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This is Putnam today.
The support of a strong corporate parent
Putnam enjoys the full support of Power Corporation of Canada, a diversified financial and industrial holding company and one of the largest and most successful asset managers in Canada.
A vision for retirement
The future of retirement, and the retirement services industry, depends largely upon two things: public policy innovation and private sector product innovation. We’ve taken on a role in both of these areas, advocating for legislative initiatives and developing new products that help plan participants improve the chances for successful retirement outcomes.
Leadership and product innovation
Putnam is taking a leadership position in the retirement services industry by focusing on the needs of both plan sponsors and plan participants. Strengthening defined contribution plans is a critical factor in the retirement services business. Putnam is leading the way in helping to reliably deliver lifelong income to workers.
A focus on results
Helping plan sponsors and plan participants succeed is our most important goal. For us, that means remaining focused on delivering results in everything we do.
Meeting the retirement savings challenge.
Over time, access to guaranteed retirement programs
like pensions has declined in America. That decline has
shifted the responsibility of generating retirement income
to individuals and to market-based plans like 401(k)s.
At Putnam, we’re working to meet this retirement savings
challenge head on by helping to improve the effective-
ness of workplace savings plans — both as a vehicle for
accumulating assets and for providing a reliable source
of income in retirement.
The best measure of success for any
retirement system is its ability to
reliably replace — for life — the income
people made while working.
Robert L. ReynoldsPresident and Chief Executive Officer
Our goal is to help make participants successful in saving for retirement.Years of study have helped us understand what elements of a plan lead
to more successful outcomes for participants. We address their most
important questions by showing them where they are today, where they
need to be in order to retire successfully, and how to use their retirement
plan to get there.
Participants should know how their strategy translates into monthly retirement income.
•In the online experience
•In quarterly statements
•In the personalized educational material they receive
Plan design should encourage savings.
•Auto-plan features help improve the results of most participants.
•Auto-enrollment gets more participants to take the first step into retirement saving.
•Auto-increase helps ensure that participants stay on track toward their goals.
We didn’t just envision the
retirement plan of the future.
We put it into practice.
Jeffrey R. CarneyHead of Global Marketing, Products, and Retirement
Default options should include stronger protection against market volatility.
•The potential for positive returns in down markets
•Potentially reduced volatility, particularly for investors who are nearing or in retirement
•The potential for more reliable returns from year to year, minimizing the damaging effects of losses
Advice and guidance should be available to all plan participants.
Investors of all types should have the ability to get the information they need to create a retirement plan strategy, or have one created for them. That’s why we offer online tools and resources for every type of investor, including:
•Online advice
•Online guidance
•Managed account service
Communications and education that reinforce positive activity
We believe that the best way for investors to make informed retirement investing decisions is to have access to the right information — when they need it.
The goal of our communications programs is to help participants become more engaged with their plan, and to provide them with the resources they need to reliably replace the income they made while working.
Advice and guidance for every employee
Each plan participant has his or her own comfort level with investing and pursuing financial goals. That’s why we offer personalized advice and guid-ance for every type of investor. Our comprehensive suite of services provides options for plan sponsors, while giving participants the resources to address their own unique retirement needs.
We provide a range of materials that deliver retirement investing information. We’ve also developed an iPhone app that instantly demonstrates the power of saving money on purchases — and investing those savings for the future.
We believe it’s our responsibility to help participants achieve successful outcomes.Plan design plays a big part in the success of any plan — and in a
participant’s ability to retire comfortably. We use automated features
to establish the right framework for plan participants from the
time they sign up, and throughout their involvement in the plan.
Our ultimate goal is to help them prepare for retirement.
An intuitive Web experience
Our participant Web site provides the resources required to manage a retirement portfolio. Robust tools and an innovative approach help investors find retirement planning solutions. The site helps plan participants know where they stand, and directs them to take action to reach their retirement savings goals.
