Item 1. Report to Stockholders:
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The following is a copy of the report transmitted to stockholders pursuant
to Rule 30e-1 under the Investment Company Act of 1940:
Putnam RetirementReady[R]
Funds
7 | 31 | 05
Annual Report
[SCALE LOGO OMITTED]
PUTNAM INVESTMENTS
[GRAPHIC OMITTED: PAINT BRUSH ON TOP OF PAINT CANS]
PUTNAM RETIREMENTREADY FUNDS
invest in a mix of Putnam funds to help
weather changing market environments.
What makes Putnam different?
[GRAPHIC OMITTED: FOUNDER]
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.
[GRAPHIC OMITTED: SIGNATURE, JUSTICE SAMUEL PUTNAM 1830]
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 advisors 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 advisors, make informed
investment decisions with confidence.
Putnam RetirementReady[R]
Funds
7 | 31 | 05
Annual Report
Message from the Trustees 2
About the fund 4
Report from the fund managers 7
Performance 13
Expenses 23
Your fund's management 26
Terms and definitions 28
Trustee approval of management contract 30
Other information for shareholders 34
Financial statements 35
Federal tax information 91
Brokerage commissions 92
About the Trustees 93
Officers 99
Message from the Trustees
Dear Fellow Shareholder
During the period ended July 31, 2005, the stock market has continued to
show confidence in the strength of the economy and corporate profits, even
as the Federal Reserve Board's more restrictive monetary policy, along
with high energy prices, has begun to influence the performance of bonds
and the pace of expansion. Abroad, stocks have performed even better than
in the United States, despite weaker economic growth in most developed
markets. However, the recent strength of the U.S. dollar against foreign
currencies partially offset the effects of these gains. And in the last
three weeks, investors have just begun to assess the magnitude of
Hurricane Katrina's impact and how it will affect the U.S. economy. Amid
the uncertainties of this environment, the in-depth, professional research
and active management that mutual funds can provide make them an
intelligent choice for today's investors.
We want you to know that Putnam Investments' management team, under the
leadership of Chief Executive Officer Ed Haldeman, continues to focus on
investment performance and remains committed to putting the interests of
shareholders first. In keeping with these goals, we have redesigned and
expanded our shareholder reports to make it easier for you to learn more
about your fund. Furthermore, on page 30 we provide information about the
2005 approval by the Trustees of your fund's management contract with
Putnam.
We would also like to take this opportunity to announce the retirement of
one of your fund's Trustees, Ronald J. Jackson, who has been an
independent Trustee of the Putnam funds since 1996. We thank him for his
service.
In the following pages, members of your fund's management team discuss how
market conditions affected the fund's performance and their outlook for
the months ahead. As always, we thank you for your support of the Putnam
funds.
Respectfully yours,
/S/GEORGE PUTNAM, III
George Putnam, III
President of the Funds
/S/JOHN A. HILL
John A. Hill
Chairman of the Trustees
September 21, 2005
[GRAPHIC OMITTED: PHOTO OF GEORGE PUTNAM, III AND JOHN A. HILL]
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 focuses 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 near future.
Each RetirementReady Fund's asset allocation generally changes annually to
become more conservative over time.
RetirementReady RetirementReady RetirementReady RetirementReady RetirementReady
2050 Fund 2045 Fund 2040 Fund 2035 Fund 2030 Fund
TARGET ALLOCATIONS as of 6/30/05 Most aggressive [GRAPHIC OMITTED: ARROW]
* Domestic stock
Putnam Voyager Fund 25% 25% 25% 24% 23%
The Putnam Fund for Growth and Income 25% 25% 25% 24% 23%
Putnam Capital Opportunities Fund 15% 15% 15% 14% 13%
* International stock
Putnam International Equity Fund 30% 30% 29% 27% 25%
* Bonds
Putnam Income Fund 4% 4% 5% 8% 12%
* Money market
Putnam Money Market Fund 1% 1% 1% 3% 4%
RetirementReady RetirementReady RetirementReady RetirementReady RetirementReady
2025 Fund 2020 Fund 2015 Fund 2010 Fund Maturity Fund
TARGET ALLOCATIONS as of 6/30/05 Most conservative
* Domestic stock
Putnam Voyager Fund 22% 21% 18% 13% 10%
The Putnam Fund for Growth and Income 22% 21% 18% 13% 10%
Putnam Capital Opportunities Fund 12% 11% 10% 7% 5%
* International stock
Putnam International Equity Fund 23% 17% 11% 4% 0%
* Bonds
Putnam Income Fund 15% 21% 29% 39% 45%
* Money market
Putnam Money Market Fund 6% 9% 14% 24% 30%
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 funds invest in international investments, which involve risks such as
currency fluctuations, economic instability, and political developments.
The funds invest some or all of their assets in small and/or midsize
companies. Such investments increase the risk of greater price
fluctuations. The funds also have a significant portion of their assets 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. 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.
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Performance
Cumulative life-of-fund total return for class A shares, for period ended
7/31/05
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(inception: 11/1/04) NAV POP
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2045 Fund 12.51% 6.61%
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2040 Fund 12.37 6.47
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2035 Fund 11.76 5.89
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2030 Fund 11.14 5.32
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2025 Fund 10.53 4.73
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2020 Fund 9.41 3.68
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2015 Fund 7.90 2.23
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2010 Fund 5.55 0.00
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Maturity Fund 4.15 -1.34
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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 NAV do not
reflect a sales charge of 5.25%. For the most recent month-end
performance, visit www.putnam.com. For a portion of the period, these
funds limited expenses, without which returns would have been lower. A
short-term trading fee of up to 2% may apply.
Fund performance for the 2050 Fund is not included in this report because
the fund does not yet have a full quarter of results. Its inception date
is 5/2/05.
Report from the fund managers
The year in review
Reflecting moderate growth in the economy, stocks and bonds generally
posted moderate gains in the 12-month period ended July 31, 2005. Markets
were generally positive during the period, but there was a noticeable
divergence in results among sectors. The energy sector delivered the best
results by far, boosted by the increase in oil prices, while utilities
stocks also appreciated substantially due to strong demand for energy.
Securities involving a somewhat greater level of risk, including
below-investment-grade bonds and stocks of smaller companies, outperformed
other types of securities. Also worth noting was the reversal in the
weakening of the U.S. dollar versus other currencies, particularly the
euro. After falling in value for the first half of the period, the dollar
recovered much of its value in the second half. On the international
stage, markets tended to outperform their domestic counterparts. In Asia,
Latin America, and emerging markets, growth remained vibrant, while Canada
and Australia continued to benefit from strong exports of natural
resources and basic materials.
Market overview: Equities
In the early months of the period, stock prices in many regions of the
world gradually declined, responding to investor concerns about terrorism.
After the Olympics and the U.S. presidential election, stocks across
sectors and investment styles rallied until the end of the calendar year.
From January to June 2005, however, the broad stock market was flat,
reflecting concerns that high energy prices were restraining consumer
spending and business investments. Energy and utilities stocks continued
to be the chief beneficiaries of the trend. Health-care stocks, regarded
as defensive investments, also performed well. In the latter months of the
period, stocks of large companies began to perform more competitively with
stocks of small companies, while value-style stocks continued to have an
edge over growth. Internationally, Asian markets (with the exception of
Japan) and markets in Latin America achieved the strongest economic growth
and the best stock performance. These emerging markets also benefited from
strong demand for exports of natural resources, basic materials, and
consumer goods. Also, the governments of most emerging markets remained in
strong financial condition, which has helped many of them move into
investment-grade standing with credit rating agencies and become more
inviting to global investors. Japanese stocks, on the other hand, were
basically flat for the year. Although the economy recovered from its
recession, Japanese exports to the United States decelerated as the cost
of Japan's energy exports rose rapidly. This combination hurt earnings for
both exporters of consumer goods and importers of industrial goods. In
Europe, meanwhile, economic growth was sluggish because of the negative
impact of higher energy prices. On the bright side, energy stocks, like
those in the United States, performed very well. In addition, the euro,
after peaking in January, weakened considerably against the dollar, giving
a tailwind to many European multinationals by boosting their overseas
profits.
Market overview:
Fixed income
Conventional wisdom suggested that bonds, after rallying for several
years, might experience a setback when the Federal Reserve Board (the Fed)
began raising short-term interest rates in June 2004. However, bonds
continued to perform well. As yields of intermediate- and long-term bonds
fell while short-term interest rates rose, the yield curve flattened.
Gains were widespread across fixed-income sectors. Long-term Treasury
bonds, which are the most sensitive to interest rates, experienced the
greatest price appreciation -- their prices moved up as long-term interest
rates moved down. The mortgage-backed and asset-backed sectors also
performed well, reflecting the generally healthy conditions of the housing
market and U.S. consumer spending. High-yield bonds continued to post
strong results, overcoming significant turbulence in April when the bonds
of both Ford and General Motors were downgraded to junk status by credit
rating agencies. Meanwhile, bonds in international markets achieved a
sustained rally during the period. The European Central Bank (ECB) held
rates steady at 2%, and the Bank of Japan kept rates at 0.1%. Bonds from
emerging markets had an exceptional year. Not only did they offer the
yield advantages investors wanted, but governments across Latin America,
Asia, and other regions also offered higher credit ratings. The rally was
not limited to emerging markets, as bonds in Europe performed particularly
well, reflecting investors' enthusiasm that the ECB might reduce interest
rates to stimulate faster economic growth.
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Market sector performance
These indexes provide an overview of performance in different market
sectors over the life of the funds, ending 7/31/05.
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Equities
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S&P 500 Index (broad stock market) 10.68%
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MSCI EAFE Index (international stocks) 13.59%
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Russell 1000 Index (large-company stocks) 12.38%
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Russell 2000 Index (small-company stocks) 17.49%
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Bonds
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Lehman Aggregate Bond Index (broad bond market) 1.70%
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Lehman Credit Index (corporate bonds) 1.76%
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JP Morgan Developed High Yield Index (high-yield corporate bonds) 4.97%
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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. Such investments
increase the risk of greater price fluctuations. 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.
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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.
Over the coming 12 months, a number of factors will be important in
determining the direction of the markets. We believe the Fed's stance on
interest rates for the remainder of 2005 will play the most significant
role. The rate increases the Fed has rolled out so far were largely
unsurprising; the market had been preparing for interest rate hikes for
most of the past year. Should the Fed continue its tightening policy,
however, equity markets could respond negatively. Oil prices are another
concern, as many investors are beginning to worry that continued high
energy costs could act as an economic brake, particularly cutting into the
purchasing power of the middle class. Internationally, the dollar's
relationship to the euro and other foreign currencies will have a marked
impact on global markets. Despite the relative outperformance of emerging
markets over the period, a strengthening dollar could make overseas equity
markets less attractive for investors in the United States because the
value of any unhedged investments would be eroded as returns are
translated back into U.S. dollars. We expect fixed-income markets, both
domestically and internationally, to remain relatively stable. The
high-yield sector, after outperforming other market sectors for several
years, may soon return to its historic averages. Emerging-market bonds
continue to look more attractive than the bonds of developed countries,
as rates in Europe have little room for reduction, which makes significant
price appreciation over the longer term more unlikely.
The views expressed in this report are exclusively those of Putnam
Management. They are not meant as investment advice.
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 mid size 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 those that Putnam believes are currently undervalued by the
market. We look for companies undergoing positive change. If we are
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 mid size 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, although it can invest in companies of any size. Although
we emphasize investments in developed countries, the fund 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 (junk bonds), and have
intermediate- to long-term maturities.
Putnam Money Market Fund
The fund seeks as high a rate of current income as Putnam Manage ment
be lieves is consistent with preservation of capital and mainten ance 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.
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Allocations by fund as of 7/31/05
Percentages based on market value. Portfolio composition will vary over
time. Due to rounding, percentages may not equal 100%.
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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 24.8% 15.2% 30.0% 25.2% 3.9% 1.0%
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2045 Fund 24.8% 15.3% 29.8% 25.2% 3.8% 1.0%
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2040 Fund 24.8% 15.3% 28.8% 25.2% 4.8% 1.0%
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2035 Fund 23.9% 14.3% 26.9% 24.3% 7.7% 2.9%
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2030 Fund 22.9% 13.4% 25.0% 23.3% 11.5% 3.9%
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2025 Fund 22.0% 12.3% 23.1% 22.4% 14.4% 5.8%
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2020 Fund 21.1% 11.4% 17.1% 21.4% 20.3% 8.8%
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2015 Fund 18.2% 10.4% 11.1% 18.5% 28.1% 13.8%
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2010 Fund 13.2% 7.3% 4.1% 13.4% 38.1% 23.8%
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Maturity Fund 10.2% 5.2% -- 10.4% 44.3% 29.9%
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Your fund's performance
This section shows your fund's performance during its fiscal year, which
ended July 31, 2005. In accordance with regulatory requirements, we also
include performance for the most current 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.
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Fund performance
Cumulative life-of-fund return for period ended 7/31/05
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Class A Class B Class C Class M Class R
(inception dates) (11/1/04) (11/1/04) (11/1/04) (11/1/04) (11/1/04)
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NAV POP NAV CDSC NAV CDSC NAV POP NAV
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2045 Fund 12.51% 6.61% 11.87% 6.87% 11.89% 10.89% 12.09% 8.16% 12.33%
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2040 Fund 12.37 6.47 11.75 6.75 11.77 10.77 11.96 8.04 12.20
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2035 Fund 11.76 5.89 11.15 6.15 11.15 10.15 11.35 7.45 11.58
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2030 Fund 11.14 5.32 10.54 5.54 10.52 9.52 10.74 6.87 10.96
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2025 Fund 10.53 4.73 9.91 4.91 9.89 8.89 10.12 6.27 10.31
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2020 Fund 9.41 3.68 8.79 3.79 8.79 7.79 9.00 5.17 9.25
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2015 Fund 7.90 2.23 7.30 2.30 7.32 6.32 7.52 3.75 7.75
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2010 Fund 5.55 0.00 4.98 -0.02 4.98 3.98 5.19 1.51 5.41
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Maturity Fund 4.15 -1.34 3.55 -1.45 3.59 2.59 3.76 0.12 3.97
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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 sales charge of 5.25% and 3.50%, respectively (which for class M
shares does not reflect a reduction in sales charges that went into effect
on April 1, 2005; if this reduction had been in place for all periods
indicated, returns would have been higher). 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 the first year that is
eliminated thereafter. Class R shares have no initial sales charge or
CDSC.
For a portion of the period, these funds limited expenses, without which
returns would have been lower.
A 2% short-term trading fee may be applied to shares exchanged or sold
within 5 days of purchase.
Fund performance for the 2050 Fund is not included in this report because
the fund does not yet have a full quarter of results. Its inception date
is 5/2/05.
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Change in value of a $10,000 investment ($9,475 after sales charge)
Cumulative total return from 11/1/04 to 7/31/05
Putnam RetirementReady 2045 Fund
2045 Fund Lehman
class A shares S&P 500 Aggregate
at POP Index Bond Index
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11/1/04 9,475 10,000 10,000
7/31/05 $10,661 $11,068 $10,170
Past performance does not indicate future results. At the end of the same
time period, a $10,000 investment in the fund's class B shares would have
been valued at $11,187 ($10,687 with contingent deferred sales charge). A
$10,000 investment in the fund's class C shares would have been valued at
$11,189 ($11,089 with contingent deferred sales charge). A $10,000
investment in the fund's class M shares would have been valued at $11,209
($10,816 at public offering price). A $10,000 investment in the fund's
class R shares would have been valued at $11,233. See first page of
performance section for performance calculation method.
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Putnam RetirementReady 2040 Fund
2040 Fund Lehman
class A shares S&P 500 Aggregate
at POP Index Bond Index
- -------------------------------------------------------
11/1/04 9,475 10,000 10,000
7/31/05 $10,647 $11,068 $10,170
Past performance does not indicate future results. At the end of the same
time period, a $10,000 investment in the fund's class B shares would have
been valued at $11,175 ($10,675 with contingent deferred sales charge). A
$10,000 investment in the fund's class C shares would have been valued at
$11,177 ($11,077 with contingent deferred sales charge). A $10,000
investment in the fund's class M shares would have been valued at $11,196
($10,804 at public offering price). A $10,000 investment in the fund's
class R shares would have been valued at $11,220. See first page of
performance section for performance calculation method.
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Putnam RetirementReady 2035 Fund
2035 Fund Lehman
class A shares S&P 500 Aggregate
at POP Index Bond Index
- -------------------------------------------------------
11/1/04 9,475 10,000 10,000
7/31/05 $10,589 $11,068 $10,170
Past performance does not indicate future results. At the end of the same
time period, a $10,000 investment in the fund's class B shares would have
been valued at $11,115 ($10,615 with contingent deferred sales charge). A
$10,000 investment in the fund's class C shares would have been valued at
$11,115 ($11,015 with contingent deferred sales charge). A $10,000
investment in the fund's class M shares would have been valued at $11,135
($10,745 at public offering price). A $10,000 investment in the fund's
class R shares would have been valued at $11,158. See first page of
performance section for performance calculation method.
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Putnam RetirementReady 2030 Fund
2030 Fund Lehman
class A shares S&P 500 Aggregate
at POP Index Bond Index
- -------------------------------------------------------
11/1/04 9,475 10,000 10,000
7/31/05 $10,532 $11,068 $10,170
Past performance does not indicate future results. At the end of the same
time period, a $10,000 investment in the fund's class B shares would have
been valued at $11,054($10,554 with contingent deferred sales charge). A
$10,000 investment in the fund's class C shares would have been valued at
$11,052 ($10,952 with contingent deferred sales charge). A $10,000
investment in the fund's class M shares would have been valued at $11,074
($10,687 at public offering price). A $10,000 investment in the fund's
class R shares would have been valued at $11,096. See first page of
performance section for performance calculation method.
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Putnam RetirementReady 2025 Fund
2025 Fund Lehman
class A shares S&P 500 Aggregate
at POP Index Bond Index
- -------------------------------------------------------
11/1/04 9,475 10,000 10,000
7/31/05 $10,473 $11,068 $10,170
Past performance does not indicate future results. At the end of the same
time period, a $10,000 investment in the fund's class B shares would have
been valued at $10,991 ($10,491 with contingent deferred sales charge). A
$10,000 investment in the fund's class C shares would have been valued at
$10,989 ($10,889 with contingent deferred sales charge). A $10,000
investment in the fund's class M shares would have been valued at $11,012
($10,627 at public offering price). A $10,000 investment in the fund's
class R shares would have been valued at $11,031. See first page of
performance section for performance calculation method.
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Putnam RetirementReady 2020 Fund
2020 Fund Lehman
class A shares S&P 500 Aggregate
at POP Index Bond Index
- -------------------------------------------------------
11/1/04 9,475 10,000 10,000
7/31/05 $10,368 $11,068 $10,170
Past performance does not indicate future results. At the end of the same
time period, a $10,000 investment in the fund's class B shares would have
been valued at $10,879 ($10,379 with contingent deferred sales charge). A
$10,000 investment in the fund's class C shares would have been valued at
$10,879 ($10,779 with contingent deferred sales charge). A $10,000
investment in the fund's class M shares would have been valued at $10,900
($10,517 at public offering price). A $10,000 investment in the fund's
class R shares would have been valued at $10,925. See first page of
performance section for performance calculation method.
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Putnam RetirementReady 2015 Fund
2015 Fund Lehman
class A shares S&P 500 Aggregate
at POP Index Bond Index
- --------------------------------------------------------
11/1/04 9,475 10,000 10,000
7/31/05 $10,223 $11,068 $10,170
Past performance does not indicate future results. At the end of the same
time period, a $10,000 investment in the fund's class B shares would have
been valued at $10,730 ($10,230 with contingent deferred sales charge). A
$10,000 investment in the fund's class C shares would have been valued at
$10,732 ($10,632 with contingent deferred sales charge). A $10,000
investment in the fund's class M shares would have been valued at $10,752
($10,375 at public offering price). A $10,000 investment in the fund's
class R shares would have been valued at $10,775. See first page of
performance section for performance calculation method.
- --------------------------------------------------------
Putnam RetirementReady 2010 Fund
2010 Fund Lehman
class A shares S&P 500 Aggregate
at POP Index Bond Index
- --------------------------------------------------------
11/1/04 9,475 10,000 10,000
7/31/05 $10,000 $11,068 $10,170
Past performance does not indicate future results. At the end of the same
time period, a $10,000 investment in the fund's class B shares would have
been valued at $10,498 ($9,998 with contingent deferred sales charge). A
$10,000 investment in the fund's class C shares would have been valued at
$10,498 ($10,398 with contingent deferred sales charge). A $10,000
investment in the fund's class M shares would have been valued at $10,519
($10,151 at public offering price). A $10,000 investment in the fund's
class R shares would have been valued at $10,541. See first page of
performance section for performance calculation method.
- --------------------------------------------------------
Putnam RetirementReady Maturity Fund
Maturity Fund Lehman
class A shares S&P 500 Aggregate
at POP Index Bond Index
- --------------------------------------------------------
11/1/04 9,475 10,000 10,000
7/31/05 $9,866 $11,068 $10,170
Past performance does not indicate future results. At the end of the same
time period, a $10,000 investment in the fund's class B shares would have
been valued at $10,355 ($9,855 with contingent deferred sales charge). A
$10,000 investment in the fund's class C shares would have been valued at
$10,359 ($10,259 with contingent deferred sales charge). A $10,000
investment in the fund's class M shares would have been valued at $10,376
($10,012 at public offering price). A $10,000 investment in the fund's
class R shares would have been valued at $10,397. See first page of
performance section for performance calculation method.
