March - Putnam Investments

their June meeting. In addition, the Trusteesconsidered a number other factors relatingto the Transfer, including, but not limited to,the following:• Information about the operations of TheDesmarais Family Residuary Trust, includingthat Paul Desmarais, Jr. and André Desmarais,Mr. Desmarais’ sons, were expected to exercise,jointly, voting control over the Power Corporationof Canada shares controlled by TheDesmarais Family Residuary Trust.• That Paul Desmarais, Jr. and André Desmaraishad been playing active managerial roles atPower Corporation of Canada, with responsibilityfor the oversight of Power Corporationof Canada’s subsidiaries, including PutnamInvestments, since Power Corporation of Canadahad acquired Putnam Investments in 2007,including serving as Directors of PutnamInvestments, and that the Transfer would notaffect their responsibilities as officers of PowerCorporation of Canada.• The intention expressed by representativesof Power Corporation of Canada and its subsidiaries,Power Financial Corporation andGreat- West Lifeco, that there would be nochange to the operations or managementof Putnam Investments, to Putnam Management’smanagement of the funds or toinvestment, advisory and other services providedto the funds by Putnam Managementand its affiliates as a result of the Transfer.• Putnam Management’s assurances that, followingthe Transfer, Putnam Managementwould continue to provide the same level ofservices to each fund and that the Transferwill not have an adverse impact on the abilityof Putnam Management and its affiliates tocontinue to provide high quality investmentadvisory and other services to the funds.• Putnam Management’s assurances that thereare no current plans to make any changes to theoperations of the funds, existing managementfees, expense limitations, distribution arrangements,or the quality of any services providedto the funds or their shareholders, as a result ofthe Transfer.• The benefits that the funds have receivedand may potentially receive as a result of PutnamManagement being a member of thePower Corporation of Canada group of companies,which promotes the stability of thePutnam organization.• Putnam Investments’ commitment to beara reasonable share of the expenses incurredby the Putnam Funds in connection withthe Transfer.General conclusions in connection withthe Trustees’ June 2013 approval of thefund’s management, sub- managementand sub- advisory contractsAs noted above, in connection with their deliberationsin October and November 2013, inaddition to the factors described above, theTrustees considered their recent approval ofyour fund’s management, sub- managementand sub- advisory contracts in June 2013. TheBoard oversees the management of each fundand, as required by law, determines annuallywhether to approve the continuance of yourfund’s management, sub- management andsub- advisory contracts. The Board, with theassistance of its Contract Committee, requestsand evaluates all information it deems reasonablynecessary under the circumstancesin connection with its annual contract review.The Contract Committee consists solely ofIndependent Trustees.At the outset of the review process, membersof the Board’s independent staff and independentlegal counsel met with representativesof Putnam Management to review the annualcontract review materials furnished to theContract Committee during the course of theprevious year’s review and to discuss possiblechanges in these materials that might be18 Dynamic Asset Allocation Growth Fund