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 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 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

Fundamental Core Equity Strategies

ESG Core US Equity

Driven by fundamental research, refined with integrated ESG analysis

Target 35-50 Securities

Max positions sizes greater of 5% or benchmark weight

Up to 15% international

≤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

Core US Equity

Broad array of market-leading companies with superior cash-flow, financial, and relative strength dynamics

Target 45-55 Securities

Max position sizes greater of 5% or benchmark weight

Up to 15% international

≤ 10% cash

Growth, value, and quality criteria

Large-, mid-, and small-cap opportunity set

Expected turnover 25-40%

Benchmark: S&P 500

Low Carbon Core US Equity

Driven by fundamental research and carbon risk analysis

Target 40-60 Securities

Max positions sizes greater of 5% or benchmark weight

Up to 15% international

≤10% cash

No traditional energy exposure

Excludes top toxic and carbon emitters, top fossil fuel reserve holders, coal fired electric utilities

Targeted weighted average CO2 intensity less than benchmark

Benchmark S&P 500 ex energy

Focused Core US Equity

Concentrated portfolio of high-conviction equities exhibiting strong profitability and free cash flow

Target 30-45 Securities

Max position sizes greater of 6% or benchmark weight

Up to 15% international

≤ 10% cash

Growth, value, and quality criteria

Large-, mid-, and small-cap opportunity set

Expected turnover 25-50%

Benchmark: S&P 500

Fundamental Core SRI Strategies

Catholic Values

Undervalued growth companies that maintain Catholic guidelines

Target 35-55 Securities

Max positions sizes greater of 5% or benchmark weight

Up to 15% international

≤ 10% cash

Primarily large-cap companies, with some small- and mid-cap exposure

Companies that are consistent with the USCCB Socially Responsible guidelines

Expected turnover 20-40%

Benchmark: S&P 500

Faith-Based Equity

Undervalued growth companies that maintain faith-based values

Target 35-55 Securities

Max positions sizes greater of 5% or benchmark weight

Up to 15% international

≤ 10% cash

Primarily large-cap companies, with some small- and mid-cap exposure

Companies that protect human life and dignity, and encourage corporate responsibility

Expected turnover 20-40%

Benchmark: S&P 500

Custom Management

When necessary, we can craft portfolios for large pools of capital that are driven by our research while addressing client-specific portfolio construction considerations

Industry

Sector

Specific securities

Leverage proprietary SRI database with customizable screening and reporting

Thematic Sustainable Strategies

Sustainable Opportunities

A core approach driven by fundamental research and environmental thematic analysis

Target 40-60 securities

Max positions sizes greater of 5% or benchmark weight

Up to 40% international

Alternative energy

Energy 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

Target 30-60 Securities

Max position size of 7%

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

≤ 10% cash

Wide latitude across cap size, sectors, and geographic locations

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

Quantitative Equity Income Strategies

Equity Income

High-quality companies with higher-than-average dividends

Target 40-60 Securities

Max position sizes greater of 5% or benchmark weight

≤ 10% cash

Mostly large cap with limited mid-/small-cap stocks

Expected turnover 20-50%

All securities are required to pay a dividend

Benchmark: S&P 500

ESG Equity Income

High-quality companies with higher-than-average dividends refined with integrated ESG analysis

Target 40-60 Securities

Max position sizes greater of 5% or benchmark weight

≤ 10% cash

Mostly large cap with limited mid-/small-cap stocks

Expected turnover  25-50%

Benchmark: S&P 500

Secondary Benchmark: Russell 1000 Value

All-Cap Equity Income

High-quality companies with higher-than-average dividends

Target 40-60 Securities

Max position sizes greater of 5% or benchmark weight

≤ 10% cash

Large-, mid-, and small-cap opportunity set

Must be in Equity Income and SMID strategies

Expected turnover 25-50%

Blended Benchmark: 65% Russell 1000 / 35% Russell 2500

Small / Mid-Cap Equity Income

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

Target 40-60 Securities

Max position sizes greater of 5% or benchmark weight

≤ 10% cash

Growth and value criteria

Mid-/small-cap stocks

Expected turnover 25-50%

Benchmark: Russell 2500

Short-Duration Fixed Income Strategies

Individual Bonds

A laddered, short-duration bond strategy focused on principal preservation, liability matching, liquidity, and yield throughout the interest rate cycle

Multi-year investment horizon

Laddered maturity structure

Short duration: < 3 years

Credit quality: Single A or higher

Defined maturities lead to a more certain total-return profile

Individual holdings provide transparency

Can be liability-matched

More rigid maturity schedule makes the strategy less flexible if client circumstances change

Optimized Exchange-Traded Funds

A short-duration bond strategy comprised of mutual funds and ETFs that emphasizes liquidity and above-market yield throughout the interest rate cycle

Multi-year investment horizon

Low-cost ETFs and mutual funds optimized for risk and return parameters (standard deviation, drawdown, yield)

Short duration: < 3 years

Credit quality: Single A or higher

The constant maturity nature of ETFs and mutual funds lead to a less certain total-return profile

ETFs and mutual funds afford more flexibility if client circumstances change

Intermediate-Term Fixed Income Strategies

Taxable Fixed Income

A core fixed income approach focusing on income, quality, and total return with integrated ESG analysis

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

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 Intermediate Gov’t/Credit Index

Tax-Exempt Municipal Impact

A core municipal bond strategy emphasizing credit quality and tax-adjusted yield with an allocation to municipal impact sectors

​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 for state of residence

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 5-Year Muni Index

Low Carbon Taxable Fixed Income

A core fixed income approach focusing on income, quality, and total return that avoids top carbon and toxic emitters

​Investment grade

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

Average credit rating:  A

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 Intermediate Gov’t / Credit 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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