SPECIAL REPORT BEST FUND FAMILIES

%

THE DOW JONES BUSINESS AND FINANCIAL WEEKLY



FEBRUARY 11, 2013

SPECIAL REPORT

BEST FUND

FAMILIES

Scott Pollack for Barron's

(over p lease)

THE PUBLISHER'S SALE OF THIS REPRINT DOES NOT CONSTITUTE OR IMPLY ANY ENDORSEMENT OR SPONSORSHIP OF ANY PRODUCT, SERVICE, COMPANY OR ORGANIZATION. Custom Reprints 800.843.0008 DO NOT EDIT OR ALTER REPRINT/? REPRODUCTIONS NOT PERMITTED #46422

The Best Fund Families of 2012

The top fund families did well across the board, and share a higher tolerance for risk.

Rank Family

Mutual

FUND RANKING

Fund

Tax-

Assets Weighted U.S. World Mixed Taxable Exempt

(bil) Score Equity Equity Asset Bond Bond

1. Putnam Investment Mgmt

45.4 74.54 4

5

9 11

30

2. PIMCO/Allianz

607.3 71.17 33

8

5

3

18

3. The Hartford

57.4 69.76 2 14 19 24

4

4. JPMorgan

185.3 67.36 12 20

12

7

48

5. Goldman Sachs & Co/GSAM

62.2 65.88 6 25 27 17

10

6. Oppenheimer Funds

159.5 64.83 25

7

30 10

2

7. Aberdeen Asset Mgmt

11.9 63.71 20

2 18 15

57

8. T Rowe Price Associates

371.6 63.36 3 34

2 48

29

9. MFS Investment Mgmt

113.9 62.39 7 27 16 31

15

10. TIAA-CREF

61.9 61.94 14

9

4 49

19

11. Principal Mgmt

106.2 61.47 23 29

13 19

21

12. John Hancock

115.7 60.52 13 36 20 16

40

13. Lord Abbett & Co

92.3 60.48 55 38

3

2

3

14. GE Asset Mgmt

16.3 59.34 5

3

17 60

50

15. Franklin Templeton

332.9 58.40 54 21

6

5

36

16. Dimensional Fund Advisors

157.0 57.90 1 33 23 53

52

17. Columbia Mgmt

135.7 56.18 19 40 21 25

25

18. Legg Mason

93.4 55.98 26 60 15

9

12

19. PNC Funds

2.5 55.43 31

1 10 57

56

20. Invesco

157.2 55.15 16 52 28 13

23

21. USAA Asset Mgmt

41.4 54.92 38 16 50 18

8

22. Fidelity Mgmt & Research

970.6 54.86 8 15 49 42

35

23. American Funds

939.9 54.32 11 18 32 51

28

24. Ivy Investment Mgmt

47.0 53.64 44 56

1 12

54

25. Waddell & Reed Invst Mgmt

20.5 53.23 27 45

11 28

49

26. UBS Global Asset Mgmt

10.1 53.17 30 44

14 26

46

27. Prudential Investments

38.7 52.91 35 19 45 21

34

28. Thrivent Financial Lutherans

14.4 52.79 47 13 29 20

42

29. First Investors Mgmt

6.5 52.11 24 30

8 56

39

30. Affiliated Managers Group

59.5 52.03 57 11 33

8

20

31. Vanguard Group

1,620.7 51.46 15 28 44 47

26

32. RidgeWorth Funds

18.7 51.40 10 17 59 46

14

33. Nuveen Fund Advisors

37.2 51.19 41 58

37

6

6

34. BMO Asset Mgmt

5.5 51.15 17 47 51 27

11

35. Calvert Investments

8.9 50.14 22 41 58 14

47

36. AllianceBernstein

48.4 49.30 9 54 48 34

43

37. Virtus Investment Partners

23.8 49.24 60 22 35

1

44

38. BNY Mellon/Dreyfus

58.0 47.82 32 31 53 33

33

39. BlackRock

556.0 47.44 29 48 42 29

31

40. Eaton Vance Mgmt

64.5 47.23 37 26 43 44

7

41. DWS Investments

38.7 46.89 49 23 40 30

22

42. Charles Schwab Invst Mgmt

38.0 46.83 21 24 34 61

16

43. Manning & Napier Advisors

18.0 46.69 39 32 31 32

61

44. SEI Group

26.1 45.45 34 53 41 35

24

45. American Century Invst Mgmt 92.0 44.59 43 12 46 59

27

46. Federated Investors

48.8 44.52 50 10 52 41

32

47. HighMark Capital Mgmt

2.7 43.76 52

6 47 43

55

48. Genworth Fin Wealth Mgmt

2.9 43.56 36 43 38 38

52

49. Delaware Mgmt

33.5 41.98 42 51 22 55

9

50. Wells Fargo Funds Mgmt

91.1 41.72 28 55 56 39

17

51. State Street Bank & Trust

66.2 41.45 56 49

7 45

38

52. Lazard Asset Mgmt

19.5 40.57 48

4 55 58

62

53. Neuberger Berman Mgmt

28.1 40.25 58 37 26 37

37

54. Northern Trust Investments

33.6 40.08 45 39 54 40

41

55. Russell Investment Group

36.9 39.69 40 50 36 50

51

56. MainStay Funds

47.9 39.54 53 46 24 54

5

57. Guggenheim Investments

16.2 39.47 18 61 61 36

13

58. Frost Investment Advisors

2.7 39.15 62 57 25

4

60

59. Victory Capital Mgmt

7.4 36.11 46 35 57 52

59

60. Pioneer Investment Mgmt

32.0 35.48 61 59 39 23

1

61. State Farm Investment Mgmt 12.8 34.37 59 42 60 22

45

62. Madison Investment Advisors

0.57 17.43 51 62 62 62

58

Alternatives@Putnam



Markets demand new ways of thinking.

