Putnam unveils absolute-return mutual funds

Putnam Investments of Boston today announced that it has launched four target absolute-return mutual funds designed to seek annualized total returns of 1%, 3%, 5% or 7% above those of U.S. Treasuries over a period of three years or more.

Unlike relative-return funds, which measure themselves against market indexes, Putnam’s absolute-return funds are designed to provide positive returns over time, with less volatility than more traditional funds, whether markets are rising or falling.

“Investors and financial advisers are hungry for solutions that target positive returns in good markets or bad and offer a way to venture back into investing,” Robert L. Reynolds, president and chief executive at Putnam, said in a statement. “Diversification and commitment to absolute-return strategies can be crucial to long-term investment success, and we believe investors will welcome the opportunity to invest in these funds.”
The four funds are the Putnam Absolute Return 100 Fund (PARTX), Putnam Absolute Return 300 Fund (PTRNX), Putnam Absolute Return 500 Fund (PJMDX) and Putnam Absolute Return 700 Fund (PDMAX).