Business Development Companies

The Putnam BDC Income Composite (the “Composite”) seeks a high rate of current income by investing primarily in common stocks of companies, that are incorporated in the U.S. and are traded on U.S. markets or OTC in the U.S., which are registered as a Business Development Company or equity securities of other companies in a similar business. Equity securities may include, but are not limited to, common stocks, preferred stocks, ETFs and convertible bonds and other securities exchangeable or convertible into common stocks. Accounts in the composite may at times invest strategically in debt securities or convertible securities of Business Development Companies and similar issuers. Accounts in the composite may invest in derivatives, including futures, options, and swap contracts, for both hedging and non-hedging purposes. The composite comprises all fully discretionary accounts managed by the team in this investment style. 100% of the composite is comprised of non-fee paying, proprietary assets. Business Development Company (BDC) strategies entail numerous risks and may not be suitable for all investors. Such risks include but are not limited to portfolio company credit and investment risk, leverage risk, market and valuation risk, price volatility risk, liquidity risk, capital markets risk, interest rate risk, dependence on key personnel, and structural and regulatory risk. BDCs invest in private companies and thinly traded securities of public companies, including debt instruments of such companies. Less mature and smaller private companies involve greater risk than well-established and larger publicly traded companies. Debt investments in which a BDC may invest will not be rated by a credit rating agency and will be below investment grade quality. These investments have speculative characteristics with respect to an issuer's capacity to make payments of interest and principal. BDCs may not generate income at all times. The market price of securities issued by a BDC may fluctuate significantly. Also, there can be no assurance that the securities issued by a BDC will have an established trading market or otherwise have sufficient liquidity. The composite is more concentrated than the benchmark in terms of companies and sectors, and the volatility of the composite may be greater or less than that of benchmark. In general, investing in portfolio with concentrated exposures to (i) particular asset class(es) and/or (ii) a particular sector and/or (iii) one or a select few markets involves greater risk than investing in portfolios that have greater diversification. Investments in a limited number of securities may have more risk because changes in the value of a single security may have a more significant effect, either negative or positive, on the value of the portfolio.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

The Composite's benchmark is the S&P BDC Index. The S&P BDC Index is designed to track leading Business Development Companies that trade on major U.S. exchanges. The Composite's benchmark was changed prospectively on June 1, 2022 from the Wells Fargo Business Development Company Index to the S&P BDC Index. This Composite benchmark change was made as a result of the Wells Fargo Business Development Company Index being discontinued. The Wells Fargo Business Development Company Index is a float adjusted, capitalization- weighted Index that is intended to measure the performance of all Business Development Companies that are listed on the New York Stock Exchange or NASDAQ and satisfy specified market capitalization and other eligibility requirements. Important data provider notices and terms available at www.franklintempletondatasources.com.

Franklin Templeton (FT) is not undertaking to provide impartial advice. Nothing herein is intended to provide fiduciary advice. FT has a financial interest.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
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This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. All investments involve risks, including possible loss of principal. This material is made available by the following Franklin Templeton entities in those countries where it is allowed to carry out relevant business. This strategy may not be available in all countries. Please seek advice from your local sales agent or visit the website shown at the end of this section for contact details and further information.

Americas:
Canada: Franklin Templeton Investments Corp., 200 King Street West, Suite 1500, Toronto, ON, M5H 3T4, (800) 387-0830, Fax: (416) 364-1163, www.franklintempleton.ca.
United States and Latin America: Franklin Resources, Inc. and its subsidiaries offer investment management services through multiple investment advisers registered with the SEC. Franklin Templeton, One Franklin Parkway, San Mateo, CA 94403-1906, 1-800-321-8563, ftinstitutional.com.
EMEA:
UK: Franklin Templeton Investment Management Limited (FTIML), registered office: Cannon Place, 78 Cannon Street, London, EC4N 6HL. Tel +44 (0)20 7073 8500. Authorised and regulated in the United Kingdom by the Financial Conduct Authority.
Luxembourg: Franklin Templeton International Services S.à r.l. (FTIS), registered office 8A, rue Albert Borschette, L-1246 Luxembourg. Authorised and regulated in Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF) and authorised to conduct specific investment business in other European countries via UCITS and AIFMD outward service or via any of the following outbound FTIS S.à.r.l. branches as listed below:
Germany: FTIS Branch Frankfurt, Mainzer Landstr. 16, 60325 Frankfurt/Main, Germany. Tel +49 (0) 69/27223-557, Fax +49 (0) 69/27223-622, [email protected]. With regards to the provision of our service (e.g. for distribution of investment funds), we receive payments from within our Group covering for all costs of the services provided. Additionally, we receive a margin of 5-10 % for tax law purposes on all of the incurred and claimed costs. Inducements are being used to guarantee, maintain, further enhance or to facilitate the quality of the investment services provided to you. We make use of the payments received to establish and to maintain an efficient infrastructure of high quality when providing our services. For example for maintenance and expansion of our infrastructure of high quality and human resources -especially staff-related costs, costs for further trainings for our staff, expansion of information technology and costs for our forms -and consequently, enhancing our client services. We are positive that the information mentioned above gives you a clear picture about the inducements we receive when providing our services. We are happy to answer any further questions and of course offer providing you more information.
Netherlands: FTIS Branch Amsterdam, NoMA House, Gustav Mahlerlaan 1212, 1081 LA, Amsterdam, Netherlands, Tel +31 (0) 20 575 2890.
Romania: Franklin Templeton International Services S.À R.L. Luxembourg, Bucharest Branch, at 78-80 Buzesti Str, Premium Point, 8th Floor, Bucharest 1, 011017, Romania. Registered with Romania Financial Supervisory Authority under no. PJM07.1AFIASMDLUX0037/10 March 2016 and authorized and regulated in Luxembourg by Commission de Surveillance du Secture Financiere. Telephone: + 40 21 200 9600.
Spain: Franklin Templeton International Services S.à r.l. -Spanish Branch, Professional of the Financial Sector under the Supervision of CNMV, José Ortega y Gasset 29, Madrid, Spain. Tel +34 91 426 3600, Fax +34 91 577 1857.
Sweden: FTIS Branch Stockholm, Blasieholmsgatan 5, SE-111 48, Stockholm, Sweden. Tel +46 (0)8 545 012 30, [email protected].
South Africa: Franklin Templeton Investments SA (PTY) Ltd., which is an authorised Financial Services Provider. Kildare House, The Oval, 1 Oa kdale Road,
Newlands, 7700 Cape Town, South Africa. Tel +27 (21) 831 7400, Fax +27 (11) 341 2301, www.franklintempleton.co.za.
Switzerland: Franklin Templeton Switzerland Ltd., Stockerstrasse 38, CH 8002 Zurich, Switzerland. Tel +41 44 217 81 81, Fax +41 44 217 81 82, [email protected].
United Arab Emirates: Issued by Franklin Templeton Investments (ME) Limited, authorised and regulated by the Dubai Financial Services Authority. Dubai office: Franklin Templeton Investments, The Gate, East Wing, Level 2, Dubai International Financial Centre, P.O. Box 506613, Dubai, U . E. Tel +9714 4284100, Fax +9714 4284140.
This is not an offer to sell or a solicitation of an offer to purchase securities in any jurisdiction where it would be illegal to do so.