Active Insights

Portfolio Solutions with Seamus Young, CFA

December 15, 2021 Putnam Investments
Active Insights
Portfolio Solutions with Seamus Young, CFA
Show Notes Transcript

In this episode, Chris speaks with Seamus Young, CFA, a Senior Investment Director in the Global Investment Strategies group, specializing in Global Asset Allocation products. He is a portfolio manager of Putnam Multi-Asset Model Portfolios.  In addition, Seamus is responsible for gathering intelligence on trends in the global marketplace; communicating investment performance, positioning, and strategy as a member of the Portfolio Solutions group.

During the conversation, they touch on many topics, including: 

  • The Portfolio Solutions Group
  • How financial advisors can utilize the portfolio solutions group to improve outcomes and optimize portfolio efficiency
  • Multi-Asset Portfolios
  • Portfolio construction
  • How to successfully balance risk and return
  • The key factors that influence overall portfolio performance
  • The crucial data points when analyzing target date and retirement savings plans

 

This material is for informational and educational purposes only. It is not a recommendation of any specific investment product, strategy, or decision, and is not intended to suggest taking or refraining from any course of action. It is not intended to address the needs, circumstances, and objectives of any specific investor. This information is not meant as tax or legal advice. Investors should consult a professional advisor before making investment and financial decisions and for more information on tax rules and other laws, which are complex and subject to change.

 

Investing involves risk, including the loss of principal. Risks apply to those underlying funds in the allocation of the models, there is no guarantee the funds’ investment objectives will be achieved. Carefully consider the funds within the model portfolios’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the funds’ prospectuses, which may be obtained by visiting the respective fund information page or fund family website. Our allocation of investments among the underlying funds may hurt performance. Therefore, the model portfolio’s performance is subject to the risks that may affect the performance of the underlying funds. In addition, investors will bear the fees and expenses of the underlying funds included in the models. 

 To view additional information, please visit the Putnam Multi-Asset Model Portfolios page found on putnam.com. 

 Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.

 Putnam Retail Management                                                                                       AD1959875 12/21

You should consider the fund’s investment objectives, risks, charges, and expenses carefully before you invest. This and other important information is contained in the fund’s prospectus available on Putnam.com or by calling 1-833-228-5577. Please read carefully before you invest.

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Putnam Retail Management AD2557752 11/22

Patrick Laffin: Welcome to Putnam Investments Active Insights, a podcast series hosted by Chris Galipeau. Chris is the Senior Market Strategist in the Capital Market Strategies Group at Putnam Investments. Each episode, Chris has an in-depth conversation with a different Putnam portfolio manager to share timely insights on the markets and global economy.

 

Chris Galipeau: Hello everybody, thanks for tuning in. This is Chris Galipeau, Senior Market Strategist at Putnam and today, we are talking with Seamus Young about portfolio construction. Seamus runs the Portfolio Solutions Group for us at Putnam and his team conducts deep diagnostic work on investors’ portfolios specifically looking at the drivers of risk and return within a portfolio. We will touch on the process that Seamus uses and I think probably most importantly, the value proposition this type of work can bring to any financial advisor. Seamus, in terms of his responsibilities at the firm, is a senior investment director in the Global Investment Strategies Group specializing in global asset allocation products, say that five times fast. Seamus is the portfolio manager of the Putnam Multi-Asset Model Portfolios and Seamus is also responsible for gathering intelligence on trends on the global marketplace, communicating investment performance, positioning and strategy, performing competitive analysis which is really what we’re going to talk about today and developing and launching new products. Seamus has been in the investment industry since he joined Putnam in 2009. Seamus holds the Series 7 and 63 licenses and Seamus is a member of the CFA Society of Boston, he is a chartered financial analyst and a graduate of Princeton. Seamus, welcome to the podcast.

 

Seamus Young: Thanks, Chris, great to be here, great to see you again, as always.

 

Chris Galipeau: Yes, I know. It’s great to be in here together. One of the things that we like to do is talk to our guest about their journeys to here, so your journey from Princeton, present day 2021 at Putnam and we just love to hear about how you got here and what your interest is and maybe portfolio construction and risk and decomposing that, Multi-Asset Portfolios in general.

