N-CSRS 1 a_retirementadvantage.htm PUTNAM TARGET DATE FUNDS a_retirementadvantage.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES




Investment Company Act file number: (811-21598)
Exact name of registrant as specified in charter: Putnam Target Date Funds
Address of principal executive offices: 100 Federal Street, Boston, Massachusetts 02110
Name and address of agent for service: Stephen Tate, Vice President
100 Federal Street
Boston, Massachusetts 02110
Copy to:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
         James E. Thomas, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: August 31, 2023
Date of reporting period: September 1, 2022 – February 28, 2023



Item 1. Report to Stockholders:

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940:



 

Putnam Retirement
Advantage
Funds

Putnam Retirement Advantage 2065 Fund  Putnam Retirement Advantage 2040 Fund 
Putnam Retirement Advantage 2060 Fund  Putnam Retirement Advantage 2035 Fund 
Putnam Retirement Advantage 2055 Fund  Putnam Retirement Advantage 2030 Fund 
Putnam Retirement Advantage 2050 Fund  Putnam Retirement Advantage 2025 Fund 
Putnam Retirement Advantage 2045 Fund  Putnam Retirement Advantage Maturity Fund 

 

Semiannual report
2 | 28 | 23

 


 

Message from the Trustees

April 10, 2023

Dear Fellow Shareholder:

In the first few months of 2023, we have seen continued U.S. economic growth, a strong jobs market, and persistent inflation. Stocks and bonds rallied in January but pulled back when reports of rising prices caused concern that the U.S. Federal Reserve would raise interest rates more than expected. Generally speaking, the Fed wants to slow economic activity to ease price pressures, but without causing a recession.

While Putnam’s investment teams are aware of the Fed’s balancing act, they remain focused on analyzing companies and individual securities. They see the potential risks in today’s economic environment but also monitor how businesses adjust and strive to perform well, even in an uncertain economy. Their insights help them carefully select securities and build portfolios to pursue returns for you.

Thank you for investing with Putnam.



 

Performance history as of 2/28/23


Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, and you may have a gain or a loss when you sell your shares. Performance of class A shares assumes reinvestment of distributions and does not account for taxes. Fund returns in the table above do not reflect a sales charge of 4.00% for Retirement Advantage Maturity Fund and 5.75% for all other funds; had they, returns would have been lower. See below and pages 8–21 for additional performance information. For a portion of the periods, the funds had expense limitations, without which returns would have been lower. To obtain the most recent month-end performance, visit putnam.com.

The short-term results of a relatively new fund are not necessarily indicative of its long-term prospects.

* The inception date of each fund (other than the 2065 Fund) is 12/31/19. For these funds, performance of class A shares before their inception date (9/1/20) is derived from the historical performance of class R6 shares, and has been adjusted for the higher operating expenses for class A shares. The inception date of the 2065 Fund is 12/30/20.

Returns for periods of less than one year are not annualized.


This comparison shows the performance of broad market indexes for the six months ended 2/28/23. See above and pages 8–21 for fund performance information. Index descriptions can be found on pages 28–29.

All Bloomberg indices are provided by Bloomberg Index Services Limited.

2 Retirement Advantage Funds 

 


 



How were market conditions during the six-month reporting period ended February 28, 2023?

Global equity and fixed income markets experienced heightened market volatility due to converging macroeconomic risks and economic uncertainty. High inflation, monetary policy tightening, the Russia-Ukraine War, and weakening global growth weighed on market sentiment at times, as investors swung between risk-on and risk-off investment strategies.

Both equity and fixed income markets experienced weakness at the start of the period. This was due to the Federal Reserve’s commitment to a restrictive monetary policy stance until inflation reaches its 2% target. The Fed raised interest rates four times during the period, with increases of 75 basis points [bps] in September and November 2022, followed by smaller increases of 50 bps in December 2022 and 25 bps in February 2023.

Markets began to rally in October and November 2022 with the hope that inflation had peaked and the Fed would begin to slow the pace of interest-rate hikes. But a higher-than-expected November 2022 jobs

Retirement Advantage Funds 3 

 


 

report and rising Producer Price Index data led to a sell-off in December 2022. Fed officials indicated they would continue raising interest rates in 2023 until there was enough evidence inflation was sustainably trending downward.

Equity and fixed income markets began calendar 2023 on a strong note in January due to signs of cooling inflation. However, volatility picked up again in February due to renewed fears that the Fed might lift interest rates more than anticipated following the release of rising inflation data and continued labor market tightness in January.

For the six-month reporting period, U.S. stocks returned 1.26%, as measured by the S&P 500 Index. International stocks fared better, returning 12.58%, as measured by the MSCI EAFE Index [ND]. Investment-grade bonds posted a loss, with the Bloomberg U.S. Aggregate Bond Index returning –2.13%. The yield on the 10-year U.S. Treasury note began the period at 3.15% and ended the period at 3.92%. The yield curve remained inverted over the six months, which in past economic cycles has been an indicator of a recession to come. [The yield curve is a graphical representation of the yields/interest rates of bonds with equal credit quality but differing maturity dates.]

How did the Putnam Retirement Advantage Funds perform during the six months ended February 28, 2023?

All the Retirement Advantage Funds delivered positive returns, primarily as a result of global equity market strength. However, the funds trailed their respective S&P benchmarks due to having less exposure to foreign equities in the early vintages and more duration in the later vintages. [Duration is a measure of the funds’ interest-rate sensitivity.]

Putnam Retirement Advantage Funds invest in one or more Putnam mutual funds [underlying funds] to create a diversified target-date portfolio. We use an important tool called a glide path to determine the funds’ allocations among asset classes and the underlying funds over time. With the glide path as a reference point, our portfolio managers make tactical decisions based on our analysis of current market risks and opportunities. Funds intended for investors further from retirement outperformed near-retirement funds during the period.

What strategies contributed to performance and what detracted?

Overall, our asset allocation decisions lifted benchmark-relative performance. The contribution from equity allocation decisions was additive. We started the period with underweight exposure to equity risk and moved further underweight relative to the benchmark in the middle of November 2022. We maintained this position until the end of the period. The funds were neutral to interest-rate risk for most of the period. We moved the position to modestly underweight at the beginning of February 2023, which led to a gain. An out-of-benchmark position in commodities that ranged from modestly long to long led to a loss. Security selection boosted benchmark-relative performance. Our quantitative U.S. large-cap core and fundamental U.S. large-cap value equity strategies augmented performance. Portfolios for savers furthest from retirement experienced additional gains from our fundamental emerging market equity strategy.

What is your near-term outlook for the markets?

Volatility was a major constant across markets in 2022. We expect high inflation, monetary policy tightening, the war in Ukraine, and recession fears will continue to weigh on market sentiment for the foreseeable future.

Our near-term outlook for equities is bearish. We believe the market is too optimistic with respect to a Fed monetary policy pivot. We

4 Retirement Advantage Funds 

 


 

also believe the Fed is unlikely to execute a soft landing and will either continue raising interest rates more than the market anticipates or break the economy and trigger a recession. Both paths would prove negative for equities, in our view.

Our near-term outlook for interest-rate-sensitive fixed income is neutral. With January 2023 economic data staying strong and inflation prints remaining elevated, bond market prices now reflect more near-term interest-rate hikes and a higher Fed terminal rate, in our view. As a result, we believe duration risks appear more balanced going forward.

Our view on commodities is slightly bullish. A strengthening U.S. dollar, rising real yields [which adjust for the impact of inflation], and building recessionary forces are headwinds for commodities, in our view. But, in the medium term, we believe supply constraints are a reason to be bullish.

Against this backdrop, we continue to have conviction in our investment strategies given our ability to adapt the portfolio to changing market conditions.

Thank you, Brett, for this update on the fund.

The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice.

Please note that the holdings discussed in this report may not have been held by each fund for the entire period. Portfolio composition is subject to review in accordance with each fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

ABOUT DERIVATIVES

Derivatives are an increasingly common type of investment instrument, the performance of which is derived from an underlying security, index, currency, or other area of the capital markets. Derivatives employed by the underlying funds’ managers generally serve one of two main purposes: to implement a strategy that may be difficult or more expensive to invest in through traditional securities, or to hedge unwanted risk associated with a particular position.

For example, the underlying funds’ managers might use currency forward contracts to capitalize on an anticipated change in exchange rates between two currencies. This approach would require a significantly smaller outlay of capital than purchasing traditional bonds denominated in the underlying currencies. In another example, the managers may identify a bond that they believe is undervalued relative to its risk of default, but may seek to reduce the interest-rate risk of that bond by using interest-rate swaps, a derivative through which two parties “swap” payments based on the movement of certain rates. In other examples, the managers may use options and futures contracts to hedge against a variety of risks by establishing a combination of long and short exposures to specific equity markets or sectors.

Like any other investment, derivatives may not appreciate in value and may lose money. Derivatives may amplify traditional investment risks through the creation of leverage and may be less liquid than traditional securities. And because derivatives typically represent contractual agreements between two financial institutions, derivatives entail “counterparty risk,” which is the risk that the other party is unable or unwilling to pay. Putnam monitors the counterparty risks we assume. For example, Putnam often enters into collateral agreements that require the counterparties to post collateral on a regular basis to cover their obligations to the funds. Counterparty risk for exchange-traded futures and centrally cleared swaps is mitigated by the daily exchange of margin and other safeguards against default through their respective clearinghouses.

Retirement Advantage Funds 5 

 


 

Composition of the funds’ underlying investments

Historically, each Putnam Retirement Advantage Fund invests, to varying degrees, in a variety of Putnam mutual funds. This section describes the goals and strategies of each of the underlying Putnam funds as of February 28, 2023. For more information, please see each fund’s prospectus.

Putnam Dynamic Asset Allocation Equity Fund

The fund’s portfolio invests mainly in common stocks (growth or value stocks or both) of large and midsize companies worldwide and is designed for investors seeking long-term growth. The fund typically allocates approximately 75% of its assets to investments in U.S. companies and 25% of its assets to international companies, but allocations may vary. The Portfolio Managers can adjust allocations based on market conditions.

Putnam Dynamic Asset Allocation Growth Fund

The fund’s portfolio invests mainly in equity securities (growth or value stocks or both) of U.S. and international companies of any size and is designed for investors seeking capital appreciation with moderate risk. The fund’s strategic equity weighting is 80% (the range is 65% to 95%), with the balance invested in a range of fixed income investments. The Portfolio Managers can adjust allocations based on market conditions.

Putnam Dynamic Asset Allocation Balanced Fund

The fund’s portfolio is diversified across stocks and bonds in global markets and is designed for investors seeking total return. The fund’s strategic equity allocation is 60% (the range is 45% to 75%), with the balance invested in bonds and money market instruments. The Portfolio Managers can adjust the allocations based on market conditions.

Putnam Dynamic Asset Allocation Conservative Fund

The fund’s globally diversified portfolio emphasizes bonds over stocks and is designed for investors who want to protect the value of their investment while receiving regular income and protection against inflation. The strategic fixed income allocation is 70% (with a range of 55% to 85%), with the balance invested in stocks and money market instruments. The Portfolio Managers can adjust allocations based on market conditions.

Putnam Multi-Asset Income Fund*

The portfolio focuses on fixed income securities, including U.S. government obligations, corporate bonds, and securitized debt instruments of any credit quality. The fund’s strategic fixed income allocation is 73% (with a range of 50% to 95%) with the balance invested in equities (with a range of 5% to 50%) and other instruments. The Portfolio Managers can adjust allocations based on market conditions.

Putnam Short Term Investment Fund

The fund invests in a diversified portfolio of short-duration, investment-grade fixed income securities to generate income, maintain liquidity, and preserve capital. The portfolio includes U.S. Treasuries, agency mortgage-backed securities, and a variety of investment-grade corporate bonds and notes.

Each Retirement Advantage Fund has a different target date indicating when each fund’s investors expect to retire and begin withdrawing assets from their account, typically at retirement. The funds are generally weighted more heavily toward more aggressive, higher-risk investments when the target date of the fund is far off, and more conservative, lower-risk investments when the target date of the fund is near. The principal value of the funds is not guaranteed at any time, including the target date.

* Prior to July 12, 2022, Putnam Multi-Asset Income Fund was known as Putnam Income Strategies Portfolio.

6 Retirement Advantage Funds 

 


 

Allocations by fund as of 2/28/23

Underlying Putnam Fund  2065 Fund  2060 Fund  2055 Fund  2050 Fund  2045 Fund  2040 Fund  2035 Fund  2030 Fund  2025 Fund  Maturity Fund 
Putnam Dynamic Asset Allocation                     
Equity Fund Class P  78.2%  70.7%  49.3%  23.8%  2.8%  0.0%  0.0%  0.0%  0.0%  0.0% 
Putnam Dynamic Asset Allocation                     
Growth Fund Class P  21.3%  28.8%  50.1%  75.6%  95.4%  69.9%  19.3%  0.0%  0.0%  0.0% 
Putnam Dynamic Asset Allocation                     
Balanced Fund Class P  0.0%  0.0%  0.0%  0.0%  0.0%  27.1%  76.7%  57.9%  8.3%  0.0% 
Putnam Dynamic Asset Allocation                     
Conservative Fund Class P  0.0%  0.0%  0.0%  0.0%  0.0%  0.0%  0.0%  26.3%  48.3%  0.0% 
Putnam Multi-Asset Income                     
Fund Class P  0.0%  0.0%  0.0%  0.0%  0.0%  0.0%  0.0%  10.6%  37.5%  94.1% 
Putnam Short Term Investment                     
Fund Class G  0.5%  0.5%  0.5%  0.5%  1.8%  3.0%  3.9%  5.1%  6.0%  5.9% 

 

Percentages are based on net assets as of 2/28/23. Portfolio composition will vary over time. Due to rounding, percentages may not equal 100%.

 

Retirement Advantage Funds 7 

 


 

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended February 28, 2023, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance information as of the most recent calendar quarter-end and expense information taken from the fund’s current prospectus. Performance should always be considered in light of a fund’s investment strategy. Data represent 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. The short-term results of a relatively new fund are not necessarily indicative of its long-term prospects. Performance information does not reflect any deduction for taxes a shareholder may owe on fund distributions or on the redemption of fund shares. For the most recent month-end performance, please visit the Individual Investors section at putnam.com or call Putnam at 1-800-225-1581. Class R, R3, R4, R5, R6, and Y shares are not available to all investors. See the Terms and definitions section in this report for definitions of the share classes offered by the funds.

Fund performance Total return for periods ended 2/28/23

  Life of fund  1 year  6 months 
2065 Fund       
Class A (12/30/20)       
Before sales charge    1.65%  –7.01%  3.74% 
After sales charge    –1.10  –12.35  –2.22 
Class C (12/30/20)       
Before CDSC    0.89  –7.73  3.27 
After CDSC    0.89  –8.60  2.28 
Class R (12/30/20)       
Net asset value    1.28  –7.33  3.58 
Class R3 (12/30/20)       
Net asset value    1.49  –7.22  3.59 
Class R4 (12/30/20)       
Net asset value    1.77  –6.88  3.75 
Class R5 (12/30/20)       
Net asset value    1.91  –6.82  3.80 
Class R6 (12/30/20)       
Net asset value    2.01  –6.72  3.91 
Class Y (12/30/20)       
Net asset value  1.92  –6.74  3.91 

 

8 Retirement Advantage Funds 

 


 

Fund performance Total return for periods ended 2/28/23 cont.

  Life of fund  3 years  1 year  6 months 
2060 Fund         
Class A (9/1/20)         
Before sales charge  6.01%  9.50%  –6.92%  3.79% 
After sales charge  4.05  7.36  –12.27  –2.18 
Class C (9/1/20)         
Before CDSC  5.20  8.68  –7.76  3.28 
After CDSC  5.20  8.68  –8.63  2.31 
Class R (9/1/20)         
Net asset value  5.55  9.07  –7.38  3.49 
Class R3 (9/1/20)         
Net asset value  5.81  9.32  –7.22  3.55 
Class R4 (9/1/20)         
Net asset value  6.05  9.59  –6.91  3.78 
Class R5 (9/1/20)         
Net asset value  6.21  9.76  –6.82  3.87 
Class R6 (12/31/19)         
Net asset value  6.33  9.86  –6.72  3.87 
Class Y (9/1/20)         
Net asset value  6.21  9.77  –6.82  3.76 

 

  Life of fund  3 years  1 year  6 months 
2055 Fund         
Class A (9/1/20)         
Before sales charge  5.68%  9.06%  –7.15%  3.52% 
After sales charge  3.72  6.93  –12.49  –2.44 
Class C (9/1/20)         
Before CDSC  4.93  8.31  –7.79  3.13 
After CDSC  4.93  8.31  –8.64  2.18 
Class R (9/1/20)         
Net asset value  5.25  8.63  –7.47  3.27 
Class R3 (9/1/20)         
Net asset value  5.54  8.95  –7.22  3.44 
Class R4 (9/1/20)         
Net asset value  5.78  9.22  –6.92  3.65 
Class R5 (9/1/20)         
Net asset value  5.92  9.37  –6.91  3.65 
Class R6 (12/31/19)         
Net asset value  6.03  9.45  –6.82  3.66 
Class Y (9/1/20)         
Net asset value  5.92  9.37  –6.91  3.65 

 

Retirement Advantage Funds 9 

 


 

Fund performance Total return for periods ended 2/28/23 cont.

