Putnam Absolute Return Funds

No Bank Guarantee May Lose Value Not FDIC Insured

Can a mutual fund seek consistent, positive returns with less volatility?

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Absolute return versus traditional relative return strategies Absolute return funds also may have additional risks that relative return funds might not incur such as the risks associated with investing in derivatives and commodities, and risks from the use of leverage. These types of risks and the expenses associated with investing in these securities may hinder the ability to fully realize market gains during strong rallies. Can go anywhere – universe is not limited by a benchmark Absolute return Typically favors investments within its benchmark Relative return

Absolute return versus traditional relative return strategies Defines success as achieving its positive return goals Absolute return Defines success as beating benchmark, even if negative Relative return

Absolute return versus traditional relative return strategies As with any investment, absolute return strategies may lose money. The funds are not intended to outperform stocks and bonds during strong market rallies. Seeks low volatility and reduced market risk Absolute return Generally takes broad market risk Relative return

Putnam was the first to offer four absolute return choices 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 regardless of market conditions. For illustrative purposes only. Does not represent actual holdings or strategies of any Putnam fund or product. 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. Bond funds Putnam Absolute Return 300 Fund Balanced funds Putnam Absolute Return 500 Fund Stock funds Putnam Absolute Return 700 Fund Alternative to Each fund can fit in a portfolio of traditional funds Short-term securities Putnam Absolute Return 100 Fund

Return targets above inflation over a market cycle of at least 3 years 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 regardless of market conditions. For illustrative purposes only. Does not represent actual holdings or strategies of any Putnam fund or product. 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. +3% Putnam Absolute Return 300 Fund +5% Putnam Absolute Return 500 Fund +7% Putnam Absolute Return 700 Fund Target return above inflation, as measured by Treasury bills +1% Putnam Absolute Return 100 Fund

How Putnam manages absolute return 4 Experienced management 3 Ultimate flexibility 2 Progressive risk management 1 Wide range of global securities

Experienced portfolio managers
Fixed Income Group
6 portfolio managers
Average 18 years of experience
Asset Allocation Group
5 portfolio managers
Average 20 years of experience

Absolutely for all kind of investors
Talk with your financial advisor to set your goals
Review your portfolio and risk profile
Consider adding absolute return funds to diversify a portfolio of traditional funds

Consider these risks before investing: Our allocation of assets among permitted asset categories may hurt performance. Funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds 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. The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. 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. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Additional risks are listed in the funds’ prospectus. 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

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Putnam Absolute Return Funds

by Putnam Investments on Jun 07, 2011

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Putnam Absolute Return Funds — Webinar Transcript