- -------------------------------------------------------------------------
Comparative cumulative index returns
For periods ended 7/31/05
- -------------------------------------------------------------------------
S&P 500 Lehman Aggregate
Index Bond Index
- -------------------------------------------------------------------------
Life of fund (since 11/1/04) 10.68% 1.70%
- -------------------------------------------------------------------------
Index results should be compared to fund performance at net asset value.
- -------------------------------------------------------------------------
Price and distribution information
For the life-of-fund period ended 7/31/05
- -------------------------------------------------------------------------
Class A Class B Class C Class M Class R
- -------------------------------------------------------------------------
2045 Fund
- -------------------------------------------------------------------------
Distributions
(number) 1 1 1 1 1
- -------------------------------------------------------------------------
Income $0.583 $0.509 $0.509 $0.535 $0.561
- -------------------------------------------------------------------------
Capital gains -- -- -- -- --
- -------------------------------------------------------------------------
Total $0.583 $0.509 $0.509 $0.535 $0.561
- -------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP NAV
- -------------------------------------------------------------------------
11/1/04* $63.42 $66.93 $62.00 $62.00 $62.00 $64.25 $62.00
- -------------------------------------------------------------------------
7/31/05 70.75 74.67 68.83 68.84 68.94 71.26+ 69.06
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Class A Class B Class C Class M Class R
- -------------------------------------------------------------------------
2040 Fund
- -------------------------------------------------------------------------
Distributions
(number) 1 1 1 1 1
- -------------------------------------------------------------------------
Income $0.524 $0.450 $0.450 $0.516 $0.502
- -------------------------------------------------------------------------
Capital gains -- -- -- -- --
- -------------------------------------------------------------------------
Total $0.524 $0.450 $0.450 $0.516 $0.502
- -------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP NAV
- -------------------------------------------------------------------------
11/1/04* $63.50 $67.02 $62.00 $62.00 $62.00 $64.25 $62.00
- -------------------------------------------------------------------------
7/31/05 70.81 74.73 68.82 68.83 68.88 71.19+ 69.04
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Class A Class B Class C Class M Class R
- -------------------------------------------------------------------------
2035 Fund
- -------------------------------------------------------------------------
Distributions
(number) 1 1 1 1 1
- -------------------------------------------------------------------------
Income $0.454 $0.437 $0.381 $0.438 $0.438
- -------------------------------------------------------------------------
Capital gains -- -- -- -- --
- -------------------------------------------------------------------------
Total $0.454 $0.437 $0.381 $0.438 $0.438
- -------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP NAV
- -------------------------------------------------------------------------
11/1/04* $62.61 $66.08 $61.00 $61.00 $61.00 $63.21 $61.00
- -------------------------------------------------------------------------
7/31/05 69.50 73.35 67.35 67.41 67.47 69.74+ 67.61
- -------------------------------------------------------------------------
* Inception date of the fund.
+ Reflects a reduction in sales charges that took effect on April 1, 2005.
- -------------------------------------------------------------------------
Class A Class B Class C Class M Class R
- -------------------------------------------------------------------------
2030 Fund
- -------------------------------------------------------------------------
Distributions
(number) 1 1 1 1 1
- -------------------------------------------------------------------------
Income $0.419 $0.347 $0.347 $0.399 $0.399
- -------------------------------------------------------------------------
Capital gains -- -- -- -- --
- -------------------------------------------------------------------------
Total $0.419 $0.347 $0.347 $0.399 $0.399
- -------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP NAV
- -------------------------------------------------------------------------
11/1/04* $62.16 $65.60 $61.00 $61.00 $61.00 $63.21 $61.00
- -------------------------------------------------------------------------
7/31/05 68.65 72.45 67.07 67.06 67.14 69.40+ 67.27
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Class A Class B Class C Class M Class R
- -------------------------------------------------------------------------
2025 Fund
- -------------------------------------------------------------------------
Distributions
(number) 1 1 1 1 1
- -------------------------------------------------------------------------
Income $0.397 $0.390 $0.322 $0.404 $0.375
- -------------------------------------------------------------------------
Capital gains -- -- -- -- --
- -------------------------------------------------------------------------
Total $0.397 $0.390 $0.322 $0.404 $0.375
- -------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP NAV
- -------------------------------------------------------------------------
11/1/04* $65.75 $69.39 $64.00 $64.00 $64.00 $66.32 $64.00
- -------------------------------------------------------------------------
7/31/05 72.26 76.26 69.94 70.00 70.06 72.41+ 70.21
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Class A Class B Class C Class M Class R
- -------------------------------------------------------------------------
2020 Fund
- -------------------------------------------------------------------------
Distributions
(number) 1 1 1 1 1
- -------------------------------------------------------------------------
Income $0.330 $0.321 $0.296 $0.336 $0.309
- -------------------------------------------------------------------------
Capital gains -- -- -- -- --
- -------------------------------------------------------------------------
Total $0.330 $0.321 $0.296 $0.336 $0.309
- -------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP NAV
- -------------------------------------------------------------------------
11/1/04* $60.69 $64.05 $60.00 $60.00 $60.00 $62.18 $60.00
- -------------------------------------------------------------------------
7/31/05 66.06 69.72 64.94 64.97 65.05 67.24+ 65.23
- -------------------------------------------------------------------------
* Inception date of the fund.
+ Reflects a reduction in sales charges that took effect on April 1, 2005.
- -------------------------------------------------------------------------
Class A Class B Class C Class M Class R
- -------------------------------------------------------------------------
2015 Fund
- -------------------------------------------------------------------------
Distributions
(number) 1 1 1 1 1
- -------------------------------------------------------------------------
Income $0.278 $0.248 $0.279 $0.273 $0.256
- -------------------------------------------------------------------------
Capital gains -- -- -- -- --
- -------------------------------------------------------------------------
Total $0.278 $0.248 $0.279 $0.273 $0.256
- -------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP NAV
- -------------------------------------------------------------------------
11/1/04* $62.62 $66.09 $62.00 $62.00 $62.00 $64.25 $62.00
- -------------------------------------------------------------------------
7/31/05 67.28 71.01 66.27 66.25 66.38 68.61+ 66.54
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Class A Class B Class C Class M Class R
- -------------------------------------------------------------------------
2010 Fund
- -------------------------------------------------------------------------
Distributions
(number) 1 1 1 1 1
- -------------------------------------------------------------------------
Income $0.215 $0.195 $0.167 $0.172 $0.194
- -------------------------------------------------------------------------
Capital gains -- -- -- -- --
- -------------------------------------------------------------------------
Total $0.215 $0.195 $0.167 $0.172 $0.194
- -------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP NAV
- -------------------------------------------------------------------------
11/1/04* $56.79 $59.94 $56.00 $56.00 $56.00 $58.03 $56.00
- -------------------------------------------------------------------------
7/31/05 59.72 63.03 58.59 58.62 58.73 60.70+ 58.83
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
Class A Class B Class C Class M Class R
- -------------------------------------------------------------------------
Maturity Fund
- -------------------------------------------------------------------------
Distributions
(number) 9 9 9 9 9
- -------------------------------------------------------------------------
Income $0.752 $0.443 $0.439 $0.557 $0.651
- -------------------------------------------------------------------------
Capital gains -- -- -- -- --
- -------------------------------------------------------------------------
Total $0.752 $0.443 $0.439 $0.557 $0.651
- -------------------------------------------------------------------------
Share value: NAV POP NAV NAV NAV POP NAV
- -------------------------------------------------------------------------
11/1/04* $55.96 $59.06 $56.00 $56.00 $56.00 $58.03 $56.00
- -------------------------------------------------------------------------
7/31/05 57.51 60.70 57.54 57.56 57.54 59.47+ 57.56
- -------------------------------------------------------------------------
* Inception date of the fund.
+ Reflects a reduction in sales charges that took effect on April 1, 2005.
- --------------------------------------------------------------------------------------------------------------------
Cumulative life-of-fund performance for most recent calendar quarter
Total return for periods ended 6/30/05
- --------------------------------------------------------------------------------------------------------------------
Class A Class B Class C Class M Class R
(inception dates) (11/1/04) (11/1/04) (11/1/04) (11/1/04) (11/1/04)
- --------------------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV POP NAV
- --------------------------------------------------------------------------------------------------------------------
2045 Fund 8.35% 2.67% 7.79% 2.79% 7.81% 6.81% 7.98% 4.19% 8.20%
- --------------------------------------------------------------------------------------------------------------------
2040 Fund 8.24 2.56 7.72 2.72 7.74 6.74 7.89 4.12 8.10
- --------------------------------------------------------------------------------------------------------------------
2035 Fund 7.90 2.23 7.37 2.37 7.38 6.38 7.55 3.79 7.75
- --------------------------------------------------------------------------------------------------------------------
2030 Fund 7.57 1.93 7.04 2.04 7.03 6.03 7.21 3.46 7.41
- --------------------------------------------------------------------------------------------------------------------
2025 Fund 7.19 1.57 6.67 1.67 6.66 5.66 6.85 3.11 7.02
- --------------------------------------------------------------------------------------------------------------------
2020 Fund 6.51 0.93 5.99 0.99 5.98 4.98 6.17 2.44 6.39
- --------------------------------------------------------------------------------------------------------------------
2015 Fund 5.64 0.09 5.13 0.13 5.13 4.13 5.31 1.63 5.53
- --------------------------------------------------------------------------------------------------------------------
2010 Fund 4.26 -1.22 3.76 -1.24 3.77 2.77 3.93 0.30 4.13
- --------------------------------------------------------------------------------------------------------------------
Maturity Fund 3.44 -2.01 2.91 -2.09 2.93 1.93 3.09 -0.53 3.27
- --------------------------------------------------------------------------------------------------------------------
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 February 1,
2005, to July 31, 2005 (excluding the 2050 Fund, which commenced
operations on May 2, 2005, and for which the table shows expenses from
inception to July 31, 2005). 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
- -------------------------------------------------------------------------------------
2050 Fund
- -------------------------------------------------------------------------------------
Expenses paid per
$1,000* $0.90 $2.83 $2.83 $2.18 $1.54
- -------------------------------------------------------------------------------------
Ending value (after
expenses) $1,040.80 $1,039.00 $1,039.00 $1,039.60 $1,040.50
- -------------------------------------------------------------------------------------
2045 Fund
- -------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.79 $5.60 $5.60 $4.33 $3.06
- -------------------------------------------------------------------------------------
Ending value (after
expenses) $1,059.00 $1,054.90 $1,055.00 $1,056.20 $1,057.70
- -------------------------------------------------------------------------------------
2040 Fund
- -------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.79 $5.60 $5.60 $4.33 $3.06
- -------------------------------------------------------------------------------------
Ending value (after
expenses) $1,058.80 $1,054.90 $1,055.00 $1,056.30 $1,057.80
- -------------------------------------------------------------------------------------
2035 Fund
- -------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.78 $5.60 $5.60 $4.33 $3.06
- -------------------------------------------------------------------------------------
Ending value (after
expenses) $1,056.10 $1,052.20 $1,052.30 $1,053.40 $1,055.10
- -------------------------------------------------------------------------------------
2030 Fund
- -------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.78 $5.59 $5.59 $4.32 $3.05
- -------------------------------------------------------------------------------------
Ending value (after
expenses) $1,053.20 $1,049.60 $1,049.40 $1,050.90 $1,052.10
- -------------------------------------------------------------------------------------
2025 Fund
- -------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.78 $5.58 $5.58 $4.32 $3.05
- -------------------------------------------------------------------------------------
Ending value (after
expenses) $1,050.70 $1,046.90 $1,046.60 $1,048.20 $1,049.30
- -------------------------------------------------------------------------------------
2020 Fund
- -------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.78 $5.57 $5.57 $4.31 $3.04
- -------------------------------------------------------------------------------------
Ending value (after
expenses) $1,046.70 $1,042.90 $1,042.80 $1,044.10 $1,046.00
- -------------------------------------------------------------------------------------
2015 Fund
- -------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.77 $5.55 $5.55 $4.30 $3.03
- -------------------------------------------------------------------------------------
Ending value (after
expenses) $1,040.70 $1,036.60 $1,036.80 $1,038.00 $1,039.60
- -------------------------------------------------------------------------------------
2010 Fund
- -------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.53 $5.53 $4.27 $3.02
- -------------------------------------------------------------------------------------
Ending value (after
expenses) $1,030.00 $1,026.30 $1,026.40 $1,027.80 $1,029.20
- -------------------------------------------------------------------------------------
Maturity Fund
- -------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.51 $5.51 $4.26 $3.01
- -------------------------------------------------------------------------------------
Ending value (after
expenses) $1,023.70 $1,019.90 $1,020.20 $1,021.30 $1,022.70
- -------------------------------------------------------------------------------------
* 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 7/31/05
(except the 2050 Fund, which commenced operations on May 2, 2005). 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
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.
- ------------------------------------------------------------------------------------
2050 Fund Class A Class B Class C Class M Class R
- ------------------------------------------------------------------------------------
Expenses paid per
$1,000* $0.89 $2.79 $2.79 $2.15 $1.52
- ------------------------------------------------------------------------------------
Ending value (after
expenses) $1,011.72 $1,009.83 $1,009.83 $1,010.46 $1,011.09
- ------------------------------------------------------------------------------------
Annualized expense ratio 0.35% 1.10% 1.10% 0.85% 0.60%
- ------------------------------------------------------------------------------------
2045 Fund
- ------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.51 $5.51 $4.26 $3.01
- ------------------------------------------------------------------------------------
Ending value (after
expenses) $1,023.06 $1,019.34 $1,019.34 $1,020.58 $1,021.82
- ------------------------------------------------------------------------------------
Annualized expense ratio 0.35% 1.10% 1.10% 0.85% 0.60%
- ------------------------------------------------------------------------------------
2040 Fund
- ------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.51 $5.51 $4.26 $3.01
- ------------------------------------------------------------------------------------
Ending value (after
expenses) $1,023.06 $1,019.34 $1,019.34 $1,020.58 $1,021.82
- ------------------------------------------------------------------------------------
Annualized expense ratio 0.35% 1.10% 1.10% 0.85% 0.60%
- ------------------------------------------------------------------------------------
2035 Fund
- ------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.51 $5.51 $4.26 $3.01
- ------------------------------------------------------------------------------------
Ending value (after
expenses) $1,023.06 $1,019.34 $1,019.34 $1,020.58 $1,021.82
- ------------------------------------------------------------------------------------
Annualized expense ratio 0.35% 1.10% 1.10% 0.85% 0.60%
- ------------------------------------------------------------------------------------
2030 Fund
- ------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.51 $5.51 $4.26 $3.01
- ------------------------------------------------------------------------------------
Ending value (after
expenses) $1,023.06 $1,019.34 $1,019.34 $1,020.58 $1,021.82
- ------------------------------------------------------------------------------------
Annualized expense ratio 0.35% 1.10% 1.10% 0.85% 0.60%
- ------------------------------------------------------------------------------------
2025 Fund
- ------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.51 $5.51 $4.26 $3.01
- ------------------------------------------------------------------------------------
Ending value (after
expenses) $1,023.06 $1,019.34 $1,019.34 $1,020.58 $1,021.82
- ------------------------------------------------------------------------------------
Annualized expense ratio 0.35% 1.10% 1.10% 0.85% 0.60%
- ------------------------------------------------------------------------------------
2020 Fund
- ------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.51 $5.51 $4.26 $3.01
- ------------------------------------------------------------------------------------
Ending value (after
expenses) $1,023.06 $1,019.34 $1,019.34 $1,020.58 $1,021.82
- ------------------------------------------------------------------------------------
Annualized expense ratio 0.35% 1.10% 1.10% 0.85% 0.60%
- ------------------------------------------------------------------------------------
2015 Fund
- ------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.51 $5.51 $4.26 $3.01
- ------------------------------------------------------------------------------------
Ending value (after
expenses) $1,023.06 $1,019.34 $1,019.34 $1,020.58 $1,021.82
- ------------------------------------------------------------------------------------
Annualized expense ratio 0.35% 1.10% 1.10% 0.85% 0.60%
- ------------------------------------------------------------------------------------
2010 Fund
- ------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.51 $5.51 $4.26 $3.01
- ------------------------------------------------------------------------------------
Ending value (after
expenses) $1,023.06 $1,019.34 $1,019.34 $1,020.58 $1,021.82
- ------------------------------------------------------------------------------------
Annualized expense ratio 0.35% 1.10% 1.10% 0.85% 0.60%
- ------------------------------------------------------------------------------------
Maturity Fund
- ------------------------------------------------------------------------------------
Expenses paid per
$1,000* $1.76 $5.51 $5.51 $4.26 $3.01
- ------------------------------------------------------------------------------------
Ending value (after
expenses) $1,023.06 $1,019.34 $1,019.34 $1,020.58 $1,021.82
- ------------------------------------------------------------------------------------
Annualized expense ratio 0.35% 1.10% 1.10% 0.85% 0.60%
- ------------------------------------------------------------------------------------
* 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 7/31/05
(except the 2050 Fund, which commenced operations on May 2, 2005). 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 then
dividing that result by the number of days in the year.
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.
- ----------------------------------------------------------------------------
Fund manager compensation
The total 2004 fund manager compensation that is attributable to the
RetirementReady Funds is approximately $250,000. This amount includes a
portion of 2004 compensation paid by Putnam Management to the fund
managers assigned to the fund as of July 31, 2005, 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 2004 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 2004, the calculation reflects annualized 2004
compensation or an estimate of 2005 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 Opportunities 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 Opportunities Fund.
Jeffrey Knight, Robert Kea, and Robert Schoen may also manage other
accounts and variable trust funds advised by Putnam Management or an
affiliate.
- ----------------------------------------------------------------------------
Fund ownership
Your fund's Portfolio Leader and Portfolio Members, as well as the members
of Putnam's Executive Board, each invest in one or more of the six mutual
funds that underlie the Putnam RetirementReady Funds.
- ----------------------------------------------------------------------------
Changes in your fund's Portfolio Leader and Portfolio Members
Your fund's Portfolio Leader and Portfolio Members did not change during
the period ended July 31, 2005. After the close of the period, however,
Bruce MacDonald left the management team.
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 3.50% for class M shares (since reduced to 3.25%).
Contingent deferred sales charge (CDSC) is 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
sales charge on redemption (except on certain redemptions of shares
bought without an initial sales charge).
Class B shares may be subject to a sales charge upon redemption.
Class C shares are not subject to an initial sales charge and are subject
to a contingent deferred sales charge 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 sales charge on redemption (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.
- ----------------------------------------------------------------------------
Comparative indexes
JP Morgan 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 Index is an unmanaged index of the 1,000 largest companies in
the Russell 3000 Index.
Russell 2000 Index is an unmanaged index of the 2,000 smallest companies
in the Russell 3000 Index.
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.
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 beginning in March and
ending in June 2005, the Contract Committee met five 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
information 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, 2005.
This approval was based on the following conclusions:
* That the fee schedule currently in effect for your fund represents
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 represents 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.
- ----------------------------------------------------------------------------
Model fee schedules and categories; total expenses
The Trustees' review of the management fees and total expenses of the
Putnam funds focused on three major themes:
* Consistency. The Trustees, working in cooperation with Putnam
Management, have developed and implemented a series of model fee
schedules for the Putnam funds designed to ensure that each fund's
management fee is consistent with the fees for similar funds in the
Putnam family of funds and compares favorably with fees paid by
competitive funds sponsored by other investment advisers. Under this
approach, each Putnam fund is assigned to one of several fee categories
based on a combination of factors, including competitive fees
and perceived difficulty of management, and a common fee schedule is
implemented for all funds in a given fee category. The Trustees reviewed
the management fee currently in effect for your fund and concluded that no
changes should be made in the fund's current fee schedule at this time.
* Competitiveness. The Trustees also 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 first percentile in management fees and
in the first percentile in total expenses (less any applicable 12b-1 fees)
as of December 31, 2004 (the first percentile being the least expensive
funds and the 100th percentile being the most expensive funds). (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.) 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. They noted that such expense ratio increases 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 2006. The Trustees expressed their
intention to monitor this information closely to ensure that fees and
expenses of the Putnam funds continue to meet evolving competitive
standards.
* Economies of scale. The Trustees concluded that the management fee
currently in effect for your fund represents an appropriate sharing of
economies of scale at current asset levels. The Trustees examined the
existing breakpoint structure of the Putnam funds' management fees in
light of competitive industry practices. The Trustees considered various
possible modifications to the Putnam Funds' current breakpoint structure,
but ultimately concluded that the current breakpoint structure continues
to serve the interests of fund shareholders. Accordingly, the Trustees
continue to believe that the fee schedules currently in effect for the
funds represent an appropriate sharing of economies of scale at current
asset levels. The Trustees noted that significant redemptions in many
Putnam funds, together with significant changes in the cost structure of
Putnam Management, have altered the economics of Putnam Management's
business in significant ways. In view of these changes, the Trustees
intend to consider whether a greater sharing of the economies of scale by
fund shareholders would be appropriate if and when aggregate assets in the
Putnam funds begin to experience meaningful growth.
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.
- ------------------------------------------------------------------------------
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 funds'
investment process and performance by the work of 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
guarantee 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 the 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 continued to
discuss 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. The Trustees indicated their intention to continue to
monitor performance trends to assess the effectiveness of these changes
and to evaluate whether additional remedial changes are warranted.
As a general matter, the Trustees believe that cooperative efforts between
the Trustees and Putnam Management represent the most effective way to
address investment performance problems. The Trustees believe 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 believe 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.
