March - Putnam Investments

of their Brokerage Committee and also indicatedtheir continued intent to monitor theallocation of the Putnam funds’ brokerage inorder to ensure that the principle of seekingbest price and execution remains paramount inthe portfolio trading process.Putnam Management may also receive benefitsfrom payments that the funds make toPutnam Management’s affiliates for investoror distribution services. In conjunction withthe annual review of your fund’s management,sub- management and sub- advisory contracts,the Trustees reviewed your fund’s investorservicing agreement with Putnam InvestorServices, Inc. (“PSERV”) and its distributor’scontracts and distribution plans with PutnamRetail Management Limited Partnership(“PRM”), both of which are affiliates of PutnamManagement. The Trustees concluded that thefees payable by the funds to PSERV and PRM,as applicable, for such services are reasonablein relation to the nature and quality of suchservices, the fees paid by competitive funds,and the costs incurred by PSERV and PRM, asapplicable, in providing such services.Dynamic Asset Allocation Growth Fund 23