Putnam Investments, citing increased investor demand for fee efficiency and risk-adjusted performance, is adding model-based separately managed accounts and multi-asset model portfolios to its line of products.

The asset management company has added seven SMAs and plans to launch six multi-asset model portfolios by the end of the year, the company said in a press release today.

"The demand for strategies in the model delivery structure is rapidly increasing as advisors seek products that are fee-efficient and tailored to meet their clients’ individual preferences,” Putnam President and CEO Robert L. Reynolds said in a prepared statement. “We think it is important to offer our investment strategies through a host of different investment vehicles to allow maximum flexibility for advisors as they develop individualized portfolio solutions that help generate their clients’ desired investment results.”

The new model SMAs are U.S. Large Cap Value Equity, U.S. Large Cap Growth Equity, U.S. Multi-Cap Core Equity, Sustainable Leaders, Sustainable Future, U.S. Small Cap Growth Equity and International Durable Equity (ADR only), the company said.

The SMAs are designed to meet a desire among investors for "strategies in the equity space that are generally cost-effective, offer increased tax efficiency and provide opportunities for customization, which enables investors that work with their advisors to screen for certain product areas (e.g., oil, tobacco) that they deem in conflict with their personal values," Putnam said in a press release.

Investors are also looking more closely at fees, Reynolds said.

“Most importantly, investors are looking for solid, long-term, risk-adjusted performance that can produce positive returns net of fees,” he said.

The model portfolios will use a systematic investing approach and be composed of Putnam’s active mutual funds and third-party exchange-traded funds (ETFs), the company said.

The portfolio lineup will consist of income (targeted 0% equity); balanced income: (targeted 20% equity); conservative growth: (targeted 40% equity); balanced growth: (targeted 60% equity); growth (targeted 80% equity); and aggressive growth (targeted 100% equity).

The portfolios will be managed by Putnam’s global asset allocation team, which manages more than $15 billion, the company said. Active investments will represent about half of each portfolio, the company said.

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