Separately Managed Accounts

Putnam strategies seek to outperform indexes with a disciplined investment process.

Each SMA provides exposure to Putnam's deep research expertise. Our teams seek stocks with idiosyncratic risks that can outperform their benchmarks. The portfolio managers have autonomy to pursue ideas with great potential value as alpha drivers. Active risk management helps to mitigate unintended bets.

Characteristics of Putnam managed account strategies

A focus on selecting stocks with idiosyncratic risks
Pursuit of alpha to achieve meaningful separation from benchmark indexes
Portfolio construction designed around client outcomes

Putnam managed account strategies fall into three categories

No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her initial investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risks involved before deciding to invest. As with any investment, there is a potential for profit as well as the possibility of loss.

Our checklist can help you decide if an SMA is right for you

Larger investment amounts
Values-based investing
Special tax situations

SMAs are emerging as the vehicle of choice for more and more investors. The below checklist can help to determine if an SMA may be appropriate, based on client financial situations, investment objectives, risk tolerance, and other factors.

Does the client have at least $100,000 to invest?
An SMA might be the right choice.
A mutual fund, ETF, or model portfolio might be a better choice.
Does the client have a special investment risk, such as a large amount of company stock?
An SMA would allow many ways to help diversify investment risks through customized portfolio positioning.
A mutual fund or an ETF could be used to help diversify investment risk, but allows no personalized control.
Does the client have special tax considerations?
An SMA allows the financial representative to make buying and selling decisions based on a client’s tax situation.
A mutual fund is less desirable, as it distributes capital gains to all shareholders equally based on portfolio manager’s decisions.
Does the client want to own securities that better reflect their values?
SMAs are available with ESG or sustainable strategies. Also, an SMA allows the financial representative to make buying and selling decisions that are better aligned with the client’s values.
An ESG, a sustainable mutual fund, or an ETF can also be aligned with an investor’s values, but they do not allow the investor to screen out specific securities.

An exchange-traded fund, or ETF, is a security that tracks an index, a commodity, or a basket of assets like an index fund but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. Separately managed accounts are not suitable for everyone. Other types of investments may provide the same or similar benefits as separately managed accounts, possibly at a lower cost.

Learn more about our separately managed accounts

To learn more about our offerings, please call our Client Engagement Center (CEC) at 1-800-354-4000. We can explain the experience of the portfolio managers and the discipline of each investment process. We can also provide you with portfolio characteristics and performance information.

Managed accounts programs: Putnam Investment Management, LLC (“Putnam”) offers investment advisory services through managed account programs that offer “Model-Delivery” or “Dual-Contract” separately managed accounts (“SMAs”) and are sponsored by non-affiliated financial intermediaries (“Program Sponsors”). Model-Delivery SMAs are non-discretionary investment services where Putnam generally provides ongoing investment recommendations through one or more “model” portfolios, and the Program Sponsor, rather than Putnam, makes investment decisions and executes trades on behalf of its underlying clients. The Program Sponsor decides in its discretion whether to make any changes to the model that Putnam recommends and is also solely responsible for determining the suitability of the strategy and investments for each client that participates. For Dual-Contract SMAs, Putnam generally obtains a client’s written consent to its discretionary authority with respect to the client’s assets in the form of an executed investment management agreement or other comparable services agreement prior to providing discretionary advisory services. The Program Sponsor is responsible for ascertaining the financial circumstances, investment objectives, and investment restrictions applicable to each client through information provided by the client. Putnam is responsible only for managing the Dual-Contract SMA in accordance with the selected investment strategy and any “reasonable restrictions” imposed by the client. There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results. Information and other marketing materials created by Putnam concerning a Model-Delivery or Dual-Contract SMA strategy – including holdings, performance and other characteristics – may not be indicative of a client’s actual experience from an account managed in accordance with the strategy. This material has been created by Putnam, and the information included herein has not been verified by a Program Sponsor and may materially differ from information provided by a Program Sponsor. Putnam is not responsible for overseeing the provision of services by a Program Sponsor and cannot assure the quality of its services.