Putnam Investments Absolute Return Funds Reach $1 Billion in Assets
16 Dezember 2009 - 6:10PM
Business Wire
Putnam Investments announced today that its unique suite of
target Absolute Return Funds*, has passed $1 billion in assets as
of December 14, 2009 — less than a year after they were launched in
January 2009 — making the funds one of the best selling in its
category. The funds pursue positive real returns with less
volatility than traditional mutual funds.
“This marks the emergence of a major new category in mutual fund
investing in America,” said Putnam Investments President and Chief
Executive Officer Robert L. Reynolds. “Reaching this milestone so
quickly reflects the very strong appetite in the marketplace for
products that are designed to produce more steady investment
returns over time to address volatility, longevity, inflation and
income concerns.
“This is just the beginning,” Reynolds continued. “We think
absolute return strategies — our own and others — will become a
major part of the entire investment landscape in coming years — as
core elements of portfolios, and through inclusion in retirement
and other savings vehicles, including lifecycle date funds, 529
plans, and 401(k) plans.”
The versatility and broad application of the Absolute Return
Fund suite has been well received by the advisor community, which
has made use of each of the four funds in varying combinations to
address portfolio needs around longevity and volatility risks, the
specter of inflation, and the increasing desire for a more
dependable stream of income. As evidence of its wide-ranging use,
the suite has assets spread across each of its four funds.
In addition to being sold individually to investors, the
Absolute Return Funds are combined among the underlying investments
in the Putnam RetirementReady Funds, Putnam’s suite of 10
target-date lifecycle retirement funds. Putnam RetirementReady
Funds are the only suite of lifecycle funds to integrate these
strategies alongside more conventional relative return — or
benchmark-focused — mutual fund strategies to control volatility.
When used in retirement portfolios, Putnam Absolute Return Funds
strive to pursue positive returns in up and down markets, and,
importantly, to protect against the harmful effects of adverse
investment returns, by relying on a greater percentage of absolute
return fund exposure the closer the target date fund is to its
maturity using a changing mix of absolute return funds, as
investors near retirement.
Putnam offers four Absolute Return Funds, which collectively
make up the industry’s first suite of target absolute return mutual
funds:
- Putnam Absolute Return 100
Fund (Class A, PARTX) seeks to outperform inflation by 1% over
periods of three years or more net of all fund expenses as measured
by T-bills, and can be an alternative to short-term
securities.
- Putnam Absolute Return 300
Fund (Class A, PTRNX) seeks to outperform inflation by 3% over
periods of three years or more net of all fund expenses as measured
by T-bills, and can be an alternative to bond funds.
- Putnam Absolute Return 500
Fund (Class A, PJMDX) seeks to outperform inflation by 5% over
periods of three years or more net of all fund expenses as measured
by T-bills, and can be an alternative to balanced funds.
- Putnam Absolute Return 700
Fund (Class A, PDMAX) seeks to outperform inflation by 7% over
periods of three years or more net of all fund expenses as measured
by T-bills, and can be an alternative to stock funds.
“The growth of Putnam’s Absolute Return Funds has exceeded all
expectations,” said Reynolds. “The appeal for financial advisors
and brokers is clear. Less than a year after the funds were
launched, over 350 brokerage and wirehouse firms and 4,800
financial advisors are already using the Putnam Absolute Return
Funds with their clients. With a reawakened awareness of risk
across all asset classes, as well as approximately $11 trillion in
cash still sitting on the sidelines of the markets, we think there
is enormous potential for the continued growth of these strategies
among mainstream investors.”
The introduction of the Putnam Absolute Return Funds exemplifies
Putnam’s renewed leadership in product innovation during 2009. In
addition to the four target Absolute Return Funds, Putnam has
launched 10 new mutual funds in 2009, including Putnam Spectrum
Funds, which invest in the securities of leveraged companies. The
actively managed Putnam Global Sector Funds, which target stocks in
dynamic sectors across global markets, cover nine sectors across
the entire MSCI World Index and can be combined to create a highly
customized portfolio.
About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money
management firm with over 70 years of investment experience. As of
November 30, 2009, Putnam had $114 billion in assets under
management. Putnam has offices in Boston, London, Frankfurt,
Amsterdam, Tokyo, Singapore, and Sydney. For more information,
visit putnam.com.
* Putnam’s target Absolute Return Funds are not intended to
outperform stocks and bonds during strong market rallies.
Putnam mutual funds are distributed by Putnam Retail
Management.
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