- ------------------------------------------------------------------------------
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 principally benefits
related to brokerage and soft-dollar allocations, whereby a portion of the
commissions paid by a fund for brokerage is earmarked to pay for research
services that may be utilized by a fund's investment adviser. The Trustees
believe that soft-dollar credits and other potential benefits associated
with the allocation of fund brokerage, which pertains mainly to funds
investing in equity securities, represent assets of the funds that should
be used for the benefit of fund shareholders. This area has been marked by
significant change in recent years. In July 2003, acting upon the Contract
Committee's recommendation, the Trustees directed that allocations of
brokerage to reward firms that sell fund shares be discontinued no later
than December 31, 2003. In addition, commencing in 2004, the allocation of
brokerage commissions by Putnam Management to acquire research services
from third-party service providers has been significantly reduced, and
continues at a modest level only to acquire research that is customarily
not available for cash. The Trustees will continue to monitor the
allocation of the funds' brokerage to ensure that the principle of "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 mutual
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 mutual funds 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 have not relied on such comparisons to any significant
extent in concluding that the management fees paid by your fund are
reasonable.
Other information for shareholders
- ------------------------------------------------------------------------------
Putnam's policy on confidentiality
In order to conduct business with our shareholders, we must obtain certain
personal information such as account holders' addresses, telephone
numbers, Social Security numbers, and the names of their financial
advisors. We use this information to assign an account number and to help
us maintain accurate records of transactions and account balances. It is
our policy to protect the confidentiality of your information, whether or
not you currently own shares of our funds, and in particular, not to sell
information about you or your accounts to outside marketing firms. We have
safeguards in place designed to prevent unauthorized access to our
computer systems and procedures to protect personal information from
unauthorized use. Under certain circumstances, we share this information
with outside vendors who provide services to us, such as mailing and proxy
solicitation. In those cases, the service providers enter into
confidentiality agreements with us, and we provide only the information
necessary to process transactions and perform other services related to
your account. We may also share this information with our Putnam
affiliates to service your account or provide you with information about
other Putnam products or services. It is also our policy to share account
information with your financial advisor, if you've listed one on your
Putnam account. If you would like clarification about our confidentiality
policies or have any questions or concerns, please don't hesitate to
contact us at 1-800-225-1581, Monday through Friday, 8:30 a.m. to 7:00
p.m., or Saturdays from 9:00 a.m. to 5:00 p.m. Eastern Time.
- ------------------------------------------------------------------------------
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,
2005, 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 fund will file a complete schedule of its portfolio holdings with the
SEC for the first and third quarters of each fiscal year on Forms N-Q.
Shareholders may obtain the fund's Forms N-Q on the SEC's Web site at
www.sec.gov. In addition, the fund's 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.
Financial statements
- ------------------------------------------------------------------------------
A guide to financial statements
These sections of the report, as well as the accompanying Notes, preceded
by the Report of Independent Registered Public Accounting Firm, 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 net assets allocated to
remarketed 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 year.
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.
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. For open-end funds, a separate
table is provided for each share class.
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders of
Putnam RetirementReady Funds:
In our opinion, the accompanying statement of assets and liabilities,
including the fund's portfolio, and the related statements of operations
and of changes in net assets and the financial highlights present fairly,
in all material respects, the financial position of Putnam RetirementReady
Funds (the "trust") at July 31, 2005, and the results of its operations,
the changes in its net assets and the financial highlights for each of the
periods indicated, in conformity with accounting principles generally
accepted in the United States of America. These financial statements and
financial highlights (hereafter referred to as "financial statements") are
the responsibility of the trust's management; our responsibility is to
express an opinion on these financial statements based on our audit. We
conducted our audit of these financial statements in accordance with the
standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audit, which included
confirmation of investments owned at July 31, 2005, by correspondence with
the transfer agent, provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 8, 2005
The fund's portfolio 7/31/05
- -------------------------------------------------------------------------------------------------
2050 Fund
- -------------------------------------------------------------------------------------------------
Equity Funds* 95.2% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund (Class Y) 5,216 $67,910
Putnam Fund for Growth and Income (Class Y) 5,561 110,942
Putnam International Equity Fund (Class Y) 5,515 134,189
Putnam Voyager Fund (Class Y) 6,349 112,560
- -------------------------------------------------------------------------------------------------
Total Equity Funds (cost $414,268) $425,601
- -------------------------------------------------------------------------------------------------
Fixed Income Funds* 4.8% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Income Fund (Class Y) 2,514 $17,272
Putnam Money Market Fund (Class A) 4,311 4,311
- -------------------------------------------------------------------------------------------------
Total Fixed Income Funds (cost $21,688) $21,583
- -------------------------------------------------------------------------------------------------
Total Investments
- -------------------------------------------------------------------------------------------------
Total investments (cost $435,956) $447,184
* Percentages indicated are based on net assets of $447,078.
- -------------------------------------------------------------------------------------------------
2045 Fund
- -------------------------------------------------------------------------------------------------
Equity Funds* 95.0% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund (Class Y) 189,026 $2,461,112
Putnam Fund for Growth and Income (Class Y) 199,782 3,985,659
Putnam International Equity Fund (Class Y) 197,086 4,795,096
Putnam Voyager Fund (Class Y) 228,671 4,054,338
- -------------------------------------------------------------------------------------------------
Total Equity Funds (cost $14,589,870) $15,296,205
- -------------------------------------------------------------------------------------------------
Fixed Income Funds* 4.8% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Income Fund (Class Y) 89,232 $613,026
Putnam Money Market Fund (Class A) 158,338 158,338
- -------------------------------------------------------------------------------------------------
Total Fixed Income Funds (cost $772,621) $771,364
- -------------------------------------------------------------------------------------------------
Total Investments
- -------------------------------------------------------------------------------------------------
Total Investments (cost $15,362,491) $16,067,569
* Percentages indicated are based on net assets of $16,098,943.
- -------------------------------------------------------------------------------------------------
2040 Fund
- -------------------------------------------------------------------------------------------------
Equity Funds* 94.1% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund (Class Y) 249,855 $3,253,118
Putnam Fund for Growth and Income (Class Y) 264,248 5,271,745
Putnam International Equity Fund (Class Y) 251,958 6,130,134
Putnam Voyager Fund (Class Y) 302,297 5,359,734
- -------------------------------------------------------------------------------------------------
Total Equity Funds (cost $18,930,536) $20,014,731
- -------------------------------------------------------------------------------------------------
Fixed Income Funds* 5.7% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Income Fund (Class Y) 147,679 $1,014,555
Putnam Money Market Fund (Class A) 206,159 206,159
- -------------------------------------------------------------------------------------------------
Total Fixed Income Funds (cost $1,223,222) $1,220,714
- -------------------------------------------------------------------------------------------------
Total Investments
- -------------------------------------------------------------------------------------------------
Total Investments (cost $20,153,758) $21,235,445
* Percentages indicated are based on net assets of $21,263,167.
- -------------------------------------------------------------------------------------------------
2035 Fund
- -------------------------------------------------------------------------------------------------
Equity Funds* 89.4% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund (Class Y) 463,081 $6,029,311
Putnam Fund for Growth and Income (Class Y) 503,748 10,049,765
Putnam International Equity Fund (Class Y) 465,881 11,334,873
Putnam Voyager Fund (Class Y) 576,332 10,218,369
- -------------------------------------------------------------------------------------------------
Total Equity Funds (cost $35,393,631) $37,632,318
- -------------------------------------------------------------------------------------------------
Fixed Income Funds* 10.6% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Income Fund (Class Y) 469,157 $ 3,223,106
Putnam Money Market Fund (Class A) 1,220,203 1,220,203
- -------------------------------------------------------------------------------------------------
Total Fixed Income Funds (cost $4,453,475) $4,443,309
- -------------------------------------------------------------------------------------------------
Total Investments
- -------------------------------------------------------------------------------------------------
Total Investments (cost $39,847,106) $42,075,627
* Percentages indicated are based on net assets of $42,092,987.
- -------------------------------------------------------------------------------------------------
2030 Fund
- -------------------------------------------------------------------------------------------------
Equity Funds* 84.6% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund (Class Y) 721,144 $9,389,299
Putnam Fund for Growth and Income (Class Y) 809,102 16,141,591
Putnam International Equity Fund (Class Y) 722,531 17,579,174
Putnam Voyager Fund (Class Y) 925,888 16,415,997
- -------------------------------------------------------------------------------------------------
Total Equity Funds (cost $55,987,909) $59,526,061
- -------------------------------------------------------------------------------------------------
Fixed Income Funds* 15.4% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Income Fund (Class Y) 1,178,659 $8,097,389
Putnam Money Market Fund (Class A) 2,726,160 2,726,160
- -------------------------------------------------------------------------------------------------
Total Fixed Income Funds (cost $10,849,601) $10,823,549
- -------------------------------------------------------------------------------------------------
Total Investments
- -------------------------------------------------------------------------------------------------
Total Investments (cost $66,837,510) $70,349,610
* Percentages indicated are based on net assets of $70,351,602.
- -------------------------------------------------------------------------------------------------
2025 Fund
- -------------------------------------------------------------------------------------------------
Equity Funds* 79.8% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund (Class Y) 1,039,316 $13,531,889
Putnam Fund for Growth and Income (Class Y) 1,208,784 24,115,238
Putnam International Equity Fund (Class Y) 1,038,679 25,271,072
Putnam Voyager Fund (Class Y) 1,383,135 24,522,989
- -------------------------------------------------------------------------------------------------
Total Equity Funds (cost $81,511,509) $87,441,188
- -------------------------------------------------------------------------------------------------
Fixed Income Funds* 20.3% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Income Fund (Class Y) 2,301,809 $15,813,429
Putnam Money Market Fund (Class A) 6,391,988 6,391,988
- -------------------------------------------------------------------------------------------------
Total Fixed Income Funds (cost $22,261,802) $22,205,417
- -------------------------------------------------------------------------------------------------
Total Investments
- -------------------------------------------------------------------------------------------------
Total Investments (cost $103,773,311) $109,646,605
* Percentages indicated are based on net assets of $109,627,632.
- -------------------------------------------------------------------------------------------------
2020 Fund
- -------------------------------------------------------------------------------------------------
Equity Funds* 71.0% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund (Class Y) 1,050,975 $13,683,699
Putnam Fund for Growth and Income (Class Y) 1,272,368 25,383,747
Putnam International Equity Fund (Class Y) 846,473 20,594,699
Putnam Voyager Fund (Class Y) 1,456,148 25,817,458
- -------------------------------------------------------------------------------------------------
Total Equity Funds (cost $79,862,068) $85,479,603
- -------------------------------------------------------------------------------------------------
Fixed Income Funds* 29.0% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Income Fund (Class Y) 3,552,321 $24,404,452
Putnam Money Market Fund (Class A) 10,582,495 10,582,495
- -------------------------------------------------------------------------------------------------
Total Fixed Income Funds (cost $35,063,901) $34,986,947
- -------------------------------------------------------------------------------------------------
Total Investments
- -------------------------------------------------------------------------------------------------
Total Investments (cost $114,925,969) $120,466,550
* Percentages indicated are based on net assets of $120,439,782.
- -------------------------------------------------------------------------------------------------
2015 Fund
- -------------------------------------------------------------------------------------------------
Equity Funds* 58.1% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund (Class Y) 1,124,481 $14,640,749
Putnam Fund for Growth and Income (Class Y) 1,283,333 25,602,503
Putnam International Equity Fund (Class Y) 644,473 15,680,026
Putnam Voyager Fund (Class Y) 1,468,822 26,042,218
- -------------------------------------------------------------------------------------------------
Total Equity Funds (cost $75,859,891) $81,965,496
- -------------------------------------------------------------------------------------------------
Fixed Income Funds* 41.9% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Income Fund (Class Y) 5,770,775 $39,645,227
Putnam Money Market Fund (Class A) 19,389,803 19,389,803
- -------------------------------------------------------------------------------------------------
Total Fixed Income Funds (cost $59,179,243) $59,035,030
- -------------------------------------------------------------------------------------------------
Total Investments
- -------------------------------------------------------------------------------------------------
Total Investments (cost $135,039,134) $141,000,526
* Percentages indicated are based on net assets of $140,958,694.
- -------------------------------------------------------------------------------------------------
2010 Fund
- -------------------------------------------------------------------------------------------------
Equity Funds* 38.1% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund (Class Y) 472,368 $6,150,230
Putnam Fund for Growth and Income (Class Y) 556,372 11,099,629
Putnam International Equity Fund (Class Y) 140,685 3,422,872
Putnam Voyager Fund (Class Y) 636,672 11,288,190
- -------------------------------------------------------------------------------------------------
Total Equity Funds (cost $29,727,214) $31,960,921
- -------------------------------------------------------------------------------------------------
Fixed Income Funds* 61.9% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Income Fund (Class Y) 4,660,686 $32,018,910
Putnam Money Market Fund (Class A) 19,965,721 19,965,721
- -------------------------------------------------------------------------------------------------
Total Fixed Income Funds (cost $52,075,305) $51,984,631
- -------------------------------------------------------------------------------------------------
Total Investments
- -------------------------------------------------------------------------------------------------
Total Investments (cost $81,802,519) $83,945,552
* Percentages indicated are based on net assets of $83,937,917.
- -------------------------------------------------------------------------------------------------
Maturity Fund
- -------------------------------------------------------------------------------------------------
Equity Funds* 25.8% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund (Class Y) 191,791 $2,497,118
Putnam Fund for Growth and Income (Class Y) 243,686 4,861,537
Putnam International Equity Fund (Class Y) -- --
Putnam Voyager Fund (Class Y) 278,601 4,939,600
- -------------------------------------------------------------------------------------------------
Total Equity Funds (cost $11,551,919) $12,298,255
- -------------------------------------------------------------------------------------------------
Fixed Income Funds* 74.1% Shares Value
- -------------------------------------------------------------------------------------------------
Putnam Income Fund (Class Y) 3,068,734 $21,082,202
Putnam Money Market Fund (Class A) 14,237,266 14,237,266
- -------------------------------------------------------------------------------------------------
Total Fixed Income Funds (cost $35,359,686) $35,319,468
- -------------------------------------------------------------------------------------------------
Total Investments
- -------------------------------------------------------------------------------------------------
Total Investments (cost $46,911,605) $47,617,723
* Percentages indicated are based on net assets of $47,647,815.
Statement of assets and liabilities 7/31/05
- -------------------------------------------------------------------------------------------------
ASSETS 2050 Fund 2045 Fund
- -------------------------------------------------------------------------------------------------
Investments in affiliated underlying Putnam Funds, at value
(Notes 1 and 6) $447,184 $16,067,569
- -------------------------------------------------------------------------------------------------
Interest receivable 6 352
- -------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 36,165 510,868
- -------------------------------------------------------------------------------------------------
Receivable for securities sold 4,902 379,160
- -------------------------------------------------------------------------------------------------
Unamortized offering costs (Note 1) 57,573 21,928
- -------------------------------------------------------------------------------------------------
Receivable from Manager (Note 2) 19,773 15,837
- -------------------------------------------------------------------------------------------------
Total assets 565,603 16,995,714
- -------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------
Payable for shares of the fund redeemed 3,814 379,160
- -------------------------------------------------------------------------------------------------
Payable for securities purchased 37,259 511,207
- -------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 76 1,654
- -------------------------------------------------------------------------------------------------
Payable for offering cost (Note 1) 76,976 --
- -------------------------------------------------------------------------------------------------
Other accrued expenses 400 4,750
- -------------------------------------------------------------------------------------------------
Total liabilities 118,525 896,771
- -------------------------------------------------------------------------------------------------
Net assets $447,078 $16,098,943
- -------------------------------------------------------------------------------------------------
Represented by
- -------------------------------------------------------------------------------------------------
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4) $432,811 $15,027,598
- -------------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 130 13,433
- -------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments (Note 1) 2,909 352,834
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 11,228 705,078
- -------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to capital
outstanding $447,078 $16,098,943
- -------------------------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE 2050 Fund 2045 Fund
- -------------------------------------------------------------------------------------------------
Computation of net asset value and offering price Class A
Net Assets $273,519 $8,136,208
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 5,032 114,999
- -------------------------------------------------------------------------------------------------
Net asset value $54.36 $70.75
- -------------------------------------------------------------------------------------------------
Offering price per class A share (front-end sales charge of
5.25%) $57.37 $74.67
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class B
Net Assets $31,489 $17,155
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 580 249
- -------------------------------------------------------------------------------------------------
Net asset value $54.25 $68.83
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class C
Net Assets $4,249 $9,636
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 78 140
- -------------------------------------------------------------------------------------------------
Net asset value $54.25 $68.84
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class M
Net Assets $3,213 $8,557
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 59 124
- -------------------------------------------------------------------------------------------------
Net asset value $54.28 $68.94
- -------------------------------------------------------------------------------------------------
Offering price per class M share (front-end sales charge of
3.25%) $56.10 $71.26
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class R
Net Assets $1,086 $1,123
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 20 16
- -------------------------------------------------------------------------------------------------
Net asset value $54.32 $69.06
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class Y
Net Assets $133,522 $7,926,264
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 2,455 103,100
- -------------------------------------------------------------------------------------------------
Net asset value $54.38 $76.88
- -------------------------------------------------------------------------------------------------
Cost of investments (Note 1) $435,956 $15,362,491
- -------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------------------------
ASSETS 2040 Fund 2035 Fund
- -------------------------------------------------------------------------------------------------
Investments in affiliated underlying Putnam Funds, at value
(Notes 1 and 6) $21,235,445 $42,075,627
- -------------------------------------------------------------------------------------------------
Interest receivable 460 2,751
- -------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 986,753 1,667,789
- -------------------------------------------------------------------------------------------------
Receivable for securities sold 501,469 807,106
- -------------------------------------------------------------------------------------------------
Unamortized offering costs (Note 1) 21,928 21,928
- -------------------------------------------------------------------------------------------------
Receivable from Manager (Note 2) 14,764 13,161
- -------------------------------------------------------------------------------------------------
Total assets 22,760,819 44,588,362
- -------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------
Payable for shares of the fund redeemed 501,469 807,106
- -------------------------------------------------------------------------------------------------
Payable for securities purchased 987,197 1,670,447
- -------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 2,427 4,274
- -------------------------------------------------------------------------------------------------
Other accrued expenses 6,559 13,548
- -------------------------------------------------------------------------------------------------
Total liabilities 1,497,652 2,495,375
- -------------------------------------------------------------------------------------------------
Net assets $21,263,167 $42,092,987
- -------------------------------------------------------------------------------------------------
Represented by
- -------------------------------------------------------------------------------------------------
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4) $19,704,777 $38,978,122
- -------------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 26,478 94,887
- -------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments (Note 1) 450,225 791,457
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 1,081,687 2,228,521
- -------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to capital
outstanding $21,263,167 $42,092,987
- -------------------------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE 2040 Fund 2035 Fund
- -------------------------------------------------------------------------------------------------
Computation of net asset value and offering price Class A
Net Assets $12,229,614 $21,274,040
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 172,708 306,110
- -------------------------------------------------------------------------------------------------
Net asset value $70.81 $69.50
- -------------------------------------------------------------------------------------------------
Offering price per class A share (front-end sales charge of
5.25%) $74.73 $73.35
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class B
Net Assets $37,375 $66,737
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 543 991
- -------------------------------------------------------------------------------------------------
Net asset value $68.82 $67.35
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class C
Net Assets $1,118 $1,112
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 16 16
- -------------------------------------------------------------------------------------------------
Net asset value $68.83 $67.41
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class M
Net Assets $11,283 $20,477
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 164 304
- -------------------------------------------------------------------------------------------------
Net asset value $68.88 $67.47
- -------------------------------------------------------------------------------------------------
Offering price per class M share (front-end sales charge of
3.25%) $71.19 $69.74
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class R
Net Assets $1,122 $1,116
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 16 17
- -------------------------------------------------------------------------------------------------
Net asset value $69.04 $67.61
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class Y
Net Assets $8,982,655 $20,729,505
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 117,153 275,022
- -------------------------------------------------------------------------------------------------
Net asset value $76.67 $75.37
- -------------------------------------------------------------------------------------------------
Cost of investments (Note 1) $20,153,758 $39,847,106
- -------------------------------------------------------------------------------------------------
ASSETS 2030 Fund 2025 Fund
- -------------------------------------------------------------------------------------------------
Investments in affiliated underlying Putnam Funds, at value
(Notes 1 and 6) $70,349,610 $109,646,605
- -------------------------------------------------------------------------------------------------
Interest receivable 6,195 14,426
- -------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 2,497,833 4,097,346
- -------------------------------------------------------------------------------------------------
Receivable for securities sold 835,687 1,312,167
- -------------------------------------------------------------------------------------------------
Unamortized offering costs (Note 1) 21,928 21,928
- -------------------------------------------------------------------------------------------------
Receivable from Manager (Note 2) 8,471 3,552
- -------------------------------------------------------------------------------------------------
Total assets 73,719,724 115,096,024
- -------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------
Payable for shares of the fund redeemed 835,687 1,312,167
- -------------------------------------------------------------------------------------------------
Payable for securities purchased 2,503,822 4,111,285
- -------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 6,756 9,807
- -------------------------------------------------------------------------------------------------
Other accrued expenses 21,857 35,133
- -------------------------------------------------------------------------------------------------
Total liabilities 3,368,122 5,468,392
- -------------------------------------------------------------------------------------------------
Net assets $70,351,602 $109,627,632
- -------------------------------------------------------------------------------------------------
Represented by
- -------------------------------------------------------------------------------------------------
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4) $65,479,256 $102,069,023
- -------------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 212,753 420,251
- -------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments (Note 1) 1,147,493 1,265,064
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 3,512,100 5,873,294
- -------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to capital
outstanding $70,351,602 $109,627,632
- -------------------------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE 2030 Fund 2025 Fund
- -------------------------------------------------------------------------------------------------
Computation of net asset value and offering price Class A
Net Assets $32,719,751 $48,529,216
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 476,585 671,625
- -------------------------------------------------------------------------------------------------
Net asset value $68.65 $72.26
- -------------------------------------------------------------------------------------------------
Offering price per class A share (front-end sales charge of
5.25%) $72.45 $76.26
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class B
Net Assets $225,115 $211,313
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 3,357 3,021
- -------------------------------------------------------------------------------------------------
Net asset value $67.07 $69.94
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class C
Net Assets $22,289 $45,037
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 332 643
- -------------------------------------------------------------------------------------------------
Net asset value $67.06 $70.00
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class M
Net Assets $43,057 $172,519
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 641 2,462
- -------------------------------------------------------------------------------------------------
Net asset value $67.14 $70.06
- -------------------------------------------------------------------------------------------------
Offering price per class M share (front-end sales charge of
3.25%) $69.40 $72.41
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class R
Net Assets $1,110 $1,204
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 16 17
- -------------------------------------------------------------------------------------------------
Net asset value $67.27 $70.21
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class Y
Net Assets $37,340,280 $60,668,343
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 505,248 836,767
- -------------------------------------------------------------------------------------------------
Net asset value $73.90 $72.50
- -------------------------------------------------------------------------------------------------
Cost of investments (Note 1) $66,837,510 $103,773,311
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------------------------
ASSETS 2020 Fund 2015 Fund
- -------------------------------------------------------------------------------------------------
Investments in affiliated underlying Putnam Funds, at value
(Notes 1 and 6) $120,466,550 $141,000,526
- -------------------------------------------------------------------------------------------------
Interest receivable 24,299 44,463
- -------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 4,395,222 3,058,215
- -------------------------------------------------------------------------------------------------
Receivable for securities sold 2,121,023 1,156,753
- -------------------------------------------------------------------------------------------------
Unamortized offering costs (Note 1) 21,928 21,928
- -------------------------------------------------------------------------------------------------
Receivable from Manager (Note 2) 287 --
- -------------------------------------------------------------------------------------------------
Total assets 127,029,309 145,281,885
- -------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------
Payable for shares of the fund redeemed 2,121,024 1,156,753
- -------------------------------------------------------------------------------------------------
Payable for securities purchased 4,418,709 3,101,181
- -------------------------------------------------------------------------------------------------
Payable for compensation of Manager -- 7,527
- -------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 11,098 11,771
- -------------------------------------------------------------------------------------------------
Other accrued expenses 38,696 45,959
- -------------------------------------------------------------------------------------------------
Total liabilities 6,589,527 4,323,191
- -------------------------------------------------------------------------------------------------
Net assets $120,439,782 $140,958,694
- -------------------------------------------------------------------------------------------------
Represented by
- -------------------------------------------------------------------------------------------------
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4) $112,889,655 $132,824,198
- -------------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 618,822 981,679
- -------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments (Note 1) 1,390,724 1,191,425
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 5,540,581 5,961,392
- -------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to capital
outstanding $120,439,782 $140,958,694
- -------------------------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE 2020 Fund 2015 Fund
- -------------------------------------------------------------------------------------------------
Computation of net asset value and offering price Class A
Net Assets $53,179,656 $56,456,813
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 805,076 839,154
- -------------------------------------------------------------------------------------------------
Net asset value $66.06 $67.28
- -------------------------------------------------------------------------------------------------
Offering price per class A share (front-end sales charge of
5.25%) $69.72 $71.01
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class B
Net Assets $240,671 $165,125
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 3,706 2,492
- -------------------------------------------------------------------------------------------------
Net asset value $64.94 $66.27
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class C
Net Assets $60,712 $90,148
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 935 1,361
- -------------------------------------------------------------------------------------------------
Net asset value $64.97 $66.25
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class M
Net Assets $275,671 $142,438
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 4,238 2,146
- -------------------------------------------------------------------------------------------------
Net asset value $65.05 $66.38
- -------------------------------------------------------------------------------------------------
Offering price per class M share (front-end sales charge of
3.25%) $67.24 $68.61
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class R
Net Assets $1,093 $1,077
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 17 16
- -------------------------------------------------------------------------------------------------
Net asset value $65.23 $66.54
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class Y
Net Assets $66,681,979 $84,103,093
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 945,280 1,246,335
- -------------------------------------------------------------------------------------------------
Net asset value $70.54 $67.48
- -------------------------------------------------------------------------------------------------
Cost of investments (Note 1) $114,925,969 $135,039,134
The accompanying notes are an integral part of these financial statements.