Lifetime IncomeSM Analysis Tool provides a whole new way to look at retirement
Unlike calculators that are seldom viewed or completed by participants, the Lifetime Income Analysis Tool is the first thing your participants will see when they log in. The new Web-based tool allows them to view their retirement plan balance, as well as the estimated amount of monthly income they’ll need in retirement. The tool also displays the participant’s age, income, contribution rate, retirement age, current savings, and asset allocation to deliver information that’s up-to-date and easy to understand.
The interactive tool allows users to model different saving and retirement scenarios that show how they may close their savings gap, if there is one. Plan participants can make changes to their contribution rate instantly.
IMPORTANT: The projections, or other information generated by the Lifetime Income Analysis Tool regarding the likelihood of var-ious investment outcomes, are hypothetical in nature. They do not reflect actual investment results and are not guarantees of fu-ture results. The results may vary with each use and over time. The analyses present the likelihood of various investment outcomes if certain investment strategies or styles are undertaken, thereby serving as an additional resource to investors in the evaluation of the potential risks and returns of investment choices.
Each simulation takes into account the participant’s current plan balance and investment mix, as well as his or her age, income, re-tirement date, contribution rate, likely future savings, and estimated Social Security benefit. The tool runs over 50 billion market simulations to provide an estimate of a monthly income likely to be generated at retirement. The Lifetime Income Analysis Tool is an interactive investment tool designed for Putnam 401(k) participants to illustrate the estimated impact of a participant’s plan balances and projected savings on income in retirement. The tool does not take into account post-tax contributions to savings. It also cannot account for dramatic changes in a participant’s personal situation, including unexpected expenses and other financial situations that may negatively affect one’s estimated monthly income in retirement.
Outcome-oriented tools and resources
Prescriptive approach allows changes to be implemented immediately
Easy access to account balances
Plan sponsors deserve a partner who understands the value of innovation.Creating a plan that works for your company — and helps create successful
outcomes for your plan participants — requires a commitment to new ideas,
fresh thinking, and better solutions. At Putnam, we’re always looking for
ways to improve the industry, as well as our own offerings.
Our solutions align with your needs
Every plan is different. And every plan requires a different approach. That’s why we tailor each plan to the needs of the plan sponsor and its plan’s participants. In every case, we focus on delivering the best value possible for cost. Our goal is to build a better retirement plan and give your employees the outcome they deserve.
A powerful and flexible platform
Your plan is part of FASCore, the fourth-largest recordkeeper in the country.* The platform services over 22,000 plans, with over 4.1 million participants. Its modern, server-based processing engine provides flexibility with scalable — and virtually unlimited — capacity.
* Putnam and FASCore are affiliated with Great-West Life & Annuity Insurance Company.
Your Plan Sponsor Web site offers a comprehensive view of your plan.
Making an investment in plan management tools
At Putnam, we understand the importance of making it easier and more convenient for you to manage your plan — and to manage your fiduciary responsibilities. Our new plan sponsor Web site offers a comprehensive look at all the relevant information about your plan. Features of the new plan sponsor Web site include:
Plan Analytics, which details participation rates, deferral rates, and average account balances
On-demand reporting and testing, which allows you to measure success and identify areas for focus
Fiduciary Central, which provides protection to plan fiduciaries with clear documentation of all plan-related developments
Investment details on each fund held in your plan, including performance data, assets held by participants, and other details
Payroll Bridge, which streamlines contribution processing by integrating with your payroll provider
Participant Emulator, which provides view-only access to participant accounts
Alerts, forms, transactions, your profile, and the latest retirement plan and investing news
On-demand, real-time access to data allows you to generate reports instantly.
Putnam is a recognized leader in service.
Building a one-to-one relationship
Putnam’s team of retirement experts is led by a dedicated relationship manager who is assigned to your plan as your single point of contact, and who is responsible for the day-to-day activities of your plan. Your Relationship Manager will establish a business plan, set goals, and conduct quarterly reviews — all of which can be delivered and managed through our plan sponsor Web site. The team offers personalized, proactive service, and is:
Dedicated
Responsive
Service-oriented
Aligned with your goals
Putnam is a 20-time winner of the DALBAR Mutual Award for industry-leading service.
Award-winning results
Putnam has been honored for the 20th consecutive year with DALBAR service awards, which are presented annually to firms that deliver industry-leading service to their customers, based on testing by DALBAR, an independent market research firm. In 2009, for the 11th time, Putnam won awards in each of the three categories — to investors, to financial advisors, and to annuity contract holders.
Rated Best-in-Class by PlanSponsor magazine
Putnam scored high in a recent PlanSponsor magazine survey of several key drivers of overall plan sponsor satisfaction.
Best-in-class awards included:
•Relationship Manager responsiveness
•Internet services
•Account representative knowledge
•Asset allocation focus
PlanSponsor magazine’s 2009 survey rates Putnam “Best-in-Class.”
Committed to clear, complete disclosure of all fees and expenses
Plan sponsors and participants have the right to know exactly how much they’re paying for the ben-efits provided by their retirement plan. Our fees and expenses are available online for retirement plan sponsors and plan participants; we believe full dis-closure is the best way for anyone to understand the true value of his or her plan.
More than just a total investment expense ratio, we detail:
•Amounts paid to all asset managers
•Advisor payments
•Specific dollar costs for recordkeeping and plan servicing
We seek your feedback for improvement
We regularly conduct third-party reviews in a number of areas of client satisfaction, so you can be assured that we’re hearing your concerns and working to meet your needs.
Participant Service Awards
Communication materials
Education program
Statement clarity
Enrollment assistance
Asset allocation focus
Statement accuracy
Internet services
Sponsor Service Awards
Internet services
Account representative knowledge
Responsiveness
92% of our clients would recommend
Putnam as a plan provider.
2009 PlanSponsor magazine survey
Survey is based on 5,635 responses from plan sponsors. Quartile rankings are for plans between $50M and $200M.
A range of investment products that can help plan participants make the right choices.Creating an appropriate investment lineup for your plan participants requires that
you have access to a wide range of products to suit different types of investors.
Investment flexibility and an open platform
Plan sponsors have come to expect — and demand — an open platform from which to choose funds and build a lineup. We blend open architecture with Putnam products that help meet the needs of your plan participants. We offer:
•A universe of 10,000 fund choices
•Qualified default investment alternative (QDIA)options ideally suited to your participants
•Putnam RetirementReady® Funds with a more conservative glide path for those seeking less volatility and more income
•Putnam Absolute Return Funds designed to pursue positive returns with less volatility than more traditional relative return funds
•Putnam equity funds
•Managed accounts
•Fixed-income offerings, including stable value funds
A choice in QDIAs
Putnam offers a number of products that can serve as QDIAs for participant-directed defined contribution plans, including:
•Putnam Absolute Return 500 Fund
•Putnam RetirementReady Funds
•Putnam Asset Allocation Funds
Creating a fund lineup
Your financial advisor can help you choose from hundreds of investment offerings, across all asset classes and styles, from leading investment managers. We offer funds from every category, including:
•Asset allocation
•International
•Specialty
•Small cap
•Mid cap
•Large cap
•Balanced
•Bond
•Money market
•Stable value
Each RetirementReady Fund has a different target date indicating when the fund’s investors expect to retire and begin with-drawing assets from their account. The dates range from 2010 to 2050 in five-year intervals, with the exception of the Maturity Fund, which is designed for investors at or near retirement.
The funds are generally weighted more heavily toward more aggressive, higher-risk investments when the target date of the fund is far off, and more conservative, lower-risk investments when the target date of the fund is near. This means that both the risk of your investment and your potential return are reduced as the target date of the particular fund approaches, although there can be no assurance that any one fund will have less risk or more reward than any other fund.
The principal value of the funds is not guaranteed at any time, including the target date.
PeoplePutnam is committed to seeking and retaining top talent. Our investment professionals are smart, experienced, and driven to outperform. And our analysts offer impressive credentials, including years of experience, deep sector knowledge, and hands-on experience in the industries they follow.
