About asset allocation at Putnam

Asset allocation strategies make it possible to invest with a target retirement date or a target level of risk in mind. Putnam’s veteran Global Asset Allocation team manages target-date and target-risk funds that are consistently aligned with long-term goals.

An active allocation manager brings risk awareness

Be assured that navigating risks near, far, and in the future, is a consistent part of our process.

Our target-date funds have a unique glide path, and we offer CITs or mutual funds

Putnam Retirement Advantage Funds (CIT suite)

Eight of our 10 funds rank above Morningstar median for all periods (class I shares as of 08/31/19)

Putnam RetirementReady Funds (mutual fund suite)

Our asset allocation funds offer a choice of risk levels and return objectives

Putnam Dynamic Asset Allocation Funds

Three funds with 4- or 5-star Overall Morningstar ratings (class Y shares as of 08/31/19)

Putnam Retirement Advantage Funds (class I shares) have a record of strong returns versus peers

Morningstar percentile rankings and total return performance for 1-, 3-, 5-, and 10-year periods as of 3/31/19.

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. Performance assumes reinvestment of distributions and does not account for taxes. Performance reflects the impact of a 0.50% management fee and other expenses. In certain cases, your plan’s management fee may be lower and your return higher. For the most recent month-end performance, please call your plan’s toll-free number.

Each RetirementAdvantage Fund has a different target date indicating when the fund’s investors expect to retire and begin withdrawing assets from their account, typically at retirement. The dates range from 2020 to 2060 in five-year intervals, with the exception of the Maturity Fund, which is designed for investors at or near retirement. The funds are generally weighted more heavily toward more aggressive, higher-risk investments when the target date of the fund is far off, and more conservative, lower-risk investments when the target date of the fund is near. This means that both the risk of your investment and your potential return are reduced as the target date of the particular fund approaches, although there can be no assurance that any one fund will have less risk or more reward than any other fund. The principal value of the funds is not guaranteed at any time, including the target date.

The fund is a collective trust managed and distributed by Putnam Fiduciary Trust Company, LLC (”PFTC”), a non-depository New Hampshire trust company. However, it is not FDIC insured; is not a deposit or other obligation of, and is not guaranteed by, PFTC or any of its affiliates. The fund is not a mutual fund registered under the Investment Company Act of 1940, and its units are not registered under the Securities Act of 1933. The fund is only available for investment by eligible, qualified retirement plan trusts, as defined in the declaration of trust and participation agreement.

Inception date for all Retirement Advantage Funds is 1/3/08, except for the 2055 Fund, which is 12/22/10 and the 2060 Fund, which is 2/10/16.

Funds were ranked within the appropriate Morningstar category, specifically: US SA Target-Date 2060+, US SA Target-Date 2055, US SA Target-Date 2050, US SA Target-Date 2045, US SA Target-Date 2040, US SA Target-Date 2035, US SA Target-Date 2030, US SA Target-Date 2025, US SA Target-Date 2020, US SA Target-Date Retirement.

The Morningstar Rating™ 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.

Morningstar rankings for class I shares are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Morningstar. Morningstar rankings may differ significantly from Morningstar’s risk-adjusted star ratings. Past performance is not indicative of future results.

How active managers have outperformed passive portfolios in the multi-asset category

The financial industry debate comparing performance of active and passive management should go beyond a focus on U.S. equity portfolios and also include multi-asset managers.

Read our white paper “Alpha Found” (PDF)

Funds managed by Putnam Global Asset Allocation

Overall Morningstar ratings as of 08/31/19, shown with the Morningstar category and the number of funds in each category.