1. Putnam 529 for AmericaSM Scholarship Account
Presenter
Title
Department

2. Why establish a 529 scholarship?
Establishing a Putnam 529 for AmericaSM plan account as the funding vehicle for a scholarship is a great way for [your organization] to provide assistance, incentives, or rewards in the form of a college education
A Putnam 529 for America plan offers an attractive combination of tax-free growth and distribution, control over withdrawals, and no contribution limit* until the scholarship is awarded and a beneficiary is designated
* Contributions should be in line with anticipated scholarship awards.

3. 529 scholarship fund benefits
Cost effective
Eliminates record-keeping and administrative fees, putting more scholarship money to work
Account control
[your organization] retains control over the account and all distributions
Beneficiary(ies) can be named when the award is given
Convenient
Anyone can be the beneficiary
Proceeds from the scholarship account can be sent directly to the educational institution on behalf of recipient
Account can be continued in perpetuity even if awards are given to beneficiary(ies) each year or periodically
Professional management: access to 18 investment options from Putnam Investments and other prominent money managers

4. Scholarship accounts: Eligibility
Can be established by 501(c)(3) entities such as:
State or local governments
Religious, educational, and charitable organizations
Other tax-exempt organizations

5. 529 scholarship fund benefits
Establishing an account
Complete a Putnam 529 for America new account application
John Smith, authorized signer or trustee of [organization name] in the “Tax Exempt or Governmental Owner” section
[organization name]’s tax ID number in place of beneficiary’s Social Security number
Reference the Scholarship Fund name in place of beneficiary name*
Contributions
[organization name] controls all contributions
Unlimited account contributions as long as the amount is consistent with the scope and size of the scholarship program award
Distributions
[organization name] controls all distributions
One of four ways to distribute the funds:
Check paid directly to the school
Check paid directly to the beneficiary
New account set up for the beneficiary with the parent as owner
New account set up for the beneficiary with [organization name] as owner
* Designate the beneficiary/recipient as scholarships are awarded each year or periodically.

6. Since offering one of the first 529 college savings plans in the country over a decade ago, Putnam Investments has been helping families across America build their futures.
Putnam’s college savings plan — Putnam 529 for America — is backed by Putnam’s expertise in 529 plan administration, industry-recognized customer service, and investing expertise.
Investors across the country can invest in the plan and proceeds can be used to attend school in any state.
Putnam has more than 75 years of investment experience. The firm was founded in 1937 with one of the first mutual funds to combine stocks and bonds in a single portfolio. Today, Putnam offers a wide range of stock, bond, multi-asset, and absolute return portfolios designed for diverse financial goals.

7. Putnam 529 for America scholarship plan features
High account value limit of $370,000*
17 investment options
Three goal-based asset allocation portfolio options
Ten individual fund options
Four Absolute Return Fund options
DALBAR award-winning service
* As of 1/1/16. Subject to annual review. For scholarship accounts, there is no contribution limit although contributions should be in line with anticipated scholarship awards.

8. Goal-based portfolios
Are actively managed and keep the same allocation mix, regardless of the child’s age
Balanced
Growth
Aggressive growth
15%
Stocks
Bonds
Cash
34%
100%
60% 6%
85%
Goal-based portfolios are designed to meet specific goals and levels of risk tolerance. Each portfolio maintains the same investment mix, regardless of the age of the child.
Let’s look at the balanced portfolio, which is designed to offer a balanced approach, with more moderate potential returns and less risk than the growth or aggressive growth portfolios. It typically has a mix of 60% stocks, 34% bonds, and 6% cash, with maximum and minimum band ranges, although the target allocation may change from time to time as market conditions warrant.
The Growth Portfolio offers potentially higher returns with a greater risk of principal loss. It has a targeted allocation of 85% stocks and 15% bonds. It may help you accumulate savings more rapidly than the Balanced Portfolio, but it comes with the potential for greater risk.
The Aggressive Growth Portfolio offers the potential for the highest returns over time, along with a correspondingly higher risk of principal loss. It has a targeted allocation of 100% stocks.
Balanced option
Growth option
Aggressive growth option
Putnam 529 GAA Growth Portfolio
Putnam 529 Balanced Portfolio
Putnam 529 Money Market Portfolio
Invests in Putnam 529 GAA Growth Portfolio and Putnam 529 All Equity Portfolio
Invests in Putnam 529 GAA All Equity Portfolio
Allocations shown are target allocations; actual allocations may vary. See the offering statement for details.

9. Individual investment options
Build your own portfolio with a range of choices
Stocks
Bonds
Cash
Putnam Equity Income Fund Option
Putnam Growth Opportunities Fund Option
Putnam Small Cap Value Fund Option
MFS Institutional International Equity Fund Option
Principal MidCap Blend Fund Option
SSgA S&P 500® Index Fund Option
Putnam High Yield Trust Option
Putnam Income Option
Federated U.S. Government Securities Fund: 2-5 years Option
Putnam Government Money Market Option*
You may also build your own portfolio of investment options. Putnam 529 for America offers several options that invest in a variety of professionally managed mutual funds.
The options cover the risk/reward spectrum so you can create a portfolio tailored to your specific needs.
* Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency.
The plan involves investment risk, including the loss of principal.

10. Absolute Return Funds +7% +5%
Putnam 529 for America is the only 529 account to offer a suite of absolute return funds as an investment option
The funds seek positive 3-year return targets of 1%, 3%, 5%, or 7% above inflation as measured by T-bills over a full market cycle and with lower relative volatility
+7%
+5%
Finally, I want to tell you about a feature that’s unique to Putnam 529 for America — the option to invest in Putnam Absolute Return portfolios.
Absolute Return portfolios are designed to help you meet your college savings goals while pursuing lower volatility than more traditional mutual fund investments.
The funds seek a positive return that exceeds the rate of inflation — as reflected by Treasury bills — over a period of three years, regardless of market conditions.
If you are concerned about market volatility, you might consider these portfolios.
Absolute return investing can be an ally in helping to navigate today’s market volatility
+3%
+1%
Chart does not represent the performance of Putnam Absolute Return Funds. Actual performance can be found on putnam.com.
The funds’ strategies are designed to be largely independent of market direction, and the funds are not intended to outperform stocks and bonds during strong market rallies. There is no guarantee that the funds will meet their objectives.

11. Putnam Absolute Return Funds
Putnam Absolute Return 100 Fund® option
Putnam Absolute Return 300 Fund® option
Putnam Absolute Return 500 Fund® option
Putnam Absolute Return 700 Fund® option
For investors considering short-term securities. Invests in bonds and cash instruments
For investors considering a bond fund. Invests in bonds and cash instruments
For investors considering a balanced fund. Can invest in bonds, stocks, or alternative asset classes
For investors considering a stock fund. Can invest in bonds, stocks, or alternative asset classes
There are four Absolute Return choices. They seek returns that exceed the rate of inflation by 1% (100 Fund), 3% (300 Fund), 5% (500 Fund) and 7% (700 Fund)
The funds invest in a wide range of securities in markets around the globe. The mix of investments is shifted as opportunities change, and the funds use progressive tools to help control risk.
The funds have the potential to outperform general markets during periods of flat or negative returns.
Since 1999, Putnam has managed absolute return strategies for institutional clients.
The funds’ strategies are designed to be largely independent of market direction, and the funds are not intended to outperform stocks and bonds during strong market rallies.
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 fund 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.

12. Getting started is easy

13. Contact [insert broker name]
Call 877-PUTNAM529 ( )
Visit putnam.com

14. Invest in their future Putnam 529 for America