Putnam mutual fund pricing options

Putnam mutual fund pricing options

Putnam offers several pricing choices to help you meet a range of client needs. We offer traditional front-end load class A shares, back-end load class B shares, level-load class C shares, and mid-level front-end load class M shares.

A guide to Putnam's pricing options

Maximum front-end sales charge

Contingent deferred sales charge (CDSC) Free exchange Maximum dealer commission

Annual trail commissions

Class A

Class B

5.75% on equity funds, Asset Allocation Portfolios, and Absolute Return 500 and 700 Funds; 4.00% on most taxable and tax-free income funds; 1.00% on Absolute Return 100 and 300 Funds, Floating Rate Income Fund, and Short-Term Municipal Income Fund

None

None*?

6-year declining CDSC: 5.00%, 4.00%, 3.00%, 3.00%, 2.00%, 1.00% on most funds

With other class A shares

5.00% on equity funds, Asset Allocation Portfolios, Absolute Return 500 and 700 Funds*; 3.50% on most taxable and tax-free income funds; 1.00% on Absolute Return 100 and 300 Funds, Floating Rate Income Fund, and Short-Term Municipal Income Fund

Accrue immediately and are paid quarterly; 0.25% on most funds; no trails on money market fund*

With other class B shares 4.00% on most funds

Accrue immediately and are paid quarterly; 0.25% on most funds; 0.25% on most tax-free funds; no trails on money market funds

Class C None

1.00% during the first year

With other class C shares 1.00% on all funds

Class M

3.50% on equity funds; 3.25% on most taxable and taxfree income funds; 0.75% on Absolute Return 100 and 300 Funds, Floating Rate Income Fund, and Short-Term Municipal Income Fund

None?

With other class M shares 3.00% on most funds

Accrue after the 13th month and are paid quarterly; 1.00% on most funds; 0.50% on Putnam Money Market Fund

Accrue immediately and are paid quarterly; 0.65% on equity funds; 0.40% on income funds; 0.30% on Absolute Return 100 and 300 Fund, Floating Rate Income Fund, and Short-Term Municipal Income Fund; 0.15% on money market funds

Consult the fund prospectuses and SAI for complete information on sales charges and commissions.

F1 or NAV purchases greater than $1 million, there is a maximum 9-month contingent deferred sales charge; brokers receive a 1% commission up front for the first $4 million in purchases during a 12-month period, and a 0.25% basis point trail beginning in the 13th month.

In the case of tax-free funds, the dealer commission includes a prepaid first-year service fee.

Class T shares are available on Putnam Money Market Fund and pay a 0.25% basis point trail quarterly.

?Contingent deferred sales charge may be applied to certain redemptions of class A and M shares bought without an initial sales charge.

For new purchases, there is no initial sales charge for Putnam Short Duration Income Fund.

FOR DEALER USE ONLY -- Not for public distribution

Comparing features of Putnam mutual fund retail pricing options

CLASS A SHARES FRONT-END LOAD

? Best choice for investors who prefer to pay the sales charge up front

CLASS B SHARES BACK-END LOAD

? No initial sales charge; 100% of investment goes to work immediately for shareholders

? L owest level of ongoing fees (except class Y shares)

? Equity funds available at NAV for purchases greater than $1 million

? Income funds and Absolute Return Funds available at NAV for purchases greater than $500,000

? Equity sales charge breakpoints starting at $50,000

? Tax-free income funds sales charge breakpoints starting at $100,000

? Systematic withdrawals of up to 12% annually with no contingent deferred sales charge

? Convert to class A shares no later than the end of year 8

? The maximum asset level for a class B share account must be less than $100,000. Based on cumulative rights of accumulation, any investment at or above this amount will be invested in an appropriate share class or refused

? Taxable income funds sales charge breakpoints starting at $100,000

CLASS C SHARES LEVEL LOAD

? No initial sales charge; 100% of investment goes to work immediately for shareholders

? Aligns interests of the shareholder and advisor, since both benefit from the growth of the client's assets

? Because there is no upfront sales charge, class C shares are often used in lieu of fee-based programs

? The maximum asset level for a class C share account must be less than $1 million; less than $500,000 for income funds and Absolute Return Funds

CLASS M SHARES MID-LEVEL LOAD

? Combines features of class A and class B shares with lower front-end load

? The maximum asset level for a class M share account must be less than $1 million; less than $500,000 for income funds and Absolute Return Funds

