Putnam 529 Fixed Income Absolute Return

Putnam Fixed Income Absolute Return Fund Investment Option invests in Putnam Fixed Income Absolute Return Fund, which seeks to earn a positive total return.

Fund Description

The Individual Fund Investment Options enable Account Owners to build portfolios concentrating on specific asset classes such as large capitalization equity growth, international equity or investment grade fixed income. Doing so permits Account Owners to tailor investments to their specific investment needs and objectives that may not be met by the broader Asset Allocation Investment Options.

Management team

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. Returns after sales charge for class A shares reflect the current maximum initial sales charges of 5.75% for the Goal-Based and Age-Based options, the Equity Asset Class options, and the Multi-Asset Absolute Return Fund Investment Option, 4.00% for the Fixed-Income Asset Class options, and 1.00% for the Fixed Income Absolute Return Fund Investment Option. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter (except for the Fixed Income Absolute Return Option, which is 1% in the first year, declining to 0.5% in the second year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Class D shares reflect the current maximum initial sales charges of 3.50%. Class Y shares have no initial sales charge. Class Y shares before their inception are derived from the historical performance of class A shares, which have not been adjusted for the lower expenses; had they, returns would have been higher. The Government Money Market Fund Investment Option does not have an initial sales charge or CDSC. Performance reflects ongoing fees and expenses, including an annualized 0.10% fee charged by the College Savings Plans of Nevada and the Nevada College Savings Trust Fund and the fees and other expenses of the Putnam Mutual Funds in which the plan invests. The funds' expense ratios are taken from the most recent prospectus and are subject to change.

The Class Y share fee structure is currently only available for investments made by Account Owners investing in the Plan through a UBS commission-based platform.

Fund Facts as of 05/31/22

Fiscal Year End June
Category Absolute Return
Product Status Open to new investors
Inception 10/01/10
Fund Code 4176
CUSIP 74675T576
Total Net assets $5.77M

Performance

Total Return (%) as of 06/30/22

Annualized Performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Putnam 529 Fixed Income Absolute Return (after sales charge) -6.64% -1.03% 0.72% 1.57%
Putnam 529 Fixed Income Absolute Return (before sales charge) -5.69% -0.70% 0.93% 1.68%

Annual Performance as of 06/30/22

  2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Putnam 529 Fixed Income Absolute Return (before sales charge) 5.45% 4.19% 1.40% -2.03% 1.79% 5.09% 0.62% 8.92% 0.48% -4.00%

Pricing as of 07/01/22

Class Before Sales Charge NAV CHANGE After Sales Charge 52 Week High NAV
(Date)
52 Week Low NAV
(Date)
A $11.77 $0.01 $11.89 $12.50 (07/01/21) $11.76 (06/30/22)

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. Returns after sales charge for class A shares reflect the current maximum initial sales charges of 5.75% for the Goal-Based and Age-Based options, the Equity Asset Class options, and the Multi-Asset Absolute Return Fund Investment Option, 4.00% for the Fixed-Income Asset Class options, and 1.00% for the Fixed Income Absolute Return Fund Investment Option. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter (except for the Fixed Income Absolute Return Option, which is 1% in the first year, declining to 0.5% in the second year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Class D shares reflect the current maximum initial sales charges of 3.50%. Class Y shares have no initial sales charge. Class Y shares before their inception are derived from the historical performance of class A shares, which have not been adjusted for the lower expenses; had they, returns would have been higher. The Government Money Market Fund Investment Option does not have an initial sales charge or CDSC. Performance reflects ongoing fees and expenses, including an annualized 0.10% fee charged by the College Savings Plans of Nevada and the Nevada College Savings Trust Fund and the fees and other expenses of the Putnam Mutual Funds in which the plan invests. The funds' expense ratios are taken from the most recent prospectus and are subject to change.

The Class Y share fee structure is currently only available for investments made by Account Owners investing in the Plan through a UBS commission-based platform.


Performance Snapshot

  Before sales charge After sales charge
Monthly -1.34% -2.33%
as of 06/30/22
YTD -2.00% -2.98%
as of 07/01/22

Holdings

Top Holdings as of 05/31/22

Putnam Fix Inc Abs Rtrn-Y Sedol B955kb3 99.62%
Putnam Govt Mmkt Fnd-A 0.44%
Top holdings, total: 100.06%

Portfolio Composition as of 05/31/22

Agency pass-through 20.22%
Net cash 19.05%
Agency CMO 18.69%
Commercial MBS 12.44%
Residential MBS (non-agency) 11.11%
High-yield corporate bonds 9.95%
Collateralized loan obligations 8.33%
Emerging-market bonds 6.76%
Bank loans 6.33%
 
Other
6.43%
Investment-grade corporate bonds 4.69%
Convertible securities 0.95%
Asset-backed securities (ABS) 0.79%

Expenses

Expense ratio

Class A† Class B Class C Class Y
Total expense ratio 0.91% 1.11% 1.66% 0.66%
What you pay 0.91% 1.11% 1.66% 0.66%

Sales Charges / Dealer Allowance

Breakpoint Class A† Class B Class C Class Y
$0-$49,999 1.00% / 1.00% 0.00% / 1.00% 0.00% / 1.00% --
$50,000-$99,999 1.00% / 1.00% 0.00% / 1.00% 0.00% / 1.00% --
$100,000-$249,999 1.00% / 1.00% -- 0.00% / 1.00% --
$250,000-$499,999 1.00% / 1.00% -- 0.00% / 1.00% --
$500,000-$999,999 0.00% / 1.00% -- -- --
$1m-$4m 0.00% / 1.00% -- -- --
$4m-$50m 0.00% / 0.50% -- -- --
$50M+ 0.00% / 0.25% -- -- --

CDSC

  Class A†
(sales for $500,000+)
Class B Class C Class Y
0 to 9 mts. 1.00% 1.00% 1.00% --
9 to 12 mts. 1.00% 1.00% 1.00% --
2 yrs. 0.00% 0.50% -- --
3 yrs. 0.00% -- -- --
4 yrs. 0.00% -- -- --
5 yrs. 0.00% -- -- --
6 yrs. 0.00% -- -- --
7+ yrs. 0.00% -- -- --

† For exceptions to sales load, dealer reallowance and trail commission information set forth above, see the Offering Statement.

Portfolio characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Yield more closely reflects current performance than total return.

Consider these risks before investing: Allocation of assets among fixed income strategies and sectors may hurt performance. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings.

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 generally greater for longer-term bonds, and credit risk is generally 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 investments, unlike traditional debt investments, are subject to prepayment risk, which means that they may increase in value less when interest rates decline and decline in value more when interest rates rise. The fund’s investments in mortgage-backed securities and asset-backed securities, and in certain other securities and derivatives, may be or become illiquid. The fund currently has significant investment exposure to mortgage-backed securities, which may make the fund’s net asset value more susceptible to economic, market, political, and other developments affecting the housing or real estate markets and the servicing of mortgage loans secured by real estate properties. International investing involves currency, economic, and political risks. Emerging market securities have illiquidity and volatility risks. The fund may not achieve its goal, and it is 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 fund’s 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 return. Under certain market conditions, the fund may accept greater-than-typical volatility to seek its targeted return. The fund is not intended to outperform stocks and bonds during strong market rallies. The fund’s prospectus lists additional risks.

Our investment techniques, analyses, and judgments may not produce the intended outcome, and the investments we select for the fund may not perform as well as other securities that were not selected for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could negatively impact the fund. You can lose money by investing in the fund.