Putnam 529 Absolute Return 100

Putnam Absolute Return 100 Fund Investment Option invests in Putnam Absolute Return 100 Fund, which seeks to earn a positive total return that exceeds the rate of inflation by 100 basis points (or 1.00%) on an annualized basis over a reasonable period of time (generally at least three years or more), regardless of market conditions.

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 Absolute Return
Product Status Open to new investors
Inception 10/01/10
Fund Code 4175
CUSIP 74675T618
Number of Accounts 117
Outstanding Shares 102,013
Total Net assets $1.10M

Literature


Performance

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

Annualized Performance 1 yr. 3 yrs. 5 yrs. Life (inception: 10/01/10)
Putnam 529 Absolute Return 100 (after sales charge) 2.32% 0.93% 1.15% 0.95%
Putnam 529 Absolute Return 100 (before sales charge) 3.35% 1.27% 1.35% 1.09%

Annual Performance as of 09/30/17

  2011 2012 2013 2014 2015 2016
Putnam 529 Absolute Return 100 (before sales charge) -2.08% 2.63% 1.58% 0.58% -0.68% 2.04%

Pricing as of 11/17/17

Class Before Sales Charge NAV CHANGE After Sales Charge 52 Week High NAV
(Date)
52 Week Low NAV
(Date)
A $10.79 $0.00 $10.90 $10.80 (10/31/17) $10.46 (11/17/16)

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 0.09 % -0.91 %
as of 10/31/17
YTD 2.76 % 1.73 %
as of 11/17/17

Holdings

Top Holdings as of 10/31/17

Absolute Return 100 Fund
Portfolio composition as of 10/31/17
Investment-grade corporate bonds
35.65%
Net cash
33.60%
Commercial MBS
19.51%
Residential MBS (non-agency)
5.74%
Emerging-market bonds
4.56%
Agency CMO
3.10%
Agency pass-through
2.42%
Asset-backed securities (ABS)
1.27%
High-yield corporate bonds
0.10%
U.S. Treasury/agency
0.03%
Composition will vary over time.
99.62%
Putnam Govt Mmkt Fnd-A 0.46%
Top holdings, total: 100.08%

Portfolio Composition as of 10/31/17

Investment-grade corporate bonds 35.50%
Net cash 33.91%
Commercial MBS 19.43%
Residential MBS (non-agency) 5.72%
Emerging-market bonds 4.54%
Agency CMO 3.09%
Agency pass-through 2.41%
Asset-backed securities (ABS) 1.26%
High-yield corporate bonds 0.10%
 
Other
0.03%
U.S. Treasury/agency 0.03%

Expenses

Expense ratio

Class A† Class B Class C
Total expense ratio 0.77% 0.97% 0.97%
What you pay 0.77% 0.97% 0.97%

Sales Charges / Dealer Allowance

Breakpoint Class A† Class B Class C
$0-$49,999 1.00% / 1.00% 0.00% / 1.00% 0.00% / 1.00%
$50,000-$99,999 1.00% / 1.00% 0.00% / 1.00% 0.00% / 1.00%
$100,000-$249,999 1.00% / 1.00% -- 0.00% / 1.00%
$250,000-$499,999 1.00% / 1.00% -- 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 $500,000+ )
Class B Class C
0 to 9 mts. 1.00% 1.00% 1.00%
9 to 12 mts. 0.00% 1.00% 1.00%
2 yrs. -- 0.50% --
3 yrs. -- -- --
4 yrs. -- -- --
5 yrs. -- -- --
6 yrs. -- -- --
7+ yrs. -- -- --

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%.

Yield more closely reflects current performance than total return.

Consider these risks before investing: Allocation of assets among asset classes may hurt performance. Bond prices in the portfolio may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry. The fund's active trading strategy may lose money or not earn a return sufficient to cover associated trading and other costs. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk and the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise. International investing involves currency, economic, and political risks. Emerging-market securities have illiquidity and volatility risks. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The fund may not achieve its goal, and it is not intended to be a complete investment program. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. The fund's efforts to produce lower-volatility returns may not be successful and may periodically make it more difficult for the fund to achieve its targeted return. Under certain market conditions, the fund may accept greater-than-typical volatility to seek its targeted return. You can lose money by investing in the fund. The fund's prospectus lists additional risks.

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