Discover Putnam's proactive approach to managing volatility and pursuing superior results.

Robert L. Reynolds President and CEO Putnam Investments

With today's volatility, simply beating a benchmark may not be enough.

Putnam Absolute Return Funds target real returns over a full market cycle, utilizing active risk hedging and strategies that are independent of benchmarks.

When economic factors weigh on an index, individual companies can offer opportunity.

Putnam Spectrum Funds look beyond the benchmarks for independent performance, investing across the capital structure of leveraged companies.

The risks that come with owning stocks have outweighed the returns.

Putnam Dynamic Risk Allocation Fund reduces the role of equities by balancing it with other sources of risk and pursuing downside protection.

Rising rates could lead to losses for long-duration strategies.

Putnam Diversified Income Trust actively manages risk and duration, pursuing multiple sources of return with less reliance on interest rates.

Take a targeted approach.

PARTX PTRNX PJMDX PDMAX

Pursue the best ideas, wherever they are.

PVSAX PYSAX

Allocate risks, not just assets.

PDREX

Find new drivers of return.

PDINX

This is Putnam today.

Absolute Return Funds employ strategies that 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 in all funds above: All funds have risks, and you can lose money. Our allocation of assets among permitted asset categories may hurt performance. 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, 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. 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. For the Absolute Return 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. For the Absolute Return 500 Fund and 700 Fund, and the Spectrum Funds, these risks also apply: Investments in small and/ or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. For the Spectrum Funds, these risks also apply: Our focus on leveraged companies and the funds' non-diversified status can increase the funds' vulnerability to other risks. Our use of short selling may increase these risks. Additional risks are listed in the funds' prospectuses.

Request a prospectus or summary prospectus from your financial representative or by calling Putnam at 1-800-225-1581. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.

Putnam Retail Management

How Barron's ranked the fund families:

The Lipper/Barron's survey published February 9, 2013, for the 2012 award period, ranked Putnam #1 out of 62 fund families with funds in five categories: general U.S. stock, global or international, mixedasset, taxable bond, and tax-exempt bond. Putnam Investments ranked 27 of 53 and 36 of 46 for the 5and 10-year periods, respectively. Only funds with at least one year of performance were included. Returns were calculated minus the effects of sales charges and 12b-1 fees. Rankings were asset weighted, so larger funds had a greater impact on a fund family's overall ranking, and then weighted by category, with each category assigned a percentage. Past performance is not indicative of future results. Barron's is a registered trademark of Dow Jones & Company.

For complete performance for Putnam funds, visit .

Consider these risks before investing: Equity funds are generally subject to varying degrees of market, sector, liquidity, issuer, and investment style risks. See the prospectus for complete details. 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. International investing involves certain risks, such as currency fluctuations, economic instability, and political developments.

This article should not be considered an offer of any fund for which Putnam Retail Management is not the distributor. This is not a recommendation to purchase any mutual fund or security.

Not FDIC Insured

May Lose Value

No Bank Guarantee

Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or summary prospectus if available, 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

AR226 279373 2/13

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