 

Seamus Young: Yeah, absolutely. So, obviously I had a great four years at Princeton. Also was fortunate enough to be a member of the hockey team there and hockey was always a passion of mine so post Princeton, was fortunate enough to have the opportunity to play minor league hockey for a couple years. I quickly realize in full candidly that making it to the NHL was not going to be in the cards for me and certainly, very comfortable with that. But financial markets, stocks—that was always something that was really of interest to me. You get a lot a lot of exposure in that at school. So, after a couple of years of playing, I started to look for kind of the next chapter in my life. I grew up in Boston, so well familiar with the history of the asset management industry in Boston specifically with the likes of Fidelity, Columbia at the time, Eaton Vance and Putnam specifically. And so, through a couple of different contacts, was fortunate enough to get an opportunity at a pretty unique time in the industry.

 

Chris Galipeau: 2009, bud.

 

Seamus Young: Exactly! So, and it was kind of trial by fire in terms of your kind of indoctrination into the financial markets. I started actually in Putnam’s sales desk up in Andover on our internal sales desk working with our retail distribution teams. And so yeah, it was a really interesting time obviously and over the few years, was really looking to make a move where I thought my kind of true passion lied around multi-asset portfolios, multi-asset investing but also still maintaining that ability to interact with the end client as well which I’ve grown to really enjoy that you get a lot obviously in the distribution role.

 

Chris Galipeau: Yeah, it’s funny because I will tell—I’ll often talk to the folks that are on our internal desk now who are probably recent college graduates and are probably they are recent college graduates and tell them when I started my career in 1990, that’s exactly the way I started it, the way you started it and how good of a teaching ground and breeding ground that is, right. Great exposure to all asset classes and all products and then I found my way to equities and you kind of found your way into multi-asset work and you were the much stronger quantitative background than I have, me, much more fundamental but I think that is a good place to start and that is, I think, a reasonably common journey, a really good way to start it. So...

 

Seamus Young: Yeah, I know. I think it’s the skill sets that you learn and starting there, right, I think can last you a lifetime both in this industry but are very applicable to a lot of things that you could do in your professional career, personal life as well.

 

Chris Galipeau: Totally agree. So, you’ve shift from that, you’ve become a part of the Global Asset Allocation Group here, been a part of that for 13 years roughly, right? And in the process here, you started and built out the Portfolio Solutions Group, that’s what we call it today and so let’s start there, so why don’t we talk about how you started the group, how you built out the team and just the origins of this because I think it’s very important to understand where you started and where you have it now.

 

Seamus Young: Yeah, absolutely. So, I think you talk about the Portfolio Solutions Group, kind of the official name and kind of framework we had around it. It’s probably been around now since 2015, so six, almost seven years now. However, it actually has its origins several years before then and it was really kind of based off of some of the work that I was doing when I first joined the group. Spent a lot of my time as kind of a more junior person on the team doing competitive due diligence in the multi-asset space with a particular focus on whether it was target date funds, target risk but also a lot of work in the liquid alternatives space as well. And if you think about a lot of those strategies, you think about kind of typical due diligence, you’re looking obviously at just performance clearly. You’re trying to get a better sense of the investment teams, their process, philosophy, any notable changes to that, but it’s also when you’re dealing with multi-asset strategies that have a lot of different asset classes, the liquid alternative space where you have kind of esoteric kind of strategy, synthetic exposure using derivatives. Looking at just the holdings for example, compose certain challenges that they just don’t do when you’re looking at a long-only equity fund. So, to get a better handle on kind of what’s going on in a lot of those strategies, we relied on a lot of the quantitative techniques that the investment teams will use when they’re doing their own kind of investment analysis around different regression analysis, returns-based analysis to get a better feel for how these different strategies actually behave and get a better insight in terms of performance expectations going forward. So, we had never really kind of formalized that in our group until I joined and spent a lot of time kind of building that out, it’s still a big part of what we do today. But then I think we quickly realized that there were broader applications for this in working with clients and prospects particularly on the institutional side. Various institutions that we had good relationships with were interested in learning about how we could look at their overall portfolio and better assess the risks that were going on and how those portfolios would behave and certainly the case with financial advisors and looking at their own book of business and the portfolios they run on behalf of their clients.

