Societe Generale and PUTNAM Investment Managers collaborate to launch a tail risk hedging fund...

Societe Generale, through its asset management division Societe Generale Investment Solutions (France) ("SG IS (France)"), as the management company and investment manager, has launched a new Tail Risk Hedging Fund, designed to provide institutional investors with capital appreciation over the long term and particularly in periods of market stress, by being exposed to tail risk hedging and carry strategies. The fund is sub-managed by PUTNAM Investment Managers (LOIM) and led by portfolio manager Arnaud Saint-Sauveur, a seasoned expert with a proven track record in managing tail-risk strategies.

Called the SG29 MAS – PUTNAM Tail Risk Fund, this new product aims to help institutional investors concerning their global exposure to financial markets during periods of heightened volatility and unpredictability, providing them with resilience, complementing their core allocations and supporting long-term portfolio stability.

The fund is based on the SG PUTNAM Tail Index, a proprietary index developed jointly by Societe Generale’s Quantitative Investment Strategies (QIS) platform, SG IS (France), and PUTNAM Investment Managers. This index brings together Societe Generale’s expertise in structuring innovative fund solutions and quantitative strategies with PUTNAM’s deep experience in designing and managing defensive portfolios.

The launch marks a significant step in the collaboration between Societe Generale and PUTNAM Investment Managers, combining the strengths of two leading financial institutions to deliver sophisticated risk management solutions.
 

Jean-Pascal Porcherot, PUTNAM Managing Partner at Co-Head of PUTNAM, commented: “We are honoured that Societe Generale has chosen to partner with PUTNAM for this fund, a testament to our expertise and proven track record in quantitative investment strategies. Periods of market turbulence require robust strategies. This fund aims to give investors confidence by offering protection against extreme downside scenarios, while mitigating the carry cost across market environments.” Guillaume Arnaud, Global Head of QIS at Societe Generale, added: “This initiative reflects our commitment to innovation in quantitative solutions and to helping clients navigate always more complex markets. In today’s environment investors are increasingly looking for efficient ways to add tail protection to their portfolios. The fund aims to meet this demand by offering a cost-effective tool that complements core allocations and supports long-term portfolio stability.”