Putnam Spectrum Funds demonstrate the potential of leveraged-company investing.

Portfolio Manager: David L. Glancy

Diversification potential

Leveraged-company funds can have different performance characteristics than the broad stock and bond markets.

Strong performance record

Putnam Spectrum Funds have beaten their benchmarks over the 1-year and life-of-fund periods ended 3/31/12 (class A shares before sales charge).

Manager expertise

Putnam Spectrum Funds’ Portfolio Manager David Glancy has been investing in leveraged companies since the 1980s.

Cumulative returns since inception

Class A shares
(5/18/09–3/31/12)

Putnam Capital Spectrum Fund »

Targets total return with flexibility to invest in common and preferred stocks, bonds, bank loans, or convertible securities of leveraged companies.

As of 3/31/12

Class A shares inception 5/18/09	Before sales charge	After sales charge	Capital Spectrum Blended Index (50% S&P 500 Index/50% JPMorgan Developed High Yield Index)
1 year	12.12%	5.65%	8.82%
Life of fund	25.46	22.89	20.04

Total expense ratio: 1.38%

Putnam Equity Spectrum Fund »

Targets capital appreciation with a focus on stocks of leveraged companies.

As of 3/31/12

Class A shares inception 5/18/09	Before sales charge	After sales charge	S&P 500 Index
1 year	15.51%	8.88%	8.54%
Life of fund	29.89	27.22	18.90

Total expense ratio: 1.58%

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 assumes reinvestment of distributions and does not account for taxes. After-sales-charge returns reflect a maximum 5.75% load. 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. JPMorgan Developed High Yield Index is an unmanaged index of high-yield fixed-income securities issued in developed countries. 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.

Consider these risks before investing: Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Our focus on leveraged companies and the fund’s “non-diversified” status can increase the fund's vulnerability to these factors. Our use of short selling may increase these risks.

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. 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. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Our focus on leveraged companies and the fund’s “non-diversified” status can increase the fund’s vulnerability to these factors. Our use of short selling may increase these risks.