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Not FDIC Insured

May Lose ValueNo Bank Guarantee

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EO028 290847 2/15

What isa bond?A loan to a corporationor government. Investors lend the moneyRepaid in specified period of time (up to 30 years)Repaid with specified amount of interest income

Risk versus returnAmount of income reflects creditworthiness of issuerHighest-quality bonds(rated AAA or AA) = Lowest yields

U.S. Treasury bonds

Municipal bondsBonds issued by corporations with a spotless track record of honoring their debt obligationsMedium-quality bonds(ratings from AA to BB)= Moderate yieldsNon-U.S. government bonds

Bonds issued by corporations in decent financial healthLowest-quality bonds(rated BB or lower) = Highest yields

Emerging-market bondsBonds issued by new corporations or those in poor financial health

Taxable or tax free?

Consider thetax-equivalent yield

Municipal bond yield

Your tax bracket

15.0% 25.0%

28.0%

36.8%*

38.8%*

43.4%*

3%

3.53

4.00

4.17

4.75

4.90

5.30

4%

4.71

5.33 5.56 6.33 6.54 7.075% 5.88 6.67 6.94 7.91 8.17 8.836% 7.06 8.00 8.33 9.49 9.80 10.60Equivalent yield of a taxable bond

For

illustrative purposes only.

* Includes 3.8% Medicare surtax effective 1/1/13

Municipal bond yield

Your tax bracket

15.0% 25.0%

28.0% 36.8%* 38.8%*

43.4%*

3% 3.53

4.00

4.17

4.75

4.90

5.30

4%

4.71

5.33

5.56

6.33

6.54

7.075% 5.88 6.67 6.94 7.91 8.17 8.836% 7.06 8.00 8.33 9.49 9.80 10.60Equivalent yield of a taxable bondConsider thetax-equivalent yield

An investor subject to a 36.8% tax rate with a 5% tax-free yield will get the equivalent of a 7.91% after-tax yield.

For illustrative purposes only.

* Includes 3.8% Medicare surtax effective 1/1/13

Calculating tax-equivalent yield

=

Tax-equivalent yield

Tax-free yield100 – your tax rate

=

7.91%

5

100

–

36.8

For illustrative purposes only.

What benefits canbonds provide?Interest income during the life of the bondPotential for capital appreciation if interestrates decline and/or market dynamics changePotential to reduce overall volatility of portfolio composed primarily of equities

One predictable thing about the market — it is unpredictable

Past performance does not indicate future results.

Indexes are unmanaged and show broad market performance. It is not possible to invest directly in an index.

Highestreturn

Lowestreturn

U.S. Small-Cap Growth Stocks

| Russell 2000 Growth Index

International stocks

| MSCI EAFE

Index (ND)

U.S. Large-Cap Growth Stocks

| Russell 1000 Growth Index

U.S. Bonds

| Barclays

U.S. Aggregate

Bond Index

U.S. Small-Cap Value Stocks

| Russell 2000 Value IndexCash | BofA Merrill Lynch U.S. 3-month Treasury Bill IndexU.S. Large-Cap Value Stocks | Russell 1000 Value IndexChanges in market performance, 1992–20141992199419961998200020022004

2006

2008

2010

2012

2014

Small-Cap Growth Stocks are represented by the Russell 2000 Growth Index, which is an unmanaged index of those companies in the Russell 2000 Index chosen for their growth orientation.Large-Cap Growth Stocks are represented by the Russell 1000 Growth Index, which is an unmanaged index of capitalization-weighted stocks chosen for their growth orientation.Small-Cap Value Stocks are represented by the Russell 2000 Value Index, which is an unmanaged index of those companies in the Russell 2000 Index chosen for their value orientation.Large-Cap Value Stocks are represented by the Russell 1000 Value Index, which is an unmanaged index of capitalization-weighted stocks chosen for their value orientation.International Stocks are represented by the MSCI EAFE Index, which is an unmanaged indexof international stocks from Europe, Australasia, and the Far East.U.S. Bonds are represented by the Barclays Aggregate Bond Index, which is an unmanaged index used as a general measure of fixed-income securities.

Cash is represented by the BofA Merrill Lynch U.S. 3-Month Treasury Bill Index, which is an unmanaged index used as a general measure for money market or cash instruments.

When stocks get shaky,bonds can add stability

Data is as of 12/31/14 and is historical. Past performance does not guarantee future results. Stocks are represented by the S&P 500 Index, which is an unmanaged index of common stock performance. Bonds are represented by the Barclays Aggregate Bond Index, an unmanaged index of U.S. investment-grade fixed-income securities. It is not possible to invest directly in an index.

Annual market results (%)

Active rebalancingStocksBonds

Balanced

portfolioOut-of-balanceportfolio

Stocks are represented by the S&P 500 Index and bonds by the Barclays 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.

Without rebalancing: The market controls asset allocation and investors don’t systematically rotate out of less attractive and into more attractive investments

28%

40%

60%

72%

Active rebalancingBalancedportfolio

Stocks are represented by the S&P 500 Index and bonds by the Barclays 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.

40%40%60%

60%

Balanced

portfolio

Stocks

Bonds

Without rebalancing: The market controls asset

allocation and investors don’t systematically

rotate out of less attractive and into more attractive investments

A BALANCED APPROACH A WORLD OF INVESTINGA COMMITMENT TO EXCELLENCE

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Why Putnam for fixed income?Over 75 years of fixed-income investing experience Manages $55.7 billion in fixed-income securitiesMore than 80 investment professionals organized into specialist teams

As of 6/30/14.

Putnam American Government Income FundPutnam Diversified Income TrustPutnam Emerging Market Income Fund

Putnam Floating Rate Income Fund

Putnam Global Income TrustPutnam High Yield TrustPutnam Income Fund

Putnam Short Duration Income FundPutnam Tax Exempt Income FundPutnam Tax-Free High Yield FundPutnam fixed-income funds cover all bond sectors

U.S. governmentsecurities

Investment-gradecorporate bonds

International bonds

High-yield bonds

Emerging-market bonds

Tax-free investment-

grade bonds

Tax-free high-yield

bonds

Floating rate loans

Mortgage-backed securities

Building a solid financialfoundation with bondsWhat is a bond?Taxable or tax free: Which is right for you?When stocks are shaky, bonds often are stableAdding bonds reduces volatilityWork with a trusted financial advisorTo select the right investmentsTo ensure that accounts are set up with your futurein mind

Consider these risks before investing:

International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. 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 and the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise. 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. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Unlike bonds, funds that invest in bonds have fees and expenses. Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer or industry. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. You can lose money by investing in the fund

. For tax-exempt funds, these risks may also apply: Capital gains, if any, are taxed at the federal and, in most cases, state levels. The Short Duration Income Fund is not a money market fund.

This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions.

Investors 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 representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.

Putnam Retail Management putnam.com