U.S. Low Volatility Equity
September 30, 2010
Russell 1000 Index
S&P 500 Index
Total strategy assets†
(as of April 2020)
- Separate account
- Focus on pursuing strong risk-adjusted performance and controlling downside risk through innovative security selection (sector-neutral low beta), progressive risk management (options strategies, and flexibility)
- A continuation of the Global Asset Allocation team's pursuit of superior risk-adjusted returns with limited downside risk
- A disciplined process that uses sector-neutral low-beta stock selection and option strategies
- A veteran management team that has been managing equity portfolios since 2004
A composite track record starting in 2010
Investing in options may lead to significant losses caused by market moves in the underlying security or index. Options trading is extremely risky, is not suitable for everyone and substantial losses may occur.
*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. See the composite report for a summary of risk considerations. As with any investment, there is a potential for profit as well as the possibility of loss.
†Assets may include accounts that are not reflected in the composite.
Annualized composite performance (%) as of April 30, 2020
|MTD||QTD||YTD||1 Year||3 Years||5 Years||Since Inception|
|U.S. Low Volatility Equity (gross)||5.60%||5.60%||-7.32%||-0.90%||5.43%||4.79%||8.36%|
|U.S. Low Volatility Equity (net)||5.55%||5.55%||-7.52%||-1.52%||4.78%||4.14%||7.66%|
|Russell 1000 Index||13.21%||13.21%||-9.68%||0.09%||8.68%||8.74%||12.46%|
|S&P 500 Index||12.82%||12.82%||-9.29%||0.86%||9.04%||9.12%||12.58%|
Calendar-year composite performance (%) as of April 30, 2020
|U.S. Low Volatility Equity (gross)||18.60%||-2.86%||14.35%||5.88%||-1.89%||10.46%||19.18%||9.64%||10.31%||--|
|U.S. Low Volatility Equity (net)||17.86%||-3.47%||13.64%||5.22%||-2.50%||9.76%||18.43%||8.87%||9.54%||--|
|Russell 1000 Index||31.43%||-4.78%||21.69%||12.05%||0.92%||13.24%||33.11%||16.42%||1.50%||16.10%|
|S&P 500 Index||31.49%||-4.38%||21.83%||11.96%||1.38%||13.69%||32.39%||16.00%||2.11%||15.06%|
Past performance is not a guarantee of future results. An investment in this strategy could lose value. Most recent month-end performance is preliminary. Returns are subject to change. Please refer to the composite report and disclosures below for additional important information regarding performance disclosures and investments risks.
Periods less than one year are not annualized. Performance is stated in U.S. dollars. and includes the reinvestment of dividends and interest.
|Putnam Equity Outlook|
The Putnam Investments U.S. Low Volatility Equity Composite (the "Composite") seeks better risk-adjusted performance than the Russell 1000 Index over a full market cycle by combining sector-neutral low-beta stock selection and an options overlay focused on managing risk and reshaping the distribution of equity returns. The strategy focuses on pursuing strong risk-adjusted performance and controlling downside risk through innovative security selection (sector-neutral low beta), progressive risk management (options strategies, and flexibility). Accounts in the Composite utilize a disciplined process that uses sector-neutral low-beta stock selection and option strategies. The option strategy involves selling out-of-money short-term calls and buying out-of-the money long-term puts. The option overlay seeks to significantly dampen the volatility of the portfolio and improve its risk-adjusted return potential. The Composite includes all fully discretionary accounts managed by Putnam in this style, including carve-out assets. The Composite's primarily benchmark is the Russell 1000 Index. The Composite's secondary benchmark is the S&P 500 Index. Although accounts in the Composite pursue the same investment strategy, they may have different benchmarks. The Composite includes all fully discretionary accounts managed by Putnam in this style, including carve-out assets. Carve-outs included in the Composite are managed separately with their own cash. A "carve-out" is a portion of a portfolio that is by itself representative of a distinct investment strategy. It is used to create a track record for a narrower mandate from a multiple-strategy portfolio managed to a broader mandate. Composites may include portfolios with certain existing investment restrictions that the Firm believes do not materially impact the investment strategy. The Composite inception date was September 30, 2010. The Composite creation date was August 17, 2011.
The Russell 1000® Index includes the 1000 largest securities in the Russell 3000 Index.
The S&P 500 Index covers 500 industrial, utility, transportation, and financial companies of the US markets (mostly NYSE issues). The index represents about 75% of NYSE market capitalization and 30% of NYSE issues. It is a capitalization-weighted index calculated with dividends reinvested.
The Russell 1000 Index, which includes the 1,000 largest securities in the Russell 3000 Index. Returns include the reinvestment of dividends and other earnings. The S&P 500 Index covers 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE issues) and is a capitalization-weighted index calculated with dividends reinvested
Composites may include portfolios with certain existing investment restrictions that the Firm believes do not materially impact the investment strategy. Benchmarks are generally taken from published sources and may have different calculation methodologies, pricing times, and/or foreign-exchange sources from the composite. The effect of those differences is generally deemed to be immaterial. The securities holdings of the Composite may differ materially from those of the index used for comparative purposes. Composites and benchmarks include the reinvestment of dividends and other earnings. Indexes are unmanaged and do not incur expenses. You cannot invest directly in an index. Gross-of-fee returns do not include the deduction of management fees and other expenses that may be incurred in managing an investment account. A portfolio's return will be reduced by advisory and other fees. Net-of-fee returns are calculated using a model fee. For the applicable time periods, net-of-fees returns reflect either the deduction of the highest management fee that is paid by a portfolio in the Composite during the performance period, applied on a monthly basis, or the deduction of the highest applicable management fee in effect during the performance period that would be charged based on the fee schedule appropriate to this mandate, without the benefit of breakpoints, applied on a monthly basis, whichever is higher. Net-of-fee calculation methodology may change over time. Actual investment advisory fees incurred by clients are typically negotiated on an individual basis and may vary depending upon, among other things, the applicable fee schedule and portfolio size. Our standard fee schedules are available upon request.