Putnam launches new Environmental, Social, and Governance (ESG)-focused funds
New England Council member, Putnam Investments, is launching five new funds to give investors more investing options in environmental social and governance. These funds, which will be brought forward in the coming months, include two quantitative equity ETFs, and three fixed income exchange-traded funds (EFTs).
This move, for the Boston-based company, comes as recent research is showing an increase in demand by investors for ESG options. In addition, investors are increasingly viewing social policies and their impacts as a critical part of the business. Putnam’s trio of new fixed-income funds include an ETF focused mainly on investment-grade bonds of governments and private companies; a high-yield fund focused on junk bonds; and an ultra-short fund that will invest in a diversified portfolio of short duration, investment-grade money market or other fixed-income securities. They will offer an international equity ETF investing primarily in common stocks of companies outside the U.S. that show attractive returns and positive ESG metrics, along with an emerging markets fund. Putnam will sponsor and serve as an investment adviser for all five of these funds.
“Putnam is committed to providing investors with a range of thoughtful, alpha-seeking sustainable and ESG offerings, as we believe in the value and importance of these strategies in building a long-term investment portfolio,” said Bob Reynolds, president and CEO, in a statement. “We have seen growing interest from many corners of the marketplace for ESG investing across a range of asset classes — and are excited to introduce these new fixed income and quantitative equity ETFs to our lineup.”
The New England Council would like to congratulate Putnam Investments on the release of these new investing funds.
Read more from the Boston Business Journal.