EO093 282119 8/13 | 1
Not FDIC
Insured
May Lose
Value
No Bank
Guarantee
EO093 282119 8/13 | 2EO093 282119 8/13 | 2
A BALANCED APPROACH
A WORLD OF INVESTING
A COMMITMENT TO EXCELLENCE
EO093 282119 8/13 | 3
Markets demand new ways of
thinking
• Stock market volatility has increased since 2007
• Bonds and c...
EO093 282119 8/13 | 4
0
10
20
30
40
50
60
70
80
90
100Higher
Frequent market volatility argues
for reducing equity risk
• ...
EO093 282119 8/13
0
1
2
3
4
5
Aaa-rated bond 10-year Treasury Inflation
| 5
Bonds may offer limited upside
• Bond yields a...
EO093 282119 8/13 | 6
Cash is safe, but lacks growth
• The Fed is holding down short-term interest rates
Source: Federal R...
EO093 282119 8/13 | 7
Are there mutual
funds that seek
more consistent
returns with less
volatility?
Putnam
Absolute Return
100 Fund®
Putnam
Absolute Return
300 Fund®
Putnam
Absolute Return
500 Fund®
Putnam
Absolute Return
...
EO093 282119 8/13 | 9
What is
absolute
return
investing?
A strategy that
targets positive
returns above
inflation with les...
EO093 282119 8/13 | 10
Absolute return versus traditional
relative return strategies
Absolute return Relative return
Defin...
EO093 282119 8/13 | 11| 11
Putnam was the first to offer
a suite of absolute return funds
Each fund seeks to earn a positi...
EO093 282119 8/13 | 12
How Putnam manages
absolute return
1
Wide range
of global
securities
2
Progressive
risk
management
...
EO093 282119 8/13 | 13
The funds have delivered positive returns
in turbulent markets
Current performance may be lower or ...
EO093 282119 8/13
Markets more volatile in
steady economy
• The Fed’s tapering talk could cause more volatility
• In a ste...
EO093 282119 8/13 | 15
Absolutely for all kind of investors
• Talk with your financial advisor to set your goals
• Review ...
EO093 282119 8/13 | 16
Putnam
Absolute Return
100 Fund®
Putnam
Absolute Return
300 Fund®
Putnam
Absolute Return
500 Fund®
...
EO093 282119 8/13 | 17
Consider these risks before investing:
Our allocation of assets among permitted asset categories ma...
EO093 282119 8/13 | 18
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Putnam Absolute Return Funds

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Putnam Absolute Return Funds

