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2. Major goals are expensive The average consumer over age 65 spends $36,802 annually. Over 20 years with inflation, that’s $988,883.52* Retirement Four years at a public university costs 68,524** College Long-term inflation averages 3.0% per year† Wealth preservation * Putnam research, using U.S. Dept. of Labor, Consumer Expenditure 2010 (September 2011). ** The College Board, Trends in College Pricing, 2011. † U.S. Bureau of Labor Statistics, Consumer Price Index annual average for the period 12/31/21–12/31/11.

3. 9.77% 6.77% 5.70% 3.58% 2.70% Returns after 3.00% inflation 0.58% Cash Bonds Stocks Investing can help Returns for asset classes1925–2011 Source: Morningstar, 2011. Returns and inflation are annualized for the period 12/31/25–12/31/11. Stocks are represented by the Ibbotson S&P 500 Total Return Index. Bonds are represented by the Ibbotson U.S. Long-Term Government Bond Total Return Index. Cash is represented by the Ibbotson U.S. 30-day Treasury Bill Total Return Index. Inflation is represented by the Consumer Price Index. All indexes are unmanaged and measure broad sectors of the stock and bond markets. You cannot invest directly in an index. Past performance is not indicative of future results.

4. Be ready for changing markets History shows market leadership changes Annual returns for key indexes (2002–2011) ranked in order of performance (highest to lowest) Highestreturn Lowestreturn The examples are for illustrative purposes only and do not reflect average annualized returns or the performance of any Putnam fund, which will fluctuate. Data are historical. Past performance is not a guarantee of future results. All indexes are unmanaged and measure common sectors of global asset markets. Securities in the indexes do not match those in Putnam funds, and performance will differ. Securities indexes assume reinvestment of distributions and interest payments, and do not take into account brokerage fees and taxes. It is not possible to invest directly in an index.

5. Asset allocation makes sense • Consistent diversification across multiple asset classes outperformed other strategies $10,000 invested annually from 2002 to 2011. $109,853 1.70% (Average annual total return) Staying in cash $131,043 4.86% (Average annual total return) Investing with the losers Investing in last year’s worst-performing asset class $142,932 6.40% (Average annual total return) Chasing the winners Investing in last year’s best-performing asset class $149,736 7.23% (Average annual total return) Asset Allocation* Investing consistently across several asset classes $163,147 8.74% (Average annual total return) Risk Allocation* Investing consistently across several types of risk * Rebalanced annually. Asset classes shown in the tile chart and the performance comparison bar chart are represented by 11 indexes. The asset allocation scenario is based on investments evenly distributed across these asset classes. The risk allocation scenario is based on the following weightings: 30% TIPS, 25% U.S. bonds, 25% international bonds, 15% high-yield bonds, 5% emerging-market bonds, 5% REITs, 15% U.S. stocks, 10% international stocks, 5% emerging-market stocks, 15% commodities, and, to reflect the role of leverage, -50% cash. Annual performance is adjusted by adding 1% to the return of cash, then subtracting this sum from overall returns. Diversification does not assure a profit or protect against loss. It is possible to lose money in a diversified portfolio. The examples are for illustrative purposes only and do not reflect average annualized returns or the performance of any Putnam fund, which will fluctuate. Data are historical. Past performance is not a guarantee of future results. All indexes are unmanaged and measure common sectors of global asset markets. Securities in the indexes do not match those in Putnam funds, and performance will differ. Securities indexes assume reinvestment of distributions and interest payments, and do not take into account brokerage fees and taxes. It is not possible to invest directly in an index.

6. Asset allocation defined • An investment strategy that seeks to balance risk and reward • Mixes different assets, such as stocks, bonds, and cash • Assets are mixed in amounts that reflect the investor’s time horizon and risk tolerance. • Greater growth goals or risk tolerance = more equities

7. Look far for opportunities * International Monetary Fund, World Economic Outlook Update, January 2012. Past performance is not indicative of future results. There are no guarantees that prior markets will be duplicated.

8. Mix investments for all seasons

9. Rebalance for consistency Without rebalancing: The market can change your asset allocation 67% 76% Originalbalancedportfolio Portfolio out ofbalance 33% 24% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Stocks are represented by the S&P 500 Index and bonds by the Barclays Capital U.S. Aggregate Bond Index. Indexes are unmanaged and represent broad market performance. It is not possible to invest directly in an index. Data is historical. Past performance is not a guarantee of future results. Diversification and rebalancing will not necessarily prevent you from losing money; however, they may reduce volatility and potentially limit downside losses. .

10. Rebalance for consistency With active rebalancing, asset allocation remains consistent 67% 67% 33% 33% Balancedportfolio Balancedportfolio 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Stocks are represented by the S&P 500 Index and bonds by the Barclays Capital U.S. Aggregate Bond Index. Indexes are unmanaged and represent broad market performance. It is not possible to invest directly in an index. Data is historical. Past performance is not a guarantee of future results. Diversification and rebalancing will not necessarily prevent you from losing money; however, they may reduce volatility and potentially limit downside losses. .

11. Consider Putnam • Experienced Asset Allocation managers • Focused on risk-adjusted returns • Global investment flexibility • Active strategies EO001 279927 2/13 | 12

12. James A. Fetch17 years Robert J. Kea, CFA 25 years Joshua B. Kutin, CFA15 years Robert J. Schoen23 years Jason R. Vaillancourt, CFA20 years Over two decades of experience EO001 279927 2/13 | 14

13. A choice of four funds 70% 30% Target Stocks Bonds 40% 60% Target Inflation-sensitive Credit 20% 80% Target Stocks Bonds Prior to 11/30/11, Putnam Dynamic Asset Allocation Conservative, Balanced, and Growth funds were known as Putnam Asset Allocation: Conservative, Balanced, and Growth portfolios, respectively.

14. Develop your plan • Investing can help you achieve long-term investment goals • Diversifying investments with an asset allocation plan helps build wealth and manage risk • Work with your financial representative to build a strategy • Consider Putnam for asset allocation The views and opinions expressed are those of the speaker, are subject to change with market conditions, and are not meant as investment advice.

15. A BALANCED APPROACH A WORLD OF INVESTING A COMMITMENT TO EXCELLENCE EO001 279927 2/13 | 18

16. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus or summary prospectus containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing. Putnam Retail Management putnam.com

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