Opportunities across asset classes
Portfolio Manager Kevin Murphy talks about opportunities in corporate credit, emerging markets, and the mortgage market.
While the cause of the Dow’s historic May 6 plunge is still unknown, one factor is certain: The market has been unwilling to relax its skepticism around solutions for sovereign debt issues in the eurozone.
The markets reacted again this week as European governments … Continue Reading »
The Dow Jones Industrial Average saw its largest intraday drop yesterday since 1987, losing 998.5 points before regaining some ground and closing with a loss of 348 points, or 3.2%.
The Chicago Board Options Exchange Volatility Index (VIX), a 30-day risk forecast based … Continue Reading »
Most relative return funds are strategically managed, and many pursue buy-and-hold investment approaches. Often, these funds are also concerned with maintaining investment turnover and tracking error within a particular range. In fact, some studies suggest that actively managed funds have become less tactical or … Continue Reading »
The average traditional, long-only mutual fund is constrained by investment parameters that permit managers to invest only in a defined set of securities. These narrowly defined objectives may, for example, confine managers to equities that fall within a specified capitalization range in a … Continue Reading »
Risk-taking may be making a comeback, and recent market activity may suggest just that.
Stocks have been on the rise this year as investors began treading further out on the risk spectrum. The S&P 500 Index and Dow Jones Industrial Average had their biggest … Continue Reading »
The biggest market topic currently is sovereign risk, with Greece’s debt predicament in the news constantly. At this time Putnam Absolute Return Funds have no investments in Greece. In fact, we have virtually no sovereign risk in the funds. We are evaluating sovereign risk opportunities, … Continue Reading »
Positioning
We find yield spreads over Treasuries attractive for corporate bonds and mortgage bonds, and some emerging-market debt. The spreads more than compensate for the fundamental risk to the securities, in our view. We separate these opportunities into four areas: corporate credit, mortgage credit, prepayment risk, … Continue Reading »
The market volatility of 2008 saw record amounts of cash move to the sidelines. According to ICI, over $11 trillion was invested in CDs, money markets, bank deposit accounts, and other cash instruments by the end of 2009.
After seeing losses unprecedented since the Great … Continue Reading »
Absolute return funds can work as a complement to relative return funds by seeking to provide a consistent return regardless of market or asset class behavior.
Relative return funds try to outperform a benchmark with traditional investing tools. Putnam Absolute … Continue Reading »
The views and opinions expressed are those of the Putnam Investments, are subject to change with market conditions, and are not meant as investment advice.
Putnam Absolute Return Funds pursue a positive return that exceeds the rate of inflation, as reflected by Treasury bills, over a period of three-years with less volatility than general securities markets.
Consider these risks before investing in Putnam Absolute Return Funds: Asset allocation decisions may not always be correct and may adversely affect fund performance. The use of leverage through derivatives may magnify this risk. Leverage and derivatives carry other risks that may result in losses, including the effects of unexpected market shifts and/or the potential illiquidity of certain derivatives. International investments carry risks of volatile currencies, economies, and governments, and emerging-market securities can be illiquid. Bonds are affected by changes in interest rates, credit conditions, and inflation. As interest rates rise, prices of bonds fall. Long-term bonds are more sensitive to interest-rate risk than short-term bonds, while lower-rated bonds may offer higher yields in return for more risk. Unlike bonds, bond funds have ongoing fees and expenses. For the Putnam Absolute Return 500 Fund and Putnam Absolute Return 700 Fund, these risks also apply: Stocks of small and/or midsize companies increase the risk of greater price fluctuations. REITs involve the risks of real estate investing, including declining property values. Commodities involve the risks of changes in market, political, regulatory, and natural conditions. Additional risks are listed in the funds' prospectus.
The funds are not intended to outperform stocks and bonds during strong market rallies.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, visit the prospectus section of putnam.com, call your financial representative, or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.
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