Sales charges and breakpoints for Putnam's class A shares

EQUITY FUNDS (Growth, Value, Blend, Asset Allocation, and Global Sector)

TAXABLE INCOME FUNDS

Under $50,000 $50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999

Sales charge 5.75% 4.50 3.50 2.50 2.00

Dealer commission 5.00% 3.75 2.75 2.00 1.75

PUTNAM ABSOLUTE RETURN 500 AND 700 FUNDS

Under $50,000 $50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999

Sales charge 5.75% 4.50 3.50 2.50

Dealer commission 5.00% 3.75 2.75 2.00

Under $50,000 $50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999

Sales charge 4.00% 4.00 3.25 2.50

Dealer commission 3.50% 3.50 2.75 2.00

TAX-FREE INCOME FUNDS

Under $25,000 $25,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999

Sales charge 4.00% 4.00 3.25 2.50

Dealer commission 3.50% 3.50 2.75 2.00

PUTNAM FLOATING RATE INCOME FUND , PUTNAM SHORTTERM MUNICIPAL INCOME FUND, AND PUTNAM ABSOLUTE RETURN 100 AND 300 FUNDS

Under $100,000 $100,000 to $249,999 $250,000 to $499,999

Sales charge 1.00% 1.00 1.00

Dealer commission 1.00% 1.00 1.00

FOR DEALER USE ONLY - Not for public distribution

Comparing investors' account values

The tables below show the hypothetical growth in account values at various investment levels in equity and income funds for four pricing options offered by Putnam: class A, B, C, and M shares. Performance is based on an 8% annual growth rate for equity funds and a 7% annual growth rate for income funds less applicable 12b-1 fees and maximum sales charges or CDSC, and does not reflect the performance or actual expenses of any Putnam fund.

HYPOTHETICAL RESULTS OF EQUITY FUNDS

Initial investment $10,000

$100,000

$500,000

Holding period

3 years 5 years 7 years 10 years 3 years 5 years 7 years 10 years 3 years 5 years 7 years 10 years

Class A

$11,784 13,677 15,873 19,846 120,655 140,031 162,519 203,199 612,652 711,038 825,224 1,031,786

Class B*

$11,927 13,780 15,985 19,838

N/A N/A N/A N/A N/A N/A N/A N/A

Class C

$12,227 13,980 15,985 19,544 122,266 139,802 159,851 195,445 611,332 699,008 799,257 977,223

Class M

$11,887 13,659 15,696 19,334 121,331 139,421 160,209 197,344 609,735 700,646 805,112 991,727

Class R

$12,410 14,331 16,550 20,539

124,100 143,314 165,502 205,389 620,502 716,570 827,511 1,026,944

HYPOTHETICAL RESULTS OF INCOME FUNDS

Initial investment $10,000

$100,000

$500,000

Holding period 3 years 5 years 7 years 10 years 3 years 5 years 7 years 10 years 3 years 5 years 7 years 10 years

Class A $11,673 13,297 15,148 18,419 117,638 134,013 152,668 185,629 607,950 692,575 788,980 959,321

Class B* $11,590

13,145 14,977 18,076

N/A N/A N/A N/A N/A N/A N/A N/A

Class C $11,890 13,345 14,977 17,808 118,901 133,448 149,774 178,084

N/A N/A N/A N/A

Class M $11,676 13,235 15,003 18,106 119,176 135,091 153,130 184,805

N/A N/A N/A N/A

1 Assumes redemption and applicable CDSC at end of period. Assumes class B shares converted to class A shares after year 8. Shares may convert sooner in some cases. Class B share purchase maximum is under $100,000.

These tables do not apply to Absolute Return 100 and 300 Funds, Floating Rate Income Fund, Short-Term Municipal Income Fund, and Short Duration Income Fund.

Class R $12,068

13,680 15,507 18,714 120,685 136,801 155,069 187,145 603,425 684,004 775,343 935,723

FOR DEALER USE ONLY - Not for public distribution

Your clients 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 Putnam Dealer Marketing Services at 1-800-354-4000. Read the prospectus carefully before investing.

FOR DEALER USE ONLY - Not for public distribution

Putnam Retail Management

Putnam Investments | One Post Office Square | Boston, MA 02109 | PF5032811084/13

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