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

2. | 2 EO001 279927 2/13 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

3. | 3 EO001 279927 2/13 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 classes 1925–2011 CashBondsStocks 0.58% 2.70% 6.77% Returns after 3.00% inflation

4. | 4 EO001 279927 2/13 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 markets History shows market leadership changes Annual returns for key indexes (2002–2011) ranked in order of performance (highest to lowest) 2002200320042005200620072008200920102011 32.07%55.82%31.49%34.00%35.92%39.39%10.11%78.51%28.48%13.56% 21.9938.5925.55 32.1732.585.2458.7618.888.69 16.5736.7420.2513.5426.3411.632.0631.7816.937.84 13.6531.0617.2812.1315.7211.45-2.3529.8214.867.35 10.2527.4812.1410.2511.5811.17-12.0328.6112.246.59 3.6422.2111.956.129.866.97-26.8028.349.025.17 1.9820.7211.623.076.946.16-37.3113.497.751.03 1.7818.5211.252.844.855.14-37.9711.416.540.10 -6.178.408.462.624.335.00-43.385.936.31-1.18 -15.944.104.342.430.412.69-46.494.395.21-12.14 -21.541.151.33-9.20-15.04-16.82-53.330.210.13-18.42 U.S. stocks | Russell 3000 IndexEmerging-market (EM) stocks | MSCI Emerging Markets Index (ND) U.S. bonds | Barclays Capital U.S. Aggregate Bond IndexEmerging-market (EM) bonds | JPMorgan Emerging Markets Global Diversified Index International bonds | Citigroup Non-U.S. World Government IndexREITs | MSCI U.S. REIT Index U.S. high-yield bonds | JPMorgan Developed High Yield IndexTIPS | Barclays Capital U.S. TIPS Index Cash | BofA Merrill Lynch U.S. 3-month T-Bill IndexCommodities | S&P GSCI Commodity Index International stocks | MSCI EAFE Index (ND) Highest return Lowest return

5. | 5 EO001 279927 2/13 U.S. stocks are represented by the Russell 3000 Index, an unmanaged index of the 3,000 largest U.S. companies. U.S. bonds are represented by the Barclays Capital U.S. Aggregate Bond Index, which is an unmanaged index used as a general measure of fixed-income securities. International bonds are represented by the Citigroup Non-U.S. World Government Index, an unmanaged index generally considered to be representative of the world bond market excluding the United States. U.S. high-yield bonds are represented by the JPMorgan Developed High Yield Index, an unmanaged index of high-yield fixed-income securities issued in developed countries. Cash is represented by the BofA Merrill Lynch U.S. 3-month T-Bill Index used as a general measure for money market or cash instruments. International stocks are represented by the MSCI EAFE Index (ND) of international stocks from Europe, Australasia, and the Far East. Emerging-market (EM) stocks are represented by the MSCI Emerging Markets Index (ND), a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. Emerging-market (EM) bonds are represented by the JPMorgan Emerging Markets Global Diversified Index, which is composed of U.S. dollar-denominated Brady bonds, eurobonds, traded loans, and local market debt instruments issued by sovereign and quasi-sovereign entities. REITs are represented by the MSCI U.S. REIT Index, a free float-adjusted market capitalization weighted index that is composed of equity REITs. TIPS are represented by the Barclays Capital U.S. TIPS Index, an unmanaged index that tracks the performance of U.S. government inflation protected securities. Commodities are represented by the S&P GSCI Commodity Index, a composite index of commodity sector returns that represents a broadly diversified, unleveraged, long-only position in commodity futures.

6. | 6 EO001 279927 2/13 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)

7. | 7 EO001 279927 2/13 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

8. | 8 EO001 279927 2/13 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.

9. | 9 EO001 279927 2/13 Mix investments for all seasons RecessionExpansionInflationDeflation Equities Bonds Commodities Credit

10. | 10 EO001 279927 2/13 Rebalance for consistency Stocks Bonds Original balanced portfolio 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% 2002200320042005200620072008200920102011 Portfolio out of balance Without rebalancing: The market can change your asset allocation

11. | 11 EO001 279927 2/13 Rebalance for consistency Balanced portfolio 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% 2002200320042005200620072008200920102011 With active rebalancing, asset allocation remains consistent Stocks Bonds

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

13. | 13 EO001 279927 2/13 Putnam Asset Allocation Funds can invest in international investments, which involve risks such as currency fluctuations, economic instability, and political developments. The funds invest some or all of their assets in small and/or midsize companies. Such investments increase the risk of greater price fluctuations. The use of derivatives involves additional risks, such as 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 can also have a significant portion of their holdings in bonds. Mutual funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds have more exposure to interest- rate risk than short-term bonds. Lower-rated bonds may offer higher yields in return for more risk. Unlike bonds, bond funds have ongoing fees and expenses.

14. Over two decades of experience James A. Fetch 17 years Robert J. Kea, CFA 25 years Joshua B. Kutin, CFA 15 years Robert J. Schoen 23 years Jason R. Vaillancourt, CFA 20 years | 14 EO001 279927 2/13

15. | 15 EO001 279927 2/13 Conservative Fund Balanced Fund Growth Fund A choice of four funds Putnam 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.

16. | 16 EO001 279927 2/13 Consider these risks before investing: 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. The fund may invest a portion of its assets in small and/or midsize companies. Such investments increase the risk of greater price fluctuations. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Our allocation of assets among asset classes may hurt performance, and our efforts to diversify risk through the use of leverage and allocation decisions may not be successful. The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Our active trading strategies may lose money or not earn a return sufficient to cover trading and other costs. Our use of leverage increases these risks by increasing investment exposure. REITs involve the risks of real estate investing, including declining property values. The use of short selling may result in losses if the securities appreciate in value. Commodities involve the risks of changes in market, political, regulatory, and natural conditions.

17. | 17 EO001 279927 2/13 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

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

19. | 19 EO001 279927 2/13 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

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