- -------------------------------------------------------------------------------------------------
ASSETS 2010 Fund Maturity Fund
- -------------------------------------------------------------------------------------------------
Investments in affiliated underlying Putnam Funds, at value
(Notes 1 and 6) $83,945,552 $47,617,723
- -------------------------------------------------------------------------------------------------
Interest receivable 45,460 30,485
- -------------------------------------------------------------------------------------------------
Receivable for shares of the fund sold 3,164,727 4,064,790
- -------------------------------------------------------------------------------------------------
Receivable for securities sold 1,531,875 386,134
- -------------------------------------------------------------------------------------------------
Unamortized offering costs (Note 1) 21,928 32,863
- -------------------------------------------------------------------------------------------------
Receivable from Manager (Note 2) 5,808 16,169
- -------------------------------------------------------------------------------------------------
Total assets 88,715,350 52,148,164
- -------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------
Payable for shares of the fund redeemed 1,531,875 386,134
- -------------------------------------------------------------------------------------------------
Payable for securities purchased 3,208,506 4,094,246
- -------------------------------------------------------------------------------------------------
Payable for distribution fees (Note 2) 7,960 4,731
- -------------------------------------------------------------------------------------------------
Other accrued expenses 29,092 15,238
- -------------------------------------------------------------------------------------------------
Total liabilities 4,777,433 4,500,349
- -------------------------------------------------------------------------------------------------
Net assets $83,937,917 $47,647,815
- -------------------------------------------------------------------------------------------------
Represented by
- -------------------------------------------------------------------------------------------------
Paid-in-capital (unlimited shares authorized) (Notes 1 and 4) $80,383,515 $46,637,345
- -------------------------------------------------------------------------------------------------
Undistributed net investment income (Note 1) 827,162 62,166
- -------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments (Note 1) 584,207 242,186
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 2,143,033 706,118
- -------------------------------------------------------------------------------------------------
Total -- Representing net assets applicable to capital
outstanding $83,937,917 $47,647,815
- -------------------------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE 2010 Fund Maturity Fund
- -------------------------------------------------------------------------------------------------
Computation of net asset value and offering price Class A
Net Assets $39,291,307 $25,731,826
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 657,890 447,408
- -------------------------------------------------------------------------------------------------
Net asset value $59.72 $57.51
- -------------------------------------------------------------------------------------------------
Offering price per class A share (front-end sales charge of
5.25%) $63.03 $60.70
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class B
Net Assets $83,948 $124,441
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 1,433 2,163
- -------------------------------------------------------------------------------------------------
Net asset value $58.59 $57.54
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class C
Net Assets $14,605 $1,036
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 249 18
- -------------------------------------------------------------------------------------------------
Net asset value $58.62 $57.56
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class M
Net Assets $54,514 $2,087
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 928 36
- -------------------------------------------------------------------------------------------------
Net asset value $58.73 $57.54
- -------------------------------------------------------------------------------------------------
Offering price per class M share (front-end sales charge of
3.25%) $60.70 $59.47
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class R
Net Assets $1,054 $1,040
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 18 18
- -------------------------------------------------------------------------------------------------
Net asset value $58.83 $57.56
- -------------------------------------------------------------------------------------------------
Computation of net asset value Class Y
Net Assets $44,492,489 $21,787,385
- -------------------------------------------------------------------------------------------------
Number of shares outstanding 713,641 377,956
- -------------------------------------------------------------------------------------------------
Net asset value $62.35 $57.65
- -------------------------------------------------------------------------------------------------
Cost of investments (Note 1) $81,802,519 $46,911,605
The accompanying notes are an integral part of these financial statements.
Statement of operations
For the period November 1, 2004 (commencement of operations) to July 31,
2005
- -----------------------------------------------------------------------------------------------
INVESTMENT INCOME 2050 Fund* 2045 Fund
- -----------------------------------------------------------------------------------------------
Income distributions from underlying Putnam Funds $131 $82,586
- -----------------------------------------------------------------------------------------------
Expenses (Note 2)
- -----------------------------------------------------------------------------------------------
Compensation of Manager 20 4,482
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class A 51 10,032
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class B 73 56
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class C 10 51
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class M 5 32
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class R 1 4
- -----------------------------------------------------------------------------------------------
Audit fees 35 2,704
- -----------------------------------------------------------------------------------------------
Registration fees 58 1,777
- -----------------------------------------------------------------------------------------------
Other fees 318 2,966
- -----------------------------------------------------------------------------------------------
Amortization of offering costs (Note 1) 19,403 65,038
- -----------------------------------------------------------------------------------------------
Fees waived and reimbursed by Manager (19,793) (68,003)
- -----------------------------------------------------------------------------------------------
Total expenses 181 19,139
- -----------------------------------------------------------------------------------------------
Net investment income (loss) (50) 63,447
- -----------------------------------------------------------------------------------------------
Net realized gain on sale of underlying Putnam Funds shares 2,909 352,834
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of underlying Putnam Funds
shares during the period 11,228 705,078
- -----------------------------------------------------------------------------------------------
Net gain on investments 14,137 1,057,912
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $14,087 $1,121,359
* Commencement of operations May 2, 2005.
The accompanying notes are an integral part of these financial statements.
- -----------------------------------------------------------------------------------------------
INVESTMENT INCOME 2040 Fund 2035 Fund
- -----------------------------------------------------------------------------------------------
Income distributions from underlying Putnam Funds $125,541 $291,695
- -----------------------------------------------------------------------------------------------
Expenses (Note 2)
- -----------------------------------------------------------------------------------------------
Compensation of Manager 6,270 12,933
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class A 14,903 27,052
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class B 157 248
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class C 8 8
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class M 44 79
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class R 4 4
- -----------------------------------------------------------------------------------------------
Audit fees 3,783 7,799
- -----------------------------------------------------------------------------------------------
Registration fees 2,328 4,598
- -----------------------------------------------------------------------------------------------
Other fees 2,900 4,159
- -----------------------------------------------------------------------------------------------
Amortization of offering costs (Note 1) 65,038 65,038
- -----------------------------------------------------------------------------------------------
Fees waived and reimbursed by Manager (67,778) (68,667)
- -----------------------------------------------------------------------------------------------
Total expenses 27,657 53,251
- -----------------------------------------------------------------------------------------------
Net investment income 97,884 238,444
- -----------------------------------------------------------------------------------------------
Net realized gain on sale of underlying Putnam Funds shares 450,225 791,457
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of underlying Putnam Funds
shares during the period 1,081,687 2,228,521
- -----------------------------------------------------------------------------------------------
Net gain on investments 1,531,912 3,019,978
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $1,629,796 $3,258,422
The accompanying notes are an integral part of these financial statements.
- -----------------------------------------------------------------------------------------------
INVESTMENT INCOME 2030 Fund 2025 Fund
- -----------------------------------------------------------------------------------------------
Income distributions from underlying Putnam Funds $494,961 $896,583
- -----------------------------------------------------------------------------------------------
Expenses (Note 2)
- -----------------------------------------------------------------------------------------------
Compensation of Manager 20,531 33,823
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class A 40,099 65,139
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class B 846 881
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class C 61 188
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class M 136 561
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class R 4 4
- -----------------------------------------------------------------------------------------------
Audit fees 12,381 20,392
- -----------------------------------------------------------------------------------------------
Registration fees 7,719 12,028
- -----------------------------------------------------------------------------------------------
Other fees 4,978 6,548
- -----------------------------------------------------------------------------------------------
Amortization of offering costs (Note 1) 65,038 65,038
- -----------------------------------------------------------------------------------------------
Fees waived and reimbursed by Manager (69,595) (70,180)
- -----------------------------------------------------------------------------------------------
Total expenses 82,198 134,422
- -----------------------------------------------------------------------------------------------
Net investment income 412,763 762,161
- -----------------------------------------------------------------------------------------------
Net realized gain on sale of underlying Putnam Funds shares 1,147,493 1,265,064
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of underlying Putnam Funds
shares during the period 3,512,100 5,873,294
- -----------------------------------------------------------------------------------------------
Net gain on investments 4,659,593 7,138,358
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $5,072,356 $7,900,519
The accompanying notes are an integral part of these financial statements.
- -----------------------------------------------------------------------------------------------
INVESTMENT INCOME 2020 Fund 2015 Fund
- -----------------------------------------------------------------------------------------------
Income distributions from underlying Putnam Funds $1,093,075 $1,520,955
- -----------------------------------------------------------------------------------------------
Expenses (Note 2)
- -----------------------------------------------------------------------------------------------
Compensation of Manager 37,398 45,099
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class A 71,623 79,129
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class B 802 335
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class C 253 262
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class M 865 460
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class R 4 4
- -----------------------------------------------------------------------------------------------
Audit fees 22,543 27,199
- -----------------------------------------------------------------------------------------------
Registration fees 13,302 15,649
- -----------------------------------------------------------------------------------------------
Other fees 6,037 5,630
- -----------------------------------------------------------------------------------------------
Amortization of offering costs (Note 1) 65,038 65,038
- -----------------------------------------------------------------------------------------------
Fees waived and reimbursed by Manager (69,521) (68,416)
- -----------------------------------------------------------------------------------------------
Total expenses 148,344 170,389
- -----------------------------------------------------------------------------------------------
Net investment income 944,731 1,350,566
- -----------------------------------------------------------------------------------------------
Net realized gain on sale of underlying Putnam Funds shares 1,390,724 1,191,425
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of underlying Putnam Funds
shares during the period 5,540,581 5,961,392
- -----------------------------------------------------------------------------------------------
Net gain on investments 6,931,305 7,152,817
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $7,876,036 $8,503,383
The accompanying notes are an integral part of these financial statements.
- -----------------------------------------------------------------------------------------------
INVESTMENT INCOME 2010 Fund Maturity Fund
- -----------------------------------------------------------------------------------------------
Income distributions from underlying Putnam Funds $1,122,703 $680,600
- -----------------------------------------------------------------------------------------------
Expenses (Note 2)
- -----------------------------------------------------------------------------------------------
Compensation of Manager 27,954 15,439
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class A 56,356 32,985
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class B 441 840
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class C 52 8
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class M 92 9
- -----------------------------------------------------------------------------------------------
Distribution fees -- Class R 4 4
- -----------------------------------------------------------------------------------------------
Audit fees 16,854 9,316
- -----------------------------------------------------------------------------------------------
Registration fees 9,371 5,501
- -----------------------------------------------------------------------------------------------
Other fees 4,806 2,002
- -----------------------------------------------------------------------------------------------
Amortization of offering costs (Note 1) 65,038 99,803
- -----------------------------------------------------------------------------------------------
Organizational cost (Note 1) -- 12,500
- -----------------------------------------------------------------------------------------------
Fees waived and reimbursed by Manager (68,114) (113,682)
- -----------------------------------------------------------------------------------------------
Total expenses 112,854 64,725
- -----------------------------------------------------------------------------------------------
Net investment income 1,009,849 615,875
- -----------------------------------------------------------------------------------------------
Net realized gain on sale of underlying Putnam Funds shares 584,207 242,186
- -----------------------------------------------------------------------------------------------
Net unrealized appreciation of underlying Putnam Funds
shares during the period 2,143,033 706,118
- -----------------------------------------------------------------------------------------------
Net gain on investments 2,727,240 948,304
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $3,737,089 $1,564,179
The accompanying notes are an integral part of these financial statements.
Statement of changes in net assets
For the period November 1, 2004 (commencement of operations) to July 31,
2005
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS 2050 Fund* 2045 Fund
- --------------------------------------------------------------------------------
Operations:
Net investment income (loss) $(50) $63,447
- --------------------------------------------------------------------------------
Net realized gain on underlying Putnam
Funds shares 2,909 352,834
- --------------------------------------------------------------------------------
Net unrealized appreciation on underlying
Putnam Funds shares 11,228 705,078
- --------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 14,087 1,121,359
- --------------------------------------------------------------------------------
Distributions to shareholders from
net investment income (Note 1)
- --------------------------------------------------------------------------------
Class A -- (26,219)
- --------------------------------------------------------------------------------
Class B -- (8)
- --------------------------------------------------------------------------------
Class C -- (8)
- --------------------------------------------------------------------------------
Class M -- (9)
- --------------------------------------------------------------------------------
Class R -- (9)
- --------------------------------------------------------------------------------
Class Y -- (33,627)
- --------------------------------------------------------------------------------
Increase from capital share transactions
(Note 4) 432,991 15,037,464
- --------------------------------------------------------------------------------
Total increase in net assets 447,078 16,098,943
- --------------------------------------------------------------------------------
Net assets
- --------------------------------------------------------------------------------
Beginning of period (Note 5) -- --
- --------------------------------------------------------------------------------
End of period $447,078 $16,098,943
- --------------------------------------------------------------------------------
Undistributed net investment income, end of
period $130 $13,433
* Commencement of operations May 2, 2005.
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS 2040 Fund 2035 Fund
- --------------------------------------------------------------------------------
Operations:
Net investment income $97,884 $238,444
- --------------------------------------------------------------------------------
Net realized gain on underlying Putnam
Funds shares 450,225 791,457
- --------------------------------------------------------------------------------
Net unrealized appreciation on underlying
Putnam Funds shares 1,081,687 2,228,521
- --------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 1,629,796 3,258,422
- --------------------------------------------------------------------------------
Distributions to shareholders from
net investment income (Note 1)
- --------------------------------------------------------------------------------
Class A (40,513) (70,868)
- --------------------------------------------------------------------------------
Class B (7) (86)
- --------------------------------------------------------------------------------
Class C (7) (6)
- --------------------------------------------------------------------------------
Class M (48) (21)
- --------------------------------------------------------------------------------
Class R (8) (7)
- --------------------------------------------------------------------------------
Class Y (44,746) (98,944)
- --------------------------------------------------------------------------------
Increase from capital share transactions
(Note 4) 19,718,700 39,004,499
- --------------------------------------------------------------------------------
Total increase in net assets 21,263,167 42,092,987
- --------------------------------------------------------------------------------
Net assets
- --------------------------------------------------------------------------------
Beginning of period (Note 5) -- --
- --------------------------------------------------------------------------------
End of period $21,263,167 $42,092,987
- --------------------------------------------------------------------------------
Undistributed net investment income, end of
period $26,478 $94,887
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS 2030 Fund 2025 Fund
- --------------------------------------------------------------------------------
Operations:
Net investment income $412,763 $762,161
- --------------------------------------------------------------------------------
Net realized gain on underlying Putnam
Funds shares 1,147,493 1,265,064
- --------------------------------------------------------------------------------
Net unrealized appreciation on underlying
Putnam Funds shares 3,512,100 5,873,294
- --------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 5,072,356 7,900,519
- --------------------------------------------------------------------------------
Distributions to shareholders from
net investment income (Note 1)
- --------------------------------------------------------------------------------
Class A (98,122) (156,581)
- --------------------------------------------------------------------------------
Class B (6) (79)
- --------------------------------------------------------------------------------
Class C (6) (5)
- --------------------------------------------------------------------------------
Class M (19) (210)
- --------------------------------------------------------------------------------
Class R (6) (6)
- --------------------------------------------------------------------------------
Class Y (140,095) (242,685)
- --------------------------------------------------------------------------------
Increase from capital share transactions
(Note 4) 65,517,500 102,126,679
- --------------------------------------------------------------------------------
Total increase in net assets 70,351,602 109,627,632
- --------------------------------------------------------------------------------
Net assets
- --------------------------------------------------------------------------------
Beginning of period (Note 5) -- --
- --------------------------------------------------------------------------------
End of period $70,351,602 $109,627,632
- --------------------------------------------------------------------------------
Undistributed net investment income, end of
period $212,753 $420,251
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS 2020 Fund 2015 Fund
- --------------------------------------------------------------------------------
Operations:
Net investment income $944,731 $1,350,566
- --------------------------------------------------------------------------------
Net realized gain on underlying Putnam
Funds shares 1,390,724 1,191,425
- --------------------------------------------------------------------------------
Net unrealized appreciation on underlying
Putnam Funds shares 5,540,581 5,961,392
- --------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 7,876,036 8,503,383
- --------------------------------------------------------------------------------
Distributions to shareholders from
net investment income (Note 1)
- --------------------------------------------------------------------------------
Class A (155,610) (151,730)
- --------------------------------------------------------------------------------
Class B (90) (23)
- --------------------------------------------------------------------------------
Class C (14) (46)
- --------------------------------------------------------------------------------
Class M (151) (71)
- --------------------------------------------------------------------------------
Class R (5) (4)
- --------------------------------------------------------------------------------
Class Y (232,313) (288,518)
- --------------------------------------------------------------------------------
Increase from capital share transactions
(Note 4) 112,951,929 132,895,703
- --------------------------------------------------------------------------------
Total increase in net assets 120,439,782 140,958,694
- --------------------------------------------------------------------------------
Net assets
- --------------------------------------------------------------------------------
Beginning of period (Note 5) -- --
- --------------------------------------------------------------------------------
End of period $120,439,782 $140,958,694
- --------------------------------------------------------------------------------
Undistributed net investment income, end of
period $618,822 $981,679
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS 2010 Fund Maturity Fund
- --------------------------------------------------------------------------------
Operations:
Net investment income $1,009,849 $615,875
- --------------------------------------------------------------------------------
Net realized gain on underlying Putnam
Funds shares 584,207 242,186
- --------------------------------------------------------------------------------
Net unrealized appreciation on underlying
Putnam Funds shares 2,143,033 706,118
- --------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 3,737,089 1,564,179
- --------------------------------------------------------------------------------
Distributions to shareholders from
net investment income (Note 1)
- --------------------------------------------------------------------------------
Class A (100,806) (240,377)
- --------------------------------------------------------------------------------
Class B (9) (888)
- --------------------------------------------------------------------------------
Class C (5) (8)
- --------------------------------------------------------------------------------
Class M (3) (17)
- --------------------------------------------------------------------------------
Class R (3) (12)
- --------------------------------------------------------------------------------
Class Y (134,208) (347,085)
- --------------------------------------------------------------------------------
Increase from capital share transactions
(Note 4) 80,435,862 46,572,023
- --------------------------------------------------------------------------------
Total increase in net assets 83,937,917 47,547,815
- --------------------------------------------------------------------------------
Net assets
- --------------------------------------------------------------------------------
Beginning of period (Note 5) -- $100,000
- --------------------------------------------------------------------------------
End of period $83,937,917 $47,647,815
- --------------------------------------------------------------------------------
Undistributed net investment income, end of
period $827,162 $62,166
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Financial highlights
(For a common share outstanding throughout the period)
CLASS A
- ----------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
- ----------------------------------------------------------------------------------------------------
Net Net
Asset Net Realized and
Value, Investment Unrealized Total from From Net
Beginning Income Gain on Investment Investment
Period ended of Period (Loss)(a) Investments Operations Income
- ----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $50.00 $(0.01) $4.37 $4.36 --
- ----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 63.42 0.28 7.63 7.91 (0.58)
- ----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 63.50 0.32 7.51 7.83 (0.52)
- ----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 62.61 0.38 6.96 7.34 (0.45)
- ----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 62.16 0.44 6.47 6.91 (0.42)
- ----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 65.75 0.52 6.39 6.91 (0.40)
- ----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 60.69 0.54 5.16 5.70 (0.33)
- ----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 62.62 0.66 4.28 4.94 (0.28)
- ----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 56.79 0.73 2.42 3.15 (0.22)
- ----------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 55.96 0.80 1.50 2.30 (0.75)
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Total Ratio of Net
Investment Ratio of Investment
Net Asset Return at Net Assets, Expenses Income (Loss)
Value, End Net Asset End of Period to Average Net to Average Portfolio
of Period Value (%)(b) (in thousands) Assets (%)(c)(d) Net Assets (%)(d) Turnover (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $54.36 8.72* $274 0.09* (0.02)* 24.76*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 70.75 12.51* 8,136 0.26* 0.41* 42.17*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 70.81 12.37* 12,230 0.26* 0.48* 39.79*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 69.50 11.76* 21,274 0.26* 0.58* 36.45*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 68.65 11.14* 32,720 0.26* 0.66* 34.59*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 72.26 10.53* 48,529 0.26* 0.75* 25.48*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 66.06 9.41* 53,180 0.26* 0.85* 30.16*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 67.28 7.90* 56,457 0.26* 1.01* 26.37*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 59.72 5.55* 39,291 0.26* 1.26* 33.53*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 57.51 4.15* 25,732 0.26* 1.41* 41.89*
- ----------------------------------------------------------------------------------------------------------------------------------
* 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
period ended July 31, 2005 reflect a reduction of the following based on
each fund's average net assets.
