Consider these risks before investing: Allocation of assets among asset classes may hurt performance. International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Bond prices in the portfolio may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry. The funds' active trading strategy may lose money or not earn a return sufficient to cover associated trading and other costs. 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). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. 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 have illiquidity and volatility risks. The funds may not achieve their goal, and are not intended to be a complete investment program. 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. The funds' efforts to produce lower-volatility returns may not be successful and may periodically make it more difficult for the funds to achieve their targeted return. Under certain market conditions, the funds may accept greater-than-typical volatility to seek their targeted return. You can lose money by investing in the funds. The funds' prospectus lists additional risks.
Past performance is not indicative of future results. Each fund seeks to earn a positive total return that exceeds the rate of inflation by a targeted amount over a reasonable period of time regardless of market conditions. There can be no assurance that a fund will meet its objective. The funds are not intended to outperform stocks and bonds during strong market rallies.
It is not possible to invest directly in an index. Performance shown is not representative of any particular investment.
Compared to traditional investments in small-, mid-, and large-cap growth and value funds, absolute return investing seeks to improve the risk/return profile of a portfolio by pursuing lower volatility than the equity markets and diversification relative to traditional asset classes. With potentially low correlation to traditional asset classes, absolute return may provide attractive return when stocks and/or bonds perform poorly.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, contact your financial representative, call Putnam at 1-888-4-PUTNAM (1-888-478-8626), or click on the prospectus section to view or download a prospectus. Please read the prospectus carefully before investing.
© Putnam Retail Management