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Putnam Investments to Launch Multi-Cap Equity Funds

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Putnam Investments announced Monday, June 14, that it will be launching a suite of three U.S. multi-cap equity funds, available by late September 2010. The funds’ objectives, according to the firm, are to provide investors and their advisors with an approach to investing by style–value, core/blend, growth–regardless of the market capitalization of the underlying securities.

The announcement is part of a broader product expansion by the Boston-based money manager over the past 18 months, including Putnam Absolute Return Funds, Putnam Spectrum Funds and Putnam Global Sector Funds.

“As the equity market continues to rapidly evolve, with its ever-changing set of dynamics, there are opportunities to be realized — and potentially losses to be avoided — through more flexible portfolio parameters,” said Putnam Investments President and Chief Executive Officer Robert L. Reynolds, in a prepared statement. “Putnam’s multi-cap suite will allow the funds’ experienced managers to select from all companies within their style universes and essentially build a portfolio of their best ideas, whatever the market cap of the securities they choose.”

Drawing on both new and reconstituted products, Putnam multi-cap products will offer exposure to stocks within the value, core/blend, and growth sectors by using the firm’s stock-picking and fundamental research teams. Each fund’s portfolio manager will have the ability to own a holding as it changes in capitalization without constraints that would require him to sell if the company was to get too large, or that would prevent him from taking advantage of an attractively priced stock.

The Putnam multi-cap equity funds will consist of the following:

Putnam Multi-Cap Value Fund will seek capital appreciation by investing in value stocks of small, midsize, and large companies. Currently Putnam Mid Cap Value Fund, the fund’s name and investment strategy will change effective September 1, 2010. Its new investment strategy will give it the flexibility to invest across all capitalization levels. The fund will continue to be managed by James Polk, who has been Portfolio Manager since 2004. He joined Putnam in 1998 and is a CFA charterholder with 16 years of investment industry experience.

Putnam Multi-Cap Core Fund is a new fund that, subject to SEC review, will be available in late September 2010, and will seek capital appreciation by investing in growth and value stocks of small, midsize, and large companies. The fund will be managed in Putnam’s core/blend style by Gerard Sullivan, who currently manages Putnam Investors Fund and has 28 years of investment experience.

Putnam Multi-Cap Growth Fund will seek capital appreciation by investing in growth stocks of small, midsize, and large companies. Currently Putnam New Opportunities Fund, the fund’s name will change effective September 1, 2010 to better reflect the fund’s investment strategy. In addition, in late September 2010, subject to the approval of shareholders of Putnam Vista Fund (also a growth fund), Putnam Vista Fund will merge into Putnam Multi-Cap Growth Fund. In July, Putnam Vista Fund’s shareholders will receive proxy materials requesting their vote on the merger, and Putnam Vista Fund will close to new accounts on or about July 15, 2010.

The fund will be managed by Robert Brookby, who also manages Putnam Growth Opportunities Fund and has 11 years of industry experience. Prior to joining Putnam in 2008, Robert served as Portfolio Manager of American Century Fundamental Equity Fund, a large- and mid-cap portfolio.


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