Putnam RetirementReady 2050 Fund 12.75%
Putnam RetirementReady 2045 Fund 0.57%
Putnam RetirementReady 2040 Fund 0.40%
Putnam RetirementReady 2035 Fund 0.20%
Putnam RetirementReady 2030 Fund 0.13%
Putnam RetirementReady 2025 Fund 0.08%
Putnam RetirementReady 2020 Fund 0.07%
Putnam RetirementReady 2015 Fund 0.06%
Putnam RetirementReady 2010 Fund 0.09%
Putnam RetirementReady Maturity Fund 0.28%
The accompanying notes are an integral part of these financial statements.
Financial highlights (Continued)
(For a common share outstanding throughout the period)
CLASS B
- -----------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------------------
Net Net
Asset Net Realized and
Value, Investment Unrealized Total from From Net
Beginning Income Gain on Investment Investment
Period ended of Period (Loss)(a) Investments Operations Income
- -----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $50.00 $(0.08) $4.33 $4.25 --
- -----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 62.00 (0.24) 7.58 7.34 (0.51)
- -----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 62.00 (0.25) 7.52 7.27 (0.45)
- -----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 61.00 (0.08) 6.87 6.79 (0.44)
- -----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 61.00 (0.13) 6.55 6.42 (0.35)
- -----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 64.00 (0.05) 6.38 6.33 (0.39)
- -----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 60.00 0.08 5.18 5.26 (0.32)
- -----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 62.00 0.22 4.30 4.52 (0.25)
- -----------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 56.00 0.37 2.42 2.79 (0.20)
- -----------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 56.00 0.47 1.51 1.98 (0.44)
- -----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Total Ratio of Net
Investment Ratio of Investment
Net Asset Return at Net Assets, Expenses Income (Loss)
Value, End Net Asset End of Period to Average Net to Average Portfolio
of Period Value (%)(b) (in thousands) Assets (%)(c)(d) Net Assets (%)(d) Turnover (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $54.25 8.50* $31 0.28* (0.16)* 24.76*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 68.83 11.87* 17 0.82* (0.37)* 42.17*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 68.82 11.75* 37 0.82* (0.38)* 39.79*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 67.35 11.15* 67 0.82* (0.13)* 36.45*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 67.07 10.54* 225 0.82* (0.20)* 34.59*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 69.94 9.91* 211 0.82* (0.08)* 25.48*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 64.94 8.79* 241 0.82* 0.12* 30.16*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 66.27 7.30* 165 0.82* 0.35* 26.37*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 58.59 4.98* 84 0.82* 0.65* 33.53*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 57.54 3.55* 124 0.82* 0.83* 41.89*
- ----------------------------------------------------------------------------------------------------------------------------------
Financial highlights (Continued)
(For a common share outstanding throughout the period)
CLASS C
- -------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
- -------------------------------------------------------------------------------------------------------
Net Net
Asset Net Realized and
Value, Investment Unrealized Total from From Net
Beginning Income Gain on Investment Investment
Period ended of Period (Loss)(a) Investments Operations Income
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $50.00 $(0.08) $4.33 $4.25 --
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 62.00 (0.26) 7.61 7.35 (0.51)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 62.00 0.06 7.22 7.28 (0.45)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 61.00 0.10 6.69 6.79 (0.38)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 61.00 (0.06) 6.47 6.41 (0.35)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 64.00 (0.04) 6.36 6.32 (0.32)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 60.00 0.08 5.19 5.27 (0.30)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 62.00 0.25 4.28 4.53 (0.28)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 56.00 0.41 2.38 2.79 (0.17)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 56.00 0.46 1.54 2.00 (0.44)
- -------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Total Ratio of Net
Investment Ratio of Investment
Net Asset Return at Net Assets, Expenses Income (Loss)
Value, End Net Asset End of Period to Average Net to Average Portfolio
of Period Value (%)(b) (in thousands) Assets (%)(c)(d) Net Assets (%)(d) Turnover (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $54.25 8.50* $4 0.28* (0.16)* 24.76*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 68.84 11.89* 10 0.82* (0.39)* 42.17*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 68.83 11.77* 1 0.82* 0.09* 39.79*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 67.41 11.15* 1 0.82* 0.15* 36.45*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 67.06 10.52* 22 0.82* (0.10)* 34.59*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 70.00 9.89* 45 0.82* (0.05)* 25.48*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 64.97 8.79* 61 0.82* 0.12* 30.16*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 66.25 7.32* 90 0.82* 0.38* 26.37*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 58.62 4.98* 15 0.82* 0.71* 33.53*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 57.56 3.59* 1 0.82* 0.81* 41.89*
- ----------------------------------------------------------------------------------------------------------------------------------
* 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
period ended July 31, 2005 reflect a reduction of the following based on
each fund's average net assets.
Putnam RetirementReady 2050 Fund 12.75%
Putnam RetirementReady 2045 Fund 0.57%
Putnam RetirementReady 2040 Fund 0.40%
Putnam RetirementReady 2035 Fund 0.20%
Putnam RetirementReady 2030 Fund 0.13%
Putnam RetirementReady 2025 Fund 0.08%
Putnam RetirementReady 2020 Fund 0.07%
Putnam RetirementReady 2015 Fund 0.06%
Putnam RetirementReady 2010 Fund 0.09%
Putnam RetirementReady Maturity Fund 0.28%
The accompanying notes are an integral part of these financial statements.
Financial highlights (Continued)
(For a common share outstanding throughout the period)
CLASS M
- -------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
- -------------------------------------------------------------------------------------------------------
Net Net
Asset Net Realized and
Value, Investment Unrealized Total from From Net
Beginning Income Gain on Investment Investment
Period ended of Period (Loss)(a) Investments Operations Income
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $50.00 $(0.05) $4.33 $4.28 --
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 62.00 (0.06) 7.54 7.48 (0.54)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 62.00 0.07 7.33 7.40 (0.52)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 61.00 (0.01) 6.92 6.91 (0.44)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 61.00 0.02 6.52 6.54 (0.40)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 64.00 0.11 6.35 6.46 (0.40)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 60.00 0.19 5.20 5.39 (0.34)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 62.00 0.35 4.30 4.65 (0.27)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 56.00 0.56 2.34 2.90 (0.17)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 56.00 0.61 1.49 2.10 (0.56)
- -------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Total Ratio of Net
Investment Ratio of Investment
Net Asset Return at Net Assets, Expenses Income (Loss)
Value, End Net Asset End of Period to Average Net to Average Portfolio
of Period Value (%)(b) (in thousands) Assets (%)(c)(d) Net Assets (%)(d) Turnover (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $54.28 8.56* $3 0.22* (0.09)* 24.76*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 68.94 12.09* 9 0.64* (0.09)* 42.17*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 68.88 11.96* 11 0.64* 0.11* 39.79*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 67.47 11.35* 20 0.64* (0.02)* 36.45*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 67.14 10.74* 43 0.64* 0.03* 34.59*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 70.06 10.12* 173 0.64* 0.17* 25.48*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 65.05 9.00* 276 0.64* 0.30* 30.16*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 66.38 7.52* 142 0.64* 0.54* 26.37*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 58.73 5.19* 55 0.64* 0.97* 33.53*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 57.54 3.76* 2 0.64* 1.07* 41.89*
- ----------------------------------------------------------------------------------------------------------------------------------
* 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
period ended July 31, 2005 reflect a reduction of the following based on
each fund's average net assets.
Putnam RetirementReady 2050 Fund 12.75%
Putnam RetirementReady 2045 Fund 0.57%
Putnam RetirementReady 2040 Fund 0.40%
Putnam RetirementReady 2035 Fund 0.20%
Putnam RetirementReady 2030 Fund 0.13%
Putnam RetirementReady 2025 Fund 0.08%
Putnam RetirementReady 2020 Fund 0.07%
Putnam RetirementReady 2015 Fund 0.06%
Putnam RetirementReady 2010 Fund 0.09%
Putnam RetirementReady Maturity
Fund 0.28%
The accompanying notes are an integral part of these financial statements.
Financial highlights (Continued)
(For a common share outstanding throughout the period)
CLASS R
- -------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
- -------------------------------------------------------------------------------------------------------
Net Net
Asset Net Realized and
Value, Investment Unrealized Total from From Net
Beginning Income Gain on Investment Investment
Period ended of Period (Loss)(a) Investments Operations Income
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $50.00 $(0.02) $4.34 $4.32 --
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 62.00 0.30 7.32 7.62 (0.56)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 62.00 0.31 7.23 7.54 (0.50)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 61.00 0.35 6.70 7.05 (0.44)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 61.00 0.39 6.28 6.67 (0.40)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 64.00 0.42 6.17 6.59 (0.38)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 60.00 0.44 5.10 5.54 (0.31)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 62.00 0.55 4.25 4.80 (0.26)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 56.00 0.59 2.43 3.02 (0.19)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 56.00 0.67 1.54 2.21 (0.65)
- -------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Total Ratio of Net
Investment Ratio of Investment
Net Asset Return at Net Assets, Expenses Income (Loss)
Value, End Net Asset End of Period to Average Net to Average Portfolio
of Period Value (%)(b) (in thousands) Assets (%)(c)(d) Net Assets (%)(d) Turnover (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $54.32 8.64* $1 0.15* (0.04)* 24.76*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 69.06 12.33* 1 0.45* 0.45* 42.17*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 69.04 12.20* 1 0.45* 0.47* 39.79*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 67.61 11.58* 1 0.45* 0.52* 36.45*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 67.27 10.96* 1 0.45* 0.58* 34.59*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 70.21 10.31* 1 0.45* 0.64* 25.48*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 65.23 9.25* 1 0.45* 0.71* 30.16*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 66.54 7.75* 1 0.45* 0.84* 26.37*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 58.83 5.41* 1 0.45* 1.06* 33.53*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 57.56 3.97* 1 0.45* 1.19* 41.89*
- ----------------------------------------------------------------------------------------------------------------------------------
* 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
period ended July 31, 2005 reflect a reduction of the following based on
each fund's average net assets.
Putnam RetirementReady 2050 Fund 12.75%
Putnam RetirementReady 2045 Fund 0.57%
Putnam RetirementReady 2040 Fund 0.40%
Putnam RetirementReady 2035 Fund 0.20%
Putnam RetirementReady 2030 Fund 0.13%
Putnam RetirementReady 2025 Fund 0.08%
Putnam RetirementReady 2020 Fund 0.07%
Putnam RetirementReady 2015 Fund 0.06%
Putnam RetirementReady 2010 Fund 0.09%
Putnam RetirementReady Maturity Fund 0.28%
The accompanying notes are an integral part of these financial statements.
Financial highlights (Continued)
(For a common share outstanding throughout the period)
CLASS Y
- -------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
- -------------------------------------------------------------------------------------------------------
Net Net
Asset Net Realized and
Value, Investment Unrealized Total from From Net
Beginning Income Gain on Investment Investment
Period ended of Period (Loss)(a) Investments Operations Income
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $50.00 $0.03 $4.35 $4.38 --
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 68.76 0.46 8.26 8.72 (0.60)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 68.61 0.50 8.10 8.60 (0.54)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 67.76 0.56 7.52 8.08 (0.47)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 66.78 0.57 6.99 7.56 (0.44)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 65.87 0.63 6.42 7.05 (0.42)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 64.69 0.68 5.52 6.20 (0.35)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 62.71 0.77 4.30 5.07 (0.30)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 59.18 0.86 2.54 3.40 (0.23)
- -------------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 56.08 0.89 1.53 2.42 (0.85)
- -------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Total Ratio of Net
Investment Ratio of Investment
Net Asset Return at Net Assets, Expenses Income (Loss)
Value, End Net Asset End of Period to Average Net to Average Portfolio
of Period Value (%)(b) (in thousands) Assets (%)(c)(d) Net Assets (%)(d) Turnover (%)
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2050 Fund
July 31, 2005** $54.38 8.76* $134 0.03* 0.05* 24.76*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2045 Fund
July 31, 2005*** 76.88 12.72* 7,926 0.07* 0.63* 42.17*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2040 Fund
July 31, 2005*** 76.67 12.58* 8,983 0.07* 0.68* 39.79*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2035 Fund
July 31, 2005*** 75.37 11.96* 20,730 0.07* 0.77* 36.45*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2030 Fund
July 31, 2005*** 73.90 11.35* 37,340 0.07* 0.81* 34.59*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2025 Fund
July 31, 2005*** 72.50 10.72* 60,668 0.07* 0.90* 25.48*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2020 Fund
July 31, 2005*** 70.54 9.60* 66,682 0.07* 1.01* 30.16*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2015 Fund
July 31, 2005*** 67.48 8.10* 84,103 0.07* 1.18* 26.37*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady 2010 Fund
July 31, 2005*** 62.35 5.76* 44,492 0.07* 1.42* 33.53*
- ----------------------------------------------------------------------------------------------------------------------------------
Putnam RetirementReady Maturity Fund
July 31, 2005*** 57.65 4.34* 21,787 0.07* 1.56* 41.89*
- ----------------------------------------------------------------------------------------------------------------------------------
* 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
period ended July 31, 2005 reflect a reduction of the following based on
each fund's average net assets.
Putnam RetirementReady 2050 Fund 12.75%
Putnam RetirementReady 2045 Fund 0.57%
Putnam RetirementReady 2040 Fund 0.40%
Putnam RetirementReady 2035 Fund 0.20%
Putnam RetirementReady 2030 Fund 0.13%
Putnam RetirementReady 2025 Fund 0.08%
Putnam RetirementReady 2020 Fund 0.07%
Putnam RetirementReady 2015 Fund 0.06%
Putnam RetirementReady 2010 Fund 0.09%
Putnam RetirementReady Maturity Fund 0.28%
The accompanying notes are an integral part of these financial statements.
Notes to financial statements 7/31/05
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
Retiremen t 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-ended
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 target 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 Retirement Ready 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 Opportu nities
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 do not pay a contingent
deferred sales charge. Prior to April 1, 2005, the maximum front-end sales
charge for class M shares was 3.50%. 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 are
subject to the same fees as class B shares, except that 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 each class' distribution
fee, which is identified in Note 2. Class Y shares, which are sold at net
asset value, are 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.
A 2.00% redemption fee may apply to any shares that are redeemed (either
by selling or exchanging into another fund) within 5 days of purchase. The
redemption fee is accounted for as an addition to paid-in-capital.
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 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.
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 valuation The price of each fund's shares is based on its net
asset value (NAV), which is in turn based on the NAVs 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 market value. Each fund values
short-term investments that will mature within 60 days at amortized cost,
which approximates market value. Each fund values all other investments
and assets at their fair value. Each underlying Putnam Fund translates
prices for its investments quoted in foreign currencies into U.S. dollars
at current exchange rates. As a result, changes in the value of those
currencies in relation to the U.S. dollar may affect an underlying Putnam
Fund's NAV. In addition, the closing prices for securities in foreign
markets or on foreign exchanges that close prior to the close of the New
York Stock Exchange may not fully reflect events that occur after such
close but before the close of the New York Stock Exchange. As a result,
each underlying Putnam Fund has adopted fair value pricing procedures,
which, among other things, require the funds, on certain days, to fair
value foreign 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 the fund to a significant
extent.
B) Security transactions and related investment income Security
transactions, 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 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.
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. These differences include temporary and
permanent differences of losses on wash sale transactions and organization
costs for all funds. 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. For the
period ended July 31, 2005, the funds reclassified the following amounts:
- -------------------------------------------------------------------------------------
Undistributed Accumulated Net
Net Investment Realized Gain on Paid-in-
Income Investment Transactions Capital
- -------------------------------------------------------------------------------------
RetirementReady
2050 Fund $180 $-- $(180)
2045 Fund 9,866 -- (9,866)
2040 Fund 13,922 -- (13,922)
2035 Fund 26,376 -- (26,376)
2030 Fund 38,244 -- (38,244)
2025 Fund 57,656 -- (57,656)
2020 Fund 62,274 -- (62,274)
2015 Fund 71,505 -- (71,505)
2010 Fund 52,347 -- (52,347)
Maturity Fund 34,678 -- (34,678)
The tax basis components of distributable earnings and the federal tax
cost as of period end were as follows:
- -------------------------------------------------------------------------------------------------------------------
Cost for
Net Undistributed Undistributed Federal
Unrealized Unrealized Unrealized Ordinary Short-Term Income Tax
Appreciation Depreciation Appreciation Income Gain Purposes
- -------------------------------------------------------------------------------------------------------------------
RetirementReady
2050 Fund $11,336 $(111) $11,225 $130 $2,912 $435,959
2045 Fund 715,479 (11,733) 703,746 13,433 354,166 15,363,823
2040 Fund 1,084,922 (5,369) 1,079,553 26,478 452,359 20,155,892
2035 Fund 2,238,289 (15,838) 2,222,451 94,887 797,527 39,853,176
2030 Fund 3,544,494 (44,156) 3,500,338 212,753 1,159,255 66,849,272
2025 Fund 5,922,816 (71,700) 5,851,116 420,251 1,287,242 103,795,489
2020 Fund 5,601,107 (99,252) 5,501,855 618,821 1,429,451 114,964,695
2015 Fund 6,080,982 (179,734) 5,901,248 981,679 1,251,569 135,099,278
2010 Fund 2,211,038 (120,913) 2,090,125 827,162 637,115 81,855,427
Maturity Fund 731,257 (62,708) 668,549 62,166 279,755 46,949,174
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.
F) Organization and offering Expenses incurred by each fund in connection
with its organization, its registration with the Securities and Exchange
Commission and with various states and the initial public offering of its
shares were $86,966 (2050 Fund; $76,976), except Maturity Fund which
incurred $132,666 of offering costs, plus $12,500 in organization costs.
The organization fees are expensed as occurred and the offering costs will
be amortized over a twelve month period on a straight line basis.
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.
In order to limit each fund's 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 each funds' net expenses
(exclusive of brokerage, interest, taxes, extra ordinary expenses and fees
and expenses of the underlying funds in which each fund invests and
payments under the fund's distribution plans) would not exceed an annual
rate of 0.10% of each fund's average net assets.
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
shares, respectively.
For the period ended July 31, 2005, 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, respectively:
- ------------------------------------------------------------------------------------------------
Class A Class M
Net Net Class B Class C
Commissions Commissions CDSC CDSC
- ------------------------------------------------------------------------------------------------
RetirementReady
2050 Fund $-- $-- $-- $--
2045 Fund 30 -- -- --
2040 Fund 118 -- -- --
2035 Fund 124 39 9 --
2030 Fund 40 9 95 3
2025 Fund 70 773 -- --
2020 Fund 184 293 58 4
2015 Fund 582 -- -- --
2010 Fund 18 -- 118 --
Maturity Fund -- -- 1 --
- ------------------------------------------------------------------------------------------------
Total $1,166 $1,114 $281 $7
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 July 31, 2005, Putnam 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 July 31, 2005, cost of purchases and proceeds from
sales of underlying Putnam Funds were as follows:
- ---------------------------------------------------
Purchases Sales
- ---------------------------------------------------
2050 Fund $484,313 $51,266
2045 Fund 20,217,629 5,207,972
2040 Fund 26,577,481 6,873,948
2035 Fund 51,979,867 12,924,218
2030 Fund 85,151,834 19,461,818
2025 Fund 125,935,078 23,426,831
2020 Fund 143,445,551 29,910,307
2015 Fund 166,646,677 32,798,967
2010 Fund 106,449,905 25,231,594
Maturity Fund 64,150,668 17,481,249
Note 4: Capital shares
Class A and Class Y shares of all funds (with the exception of 2050 Fund)
were formed with an initial in-kind contribution from another Putnam
trust.