 

Chris Galipeau: Yeah. I tell the financial advisors that I meet with that as a longtime equity portfolio manager myself back 10 or 15 years ago, we didn’t really have the quantitative toolkit or the systems or the software maybe to take a deep look at what was driving the returns in the portfolio or what risks we had in the portfolio that we might not have known about and I think back to the ‘90s and the early 2000s where as a growth manager, I would want heavy exposure to factors like earnings momentum, earnings estimate revision, price momentum and I think it would have all those and then we started to get these sort of systems and then I quickly realized that I had unintended betas to different factors that I wasn’t even aware of and so of course, you’re doing all that and I think that’s a good segue to talk about the type of analysis that your team does and maybe from a high-level, right, because it can be very sophisticated. So, the type of analysis that you do and most importantly, how can clients benefit from it because I can talk about it all day long, how important it is, but we really want to hear from you and what you think about it. 

 

Seamus Young: Yeah, absolutely. I think there are a lot of different things that we can look at and different scenarios and situations, everything can be somewhat unique; however, I would certainly say kind of our core kind of situations that we come across is working with advisors and looking specifically at their multi-asset portfolios they’re running on behalf of clients. Obviously, your typical kind of target risk, usually somewhere between—call it 40% to 60%-70% equities depending on the client risk tolerance and we will basically work really closely with those advisors. They’ll give us a copy of their models so we understand what’s exactly in their portfolios. So, that could be mutual funds, ETFs, some structured kind of notes or products, unit investment trust, separate accounts, you name it. And we can take that and aggregate that up to an overall portfolio and then start to break that portfolio out in terms of looking at what are the kind of key, we call it, risk factors that really influence the overall portfolio. You talk a little bit about the sophistication and there’s certainly some sophisticated elements to it and you need to have some sort of understanding of quantitative analysis and techniques. But I also think there’s great value in trying to not over-complicate it and keeping it simple as well.

 

Chris Galipeau: Sure, yeah. That’s a good point.

 

Seamus Young: So, what we try to do is really focusing on kind of what are the five to seven key factors that really influence the overall portfolio and we try to limit it to things are fairly observable out in the marketplace. So, things like just—what is your exposure to the overall equity market? S&P 500 would be a simple example of that. What is your exposure to duration? Kind of 7- to 10-year treasuries, your exposure to credit spreads, currency. Within equities, we’ll get a little bit granular around looking at what is your exposure to market cap, looking at kind of the performance of small cap versus large cap, value versus growth, your regional exposures, right, whether that’s international, developed, or EM and what we’re able to do is take into account all the different positions that make up an advisor’s portfolio and take into account their exposures to all these different factors and come up with an overall portfolio estimate and then from there, it gives the advisor I think a really good understanding of what they can expect in terms of the portfolio and how it should behave and whether it’s behaving differently than you should expect.

 

Chris Galipeau: Absolutely, and I think the value proposition in that is really, really strong, right, because again, speaking from my own experience, I don’t speak for anybody else but for myself, a lot of times I thought I was pointed to one direction and would have shocks, right, shocks to the system, market shocks, whatnot and the portfolio would not behave the way I thought it would behave. So, that’s great info. Alright, pivot from that and maybe we can talk about—you do a ton of these in the course of any given week, month or quarter—what would you say the main things that clients take away from the work? And I guess we should probably say that the process goes something like this where we’re interacting with the financial advisor, they send the model portfolio that they want to be analyzed to you and you’re team, you actually have a conversation with the FA upfront and listen to them and to what they’re trying to accomplish, right, and there’s kind of starting at point A, you do the analysis and you get back on the phone with them and you walk them through the analysis and your observations but since you do it more than anybody, what’s the most important thing the clients can take away from this?

