Absolute return investing

Absolute return investing offers an alternative to traditional mutual funds that invest in stocks, bonds, or money market securities. By definition, absolute return strategies are independent of asset classes and can take steps to reduce market risk. Absolute return funds look for a wide variety of positive return opportunities and seek to reduce unwanted risks through the use of hedging strategies.

Absolute return funds pursue positive returns above inflation over three years with less risk than securities markets.

Chart does not represent the performance of Putnam Absolute Return Funds. The 3-year annualized return of the BofA Merrill Lynch U.S.T-Bill Index through 12/31/12 was 0.16%. You cannot invest directly in an index.