple asset classes

Domestic and international

Traditional and sustainable

Fixed Income Separate Account Management

Taxable and tax-exempt

Traditional and sustainable

Socially Responsible Investing

Customized to meet specific client criteria

Core US Equity

Core US Equity

Broad array of market-leading companies with superior financial strength

45-55 Securities

Max position sizes greater of 5% or benchmark weight

Up to 15% Int’l

≤ 10% cash

Growth and value criteria

Large, mid and small cap opportunity set

Expected turnover 25-40%

Benchmark: S&P 500

Focused Equity

Concentrated portfolio of equities invested across multiple market segments

30-45 Securities

Max position sizes greater of 6% or benchmark weight

Up to 15% Int’l

≤ 10% cash

Growth and value criteria

Large, mid, and small cap opportunity set

Expected turnover 25-40%

Benchmark: S&P 500

Small Mid-Cap Equity Income

Focused array of high quality, small and mid-cap individual common stocks

45-55 Securities

Max position sizes greater of 5% or benchmark weight

Up to 15% Int’l

≤ 10% cash

Growth and value criteria

Mid/small caps

Expected turnover 30-50%

Benchmark: Russell 2500

Equity Income

Market-leading companies with higher-than-average dividends

45-55 Securities

Max position sizes greater of 5% or benchmark weight

Up to 15% Int’l

≤ 10% cash

Mostly large cap with limited mid/small cap opportunity set

Expected turnover 20-435%

Benchmark: S&P 500

Sustainable Equity

ESG Core US Equity

Driven by fundamental research, refined with integrated ESG analysis

35-50 Securities

Max positions sizes greater of 5% or benchmark weight

Up to 15% Int’l

≤10% cash

Growth, value, and quality criteria

Large, mid, and small cap opportunity set

Average ESG score > S&P 500

Excludes “Worst in Class” ESG-rated securities and those with significant hidden ESG-related liabilities

Benchmark: S&P 500

ESG Equity Income

Market-leading companies with higher-than-average dividends refined with integrated ESG analysis

45-55 Securities

Max position sizes greater of 5% or benchmark weight

Up to 15% Int’l

≤ 10% cash

Mostly large cap with limited mid/small cap stocks

Expected turnover 20-35%

Benchmark: S&P 500

Secondary Benchmark: Russell 1000 Value

ESG Core
International Equity

Driven by fundamental research, refined with integrated ESG analysis

45-65 Securities

Max positions sizes greater of 5% or benchmark weight

≤10% cash

Growth, value, and quality criteria

>90% of portfolio >$10B market cap

Up to 10% out of EAFE benchmark

Excludes “Worst in Class” ESG-rated securities and those with significant hidden ESG-related liabilities

Average ESG score > EAFE Score

Benchmark: MSCI EAFE

Low Carbon Core US Equity

Driven by fundamental research and carbon risk analysis

45-55 Securities

Max position sizes greater of 5% or benchmark weight

Up to 15% Int’l

≤ 10% cash

Growth and value positions

Large, mid and small cap opportunity set

Expected turnover 25-40%

Benchmark: S&P 500 Ex-Energy

Sustainable Opportunities

Driven by fundamental research and environmental thematic analysis

40-60 securities

Max positions sizes greater of 5% or benchmark weight

Up to 40% Int’l

Renewable energy

Every efficiency

Pollution prevention

Green building

Sustainable water and agriculture

Excludes top toxic and carbon emitters, top fossil fuel reserve holders

Benchmark: Russell 3000

Focused Environmental Opportunities

Concentrated thematic strategy driven by environmental and fundamental analysis

30-60 Securities

Max position sizes of 7%

Only companies with material direct product, service, or business model exposure to environmental innovation

Wide latitude across cap size, sectors, and geographic regions.

Not benchmark focused, though the MSCI World Index will be used to frame strategy exposures.

