RetirementReady 2030 Fund  (PRRQX)

Comprehensively managed portfolios diversified to align with your retirement horizon


Track this fund

Objective

Seeks capital appreciation and current income consistent with a decreasing emphasis on capital appreciation and an increasing emphasis on current income as it approaches its target date.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $23.13
0.04% | $0.01
$23.13
10/16/17
$20.32
11/04/16
Historical fund price

Consistency of positive performance over five years

Performance represents 5-year returns in rolling quarter-end periods since inception.

Performance shown does not reflect the effects of any sales charges. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please click on the performance tab.

16.42%

Best 5-year annualized return

(for period ending 03/31/14)


-1.28%

Worst 5-year annualized return

(for period ending 09/30/11)


5.44%

Average 5-year annualized return


Fund facts as of 09/30/17

Total net assets
$196.52M
Turnover (fiscal year end)
41%
Dividend frequency
Annually
Number of holdings
8
Fiscal year end
July
CUSIP / Fund code
746859818 / 0156
Inception Date
11/01/04
Category
Asset Allocation
Open to new investors
Ticker
PRRQX

Management team


Co-Head of Global Asset Allocation

Co-Head of Global Asset Allocation

Chief Investment Officer, Global Asset Allocation

Co-Head of Global Asset Allocation

Strategy and process

  • Tailored to retirement: Each fund's target date reflects when investors are expected to retire and determines the portfolio's asset allocation.
  • Unique glide path: Allocations over time are structured to pursue performance and downside protection near retirement.
  • Includes Absolute Return: Allocations to alternative strategies enhance diversification and emphasize a low-volatility approach.

Literature

Fund documents

Fact Sheet (Y share) (PDF)
Prospectus (PDF)
Annual Report (PDF)
Semiannual Report (PDF)
Proxy voting results (Form N-PX) (PDF)

Why a meaningful near-term market correction is unlikely
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How the Japan election may influence global interest rates
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Avoiding retirement savings shortfalls requires a team effort
Plan features, employer match, deferral rates, and investor education all work together to help participants avoid retirement savings shortfalls.

Performance

  • Total return (%) as of 09/30/17

  • Annual performance as of 09/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 11.23% 5.71% 8.06% 3.95%
After sales charge 4.83% 3.65% 6.79% 3.33%
S&P 500 Index 18.61% 10.81% 14.22% 7.44%
Bloomberg Barclays U.S. Aggregate Bond Index 0.07% 2.71% 2.06% 4.27%

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 loss when you sell your shares. To obtain the most recent month-end performance, visit putnam.com. Performance assumes reinvestment of distributions and does not account for taxes. Returns before sales charge do not reflect the current maximum sales charges as indicated below. Had the sales charge been reflected, returns would be lower. Returns at public offering price (after sales charge) for class A and class M shares reflect the current maximum initial sales charges of 5.75% and 3.50% for equity funds and Putnam Absolute Return 500 Fund and 700 Fund, and 4.00% and 3.25% for income funds (1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income Fund), respectively. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income Fund, which is 1% in the first year, declining to 0.5% in the second year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, R, T1, and Y shares prior to their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (with the exception of Putnam Tax-Free High Yield Fund and Putnam AMT-Free Municipal Fund, which are based on the historical performance of class B shares). Class R5/R6 shares, available to qualified employee-benefit plans only, are sold without an initial sales charge and have no CDSC. Class Y shares are generally only available for corporate and institutional clients and have no initial sales charge. Performance for Class R5/R6 shares before their inception are derived from the historical performance of class Y shares, which have not been adjusted for the lower expenses; had they, returns would have been higher. Class A, M, and T1 shares of Putnam money market funds have no initial sales charge. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses, without which returns would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 09/30/17 1.15 % -4.67 %
YTD as of 10/16/17 10.41 % 4.06 %

Risk-adjusted performance as of 09/30/17

Alpha (3 yrs.) -0.60
Sharpe ratio (3 yrs.) 0.92
Treynor ratio (3 yrs.) 9.51
Information ratio (3 yrs.) -1.12

Volatility as of 09/30/17

Standard deviation (3 yrs.) 5.93%
Beta 0.57
R-squared 0.92

Capture ratio as of 09/30/17

Up-market (3 yrs.) 58.88
Down-market (3 yrs.) 65.69

Lipper rankings as of 09/30/17

Mixed-Asset Target 2030 Funds Percentile ranking Rank/Funds in category
1 yr. 73% 173/237
3 yrs. 71% 130/183
5 yrs. 56% 84/151
10 yrs. 66% 58/87

Morningstar ratings as of 09/30/17

Target-Date 2030 Rating Funds in category
Overall (188)
3 yrs. (188)
5 yrs. (155)
10 yrs. (89)

Distributions

Record/Ex dividend date 12/30/16
Payable date 12/30/16
Income $0.146
Extra income $0.0
Short-term cap. gain --
Long-term cap. gain --

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Past performance is not indicative of future results.

