Retirement Advantage 2040 Trust (Class X)

Comprehensively managed portfolios diversified to align with your retirement horizon

Retirement Advantage 2040 Trust received an  Overall Morningstar Rating™  of  

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Retirement Advantage 2040 Trust

Highlights

Objective

Retirement Advantage Trusts seek to maximize returns while maintaining a level of risk appropriate for a person planning to retire on or about the calendar year designated in each trust's name.

Strategy and process

  • Tailored to retirement Each trust's target date reflects when investors are expected to retire and determines the portfolio's asset allocation.
  • Unique glide path Allocations are structured to pursue performance and downside protection near retirement.
  • Comprehensively managed Putnam's seasoned Global Asset Allocation team implements all steps of the investment process - the glide path, tactical allocations, and security selection.
  • Competitive CIT structure The trusts offer lower fee structure and the less complex administrative requirements of a collective investment trust, along with flexible pricing options.

Fund price

 Yesterday’s close 52-week high 52-week low
Net asset value $22.97
-1.33% | $-0.31 		$24.42
11/08/21 		$20.80
01/29/21
(Optional)

Fund facts as of 12/31/21

Total net assets
$872.28M
Turnover (fiscal year end)
52%
Dividend frequency
--
Number of holdings
3
Fiscal year-end
September
CUSIP / Fund code
74674P815 / 2407
Inception date
01/05/18
Class X  
Category
Target Date
Open to new investors
Ticker
--

Management team

Robert J. Schoen

Co-Chief Investment Officer, Global Asset Allocation

Brett S. Goldstein, CFA

Co-Chief Investment Officer, Global Asset Allocation

Adrian H. Chan, CFA

Portfolio Manager

James A. Fetch

Co-Head of Global Asset Allocation

Jason R. Vaillancourt, CFA

Co-Head of Global Asset Allocation

Literature

Revisiting the rates conundrum
Bond bears expecting bad news in 2022 should think about the stubbornly low yields of the past two decades.
Inflation risk for retirement savers calls for an active approach
With inflation on the rise in 2021, we explain our analysis of long-term inflation hedges and why we favor more dynamic strategies.

Performance

  • Total return (%) as of 12/31/21

  • Annual performance as of 12/31/21

Annualized Total return (%) as of 12/31/21

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
At net asset value 16.71% 17.59% 12.27% 12.17%
Custom Retirement Advantage 2040 Index 15.79%18.52%13.29%12.08%

Data is historical. Past performance is not a guarantee of future results. More recent returns may be more or less than those shown. Investment return will fluctuate. Performance assumes reinvestment of distributions and does not account for taxes. Performance data reflects the impact of a 0.50% management fee for class I shares, a 0.60% management fee for class II shares, a 0.75% management fee for class III shares, a 0.90% management fee for class IV shares, a 1.05% management fee for class V shares, and a 0.35% management fee for class X shares. 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. Please note, as of December 31, 2018, Putnam has restated performance for the Custom Retirement Advantage 2025 Index and Custom Retirement Advantage Maturity Index. Restated returns reflect a correction to the allocation of the custom benchmarks to align with the portfolios’ strategic weights. 

Performance snapshot

  At net asset value  
1 mt. as of 12/31/21 3.05%
YTD as of 01/21/22 -5.51%

Morningstar Ratings™ as of 12/31/21

Time period Funds in category Morningstar Rating™
Overall 202
3 yrs. 202
5 yrs. 167
10 yrs. 93
Morningstar category: Target-Date 2040

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.

Holdings

Putnam Retirement Advantage GAA Growth Trust 81.58%
Putnam Retirement Advantage GAA Balanced Trust 15.89%
Xg9 Ra Fof 732 Gic Fund Dst 5539 2.57%