At July 31, 2005, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
RetirementReady 2050 Fund
For the period May 2, 2005
(commencement of operations) to July 31, 2005
- ----------------------------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------------------------
Shares sold 5,756 $304,997
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions -- --
- ----------------------------------------------------------------------
5,756 304,997
- ----------------------------------------------------------------------
Shares repurchased (724) (39,118)
- ----------------------------------------------------------------------
Net increase 5,032 $265,879
- ----------------------------------------------------------------------
Class B
- ----------------------------------------------------------------------
Shares sold 600 $30,564
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions -- --
- ----------------------------------------------------------------------
600 30,564
- ----------------------------------------------------------------------
Shares repurchased (20) (1,085)
- ----------------------------------------------------------------------
Net increase 580 $29,479
- ----------------------------------------------------------------------
Class C
- ----------------------------------------------------------------------
Shares sold 78 $3,971
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions -- --
- ----------------------------------------------------------------------
78 3,971
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 78 $3,971
- ----------------------------------------------------------------------
Class M
- ----------------------------------------------------------------------
Shares sold 59 $2,997
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions -- --
- ----------------------------------------------------------------------
59 2,997
- ----------------------------------------------------------------------
Shares repurchased -- --
Net increase 59 $2,997
- ----------------------------------------------------------------------
Class R
- ----------------------------------------------------------------------
Shares sold 20 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions -- --
- ----------------------------------------------------------------------
20 1,000
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 20 $1,000
- ----------------------------------------------------------------------
Class Y
- ----------------------------------------------------------------------
Shares sold 2,483 $131,152
Shares issued in connection
with reinvestment of
distributions -- --
- ----------------------------------------------------------------------
2,483 131,152
- ----------------------------------------------------------------------
Shares repurchased (28) (1,487)
- ----------------------------------------------------------------------
Net increase 2,455 $129,665
RetirementReady 2045 Fund
For the period November 1, 2004
(commencement of operations) to July 31, 2005
- ----------------------------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------------------------
Shares sold 139,349 $9,287,225
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 386 26,219
- ----------------------------------------------------------------------
139,735 9,313,444
- ----------------------------------------------------------------------
Shares repurchased (24,736) (1,684,933)
- ----------------------------------------------------------------------
Net increase 114,999 $7,628,511
- ----------------------------------------------------------------------
Class B
- ----------------------------------------------------------------------
Shares sold 262 $17,051
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 8
- ----------------------------------------------------------------------
262 17,059
- ----------------------------------------------------------------------
Shares repurchased (13) (839)
- ----------------------------------------------------------------------
Net increase 249 $16,220
- ----------------------------------------------------------------------
Class C
- ----------------------------------------------------------------------
Shares sold 140 $9,149
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 8
- ----------------------------------------------------------------------
140 9,157
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 140 $9,157
- ----------------------------------------------------------------------
Class M
- ----------------------------------------------------------------------
Shares sold 124 $8,100
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 9
- ----------------------------------------------------------------------
124 8,109
- ----------------------------------------------------------------------
Shares repurchased -- --
Net increase 124 $8,109
- ----------------------------------------------------------------------
Class R
- ----------------------------------------------------------------------
Shares sold 16 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 9
- ----------------------------------------------------------------------
16 1,009
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 16 $1,009
- ----------------------------------------------------------------------
Class Y
- ----------------------------------------------------------------------
Shares sold 147,105 $10,617,638
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 456 33,627
- ----------------------------------------------------------------------
147,561 10,651,265
- ----------------------------------------------------------------------
Shares repurchased (44,461) (3,276,807)
- ----------------------------------------------------------------------
Net increase 103,100 $ 7,374,458
RetirementReady 2040 Fund
For the period November 1, 2004
(commencement of operations) to July 31, 2005
- ----------------------------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------------------------
Shares sold 201,751 $13,432,389
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 595 40,513
- ----------------------------------------------------------------------
202,346 13,472,902
- ----------------------------------------------------------------------
Shares repurchased (29,638) (2,028,812)
- ----------------------------------------------------------------------
Net increase 172,708 $11,444,090
- ----------------------------------------------------------------------
Class B
- ----------------------------------------------------------------------
Shares sold 559 $36,439
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 7
- ----------------------------------------------------------------------
559 36,446
- ----------------------------------------------------------------------
Shares repurchased (16) (1,118)
- ----------------------------------------------------------------------
Net increase 543 $35,328
- ----------------------------------------------------------------------
Class C
- ----------------------------------------------------------------------
Shares sold 16 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 7
- ----------------------------------------------------------------------
16 1,007
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 16 $1,007
- ----------------------------------------------------------------------
Class M
- ----------------------------------------------------------------------
Shares sold 163 $10,514
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1 48
- ----------------------------------------------------------------------
164 10,562
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 164 $10,562
- ----------------------------------------------------------------------
Class R
- ----------------------------------------------------------------------
Shares sold 16 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 8
- ----------------------------------------------------------------------
16 1,008
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 16 $1,008
- ----------------------------------------------------------------------
Class Y
- ----------------------------------------------------------------------
Shares sold 178,174 $12,698,509
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 608 44,746
- ----------------------------------------------------------------------
178,782 12,743,255
- ----------------------------------------------------------------------
Shares repurchased (61,629) (4,516,550)
- ----------------------------------------------------------------------
Net increase 117,153 $8,226,705
RetirementReady 2035 Fund
For the period November 1, 2004
(commencement of operations) to July 31, 2005
- ----------------------------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------------------------
Shares sold 360,622 $23,573,691
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1,059 70,868
- ----------------------------------------------------------------------
361,681 23,644,559
- ----------------------------------------------------------------------
Shares repurchased (55,571) (3,729,992)
- ----------------------------------------------------------------------
Net increase 306,110 $19,914,567
- ----------------------------------------------------------------------
Class B
- ----------------------------------------------------------------------
Shares sold 1,020 $65,875
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1 86
- ----------------------------------------------------------------------
1,021 65,961
- ----------------------------------------------------------------------
Shares repurchased (30) (1,972)
- ----------------------------------------------------------------------
Net increase 991 $63,989
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Class C
- ----------------------------------------------------------------------
Shares sold 16 $1,000
Shares issued in connection
with reinvestment of
distributions --* 6
- ----------------------------------------------------------------------
16 1,006
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 16 $1,006
- ----------------------------------------------------------------------
Class M
- ----------------------------------------------------------------------
Shares sold 320 $20,500
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 21
- ----------------------------------------------------------------------
320 20,521
- ----------------------------------------------------------------------
Shares repurchased (16) (1,113)
- ----------------------------------------------------------------------
Net increase 304 $19,408
- ----------------------------------------------------------------------
Class R
- ----------------------------------------------------------------------
Shares sold 17 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 7
- ----------------------------------------------------------------------
17 1,007
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 17 $1,007
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Class Y
- ----------------------------------------------------------------------
Shares sold 392,772 $27,498,593
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1,366 98,944
- ----------------------------------------------------------------------
394,138 27,597,537
- ----------------------------------------------------------------------
Shares repurchased (119,116) (8,593,017)
- ----------------------------------------------------------------------
Net increase 275,022 $19,004,520
RetirementReady 2030 Fund
For the period November 1, 2004
(commencement of operations) to July 31, 2005
- ----------------------------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------------------------
Shares sold 586,145 $37,817,855
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1,483 98,122
- ----------------------------------------------------------------------
587,628 37,915,977
- ----------------------------------------------------------------------
Shares repurchased (111,043) (7,387,036)
- ----------------------------------------------------------------------
Net increase 476,585 $30,528,941
- ----------------------------------------------------------------------
Class B
- ----------------------------------------------------------------------
Shares sold 3,414 $220,060
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 6
- ----------------------------------------------------------------------
3,414 220,066
- ----------------------------------------------------------------------
Shares repurchased (57) (3,631)
- ----------------------------------------------------------------------
Net increase 3,357 $216,435
- ----------------------------------------------------------------------
Class C
- ----------------------------------------------------------------------
Shares sold 332 $21,379
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 6
- ----------------------------------------------------------------------
332 21,385
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 332 $21,385
- ----------------------------------------------------------------------
Class M
- ----------------------------------------------------------------------
Shares sold 656 $42,065
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1 19
- ----------------------------------------------------------------------
657 42,084
- ----------------------------------------------------------------------
Shares repurchased (16) (1,107)
- ----------------------------------------------------------------------
Net increase 641 $40,977
- ----------------------------------------------------------------------
Class R
- ----------------------------------------------------------------------
Shares sold 16 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 6
- ----------------------------------------------------------------------
16 1,006
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 16 $1,006
- ----------------------------------------------------------------------
Class Y
- ----------------------------------------------------------------------
Shares sold 660,572 $45,720,136
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1,970 140,095
- ----------------------------------------------------------------------
662,542 45,860,231
- ----------------------------------------------------------------------
Shares repurchased (157,294) (11,151,475)
- ----------------------------------------------------------------------
Net increase 505,248 $34,708,756
RetirementReady 2025 Fund
For the period November 1, 2004
(commencement of operations) to July 31, 2005
- ----------------------------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------------------------
Shares sold 749,266 $50,939,822
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 2,245 156,581
- ----------------------------------------------------------------------
751,511 51,096,403
- ----------------------------------------------------------------------
Shares repurchased (79,886) (5,588,087)
- ----------------------------------------------------------------------
Net increase 671,625 $45,508,316
- ----------------------------------------------------------------------
Class B
- ----------------------------------------------------------------------
Shares sold 3,335 $224,324
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1 79
- ----------------------------------------------------------------------
3,336 224,403
- ----------------------------------------------------------------------
Shares repurchased (315) (21,538)
- ----------------------------------------------------------------------
Net increase 3,021 $202,865
- ----------------------------------------------------------------------
Class C
- ----------------------------------------------------------------------
Shares sold 805 $53,851
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 5
- ----------------------------------------------------------------------
805 53,856
- ----------------------------------------------------------------------
Shares repurchased (162) (10,883)
- ----------------------------------------------------------------------
Net increase 643 $42,973
- ----------------------------------------------------------------------
Class M
- ----------------------------------------------------------------------
Shares sold 2,595 $174,769
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 3 210
- ----------------------------------------------------------------------
2,598 174,979
- ----------------------------------------------------------------------
Shares repurchased (136) (9,205)
- ----------------------------------------------------------------------
Net increase 2,462 $165,774
- ----------------------------------------------------------------------
Class R
- ----------------------------------------------------------------------
Shares sold 17 $1,100
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 6
- ----------------------------------------------------------------------
17 1,106
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 17 $1,106
- ----------------------------------------------------------------------
Class Y
- ----------------------------------------------------------------------
Shares sold 1,066,126 $72,184,005
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 3,473 242,685
- ----------------------------------------------------------------------
1,069,599 72,426,690
- ----------------------------------------------------------------------
Shares repurchased (232,832) (16,221,045)
- ----------------------------------------------------------------------
Net increase 836,767 $56,205,645
RetirementReady 2020 Fund
For the period November 1, 2004
(commencement of operations) to July 31, 2005
- ----------------------------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------------------------
Shares sold 966,386 $60,449,034
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 2,435 155,610
- ----------------------------------------------------------------------
968,821 60,604,644
- ----------------------------------------------------------------------
Shares repurchased (163,745) (10,502,397)
- ----------------------------------------------------------------------
Net increase 805,076 $50,102,247
- ----------------------------------------------------------------------
Class B
- ----------------------------------------------------------------------
Shares sold 3,870 $241,046
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1 90
- ----------------------------------------------------------------------
3,871 241,136
- ----------------------------------------------------------------------
Shares repurchased (165) (10,331)
- ----------------------------------------------------------------------
Net increase 3,706 $230,805
- ----------------------------------------------------------------------
Class C
- ----------------------------------------------------------------------
Shares sold 1,047 $65,321
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 14
- ----------------------------------------------------------------------
1,047 65,335
- ----------------------------------------------------------------------
Shares repurchased (112) (7,088)
- ----------------------------------------------------------------------
Net increase 935 $58,247
- ----------------------------------------------------------------------
Class M
- ----------------------------------------------------------------------
Shares sold 4,399 $275,169
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 2 151
- ----------------------------------------------------------------------
4,401 275,320
- ----------------------------------------------------------------------
Shares repurchased (163) (10,340)
- ----------------------------------------------------------------------
Net increase 4,238 $264,980
- ----------------------------------------------------------------------
Class R
- ----------------------------------------------------------------------
Shares sold 17 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 5
- ----------------------------------------------------------------------
17 1,005
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 17 $1,005
- ----------------------------------------------------------------------
Class Y
- ----------------------------------------------------------------------
Shares sold 1,201,457 $ 79,676,616
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 3,409 232,313
- ----------------------------------------------------------------------
1,204,866 79,908,929
- ----------------------------------------------------------------------
Shares repurchased (259,586) (17,614,284)
- ----------------------------------------------------------------------
Net increase 945,280 $62,294,645
RetirementReady 2015 Fund
For the period November 1, 2004
(commencement of operations) to July 31, 2005
- ----------------------------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------------------------
Shares sold 967,008 $61,873,192
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 2,324 151,730
- ----------------------------------------------------------------------
969,332 62,024,922
- ----------------------------------------------------------------------
Shares repurchased (130,178) (8,533,217)
- ----------------------------------------------------------------------
Net increase 839,154 $53,491,705
- ----------------------------------------------------------------------
Class B
- ----------------------------------------------------------------------
Shares sold 2,544 $165,518
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 23
- ----------------------------------------------------------------------
2,544 165,541
- ----------------------------------------------------------------------
Shares repurchased (52) (3,423)
- ----------------------------------------------------------------------
Net increase 2,492 $162,118
- ----------------------------------------------------------------------
Class C
- ----------------------------------------------------------------------
Shares sold 1,432 $91,452
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 46
- ----------------------------------------------------------------------
1,432 91,498
- ----------------------------------------------------------------------
Shares repurchased (71) (4,656)
- ----------------------------------------------------------------------
Net increase 1,361 $86,842
- ----------------------------------------------------------------------
Class M
- ----------------------------------------------------------------------
Shares sold 2,161 $138,387
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1 71
- ----------------------------------------------------------------------
2,162 138,458
- ----------------------------------------------------------------------
Shares repurchased (16) (1,075)
- ----------------------------------------------------------------------
Net increase 2,146 $137,383
- ----------------------------------------------------------------------
Class R
- ----------------------------------------------------------------------
Shares sold 16 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 4
- ----------------------------------------------------------------------
16 1,004
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 16 $1,004
- ----------------------------------------------------------------------
Class Y
- ----------------------------------------------------------------------
Shares sold 1,580,630 $100,777,637
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 4,412 288,518
- ----------------------------------------------------------------------
1,585,042 101,066,155
- ----------------------------------------------------------------------
Shares repurchased (338,707) (22,049,504)
- ----------------------------------------------------------------------
Net increase 1,246,335 $79,016,651
RetirementReady 2010 Fund
For the period November 1, 2004
(commencement of operations) to July 31, 2005
- ----------------------------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------------------------
Shares sold 792,156 $45,695,501
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 1,730 100,806
- ----------------------------------------------------------------------
793,886 45,796,307
- ----------------------------------------------------------------------
Shares repurchased (135,996) (7,981,501)
- ----------------------------------------------------------------------
Net increase 657,890 $37,814,806
- ----------------------------------------------------------------------
Class B
- ----------------------------------------------------------------------
Shares sold 2,377 $135,908
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 9
- ----------------------------------------------------------------------
2,377 135,917
- ----------------------------------------------------------------------
Shares repurchased (944) (53,661)
- ----------------------------------------------------------------------
Net increase 1,433 $82,256
- ----------------------------------------------------------------------
Class C
- ----------------------------------------------------------------------
Shares sold 386 $22,060
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 5
- ----------------------------------------------------------------------
386 22,065
- ----------------------------------------------------------------------
Shares repurchased (137) (7,932)
- ----------------------------------------------------------------------
Net increase 249 $14,133
- ----------------------------------------------------------------------
Class M
- ----------------------------------------------------------------------
Shares sold 1,180 $67,786
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 3
- ----------------------------------------------------------------------
1,180 67,789
- ----------------------------------------------------------------------
Shares repurchased (252) (14,775)
- ----------------------------------------------------------------------
Net increase 928 $53,014
- ----------------------------------------------------------------------
Class R
- ----------------------------------------------------------------------
Shares sold 18 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 3
- ----------------------------------------------------------------------
18 1,003
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 18 $1,003
- ----------------------------------------------------------------------
Class Y
- ----------------------------------------------------------------------
Shares sold 973,198 $58,232,489
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 2,210 134,208
- ----------------------------------------------------------------------
975,408 58,366,697
- ----------------------------------------------------------------------
Shares repurchased (261,767) (15,896,047)
- ----------------------------------------------------------------------
Net increase 713,641 $42,470,650
RetirementReady Maturity Fund
For the period November 1, 2004
(commencement of operations) to July 31, 2005
- ----------------------------------------------------------------------
Class A Shares Amount
- ----------------------------------------------------------------------
Shares sold 533,275 $30,165,928
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 4,211 239,131
- ----------------------------------------------------------------------
537,486 30,405,059
- ----------------------------------------------------------------------
Shares repurchased (90,078) (5,120,464)
- ----------------------------------------------------------------------
Net increase 447,408 $25,284,595
- ----------------------------------------------------------------------
Class B
- ----------------------------------------------------------------------
Shares sold 2,290 $128,303
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 16 888
- ----------------------------------------------------------------------
2,306 129,191
- ----------------------------------------------------------------------
Shares repurchased (143) (8,235)
- ----------------------------------------------------------------------
Net increase 2,163 $120,956
- ----------------------------------------------------------------------
Class C
- ----------------------------------------------------------------------
Shares sold 18 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 8
- ----------------------------------------------------------------------
18 1,008
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 18 $1,008
- ----------------------------------------------------------------------
Class M
- ----------------------------------------------------------------------
Shares sold 53 $3,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 17
- ----------------------------------------------------------------------
53 3,017
- ----------------------------------------------------------------------
Shares repurchased (17) (1,000)
- ----------------------------------------------------------------------
Net increase 36 $2,017
- ----------------------------------------------------------------------
Class R
- ----------------------------------------------------------------------
Shares sold 18 $1,000
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions --* 12
- ----------------------------------------------------------------------
18 1,012
- ----------------------------------------------------------------------
Shares repurchased -- --
- ----------------------------------------------------------------------
Net increase 18 $1,012
- ----------------------------------------------------------------------
Class Y
- ----------------------------------------------------------------------
Shares sold 565,289 $31,918,267
- ----------------------------------------------------------------------
Shares issued in connection
with reinvestment of
distributions 6,108 347,085
- ----------------------------------------------------------------------
571,397 32,265,352
- ----------------------------------------------------------------------
Shares repurchased (195,227) (11,102,917)
- ----------------------------------------------------------------------
Net increase 376,170 $21,162,435
* Represents fractional Shares issued in connection with reinvestment of
distributions.
Note 5: Initial capitalization and offering of shares
The Trust was established as a Massachusetts business trust on June 8,
2004. During the period June 8, 2004, to September 14, 2004, the Trust had
no operations other than those related to organizational matters,
including the initial capital contribution of $100,000 and the issuance of
1,786 Putnam RetirementReady Maturity Fund class B shares to Putnam LLC.
The Trust commenced investment operations on November 1, 2004.
At July 31, 2005, Putnam LLC owned the following shares of each fund:
- -----------------------------------------------------------------------------------------
Percentage of Value at
Shares owned shares outstanding July 31, 2005
- -----------------------------------------------------------------------------------------
RetirementReady
2050 Fund class C 20 25.6% $1,086
2050 Fund class M 20 33.9% 1,086
2050 Fund class R 20 100.0% 1,086
2050 Fund class Y 20 0.8% 1,088
2045 Fund class B 16 6.4% 1,119
2045 Fund class C 16 11.4% 1,119
2045 Fund class M 16 12.9% 1,121
2045 Fund class R 16 100.0% 1,123
2040 Fund class C 16 100.0% 1,118
2040 Fund class M 16 9.8% 1,120
2040 Fund class R 16 100.0% 1,122
2035 Fund class C 16 100.0% 1,112
2035 Fund class R 17 100.0% 1,116
2030 Fund class C 16 4.8% 1,105
2030 Fund class R 16 100.0% 1,110
2025 Fund class R 16 94.1% 1,103
2020 Fund class R 17 100.0% 1,093
2015 Fund class R 16 100.0% 1,078
2010 Fund class C 18 7.2% 1,050
2010 Fund class R 18 100.0% 1,054
Maturity Fund class B 1,800 83.2% 103,572
Maturity Fund class C 18 100.0% 1,036
Maturity Fund class M 18 50.0% 1,038
Maturity Fund class R 18 100.0% 1,040
Note 6: Transactions with affiliated issuers
Transactions during the period 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 Sales cost Investment income Market value
- ---------------------------------------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund $72,534 $7,076 $-- $67,910
Putnam Fund for Growth and Income 121,050 12,017 62 110,942
Putnam International Equity Fund 145,510 14,895 -- 134,189
Putnam Voyager Fund 120,911 11,748 -- 112,560
Putnam Income Fund 19,418 2,040 59 17,272
Putnam Money Market Fund 4,890 580 10 4,311
Totals $484,313 $48,356 $131 $447,184
Market values are shown for those securities affiliated at period end.