 

Seamus Young: Yeah, I think as we kind of go through each situation with each advisor, I think generally speaking, you could kind of bucket each advisor into falling into one of three categories in terms of what their experience is or what the analysis shows them and their reaction to it. I think for one category, this is analysis that maybe they have a higher degree of sophistication, they have access to some other tools. So, they got a pretty good handle on kind of what’s going on in their portfolio and they’re just using us as kind of a third party, kind of check on their own portfolio, we may look at it a little bit differently but generally speaking, the results that we produce and kind of walkthrough them are very consistent and expected for those advisors but they still find a lot of value in it and getting that extra set of eyes. I think the next group is probably by far the largest kind of cohort of advisors we work with in that the advisors when we kind of walk through the analysis, it starts to show and shed light on things that they had some intuition that were kind of going on with the portfolio. So, it’s not totally unreasonable to them to see the results; however, in their own mind, they had really no way of actually doing the analysis and quantifying kind of what was going on. For example, being overweight, having a growth tilt in their overall portfolio or having more of a domestic bias in their equity tilt or having a little bit more credit sensitivity in their fixed income exposures. So, that’s by and far the largest.

 

Chris Galipeau: That’s certainly what I see the most of, right. When they think, “Can you check this because I’m thinking about A and B and I’m not sure how to think about it, how to measure it. Go ahead with the third cohort.

 

Seamus Young: Yeah, the third cohort was definitely a smaller subset as well and it’s those that we reveal something that they had no idea what was going on. I would say when that situation typically arises, it’s less about the overall portfolio and it’s usually a conversation about a particular fund and a fund kind of having some kind of major kind of drift away from kind of what the advisor expected or at least maybe even with what that manager was saying or kind of...

 

Chris Galipeau: That kind of ties back to the origin of the group, right, which is like as you and I both know, we can look at the prospectus and the performance and that’s one part of it. How they generated it is could be, may be a whole another matter, right? 

 

Seamus Young: Absolutely, yup. And then we do—as it relates to the individual managers, again, our focus for the most part is definitely on how everything interacts and fits into the overall portfolio but we do certainly spend some time talking about the individual managers that make up the portfolio and looking at things like what are their exposures to these different risk factors and we can do some kind of high-level return attribution off of that and kind of stress testing off of that as well. For example, what would a 20% equity drawdown do to your equity managers based on some of their exposures, movements and rates. Obviously, very topical today or changes in inflation expectations. But again, it’s all through that lens of how do they fit together and impact the overall portfolio and we can have some pretty interesting conversations around that with a lot of advisors.

 

Chris Galipeau: Yeah, I think one of the things that and when I see this in – if you and I are working on, well if I have sent an FA your way here I think for some input, we certainly see all of that. And the second cohort there I think is probably the most common right? Where we see an FA team may have concerns about something but the stress testing part of it and the scenario analysis that you run through with the FA can sometimes be eye opening. 

 

Seamus Young: Yep. 

 

Chris Galipeau: Let’s pivot to this. So, let’s reverse roles right and let’s say that you’re the financial advisor here based in Boston and you and I are running our practice and we have access to somebody like your--team like yours. If you we’re to give, the financial advisors listening, some thoughts or some advice as to how to use it, how would you use it if you were an FA?

 

Seamus Young: Yes. So, I mean from my perspective I think there’s a lot of value in making this a process that is not just a one and done. It’s something that is a continuous process over the course of a year. So, I’m not saying you need to necessarily go through this every single month or even necessarily every single quarter but certainly once, maybe twice a year making sure you’re looking at your portfolios, working with a team like ours so you get a good handle of making sure nothing is changed materially in the overall portfolio. Again, I go back to that kind of first cohort of advisors. Even if it’s something that as a team that has access to a lot of these types of tools that they’re doing on their own on a continuous basis, getting that extra set of eyes, I think, there are certainly a lot of value in that in terms of getting someone that may look at something in a little bit different way in terms of different exposures or think about risks a little bit differently. And then the other pieces, again, using it as a check on your underlying stable of managers as well, we kind of talked about that a little bit, a few minutes ago. But, making sure the managers that you selected to be included in your portfolio are fulfilling the role that you intended them to fill and that could be, you’re going to have some managers that are in the portfolio more for the return generating prospects. They’re kind of your growth amplifiers per se and then there’s others that you’re going to be using more for diversification benefit and making sure they’re actually filling that need and keeping close tabs on that on a continuous basis is really important.

