| 1 EO001 279927 2/13 Not FDIC Insured May Lose Value No Bank Guarantee | 1 EO001 279927 2/13.

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Not FDIC Insured

May Lose Value

No Bank Guarantee

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Major goals are expensive

* 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.

The average consumer over age 65 spends $36,802 annually. Over 20 years with inflation, that’s $988,883.52*

Four years at a public university costs 68,524**

Long-term inflation averages 3.0% per year†

Retirement

College

Wealth preservation

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3.58%

5.70%

9.77%Investing can help

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.

Returns for asset classes1925–2011

Cash Bonds Stocks

0.58%

2.70%

6.77%

Returnsafter 3.00%inflation

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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.

Be ready for changing marketsHistory shows market leadership changesAnnual returns for key indexes (2002–2011) ranked in order of performance (highest to lowest)2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

32.07% 55.82% 31.49% 34.00% 35.92% 39.39% 10.11% 78.51% 28.48% 13.56%

21.99 38.59 25.55 25.55 32.17 32.58 5.24 58.76 18.88 8.69

16.57 36.74 20.25 13.54 26.34 11.63 2.06 31.78 16.93 7.84

13.65 31.06 17.28 12.13 15.72 11.45 -2.35 29.82 14.86 7.35

10.25 27.48 12.14 10.25 11.58 11.17 -12.03 28.61 12.24 6.59

3.64 22.21 11.95 6.12 9.86 6.97 -26.80 28.34 9.02 5.17

1.98 20.72 11.62 3.07 6.94 6.16 -37.31 13.49 7.75 1.03

1.78 18.52 11.25 2.84 4.85 5.14 -37.97 11.41 6.54 0.10

-6.17 8.40 8.46 2.62 4.33 5.00 -43.38 5.93 6.31 -1.18

-15.94 4.10 4.34 2.43 0.41 2.69 -46.49 4.39 5.21 -12.14

-21.54 1.15 1.33 -9.20 -15.04 -16.82 -53.33 0.21 0.13 -18.42

U.S. stocks | Russell 3000 Index Emerging-market (EM) stocks | MSCI Emerging Markets Index (ND)

U.S. bonds | Barclays Capital U.S. Aggregate Bond Index Emerging-market (EM) bonds | JPMorgan Emerging Markets Global Diversified Index

International bonds | Citigroup Non-U.S. World Government Index REITs | MSCI U.S. REIT Index

U.S. high-yield bonds | JPMorgan Developed High Yield Index TIPS | Barclays Capital U.S. TIPS Index

Cash | BofA Merrill Lynch U.S. 3-month T-Bill Index Commodities | S&P GSCI Commodity Index

International stocks | MSCI EAFE Index (ND)

Highestreturn

Lowestreturn

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• Consistent diversification across multiple asset classes outperformed other strategies

Asset allocation makes sense

*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.

$10,000 invested annually from 2002 to 2011.

Staying in cash

Investing with the losers

Chasing the winners

Asset Allocation*

Risk Allocation*

Investing in last year’s worst-performing asset class

Investing in last year’s best-performing asset class

Investing consistently across several asset classes

Investing consistently across several types of risk

$109,853

1.70% (Average annual total return)

$131,043

4.86% (Average annual total return)

$142,932

6.40% (Average annual total return)

$149,736

7.23% (Average annual total return)

$163,147

8.74% (Average annual total return)

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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

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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.

1.8%

3.3%

5.4%

2012 GDP (projected)

U.S.

World

Developing markets

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Mix investments for all seasons

Recession Expansion Inflation Deflation

Equities

Bonds Bonds

Commodities

Commodities

Credit Credit

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Rebalance for consistency

Stocks

Bonds

Originalbalancedportfolio

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.

.

67%

33%

76%

24%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Portfolio out ofbalance

Without rebalancing: The market can change your asset allocation

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Rebalance for consistency

Balancedportfolio

Balancedportfolio

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.

.

67%

33%

67%

33%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

With active rebalancing, asset allocation remains consistent

Stocks

Bonds

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Consider Putnam • Experienced Asset Allocation managers

• Focused on risk-adjusted returns

• Global investment flexibility

• Active strategies

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Over two decades of experienceJames A. Fetch17 years

Robert J. Kea, CFA 25 years

Joshua B. Kutin, CFA15 years

Robert J. Schoen23 years

Jason R. Vaillancourt, CFA20 years

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16%

16%

22%

46%

Conservative Fund

Balanced Fund

Growth Fund

A choice of four fundsPutnam Dynamic Asset Allocation Funds

Allocations to asset classes

Stocks

Bonds

Inflation-sensitive

Credit

70%

30%

Stocks Bonds

Target

40%

60%

Target

Putnam Dynamic Risk Allocation Fund

Allocations to risk categories

20%

80%

Target

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.

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• 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.

Develop your plan

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A BALANCED APPROACH

A WORLD OF INVESTING

A COMMITMENT TO EXCELLENCE

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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

| 20EO001 279927 2/13 | 20EO001 279927 2/13