Active Allocation

Putnam Aggressive Growth Model (Class A)

A 100% stock/0% bond model portfolio blending active and passive exposures

Highlights

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
11/30/19
Category
Asset Allocation
Morningstar® Sec ID
F000014P86

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


Literature

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.

Performance

  • Total return (%) as of 12/31/19

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

Annualized performance 1 yr. 3 yrs. 5 yrs.
Putnam Aggressive Growth Model -- -- --
Putnam Aggressive Growth Model Index 17.54%12.20%10.08%

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 -0.78%

Allocations

Active Putnam funds 51.0%
Putnam Equity Income Fund 25.5%
Putnam Growth Opportunities Fund 25.5%
Passive ETFs 49.0%
iShares Core MSCI EAFE ETF 18.8%
Schwab US Large-Cap ETF 16.5%
SPDR Portfolio Small Cap ETF 7.5%
iShares Core MSCI Emerging Markets ETF 6.2%
Weighted average expense ratio 0.40%


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 67.5%
International developed equity 18.8%
U.S. small-cap equity 7.5%
Emerging-markets equity 6.2%

The Putnam Aggressive Growth Model Index is a benchmark administered by Putnam Management, comprising 67.5% the Russell 1000 Index, 18.75% the MSCI EAFE Index (ND), 7.5% the Russell 2000 Index, and 6.25% the MSCI Emerging Markets Index (ND). You cannot invest directly in an index. The Russell 1000 Index is an unmanaged index comprised of approximately 1,000 of the largest companies in the Russell 3000 Index as measured by their market capitalization. The Russell 2000 Index is an unmanaged index comprised of approximately 2,000 of the smallest companies in the Russell 3000 Index as measured by their market capitalization. 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.