Global Low Beta Equity

The strategy seeks a total return comparable to MSCI World Index, but with lower volatility, over a full market cycle.*

Product highlights

Inception date

October 31, 2012

Benchmark

MSCI World Index (ND)
MSCI World Minimum Volatility Index (ND)

Total strategy assets

$159.0M

(as of September 2019)

Investment vehicles

  • Focus on pursuing strong risk-adjusted performance by  implementing an active sector-neutral, region-neutral, and size-controlled process for low-beta stock selection
  • A continuation of the Global Asset Allocation team's pursuit of superior risk-adjusted returns
  • A veteran management team that has been managing equity portfolios since 2005
  • A composite track record starting in 2012

*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 disclosures 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.

Investment team

Performance

Annualized composite performance (%) as of September 30, 2019

  MTD QTD YTD 1 Year 3 Years 5 Years Since Inception
Global Low Beta Equity (gross) 1.83% 2.05% 16.21% 1.80% 9.66% 8.51% 10.82%
Global Low Beta Equity (net) 1.81% 1.99% 15.99% 1.54% 9.32% 8.09% 10.35%
MSCI World Index (ND) 2.13% 0.53% 17.61% 1.83% 10.21% 7.18% 9.90%
MSCI World Minimum Volatility Index (ND) 1.00% 3.19% 19.55% 10.85% 10.16% 10.21% 10.81%

Calendar Year Composite Performance (%) as of September 30, 2019

  2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
Global Low Beta Equity (gross) -7.05% 20.15% 8.59% 3.30% 10.14% 24.82% -- -- -- --
Global Low Beta Equity (net) -7.34% 19.73% 8.17% 2.73% 9.54% 24.13% -- -- -- --
MSCI World Index (ND) -8.71% 22.40% 7.51% -0.87% 4.94% 26.68% -- -- -- --
MSCI World Minimum Volatility Index (ND) -2.03% 17.32% 7.47% 5.16% 11.37% 18.61% -- -- -- --

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 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.

Literature

Important disclosures

 

The Putnam Investments Global Low Beta Equity Composite (the "Composite") utilizes a low volatility approach to global large-cap investing. The strategy seeks a total return in excess of the global equity market, but with lower volatility, over a market cycle (generally at least three years or more). The Composite does not use options to implement its strategy.

The MSCI World Index is a market capitalization weighted index composed of companies representative of the market structure of 23 developed market countries in North America, Europe, and the Asia/Pacific Region. The MSCI World Index is calculated with net dividends reinvested. The results of the MSCI World Index for all periods shown are net of foreign withholding taxes, assuming the tax rate for a Luxembourg entity under the applicable tax treaties is in effect during that period.

The Composite benchmark is the MSCI World Index. The Composite includes all fully discretionary accounts, including carve-out assets, managed in this style by Putnam Investm en ts. The Composite crea tion date was November 11, 2015. Carve-outs included in the Composite are managed separately wi th 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 crea te a track record for a narrower man date from a multiple-strategy portfolio man aged to a broader mandate.

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-fees 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.