Company Press Release

BOSTON, November 3, 2011 – Putnam Investments today announced that it has launched the Putnam Short Duration Income Fund (Class A: PSDTX), which seeks to combine some of the most appealing characteristics of both money market funds and ultra-short bond funds, in an effort to meet a growing marketplace demand among both retail and institutional investors. The new Fund will strive for a higher rate of current income than is typical of money market funds and a have a greater focus on capital preservation than is usually associated with ultra short bond funds, with the goal of maintaining liquidity.

“In today’s environment, investors are demanding higher yields, but at the same time are understandably concerned about market risk,” said Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments. “The Putnam Short Duration Income Fund is a unique offering that addresses each of these factors, seeking to generate a high rate of current income, while simultaneously working to preserve capital.

“It is a far more compelling investment vehicle than today’s money market fund, filling a definite need in the market, and we expect that it will continue to be a powerful offering for years to come,” Reynolds explained.

Like many other types of funds, including money market funds, the Short Duration Income Fund offers a check-writing feature, through which investors may redeem shares by writing checks. This feature provides a convenient supplement to conventional bank checking accounts.

In seeking to fulfill its objective, the Putnam Short Duration Income Fund will invest in a diversified portfolio of fixed-income securities composed of short duration, investment-grade money market, and other fixed income securities. Its primary benchmark will be the BofA Merrill Lynch U.S. Treasury Bill Index.

Among its more traditional short-term and money-market securities holdings, the Fund will invest in certificates of deposits, commercial paper, time deposits, repurchase agreements and U.S. government securities, including Treasury Bonds and other fixed income instruments. Additionally, the Fund will invest in asset-backed securities, investment-grade corporate bonds, sovereign debt, and will make prudent use of derivatives to help mitigate risk. The fund will make daily accruals and pay distributions monthly.

“The Putnam Short Duration Income Fund is an excellent alternative for investors – individuals and corporations -- who generally want to try to strike a balance between generating greater yields through a broader range of investment grade securities, while focusing on the goal of managing risk and preserving capital,” said Reynolds.

The new fund will offer investors the benefits of the intensive fundamental research and proprietary risk management performed by a Putnam fixed-income team whose members have extensive expertise in money market securities and other short-term investments. It will be managed by a team of veteran Putnam portfolio managers, led by Michael V. Salm, Co-Head of Fixed-Income.

About Putnam Investments

Founded in 1937, Putnam Investments is a leading global money-management firm with over 70 years of investment experience. At the end of August 2011, Putnam had $122 billion in assets under management, including mutual fund assets of $62 billion and institutional assets of $60 billion. Putnam has offices in Boston, London, Frankfurt, Amsterdam, Tokyo, Singapore and Sydney. For more information, visit putnam.com.


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