US group Putnam Investments is to begin distributing five funds from its Dublin domiciled, UK-author...
US group Putnam Investments is to begin distributing five funds from its Dublin domiciled, UK-authorised umbrella through the intermediary channel, writes Robert Stock.
The firm, which is America's fourth biggest mutual fund provider with a total of $391bn under management, is planning further introductions at later dates depending on the response it gets from UK investors.
Putnam is to market the Putman Emerging Information Sciences Fund, Europe Equity Fund, Putman Investors (US Growth equity) Fund, Global Growth fund, and a high yield bond fund.
The five portfolios are offered in the UK through Putnam Investments Limited, which is regulated by Imro. They have a minimum investment of £1,500, an initial charge of 5%, and annual charges ranging from 1.60% to 1.85%. IFA commission is up to 5% and renewal rates are negotiable.
The US firm is holding a series of IFA roadshows beginning in London on 14 June, and then moving to Guernsey on 15 June, Jersey on 16 June, and back to London again on 19 June.
The range has been moved to Dublin from the Cayman Islands as a precursor to its UK introduction.
The portfolios exactly mirror those in its US mutual fund range, and are run by the same America-based fund managers, although Putnam has London and Paris-based research teams contributing to the investment process.
Each fund is run by a management team on what the group calls a 'style-based' investment process with each fund mandated to select from a defined sub-set of stocks sharing similar characteristics such as growth, technology, or high yielding bonds.
The $342.47m Putnam Emerging Information Sciences Fund, run by Roland Gillis, has a global mandate although it is currently 95% invested in US equities.
The $97.43m Putnam Investors (US Growth Equity) fund is run by a team of three managers and invests in large cap, blue chip US growth stocks.
Putnam Europe Equity Fund is run by a team of four fund managers and has a portfolio with a broad sector exposure. The top country weightings include the UK with 27.25% and France on 19.44%.
Putnam Global Growth, is run by a team of five fund managers and holds a 48.35% weighting in the US, 13.76% in Japan and 13.26% in UK. Its technology weighting is 43.78%.
The Putman High Yield Bond Fund, which is run by a team of four, invests in higher yielding corporate bonds.
It currently has the bulk of its assets in US debt but intends to take larger positions as the UK and European corporate bonds as markets develop.
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