Active Allocation

Putnam Growth Model (Class A)

An 80% stock/20% bond model portfolio blending active and passive exposures


Strategy and process

  • Targeted diversification Putnam’s model portfolios offer choices that are diversified for investors no matter where they are on the path to their financial goals.
  • Competitive cost structure The model portfolios combine actively managed Putnam funds and passive ETFs for cost-efficient market exposures, with no overlay fees.
  • Professional management The Investment Committee brings together veteran members of Putnam’s long-tenured Global Asset Allocation team (GAA) and Portfolio Solutions Group (PSG).

Key facts

Inception date
Asset Allocation
Morningstar® Sec ID

Management team

Chief Investment Officer, Global Asset Allocation
Co-Head of Global Asset Allocation
Co-Head of Global Asset Allocation
Investment Director, Global Asset Allocation
Senior Investment Director, Global Asset Allocation
Senior Investment Director, Global Asset Allocation


Fund documents

Fact sheet (PDF)
Brochure (PDF)

Market volatility returns to "old" normal
Our outlook for stock market volatility sees the levels reached in 2018 continuing, in part because these levels were close to the long-term norm.
The persistency of multi-asset fund alpha
Quantitative analysis indicates that alpha generated by multi-asset managers may have persistency, both positive and negative, up to a year.
Take the measure of currency risk in portfolios
With the dollar moving higher since 2014, it's worth considering the currency risk in international portfolios.


  • Total return (%) as of 12/31/19

Annualized Total return (%) as of 12/31/19

Annualized performance 1 yr. 3 yrs. 5 yrs.
Putnam Growth Model -- -- --
Putnam Growth Model Index 24.73%11.79%--

Past performance is not a guarantee of future results. An investment in this strategy can lose value. Returns are stated in U.S. dollars and include the reinvestment of dividends and interest. Returns less than one year are not annualized.

Net-of-fees returns do not reflect the deduction of a management fee but are net of all fees and expenses applicable to the underlying funds.


Performance snapshot

1 mt. as of 01/31/20 -0.36%


Active Putnam funds 51.0%
Putnam Equity Income Fund 20.9%
Putnam Growth Opportunities Fund 20.9%
Putnam Income Fund 9.2%
Passive ETFs 49.0%
iShares Core MSCI EAFE ETF 15.0%
Schwab US Large-Cap ETF 12.2%
SPDR Portfolio Small Cap ETF 6.0%
iShares Core US Aggregate Bond ETF 5.8%
Xtrackers USd High Yield Corporate Bond ETF 5.0%
iShares Core MSCI Emerging Markets ETF 5.0%
Weighted average expense ratio 0.38%

Target allocations can vary +/-10%. The model portfolio may differ from its target allocation due to market conditions and other factors. Actual client accounts may differ from the model allocation and may hold cash. Asset allocation strategies do not assure a profit and do not protect against loss.

Portfolio composition as of 12/31/19

U.S. large-cap equity 54.0%
International developed equity 15.0%
U.S. core fixed income 15.0%
U.S. small-cap equity 6.0%
Emerging-markets equity 5.0%
U.S. high-yeld fixed income 5.0%

The Putnam Growth Model Index is a benchmark administered by Putnam Management, comprising 60% the Russell 3000 Index, 15% the MSCI EAFE Index (ND), 15% the Bloomberg Barclays U.S. Aggregate Bond Index, 5% the Bloomberg Barclays U.S. Corporate High Yield Index, and 5% the MSCI Emerging Markets Index (ND). You cannot invest directly in an index. The Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies. The MSCI EAFE Index is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australasia. The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities. The Bloomberg Barclays U.S. Corporate High Yield Index measures the USD-denominated, high yield, fixed-rate corporate bond market. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

Putnam Multi-Asset Model Portfolios invest in non-Putnam exchange-traded funds and exclusively in Putnam mutual funds. Putnam does not currently charge overlay fees for portfolio management of the Putnam Multi-Asset Model Portfolios; however, it earns fees from the Putnam mutual funds in which the Portfolios invest. Prior to making any investment or financial decisions, any recipients of this material should evaluate the overall fees and charges of the firm as well as the services provided.

Putnam Multi-Asset Model Portfolios are provided for illustrative and educational purposes only, do not constitute personalized investment advice or an investment recommendation from Putnam and are intended for use only by financial professionals, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for its own clients. The implementation of, or reliance on, a model portfolio strategy is left to the discretion of the financial professional. Such financial professionals are responsible for making their own independent judgment as to how to use Putnam's Multi-Asset Model Portfolios. Putnam does not have investment discretion over or place trade orders for any portfolios or accounts derived from the Putnam Multi-Asset Model Portfolios. There is no guarantee that any investment strategy will be successful or achieve any particular level of results.

Investing involves risk, including the loss of principal. Risks apply to those underlying funds in the allocation of the models there is no guarantee the funds' investment objectives will be achieved. Our allocation of investments among the underlying funds may hurt performance. Therefore, the model portfolio's performance is subject to the risks that may affect the performance of the underlying funds. In addition, investors will bear the fees and expenses of the underlying funds included in the models. For more information about the risks and expenses associated with each underlying fund, go to its detailed fund information page or read the prospectus.