  Life of fund  3 years  1 year  6 months 
2050 Fund         
Class A (9/1/20)         
Before sales charge  5.32%  8.47%  –7.12%  3.29% 
After sales charge  3.37  6.35  –12.47  –2.65 
Class C (9/1/20)         
Before CDSC  4.54  7.69  –7.87  2.89 
After CDSC  4.54  7.69  –8.71  1.96 
Class R (9/1/20)         
Net asset value  4.89  8.04  –7.59  3.09 
Class R3 (9/1/20)         
Net asset value  5.14  8.32  –7.34  3.15 
Class R4 (9/1/20)         
Net asset value  5.39  8.59  –7.10  3.40 
Class R5 (9/1/20)         
Net asset value  5.55  8.77  –6.94  3.48 
Class R6 (12/31/19)         
Net asset value  5.66  8.85  –6.84  3.48 
Class Y (9/1/20)         
Net asset value  5.55  8.77  –6.93  3.49 

 

  Life of fund  3 years  1 year  6 months 
2045 Fund         
Class A (9/1/20)         
Before sales charge  4.85%  7.77%  –7.22%  3.03% 
After sales charge  2.91  5.67  –12.56  –2.89 
Class C (9/1/20)         
Before CDSC  4.09  7.01  –7.88  2.63 
After CDSC  4.09  7.01  –8.71  1.70 
Class R (9/1/20)         
Net asset value  4.46  7.38  –7.48  2.95 
Class R3 (9/1/20)         
Net asset value  4.71  7.66  –7.32  3.01 
Class R4 (9/1/20)         
Net asset value  4.93  7.90  –7.09  3.05 
Class R5 (9/1/20)         
Net asset value  5.08  8.07  –7.02  3.12 
Class R6 (12/31/19)         
Net asset value  5.20  8.16  –6.91  3.24 
Class Y (9/1/20)         
Net asset value  5.09  8.07  –6.93  3.23 

 

10 Retirement Advantage Funds 

 


 

Fund performance Total return for periods ended 2/28/23 cont.

  Life of fund  3 years  1 year  6 months 
2040 Fund         
Class A (9/1/20)         
Before sales charge  4.55%  7.22%  –7.08%  2.74% 
After sales charge  2.62  5.12  –12.42  –3.17 
Class C (9/1/20)         
Before CDSC  3.78  6.45  –7.82  2.34 
After CDSC  3.78  6.45  –8.64  1.43 
Class R (9/1/20)         
Net asset value  4.13  6.79  –7.53  2.55 
Class R3 (9/1/20)         
Net asset value  4.38  7.07  –7.28  2.60 
Class R4 (9/1/20)         
Net asset value  4.59  7.30  –7.07  2.74 
Class R5 (9/1/20)         
Net asset value  4.75  7.47  –6.98  2.82 
Class R6 (12/31/19)         
Net asset value  4.90  7.60  –6.78  2.94 
Class Y (9/1/20)         
Net asset value  4.75  7.47  –6.98  2.82 

 

  Life of fund  3 years  1 year  6 months 
2035 Fund         
Class A (9/1/20)         
Before sales charge  3.92%  6.12%  –7.19%  2.05% 
After sales charge  1.99  4.04  –12.53  –3.82 
Class C (9/1/20)         
Before CDSC  3.16  5.37  –7.86  1.63 
After CDSC  3.16  5.37  –8.71  0.69 
Class R (9/1/20)         
Net asset value  3.51  5.71  –7.48  1.84 
Class R3 (9/1/20)         
Net asset value  3.76  5.99  –7.32  2.01 
Class R4 (9/1/20)         
Net asset value  3.98  6.22  –7.11  2.03 
Class R5 (9/1/20)         
Net asset value  4.13  6.39  –6.92  2.12 
Class R6 (12/31/19)         
Net asset value  4.25  6.48  –6.91  2.12 
Class Y (9/1/20)         
Net asset value  4.14  6.40  –6.92  2.12 

 

Retirement Advantage Funds 11 

 


 

Fund performance Total return for periods ended 2/28/23 cont.

  Life of fund  3 years  1 year  6 months 
2030 Fund         
Class A (9/1/20)         
Before sales charge  2.83%  4.47%  –7.48%  1.06% 
After sales charge  0.93  2.43  –12.80  –4.75 
Class C (9/1/20)         
Before CDSC  2.06  3.71  –8.23  0.61 
After CDSC  2.06  3.71  –9.09  –0.34 
Class R (9/1/20)         
Net asset value  2.40  4.04  –7.94  0.76 
Class R3 (9/1/20)         
Net asset value  2.69  4.36  –7.60  1.02 
Class R4 (9/1/20)         
Net asset value  2.89  4.57  –7.48  1.03 
Class R5 (9/1/20)         
Net asset value  3.05  4.75  –7.30  1.12 
Class R6 (12/31/19)         
Net asset value  3.16  4.83  –7.20  1.23 
Class Y (9/1/20)         
Net asset value  3.05  4.75  –7.29  1.13 

 

  Life of fund  3 years  1 year  6 months 
2025 Fund         
Class A (9/1/20)         
Before sales charge  0.86%  1.49%  –7.94%  0.30% 
After sales charge  –1.00  –0.49  –13.24  –5.47 
Class C (9/1/20)         
Before CDSC  0.11  0.72  –8.70  –0.20 
After CDSC  0.11  0.72  –9.60  –1.18 
Class R (9/1/20)         
Net asset value  0.44  1.07  –8.39  0.01 
Class R3 (9/1/20)         
Net asset value  0.71  1.36  –8.06  0.15 
Class R4 (9/1/20)         
Net asset value  0.93  1.59  –7.84  0.28 
Class R5 (9/1/20)         
Net asset value  1.08  1.75  –7.77  0.36 
Class R6 (12/31/19)         
Net asset value  1.19  1.84  –7.67  0.47 
Class Y (9/1/20)         
Net asset value  1.08  1.75  –7.77  0.36 

 

12 Retirement Advantage Funds 

 


 

Fund performance Total return for periods ended 2/28/23 cont.

  Life of fund  3 years  1 year  6 months 
Maturity Fund         
Class A (9/1/20)         
Before sales charge  0.38%  0.70%  –7.55%  0.62% 
After sales charge  –1.48  –1.27  –12.87  –5.16 
Class C (9/1/20)         
Before CDSC  –0.36  –0.05  –8.30  0.31 
After CDSC  –0.36  –0.05  –9.21  –0.68 
Class R (9/1/20)         
Net asset value  –0.03  0.30  –7.95  0.44 
Class R3 (9/1/20)         
Net asset value  0.23  0.54  –7.70  0.58 
Class R4 (9/1/20)         
Net asset value  0.43  0.79  –7.51  0.66 
Class R5 (9/1/20)         
Net asset value  0.59  0.96  –7.35  0.81 
Class R6 (12/31/19)         
Net asset value  0.71  1.05  –7.31  0.74 
Class Y (9/1/20)         
Net asset value  0.59  0.96  –7.35  0.81 

 

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After-sales-charge returns for class A shares reflect the deduction of the maximum 5.75% sales charge levied at the time of purchase. The maximum sales charges for Retirement Advantage Maturity Fund class A shares is 4.00%. Class C share returns after CDSC reflect a 1% CDSC for the first year that is eliminated thereafter. Class R, R3, R4, R5, R6, and Y shares have no initial sales charge or CDSC. The inception date of each fund (other than the 2065 Fund) is 12/31/19. For these funds, performance for class A, C, R, R3, R4, R5, and Y shares prior to their inception is derived from the historical performance of class R6 shares by adjusting for the higher applicable sales charges (in the case of after-sales-charge returns) and operating expenses for such shares.

Returns for periods of less than one year are not annualized.

For a portion of the periods, these funds had expense limitations, without which returns would have been lower.

Comparative index returns Total return for the period ended 2/28/23

    Life of       
    fund (since       
  Life of fund  12/30/20)*  3 years  1 year  6 months 
S&P Target Date To 2065+ Index    1.89%    –6.15%  4.26% 
S&P Target Date To 2060 Index  5.18%    8.59%  –6.37  4.25 
S&P Target Date To 2055 Index  4.95    8.36  –6.33  4.24 
S&P Target Date To 2050 Index  4.94    8.25  –6.38  4.14 
S&P Target Date To 2045 Index  4.64    7.86  –6.39  3.97 
S&P Target Date To 2040 Index  4.32    7.21  –6.44  3.43 
S&P Target Date To 2035 Index  3.98    6.38  –6.39  3.00 
S&P Target Date To 2030 Index  3.31    5.18  –6.27  2.36 
S&P Target Date To 2025 Index  2.60    3.91  –6.07  1.81 
S&P Target Date To Retirement Income Index  1.31    1.83  –6.30  0.85 

 

Index results should be compared with fund performance before sales charge, before CDSC, or at net asset value.

Returns for periods of less than one year are not annualized.

* The inception date of Putnam Retirement Advantage 2065 Fund.

Retirement Advantage Funds 13 

 


 

Fund price and distribution information For the six-month period ended 2/28/23

Distributions                 
      Capital gains         
      Long-term  Short-term         
  Number  Income  gains  gains  Total  Share value  8/31/22  2/28/23 
2065 Fund                 
           
Class A  1  $0.024  $0.436    $0.460  Before sales charge  $9.43  $9.30 
            After sales charge  10.01  9.87 
Class C  1    0.436    0.436  Net asset value  9.40  9.25 
Class R  1    0.436    0.436  Net asset value  9.42  9.30 
Class R3  1  0.001  0.436    0.437  Net asset value  9.44  9.32 
Class R4  1  0.035  0.436    0.471  Net asset value  9.46  9.32 
Class R5  1  0.040  0.436    0.476  Net asset value  9.47  9.33 
Class R6  1  0.050  0.436    0.486  Net asset value  9.47  9.33 
Class Y  1  0.040  0.436    0.476  Net asset value  9.46  9.33 
2060 Fund                 
           
Class A  1  $0.027  $0.553    $0.580  Before sales charge  $9.48  $9.23 
            After sales charge  10.06  9.79 
Class C  1    0.553    0.553  Net asset value  9.44  9.17 
Class R  1    0.553    0.553  Net asset value  9.46  9.21 
Class R3  1  0.006  0.553    0.559  Net asset value  9.48  9.23 
Class R4  1  0.036  0.553    0.589  Net asset value  9.49  9.23 
Class R5  1  0.045  0.553    0.598  Net asset value  9.50  9.24 
Class R6  1  0.055  0.553    0.608  Net asset value  9.51  9.24 
Class Y  1  0.045  0.553    0.598  Net asset value  9.51  9.24 
2055 Fund                 
             
Class A  1  $0.055  $0.767    $0.822  Before sales charge  $9.66  $9.14 
            After sales charge  10.25  9.70 
Class C  1    0.767    0.767  Net asset value  9.63  9.13 
Class R  1  0.003  0.767    0.770  Net asset value  9.65  9.16 
Class R3  1  0.028  0.767    0.795  Net asset value  9.67  9.17 
Class R4  1  0.058  0.767    0.825  Net asset value  9.68  9.17 
Class R5  1  0.068  0.767    0.835  Net asset value  9.69  9.17 
Class R6  1  0.078  0.767    0.845  Net asset value  9.70  9.17 
Class Y  1  0.068  0.767    0.835  Net asset value  9.69  9.17 
2050 Fund                 
           
Class A  1  $0.074  $0.869    $0.943  Before sales charge  $9.54  $8.87 
            After sales charge  10.12  9.41 
Class C  1    0.869    0.869  Net asset value  9.50  8.87 
Class R  1  0.018  0.869    0.887  Net asset value  9.52  8.89 
Class R3  1  0.043  0.869    0.912  Net asset value  9.54  8.89 
Class R4  1  0.075  0.869    0.944  Net asset value  9.55  8.89 
Class R5  1  0.082  0.869    0.951  Net asset value  9.56  8.90 
Class R6  1  0.092  0.869    0.961  Net asset value  9.57  8.90 
Class Y  1  0.083  0.869    0.952  Net asset value  9.56  8.90 

 

14 Retirement Advantage Funds 

 


 

Fund price and distribution information For the six-month period ended 2/28/23 cont.

Distributions                 
      Capital gains         
      Long-term  Short-term         
  Number  Income  gains  gains  Total  Share value  8/31/22  2/28/23 
2045 Fund                 
           
Class A  1  $0.105  $0.919    $1.024  Before sales charge  $9.68  $8.91 
            After sales charge  10.27  9.45 
Class C  1  0.028  0.919    0.947  Net asset value  9.65  8.92 
Class R  1  0.058  0.919    0.977  Net asset value  9.67  8.94 
Class R3  1  0.083  0.919    1.002  Net asset value  9.69  8.94 
Class R4  1  0.116  0.919    1.035  Net asset value  9.71  8.93 
Class R5  1  0.123  0.919    1.042  Net asset value  9.72  8.94 
Class R6  1  0.134  0.919    1.053  Net asset value  9.72  8.94 
Class Y  1  0.123  0.919    1.042  Net asset value  9.71  8.94 
2040 Fund                 
           
Class A  1  $0.104  $0.971    $1.075  Before sales charge  $9.66  $8.81 
            After sales charge  10.25  9.35 
Class C  1  0.029  0.971    1.000  Net asset value  9.62  8.81 
Class R  1  0.057  0.971    1.028  Net asset value  9.64  8.82 
Class R3  1  0.082  0.971    1.053  Net asset value  9.66  8.82 
Class R4  1  0.114  0.971    1.085  Net asset value  9.67  8.81 
Class R5  1  0.122  0.971    1.093  Net asset value  9.68  8.82 
Class R6  1  0.132  0.971    1.103  Net asset value  9.69  8.83 
Class Y  1  0.122  0.971    1.093  Net asset value  9.68  8.82 
2035 Fund                 
           
Class A  1  $0.038  $0.693    $0.731  Before sales charge  $9.54  $8.98 
            After sales charge  10.12  9.53 
Class C  1    0.693    0.693  Net asset value  9.51  8.95 
Class R  1    0.693    0.693  Net asset value  9.53  8.99 
Class R3  1  0.016  0.693    0.709  Net asset value  9.54  9.00 
Class R4  1  0.047  0.693    0.740  Net asset value  9.56  8.99 
Class R5  1  0.055  0.693    0.748  Net asset value  9.57  9.00 
Class R6  1  0.065  0.693    0.758  Net asset value  9.58  9.00 
Class Y  1  0.055  0.693    0.748  Net asset value  9.57  9.00 
2030 Fund                 
           
Class A  1  $0.136  $0.518    $0.654  Before sales charge  $9.53  $8.96 
            After sales charge  10.11  9.51 
Class C  1  0.075  0.518    0.593  Net asset value  9.45  8.90 
Class R  1  0.089  0.518    0.607  Net asset value  9.53  8.98 
Class R3  1  0.113  0.518    0.631  Net asset value  9.54  8.99 
Class R4  1  0.144  0.518    0.662  Net asset value  9.56  8.98 
Class R5  1  0.152  0.518    0.670  Net asset value  9.57  8.99 
Class R6  1  0.162  0.518    0.680  Net asset value  9.57  8.99 
Class Y  1  0.153  0.518    0.671  Net asset value  9.57  8.99 

 

Retirement Advantage Funds 15 

 


 

Fund price and distribution information For the six-month period ended 2/28/23 cont.

Distributions                 
      Capital gains         
      Long-term  Short-term         
  Number  Income  gains  gains  Total  Share value  8/31/22  2/28/23 
2025 Fund                 
           
Class A  1  $0.036  $0.139    $0.175  Before sales charge  $9.38  $9.23 
            After sales charge  9.95  9.79 
Class C  1    0.139    0.139  Net asset value  9.34  9.18 
Class R  1  0.009  0.139    0.148  Net asset value  9.38  9.23 
Class R3  1  0.032  0.139    0.171  Net asset value  9.40  9.24 
Class R4  1  0.064  0.139    0.203  Net asset value  9.41  9.23 
Class R5  1  0.071  0.139    0.210  Net asset value  9.42  9.24 
Class R6  1  0.081  0.139    0.220  Net asset value  9.42  9.24 
Class Y  1  0.071  0.139    0.210  Net asset value  9.42  9.24 
Maturity Fund                 
           
Class A  4  $0.020  $0.087    $0.107  Before sales charge  $9.50  $9.45 
            After sales charge  9.90  9.84 
Class C  1  0.010  0.087    0.097  Net asset value  9.37  9.30 
Class R  1  0.013  0.087    0.100  Net asset value  9.43  9.37 
Class R3  2  0.016  0.087    0.103  Net asset value  9.47  9.42 
Class R4  4  0.024  0.087    0.111  Net asset value  9.51  9.46 
Class R5  4  0.028  0.087    0.115  Net asset value  9.53  9.49 
Class R6  4  0.031  0.087    0.118  Net asset value  9.56  9.51 
Class Y  4  0.028  0.087    0.115  Net asset value  9.53  9.49 

 

The classification of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate for class A shares, if applicable, do not take into account any sales charge levied at the time of purchase. After-sales-charge share value, current dividend rate, and current 30-day SEC yield, if applicable, are calculated assuming that the maximum sales charge (5.75% for class A shares for all funds except Retirement Advantage Maturity Fund, for which the rate is 4.00% for class A shares) was levied at the time of purchase. Final distribution information will appear on your year-end tax forms.

