New Putnam funds separate alpha and beta (nearly)
| Oct 6th, 2008 | Filed under: Retail Investing, Today's Post | By: Alpha Male |
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We’ve been waiting for the markets to cool down so we can get back to our primary focus here at AllAboutAlpha.com, the ongoing evolution of the asset management industry. But with breaking stories overwhelming the new cycle nearly every day now, that time never seems to arrive. Still, today we take a much needed break from the all-too-familiar apocalypse countdown and examine an intriguing new fund that may be the poster child for what emerges from the impending financial ice age.
Putnam Investments is launching what it calls the “Absolute Return 100, 300, 500, 700 &1000” funds. While the lower expected volatility of the “100″ and “300″ versions simply invest in sleepier asset classes that have a relatively low equity market correlation (namely fixed income securities), the rest of the funds share a unique attribute: they are constructed out of two distinct portfolios – an “alpha strategy” and a “beta strategy”.
According to the funds’ prospectus:
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