Active duration strategies during rising rate periods

These Putnam funds outperformed passive indexes when rates rose.

duration Absolute Return 100 Fund Absolute Return 300 Fund Diversified Income Trust
This infographic highlights periods when fund performance was favorable relative to the indexes shown. During other short-term periods, the funds' relative performance may have been less favorable
Bloomberg, Federal Reserve, as of 9/30/17.

Active duration strategies position these funds for rising rates today.

Total return performance as of 9/30/17.

Putnam Absolute Return 100 Fund
Seeks 1% above U.S. T-bills
Putnam Absolute Return 300 Fund
Seeks 3% above U.S. T-bills
BofA Merrill Lynch
U.S. Treasury Bill Index
Putnam Diversified Income Trust
Multi-sector Income
BBG Barclays
U.S. Aggregate Bond Index
At net asset value Class Y shares
Inception date 12/23/08
Class Y shares
Inception date 12/23/08
  Class Y shares
Inception date 7/1/96
1 year 3.78% 6.47% 0.64% 9.24% 0.07%
3 years 1.66% 1.49% 0.34% 1.79% 2.71%
5 years 1.76% 2.66% 0.24% 4.22% 2.06%
10 years 4.05% 4.27%
Life of fund 1.73% 2.84% 0.24% 6.37% 6.28%
Expense ratio 0.38% 0.45%   0.75%  

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 a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Class Y shares, available to investors through an asset-based fee program or for institutional clients, are sold without an initial sales charge and have no CDSC. For the most recent month-end performance, please visit

Consider these risks before investing: Allocation of assets among asset classes may hurt performance. Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. 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 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 effort 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. You can lose money by investing in the fund. The fund's prospectus lists additional risks. Absolute Return funds are not intended to outperform stocks and bonds during strong market rallies.

Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities. BofA Merrill Lynch U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar-denominated U.S. Treasury publicly issued in the U.S. domestic market. Qualifying securities must have a remaining term of at least one month to final maturity and a minimum amount outstanding of $1 billion. You cannot invest directly in an index.

Duration measures the sensitivity of bond prices to interest-rate changes. A negative duration indicates that a security or fund may be poised to increase in value when interest rates increase.

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, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.