| 1 EO /15 | 1 Not FDIC Insured May Lose Value No Bank Guarantee | 1 EO /15

| 2 EO /15 What is a bond? A loan to a corporation or government. Investors lend the money Repaid in specified period of time (up to 30 years) Repaid with specified amount of interest income

| 3 EO /15 Risk versus return Amount of income reflects creditworthiness of issuer Highest-quality bonds (rated AAA or AA) = Lowest yields U.S. Treasury bonds Municipal bonds Bonds issued by corporations with a spotless track record of honoring their debt obligations Medium-quality bonds (ratings from AA to BB) = Moderate yields Non-U.S. government bonds Bonds issued by corporations in decent financial health Lowest-quality bonds (rated BB or lower) = Highest yields Emerging-market bonds Bonds issued by new corporations or those in poor financial health

| 4 EO /15 Taxable or tax free?

| 5 EO /15 Consider the tax-equivalent yield Municipal bond yield Your tax bracket 15.0%25.0%28.0%36.8%* 38.8%* 43.4%* 3% % % % Equivalent yield of a taxable bond For illustrative purposes only. * Includes 3.8% Medicare surtax effective 1/1/13

| 6 EO /15 Municipal bond yield Your tax bracket 15.0%25.0%28.0%36.8%* 38.8%* 43.4%* 3% % % % Equivalent yield of a taxable bond Consider the tax-equivalent yield An investor subject to a 36.8% tax rate with a 5% tax-free yield will get the equivalent of a 7.91% after-tax yield. For illustrative purposes only. * Includes 3.8% Medicare surtax effective 1/1/13

| 7 EO /15 Calculating tax-equivalent yield = Tax-equivalent yield Tax-free yield 100 – your tax rate = 7.91% – 36.8 For illustrative purposes only.

| 8 EO /15 What benefits can bonds provide? Interest income during the life of the bond Potential for capital appreciation if interest rates decline and/or market dynamics change Potential to reduce overall volatility of portfolio composed primarily of equities

| 9 EO /15 One predictable thing about the market — it is unpredictable Past performance does not indicate future results. Indexes are unmanaged and show broad market performance. It is not possible to invest directly in an index. Highest return Lowest return U.S. Small-Cap Growth Stocks | Russell 2000 Growth IndexInternational stocks | MSCI EAFE Index (ND) U.S. Large-Cap Growth Stocks | Russell 1000 Growth IndexU.S. Bonds | Barclays U.S. Aggregate Bond Index U.S. Small-Cap Value Stocks | Russell 2000 Value IndexCash | BofA Merrill Lynch U.S. 3-month Treasury Bill Index U.S. Large-Cap Value Stocks | Russell 1000 Value Index Changes in market performance, 1992–

| 10 EO /15 Small-Cap Growth Stocks are represented by the Russell 2000 Growth Index, which is an unmanaged index of those companies in the Russell 2000 Index chosen for their growth orientation. Large-Cap Growth Stocks are represented by the Russell 1000 Growth Index, which is an unmanaged index of capitalization-weighted stocks chosen for their growth orientation. Small-Cap Value Stocks are represented by the Russell 2000 Value Index, which is an unmanaged index of those companies in the Russell 2000 Index chosen for their value orientation. Large-Cap Value Stocks are represented by the Russell 1000 Value Index, which is an unmanaged index of capitalization-weighted stocks chosen for their value orientation. International Stocks are represented by the MSCI EAFE Index, which is an unmanaged index of international stocks from Europe, Australasia, and the Far East. U.S. Bonds are represented by the Barclays Aggregate Bond Index, which is an unmanaged index used as a general measure of fixed-income securities. Cash is represented by the BofA Merrill Lynch U.S. 3-Month Treasury Bill Index, which is an unmanaged index used as a general measure for money market or cash instruments.

| 11 EO /15 When stocks get shaky, bonds can add stability Data is as of 12/31/14 and is historical. Past performance does not guarantee future results. Stocks are represented by the S&P 500 Index, which is an unmanaged index of common stock performance. Bonds are represented by the Barclays Aggregate Bond Index, an unmanaged index of U.S. investment-grade fixed-income securities. It is not possible to invest directly in an index. Annual market results (%)

| 12 EO /15 Active rebalancing Stocks Bonds Balanced portfolio Out-of- balance portfolio Stocks are represented by the S&P 500 Index and bonds by the Barclays 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. Without rebalancing: The market controls asset allocation and investors don’t systematically rotate out of less attractive and into more attractive investments 28% 40% 60% 72%

| 13 EO /15 Active rebalancing Balanced portfolio Stocks are represented by the S&P 500 Index and bonds by the Barclays 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. 40% 60% Balanced portfolio Stocks Bonds Without rebalancing: The market controls asset allocation and investors don’t systematically rotate out of less attractive and into more attractive investments

| 14 EO /15 A BALANCED APPROACH A WORLD OF INVESTING A COMMITMENT TO EXCELLENCE | 14 EO /13

| 15 EO /15 Why Putnam for fixed income? Over 75 years of fixed-income investing experience Manages $55.7 billion in fixed-income securities More than 80 investment professionals organized into specialist teams As of 6/30/14.

| 16 EO /15 Putnam American Government Income Fund Putnam Diversified Income Trust Putnam Emerging Market Income Fund Putnam Floating Rate Income Fund Putnam Global Income Trust Putnam High Yield Trust Putnam Income Fund Putnam Short Duration Income Fund Putnam Tax Exempt Income Fund Putnam Tax-Free High Yield Fund Putnam fixed-income funds cover all bond sectors U.S. government securities Investment-grade corporate bonds International bondsHigh-yield bondsEmerging-market bonds Tax-free investment- grade bonds Tax-free high-yield bonds Floating rate loansMortgage-backed securities

| 17 EO /15 Building a solid financial foundation with bonds What is a bond? Taxable or tax free: Which is right for you? When stocks are shaky, bonds often are stable – Adding bonds reduces volatility Work with a trusted financial advisor – To select the right investments – To ensure that accounts are set up with your future in mind

| 18 EO /15 Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. 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 and the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise. 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. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Unlike bonds, funds that invest in bonds have fees and expenses. Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer or industry. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. You can lose money by investing in the fund. For tax-exempt funds, these risks may also apply: Capital gains, if any, are taxed at the federal and, in most cases, state levels. The Short Duration Income Fund is not a money market fund.

| 19 EO /15 This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions. 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 representative or call Putnam at Please read the prospectus carefully before investing. Putnam Retail Management putnam.com

| 20 EO /15