RetirementReady 2045 Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Affiliates Purchase cost Sales cost Investment income Market value
- ---------------------------------------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund $3,003,796 $742,598 $-- $2,461,112
Putnam Fund for Growth and Income 5,046,245 1,196,828 33,763 3,985,659
Putnam International Equity Fund 6,055,763 1,406,222 35,674 4,795,096
Putnam Voyager Fund 5,044,617 1,214,902 -- 4,054,338
Putnam Income Fund 819,148 204,865 10,992 613,026
Putnam Money Market Fund 248,060 89,722 2,157 158,338
Totals $20,217,629 $4,855,137 $82,586 $16,067,569
Market values are shown for those securities affiliated at period end.
RetirementReady 2040 Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Affiliates Purchase cost Sales cost Investment income Market value
- ---------------------------------------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund $3,945,313 $982,328 $-- $3,253,118
Putnam Fund for Growth and Income 6,605,155 1,556,089 49,423 5,271,745
Putnam International Equity Fund 7,683,445 1,804,714 55,182 6,130,134
Putnam Voyager Fund 6,620,046 1,580,291 -- 5,359,734
Putnam Income Fund 1,349,484 332,421 19,029 1,014,555
Putnam Money Market Fund 374,038 167,880 1,907 206,159
Totals $26,577,481 $6,423,723 $125,541 $21,235,445
Market values are shown for those securities affiliated at period end.
RetirementReady 2035 Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Affiliates Purchase cost Sales cost Investment income Market value
- ---------------------------------------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund $7,197,476 $1,741,243 $-- $6,029,311
Putnam Fund for Growth and Income 12,394,678 2,818,676 97,792 10,049,765
Putnam International Equity Fund 13,997,329 3,223,341 115,605 11,334,873
Putnam Voyager Fund 12,447,910 2,860,503 -- 10,218,369
Putnam Income Fund 4,235,010 1,001,738 62,452 3,223,106
Putnam Money Market Fund 1,707,464 487,261 15,846 1,220,203
Totals $51,979,867 $12,132,762 $291,695 $42,075,627
Market values are shown for those securities affiliated at period end.
RetirementReady 2030 Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Affiliates Purchase cost Sales cost Investment income Market value
- ---------------------------------------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund $10,952,490 $2,465,813 $-- $9,389,299
Putnam Fund for Growth and Income 19,466,393 4,081,063 148,954 16,141,591
Putnam International Equity Fund 21,226,732 4,500,417 161,917 17,579,174
Putnam Voyager Fund 19,513,032 4,123,446 -- 16,415,997
Putnam Income Fund 10,389,631 2,266,190 149,074 8,097,389
Putnam Money Market Fund 3,603,556 877,396 35,016 2,726,160
Totals $85,151,834 $18,314,325 $494,961 $70,349,610
Market values are shown for those securities affiliated at period end.
RetirementReady 2025 Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Affiliates Purchase cost Sales cost Investment income Market value
- ---------------------------------------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund $14,914,537 $2,825,112 $-- $13,531,889
Putnam Fund for Growth and Income 27,488,660 4,700,500 235,645 24,115,238
Putnam International Equity Fund 28,856,378 5,091,121 267,028 25,271,072
Putnam Voyager Fund 27,559,159 4,690,492 -- 24,522,989
Putnam Income Fund 19,234,599 3,364,785 307,225 15,813,429
Putnam Money Market Fund 7,881,745 1,489,757 86,685 6,391,988
Totals $125,935,078 $22,161,767 $896,583 $109,646,605
Market values are shown for those securities affiliated at period end.
RetirementReady 2020 Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Affiliates Purchase cost Sales cost Investment income Market value
- ---------------------------------------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund $15,563,103 $3,288,843 $-- $13,683,699
Putnam Fund for Growth and Income 29,889,270 5,844,571 251,673 25,383,747
Putnam International Equity Fund 24,274,460 4,850,052 219,780 20,594,699
Putnam Voyager Fund 29,875,112 5,756,485 -- 25,817,458
Putnam Income Fund 30,528,204 6,046,725 476,569 24,404,452
Putnam Money Market Fund 13,315,402 2,732,906 145,053 10,582,495
Totals $143,445,551 $28,519,582 $1,093,075 $120,466,550
Market values are shown for those securities affiliated at period end.
RetirementReady 2015 Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Affiliates Purchase cost Sales cost Investment income Market value
- ---------------------------------------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund $16,392,869 $3,413,818 $-- $14,640,749
Putnam Fund for Growth and Income 29,716,106 5,638,652 264,398 25,602,503
Putnam International Equity Fund 18,222,548 3,564,228 188,624 15,680,026
Putnam Voyager Fund 29,536,970 5,391,903 -- 26,042,218
Putnam Income Fund 48,868,791 9,079,351 795,841 39,645,227
Putnam Money Market Fund 23,909,393 4,519,590 272,092 19,389,803
Totals $166,646,677 $31,607,542 $1,520,955 $141,000,526
Market values are shown for those securities affiliated at period end.
RetirementReady 2010 Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Affiliates Purchase cost Sales cost Investment income Market value
- ---------------------------------------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund $7,325,364 $1,823,662 $-- $6,150,230
Putnam Fund for Growth and Income 13,722,007 3,235,564 120,368 11,099,629
Putnam International Equity Fund 4,229,845 1,011,533 43,755 3,422,872
Putnam Voyager Fund 13,604,137 3,083,379 -- 11,288,190
Putnam Income Fund 41,628,420 9,518,837 667,103 32,018,910
Putnam Money Market Fund 25,940,132 5,974,411 291,477 19,965,721
Totals $106,449,905 $24,647,386 $1,122,703 $83,945,552
Market values are shown for those securities affiliated at period end.
RetirementReady Maturity Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Affiliates Purchase cost Sales cost Investment income Market value
- ---------------------------------------------------------------------------------------------------------------------------------
Putnam Capital Opportunities Fund $3,154,729 $885,941 $-- $2,497,118
Putnam Fund for Growth and Income 6,360,974 1,723,049 51,714 4,861,537
Putnam International Equity Fund -- -- -- --
Putnam Voyager Fund 6,309,361 1,664,153 -- 4,939,600
Putnam Income Fund 28,820,342 7,697,922 428,277 21,082,202
Putnam Money Market Fund 19,505,262 5,267,997 200,609 14,237,266
Totals $64,150,668 $17,239,062 $680,600 $47,617,723
Market values are shown for those securities affiliated at period end.
Note 7: Regulatory matters and litigation
Putnam Management has entered into agreements with the Securities and
Exchange Commission and the Massachusetts Securities Division settling
charges connected with excessive short-term trading by Putnam employees
and, in the case of the charges brought by the Massachusetts Securities
Division, by participants in some Putnam-administered 401(k) plans.
Pursuant to these settlement agreements, Putnam Manage ment will pay a
total of $193.5 million in penalties and restitution, with $153.5 million
being paid to shareholders and the Putnam funds. The restitution amount
will be allocated to shareholders pursuant to a plan developed by an
independent consultant, with payments to shareholders following approval
of the plan by the SEC and the Massachusetts Securities Division.
The Securities and Exchange Commission's and Massachusetts Securities
Division's allegations and related matters also serve as the general basis
for numerous lawsuits, including purported class action lawsuits filed
against Putnam Management and certain related parties, including certain
Putnam funds. Putnam Management will bear any costs incurred by Putnam
funds in connection with these lawsuits. Putnam Management believes that
the likelihood that the pending private lawsuits and purported class
action lawsuits will have a material adverse financial impact on the trust
is remote, and the pending actions are not likely to materially affect its
ability to provide investment management services to its clients,
including the Putnam funds.
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
Manage ment believes that this action is without merit and that it is
unlikely to have a material effect on Putnam Management's and Putnam
Retail Manage ment's ability to provide services to their clients,
including the trust.
Federal tax information (Unaudited)
Each fund has designated the following percentages of that fund's
distributions from net investment income as qualifying for the dividends
received deduction for corporations.
- -----------------------------------------------------------------
Fund Name Qualifying %
- -----------------------------------------------------------------
RetirementReady
2050 Fund --%
2045 Fund 7.89
2040 Fund 8.75
2035 Fund 9.18
2030 Fund 9.25
2025 Fund 11.17
2020 Fund 10.32
2015 Fund 9.88
2010 Fund 7.08
Maturity Fund 5.55
For its tax year ended July 31, 2005, each fund hereby designates the
following amounts or the maximum amount allowable, of its net taxable
income as qualified dividends taxed at individual net capital gain rates.
- -----------------------------------------------------------------
Fund Name Qualifying %
- -----------------------------------------------------------------
RetirementReady
2050 Fund --%
2045 Fund 16.11
2040 Fund 18.42
2035 Fund 19.95
2030 Fund 19.19
2025 Fund 23.66
2020 Fund 19.26
2015 Fund 16.83
2010 Fund 9.61
Maturity Fund 5.52
The Form 1099 you receive in January 2006 will show the tax status of all
distributions paid to your account in calendar 2005.
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.
About the Trustees
- -----------------------------------------------------------------------------
Jameson A. Baxter (9/6/43), Trustee since 1994
Ms. Baxter is the President of Baxter Associates, Inc., a private
investment firm that she founded in 1986.
Ms. Baxter serves as a Director of ASHTA Chemicals, Inc., Banta
Corporation (a printing and digital imaging firm), Ryerson Tull, Inc. (a
steel service corporation), the Mutual Fund Directors Forum, Advocate
Health Care and BoardSource, formerly the National Center for Nonprofit
Boards. She is Chairman Emeritus of the Board of Trustees, Mount Holyoke
College, having served as Chairman for five years and as a board member
for thirteen years. Until 2002, Ms. Baxter was a Director of Intermatic
Corporation (a manufacturer of energy control products).
Ms. Baxter has held various positions in investment banking and corporate
finance, including Vice President and Principal of the Regency Group, and
Vice President of and Consultant to First Boston Corporation. She is a
graduate of Mount Holyoke College.
- -----------------------------------------------------------------------------
Charles B. Curtis (4/27/40), Trustee since 2001
Mr. Curtis is President and Chief Operating Officer of the Nuclear Threat
Initiative (a private foundation dealing with national security issues)
and serves as Senior Advisor to the United Nations Foundation.
Mr. Curtis is a member of the Council on Foreign Relations and the Trustee
Advisory Council of the Applied Physics Laboratory, Johns Hopkins
University. Until 2003, Mr. Curtis was a member of the Electric Power
Research Institute Advisory Council and the University of Chicago Board of
Governors for Argonne National Laboratory. Prior to 2002, Mr. Curtis was a
Member of the Board of Directors of the Gas Technology Institute and the
Board of Directors of the Environment and Natural Resources Program
Steering Committee, John F. Kennedy School of Government, Harvard
University. Until 2001, Mr. Curtis was a member of the Department of
Defense Policy Board and Director of EG&G Technical Services, Inc. (a
fossil energy research and development support company).
From August 1997 to December 1999, Mr. Curtis was a Partner at Hogan &
Hartson L.L.P., a Washington, D.C. law firm. Prior to May 1997, Mr. Curtis
was Deputy Secretary of Energy. He served as Chairman of the Federal
Energy Regulatory Commission from 1977 to 1981 and has held positions on
the staff of the U.S. House of Representatives, the U.S. Treasury
Department, and the SEC.
- -----------------------------------------------------------------------------
Myra R. Drucker (1/16/48), Trustee since 2004
Ms. Drucker is a Vice Chair of the Board of Trustees of Sarah Lawrence
College, a Trustee of Commonfund (a not-for-profit firm specializing in
asset management for educational endowments and foundations) and a member
of the Investment Committee of the Kresge Foundation (a charitable trust).
Ms. Drucker is an ex-officio member of the New York Stock Exchange (NYSE)
Pension Managers Advisory Committee, having served as Chair for seven
years and a member of the Executive Committee of the Committee on
Investment of Employee Benefit Assets. She is Chair of the Advisory Board
of Hamilton Lane Advisors (an investment management firm) and a member of
the Advisory Board of RCM (an investment management firm). Until August
31, 2004, Ms. Drucker was Managing Director and a member of the Board of
Directors of General Motors Asset Management and Chief Investment Officer
of General Motors Trust Bank. Ms. Drucker also served as a member of the
NYSE Corporate Accountability and Listing Standards Committee and the
NYSE/NASD IPO Advisory Committee.
Prior to joining General Motors Asset Management in 2001, Ms. Drucker held
various executive positions in the investment management industry. Ms.
Drucker served as Chief Investment Officer of Xerox Corporation (a
technology and service company in the document industry), where she was
responsible for the investment of the company's pension assets. Ms.
Drucker was also Staff Vice President and Director of Trust Investments
for International Paper (a paper, paper distribution, packaging and forest
products company) and previously served as Manager of Trust Investments
for Xerox Corporation. Ms. Drucker received a B.A. degree in Literature
and Psychology from Sarah Lawrence College and pursued graduate studies in
economics, statistics and portfolio theory at Temple University.
- -----------------------------------------------------------------------------
John A. Hill (1/31/42), Trustee since 1985 and Chairman since 2000
Mr. Hill is Vice Chairman of First Reserve Corporation, a private equity
buyout firm that specializes in energy investments in the diversified
worldwide energy industry.
Mr. Hill is a Director of Devon Energy Corporation, TransMontaigne Oil
Company and various private companies controlled by First Reserve
Corporation, as well as Chairman of TH Lee, Putnam Investment Trust (a
closed-end investment company advised by an affiliate of Putnam
Management). He is also a Trustee of Sarah Lawrence College. Until 2005,
he was a Director of Continuum Health Partners of New York.
Prior to acquiring First Reserve Corporation in 1983, Mr. Hill held
executive positions in investment banking and investment management with
several firms and with the federal government, including Deputy Associate
Director of the Office of Management and Budget and Deputy Director of the
Federal Energy Administration. He is active in various business
associations, including the Economic Club of New York, and lectures on
energy issues in the United States and Europe. Mr. Hill holds a B.A.
degree in Economics from Southern Methodist University and pursued
graduate studies there as a Woodrow Wilson Fellow.
- -----------------------------------------------------------------------------
Paul L. Joskow (6/30/47), Trustee since 1997
Dr. Joskow is the Elizabeth and James Killian Professor of Economics and
Management, and Director of the Center for Energy and Environmental Policy
Research at the Massachusetts Institute of Technology.
Dr. Joskow serves as a Director of National Grid plc (a UK-based holding
company with interests in electric and gas transmission and distribution
and telecommunications infrastructure) and TransCanada Corporation (an
energy company focused on natural gas transmission and power services). He
also serves on the Board of Overseers of the Boston Symphony Orchestra.
Prior to February 2005, he served on the board of the Whitehead Institute
for Biomedical Research (a non-profit research institution) and has been
President of the Yale University Council since 1993. Prior to February
2002, he was a Director of State Farm Indemnity Company (an automobile
insurance company), and, prior to March 2000, he was a Director of New
England Electric System (a public utility holding company).
Dr. Joskow has published five books and numerous articles on topics in
industrial organization, government regulation of industry, and
competition policy. He is active in industry restructuring, environmental,
energy, competition and privatization policies -- serving as an advisor to
governments and corporations worldwide. Dr. Joskow holds a Ph.D. and M.
Phil from Yale University and a B.A. from Cornell University.
- -----------------------------------------------------------------------------
Elizabeth T. Kennan (2/25/38), Trustee since 1992
Dr. Kennan is a Partner of Cambus-Kenneth Farm (thoroughbred horse and
cattle breeding). She is President Emeritus of Mount Holyoke College.
Dr. Kennan served as Chairman and is now Lead Director of Northeast
Utilities. Until 2005, she was a Director of Talbots, Inc. She has served
as Director on a number of other boards, including Bell Atlantic, Chastain
Real Estate, Shawmut Bank, Berkshire Life Insurance and Kentucky Home Life
Insurance. She is a Trustee of the National Trust for Historic
Preservation, of Centre College and of Midway College in Midway, Kentucky.
She is also a member of The Trustees of Reservations. Dr. Kennan has
served on the oversight committee of the Folger Shakespeare Library, as
President of Five Colleges Incorporated, as a Trustee of Notre Dame
University and is active in various educational and civic associations.
As a member of the faculty of Catholic University for twelve years, until
1978, Dr. Kennan directed the post-doctoral program in Patristic and
Medieval Studies, taught history and published numerous articles. Dr.
Kennan holds a Ph.D. from the University of Washington in Seattle, an M.S.
from St. Hilda's College at Oxford University and an A.B. from Mount
Holyoke College. She holds several honorary doctorates.
- -----------------------------------------------------------------------------
John H. Mullin, III (6/15/41), Trustee since 1997
Mr. Mullin is the Chairman and CEO of Ridgeway Farm (a limited liability
company engaged in timber and farming).
Mr. Mullin serves as a Director of The Liberty Corporation (a broadcasting
company), Progress Energy, Inc. (a utility company, formerly known as
Carolina Power & Light) and Sonoco Products, Inc. (a packaging company).
Mr. Mullin is Trustee Emeritus of The National Humanities Center and
Washington & Lee University, where he served as Chairman of the Investment
Committee. Prior to May 2001, he was a Director of Graphic Packaging
International Corp. Prior to February 2004, he was a Director of Alex
Brown Realty, Inc.
Mr. Mullin is also a past Director of Adolph Coors Company; ACX
Technologies, Inc.; Crystal Brands, Inc.; Dillon, Read & Co., Inc.;
Fisher-Price, Inc.; and The Ryland Group, Inc. Mr. Mullin is a graduate of
Washington & Lee University and The Wharton Graduate School, University of
Pennsylvania.
- -----------------------------------------------------------------------------
Robert E. Patterson (3/15/45), Trustee since 1984
Mr. Patterson is Senior Partner of Cabot Properties, L.P. and Chairman of
Cabot Properties, Inc. (a private equity firm investing in commercial real
estate).
Mr. Patterson serves as Chairman Emeritus and Trustee of the Joslin
Diabetes Center and as a Director of Brandywine Trust Group, LLC. Prior to
June 2003, he was a Trustee of Sea Education Association. Prior to
December 2001, he was President and Trustee of Cabot Industrial Trust
(a publicly traded real estate investment trust). Prior to February 1998,
he was Executive Vice President and Director of Acquisitions of Cabot
Partners Limited Partnership (a registered investment adviser involved in
institutional real estate investments). Prior to 1990, he served as
Executive Vice President of Cabot, Cabot & Forbes Realty Advisors, Inc.
(the predecessor company of Cabot Partners).
Mr. Patterson practiced law and held various positions in state government
and was the founding Executive Director of the Massachusetts Industrial
Finance Agency. Mr. Patterson is a graduate of Harvard College and Harvard
Law School.
- -----------------------------------------------------------------------------
W. Thomas Stephens (9/2/42), Trustee since 1997
Mr. Stephens is Chairman and Chief Executive Officer of Boise Cascade,
L.L.C. (a paper, forest products and timberland assets company).
Mr. Stephens serves as a Director of TransCanada Pipelines Limited. Until
2004, Mr. Stephens was a Director of Xcel Energy Incorporated (a public
utility company), Qwest Communications, and Norske Canada, Inc. (a paper
manufacturer). Until 2003, Mr. Stephens was a Director of Mail-Well, Inc.
(a diversified printing company). He served as Chairman of Mail-Well until
2001 and as CEO of MacMillan-Bloedel, Ltd. (a forest products company)
until 1999.
Prior to 1996, Mr. Stephens was Chairman and Chief Executive Officer of
Johns Manville Corporation. He holds B.S. and M.S. degrees from the
University of Arkansas.
- -----------------------------------------------------------------------------
Richard B. Worley (11/15/45), Trustee since 2004
Mr. Worley is Managing Partner of Permit Capital LLC, an investment
management firm.
Mr. Worley serves on the Executive Committee of the University of
Pennsylvania Medical Center, is a Trustee of The Robert Wood Johnson
Foundation (a philanthropic organization devoted to health care issues)
and is a Director of The Colonial Williamsburg Foundation (a historical
preservation organization). Mr. Worley also serves on the investment
committees of Mount Holyoke College and World Wildlife Fund (a wildlife
conservation organization).
Prior to joining Permit Capital LLC in 2002, Mr. Worley served as Chief
Strategic Officer of Morgan Stanley Investment Management. He previously
served as President, Chief Executive Officer and Chief Investment Officer
of Morgan Stanley Dean Witter Investment Management and as a Managing
Director of Morgan Stanley, a financial services firm. Mr. Worley also was
the Chairman of Miller Anderson & Sherrerd, an investment management firm.
Mr. Worley holds a B.S. degree from University of Tennessee and pursued
graduate studies in economics at the University of Texas.
- -----------------------------------------------------------------------------
Charles E. Haldeman, Jr.* (10/29/48), Trustee since 2004
Mr. Haldeman is President and Chief Executive Officer of Putnam, LLC
("Putnam Investments"). He is a member of Putnam Investments' Executive
Board of Directors and Advisory Council. Prior to November 2003, Mr.
Haldeman served as Co-Head of Putnam Investments' Investment Division.
Prior to joining Putnam Investments in 2002, Mr. Haldeman held executive
positions in the investment management industry. He previously served as
Chief Executive Officer of Delaware Investments and President & Chief
Operating Officer of United Asset Management. Mr. Haldeman was also a
partner and director of Cooke & Bieler, Inc. (an investment management
firm).
Mr. Haldeman currently serves as a Trustee of Dartmouth College and as
Emeritus Trustee of Abington Memorial Hospital. He is a graduate of
Dartmouth College, Harvard Law School and Harvard Business School. Mr.
