Putnam Investments announced Wednesday that its suite of target Absolute Return Funds has surpassed $1 billion in assets, less than a year after they were launched.

“This marks the emergence of a major new category in mutual fund investing in America,” said Putnam President and CEO Robert L. Reynolds. “Reaching this milestone so quickly reflects the very strong appetite in the marketplace for products that are designed to produce more steady investment returns over time to address volatility, longevity, inflation and income concerns."

Reynolds said he thinks absolute return strategies will become a major part of the investment landscape in the coming years and will have a place in 401(k) plans, 529 plans, target-date funds and other savings vehicles.

"Less than a year after the funds were launched, over 350 brokerage and wirehouse firms and 4,800 financial advisors are already using the Putnam Absolute Return Funds with their clients," Reynolds said. "With a reawakened awareness of risk across all asset classes, as well as approximately $11 trillion in cash still sitting on the sidelines of the markets, we think there is enormous potential for the continued growth of these strategies among mainstream investors.”

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