 

16 Retirement Advantage Funds 

 


 

Fund performance for the most recent calendar quarter
Total return for periods ended 3/31/23

  Life of fund  1 year  6 months 
2065 Fund       
Class A (12/30/20)       
Before sales charge    2.73%  –6.65%  16.42% 
After sales charge    0.07  –12.02  9.72 
Class C (12/30/20)       
Before CDSC    1.95  –7.37  15.95 
After CDSC    1.95  –8.25  14.95 
Class R (12/30/20)       
Net asset value    2.33  –6.99  16.13 
Class R3 (12/30/20)       
Net asset value    2.58  –6.78  16.36 
Class R4 (12/30/20)       
Net asset value    2.85  –6.53  16.52 
Class R5 (12/30/20)       
Net asset value    2.99  –6.47  16.57 
Class R6 (12/30/20)       
Net asset value    3.08  –6.37  16.56 
Class Y (12/30/20)       
Net asset value  3.00  –6.38  16.57 

 

  Life of fund  3 years  1 year  6 months 
2060 Fund         
Class A (9/1/20)         
Before sales charge  6.62%  15.93%  –6.73%  16.19% 
After sales charge  4.70  13.67  –12.09  9.51 
Class C (9/1/20)         
Before CDSC  5.83  15.05  –7.39  15.68 
After CDSC  5.83  15.05  –8.26  14.68 
Class R (9/1/20)         
Net asset value  6.20  15.46  –7.00  16.01 
Class R3 (9/1/20)         
Net asset value  6.46  15.73  –6.84  16.04 
Class R4 (9/1/20)         
Net asset value  6.70  16.02  –6.62  16.29 
Class R5 (9/1/20)         
Net asset value  6.85  16.21  –6.44  16.25 
Class R6 (12/31/19)         
Net asset value  6.97  16.31  –6.34  16.37 
Class Y (9/1/20)         
Net asset value  6.85  16.22  –6.44  16.25 

 

Retirement Advantage Funds 17 

 


 

Fund performance for the most recent calendar quarter
Total return for periods ended 3/31/23 cont.

  Life of fund  3 years  1 year  6 months 
2055 Fund         
Class A (9/1/20)         
Before sales charge  6.30%  15.32%  –6.74%  15.45% 
After sales charge  4.38  13.06  –12.10  8.81 
Class C (9/1/20)         
Before CDSC  5.53  14.46  –7.39  15.06 
After CDSC  5.53  14.46  –8.24  14.06 
Class R (9/1/20)         
Net asset value  5.88  14.84  –7.06  15.31 
Class R3 (9/1/20)         
Net asset value  6.13  15.11  –6.90  15.35 
Class R4 (9/1/20)         
Net asset value  6.37  15.40  –6.61  15.45 
Class R5 (9/1/20)         
Net asset value  6.53  15.60  –6.50  15.56 
Class R6 (12/31/19)         
Net asset value  6.64  15.69  –6.40  15.68 
Class Y (9/1/20)         
Net asset value  6.53  15.60  –6.50  15.56 

 

  Life of fund  3 years  1 year  6 months 
2050 Fund         
Class A (9/1/20)         
Before sales charge  5.87%  14.33%  –6.72%  14.51% 
After sales charge  3.95  12.09  –12.08  7.92 
Class C (9/1/20)         
Before CDSC  5.07  13.44  –7.49  14.11 
After CDSC  5.07  13.44  –8.33  13.11 
Class R (9/1/20)         
Net asset value  5.44  13.85  –7.10  14.30 
Class R3 (9/1/20)         
Net asset value  5.69  14.12  –6.94  14.47 
Class R4 (9/1/20)         
Net asset value  5.94  14.41  –6.70  14.61 
Class R5 (9/1/20)         
Net asset value  6.09  14.60  –6.54  14.68 
Class R6 (12/31/19)         
Net asset value  6.20  14.69  –6.44  14.67 
Class Y (9/1/20)         
Net asset value  6.09  14.60  –6.53  14.69 

 

18 Retirement Advantage Funds 

 


 

Fund performance for the most recent calendar quarter
Total return for periods ended 3/31/23 cont.

  Life of fund  3 years  1 year  6 months 
2045 Fund         
Class A (9/1/20)         
Before sales charge  5.37%  13.33%  –6.74%  13.56% 
After sales charge  3.47  11.11  –12.10  7.03 
Class C (9/1/20)         
Before CDSC  4.59  12.47  –7.41  13.14 
After CDSC  4.59  12.47  –8.25  12.14 
Class R (9/1/20)         
Net asset value  4.95  12.86  –7.10  13.35 
Class R3 (9/1/20)         
Net asset value  5.20  13.12  –6.86  13.52 
Class R4 (9/1/20)         
Net asset value  5.45  13.42  –6.61  13.67 
Class R5 (9/1/20)         
Net asset value  5.60  13.60  –6.54  13.74 
Class R6 (12/31/19)         
Net asset value  5.71  13.69  –6.43  13.74 
Class Y (9/1/20)         
Net asset value  5.60  13.60  –6.45  13.74 

 

  Life of fund  3 years  1 year  6 months 
2040 Fund         
Class A (9/1/20)         
Before sales charge  5.05%  12.41%  –6.51%  12.77% 
After sales charge  3.15  10.21  –11.88  6.29 
Class C (9/1/20)         
Before CDSC  4.26  11.54  –7.18  12.25 
After CDSC  4.26  11.54  –8.02  11.25 
Class R (9/1/20)         
Net asset value  4.60  11.90  –6.89  12.46 
Class R3 (9/1/20)         
Net asset value  4.88  12.20  –6.63  12.62 
Class R4 (9/1/20)         
Net asset value  5.09  12.45  –6.50  12.64 
Class R5 (9/1/20)         
Net asset value  5.24  12.64  –6.33  12.72 
Class R6 (12/31/19)         
Net asset value  5.38  12.77  –6.21  12.96 
Class Y (9/1/20)         
Net asset value  5.24  12.64  –6.33  12.72 

 

Retirement Advantage Funds 19 

 


 

Fund performance for the most recent calendar quarter
Total return for periods ended 3/31/23 cont.

  Life of fund  3 years  1 year  6 months 
2035 Fund         
Class A (9/1/20)         
Before sales charge  4.38%  10.66%  –6.34%  11.21% 
After sales charge  2.50  8.50  –11.73  4.82 
Class C (9/1/20)         
Before CDSC  3.61  9.83  –7.03  10.67 
After CDSC  3.61  9.83  –7.89  9.67 
Class R (9/1/20)         
Net asset value  3.98  10.22  –6.64  10.99 
Class R3 (9/1/20)         
Net asset value  4.23  10.48  –6.47  11.04 
Class R4 (9/1/20)         
Net asset value  4.47  10.77  –6.15  11.29 
Class R5 (9/1/20)         
Net asset value  4.63  10.95  –6.06  11.38 
Class R6 (12/31/19)         
Net asset value  4.74  11.04  –5.96  11.37 
Class Y (9/1/20)         
Net asset value  4.60  10.91  –6.16  11.26 

 

  Life of fund  3 years  1 year  6 months 
2030 Fund         
Class A (9/1/20)         
Before sales charge  3.29%  8.23%  –6.20%  9.17% 
After sales charge  1.42  6.11  –11.60  2.89 
Class C (9/1/20)         
Before CDSC  2.53  7.43  –6.86  8.75 
After CDSC  2.53  7.43  –7.74  7.75 
Class R (9/1/20)         
Net asset value  2.90  7.81  –6.48  9.08 
Class R3 (9/1/20)         
Net asset value  3.14  8.06  –6.33  9.11 
Class R4 (9/1/20)         
Net asset value  3.38  8.33  –6.02  9.23 
Class R5 (9/1/20)         
Net asset value  3.53  8.51  –5.92  9.32 
Class R6 (12/31/19)         
Net asset value  3.64  8.60  –5.82  9.44 
Class Y (9/1/20)         
Net asset value  3.54  8.52  –5.91  9.33 

 

20 Retirement Advantage Funds 

 


 

Fund performance for the most recent calendar quarter
Total return for periods ended 3/31/23 cont.

  Life of fund  3 years  1 year  6 months 
2025 Fund         
Class A (9/1/20)         
Before sales charge  1.34%  4.12%  –5.71%  7.31% 
After sales charge  –0.49  2.09  –11.13  1.14 
Class C (9/1/20)         
Before CDSC  0.60  3.36  –6.48  6.93 
After CDSC  0.60  3.36  –7.40  5.93 
Class R (9/1/20)         
Net asset value  0.93  3.69  –6.17  7.11 
Class R3 (9/1/20)         
Net asset value  1.19  3.95  –5.84  7.25 
Class R4 (9/1/20)         
Net asset value  1.40  4.19  –5.70  7.39 
Class R5 (9/1/20)         
Net asset value  1.58  4.39  –5.43  7.46 
Class R6 (12/31/19)         
Net asset value  1.66  4.44  –5.43  7.46 
Class Y (9/1/20)         
Net asset value  1.58  4.39  –5.43  7.46 

 

  Life of fund  3 years  1 year  6 months 
Maturity Fund         
Class A (9/1/20)         
Before sales charge  0.82%  2.95%  –5.37%  7.06% 
After sales charge  –1.00  0.94  –10.81  0.91 
Class C (9/1/20)         
Before CDSC  0.09  2.20  –6.07  6.64 
After CDSC  0.09  2.20  –7.00  5.64 
Class R (9/1/20)         
Net asset value  0.41  2.53  –5.79  6.89 
Class R3 (9/1/20)         
Net asset value  0.67  2.79  –5.52  7.03 
Class R4 (9/1/20)         
Net asset value  0.91  3.05  –5.21  7.22 
Class R5 (9/1/20)         
Net asset value  1.03  3.18  –5.15  7.15 
Class R6 (12/31/19)         
Net asset value  1.18  3.32  –5.00  7.29 
Class Y (9/1/20)         
Net asset value  1.03  3.18  –5.15  7.15 

 

See the discussion following the fund performance table on page 13 for information about the calculation of fund performance.

Returns for periods of less than one year are not annualized.

Retirement Advantage Funds 21 

 


 

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’s expenses were limited; had expenses not been limited, they would have been higher. Using the following information, 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. For more information, see your fund’s prospectus or talk to your financial representative.

Expense ratios

  Class A  Class C  Class R  Class R3  Class R4  Class R5  Class R6  Class Y 
2065 Fund                 
Net expenses for the fiscal year                 
ended 8/31/22*†  0.80%  1.55%  1.20%  0.95%  0.70%  0.55%  0.45%  0.55% 
Total annual operating expenses                 
for the fiscal year ended 8/31/22  41.66%  42.41%  42.06%  41.81%  41.56%  41.41%  41.31%  41.41% 
Annualized expense ratio for the                 
six-month period ended 2/28/23#  0.17%  0.92%  0.57%  0.32%  0.07%  –0.08%  –0.18%  –0.08% 
2060 Fund                 
Net expenses for the fiscal year                 
ended 8/31/22*†  0.80%  1.55%  1.20%  0.95%  0.70%  0.55%  0.45%  0.55% 
Total annual operating expenses                 
for the fiscal year ended 8/31/22  8.55%  9.30%  8.95%  8.70%  8.45%  8.30%  8.20%  8.30% 
Annualized expense ratio for the                 
six-month period ended 2/28/23#  0.17%  0.92%  0.57%  0.32%  0.07%  –0.08%  –0.18%  –0.08% 
2055 Fund                 
Net expenses for the fiscal year                 
ended 8/31/22*†  0.80%  1.55%  1.20%  0.95%  0.70%  0.55%  0.45%  0.55% 
Total annual operating expenses                 
for the fiscal year ended 8/31/22  4.33%  5.08%  4.73%  4.48%  4.23%  4.08%  3.98%  4.08% 
Annualized expense ratio for the                 
six-month period ended 2/28/23#  0.16%  0.91%  0.56%  0.31%  0.06%  –0.09%  –0.19%  –0.09% 
2050 Fund                 
Net expenses for the fiscal year                 
ended 8/31/22*  0.80%  1.55%  1.20%  0.95%  0.70%  0.55%  0.45%  0.55% 
Total annual operating expenses                 
for the fiscal year ended 8/31/22  3.47%  4.22%  3.87%  3.62%  3.37%  3.22%  3.12%  3.22% 
Annualized expense ratio for the                 
six-month period ended 2/28/23#  0.15%  0.90%  0.55%  0.30%  0.05%  –0.10%  –0.20%  –0.10% 
2045 Fund                 
Net expenses for the fiscal year                 
ended 8/31/22*  0.80%  1.55%  1.20%  0.95%  0.70%  0.55%  0.45%  0.55% 
Total annual operating expenses                 
for the fiscal year ended 8/31/22  2.62%  3.37%  3.02%  2.77%  2.52%  2.37%  2.27%  2.37% 
Annualized expense ratio for the                 
six-month period ended 2/28/23#  0.15%  0.90%  0.55%  0.30%  0.05%  –0.10%  –0.20%  –0.10% 

 

22 Retirement Advantage Funds 

 


 

Expense ratios cont.

  Class A  Class C  Class R  Class R3  Class R4  Class R5  Class R6  Class Y 
2040 Fund                 
Net expenses for the fiscal year                 
ended 8/31/22*  0.80%  1.55%  1.20%  0.95%  0.70%  0.55%  0.45%  0.55% 
Total annual operating expenses                 
for the fiscal year ended 8/31/22  2.67%  3.42%  3.07%  2.82%  2.57%  2.42%  2.32%  2.42% 
Annualized expense ratio for the                 
six-month period ended 2/28/23#  0.18%  0.93%  0.58%  0.33%  0.08%  –0.07%  –0.17%  –0.07% 
2035 Fund                 
Net expenses for the fiscal year                 
ended 8/31/22*  0.80%  1.55%  1.20%  0.95%  0.70%  0.55%  0.45%  0.55% 
Total annual operating expenses                 
for the fiscal year ended 8/31/22  2.18%  2.93%  2.58%  2.33%  2.08%  1.93%  1.83%  1.93% 
Annualized expense ratio for the                 
six-month period ended 2/28/23#  0.22%  0.97%  0.62%  0.37%  0.12%  –0.03%  –0.13%  –0.03% 
2030 Fund                 
Net expenses for the fiscal year                 
ended 8/31/22*  0.80%  1.55%  1.20%  0.95%  0.70%  0.55%  0.45%  0.55% 
Total annual operating expenses                 
for the fiscal year ended 8/31/22  2.15%  2.90%  2.55%  2.30%  2.05%  1.90%  1.80%  1.90% 
Annualized expense ratio for the                 
six-month period ended 2/28/23#  0.25%  1.00%  0.65%  0.40%  0.15%  0.00%  –0.10%  0.00% 
2025 Fund                 
Net expenses for the fiscal year                 
ended 8/31/22*  0.80%  1.55%  1.20%  0.95%  0.70%  0.55%  0.45%  0.55% 
Total annual operating expenses                 
for the fiscal year ended 8/31/22  2.03%  2.78%  2.43%  2.18%  1.93%  1.78%  1.68%  1.78% 
Annualized expense ratio for the                 
six-month period ended 2/28/23#  0.29%  1.04%  0.69%  0.44%  0.19%  0.04%  –0.06%  0.04% 
Maturity Fund                 
Net expenses for the fiscal year                 
ended 8/31/22*  0.80%  1.55%  1.20%  0.95%  0.70%  0.55%  0.45%  0.55% 
Total annual operating expenses                 
for the fiscal year ended 8/31/22  1.83%  2.58%  2.23%  1.98%  1.73%  1.58%  1.48%  1.58% 
Annualized expense ratio for the                 
six-month period ended 2/28/23#  0.41%  1.16%  0.81%  0.56%  0.31%  0.16%  0.06%  0.16% 

 

Fiscal year expense information in this table is taken from the most recent prospectus, is subject to change, and differs from that shown for the annualized expense ratio and in the financial highlights of this report.

