PutnamAbsolute ReturnFunds

Absolutely or all kinds o investors.

PutnamAbsolute Return100 FundAn alternativeto short-termsecuritiesPutnamAbsolute Return300 FundAn alternativeto bond undsPutnamAbsolute Return500 FundAn alternativeto balancedundsPutnamAbsolute Return700 FundAn alternativeto stock undsTargeting positive returns above inationover three years with reduced volatility.

Q3 | 2011

12/23/08’09 ’10 ’11

-10%0%10%20%30%40%50%60%70%

Treasury Bills

0.64%

Absolute Return 100

3.83%

Absolute Return 500

10.98%

Absolute Return 300

7.85%

Absolute Return 700

16.05%

Barclays Aggregate

20.69%

S&P 500 Index

39.20%

These funds performed with low volatilityeven when stocks and bonds fell.

Cumulative performance of class A shares before sales chargeDecember 23, 2008 (inception) through September 30, 2011.

Putnam Absolute Return Funds pursue steady returntargets in all kinds of markets.

All unds involve diferent levels o risk, have diferent ees and expenses, and have diferent objectives that you should consider beore investing.See the unds’ prospectus or complete details.

Absolute return unds can add a new dimension to a portolio.

Absolute return unds are dierent. They can adapt to any market environment by pursuing globalopportunities and progressive risk management.

Why choose an absolute return strategy?

Traditional low-volatility investments earn low returns.

Trying to reduce volatility by shiting to a low-return investment may not help you reach your inancialgoals, while a higher return investment could be highly volatile.

Years to recover losses basedon projected rates of return

%return%return%return%return%return%return

-10%

21.00 years5.25 years2.75 years1.75 years1.25 years1.00 year(s)

-20%

44.7511.255.503.752.752.25

-30%

71.2517.759.006.004.503.50

-40%

102.2525.5012.758.506.505.25

-50%

138.7534.7517.2511.508.757.00

This hypothetical illustration shows how many years it would take to recover rom losses o dierent given magnitudes at varying rates o returns.The illustration is based on mathematical principles and assumes monthly compounding. It is not meant as a orecast o uture events or as astatement that prior markets may be duplicated. Recovery periods are rounded to the nearest quarter o a year.