JANUARY 2012

This is Putnam today.

Through the end of 2011, worries about slowing global economic growth and the European debt crisis resulted in risk aversion and volatility in markets around the world. While we have experienced some positive trends in recent months, stock markets ended the year essentially where they began. In all market environments, we believe investors need actively managed portfolios backed by analysis, insight, innovation, and experience. Also critically important is the counsel and expertise of a professional financial advisor. At Putnam, we offer funds to address a wide range of investor goals, as well as innovative tools to assist financial advisors and their clients. I encourage you to find out more by visiting us at putnam.com, and I thank you for your interest in Putnam Investments.

Robert L. Reynolds President and Chief Executive Officer

Experience.
We have added to our team of high achievers and restructured our equity organization, resulting in a performance-driven culture with a more nimble decision-making process. Fundamental research is the cornerstone of Putnams approach, backed by an integrated team of highly talented and experienced research analysts with worldwide reach.

There is no secret formula that will consistently produce good investment results. It comes down to smart, motivated people working creatively.
Walter C. Donovan
Chief Investment Officer 26 years of experience

Nick C. Thakore
U.S. Large Cap Equity 18 years of experience

Robert D. Ewing, CFA

U.S. Large Cap Equity 21 years of experience

David L. Glancy
Capital Structure/Leveraged 24 years of experience

Jeffrey L. Knight, CFA

Asset Allocation 24 years of experience

Simon Davis

Aaron M. Cooper, CFA

Shep Perkins, CFA

International Equities 18 years of experience

International Core Equity Global Equity Research 23 years of experience 12 years of experience

D. William Kohli
Global Strategies 24 years of experience

Michael V. Salm
Liquid Markets and Securitized Products 22 years of experience

Paul D. Scanlon, CFA

Global Credit 25 years of experience

Thalia Meehan, CFA

Tax Exempt Fixed Income 28 years of experience

Innovation.
New for advisors: FundVisualizerTM
At Putnam, we use leading technology and web-based capabilities to help financial advisors and their clients pursue their financial goals. One of the newest features we offer advisors is FundVisualizer, a powerful online tool that can be used to conduct analysis and model investment portfolios from a universe of over 11,000 mutual funds and ETFs. The tool features more than 60 performance and risk metrics and enables advisors to provide instant, dynamic fund-to-fund comparisons.

Thought leadership and analysis from Putnam experts

Our experienced team of portfolio managers and analysts delivers timely insights on topics that are making the news in the financial press. Putnam perspective pieces go into greater depth, exploring investment opportunities, strategies, and challenges across global markets. Our thought leadership resources include print and video commentary, and can be accessed at putnamperspectives.com.

NEW Putnam Short Duration Income Fund

For income investors who want to get off the sidelines while avoiding the potential volatility of long-term bonds, Putnam Short Duration Income Fund can provide an attractive alternative. The fund uses active risk management strategies to pursue a broad range of income securities. Befitting its name, the fund targets limited interest-rate risk and is backed by the deep sector research capabilities of Putnams fixed-income group. Four veteran portfolio managers representing different sectors of the bond market manage the fund and are led by Michael V. Salm, Putnams Co-Head of Fixed Income.

Service.
Putnam wins DALBAR service awards
Putnam Investments was honored with a 2011 DALBAR award for providing outstanding service to shareholders of its mutual funds. This was the 22nd consecutive year that Putnam has been recognized by DALBAR for service quality. Also, in 2012, Putnam received DALBARs firstever Total Client Experience award, which is based on a multi-dimensional analysis of customer service that measures security, processing accuracy, and information accuracy. DALBAR is a financial services market research and consulting firm that conducts rigorous, year-long testing of customer service based on industry benchmarks.

Visit Putnam online

There are many ways to communicate with Putnam and access insights from our portfolio managers.

putnam.com putnamperspectives.com facebook.com/putnaminvestments twitter.com/putnamtoday

At Putnam, we are committed to helping financial advisors and their clients have a great investment experience, whether they interact with us online, in person, or by phone.
Robert L. Reynolds
President and Chief Executive Officer

absolutereturnblog.com rothirablog.com youtube.com/putnaminvestments

Performance.
Keys to successful investing
Our compensation structure is aligned with performance goals Our portfolio managers are accountable for results We empower analysts to generate independent research We have a globally integrated research organization Our risk management is stringent and independent

Putnams performance goal

We seek top-quartile fund performance over any three-year period (as determined by Lipper). Managers in the top quartile of their peer groups receive their full performance-related compensation. Managers of funds in the bottom quartile receive no performance-related compensation.

Putnam is a leader in tax-free investing

100% of Putnams municipal bond funds outperformed their peers for the 10 years ending 12/31/11*
An experienced team
Putnams team of portfolio managers specializing in tax-free investing has 24 years of investment experience on average, and draws on the strength of our fully integrated fixed-income group of over 70 investment professionals.

A broad range of funds

Putnams lineup of tax-free funds includes lower-risk money market funds, higher-yielding (and higher risk) funds, and nine single-state funds whose income is exempt from federal, state, and local income taxes.

* Source: Lipper. 13 out of 13 funds based on cumulative class A total returns before sales charge. Results for other periods will vary. Past performance does not guarantee future results.

Consider these risks before investing: Putnam Short Duration Income Fund is not a money market fund. The effects of inflation may erode the value of your investment over time. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. 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. 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. Additional risks are listed in the funds prospectus. For Putnam tax-exempt funds: Capital gains, if any, are taxable for federal and, in most cases, state purposes. For some investors, investment income may be subject to the federal alternative minimum tax. Income from federally tax exempt funds may be subject to state and local taxes. 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. Since the fund invests in taxexempt bonds, which, to be treated as tax-exempt under the Internal Revenue Code, may be issued only by limited types of issuers for limited types of projects, the funds investments may be focused in certain market segments. Consequently, the fund may be more vulnerable to fluctuations in the values of the securities it holds than a fund that invests more broadly. The prices of bonds in the funds portfolio may fall or fail to rise over extended periods of time for a variety or reasons, including both general financial market conditions and factors related to a specific issuer or industry.

A BALANCED APPROACH
Since 1937, when George Putnam created a diverse mix of stocks and bonds in a single, professionally managed portfolio, Putnam has championed the balanced approach.

A WORLD OF INVESTING
Today, we offer investors a world of equity, fixedincome, multi-asset, and absolute-return portfolios to suit a range of financial goals.

A COMMITMENT TO EXCELLENCE
Our portfolio managers seek superior results over time, backed by original, fundamental research on a global scale. We believe in the value of experienced financial advice, in providing exemplary service, and in putting clients first in all we do.

You 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. You should read the prospectus carefully before investing.
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