Absolute return funds across the media

PUTNAM INVESTMENTS ABSOLUTE RETURN FUNDS REACH $1 BILLION IN ASSETS

Industry's Only Suite of Absolute Return Funds Reaches Milestone in First Year as Advisors and Investors Seek Solutions that Address Volatility, Longevity, Inflation and Income Concerns

BOSTON, December 16, 2009 — Putnam Investments announced today that its unique suite of target Absolute Return Funds has passed $1 billion in assets as of December 14, 2009 – less than a year after they were launched in January 2009 – making the funds one of the best selling in their category. The funds pursue positive real returns with less volatility than traditional mutual funds.

"This marks the emergence of a major new category in mutual fund investing in America," said Putnam Investments President and Chief Executive Officer 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.

"This is just the beginning," Reynolds continued. "We think absolute return strategies – our own and others – will become a major part of the entire investment landscape in coming years – as core elements of portfolios, and through inclusion in retirement and other savings vehicles, including lifecycle date funds, 529 plans, and 401(k) plans."

The versatility and broad application of the Absolute Return Fund suite have been well received by the advisor community, which has made use of each of the four funds in varying combinations to address portfolio needs around longevity and volatility risks, the specter of inflation, and the increasing desire for a more dependable stream of income. As evidence of its wide-ranging use, the suite has assets spread across each of its four funds.

Read the full press release

In addition to being sold individually to investors, the Absolute Return Funds are combined among the underlying investments in the Putnam RetirementReady Funds , Putnam's suite of 10 target-date lifecycle retirement funds*. Putnam RetirementReady Funds are the only suite of lifecycle funds to integrate these strategies alongside more conventional relative return – or benchmark-focused – mutual fund strategies to control volatility. As underlying investments, Putnam Absolute Return Funds strive to protect against the harmful effects of adverse investment returns. Also, the glidepath relies on a greater percentage of absolute return fund exposure as the target date fund approaches maturity, and the mix of absolute return funds becomes more conservative as investors near retirement.

Putnam offers four Absolute Return Funds, which collectively make up the industry's first suite of absolute return mutual funds:

• Putnam Absolute Return 100 Fund (Class A, PARTX) seeks to outperform inflation by 1% over periods of three years or more net of all fund expenses as measured by T-bills, and can be an alternative to short-term securities.
• Putnam Absolute Return 300 Fund (Class A, PTRNX) seeks to outperform inflation by 3% over periods of three years or more net of all fund expenses as measured by T-bills, and can be an alternative to bond funds.
• Putnam Absolute Return 500 Fund (Class A, PJMDX) seeks to outperform inflation by 5% over periods of three years or more net of all fund expenses as measured by T-bills, and can be an alternative to balanced funds.
• Putnam Absolute Return 700 Fund (Class A, PDMAX) seeks to outperform inflation by 7% over periods of three years or more net of all fund expenses as measured by T-bills, and can be an alternative to stock funds.

"The growth of Putnam's Absolute Return Funds has exceeded all expectations," said Reynolds. "The appeal for financial advisors and brokers is clear. Less than a year after the funds were launched, over 350 brokerage and wirehouse firms and 4,800 financial advisors are already using Putnam Absolute Return Funds with their clients. 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."

The introduction of Putnam Absolute Return Funds exemplifies Putnam's renewed leadership in product innovation during 2009. In addition to the four target Absolute Return Funds, Putnam has launched 10 new mutual funds in 2009, including Putnam Spectrum Funds , which invest in the securities of leveraged companies. The actively managed Putnam Global Sector Funds , which target stocks in dynamic sectors across global markets, cover nine sectors across the entire MSCI World Index and can be combined to create a highly customized portfolio.

About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money management firm with over 70 years of investment experience. As of November 30, 2009, Putnam had $114 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Amsterdam, Tokyo, Singapore, and Sydney. For more information, visit to putnam.com.

Putnam's target Absolute Return Funds are not intended to outperform stocks and bonds during strong market rallies.
Consider these risks before investing: Asset allocation decisions may not always be correct and may adversely affect fund performance. The use of leverage through derivatives may magnify this risk. Leverage and derivatives carry other risks that may result in losses, including the effects of unexpected market shifts and/or the potential illiquidity of certain derivatives. International investments carry risks of volatile currencies, economies, and governments, and emerging-market securities can be illiquid. Bonds are affected by changes in interest rates, credit conditions, and inflation. As interest rates rise, prices of bonds fall. Long-term bonds are more sensitive to interest-rate risk than short-term bonds, while lower-rated bonds may offer higher yields in return for more risk. Unlike bonds, bond funds have ongoing fees and expenses. Stocks of small and/or midsize companies increase the risk of greater price fluctuations. 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. Additional risks are listed in the funds' prospectus.

Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in this fund.

* Each RetirementReady Fund has a different target date indicating when the fund's investors expect to retire and begin withdrawing assets from their account. The dates range from 2010 to 2050 in five-year intervals, with the exception of the Maturity Fund, which is designed for investors at or near retirement. The funds are generally weighted more heavily toward more aggressive, higher-risk investments when the target date of the fund is far off, and more conservative, lower-risk investments when the target date of the fund is near. This means that both the risk of your investment and your potential return are reduced as the target date of the particular fund approaches, although there can be no assurance that any one fund will have less risk or more reward than any other fund.The principal value of the funds is not guaranteed at any time, including the target date.

Request a prospectus or a summary prospectus, if available, from your financial representative or by calling Putnam at 1-800-225-1581. These prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.