Internally Managed Solutions

Philosophy and Approach

Research-driven: As fiduciaries, we believe ESG-integrated research adds value and should be integrated into the investment process. We do not have social or environmental agendas. 

Performance-oriented: Our ability to take a wider view of the investment landscape through a sustainable investing lens can help identify risks that can be managed and opportunities that can be captured. We believe investors focused on sustainability should not have to compromise on risk or return.

Platform approach: Our decades of experience as sustainable investors working with socially and environmentally conscious investors has taught us that there is no silver bullet – no one approach will work for all clients. We have developed a sustainable suite of strategies leveraging our research and data-driven platform to intentionally serve investors with diverse views and goals.

Our sustainable suite of investment strategies all have ESG integration at their core and varying levels of SRI exclusions and Thematic emphasis to meet the needs of a diverse client base.

Sustainable Investing 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

Equity Income II

Market-leading 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%

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

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

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

Sustainable Investing 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

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

Credit research, ESG risk factors, and emissions data drive the selection of individual corporate bonds

No traditional energy sector exposure

Excludes top carbon and toxic emitters

Weighed avg CO2 intensity < 50% of benchmark

Strategic Municipal Income

A core municipal bond strategy emphasizing credit quality and tax-adjusted yield with a flexible sector allocation

​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

Customization – Our suite of strategies often meets the needs of clients as structured, though we have the ability to dynamically layer in additional exclusionary (SRI) and inclusionary (Thematic) factors where desired.

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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