  1. 1. EO093 282119 8/13 | 1 Not FDIC Insured May Lose Value No Bank Guarantee
  2. 2. EO093 282119 8/13 | 2EO093 282119 8/13 | 2 A BALANCED APPROACH A WORLD OF INVESTING A COMMITMENT TO EXCELLENCE
  3. 3. EO093 282119 8/13 | 3 Markets demand new ways of thinking • Stock market volatility has increased since 2007 • Bonds and cash offer low yields and limited upside • Better portfolio diversification may be possible with Putnam Absolute Return Funds Diversification does not assure a profit or protect against loss. It is possible to lose money in a diversified portfolio.
  4. 4. EO093 282119 8/13 | 4 0 10 20 30 40 50 60 70 80 90 100Higher Frequent market volatility argues for reducing equity risk • Stock market volatility has worsened in recent years Source: CBOE Market Volatility Index, June 2000–July 2013. July 2013 Lower Stock volatility index Lehman Brothers bankruptcy 9/11 Iraq War September 2001 March 2003 August 2005 September 2008 Hurricane Katrina European debt crisis S&P cuts U.S. credit rating
  5. 5. EO093 282119 8/13 0 1 2 3 4 5 Aaa-rated bond 10-year Treasury Inflation | 5 Bonds may offer limited upside • Bond yields are at low levels, and vulnerable to inflation Sources: U.S. Federal Reserve (Moody’s Aaa-rated corporate bond, 10-year Treasury constant maturity); U.S. Bureau of Labor Statistics Consumer Price Index 12-month change. (%) Bond yields and inflation as of June 2013
  6. 6. EO093 282119 8/13 | 6 Cash is safe, but lacks growth • The Fed is holding down short-term interest rates Source: Federal Reserve’s Open Market Committee, July 31, 2013. “This exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6.5%.”
  7. 7. EO093 282119 8/13 | 7 Are there mutual funds that seek more consistent returns with less volatility?
  8. 8. Putnam Absolute Return 100 Fund® Putnam Absolute Return 300 Fund® Putnam Absolute Return 500 Fund® Putnam Absolute Return 700 Fund® EO093 282119 8/13 | 8
  9. 9. EO093 282119 8/13 | 9 What is absolute return investing? A strategy that targets positive returns above inflation with less volatility than markets.
  10. 10. EO093 282119 8/13 | 10 Absolute return versus traditional relative return strategies Absolute return Relative return Defines success as achieving positive returns Defines success as beating a benchmark, even if negative Seeks low volatility and limited market risk Sets no absolute volatility targets Independent of traditional benchmarks Tied to a benchmark index
  11. 11. EO093 282119 8/13 | 11| 11 Putnam was the first to offer a suite of absolute return funds Each fund seeks to earn a positive total return that exceeds the rate of inflation by a targeted amount over a reasonable period of time (typically 3 years) regardless of market conditions. There can be no assurance that a fund will meet its objective. The funds are not intended to outperform stocks and bonds during strong market rallies. Seeks to outperform T-bills by Invests in Alternative to Putnam Absolute Return 100 Fund 1% Global fixed-income sectors Short-term securities Putnam Absolute Return 300 Fund 3% Global fixed-income sectors Bond funds Putnam Absolute Return 500 Fund 5% Global fixed-income sectors, stocks, and alternative assets Balanced funds Putnam Absolute Return 700 Fund 7% Global fixed-income sectors, stocks, and alternative assets Stock funds
  12. 12. EO093 282119 8/13 | 12 How Putnam manages absolute return 1 Wide range of global securities 2 Progressive risk management 3 Ultimate flexibility 4 Experienced management
  13. 13. EO093 282119 8/13 | 13 The funds have delivered positive returns in turbulent markets Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or a loss when you sell your shares. The class A share performance shown assumes reinvestment of distributions and does not account for taxes. Before-sales-charge returns do not reflect a maximum load of 5.75% for Putnam Absolute Return 500 and 700 Funds, and 1.00% for Putnam Absolute Return 100 and 300 Funds. Had the sales charges been reflected, returns would have been lower. “What you pay” reflects Putnam Management’s decision to contractually limit expenses for the Absolute Return 500 Fund through 6/30/14. For a portion of the periods, the funds had expense limitations, without which returns would have been lower. A short-term trading fee of 1% may apply to redemptions or exchanges from certain funds within the time period specified in the funds’ prospectus. To obtain the most recent month-end performance, visit putnam.com. The BofA Merrill Lynch U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar-denominated U.S. Treasury bills publicly issued in the U.S. domestic market. Qualifying securities must have a remaining term of at least one month to final maturity and a minimum amount outstanding of $1 billion. It is not possible to invest directly in an index. As of 6/30/13 Class A shares before sales charge Inception: 12/23/08 1 year before sales charge 1 year after sales charge 3 years before sales charge 3 years after sales charge 3-year Sharpe ratio 3-year standard deviation Life before sales charge Life after sales charge Expense ratio What you pay Absolute Return 100 Fund® 2.24% 1.22% 0.89% 0.55% 0.58 1.29% 1.54% 1.32% 0.65% — Absolute Return 300 Fund® 5.34 4.29 1.88 1.54 0.59 2.95 3.16 2.93 0.82 — Absolute Return 500 Fund® 2.53 -3.36 3.90 1.87 0.92 4.07 4.57 3.21 1.17 1.15% Absolute Return 700 Fund® 3.06 -2.87 4.61 2.57 0.90 4.96 5.97 4.59 1.31 — BofA Merrill Lynch U.S. Treasury Bill Index 0.13 0.14 0.18 — —
  14. 14. EO093 282119 8/13 Markets more volatile in steady economy • The Fed’s tapering talk could cause more volatility • In a steady economy, deflation lurks • Risk assets deserve the benefit of the doubt
  15. 15. EO093 282119 8/13 | 15 Absolutely for all kind of investors • Talk with your financial advisor to set your goals • Review your portfolio and risk profile • Add Putnam Absolute Return Funds to diversify a portfolio of traditional funds • The funds have provided positive performance with low volatility in the up and down markets since 2008
  16. 16. EO093 282119 8/13 | 16 Putnam Absolute Return 100 Fund® Putnam Absolute Return 300 Fund® Putnam Absolute Return 500 Fund® Putnam Absolute Return 700 Fund® An alternative to short-term securities An alternative to bond funds An alternative to balanced funds An alternative to stock funds
  17. 17. EO093 282119 8/13 | 17 Consider these risks before investing: Our allocation of assets among permitted asset categories may hurt performance. The prices of stocks and bonds in the funds’ portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including both general financial market conditions and factors related to a specific issuer or industry. Our active trading strategy may lose money or not earn a return sufficient to cover associated trading and other costs. Our use of leverage obtained through derivatives increases these risks by increasing investment exposure. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have ongoing fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging-market securities, including illiquidity and volatility. Our use of derivatives may increase these risks by increasing investment exposure (which may be considered leverage) or, in the case of many over-the-counter instruments, because of the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. The funds may not achieve their goal, and they are not intended to be a complete investment program. The funds’ effort to produce lower-volatility returns may not be successful and may make it more difficult at times for the funds to achieve their targeted return. In addition, under certain market conditions, the funds may accept greater volatility than would typically be the case, in order to seek their targeted return. For the 500 Fund and 700 Fund, these risks also apply: 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. You can lose money by investing in the funds. The views and opinions expressed are those of the speaker, are subject to change with market conditions, and are not meant as investment advice. 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, call your financial advisor or contact Putnam at 1-800-225-1581. Investors should read the prospectus carefully before investing. Putnam Retail Management putnam.com
  18. 18. EO093 282119 8/13 | 18

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