Haldeman is also a Chartered Financial Analyst (CFA) charterholder.
- -----------------------------------------------------------------------------
George Putnam, III* (8/10/51), Trustee since 1984 and President since 2000
Mr. Putnam is President of New Generation Research, Inc. (a publisher of
financial advisory and other research services), and of New Generation
Advisers, Inc. (a registered investment advisor to private funds). Mr.
Putnam founded the New Generation companies in 1986.
Mr. Putnam is a Director of The Boston Family Office, LLC (a registered
investment adviser). He is a Trustee of St. Mark's School and Shore
Country Day School, and until 2002 was a Trustee of the Sea Education
Association.
Mr. Putnam previously worked as an attorney with the law firm of Dechert
LLP (formerly known as Dechert Price & Rhoads) in Philadelphia. He is a
graduate of Harvard College, Harvard Business School and Harvard Law
School.
The address of each Trustee is One Post Office Square, Boston, MA 02109.
As of July 31, 2005, there were 108 Putnam Funds. All Trustees serve as
Trustees of all Putnam funds.
Each Trustee serves for an indefinite term, until his or her resignation,
retirement at age 72, death, or removal.
* Trustees who are or may be deemed to be "interested persons" (as
defined in the Investment Company Act of 1940) of the fund, Putnam
Management, Putnam Retail Management, or Marsh & McLennan Companies, Inc.,
the parent company of Putnam, LLC and its affiliated companies. Messrs.
Haldeman and Putnam, III are deemed "interested persons" by virtue of
their positions as officers of the fund, Putnam Management or Putnam
Retail Management and as shareholders of Marsh & McLennan Companies, Inc.
Mr. Putnam, III is the President of your fund and each of the other Putnam
funds. Mr. Haldeman is President and Chief Executive Officer of Putnam
Investments.
Officers
In addition to George Putnam, III, the other officers of the fund are
shown below:
Charles E. Porter (7/26/38)
Executive Vice President, Associate Treasurer
and Principal Executive Officer
Since 1989
Jonathan S. Horwitz (6/4/55)
Senior Vice President and Treasurer
Since 2004
Prior to 2004, Managing Director, Putnam Investments
Steven D. Krichmar (6/27/58)
Vice President and Principal Financial Officer
Since 2002
Senior Managing Director, Putnam Investments. Prior to July 2001, Partner,
PricewaterhouseCoopers LLP
Michael T. Healy (1/24/58)
Assistant Treasurer and Principal Accounting Officer
Since 2000
Managing Director, Putnam Investments
Beth S. Mazor (4/6/58)
Vice President
Since 2002
Senior Vice President, Putnam Investments
Daniel T. Gallagher (2/27/62)
Senior Vice President, Staff Counsel and Compliance Liaison
Since 2004
Prior to 2004, Associate, Ropes & Gray LLP; prior to 2000, Law Clerk,
Massachusetts Supreme Judicial Court
Francis J. McNamara, III (8/19/55)
Vice President and Chief Legal Officer
Since 2004
Senior Managing Director, Putnam Investments, Putnam Management and Putnam
Retail Management. Prior to 2004, General Counsel, State Street Research &
Management Company
James P. Pappas (2/24/53)
Vice President
Since 2004
Managing Director, Putnam Investments and Putnam Management. During 2002,
Chief Operating Officer, Atalanta/Sosnoff Management Corporation; prior to
2001, President and Chief Executive Officer, UAM Investment Services, Inc.
Richard S. Robie, III (3/30/60)
Vice President
Since 2004
Senior Managing Director, Putnam Investments, Putnam Management and Putnam
Retail Management. Prior to 2003, Senior Vice President, United Asset
Management Corporation
Charles A. Ruys de Perez (10/17/57)
Vice President and Chief Compliance Officer
Since 2004
Managing Director, Putnam Investments
Mark C. Trenchard (6/5/62)
Vice President and BSA Compliance Officer
Since 2002
Senior Vice President, Putnam Investments
Judith Cohen (6/7/45)
Vice President, Clerk and Assistant Treasurer
Since 1993
Wanda M. McManus (1/4/47)
Vice President, Senior Associate Treasurer and Assistant Clerk
Since 2005
Nancy T. Florek (6/13/57)
Vice President, Assistant Clerk, Assistant Treasurer and Proxy Manager
Since 2005
The address of each Officer is One Post Office Square, Boston, MA 02109.
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
Putnam Investment
Management, LLC
One Post Office Square
Boston, MA 02109
Marketing Services
Putnam Retail Management
One Post Office Square
Boston, MA 02109
Custodian
Putnam Fiduciary Trust Company
Legal Counsel
Ropes & Gray LLP
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
Trustees
John A. Hill, Chairman
Jameson Adkins Baxter
Charles B. Curtis
Myra R. Drucker
Charles E. Haldeman, Jr.
Paul L. Joskow
Elizabeth T. Kennan
John H. Mullin, III
Robert E. Patterson
George Putnam, III
W. Thomas Stephens
Richard B. Worley
Officers
George Putnam, III
President
Charles E. Porter
Executive Vice President, Associate
Treasurer and Principal Executive
Officer
Jonathan S. Horwitz
Senior Vice President and Treasurer
Steven D. Krichmar
Vice President and Principal Financial Officer
Michael T. Healy
Assistant Treasurer and Principal Accounting Officer
Beth S. Mazor
Vice President
Daniel T. Gallagher
Senior Vice President, Staff Counsel
and Compliance Liaison
James P. Pappas
Vice President
Richard S. Robie, III
Vice President
Mark C. Trenchard
Vice President and BSA Compliance Officer
Francis J. McNamara, III
Vice President and Chief Legal Officer
Charles A. Ruys de Perez
Vice President and Chief Compliance Officer
Judith Cohen
Vice President, Clerk and Assistant Treasurer
Wanda M. McManus
Vice President, Senior Associate Treasurer
and Assistant Clerk
Nancy T. Florek
Vice President, Assistant Clerk,
Assistant Treasurer and Proxy Manager
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.
[blank page]
[LOGO OMITTED]
PUTNAM INVESTMENTS
One Post Office Square
Boston, Massachusetts 02109
www.putnam.com
1-800-225-1581
Founded in 1937, Putnam Investments began with the principle
that a balance between risk and reward is the mark of
a well-rounded financial program. Today, we manage money
with a focus on seeking consistent results over time. This
balanced approach continues to underscore everything we do.
PRSRT STD
U.S. POSTAGE PAID
PUTNAM
INVESTMENTS
[GRAPHIC OMITTED: SCALE]
Not FDIC Insured May Lose Value No Bank Guarentee
AN097 227337 9/05
Putnam RetirementReady Funds
- ------------------------------------------------------------------------------
Supplement to Annual Report dated 7/31/05
The following information has been prepared to provide class Y shareholders
with a performance overview specific to their holdings. Class Y shares are
offered exclusively to clients that meet the eligibility requirements
RESULTS AT A GLANCE
- ------------------------------------------------------------------------------
Total return for periods ended 7/31/05
- ----------------------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam Putnam Putnam Putnam Putnam Putnam Putnam
Returns as Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement
of 7/31/05 Ready 2010 Ready 2015 Ready 2020 Ready 2025 Ready 2030 Ready 2035 Ready 2040 Ready 2045 Ready Maturity
- ----------------------------------------------------------------------------------------------------------------------------
Life of
funds 5.76 8.10 9.60 10.72 11.35 11.96 12.58 12.72 4.34
- ----------------------------------------------------------------------------------------------------------------------------
Share value (NAV)
- ----------------------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam Putnam Putnam Putnam Putnam Putnam Putnam
Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement
Ready 2010 Ready 2015 Ready 2020 Ready 2025 Ready 2030 Ready 2035 Ready 2040 Ready 2045 Ready Maturity
- ----------------------------------------------------------------------------------------------------------------------------
11/1/04 $59.18 $62.71 $64.69 $65.87 $66.78 $67.76 $68.61 $68.76 $56.08
- ----------------------------------------------------------------------------------------------------------------------------
7/31/05 $62.35 $67.48 $70.54 $72.50 $73.90 $75.37 $76.67 $76.88 $57.65
- ----------------------------------------------------------------------------------------------------------------------------
Distributions
- ----------------------------------------------------------------------------------------------------------------------------
Putnam Putnam Putnam Putnam Putnam Putnam Putnam Putnam Putnam
Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement
Ready 2010 Ready 2015 Ready 2020 Ready 2025 Ready 2030 Ready 2035 Ready 2040 Ready 2045 Ready Maturity
- ----------------------------------------------------------------------------------------------------------------------------
Number 1 1 1 1 1 1 1 1 9
- ----------------------------------------------------------------------------------------------------------------------------
Income $0.232 $0.298 $0.349 $0.418 $0.439 $0.474 $0.544 $0.603 $0.849
- ----------------------------------------------------------------------------------------------------------------------------
Capital Gains -- -- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total $0.232 $0.298 $0.349 $0.418 $0.439 $0.474 $0.544 $0.603 $0.849
- ----------------------------------------------------------------------------------------------------------------------------
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
Performance assumes reinvestment of distributions and does not account for
taxes. See full report for information on comparative benchmarks. If you
have questions, please consult your fund prospectus or call Putnam toll
Fund performance for the 2050 Fund is not included because the fund does not
yet have a full quarter of results. Its inception date is 5/2/05.
A short-term trading fee of up to 2% may apply.
Please see pages 23-25 of the accompanying shareholder report for a
discussion of the information appearing in the tables below:
- -------------------------------------------------------------------------
Putnam Putnam Putnam Putnam Putnam
Retirement Retirement Retirement Retirement Retirement
Ready 2010 Ready 2015 Ready 2020 Ready 2025 Ready 2030
- -------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
assuming actual returns for the period from 11/01/04 to 7/31/05
- -------------------------------------------------------------------------
Expenses
paid per
$1,000* $0.50 $0.51 $0.51 $0.51 $0.51
- -------------------------------------------------------------------------
Ending
value (after
expenses) $1,031.50 $1,041.80 $1,048.00 $1,052.00 $1,054.60
- -------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
assuming a hypothetical 5% annualized return for the period from 11/01/04
to 7/31/05
- -------------------------------------------------------------------------
Expenses $0.50 $0.50 $0.50 $0.50 $0.50
paid per
$1,000*
- -------------------------------------------------------------------------
Ending
value (after
expenses $1,024.30 $1,024.30 $1,024.30 $1,024.30 $1,024.30
- -------------------------------------------------------------------------
- --------------------------------------------------------------------------
Putnam Putnam Putnam Putnam Putnam
Retirement Retirement Retirement Retirement Retirement
Ready 2035 Ready 2040 Ready 2045 Ready 2050 Ready Maturity
- --------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
assuming actual returns for the period from 11/01/04 to 7/31/05
- --------------------------------------------------------------------------
Expenses
paid per
$1,000* $0.51 $0.51 $0.51 $0.26 $0.50
- --------------------------------------------------------------------------
Ending
value (after
expenses) $1,057.20 $1,060.00 $1,060.30 $1,041.60 $1,025.00
- --------------------------------------------------------------------------
EXPENSES AND VALUE OF A $1,000 INVESTMENT
assuming a hypothetical 5% annualized return for the period from 11/01/04
to 7/31/05
- --------------------------------------------------------------------------
Expenses $0.50 $0.50 $0.50 $0.25 $0.50
paid per
$1,000*
- --------------------------------------------------------------------------
Ending
value (after
expenses $1,024.30 $1,024.30 $1,024.30 $1,012.35 $1,024.30
- --------------------------------------------------------------------------
For the fund's most recent fiscal half year (for the 2050 fund, for the
period from May 2, 2005 (inception) through July 31, 2005); may differ from
expense ratios based on one-year data in financial highlights.
Item 2. Code of Ethics:
- -----------------------
(a) All officers of the Fund, including its principal executive, financial and
accounting officers, are employees of Putnam Investment Management, LLC,
the Fund's investment manager. As such they are subject to a comprehensive
Code of Ethics adopted and administered by Putnam Investments which is
designed to protect the interests of the firm and its clients. The Fund
has adopted a Code of Ethics which incorporates the Code of Ethics of
Putnam Investments with respect to all of its officers and Trustees who are
employees of Putnam Investment Management, LLC. For this reason, the Fund
has not adopted a separate code of ethics governing its principal
executive, financial and accounting officers.
(c) In July 2004, Putnam Investment Management, LLC, the Fund's investment
manager, Putnam Retail Management Limited Partnership, the Fund's principal
underwriter, and Putnam Investments Limited, the sub-manager for a portion
of the assets of certain funds as determined by Putnam Management from time
to time, adopted several amendments to their Code of Ethics. Some of these
amendments were adopted as a result of Putnam Investment Management's
partial settlement order with the SEC on November 13, 2003. Insofar as such
Code of Ethics applies to the Fund's principal executive officer, principal
financial officer and principal accounting officer, the amendments provided
for the following: (i) a 90-day blackout period for all shares of Putnam
open-end funds (except for money market funds) purchased or sold (including
exchanges into or out of a fund) by Putnam employees and certain family
members; (ii) a one-year holding period for all access persons that operates
in the same manner as the 90-day rule; (iii) delivery by Putnam employees to
the Code of Ethics Administrator of both quarterly account statements for
all brokerage accounts (irrespective of activity in the accounts) and
account statements for any Putnam funds not held at Putnam or for any funds
sub-advised by Putnam; (iv) a prohibition of Putnam employees from making
more than 25 trades in individual securities in their personal accounts in
any given quarter; (v) the extension of the existing prohibition of access
persons from a purchase and sale or sale and purchase of an individual
security within 60 days to include trading based on tax-lot election; (vi)
the inclusion of trades in Marsh & McLennan Companies, Inc. (ultimate parent
company of Putnam Investment Management) securities in pre-clearance and
reporting requirements; (vii) a prohibition of limit and good-until-canceled
orders as inconsistent with the requirements of daily pre-clearance; (viii)
new limits and procedures for accounts managed by outside managers and
brokers, in order for trading in such accounts to be exempt from
pre-clearance requirements; (ix) a new gift and entertainment policy that
imposes a reporting obligation on all meals and entertainment and new limits
on non-meal entertainment; (x) a number of alternatives for the reporting of
irregular activity.
In December 2004, additional amendments to the Code of Ethics were adopted.
Insofar as such Code of Ethics applies to the Fund's principal executive
officer, principal financial officer and principal accounting officer, the
amendments provided for the following: (i) implementation of minimum
monetary sanctions for violations of the Code; (ii) expansion of the
definition of "access person" under the Code include all Putnam employees
with access to non-public information regarding Putnam-managed mutual fund
portfolio holdings; (iii) lengthening the period during which access persons
are required to complete quarterly reports; (iv) reducing the maximum number
of trades than can be made by Putnam employees in their personal accounts in
any calendar quarter from 25 trades to 10 trades; and (v) lengthening the
required holding period for securities by access persons from 60 days to 90
days.
In March 2005, additional amendments to the Code of Ethics were adopted,
that went into effect on April 1, 2005. Insofar as such Code of Ethics
applies to the Fund's principal executive officer, principal financial
officer and principal accounting officer, the amendments (i) prohibit Putnam
employees and their immediate family members from having any direct or
indirect personal financial interest in companies that do business with
Putnam (excluding investment holdings in public companies that are not
material to the employee), unless such interest is disclosed and approved by
the Code of Ethics Officer; (ii) prohibit Putnam employees from using Putnam
assets, letterhead or other resources in making political or campaign
contributions, solicitations or endorsements;(iii) require Putnam employees
to obtain pre-clearance of personal political or campaign contributions or
other gifts to government officials or political candidates in certain
jurisdictions and to officials or candidates with whom Putnam has or is
seeking to establish a business relationship and (iv) require Putnam
employees to obtain pre-approval from Putnam's Director of Government
Relations prior to engaging in lobbying activities.
In July 2005, additional amendments to the Code of Ethics were adopted.
Insofar as such Code of Ethics applies to the Fund's principal executive
officer, principal financial officer and principal accounting officer, the
amendments provided for an exception to the standard 90-day holding period
(one year, in the case of employees deemed to be "access persons" under the
Code) for shares of Putnam mutual funds in the case of redemptions from an
employee's account in a college savings plan qualified under Section 529 of
the Internal Revenue Code. Under this exception, an employee may, without
penalty under the Code, make "qualified redemptions" of shares from such an
account less than 90 days (or one year, as applicable) after purchase.
"Qualified redemptions" include redemptions for higher education purposes
for the account beneficiary and redemptions made upon death or disability.
The July 2005 amendments also provide that an employee may, for purposes of
the rule limiting the number of trades per calendar quarter in an employee's
personal account to a maximum of 10, count all trades of the same security
in the same direction (all buys or all sells) over a period of five
consecutive business days as a single trade.
Item 3. Audit Committee Financial Expert:
- -----------------------------------------
The Funds' Audit and Pricing Committee is comprised solely of Trustees
who are "independent" (as such term has been defined by the Securities
and Exchange Commission ("SEC") in regulations implementing Section 407
of the Sarbanes-Oxley Act (the "Regulations")). The Trustees believe
that each of the members of the Audit and Pricing Committee also possess
a combination of knowledge and experience with respect to financial
accounting matters, as well as other attributes, that qualify them for
service on the Committee. In addition, the Trustees have determined
that all members of the Funds' Audit and Pricing Committee meet the
financial literacy requirements of the New York Stock Exchange's rules
and that Mr. Patterson, Mr. Stephens and Mr. Worley qualify as "audit
committee financial experts" (as such term has been defined by the
Regulations) based on their review of their pertinent experience and
education. Certain other Trustees, although not on the Audit and Pricing
Committee, would also qualify as "audit committee financial experts."
The SEC has stated that the designation or identification of a person as
an audit committee financial expert pursuant to this Item 3 of Form N-CSR
does not impose on such person any duties, obligations or liability that
are greater than the duties, obligations and liability imposed on such
person as a member of the Audit and Pricing Committee and the Board of
Trustees in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services:
- -----------------------------------------------
The following table presents fees billed for the last fiscal year for
services rendered to the Trust by the Trust's independent auditors:
Audit Audit-Related Tax All Other
Fiscal year ended Fees Fees Fees Fees
- ----------------- ---------- ------------- ------- ---------
July 31, 2005* $99,425 $-- $28,575 $--
* The Trust commenced operations on November 1, 2004.
For the fiscal year ended July 31, 2005 the Trust's independent auditors
billed aggregate non-audit fees in the amount of $ 223,904 to the Trust,
Putnam Management and any entity controlling, controlled by or under common
control with Putnam Management that provides ongoing services to the Trust.
Audit Fees represents fees billed for the Trust's last years.
Audit-Related Fees represents fees billed in the Fund's last fiscal year for
services traditionally performed by the fund's auditor, including accounting
consultation for proposed transactions or concerning financial accounting
and reporting standards and other audit or attest services not required by
statute or regulation.
Tax Fees represent fees billed in the Trust's last fiscal year for tax
compliance, tax planning and tax advice services. Tax planning and tax
advice services include assistance with tax audits, employee benefit plans
and requests for rulings or technical advice from taxing authorities.
Pre-Approval Policies of the Audit and Pricing Committee. The Audit and
Pricing Committee of the Putnam funds has determined that, as a matter of
policy, all work performed for the funds by the funds' independent auditors
will be pre-approved by the Committee and will generally not be subject to
pre-approval procedures.
Under certain circumstances, the Audit and Pricing Committee believes that
it may be appropriate for Putnam Investment Management, LLC ("Putnam
Management") and certain of its affiliates to engage the services of the
Trusts' independent auditors, but only after prior approval by the
Committee. Such requests are required to be submitted in writing to the
Committee and explain, among other things, the nature of the proposed
engagement, the estimated fees, and why this work must be performed by that
particular audit firm. The Committee will review the proposed engagement at
its next meeting.
Since May 6, 2003, all work performed by the independent auditors for the
funds, Putnam Management and any entity controlling, controlled by or under
common control with Putnam Management that provides ongoing services to the
Trust was pre-approved by the Committee or a member of the Committee
pursuant to the pre-approval policies discussed above. Prior to that date,
the Committee had a general policy to pre-approve the independent auditor's
engagements for non-audit services with the funds, Putnam Management and any
entity controlling, controlled by or under common control with Putnam
Management that provides ongoing services to the Trust.
The following table presents fees billed by the Trust's principal auditor
for services required to be approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X.
Audit-Related Tax All Other Total Non-
Fiscal year ended Fees Fees Fees Audit Fees
- ----------------- ------------- ---- --------- ----------
July 31, 2005 $-- $-- $-- $--
Item 5. Audit Committee: Not applicable
- -------------------------
Item 6. Schedule of Investments: Not applicable
- --------------------------------
Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End
- -------------------------------------------------------------------------
Management Investment Companies: Not applicable
--------------------------------
Item 8. Purchases of Equity Securities by Closed-End Management Investment
- --------------------------------------------------------------------------
Companies and Affiliated Purchasers: Not applicable
------------------------------------
Item 9. Submission of Matters to a Vote of Security Holders:
- ------------------------------------------------------------
Not applicable
Item 10. 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:
Not applicable
Item 11. Exhibits:
- ------------------
(a) The Code of Ethics of The Putnam Funds, which incorporates the
Code of Ethics of Putnam Investments, is filed herewith.
(b) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2
under the Investment Company Act of 1940, as amended, and the officer
certifications as required by Section 906 of the Sarbanes-Oxley Act
of 2002 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.
NAME OF REGISTRANT
By (Signature and Title): /s/Michael T. Healy
--------------------------
Michael T. Healy
Principal Accounting Officer
Date: September 28, 2005
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: September 28, 2005
By (Signature and Title): /s/Steven D. Krichmar
---------------------------
Steven D. Krichmar
Principal Financial Officer
Date: September 28, 2005