The Putnam Balanced Income Model Index is a benchmark administered by Putnam Management, comprising 67% the Bloomberg U.S. Aggregate Bond Index, 16.5% the Russell 3000 Index, 13% the Bloomberg U.S. Corporate High Yield Index, and 3.5% the MSCI EAFE Index (ND). The custom index is rebalanced on a quarterly basis. Indexes are unmanaged and do not incur expenses. You cannot invest directly in an index.
The Bloomberg U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities. The Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies. The Bloomberg U.S. Corporate High Yield Index measures the USD-denominated, high yield, fixed-rate corporate bond market. The MSCI EAFE Index is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australasia.
Putnam Multi-Asset Model Portfolios invest in non-Putnam exchange-traded funds and exclusively in Putnam mutual funds. Putnam does not currently charge overlay fees for portfolio management of the Putnam Multi-Asset Model Portfolios; however, it earns fees from the Putnam mutual funds in which the Portfolios invest. Asset allocation strategies and diversification do not assure a profit and do not protect against loss. As with any investment, there is a potential for profit as well as the possibility of loss.
When selecting active funds for inclusion in a Putnam Multi-Asset Model Portfolio, Putnam generally expects to select a proprietary fund without considering or canvassing the universe of all investable funds for inclusion in the model portfolio. To the extent that an appropriate proprietary fund is not available, only then will Putnam consider passive ETFs for inclusion in the model portfolio. Passive ETFs are non-Putnam products and are selected for inclusion based on several characteristics, such as fund expenses, liquidity, and desired asset class exposure. Any passive ETF used in the Multi-Asset Model Portfolios shall be selected by Putnam, in its sole discretion. Putnam does not currently charge overlay fees for portfolio management of the Putnam Multi-Asset Model Portfolios; however, it earns fees from the Putnam mutual funds in which the Portfolios invest. Prior to making any investment or financial decisions, any recipients of this material should evaluate the overall fees and charges of the firm as well as the services provided.
Putnam Multi-Asset Model Portfolios are provided for illustrative and educational purposes only, do not constitute personalized investment advice or an investment recommendation from Putnam and are intended for use only by financial professionals, with other information, as a resource to help build a portfolio or as an input in the development of investment advice for its own clients. The implementation of, or reliance on, a model portfolio strategy is left to the discretion of the financial professional. Such financial professionals are responsible for making their own independent judgment as to how to use Putnam's Multi-Asset Model Portfolios. Putnam does not have investment discretion over or place trade orders for any portfolios or accounts derived from the Putnam Multi-Asset Model Portfolios.
Investing involves risk, including the loss of principal. Risks apply to those underlying funds in the allocation of the models, there is no guarantee the funds' investment objectives will be achieved. Carefully consider the funds within the model portfolios' investment objectives, risk factors, and chargers and expenses before investing. This and other information can be found in the funds' prospectuses which may be obtained by visiting the respective fund information page or fund family websites. Our allocation of investments among the underlying funds may hurt performance. Therefore, the model portfolio's performance is subject to the risks that may affect the performance of the underlying funds. In addition, investors will bear the fees and expenses of the underlying funds included in the models.