Customized Socially Responsible Investing

Designed to meet specific client requests

Catholic Values

Undervalued growth companies that maintain Catholic guidelines

35-55 Securities

Max positions sizes greater of 5% or benchmark weight

Up to 15% Int’l

≤ 10% cash

Mostly large cap with limited mid/small cap stocks that maintain or exhibit

tenets put forth by the USCCB SRI guidelines

Expected turnover 20-40%

Benchmark: S&P 500

Faith-Based Equity

Undervalued growth companies with faith-based values

35-55 Securities

Max positions sizes greater of 5% or benchmark weight

Up to 15% Int’l

≤ 10% cash

Mostly large cap with limited mid/small cap stocks that protect human life and encourage corporate responsibility. Excl: weapons, gambling, alcohol and tobacco

Expected turnover 20-40%

Benchmark: S&P 500

Fixed Income Strategies

Intermediate-Term Taxable Fixed Income

High quality core fixed income driven by credit research and macroeconomic outlook

Intermediate duration

Investment grade

15-40 individual bonds with tactical allocations to other diversifying fixed income asset classes

  • U.S. Government obligations
  • Agency and mortgage-backed securities
  • Investment-grade corporate bonds
  • Taxable municipal bonds

Maturity: 0-15 years

Average credit rating: A

Customized portfolio construction

Sector diversification

Strategic yield curve positioning

Opportunistic, relative-value trading

Credit research drives selection of individual securities

Macro view on interest rates and the economic cycle informs portfolio duration and sector allocation

Benchmark: Bloomberg Barclays Intermediate Government/Credit Index

Intermediate-Term Tax-Exempt Fixed Income

High quality core fixed income driven by credit research, macroeconomic conditions, and tax considerations

Intermediate duration

Investment grade

15-40 individual bonds with tactical allocations to other diversifying fixed income asset classes

  • Essential service revenue bonds
  • General obligation bonds
  • Cross-over opportunities
  • State of residency focus

Maturity: 0-20 years

Average credit rating: A

Customized portfolio construction

Sector diversification

Strategic yield curve positioning

Opportunistic, relative-value trading

Macro view on interest rates and the economic cycle informs portfolio duration and sector allocation

Benchmark: Bloomberg Barclays 5 Year Muni Index

Sustainable Fixed Income Strategies

ESG Core Taxable Fixed Income

High quality core fixed income driven by ESG-integrated credit research

Intermediate duration

Investment grade

15-40 individual bonds (dependent upon size of assets managed) with tactical allocations to other diversifying fixed income asset classes

Diversified by asset class and sector

Macro view on interest rates and economic outlook informs portfolio construction

ESG-integrated credit analysis drives selection of individual corporate bonds

Excludes: “Worst in Class” ESG-rated securities and those with significant hidden ESG-related liabilities

Average ESG score > benchmark

Benchmark: Bloomberg Barclays Intermediate Gov’t / Credit Index

Low Carbon Core Taxable Fixed Income

High quality core fixed income driven by ESG and climate integrated credit research

Intermediate duration

Investment grade

15-40 individual bonds (dependent upon size of assets managed) with tactical allocations to other diversifying fixed income asset classes

Diversified by asset class and sector

Macro view on interest rates and economic outlook informs portfolio construction

ESG and climate integrated credit analysis drives selection of individual corporate bonds

No traditional energy sector exposure

Excludes top carbon and toxic emitters

Weighed avg CO2 intensity < 50% of benchmark

Benchmark: Bloomberg Barclays Intermediate Gov’t / Credit Index

Municipal Impact Fixed Income

High quality core municipal strategy driven by ESG and use of proceeds impact analysis

Intermediate duration

Investment grade

15-40 individual bonds (dependent upon size of assets managed) with tactical allocations to other diversifying fixed income asset classes

Above market income

Tax-Exempt bonds selected using ESG and impact-integrated credit analysis

Green bonds included as appropriate

Focus on general obligation and revenue bonds with special attention on sectors such as higher education, clean water, affordable housing, and public transportation

Benchmark: Bloomberg Barclays 5-Year Muni Index

Reporting

Clients in our proprietary strategies receive ongoing manager commentary and portfolio reporting.

Get in touch to schedule a time to talk with a member of the F.L.Putnam team by reaching out to us below.

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