Pricing policies

The following overview provides general information about sales charges for the Putnam funds, as different share classes offer different sales charge arrangements. This overview also describes several “breakpoint discounts” that shareholders can use to reduce the sales charges they pay when they purchase class A shares. The "breakpoint discounts" described below may not apply to customers purchasing shares through certain financial intermediaries. For more information, please refer to the appropriate fund prospectus or Statement of Additional Information (SAI).

Mutual funds

Combined purchase privilege

Shareholders may be eligible for a reduced sales charge on their investments in class A shares by combining their present purchase of shares with purchases of other Putnam mutual fund shares (except money market funds) made at the same time, including purchases made through financial advisors. The sales charge applicable to the total amount purchased will be applied to each of the present purchases. Individuals may also combine purchases with investments made by a spouse and minor children.

Cumulative discount

Shareholders can also qualify for a breakpoint discount by combining, or linking, the value of a new Putnam investment with that of their existing Putnam accounts and the accounts of their spouse and minor children. Investments in Putnam money market funds are not eligible to be linked, except for those shares acquired by exchange from other Putnam funds. Putnam automatically links accounts of shareholders with the same last name and address. In certain instances, Putnam may ask for supporting documentation regarding the source of funds used to establish linked accounts. In return, the sales charge applicable to the total value of these accounts is applied.

For purposes of calculating the value of existing accounts, Putnam will use the greater of (a) the value of the previously purchased shares at the current maximum offering price or (b) the initial value of the total purchases (minus redemptions of previously purchased shares). Advisors and shareholders should be prepared to present records identifying the historical cost of shares previously purchased, as Putnam may not maintain this information. In order to link accounts to take advantage of the rights of accumulation feature, Putnam must be notified of existing accounts at the time of purchase.

Letter of intent

Another method to reduce sales charges for class A shares is by using a letter of intent. By signing a letter of intent, shareholders agree to invest a minimum dollar amount over 13 months. In return, the sales charge applicable to the total amount invested is applied to each separate investment, meaning that shareholders may pay a lower sales charge. Shareholders may utilize this feature by completing the appropriate portions of the standard application form or by sending a separate document. No credit is given for purchases of shares in Putnam Money Market Fund. If the shareholder does not purchase the stated amount of shares within 13 months, Putnam will deduct from the shareholder’s account an amount equal to the higher sales charge the shareholder would have paid in the absence of the statement of intention.

Eligible accounts

The following types of accounts may be linked for purposes of qualifying for breakpoint discounts:

  • Individual accounts
  • Joint accounts
  • Putnam 529 for America savings plan accounts
  • IRA accounts (some restrictions may apply)
  • Shares owned through dealer-name accounts (with documentation that identifies beneficial ownership of shares)

Share classes: Differences in breakpoints and sales charges

Putnam offers a variety of fund share classes — A, B, C, R (for certain retirement plans), R6, and Y — which offer different structures of breakpoints and sales charges.

Class A shares

Class A shares are sold with a sales charge at the time of purchase. Larger investments can qualify for breakpoint discounts. Class A shares do not have a deferred sales charge (except on certain redemptions of shares bought without an initial sales charge). Class A shares have lower 12b-1 fees than class C shares, and therefore have lower annual expenses and a higher yield.

The following tables show how sales charges of class A shares vary across funds based on investment levels.

Growth, value, blend, global sector, and asset allocation funds — class A

Amount invested Sales charge Dealer commission
Under $50,000 5.75% 5.00%
$50,000 to $99,999 4.50 3.75
$100,000 to $249,999 3.50 2.75
$250,000 to $499,999 2.50 2.00
$500,000 to $999,999 2.00 1.75
$1 million to $4 million 1.00
$4 million to $50 million 0.50
$50 million and over 0.25

Taxable income funds and Sustainable Retirement Maturity Fund — class A

Amount invested Sales charge Dealer commission
Under $50,000 4.00% 3.50%
$50,000 to $99,999 4.00 3.50
$100,000 to $249,999 3.25 2.75
$250,000 to $499,999 2.50 2.00
$500,000 to $999,999 1.00
$1 million to $4 million 1.00
$4 million to $50 million 0.50
$50 million and over 0.25

