Putnam target-date strategies
Investment diversification tailored for retirement.
Target-date portfolios can anchor a retirement plan with consistent diversification
Any workplace savings plan should offer a number of investment options. Among these options, a target-date strategy offers portfolio diversification across stocks and bonds that may be attractive to people who do not want to place all eggs in one basket.
Diversification does not guarantee a profit or ensure against loss. It is possible to lose money in a diversified portfolio.
The key structural component is the glide path
Our glide path seeks reduced risk
The glide path guides the mix of stocks and bonds in each portfolio over time. As investors approach retirement, Putnam's target-date glide path shifts more assets toward fixed income than the industry average, according to Putnam's research.
Along the glide path, we make tactical allocations
With the glide path as a consistent reference point, the portfolio managers can add or subtract up to 15% to the stock or bond weightings based on their analysis of market opportunities and risks.
Within each asset class, we select securities
The portfolio managers analyze stocks and bonds to choose securities to buy and sell for the portfolios. Managing this level of selection gives them greater control of portfolio risks and enhances efficiency.
A long-tenured portfolio team offers experience in the markets to serve retirement investors
Putnam's Global Asset Allocation team manages our target-date strategies. It is one of the industry's longest-tenured teams dedicated to diversified strategies, with a track record of more than two decades.
Robert J. Schoen, Chief Investment Officer, Global Asset Allocation
Mr. Schoen is Chief Investment Officer, Global Asset Allocation, and a member of Putnam’s Operating Committee.
James A. Fetch, Co-Head of Global Asset Allocation
Mr. Fetch is a Co-Head of Global Asset Allocation. In partnership with other GAA Co-Heads, he is responsible for overall strategy and positioning of Putnam’s GAA products.
Jason R. Vaillancourt, CFA, Co-Head of Global Asset Allocation
Mr. Vaillancourt is Co-Head of Global Asset Allocation. In partnership with the other GAA Co-Heads, he is responsible for the overall strategy and positioning of Putnam’s GAA products.
Brett S. Goldstein, CFA, Portfolio Manager Global Asset Allocation
Mr. Goldstein is a Portfolio Manager in the Global Asset Allocation (GAA) group.
A choice of target-date suites
|Investment vehicle||Collective Investment Trusts (CITs)||Mutual Funds||Mutual Funds|
|Suite name||Putnam Retirement Advantage Trust||Putnam Retirement Advantage Funds||Putnam RetirementReady Funds|
|Available to qualified retirement plans||Yes||Yes||Yes|
|Available to IRAs and taxable accounts||No||Yes||Yes|
|Includes absolute return strategy seeking reduced volatility||No||No||Yes|
|Putnam glide path||Yes||Yes||Yes|
|Fees||Flexibility to offer level expense structure across every portfolio||Expenses vary across portfolios based on equity allocations||Expenses vary across portfolios based on equity allocations|
With the extreme swings in the market over the last few weeks, several of Putnam’s senior fixed-income managers shared their insights on the bond markets.
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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. You can lose money by investing in the funds.
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