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The up-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen. The ratio is calculated by dividing the manager’s returns by the returns of the index during the up-market, and multiplying that factor by 100. The down-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has dropped. The ratio is calculated by dividing the manager’s returns by the returns of the index during the down-market and multiplying that factor by 100.


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Holdings

Top holdings as of 09/30/17

Putnam Dynamic Asset Allocation Balanced Fund 43.14%
Putnam Dynamic Asset Allocation Growth Fund 23.70%
Putnam Absolute Return 700 Fund 13.45%
Putnam Absolute Return 500 Fund 6.62%
Putnam Absolute Return 300 Fund 4.88%
Putnam Absolute Return 100 Fund 3.72%
Putnam Government Money Market Fund 3.62%
Putnam Dynamic Asset Allocation Conservative Fund 0.99%

Full portfolio holdings as of 06/30/17

PUTNAM DYNAMIC ASSET ALLOCATION BALANCED FUND 42.94%
PUTNAM DYNAMIC ASSET ALLOCATION GROWTH FUND 23.32%
PUTNAM ABSOLUTE RETURN 700 FUND 13.51%
PUTNAM ABSOLUTE RETURN 500 FUND 6.71%
PUTNAM ABSOLUTE RETURN 300 FUND 5.00%
PUTNAM GOVERNMENT MONEY MARKET FUND 3.81%
PUTNAM ABSOLUTE RETURN 100 FUND 3.80%
PUTNAM DYNAMIC ASSET ALLOCATION CONSERVATIVE FUND 1.00%

Prior top holdings

Top holdings as of 09/30/17
Putnam Dynamic Asset Allocation Balanced Fund 43.14%
Putnam Dynamic Asset Allocation Growth Fund 23.70%
Putnam Absolute Return 700 Fund 13.45%
Putnam Absolute Return 500 Fund 6.62%
Putnam Absolute Return 300 Fund 4.88%
Putnam Absolute Return 100 Fund 3.72%
Putnam Government Money Market Fund 3.62%
Putnam Dynamic Asset Allocation Conservative Fund 0.99%
Top holdings as of 08/31/17
Putnam Dynamic Asset Allocation Balanced Fund 42.96%
Putnam Dynamic Asset Allocation Growth Fund 23.49%
Putnam Absolute Return 700 Fund 13.61%
Putnam Absolute Return 500 Fund 6.70%
Putnam Absolute Return 300 Fund 4.89%
Putnam Absolute Return 100 Fund 3.74%
Putnam Government Money Market Fund 3.67%
Putnam Dynamic Asset Allocation Conservative Fund 1.00%
Top holdings as of 07/31/17
Putnam Dynamic Asset Allocation Balanced Fund 42.98%
Putnam Dynamic Asset Allocation Growth Fund 23.48%
Putnam Absolute Return 700 Fund 13.51%
Putnam Absolute Return 500 Fund 6.68%
Putnam Absolute Return 300 Fund 4.93%
Putnam Absolute Return 100 Fund 3.76%
Putnam Government Money Market Fund 3.69%
Putnam Dynamic Asset Allocation Conservative Fund 1.00%
Top holdings as of 06/30/17
Putnam Dynamic Asset Allocation Balanced Fund 43.17%
Putnam Dynamic Asset Allocation Growth Fund 23.58%
Putnam Absolute Return 700 Fund 13.35%
Putnam Absolute Return 500 Fund 6.61%
Putnam Absolute Return 300 Fund 4.96%
Putnam Absolute Return 100 Fund 3.73%
Putnam Government Money Market Fund 3.63%
Putnam Dynamic Asset Allocation Conservative Fund 1.00%

Percentages based on market value. Portfolio composition will vary over time. Due to rounding, percentages may not equal 100%.

Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. Although the fund seeks to maintain a constant share price of $1.00, it is possible to lose money by investing in this fund.

