Putnam Launches Sustainable Target-Date Retirement Funds

Putnam Investments announced the launch of the Putnam Sustainable Retirement Funds on February 10. The suite is a target-date offering for the retirement marketplace and invests in Putnam’s actively managed, ESG-focused ETFs, offering retirement savers a sustainably focused investment path.

“As the retirement marketplace continues to evolve and grow, there is tremendous appetite for meaningful product innovation that creates greater choice of offerings to help working Americans achieve their financial goals,” Robert L. Reynolds, President, and CEO of Putnam Investments said in the press release.

The funds offer a maturity fund as well as maturities for every five years from 2025 through 2065. The series employs Putnam’s glide path strategy that seeks to address the largest risks during each stage of retirement savings and is managed by the Putnam Global Asset Allocation Team which also oversees the Putnam Retirement Advantage funds.

“There is growing interest in sustainable investing within the defined contribution realm, and we are excited to deliver this innovative approach to target-date investing to the retirement savings marketplace,” said Steven P. McKay, head of global defined contribution investment only at Putnam, in the press release.

The retirement funds suite invests in Putnam’s lineup of ETFs that include sustainability and ESG-focused funds as well as core allocations:

  • The Putnam Sustainable Future ETF (PFUT) is an actively managed, semi-transparent fund that seeks to invest in companies whose services and products are essential to solving sustainability challenges.
  • The Putnam Sustainable Leaders ETF (PLDR) is an actively managed, semi-transparent fund that seeks to invest in companies that are leaders in sustainability issues within their industries and whose sustainability focus is an integral part of their business.
  • The Putnam ESG Core Bond ETF (PCRB) is an actively managed fund that invests across the sectors of the U.S. bond market, which includes corporate bonds, mortgage-backed securities, and other government bonds and utilizes an integrated ESG approach.
  • The Putnam ESG High Yield ETF (PHYD) is an actively managed fund that seeks high income by investing in lower-rated, high-yield corporate bonds while utilizing an integrated ESG approach.
  • The Putnam Ultra Short ETF (PULT) is an actively managed fund that invests in a diversity of short-duration, investment-grade fixed income and money market securities that might yield higher income while utilizing an integrated ESG approach.
  • The Putnam PanAgora ESG Emerging Markets Equity ETF (PPEM) is an actively managed fund sub-advised by PanAgora that uses a quantitative, risk-aware strategy to invest in emerging market companies that offer long-term investment opportunities as well as strong ESG metrics.
  • The Putnam PanAgora ESG International Equity ETF (PPIE) is an actively managed fund sub-advised by PanAgora that uses a risk-aware quantitative strategy to invest in companies within developed markets that offer both long-term investment opportunities and strong ESG metrics.

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