Tax-free income funds except Short-Term Municipal Income Fund and Strategic Intermediate Municipal Fund — class A

Amount invested Sales charge Dealer commission
Under $50,000 4.00% 3.50%
$50,000 to $100,000 3.25 2.75
$100,000 to $250,000 2.50 2.00
$250,000 to $500,000 1.00
$500,000 to $1 million 1.00
$1 million to $4 million 1.00
$4 million to $50 million 0.50
$50 million + 0.25

Short-Term Municipal Income Fund, and Strategic Intermediate Municipal Fund — class A

Amount invested Sales charge Dealer commission
Under $50,000 2.25% 2.00%
$50,000 to $99,999 2.25 2.00
$100,000 to $249,999 1.25 1.00
$250,000 to $499,999 1.00
$500,000 to $999,999 1.00
$1 million to $4 million 1.00
$4 million to $50 million 0.50
$50 million and over 0.25

Short Duration Bond Fund — class A

Amount invested Sales charge Dealer commission
Under $50,000 2.25% 2.00%
$50,000 to $99,999 2.25 2.00
$100,000 to $249,999 1.25 1.00
$250,000 to $499,999 0.75
$500,000 to $999,999 0.75
$1 million to $4 million 0.75
$4 million to $50 million 0.50
$50 million and over 0.25

Floating Rate Income Fund — class A

Amount invested Sales charge Dealer commission
Under $50,000 2.25 2.00
$50,000 to $99,999 2.25 2.00
$100,000 to $249,999 1.75 1.50
$250,000 to $499,999 1.25 1.00
$500,000 to $999,999 1.00
$1 million to $4 million 1.00
$4 million to $50 million 0.50
$50 million and over 0.25

Class B shares

Purchases of class B shares are closed to new and existing investors, except by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment. Class B shares are sold without an initial sales charge, but are assessed a CDSC payable upon redemption if sold within six years (see schedule below). Class B shares have higher 12b-1 fees, and therefore higher annual expenses and a lower yield than class A shares. For most funds, Class B shares automatically convert to class A shares no later than the end of the month eight years after the purchase date, thereby reducing the 12b-1 fee. Class B shares of certain funds may convert earlier.

Year 1 2 3 4 5 6 7+
Charge 5% 4% 3% 3% 2% 1% 0%

Putnam Money Market Fund class B shares can only be purchased as a part of a systematic exchange to or from another class B share fund.

Dealers with service agreements with Putnam Retail Management receive a 4% commission on purchases of class B shares on all Putnam funds except Putnam Money Market Fund and Putnam Floating Rate Income Fund (see below). For tax-exempt funds, this commission includes a 0.20% pre-paid service fee only to those dealers. Redemptions of class B shares within six years of purchase are subject to a contingent deferred sales charge. FINRA rules require disclosure of the contingent deferred sales charge before completing a sale. See the prospectus for details.

Class C shares

Class C shares are sold without an initial sales charge. However, there is a 1% CDSC if shares are sold within one year of purchase. Class C shares have higher expenses and a lower yield than class A shares due to a higher 12b-1 fee. Effective April 1, 2018, class C shares will automatically convert to class A shares after ten years, provided that the fund or financial intermediary through which a shareholder purchased class C shares has records verifying that the class C shares have been held for at least ten years, and class A shares are available for purchase by residents in the shareholder's jurisdiction. Dealers receive 1% commission at the time of sale and 1% service fee and trail commission annually starting in the 13th month. Putnam Money Market Fund class C shares pay 0.50% in service fees.

Class R shares

Class R shares, which are not subject to sales charges or a CDSC, are available for many Putnam funds to investment-only qualified employee benefits plans. They maintain lower annual expenses and a higher yield than class B and class C shares because of a lower 12b-1 fee, but higher annual expenses and a lower yield than class A shares because of a higher 12b-1 fee.

Reinstatement privilege

A shareholder who has redeemed shares of a fund can reinvest the proceeds in the same class of the fund within 90 days, with no applicable sales charge. There are no restrictions on the number of times shareholders can take advantage of the reinstatement privilege.