Active duration strategies during rising rate periods

These Putnam funds outperformed passive indexes when rates rose.

duration Absolute Return 100 Fund Absolute Return 300 Fund Diversified Income Trust
This infographic highlights periods when fund performance was favorable relative to the indexes shown. During other short-term periods, the funds' relative performance may have been less favorable
Bloomberg, Federal Reserve, as of 3/31/17.

Active duration strategies position these funds for rising rates today.

Total return performance as of 3/31/17.

Putnam Absolute Return 100 Fund
Seeks 1% above U.S. T-bills
Putnam Absolute Return 300 Fund
Seeks 3% above U.S. T-bills
BofA Merrill Lynch
U.S. Treasury Bill Index
Putnam Diversified Income Trust
Multi-sector Income
BBG Barclays
U.S. Aggregate Bond Index
At net asset value Class Y shares
Inception date 12/23/08
Class Y shares
Inception date 12/23/08
  Class Y shares
Inception date 7/1/96
1 year 5.06% 8.13% 0.37% 13.17% 0.44%
3 years 1.42% 1.09% 0.20% 1.22% 2.68%
5 years 1.60% 2.39% 0.16% 4.14% 2.34%
10 years 3.91% 4.27%
Life of fund 1.67% 2.73% 0.18% 6.37% 6.36%
Expense ratio 0.38% 0.45%   0.75%  

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 after sales charge assumes reinvestment of distributions and does not account for taxes. After-sales-charge returns reflect a maximum 1.00% load for Absolute Return 100 Fund and 300 Fund and 4.00% for Diversified Income Trust. For a portion of the periods, the funds had expense limitations, without which returns would have been lower. To obtain the most recent month-end performance, visit

Absolute Return funds are not intended to outperform stocks and bonds during strong market rallies.

Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities. BofA Merrill Lynch U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar-denominated U.S. Treasury publicly issued in the U.S. domestic market. Qualifying securities must have a remaining term of at least one month to final maturity and a minimum amount outstanding of $1 billion. You cannot invest directly in an index.

Duration measures the sensitivity of bond prices to interest-rate changes. A negative duration indicates that a security or fund may be poised to increase in value when interest rates increase.

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, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.