Putnam Investments Launches Two Spectrum Funds That Invest in Leveraged Company Securities
19 May 2009 - 1:09AM
Business Wire
Putnam Investments today announced that it has launched two new
funds that collectively invest across the full spectrum of
securities of leveraged companies, including stocks, bonds, bank
loans, and convertible securities. Putnam Capital Spectrum Fund and
Putnam Equity Spectrum Fund will both be managed by veteran
portfolio manager David Glancy, who joined Putnam earlier this year
after two decades of specializing in industries of leveraged
companies at Andover Capital and Fidelity Investments.
- Putnam Capital Spectrum Fund
(Class A: PVSAX) pursues total return by investing in the
securities of leveraged companies. Management aims to select the
most attractive securities anywhere within a company�s capital
structure, including stocks, bonds, bank loans, and
convertibles.
- Putnam Equity Spectrum Fund
(Class A: PYSAX) seeks capital appreciation through investments in
the equity securities of leveraged companies. Using deep analytical
research and investment experience in this area, management seeks
to uncover mispriced stocks of leveraged companies, creating the
potential for these stocks to outperform broad market
averages.
�Today, many leveraged companies offer attractive investment
opportunities, and few are better at uncovering and capitalizing on
these opportunities than David Glancy,� said Putnam Investments
President and Chief Executive Officer Robert L. Reynolds. �For more
than two decades, David has been at the forefront of assessing
undervalued, leveraged companies. His career spans the history of
leveraged investing, from the leveraged-buyout wave of the 1980s
and the private equity wave of the 2000s to the credit crisis of
today, and he has amassed an outstanding performance record along
the way.�
The leveraged company funds� investment processes rely on
fundamental research by analyzing corporate balance sheets and
capital structures to identify the securities with the greatest
total return potential. Types of leveraged companies the funds will
seek include capital-intensive businesses; early-stage growth
companies (rising stars); former investment-grade companies (fallen
angels); and companies in special situations, such as
restructurings, bankruptcies, or leveraged buyouts. For investors
willing to assume the volatility and other risks of these
investments, investing in leveraged companies can provide a level
of diversification when added to a traditional equity or
fixed-income portfolio.
Glancy has access to all of Putnam�s expanded research
capabilities, including the High Yield Credit team and the Small-
and Mid-Cap Equities group, which combined, cover most of the
leveraged company universe.
Although Putnam Capital Spectrum Fund and Putnam Equity Spectrum
Fund invest in companies that may be highly leveraged, they do not
themselves utilize leverage as a primary investment strategy. Both
funds also have an innovative management fee structure in which the
fee adjusts based on fund performance. This feature aligns the
interests of the fund manager with those of shareholders, similar
to the approach taken by the Putnam Absolute Return Funds. Launched
in January, the Putnam Absolute Return Funds, the industry�s first
suite of target absolute return mutual funds.
�There are a lot more opportunities among leveraged companies
today than in the past; debt burdens are higher and earnings
recovery is less certain than in the previous two recessions,� said
Glancy. �As a result of the volatility and market dislocation we
see today, leveraged companies can provide exceptional upside
potential for investments across their capital structures, and we
look forward to identifying and exploiting those opportunities to
generate strong returns for our shareholders.�
Glancy joined Putnam Investments in 2009 from Andover Capital,
where he was a founding partner and portfolio manager. Previously,
he generated notable performance during his 13-year tenure at
Fidelity Investments, where he was the only portfolio manager to
manage both equity and debt funds. Among the funds he managed were
the Fidelity Capital & Income Fund, the Fidelity Advisor
Leveraged Company Stock Fund, and the Fidelity Leveraged Company
Stock Fund, which he managed from its inception in 2000 until
leaving the firm near the end of 2003. For the one-year period
ending June 30, 2003, Mr. Glancy managed the number-one fund in
Lipper�s Capital Appreciation category.
NOTE: For more information on Putnam Spectrum Funds, go to
http://www.putnam.com/individual/spectrum_funds/.
About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money
management firm with over 70 years of investment experience. At the
end of April 2009, Putnam had $99 billion in assets under
management. Putnam has offices in Boston, London, Tokyo, Singapore,
and Sydney. For more information, go to www.putnam.com.
For any Putnam fund, request a prospectus from your financial
representative or by calling Putnam at 1-800-225-1581. The
prospectus includes investment objectives, risks, fees, expenses,
and other information that you should read and consider carefully
before investing.
Putnam mutual funds are distributed by Putnam Retail
Management.
Putnam Absolute Return Funds are not intended to outperform
stocks and bonds during strong market rallies.
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