March - Putnam Investments

Message from the TrusteesDear Fellow Shareholder:While U.S. stocks and bonds have generally delivered modest returns so far in 2014, volatilityhas become more pronounced, driven in the early months of the year by unusually cold weatherconditions, shifting expectations for U.S. Federal Reserve action, and rising geopolitical fears.Still, evidence exists that global economic growth is slowly strengthening, and we believe theUnited States, Europe, and Japan are poised to contribute to an extended recovery.In our view, portfolio diversification becomes extraordinarily important in this kind ofenvironment. Putnam’s active research and investment strategies can serve investors who arepursuing income and capital appreciation goals.We are pleased to report that Putnam continues to garner recognition in the mutual fundindustry. For 2013, Barron’s ranked Putnam second among 64 mutual fund families based ontotal returns across asset classes. Over the longer term of five years ended in December 2013,Putnam also ranked second out of 55 fund families.We believe Putnam’s sound investment strategies can provide benefits to your portfolio.An experienced advisor can help you assess your individual needs, time horizon, and risktolerance — and can help guide you toward your investment goals.As always, thank you for investing with Putnam.Respectfully yours,Robert L. ReynoldsPresident and Chief Executive OfficerPutnam InvestmentsJameson A. BaxterChair, Board of TrusteesMay 9, 2014How Barron’s ranked the fund families:The Barron’s/Lipper Fund Family Ranking published February 8, 2014, ranked Putnam 1 out of 61 for 2009, 14 out of57 for 2010, 57 out of 58 for 2011, 1 out of 62 for 2012, and 2 out of 64 for 2013 for the 1-year period with funds in fivecategories: U.S. equity, world equity, mixed asset, taxable bond, and tax-exempt bond. Putnam ranked 43 out of54 and 46 out of 48 for the 5- and 10-year periods ending 2009, 41 out of 53 and 38 out of 46 for the 5- and 10-yearperiods ending 2010, 49 out of 53 and 41 out of 45 for the 5- and 10-year periods ending 2011, 27 out of 53 and36 out of 46 for the 5- and 10-year periods ending 2012, and 2 out of 55 and 32 out of 48 for the 5- and 10-yearperiods ending 2013, respectively. Only funds with at least one year of performance were included. Returns werecalculated minus the effects of sales charges and 12b-1 fees. Rankings were asset weighted, so larger funds had agreater impact on a fund family’s overall ranking, and then weighted by category, with each category assigned apercentage. Past performance is not indicative of future results. Barron’s is a registered trademark of Dow Jones &Company. Lipper ranked Putnam Dynamic Asset Allocation Growth Fund 6% (30/581), 3% (14/487), and 15%(44/305) for the 1-, 3-, and 5-year periods, respectively, as of 3/31/14 in the Mixed-Asset Target Allocation GrowthFunds category. Lipper rankings for class A shares are based on total return without sales charge relative to all shareclasses of funds with similar objectives as determined by Lipper.