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Our allocation of assets among permitted asset categories may hurt performance. Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, factors related to a specific issuer or industry and, with respect to bond prices, changing market perceptions of the risk of default and changes in government intervention. These factors may also lead to increased volatility and reduced liquidity in the bond markets. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Investments in small and/or midsize companies increase the risk of greater price fluctuations. 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). Default risk is generally higher for non-qualified mortgages. Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. 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 carry illiquidity and volatility risks. Active trading strategies may lose money or not earn a return sufficient to cover trading and other costs. REITs are subject to the risk of economic downturns that have an adverse impact on real estate markets. Commodity-linked notes are subject to the same risks as commodities, such as weather, disease, political, tax and other regulatory developments and other factors affecting the value of commodities. 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. Efforts to produce lower-volatility returns may not be successful and may make it more difficult at times for the fund to achieve its targeted returns. In addition, under certain market conditions, the funds may accept greater volatility than would typically be the case, in order to seek their targeted return. There is no guarantee that the funds will provide adequate income at and through an investor's retirement. For the portion invested in the Government Money Market fund, these risks also apply: You can lose money by investing in a fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. You can lose money by investing in the fund.


Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 1.23% 1.98% 1.98% 1.73% 1.48% 0.80% 0.98%
What you pay† 1.11% 1.86% 1.86% 1.61% 1.36% 0.68% 0.86%

† The fund's expense ratio is taken from the most recent prospectus and is subject to change. What you pay reflects Putnam Management's decision to contractually limit expenses through 11/30/17

Sales charge/Dealer allowance

 Breakpoint Class A Class B Class C Class M Class R Class R6 Class Y
$0-$49,999 5.75% / 5.00% 0.00% / 4.00% 0.00% / 1.00% 3.50% / 3.00% -- -- --
$50,000-$99,999 4.50% / 3.75% 0.00% / 4.00% 0.00% / 1.00% 2.50% / 2.00% -- -- --
$100,000-$249,999 3.50% / 2.75% -- 0.00% / 1.00% 1.50% / 1.00% -- -- --
$250,000-$499,999 2.50% / 2.00% -- 0.00% / 1.00% 1.00% / 1.00% -- -- --
$500,000-$999,999 2.00% / 1.75% -- 0.00% / 1.00% 1.00% / 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 Class M Class R Class R6 Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- -- --
9 to 12 mts. 0.00% 5.00% 1.00% -- -- -- --
2 yrs. -- 4.00% 0.00% -- -- -- --
3 yrs. -- 3.00% 0.00% -- -- -- --
4 yrs. -- 3.00% 0.00% -- -- -- --
5 yrs. -- 2.00% 0.00% -- -- -- --
6 yrs. -- 1.00% 0.00% -- -- -- --
7+ yrs. -- 0.00% 0.00% -- -- -- --

Trail commissions

  Class A Class B Class C Class M Class R Class R6 Class Y
  0.25% 0.25% 1.00% 0.65% 0.50% 0.00% 0.00%
  NA NA NA NA NA NA NA
  NA NA NA NA NA NA NA

For sales and trail commission information on purchases over $1 million and participant-directed qualified retirement plans, see a Putnam fund prospectus and the statement of additional information.

The S&P 500 Index is an unmanaged index of common stock performance. The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities. You cannot invest directly in an index.

Consider these risks before investing: Our allocation of assets among permitted asset categories may hurt performance. Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, factors related to a specific issuer or industry and, with respect to bond prices, changing market perceptions of the risk of default and changes in government intervention. These factors may also lead to increased volatility and reduced liquidity in the bond markets. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Investments in small and/or midsize companies increase the risk of greater price fluctuations. 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). Default risk is generally higher for non-qualified mortgages. Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. 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 carry illiquidity and volatility risks. Active trading strategies may lose money or not earn a return sufficient to cover trading and other costs. REITs are subject to the risk of economic downturns that have an adverse impact on real estate markets. Commodity-linked notes are subject to the same risks as commodities, such as weather, disease, political, tax and other regulatory developments and other factors affecting the value of commodities. 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. Efforts to produce lower-volatility returns may not be successful and may make it more difficult at times for the fund to achieve its targeted returns. In addition, under certain market conditions, the funds may accept greater volatility than would typically be the case, in order to seek their targeted return. There is no guarantee that the funds will provide adequate income at and through an investor's retirement. For the portion invested in the Government Money Market fund, these risks also apply: You can lose money by investing in a fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. You can lose money by investing in the fund.

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