Expenses are shown as a percentage of average net assets.

Prospectus expense information also includes the impact of acquired fund fees and expense in which each fund invests (see table below), which are not included in financial highlights or annualized expense ratios.

2065 Fund   0.61% 
2060 Fund   0.62% 
2055 Fund   0.62% 
2050 Fund   0.63% 
2045 Fund   0.63% 
2040 Fund   0.60% 
2035 Fund   0.56% 
2030 Fund   0.51% 
2025 Fund   0.39% 
Maturity Fund   0.22% 

 

* Reflects Putnam Management’s decision to contractually limit expenses through 12/30/25.

Restated to reflect current fees.

# Excludes the expense ratio of the underlying Putnam mutual funds.

Retirement Advantage Funds 23 

 


 

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in each fund from 9/1/22 to 2/28/23. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

  Class A  Class C  Class R  Class R3  Class R4  Class R5  Class R6  Class Y 
2065 Fund                 
Expenses paid per $1,000*†  $0.86  $4.64  $2.88  $1.62  $0.35  $(0.40)  $(0.91)  $(0.40) 
Ending value (after expenses)  $1,037.40  $1,032.70  $1,035.80  $1,035.90  $1,037.50  $1,038.00  $1,039.10  $1,039.10 
2060 Fund                 
Expenses paid per $1,000*†  $0.86  $4.64  $2.88  $1.62  $0.35  $(0.40)  $(0.91)  $(0.40) 
Ending value (after expenses)  $1,037.90  $1,032.80  $1,034.90  $1,035.50  $1,037.80  $1,038.70  $1,038.70  $1,037.60 
2055 Fund                 
Expenses paid per $1,000*†  $0.81  $4.58  $2.82  $1.56  $0.30  $(0.45)  $(0.96)  $(0.45) 
Ending value (after expenses)  $1,035.20  $1,031.30  $1,032.70  $1,034.40  $1,036.50  $1,036.50  $1,036.60  $1,036.50 
2050 Fund                 
Expenses paid per $1,000*†  $0.76  $4.53  $2.77  $1.51  $0.25  $(0.50)  $(1.01)  $(0.50) 
Ending value (after expenses)  $1,032.90  $1,028.90  $1,030.90  $1,031.50  $1,034.00  $1,034.80  $1,034.80  $1,034.90 
2045 Fund                 
Expenses paid per $1,000*†  $0.76  $4.52  $2.77  $1.51  $0.25  $(0.50)  $(1.01)  $(0.50) 
Ending value (after expenses)  $1,030.30  $1,026.30  $1,029.50  $1,030.10  $1,030.50  $1,031.20  $1,032.40  $1,032.30 
2040 Fund                 
Expenses paid per $1,000*†  $0.90  $4.67  $2.91  $1.66  $0.40  $(0.35)  $(0.86)  $(0.35) 
Ending value (after expenses)  $1,027.40  $1,023.40  $1,025.50  $1,026.00  $1,027.40  $1,028.20  $1,029.40  $1,028.20 
2035 Fund                 
Expenses paid per $1,000*†  $1.10  $4.85  $3.10  $1.85  $0.60  $(0.15)  $(0.65)  $(0.15) 
Ending value (after expenses)  $1,020.50  $1,016.30  $1,018.40  $1,020.10  $1,020.30  $1,021.20  $1,021.20  $1,021.20 
2030 Fund                 
Expenses paid per $1,000*†  $1.25  $4.97  $3.24  $1.99  $0.75  $—  $(0.50)  $— 
Ending value (after expenses)  $1,010.60  $1,006.10  $1,007.60  $1,010.20  $1,010.30  $1,011.20  $1,012.30  $1,011.30 
2025 Fund                 
Expenses paid per $1,000*†  $1.44  $5.15  $3.42  $2.18  $0.94  $0.20  $(0.30)  $0.20 
Ending value (after expenses)  $1,003.00  $998.00  $1,000.10  $1,001.50  $1,002.80  $1,003.60  $1,004.70  $1,003.60 
Maturity Fund                 
Expenses paid per $1,000*†  $2.04  $5.76  $4.03  $2.79  $1.54  $0.80  $0.30  $0.80 
Ending value (after expenses)  $1,006.20  $1,003.10  $1,004.40  $1,005.80  $1,006.60  $1,008.10  $1,007.40  $1,008.10 

 

* 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 average net assets for the period from 2/28/23. 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 (181); and then dividing that result by the number of days in the year (365).

24 Retirement Advantage Funds 

 


 

Estimate the expenses you paid

To estimate the expenses you paid for the six months ended 2/28/23, use the following calculation method. To find the value of your investment on 9/1/22, call Putnam at 1-800-225-1581.


Retirement Advantage Funds 25 

 


 

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 following table 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 each of the Retirement Advantage Funds 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.

  Class A  Class C  Class R  Class R3  Class R4  Class R5  Class R6  Class Y 
2065 Fund                 
Expenses paid per $1,000*†  $0.85  $4.61  $2.86  $1.61  $0.35  $(0.40)  $(0.90)  $(0.40) 
Ending value (after expenses)  $1,023.95  $1,020.23  $1,021.97  $1,023.21  $1,024.45  $1,025.19  $1,025.69  $1,025.19 
2060 Fund                 
Expenses paid per $1,000*†  $0.85  $4.61  $2.86  $1.61  $0.35  $(0.40)  $(0.90)  $(0.40) 
Ending value (after expenses)  $1,023.95  $1,020.23  $1,021.97  $1,023.21  $1,024.45  $1,025.19  $1,025.69  $1,025.19 
2055 Fund                 
Expenses paid per $1,000*†  $0.80  $4.56  $2.81  $1.56  $0.30  $(0.45)  $(0.95)  $(0.45) 
Ending value (after expenses)  $1,024.00  $1,020.28  $1,022.02  $1,023.26  $1,024.50  $1,025.24  $1,025.74  $1,025.24 
2050 Fund                 
Expenses paid per $1,000*†  $0.75  $4.51  $2.76  $1.51  $0.25  $(0.50)  $(1.00)  $(0.50) 
Ending value (after expenses)  $1,024.05  $1,020.33  $1,022.07  $1,023.31  $1,024.55  $1,025.29  $1,025.79  $1,025.29 
2045 Fund                 
Expenses paid per $1,000*†  $0.75  $4.51  $2.76  $1.51  $0.25  $(0.50)  $(1.00)  $(0.50) 
Ending value (after expenses)  $1,024.05  $1,020.33  $1,022.07  $1,023.31  $1,024.55  $1,025.29  $1,025.79  $1,025.29 
2040 Fund                 
Expenses paid per $1,000*†  $0.90  $4.66  $2.91  $1.66  $0.40  $(0.35)  $(0.85)  $(0.35) 
Ending value (after expenses)  $1,023.90  $1,020.18  $1,021.92  $1,023.16  $1,024.40  $1,025.14  $1,025.64  $1,025.14 
2035 Fund                 
Expenses paid per $1,000*†  $1.10  $4.86  $3.11  $1.86  $0.60  $(0.15)  $(0.65)  $(0.15) 
Ending value (after expenses)  $1,023.70  $1,019.98  $1,021.72  $1,022.96  $1,024.20  $1,024.94  $1,025.44  $1,024.94 
2030 Fund                 
Expenses paid per $1,000*†  $1.25  $5.01  $3.26  $2.01  $0.75  $—  $(0.50)  $— 
Ending value (after expenses)  $1,023.55  $1,019.84  $1,021.57  $1,022.81  $1,024.05  $1,024.79  $1,025.29  $1,024.79 
2025 Fund                 
Expenses paid per $1,000*†  $1.45  $5.21  $3.46  $2.21  $0.95  $0.20  $(0.30)  $0.20 
Ending value (after expenses)  $1,023.36  $1,019.64  $1,021.37  $1,022.61  $1,023.85  $1,024.60  $1,025.09  $1,024.60 
Maturity Fund                 
Expenses paid per $1,000*†  $2.06  $5.81  $4.06  $2.81  $1.56  $0.80  $0.30  $0.80 
Ending value (after expenses)  $1,022.76  $1,019.04  $1,020.78  $1,022.02  $1,023.26  $1,024.00  $1,024.50  $1,024.00 

 

* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the period from 2/28/23. 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 (181); and then dividing that result by the number of days in the year (365).

26 Retirement Advantage Funds 

 


 

Consider these risks before investing

If the quantitative models or data that are used in managing an underlying fund prove to be incorrect or incomplete, investment decisions made in reliance on the models or data may not produce the desired results and the fund may realize losses.

Our allocation of assets among permitted asset categories may hurt performance. The value of investments in the underlying funds’ portfolios may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, asset class, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the underlying funds’ portfolio holdings.

Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Investments in small and/or midsize companies increase the risk of greater price fluctuations. 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). Default risk is generally higher for non-qualified mortgages. Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. 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, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise. The underlying funds may have to invest the proceeds from prepaid investments, including mortgage- and asset-backed investments, in other investments with less attractive terms and yields. International investing involves currency, economic, and political risks. Emerging market securities carry illiquidity and volatility risks. REITs are subject to the risk of economic downturns that have an adverse impact on real estate markets. Convertible securities’ prices may be adversely affected by underlying common stock price changes. While convertible securities tend to provide higher yields than common stocks, the higher yield may not protect against the risk of loss or mitigate any loss associated with a convertible security’s price decline. Convertible securities are subject to credit risk. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. There is no guarantee that the funds will provide adequate income at and through an investor’s retirement.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the underlying funds may not perform as well as other securities that we do not select for the underlying funds. We, or the underlying funds’ other service providers, may experience disruptions or operating errors that could have a negative effect on the underlying funds. You can lose money by investing in the funds.

Retirement Advantage Funds 27 

 


 

Terms and definitions

Important terms

Total return shows how the value of each fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.

Before sales charge, or net asset value, is the price, or value, of one share of a mutual fund, without a sales charge. Before-sales-charge figures fluctuate with market conditions. They are calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

After sales charge is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. After-sales-charge performance figures shown here assume the 5.75% maximum sales charge for class A shares (4.00% for class A shares of Putnam Retirement Advantage Maturity Fund).

Contingent deferred sales charge (CDSC) is generally a charge applied at the time of the redemption of class C shares and assumes redemption at the end of the period. Your fund’s class C shares CDSC is 1% for one year after purchase that is eliminated thereafter.

Share classes

Class A shares are generally subject to an initial sales charge and no CDSC (except on certain redemptions of shares bought without an initial sales charge).

Class C shares are not subject to an initial sales charge and are subject to a CDSC only if the shares are redeemed during the first year.

Class R shares are not subject to an initial sales charge or CDSC and are only available to employer-sponsored retirement plans.

Class R3 shares are not subject to an initial sales charge or CDSC and are only available to employer-sponsored retirement plans.

Class R4 shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are only available to employer-sponsored retirement plans.

Class R5 shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are only available to employer-sponsored retirement plans.

Class R6 shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to employer-sponsored retirement plans, corporate and institutional clients, and clients in other approved programs.

Class Y shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to corporate and institutional clients and clients in other approved programs.

Comparative indexes

Bloomberg U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed income securities.

ICE BofA (Intercontinental Exchange Bank of America) U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

MSCI EAFE Index (ND) is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australasia. Calculated with net dividends (ND), this total return index reflects the reinvestment of dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties.

S&P 500® Index is an unmanaged index of common stock performance.

28 Retirement Advantage Funds 

 


 

S&P Target Date To Index Series is designed to represent a small, style-specific derived consensus of asset class exposure and glide path for a specified list of target retirement dates.

S&P Target Date To Retirement Income Index is designed to represent a market consensus of asset class exposure and glide path across the universe of “to” target date fund managers.

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.

BLOOMBERG®  is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approve or endorse this material, or guarantee the accuracy or completeness of any information herein, or make any warranty, express or implied, as to the results to be obtained therefrom, and to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

ICE Data Indices, LLC (“ICE BofA”), used with permission. ICE BofA permits use of the ICE BofA indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofA indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.

Retirement Advantage Funds 29 

 


 

Other information for shareholders

Important notice regarding delivery of shareholder documents

In accordance with Securities and Exchange Commission (SEC) regulations, Putnam sends a single notice of internet availability, or a single printed copy, of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2022, are available in the Individual Investors section of putnam.com and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, 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

Each fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the fund’s Form N-PORT on the SEC’s website at www.sec.gov.

Trustee and employee fund ownership

Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of February 28, 2023, Putnam employees had approximately $450,000,000 and the Trustees had approximately $63,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.

30 Retirement Advantage Funds 

 


 

Financial statements

These sections of the report, as well as the accompanying Notes, constitute the funds’ financial statements.

The funds’ portfolios list all the funds’ 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 non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal period.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover (not required for money market funds) in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.

Retirement Advantage Funds 31 

 


 

The funds’ portfolios 2/28/23 (Unaudited)

2065 Fund  Shares  Value 
Asset Allocation Funds (99.5%)*     
Putnam Dynamic Asset Allocation Equity Fund Class P †††  19,350  $207,045 
Putnam Dynamic Asset Allocation Growth Fund Class P †††  3,429  56,514 
Total Asset Allocation Funds (cost $310,654)    $263,559 
 
Fixed Income Funds (0.5%)*     
Putnam Short Term Investment Fund Class G †††  1,238  $1,238 
Total Fixed Income Funds (cost $1,238)    $1,238 
 
TOTAL INVESTMENTS     
Total Investments (cost $311,892)    $264,797 

 

* Percentages indicated are based on net assets of $264,752.

 

2060 Fund  Shares  Value 
Asset Allocation Funds (99.5%)*     
Putnam Dynamic Asset Allocation Equity Fund Class P †††  112,865  $1,207,654 
Putnam Dynamic Asset Allocation Growth Fund Class P †††  29,892  492,621 
Total Asset Allocation Funds (cost $2,051,926)    $1,700,275 
 
Fixed Income Funds (0.5%)*     
Putnam Short Term Investment Fund Class G †††  8,524  $8,524 
Total Fixed Income Funds (cost $8,524)    $8,524 
 
TOTAL INVESTMENTS     
Total Investments (cost $2,060,450)    $1,708,799 

 

* Percentages indicated are based on net assets of $1,709,125.

 

2055 Fund  Shares  Value 
Asset Allocation Funds (99.5%)*     
Putnam Dynamic Asset Allocation Equity Fund Class P †††  169,621  $1,814,944 
Putnam Dynamic Asset Allocation Growth Fund Class P †††  111,959  1,845,088 
Total Asset Allocation Funds (cost $4,364,206)    $3,660,032 
 
Fixed Income Funds (0.5%)*     
Putnam Short Term Investment Fund Class G †††  18,637  $18,637 
Total Fixed Income Funds (cost $18,637)    $18,637 
 
TOTAL INVESTMENTS     
Total Investments (cost $4,382,843)    $3,678,669 

 

* Percentages indicated are based on net assets of $3,679,581.

 

32 Retirement Advantage Funds 

 


 

The funds’ portfolios 2/28/23 (Unaudited) cont.

2050 Fund  Shares  Value 
Asset Allocation Funds (99.5%)*     
Putnam Dynamic Asset Allocation Equity Fund Class P †††  113,881  $1,218,524 
Putnam Dynamic Asset Allocation Growth Fund Class P †††  234,591  3,866,058 
Total Asset Allocation Funds (cost $5,896,954)    $5,084,582 
 
Fixed Income Funds (0.5%)*     
Putnam Short Term Investment Fund Class G †††  26,146  $26,146 
Total Fixed Income Funds (cost $26,146)    $26,146 
 
TOTAL INVESTMENTS     
Total Investments (cost $5,923,100)    $5,110,728 

 

* Percentages indicated are based on net assets of $5,112,096.

 

2045 Fund  Shares  Value 
Asset Allocation Funds (98.2%)*     
Putnam Dynamic Asset Allocation Equity Fund Class P †††  24,891  $266,334 
Putnam Dynamic Asset Allocation Growth Fund Class P †††  543,198  8,951,897 
Total Asset Allocation Funds (cost $10,449,889)    $9,218,231 
 
Fixed Income Funds (1.8%)*     
Putnam Short Term Investment Fund Class G †††  166,871  $166,871 
Total Fixed Income Funds (cost $166,871)    $166,871 
 
TOTAL INVESTMENTS     
Total Investments (cost $10,616,760)    $9,385,102 

 

* Percentages indicated are based on net assets of $9,387,604.

 

2040 Fund  Shares  Value 
Asset Allocation Funds (97.0%)*     
Putnam Dynamic Asset Allocation Balanced Fund Class P †††  170,949  $2,365,930 
Putnam Dynamic Asset Allocation Growth Fund Class P †††  370,764  6,110,195 
Total Asset Allocation Funds (cost $9,478,545)    $8,476,125 
 
Fixed Income Funds (3.0%)*     
Putnam Short Term Investment Fund Class G †††  257,823  $257,823 
Total Fixed Income Funds (cost $257,823)    $257,823 
 
TOTAL INVESTMENTS     
Total Investments (cost $9,736,368)    $8,733,948 

 

* Percentages indicated are based on net assets of $8,736,045.

