Putnam 529 Income

Putnam Income Fund Investment Option invests in Putnam Income Fund, which invests mainly in securitized debt instruments (such as mortgage-backed investments) and other obligations of companies and governments worldwide denominated in U.S. dollars, are either investment-grade or below investment-grade (sometimes referred to as "junk bonds") and have intermediate to long maturities (three years or longer).

Fund Description

The Individual Fund Investment Options enable Account Owners to build portfolios concentrating on specific asset classes such as large capitalization equity growth, international equity or investment grade fixed income. Doing so permits Account Owners to tailor investments to their specific investment needs and objectives that may not be met by the broader Asset Allocation Investment Options.

Management team

Data is historical. Past performance is not a guarantee of future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions. Returns after sales charge for class A shares reflect a sales charge of 5.75% for the Goal-Based, Age-Based, Absolute Return 500 and 700 funds, and Equity Asset Class Options, and 4.00% for the Fixed-Income Asset Class Option. The Government Money Market option does not have an initial sales charge or CDSC, and Absolute Return 100 and 300 Funds initial sales charge is 1.00%. Performance reflects ongoing fees and expenses, including an annualized 0.20% fee charged by the College Savings Plans of Nevada and the Nevada College Savings Trust Fund and the fees and other expenses of the Putnam Mutual Funds in which the plan invests. The funds' expense ratios are taken from the most recent prospectus and are subject to change.

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. Please see the offering statement for more information.

Fund Facts as of 10/31/17

Fiscal Year End June
Category Fixed Income
Product Status Open to new investors
Inception 10/01/10
Fund Code 4160
CUSIP 74675T873
Number of Accounts 648
Outstanding Shares 400,294
Total Net assets $5.16M

Literature


Performance

Total Return (%) as of 09/30/17

Annualized Performance 1 yr. 3 yrs. 5 yrs. Life (inception: 10/01/10)
Putnam 529 Income (after sales charge) -1.39% 0.12% 1.73% 3.06%
Putnam 529 Income (before sales charge) 2.72% 1.50% 2.57% 3.66%

Annual Performance as of 09/30/17

  2011 2012 2013 2014 2015 2016
Putnam 529 Income (before sales charge) 4.73% 10.57% 1.82% 5.03% -1.87% 1.90%

Pricing as of 11/22/17

Class Before Sales Charge NAV CHANGE After Sales Charge 52 Week High NAV
(Date)
52 Week Low NAV
(Date)
A $12.93 $0.01 $13.47 $12.94 (10/17/17) $12.11 (11/25/16)

Data is historical. Past performance is not a guarantee of future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions. Returns after sales charge for class A shares reflect a sales charge of 5.75% for the Goal-Based, Age-Based, Absolute Return 500 and 700 funds, and Equity Asset Class Options, and 4.00% for the Fixed-Income Asset Class Option. The Government Money Market option does not have an initial sales charge or CDSC, and Absolute Return 100 and 300 Funds initial sales charge is 1.00%. Performance reflects ongoing fees and expenses, including an annualized 0.20% fee charged by the College Savings Plans of Nevada and the Nevada College Savings Trust Fund and the fees and other expenses of the Putnam Mutual Funds in which the plan invests. The funds' expense ratios are taken from the most recent prospectus and are subject to change.

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. Please see the offering statement for more information.


Performance Snapshot

  Before sales charge After sales charge
Monthly 0.31 % -3.70 %
as of 10/31/17
YTD 5.04 % 0.84 %
as of 11/22/17

Holdings

Top Holdings as of 10/31/17

Putnam Income Fund-Y 99.62%
Putnam Govt Mmkt Fnd-A 0.46%
Top holdings, total: 100.08%

Portfolio Composition as of 10/31/17

.
Agency pass-through 56.21%
Commercial MBS 33.60%
Investment-grade corporate bonds 24.96%
Agency CMO 18.54%
Net cash 11.49%
Residential MBS (non-agency) 9.81%
Asset-backed securities (ABS) 0.54%
Emerging-market bonds 0.52%
Municipal bonds 0.20%
 
Other
-2.18%
U.S. Treasury/agency 0.03%
High-yield corporate bonds -2.21%

Expenses

Expense ratio

Class A† Class B Class C
Total expense ratio 1.01% 1.76% 1.76%
What you pay 1.01% 1.76% 1.76%

Sales Charges / Dealer Allowance

Breakpoint Class A† Class B Class C
$0-$49,999 4.00% / 3.50% 0.00% / 4.00% 0.00% / 1.00%
$50,000-$99,999 4.00% / 3.50% 0.00% / 4.00% 0.00% / 1.00%
$100,000-$249,999 3.25% / 2.75% -- 0.00% / 1.00%
$250,000-$499,999 2.50% / 2.00% -- 0.00% / 1.00%
$500,000-$999,999 0.00% / 1.00% -- --
$1m-$4m 0.00% / 1.00% -- --
$4m-$50m 0.00% / 0.50% -- --
$50M+ 0.00% / 0.25% -- --

CDSC

  Class A†
(sales for $1,000,000+ )
Class B Class C
0 to 9 mts. 1.00% 5.00% 1.00%
9 to 12 mts. 0.00% 5.00% 1.00%
2 yrs. -- 4.00% --
3 yrs. -- 3.00% --
4 yrs. -- 3.00% --
5 yrs. -- 2.00% --
6 yrs. -- 1.00% --
7+ yrs. -- 0.00% --

Trail Commissions

  Class A† Class B Class C
  0.25% 0.25% 1.00%
  NA NA NA
  NA NA NA

† For exceptions to sales load, dealer reallowance and trail commission information set forth above, see the Offering Statement.

Portfolio characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. 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. 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.

Robert Kea will retire from Putnam effective 12/31/17.