Putnam RetirementReady Funds®

Innovation for retirement savers

Putnam RetirementReady Funds now include Putnam Absolute Funds, which are designed to:

  • Seek to protect against the harmful effects of adverse investment returns
  • Pursue positive returns in up and down markets
  • Seek to reduce volatility, particularly as the fund approaches its maturity
  • This is the first — and only — suite of lifecycle funds to integrate these volatility-limiting strategies. Hide full quoteShow full quote
  • I am pleased to announce a significant enhancement to Putnam RetirementReady Funds, our suite of target-date lifecycle funds. Effective immediately, these funds will incorporate a growing allocation to Putnam Absolute Return Funds as part of the underlying the mix of investments.

    Putnam RetirementReady Funds are the first — and only — suite of lifecycle funds to integrate these volatility-limiting strategies alongside more traditional mutual funds. It's part of our commitment to finding new and innovative ways to help investors reach their retirement goals.

    I urge you to watch this video from Jeffrey Knight, Head of Putnam's Global Asset Allocation Team. In it, Jeff explains Putnam's approach to lifecycle investing, the lessons we've drawn from the Crash of 2008, and how Putnam Absolute Return Funds will play a role.

— Robert Reynolds, President and CEO

Built for retirement

Portfolio Manager Jeff Knight explains how Putnam RetirementReady® Funds are specifically designed to cope with market volatility for investors nearing retirement.

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 a money market 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.

Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus containing this and other information for any Putnam fund or product, contact your financial representative, call Putnam at 1-888-4-PUTNAM (1-888-478-8626), or click on the prospectus section to view or download a prospectus. Please read the prospectus carefully before investing.

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