Putnam Investments has launched the Putnam Dynamic Risk Allocation Fund, a ’40 Act mutual fund that uses the “risk parity” approach of its successful Putnam Total Return portfolio for institutional investors, which has delivered average annual returns of 9% since inception five years ago.

The Putnam Dynamic Risk Allocation Fund uses leverage and a flexible mandate to actively balance portfolio risk across multiple, less-volatile asset classes. The leverage is applied to lower-volatility investments and/or less-correlated assets to make them more powerful, so that equities do not dominate the fund’s risk profile. The aim is to providing consistent levels of total return.

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