 

Retirement Advantage Funds 33 

 


 

The funds’ portfolios 2/28/23 (Unaudited) cont.

2035 Fund  Shares  Value 
Asset Allocation Funds (96.0%)*     
Putnam Dynamic Asset Allocation Balanced Fund Class P †††  866,184  $11,987,981 
Putnam Dynamic Asset Allocation Growth Fund Class P †††  182,948  3,014,987 
Total Asset Allocation Funds (cost $16,986,501)    $15,002,968 
 
Fixed Income Funds (3.9%)*     
Putnam Short Term Investment Fund Class G †††  615,451  $615,451 
Total Fixed Income Funds (cost $615,451)    $615,451 
 
TOTAL INVESTMENTS     
Total Investments (cost $17,601,952)    $15,618,419 

 

* Percentages indicated are based on net assets of $15,620,926.

 

2030 Fund  Shares  Value 
Multi-Asset Income Funds (10.6%)*     
Putnam Multi-Asset Income Fund Class P †††  152,277  $1,449,676 
Total Multi-Asset Income Funds (cost $1,563,740)    $1,449,676 
 
Asset Allocation Funds (84.2%)*     
Putnam Dynamic Asset Allocation Balanced Fund Class P †††  571,568  $7,910,496 
Putnam Dynamic Asset Allocation Conservative Fund Class P †††  377,024  3,593,040 
Total Asset Allocation Funds (cost $13,220,594)    $11,503,536 
 
Fixed Income Funds (5.1%)*     
Putnam Short Term Investment Fund Class G †††  703,157  $703,157 
Total Fixed Income Funds (cost $703,157)    $703,157 
 
TOTAL INVESTMENTS     
Total Investments (cost $15,487,491)    $13,656,369 

 

* Percentages indicated are based on net assets of $13,657,861.

 

2025 Fund  Shares  Value 
Multi-Asset Income Funds (37.5%)*     
Putnam Multi-Asset Income Fund Class P †††  500,806  $4,767,676 
Total Multi-Asset Income Funds (cost $5,149,605)    $4,767,676 
 
Asset Allocation Funds (56.6%)*     
Putnam Dynamic Asset Allocation Balanced Fund Class P †††  76,443  $1,057,973 
Putnam Dynamic Asset Allocation Conservative Fund Class P †††  644,898  6,145,874 
Total Asset Allocation Funds (cost $8,388,853)    $7,203,847 
 
Fixed Income Funds (6.0%)*     
Putnam Short Term Investment Fund Class G †††  757,597  $757,597 
Total Fixed Income Funds (cost $757,597)    $757,597 
 
TOTAL INVESTMENTS     
Total Investments (cost $14,296,055)    $12,729,120 

 

* Percentages indicated are based on net assets of $12,729,300.

 

34 Retirement Advantage Funds 

 


 

The funds’ portfolios 2/28/23 (Unaudited) cont.

Maturity Fund  Shares  Value 
Multi-Asset Income Funds (94.1%)*     
Putnam Multi-Asset Income Fund Class P †††  1,279,084  $12,176,876 
Total Multi-Asset Income Funds (cost $13,540,629)    $12,176,876 
 
Fixed Income Funds (5.9%)*     
Putnam Short Term Investment Fund Class G †††  770,213  $770,213 
Total Fixed Income Funds (cost $770,213)    $770,213 
 
TOTAL INVESTMENTS     
Total Investments (cost $14,310,842)    $12,947,089 

 

* Percentages indicated are based on net assets of $12,945,308.

Notes to the fund’s portfolio

Unless noted otherwise, the notes to the funds’ portfolios are for the close of each fund’s reporting period, which ran from September 1, 2022 through February 28, 2023 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures.

††† Affiliated Company (Note 5).


ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of each fund’s investments. The three levels are defined as follows:

Level 1 : Valuations based on quoted prices for identical securities in active markets.

Level 2 : Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 : Valuations based on inputs that are unobservable and significant to the fair value measurement.

The following is a summary of the inputs used to value the funds’ net assets as of the close of the reporting period:

      Valuation inputs     
Investments in securities:  Level 1  Level 2  Level 3  Total 
2065 Fund  $56,514  $208,283  $—  $264,797 
2060 Fund  492,621  1,216,178    1,708,799 
2055 Fund  1,845,088  1,833,581    3,678,669 
2050 Fund  3,866,058  1,244,670    5,110,728 
2045 Fund  8,951,897  433,205    9,385,102 
2040 Fund  8,476,125  257,823    8,733,948 
2035 Fund  15,002,968  615,451    15,618,419 
2030 Fund  12,953,212  703,157    13,656,369 
2025 Fund  11,971,523  757,597    12,729,120 
Maturity Fund  12,176,876  770,213    12,947,089 

 

The accompanying notes are an integral part of these financial statements.

Retirement Advantage Funds 35 

 


 

Statement of assets and liabilities 2/28/23 (Unaudited)

ASSETS  2065 Fund  2060 Fund  2055 Fund  2050 Fund  2045 Fund 
Investments in affiliated underlying           
Putnam Funds, at value (Notes 1 and 5)  $264,797  $1,708,799  $3,678,669  $5,110,728  $9,385,102 
Cash    74  58  38  118 
Receivable for income distributions           
from underlying Putnam Fund shares  3  30  66  92  592 
Receivable for shares of the fund sold    2,772  4,800  4,762  11,593 
Receivable for investments sold  30         
Receivable from Manager (Note 2)  2,548  4,978  8,579  11,367  19,256 
Total assets  267,378  1,716,653  3,692,172  5,126,987  9,416,661 
 
LIABILITIES           
Payable for investments purchased  34  2,802  4,867  4,855  12,189 
Payable for investor servicing           
fees (Note 2)  52  121  213  281  514 
Payable for distribution fees (Note 2)  58  97  113  128  229 
Payable for reports to shareholders  2,193  2,408  2,819  3,270  4,311 
Payable for auditing and tax fee  249  1,917  4,433  6,169  11,499 
Other accrued expenses  40  183  146  188  315 
Total liabilities  2,626  7,528  12,591  14,891  29,057 
 
Net assets  $264,752  $1,709,125  $3,679,581  $5,112,096  $9,387,604 
 
REPRESENTED BY           
Paid-in-capital           
(unlimited shares authorized)           
(Notes 1 and 4)  $286,589  $1,861,148  $4,079,295  $5,757,124  $10,625,952 
Total distributable earnings (Note 1)  (21,837)  (152,023)  (399,714)  (645,028)  (1,238,348) 
Total — Representing net assets           
applicable to capital outstanding  $264,752  $1,709,125  $3,679,581  $5,112,096  $9,387,604 
 
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE       
Computation of net asset value, offering price and redemption price Class A     
Net Assets  $116,581  $168,272  $191,349  $248,837  $447,799 
Number of shares outstanding  12,532  18,240  20,925  28,067  50,241 
Net asset value and redemption price  $9.30  $9.23  $9.14  $8.87  $8.91 
Offering price per class A share           
(100/94.25 of Class A net asset value)*  $9.87  $9.79  $9.70  $9.41  $9.45 
Offering price per class A share           
(100/96.00 of Class A net asset value)**  N/A  N/A  N/A  N/A  N/A 

 

(Continued on next page)

 

36 Retirement Advantage Funds 

 


 

Statement of assets and liabilities 2/28/23 (Unaudited) cont.

COMPUTATION OF NET ASSET           
VALUE AND OFFERING PRICE cont.  2065 Fund  2060 Fund  2055 Fund  2050 Fund  2045 Fund 
Computation of net asset value and offering price Class C       
Net Assets  $14,671  $11,389  $13,752  $10,931  $22,923 
Number of shares outstanding  1,586  1,242  1,506  1,233  2,570 
Net asset value, offering price***  $9.25  $9.17  $9.13  $8.87  $8.92 
Computation of net asset value, offering price and redemption price Class R     
Net Assets  $10,274  $11,189  $11,123  $11,024  $10,927 
Number of shares outstanding  1,105  1,215  1,214  1,240  1,223 
Net asset value, offering price           
and redemption price  $9.30  $9.21  $9.16  $8.89  $8.94 
Computation of net asset value, offering price and redemption price Class R3     
Net Assets  $10,330  $11,257  $11,191  $11,091  $10,993 
Number of shares outstanding  1,108  1,219  1,221  1,247  1,230 
Net asset value, offering price           
and redemption price  $9.32  $9.23  $9.17  $8.89  $8.94 
Computation of net asset value, offering price and redemption price Class R4     
Net Assets  $43,176  $22,594  $30,319  $35,176  $67,784 
Number of shares outstanding  4,633  2,448  3,308  3,958  7,589 
Net asset value, offering price           
and redemption price  $9.32  $9.23  $9.17  $8.89  $8.93 
Computation of net asset value, offering price and redemption price Class R5     
Net Assets  $10,420  $11,366  $11,299  $11,198  $11,100 
Number of shares outstanding  1,117  1,230  1,232  1,259  1,241 
Net asset value, offering price           
and redemption price  $9.33  $9.24  $9.17  $8.90   $8.94 
Computation of net asset value, offering price and redemption price Class R6     
Net Assets  $36,921  $1,457,853  $3,398,442  $4,771,664  $8,755,779 
Number of shares outstanding  3,958  157,774  370,434  536,301  979,197 
Net asset value, offering price           
and redemption price  $9.33  $9.24  $9.17  $8.90  $8.94 
Computation of net asset value, offering price and redemption price Class Y     
Net Assets  $22,379  $15,205  $12,106  $12,175  $60,299 
Number of shares outstanding  2,399  1,645  1,320  1,369  6,744 
Net asset value, offering price           
and redemption price  $9.33  $9.24  $9.17  $8.90   $8.94 
Cost of investments (Note 1)  $311,892  $2,060,450  $4,382,843  $5,923,100  $10,616,760 

 

* On retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.

** On retail sales of less than $100,000. On sales of $100,000 or more the offering price is reduced.

*** Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.

Net asset value may not recalculate due to rounding of fractional shares.

The accompanying notes are an integral part of these financial statements.

Retirement Advantage Funds 37 

 


 

Statement of assets and liabilities 2/28/23 (Unaudited) cont.

ASSETS  2040 Fund  2035 Fund  2030 Fund  2025 Fund  Maturity Fund 
Investments in affiliated underlying           
Putnam Funds, at value (Notes 1 and 5)  $8,733,948  $15,618,419  $13,656,369  $12,729,120  $12,947,089 
Cash  54  69  63  159  42 
Receivable for income distributions           
from underlying Putnam Fund shares  919  2,170  2,506  2,715  2,777 
Receivable for shares of the fund sold  12,111  202,883  4,576  2,024  3,845 
Receivable for investments sold  963  74  724  102  7,370 
Receivable from Manager (Note 2)  17,378  27,790  24,773  23,602  21,402 
Total assets  8,765,373  15,851,405  13,689,011  12,757,722  12,982,525 
 
LIABILITIES           
Payable for shares of the           
fund repurchased  963  74  724  102  7,370 
Payable for investments purchased  13,036  205,069  7,101  4,759  6,641 
Payable for investor servicing           
fees (Note 2)  428  789  703  802  668 
Payable for distribution fees (Note 2)  128  359  335  606  267 
Payable for reports to shareholders  4,183  5,649  5,384  5,402  5,381 
Payable for auditing and tax fee  10,263  18,063  16,568  16,580  16,766 
Other accrued expenses  327  476  335  171  124 
Total liabilities  29,328  230,479  31,150  28,422  37,217 
 
Net assets  $8,736,045  $15,620,926  $13,657,861  $12,729,300  $12,945,308 
 
REPRESENTED BY           
Paid-in-capital           
(unlimited shares authorized)           
(Notes 1 and 4)  $9,839,842  $17,675,487  $15,801,719  $14,443,665  $14,486,635 
Total distributable earnings (Note 1)  (1,103,797)  (2,054,561)  (2,143,858)  (1,714,365)  (1,541,327) 
Total — Representing net assets           
applicable to capital outstanding  $8,736,045  $15,620,926  $13,657,861  $12,729,300  $12,945,308 
 
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE       
Computation of net asset value, offering price and redemption price Class A     
Net Assets  $224,950  $996,716  $583,862  $1,168,499  $583,839 
Number of shares outstanding  25,539  111,007  65,189  126,638  61,786 
Net asset value and redemption price  $8.81  $8.98  $8.96  $9.23  $9.45 
Offering price per class A share           
(100/94.25 of Class A net asset value)*  $9.35  $9.53  $9.51  $9.79  N/A 
Offering price per class A share           
(100/96.00 of Class A net asset value)**  N/A  N/A  N/A  N/A  $9.84 

 

(Continued on next page)

 

38 Retirement Advantage Funds 

 


 

Statement of assets and liabilities 2/28/23 (Unaudited) cont.

COMPUTATION OF NET ASSET           
VALUE AND OFFERING PRICE  2040 Fund  2035 Fund  2030 Fund  2025 Fund  Maturity Fund 
Computation of net asset value and offering price Class C       
Net Assets  $22,361  $12,606  $65,023  $68,069  $9,494 
Number of shares outstanding  2,539  1,409  7,302  7,412  1,021 
Net asset value, offering price***  $8.81  $8.95  $8.90  $9.18  $9.30 
Computation of net asset value, offering price and redemption price Class R     
Net Assets  $10,824  $10,610  $10,270  $9,662  $9,574 
Number of shares outstanding  1,228  1,181  1,143  1,046  1,022 
Net asset value, offering price           
and redemption price  $8.82  $8.99   $8.98   $9.23  $9.37 
Computation of net asset value, offering price and redemption price Class R3     
Net Assets  $10,890  $10,675  $10,332  $9,721  $9,631 
Number of shares outstanding  1,235  1,186  1,150  1,052  1,023 
Net asset value, offering price           
and redemption price  $8.82  $9.00  $8.99   $9.24  $9.42 
Computation of net asset value, offering price and redemption price Class R4     
Net Assets  $44,574  $25,754  $94,984  $93,320  $25,558 
Number of shares outstanding  5,057  2,863  10,574  10,111  2,701 
Net asset value, offering price           
and redemption price  $8.81  $8.99   $8.98  $9.23  $9.46 
Computation of net asset value, offering price and redemption price Class R5     
Net Assets  $10,996  $10,778  $10,433  $9,815  $9,724 
Number of shares outstanding  1,246  1,197  1,160  1,062  1,025 
Net asset value, offering price           
and redemption price  $8.82  $9.00  $8.99  $9.24  $9.49 
Computation of net asset value, offering price and redemption price Class R6     
Net Assets  $8,400,454  $14,535,793  $12,870,859  $11,360,396  $12,274,141 
Number of shares outstanding  951,781  1,614,332  1,431,502  1,229,695  1,290,301 
Net asset value, offering price           
and redemption price  $8.83  $9.00  $8.99  $9.24  $9.51 
Computation of net asset value, offering price and redemption price Class Y     
Net Assets  $10,996  $17,994  $12,098  $9,818  $23,347 
Number of shares outstanding  1,246  1,999  1,346  1,062  2,460 
Net asset value, offering price           
and redemption price  $8.82  $9.00  $8.99  $9.24  $9.49 
Cost of investments (Note 1)  $9,736,368  $17,601,952  $15,487,491  $14,296,055  $14,310,842 

 

* On retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.

** On retail sales of less than $100,000. On sales of $100,000 or more the offering price is reduced.

*** Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.

Net asset value may not recalculate due to rounding of fractional shares.

The accompanying notes are an integral part of these financial statements.

Retirement Advantage Funds 39 

 


 

Statement of operations Six months ended 2/28/23 (Unaudited)

INVESTMENT INCOME  2065 Fund  2060 Fund  2055 Fund  2050 Fund  2045 Fund 
Income distributions from underlying           
Putnam Fund shares (Note 5)  $1,956  $15,895  $35,707  $49,611  $93,668 
 
EXPENSES           
Compensation of Manager (Note 2)  420  3,163  7,142  9,708  17,659 
Investor servicing fees (Note 2)  142  321  591  763  1,440 
Distribution fees (Note 2)  161  264  336  333  653 
Blue sky expense  35,494  33,181  33,244  33,159  33,244 
Auditing and tax fees  874  2,542  5,058  6,794  12,124 
Other  877  1,309  1,605  1,872  2,644 
Fees waived and reimbursed           
by Manager (Note 2)  (37,852)  (41,663)  (50,564)  (56,637)  (75,198) 
Total expenses  116  (883)  (2,588)  (4,008)  (7,434) 
 
Net investment income  1,840  16,778  38,295  53,619  101,102 
 
REALIZED AND UNREALIZED GAIN (LOSS)         
Net realized gain (loss) on:           
Sale of underlying Putnam Fund           
shares (Notes 1 and 3)  (2,156)  (9,479)  (20,781)  (39,052)  (93,961) 
Capital gain distribution           
from underlying Putnam Fund           
shares (Note 5)  26,735  203,309  324,429  240,157  129,086 
Total net realized gain  24,579  193,830  303,648  201,105  35,125 
Change in net unrealized appreciation (depreciation) on:       
Underlying Putnam Fund shares  (19,089)  (146,552)  (211,779)  (80,370)  143,104 
Total change in net           
appreciation (depreciation)  (19,089)  (146,552)  (211,779)  (80,370)  143,104 
 
Net gain on investments  5,490  47,278  91,869  120,735  178,229 
 
Net increase in net assets resulting           
from operations  $7,330  $64,056  $130,164  $174,354  $279,331 

 

The accompanying notes are an integral part of these financial statements.