 

Chris Galipeau: Those, I agree with that. What I would say too and the one thing I tell the financial advisors that if I’m speaking with them about the value add from the work that you do is to me there’s two things: number one, it brings objectivity to it right and you just went through that, making sure that the managers that are in the roster, they’re in the stable, they’re actually performing the way you want them to perform, you can take a much deeper look at that and give people some thoughts around that. But that, the objectivity part is huge. What we have seen in the last two years and we see it every day in conversations, present day, is the concern around fixed income, right? and then how should we think about if you’re running a 60/40 model which is probably the lion share of FA models for clients that are retired, 70 plus. How do we think about that 40% and when I’m having conversations at a much higher level, a strategist level about that, I will often refer them to come and talk to you and gather some more information on the portfolio and/or some generation because I think the risk there is thinking that from the financial advisor standpoint, if we’re going to augment say a core bond portfolio with other mandates that are obviously outside of the core for different reasons, as you pointed out, could be diversification, could be yield enhancement, could be a couple other things depending on what they want, to not guess because–and they’re really two parts to that. Okay, if you thought about a few different types of mandates to add into the portfolio, that’s one part of it and then the other part of it is how do we size that, how do we size that to keep the portfolio within the standard deviation guidelines or guide rules that we have set up and help us accomplish the goal that we’re trying to get to and I think all of that is super important and all of that is what your group allows. And I would say, tell me if you think differently, but I would say the financial advisors that developed a rapport with you and maybe screen the portfolio, maybe not quarterly but a couple times a year or as things are changing. The insight that they gain, the confidence that they gain from really scrubbing the portfolio down is to say, “Okay, I was at point A, I wanted to get to point B. Now I think we have a much greater chance of getting to point B and we’ve taken into consideration all the different shocks that could happen to the portfolio. Now I feel like I’m much better prepared to pull the trigger and go.” And I see a lot of that from my own experience where if I was armed with this information as an FA, I would feel much, much better and fixed income is a real challenge, right?

 

Seamus Young: Yeah, absolutely. I mean there’s a couple things to kind of unpack in terms of what you just said and I think giving the FA the confidence, I think it also helps with those communications with their end client, right? So, they have the confidence, they know you know, here’s exactly how our portfolio’s positioned, right? Here are our exposures, here’s what we think how we would expect your portfolio to behave in these different scenarios, and being able to communicate that with conviction to your client and be able to kind of check in if and when those types of scenarios happen, I think is immensely valuable for that relationship with the advisor and the end client. So, that’s one thing. You talked about fixed income, obviously, that is certainly a hot topic in all of our conversations, concerns around fixed income, what to do there given the rate environment, expectations going forward. So, we certainly have a lot of conversations there. The other thing too that I think we touched on a little bit but what we see a lot in a lot portfolios today is a lot of advisor’s portfolios, historically for the last several years, have been overweight within US equity’s growth. Whether that’s through just kind of sector kind of tilt, but generally, that’s been what we have seen and that’s certainly been a good place to be over the last several years, obviously. But the other thing that we’re seeing in the marketplace which has been talked a lot about more recently is the interest rate sensitivity of some of those sectors, right? A lot advisors many times, they don’t necessarily think about that and it’s not always a huge issue but they are certainly seeing it today given the rate environment where the growth tilt is actually contributing to more interest rate sensitivity in the portfolio when you aggregate everything up and a lot of advisors would just, ‘Hey I’m looking at my fixed income holdings, the duration of my fixed income holdings is a year or a year and a half short of say the aggregate bond index. However, when you combine that with what they have elsewhere in the portfolio, in many cases they’re basically at a benchmark, a very similar interest rate sensitivity as the benchmark and some cases even more. So, helping them understand that and kind of think through those things is really important.

