For investment professional use only. Not for public distribution. 292884 2/15 Not FDIC Insured May...

For investment professional use only. Not for public distribution.292884 2/15

Not FDIC Insured

May Lose Value

No BankGuarantee

Putnam 529 for AmericaSM Scholarship Account

PresenterTitleDepartment

2For investment professional use only. Not for public distribution.292884 2/15

Why establish a 529 scholarship?

• Establishing a Putnam 529 for AmericaSM plan account as the funding vehicle for a scholarship isa great way for [your organization] to provide assistance, incentives, or rewards in the form of a college education

• A Putnam 529 for America plan offers an attractive combination of tax-free growth and distribution, control over withdrawals, and no contribution limit* until the scholarship is awarded and a beneficiary is designated

* Contributions should be in line with anticipated scholarship awards.


529 scholarship fund benefits

• Cost effective– Eliminates record-keeping and administrative fees, putting more scholarship

money to work

• Account control – [your organization] retains control over the account and all distributions– Beneficiary(ies) can be named when the award is given

• Convenient – Anyone can be the beneficiary– Proceeds from the scholarship account can be sent directly to the educational institution on

behalf of recipient– Account can be continued in perpetuity even if awards are given to beneficiary(ies) each year

or periodically

• Professional management: access to 18 investment options from Putnam Investments and other prominent money managers


Scholarship accounts: Eligibility

Can be established by 501(c)(3) entities such as:

• State or local governments

• Religious, educational, and charitable organizations

• Other tax-exempt organizations


529 scholarship fund benefits

• Establishing an account– Complete a Putnam 529 for America new account application

• John Smith, authorized signer or trustee of [organization name] in the “Tax Exempt or Governmental Owner” section

• [organization name]’s tax ID number in place of beneficiary’s Social Security number• Reference the Scholarship Fund name in place of beneficiary name*

• Contributions– [organization name] controls all contributions– Unlimited account contributions as long as the amount is consistent with the scope and size

of the scholarship program award

• Distributions– [organization name] controls all distributions– One of four ways to distribute the funds:

• Check paid directly to the school• Check paid directly to the beneficiary• New account set up for the beneficiary with the parent as owner• New account set up for the beneficiary with [organization name] as owner

* Designate the beneficiary/recipient as scholarships are awarded each year or periodically.


Putnam 529 for America scholarship plan features

• High account value limit of $370,000*

• 18 investment options– Three goal-based asset allocation portfolio options– Eleven individual fund options– Four Absolute Return Fund options

• DALBAR award-winning service

* As of 1/1/15. Subject to annual review. For scholarship accounts, there is no contribution limit although contributions should be in line with anticipated scholarship awards.


Goal-based portfolios

• Are actively managed and keep the same allocation mix, regardless of the child’s age

Allocations shown are target allocations; actual allocations may vary. See the offering statement for details.

Balanced Aggressive growthGrowth

Stocks

Bonds

Cash 85%

15%34%

6%60%

100%

Balanced option Growth option Aggressive growth option

• Putnam 529 GAA Growth Portfolio

• Putnam 529 Balanced Portfolio

• Putnam 529 Money Market Portfolio

• Invests in Putnam 529 GAA Growth Portfolio and Putnam 529 All Equity Portfolio

• Invests in Putnam 529 GAA All Equity Portfolio


Individual investment options

* Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other governmental agency.The plan involves investment risk, including the loss of principal.

Build your own portfolio with a range of choicesStocks Bonds Cash

• Putnam Equity Income Option

• Putnam International Capital Opportunities Fund Option

• Putnam Voyager Option

• Putnam Small Cap Value Fund Option

• MFS Institutional International Equity Fund Option

• Principal MidCap Blend Fund Option

• SSgA S&P 500® Index Fund Option

• Putnam High Yield Trust Option

• Putnam Income Option

• Federated U.S. Government Securities Fund: 2-5 years Option

• Putnam Money Market Option*


Absolute Return Funds

• Putnam 529 for America is the only 529 account to offer a suite of absolute return funds as an investment option

• The funds seek positive 3-year return targets of 1%, 3%, 5%, or 7% above inflation as measured by T-bills and with lower relative volatility

Chart does not represent the performance of Putnam Absolute Return Funds. Actual performance can be found on putnam.com.

The funds’ strategies are designed to be largely independent of market direction, and the funds are not intended to outperform stocks and bonds during strong market rallies. There is no guarantee that the funds will meet their objectives.

Absolute return investing can be an ally in helpingto navigate today’s market volatility

+7%

+5%

+3%

+1%

® ® ® ®


Putnam Absolute Return Funds

The funds’ strategies are designed to be largely independent of market direction, and the funds are not intended to outperform stocks and bonds during strong market rallies.

Consider these risks before investing: Our allocation of assets among permitted asset categories may hurt performance. The prices of stocks and bonds in the funds’ portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including both general financial market conditions and factors related to a specific issuer or industry. Our active trading strategy may lose money or not earn a return sufficient to cover associated trading and other costs. Our use of leverage obtained through derivatives increases these risks by increasing investment exposure. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have ongoing fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging-market securities, including illiquidity and volatility. Our use of derivatives may increase these risks by increasing investment exposure (which may be considered leverage) or, in the case of many over-the-counter instruments, because of the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. The funds may not achieve their goal, and they are not intended to be a complete investment program. The funds’ effort to produce lower-volatility returns may not be successful and may make it more difficult at times for the fund to achieve their targeted return. In addition, under certain market conditions, the funds may accept greater volatility than would typically be the case, in order to seek their targeted return. For the 500 Fund and 700 Fund these risks also apply: REITs involve the risks of real estate investing, including declining property values. Commodities involve the risks of changes in market, political, regulatory, and natural conditions. Additional risks are listed in the funds’ prospectus. You can lose money by investing in the funds.

Putnam Absolute Return 100 Fund® option




For investors considering short-term securities. Invests in bonds and cash instruments

For investors considering a bond fund. Invests in bonds and cash instruments

For investors considering a balanced fund. Can invest in bonds, stocks, or alternative asset classes

For investors considering a stock fund. Can invest in bonds, stocks, or alternative asset classes

Getting started is easy


• Contact [insert broker name]

• Call 877-PUTNAM529 (877-788-6265)

• Visit putnam.com


Invest in their futurePutnam 529 for America

For investment professional use only. Not for public distribution. 292884 2/15 Not FDIC Insured May...

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