Absolute-return funds may only comprise $140 billion, a scant 1.2% of the $11.26 trillion in mutual funds, but that will grow to 10% to 15% over the next decade, predicts Putnam Investments President and Chief Executive Officer Robert Reynolds.

Driving this demand will be a listless equity market for the foreseeable future and investors who now prefer positive returns to funds that simply aim to beat a benchmark and adhere to static asset allocation, styles and geographic diversification, said Reynolds and other speakers at Putnam's first Absolute Return Symposium in New York.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.