40 Retirement Advantage Funds 

 


 

Statement of operations Six months ended 2/28/23 (Unaudited) cont.

INVESTMENT INCOME  2040 Fund  2035 Fund  2030 Fund  2025 Fund  Maturity Fund 
Income distributions from underlying           
Putnam Fund shares (Note 5)  $79,736  $128,084  $115,500  $98,414  $38,123 
 
EXPENSES           
Compensation of Manager (Note 2)  15,385  26,396  23,570  22,971  22,599 
Investor servicing fees (Note 2)  1,171  2,161  2,010  2,380  1,901 
Distribution fees (Note 2)  372  1,055  949  1,907  685 
Blue sky expense  33,344  33,644  33,294  33,944  33,279 
Auditing and tax fees  10,888  18,688  17,193  19,580  16,766 
Other  2,383  3,634  3,420  3,204  3,260 
Fees waived and reimbursed           
by Manager (Note 2)  (69,578)  (92,856)  (85,118)  (84,868)  (73,593) 
Total expenses  (6,035)  (7,278)  (4,682)  (882)  4,897 
 
Net investment income  85,771  135,362  120,182  99,296  33,226 
 
REALIZED AND UNREALIZED GAIN (LOSS)         
Net realized gain (loss) on:           
Sale of underlying Putnam Fund           
shares (Notes 1 and 3)  (166,150)  (361,052)  (464,645)  (353,506)  (262,388) 
Capital gain distribution           
from underlying Putnam Fund           
shares (Note 5)  138,685  463,393  467,488  382,337  156,253 
Total net realized gain (loss)  (27,465)  102,341  2,843  28,831  (106,135) 
Change in net unrealized           
appreciation (depreciation) on:           
Underlying Putnam Fund shares  187,787  63,146  14,195  (74,528)  182,975 
Total change in net           
appreciation (depreciation)  187,787  63,146  14,195  (74,528)  182,975 
 
Net gain (loss) on investments  160,322  165,487  17,038  (45,697)  76,840 
 
Net increase in net assets resulting           
from operations  $246,093  $300,849  $137,220  $53,599  $110,066 

 

The accompanying notes are an integral part of these financial statements.

Retirement Advantage Funds 41 

 


 

Statement of changes in net assets

2065 Fund —     
INCREASE IN NET ASSETS   Six months ended 2/28/23*  Year ended 8/31/22 
Operations     
Net investment income  $1,840  $1,058 
Net realized gain of underlying Putnam fund shares  24,579  14,909 
Net unrealized depreciation of underlying     
Putnam fund shares  (19,089)  (44,688) 
Net increase (decrease) in net assets resulting     
from operations  7,330  (28,721) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (124)  (1,998) 
Class C    (571) 
Class R    (610) 
Class R3  (1)  (638) 
Class R4  (145)  (667) 
Class R5  (42)  (684) 
Class R6  (227)  (695) 
Class Y  (91)  (1,510) 
From net realized long-term gain on investments     
Class A  (2,260)   
Class C  (623)   
Class R  (459)   
Class R3  (460)   
Class R4  (1,805)   
Class R5  (462)   
Class R6  (1,970)   
Class Y  (994)   
Increase from capital share transactions (Note 4)  92,232  92,462 
Total increase in net assets  89,899  56,368 
 
NET ASSETS     
Beginning of period  174,853  118,485 
End of period  $264,752  $174,853 

 

* Unaudited

The accompanying notes are an integral part of these financial statements.

42 Retirement Advantage Funds 

 


 

Statement of changes in net assets cont.

2060 Fund —     
INCREASE IN NET ASSETS   Six months ended 2/28/23*  Year ended 8/31/22 
Operations     
Net investment income  $16,778  $11,858 
Net realized gain of underlying Putnam fund shares  193,830  143,209 
Net unrealized depreciation of underlying     
Putnam fund shares  (146,552)  (345,042) 
Net increase (decrease) in net assets resulting     
from operations  64,056  (189,975) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (395)  (5,313) 
Class C    (608) 
Class R    (651) 
Class R3  (7)  (681) 
Class R4  (80)  (713) 
Class R5  (52)  (732) 
Class R6  (7,565)  (52,991) 
Class Y  (69)  (937) 
Net realized short-term gain on investments     
Class A    (8,866) 
Class C    (1,184) 
Class R    (1,184) 
Class R3    (1,185) 
Class R4    (1,186) 
Class R5    (1,186) 
Class R6    (84,487) 
Class Y    (1,520) 
From net realized long-term gain on investments     
Class A  (8,096)  (3,029) 
Class C  (644)  (405) 
Class R  (632)  (404) 
Class R3  (634)  (405) 
Class R4  (1,229)  (405) 
Class R5  (637)  (405) 
Class R6  (76,060)  (28,861) 
Class Y  (848)  (519) 
Increase from capital share transactions (Note 4)  496,945  732,815 
Total increase in net assets  464,053  344,983 
 
NET ASSETS     
Beginning of period  1,245,072  900,089 
End of period  $1,709,125  $1,245,072 

 

* Unaudited

The accompanying notes are an integral part of these financial statements.

Retirement Advantage Funds 43 

 


 

Statement of changes in net assets cont.

2055 Fund —     
INCREASE IN NET ASSETS   Six months ended 2/28/23*  Year ended 8/31/22 
Operations     
Net investment income  $38,295  $37,733 
Net realized gain of underlying Putnam fund shares  303,648  401,234 
Net unrealized depreciation of underlying     
Putnam fund shares  (211,779)  (928,027) 
Net increase (decrease) in net assets resulting     
from operations  130,164  (489,060) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (1,026)  (3,095) 
Class C    (612) 
Class R  (3)  (654) 
Class R3  (32)  (684) 
Class R4  (172)  (716) 
Class R5  (76)  (736) 
Class R6  (25,574)  (158,759) 
Class Y  (82)  (755) 
Net realized short-term gain on investments     
Class A    (1,572) 
Class C    (364) 
Class R    (366) 
Class R3    (365) 
Class R4    (365) 
Class R5    (365) 
Class R6    (77,548) 
Class Y    (375) 
From net realized long-term gain on investments     
Class A  (14,309)  (3,590) 
Class C  (1,057)  (831) 
Class R  (856)  (832) 
Class R3  (858)  (833) 
Class R4  (2,270)  (834) 
Class R5  (863)  (834) 
Class R6  (251,481)  (177,078) 
Class Y  (919)  (856) 
Increase from capital share transactions (Note 4)  687,308  1,695,614 
Total increase in net assets  517,894  773,535 
 
NET ASSETS     
Beginning of period  3,161,687  2,388,152 
End of period  $3,679,581  $3,161,687 

 

* Unaudited

The accompanying notes are an integral part of these financial statements.

44 Retirement Advantage Funds 

 


 

Statement of changes in net assets cont.

2050 Fund —     
INCREASE IN NET ASSETS   Six months ended 2/28/23*  Year ended 8/31/22 
Operations     
Net investment income  $53,619  $71,999 
Net realized gain of underlying Putnam fund shares  201,105  602,227 
Net unrealized depreciation of underlying     
Putnam fund shares  (80,370)  (1,365,437) 
Net increase (decrease) in net assets resulting     
from operations  174,354  (691,211) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (1,518)  (1,439) 
Class C    (601) 
Class R  (21)  (643) 
Class R3  (49)  (675) 
Class R4  (254)  (705) 
Class R5  (93)  (724) 
Class R6  (43,257)  (263,369) 
Class Y  (102)  (724) 
Net realized short-term gain on investments     
Class A    (1,593) 
Class C    (778) 
Class R    (779) 
Class R3    (779) 
Class R4    (780) 
Class R5    (780) 
Class R6    (279,225) 
Class Y    (780) 
From net realized long-term gain on investments     
Class A  (17,835)  (877) 
Class C  (972)  (429) 
Class R  (976)  (429) 
Class R3  (979)  (429) 
Class R4  (2,941)  (429) 
Class R5  (984)  (430) 
Class R6  (408,598)  (153,746) 
Class Y  (1,070)  (430) 
Increase from capital share transactions (Note 4)  1,010,090  1,784,310 
Total increase in net assets  704,795  381,526 
 
NET ASSETS     
Beginning of period  4,407,301  4,025,775 
End of period  $5,112,096  $4,407,301 

 

* Unaudited

The accompanying notes are an integral part of these financial statements.

Retirement Advantage Funds 45 

 


 

Statement of changes in net assets cont.

2045 Fund —     
INCREASE IN NET ASSETS   Six months ended 2/28/23*  Year ended 8/31/22 
Operations     
Net investment income  $101,102  $152,483 
Net realized gain of underlying Putnam fund shares  35,125  1,216,071 
Net unrealized appreciation (depreciation) of underlying     
Putnam Fund shares  143,104  (2,697,809) 
Net increase (decrease) in net assets resulting     
from operations  279,331  (1,329,255) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (4,535)  (13,350) 
Class C  (63)  (1,119) 
Class R  (64)  (614) 
Class R3  (91)  (644) 
Class R4  (950)  (674) 
Class R5  (136)  (693) 
Class R6  (114,180)  (480,308) 
Class Y  (136)  (693) 
Net realized short-term gain on investments     
Class A    (9,737) 
Class C    (950) 
Class R    (490) 
Class R3    (491) 
Class R4    (491) 
Class R5    (491) 
Class R6    (334,126) 
Class Y    (491) 
From net realized long-term gain on investments     
Class A  (39,696)  (10,535) 
Class C  (2,058)  (1,028) 
Class R  (1,009)  (530) 
Class R3  (1,013)  (530) 
Class R4  (7,524)  (531) 
Class R5  (1,018)  (531) 
Class R6  (783,067)  (361,535) 
Class Y  (1,018)  (531) 
Increase from capital share transactions (Note 4)  1,691,955  3,127,939 
Total increase in net assets  1,014,728  577,571 
 
NET ASSETS     
Beginning of period  8,372,876  7,795,305 
End of period  $9,387,604  $8,372,876 

 

* Unaudited

The accompanying notes are an integral part of these financial statements.

46 Retirement Advantage Funds 

 


 

Statement of changes in net assets cont.

2040 Fund —     
INCREASE (DECREASE) IN NET ASSETS   Six months ended 2/28/23*  Year ended 8/31/22 
Operations     
Net investment income  $85,771  $141,037 
Net realized gain (loss) of underlying Putnam fund shares  (27,465)  1,075,818 
Net unrealized appreciation (depreciation) of underlying     
Putnam Fund shares  187,787  (2,346,449) 
Net increase (decrease) in net assets resulting     
from operations  246,093  (1,129,594) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (2,107)  (3,430) 
Class C  (46)  (621) 
Class R  (63)  (596) 
Class R3  (90)  (627) 
Class R4  (504)  (658) 
Class R5  (135)  (675) 
Class R6  (101,843)  (438,642) 
Class Y  (135)  (675) 
From net realized short-term gain on investments     
Class A    (2,462) 
Class C    (519) 
Class R    (465) 
Class R3    (465) 
Class R4    (465) 
Class R5    (466) 
Class R6    (297,145) 
Class Y    (466) 
From net realized long-term gain on investments     
Class A  (19,540)  (2,436) 
Class C  (1,524)  (514) 
Class R  (1,064)  (460) 
Class R3  (1,067)  (460) 
Class R4  (4,298)  (461) 
Class R5  (1,072)  (461) 
Class R6  (749,168)  (294,068) 
Class Y  (1,072)  (461) 
Increase from capital share transactions (Note 4)  2,193,966  2,027,503 
Total increase (decrease) in net assets  1,556,331  (149,789) 
 
NET ASSETS     
Beginning of period  7,179,714  7,329,503 
End of period  $8,736,045  $7,179,714 

 

* Unaudited

The accompanying notes are an integral part of these financial statements.

Retirement Advantage Funds 47 

 


 

Statement of changes in net assets cont.

2035 Fund —     
INCREASE IN NET ASSETS   Six months ended 2/28/23*  Year ended 8/31/22 
Operations     
Net investment income  $135,362  $219,262 
Net realized gain of underlying Putnam fund shares  102,341  1,360,237 
Net unrealized appreciation (depreciation) of underlying     
Putnam Fund shares  63,146  (3,454,773) 
Net increase (decrease) in net assets resulting     
from operations  300,849  (1,875,274) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (2,992)  (27,890) 
Class C    (531) 
Class R    (572) 
Class R3  (18)  (602) 
Class R4  (119)  (631) 
Class R5  (61)  (649) 
Class R6  (85,721)  (730,405) 
Class Y  (101)  (1,087) 
Net realized short-term gain on investments     
Class A    (25,169) 
Class C    (568) 
Class R    (569) 
Class R3    (569) 
Class R4    (570) 
Class R5    (570) 
Class R6    (630,322) 
Class Y    (952) 
From net realized long-term gain on investments     
Class A  (54,569)  (15,008) 
Class C  (1,098)  (339) 
Class R  (758)  (339) 
Class R3  (759)  (339) 
Class R4  (1,753)  (340) 
Class R5  (764)  (340) 
Class R6  (913,918)  (375,850) 
Class Y  (1,277)  (567) 
Increase from capital share transactions (Note 4)  3,369,567  4,056,530 
Total increase in net assets  2,606,508  366,478 
 
NET ASSETS     
Beginning of period  13,014,418  12,647,940 
End of period  $15,620,926  $13,014,418 

 

* Unaudited

The accompanying notes are an integral part of these financial statements.

48 Retirement Advantage Funds 

 


 

Statement of changes in net assets cont.

2030 Fund —     
INCREASE IN NET ASSETS   Six months ended 2/28/23*  Year ended 8/31/22 
Operations     
Net investment income  $120,182  $186,748 
Net realized gain of underlying Putnam fund shares  2,843  936,966 
Net unrealized appreciation (depreciation) of underlying     
Putnam Fund shares  14,195  (2,829,744) 
Net increase (decrease) in net assets resulting     
from operations  137,220  (1,706,030) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (7,603)  (15,185) 
Class C  (447)  (1,701) 
Class R  (95)  (482) 
Class R3  (121)  (511) 
Class R4  (1,417)  (539) 
Class R5  (164)  (556) 
Class R6  (196,212)  (655,990) 
Class Y  (191)  (572) 
Net realized short-term gain on investments     
Class A    (10,741) 
Class C    (1,313) 
Class R    (389) 
Class R3    (389) 
Class R4    (389) 
Class R5    (389) 
Class R6    (449,886) 
Class Y    (400) 
From net realized long-term gain on investments     
Class A  (28,958)  (9,947) 
Class C  (3,088)  (1,216) 
Class R  (554)  (359) 
Class R3  (556)  (360) 
Class R4  (5,099)  (361) 
Class R5  (558)  (361) 
Class R6  (627,390)  (416,643) 
Class Y  (648)  (371) 
Increase from capital share transactions (Note 4)  2,087,236  3,896,490 
Total increase in net assets  1,351,355  621,410 
 
NET ASSETS     
Beginning of period  12,306,506  11,685,096 
End of period  $13,657,861  $12,306,506 

 

* Unaudited

The accompanying notes are an integral part of these financial statements.

Retirement Advantage Funds 49 

 


 

Statement of changes in net assets cont.

2025 Fund —     
INCREASE IN NET ASSETS   Six months ended 2/28/23*  Year ended 8/31/22 
Operations     
Net investment income  $99,296  $171,447 
Net realized gain of underlying Putnam fund shares  28,831  271,976 
Net unrealized depreciation of underlying     
Putnam fund shares  (74,528)  (2,081,120) 
Net increase (decrease) in net assets resulting     
from operations  53,599  (1,637,697) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (4,548)  (54,664) 
Class C    (1,494) 
Class R  (9)  (285) 
Class R3  (33)  (311) 
Class R4  (697)  (338) 
Class R5  (74)  (355) 
Class R6  (99,758)  (385,547) 
Class Y  (74)  (354) 
From net realized short-term gain on investments     
Class A    (35,053) 
Class C    (1,202) 
Class R    (219) 
Class R3    (220) 
Class R4    (220) 
Class R5    (220) 
Class R6    (231,533) 
Class Y    (220) 
From net realized long-term gain on investments     
Class A  (17,559)  (26,869) 
Class C  (1,008)  (922) 
Class R  (143)  (168) 
Class R3  (144)  (168) 
Class R4  (1,515)  (168) 
Class R5  (144)  (168) 
Class R6  (171,190)  (177,475) 
Class Y  (144)  (169) 
Increase from capital share transactions (Note 4)  339,485  3,315,126 
Total increase in net assets  96,044  759,087 
 
NET ASSETS     
Beginning of period  12,633,256  11,874,169 
End of period  $12,729,300  $12,633,256 

 

* Unaudited

The accompanying notes are an integral part of these financial statements.

