Putnam Short Duration Income Fund - Putnam Investments

Terms and definitions
Important terms
Total return shows how the value of the fund’s
shares changed over time, assuming you
held the shares through the entire period and
reinvested all distributions in the fund.
Net asset value (NAV) is the price, or value,
of one share of a mutual fund, without a sales
charge. Net asset values fluctuate with market
conditions, and are calculated by dividing
the net assets of each class of shares by the
number of outstanding shares in the class.
Contingent deferred sales charge (CDSC) is
generally a charge applied at the time of the
redemption of class B or C shares and assumes
redemption at the end of the period. Your
fund’s class B CDSC declines over time from a
5% maximum during the first year to 1% during
the sixth year. After the sixth year, the CDSC no
longer applies. The CDSC for class C shares is
1% for one year after purchase.
Share classes
Class A shares are not subject to an initial sales
charge or a CDSC, except that a CDSC may
apply to certain redemptions of class A shares
obtained by exchanging shares from another
Putnam fund that were originally purchased
without an initial sales charge if the shares are
redeemed within nine months of the original
purchase. Exchange of your fund’s class A
shares into another Putnam fund may involve
an initial sales charge.
Class B shares are not subject to an initial sales
charge. They may be subject to a CDSC.
Class C shares are not subject to an initial
sales charge or a CDSC, except that a CDSC
of 1.00% may apply to class C shares obtained
in an exchange for class C shares of another
Putnam fund if exchanged within one year of
the original purchase date.
Class M shares are not subject to an initial sales
charge or a CDSC, except that a CDSC may
apply to class M shares that were obtained
either directly, or by exchanging shares from
another Putnam fund that were originally
purchased without a sales charge, from certain
rollover accounts if redeemed within one year
of purchase. Exchange of your fund’s class M
shares into another Putnam fund may involve
an initial sales charge.
Class R shares are not subject to an initial
sales charge or CDSC and are available only to
certain employer-sponsored retirement plans.
Class R5 shares and class R6 shares are not
subject to an initial sales charge or CDSC, and
carry no 12b-1 fee. They are only available to
certain employer-sponsored retirement plans.
Class Y shares are not subject to an initial
sales charge or CDSC, and carry no 12b-1 fee.
They are generally only available to corporate
and institutional clients and clients in other
approved programs.
Fixed-income terms
Current rate is the annual rate of return earned
from dividends or interest of an investment.
Current rate is expressed as a percentage
of the price of a security, fund share, or
principal investment.
Yield curve is a graph that plots the yields of
bonds with equal credit quality against their
differing maturity dates, ranging from shortest
to longest. It is used as a benchmark for other
debt, such as mortgage or bank lending rates.
Comparative indexes
Barclays U.S. Aggregate Bond Index is an
unmanaged index of U.S. investment-grade
fixed-income securities.
Short Duration Income Fund15