 

Chris Galipeau: Yeah. That’s a great point. Alright, you have taken this Portfolios Solutions approach and built a team and you’ve also begun to apply this to target date funds which same concept we were talking before we got on air here about how many different glide paths there are and target date funds. So, maybe we can finish here just talking about the use of the PSG tool and how that applies to evaluating, decomposing target date.

 

Seamus Young: Yeah, absolutely. Target date strategies are a core part of Putnam’s business and not surprisingly, if you look at most investors out there and have access to a retirement savings plan through a 401(k) vehicle, target dates make up a big portion of the assets. And if you think about it, target date is a multi-asset fund if you look at each individual vintage, right? So going back within our group, we’ve been doing different type of analysis for six, seven years on target date strategies for those advisors that do a lot of retirement plan business. We’ve kind of ramped it up over the last year or so with what we call Putnam’s TargetDateVisualizer which is a free tool available on our website where really what we’re trying to do is first and foremost, provide a fairly simple yet informative framework for advisors or plan sponsors, consultants, to really kind of whittle down the entire universe of target-date mangers. When you combine mutual funds or collective investment trust, they’re well north of 120 or so kind of unique glide paths out there, unique target date series. How do you start to figure out what is the right one? Our process the way we think about it, the first step is really trying to figure out which target date strategies best align with your philosophical view of what a target date manager should be trying to do at various parts of the glide path and balancing all of the certain risks. Should they be looking to maximize growth early on in the glide path, should they be looking to provide better downside protection as you get closer to retirement and really kind of to break out and filter the universe there at the starting point. At least you can go from say 120 to something more manageable like 25-30. And then from there, you can do a deeper analysis and leverage a lot of the same concepts and tools that we have just talked about in terms of getting a better understanding of what are those driving those strategies, what are their exposures. Because again, when you think about target date strategies, everyone thinks about just the glide path and that’s typically represented as your stock and bond allocation. But obviously, a lot more goes under the hood in terms of the sub-asset class allocations to those various strategies.

 

Chris Galipeau: That’s great and you know so for the listeners, what I would say is having been around Seamus for a decade and watched him build this and build the team and to see firsthand the conversations and where the financial advisor team might be starting out and where they end up after the analysis is run, whether that’s target date or whether that’s just regular book of business, the change by the time we get to the end of it and it’s not an arduous process by any stretch but by the change by the end of it, their confidence is through the roof and I feel like the advisor teams that we work with feel they’re much better prepared, they’re much better prepared to manage the money, they’re much better prepared to talk to the clients. A point that you made earlier which is phenomenal point, right. Communication is really important. So, alright, that’s a lot. Again, you can check out the Putnam website and get access to the target-date tool that Seamus just described. So, alright Seamus. Now we’re going to shift gears a little bit and move away from the investment part of the conversation and for better or worse, you and I have lunch together almost all the time. What are we eating for lunch? What’s Seamus’ favorite food? Doesn’t have to be lunch, could be dinner.

 

Seamus Young: Yeah. It’s typically not something at lunch. I’d say if I had one thing to eat, Mexican food buy and large is my kind of go-to. It may or may not be with a margarita as well. Certainly not at lunch but you know. I love Mexican food and whether it’s fajitas, a burrito, it doesn’t really matter. It’s definitely my go-to.

 

Chris Galipeau: We might have just had that for lunch today over on our side of the desk, Taylor and I. Okay, I’m in agreement with that. I feel like I could eat Mexican food or Sushi for every meal for the rest of my life, either/or, and throw in some steak in there too, I guess. Alright, favorite type of music. So, we were talking about this earlier, this is interesting, depending on what we’re doing, right? Depending on what you’re doing.

 

Seamus Young: Yeah, no. I think maybe in typical kind of multi-asset fashion and taking advantage of being diversified. I think my music tastes are certainly diversified or certainly dependent on kind of the activities, right? Whether I’m working out, I think definitely either some form of rock or rap is definitely my go-to. But if it’s just hanging out on the beach or by the pool, I think country music for sure is kind of what I would kind of turn to, to just kind of relax and enjoy my time with friends, family.

 

Chris Galipeau: Right. So, no wonder we’re friends. We’re on the same page there. The last question is a question that we’ve gotten a lot of good input on. So, Princeton grad, CFA, very smart but undoubtedly on a journey here, right, from Princeton to Putnam. Over the 13 years, you’ve read a tremendous amount of books and we all have, right? Either one or two books that you’ve read that have impacted the way you think with regard to multi-asset portfolios, how you think about risk, managing risk?

 

Seamus Young: Yeah. I think probably the book that comes to mind might come as a little bit of surprise in terms of it not being as related to multi-asset investing but it comes to mind because it’s one of the first books I read about the industry and it’s Joel Greenblatt's "You Can Be a Stock Market Genius," Gotham Capital. I read that when I was in school and it was something – I think it might have been probably like the first or second book about the industry that I kind of ever really read and it really kind of drilled my passion even more so and kind of the curiosity to learn more about the industry. Again, in that book he goes through all these different types of special situations where he’s looking to uncover value and he walks through his career and different opportunities and situations that he went through and I think it’s a great case study. And that right, when reading that book, I was certainly hooked in terms of wanting to get into the industry and it’s still something I have in my home office to this day and look at it every once in a while, to check in and refresh memories and that’s definitely the one that comes to mind.

 

Chris Galipeau: Okay, appreciate it. Alright folks. Thanks for listening. We’ll be back again in another couple weeks with another Putnam portfolio manager. Seamus, thanks for joining and thanks for your insight and in talking about the Portfolio Solutions Group and the tool kit and the value proposition to advisors are very powerful and so appreciate it.

 

Seamus Young: Great. Thank you, Chris.

 

Chris Galipeau: You’re welcome.

 

Patrick Laffin: Thank you for listening to Active Insights. For more information on Putnam, please visit Putnam.com. All opinions expressed by the podcast host or podcast guests are solely their own opinions and do not represent the opinions or views of Putnam Investments or any affiliates. This podcast is not investment advice and is not intended as a recommendation to buy or sell any type of securities. This production is for informational purposes only.

 

Online Title and Description:

Portfolio Solutions with Seamus Young, CFA

 

In this episode, Chris speaks with Seamus Young, CFA, a Senior Investment Director in the Global Investment Strategies group, specializing in Global Asset Allocation products. He is a portfolio manager of Putnam Multi-Asset Model Portfolios. In addition, Seamus is responsible for gathering intelligence on trends in the global marketplace; communicating investment performance, positioning, and strategy as a member of the Portfolio Solutions group.

During the conversation, they touch on many topics, including: 

·       The Portfolio Solutions Group

·       How financial advisors can utilize the portfolio solutions group to improve outcomes and optimize portfolio efficiency

·       Multi-Asset Portfolios

·       Portfolio construction

·       How to successfully balance risk and return

·       The key factors that influence overall portfolio performance

·       The crucial data points when analyzing target date and retirement savings plans

 

This material is for informational and educational purposes only. It is not a recommendation of

any specific investment product, strategy, or decision, and is not intended to suggest taking or

refraining from any course of action. It is not intended to address the needs, circumstances, and

objectives of any specific investor. This information is not meant as tax or legal advice. Investors

should consult a professional advisor before making investment and financial decisions and for

more information on tax rules and other laws, which are complex and subject to change.

 

Investing involves risk, including the loss of principal. Risks apply to those underlying funds in the allocation of the models, there is no guarantee the funds’ investment objectives will be achieved. Carefully consider the funds within the model portfolios’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the funds’ prospectuses, which may be obtained by visiting the respective fund information page or fund family website. Our allocation of investments among the underlying funds may hurt performance. Therefore, the model portfolio’s performance is subject to the risks that may affect the performance of the underlying funds. In addition, investors will bear the fees and expenses of the underlying funds included in the models. 

 

To view additional information, please visit the Putnam Multi-Asset Model Portfolios page found on putnam.com. 

 

Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund

before investing. For a prospectus, or a summary prospectus if available, containing this and other

information for any Putnam fund or product, call your financial representative or call Putnam at 1-

800-225-1581. Please read the prospectus carefully before investing.

 

Putnam Retail Management                                                                                       AD1959875 12/21