50 Retirement Advantage Funds 

 


 

Statement of changes in net assets cont.

Maturity Fund —     
INCREASE IN NET ASSETS   Six months ended 2/28/23*  Year ended 8/31/22 
Operations     
Net investment income  $33,226  $77,130 
Net realized gain (loss) of underlying Putnam fund shares  (106,135)  444,835 
Net unrealized appreciation (depreciation) of underlying     
Putnam Fund shares  182,975  (2,223,680) 
Net increase (decrease) in net assets resulting     
from operations  110,066  (1,701,715) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (961)  (17,469) 
Class C  (10)  (301) 
Class R  (13)  (305) 
Class R3  (16)  (309) 
Class R4  (61)  (310) 
Class R5  (29)  (313) 
Class R6  (39,503)  (433,407) 
Class Y  (68)  (313) 
From net realized short-term gain on investments     
Class A    (6,900) 
Class C    (122) 
Class R    (122) 
Class R3    (122) 
Class R4    (122) 
Class R5    (122) 
Class R6    (169,070) 
Class Y    (122) 
From net realized long-term gain on investments     
Class A  (4,043)  (1,698) 
Class C  (88)  (30) 
Class R  (88)  (30) 
Class R3  (88)  (30) 
Class R4  (222)  (30) 
Class R5  (88)  (30) 
Class R6  (111,544)  (41,596) 
Class Y  (212)  (30) 
Increase from capital share transactions (Note 4)  276,847  3,418,755 
Total increase in net assets  229,879  1,044,137 
 
NET ASSETS     
Beginning of period  12,715,429  11,671,292 
End of period  $12,945,308  $12,715,429 

 

* Unaudited

The accompanying notes are an integral part of these financial statements.

Retirement Advantage Funds 51 

 


 

Financial highlights
(For a common share outstanding throughout the period)

2065 Fund

  INVESTMENT OPERATIONS      LESS DISTRIBUTIONS        RATIOS AND SUPPLEMENTAL DATA   
                        Ratio of net   
                      Ratio  investment   
  Net asset    Net realized                of expenses  income (loss)   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  to average  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  net assets  turnover 
Period ended­  of period­  income (loss)a,b  on investments­  operations­  income­  on investments­  distributions  of period­  value (%)c  (in thousands)  (%)d,e  (%)b,e  (%) 
Class A                           
February 28, 2023**   $9.43­  .09  .24  .33­  (.02)  (.44)  (.46)  $9.30­  3.74*  $117­  .09*  .96*  13* 
August 31, 2022­  11.88­  .08­  (1.86)  (1.78)  (.67)  —­  (.67)  9.43­  (15.94)  42­  .18­  .79­  10­ 
August 31, 2021 ­  10.00­  (.02)  1.90­  1.88­  —­  —­  —­  11.88­  18.80*  21­  .12*  (.12)*  1* 
Class C­                           
February 28, 2023**  $9.40­  .06  .23  .29­  —­  (.44)  (.44)  $9.25­  3.27*  $15­  .46*  .61*  13* 
August 31, 2022­  11.82­  .01­  (1.86)  (1.85)  (.57)  —­  (.57)  9.40­  (16.50)  12­  .93­  .06­  10­ 
August 31, 2021 ­  10.00­  (.07)  1.89­  1.82­  —­  —­  —­  11.82­  18.20*  12­  .63*  (.63)*  1* 
Class R­                           
February 28, 2023**  $9.42­  .07  .25  .32­  —­  (.44)  (.44)  $9.30­  3.58*  $10­  .28*  .73*  13* 
August 31, 2022­  11.85­  .05­  (1.87)  (1.82)  (.61)  —­  (.61)  9.42­  (16.26)  10­  .58­  .47­  10­ 
August 31, 2021 ­  10.00­  (.04)  1.89­  1.85­  —­  —­  —­  11.85­  18.50*  12­  .39*  (.39)*  1* 
Class R3­                           
February 28, 2023**  $9.44­  .08  .24  .32­  —­f  (.44)  (.44)  $9.32­  3.59*  $10­  .16*  .86*  13* 
August 31, 2022­  11.87­  .08­  (1.87)  (1.79)  (.64)  —­  (.64)  9.44­  (16.03)  10­  .33­  .72­  10­ 
August 31, 2021 ­  10.00­  (.02)  1.89­  1.87­  —­  —­  —­  11.87­  18.70*  12­  .22*  (.22)*  1* 
Class R4­                           
February 28, 2023**  $9.46­  .10  .24  .34­  (.04)  (.44)  (.48)  $9.32­  3.75*  $43­  .04*  1.04*  13* 
August 31, 2022­  11.89­  .06­  (1.82)  (1.76)  (.67)  —­  (.67)  9.46­  (15.79)  34­  .08­  .54­  10­ 
August 31, 2021 ­  10.00­  (.01)  1.90­  1.89­  —­  —­  —­  11.89­  18.90*  12­  .06*  (.06)*  1* 
Class R5­                           
February 28, 2023**  $9.47­  .10  .24  .34­  (.04)  (.44)  (.48)  $9.33­  3.80*  $10­  (.04)*  1.06*  13* 
August 31, 2022­  11.90­  .12­  (1.87)  (1.75)  (.68)  —­  (.68)  9.47­  (15.66)  10­  (.07)  1.11­  10­ 
August 31, 2021 ­  10.00­  .01­  1.89­  1.90­  —­  —­  —­  11.90­  19.00*  12­  (.04)*  .04*  1* 
Class R6­                           
February 28, 2023**  $9.47­  .10  .25  .35­  (.05)  (.44)  (.49)  $9.33­  3.91*  $37­  (.09)*  1.10*  13* 
August 31, 2022­  11.91­  .06­  (1.80)  (1.74)  (.70)  —­  (.70)  9.47­  (15.65)  36­  (.17)  .60­  10­ 
August 31, 2021 ­  10.00­  .01­  1.90­  1.91­  —­  —­  —­  11.91­  19.10*  12­  (.11)*  .11*  1* 
Class Y­                           
February 28, 2023**  $9.46­  .10  .25  .35­  (.04)  (.44)  (.48)  $9.33­  3.91*  $22­  (.04)*  1.05*  13* 
August 31, 2022­  11.90­  .12­  (1.87)  (1.75)  (.69)  —­  (.69)  9.46­  (15.73)  22­  (.07)  1.11­  10­ 
August 31, 2021 ­  10.00­  —­f  1.90­  1.90­  —­  —­  —­  11.90­  19.00*  27­  (.04)*  .04*  1* 

 

See page 72 for notes to financial highlights.

The accompanying notes are an integral part of these financial statements.

52 Retirement Advantage Funds  Retirement Advantage Funds 53 

 


 

Financial highlights
(For a common share outstanding throughout the period)

2060 Fund

  INVESTMENT OPERATIONS      LESS DISTRIBUTIONS        RATIOS AND SUPPLEMENTAL DATA   
                        Ratio of net   
                      Ratio  investment   
  Net asset    Net realized                of expenses  income (loss)   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  to average  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  net assets  turnover 
Period ended­  of period­  income (loss)a,b  on investments­  operations­  income­  on investments­  distributions  of period­  value (%)c  (in thousands)  (%)d,e  (%)b,e  (%) 
Class A                           
February 28, 2023**   $9.48­  .08­  .25­  .33­  (.03)  (.55)  (.58)  $9.23­  3.79*  $168­  .08*  .83*  9* 
August 31, 2022­  13.66­  .08­  (1.83)  (1.75)  (.75)  (1.68)  (2.43)  9.48­  (15.91)  118­  .18­  .75­  25­ 
August 31, 2021 ­  10.66­  .06­  3.07­  3.13­  (.10)  (.03)  (.13)  13.66­  29.56­  71­  .18­  .50­  61­ 
Class C                           
February 28, 2023**   $9.44­  .06­  .22­  .28­  —­  (.55)  (.55)  $9.17­  3.28*  $11­  .46*  .67*  9* 
August 31, 2022­  13.59­  .02­  (1.85)  (1.83)  (.64)  (1.68)  (2.32)  9.44­  (16.48)  11­  .93­  .17­  25­ 
August 31, 2021 ­  10.66­  (.01)  3.04­  3.03­  (.07)  (.03)  (.10)  13.59­  28.59­  13­  .93­  (.11)  61­ 
Class R                           
February 28, 2023**   $9.46­  .08­  .22­  .30­  —­  (.55)  (.55)  $9.21­  3.49*  $11­  .28*  .86*  9* 
August 31, 2022­  13.62­  .06­  (1.85)  (1.79)  (.69)  (1.68)  (2.37)  9.46­  (16.22)  11­  .58­  .53­  25­ 
August 31, 2021 ­  10.66­  .03­  3.04­  3.07­  (.08)  (.03)  (.11)  13.62­  29.00­  13­  .58­  .23­  61­ 
Class R3                           
February 28, 2023**   $9.48­  .09­  .22­  .31­  (.01)  (.55)  (.56)  $9.23­  3.55*  $11­  .16*  .98*  9* 
August 31, 2022­  13.64­  .09­  (1.85)  (1.76)  (.72)  (1.68)  (2.40)  9.48­  (15.97)  11­  .33  .78­  25­ 
August 31, 2021 ­  10.66­  .06­  3.04­  3.10­  (.09)  (.03)  (.12)  13.64­  29.29­  13­  .33­  .48­  61­ 
Class R4                           
February 28, 2023**   $9.49­  .09­  .24­  .33­  (.04)  (.55)  (.59)  $9.23­  3.78*  $23­  .03*  .95*  9* 
August 31, 2022­  13.66­  .09­  (1.83)  (1.74)  (.75)  (1.68)  (2.43)  9.49­  (15.81)  20­  .08­  .80­  25­ 
August 31, 2021 ­  10.66­  .09­  3.04­  3.13­  (.10)  (.03)  (.13)  13.66­  29.58­  13­  .08­  .73­  61­ 
Class R5                           
February 28, 2023**   $9.50­  .11­  .23­  .34­  (.05)  (.55)  (.60)  $9.24­  3.87*  $11­  (.04)*  1.18*  9* 
August 31, 2022­  13.67­  .13­  (1.85)  (1.72)  (.77)  (1.68)  (2.45)  9.50­  (15.67)  11­  (.07)  1.18­  25­ 
August 31, 2021 ­  10.66­  .11­  3.03­  3.14­  (.10)  (.03)  (.13)  13.67­  29.73­  13­  (.07)  .88­  61­ 
Class R6                           
February 28, 2023**   $9.51­  .11­  .23­  .34­  (.06)  (.55)  (.61)  $9.24­  3.87*  $1,458­  (.09)*  1.21*  9* 
August 31, 2022­  13.68­  .13­  (1.84)  (1.71)  (.78)  (1.68)  (2.46)  9.51­  (15.55)  1,050­  (.17)  1.16­  25­ 
August 31, 2021  10.66­  .11­  3.05­  3.16­  (.11)  (.03)  (.14)  13.68­  29.87­  748­  (.17)  .91­  61­ 
August 31, 2020 ­  10.00­  .01­  .65­  .66­  —­  —­  —­  10.66­  6.60*  346­  (.11)*  .11*  3* 
Class Y­                           
February 28, 2023**  $9.51­  .11­  .22­  .33­  (.05)  (.55)  (.60)  $9.24­  3.76*  $15­  (.04)*  1.20*  9* 
August 31, 2022­  13.67­  .13­  (1.84)  (1.71)  (.77)  (1.68)  (2.45)  9.51­  (15.58)  14­  (.07)  1.18­  25­ 
August 31, 2021 ­  10.66­  .11­  3.03­  3.14­  (.10)  (.03)  (.13)  13.67­  29.74­  16­  (.07)  .89­  61­ 

 

See page 72 for notes to financial highlights.

The accompanying notes are an integral part of these financial statements.

54 Retirement Advantage Funds  Retirement Advantage Funds 55 

 


 

Financial highlights
(For a common share outstanding throughout the period)

2055 Fund

  INVESTMENT OPERATIONS      LESS DISTRIBUTIONS        RATIOS AND SUPPLEMENTAL DATA   
                        Ratio of net   
                      Ratio  investment   
  Net asset    Net realized                of expenses  income (loss)   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  to average  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  net assets  turnover 
Period ended­  of period­  income (loss)a,b  on investments­  operations­  income­  on investments­  distributions  of period­  value (%)c  (in thousands)  (%)d,e  (%)b,e  (%) 
Class A                           
February 28, 2023**   $9.66­  .08­  .23­  .31­  (.06)  (.77)  (.83)  $9.14­  3.52*  $191­  .08*  .86*  15* 
August 31, 2022­  13.43­  .06­  (1.83)  (1.77)  (.75)  (1.25)  (2.00)  9.66­  (15.71)  171­  .17­  .59­  25­ 
August 31, 2021 ­  10.63­  .06­  2.96­  3.02­  (.10)  (.12)  (.22)  13.43­  28.67­  37­  .18­  .53­  46­ 
Class C                           
February 28, 2023**   $9.63­  .04­  .23­  .27­  —­  (.77)  (.77)  $9.13­  3.13*  $14­  .45*  .39*  15* 
August 31, 2022­  13.37­  —­f  (1.85)  (1.85)  (.64)  (1.25)  (1.89)  9.63­  (16.28)  18­  .92­  .03­  25­ 
August 31, 2021 ­  10.63­  (.01)  2.94­  2.93­  (.07)  (.12)  (.19)  13.37­  27.78­  13­  .93­  (.11)  46­ 
Class R                           
February 28, 2023**   $9.65­  .07­  .21­  .28­  —­f  (.77)  (.77)  $9.16­  3.27*  $11­  .28*  .71*  15* 
August 31, 2022­  13.40­  .08­  (1.90)  (1.82)  (.68)  (1.25)  (1.93)  9.65­  (16.02)  11­  .57­  .71­  25­ 
August 31, 2021 ­  10.63­  .03­  2.94­  2.97­  (.08)  (.12)  (.20)  13.40­  28.21­  13­  .58­  .23­  46­ 
Class R3                           
February 28, 2023**   $9.67­  .08­  .22­  .30­  (.03)  (.77)  (.80)  $9.17­  3.44*  $11­  .16*  .83*  15* 
August 31, 2022­  13.42­  .11­  (1.89)  (1.78)  (.72)  (1.25)  (1.97)  9.67­  (15.78)  11­  .32­  .95­  25­ 
August 31, 2021 ­  10.63­  .06­  2.94­  3.00­  (.09)  (.12)  (.21)  13.42­  28.50­  13­  .33­  .48­  46­ 
Class R4                           
February 28, 2023**   $9.68­  .08­  .24­  .32­  (.06)  (.77)  (.83)  $9.17­  3.65*  $30­  .03*  .84*  15* 
August 31, 2022­  13.44­  .08­  (1.84)  (1.76)  (.75)  (1.25)  (2.00)  9.68­  (15.62)  30­  .07­  .73­  25­ 
August 31, 2021 ­  10.63­  .09­  2.94­  3.03­  (.10)  (.12)  (.22)  13.44­  28.79­  13­  .08­  .73­  46­ 
Class R5                           
February 28, 2023**   $9.69­  .10­  .22­  .32­  (.07)  (.77)  (.84)  $9.17­  3.65*  $11­  (.04)*  1.03*  15* 
August 31, 2022­  13.45­  .15­  (1.89)  (1.74)  (.77)  (1.25)  (2.02)  9.69­  (15.48)  11­  (.08)  1.35­  25­ 
August 31, 2021 ­  10.63­  .11­  2.93­  3.04­  (.10)  (.12)  (.22)  13.45­  28.94­  13­  (.07)  .88­  46­ 
Class R6                           
February 28, 2023**   $9.70­  .11­  .21­  .32­  (.08)  (.77)  (.85)  $9.17­  3.66*  $3,398­  (.09)*  1.17*  15* 
August 31, 2022­  13.46­  .15­  (1.88)  (1.73)  (.78)  (1.25)  (2.03)  9.70­  (15.37)  2,899­  (.18)  1.38­  25­ 
August 31, 2021  10.63­  .11­  2.95­  3.06­  (.11)  (.12)  (.23)  13.46­  29.08­  2,274­  (.17)  .91­  46­ 
August 31, 2020 ­  10.00­  .01­  .62­  .63­  —­  —­  —­  10.63­  6.30*  1,234­  (.11)*  .11*  23* 
Class Y­                           
February 28, 2023**  $9.69­  .10­  .22­  .32­  (.07)  (.77)  (.84)  $9.17­  3.65*  $12­  (.04)*  1.03*  15* 
August 31, 2022­  13.45­  .15­  (1.89)  (1.74)  (.77)  (1.25)  (2.02)  9.69­  (15.48)  11­  (.08)  1.35­  25­ 
August 31, 2021 ­  10.63­  .10­  2.94­  3.04­  (.10)  (.12)  (.22)  13.45­  28.94­  13­  (.07)  .88­  46­ 

 

See page 72 for notes to financial highlights.

