Press release

PUTNAM ABSOLUTE RETURN FUNDS RECEIVE INNOVATION AND GROWTH FORUM’S FIRST INNOVATION AWARD

Award Recognizes Putnam’s Pioneering Use of Absolute Return Strategies

BOSTON, May 11, 2011Putnam Investments was named the inaugural recipient of the Innovation and Growth Forum’s first Innovation Award for its achievements in pioneering Putnam Absolute Return Funds, the mutual fund industry’s first suite of target absolute return strategies. The funds have since become the first absolute return strategies to be incorporated into products designed to meet a wide range of investor needs, including retirement and college savings.

“We are honored to be the initial recipient of this prestigious award, which reflects the commitment to innovation that has characterized Putnam Investments during the past three years,” said Robert L. Reynolds, president and chief executive officer of Putnam Investments. “In particular, our Putnam Absolute Return Funds seek to address an array of investment needs, including dampening market volatility, generating more dependable returns and helping to mitigate potential inflation and longevity risks, all of which are paramount to the confidence of financial advisors and investors.”

Launched in January 2009, Putnam Absolute Return Funds are designed to seek a positive return that exceeds the rate of inflation, as reflected by Treasury bills, by a fixed target over a reasonable period of time regardless of market conditions. The strategies are also generally intended to produce lower volatility than historically associated with traditional asset classes that have earned similar levels of return. The funds currently have over $3.3 billion in assets under management, with more than 10,000 financial advisors from over 600 broker-dealers having used Putnam absolute return products in portfolio construction.

The Innovation and Growth Forum is jointly organized and co-sponsored by Financial Advisor Magazine and the Spectrem Group to assist the financial services industry in reinventing itself in the wake of the financial crisis. Putnam was selected for the Innovation Award by the Forum’s members, and the award was presented at the Forum’s semiannual members meeting last night in Chicago.

Putnam and Absolute Return Strategies Putnam Investments launched the mutual fund industry’s first suite of Absolute Return Funds in January 2009 with four funds:

  • Putnam Absolute Return 100 Fund (Class A: PARTX) seeks to outperform inflation by 1% over periods of three years or more net of all fund expenses as measured by T-bills, and can be an alternative to short-term securities
  • Putnam Absolute Return 300 Fund (Class A: PTRNX) seeks to outperform inflation by 3% over periods of three years or more net of all fund expenses as measured by T-bills, and can be an alternative to bond funds
  • Putnam Absolute Return 500 Fund (Class A: PJMDX) seeks to outperform inflation by 5% over periods of three years or more net of all fund expenses as measured by T-bills, and can be an alternative to balanced funds
  • Putnam Absolute Return 700 Fund (Class A: PDMAX) seeks to outperform inflation by 7% over periods of three years or more net of all fund expenses as measured by T-bills, and can be an alternative to stock funds

Putnam Absolute Return Funds have employed diverse strategies to help manage risk, including investments across sectors; short-maturity fixed-income securities; derivatives to hedge against market declines; Treasury futures contracts to reduce interest-rate risk; and cash positions to stabilize fund performance. The benefits of the Absolute Return Funds have been extended to meet the needs of investors with different goals.

Given the multiple potential applications of its Absolute Return Funds, Putnam has embedded these strategies in an array of product solutions including, Putnam RetirementReady® Funds, Putnam Variable Trust (VT) Absolute Return 500 Fund, and Putnam 529 for AmericaSM.

About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money management firm with over 70 years of investment experience. The firm was recently named one of the top 15 mutual fund families by Lipper/Barron’s for the second consecutive year. At the end of April 2011, Putnam had $130 billion in assets under management, including mutual fund assets of $71 billion and institutional assets of $59 billion. Putnam has offices in Boston, London, Frankfurt, Amsterdam, Tokyo, Singapore and Sydney. For more information, visit putnam.com.

Putnam mutual funds are distributed by Putnam Retail Management.

*Putnam’s Absolute Return Funds are not intended to outperform stocks and bonds during strong market rallies. Absolute Return funds are not intended to outperform stocks and bonds during strong market rallies.

Consider these risks before investing: Asset allocation decisions may not always be correct and may adversely affect fund performance. The use of leverage through derivatives may magnify this risk. Leverage and derivatives carry other risks that may result in losses, including the effects of unexpected market shifts and/or the potential illiquidity of certain derivatives. International investments carry risks of volatile currencies, economies and governments, and emerging-market securities can be illiquid. Bonds are affected by changes in interest rates, credit conditions and inflation. As interest rates rise, prices of bonds fall. Long-term bonds are more sensitive to interest-rate risk than shortterm bonds, while lower-rated bonds may offer higher yields in return for more risk. Unlike bonds, bond funds have ongoing fees and expenses. Stocks of small and/or midsize companies increase the risk of greater price fluctuations. REITs involve the risks of real estate investing, including declining property values. Commodities involve the risks of changes in market, political, regulatory and natural conditions. Additional risks are listed in the funds’ prospectus.

Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in this fund.

Each RetirementReady Fund has a different target date indicating when the fund’s investors expect to retire and begin withdrawing assets from their account, typically at retirement. The dates range from 2010 to 2050 in five-year intervals, with the exception of the Maturity Fund, which is designed for investors at or near retirement. The funds are generally weighted more heavily toward more aggressive, higher-risk investments when the target date of the fund is far off, and more conservative, lower-risk investments when the target date of the fund is near. This means that both the risk of your investment and your potential return are reduced as the target date of the particular fund approaches, although there can be no assurance that any one fund will have less risk or more reward than any other fund. The principal value of the funds is not guaranteed at any time, including the target date.

The Lipper/Barron’s survey, published February 7, 2011, for the 2010 award period, ranked Putnam 14 out of 57 fund families with funds in five categories: general U.S. stock, global or international, mixed-asset, taxable bond and tax-exempt bond. Putnam Investments ranked 41 of 53 and 38 of 46 for the 5- and 10-year periods, respectively. The Lipper/Barron’s survey published February 1, 2010, for the 2009 award period, ranked Putnam Investments #1 and included 61 fund families with funds in the same five categories as above. Putnam ranked 43 of 54 and 46 of 48 for the 5- and 10-year periods, respectively. Only funds with at least one year of performance were included. Returns were calculated minus the effects of sales charges and 12b-1 fees. Rankings were asset weighted, so larger funds had a greater impact on a fund family’s overall ranking, and then weighted by category, with each category assigned a percentage. Past performance is not indicative of future results. For more information on the Lipper/Barron’s survey methodology, visit putnam.com. Barron’s is a registered trademark of Dow Jones & Company.

Request a prospectus, or a summary prospectus if available, from your financial representative or by calling Putnam at 1-800-225-1581. The prospectus includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing.