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2. A BALANCED APPROACH A WORLD OF INVESTING A COMMITMENT TO EXCELLENCE | 2

3. Markets demand new ways of thinking Stock market volatility has increased since 2007 Bonds and cash offer low yields and limited upside Better portfolio diversification may be possible with Putnam Absolute Return Funds Diversification does not assure a profit or protect against loss. It is possible to lose money in a diversified portfolio.

4. Frequent market volatility argues for reducing equity risk Stock market volatility has worsened in recent years Stock volatility index Higher Lehman Brothers bankruptcy S&P cuts U.S. credit rating Iraq War 9/11 Europeandebt crisis HurricaneKatrina Lower August2011 June2014 September 2001 March 2003 August 2005 September 2008 Source: CBOE Market Volatility Index, June 2000 – June 2014.

5. Bonds may offer limited upside Bond yields are at low levels, and vulnerable to inflation Bond yields and inflation as of June 2014 (%) Sources: U.S. Federal Reserve (Moody’s Aaa-rated corporate bond, 10-year Treasury constant maturity); U.S. Bureau of Labor Statistics Consumer Price Index 12-month change.

6. Cash is safe, but lacks growth The Fed is holding down short-term interest rates “The Committee continues to anticipate … that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends …” Source: Federal Reserve’s Open Market Committee, July 30, 2014.

7. Are there mutual funds that seek more consistentreturns with less volatility?

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9. What is absolutereturn investing? A strategy that targets positive returns above T-bills with less volatility than markets.

10. Absolute return versus traditionalrelative return strategies

11. Putnam was the first to offer a suite of absolute return funds Each fund seeks to earn a positive total return that exceeds the return on U.S. Treasury bills on an annualized basis over a reasonable period of time (generally at least three years or more) regardless of market conditions. There can be no assurance that a fund will meet its objective. The funds are not intended to outperform stocks and bonds during strong market rallies. | 11

12. How Putnam managesabsolute return

13. The funds have delivered positive returns in turbulent markets Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or a loss when you sell your shares. The class A share performance shown assumes reinvestment of distributions and does not account for taxes. Before-sales-charge returns do not reflect a maximum load of 5.75% for Putnam Absolute Return 500 and 700 Funds, and 1.00% for Putnam Absolute Return 100 and 300 Funds. Had the sales charges been reflected, returns would have been lower. “What you pay” reflects Putnam Management’s decision to contractually limit expenses for the Absolute Return 500 Fund through 2/28/15. For a portion of the periods, the funds had expense limitations, without which returns would have been lower. To obtain the most recent month-end performance, visit putnam.com. The BofA Merrill Lynch U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar-denominated U.S. Treasury bills publicly issued in the U.S. domestic market. Qualifying securities must have a remaining term of at least one month to final maturity and a minimum amount outstanding of $1 billion. It is not possible to invest directly in an index.

14. Markets are likely to be influenced by Fed • Signs of inflation will raise the stakes for the Fed’s policy communications • Favorable conditions for leveraged strategies could reverse quickly • Reasonable valuations and the Fed’s policy goals continue to support risky assets

15. Absolutely for all kinds of investors Talk with your financial advisor to set your goals Review your portfolio and risk profile Add Putnam Absolute Return Funds to diversify a portfolio of traditional funds The funds have provided positive performance with low volatility in the up and down markets since 2008

17. Consider these risks before investing:Our allocation of assets among permitted asset categories may hurt performance. The prices of stocks and bonds in the funds’ portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including both general financial market conditions and factors related to a specific issuer or industry. Our active trading strategy may lose money or not earn a return sufficient to cover associated trading and other costs. Our use of leverage obtained through derivatives increases these risks by increasing investment exposure. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have ongoing fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging-market securities, including illiquidity and volatility. Our use of derivatives may increase these risks by increasing investment exposure (which may be considered leverage) or, in the case of many over-the-counter instruments, because of the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. The funds may not achieve their goal, and they are not intended to be a complete investment program. The funds’ effort to produce lower-volatility returns may not be successful and may make it more difficult at times for the funds to achieve their targeted return. In addition, under certain market conditions, the funds may accept greater volatility than would typically be the case, in order to seek their targeted return. For the 500 Fund and 700 Fund, these risks also apply: REITs involve the risks of real estate investing, including declining property values. Commodities involve the risks of changes in market, political, regulatory, and natural conditions. Additional risks are listed in the funds’ prospectus. You can lose money by investing in the funds. The views and opinions expressed are those of the speaker, are subject to change with market conditions, and are not meant as investment advice. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, call your financial advisor or contact Putnam at 1-800-225-1581. Investors should read the prospectus carefully before investing. Putnam Retail Management putnam.com