Retirement Advantage Presentation Piece - Putnam Investments

Putnam Retirement
Advantage
Target-Date Funds
Offering a distinctive glide path that seeks to reduce
volatility for today’s retirement investors.
Putnam Retirement Services

Volatile markets demand innovative
solutions for retirement savings.
Since the 2008–2009 bear market, volatility has rattled retirement investors’ portfolios. Many retirement funds with aggressive
glide paths were irreparably damaged. Today, this market volatility remains a constant threat. For those near or in retirement,
mitigating risk related to volatility should be a top priority. To pursue your retirement goals in today’s unpredictable market
environment, it is essential to focus on risk-adjusted returns and long-term performance.
We focus on the transition to retirement as a critical moment.
Protecting against losses early in
retirement can pave the way to a more
resilient retirement.
Avoiding big losses early in retirement helps savings
continue to grow even while generating income.
Total income withdrawn: $134,351
Average return: 11.01%
Ending balance: $328,364
$328,364
$100,000
Best return: 37.58%
Worst return: -37.00%
’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10
30% 8% 10% 1% 38% 23% 33% 29% 21% -9% -12% -22% 29% 11% 5% 16% 5% -37% 26% 15%
Returns represented by the S&P 500 Index. Annualized returns are represented in blue. Example assumes a $5,000 withdrawal in year 1, increased by 3% in
each subsequent year to adjust for inflation. This illustration is hypothetical and not indicative of any fund or product. You cannot invest directly in an index.

The 2008–2009 bear market hit the average target-date retirement fund with
steep and dramatic losses, dropping an average of 22.45% that calendar year.
0
Return (%)
-10
-20
-30
A
B
C
Source: Morningstar 2012. Past performance is not indicative of future results.
D
E
F
Average 2010
fund (universe)
Losses early in retirement might
never be recovered.
A large loss at the onset of retirement keeps
the nest egg from growing.
Total income withdrawn: $134,352
Average return: 11.01%
Ending balance: $101,795
$100,000
$101,795
Best return: 37.58%
Worst return: -37.00%
’10 ’09 ’08 ’07 ’06 ’05 ’04 ’03 ’02 ’01 ’00 ’99 ’98 ’97 ’96 ’95 ’94 ’93 ’92 ’91
15% 26% -37% 5% 16% 5% 11% 29% -22% -12% -9% 21% 29% 33% 23% 38% 1% 10% 8% 30%

Four compelling reasons to consider
Putnam Retirement Advantage Funds.
With Retirement Advantage Funds, you’ll get a distinctive glide path, dynamic portfolio
building blocks, and competitively low expenses under the leadership of our veteran
Global Asset Allocation team.
Whether near or in retirement, losses are more difficult to recoup and the effects can linger for years. Putnam Retirement
Advantage Funds are designed to pursue more consistent returns and lower volatility. While traditional thinking has favored
funds that delivered top results in rising markets, today’s heightened volatility has focused attention on funds that are able
to perform in flat or declining markets. Putnam Retirement Advantage Funds are intended to reduce volatility from equity
risk near and in retirement.
1
Our glide path starts out more aggressively before growing more conservative as your
target date nears.
Our distinctive glide-path philosophy seeks to reduce risk, allowing the glide path to steepen and end lower than most
competitors. As retirement approaches, the portfolio shifts from wealth-building equities to more conservative allocations
and absolute return strategies.
We consider a conservative glide path to be a cornerstone of a modern
retirement plan that will withstand today’s volatile markets.
100
Equity allocation five
years before target year
Symbol
Fund
Equity allocation five
years before target year
Net
Net
equity
equity
allocation
allocation
(%)
(%)
75
50
Putnam Retirement
Advantage Funds
Fund A glide path
Fund B glide path
Fund C glide path
Fund D glide path
Fund E glide path
31.00%
35.07%
54.64%
60.95%
55.59%
31.23%
25
Fund F glide path
54.43%
2055 2050 2045
2040 2035 2030 2025 2020 2015 Maturity
Target retirement year (the year a a plan participant turns 65)
Chart shown for illustrative purposes only. Source: Putnam Investments.

