Engagement and Stewardship Report

At Putnam, we are driven by our commitment to active investing and its potential to create valuable products, pursue strong performance, and steward long-term investments with care. We have a strong foundation in our unwavering focus on thoughtful, consistent, and materiality-based sustainability frameworks. In addition, we continue to ask better questions and seek deeper, actionable insights. Our current global environment demands no less.

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Philosophy

Our commitment to clients is the foundation of all we do. As active managers, we are committed to conducting thorough research and to incorporating fundamental insight into all our activities and decisions.

Engagement approach

Our engagement takes several forms, and all engagement activity is undertaken with the goal of benefiting our clients and shareholders through long-term financial performance.

Engagement through our investment process

Most of our investment engagement is private and direct with company management and directors. Our investment team sends annual, individually tailored letters to the CEOs of Putnam’s top holdings.

Engagement through the proxy-voting process

Proxy voting is a cornerstone of strong governance and effective engagement. The proxy policy and the proxy-voting process are undertaken with the consistent goal of promoting strong corporate governance, acting in the best interests of our shareholders and clients.

Engagement through partnership and collaboration

The field of investing is actively growing and evolving, and collaborations are essential to its advancement. Putnam partners with a variety of organizations to support areas of critical importance to our clients, the industry, and the broader community.

Appendix

A detailed review of material sustainability issues addressed in 2022 Putnam letters to corporate CEOs.