Putnam Spectrum Funds
Seeking returns from opportunities
in leveraged companies
With a career that spans the history of
leveraged investing, portfolio manager David Glancy has deep expertise and specialized skills.
Putnam Capital Spectrum FundTargets total return with a focus on of companies that use debt or preferred stock as a tool to improve their business performance. The fund manager has flexibility to select the most attractive securities in a company's capital structure, including common or preferred stocks, bonds, bank loans, and convertibles.  Putnam Equity Spectrum FundTargets capital appreciation with a focus of stocks of companies that use debt or preferred stock as a tool to improve their business performance. Attracting little research coverage, stocks of leveraged companies can be significantly mispriced, offering the potential to outperform broad market averages. 
Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or a loss when you sell your shares. Performance of class A shares before sales charge assumes reinvestment of distributions and does not account for taxes. After-sales-charge returns reflect a maximum 5.75% load. The short-term results of a relatively new fund are not necessarily indicative of its long-term prospects. A 1% short-term trading fee may apply. To obtain the most recent month-end performance, visit putnam.com. S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index. JPMorgan Developed High Yield Index is an unmanaged index of high-yield fixed-income securities issued in developed countries. You cannot invest directly in an index. Indexes are unmanaged and used as a broad measure of market performance. It is not possible to invest directly in an index. Past performance is not indicative of future results. Lipper rankings for class A shares are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. |
Product InformationFund Fact Sheets (pdf)Literature (pdf) |
Consider these risks before investing: The funds invest some or all of their assets in small and/or midsize companies with leveraged capital structures. Such investments increase the risk of greater price fluctuations.
The funds invest in relatively few issuers and involve more risk than funds that invest more broadly.
Funds that invest in securities of leveraged companies involve the risk that the securities of leveraged companies will be more sensitive to issuer, political, market, and economic developments than the market as a whole and the securities of other types of companies. Investments in securities of leveraged companies are likely to be more volatile than investments in companies that are not leveraged. The funds may focus investments in types of securities — equities, fixed income, or bank loans — that underperform relative to, or are more volatile than, other types of securities.
Funds that engage in short sales of securities may incur losses if the securities appreciate in value and may experience higher volatility due to leverage resulting from investing the proceeds of securities sold short. When short-selling, investors sell borrowed shares, hoping to repurchase them at a lower price before returning them to the lender.
Additional risks associated with Putnam Capital Spectrum Fund: 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. Mortgage-backed securities are subject to prepayment risk.
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, click on the prospectus section or call your financial representative or call Putnam at 1-800-225-1581. Please read carefully the prospectus if available before investing.
Putnam Retail Management