Boston-based Putnam Investments announced on Wednesday that it will launch three liquid alternative strategies it has offered to institutional investors in a mutual fund format.
The funds, expected to launch in the third quarter of this year, will offer advisors and retail investors access to three strategies that can be used as diversifiers within their portfolios, including a risk parity strategy seeking total return, a market neutral fund seeking uncorrelated alpha via long/short equity strategies and a managed futures fund seeking absolute return.
“This is what I would term an extension of what we’ve been doing over the past nine years, which is bringing to the marketplace products that are more non-traditionally constructed and non-benchmark oriented,” says Scott Sipple, Putnam’s head of global investment strategies.
The funds will be sub-advised by Boston-based PanAgora Asset Management, a Putnam affiliate, which has managed these strategies for institutional clients for several years. All of the strategies’ management will be kept in-house.
According to Sipple, Putnam has heard demand from wirehouses, regional firms, RIAs and financial planners for more non-correlated investment solutions.
“This was an opportunity to seize on that market, and to harness PanAgora’s capabilities,” says Sipple.