2
Balanced
We dynamically allocate across asset classes, not across a portfolio of existing funds.
The portfolios invest in a mix of asset classes, global markets, industry sectors, large and small companies,
and investment styles.
Equity
Balanced
Equity
• A dynamic strategy with the flexibility to respond to changes in macro opportunities
• An investment process that synthesizes top-down, quantitative, and fundamental analysis
• The application of forecasting expertise to active return strategies
Conservative
Income Strategies
Balanced
Equity
Balanced
Equity
Conservative
Balanced
Growth
Conservative
Conservative
U.S. Large-Cap Growth Growth Stocks
U.S. Large Value Stocks
GAA Balanced Portfolio
Seeking total return, the portfolio
strives to achieve results competitive
with the stock
Equity
market, but Conservative with less
volatility.
U.S. Small- and Mid-Cap Growth Stocks
GAA Growth Portfolio
Income Strategies
Seeking capital appreciation, the
portfolio strives to outperform the
stock market over a full market cycle
with less volatility.
GAA Conservative
Portfolio
Seeking total return consistent
with preservation.
Balanced
Growth
Income Strategies Growth
International Bonds
U.S. Money Markets
Conservative
Emerging U.S. Markets Large-Cap Growth Stocks
Income Strategies
Income Strategies
Equity
Income Strategies
International Bonds
GAA Income
Strategies Portfolio
Seeking current income with a
secondary objective of capital
appreciation.
GAA Equity Portfolio
Seeking capital appreciation.
GAA Money Market
Portfolio
Seeking capital preservation.
U.S. Small and MidCap Value Stocks
Commodities U.S. Large Value Stocks
U.S. Money Markets
International Equity Stocks
U.S. large-cap growth stocks
U.S. Investment
Growth
Grade Bonds
U.S. large-cap value stocks
U.S. High Yield Bonds
U.S. small-and mid-cap growth stocks
U.S. small-and mid-cap value stocks
International equity stocks
U.S. investment-grade bonds
U.S. Large-Cap high-yield Growth bonds Stocks
U.S. Large Value Stocks
U.S. Small- and Mid-Cap Growth Stocks
Diversification across multiple U.S. High dimensions
Yield Bonds
U.S. Small and MidCap Value Stocks
International Equity Stocks
Asset class/Strategy
U.S. Large-Cap Investment Growth Grade Bonds Stocks
U.S. All-Cap Large High Yield Value Bonds Equity Stocks
U.S. Small- and Mid-Cap Growth Stocks
U.S. Small-Cap Growth Equity
U.S. Small and MidCap Value Stocks
U.S. Small-Cap Value Equity
International Equity Stocks
U.S. Investment Grade Bonds
International Core Equity
U.S. High Yield Bonds
High-Yield Convertibles
REITs
International U.S. Small- High Yield and Mid-Cap Bonds Growth Stocks
International bonds
REITs U.S. Small and MidCap Value Stocks
U.S. money markets
High Yield International Convertibles Equity Stocks
Emerging-market stocks
Growth
U.S. Investment Large-Cap Growth Grade Bonds Stocks
Commodities
U.S. High Large Yield Value Bonds Stocks
International high-yield bonds
U.S. Small- and Mid-Cap Growth Stocks
REITs
U.S. Small and MidCap Value Stocks
International High-yield Bondsconvertible bonds
International Equity Stocks
U.S. Money Markets
U.S. Investment Grade Bonds
Emerging Markets
Commodities
International High Yield Bonds
International REITs Bonds
U.S. High Money Yield Convertibles
Markets
U.S. Large-Cap Growth Stocks
Emerging Markets
U.S. Large Value Stocks
Commodities
U.S. Small- and Mid-Cap Growth Stocks
International High Yield Bonds
U.S. Small and MidCap Value Stocks
REITs
International Equity Stocks
High Yield Convertibles
U.S. Investment Grade Bonds
U.S. High Yield Bonds
Asset class/Strategy
U.S. FIxed Income
High-Yield Fixed Income
International Fixed Income
GTAA Overlay
Currency Overlay
Index Options Overlay
Emerging Markets
Commodities
International High Yield Bonds
REITs International Bonds
High U.S. Money Yield Convertibles
Markets
Emerging Markets
Commodities
International High Yield Bonds
REITs
High Yield Convertibles
International Bonds
U.S. Money Markets
Emerging Markets
Commodities
International High Yield Bonds
REITs
High Yield Convertibles

3
Our Global Asset Allocation team takes a comprehensive approach —
maintaining full control of every aspect of the funds’ investments.
Unlike a typical fund-of-funds structure where managers invest independently and may choose the same securities,
our veteran team, with its years of experience in multi-asset investing, actively manages all security selections in the
funds — delivering a comprehensive approach that can reduce unintended risk from overlapping holdings.
“
In managing Putnam Retirement Advantage Funds,
we want to deploy any tool we can to help protect
investors from the risk of sharp portfolio drawdowns
at the threshold of retirement.
”
Featured from left to right:
James A. Fetch
(industry since 1994)
Robert J. Kea, CFA
(industry since 1988)
Joshua B. Kutin, CFA
(industry since 1998)
Robert J. Schoen
(industry since 1990)
Jason R. Vaillancourt, CFA
(industry since 1993)

4
Because Retirement Advantage Funds are collective investment trusts, this lowercost
expense structure is not available to retail investors.
Other cost savings include:
• Expense ratio is the same for all target dates — starting at 50 basis points
• Four classes of units for each fund provide pricing flexibility
• Fees adjust based on plan needs and total assets under management
Class
Management fee
Financial advisor, other marketing
and servicing expenses,
and/or plan administrative costs
Minimum
total plan size
I 50 bps 0 bps $50,000,000
II 60 bps 0 to 10 bps $10,000,000
III 75 bps 0 to 25 bps $5,000,000
IV 90 bps 0 to 40 bps $5,000,000
V 115 bps 0 to 65 bps $3,000,000

A BALANCED APPROACH
Since 1937, when George Putnam created a diverse
mix of stocks and bonds in a single, professionally
managed portfolio, Putnam has championed the
balanced approach.
A WORLD OF INVESTING
Today, we offer investors a world of equity, fixedincome,
multi-asset, and absolute-return portfolios
to suit a range of financial goals.
A COMMITMENT TO EXCELLENCE
Our portfolio managers seek superior results over time,
backed by original, fundamental research on a global
scale. We believe in the value of experienced financial
advice, in providing exemplary service, and in putting
clients first in all we do.
Your clients should carefully consider the investment
objectives, risks, charges, and expenses of a fund
before investing. To request the offering document
of the fund, call Putnam Dealer Marketing Services at
1-800-354-4000. Your clients should read the offering
document carefully before investing.
FOR DEALER USE ONLY — Not for public distribution.
DC368 281843 5/13
One Post Office Square
Boston, MA 02109
1-800-719-9914
putnam.com