Franklin Templeton Introduces Putnam Investments’ High Conviction Strategy to European and UK Investors

• High-conviction core fund is Article 8 compliant and combines best ideas of Putnam’s tenured research team with dedicated risk management overlay that seeks to neutralise unintended industry, sector and factor tilts

London, 28 April 2025 – Franklin Templeton¹ is pleased to introduce the FTGF Putnam US Research Fund², a sub-fund of the Irish-domiciled Franklin Templeton Global Funds plc range, to European and UK investors.  The fund has been classified as Article 8³ under the Sustainable Finance Disclosure Regulation (SFDR).  Adopting a similar approach to the Putnam US Research Equity strategy, the fund will offer US large-cap equity exposure, focusing on stock selection as the primary driver of active return.  This highly successful strategy was established in 1995 and has $2.4 billion⁴ of US client assets across pooled and segregated portfolios.

Matt Harrison, Head of Americas (ex-US), Europe & UK said: “Putnam is a world-class manager, renowned for its deep research capabilities, disciplined investment processes, and a proven track record of delivering consistent results. Following the launch of the Putnam US Large Cap Value Fund last month, we are excited to give investors access to another innovative, high-quality investment solution with the Putnam US Research Fund. This sector-neutral portfolio, relative to the S&P 500 index, seeks to generate differentiated alpha through its construction of individually managed sleeves. Capitalising on the expertise of Putnam’s tenured and experienced research team, the fund will focus on providing stock-specific alpha that can offer attractive and complementary exposures to client portfolios.”

The Putnam US Research Fund will pursue consistent, superior risk-adjusted returns through a disciplined approach to idea generation, portfolio construction, and risk management. Managed with a sector-neutral approach, the strategy can own both growth and value stocks.  The key differentiating characteristics are:

• Best-ideas, stock-driven approach:

Sleeve managers are directly responsible for managing industry-specific sleeves that reflect their highest-conviction ideas using a bottom-up fundamental process.  

• Differentiated research:

The team adopts an opportunistic, targeted approach to research that drives insights and the ability to develop non consensus views about companies’ earnings power and value. Leveraging their tenure and respective industry expertise, Putnam’s analysts aim to build long-term “thought partnerships” with company management teams.

• Disciplined risk management:

The risk management sleeve aims to minimise the consolidated portfolio’s sector and factor risks relative to the benchmark. This unique combination of individual sleeves with a risk management sleeve drives natural portfolio diversification that seeks to deliver consistent alpha, moderate tracking error, low downside capture and high information ratios.

History of consistent high stock-specific alpha

The Putnam US Research Equity strategy has historically delivered consistent outperformance of the US equity market as measured by the S&P 500 Index, over all long periods - 3- ,5-, and 10-years ended 31 March 2025⁵.  In addition, low tracking error and high alpha have resulted in highly efficient returns. 

The fund will be co-managed by Boston-based Portfolio Managers Kate Lakin and Matt LaPlant, CFA, who have an average of 22 years in the industry. The sleeve managers on the strategy have over 20 years of industry experience on average and partner with the broader Putnam research team, which includes industry veterans based in Boston, London, and Singapore.

Kate Lakin commented: “The fund is the powerful combination of our fundamental research engine paired with purposeful risk management. It is at the heart of everything we do. Our tenured team has deep sector expertise focused on driving returns from stock selection leading to outperformance in a variety of market environments.”

The FTGF Putnam US Research Fund comes to market with approximately $169 million⁵ in assets under management, this follows the repositioning of the FTGF Clearbridge US Appreciation Fund⁶. 

Backed by the scale and resources of Franklin Templeton, the Putnam team comprises over 75 investment professionals, including portfolio managers, fundamental and quantitative analysts, risk managers and traders located in Boston, London and Singapore. Putnam’s investment capabilities cover value, core and growth strategies across US large, small- and multi-caps, as well as global, non-US and dedicated sustainable investment solutions. The firm was recognised in Barron’s “Best Fund Families 2023” for strong investment performance with 86% of its mutual fund assets rated 4 or 5 stars by Morningstar as of 31 December 2024.  

- ENDS -

Contacts:

Saira Khan Senior Corporate Communications Manager Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 073 8644 Email: [email protected]

Dorine Johnson Head of Corporate Communications EMEA Franklin Templeton Cannon Place, 78 Cannon Street London EC4N 6HL Tel: 0207 073 8538 Email: [email protected]

Notes to Editors:

This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.

1. Franklin Resources, Inc. [NYSE:BEN] is a global investment management organisation with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialisation on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.53 trillion in assets under management as of 31 March 2025. For more information, please visit www.franklintempleton.co.uk and follow us on LinkedIn, X, and Facebook.
2. The FTGF Putnam US Research Fund is a sub-fund of the Irish domiciled Franklin Templeton Global Funds plc range. FTGF is an open-ended investment company with variable capital, organised as an undertaking for collective investment in transferable securities ('UCITS'). FTGF is authorised in Ireland by the Central Bank of Ireland. Information has been prepared from sources believed reliable. It is not guaranteed in any way by any Franklin Resources, Inc. company or affiliate (together 'Franklin Templeton'). Before investing you should read the application form Prospectus and KID. The fund documents may be obtained free of charge in English, French, German, Italian and Spanish from FTGF's registered office at Riverside Two, Sir John Rogerson's Quay, Grand Canal Dock, Dublin 2, Ireland, from FTGF's administrator, BNY Mellon Fund Services (Ireland) Limited, or can be requested via FT's European Facilities Service which is available at https://www.eifs.lu/franklintempleton, or please visit www.franklintempleton.co.uk to be directed to your local Franklin Templeton website.

The sub-funds of FTGF are notified for marketing in multiple EU Member States under the UCITS Directive. FTGF can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.

3. This fund has been classified as Article 8 under the Regulation on sustainability related disclosures in the financial services sector (EU) 2019/2088. These are Funds which have an ESG integration approach and, in addition, have binding environmental and/or social characteristics in their investment process. Further information in relation to the sustainability-related aspects of the Fund can be found at franklinresources.com/countries. Please review all of the fund's objectives and characteristics before investing.

For UK Investors: These products are based overseas and is not subject to UK sustainable investment labelling and disclosure requirements.

4. Source: Putnam Investments as of 31 December 2024.
5. Source: Franklin Templeton as of 31 March 2025
6. The FTGF Clearbridge US Appreciation Fund was a sub-fund of the Irish domiciled Franklin Templeton Global Funds plc range. The fund was repositioned into the FTGF Putnam US Research Fund effective 28 April 2025.

This press release is intended to be of general interest only and does not constitute professional advice. Franklin Templeton and its management groups have exercised professional care and diligence in the collection and processing of the information in this press release. Franklin Templeton makes no representations or warranties with respect to the accuracy of this document. Franklin Templeton shall not be liable to any user of this report or to any other person or entity for the inaccuracy of information contained in this press release or for any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission.

Any research and analysis contained in this document has been procured by Franklin Templeton for its own purposes.

Please consult your financial advisor before deciding to invest.

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