This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New Putnam Dynamic Risk Allocation Fund Seeks To Pursue Total Return Consistency Through Varying Market Conditions

Putnam Investments today announced that it has launched the Putnam Dynamic Risk Allocation Fund (Class A: PDREX), designed to actively balance the sources of portfolio risk across multiple asset classes, with flexibility to respond dynamically to changing economic conditions and market valuations, in pursuit of consistent levels of total return. The Fund will make use of a risk parity approach that Putnam has utilized extensively for institutional clients.

The Putnam Dynamic Risk Allocation Fund is unlike a traditional balanced fund where the majority of the risk comes from the equity allocation. The new Putnam fund diversifies across a wide range of global markets reducing reliance on equities, to pursue a total return that is more consistent over different market conditions. By comparison, in a traditional asset allocation portfolio or balanced fund (60% equity/40% fixed income as defined by Lipper), the equity portion contributes nearly 90% of the portfolio risk.

In addition to conducting a rigorous risk analysis at the individual securities level, the new Putnam Fund will have an intense ‘risk lens’ at the asset allocation level. The Fund will be attempting to create more consistent performance over time by boosting exposure to less volatile and/or less correlated asset classes and diversifying its exposure to risk.

“Greater risk diversification across less volatile assets is essential for preservation and long-term growth of investment capital – and pursuing these objectives through a focused ‘risk’ lens can be a critical success factor,” said Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments.

Another major distinguishing characteristic of the Putnam Dynamic Risk Allocation Fund is that the portfolio is not static: utilizing the expertise of the Putnam Global Asset Allocation team, the portfolio weightings will be dynamically adjusted in response to changing market conditions, providing the potential to further enhance performance and manage risk.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs