UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: (811- 21598 ) | ||
Exact name of registrant as specified in charter: | Putnam RetirementReady Funds | |
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109 | ||
Name and address of agent for service: | Beth S. Mazor, Vice President | |
One Post Office Square | ||
Boston, Massachusetts 02109 | ||
Copy to: | John W. Gerstmayr, Esq. | |
Ropes & Gray LLP | ||
One International Place | ||
Boston, Massachusetts 02110 | ||
Registrant’s telephone number, including area code: | (617) 292-1000 |
Date of fiscal year end: July 31, 2007
Date of reporting period: August 1, 2006— January 31, 2007
Item 1. Report to Stockholders:
The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940:
What makes Putnam different?
In 1830, Massachusetts Supreme Judicial Court Justice Samuel Putnam established The Prudent Man Rule, a legal foundation for responsible money management.
THE PRUDENT MAN RULE
All that can be required of a trustee to invest is that he shall conduct himself faithfully and exercise a sound discretion. He is to observe how men of prudence, discretion, and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety of the capital to be invested.
A time-honored tradition in money management
Since 1937, our values have been rooted in a profound sense of responsibility for the money entrusted to us.
A prudent approach to investing
We use a research-driven team approach to seek consistent, dependable, superior investment results over time, although there is no guarantee a fund will meet its objectives.
Funds for every investment goal
We offer a broad range of mutual funds and other financial products so investors and their financial representatives can build diversified portfolios.
A commitment to doing what’s right for investors
We have below-average expenses and stringent investor protections, and provide a wealth of information about the Putnam funds.
Industry-leading service
We help investors, along with their financial representatives, make informed investment decisions with confidence.
Putnam
RetirementReady®
Funds
1| 31| 07
Semiannual Report
Message from the Trustees | 2 |
About the fund | 4 |
Report from the fund managers | 7 |
Underlying investments | 11 |
Performance | 13 |
Expenses | 21 |
Your fund’s management | 25 |
Terms and definitions | 28 |
Trustee approval of management contract | 30 |
Other information for shareholders | 37 |
Financial statements | 38 |
Brokerage commissions | 113 |
Message from the Trustees
Dear Fellow Shareholder
Although the global economy continues to move forward, it has become apparent over the past few months that certain sectors of the U.S. economy may have slowed somewhat. We consequently consider slower job growth and perhaps a rise in the unemployment rate as possible developments for 2007. On the other hand, since the Federal Reserve (the Fed) stopped raising interest rates, stock prices have moved higher, bond yields have remained relatively low, and the weaker dollar appears to be making U.S. exports more competitive. With the benefit of this financial cushion, we believe 2007 may hold the potential for a renewed economic expansion.
As you may have heard, on February 1, 2007, Marsh & McLennan Companies, Inc. announced that it had signed a definitive agreement to sell its ownership interest in Putnam Investments Trust, the parent company of Putnam Management and its affiliates, to Great-West Lifeco Inc. Great-West Lifeco Inc. is a financial services holding company with operations in Canada, the United States, and Europe and is a member of the Power Financial Corporation group of companies. This transaction is subject to regulatory approvals and other conditions, including the approval of new management contracts by shareholders of a substantial number of Putnam funds at shareholder meetings expected to be held in May 2007. Proxy solicitation materials related to these meetings, which provide detailed information regarding the proposed transaction, were recently mailed. The transaction is currently expected to be completed by the middle of 2007.
Putnam’s team of investment and business professionals will continue to be led by Putnam President and Chief Executive Officer Ed Haldeman. Your Trustees have been actively involved through every step of the discussions, and we will continue in our role of overseeing the Putnam funds on your behalf.
2
We would like to take this opportunity to announce that a new independent Trustee, Kenneth R. Leibler, has joined your fund’s Board of Trustees. Mr. Leibler has had a distinguished career as a leader in the investment management industry. He is the founding Chairman of the Boston Options Exchange and currently serves as a Trustee of Beth Israel Deaconess Hospital in Boston; a lead director of Ruder Finn Group, a global communications and advertising firm; and a director of Northeast Utilities.
In the following pages, members of your fund’s management team discuss the fund’s performance and strategies for the fiscal period ended January 31, 2007, and provide their outlook for the months ahead. As always, we thank you for your support of the Putnam funds.
Putnam RetirementReady Funds: offering one-step
diversification that adjusts automatically over time
Unpredictable markets and the demands of a busy life can make it a challenge to monitor your retirement investments. Using a mix of investments can help you reduce risk and increase your exposure to opportunities in different markets — but it adds to the challenge of keeping your portfolio on track. Putnam RetirementReady Funds provide a one-step approach to investment diversification that gradually shifts toward a more conservative strategy to keep your risk exposure appropriate to your investment time horizon.
Each RetirementReady Fund invests in a combination of Putnam mutual funds to provide you with exposure to a variety of asset classes and investment styles. The RetirementReady Funds also have different target dates, indicating when investors expect to retire or otherwise begin withdrawing assets. The funds focus more heavily on aggressive, higher-risk investments when their target dates are far off, and emphasize more conservative, lower-risk investments when their target dates are near. Each fund’s asset allocation generally changes annually to become more conservative over time. The RetirementReady Maturity Fund, which has a constant allocation focused primarily on bonds and money market instruments, is designed for investors who are already retired or who expect to use the invested assets in the n ear future.
While diversification can help protect your returns from excessive volatility, it can’t protect against market losses. However, by choosing a RetirementReady Fund based on the year you plan to start withdrawing assets — typically in retirement — you can get the advantages of diversification and pursue maximum returns while seeking to maintain a level of risk you are comfortable with — all in one convenient investment.
The underlying Putnam funds can invest in international investments, which involve risks such as currency fluctuations, economic instability, and political developments. The underlying Putnam funds can invest some or all of their assets in small and/or midsize companies and such investments increase the risk of fluctuations in the value of your investment. The underlying Putnam funds can also have a significant portion of their holdings in bonds. Mutual 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 have more exposure to interest-rate risk than short-term bonds. Lower-rated bonds may offer higher yields in return for more risk. Unlike bonds, bond funds have ongoing fees and expenses. These risks apply to any underlying Pu tnam fund with a significant portion of its assets invested in bonds. Please see the prospectus for additional information about investment strategies and related risks of the underlying funds.
Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency. Although Putnam Money Market Fund seeks to maintain a constant share price of $1.00, it is possible to lose money by investing in the fund.
Putnam RetirementReady Funds (with the exception of the Maturity Fund) seek to provide a combination of capital appreciation and current income. The further away the fund’s target date, the greater the emphasis on capital appreciation; the closer the target date, the more emphasis is placed on current income. The Maturity Fund seeks as high a rate of current income as Putnam Management believes is consistent with preservation of capital, and this objective remains constant over time.
Performance
Total return for class A shares for periods ended 1/31/07
2050 | 2045 | 2040 | 2035 | 2030 | ||||||
NAV | POP | NAV | POP | NAV | POP | NAV | POP | NAV | POP | |
Life of fund* | 34.01% | 26.97% | 39.26% | 31.96% | 38.18% | 30.92% | 36.04% | 28.90% | 34.13% | 27.09% |
Annual average | 18.15 | 14.57 | 15.82 | 13.08 | 15.42 | 12.69 | 14.62 | 11.91 | 13.91 | 11.21 |
1 year | 13.99 | 8.00 | 14.03 | 8.05 | 13.54 | 7.58 | 12.92 | 7.00 | 12.38 | 6.48 |
6 months | 15.12 | 9.08 | 15.13 | 9.10 | 14.51 | 8.50 | 13.89 | 7.91 | 13.24 | 7.29 |
2025 | 2020 | 2015 | 2010 | Maturity Fund | ||||||
NAV | POP | NAV | POP | NAV | POP | NAV | POP | NAV | POP | |
Life of fund* | 32.12% | 25.19% | 27.68% | 20.97% | 22.32% | 15.90% | 15.58% | 9.51% | 12.59% | 6.65% |
Annual average | 13.15 | 10.47 | 11.44 | 8.81 | 9.34 | 6.76 | 6.63 | 4.11 | 5.40 | 2.90 |
1 year | 11.82 | 5.95 | 10.37 | 4.57 | 8.46 | 2.76 | 6.43 | 0.85 | 5.93 | 0.36 |
6 months | 12.57 | 6.67 | 11.29 | 5.44 | 9.31 | 3.58 | 6.80 | 1.19 | 6.16 | 0.59 |
Data is historical. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Returns at POP reflect a maximum sales charge of 5.25% . For the most recent month-end performance, visit www.putnam.com. For a portion of the period, the funds limited expenses, without which returns would have been lower. A 1% short-term trading fee may apply.
* With the exception of the 2050 Fund (inception: 5/2/05) the inception date of all share classes of the RetirementReady Funds is 11/1/04.
6
Report from the fund managers
The period in review
Global capital markets rallied during the six-month period ended January 31, 2007. Equities delivered broadly based, double-digit gains, surprising many market observers. Fixed-income markets also rallied, particularly the higher-risk segments of the fixed-income markets, such as high-yield bonds and emerging-market debt. Housing and commodities were the only two segments of the economy that suffered setbacks during the period, as oil prices fell and the overheated housing market in the United States began to struggle in the face of rising interest rates. The U.S. dollar declined in value relative to other major currencies. For dollar-based investors, this increased the value of holdings in non-dollar investments (i.e., international equity and international fixed income), adding currency gains on top of already solid market gains.
Market overview: Equities
The global stock market rally that prevailed over the past six months was fueled by strong corporate profits, the Fed’s August 2006 decision to pause in its program of interest-rate increases, and a benign macroeconomic environment that saw solid growth and generally mild inflation worldwide. During the period, U.S. equity markets grappled with various worries, but overcame them all to post healthy gains. The price of oil, although well off its highs for the year, was a salient issue, as threats to supplies from Iran, Nigeria, and Venezuela and the specter of production cuts by OPEC contributed to price swings. A weaker housing market in the United States also influenced market sentiment, while the Fed’s intentions and actions kept investors guessing. Despite these issues, the constant news of mergers and acquisitions and generally positive corporate earnings news helped investors maintain a bias toward optimism, sending the S&P 500 Index to its highest level in six years. Large-cap growth stocks outpaced large-cap value stocks during the period — a switch from the sustained preference for value stocks over the past several years. Large-cap growth stocks also modestly outperformed small-cap growth and even small-cap value stocks — also long-standing market leaders.
7
Outside the United States, European markets outpaced the Pacific region. European markets benefited from a high rate of merger-and-acquisition activity as the leveling of national barriers in the European Monetary Union (EMU) countries created an ample supply of takeover and merger targets. Ongoing productivity improvements in the region’s corporate sector also contributed to strong equity returns. In addition, the continuing health of the U.S. economy and the willingness of American consumers to keep spending supported many European companies.
Pacific markets were initially hit hard by a weakening of the U.S. dollar and the threat that this weakness posed to the profits of export-dependent industries. However, they later rebounded to post solid gains for the period. The performance of the Pacific region was aided by the ongoing development of the vibrant Chinese economy, which contributed to strong performance from Singapore and Hong Kong. Emerging markets significantly outperformed developed markets.
Market overview: Fixed income
Fixed-income markets rallied in the wake of the Fed’s pause in its program of raising short-term interest rates. On the final day of the period (January 31, 2007), the Fed held short-term interest rates at 5.25% for the fifth consecutive meeting. Low default rates and global
Market sector performance
These indexes provide an overview of performance in different market sectors for the six months ended 1/31/07.
Equities | |
S&P 500 Index (broad stock market) | 13.75% |
MSCI EAFE Index (international stocks) | 14.33% |
Russell 1000 Growth Index (large-company growth stocks) | 15.12% |
Russell 1000 Value Index (large-company value stocks) | 13.43% |
Bonds | |
Lehman Aggregate Bond Index (broad bond market) | 3.65% |
Lehman Credit Index (corporate bonds) | 4.35% |
JPMorgan Developed High Yield Index (high-yield corporate bonds) | 8.39% |
8
demand for higher yield contributed to particularly strong results from the higher-risk segments of the fixed-income markets: high-yield bonds and emerging-market debt. Investment-grade corporate bonds and mortgage-and asset-backed securities also performed well, spurred by investor appetite for the higher yields these securities offered in comparison with lower-risk instruments such as Treasuries. Among investment-grade sectors, corporate bonds appreciated as robust demand from foreign investors as well as from financial entities that structure collateralized debt obligations (CDOs), which are investment-grade securities backed by pools of bonds and other assets, easily absorbed relatively ample new supply, while investors’ appetite for risk buoyed lower-quality issues.
Non-U.S. government bond markets faced a stronger headwind than their U.S. counterparts as the gathering momentum of European economies precipitated three interest-rate increases by the European Central Bank during the period. Each increase was one quarter of a percentage point, bringing rates to 3.5% by period-end. The Bank of England also raised rates three times during the period, bringing its key short-term rate to 5.25% . The continued constrictive monetary policy of the European Central Bank contributed to the euro’s strength versus the dollar. The yen also gained versus the dollar as the Bank of Japan abandoned its extremely loose monetary policy amid signs of above-average economic growth in Japan. Despite this change, Japan’s key rate still stands at a low 0.25% . Non-dollar-based investors benefited from favorable currency gains versus the U.S. dolla r, which made non-dollar holdings more valuable.
9
The outlook for your fund
The following commentary reflects anticipated developments that could affect your fund over the next six months, as well as your management team’s plans for responding to them.
Putnam Management’s outlook for the balance of the fiscal year is positive; the team believes that all the key drivers that have propelled the capital markets over the past four years should continue to do so. In the team’s opinion, those drivers include: prudent use of robust corporate profits, abundant liquidity, supportive global economic conditions, a shrinking supply of publicly traded stocks, and rising demand for equities from individual investors.
The current market environment appears benign at present. However, possible adverse developments may be cause for concern. One such development is that the prolonged rally in capital markets, together with ample liquidity, has caused investors to accept ever-shrinking rewards for taking on risk. For example, at the end of 2006, corporate bonds, which are considered relatively high risk, were yielding only slightly more than top-rated government bonds, while the earnings streams of small, emerging companies were valued almost as highly as those of blue chips. The recent flood of private money into more speculative investment strategies — often relying mostly on borrowed funds — is a key reason that the rewards for taking risk have been shrinking throughout the world’s financial markets. Yet another potential worry is a scenario in which all asset classes decline in unison — a possibility since their returns have become more closely correlated. Finally, today’s market environment has been shaped by abundant and cheap money; consequently, an event causing major contraction in liquidity would have the most pervasively negative effects on global capital markets today. The likeliest source of such an event would be a rise in the interest rates or currencies of low-interest-rate countries with capital surpluses, notably Japan and Switzerland, where aggressive investors now borrow cheaply in order to buy higher-risk, potentially higher-returning assets elsewhere.
At this point, we believe it is unlikely that a rapid reduction in the currently abundant supply of capital is on the horizon. Nevertheless, in Putnam Management’s opinion, investors should give careful consideration to strategies that may provide stability in this type of scenario, such as exposure to cash, to currencies other than the weakening U.S. dollar, and the use of active investment strategies that rely on manager skill rather than market appreciation.
The views expressed in this report are exclusively those of Putnam Management. They are not meant as investment advice.
The underlying Putnam funds can invest in international investments, which involve risks such as currency fluctuations, economic instability, and political developments. The underlying Putnam funds can invest some or all of their assets in small and/or midsize companies and such investments increase the risk of fluctuations in the value of your investment. The underlying Putnam funds can also have a significant portion of their holdings in bonds. Mutual 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 have more exposure to interest-rate risk than short-term bonds. Lower-rated bonds may offer higher yields in return for more risk. Unlike bonds, bond funds have ongoing fees and expenses. These risks apply to any underlying Putnam fund with a significant portion of its assets invested in bonds. Please see the prospectus for additional information about investment strategies and related risks of the underlying funds.
10
Composition of the funds’
Underlying investments
Each Putnam RetirementReady Fund invests, to varying degrees, in a variety of Putnam mutual funds. This section describes the goals and strategies of the underlying Putnam funds.
Putnam Voyager Fund
The fund seeks capital appreciation by investing primarily in growth stocks of midsize and large U.S. companies. Growth stocks are issued by companies that Putnam believes are fast-growing and whose earnings Putnam believes are likely to increase over time. Growth in earnings may lead to an increase in the price of the stock. The fund invests mainly in midsize and large companies, although it can invest in companies of any size.
The Putnam Fund for Growth and Income
The fund seeks capital growth and current income by investing primarily in common stocks of large U.S. companies, with a focus on value stocks that offer the potential for capital growth, current income, or both. Value stocks are stocks that Putnam believes are currently undervalued by the market. The fund’s management team looks for companies undergoing positive change. If the team is correct and other investors recognize the value of the company, the price of the stock may rise.
Putnam Capital Opportunities Fund
The fund seeks long-term growth of capital by investing primarily in common stocks of small and midsize U.S. companies that Putnam believes have favorable investment potential. For example, the fund may purchase stocks of companies whose stock price is lower than the value Putnam places on the company. The fund may also consider other factors that Putnam believes will cause the stock price to rise.
Putnam International Equity Fund
The fund seeks capital appreciation by investing primarily in common stocks of companies outside the United States that Putnam believes have favorable investment potential. For example, the fund may purchase stocks of companies whose stock price is lower than the value Putnam places on the company. The fund may also consider other factors that Putnam believes will cause the stock price to rise. The fund invests mainly in midsize and large companies,
11
although it can invest in companies of any size. Although the fund emphasizes investments in developed countries, it may also invest in companies located in emerging markets.
Putnam Income Fund
The fund seeks high current income consistent with what Putnam believes to be prudent risk. The fund invests mainly in bonds that are obligations of companies and governments worldwide denominated in U.S. dollars, are either investment-grade or below investment-grade (sometimes referred to as “junk bonds”), and have intermediate- to long-term maturities (three years or longer).
Putnam Money Market Fund
The fund seeks as high a rate of current income as Putnam Management believes is consistent with preservation of capital and maintenance of liquidity. The fund invests mainly in instruments that are high quality and have short-term maturity.
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 maintain a constant share price of $1.00, it is possible to lose money by investing in the fund.
Allocations by fund as of 1/31/07
Percentages based on market value. Portfolio composition will vary over time. Due to rounding, percentages may not equal 100%.
The Putnam | Putnam Capital | Putnam | Putnam | Putnam | Putnam | |
Fund for Growth | Opportunities | International | Voyager | Income | Money Market | |
RetirementReady Fund | and Income | Fund | Equity Fund | Fund | Fund | Fund |
2050 Fund | 25.0% | 15.2% | 29.7% | 25.1% | 3.9% | 0.9% |
2045 Fund | 25.0% | 15.2% | 29.8% | 25.1% | 3.9% | 1.0% |
2040 Fund | 24.0% | 14.2% | 27.8% | 24.2% | 6.9% | 2.9% |
2035 Fund | 23.0% | 13.2% | 25.8% | 23.2% | 10.8% | 3.9% |
2030 Fund | 22.0% | 12.2% | 23.9% | 22.2% | 13.8% | 5.9% |
2025 Fund | 21.1% | 11.2% | 21.9% | 21.2% | 16.7% | 7.9% |
2020 Fund | 20.1% | 10.2% | 15.0% | 20.2% | 24.6% | 9.9% |
2015 Fund | 16.1% | 9.2% | 8.0% | 16.2% | 32.6% | 17.9% |
2010 Fund | 11.1% | 5.1% | 2.0% | 11.2% | 42.6% | 27.9% |
Maturity Fund | 10.1% | 5.1% | 0.0% | 10.2% | 44.6% | 30.0% |
12
Your fund’s performance
This section shows your fund’s performance for periods ended January 31, 2007, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance as of the most recent calendar quarter-end. Performance should always be considered in light of a fund’s investment strategy. Data represents past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. For the most recent month-end performance, please visit www.putnam.com or call Putnam at 1-800-225-1581. Class Y shares are generally only available to corporate and institutional clients. See the Terms and Definitions section in this report for definitions of the share classes offered by your fund.
Fund performance
Total return for periods ended 1/31/07
Class A | Class B | Class C | Class M | Class R | Class Y | |||||
(inception dates) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | ||||
NAV | POP | NAV | CDSC | NAV | CDSC | NAV | POP | NAV | NAV | |
2050 Fund* | ||||||||||
Life of fund | 34.01% | 26.97% | 32.26% | 28.26% | 32.28% | 32.28% | 32.78% | 28.48% | 33.37% | 34.58% |
Annual average | 18.15 | 14.57 | 17.27 | 15.23 | 17.28 | 17.28 | 17.53 | 15.35 | 17.83 | 18.43 |
1 year | 13.99 | 8.00 | 13.14 | 8.14 | 13.16 | 12.16 | 13.40 | 9.72 | 13.67 | 14.27 |
6 months | 15.12 | 9.08 | 14.72 | 9.72 | 14.70 | 13.70 | 14.82 | 11.10 | 15.00 | 15.28 |
2045 Fund† | ||||||||||
Life of fund | 39.26 | 31.96 | 36.92 | 33.92 | 36.92 | 36.92 | 37.71 | 33.24 | 38.55 | 40.06 |
Annual average | 15.82 | 13.08 | 14.95 | 13.83 | 14.95 | 14.95 | 15.24 | 13.57 | 15.55 | 16.11 |
1 year | 14.03 | 8.05 | 13.18 | 8.18 | 13.18 | 12.17 | 13.46 | 9.77 | 13.77 | 14.34 |
6 months | 15.13 | 9.10 | 14.70 | 9.70 | 14.69 | 13.69 | 14.85 | 11.13 | 15.00 | 15.29 |
2040 Fund† | ||||||||||
Life of fund | 38.18 | 30.92 | 35.87 | 32.87 | 35.91 | 35.91 | 36.64 | 32.19 | 37.47 | 38.96 |
Annual average | 15.42 | 12.69 | 14.56 | 13.43 | 14.57 | 14.57 | 14.85 | 13.17 | 15.15 | 15.71 |
1 year | 13.54 | 7.58 | 12.69 | 7.69 | 12.71 | 11.71 | 12.97 | 9.31 | 13.28 | 13.81 |
6 months | 14.51 | 8.50 | 14.09 | 9.09 | 14.09 | 13.08 | 14.22 | 10.52 | 14.38 | 14.66 |
2035 Fund | ||||||||||
Life of fund | 36.04 | 28.90 | 33.76 | 30.76 | 33.84 | 33.84 | 34.52 | 30.15 | 35.13 | 36.80 |
Annual average | 14.62 | 11.91 | 13.77 | 12.63 | 13.80 | 13.80 | 14.05 | 12.39 | 14.28 | 14.90 |
1 year | 12.92 | 7.00 | 12.07 | 7.07 | 12.13 | 11.13 | 12.37 | 8.73 | 12.63 | 13.20 |
6 months | 13.89 | 7.91 | 13.45 | 8.45 | 13.46 | 12.45 | 13.59 | 9.90 | 13.74 | 14.02 |
2030 Fund | ||||||||||
Life of fund | 34.13 | 27.09 | 31.89 | 28.89 | 31.89 | 31.89 | 32.64 | 28.32 | 33.36 | 34.88 |
Annual average | 13.91 | 11.21 | 13.06 | 11.91 | 13.06 | 13.06 | 13.34 | 11.69 | 13.61 | 14.19 |
1 year | 12.38 | 6.48 | 11.56 | 6.56 | 11.56 | 10.56 | 11.84 | 8.20 | 12.11 | 12.67 |
6 months | 13.24 | 7.29 | 12.82 | 7.82 | 12.81 | 11.81 | 12.96 | 9.29 | 13.08 | 13.38 |
13
Fund performance (Continued)
Total return for periods ended 1/31/07
Class A | Class B | Class C | Class M | Class R | Class Y | |||||
(inception dates) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | ||||
NAV | POP | NAV | CDSC | NAV | CDSC | NAV | POP | NAV | NAV | |
2025 Fund | ||||||||||
Life of fund | 32.12% | 25.19% | 29.91% | 26.91% | 29.90% | 29.90% | 30.65% | 26.40% | 31.37% | 32.86% |
Annual average | 13.15 | 10.47 | 12.30 | 11.14 | 12.30 | 12.30 | 12.59 | 10.95 | 12.86 | 13.43 |
1 year | 11.82 | 5.95 | 10.99 | 5.99 | 11.00 | 9.99 | 11.27 | 7.66 | 11.53 | 12.10 |
6 months | 12.57 | 6.67 | 12.14 | 7.14 | 12.14 | 11.14 | 12.27 | 8.63 | 12.43 | 12.70 |
2020 Fund | ||||||||||
Life of fund | 27.68 | 20.97 | 25.51 | 22.51 | 25.52 | 25.52 | 26.24 | 22.13 | 27.05 | 28.37 |
Annual average | 11.44 | 8.81 | 10.60 | 9.42 | 10.60 | 10.60 | 10.88 | 9.27 | 11.20 | 11.71 |
1 year | 10.37 | 4.57 | 9.54 | 4.54 | 9.56 | 8.56 | 9.81 | 6.24 | 10.10 | 10.63 |
6 months | 11.29 | 5.44 | 10.85 | 5.85 | 10.87 | 9.87 | 11.01 | 7.41 | 11.15 | 11.41 |
2015 Fund | ||||||||||
Life of fund | 22.32 | 15.90 | 20.30 | 17.30 | 20.30 | 20.30 | 20.99 | 17.06 | 21.76 | 23.02 |
Annual average | 9.34 | 6.76 | 8.54 | 7.33 | 8.54 | 8.54 | 8.82 | 7.23 | 9.12 | 9.62 |
1 year | 8.46 | 2.76 | 7.66 | 2.66 | 7.66 | 6.66 | 7.93 | 4.42 | 8.22 | 8.73 |
6 months | 9.31 | 3.58 | 8.90 | 3.90 | 8.89 | 7.89 | 9.04 | 5.51 | 9.17 | 9.45 |
2010 Fund | ||||||||||
Life of fund | 15.58 | 9.51 | 13.66 | 10.66 | 13.67 | 13.67 | 14.32 | 10.61 | 15.01 | 16.25 |
Annual average | 6.63 | 4.11 | 5.84 | 4.59 | 5.85 | 5.85 | 6.11 | 4.57 | 6.40 | 6.90 |
1 year | 6.43 | 0.85 | 5.62 | 0.68 | 5.63 | 4.64 | 5.89 | 2.45 | 6.16 | 6.70 |
6 months | 6.80 | 1.19 | 6.38 | 1.40 | 6.39 | 5.39 | 6.51 | 3.06 | 6.66 | 6.93 |
Maturity Fund | ||||||||||
Life of fund | 12.59 | 6.65 | 10.68 | 7.68 | 10.76 | 10.76 | 11.34 | 7.72 | 11.96 | 13.22 |
Annual average | 5.40 | 2.90 | 4.60 | 3.34 | 4.64 | 4.64 | 4.88 | 3.35 | 5.14 | 5.66 |
1 year | 5.93 | 0.36 | 5.13 | 0.13 | 5.17 | 4.17 | 5.43 | 2.02 | 5.67 | 6.22 |
6 months | 6.16 | 0.59 | 5.76 | 0.76 | 5.77 | 4.77 | 5.90 | 2.46 | 6.02 | 6.30 |
Performance assumes reinvestment of distributions and does not account for taxes. Returns at public offering price (POP) for class A and M shares reflect a maximum sales charge of 5.25% and 3.25%, respectively. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter. Class C shares reflect a 1% CDSC for the first year and is eliminated thereafter. Class R and Y shares have no initial sales charge or CDSC.
For a portion of the period, the funds limited expenses, without which returns would have been lower.
A 1% short-term trading fee may be applied to shares exchanged or sold within 7 days of purchase.
* The inception date of Putnam RetirementReady 2050 Fund is 5/2/05, for all share classes.
† Because no class R shares of the fund were outstanding on 12/20/05 and 12/21/05, class R performance for the period from 12/19/05 to 12/21/05 is based on class A performance, adjusted for the applicable sales charge and the higher operating expenses for class R shares.
14
Comparative index returns
For periods ended 1/31/07
S&P 500 | Lehman Aggregate | ||||||
Index | Bond Index | ||||||
Life of fund* | 32.68% | 6.95% | |||||
Annual average | 13.36 | 3.02 | |||||
1 year | 14.51 | 4.28 | |||||
6 months | 13.75 | 3.65 | |||||
Index results should be compared to fund performance at net asset value.
* Life-of-fund period begins at 11/1/04, the inception date of all the Putnam RetirementReady Funds with the exception of the 2050 Fund (inception: 5/2/05).
Fund price and distribution information
For the six-month period ended 1/31/07
2050 Fund | ||||||||
Distributions* | Class A | Class B | Class C | Class M | Class R | Class Y | ||
Number | 1 | 1 | 1 | 1 | 1 | 1 | ||
Income | $0.985 | $0.703 | $0.430 | $0.662 | $0.934 | $1.060 | ||
Capital gains | ||||||||
Long-term | 0.180 | 0.180 | 0.180 | 0.180 | 0.180 | 0.180 | ||
Short-term | 0.837 | 0.837 | 0.837 | 0.837 | 0.837 | 0.837 | ||
Total | $2.002 | $1.720 | $1.447 | $1.679 | $1.951 | $2.077 | ||
Share value: | NAV | POP | NAV | NAV | NAV | POP | NAV | NAV |
7/31/06 | $56.44 | $59.57 | $56.18 | $56.21 | $56.28 | $58.17 | $56.37 | $56.57 |
1/31/07 | 62.93 | 66.42 | 62.69 | 63.00 | 62.91 | 65.02 | 62.83 | 63.09 |
2045 Fund | ||||||||
Distributions* | Class A | Class B | Class C | Class M | Class R | Class Y | ||
Number | 1 | 1 | 1 | 1 | 1 | 1 | ||
Income | $1.317 | $0.957 | $0.784 | $0.771 | $1.383 | $1.461 | ||
Capital gains | ||||||||
Long-term | 2.927 | 2.927 | 2.927 | 2.927 | 2.927 | 2.927 | ||
Short-term | 0.471 | 0.471 | 0.471 | 0.471 | 0.471 | 0.471 | ||
Total | $4.715 | $4.355 | $4.182 | $4.169 | $4.781 | $4.859 | ||
Share value: | NAV | POP | NAV | NAV | NAV | POP | NAV | NAV |
7/31/06 | $72.28 | $76.28 | $69.98 | $70.27 | $70.38 | $72.74 | $73.67 | $78.94 |
1/31/07 | 78.40 | 82.74 | 75.82 | 76.32 | 76.57 | 79.14 | 79.83 | 86.04 |
15
Fund price and distribution information (Continued)
For the six-month period ended 1/31/07
2040 Fund | ||||||||
Distributions* | Class A | Class B | Class C | Class M | Class R | Class Y | ||
Number | 1 | 1 | 1 | 1 | 1 | 1 | ||
Income | $1.387 | $1.104 | $1.059 | $1.158 | $1.339 | $1.536 | ||
Capital gains | ||||||||
Long-term | 3.201 | 3.201 | 3.201 | 3.201 | 3.201 | 3.201 | ||
Short-term | 0.363 | 0.363 | 0.363 | 0.363 | 0.363 | 0.363 | ||
Total | $4.951 | $4.668 | $4.623 | $4.722 | $4.903 | $5.100 | ||
Share value: | NAV | POP | NAV | NAV | NAV | POP | NAV | NAV |
7/31/06 | $72.11 | $76.11 | $69.82 | $70.00 | $70.03 | $72.38 | $73.56 | $78.47 |
1/31/07 | 77.52 | 81.82 | 74.89 | 75.14 | 75.17 | 77.70 | 79.13 | 84.76 |
2035 Fund | ||||||||
Distributions* | Class A | Class B | Class C | Class M | Class R | Class Y | ||
Number | 1 | 1 | 1 | 1 | 1 | 1 | ||
Income | $1.455 | $1.091 | $1.418 | $1.161 | $1.510 | $1.608 | ||
Capital gains | ||||||||
Long-term | 3.896 | 3.896 | 3.896 | 3.896 | 3.896 | 3.896 | ||
Short-term | 0.003 | 0.003 | 0.003 | 0.003 | 0.003 | 0.003 | ||
Total | $5.354 | $4.990 | $5.317 | $5.060 | $5.409 | $5.507 | ||
Share value: | NAV | POP | NAV | NAV | NAV | POP | NAV | NAV |
7/31/06 | $70.33 | $74.23 | $67.68 | $68.13 | $68.10 | $70.39 | $69.31 | $76.67 |
1/31/07 | 74.64 | 78.78 | 71.70 | 71.88 | 72.20 | 74.63 | 73.32 | 81.80 |
2030 Fund | ||||||||
Distributions* | Class A | Class B | Class C | Class M | Class R | Class Y | ||
Number | 1 | 1 | 1 | 1 | 1 | 1 | ||
Income | $1.523 | $1.118 | $0.631 | $1.382 | $1.426 | $1.674 | ||
Capital gains | ||||||||
Long-term | 3.761 | 3.761 | 3.761 | 3.761 | 3.761 | 3.761 | ||
Short-term | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | ||
Total | $5.286 | $4.881 | $4.394 | $5.145 | $5.189 | $5.437 | ||
Share value: | NAV | POP | NAV | NAV | NAV | POP | NAV | NAV |
7/31/06 | $69.46 | $73.31 | $67.56 | $67.43 | $67.73 | $70.01 | $67.75 | $75.11 |
1/31/07 | 73.27 | 77.33 | 71.25 | 71.60 | 71.27 | 73.66 | 71.33 | 79.62 |
16
Fund price and distribution information (Continued)
For the six-month period ended 1/31/07
2025 Fund | ||||||||
Distributions* | Class A | Class B | Class C | Class M | Class R | Class Y | ||
Number | 1 | 1 | 1 | 1 | 1 | 1 | ||
Income | $1.641 | $1.281 | $1.211 | $1.297 | $1.657 | $1.810 | ||
Capital gains | ||||||||
Long-term | 4.301 | 4.301 | 4.301 | 4.301 | 4.301 | 4.301 | ||
Short-term | — | — | — | — | — | — | ||
Total | $5.942 | $5.582 | $5.512 | $5.598 | $5.958 | $6.111 | ||
Share value: | NAV | POP | NAV | NAV | NAV | POP | NAV | NAV |
7/31/06 | $72.98 | $77.02 | $70.26 | $70.43 | $70.55 | $72.92 | $70.70 | $73.28 |
1/31/07 | 76.11 | 80.33 | 73.12 | 73.38 | 73.52 | 75.99 | 73.43 | 76.37 |
2020 Fund | ||||||||
Distributions* | Class A | Class B | Class C | Class M | Class R | Class Y | ||
Number | 1 | 1 | 1 | 1 | 1 | 1 | ||
Income | $1.682 | $1.339 | $1.136 | $1.405 | $1.577 | $1.833 | ||
Capital gains | ||||||||
Long-term | 3.374 | 3.374 | 3.374 | 3.374 | 3.374 | 3.374 | ||
Short-term | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | 0.001 | ||
Total | $5.057 | $4.714 | $4.511 | $4.780 | $4.952 | $5.208 | ||
Share value: | NAV | POP | NAV | NAV | NAV | POP | NAV | NAV |
7/31/06 | $66.20 | $69.87 | $64.77 | $64.89 | $64.99 | $67.17 | $65.08 | $70.95 |
1/31/07 | 68.54 | 72.34 | 67.02 | 67.37 | 67.30 | 69.56 | 67.31 | 73.76 |
2015 Fund | ||||||||
Distributions* | Class A | Class B | Class C | Class M | Class R | Class Y | ||
Number | 1 | 1 | 1 | 1 | 1 | 1 | ||
Income | $1.726 | $1.427 | $1.270 | $1.372 | $1.576 | $1.857 | ||
Capital gains | ||||||||
Long-term | 2.813 | 2.813 | 2.813 | 2.813 | 2.813 | 2.813 | ||
Short-term | 0.011 | 0.011 | 0.011 | 0.011 | 0.011 | 0.011 | ||
Total | $4.550 | $4.251 | $4.094 | $4.196 | $4.400 | $4.681 | ||
Share value: | NAV | POP | NAV | NAV | NAV | POP | NAV | NAV |
7/31/06 | $65.72 | $69.36 | $64.39 | $64.37 | $64.67 | $66.84 | $64.74 | $65.95 |
1/31/07 | 67.24 | 70.97 | 65.83 | 65.96 | 66.28 | 68.51 | 66.23 | 67.45 |
17
Fund price and distribution information (Continued)
For the six-month period ended 1/31/07
2010 Fund | ||||||||
Distributions* | Class A | Class B | Class C | Class M | Class R | Class Y | ||
Number | 1 | 1 | 1 | 1 | 1 | 1 | ||
Income | $2.083 | $1.793 | $1.671 | $1.814 | $1.921 | $2.227 | ||
Capital gains | ||||||||
Long-term | 2.056 | 2.056 | 2.056 | 2.056 | 2.056 | 2.056 | ||
Short-term | 0.022 | 0.022 | 0.022 | 0.022 | 0.022 | 0.022 | ||
Total | $4.161 | $3.871 | $3.749 | $3.892 | $3.999 | $4.305 | ||
Share value: | NAV | POP | NAV | NAV | NAV | POP | NAV | NAV |
7/31/06 | $58.69 | $61.94 | $57.57 | $57.30 | $57.46 | $59.39 | $57.56 | $61.41 |
1/31/07 | 58.49 | 61.73 | 57.35 | 57.19 | 57.29 | 59.21 | 57.37 | 61.33 |
Maturity Fund | ||||||||
Distributions* | Class A | Class B | Class C | Class M | Class R | Class Y | ||
Number | 6 | 6 | 6 | 6 | 6 | 6 | ||
Income | $1.161 | $0.946 | $0.963 | $1.019 | $1.091 | $1.234 | ||
Capital gains | ||||||||
Long-term | 0.798 | 0.798 | 0.798 | 0.798 | 0.798 | 0.798 | ||
Short-term | 0.023 | 0.023 | 0.023 | 0.023 | 0.023 | 0.023 | ||
Total | $1.982 | $1.767 | $1.784 | $1.840 | $1.912 | $2.055 | ||
Share value: | NAV | POP | NAV | NAV | NAV | POP | NAV | NAV |
7/31/06 | $55.97 | $59.07 | $56.01 | $56.04 | $55.99 | $57.87 | $55.99 | $56.11 |
1/31/07 | 57.41 | 60.59 | 57.45 | 57.47 | 57.43 | 59.36 | 57.43 | 57.56 |
* Dividend sources are estimated and may vary based on final tax calculations after the fund’s fiscal year-end.
18
Fund performance for most recent calendar quarter
Total return for periods ended 12/31/06
Class A | Class B | Class C | Class M | Class R | Class Y | |||||
(inception dates) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | ||||
NAV | POP | NAV | CDSC | NAV | CDSC | NAV | POP | NAV | NAV | |
2050 Fund* | ||||||||||
Life of fund | 31.37% | 24.47% | 29.73% | 25.73% | 29.74% | 29.74% | 30.21% | 25.98% | 30.76% | 31.90% |
Annual average | 17.73 | 13.99 | 16.84 | 14.68 | 16.85 | 16.85 | 17.10 | 14.81 | 17.40 | 18.01 |
1 year | 15.77 | 9.69 | 14.91 | 9.91 | 14.92 | 13.92 | 15.16 | 11.41 | 15.45 | 16.06 |
6 months | 11.83 | 5.95 | 11.41 | 6.41 | 11.40 | 10.39 | 11.53 | 7.90 | 11.68 | 11.97 |
2045 Fund† | ||||||||||
Life of fund | 36.51 | 29.35 | 34.31 | 31.31 | 34.30 | 34.30 | 35.05 | 30.66 | 35.84 | 37.26 |
Annual average | 15.41 | 12.58 | 14.55 | 13.36 | 14.54 | 14.54 | 14.84 | 13.10 | 15.15 | 15.70 |
1 year | 16.01 | 9.90 | 15.14 | 10.14 | 15.14 | 14.13 | 15.43 | 11.67 | 15.76 | 16.30 |
6 months | 11.82 | 5.95 | 11.41 | 6.41 | 11.40 | 10.40 | 11.55 | 7.92 | 11.68 | 11.98 |
2040 Fund† | ||||||||||
Life of fund | 35.56 | 28.44 | 33.39 | 30.39 | 33.43 | 33.43 | 34.11 | 29.75 | 34.90 | 36.30 |
Annual average | 15.04 | 12.21 | 14.18 | 12.99 | 14.20 | 14.20 | 14.47 | 12.74 | 14.78 | 15.32 |
1 year | 15.40 | 9.34 | 14.54 | 9.54 | 14.57 | 13.57 | 14.83 | 11.09 | 15.16 | 15.70 |
6 months | 11.40 | 5.55 | 10.99 | 5.99 | 11.00 | 10.00 | 11.14 | 7.53 | 11.27 | 11.56 |
2035 Fund | ||||||||||
Life of fund | 33.62 | 26.60 | 31.47 | 28.47 | 31.53 | 31.53 | 32.17 | 27.88 | 32.75 | 34.34 |
Annual average | 14.27 | 11.47 | 13.42 | 12.23 | 13.45 | 13.45 | 13.70 | 11.99 | 13.93 | 14.56 |
1 year | 14.62 | 8.61 | 13.76 | 8.76 | 13.80 | 12.80 | 14.04 | 10.33 | 14.33 | 14.90 |
6 months | 11.02 | 5.19 | 10.60 | 5.60 | 10.60 | 9.60 | 10.74 | 7.13 | 10.88 | 11.17 |
2030 Fund | ||||||||||
Life of fund | 31.88 | 24.95 | 29.74 | 26.74 | 29.73 | 29.73 | 30.44 | 26.20 | 31.13 | 32.57 |
Annual average | 13.59 | 10.80 | 12.74 | 11.53 | 12.73 | 12.73 | 13.01 | 11.31 | 13.29 | 13.86 |
1 year | 14.00 | 8.00 | 13.14 | 8.14 | 13.12 | 12.12 | 13.42 | 9.73 | 13.70 | 14.28 |
6 months | 10.62 | 4.82 | 10.21 | 5.21 | 10.19 | 9.19 | 10.34 | 6.75 | 10.48 | 10.77 |
2025 Fund | ||||||||||
Life of fund | 30.00 | 23.18 | 27.92 | 24.92 | 27.90 | 27.90 | 28.62 | 24.44 | 29.32 | 30.72 |
Annual average | 12.84 | 10.07 | 12.00 | 10.79 | 12.00 | 12.00 | 12.29 | 10.59 | 12.57 | 13.13 |
1 year | 13.26 | 7.33 | 12.45 | 7.45 | 12.41 | 11.41 | 12.71 | 9.05 | 12.98 | 13.57 |
6 months | 10.16 | 4.37 | 9.76 | 4.76 | 9.74 | 8.74 | 9.88 | 6.31 | 10.03 | 10.30 |
2020 Fund | ||||||||||
Life of fund | 25.83 | 19.23 | 23.79 | 20.78 | 23.79 | 23.79 | 24.48 | 20.42 | 25.24 | 26.51 |
Annual average | 11.16 | 8.43 | 10.32 | 9.08 | 10.32 | 10.32 | 10.61 | 8.93 | 10.92 | 11.43 |
1 year | 11.40 | 5.55 | 10.56 | 5.56 | 10.55 | 9.55 | 10.84 | 7.24 | 11.10 | 11.67 |
6 months | 9.19 | 3.46 | 8.77 | 3.77 | 8.79 | 7.79 | 8.93 | 5.39 | 9.04 | 9.33 |
19
Fund performance for most recent calendar quarter (Continued)
Total return for periods ended 12/31/06
Class A | Class B | Class C | Class M | Class R | Class Y | |||||
(inception dates) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | (11/1/04) | ||||
NAV | POP | NAV | CDSC | NAV | CDSC | NAV | POP | NAV | NAV | |
2015 Fund | ||||||||||
Life of fund | 20.88% | 14.53% | 18.96% | 15.96% | 18.97% | 18.97% | 19.62% | 15.73% | 20.36% | 21.56% |
Annual average | 9.12 | 6.45 | 8.32 | 7.06 | 8.33 | 8.33 | 8.60 | 6.96 | 8.91 | 9.41 |
1 year | 9.20 | 3.48 | 8.41 | 3.41 | 8.40 | 7.40 | 8.67 | 5.13 | 8.98 | 9.49 |
6 months | 7.70 | 2.05 | 7.30 | 2.30 | 7.29 | 6.29 | 7.43 | 3.94 | 7.55 | 7.84 |
2010 Fund | ||||||||||
Life of fund | 14.69 | 8.66 | 12.86 | 9.86 | 12.86 | 12.86 | 13.48 | 9.80 | 14.15 | 15.32 |
Annual average | 6.51 | 3.90 | 5.73 | 4.42 | 5.73 | 5.73 | 5.99 | 4.40 | 6.28 | 6.78 |
1 year | 6.75 | 1.15 | 5.97 | 1.01 | 5.96 | 4.96 | 6.22 | 2.77 | 6.49 | 7.03 |
6 months | 6.05 | 0.48 | 5.65 | 0.71 | 5.65 | 4.65 | 5.77 | 2.34 | 5.91 | 6.20 |
Maturity Fund | ||||||||||
Life of fund | 11.78 | 5.88 | 9.96 | 6.96 | 10.02 | 10.02 | 10.59 | 6.99 | 11.19 | 12.38 |
Annual average | 5.26 | 2.67 | 4.47 | 3.15 | 4.49 | 4.49 | 4.74 | 3.16 | 5.00 | 5.52 |
1 year | 6.00 | 0.42 | 5.19 | 0.19 | 5.23 | 4.23 | 5.49 | 2.05 | 5.72 | 6.26 |
6 months | 5.62 | 0.08 | 5.23 | 0.23 | 5.22 | 4.22 | 5.37 | 1.95 | 5.48 | 5.75 |
* The inception date of Putnam RetirementReady 2050 Fund is 5/2/05, for all share classes.
† Because no class R shares of the fund were outstanding on 12/20/05 and 12/21/05, class R performance for the period from 12/19/05 to 12/21/05 is based on class A performance, adjusted for the applicable sales charge and the higher operating expenses for class R shares.
20
Your fund’s expenses
As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. In the most recent six-month period, your fund limited these expenses; had it not done so, expenses would have been higher. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You may also pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. Expense information also does not include the fees and expenses of the underlying Putnam mutual funds in which the RetirementReady Funds invest. For more information, see your fund’s prospectus or talk to your financial advisor.
Review your fund’s expenses
The first table in this section shows the expenses you would have paid on a $1,000 investment in each of the RetirementReady Funds from August 1, 2006, to January 31, 2007. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses. You may use the information in this table to estimate the expenses that you paid over the period. Simply divide your account value by $1,000, and then multiply the result by the number in the first line (“Expenses paid per $1,000”) for the class of shares you own.
Class A | Class B | Class C | Class M | Class R | Class Y | |
2050 Fund | ||||||
Expenses paid per $1,000* | $ 1.74 | $ 5.79 | $ 5.79 | $ 4.44 | $ 3.09 | $ 0.38 |
Ending value (after expenses) | $1,151.20 | $1,147.20 | $1,147.00 | $1,148.20 | $1,150.00 | $1,152.80 |
2045 Fund | ||||||
Expenses paid per $1,000* | $ 1.74 | $ 5.79 | $ 5.79 | $ 4.44 | $ 3.09 | $ 0.38 |
Ending value (after expenses) | $1,151.30 | $1,147.00 | $1,146.90 | $1,148.50 | $1,150.00 | $1,152.90 |
2040 Fund | ||||||
Expenses paid per $1,000* | $ 1.73 | $ 5.77 | $ 5.77 | $ 4.43 | $ 3.08 | $ 0.38 |
Ending value (after expenses) | $1,145.10 | $1,140.90 | $1,140.90 | $1,142.20 | $1,143.80 | $1,146.60 |
2035 Fund | ||||||
Expenses paid per $1,000* | $ 1.73 | $ 5.76 | $ 5.76 | $ 4.41 | $ 3.07 | $ 0.38 |
Ending value (after expenses) | $1,138.90 | $1,134.50 | $1,134.60 | $1,135.90 | $1,137.40 | $1,140.20 |
2030 Fund | ||||||
Expenses paid per $1,000* | $ 1.67 | $ 5.69 | $ 5.69 | $ 4.35 | $ 3.01 | $ 0.32 |
Ending value (after expenses) | $1,132.40 | $1,128.20 | $1,128.10 | $1,129.60 | $1,130.80 | $1,133.80 |
2025 Fund | ||||||
Expenses paid per $1,000* | $ 1.66 | $ 5.67 | $ 5.67 | $ 4.33 | $ 3.00 | $ 0.32 |
Ending value (after expenses) | $1,125.70 | $1,121.40 | $1,121.40 | $1,122.70 | $1,124.30 | $1,127.00 |
2020 Fund | ||||||
Expenses paid per $1,000* | $ 1.65 | $ 5.63 | $ 5.63 | $ 4.31 | $ 2.98 | $ 0.32 |
Ending value (after expenses) | $1,112.90 | $1,108.50 | $1,108.70 | $1,110.10 | $1,111.50 | $1,114.10 |
21
Review your fund’s expenses (Continued)
Class A | Class B | Class C | Class M | Class R | Class Y | |
2015 Fund | ||||||
Expenses paid per $1,000* | $ 1.64 | $ 5.58 | $ 5.58 | $ 4.27 | $ 2.95 | $ 0.32 |
Ending value (after expenses) | $1,093.10 | $1,089.00 | $1,088.90 | $1,090.40 | $1,091.70 | $1,094.50 |
2010 Fund | ||||||
Expenses paid per $1,000* | $ 1.56 | $ 5.46 | $ 5.46 | $ 4.16 | $ 2.86 | $ 0.26 |
Ending value (after expenses) | $1,068.00 | $1,063.80 | $1,063.90 | $1,065.10 | $1,066.60 | $1,069.30 |
Maturity Fund | ||||||
Expenses paid per $1,000* | $ 1.71 | $ 5.60 | $ 5.60 | $ 4.31 | $ 3.01 | $ 0.42 |
Ending value (after expenses) | $1,061.60 | $1,057.60 | $1,057.70 | $1,059.00 | $1,060.20 | $1,063.00 |
* Expenses for each share class are calculated using the fund's annualized expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended 1/31/07. The expense ratio may differ for each share class (see the next table in this section). Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period; and then dividing that result by the number of days in the year.
Compare expenses using the SEC’s method and industry averages
The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
You can also compare your fund’s expenses with the average of its peer group, as defined by Lipper, an independent fund-rating agency that ranks funds relative to others that Lipper considers to have similar investment styles or objectives. We include this information in the table to provide an additional method for comparing your fund’s expenses with the expenses of other funds.
Class A | Class B | Class C | Class M | Class R | Class Y | |
2050 Fund | ||||||
Expenses paid per $1,000* | $ 1.63 | $ 5.45 | $ 5.45 | $ 4.18 | $ 2.91 | $ 0.36 |
Ending value (after expenses) | $1,023.59 | $1,019.81 | $1,019.81 | $1,021.07 | $1,022.33 | $1,024.85 |
Annualized expense ratio | 0.32% | 1.07% | 1.07% | 0.82% | 0.57% | 0.07% |
Lipper peer group | ||||||
Avg. expense ratio** | 0.48% | 1.23% | 1.23% | 0.98% | 0.73% | 0.23% |
2045 Fund | ||||||
Expenses paid per $1,000* | $ 1.63 | $ 5.45 | $ 5.45 | $ 4.18 | $ 2.91 | $ 0.36 |
Ending value (after expenses) | $1,023.59 | $1,019.81 | $1,019.81 | $1,021.07 | $1,022.33 | $1,024.85 |
Annualized expense ratio | 0.32% | 1.07% | 1.07% | 0.82% | 0.57% | 0.07% |
Lipper peer group | ||||||
Avg. expense ratio** | 0.48% | 1.23% | 1.23% | 0.98% | 0.73% | 0.23% |
22
Compare expenses using the SEC’s method and industry averages
(Continued)
Class A | Class B | Class C | Class M | Class R | Class Y | |
2040 Fund | ||||||
Expenses paid per $1,000* | $ 1.63 | $ 5.45 | $ 5.45 | $ 4.18 | $ 2.91 | $ 0.36 |
Ending value (after expenses) | $1,023.59 | $1,019.81 | $1,019.81 | $1,021.07 | $1,022.33 | $1,024.85 |
Annualized expense ratio | 0.32% | 1.07% | 1.07% | 0.82% | 0.57% | 0.07% |
Lipper peer group | ||||||
Avg. expense ratio** | 0.48% | 1.23% | 1.23% | 0.98% | 0.73% | 0.23% |
2035 Fund | ||||||
Expenses paid per $1,000* | $ 1.63 | $ 5.45 | $ 5.45 | $ 4.18 | $ 2.91 | $ 0.36 |
Ending value (after expenses) | $1,023.59 | $1,019.81 | $1,019.81 | $1,021.07 | $1,022.33 | $1,024.85 |
Annualized expense ratio | 0.32% | 1.07% | 1.07% | 0.82% | 0.57% | 0.07% |
Lipper peer group | ||||||
Avg. expense ratio** | 0.48% | 1.23% | 1.23% | 0.98% | 0.73% | 0.23% |
2030 Fund | ||||||
Expenses paid per $1,000* | $ 1.58 | $ 5.40 | $ 5.40 | $ 4.13 | $ 2.85 | $ 0.31 |
Ending value (after expenses) | $1,023.64 | $1,019.86 | $1,019.86 | $1,021.12 | $1,022.38 | $1,024.90 |
Annualized expense ratio | 0.31% | 1.06% | 1.06% | 0.81% | 0.56% | 0.06% |
Lipper peer group | ||||||
Avg. expense ratio** | 0.46% | 1.21% | 1.21% | 0.96% | 0.71% | 0.21% |
2025 Fund | ||||||
Expenses paid per $1,000* | $ 1.58 | $ 5.40 | $ 5.40 | $ 4.13 | $ 2.85 | $ 0.31 |
Ending value (after expenses) | $1,023.64 | $1,019.86 | $1,019.86 | $1,021.12 | $1,022.38 | $1,024.90 |
Annualized expense ratio | 0.31% | 1.06% | 1.06% | 0.81% | 0.56% | 0.06% |
Lipper peer group | ||||||
Avg. expense ratio** | 0.46% | 1.21% | 1.21% | 0.96% | 0.71% | 0.21% |
2020 Fund | ||||||
Expenses paid per $1,000* | $ 1.58 | $ 5.40 | $ 5.40 | $ 4.13 | $ 2.85 | $ 0.31 |
Ending value (after expenses) | $1,023.64 | $1,019.86 | $1,019.86 | $1,021.12 | $1,022.38 | $1,024.90 |
Annualized expense ratio | 0.31% | 1.06% | 1.06% | 0.81% | 0.56% | 0.06% |
Lipper peer group | ||||||
Avg. expense ratio** | 0.45% | 1.20% | 1.20% | 0.95% | 0.70% | 0.20% |
2015 Fund | ||||||
Expenses paid per $1,000* | $ 1.58 | $ 5.40 | $ 5.40 | $ 4.13 | $ 2.85 | $ 0.31 |
Ending value (after expenses) | $1,023.64 | $1,019.86 | $1,019.86 | $1,021.12 | $1,022.38 | $1,024.90 |
Annualized expense ratio | 0.31% | 1.06% | 1.06% | 0.81% | 0.56% | 0.06% |
Lipper peer group | ||||||
Avg. expense ratio** | 0.45% | 1.20% | 1.20% | 0.95% | 0.70% | 0.20% |
23
Compare expenses using the SEC’s method and industry averages
(Continued)
Class A | Class B | Class C | Class M | Class R | Class Y | |
2010 Fund | ||||||
Expenses paid per $1,000* | $ 1.53 | $ 5.35 | $ 5.35 | $ 4.08 | $ 2.80 | $ 0.26 |
Ending value (after expenses) | $1,023.69 | $1,019.91 | $1,019.91 | $1,021.17 | $1,022.43 | $1,024.95 |
Annualized expense ratio | 0.30% | 1.05% | 1.05% | 0.80% | 0.55% | 0.05% |
Lipper peer group | ||||||
Avg. expense ratio** | 0.51% | 1.26% | 1.26% | 1.01% | 0.76% | 0.26% |
Maturity Fund | ||||||
Expenses paid per $1,000* | $ 1.68 | $ 5.50 | $ 5.50 | $ 4.23 | $ 2.96 | $ 0.41 |
Ending value (after expenses) | $1,023.54 | $1,019.76 | $1,019.76 | $1,021.02 | $1,022.28 | $1,024.80 |
Annualized expense ratio | 0.33% | 1.08% | 1.08% | 0.83% | 0.58% | 0.08% |
Lipper peer group | ||||||
Avg. expense ratio** | 0.55% | 1.30% | 1.30% | 1.05% | 0.80% | 0.30% |
* Expenses for each share class are calculated using the fund's annualized expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended 1/31/07. The expense ratio may differ for each share class. Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period; and the dividing that result by the number of days in the year.
**The Lipper category for each fund is specified in the table below. The peer group may include funds that are significantly larger than the fund, which may limit the comparability of the fund's expenses to the simple average, which is typically higher than the asset-weighted average.
Putnam RetirementReady Fund | Lipper category |
RetirementReady 2050 Fund | Mixed-Asset Target 2030+ |
RetirementReady 2045 Fund | Mixed-Asset Target 2030+ |
RetirementReady 2040 Fund | Mixed-Asset Target 2030+ |
RetirementReady 2035 Fund | Mixed-Asset Target 2030+ |
RetirementReady 2030 Fund | Mixed-Asset Target 2030 |
RetirementReady 2025 Fund | Mixed-Asset Target 2030 |
RetirementReady 2020 Fund | Mixed-Asset Target 2020 |
RetirementReady 2015 Fund | Mixed-Asset Target 2020 |
RetirementReady 2010 Fund | Mixed-Asset Target 2010 |
RetirementReady Maturity Fund | Mixed-Asset Target Allocation Conservative |
24
Your fund’s management
Your fund is managed by the members of the Global Asset Allocation Team. Jeffrey Knight is the Portfolio Leader, and Robert Kea and Robert Schoen are Portfolio Members. The Portfolio Leader and Portfolio Members coordinate the team’s management of the fund.
For a complete listing of the members of the Global Asset Allocation Team, including those who are not Portfolio Leaders or Portfolio Members of your fund, visit Putnam’s Individual Investor Web site at www.putnam.com.
Investment team fund ownership
The funds’ Portfolio Leader and Portfolio Members each invest in one or more of the six mutual funds that underlie the Putnam RetirementReady Funds. The table below shows how much the funds’ current Portfolio Leader and Portfolio Members have invested in all Putnam mutual funds (in dollar ranges). Information shown is as of January 31, 2007, and January 31, 2006.
$1 – | $10,001 – | $50,001 – | $100,001 – | $500,001 – | $1,000,001 | |||
Year | $0 | $10,000 | $50,000 | $100,000 | $500,000 | $1,000,000 | and over | |
Jeffrey Knight | 2007 | • | ||||||
Portfolio Leader | 2006 | • | ||||||
Robert Kea | 2007 | • | ||||||
Portfolio Member | 2006 | • | ||||||
Robert Schoen | 2007 | • | ||||||
Portfolio Member | 2006 | • | ||||||
Trustee and Putnam employee fund ownership
As of January 31, 2007, 10 of the 12 Trustees of the Putnam funds owned shares of at least one of the RetirementReady Funds, and 11 of the Trustees owned shares of all six Putnam mutual funds that underlie the RetirementReady Funds (one Trustee owned shares of five of the six underlying funds). The table below shows the approximate value of investments in the RetirementReady Funds and all Putnam funds as of that date by the Trustees and Putnam employees. These amounts include investments by the Trustees’ and employees’ immediate family members and investments through retirement and deferred compensation plans.
Total assets in | ||
Assets in the funds | all Putnam funds | |
Trustees | $ 198,000 | $101,000,000 |
Putnam employees | $5,367,000 | $454,000,000 |
25
Fund manager compensation
The total 2006 fund manager compensation that is attributable to the RetirementReady Funds is approximately $250,000. This amount includes a portion of 2006 compensation paid by Putnam Management to the fund managers listed in this section for their portfolio management responsibilities, calculated based on the fund assets they manage taken as a percentage of the total assets they manage. The compensation amount also includes a portion of the 2006 compensation paid to the Chief Investment Officer of the team for his oversight responsibilities, calculated based on the fund assets he oversees taken as a percentage of the total assets he oversees. This amount does not include compensation of other personnel involved in research, trading, administration, systems, compliance, or fund operations; nor does it include non-compensation costs. These percentages are determined as of the funds’ fiscal period-end. For personnel who joined Putnam Management during or after 2006, the calculation reflects annualized 2006 compensation or an estimate of 2007 compensation, as applicable.
Other Putnam funds managed by the Portfolio Leader and Portfolio Members
Jeffrey Knight is also a Portfolio Leader of the Putnam Asset Allocation Funds: Growth, Balanced, and Conservative Portfolios, a Portfolio Leader of Putnam Income Strategies Fund, and a Portfolio Member of The George Putnam Fund of Boston.
Robert Kea and Robert Schoen are also Portfolio Members of the Putnam Asset Allocation Funds: Growth, Balanced, and Conservative Portfolios, as well as Putnam Income Strategies Fund.
Jeffrey Knight, Robert Kea, and Robert Schoen may also manage other accounts and variable trust funds advised by Putnam Management or an affiliate.
Changes in your fund’s Portfolio Leader and Portfolio Members
Your fund’s Portfolio Leader and Portfolio Members did not change during the year ended January 31, 2007.
26
Putnam fund ownership by Putnam’s Executive Board
The table below shows how much the members of Putnam’s Executive Board have invested in all Putnam mutual funds (in dollar ranges). Information shown is as of January 31, 2007, and January 31, 2006.
$1 – | $10,001 – | $50,001 – | $100,001 – | $500,001 – | $1,000,001 | |||
Year | $0 | $10,000 | $50,000 | $100,000 | $500,000 | $1,000,000 | and over | |
Philippe Bibi | 2007 | • | ||||||
Chief Technology Officer | 2006 | • | ||||||
Joshua Brooks | 2007 | • | ||||||
Deputy Head of Investments | 2006 | • | ||||||
William Connolly | 2007 | • | ||||||
Head of Retail Management | 2006 | • | ||||||
Kevin Cronin | 2007 | • | ||||||
Head of Investments | 2006 | • | ||||||
Charles Haldeman, Jr. | 2007 | • | ||||||
President and CEO | 2006 | • | ||||||
Amrit Kanwal | 2007 | • | ||||||
Chief Financial Officer | 2006 | • | ||||||
Steven Krichmar | 2007 | • | ||||||
Chief of Operations | 2006 | • | ||||||
Francis McNamara, III | 2007 | • | ||||||
General Counsel | 2006 | • | ||||||
Jeffrey Peters | 2007 | • | ||||||
Head of International Business | N/A | |||||||
Richard Robie, III | 2007 | • | ||||||
Chief Administrative Officer | 2006 | • | ||||||
Edward Shadek | 2007 | • | ||||||
Deputy Head of Investments | 2006 | • | ||||||
Sandra Whiston | 2007 | • | ||||||
Head of Institutional Management | 2006 | • | ||||||
N/A indicates the individual was not a member of Putnam’s Executive Board as of 1/31/06.
27
Terms and definitions
Important terms
Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.
Net asset value (NAV) is the price, or value, of one share of a mutual fund, without a sales charge. NAVs fluctuate with market conditions. NAV is calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.
Public offering price (POP) is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. POP performance figures shown here assume the 5.25% maximum sales charge for class A shares and 3.25% for class M shares.
Contingent deferred sales charge (CDSC) is generally a charge applied at the time of the redemption of class B or C shares and assumes redemption at the end of the period. Your fund’s class B CDSC declines from a 5% maximum during the first year to 1% during the sixth year. After the sixth year, the CDSC no longer applies. The CDSC for class C shares is 1% for one year after purchase.
Share classes
Class A shares are generally subject to an initial sales charge and no CDSC (except on certain redemptions of shares bought without an initial sales charge).
Class B shares are not subject to an initial sales charge. They may be subject to a CDSC.
Class C shares are not subject to an initial sales charge and are subject to a CDSC only if the shares are redeemed during the first year.
Class M shares have a lower initial sales charge and a higher 12b-1 fee than class A shares and no CDSC (except on certain redemptions of shares bought without an initial sales charge).
Class R shares are not subject to an initial sales charge or CDSC and are available only to certain defined contribution plans.
Class Y shares are not subject to an initial sales charge or CDSC, and carry no 12b-1 fee. They are only available to eligible purchasers, including eligible defined contribution plans or corporate IRAs.
28
Comparative indexes
JPMorgan Developed High Yield Index is an unmanaged index of high-yield fixed-income securities issued in developed countries.
Lehman Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.
Lehman Credit Index is an unmanaged index of investment-grade corporate bonds.
Morgan Stanley Capital International (MSCI) EAFE Index is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australasia.
Russell 1000 Growth Index is an unmanaged index of those companies in the large-cap Russell 1000 Index chosen for their growth orientation.
Russell 1000 Value Index is an unmanaged index of the those companies in the large-cap Russell 1000 Index chosen for their value orientation.
S&P 500 Index is an unmanaged index of common stock performance.
Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.
29
Trustee approval of
management contract
General conclusions
The Board of Trustees of the Putnam funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of your fund’s management contract with Putnam Management. In this regard, the Board of Trustees, with the assistance of its Contract Committee consisting solely of Trustees who are not “interested persons” (as such term is defined in the Investment Company Act of 1940, as amended) of the Putnam funds (the “Independent Trustees”), requests and evaluates all information it deems reasonably necessary under the circumstances. Over the course of several months ending in June 2006, the Contract Committee met four times to consider the information provided by Putnam Management and other information developed with the assistance of the Board’s independent counsel and independent staff. The Contract Committee reviewed and discussed key aspects of this informat ion with all of the Independent Trustees. Upon completion of this review, the Contract Committee recommended, and the Independent Trustees approved, the continuance of your fund’s management contract, effective July 1, 2006.
This approval was based on the following conclusions:
• That the fee schedule in effect for your fund represented reasonable compensation in light of the nature and quality of the services being provided to the fund, the fees paid by competitive funds and the costs incurred by Putnam Management in providing such services, and
• That such fee schedule represented an appropriate sharing between fund shareholders and Putnam Management of such economies of scale as may exist in the management of the fund at current asset levels.
These conclusions were based on a comprehensive consideration of all information provided to the Trustees and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the fee arrangements for your fund and the other Putnam funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that certain aspects of such arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements in prior years.
30
Management fee schedules and categories; total expenses
The Trustees reviewed the management fee schedules in effect for all Putnam funds, including fee levels and breakpoints, and the assignment of funds to particular fee categories. In reviewing fees and expenses, the Trustees generally focused their attention on material changes in circumstances — for example, changes in a fund’s size or investment style, changes in Putnam Management’s operating costs, or changes in competitive practices in the mutual fund industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not warrant changes to the management fee structure of your fund, which had been carefully developed over the years, re-examined on many occasions and adjusted where appropriate. The Trustees focused on two areas of particular interest, as discussed further below:
• Competitiveness. The Trustees reviewed comparative fee and expense information for competitive funds, which indicated that, in a custom peer group of competitive funds selected by Lipper Inc., each Putnam RetirementReady Fund ranked in the 1st percentile in management fees and in the following percentiles in total expenses (less any applicable 12b-1 fees) as of December 31, 2005 (the first percentile being the least expensive funds and the 100th percentile being the most expensive funds).
Total expenses | |
(percentile) | |
Putnam RetirementReady Maturity Fund | 20th |
Putnam RetirementReady 2010 Fund | 20th |
Putnam RetirementReady 2015 Fund | 21st |
Putnam RetirementReady 2020 Fund | 17th |
Putnam RetirementReady 2025 Fund | 13th |
Putnam RetirementReady 2030 Fund | 13th |
Putnam RetirementReady 2035 Fund | 13th |
Putnam RetirementReady 2040 Fund | 17th |
Putnam RetirementReady 2045 Fund | 17th |
Putnam RetirementReady 2050 Fund | 13th |
(The comparative fee and expense information for each Putnam RetirementReady Fund excludes the fees and expenses of the underlying Putnam funds in which a Putnam RetirementReady Fund invests, as well as the fees and expenses of the underlying funds in which other funds in the Lipper peer group invest. In addition, because each Putnam RetirementReady Fund’s custom peer group is different than the RetirementReady Fund’s broad Lipper peer group, this expense information may differ from the Lipper peer expense information found elsewhere in this report.) The Trustees noted that expense ratios for a number of Putnam funds, which show the percentage of fund assets used to pay for management and administrative services, distribution (12b-1) fees and other expenses, had been increasing recently as a result of declining net assets and the natural operation of fee breakpoints.
31
The Trustees noted that the expense ratio increases described above were currently being controlled by expense limitations implemented in January 2004 and which Putnam Management, in consultation with the Contract Committee, has committed to maintain at least through 2007. These expense limitations give effect to a commitment by Putnam Management that the expense ratio of each open-end fund would be no higher than the average expense ratio of the competitive funds included in the fund’s relevant Lipper universe (exclusive of any applicable 12b-1 charges in each case). The Trustees observed that this commitment to limit fund expenses has served shareholders well since its inception. In order to ensure that the expenses of the Putnam funds continue to meet evolving competitive standards, the Trustees requested, and Putnam Management agreed, to implement an additional expense limitation for certain funds for the twelve months beginning January 1, 2007 equal to the average expense ratio (exclusive of 12b-1 charges) of a custom peer group of competitive funds selected by Lipper based on the size of the fund. This additional expense limitation will be applied to those open-end funds that had above-average expense ratios (exclusive of 12b-1 charges) based on the Lipper custom peer group data for the period ended December 31, 2005. This additional expense limitation will not be applied to your fund.
• Economies of scale. In recent years, the Trustees have examined the operation of the existing breakpoint structure during periods of both growth and decline in asset levels. (A “breakpoint” is a reduction in fee rates that applies to additional assets once specified asset levels are reached.) The Trustees concluded that the fee schedules in effect for the funds represented an appropriate sharing of economies of scale at current asset levels. In reaching this conclusion, the Trustees considered the Contract Committee’s stated intent to continue to work with Putnam Management to plan for an eventual resumption in the growth of assets, including a study of potential economies that might be produced under various growth assumpti ons.
In connection with their review of the management fees and total expenses of the Putnam funds, the Trustees also reviewed the costs of the services to be provided and profits to be realized by Putnam Management and its affiliates from the relationship with the funds. This information included trends in revenues, expenses and profitability of Putnam Management and its affiliates relating to the investment management and distribution services provided to the funds. In this regard, the Trustees also reviewed an analysis of Putnam Management’s revenues, expenses and profitability with respect to the funds’ management contracts, allocated on a fund-by-fund basis. Because many of the costs incurred by Putnam Management in managing the funds are not readily identifiable to particular funds, the Trustees observed that the methodology for allocating costs is an important factor in evaluating Putnam Management’s costs and profitabil ity, both as to the Putnam funds in the aggregate and as to individual funds. The Trustees reviewed Putnam Management’s cost allocation methodology with the assistance of independent consultants and concluded that this methodology was reasonable and well-considered.
32
Investment performance
The quality of the investment process provided by Putnam Management represented a major factor in the Trustees’ evaluation of the quality of services provided by Putnam Management under your fund’s management contract. The Trustees were assisted in their review of the Putnam funds’ investment process and performance by the work of the Investment Process Committee of the Trustees and the Investment Oversight Committees of the Trustees, which meet on a regular monthly basis with the funds’ portfolio teams throughout the year. The Trustees concluded that Putnam Management generally provides a high-quality investment process — as measured by the experience and skills of the individuals assigned to the management of fund portfolios, the resources made available to such personnel, and in general the ability of Putnam Management to attract and retain high-quality personnel — but also recognize that this does not gu arantee favorable investment results for every fund in every time period. The Trustees considered the investment performance of each fund over multiple time periods and considered information comparing each fund’s performance with various benchmarks and with the performance of competitive funds.
The Trustees noted the satisfactory investment performance of many Putnam funds. They also noted the disappointing investment performance of certain funds in recent years and discussed with senior management of Putnam Management the factors contributing to such underperformance and actions being taken to improve performance. The Trustees recognized that, in recent years, Putnam Management has made significant changes in its investment personnel and processes and in the fund product line to address areas of underperformance. In particular, they noted the important contributions of Putnam Management’s leadership in attracting, retaining and supporting high-quality investment professionals and in systematically implementing an investment process that seeks to merge the best features of fundamental and quantitative analysis. The Trustees indicated their intention to continue to monitor performance trends to assess the effectiveness of t hese changes and to evaluate whether additional changes to address areas of underperformance are warranted.
In the case of the Putnam RetirementReady Funds, the Trustees considered the Lipper peer group percentile rankings of each fund’s class A share cumulative total return performance results at net asset value for the one-year period ended December 31, 2005. This information is shown in the following table. (Because of the passage of time, these performance results may differ from the performance results for more recent periods shown elsewhere in this report.) Where applicable, the table also shows the number of funds in the peer groups for the period; this number is indicated in parentheses following the percentile. Note that the first percentile denotes the best-performing funds and the 100th percentile denotes the worst-performing funds.
See page 36 for more recent Lipper performance ranking information for the funds. Past performance is no guarantee of future results.
33
One-year period rank (# of funds in category) | ||
Putnam RetirementReady Maturity Fund | ||
Lipper Income Funds | 58th (265) | |
Putnam RetirementReady 2010 Fund | ||
Lipper Income Funds | 26th (265) | |
Putnam RetirementReady 2015 Fund | ||
Lipper Balanced Funds | 38th (650) | |
Putnam RetirementReady 2020 Fund | ||
Lipper Multi-Cap Core Funds | 60th (828) | |
Putnam RetirementReady 2025 Fund | ||
Lipper Multi-Cap Core Funds | 47th (828) | |
Putnam RetirementReady 2030 Fund | ||
Lipper Multi-Cap Core Funds | 39th (828) | |
Putnam RetirementReady 2035 Fund | ||
Lipper Multi-Cap Core Funds | 33rd (828) | |
Putnam RetirementReady 2040 Fund | ||
Lipper Multi-Cap Core Funds | 29th (828) | |
Putnam RetirementReady 2045 Fund | ||
Lipper Multi-Cap Core Funds | 29th (828) | |
Putnam RetirementReady 2050 Fund | ||
Lipper Multi-Cap Core Funds | N/A |
As a general matter, the Trustees concluded that cooperative efforts between the Trustees and Putnam Management represent the most effective way to address investment performance problems. The Trustees noted that investors in the Putnam funds have, in effect, placed their trust in the Putnam organization, under the oversight of the funds’ Trustees, to make appropriate decisions regarding the management of the funds. Based on the responsiveness of Putnam Management in the recent past to Trustee concerns about investment performance, the Trustees concluded that it is preferable to seek change within Putnam Management to address performance shortcomings. In the Trustees’ view, the alternative of terminating a management contract and engaging a new investment adviser for an underperforming fund would entail significant disruptions and would not provide any greater assurance of improved investment performance.
34
Brokerage and soft-dollar allocations; other benefits
The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contract with your fund. These include benefits related to brokerage and soft-dollar allocations, whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research services that may be useful to Putnam Management in managing the assets of the fund and of other clients. The Trustees indicated their continued intent to monitor the potential benefits associated with the allocation of fund brokerage to ensure that the principle of seeking “best price and execution” remains paramount in the portfolio trading process.
The Trustees’ annual review of your fund’s management contract also included the review of its distributor’s contract and distribution plan with Putnam Retail Management Limited Partnership and the custodian agreement and investor servicing agreement with Putnam Fiduciary Trust Company, all of which provide benefits to affiliates of Putnam Management.
Comparison of retail and institutional fee schedules
The information examined by the Trustees as part of their annual contract review has included for many years information regarding fees charged by Putnam Management and its affiliates to institutional clients such as defined benefit pension plans, college endowments, etc. This information included comparison of such fees with fees charged to the funds, as well as a detailed assessment of the differences in the services provided to these two types of clients. The Trustees observed, in this regard, that the differences in fee rates between institutional clients and the funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients reflect to a substantial degree historical competitive forces operating in separate market places. The Trustees considered the fact that fee rates across all asset sectors are higher on average for fun ds than for institutional clients, as well as the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to institutional clients of the firm, but did not rely on such comparisons to any significant extent in concluding that the management fees paid by your fund are reasonable.
35
More recent peer group rankings
More recent Lipper percentile rankings are shown for the funds in the following table. Note that this information was not available to the Trustees when they approved the continuance of each fund’s management contract. The table shows the Lipper peer group percentile rankings of each fund’s class A share total return performance results. These rankings were determined on an annualized basis and are for the one-year period ended on the most recent calendar quarter (December 31, 2006). Where applicable, the table also shows the fund’s rank among the total number of funds in its peer group for the one-year period; this information is indicated in parentheses following the percentile. Note that the first percentile denotes the best-performing funds and the 100th percentile denotes the worst-performing funds. Also please note that, unrelated to the Trustees’ approval of the continuance of your fund’s management contra ct, Lipper reassigned the funds to new peer groups on April 18, 2006, which will be used for comparative purposes going forward.
One-year period rank (# of funds in category) | ||
Putnam RetirementReady Maturity Fund | ||
Lipper Mixed-Asset Target Allocation Conservative Funds | 69th (337) | |
Putnam RetirementReady 2010 Fund | ||
Lipper Mixed-Asset Target 2010 Funds | 83rd (97) | |
Putnam RetirementReady 2015 Fund | ||
Lipper Mixed-Asset Target 2020 Funds | 83rd (116) | |
Putnam RetirementReady 2020 Fund | ||
Lipper Mixed-Asset Target 2020 Funds | 53rd (116) | |
Putnam RetirementReady 2025 Fund | ||
Lipper Mixed-Asset Target 2030 Funds | 52nd (105) | |
Putnam RetirementReady 2030 Fund | ||
Lipper Mixed-Asset Target 2030 Funds | 44th (105) | |
Putnam RetirementReady 2035 Fund | ||
Lipper Mixed-Asset Target 2030+ Funds | 61st (129) | |
Putnam RetirementReady 2040 Fund | ||
Lipper Mixed-Asset Target 2030+ Funds | 42nd (129) | |
Putnam RetirementReady 2045 Fund | ||
Lipper Mixed-Asset Target 2030+ Funds | 31st (129) | |
Putnam RetirementReady 2050 Fund | ||
Lipper Mixed-Asset Target 2030+ Funds | 34th (129) |
36
Other information
for shareholders
Important notice regarding delivery of shareholder documents
In accordance with SEC regulations, Putnam sends a single copy of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.
Proxy voting
Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2006, are available on the Putnam Individual Investor Web site, www.putnam.com/individual, and on the SEC’s Web site, www.sec.gov. If you have questions about finding forms on the SEC’s Web site, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.
Fund portfolio holdings
The funds will file a complete schedule of their portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain the funds’ Forms N-Q on the SEC’s Web site at www.sec.gov. In addition, the funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC’s Web site or the operation of the Public Reference Room.
37
Financial statements
A guide to financial statements
These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.
The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.
Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and noninvestment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)
Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.
Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year.
Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlight table also includes the current reporting period.
38
The funds’ portfolios 1/31/07 (Unaudited)
2050 Fund | |||
EQUITY FUNDS* 95.0% | Shares | Value | |
Putnam Capital Opportunities Fund (Class Y) | 119,014 | $ | 1,456,735 |
Putnam Fund for Growth and Income (Class Y) | 116,897 | 2,387,033 | |
Putnam International Equity Fund (Class Y) | 89,028 | 2,841,777 | |
Putnam Voyager Fund (Class Y) | 123,635 | 2,402,233 | |
Total Equity Funds (cost $8,841,083) | $ | 9,087,778 | |
FIXED INCOME FUNDS* 4.9% | Shares | Value | |
Putnam Income Fund (Class Y) | 55,446 | $ | 374,814 |
Putnam Money Market Fund (Class A) | 90,184 | 90,184 | |
Total Fixed Income Funds (cost $464,341) | $ | 464,998 | |
TOTAL INVESTMENTS | |||
Total investments (cost $9,305,424) | $ | 9,552,776 | |
* Percentages indicated are based on net assets of $9,565,855. | |||
2045 Fund | |||
EQUITY FUNDS* 95.2% | Shares | Value | |
Putnam Capital Opportunities Fund (Class Y) | 445,053 | $ | 5,447,447 |
Putnam Fund for Growth and Income (Class Y) | 437,046 | 8,924,483 | |
Putnam International Equity Fund (Class Y) | 333,258 | 10,637,598 | |
Putnam Voyager Fund (Class Y) | 462,183 | 8,980,209 | |
Total Equity Funds (cost $32,612,127) | $33,989,737 | ||
FIXED INCOME FUNDS* 4.9% | Shares | Value | |
Putnam Income Fund (Class Y) | 207,324 | $ | 1,401,509 |
Putnam Money Market Fund (Class A) | 339,667 | 339,667 | |
Total Fixed Income Funds (cost $1,738,471) | $ | 1,741,176 | |
TOTAL INVESTMENTS | |||
Total investments (cost $34,350,598) | $ | 35,730,913 | |
* Percentages indicated are based on net assets of $35,719,377. |
The accompanying notes are an integral part of these financial statements.
39
The funds’ portfolios 1/31/07 (Unaudited) (Continued)
2040 Fund | |||
EQUITY FUNDS* 90.2% | Shares | Value | |
Putnam Capital Opportunities Fund (Class Y) | 527,021 | $ | 6,450,734 |
Putnam Fund for Growth and Income (Class Y) | 532,144 | 10,866,387 | |
Putnam International Equity Fund (Class Y) | 394,478 | 12,591,737 | |
Putnam Voyager Fund (Class Y) | 562,859 | 10,936,343 | |
Total Equity Funds (cost $38,854,082) | $ | 40,845,201 | |
FIXED INCOME FUNDS* 9.8% | Shares | Value | |
Putnam Income Fund (Class Y) | 460,011 | $ | 3,109,672 |
Putnam Money Market Fund (Class A) | 1,324,776 | 1,324,776 | |
Total Fixed Income Funds (cost $4,429,948) | $ | 4,434,448 | |
TOTAL INVESTMENTS | |||
Total investments (cost $43,284,030) | $ | 45,279,649 | |
* Percentages indicated are based on net assets of $45,262,958. | |||
2035 Fund | |||
EQUITY FUNDS* 85.3% | Shares | Value | |
Putnam Capital Opportunities Fund (Class Y) | 758,507 | $ | 9,284,123 |
Putnam Fund for Growth and Income (Class Y) | 790,531 | 16,142,647 | |
Putnam International Equity Fund (Class Y) | 567,849 | 18,125,733 | |
Putnam Voyager Fund (Class Y) | 836,075 | 16,244,929 | |
Total Equity Funds (cost $56,450,040) | $ | 59,797,432 | |
FIXED INCOME FUNDS* 14.7% | Shares | Value | |
Putnam Income Fund (Class Y) | 1,120,779 | $ | 7,576,468 |
Putnam Money Market Fund (Class A) | 2,751,225 | 2,751,225 | |
Total Fixed Income Funds (cost $10,320,688) | $ | 10,327,693 | |
TOTAL INVESTMENTS | |||
Total investments (cost $66,770,728) | $ | 70,125,125 | |
* Percentages indicated are based on net assets of $70,100,793. |
The accompanying notes are an integral part of these financial statements.
40
The funds’ portfolios 1/31/07 (Unaudited) (Continued)
2030 Fund | |||
EQUITY FUNDS* 80.4% | Shares | Value | |
Putnam Capital Opportunities Fund (Class Y) | 1,008,349 | $ | 12,342,193 |
Putnam Fund for Growth and Income (Class Y) | 1,088,754 | 22,232,363 | |
Putnam International Equity Fund (Class Y) | 754,677 | 24,089,296 | |
Putnam Voyager Fund (Class Y) | 1,151,715 | 22,377,816 | |
Total Equity Funds (cost $76,368,033) | $ | 81,041,668 | |
FIXED INCOME FUNDS* 19.7% | Shares | Value | |
Putnam Income Fund (Class Y) | 2,053,511 | $ | 13,881,734 |
Putnam Money Market Fund (Class A) | 5,960,792 | 5,960,792 | |
Total Fixed Income Funds (cost $19,831,127) | $ | 19,842,526 | |
TOTAL INVESTMENTS | |||
Total investments (cost $96,199,160) | $ | 100,884,194 | |
* Percentages indicated are based on net assets of $100,850,417. | |||
2025 Fund | |||
EQUITY FUNDS* 75.4% | Shares | Value | |
Putnam Capital Opportunities Fund (Class Y) | 1,219,747 | $ | 14,929,699 |
Putnam Fund for Growth and Income (Class Y) | 1,371,585 | 28,007,758 | |
Putnam International Equity Fund (Class Y) | 913,044 | 29,144,358 | |
Putnam Voyager Fund (Class Y) | 1,450,739 | 28,187,863 | |
Total Equity Funds (cost $93,990,327) | $ | 100,269,678 | |
FIXED INCOME FUNDS* 24.6% | Shares | Value | |
Putnam Income Fund (Class Y) | 3,290,945 | $ | 22,246,791 |
Putnam Money Market Fund (Class A) | 10,507,272 | 10,507,272 | |
Total Fixed Income Funds (cost $32,781,552) | $ | 32,754,063 | |
TOTAL INVESTMENTS | |||
Total investments (cost $126,771,879) | $ | 133,023,741 | |
* Percentages indicated are based on net assets of $132,979,730. |
The accompanying notes are an integral part of these financial statements.
41
The funds’ portfolios 1/31/07 (Unaudited) (Continued)
2020 Fund | |||
EQUITY FUNDS* 65.5% | Shares | Value | |
Putnam Capital Opportunities Fund (Class Y) | 1,342,278 | $ | 16,429,482 |
Putnam Fund for Growth and Income (Class Y) | 1,581,132 | 32,286,715 | |
Putnam International Equity Fund (Class Y) | 753,493 | 24,051,509 | |
Putnam Voyager Fund (Class Y) | 1,672,419 | 32,495,097 | |
Total Equity Funds (cost $99,333,809) | $105,262,803 | ||
FIXED INCOME FUNDS* 34.5% | Shares | Value | |
Putnam Income Fund (Class Y) | 5,857,807 | $ | 39,598,777 |
Putnam Money Market Fund (Class A) | 15,910,237 | 15,910,237 | |
Total Fixed Income Funds (cost $55,525,932) | $ | 55,509,014 | |
TOTAL INVESTMENTS | |||
Total investments (cost $154,859,741) | $ | 160,771,817 | |
* Percentages indicated are based on net assets of $160,717,760. | |||
2015 Fund | |||
EQUITY FUNDS* 49.5% | Shares | Value | |
Putnam Capital Opportunities Fund (Class Y) | 1,120,632 | $ | 13,716,541 |
Putnam Fund for Growth and Income (Class Y) | 1,173,427 | 23,961,381 | |
Putnam International Equity Fund (Class Y) | 372,786 | 11,899,319 | |
Putnam Voyager Fund (Class Y) | 1,241,238 | 24,117,264 | |
Total Equity Funds (cost $70,245,797) | $ | 73,694,505 | |
FIXED INCOME FUNDS* 50.5% | Shares | Value | |
Putnam Income Fund (Class Y) | 7,172,843 | $ | 48,488,420 |
Putnam Money Market Fund (Class A) | 26,607,262 | 26,607,262 | |
Total Fixed Income Funds (cost $75,135,188) | $ | 75,095,682 | |
TOTAL INVESTMENTS | |||
Total investments (cost $145,380,985) | $ | 148,790,187 | |
* Percentages indicated are based on net assets of $148,741,253. |
The accompanying notes are an integral part of these financial statements.
42
The funds’ portfolios 1/31/07 (Unaudited) (Continued)
2010 Fund | |||
EQUITY FUNDS* 29.5% | Shares | Value | |
Putnam Capital Opportunities Fund (Class Y) | 321,232 | $ | 3,931,881 |
Putnam Fund for Growth and Income (Class Y) | 416,139 | 8,497,558 | |
Putnam International Equity Fund (Class Y) | 48,079 | 1,534,691 | |
Putnam Voyager Fund (Class Y) | 440,251 | 8,554,068 | |
Total Equity Funds (cost $21,510,422) | $ | 22,518,198 | |
FIXED INCOME FUNDS* 70.6% | Shares | Value | |
Putnam Income Fund (Class Y) | 4,821,086 | $ | 32,590,542 |
Putnam Money Market Fund (Class A) | 21,376,874 | 21,376,874 | |
Total Fixed Income Funds (cost $53,956,780) | $ | 53,967,416 | |
TOTAL INVESTMENTS | |||
Total investments (cost $75,467,202) | $ | 76,485,614 | |
* Percentages indicated are based on net assets of $76,462,004. | |||
Maturity Fund | |||
EQUITY FUNDS* 25.4% | Shares | Value | |
Putnam Capital Opportunities Fund (Class Y) | 175,109 | $ | 2,143,331 |
Putnam Fund for Growth and Income (Class Y) | 206,231 | 4,211,232 | |
Putnam International Equity Fund (Class Y) | — | — | |
Putnam Voyager Fund (Class Y) | 218,159 | 4,238,821 | |
Total Equity Funds (cost $10,230,682) | $ | 10,593,384 | |
FIXED INCOME FUNDS* 74.6% | Shares | Value | |
Putnam Income Fund (Class Y) | 2,750,392 | $ | 18,592,646 |
Putnam Money Market Fund (Class A) | 12,486,547 | 12,486,547 | |
Total Fixed Income Funds (cost $31,100,727) | $ | 31,079,193 | |
TOTAL INVESTMENTS | |||
Total investments (cost $41,331,409) | $ | 41,672,577 | |
* Percentages indicated are based on net assets of $41,656,272. |
The accompanying notes are an integral part of these financial statements.
43
Statement of assets and liabilities 1/31/07 (Unaudited)
ASSETS | 2050 Fund | 2045 Fund |
Investments in affiliated underlying Putnam Funds, at value (Notes 1 and 5) | $9,552,776 | $35,730,913 |
Interest receivable | 361 | 1,406 |
Receivable for shares of the fund sold | 141,954 | 283,222 |
Receivable for securities sold | 8,080 | 27,180 |
Cash | 83 | 91 |
Total assets | 9,703,254 | 36,042,812 |
LIABILITIES | ||
Payable for shares of the fund redeemed | 8,080 | 27,181 |
Payable for securities purchased | 125,798 | 284,580 |
Payable for compensation of Manager (Note 2) | 37 | 2,334 |
Payable for distribution fees (Note 2) | 1,519 | 4,661 |
Other accrued expenses | 1,965 | 4,679 |
Total liabilities | 137,399 | 323,435 |
Net assets | $9,565,855 | $35,719,377 |
REPRESENTED BY | ||
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4) | $8,899,875 | $32,043,306 |
Undistributed net investment income (Note 1) | 69,815 | 323,527 |
Accumulated net realized gain on investments (Note 1) | 348,813 | 1,972,229 |
Net unrealized appreciation of investments | 247,352 | 1,380,315 |
Total — Representing net assets applicable to capital outstanding | $9,565,855 | $35,719,377 |
(Continued on next page)
44
Statement of assets and liabilities 1/31/07 (Unaudited) (Continued)
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE | 2050 Fund | 2045 Fund |
Computation of net asset value, offering price | ||
and redemption price Class A | ||
Net Assets | $7,136,367 | $22,074,511 |
Number of shares outstanding | 113,396 | 281,546 |
Net asset value and redemption price | $62.93 | $78.40 |
Offering price per class A share (100/94.75 of Class A net asset value)* | $66.42 | $82.74 |
Computation of net asset value and offering price Class B | ||
Net Assets | $122,023 | $123,397 |
Number of shares outstanding | 1,947 | 1,628 |
Net asset value and offering price** | $62.69 | $75.82 |
Computation of net asset value and offering price Class C | ||
Net Assets | $1,322 | $11,981 |
Number of shares outstanding | 21 | 157 |
Net asset value and offering price** | $63.00 | $76.32 |
Computation of net asset value, offering price | ||
and redemption price Class M | ||
Net Assets | $2,122 | $5,716 |
Number of shares outstanding | 34 | 75 |
Net asset value and redemption price | $62.91 | $76.57 |
Offering price per class M share (100/96.75 of Class M net asset value)* | $65.02 | $79.14 |
Computation of net asset value, offering price | ||
and redemption price Class R | ||
Net Assets | $25,072 | $80,329 |
Number of shares outstanding | 399 | 1,006 |
Net asset value, offering price and redemption price | $62.83 | $79.83 |
Computation of net asset value, offering price | ||
and redemption price Class Y | ||
Net Assets | $2,278,949 | $13,423,443 |
Number of shares outstanding | 36,121 | 156,018 |
Net asset value, offering price and redemption price | $63.09 | $86.04 |
Cost of investments (Note 1) | $9,305,424 | $34,350,598 |
* On retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.
**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
45
Statement of assets and liabilities 1/31/07 (Unaudited) (Continued)
ASSETS | 2040 Fund | 2035 Fund |
Investments in affiliated underlying Putnam Funds, at value (Notes 1 and 5) | $45,279,649 | $70,125,125 |
Interest receivable | 5,561 | 11,447 |
Receivable for shares of the fund sold | 182,692 | 466,366 |
Receivable for securities sold | 27,665 | 54,831 |
Cash | 152 | 299 |
Total assets | 45,495,719 | 70,658,068 |
LIABILITIES | ||
Payable for shares of the fund redeemed | 27,664 | 54,831 |
Payable for securities purchased | 187,999 | 477,422 |
Payable for compensation of Manager (Note 2) | 4,223 | 6,311 |
Payable for distribution fees (Note 2) | 6,457 | 9,110 |
Other accrued expenses | 6,418 | 9,601 |
Total liabilities | 232,761 | 557,275 |
Net assets | $45,262,958 | $70,100,793 |
REPRESENTED BY | ||
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4) | $40,527,968 | $62,610,442 |
Undistributed net investment income (Note 1) | 408,559 | 594,660 |
Accumulated net realized gain on investments (Note 1) | 2,330,812 | 3,541,294 |
Net unrealized appreciation of investments | 1,995,619 | 3,354,397 |
Total — Representing net assets applicable to capital outstanding | $45,262,958 | $70,100,793 |
(Continued on next page)
46
Statement of assets and liabilities 1/31/07 (Unaudited) (Continued)
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE | 2040 Fund | 2035 Fund |
Computation of net asset value, offering price | ||
and redemption price Class A | ||
Net Assets | $29,985,919 | $42,068,705 |
Number of shares outstanding | 386,834 | 563,642 |
Net asset value and redemption price | $77.52 | $74.64 |
Offering price per class A share (100/94.75 of Class A net asset value)* | $81.82 | $78.78 |
Computation of net asset value and offering price Class B | ||
Net Assets | $214,017 | $417,212 |
Number of shares outstanding | 2,858 | 5,819 |
Net asset value and offering price** | $74.89 | $71.70 |
Computation of net asset value and offering price Class C | ||
Net Assets | $3,416 | $52,405 |
Number of shares outstanding | 45 | 729 |
Net asset value and offering price** | $75.14 | $71.88 |
Computation of net asset value, offering price | ||
and redemption price Class M | ||
Net Assets | $40,135 | $53,853 |
Number of shares outstanding | 534 | 746 |
Net asset value and redemption price | $75.17 | $72.20 |
Offering price per class M share (100/96.75 of Class M net asset value)* | $77.70 | $74.63 |
Computation of net asset value, offering price | ||
and redemption price Class R | ||
Net Assets | $92,488 | $132,494 |
Number of shares outstanding | 1,169 | 1,807 |
Net asset value, offering price and redemption price | $79.13 | $73.32 |
Computation of net asset value, offering price | ||
and redemption price Class Y | ||
Net Assets | $14,926,983 | $27,376,124 |
Number of shares outstanding | 176,109 | 334,655 |
Net asset value, offering price and redemption price | $84.76 | $81.80 |
Cost of investments (Note 1) | $43,284,030 | $66,770,728 |
* On retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.
**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
47
Statement of assets and liabilities 1/31/07 (Unaudited) (Continued)
ASSETS | 2030 Fund | 2025 Fund |
Investments in affiliated underlying Putnam Funds, at value (Notes 1 and 5) | $100,884,194 | $133,023,741 |
Interest receivable | 25,042 | 43,914 |
Receivable for shares of the fund sold | 234,245 | 311,156 |
Receivable for securities sold | 102,965 | 113,109 |
Cash | 425 | 661 |
Total assets | 101,246,871 | 133,492,581 |
LIABILITIES | ||
Payable for shares of the fund redeemed | 92,965 | 113,109 |
Payable for securities purchased | 268,437 | 353,572 |
Payable for compensation of Manager (Note 2) | 8,527 | 11,886 |
Payable for distribution fees (Note 2) | 13,308 | 16,830 |
Other accrued expenses | 13,217 | 17,454 |
Total liabilities | 396,454 | 512,851 |
Net assets | $100,850,417 | $132,979,730 |
REPRESENTED BY | ||
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4) | $89,923,749 | $118,872,230 |
Undistributed net investment income (Note 1) | 836,894 | 1,051,442 |
Accumulated net realized gain on investments (Note 1) | 5,404,740 | 6,804,196 |
Net unrealized appreciation of investments | 4,685,034 | 6,251,862 |
Total — Representing net assets applicable to capital outstanding | $100,850,417 | $132,979,730 |
(Continued on next page)
48
Statement of assets and liabilities 1/31/07 (Unaudited) (Continued)
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE | 2030 Fund | 2025 Fund |
Computation of net asset value, offering price | ||
and redemption price Class A | ||
Net Assets | $59,129,459 | $75,306,739 |
Number of shares outstanding | 806,973 | 989,491 |
Net asset value and redemption price | $73.27 | $76.11 |
Offering price per class A share (100/94.75 of Class A net asset value)* | $77.33 | $80.33 |
Computation of net asset value and offering price Class B | ||
Net Assets | $572,853 | $958,088 |
Number of shares outstanding | 8,040 | 13,103 |
Net asset value and offering price** | $71.25 | $73.12 |
Computation of net asset value and offering price Class C | ||
Net Assets | $40,083 | $142,050 |
Number of shares outstanding | 560 | 1,936 |
Net asset value and redemption price** | $71.60 | $73.38 |
Computation of net asset value, offering price | ||
and redemption price Class M | ||
Net Assets | $730,871 | $303,684 |
Number of shares outstanding | 10,256 | 4,130 |
Net asset value and redemption price | $71.27 | $73.52 |
Offering price per class M share ((100/96.75 of Class M net asset value)* | $73.66 | $75.99 |
Computation of net asset value, offering price | ||
and redemption price Class R | ||
Net Assets | $135,422 | $150,593 |
Number of shares outstanding | 1,898 | 2,051 |
Net asset value, offering price and redemption price | $71.33 | $73.43 |
Computation of net asset value, offering price | ||
and redemption price Class Y | ||
Net Assets | $40,241,729 | $56,118,576 |
Number of shares outstanding | 505,418 | 734,793 |
Net asset value, offering price and redemption price | $79.62 | $76.37 |
Cost of investments (Note 1) | $96,199,160 | $126,771,879 |
* On retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.
**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
49
Statement of assets and liabilities 1/31/07 (Unaudited) (Continued)
ASSETS | 2020 Fund | 2015 Fund |
Investments in affiliated underlying Putnam Funds, at value (Notes 1 and 5) | $160,771,817 | $148,790,187 |
Interest receivable | 66,669 | 111,458 |
Receivable for shares of the fund sold | 438,897 | 160,762 |
Receivable for securities sold | 118,300 | 341,998 |
Cash | 465 | 417 |
Total assets | 161,396,148 | 149,404,822 |
LIABILITIES | ||
Payable for shares of the fund redeemed | 118,300 | 341,998 |
Payable for securities purchased | 503,101 | 268,414 |
Payable for compensation of Manager (Note 2) | 15,451 | 14,331 |
Payable for distribution fees (Note 2) | 21,749 | 20,346 |
Other accrued expenses | 19,787 | 18,480 |
Total liabilities | 678,388 | 663,569 |
Net assets | $160,717,760 | $148,741,253 |
REPRESENTED BY | ||
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4) | $146,987,496 | $140,046,177 |
Undistributed net investment income (Note 1) | 1,271,850 | 1,247,686 |
Accumulated net realized gain on investments (Note 1) | 6,546,338 | 4,038,188 |
Net unrealized appreciation of investments | 5,912,076 | 3,409,202 |
Total — Representing net assets applicable to capital outstanding | $160,717,760 | $148,741,253 |
(Continued on next page)
50
Statement of assets and liabilities 1/31/07 (Unaudited) (Continued)
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE | 2020 Fund | 2015 Fund |
Computation of net asset value, offering price | ||
and redemption price Class A | ||
Net Assets | $99,076,829 | $92,500,471 |
Number of shares outstanding | 1,445,614 | 1,375,600 |
Net asset value and redemption price | $68.54 | $67.24 |
Offering price per class A share (100/94.75 of Class A net asset value)* | $72.34 | $70.97 |
Computation of net asset value and offering price Class B | ||
Net Assets | $708,970 | $746,063 |
Number of shares outstanding | 10,578 | 11,333 |
Net asset value and offering price** | $67.02 | $65.83 |
Computation of net asset value and offering price Class C | ||
Net Assets | $144,171 | $234,461 |
Number of shares outstanding | 2,140 | 3,554 |
Net asset value and offering price** | $67.37 | $65.96 |
Computation of net asset value, offering price | ||
and redemption price Class M | ||
Net Assets | $587,676 | $161,027 |
Number of shares outstanding | 8,733 | 2,430 |
Net asset value and redemption price | $67.30 | $66.28 |
Offering price per class M share (100/96.75 of Class M net asset value)* | $69.56 | $68.51 |
Computation of net asset value, offering price | ||
and redemption price Class R | ||
Net Assets | $145,561 | $18,159 |
Number of shares outstanding | 2,163 | 274 |
Net asset value, offering price and redemption price | $67.31 | $66.23 |
Computation of net asset value, offering price | ||
and redemption price Class Y | ||
Net Assets | $60,054,553 | $55,081,072 |
Number of shares outstanding | 814,142 | 816,604 |
Net asset value, offering price and redemption price | $73.76 | $67.45 |
Cost of investments (Note 1) | $154,859,741 | $145,380,985 |
* On retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.
**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
51
Statement of assets and liabilities 1/31/07 (Unaudited) (Continued)
ASSETS | 2010 Fund | Maturity Fund |
Investments in affiliated underlying Putnam Funds, at value (Notes 1 and 5) | $76,485,614 | $41,672,577 |
Interest receivable | 90,646 | 53,040 |
Receivable for shares of the fund sold | 122,027 | 381,849 |
Receivable for securities sold | 100,458 | 316,233 |
Cash | 206 | 120,713 |
Total assets | 76,798,951 | 42,544,412 |
LIABILITIES | ||
Payable for shares of the fund redeemed | 100,458 | 316,233 |
Payable for securities purchased | 209,619 | 433,108 |
Payable for compensation of Manager (Note 2) | 5,458 | 5,716 |
Payable for distribution fees (Note 2) | 9,861 | 6,916 |
Distributions payable to shareholders | — | 120,604 |
Other accrued expenses | 11,551 | 5,563 |
Total liabilities | 336,947 | 888,140 |
Net assets | $76,462,004 | $41,656,272 |
REPRESENTED BY | ||
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4) | $74,103,278 | $40,791,801 |
Undistributed net investment income (Note 1) | 494,345 | 190,402 |
Accumulated net realized gain on investments (Note 1) | 845,969 | 332,901 |
Net unrealized appreciation of investments | 1,018,412 | 341,168 |
Total — Representing net assets applicable to capital outstanding | $76,462,004 | $41,656,272 |
(Continued on next page)
52
Statement of assets and liabilities 1/31/07 (Unaudited) (Continued)
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE | 2010 Fund | Maturity Fund |
Computation of net asset value, offering price | ||
and redemption price Class A | ||
Net Assets | $44,415,319 | $31,528,825 |
Number of shares outstanding | 759,349 | 549,156 |
Net asset value and redemption price | $58.49 | $57.41 |
Offering price per class A share (100/94.75 of Class A net asset value)* | $61.73 | $60.59 |
Computation of net asset value and offering price Class B | ||
Net Assets | $310,965 | $156,424 |
Number of shares outstanding | 5,422 | 2,723 |
Net asset value and offering price** | $57.35 | $57.45 |
Computation of net asset value and offering price Class C | ||
Net Assets | $63,222 | $27,250 |
Number of shares outstanding | 1,106 | 474 |
Net asset value and offering price** | $57.19 | $57.47 |
Computation of net asset value, offering price | ||
and redemption price Class M | ||
Net Assets | $138,841 | $92,877 |
Number of shares outstanding | 2,423 | 1,617 |
Net asset value and redemption price | $57.29 | $57.43 |
Offering price per class M share (100/96.75 of Class M net asset value)* | $59.21 | $59.36 |
Computation of net asset value, offering price | ||
and redemption price Class R | ||
Net Assets | $146,296 | $70,758 |
Number of shares outstanding | 2,550 | 1,232 |
Net asset value, offering price and redemption price | $57.37 | $57.43 |
Computation of net asset value, offering price | ||
and redemption price Class Y | ||
Net Assets | $31,387,361 | $9,780,138 |
Number of shares outstanding | 511,818 | 169,925 |
Net asset value, offering price and redemption price | $61.33 | $57.56 |
Cost of investments (Note 1) | $75,467,202 | $41,331,409 |
* On retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.
**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
53
Statement of operations
For the six months ended 1/31/07 (Unaudited)
INVESTMENT INCOME | 2050 Fund | 2045 Fund |
Income distributions from underlying Putnam Funds (Note 5) | $200,436 | $887,698 |
EXPENSES (NOTE 2) | ||
Compensation of Manager (Note 2) | 1,632 | 7,644 |
Distribution fees — Class A (Note 2) | 6,188 | 23,454 |
Distribution fees — Class B (Note 2) | 419 | 565 |
Distribution fees — Class C (Note 2) | 6 | 54 |
Distribution fees — Class M (Note 2) | 12 | 29 |
Distribution fees — Class R (Note 2) | 40 | 105 |
Audit fees | 637 | 3,001 |
Reports to shareholder | 1,424 | 1,710 |
Other fees | 335 | 467 |
Fees waived and reimbursed by Manager (Note 2) | (1,675) | (2,496) |
Total expenses | 9,018 | 34,533 |
Net investment income | 191,418 | 853,165 |
Net realized gain on sale of underlying Putnam fund shares (Notes 1 and 3) | 77,297 | 986,612 |
Capital gain distributions from underlying Putnam fund shares | 316,256 | 1,385,667 |
Net unrealized appreciation of underlying Putnam fund shares | ||
during the period | 308,539 | 1,010,689 |
Net gain on investments | 702,092 | 3,382,968 |
Net increase in net assets resulting from operations | $893,510 | $4,236,133 |
The accompanying notes are an integral part of these financial statements.
54
Statement of operations (Continued)
For the six months ended 1/31/07 (Unaudited)
INVESTMENT INCOME | 2040 Fund | 2035 Fund |
Income distributions from underlying Putnam Funds (Note 5) | $1,143,589 | $1,745,743�� |
EXPENSES (NOTE 2) | ||
Compensation of Manager (Note 2) | 10,167 | 16,135 |
Distribution fees — Class A (Note 2) | 33,117 | 46,326 |
Distribution fees — Class B (Note 2) | 778 | 1,787 |
Distribution fees — Class C (Note 2) | 14 | 164 |
Distribution fees — Class M (Note 2) | 108 | 166 |
Distribution fees — Class R (Note 2) | 163 | 134 |
Audit fees | 3,994 | 6,346 |
Reports to shareholder | 2,334 | 3,242 |
Other fees | 660 | 815 |
Fees waived and reimbursed by Manager (Note 2) | (3,420) | (5,264) |
Total expenses | 47,915 | 69,851 |
Net investment income | 1,095,674 | 1,675,892 |
Net realized gain on sale of underlying Putnam fund shares (Notes 1 and 3) | 1,157,665 | 1,889,720 |
Capital gain distributions from underlying Putnam fund shares | 1,734,739 | 2,550,915 |
Net unrealized appreciation of underlying Putnam fund shares | ||
during the period | 1,451,998 | 2,174,382 |
Net gain on investments | 4,344,402 | 6,615,017 |
Net increase in net assets resulting from operations | $5,440,076 | $8,290,909 |
The accompanying notes are an integral part of these financial statements.
55
Statement of operations (Continued)
For the six months ended 1/31/07 (Unaudited)
INVESTMENT INCOME | 2030 Fund | 2025 Fund |
Income distributions from underlying Putnam Funds (Note 5) | $ 2,531,757 | $3,304,113 |
EXPENSES (NOTE 2) | ||
Compensation of Manager (Note 2) | 24,071 | 32,223 |
Distribution fees — Class A (Note 2) | 67,014 | 86,852 |
Distribution fees — Class B (Note 2) | 2,324 | 4,269 |
Distribution fees — Class C (Note 2) | 202 | 635 |
Distribution fees — Class M (Note 2) | 2,614 | 1,064 |
Distribution fees — Class R (Note 2) | 270 | 328 |
Audit fees | 9,473 | 12,688 |
Reports to shareholder | 4,013 | 5,744 |
Other fees | 937 | 814 |
Fees waived and reimbursed by Manager (Note 2) | (9,617) | (12,344) |
Total expenses | 101,301 | 132,273 |
Net investment income | 2,430,456 | 3,171,840 |
Net realized gain on sale of underlying Putnam fund shares (Notes 1 and 3) | 3,223,373 | 4,135,966 |
Capital gain distributions from underlying Putnam fund shares | 3,579,971 | 4,496,462 |
Net unrealized appreciation of underlying Putnam fund shares | ||
during the period | 2,599,450 | 3,343,525 |
Net gain on investments | 9,402,794 | 11,975,953 |
Net increase in net assets resulting from operations | $11,833,250 | $15,147,793 |
The accompanying notes are an integral part of these financial statements.
56
Statement of operations (Continued)
For the six months ended 1/31/07 (Unaudited)
INVESTMENT INCOME | 2020 Fund | 2015 Fund |
Income distributions from underlying Putnam Funds (Note 5) | $3,961,349 | $3,710,859 |
EXPENSES (NOTE 2) | ||
Compensation of Manager (Note 2) | 39,599 | 35,747 |
Distribution fees — Class A (Note 2) | 114,101 | 105,500 |
Distribution fees — Class B (Note 2) | 2,958 | 3,120 |
Distribution fees — Class C (Note 2) | 529 | 1,108 |
Distribution fees — Class M (Note 2) | 2,218 | 565 |
Distribution fees — Class R (Note 2) | 306 | 23 |
Audit fees | 15,601 | 14,070 |
Reports to shareholder | 5,067 | 4,599 |
Other fees | 651 | 1,193 |
Fees waived and reimbursed by Manager (Note 2) | (13,670) | (12,260) |
Total expenses | 167,360 | 153,665 |
Net investment income | 3,793,989 | 3,557,194 |
Net realized gain on sale of underlying Putnam fund shares (Notes 1 and 3) | 3,896,545 | 2,491,869 |
Capital gain distributions from underlying Putnam fund shares | 4,809,367 | 3,340,977 |
Net unrealized appreciation of underlying Putnam fund shares | ||
during the period | 4,296,934 | 3,182,560 |
Net gain on investments | 13,002,846 | 9,015,406 |
Net increase in net assets resulting from operations | $16,796,835 | $12,572,600 |
The accompanying notes are an integral part of these financial statements.
57
Statement of operations (Continued)
For the six months ended 1/31/07 (Unaudited)
INVESTMENT INCOME | 2010 Fund | Maturity Fund |
Income distributions from underlying Putnam funds (Note 5) | $1,957,470 | $1,136,492 |
EXPENSES (NOTE 2) | ||
Compensation of Manager (Note 2) | 20,680 | 11,326 |
Distribution fees — Class A (Note 2) | 58,034 | 41,543 |
Distribution fees — Class B (Note 2) | 1,319 | 743 |
Distribution fees — Class C (Note 2) | 208 | 110 |
Distribution fees — Class M (Note 2) | 509 | 334 |
Distribution fees — Class R (Note 2) | 231 | 158 |
Audit fees | 8,161 | 4,464 |
Reports to shareholder | 3,590 | 1,177 |
Other fees | 763 | 295 |
Fees waived and reimbursed by Manager (Note 2) | (13,381) | — |
Total expenses | 80,114 | 60,150 |
Net investment income | 1,877,356 | 1,076,342 |
Net realized gain on sale of underlying Putnam fund shares (Notes 1 and 3) | 769,192 | 86,408 |
Capital gain distributions from underlying Putnam fund shares | 1,143,313 | 573,034 |
Net unrealized appreciation of underlying Putnam fund shares | ||
during the period | 1,679,809 | 944,084 |
Net gain on investments | 3,592,314 | 1,603,526 |
Net increase in net assets resulting from operations | $5,469,670 | $2,679,868 |
The accompanying notes are an integral part of these financial statements.
58
Statement of changes in net assets
2050 Fund | ||
INCREASE IN NET ASSETS | ||
Six months ended | Year ended | |
1/31/07* | 7/31/06 | |
Operations: | ||
Net investment income | $ 191,418 | $ 16,645 |
Net realized gain on underlying Putnam fund shares | 393,553 | 102,446 |
Net unrealized appreciation (depreciation) | ||
on underlying Putnam fund shares | 308,539 | (72,415) |
Net increase in net assets resulting from operations | 893,510 | 46,676 |
Distributions to shareholders (Note 1) | ||
From ordinary income | ||
Net investment income | ||
Class A | (94,430) | (12,282) |
Class B | (1,103) | (331) |
Class C | (9) | (39) |
Class M | (41) | (35) |
Class R | (298) | (13) |
Class Y | (29,289) | (4,084) |
Net realized short-term gain on investments | ||
Class A | (80,242) | (14,240) |
Class B | (1,314) | (588) |
Class C | (17) | (73) |
Class M | (52) | (55) |
Class R | (267) | (19) |
Class Y | (23,127) | (4,516) |
From net realized long-term gain on investments | ||
Class A | (17,256) | — |
Class B | (282) | — |
Class C | (4) | — |
Class M | (11) | — |
Class R | (57) | — |
Class Y | (4,974) | — |
Redemption fees (Note 1) | — | 77 |
Increase from capital share transactions (Note 4) | 4,967,642 | 3,499,920 |
Total increase in net assets | 5,608,379 | 3,510,398 |
NET ASSETS | ||
Beginning of period | 3,957,476 | 447,078 |
End of period | $9,565,855 | $3,957,476 |
Undistributed net investment income, end of period | $ 69,815 | $ 3,567 |
* Unaudited
The accompanying notes are an integral part of these financial statements.
59
Statement of changes in net assets (Continued)
2045 Fund | ||
INCREASE IN NET ASSETS | ||
Six months ended | Year ended | |
1/31/07* | 7/31/06 | |
Operations: | ||
Net investment income | $ 853,165 | $ 249,622 |
Net realized gain on underlying Putnam fund shares | 2,372,279 | 1,263,206 |
Net unrealized appreciation (depreciation) | ||
on underlying Putnam fund shares | 1,010,689 | (335,452) |
Net increase in net assets resulting from operations | 4,236,133 | 1,177,376 |
Distributions to shareholders (Note 1) | ||
From ordinary income | ||
Net investment income | ||
Class A | (339,437) | (166,913) |
Class B | (1,444) | (218) |
Class C | (113) | (78) |
Class M | (67) | (87) |
Class R | (1,222) | — |
Class Y | (211,146) | (126,139) |
Net realized short-term gain on investments | ||
Class A | (121,393) | (349,962) |
Class B | (710) | (603) |
Class C | (68) | (314) |
Class M | (41) | (271) |
Class R | (416) | — |
Class Y | (68,070) | (238,800) |
From net realized long-term gain on investments | ||
Class A | (754,391) | — |
Class B | (4,414) | — |
Class C | (421) | — |
Class M | (253) | — |
Class R | (2,585) | — |
Class Y | (423,018) | — |
Redemption fees (Note 1) | 229 | 401 |
Increase from capital share transactions (Note 4) | 7,832,690 | 9,186,199 |
Total increase in net assets | 10,139,843 | 9,480,591 |
NET ASSETS | ||
Beginning of period | 25,579,534 | 16,098,943 |
End of period | $35,719,377 | $25,579,534 |
Undistributed net investment income, end of period | $ 323,527 | $ 23,791 |
* Unaudited
The accompanying notes are an integral part of these financial statements.
60
Statement of changes in net assets (Continued)
2040 Fund | ||
INCREASE IN NET ASSETS | ||
Six months ended | Year ended | |
1/31/07* | 7/31/06 | |
Operations: | ||
Net investment income | $ 1,095,674 | $ 353,517 |
Net realized gain on underlying Putnam fund shares | 2,892,404 | 1,776,972 |
Net unrealized appreciation (depreciation) | ||
on underlying Putnam fund shares | 1,451,998 | (538,066) |
Net increase in net assets resulting from operations | 5,440,076 | 1,592,423 |
Distributions to shareholders (Note 1) | ||
From ordinary income | ||
Net investment income | ||
Class A | (491,393) | (234,538) |
Class B | (2,749) | (483) |
Class C | (43) | (10) |
Class M | (464) | (131) |
Class R | (1,252) | — |
Class Y | (262,203) | (146,479) |
Net realized short-term gain on investments | ||
Class A | (128,605) | (534,325) |
Class B | (904) | (1,625) |
Class C | (15) | (43) |
Class M | (146) | (423) |
Class R | (339) | — |
Class Y | (61,966) | (299,882) |
From net realized long-term gain on investments | ||
Class A | (1,134,065) | — |
Class B | (7,972) | — |
Class C | (129) | — |
Class M | (1,284) | — |
Class R | (2,994) | — |
Class Y | (546,427) | — |
Redemption fees (Note 1) | — | 368 |
Increase from capital share transactions (Note 4) | 7,891,491 | 12,936,322 |
Total increase in net assets | 10,688,617 | 13,311,174 |
NET ASSETS | ||
Beginning of period | 34,574,341 | 21,263,167 |
End of period | $45,262,958 | $34,574,341 |
Undistributed net investment income, end of period | $ 408,559 | $ 70,989 |
* Unaudited
The accompanying notes are an integral part of these financial statements.
61
Statement of changes in net assets (Continued)
2035 Fund | ||
INCREASE IN NET ASSETS | ||
Six months ended | Year ended | |
1/31/07* | 7/31/06 | |
Operations: | ||
Net investment income | $ 1,675,892 | $ 742,955 |
Net realized gain on underlying Putnam fund shares | 4,440,635 | 3,272,167 |
Net unrealized appreciation (depreciation) | ||
on underlying Putnam fund shares | 2,174,382 | (1,048,506) |
Net increase in net assets resulting from operations | 8,290,909 | 2,966,616 |
Distributions to shareholders (Note 1) | ||
From ordinary income | ||
Net investment income | ||
Class A | (739,867) | (415,033) |
Class B | (5,989) | (2,451) |
Class C | (935) | (12) |
Class M | (725) | (327) |
Class R | (1,577) | — |
Class Y | (520,626) | (359,130) |
Net realized short-term gain on investments | ||
Class A | (1,525) | (872,564) |
Class B | (16) | (5,959) |
Class C | (2) | (43) |
Class M | (2) | (885) |
Class R | (3) | (6) |
Class Y | (971) | (679,478) |
From net realized long-term gain on investments | ||
Class A | (1,981,115) | (5,644) |
Class B | (21,388) | (39) |
Class C | (2,569) | — |
Class M | (2,432) | (6) |
Class R | (4,068) | — |
Class Y | (1,261,418) | (4,395) |
Redemption fees (Note 1) | 39 | 5 |
Increase from capital share transactions (Note 4) | 7,814,852 | 15,826,585 |
Total increase in net assets | 11,560,572 | 16,447,234 |
NET ASSETS | ||
Beginning of period | 58,540,221 | 42,092,987 |
End of period | $70,100,793 | $58,540,221 |
Undistributed net investment income, end of period | $ 594,660 | $ 188,487 |
* Unaudited
The accompanying notes are an integral part of these financial statements.
62
Statement of changes in net assets (Continued)
2030 Fund | ||
INCREASE IN NET ASSETS | ||
Six months ended | Year ended | |
1/31/07* | 7/31/06 | |
Operations: | ||
Net investment income | $ 2,430,456 | $ 1,297,288 |
Net realized gain on underlying Putnam fund shares | 6,803,344 | 4,688,975 |
Net unrealized appreciation (depreciation) | ||
on underlying Putnam fund shares | 2,599,450 | (1,426,516) |
Net increase in net assets resulting from operations | 11,833,250 | 4,559,747 |
Distributions to shareholders (Note 1) | ||
From ordinary income | ||
Net investment income | ||
Class A | (1,131,581) | (645,707) |
Class B | (8,130) | (4,028) |
Class C | (244) | (639) |
Class M | (15,295) | (779) |
Class R | (2,298) | (844) |
Class Y | (836,926) | (651,675) |
Net realized short-term gain on investments | ||
Class A | (1,486) | (1,184,385) |
Class B | (15) | (9,681) |
Class C | (1) | (1,367) |
Class M | (22) | (1,738) |
Class R | (3) | (1,482) |
Class Y | (1,000) | (1,079,684) |
From net realized long-term gain on investments | ||
Class A | (2,794,404) | (11,612) |
Class B | (27,354) | (95) |
Class C | (1,457) | (13) |
Class M | (41,645) | (17) |
Class R | (6,061) | (15) |
Class Y | (1,880,333) | (10,585) |
Redemption fees (Note 1) | 11 | 920 |
Increase from capital share transactions (Note 4) | 6,036,396 | 18,421,092 |
Total increase in net assets | 11,121,402 | 19,377,413 |
NET ASSETS | ||
Beginning of period | 89,729,015 | 70,351,602 |
End of period | $100,850,417 | $89,729,015 |
Undistributed net investment income, end of period | $ 836,894 | $ 400,912 |
* Unaudited
The accompanying notes are an integral part of these financial statements.
63
Statement of changes in net assets (Continued)
2025 Fund | ||
INCREASE IN NET ASSETS | ||
Six months ended | Year ended | |
1/31/07* | 7/31/06 | |
Operations: | ||
Net investment income | $ 3,171,840 | $ 2,057,344 |
Net realized gain on underlying Putnam fund shares | 8,632,428 | 7,562,091 |
Net unrealized appreciation (depreciation) | ||
on underlying Putnam fund shares | 3,343,525 | (2,964,957) |
Net increase in net assets resulting from operations | 15,147,793 | 6,654,478 |
Distributions to shareholders (Note 1) | ||
From ordinary income | ||
Net investment income | ||
Class A | (1,476,514) | (980,942) |
Class B | (15,423) | (4,935) |
Class C | (2,156) | (705) |
Class M | (4,808) | (3,000) |
Class R | (2,938) | (37) |
Class Y | (1,317,622) | (1,051,074) |
Net realized short-term gain on investments | ||
Class A | — | (1,681,714) |
Class B | — | (10,597) |
Class C | — | (1,682) |
Class M | — | (6,352) |
Class R | — | (70) |
Class Y | — | (1,624,261) |
From net realized long-term gain on investments | ||
Class A | (3,869,888) | (2,161) |
Class B | (51,783) | (14) |
Class C | (7,656) | (2) |
Class M | (15,943) | (8) |
Class R | (7,627) | — |
Class Y | (3,130,990) | (2,087) |
Redemption fees (Note 1) | — | 821 |
Increase from capital share transactions (Note 4) | 5,059,948 | 11,762,047 |
Total increase in net assets | 10,304,393 | 13,047,705 |
NET ASSETS | ||
Beginning of period | 122,675,337 | 109,627,632 |
End of period | $132,979,730 | $122,675,337 |
Undistributed net investment income, end of period | $ 1,051,442 | $ 699,063 |
* Unaudited
The accompanying notes are an integral part of these financial statements.
64
Statement of changes in net assets (Continued)
2020 Fund | ||
INCREASE IN NET ASSETS | ||
Six months ended | Year ended | |
1/31/07* | 7/31/06 | |
Operations: | ||
Net investment income | $ 3,793,989 | $ 2,784,060 |
Net realized gain on underlying Putnam fund shares | 8,705,912 | 7,015,353 |
Net unrealized appreciation (depreciation) | ||
on underlying Putnam fund shares | 4,296,934 | (3,925,439) |
Net increase in net assets resulting from operations | 16,796,835 | 5,873,974 |
Distributions to shareholders (Note 1) | ||
From ordinary income | ||
Net investment income | ||
Class A | (2,219,236) | (1,169,602) |
Class B | (12,653) | (5,464) |
Class C | (1,638) | (1,091) |
Class M | (12,118) | (6,518) |
Class R | (2,995) | (1,096) |
Class Y | (1,513,866) | (1,260,545) |
Net realized short-term gain on investments | ||
Class A | (1,319) | (1,497,711) |
Class B | (9) | (8,487) |
Class C | (2) | (1,862) |
Class M | (9) | (9,658) |
Class R | (2) | (1,305) |
Class Y | (826) | (1,466,727) |
From net realized long-term gain on investments | ||
Class A | (4,451,666) | (3,510) |
Class B | (31,882) | (20) |
Class C | (4,865) | (4) |
Class M | (29,102) | (23) |
Class R | (6,407) | (3) |
Class Y | (2,786,572) | (3,437) |
Redemption fees (Note 1) | — | 353 |
Increase (decrease) from capital share transactions (Note 4) | (899,643) | 35,018,689 |
Total increase in net assets | 4,822,025 | 35,455,953 |
NET ASSETS | ||
Beginning of period | 155,895,735 | 120,439,782 |
End of period | $160,717,760 | $155,895,735 |
Undistributed net investment income, end of period | $ 1,271,850 | $ 1,240,367 |
* Unaudited
The accompanying notes are an integral part of these financial statements.
65
Statement of changes in net assets (Continued)
2015 Fund | ||
INCREASE (DECREASE) IN NET ASSETS | ||
Six months ended | Year ended | |
1/31/07* | 7/31/06 | |
Operations: | ||
Net investment income | $ 3,557,194 | $ 2,978,581 |
Net realized gain on underlying Putnam fund shares | 5,832,846 | 7,232,417 |
Net unrealized appreciation (depreciation) | ||
on underlying Putnam fund shares | 3,182,560 | (5,734,750) |
Net increase in net assets resulting from operations | 12,572,600 | 4,476,248 |
Distributions to shareholders (Note 1) | ||
From ordinary income | ||
Net investment income | ||
Class A | (2,262,336) | (1,340,947) |
Class B | (14,895) | (3,935) |
Class C | (4,123) | (2,633) |
Class M | (3,083) | (3,386) |
Class R | (268) | (720) |
Class Y | (1,454,847) | (1,424,368) |
Net realized short-term gain on investments | ||
Class A | (14,418) | (2,034,022) |
Class B | (115) | (6,839) |
Class C | (36) | (4,596) |
Class M | (25) | (5,918) |
Class R | (2) | (1,037) |
Class Y | (8,618) | (1,977,837) |
From net realized long-term gain on investments | ||
Class A | (3,687,110) | (2,511) |
Class B | (29,361) | (8) |
Class C | (9,131) | (6) |
Class M | (6,321) | (7) |
Class R | (479) | (1) |
Class Y | (2,203,815) | (2,442) |
Redemption fees (Note 1) | 20 | 36 |
Increase (decrease) from capital share transactions (Note 4) | 15,603,519 | (8,359,668) |
Total increase (decrease) in net assets | 18,477,156 | (10,694,597) |
NET ASSETS | ||
Beginning of period | 130,264,097 | 140,958,694 |
End of period | $148,741,253 | $130,264,097 |
Undistributed net investment income, end of period | $ 1,247,686 | $ 1,430,044 |
* Unaudited
The accompanying notes are an integral part of these financial statements.
66
Statement of changes in net assets (Continued)
2010 Fund | ||
INCREASE (DECREASE) IN NET ASSETS | ||
Six months ended | Year ended | |
1/31/07* | 7/31/06 | |
Operations: | ||
Net investment income | $ 1,877,356 | $ 2,464,799 |
Net realized gain on underlying Putnam fund shares | 1,912,505 | 2,454,626 |
Net unrealized appreciation (depreciation) | ||
on underlying Putnam fund shares | 1,679,809 | (2,804,430) |
Net increase in net assets resulting from operations | 5,469,670 | 2,114,995 |
Distributions to shareholders (Note 1) | ||
From ordinary income | ||
Net investment income | ||
Class A | (1,619,352) | (1,011,730) |
Class B | (8,771) | (1,365) |
Class C | (1,130) | (720) |
Class M | (4,082) | (2,636) |
Class R | (2,705) | (2,459) |
Class Y | (1,140,275) | (1,004,002) |
Net realized short-term gain on investments | ||
Class A | (17,103) | (665,612) |
Class B | (108) | (1,306) |
Class C | (15) | (535) |
Class M | (49) | (1,823) |
Class R | (31) | (1,537) |
Class Y | (11,264) | (608,118) |
From net realized long-term gain on investments | ||
Class A | (1,598,362) | (9,984) |
Class B | (10,058) | (20) |
Class C | (1,390) | (8) |
Class M | (4,627) | (27) |
Class R | (2,895) | (23) |
Class Y | (1,052,719) | (9,122) |
Redemption fees (Note 1) | — | 1,403 |
Increase (decrease) from capital share transactions (Note 4) | (10,058,878) | 3,792,860 |
Total increase (decrease) in net assets | (10,064,144) | 2,588,231 |
NET ASSETS | ||
Beginning of period | 86,526,148 | 83,937,917 |
End of period | $ 76,462,004 | $86,526,148 |
Undistributed net investment income, end of period | $ 494,345 | $ 1,393,304 |
* Unaudited
The accompanying notes are an integral part of these financial statements.
67
Statement of changes in net assets (Continued)
Maturity Fund | ||
DECREASE IN NET ASSETS | ||
Six months ended | Year ended | |
1/31/07* | 7/31/06 | |
Operations: | ||
Net investment income | $ 1,076,342 | $ 1,420,408 |
Net realized gain on underlying Putnam fund shares | 659,442 | 726,852 |
Net unrealized appreciation (depreciation) | ||
on underlying Putnam fund shares | 944,084 | (1,309,034) |
Net increase in net assets resulting from operations | 2,679,868 | 838,226 |
Distributions to shareholders (Note 1) | ||
From ordinary income | ||
Net investment income | ||
Class A | (685,497) | (946,095) |
Class B | (2,458) | (2,943) |
Class C | (394) | (26) |
Class M | (1,593) | (416) |
Class R | (1,273) | (183) |
Class Y | (244,913) | (536,359) |
Net realized short-term gain on investments | ||
Class A | (14,502) | (384,904) |
Class B | (61) | (1,631) |
Class C | (11) | (13) |
Class M | (37) | (40) |
Class R | (32) | (13) |
Class Y | (4,384) | (186,875) |
From net realized long-term gain on investments | ||
Class A | (503,150) | — |
Class B | (2,123) | — |
Class C | (370) | — |
Class M | (1,276) | — |
Class R | (1,098) | — |
Class Y | (152,111) | — |
Redemption fees (Note 1) | — | 445 |
Decrease from capital share transactions (Note 4) | (4,632,806) | (1,202,495) |
Total decrease in net assets | (3,568,221) | (2,423,322) |
NET ASSETS | ||
Beginning of period | 45,224,493 | 47,647,815 |
End of period | $41,656,272 | $45,224,493 |
Undistributed net investment income, end of period | $ 190,402 | $ 50,188 |
* Unaudited
The accompanying notes are an integral part of these financial statements.
68
This page left blank intentionally.
69
Financial highlights (For a common share outstanding throughout the period)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||
Net | Total | Ratio of net | ||||||||||||
Net asset | realized and | Total | From | From | Net asset | return | Net | Ratio of | investment | |||||
value, | Net | unrealized | from | net | net realized | value, | at net | assets, | expenses to | income (loss) | Portfolio | |||
beginning | investment | gain (loss) on | investment | investment | gain on | Total | Redemption | end | asset | end of period | average net | to average | turnover | |
Period ended | of period | income (loss)(a)(f) | investments | operations | income | investments | distributions | fees | of period | value (%)(b) | (in thousands) | assets (%)(c)(d) | net assets (%)(d)(f) | (%) |
Putnam RetirementReady 2050 Fund | ||||||||||||||
CLASS A | ||||||||||||||
January 31, 2007† | $56.44 | 1.79 | 6.71 | 8.50 | (.99) | (1.02) | (2.01) | — | $62.93 | 15.12* | $7,136 | .16* | 2.97* | 39.93* |
July 31, 2006 | 54.36 | .48 | 3.33 | 3.81 | (.80) | (.93) | (1.73) | —(e) | 56.44 | 7.07 | 2,852 | .35 | .86 | 96.90 |
July 31, 2005** | 50.00 | (.01) | 4.37 | 4.36 | — | — | — | — | 54.36 | 8.72* | 274 | .09* | (.02)* | 24.76* |
CLASS B | ||||||||||||||
January 31, 2007† | $56.18 | 1.55 | 6.68 | 8.23 | (.70) | (1.02) | (1.72) | — | $62.69 | 14.72* | $122 | .54* | 2.59* | 39.93* |
July 31, 2006 | 54.25 | .24 | 3.14 | 3.38 | (.52) | (.93) | (1.45) | —(e) | 56.18 | 6.26 | 45 | 1.10 | .43 | 96.90 |
July 31, 2005** | 50.00 | (.08) | 4.33 | 4.25 | — | — | — | — | 54.25 | 8.50* | 31 | .28* | (.16)* | 24.76* |
CLASS C | ||||||||||||||
January 31, 2007† | $56.21 | 1.31 | 6.93 | 8.24 | (.43) | (1.02) | (1.45) | — | $63.00 | 14.70* | $1 | .54* | 2.19* | 39.93* |
July 31, 2006 | 54.25 | .73 | 2.66 | 3.39 | (.50) | (.93) | (1.43) | —(e) | 56.21 | 6.29 | 1 | 1.10 | 1.31 | 96.90 |
July 31, 2005** | 50.00 | (.08) | 4.33 | 4.25 | — | — | — | — | 54.25 | 8.50* | 4 | .28* | (.16)* | 24.76* |
CLASS M | ||||||||||||||
January 31, 2007† | $56.28 | 1.51 | 6.80 | 8.31 | (.66) | (1.02) | (1.68) | — | $62.91 | 14.82* | $2 | .41* | 2.50* | 39.93* |
July 31, 2006 | 54.28 | .45 | 3.07 | 3.52 | (.59) | (.93) | (1.52) | —(e) | 56.28 | 6.52 | 3 | .85 | .78 | 96.90 |
July 31, 2005** | 50.00 | (.05) | 4.33 | 4.28 | — | — | — | — | 54.28 | 8.56* | 3 | .22* | (.09)* | 24.76* |
CLASS R | ||||||||||||||
January 31, 2007† | $56.37 | 1.72 | 6.69 | 8.41 | (.93) | (1.02) | (1.95) | — | $62.83 | 15.00* | $25 | .29* | 2.86* | 39.93* |
July 31, 2006 | 54.32 | .22 | 3.43 | 3.65 | (.67) | (.93) | (1.60) | —(e) | 56.37 | 6.75 | 10 | .60 | .40 | 96.90 |
July 31, 2005** | 50.00 | (.02) | 4.34 | 4.32 | — | — | — | — | 54.32 | 8.64* | 1 | .15* | (.04)* | 24.76* |
CLASS Y | ||||||||||||||
January 31, 2007† | $56.57 | 1.85 | 6.75 | 8.60 | (1.06) | (1.02) | (2.08) | — | $63.09 | 15.28* | $2,279 | .04* | 3.07* | 39.93* |
July 31, 2006 | 54.38 | .62 | 3.34 | 3.96 | (.84) | (.93) | (1.77) | —(e) | 56.57 | 7.34 | 1,047 | .10 | 1.09 | 96.90 |
July 31, 2005** | 50.00 | .03 | 4.35 | 4.38 | — | — | — | — | 54.38 | 8.76* | 134 | .03* | .05* | 24.76* |
See page 90 for Notes to Financial Highlights.
The accompanying notes are an integral part of these financial statements.
70 | 71 |
Financial highlights (For a common share outstanding throughout the period) (Continued)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||
Net | Total | Ratio of net | ||||||||||||
Net asset | realized and | Total | From | From | Net asset | return | Net | Ratio of | investment | |||||
value, | Net | unrealized | from | net | net realized | value, | at net | assets, | expenses to | income (loss) | Portfolio | |||
beginning | investment | gain (loss) on | investment | investment | gain on | Total | Redemption | end | asset | end of period | average net | to average | turnover | |
Period ended | of period | income (loss)(a)(f) | investments | operations | income | investments | distributions | fees | of period | value (%)(b) | (in thousands) | assets (%)(c)(d) | net assets (%)(d)(f) | (%) |
Putnam RetirementReady 2045 Fund | ||||||||||||||
CLASS A | ||||||||||||||
January 31, 2007† | $72.28 | 2.13 | 8.71 | 10.84 | (1.32) | (3.40) | (4.72) | —(e) | $78.40 | 15.13* | $22,075 | .16* | 2.78* | 31.22* |
July 31, 2006 | 70.75 | .83 | 4.42 | 5.25 | (1.20) | (2.52) | (3.72) | —(e) | 72.28 | 7.50 | 15,085 | .35 | 1.14 | 55.76 |
July 31, 2005*** | 63.42 | .28 | 7.63 | 7.91 | (.58) | — | (.58) | — | 70.75 | 12.51* | 8,136 | .26* | .41* | 42.17* |
CLASS B | ||||||||||||||
January 31, 2007† | $69.98 | 1.68 | 8.52 | 10.20 | (.96) | (3.40) | (4.36) | —(e) | $75.82 | 14.70* | $123 | .54* | 2.26* | 31.22* |
July 31, 2006 | 68.83 | (.01) | 4.59 | 4.58 | (.91) | (2.52) | (3.43) | —(e) | 69.98 | 6.71 | 81 | 1.10 | (.01) | 55.76 |
July 31, 2005*** | 62.00 | (.24) | 7.58 | 7.34 | (.51) | — | (.51) | — | 68.83 | 11.87* | 17 | .82* | (.37)* | 42.17* |
CLASS C | ||||||||||||||
January 31, 2007† | $70.27 | 1.70 | 8.53 | 10.23 | (.78) | (3.40) | (4.18) | —(e) | $76.32 | 14.69* | $12 | .54* | 2.28* | 31.22* |
July 31, 2006 | 68.84 | .32 | 4.26 | 4.58 | (.63) | (2.52) | (3.15) | —(e) | 70.27 | 6.70 | 9 | 1.10 | .46 | 55.76 |
July 31, 2005*** | 62.00 | (.26) | 7.61 | 7.35 | (.51) | — | (.51) | — | 68.84 | 11.89* | 10 | .82* | (.39)* | 42.17* |
CLASS M | ||||||||||||||
January 31, 2007† | $70.38 | 1.71 | 8.65 | 10.36 | (.77) | (3.40) | (4.17) | —(e) | $76.57 | 14.85* | $6 | .41* | 2.29* | 31.22* |
July 31, 2006 | 68.94 | .51 | 4.26 | 4.77 | (.81) | (2.52) | (3.33) | —(e) | 70.38 | 6.97 | 8 | .85 | .72 | 55.76 |
July 31, 2005*** | 62.00 | (.06) | 7.54 | 7.48 | (.54) | — | (.54) | — | 68.94 | 12.09* | 9 | .64* | (.09)* | 42.17* |
CLASS R | ||||||||||||||
January 31, 2007† | $73.67 | 3.25 | 7.69 | 10.94 | (1.38) | (3.40) | (4.78) | —(e) | $79.83 | 15.00* | $80 | .29* | 4.19* | 31.22* |
July 31, 2006 (1) | 72.20 | (.06) | 1.53 | 1.47 | — | — | — | —(e) | 73.67 | 2.04* | 19 | .36* | (.09)* | 55.76 |
December 19, 2005 (2) | 69.06 | 1.48 | 1.66 | 3.14 | — | — | — | — | 72.20 | 4.55* | — | .23* | 2.12* | 36.08* |
July 31, 2005*** | 62.00 | .30 | 7.32 | 7.62 | (.56) | — | (.56) | — | 69.06 | 12.33* | 1 | .45* | .45* | 42.17* |
CLASS Y | ||||||||||||||
January 31, 2007† | $78.94 | 2.43 | 9.53 | 11.96 | (1.46) | (3.40) | (4.86) | —(e) | $86.04 | 15.29* | $13,423 | .03* | 2.90* | 31.22* |
July 31, 2006 | 76.88 | 1.09 | 4.82 | 5.91 | (1.33) | (2.52) | (3.85) | —(e) | 78.94 | 7.77 | 10,378 | .10 | 1.37 | 55.76 |
July 31, 2005*** | 68.76 | .46 | 8.26 | 8.72 | (.60) | — | (.60) | — | 76.88 | 12.72* | 7,926 | .07* | .63* | 42.17* |
See page 90 for Notes to Financial Highlights.
The accompanying notes are an integral part of these financial statements.
72 | 73 |
Financial highlights (For a common share outstanding throughout the period) (Continued)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||
Net | Total | Ratio of net | ||||||||||||
Net asset | realized and | Total | From | From | Net asset | return | Net | Ratio of | investment | |||||
value, | Net | unrealized | from | net | net realized | value, | at net | assets, | expenses to | income (loss) | Portfolio | |||
beginning | investment | gain (loss) on | investment | investment | gain on | Total | Redemption | end | asset | end of period | average net | to average | turnover | |
Period ended | of period | income (loss)(a)(f) | investments | operations | income | investments | distributions | fees | of period | value (%)(b) | (in thousands) | assets (%)(c)(d) | net assets (%)(d)(f) | (%) |
Putnam RetirementReady 2040 Fund | ||||||||||||||
CLASS A | ||||||||||||||
January 31, 2007† | $72.11 | 2.05 | 8.31 | 10.36 | (1.39) | (3.56) | (4.95) | — | $77.52 | 14.51* | $29,986 | .16* | 2.69* | 29.30* |
July 31, 2006 | 70.81 | .89 | 4.28 | 5.17 | (1.18) | (2.69) | (3.87) | —(e) | 72.11 | 7.38 | 21,829 | .35 | 1.24 | 54.52 |
July 31, 2005*** | 63.50 | .32 | 7.51 | 7.83 | (.52) | — | (.52) | —(e) | 70.81 | 12.37* | 12,230 | .26* | .48* | 39.79* |
CLASS B | ||||||||||||||
January 31, 2007† | $69.82 | 1.85 | 7.88 | 9.73 | (1.10) | (3.56) | (4.66) | — | $74.89 | 14.09* | $214 | .54* | 2.53* | 29.30* |
July 31, 2006 | 68.82 | .15 | 4.34 | 4.49 | (.80) | (2.69) | (3.49) | —(e) | 69.82 | 6.58 | 127 | 1.10 | .22 | 54.52 |
July 31, 2005*** | 62.00 | (.25) | 7.52 | 7.27 | (.45) | — | (.45) | —(e) | 68.82 | 11.75* | 37 | .82* | (.38)* | 39.79* |
CLASS C | ||||||||||||||
January 31, 2007† | $70.00 | 1.78 | 7.98 | 9.76 | (1.06) | (3.56) | (4.62) | — | $75.14 | 14.09* | $3 | .54* | 2.44* | 29.30* |
July 31, 2006 | 68.83 | .32 | 4.18 | 4.50 | (.64) | (2.69) | (3.33) | —(e) | 70.00 | 6.60 | 2 | 1.10 | .46 | 54.52 |
July 31, 2005*** | 62.00 | .06 | 7.22 | 7.28 | (.45) | — | (.45) | —(e) | 68.83 | 11.77* | 1 | .82* | .09* | 39.79* |
CLASS M | ||||||||||||||
January 31, 2007† | $70.03 | 1.81 | 8.05 | 9.86 | (1.16) | (3.56) | (4.72) | — | $75.17 | 14.22* | $40 | .41* | 2.46* | 29.30* |
July 31, 2006 | 68.88 | .45 | 4.22 | 4.67 | (.83) | (2.69) | (3.52) | —(e) | $70.03 | 6.85 | 23 | .85 | .64 | 54.52 |
July 31, 2005*** | 62.00 | .07 | 7.33 | 7.40 | (.52) | — | (.52) | —(e) | 68.88 | 11.96* | 11 | .64* | .11* | 39.79* |
CLASS R | ||||||||||||||
January 31, 2007† | $73.56 | 2.08 | 8.39 | 10.47 | (1.34) | (3.56) | (4.90) | — | $79.13 | 14.38* | $92 | .29* | 2.68* | 29.30* |
July 31, 2006 (1) | 72.11 | .04 | 1.41 | 1.45 | — | — | — | —(e) | 73.56 | 2.01* | 46 | .36* | .05* | 54.52 |
December 19, 2005 (2) | 69.04 | 1.47 | 1.60 | 3.07 | — | — | — | — | 72.11 | 4.45* | — | .23* | 2.10* | 39.73* |
July 31, 2005*** | 62.00 | .31 | 7.23 | 7.54 | (.50) | — | (.50) | —(e) | 69.04 | 12.20* | 1 | .45* | .47* | 39.79* |
CLASS Y | ||||||||||||||
January 31, 2007† | $78.47 | 2.33 | 9.06 | 11.39 | (1.54) | (3.56) | (5.10) | — | $84.76 | 14.66* | $14,927 | .03* | 2.80* | 29.30* |
July 31, 2006 | 76.67 | 1.15 | 4.65 | 5.80 | (1.31) | (2.69) | (4.00) | —(e) | 78.47 | 7.66 | 12,548 | .10 | 1.46 | 54.52 |
July 31, 2005*** | 68.61 | .50 | 8.10 | 8.60 | (.54) | — | (.54) | —(e) | 76.67 | 12.58* | 8,983 | .07* | .68* | 39.79* |
See page 90 for Notes to Financial Highlights.
The accompanying notes are an integral part of these financial statements.
74 | 75 |
Financial highlights (For a common share outstanding throughout the period) (Continued)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||
Net | Total | Ratio of net | ||||||||||||
Net asset | realized and | Total | From | From | Net asset | return | Net | Ratio of | investment | |||||
value, | Net | unrealized | from | net | net realized | value, | at net | assets, | expenses to | income (loss) | Portfolio | |||
beginning | investment | gain (loss) on | investment | investment | gain on | Total | Redemption | end | asset | end of period | average net | to average | turnover | |
Period ended | of period | income (loss)(a)(f) | investments | operations | income | investments | distributions | fees | of period | value (%)(b) | (in thousands) | assets (%)(c)(d) | net assets (%)(d)(f) | (%) |
Putnam RetirementReady 2035 Fund | ||||||||||||||
CLASS A | ||||||||||||||
January 31, 2007† | $70.33 | 1.93 | 7.74 | 9.67 | (1.46) | (3.90) | (5.36) | —(e) | $74.64 | 13.89* | $42,069 | .16* | 2.61* | 29.45* |
July 31, 2006 | 69.50 | 1.00 | 3.73 | 4.73 | (1.25) | (2.65) | (3.90) | —(e) | 70.33 | 6.87 | 31,513 | .35 | 1.41 | 51.70 |
July 31, 2005*** | 62.61 | .38 | 6.96 | 7.34 | (.45) | — | (.45) | — | 69.50 | 11.76* | 21,274 | .26* | .58* | 36.45* |
CLASS B | ||||||||||||||
January 31, 2007† | $67.68 | 1.68 | 7.33 | 9.01 | (1.09) | (3.90) | (4.99) | —(e) | $71.70 | 13.45* | $417 | .54* | 2.36* | 29.45* |
July 31, 2006 | 67.35 | .38 | 3.68 | 4.06 | (1.08) | (2.65) | (3.73) | —(e) | 67.68 | 6.08 | 308 | 1.10 | .55 | 51.70 |
July 31, 2005*** | 61.00 | (.08) | 6.87 | 6.79 | (.44) | — | (.44) | — | 67.35 | 11.15* | 67 | .82* | (.13)* | 36.45* |
CLASS C | ||||||||||||||
January 31, 2007† | $68.13 | 2.31 | 6.76 | 9.07 | (1.42) | (3.90) | (5.32) | —(e) | $71.88 | 13.46* | $52 | .54* | 3.23* | 29.45* |
July 31, 2006 | 67.41 | .18 | 3.92 | 4.10 | (.73) | (2.65) | (3.38) | —(e) | 68.13 | 6.13 | 7 | 1.10 | .26 | 51.70 |
July 31, 2005*** | 61.00 | .10 | 6.69 | 6.79 | (.38) | — | (.38) | — | 67.41 | 11.15* | 1 | .82* | .15* | 36.45* |
CLASS M | ||||||||||||||
January 31, 2007† | $68.10 | 1.70 | 7.46 | 9.16 | (1.16) | (3.90) | (5.06) | —(e) | $72.20 | 13.59* | $54 | .41* | 2.37* | 29.45* |
July 31, 2006 | 67.47 | .56 | 3.69 | 4.25 | (.97) | (2.65) | (3.62) | —(e) | 68.10 | 6.35 | 37 | .85 | .82 | 51.70 |
July 31, 2005*** | 61.00 | (.01) | 6.92 | 6.91 | (.44) | — | (.44) | — | 67.47 | 11.35* | 20 | .64* | (.02)* | 36.45* |
CLASS R | ||||||||||||||
January 31, 2007† | $69.31 | 2.41 | 7.01 | 9.42 | (1.51) | (3.90) | (5.41) | —(e) | $73.32 | 13.74* | $132 | .29* | 3.33* | 29.45* |
July 31, 2006 | 67.61 | .65 | 3.70 | 4.35 | — | (2.65) | (2.65) | —(e) | 69.31 | 6.48 | 25 | .60 | .96 | 51.70 |
July 31, 2005*** | 61.00 | .35 | 6.70 | 7.05 | (.44) | — | (.44) | — | 67.61 | 11.58* | 1 | .45* | .52* | 36.45* |
CLASS Y | ||||||||||||||
January 31, 2007† | $76.67 | 2.14 | 8.50 | 10.64 | (1.61) | (3.90) | (5.51) | —(e) | $81.80 | 14.02* | $27,376 | .03* | 2.65* | 29.45* |
July 31, 2006 | 75.37 | 1.25 | 4.09 | 5.34 | (1.39) | (2.65) | (4.04) | —(e) | 76.67 | 7.16 | 26,650 | .10 | 1.63 | 51.70 |
July 31, 2005*** | 67.76 | .56 | 7.52 | 8.08 | (.47) | — | (.47) | — | 75.37 | 11.96* | 20,730 | .07* | .77* | 36.45* |
See page 90 for Notes to Financial Highlights.
The accompanying notes are an integral part of these financial statements.
76 | 77 |
Financial highlights (For a common share outstanding throughout the period) (Continued)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||
Net | Total | Ratio of net | ||||||||||||
Net asset | realized and | Total | From | From | Net asset | return | Net | Ratio of | investment | |||||
value, | Net | unrealized | from | net | net realized | value, | at net | assets, | expenses to | income (loss) | Portfolio | |||
beginning | investment | gain (loss) on | investment | investment | gain on | Total | Redemption | end | asset | end of period | average net | to average | turnover | |
Period ended | of period | income (loss)(a)(f) | investments | operations | income | investments | distributions | fees | of period | value (%)(b) | (in thousands) | assets (%)(c)(d) | net assets (%)(d)(f ) | (%) |
Putnam RetirementReady 2030 Fund | ||||||||||||||
CLASS A | ||||||||||||||
January 31, 2007† | $69.46 | 1.86 | 7.23 | 9.09 | (1.52) | (3.76) | (5.28) | —(e) | $73.27 | 13.24* | $59,129 | .16* | 2.54* | 32.41* |
July 31, 2006 | 68.65 | 1.10 | 3.36 | 4.46 | (1.28) | (2.37) | (3.65) | —(e) | 69.46 | 6.57 | 46,153 | .35 | 1.57 | 48.81 |
July 31, 2005*** | 62.16 | .44 | 6.47 | 6.91 | (.42) | — | (.42) | — | 68.65 | 11.14* | 32,720 | .26* | .66* | 34.59* |
CLASS B | ||||||||||||||
January 31, 2007† | $67.56 | 1.64 | 6.93 | 8.57 | (1.12) | (3.76) | (4.88) | —(e) | $71.25 | 12.82* | $573 | .54* | 2.32* | 32.41* |
July 31, 2006 | 67.07 | .59 | 3.25 | 3.84 | (.98) | (2.37) | (3.35) | —(e) | 67.56 | 5.77 | 302 | 1.10 | .86 | 48.81 |
July 31, 2005*** | 61.00 | (.13) | 6.55 | 6.42 | (.35) | — | (.35) | — | 67.07 | 10.54* | 225 | .82* | (.20)* | 34.59* |
CLASS C | ||||||||||||||
January 31, 2007† | $67.43 | 1.05 | 7.51 | 8.56 | (.63) | (3.76) | (4.39) | —(e) | $71.60 | 12.81* | $40 | .54* | 1.46* | 32.41* |
July 31, 2006 | 67.06 | .64 | 3.20 | 3.84 | (1.10) | (2.37) | (3.47) | —(e) | 67.43 | 5.77 | 43 | 1.10 | .95 | 48.81 |
July 31, 2005*** | 61.00 | (.06) | 6.47 | 6.41 | (.35) | — | (.35) | — | 67.06 | 10.52* | 22 | .82* | (.10)* | 34.59* |
CLASS M | ||||||||||||||
January 31, 2007† | $67.73 | 1.68 | 7.00 | 8.68 | (1.38) | (3.76) | (5.14) | —(e) | $71.27 | 12.96* | $731 | .41* | 2.38* | 32.41* |
July 31, 2006 | 67.14 | .37 | 3.64 | 4.01 | (1.05) | (2.37) | (3.42) | —(e) | 67.73 | 6.03 | 604 | .85 | .54 | 48.81 |
July 31, 2005*** | 61.00 | .02 | 6.52 | 6.54 | (.40) | — | (.40) | — | 67.14 | 10.74* | 43 | .64* | .03* | 34.59* |
CLASS R | ||||||||||||||
January 31, 2007† | $67.75 | 1.78 | 6.99 | 8.77 | (1.43) | (3.76) | (5.19) | —(e) | $71.33 | 13.08* | $135 | .28* | 2.50* | 32.41* |
July 31, 2006 | 67.27 | .87 | 3.31 | 4.18 | (1.33) | (2.37) | (3.70) | —(e) | 67.75 | 6.29 | 81 | .60 | 1.28 | 48.81 |
July 31, 2005*** | 61.00 | .39 | 6.28 | 6.67 | (.40) | — | (.40) | — | 67.27 | 10.96* | 1 | .45* | .58* | 34.59* |
CLASS Y | ||||||||||||||
January 31, 2007† | $75.11 | 2.02 | 7.92 | 9.94 | (1.67) | (3.76) | (5.43) | —(e) | $79.62 | 13.38* | $40,242 | .03* | 2.56* | 32.41* |
July 31, 2006 | 73.90 | 1.35 | 3.65 | 5.00 | (1.42) | (2.37) | (3.79) | —(e) | 75.11 | 6.84 | 42,547 | .10 | 1.79 | 48.81 |
July 31, 2005*** | 66.78 | .57 | 6.99 | 7.56 | (.44) | — | (.44) | — | 73.90 | 11.35* | 37,340 | .07* | .81* | 34.59* |
See page 90 for Notes to Financial Highlights.
The accompanying notes are an integral part of these financial statements.
78 | 79 |
Financial highlights (For a common share outstanding throughout the period) (Continued)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||
Net | Total | Ratio of net | ||||||||||||
Net asset | realized and | Total | From | From | Net asset | return | Net | Ratio of | investment | |||||
value, | Net | unrealized | from | net | net realized | value, | at net | assets, | expenses to | income (loss) | Portfolio | |||
beginning | investment | gain (loss) on | investment | investment | gain on | Total | Redemption | end | asset | end of period | average net | to average | turnover | |
Period ended | of period | income (loss)(a)(f) | investments | operations | income | investments | distributions | fees | of period | value (%)(b) | (in thousands) | assets (%)(c)(d) | net assets (%)(d)(f) | (%) |
Putnam RetirementReady 2025 Fund | ||||||||||||||
CLASS A | ||||||||||||||
January 31, 2007† | $72.98 | 1.87 | 7.20 | 9.07 | (1.64) | (4.30) | (5.94) | — | $76.11 | 12.57* | $75,307 | .16* | 2.46* | 33.81* |
July 31, 2006 | 72.26 | 1.27 | 3.15 | 4.42 | (1.36) | (2.34) | (3.70) | —(e) | 72.98 | 6.19 | 61,670 | .35 | 1.74 | 53.14 |
July 31, 2005*** | 65.75 | .52 | 6.39 | 6.91 | (.40) | — | (.40) | —(e) | 72.26 | 10.53* | 48,529 | .26* | .75* | 25.48* |
CLASS B | ||||||||||||||
January 31, 2007† | $70.26 | 1.57 | 6.87 | 8.44 | (1.28) | (4.30) | (5.58) | — | $73.12 | 12.14* | $958 | .53* | 2.14* | 33.81* |
July 31, 2006 | 69.94 | .59 | 3.16 | 3.75 | (1.09) | (2.34) | (3.43) | —(e) | 70.26 | 5.40 | 717 | 1.10 | .84 | 53.14 |
July 31, 2005*** | 64.00 | (.05) | 6.38 | 6.33 | (.39) | — | (.39) | —(e) | 69.94 | 9.91* | 211 | .82* | (.08)* | 25.48* |
CLASS C | ||||||||||||||
January 31, 2007† | $70.43 | 1.59 | 6.87 | 8.46 | (1.21) | (4.30) | (5.51) | — | $73.38 | 12.14* | $142 | .53* | 2.16* | 33.81* |
July 31, 2006 | 70.00 | .53 | 3.22 | 3.75 | (.98) | (2.34) | (3.32) | —(e) | 70.43 | 5.41 | 103 | 1.10 | .74 | 53.14 |
July 31, 2005*** | 64.00 | (.04) | 6.36 | 6.32 | (.32) | — | (.32) | —(e) | 70.00 | 9.89* | 45 | .82* | (.05)* | 25.48* |
CLASS M | ||||||||||||||
January 31, 2007† | $70.55 | 1.58 | 6.99 | 8.57 | (1.30) | (4.30) | (5.60) | — | $73.52 | 12.27* | $304 | .41* | 2.15* | 33.81* |
July 31, 2006 | 70.06 | .84 | 3.09 | 3.93 | (1.10) | (2.34) | (3.44) | —(e) | 70.55 | 5.66 | 264 | .85 | 1.19 | 53.14 |
July 31, 2005*** | 64.00 | .11 | 6.35 | 6.46 | (.40) | — | (.40) | —(e) | 70.06 | 10.12* | 173 | .64* | .17* | 25.48* |
CLASS R | ||||||||||||||
January 31, 2007† | $70.70 | 1.73 | 6.96 | 8.69 | (1.66) | (4.30) | (5.96) | — | $73.43 | 12.43* | $151 | .28* | 2.35* | 33.81* |
July 31, 2006 | 70.21 | .65 | 3.47 | 4.12 | (1.29) | (2.34) | (3.63) | —(e) | 70.70 | 5.93 | 111 | .60 | .97 | 53.14 |
July 31, 2005*** | 64.00 | .42 | 6.17 | 6.59 | (.38) | — | (.38) | —(e) | 70.21 | 10.31* | 1 | .45* | .64* | 25.48* |
CLASS Y | ||||||||||||||
January 31, 2007† | $73.28 | 1.93 | 7.27 | 9.20 | (1.81) | (4.30) | (6.11) | — | $76.37 | 12.70* | $56,119 | .03* | 2.52* | 33.81* |
July 31, 2006 | 72.50 | 1.42 | 3.21 | 4.63 | (1.51) | (2.34) | (3.85) | —(e) | 73.28 | 6.47 | 59,810 | .10 | 1.93 | 53.14 |
July 31, 2005*** | 65.87 | .63 | 6.42 | 7.05 | (.42) | — | (.42) | —(e) | 72.50 | 10.72* | 60,668 | .07* | .90* | 25.48* |
See page 90 for Notes to Financial Highlights.
The accompanying notes are an integral part of these financial statements.
80 | 81 |
Financial highlights (For a common share outstanding throughout the period) (Continued)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||
Net | Total | Ratio of net | ||||||||||||
Net asset | realized and | Total | From | From | Net asset | return | Net | Ratio of | investment | |||||
value, | Net | unrealized | from | net | net realized | value, | at net | assets, | expenses to | income (loss) | Portfolio | |||
beginning | investment | gain (loss) on | investment | investment | gain on | Total | Redemption | end | asset | end of period | average net | to average | turnover | |
Period ended | of period | income (loss)(a)(f) | investments | operations | income | investments | distributions | fees | of period | value (%)(b) | (in thousands) | assets (%)(c)(d) | net assets (%)(d)(f) | (%) |
Putnam RetirementReady 2020 Fund | ||||||||||||||
CLASS A | ||||||||||||||
January 31, 2007† | $66.20 | 1.66 | 5.74 | 7.40 | (1.68) | (3.38) | (5.06) | — | $68.54 | 11.29* | $99,077 | .16* | 2.41* | 32.33* |
July 31, 2006 | 66.06 | 1.28 | 1.90 | 3.18 | (1.33) | (1.71) | (3.04) | —(e) | 66.20 | 4.86 | 81,232 | .35 | 1.93 | 46.91 |
July 31, 2005*** | 60.69 | .54 | 5.16 | 5.70 | (.33) | — | (.33) | — | 66.06 | 9.41* | 53,180 | .26* | .85* | 30.16* |
CLASS B | ||||||||||||||
January 31, 2007† | $64.77 | 1.43 | 5.54 | 6.97 | (1.34) | (3.38) | (4.72) | — | $67.02 | 10.85* | $709 | .53* | 2.13* | 32.33* |
July 31, 2006 | 64.94 | .77 | 1.87 | 2.64 | (1.10) | (1.71) | (2.81) | —(e) | 64.77 | 4.08 | 543 | 1.10 | 1.18 | 46.91 |
July 31, 2005*** | 60.00 | .08 | 5.18 | 5.26 | (.32) | — | (.32) | — | 64.94 | 8.79* | 241 | .82* | .12* | 30.16* |
CLASS C | ||||||||||||||
January 31, 2007† | $64.89 | 1.30 | 5.70 | 7.00 | (1.14) | (3.38) | (4.52) | — | $67.37 | 10.87* | $144 | .53* | 1.92* | 32.33* |
July 31, 2006 | 64.97 | .76 | 1.87 | 2.63 | (1.00) | (1.71) | (2.71) | —(e) | 64.89 | 4.06 | 109 | 1.10 | 1.16 | 46.91 |
July 31, 2005*** | 60.00 | .08 | 5.19 | 5.27 | (.30) | — | (.30) | — | 64.97 | 8.79* | 61 | .82* | .12* | 30.16* |
CLASS M | ||||||||||||||
January 31, 2007† | $64.99 | 1.47 | 5.63 | 7.10 | (1.41) | (3.38) | (4.79) | — | $67.30 | 11.01* | $588 | .41* | 2.17* | 32.33* |
July 31, 2006 | 65.05 | .97 | 1.83 | 2.80 | (1.15) | (1.71) | (2.86) | —(e) | 64.99 | 4.34 | 535 | .85 | 1.49 | 46.91 |
July 31, 2005*** | 60.00 | .19 | 5.20 | 5.39 | (.34) | — | (.34) | — | 65.05 | 9.00* | 276 | .64* | .30* | 30.16* |
CLASS R | ||||||||||||||
January 31, 2007† | $65.08 | 1.59 | 5.60 | 7.19 | (1.58) | (3.38) | (4.96) | — | $67.31 | 11.15* | $146 | .28* | 2.36* | 32.33* |
July 31, 2006 | 65.23 | 1.18 | 1.81 | 2.99 | (1.43) | (1.71) | (3.14) | —(e) | 65.08 | 4.62 | 102 | .60 | 1.81 | 46.91 |
July 31, 2005*** | 60.00 | .44 | 5.10 | 5.54 | (.31) | — | (.31) | — | 65.23 | 9.25* | 1 | .45* | .71* | 30.16* |
CLASS Y | ||||||||||||||
January 31, 2007† | $70.95 | 1.79 | 6.23 | 8.02 | (1.83) | (3.38) | (5.21) | — | $73.76 | 11.41* | $60,055 | .03* | 2.42* | 32.33* |
July 31, 2006 | 70.54 | 1.56 | 2.03 | 3.59 | (1.47) | (1.71) | (3.18) | —(e) | 70.95 | 5.13 | 73,375 | .10 | 2.18 | 46.91 |
July 31, 2005*** | 64.69 | .68 | 5.52 | 6.20 | (.35) | — | (.35) | — | 70.54 | 9.60* | 66,682 | .07* | 1.01* | 30.16* |
See page 90 for Notes to Financial Highlights.
The accompanying notes are an integral part of these financial statements.
82 | 83 |
Financial highlights (For a common share outstanding throughout the period) (Continued)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||
Net | Total | Ratio of net | ||||||||||||
Net asset | realized and | Total | From | From | Net asset | return | Net | Ratio of | investment | |||||
value, | Net | unrealized | from | net | net realized | value, | at net | assets, | expenses to | income (loss) | Portfolio | |||
beginning | investment | gain (loss) on | investment | investment | gain on | Total | Redemption | end | asset | end of period | average net | to average | turnover | |
Period ended | of period | income (loss)(a)(f) | investments | operations | income | investments | distributions | fees | of period | value (%)(b) | (in thousands) | assets (%)(c)(d) | net assets (%)(d)(f) | (%) |
Putnam RetirementReady 2015 Fund | ||||||||||||||
CLASS A | ||||||||||||||
January 31, 2007† | $65.72 | 1.72 | 4.35 | 6.07 | (1.73) | (2.82) | (4.55) | —(e) | $67.24 | 9.31* | $92,500 | .16* | 2.54* | 35.57* |
July 31, 2006 | 67.28 | 1.54 | .93 | 2.47 | (1.60) | (2.43) | (4.03) | —(e) | 65.72 | 3.71 | 66,033 | .35 | 2.31 | 62.70 |
July 31, 2005*** | 62.62 | .66 | 4.28 | 4.94 | (.28) | — | (.28) | — | 67.28 | 7.90* | 56,457 | .26* | 1.01* | 26.37* |
CLASS B | ||||||||||||||
January 31, 2007† | $64.39 | 1.48 | 4.21 | 5.69 | (1.43) | (2.82) | (4.25) | —(e) | $65.83 | 8.90* | $746 | .53* | 2.23* | 35.57* |
July 31, 2006 | 66.27 | .95 | 1.00 | 1.95 | (1.40) | (2.43) | (3.83) | —(e) | 64.39 | 2.95 | 372 | 1.10 | 1.46 | 62.70 |
July 31, 2005*** | 62.00 | .22 | 4.30 | 4.52 | (.25) | — | (.25) | — | 66.27 | 7.30* | 165 | .82* | .35* | 26.37* |
CLASS C | ||||||||||||||
January 31, 2007† | $64.37 | 1.35 | 4.33 | 5.68 | (1.27) | (2.82) | (4.09) | —(e) | $65.96 | 8.89* | $234 | .53* | 2.03* | 35.57* |
July 31, 2006 | 66.25 | 1.01 | .93 | 1.94 | (1.39) | (2.43) | (3.82) | —(e) | 64.37 | 2.93 | 231 | 1.10 | 1.56 | 62.70 |
July 31, 2005*** | 62.00 | .25 | 4.28 | 4.53 | (.28) | — | (.28) | — | 66.25 | 7.32* | 90 | .82* | .38* | 26.37* |
CLASS M | ||||||||||||||
January 31, 2007† | $64.67 | 1.47 | 4.33 | 5.80 | (1.37) | (2.82) | (4.19) | —(e) | $66.28 | 9.04* | $161 | .41* | 2.20* | 35.57* |
July 31, 2006 | 66.38 | 1.24 | .87 | 2.11 | (1.39) | (2.43) | (3.82) | —(e) | 64.67 | 3.19 | 139 | .85 | 1.89 | 62.70 |
July 31, 2005*** | 62.00 | .35 | 4.30 | 4.65 | (.27) | — | (.27) | — | 66.38 | 7.52* | 142 | .64* | .54* | 26.37* |
CLASS R | ||||||||||||||
January 31, 2007† | $64.74 | 1.72 | 4.17 | 5.89 | (1.58) | (2.82) | (4.40) | —(e) | $66.23 | 9.17* | $18 | .28* | 2.60* | 35.57* |
July 31, 2006 | 66.54 | 1.82 | .50 | 2.32 | (1.69) | (2.43) | (4.12) | —(e) | 64.74 | 3.51 | 4 | .60 | 2.82 | 62.70 |
July 31, 2005*** | 62.00 | .55 | 4.25 | 4.80 | (.26) | — | (.26) | — | 66.54 | 7.75* | 1 | .45* | .84* | 26.37* |
CLASS Y | ||||||||||||||
January 31, 2007† | $65.95 | 1.70 | 4.48 | 6.18 | (1.86) | (2.82) | (4.68) | —(e) | $67.45 | 9.45* | $55,081 | .03* | 2.48* | 35.57* |
July 31, 2006 | 67.48 | 1.67 | .98 | 2.65 | (1.75) | (2.43) | (4.18) | —(e) | 65.95 | 3.97 | 63,487 | .10 | 2.49 | 62.70 |
July 31, 2005*** | 62.71 | .77 | 4.30 | 5.07 | (.30) | — | (.30) | — | 67.48 | 8.10* | 84,103 | .07* | 1.18* | 26.37* |
See page 90 for Notes to Financial Highlights.
The accompanying notes are an integral part of these financial statements.
84 | 85 |
Financial highlights (For a common share outstanding throughout the period) (Continued)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||
Net | Total | Ratio of net | ||||||||||||
Net asset | realized and | Total | From | From | Net asset | return | Net | Ratio of | investment | |||||
value, | Net | unrealized | from | net | net realized | value, | at net | assets, | expenses to | income (loss) | Portfolio | |||
beginning | investment | gain (loss) on | investment | investment | gain on | Total | Redemption | end | asset | end of period | average net | to average | turnover | |
Period ended | of period | income (loss)(a)(f) | investments | operations | income | investments | distributions | fees | of period | value (%)(b) | (in thousands) | assets (%)(c)(d) | net assets (%)(d)(f) | (%) |
Putnam RetirementReady 2010 Fund | ||||||||||||||
CLASS A | ||||||||||||||
January 31, 2007† | $58.69 | 1.36 | 2.60 | 3.96 | (2.08) | (2.08) | (4.16) | — | $58.49 | 6.80* | $44,415 | .15* | 2.27* | 29.02* |
July 31, 2006 | 59.72 | 1.68 | (.17) | 1.51 | (1.52) | (1.02) | (2.54) | —(e) | 58.69 | 2.54 | 44,579 | .34 | 2.84 | 61.79 |
July 31, 2005*** | 56.79 | .73 | 2.42 | 3.15 | (.22) | — | (.22) | — | 59.72 | 5.55* | 39,291 | .26* | 1.26* | 33.53* |
CLASS B | ||||||||||||||
January 31, 2007† | $57.57 | 1.12 | 2.53 | 3.65 | (1.79) | (2.08) | (3.87) | — | $57.35 | 6.38* | $311 | .53* | 1.92* | 29.02* |
July 31, 2006 | 58.59 | 1.20 | (.15) | 1.05 | (1.05) | (1.02) | (2.07) | —(e) | 57.57 | 1.78 | 228 | 1.09 | 2.08 | 61.79 |
July 31, 2005*** | 56.00 | .37 | 2.42 | 2.79 | (.20) | — | (.20) | — | 58.59 | 4.98* | 84 | .82* | .65* | 33.53* |
CLASS C | ||||||||||||||
January 31, 2007† | $57.30 | 1.08 | 2.56 | 3.64 | (1.67) | (2.08) | (3.75) | — | $57.19 | 6.39* | $63 | .53* | 1.86* | 29.02* |
July 31, 2006 | 58.62 | 1.23 | (.18) | 1.05 | (1.35) | (1.02) | (2.37) | —(e) | 57.30 | 1.78 | 36 | 1.09 | 2.12 | 61.79 |
July 31, 2005*** | 56.00 | .41 | 2.38 | 2.79 | (.17) | — | (.17) | — | 58.62 | 4.98* | 15 | .82* | .71* | 33.53* |
CLASS M | ||||||||||||||
January 31, 2007† | $57.46 | 1.18 | 2.54 | 3.72 | (1.81) | (2.08) | (3.89) | — | $57.29 | 6.51* | $139 | .40* | 2.01* | 29.02* |
July 31, 2006 | 58.73 | 1.38 | (.18) | 1.20 | (1.45) | (1.02) | (2.47) | —(e) | 57.46 | 2.03 | 124 | .84 | 2.39 | 61.79 |
July 31, 2005*** | 56.00 | .56 | 2.34 | 2.90 | (.17) | — | (.17) | — | 58.73 | 5.19* | 55 | .64* | .97* | 33.53* |
CLASS R | ||||||||||||||
January 31, 2007† | $57.56 | 1.22 | 2.59 | 3.81 | (1.92) | (2.08) | (4.00) | — | $57.37 | 6.66* | $146 | .28* | 2.08* | 29.02* |
July 31, 2006 | 58.83 | 1.60 | (.25) | 1.35 | (1.60) | (1.02) | (2.62) | —(e) | 57.56 | 2.30 | 80 | .59 | 2.80 | 61.79 |
July 31, 2005*** | 56.00 | .59 | 2.43 | 3.02 | (.19) | — | (.19) | — | 58.83 | 5.41* | 1 | .45* | 1.06* | 33.53* |
CLASS Y | ||||||||||||||
January 31, 2007† | $61.41 | 1.46 | 2.77 | 4.23 | (2.23) | (2.08) | (4.31) | — | $61.33 | 6.93* | $31,387 | .02* | 2.31* | 29.02* |
July 31, 2006 | 62.35 | 1.90 | (.17) | 1.73 | (1.65) | (1.02) | (2.67) | —(e) | 61.41 | 2.79 | 41,478 | .09 | 3.07 | 61.79 |
July 31, 2005*** | 59.18 | .86 | 2.54 | 3.40 | (.23) | — | (.23) | — | 62.35 | 5.76* | 44,492 | .07* | 1.42* | 33.53* |
See page 90 for Notes to Financial Highlights.
The accompanying notes are an integral part of these financial statements.
86 | 87 |
Financial highlights (For a common share outstanding throughout the period) (Continued)
INVESTMENT OPERATIONS: | LESS DISTRIBUTIONS: | RATIOS AND SUPPLEMENTAL DATA: | ||||||||||||
Net | Total | Ratio of net | ||||||||||||
Net asset | realized and | Total | From | From | Net asset | return | Net | Ratio of | investment | |||||
value, | Net | unrealized | from | net | net realized | value, | at net | assets, | expenses to | income (loss) | Portfolio | |||
beginning | investment | gain (loss) on | investment | investment | gain on | Total | Redemption | end | asset | end of period | average net | to average | turnover | |
Period ended | of period | income (loss)(a)(f) | investments | operations | income | investments | distributions | fees | of period | value (%)(b) | (in thousands) | assets (%)(c)(d) | net assets (%)(d)(f) | (%) |
Putnam RetirementReady Maturity Fund | ||||||||||||||
CLASS A | ||||||||||||||
January 31, 2007† | $55.97 | 1.37 | 2.05 | 3.42 | (1.16) | (.82) | (1.98) | — | $57.41 | 6.16* | $31,529 | .16* | 2.39* | 32.65* |
July 31, 2006 | 57.51 | 1.74 | (.70) | 1.04 | (1.83) | (.75) | (2.58) | —(e) | 55.97 | 1.82 | 31,206 | .35 | 3.07 | 61.89 |
July 31, 2005*** | 55.96 | .80 | 1.50 | 2.30 | (.75) | — | (.75) | — | 57.51 | 4.15* | 25,732 | .26* | 1.41* | 41.89* |
CLASS B | ||||||||||||||
January 31, 2007† | $56.01 | 1.13 | 2.08 | 3.21 | (.95) | (.82) | (1.77) | — | $57.45 | 5.76* | $156 | .54* | 1.98* | 32.65* |
July 31, 2006 | 57.54 | 1.31 | (.70) | .61 | (1.39) | (.75) | (2.14) | —(e) | 56.01 | 1.06 | 138 | 1.10 | 2.31 | 61.89 |
July 31, 2005*** | 56.00 | .47 | 1.51 | 1.98 | (.44) | — | (.44) | — | 57.54 | 3.55* | 124 | .82* | .83* | 41.89* |
CLASS C | ||||||||||||||
January 31, 2007† | $56.04 | 1.22 | 1.99 | 3.21 | (.96) | (.82) | (1.78) | — | $57.47 | 5.77* | $27 | .54* | 2.15* | 32.65* |
July 31, 2006 | 57.56 | 1.36 | (.73) | .63 | (1.40) | (.75) | (2.15) | —(e) | 56.04 | 1.09 | 1 | 1.10 | 2.31 | 61.89 |
July 31, 2005*** | 56.00 | .46 | 1.54 | 2.00 | (.44) | — | (.44) | — | 57.56 | 3.59* | 1 | .82* | .81* | 41.89* |
CLASS M | ||||||||||||||
January 31, 2007† | $55.99 | 1.21 | 2.07 | 3.28 | (1.02) | (.82) | (1.84) | — | $57.43 | 5.90* | $93 | .42* | 2.11* | 32.65* |
July 31, 2006 | 57.54 | 1.57 | (.81) | .76 | (1.56) | (.75) | (2.31) | —(e) | 55.99 | 1.33 | 75 | .85 | 2.86 | 61.89 |
July 31, 2005*** | 56.00 | .61 | 1.49 | 2.10 | (.56) | — | (.56) | — | 57.54 | 3.76* | 2 | .64* | 1.07* | 41.89* |
CLASS R | ||||||||||||||
January 31, 2007† | $55.99 | 1.36 | 1.99 | 3.35 | (1.09) | (.82) | (1.91) | — | $57.43 | 6.02* | $71 | .29* | 2.39* | 32.65* |
July 31, 2006 | 57.56 | 1.62 | (.73) | .89 | (1.71) | (.75) | (2.46) | —(e) | 55.99 | 1.56 | 48 | .60 | 2.97 | 61.89 |
July 31, 2005*** | 56.00 | .67 | 1.54 | 2.21 | (.65) | — | (.65) | — | 57.56 | 3.97* | 1 | .45* | 1.19* | 41.89* |
CLASS Y | ||||||||||||||
January 31, 2007† | $56.11 | 1.39 | 2.11 | 3.50 | (1.23) | (.82) | (2.05) | — | $57.56 | 6.30* | $9,780 | .04* | 2.42* | 32.65* |
July 31, 2006 | 57.65 | 1.86 | (.68) | 1.18 | (1.97) | (.75) | (2.72) | —(e) | 56.11 | 2.07 | 13,756 | .10 | 3.26 | 61.89 |
July 31, 2005*** | 56.08 | .89 | 1.53 | 2.42 | (.85) | — | (.85) | — | 57.65 | 4.34* | 21,787 | .07* | 1.56* | 41.89* |
See page 90 for Notes to Financial Highlights.
The accompanying notes are an integral part of these financial statements.
88 | 89 |
Financial highlights (Continued)
† Unaudited.
* Not annualized.
** For the period May 2, 2005 (commencement of operations) to July 31, 2005.
*** For the period November 1, 2004 (commencement of operations) to July 31, 2005.
(a) Per share net investment income (loss) has been determined on the basis of the weighted average number of shares outstanding during the period.
(b) Total return does not reflect the effect of sales charges.
(c) Expense ratios do not include expenses of the underlying funds.
(d) Reflects an involuntary contractual expense limitation in effect during the period. As a result of such limitation the expenses for the following periods reflect a reduction of the following based on each funds’ average net assets.
1/31/07 | 7/31/06 | 7/31/05 | |
Putnam RetirementReady 2050 Fund | 0.03% | 3.23% | 12.75% |
Putnam RetirementReady 2045 Fund | 0.01 | 0.10 | 0.57 |
Putnam RetirementReady 2040 Fund | 0.01 | 0.08 | 0.40 |
Putnam RetirementReady 2035 Fund | 0.01 | 0.04 | 0.20 |
Putnam RetirementReady 2030 Fund | 0.01 | 0.02 | 0.13 |
Putnam RetirementReady 2025 Fund | 0.01 | 0.01 | 0.08 |
Putnam RetirementReady 2020 Fund | 0.01 | <0.01 | 0.07 |
Putnam RetirementReady 2015 Fund | 0.01 | <0.01 | 0.06 |
Putnam RetirementReady 2010 Fund | 0.02 | 0.01 | 0.09 |
Putnam RetirementReady Maturity Fund | — | 0.05 | 0.28 |
(e) Amount represents less than $0.01 per share.
(f) The net investment income ratios and per share amounts shown for the period ending July 31, 2006 may not correspond with the expected class specific differences for the period due to the timing of sales and repurchases of fund shares in relation to when distributions from the underlying Putnam funds were received.
(1) For the period December 22, 2005 to July 31, 2006.
(2) For the period August 1, 2005 to December 19, 2005. All class R shares for Fund 2045 and Fund 2040 were liquidated on December 19, 2005.
The accompanying notes are an integral part of these financial statements.
90
Notes to financial statements 1/31/07 (Unaudited)
Note 1: Significant accounting policies
Each of Putnam RetirementReady Funds: Putnam RetirementReady 2050 Fund, Putnam Retirement-Ready 2045 Fund, Putnam RetirementReady 2040 Fund, Putnam RetirementReady 2035 Fund, Putnam RetirementReady 2030 Fund, Putnam Retirement-Ready 2025 Fund, Putnam RetirementReady 2020 Fund, Putnam RetirementReady 2015 Fund, Putnam RetirementReady 2010 Fund and Putnam RetirementReady Maturity Fund, (collectively the “funds”) is a series of Putnam RetirementReady Funds, a Massachusetts business trust organized on June 8, 2004 (the “Trust”). Each fund is a diversified open-end investment company under the Investment Company Act of 1940, as amended, each of which is represented by a series of shares of beneficial interest. Each fund, except the Maturity Fund, seeks capital appreciation and current income consistent with a decreasing emphasis on capital appreciation and an increasing emphasis on current income as it approaches its targe t date. The Maturity Fund seeks as high a rate of current income as Putnam Investment Management, LLC (“Putnam Management”) believes is consistent with preservation of capital.
Currently there are ten separate funds, of which nine have a target date specified by the calendar year in the name of each fund. The target dates are in five-year increments beginning with the year 2010. The tenth fund is named Putnam RetirementReady Maturity Fund. As the other funds reach their target date, they will merge with the Maturity Fund.
These financial statements report on each fund which may invest in the following Putnam Funds: Putnam Income Fund, Putnam Capital Opportunities Fund, The Putnam Fund for Growth and Income, Putnam Money Market Fund, Putnam International Equity Fund and Putnam Voyager Fund (the “underlying Putnam Funds”), which are managed by Putnam Management. The financial statements of the underlying Putnam Funds contain additional information about the expenses and investments of the underlying Putnam Funds and are available upon request.
Each fund offers class A, class B, class C, class M, class R and class Y shares. Class A and class M shares are sold with a maximum front-end sales charge of 5.25% and 3.25%, respectively, and generally do not pay a contingent deferred sales charge. Class B shares, which convert to class A shares after approximately eight years, do not pay a front-end sales charge and are subject to a contingent deferred sales charge, if those shares are redeemed within six years of purchase. Class C shares have a one-year 1.00% contingent deferred sales charge and do not convert to class A shares. Class R shares, which are offered to qualified employee benefit plans, are sold without a front-end sales charge or a contingent deferred sales charge. The expenses for class A, class B, class C, class M and class R shares may differ based on the distribution fee of each class, which is identified in Note 2. Class Y shares, which are sold at net asset value, a re generally subject to the same expenses as class A, class B, class C, class M and class R shares, but do not bear a distribution fee. Class Y shares are sold to certain eligible purchasers including certain defined contribution plans (including corporate IRAs), bank trust departments and trust companies.
Effective October 2, 2006, a 1.00% redemption fee may apply on any shares purchased on or after such date that are redeemed (either by selling or exchanging into another fund) within 7 days of purchase. The redemption fee is accounted for as an addition to paid-in-capital. Prior to October 2, 2006, a 2.00% redemption fee applied to any shares that were redeemed (either by selling or exchanging into another fund) within 5 days of purchase.
Investment income, realized and unrealized gains and losses and expenses of each fund are borne pro-rata based on the relative net assets of each class to the total net assets of each fund, except that each class bears expenses unique to that class (including the distribution fees applicable to such classes). Each class votes as a class only with respect to its own distribution plan or other matters on which a class vote is required by law
91
or determined by the Trustees. Shares of each class would receive their pro-rata share of the net assets of the fund, if that fund were liquidated. In addition, the Trustees declare separate dividends on each class of shares.
In the normal course of business, each fund enters into contracts that may include agreements to indemnify another party under given circumstances. Each fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against each fund. However, each fund expects the risk of material loss to be remote.
The following is a summary of significant accounting policies consistently followed by the funds in the preparation of their financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
A) Security valuationThe price of each fund’s shares is based on its net asset value (NAV), which is in turn based on the NAV’s of the underlying Putnam Funds in which it invests. The NAV per share of each class equals the total value of its assets, less its liabilities, divided by the number of its outstanding shares. Shares are only valued as of the close of regular trading on the New York Stock Exchange each day the exchange is open. Each underlying Putnam Fund values its investments for which market quotations are readily available at the last reported sales price on their principal exchange, or official closing price for certain markets. If no sales are reported — as in the case of some securities traded over-the-counter — a security is valued at its last reported bid price. Many securities markets and exchanges outside the U.S. close prior to the c lose of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, each underlying Putnam Fund will fair value foreign equity securities taking into account multiple factors, including movements in the U.S. securities markets. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by each underlying Putnam fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. Other investments, including certain restricted securities, are valued at fair value following procedures approved by the Trustees. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that each underlying Putnam fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and does not reflect an actual market price, which may be different by a material amount.
B) Security transactions and related investment income Security transactions, which consist of shares of the underlying Putnam Funds, are recorded on the trade date (date the order to buy or sell is executed). Gains or losses from the sale of the underlying Putnam Funds are determined on the identified cost basis. Income and capital gain distributions from the underlying Putnam funds are recorded on the ex-dividend date.
C) Federal taxes It is the policy of each fund to distribute all of its taxable income within the prescribed time and otherwise comply with the provisions of the Internal Revenue Code of 1986 (the “Code”) applicable to regulated investment companies. It is also the intention of each fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code, as amended. Therefore, no provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains.
92
The federal tax costs as of period end were as follows:
Cost for | ||||
Net | Federal | |||
Unrealized | Unrealized | Unrealized | Income Tax | |
Appreciation | (Depreciation) | Appreciation | Purposes | |
RetirementReady | ||||
2050 Fund | $ 307,467 | $ (69,085) | $ 238,382 | $ 9,314,394 |
2045 Fund | 1,562,528 | (208,923) | 1,353,605 | 34,377,308 |
2040 Fund | 2,139,409 | (189,628) | 1,949,781 | 43,329,868 |
2035 Fund | 3,533,900 | (259,584) | 3,274,316 | 66,850,809 |
2030 Fund | 4,914,766 | (384,542) | 4,530,224 | 96,353,970 |
2025 Fund | 6,573,619 | (509,000) | 6,064,619 | 126,959,122 |
2020 Fund | 6,117,467 | (508,709) | 5,608,758 | 155,163,059 |
2015 Fund | 3,604,538 | (575,888) | 3,028,650 | 145,761,537 |
2010 Fund | 793,925 | (211,280) | 582,645 | 75,902,969 |
Maturity Fund | 286,178 | (189,558) | 96,620 | 41,575,957 |
D) Distributions to shareholders Each fund normally distributes any net investment income and any realized capital gains, annually, except the Maturity Fund, which normally distributes any net investment income monthly and any net realized capital gains annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of each funds’ fiscal year. Reclassifications are made to each funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.
E) Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund.
Note 2: Management fee, administrative services and other transactions
Putnam Management is paid for management and investment advisory services monthly at an annual rate of 0.05% based on the average net assets of each fund.
Putnam Management has agreed to waive fees and reimburse expenses of each fund through June 30, 2009, to the extent necessary to ensure that each fund’s expenses (exclusive of the underlying Putnam fund expenses) do not exceed the simple average of the expenses of all front-end load funds viewed by Lipper Inc. as having the same investment classification or objective as the funds. The expense reimbursement is based on a comparison of each funds’ expenses with the average annualized operating expenses of the funds in its Lipper peer group for each calendar quarter during the last fiscal year, excluding 12b-1 fees and without giving effect to any expense offset and brokerage service arrangements that may reduce fund expenses.
Putnam Management has agreed to limit its compensation (and, to the extent necessary, bear other expenses) through July 31, 2007, to the extent that expenses of each fund (exclusive of brokerage commissions, interest, taxes extraordinary expenses, fees and expenses of the underlying funds in which each fund invests, and payments under the fund’s distribution plan)
93
would exceed an annual rate of 0.10% of each fund’s average net assets.
For the period ended January 31, 2007, each fund’s expenses were limited to the lower of the limits specified above and accordingly, Putnam Management waived the following of its management fee from each fund:
Fees waived and reimbursed | |
by the Manager | |
RetirementReady | |
2050 Fund | $ 1,675�� |
2045 Fund | 2,496 |
2040 Fund | 3,420 |
2035 Fund | 5,264 |
2030 Fund | 9,617 |
2025 Fund | 12,344 |
2020 Fund | 13,670 |
2015 Fund | 12,260 |
2010 Fund | 13,381 |
Maturity Fund | — |
Each fund has adopted distribution plans (the “Plans”) with respect to its class A, class B, class C, class M and class R shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Retail Management, a wholly-owned subsidiary of Putnam, LLC and Putnam Retail Management GP, Inc., for services provided and expenses incurred in distributing shares of the funds. The Plans provide for payments by each fund to Putnam Retail Management at an annual rate of up to 0.35%, 1.00%, 1.00%, 1.00% and 1.00% of the average net assets attributable to class A, class B, class C, class M and class R shares, respectively. The Trustees have approved payment by the funds’ at an annual rate of 0.25%, 1.00%, 1.00%, 0.75% and 0.50% of the average net assets attributable to class A, class B, class C, class M, and class R shar es, respectively.
For the period ended January 31, 2007, Putnam Retail Management, acting as underwriter, received net commissions from the sale of class A and class M shares, and received contingent deferred sales charges (CDSC) from redemptions of class B and class C shares, in the following amounts:
Class A | Class M | |||
Net | Net | Class B | Class C | |
Commissions | Commissions | CDSC | CDSC | |
RetirementReady | ||||
2050 Fund | $1,248 | $ — | $ — | $ — |
2045 Fund | 323 | — | 193 | — |
2040 Fund | 403 | — | 107 | — |
2035 Fund | 568 | 9 | 515 | — |
2030 Fund | 1,315 | 9 | 104 | 66 |
2025 Fund | 1,790 | 151 | — | — |
2020 Fund | 876 | 442 | — | — |
2015 Fund | 1,638 | 136 | 383 | — |
2010 Fund | 154 | 6 | — | — |
Maturity Fund | 7 | — | — | — |
Total | $8,322 | $753 | $1,302 | $66 |
A deferred sales charge of up to 1.00% and 0.65% is assessed on certain redemptions of class A and class M shares, respectively. For the period ended January 31, 2007, Putnam Retail Management, acting as underwriter, received no monies on class A and class M redemptions, respectively.
Note 3: Purchases and sales of securities
During the period ended January 31, 2007, cost of purchases and proceeds from sales of underlying Putnam Funds were as follows:
94
Purchase cost | Sale proceeds | |
RetirementReady | ||
2050 Fund | $ 7,817,990 | $ 2,610,573 |
2045 Fund | 17,671,514 | 9,527,520 |
2040 Fund | 19,916,769 | 11,835,641 |
2035 Fund | 26,674,529 | 19,178,419 |
2030 Fund | 36,347,630 | 31,052,088 |
2025 Fund | 46,253,938 | 43,434,323 |
2020 Fund | 50,993,131 | 54,373,782 |
2015 Fund | 63,613,522 | 50,790,776 |
2010 Fund | 23,933,935 | 36,456,559 |
Maturity Fund | 14,765,804 | 19,367,996 |
Note 4: Capital shares
At January 31, 2007, there was an unlimited number of shares of beneficial interest authorized. Transactions in capital shares were as follows:
RetirementReady 2050 Fund | ||||
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS A | Shares | Amount | Shares | Amount |
Shares sold | 85,902 | $ 5,201,254 | 64,652 | $ 3,672,572 |
Shares issued in connection with | ||||
reinvestment of distributions | 3,118 | 191,927 | 477 | 26,522 |
89,020 | 5,393,181 | 65,129 | 3,699,094 | |
Shares repurchased | (26,164) | (1,594,654) | (19,621) | (1,130,209) |
Net increase | 62,856 | $ 3,798,527 | 45,508 | $ 2,568,885 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS B | Shares | Amount | Shares | Amount |
Shares sold | 1,253 | $74,694 | 393 | $ 21,983 |
Shares issued in connection with | ||||
reinvestment of distributions | 44 | 2,685 | 17 | 919 |
1,297 | 77,379 | 410 | 22,902 | |
Shares repurchased | (149) | (8,686) | (191) | (10,895) |
Net increase | 1,148 | $68,693 | 219 | $ 12,007 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS C | Shares | Amount | Shares | Amount |
Shares sold | — | $ — | — | $ — |
Shares issued in connection with | ||||
reinvestment of distributions | —* | 30 | 2 | 112 |
— | 30 | 2 | 112 | |
Shares repurchased | — | — | (59) | (3,350) |
Net increase (decrease) | — | $30 | (57) | $(3,238) |
95
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS M | Shares | Amount | Shares | Amount |
Shares sold | 12 | $ 773 | — | $ — |
Shares issued in connection with | ||||
reinvestment of distributions | 2 | 104 | 2 | 90 |
14 | 877 | 2 | 90 | |
Shares repurchased | (35) | (2,146) | (6) | (364) |
Net decrease | (21) | $(1,269) | (4) | $(274) |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS R | Shares | Amount | Shares | Amount |
Shares sold | 224 | $13,615 | 148 | $8,716 |
Shares issued in connection with | ||||
reinvestment of distributions | 10 | 622 | 1 | 32 |
234 | 14,237 | 149 | 8,748 | |
Shares repurchased | (4) | (254) | —* | (16) |
Net increase | 230 | $13,983 | 149 | $8,732 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS Y | Shares | Amount | Shares | Amount |
Shares sold | 27,153 | $1,665,409 | 23,536 | $1,333,220 |
Shares issued in connection with | ||||
reinvestment of distributions | 930 | 57,390 | 155 | 8,600 |
28,083 | 1,722,799 | 23,691 | 1,341,820 | |
Shares repurchased | (10,462) | (635,121) | (7,646) | (428,012) |
Net increase | 17,621 | $1,087,678 | 16,045 | $ 913,808 |
RetirementReady 2045 Fund | ||||
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS A | Shares | Amount | Shares | Amount |
Shares sold | 105,209 | $ 8,114,500 | 163,725 | $11,892,306 |
Shares issued in connection with | ||||
reinvestment of distributions | 15,844 | 1,215,221 | 7,269 | 516,875 |
121,053 | 9,329,721 | 170,994 | 12,409,181 | |
Shares repurchased | (48,206) | (3,721,195) | (77,294) | (5,594,554) |
Net increase | 72,847 | $ 5,608,526 | 93,700 | $ 6,814,627 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS B | Shares | Amount | Shares | Amount |
Shares sold | 703 | $ 50,136 | 1,099 | $ 77,943 |
Shares issued in connection with | ||||
reinvestment of distributions | 88 | 6,568 | 12 | 821 |
791 | 56,704 | 1,111 | 78,764 | |
Shares repurchased | (321) | (23,250) | (202) | (13,982) |
Net increase | 470 | $ 33,454 | 909 | $ 64,782 |
96
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS C | Shares | Amount | Shares | Amount |
Shares sold | 15 | $1,149 | 4 | $ 350 |
Shares issued in connection with | ||||
reinvestment of distributions | 9 | 602 | 6 | 392 |
24 | 1,751 | 10 | 742 | |
Shares repurchased | (1) | (40) | (16) | (1,178) |
Net increase (decrease) | 23 | $1,711 | (6) | $ (436) |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS M | Shares | Amount | Shares | Amount |
Shares sold | 70 | $ 5,467 | 2 | $ 100 |
Shares issued in connection with | ||||
reinvestment of distributions | 5 | 361 | 5 | 358 |
75 | 5,828 | 7 | 458 | |
Shares repurchased | (109) | (8,499) | (22) | (1,562) |
Net decrease | (34) | $(2,671) | (15) | $(1,104) |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS R | Shares | Amount | Shares | Amount |
Shares sold | 722 | $57,833 | 421 | $ 29,866 |
Shares issued in connection with | ||||
reinvestment of distributions | 54 | 4,223 | — | — |
776 | 62,056 | 421 | 29,866 | |
Shares repurchased | (23) | (1,794) | (184) | (13,288) |
Net increase | 753 | $60,262 | 237 | $ 16,578 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS Y | Shares | Amount | Shares | Amount |
Shares sold | 56,135 | $ 4,765,319 | 71,420 | $ 5,689,901 |
Shares issued in connection with | ||||
reinvestment of distributions | 8,346 | 702,234 | 4,706 | 364,939 |
64,481 | 5,467,553 | 76,126 | 6,054,840 | |
Shares repurchased | (39,925) | (3,336,145) | (47,764) | (3,763,088) |
Net increase | 24,556 | $ 2,131,408 | 28,362 | $ 2,291,752 |
RetirementReady 2040 Fund | ||||
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS A | Shares | Amount | Shares | Amount |
Shares sold | 114,367 | $ 8,704,180 | 213,210 | $15,454,374 |
Shares issued in connection with | ||||
reinvestment of distributions | 23,105 | 1,754,063 | 10,838 | 768,863 |
137,472 | 10,458,243 | 224,048 | 16,223,237 | |
Shares repurchased | (53,347) | (4,086,377) | (94,047) | (6,795,750) |
Net increase | 84,125 | $ 6,371,866 | 130,001 | $ 9,427,487 |
97
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS B | Shares | Amount | Shares | Amount |
Shares sold | 1,141 | $ 86,155 | 1,392 | $ 99,628 |
Shares issued in connection with | ||||
reinvestment of distributions | 144 | 10,534 | 31 | 2,108 |
1,285 | 96,689 | 1,423 | 101,736 | |
Shares repurchased | (248) | (18,169) | (145) | (10,278) |
Net increase | 1,037 | $ 78,520 | 1,278 | $ 91,458 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS C | Shares | Amount | Shares | Amount |
Shares sold | 16 | $1,185 | 10 | $742 |
Shares issued in connection with | ||||
reinvestment of distributions | 3 | 186 | 1 | 53 |
19 | 1,371 | 11 | 795 | |
Shares repurchased | (1) | (40) | — | — |
Net increase | 18 | $1,331 | 11 | $795 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS M | Shares | Amount | Shares | Amount |
Shares sold | 186 | $13,795 | 286 | $20,827 |
Shares issued in connection with | ||||
reinvestment of distributions | 25 | 1,893 | 8 | 554 |
211 | 15,688 | 294 | 21,381 | |
Shares repurchased | (2) | (134) | (133) | (9,256) |
Net increase | 209 | $15,554 | 161 | $12,125 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS R | Shares | Amount | Shares | Amount |
Shares sold | 513 | $40,267 | 753 | $55,814 |
Shares issued in connection with | ||||
reinvestment of distributions | 59 | 4,585 | — | — |
572 | 44,852 | 753 | 55,814 | |
Shares repurchased | (25) | (1,981) | (147) | (10,631) |
Net increase | 547 | $42,871 | 606 | $45,183 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS Y | Shares | Amount | Shares | Amount |
Shares sold | 54,098 | $ 4,506,578 | 93,045 | $ 7,301,334 |
Shares issued in connection with | ||||
reinvestment of distributions | 10,490 | 870,596 | 5,791 | 446,361 |
64,588 | 5,377,174 | 98,836 | 7,747,695 | |
Shares repurchased | (48,381) | (3,995,825) | (56,087) | (4,388,421) |
Net increase | 16,207 | $ 1,381,349 | 42,749 | $ 3,359,274 |
98
RetirementReady 2035 Fund | ||||
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS A | Shares | Amount | Shares | Amount |
Shares sold | 141,563 | $10,489,661 | 275,372 | $ 19,451,653 |
Shares issued in connection with | ||||
reinvestment of distributions | 37,192 | 2,722,507 | 18,656 | 1,293,241 |
178,755 | 13,212,168 | 294,028 | 20,744,894 | |
Shares repurchased | (63,171) | (4,676,222) | (152,080) | (10,727,902) |
Net increase | 115,584 | $ 8,535,946 | 141,948 | $ 10,016,992 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS B | Shares | Amount | Shares | Amount |
Shares sold | 1,366 | $ 99,936 | 4,100 | $280,021 |
Shares issued in connection with | ||||
reinvestment of distributions | 367 | 25,891 | 127 | 8,449 |
1,733 | 125,827 | 4,227 | 288,470 | |
Shares repurchased | (463) | (33,126) | (669) | (46,052) |
Net increase | 1,270 | $ 92,701 | 3,558 | $242,418 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS C | Shares | Amount | Shares | Amount |
Shares sold | 576 | $41,670 | 87 | $6,076 |
Shares issued in connection with | ||||
reinvestment of distributions | 49 | 3,506 | 1 | 55 |
625 | 45,176 | 88 | 6,131 | |
Shares repurchased | —* | (35) | — | — |
Net increase | 625 | $45,141 | 88 | $6,131 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS M | Shares | Amount | Shares | Amount |
Shares sold | 156 | $11,187 | 271 | $18,607 |
Shares issued in connection with | ||||
reinvestment of distributions | 44 | 3,158 | 18 | 1,218 |
200 | 14,345 | 289 | 19,825 | |
Shares repurchased | —* | (20) | (47) | (3,357) |
Net increase | 200 | $14,325 | 242 | $16,468 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS R | Shares | Amount | Shares | Amount |
Shares sold | 1,394 | $103,043 | 892 | $ 60,919 |
Shares issued in connection with | ||||
reinvestment of distributions | 79 | 5,648 | —* | 6 |
1,473 | 108,691 | 892 | 60,925 | |
Shares repurchased | (34) | (2,486) | (541) | (36,845) |
Net increase | 1,439 | $106,205 | 351 | $ 24,080 |
99
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS Y | Shares | Amount | Shares | Amount |
Shares sold | 66,952 | $ 5,425,032 | 167,410 | $12,826,136 |
Shares issued in connection with | ||||
reinvestment of distributions | 22,233 | 1,783,015 | 13,824 | 1,043,003 |
89,185 | 7,208,047 | 181,234 | 13,869,139 | |
Shares repurchased | (102,137) | (8,187,513) | (108,649) | (8,348,643) |
Net increase (decrease) | (12,952) | $ (979,466) | 72,585 | $ 5,520,496 |
RetirementReady 2030 Fund | ||||
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS A | Shares | Amount | Shares | Amount |
Shares sold | 174,244 | $12,711,997 | 370,745 | $ 25,892,322 |
Shares issued in connection with | ||||
reinvestment of distributions | 54,526 | 3,923,114 | 26,897 | 1,841,348 |
228,770 | 16,635,111 | 397,642 | 27,733,670 | |
Shares repurchased | (86,229) | (6,293,010) | (209,795) | (14,637,787) |
Net increase | 142,541 | $10,342,101 | 187,847 | $ 13,095,883 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS B | Shares | Amount | Shares | Amount |
Shares sold | 3,392 | $239,356 | 2,296 | $156,819 |
Shares issued in connection with | ||||
reinvestment of distributions | 464 | 32,513 | 206 | 13,804 |
3,856 | 271,869 | 2,502 | 170,623 | |
Shares repurchased | (279) | (19,660) | (1,396) | (95,815) |
Net increase | 3,577 | $252,209 | 1,106 | $ 74,808 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS C | Shares | Amount | Shares | Amount |
Shares sold | 461 | $ 31,906 | 944 | $ 63,856 |
Shares issued in connection with | ||||
reinvestment of distributions | 24 | 1,702 | 31 | 2,019 |
485 | 33,608 | 975 | 65,875 | |
Shares repurchased | (563) | (39,919) | (669) | (46,052) |
Net increase (decrease) | (78) | $ (6,311) | 306 | $ 19,823 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS M | Shares | Amount | Shares | Amount |
Shares sold | 2,325 | $ 171,624 | 9,524 | $672,494 |
Shares issued in connection with | ||||
reinvestment of distributions | 813 | 56,962 | 38 | 2,534 |
3,138 | 228,586 | 9,562 | 675,028 | |
Shares repurchased | (1,800) | (127,504) | (1,285) | (90,490) |
Net increase | 1,338 | $ 101,082 | 8,277 | $584,538 |
100
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS R | Shares | Amount | Shares | Amount |
Shares sold | 624 | $44,368 | 1,156 | $78,424 |
Shares issued in connection with | ||||
reinvestment of distributions | 120 | 8,362 | 35 | 2,341 |
744 | 52,730 | 1,191 | 80,765 | |
Shares repurchased | (34) | (2,441) | (19) | (1,318) |
Net increase | 710 | $50,289 | 1,172 | $79,447 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS Y | Shares | Amount | Shares | Amount |
Shares sold | 96,035 | $ 7,611,489 | 205,779 | $ 15,452,168 |
Shares issued in connection with | ||||
reinvestment of distributions | 34,778 | 2,718,259 | 23,565 | 1,741,944 |
130,813 | 10,329,748 | 229,344 | 17,194,112 | |
Shares repurchased | (191,863) | (15,032,722) | (168,124) | (12,627,519) |
Net increase (decrease) | (61,050) | $ (4,702,974) | 61,220 | $ 4,566,593 |
RetirementReady 2025 Fund | ||||
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS A | Shares | Amount | Shares | Amount |
Shares sold | 200,765 | $15,340,021 | 407,888 | $ 29,844,516 |
Shares issued in connection with | ||||
reinvestment of distributions | 71,387 | 5,341,148 | 36,976 | 2,661,545 |
272,152 | 20,681,169 | 444,864 | 32,506,061 | |
Shares repurchased | (127,738) | (9,821,537) | (271,412) | (19,895,127) |
Net increase | 144,414 | $10,859,632 | 173,452 | $ 12,610,934 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS B | Shares | Amount | Shares | Amount |
Shares sold | 2,246 | $164,746 | 9,062 | $ 636,921 |
Shares issued in connection with | ||||
reinvestment of distributions | 907 | 65,893 | 223 | 15,546 |
3,153 | 230,639 | 9,285 | 652,467 | |
Shares repurchased | (248) | (18,362) | (2,108) | (149,078) |
Net increase | 2,905 | $212,277 | 7,177 | $ 503,389 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS C | Shares | Amount | Shares | Amount |
Shares sold | 341 | $25,034 | 982 | $ 68,590 |
Shares issued in connection with | ||||
reinvestment of distributions | 136 | 9,803 | 34 | 2,389 |
477 | 34,837 | 1,016 | 70,979 | |
Shares repurchased | (10) | (701) | (190) | (13,462) |
Net increase | 467 | $34,136 | 826 | $ 57,517 |
101
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS M | Shares | Amount | Shares | Amount |
Shares sold | 1,049 | $ 78,530 | 3,061 | $ 217,680 |
Shares issued in connection with | ||||
reinvestment of distributions | 286 | 20,751 | 134 | 9,360 |
1,335 | 99,281 | 3,195 | 227,040 | |
Shares repurchased | (954) | (71,746) | (1,908) | (135,302) |
Net increase | 381 | $ 27,535 | 1,287 | $ 91,738 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS R | Shares | Amount | Shares | Amount |
Shares sold | 360 | $26,470 | 1,546 | $107,082 |
Shares issued in connection with | ||||
reinvestment of distributions | 147 | 10,565 | 2 | 107 |
507 | 37,035 | 1,548 | 107,189 | |
Shares repurchased | (20) | (1,526) | (1) | (32) |
Net increase | 487 | $35,509 | 1,547 | $107,157 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS Y | Shares | Amount | Shares | Amount |
Shares sold | 118,449 | $ 9,125,955 | 275,688 | $ 20,166,475 |
Shares issued in connection with | ||||
reinvestment of distributions | 59,267 | 4,448,612 | 37,104 | 2,677,422 |
177,716 | 13,574,567 | 312,792 | 22,843,897 | |
Shares repurchased | (259,160) | (19,683,708) | (333,322) | (24,452,585) |
Net decrease | (81,444) | $ (6,109,141) | (20,530) | $ (1,608,688) |
RetirementReady 2020 Fund | ||||
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS A | Shares | Amount | Shares | Amount |
Shares sold | 244,958 | $16,865,498 | 719,907 | $ 47,935,826 |
Shares issued in connection with | ||||
reinvestment of distributions | 98,782 | 6,671,753 | 40,617 | 2,667,365 |
343,740 | 23,537,251 | 760,524 | 50,603,191 | |
Shares repurchased | (125,235) | (8,624,600) | (338,491) | (22,549,870) |
Net increase | 218,505 | $14,912,651 | 422,033 | $ 28,053,321 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS B | Shares | Amount | Shares | Amount |
Shares sold | 2,713 | $187,574 | 5,957 | $391,792 |
Shares issued in connection with | ||||
reinvestment of distributions | 638 | 42,235 | 212 | 13,699 |
3,351 | 229,809 | 6,169 | 405,491 | |
Shares repurchased | (1,159) | (78,342) | (1,489) | (97,626) |
Net increase | 2,192 | $151,467 | 4,680 | $307,865 |
102
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS C | Shares | Amount | Shares | Amount |
Shares sold | 864 | $ 57,870 | 892 | $ 57,848 |
Shares issued in connection with | ||||
reinvestment of distributions | 98 | 6,505 | 46 | 2,957 |
962 | 64,375 | 938 | 60,805 | |
Shares repurchased | (497) | (33,140) | (198) | (13,000) |
Net increase | 465 | $ 31,235 | 740 | $ 47,805 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS M | Shares | Amount | Shares | Amount |
Shares sold | 2,971 | $ 200,112 | 5,414 | $ 354,513 |
Shares issued in connection with | ||||
reinvestment of distributions | 622 | 41,228 | 251 | 16,199 |
3,593 | 241,340 | 5,665 | 370,712 | |
Shares repurchased | (3,089) | (208,203) | (1,674) | (110,026) |
Net increase | 504 | $ 33,137 | 3,991 | $ 260,686 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS R | Shares | Amount | Shares | Amount |
Shares sold | 474 | $32,389 | 1,534 | $101,025 |
Shares issued in connection with | ||||
reinvestment of distributions | 142 | 9,404 | 37 | 2,404 |
616 | 41,793 | 1,571 | 103,429 | |
Shares repurchased | (23) | (1,566) | (18) | (1,195) |
Net increase | 593 | $40,227 | 1,553 | $102,234 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS Y | Shares | Amount | Shares | Amount |
Shares sold | 127,801 | $ 9,444,572 | 373,901 | $ 26,497,931 |
Shares issued in connection with | ||||
reinvestment of distributions | 59,189 | 4,301,264 | 38,855 | 2,730,709 |
186,990 | 13,745,836 | 412,756 | 29,228,640 | |
Shares repurchased | (407,099) | (29,814,196) | (323,785) | (22,981,862) |
Net increase (decrease) | (220,109) | $(16,068,360) | 88,971 | $ 6,246,778 |
RetirementReady 2015 Fund | ||||
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS A | Shares | Amount | Shares | Amount |
Shares sold | 443,378 | $ 30,145,818 | 500,567 | $ 33,271,733 |
Shares issued in connection with | ||||
reinvestment of distributions | 89,656 | 5,962,149 | 51,641 | 3,377,298 |
533,034 | 36,107,967 | 552,208 | 36,649,031 | |
Shares repurchased | (162,196) | (10,981,566) | (386,600) | (25,763,157) |
Net increase | 370,838 | $ 25,126,401 | 165,608 | $ 10,885,874 |
103
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS B | Shares | Amount | Shares | Amount |
Shares sold | 6,066 | $399,800 | 6,506 | $ 423,755 |
Shares issued in connection with | ||||
reinvestment of distributions | 655 | 42,664 | 168 | 10,782 |
6,721 | 442,464 | 6,674 | 434,537 | |
Shares repurchased | (1,160) | (77,126) | (3,394) | (220,823) |
Net increase | 5,561 | $365,338 | 3,280 | $ 213,714 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS C | Shares | Amount | Shares | Amount |
Shares sold | 201 | $ 13,522 | 2,359 | $154,370 |
Shares issued in connection with | ||||
reinvestment of distributions | 203 | 13,289 | 113 | 7,235 |
404 | 26,811 | 2,472 | 161,605 | |
Shares repurchased | (432) | (28,164) | (251) | (16,547) |
Net increase (decrease) | (28) | $ (1,353) | 2,221 | $145,058 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS M | Shares | Amount | Shares | Amount |
Shares sold | 1,935 | $ 126,305 | 2,202 | $ 146,369 |
Shares issued in connection with | ||||
reinvestment of distributions | 106 | 6,926 | 144 | 9,311 |
2,041 | 133,231 | 2,346 | 155,680 | |
Shares repurchased | (1,758) | (116,948) | (2,345) | (155,420) |
Net increase | 283 | $ 16,283 | 1 | $ 260 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS R | Shares | Amount | Shares | Amount |
Shares sold | 228 | $15,248 | 507 | $ 33,440 |
Shares issued in connection with | ||||
reinvestment of distributions | 11 | 749 | 27 | 1,758 |
239 | 15,997 | 534 | 35,198 | |
Shares repurchased | (21) | (1,464) | (494) | (32,350) |
Net increase | 218 | $14,533 | 40 | $ 2,848 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS Y | Shares | Amount | Shares | Amount |
Shares sold | 120,992 | $ 8,228,150 | 324,159 | $ 21,518,681 |
Shares issued in connection with | ||||
reinvestment of distributions | 54,998 | 3,667,280 | 51,956 | 3,404,647 |
175,990 | 11,895,430 | 376,115 | 24,923,328 | |
Shares repurchased | (322,044) | (21,813,113) | (659,792) | (44,530,750) |
Net decrease | (146,054) | $ (9,917,683) | (283,677) | $(19,607,422) |
104
RetirementReady 2010 Fund | ||||
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS A | Shares | Amount | Shares | Amount |
Shares sold | 114,614 | $ 6,885,007 | 463,948 | $ 27,381,349 |
Shares issued in connection with | ||||
reinvestment of distributions | 55,657 | 3,234,777 | 28,873 | 1,687,326 |
170,271 | 10,119,784 | 492,821 | 29,068,675 | |
Shares repurchased | (170,456) | (10,059,393) | (391,177) | (23,091,112) |
Net increase (decrease) | (185) | $ 60,391 | 101,644 | $ 5,977,563 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS B | Shares | Amount | Shares | Amount |
Shares sold | 1,827 | $108,744 | 5,253 | $ 304,449 |
Shares issued in connection with | ||||
reinvestment of distributions | 332 | 18,937 | 47 | 2,691 |
2,159 | 127,681 | 5,300 | 307,140 | |
Shares repurchased | (693) | (41,154) | (2,777) | (160,695) |
Net increase | 1,466 | $ 86,527 | 2,523 | $ 146,445 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS C | Shares | Amount | Shares | Amount |
Shares sold | 468 | $26,796 | 457 | $26,618 |
Shares issued in connection with | ||||
reinvestment of distributions | 45 | 2,535 | 22 | 1,263 |
513 | 29,331 | 479 | 27,881 | |
Shares repurchased | (43) | (2,466) | (92) | (5,356) |
Net increase | 470 | $26,865 | 387 | $22,525 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS M | Shares | Amount | Shares | Amount |
Shares sold | 423 | $ 24,633 | 1,477 | $ 86,324 |
Shares issued in connection with | ||||
reinvestment of distributions | 154 | 8,758 | 78 | 4,486 |
577 | 33,391 | 1,555 | 90,810 | |
Shares repurchased | (315) | (18,485) | (322) | (18,715) |
Net increase | 262 | $ 14,906 | 1,233 | $ 72,095 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS R | Shares | Amount | Shares | Amount |
Shares sold | 1,348 | $ 77,053 | 1,719 | $ 99,897 |
Shares issued in connection with | ||||
reinvestment of distributions | 98 | 5,631 | 70 | 4,019 |
1,446 | 82,684 | 1,789 | 103,916 | |
Shares repurchased | (291) | (16,696) | (412) | (24,065) |
Net increase | 1,155 | $ 65,988 | 1,377 | $ 79,851 |
105
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS Y | Shares | Amount | Shares | Amount |
Shares sold | 64,243 | $ 4,026,989 | 229,493 | $ 14,132,242 |
Shares issued in connection with | ||||
reinvestment of distributions | 36,183 | 2,204,258 | 26,556 | 1,621,242 |
100,426 | 6,231,247 | 256,049 | 15,753,484 | |
Shares repurchased | (264,074) | (16,544,802) | (294,224) | (18,259,103) |
Net decrease | (163,648) | $(10,313,555) | (38,175) | $ (2,505,619) |
RetirementReady Maturity Fund | ||||
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS A | Shares | Amount | Shares | Amount |
Shares sold | 154,446 | $ 8,903,353 | 284,325 | $ 16,176,384 |
Shares issued in connection with | ||||
reinvestment of distributions | 21,014 | 1,203,149 | 23,475 | 1,330,584 |
175,460 | 10,106,502 | 307,800 | 17,506,968 | |
Shares repurchased | (183,852) | (10,517,525) | (197,660) | (11,228,688) |
Net increase (decrease) | (8,392) | $ (411,023) | 110,140 | $ 6,278,280 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS B | Shares | Amount | Shares | Amount |
Shares sold | 199 | $11,455 | 672 | $ 37,838 |
Shares issued in connection with | ||||
reinvestment of distributions | 81 | 4,642 | 81 | 4,574 |
280 | 16,097 | 753 | 42,412 | |
Shares repurchased | (20) | (1,138) | (453) | (25,762) |
Net increase | 260 | $14,959 | 300 | $ 16,650 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS C | Shares | Amount | Shares | Amount |
Shares sold | 441 | $24,999 | — | $ — |
Shares issued in connection with | ||||
reinvestment of distributions | 14 | 775 | 1 | 39 |
455 | 25,774 | 1 | 39 | |
Shares repurchased | — | — | — | — |
Net increase | 455 | $25,774 | 1 | $39 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS M | Shares | Amount | Shares | Amount |
Shares sold | 278 | $15,850 | 1,319 | $74,164 |
Shares issued in connection with | ||||
reinvestment of distributions | 51 | 2,906 | 8 | 456 |
329 | 18,756 | 1,327 | 74,620 | |
Shares repurchased | (57) | (3,267) | (18) | (1,017) |
Net increase | 272 | $15,489 | 1,309 | $73,603 |
106
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS R | Shares | Amount | Shares | Amount |
Shares sold | 539 | $31,243 | 839 | $46,798 |
Shares issued in connection with | ||||
reinvestment of distributions | 42 | 2,403 | 3 | 183 |
581 | 33,646 | 842 | 46,981 | |
Shares repurchased | (209) | (11,975) | — | — |
Net increase | 372 | $21,671 | 842 | $46,981 |
Period ended 1/31/07: | Year ended 7/31/06: | |||
CLASS Y | Shares | Amount | Shares | Amount |
Shares sold | 27,441 | $ 1,576,898 | 114,640 | $ 6,536,020 |
Shares issued in connection with | ||||
reinvestment of distributions | 6,998 | 401,408 | 12,721 | 723,234 |
34,439 | 1,978,306 | 127,361 | 7,259,254 | |
Shares repurchased | (109,693) | (6,277,982) | (260,138) | (14,877,302) |
Net decrease | (75,254) | $(4,299,676) | (132,777) | $ (7,618,048) |
* Represents fractional shares.
At January 31, 2007, Putnam LLC and its affiliates owned the following shares of each fund:
Percentage of | Value at | ||
Shares owned | shares outstanding | January 31, 2007 | |
RetirementReady | |||
2050 Fund class C | 21 | 100.00% | $ 1,322 |
2050 Fund class M | 21 | 62.10% | 1,328 |
2050 Fund class R | 21 | 5.30% | 1,334 |
2045 Fund class B | 1 | 0.10% | 108 |
2045 Fund class C | 1 | 0.90% | 108 |
2045 Fund class M | 1 | 1.90% | 108 |
2045 Fund class R | 15 | 1.50% | 1,168 |
2040 Fund class B | 1 | 0.10% | 107 |
2040 Fund class C | 18 | 39.80% | 1,359 |
2040 Fund class M | 1 | 0.30% | 108 |
2040 Fund class R | 15 | 1.30% | 1,161 |
2035 Fund class C | 19 | 2.60% | 1,338 |
2035 Fund class R | 16 | 0.90% | 1,153 |
2030 Fund class C | 1 | 0.30% | 107 |
2030 Fund class R | 2 | 0.10% | 107 |
2025 Fund class R | 18 | 0.90% | 1,314 |
2020 Fund class R | 2 | 0.10% | 107 |
2015 Fund class R | 2 | 0.60% | 106 |
2010 Fund class R | 2 | 0.10% | 105 |
Maturity Fund class B | 1,831 | 67.20% | 105,174 |
Maturity Fund class C | 19 | 4.10% | 1,108 |
Maturity Fund class M | 19 | 1.20% | 1,113 |
Maturity Fund class R | 19 | 1.60% | 1,120 |
107
Note 5: Transactions with affiliated issuers
Transactions during the year with companies in which the fund owned at least 5% or more of the outstanding voting securities, or a company which is under common ownership or control were as follows:
RetirementReady 2050 Fund | ||||
Affiliates | Purchase cost | Sale proceeds | Investment income | Market value |
Putnam Capital Opportunities Fund | $1,235,041 | $ 376,596 | $127,595 | $1,456,735 |
Putnam Fund for Growth and Income | 2,031,462 | 642,394 | 9,432 | 2,387,033 |
Putnam International Equity Fund | 2,323,818 | 829,495 | 55,788 | 2,841,777 |
Putnam Voyager Fund | 1,830,544 | 627,660 | — | 2,402,233 |
Putnam Income Fund | 311,666 | 100,450 | 6,052 | 374,814 |
Putnam Money Market Fund | 85,459 | 33,978 | 1,569 | 90,184 |
Totals | $7,817,990 | $2,610,573 | $200,436 | $9,552,776 |
Market values are shown for those securities affiliated at period end. | ||||
RetirementReady 2045 Fund | ||||
Affiliates | Purchase cost | Sale proceeds | Investment income | Market value |
Putnam Capital Opportunities Fund | $ 2,941,684 | $1,352,987 | $564,771 | $ 5,447,447 |
Putnam Fund for Growth and Income | 4,756,810 | 2,346,822 | 46,957 | 8,924,483 |
Putnam International Equity Fund | 5,171,429 | 3,081,220 | 240,445 | 10,637,598 |
Putnam Voyager Fund | 3,879,728 | 2,254,979 | — | 8,980,209 |
Putnam Income Fund | 702,970 | 362,270 | 28,502 | 1,401,509 |
Putnam Money Market Fund | 218,893 | 129,242 | 7,023 | 339,667 |
Totals | $17,671,514 | $9,527,520 | $887,698 | $35,730,913 |
Market values are shown for those securities affiliated at period end. | ||||
RetirementReady 2040 Fund | ||||
Affiliates | Purchase cost | Sale proceeds | Investment income | Market value |
Putnam Capital Opportunities Fund | $ 3,086,405 | $ 1,507,815 | $ 698,038 | $ 6,450,734 |
Putnam Fund for Growth and Income | 5,114,579 | 2,707,539 | 60,457 | 10,866,387 |
Putnam International Equity Fund | 5,368,752 | 3,924,314 | 291,728 | 12,591,737 |
Putnam Voyager Fund | 3,989,073 | 2,584,827 | — | 10,936,343 |
Putnam Income Fund | 1,692,527 | 731,234 | 63,550 | 3,109,672 |
Putnam Money Market Fund | 665,433 | 379,912 | 29,816 | 1,324,776 |
Totals | $19,916,769 | $11,835,641 | $1,143,589 | $45,279,649 |
Market values are shown for those securities affiliated at period end. |
108
RetirementReady 2035 Fund | ||||
Affiliates | Purchase cost | Sale proceeds | Investment income | Market value |
Putnam Capital Opportunities Fund | $ 3,892,855 | $2,268,813 | $1,004,713 | $ 9,284,123 |
Putnam Fund for Growth and Income | 6,667,804 | 4,893,773 | 95,404 | 16,142,647 |
Putnam International Equity Fund | 6,600,103 | 5,341,110 | 419,830 | 18,125,733 |
Putnam Voyager Fund | 4,938,776 | 4,014,054 | — | 16,244,929 |
Putnam Income Fund | 3,389,006 | 1,871,425 | 161,051 | 7,576,468 |
Putnam Money Market Fund | 1,185,985 | 789,244 | 64,745 | 2,751,225 |
Totals | $26,674,529 | $19,178,419 | $1,745,743 | $70,125,125 |
Market values are shown for those securities affiliated at period end. | ||||
RetirementReady 2030 Fund | ||||
Affiliates | Purchase cost | Sale proceeds | Investment income | Market value |
Putnam Capital Opportunities Fund | $ 4,944,462 | $ 3,425,982 | $1,375,019 | $ 12,342,193 |
Putnam Fund for Growth and Income | 8,690,611 | 6,609,534 | 133,910 | 22,232,363 |
Putnam International Equity Fund | 8,338,111 | 8,991,828 | 575,863 | 24,089,296 |
Putnam Voyager Fund | 6,284,681 | 6,270,827 | — | 22,377,816 |
Putnam Income Fund | 4,883,520 | 3,991,861 | 315,458 | 13,881,734 |
Putnam Money Market Fund | 3,206,245 | 1,762,056 | 131,507 | 5,960,792 |
Totals | $36,347,630 | $31,052,088 | $2,531,757 | $100,884,194 |
Market values are shown for those securities affiliated at period end. | ||||
RetirementReady 2025 Fund | ||||
Affiliates | Purchase cost | Sale proceeds | Investment income | Market value |
Putnam Capital Opportunities Fund | $ 5,817,029 | $ 4,441,259 | $1,684,288 | $ 14,929,699 |
Putnam Fund for Growth and Income | 10,629,317 | 8,908,432 | 172,263 | 28,007,758 |
Putnam International Equity Fund | 9,706,960 | 11,644,562 | 697,928 | 29,144,358 |
Putnam Voyager Fund | 7,550,792 | 8,462,685 | — | 28,187,863 |
Putnam Income Fund | 8,579,818 | 6,615,671 | 501,631 | 22,246,791 |
Putnam Money Market Fund | 3,970,022 | 3,361,714 | 248,003 | 10,507,272 |
Totals | $46,253,938 | $43,434,323 | $3,304,113 | $133,023,741 |
Market values are shown for those securities affiliated at period end. |
109
RetirementReady 2020 Fund | ||||
Affiliates | Purchase cost | Sale proceeds | Investment income | Market value |
Putnam Capital Opportunities Fund | $ 5,970,385 | $ 5,166,124 | $1,875,402 | $ 16,429,482 |
Putnam Fund for Growth and Income | 11,383,102 | 10,878,778 | 203,927 | 32,286,715 |
Putnam International Equity Fund | 7,363,487 | 10,665,689 | 582,968 | 24,051,509 |
Putnam Voyager Fund | 7,778,598 | 10,314,500 | — | 32,495,097 |
Putnam Income Fund | 13,109,423 | 12,145,225 | 916,959 | 39,598,777 |
Putnam Money Market Fund | 5,388,136 | 5,203,466 | 382,093 | 15,910,237 |
Totals | $50,993,131 | $54,373,782 | $3,961,349 | $160,771,817 |
Market values are shown for those securities affiliated at period end. | ||||
RetirementReady 2015 Fund | ||||
Affiliates | Purchase cost | Sale proceeds | Investment income | Market value |
Putnam Capital Opportunities Fund | $ 6,153,241 | $ 5,460,213 | $1,586,965 | $ 13,716,541 |
Putnam Fund for Growth and Income | 10,880,400 | 9,407,491 | 149,280 | 23,961,381 |
Putnam International Equity Fund | 4,927,483 | 5,903,055 | 292,071 | 11,899,319 |
Putnam Voyager Fund | 7,941,502 | 8,784,483 | — | 24,117,264 |
Putnam Income Fund | 20,536,962 | 13,656,772 | 1,089,596 | 48,488,420 |
Putnam Money Market Fund | 13,173,934 | 7,578,762 | 592,947 | 26,607,262 |
Totals | $63,613,522 | $50,790,776 | $3,710,859 | $148,790,187 |
Market values are shown for those securities affiliated at period end. | ||||
RetirementReady 2010 Fund | ||||
Affiliates | Purchase cost | Sale proceeds | Investment income | Market value |
Putnam Capital Opportunities Fund | $ 1,342,422 | $ 2,586,949 | $ 490,564 | $ 3,931,881 |
Putnam Fund for Growth and Income | 2,963,227 | 5,016,447 | 63,003 | 8,497,558 |
Putnam International Equity Fund | 478,063 | 1,735,563 | 40,517 | 1,534,691 |
Putnam Voyager Fund | 1,833,405 | 4,733,558 | — | 8,554,068 |
Putnam Income Fund | 9,650,614 | 13,484,334 | 828,439 | 32,590,542 |
Putnam Money Market Fund | 7,666,204 | 8,899,708 | 534,947 | 21,376,874 |
Totals | $23,933,935 | $36,456,559 | $1,957,470 | $76,485,614 |
Market values are shown for those securities affiliated at period end. |
110
RetirementReady Maturity Fund | ||||
Affiliates | Purchase cost | Sale proceeds | Investment income | Market value |
Putnam Capital Opportunities Fund | $ 940,996 | $ 1,019,852 | $ 289,359 | $ 2,143,331 |
Putnam Fund for Growth and Income | 1,821,401 | 2,146,988 | 30,014 | 4,211,232 |
Putnam International Equity Fund | — | — | — | — |
Putnam Voyager Fund | 1,244,558 | 2,038,824 | — | 4,238,821 |
Putnam Income Fund | 6,232,645 | 8,505,056 | 486,455 | 18,592,646 |
Putnam Money Market Fund | 4,526,204 | 5,657,276 | 330,664 | 12,486,547 |
Totals | $14,765,804 | $19,367,996 | $1,136,492 | $41,672,577 |
Market values are shown for those securities affiliated at period end. |
Note 6: Regulatory matters and litigation
In late 2003 and 2004, Putnam Management settled charges brought by the Securities and Exchange Commission (“SEC”) and the Massachusetts Securities Division (“MSD”) in connection with excessive short-term trading by certain former Putnam employees and, in the case of charges brought by the MSD, excessive short-term trading by participants in some Putnam-administered 401(k) plans. Putnam Management agreed to pay $193.5 million in penalties and restitution, of which $153.5 million will be distributed to certain open-end Putnam funds and their shareholders after the SEC and MSD approve a distribution plan being developed by an independent consultant. The allegations of the SEC and MSD and related matters have served as the general basis for certain lawsuits, including purported class action lawsuits filed against Putnam Management and, in a limited number of cases, against some Putnam funds. Putnam Management believes th at these lawsuits will have no material adverse effect on the funds or on Putnam Management’s ability to provide investment management services. In addition, Putnam Management has agreed to bear any costs incurred by the Putnam funds as a result of these matters.
Putnam Management and Putnam Retail Management are named as defendants in a civil suit in which the plaintiffs allege that the management and distribution fees paid by certain Putnam funds were excessive and seek recovery under the Investment Company Act of 1940. Putnam Management and Putnam Retail Management have contested the plaintiffs’ claims and the matter is currently pending in the U.S. District Court for the District of Massachusetts. Based on currently available information, Putnam Management believes that this action is without merit and that it is unlikely to have a material effect on Putnam Management’s and Putnam Retail Management’s ability to provide services to their clients, including the trust.
Note 7: New accounting pronouncements
In June 2006, FASB issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes (the “Interpretation”). The Interpretation prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken by a filer in the filer’s tax return. The Interpretation will become effective for fiscal years beginning after December 15, 2006 but will also apply to tax positions reflected in each fund’s financial statements as of that date. No determination has been made whether the adoption of the Interpretation will require each fund to make any adjustments to its net assets or have any other effect on each fund’s financial statements. The effects of implementing this pronouncement, if any, will be noted in each funds 6; next semiannual financial statements.
In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (the “Standard”). The Standard
111
defines fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. The Standard applies to fair value measurements already required or permitted by existing standards. The Standard is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Putnam Management is currently evaluating what impact the adoption of the Standard will have on each funds’ financial statements.
112
Brokerage commissions
(Unaudited)
Brokerage commissions are paid to firms that execute trades on behalf of your fund. When choosing these firms, Putnam is required by law to seek the best execution of the trades, taking all relevant factors into consideration, including expected quality of execution and commission rate. The RetirementReady Funds, however, invest in shares of other Putnam mutual funds, rather than in stocks and bonds. For that reason, the funds do not incur brokerage charges.
113
The Putnam
family of funds
The following is a list of Putnam’s open-end mutual funds offered to the public. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund before investing. For a prospectus containing this and other information for any Putnam fund or product, call your financial advisor at 1-800-225-1581 and ask for a prospectus. Please read the prospectus carefully before investing.
Growth funds | Value funds |
Discovery Growth Fund | Classic Equity Fund |
Growth Opportunities Fund | Convertible Income-Growth Trust |
Health Sciences Trust | Equity Income Fund |
International New Opportunities Fund* | The George Putnam Fund of Boston |
New Opportunities Fund | The Putnam Fund for Growth |
OTC & Emerging Growth Fund | and Income |
Small Cap Growth Fund* | International Growth and Income Fund* |
Vista Fund | Mid Cap Value Fund |
Voyager Fund | New Value Fund |
Small Cap Value Fund* | |
Blend funds | Income funds |
Capital Appreciation Fund | American Government Income Fund |
Capital Opportunities Fund* | Diversified Income Trust |
Europe Equity Fund* | Floating Rate Income Fund |
Global Equity Fund* | Global Income Trust* |
Global Natural Resources Fund* | High Yield Advantage Fund* |
International Capital | High Yield Trust* |
Opportunities Fund* | Income Fund |
International Equity Fund* | Limited Duration Government |
Investors Fund | Income Fund |
Research Fund | Money Market Fund† |
Tax Smart Equity Fund® | U.S. Government Income Trust |
Utilities Growth and Income Fund |
* A 1% redemption fee on total assets redeemed or exchanged within 90 days of purchase may be imposed for all share classes of these funds.
† An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve your investment at $1.00 per share, it is possible to lose money by investing in the fund.
114
Tax-free income funds | Putnam RetirementReady® Funds |
AMT-Free Insured Municipal Fund | Putnam RetirementReady Funds — ten |
Tax Exempt Income Fund | investment portfolios that offer diversifica- |
Tax Exempt Money Market Fund§ | tion among stocks, bonds, and money |
Tax-Free High Yield Fund | market instruments and adjust to become |
more conservative over time based on a | |
State tax-free income funds: | target date for withdrawing assets. |
Arizona, California, Massachusetts, Michigan, | |
Minnesota, New Jersey, New York, Ohio, | The ten funds: |
and Pennsylvania | Putnam RetirementReady 2050 Fund |
Putnam RetirementReady 2045 Fund | |
Asset allocation funds | Putnam RetirementReady 2040 Fund |
Income Strategies Fund | Putnam RetirementReady 2035 Fund |
Putnam RetirementReady 2030 Fund | |
Putnam Asset Allocation Funds — three | Putnam RetirementReady 2025 Fund |
investment portfolios that spread your | Putnam RetirementReady 2020 Fund |
money across a variety of stocks, bonds, | Putnam RetirementReady 2015 Fund |
and money market investments. | Putnam RetirementReady 2010 Fund |
Putnam RetirementReady Maturity Fund | |
The three portfolios: | |
Asset Allocation: Balanced Portfolio | |
Asset Allocation: Conservative Portfolio | |
Asset Allocation: Growth Portfolio |
With the exception of money market funds, a 1% redemption fee may be applied to shares exchanged or sold within 7 days of purchase (90 days, for certain funds).
Check your account balances and the most recent month-end performance at www.putnam.com.
115
Putnam puts your
interests first
In January 2004, Putnam began introducing a number of voluntary initiatives designed to reduce fund expenses, provide investors with more useful information, and help safeguard the interests of all Putnam investors. Visit www.putnam.com for details.
Cost-cutting initiatives
Reduced sales charges The maximum sales charge for class A shares has been reduced to 5.25% for equity funds (formerly 5.75%) and 3.75% for most income funds (formerly 4.50%) . The maximum sales charge for class M shares has been reduced to 3.25% for equity funds (formerly 3.50%) .*
Lower class B purchase limit To help ensure that investors are in the most cost-effective share class, the maximum amount that can be invested in class B shares has been reduced to $100,000. (Larger trades or accumulated amounts will be refused.)
Ongoing expenses will be limited Through calendar 2007, total ongoing expenses, including management fees for all funds, will be maintained at or below the average of each fund’s industry peers in its Lipper load-fund universe. For more information, please see the Statement of Additional information.
Improved disclosure
Putnam fund prospectuses and shareholder reports have been revised to disclose additional information that will help shareholders compare funds and weigh their costs and risks along with their potential benefits. Shareholders will find easy-to-understand information about fund expense ratios, portfolio manager compensation, risk comparisons, turnover comparisons, brokerage commissions, and employee and trustee ownership of Putnam funds. Disclosure of breakpoint discounts has also been enhanced to alert investors to potential cost savings.
Protecting investors’ interests
Short-term trading fee introduced To discourage short-term trading, which can interfere with a fund’s long-term strategy, a 1% short-term trading fee may be imposed on any Putnam fund shares (other than money market funds) redeemed or exchanged within seven calendar days of purchase (for certain funds, this fee applies for 90 days).
* The maximum sales charge for class A shares of Putnam Limited Duration Government Income Fund and Putnam Floating Rate Income Fund remains 3.25% .
116
Fund information
Founded over 65 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage over 100 mutual funds in growth, value, blend, fixed income, and international.
Investment Manager | Officers | Francis J. McNamara, III |
Putnam Investment | George Putnam, III | Vice President and |
Management, LLC | President | Chief Legal Officer |
One Post Office Square | ||
Boston, MA 02109 | Charles E. Porter | Charles A. Ruys de Perez |
Executive Vice President, | Vice President and | |
Marketing Services | Principal Executive Officer, | Chief Compliance Officer |
Putnam Retail Management | Associate Treasurer, and | |
One Post Office Square | Compliance Liaison | Mark C. Trenchard |
Boston, MA 02109 | Vice President and | |
Jonathan S. Horwitz | BSA Compliance Officer | |
Custodians | Senior Vice President | |
Putnam Fiduciary Trust | and Treasurer | Judith Cohen |
Company, State Street Bank | Vice President, Clerk and | |
and Trust Company | Steven D. Krichmar | Assistant Treasurer |
Vice President and | ||
Legal Counsel | Principal Financial Officer | Wanda M. McManus |
Ropes & Gray LLP | Vice President, Senior Associate | |
Janet C. Smith | Treasurer and Assistant Clerk | |
Trustees | Vice President, Principal | |
John A. Hill, Chairman | Accounting Officer and | Nancy E. Florek |
Jameson Adkins Baxter, | Assistant Treasurer | Vice President, Assistant Clerk, |
Vice Chairman | Assistant Treasurer | |
Charles B. Curtis | Susan G. Malloy | and Proxy Manager |
Myra R. Drucker | Vice President and | |
Charles E. Haldeman, Jr. | Assistant Treasurer | |
Paul L. Joskow | ||
Elizabeth T. Kennan | Beth S. Mazor | |
Kenneth R. Leibler | Vice President | |
Robert E. Patterson | ||
George Putnam, III | James P. Pappas | |
W. Thomas Stephens | Vice President | |
Richard B. Worley | ||
Richard S. Robie, III | ||
Vice President |
This report is for the information of shareholders of Putnam RetirementReady Funds. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of Putnam’s Quarterly Performance Summary, and Putnam’s Quarterly Ranking Summary. For more recent performance, please visit www.putnam.com. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund, which are described in its prospectus. For this and other information or to request a prospectus, call 1-800-225-1581 toll free. Please read the prospectus carefully before investing. The fund’s Statement of Additional Information contains additional information about the fund’s Trustees and is available without charge upon request by calling 1-800-225-1581.
Item 2. Code of Ethics:
Not applicable
Item 3. Audit Committee Financial Expert:
Not applicable
Item 4. Principal Accountant Fees and Services:
Not applicable
Item 5. Audit Committee of Listed Registrants
Not applicable
Item 6. Schedule of Investments:
The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.
Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:
Not applicable
Item 8. Portfolio Managers of Closed-End Investment Companies
Not Applicable
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:
Not applicable
Item 10. Submission of Matters to a Vote of Security Holders:
Not applicable
Item 11. Controls and Procedures:
(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.
(b) Changes in internal control over financial reporting: Effective January 1, 2007, the fund retained State Street Bank and Trust Company ("State Street") as its custodian. Putnam Fiduciary Trust Company, the fund's previous custodian, is managing the transfer of the fund's assets to State Street. This transfer is expected to be completed for all Putnam funds during the first half of 2007, with PFTC remaining as custodian with respect to fund assets until the assets are transferred. Also effective January 1, 2007, the fund's investment manager, Putnam
Investment Management, LLC entered into a Master Sub-Accounting Services Agreement with State Street, under which the investment manager has delegated to State Street responsibility for providing certain administrative, pricing, and bookkeeping services for the fund.
Item 12. Exhibits:
(a)(1) Not applicable
(a)(2) Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.
(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Putnam RetirementReady Funds
By (Signature and Title):
/s/Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: March 28, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title):
/s/Charles E. Porter
Charles E. Porter
Principal Executive Officer
Date: March 28, 2007
By (Signature and Title):
/s/Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: March 28, 2007