ProcessAs active managers, our goal is to generate returns that exceed those of benchmarks but with an eye on risk management. Putnam is big enough to have a global footprint in every asset class. Yet we’re nimble enough to capitalize on a range of opportunities, to share information across all our areas of expertise, and to create a culture of investment excellence.
Performance In February 2010, Barron’s named Putnam the top mutual-fund
family for performance in 2009 across a broad range of asset classes and funds. In April 2010, Institutional Investor named Putnam the “Mutual Fund Manager of the Year”.
Putnam has combined the
right people and process to
deliver performance for the
shareholders in our funds.
Top performance remains our
goal for every plan sponsor
we serve.
Walter DonovanChief Investment Officer
The Lipper/Barron’s survey, published February 1, 2010, included 61 fund families with funds in five categories: general U.S. stock, global or international, mixed-asset, taxable bond, and tax-exempt bond. 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. Putnam ranked 43 of 54 and 46 of 48 for the 5- and 10-year periods, respectively. Past performance is not indicative of future results. For more information on the Lipper/Barron’s survey methodology, visit putnam.com. Barron’s is a registered trademark of Dow Jones & Company.
Institutional Investor Research Group administered surveys by e-mail, phone calls, and conferences to more than a thousand of the top U.S. foundations and endowments, corporate pension plans, and public pension plans over a two-month period. Investors were asked to rank their top managers in the 20 awarded asset classes on a scale of 1 to 10 for the following attributes: client service, innovation, performance, reputation, and risk management. Winners were identified based on the analysis of the survey data.
Providing leadership and vision for the future
Today, we’re advocating for legislation that helps people save for retirement. We’re developing new products that make it easier for plan participants to take control of their retirement investing plans and reach their goals. And our team continues to innovate.
Proven innovation with an aim to deliver value
As we continue to help improve the retirement industry, our focus remains on delivering value to both plan sponsors and plan participants alike. What we seek to accomplish is a better retirement plan; our promise is to help deliver successful outcomes for participants.
Helping plan participants reach their goals
We’ll never lose sight of the reason why we’re in the defined contribution business — to help plan participants get to where they need to be. We’ve been in the retirement savings business for over 70 years, and we’re dedicated to the success of plan participants.
Our commitment to the defined contribution business is clear.We’ve built a team of experienced industry veterans who understand
the importance of helping employees prepare for retirement. And at a time
when many providers are pulling back from the business of helping Americans
save for the future, we’re investing in our defined contribution business.
Today, our commitment to the 401(k) business is stronger
than ever, and we offer the capabilities and expertise to
provide retirement solutions that can last a lifetime.
Edmund F. MurphyHead of Defined Contribution
To learn more about Putnam retirement plans or to request a live demonstration of Putnam’s participant and plan sponsor sites, call our retirement specialists at
1-800-719-9914.
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, fixed-
income, 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.
70YEARS
FOR OVERINVESTING
One Post Office Square Boston, MA 02109
1-800-719-9914
putnam.comPutnam Retail Management ID757 260865 5/10
Consider these risks before investing: Asset allocation deci-
sions may not always be correct and may adversely affect
fund performance. The use of leverage through derivatives
may magnify this risk. Leverage and derivatives carry other
risks that may result in losses, including the effects of unex-
pected market shifts and/or the potential illiquidity of certain
derivatives. International investments carry risks of volatile
currencies, economies, and governments, and emerging-
market securities can be illiquid. Bonds are affected by
changes in interest rates, credit conditions, and inflation. As
interest rates rise, prices of bonds fall. Long-term bonds are
more sensitive to interest-rate risk than short-term bonds,
while lower-rated bonds may offer higher yields in return for
more risk. Unlike bonds, bond funds have ongoing fees and
expenses. Stocks of small and/or midsize companies increase
the risk of greater price fluctuations. 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. Additional risks are listed
in the funds’ prospectus.
Money market funds are not insured or guaranteed by the
Federal Deposit Insurance Corporation (FDIC) or any other
governmental agency. Although the fund seeks to preserve
the value of your investment at $1.00 per share, it is possible
to lose money by investing in this fund.
Investors should carefully consider the investment objec-tives, 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.