The accompanying notes are an integral part of these financial statements.

56 Retirement Advantage Funds  Retirement Advantage Funds 57 

 


 

Financial highlights
(For a common share outstanding throughout the period)

2050 Fund

  INVESTMENT OPERATIONS      LESS DISTRIBUTIONS        RATIOS AND SUPPLEMENTAL DATA   
                        Ratio of net   
                      Ratio  investment   
  Net asset    Net realized                of expenses  income (loss)   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  to average  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  net assets  turnover 
Period ended­  of period­  income (loss)a,b  on investments­  operations­  income­  on investments­   distributions  of period­  value (%)c  (in thousands)  (%)d,e  (%)b,e  (%) 
Class A                           
February 28, 2023**   $9.54­  .08­  .19­  .27­  (.07)  (.87)  (.94)  $8.87­  3.29*  $249­  .08*  .92*  11* 
August 31, 2022­  13.23­  .04­  (1.74)  (1.70)  (.73)  (1.26)  (1.99)  9.54­  (15.35)  160­  .17­  .38­  39­ 
August 31, 2021 ­  10.60­  .06­  2.80­  2.86­  (.09)  (.14)  (.23)  13.23­  27.38­  19­  .17­  .53­  59­ 
Class C                           
February 28, 2023**   $9.50­  .06­  .18­  .24­  —­  (.87)  (.87)  $8.87­  2.89*  $11­  .45*  .63*  11* 
August 31, 2022­  13.17­  .06­  (1.84)  (1.78)  (.63)  (1.26)  (1.89)  9.50­  (16.00)  11­  .92­  .58­  39­ 
August 31, 2021 ­  10.60­  (.01)  2.79­  2.78­  (.07)  (.14)  (.21)  13.17­  26.51­  13­  .92­  (.12)  59­ 
Class R                           
February 28, 2023**   $9.52­  .07­  .19­  .26­  (.02)  (.87)  (.89)  $8.89­  3.09*  $11­  .27*  .80*  11* 
August 31, 2022­  13.20­  .10­  (1.85)  (1.75)  (.67)  (1.26)  (1.93)  9.52­  (15.74)  11­  .57­  .93­  39­ 
August 31, 2021 ­  10.60­  .03­  2.79­  2.82­  (.08)  (.14)  (.22)  13.20­  26.94­  13­  .57­  .23­  59­ 
Class R3                           
February 28, 2023**   $9.54­  .09­  .17­  .26­  (.04)  (.87)  (.91)  $8.89­  3.15*  $11­  .15*  .92*  11* 
August 31, 2022­  13.22­  .13­  (1.85)  (1.72)  (.70)  (1.26)  (1.96)  9.54­  (15.49)  11­  .32­  1.18­  39­ 
August 31, 2021 ­  10.60­  .06­  2.79­  2.85­  (.09)  (.14)  (.23)  13.22­  27.23­  13­  .32­  .48­  59­ 
Class R4                           
February 28, 2023**   $9.55­  .09­  .20­  .29­  (.08)  (.87)  (.95)  $8.89­  3.40*  $35­  .03*  .98*  11* 
August 31, 2022­  13.24­  .10­  (1.80)  (1.70)  (.73)  (1.26)  (1.99)  9.55­  (15.34)  28­  .07­  .94­  39­ 
August 31, 2021 ­  10.60­  .09­  2.79­  2.88­  (.10)  (.14)  (.24)  13.24­  27.51­  13­  .07­  .73­  59­ 
Class R5                           
February 28, 2023**   $9.56­  .10­  .19­  .29­  (.08)  (.87)  (.95)  $8.90­  3.48*  $11­  (.05)*  1.12*  11* 
August 31, 2022­  13.25­  .17­  (1.85)  (1.68)  (.75)  (1.26)  (2.01)  9.56­  (15.19)  11­  (.08)  1.58­  39­ 
August 31, 2021 ­  10.60­  .10­  2.79­  2.89­  (.10)  (.14)  (.24)  13.25­  27.68­  13­  (.08)  .88­  59­ 
Class R6                           
February 28, 2023**   $9.57­  .11­  .18­  .29­  (.09)  (.87)  (.96)  $8.90­  3.48*  $4,772­  (.10)*  1.17*  11* 
August 31, 2022­  13.26­  .19­  (1.86)  (1.67)  (.76)  (1.26)  (2.02)  9.57­  (15.08)  4,165­  (.18)  1.73­  39­ 
August 31, 2021  10.60­  .11­  2.79­  2.90­  (.10)  (.14)  (.24)  13.26­  27.81­  3,930­  (.18)  .94­  59­ 
August 31, 2020 ­  10.00­  .01­  .59­  .60­  —­  —­  —­  10.60­  6.00*  2,020­  (.11)*  .11*  9* 
Class Y­                           
February 28, 2023**  $9.56­  .10­  .19­  .29­  (.08)  (.87)  (.95)  $8.90­  3.49*  $12­  (.05)*  1.12*  11* 
August 31, 2022­  13.25­  .17­  (1.85)  (1.68)  (.75)  (1.26)  (2.01)  9.56­  (15.19)  12­  (.08)  1.57­  39­ 
August 31, 2021 ­  10.60­  .10­  2.79­  2.89­  (.10)  (.14)  (.24)  13.25­  27.68­  13­  (.08)  .88­  59­ 

 

See page 72 for notes to financial highlights.

The accompanying notes are an integral part of these financial statements.

58 Retirement Advantage Funds  Retirement Advantage Funds 59 

 


 

Financial highlights
(For a common share outstanding throughout the period)

2045 Fund

  INVESTMENT OPERATIONS      LESS DISTRIBUTIONS        RATIOS AND SUPPLEMENTAL DATA   
                        Ratio of net   
                      Ratio  investment   
  Net asset    Net realized                of expenses  income (loss)   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  to average  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  net assets  turnover 
Period ended­  of period­  income (loss)a,b   on investments­  operations­  income­  on investments­  distributions  of period­  value (%)c  (in thousands)  (%)d,e  (%)b,e  (%) 
Class A                           
February 28, 2023**   $9.68­  .09­  .17­  .26­  (.11)  (.92)  (1.03)  $8.91­  3.03*  $448­  .08*  1.02*  17* 
August 31, 2022­  13.14­  .12­  (1.81)  (1.69)  (.70)  (1.07)  (1.77)  9.68­  (15.04)  385­  .17­  1.14­  33­ 
August 31, 2021 ­  10.55­  .09­  2.64­  2.73­  (.10)  (.04)  (.14)  13.14­  26.05­  204­  .17­  .76­  44­ 
Class C                           
February 28, 2023**   $9.65­  .06­  .16­  .22­  (.03)  (.92)  (.95)  $8.92­  2.63*  $23­  .45*  .63*  17* 
August 31, 2022­  13.09­  .09­  (1.86)  (1.77)  (.60)  (1.07)  (1.67)  9.65­  (15.63)  21­  .92­  .77­  33­ 
August 31, 2021 ­  10.55­  (.05)  2.69­  2.64­  (.06)  (.04)  (.10)  13.09­  25.17­  24­  .92­  (.42)  44­ 
Class R                           
February 28, 2023**   $9.67­  .08­  .17­  .25­  (.06)  (.92)  (.98)  $8.94­  2.95*  $11­  .27*  .80 *  17* 
August 31, 2022­  13.12­  .13­  (1.87)  (1.74)  (.64)  (1.07)  (1.71)  9.67­  (15.41)  11­  .57­  1.13­  33­ 
August 31, 2021 ­  10.55­  .03­  2.66­  2.69­  (.08)  (.04)  (.12)  13.12­  25.59­  13­  .57­  .22­  44­ 
Class R3                           
February 28, 2023**   $9.69­  .09­  .16­  .25­  (.08)  (.92)  (1.00)  $8.94­  3.01*  $11­  .15*  .93*  17* 
August 31, 2022­  13.14­  .15­  (1.86)  (1.71)  (.67)  (1.07)  (1.74)  9.69­  (15.16)  11­  .32­  1.38­  33­ 
August 31, 2021 ­  10.55­  .06­  2.66­  2.72­  (.09)  (.04)  (.13)  13.14­  25.88­  13­  .32­  .47­  44­ 
Class R4                           
February 28, 2023**   $9.71­  .11­  .15­  .26­  (.12)  (.92)  (1.04)  $8.93­  3.05*  $68­  .03*  1.14*  17* 
August 31, 2022­  13.16­  .05­  (1.73)  (1.68)  (.70)  (1.07)  (1.77)  9.71­  (14.92)  79­  .07­  .47­  33­ 
August 31, 2021 ­  10.55­  .09­  2.65­  2.74­  (.09)  (.04)  (.13)  13.16­  26.17­  13­  .07­  .72­  44­ 
Class R5                           
February 28, 2023**   $9.72­  .11­  .15­  .26­  (.12)  (.92)  (1.04)  $8.94­  3.12*  $11­  (.05)*  1.13*  17* 
August 31, 2022­  13.17­  .20­  (1.86)  (1.66)  (.72)  (1.07)  (1.79)  9.72­  (14.77)  11­  (.08)  1.77­  33­ 
August 31, 2021 ­  10.55­  .10­  2.66­  2.76­  (.10)  (.04)  (.14)  13.17­  26.32­  13­  (.08)  .87­  44­ 
Class R6                           
February 28, 2023**   $9.72­  .11­  .16­  .27­  (.13)  (.92)  (1.05)  $8.94­  3.24*  $8,756­  (.10)*  1.18*  17* 
August 31, 2022­  13.18­  .21­  (1.86)  (1.65)  (.74)  (1.07)  (1.81)  9.72­  (14.76)  7,846­  (.18)  1.91­  33­ 
August 31, 2021  10.55­  .11­  2.66­  2.77­  (.10)  (.04)  (.14)  13.18­  26.46­  7,504­  (.18)  .95­  44­ 
August 31, 2020 ­  10.00­  .01­  .54­  .55­  —­  —­  —­  10.55­  5.50*  4,295­  (.11)*  .11*  14* 
Class Y­                           
February 28, 2023**  $9.71­  (.04)  .31­  .27­  (.12)  (.92)  (1.04)  $8.94­  3.23*  $60­  (.05)*  (.41)*  17* 
August 31, 2022­  13.17­  .20­  (1.87)  (1.67)  (.72)  (1.07)  (1.79)  9.71­  (14.85)  11­  (.08)  1.77­  33­ 
August 31, 2021 ­  10.55­  .10­  2.66­  2.76­  (.10)  (.04)  (.14)  13.17­  26.32­  13­  (.08)  .86­  44­ 

 

See page 72 for notes to financial highlights.

The accompanying notes are an integral part of these financial statements.

60 Retirement Advantage Funds  Retirement Advantage Funds 61 

 


 

Financial highlights
(For a common share outstanding throughout the period)

2040 Fund

  INVESTMENT OPERATIONS      LESS DISTRIBUTIONS        RATIOS AND SUPPLEMENTAL DATA   
                        Ratio of net   
                      Ratio  investment   
  Net asset    Net realized                of expenses  income (loss)   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  to average  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  net assets  turnover 
Period ended­  of period­  income (loss)a,b  on investments­  operations­  income­  on investments­  distributions  of period­  value (%)c  (in thousands)  (%)d,e  (%)b,e  (%) 
Class A                           
February 28, 2023**   $9.66­  .08­  .14­  .22­  (.10)  (.97)  (1.07)  $8.81­  2.74*  $225­  .09*  .88*  21* 
August 31, 2022­  12.91­  .09­  (1.71)  (1.62)  (.67)  (.96)  (1.63)  9.66­  (14.47)  171­  .19­  .83­  47­ 
August 31, 2021 ­  10.55­  .08­  2.47­  2.55­  (.10)  (.09)  (.19)  12.91­  24.45­  70­  .18­  .65­  45­ 
Class C                           
February 28, 2023**   $9.62­  .05­  .14­  .19­  (.03)  (.97)  (1.00)  $8.81­  2.34*  $22­  .46*  .52*  21* 
August 31, 2022­  12.86­  .07­  (1.77)  (1.70)  (.58)  (.96)  (1.54)  9.62­  (15.12)  15­  .94­  .60­  47­ 
August 31, 2021 ­  10.55­  (.02)  2.48­  2.46­  (.06)  (.09)  (.15)  12.86­  23.60­  14­  .93­  (.15)  45­ 
Class R                           
February 28, 2023**   $9.64­  .07­  .14­  .21­  (.06)  (.97)  (1.03)  $8.82­  2.55*  $11­  .29*  .76*  21* 
August 31, 2022­  12.89­  .12­  (1.79)  (1.67)  (.62)  (.96)  (1.58)  9.64­  (14.87)  11­  .59­  1.10­  47­ 
August 31, 2021 ­  10.55­  .03­  2.48­  2.51­  (.08)  (.09)  (.17)  12.89­  24.03­  12­  .58­  .26­  45­ 
Class R3                           
February 28, 2023**   $9.66­  .08­  .13­  .21­  (.08)  (.97)  (1.05)  $8.82­  2.60*  $11­  .16*  .88*  21* 
August 31, 2022­  12.90­  .15­  (1.78)  (1.63)  (.65)  (.96)  (1.61)  9.66­  (14.56)  11­  .34­  1.35­  47­ 
August 31, 2021 ­  10.55­  .06­  2.47­  2.53­  (.09)  (.09)  (.18)  12.90­  24.22­  12­  .33­  .51­  45­ 
Class R4                           
February 28, 2023**   $9.67­  .09­  .13­  .22­  (.11)  (.97)  (1.08)  $8.81­  2.74*  $45­  .04*  1.01*  21* 
August 31, 2022­  12.93­  .09­  (1.71)  (1.62)  (.68)  (.96)  (1.64)  9.67­  (14.46)  41­  .09­  .91­  47­ 
August 31, 2021 ­  10.55­  .09­  2.47­  2.56­  (.09)  (.09)  (.18)  12.93­  24.60­  12­  .08­  .75­  45­ 
Class R5                           
February 28, 2023**   $9.68­  .10­  .13­  .23­  (.12)  (.97)  (1.09)  $8.82­  2.82*  $11­  (.04)*  1.08*  21* 
August 31, 2022­  12.94­  .19­  (1.79)  (1.60)  (.70)  (.96)  (1.66)  9.68­  (14.32)  11­  (.06)  1.75­  47­ 
August 31, 2021 ­  10.55­  .11­  2.47­  2.58­  (.10)  (.09)  (.19)  12.94­  24.76­  12­  (.07)  .90­  45­ 
Class R6                           
February 28, 2023**   $9.69­  .10­  .14­  .24­  (.13)  (.97)  (1.10)  $8.83­  2.94*  $8,400­  (.09)*  1.12*  21* 
August 31, 2022­  12.95­  .21­  (1.80)  (1.59)  (.71)  (.96)  (1.67)  9.69­  (14.21)  6,909­  (.16)  1.92­  47­ 
August 31, 2021  10.55­  .11­  2.48­  2.59­  (.10)  (.09)  (.19)  12.95­  24.89­  7,183­  (.17)  .98­  45­ 
August 31, 2020 ­  10.00­  .02­  .53­  .55­  —­  —­  —­  10.55­  5.50*  4,335­  (.11)*  .18*  32* 
Class Y­                           
February 28, 2023**  $9.68­  .10­  .13­  .23­  (.12)  (.97)  (1.09)  $8.82­  2.82*  $11­  (.04)*  1.08*  21* 
August 31, 2022­  12.94­  .19­  (1.79)  (1.60)  (.70)  (.96)  (1.66)  9.68­  (14.32)  11­  (.06)  1.75­  47­ 
August 31, 2021 ­  10.55­  .11­  2.47­  2.58­  (.10)  (.09)  (.19)  12.94­  24.76­  12­  (.07)  .90­  45­ 

 

See page 72 for notes to financial highlights.

The accompanying notes are an integral part of these financial statements.

62 Retirement Advantage Funds  Retirement Advantage Funds 63 

 


 

Financial highlights
(For a common share outstanding throughout the period)

2035 Fund

  INVESTMENT OPERATIONS      LESS DISTRIBUTIONS        RATIOS AND SUPPLEMENTAL DATA   
                        Ratio of net   
                      Ratio  investment   
  Net asset    Net realized                of expenses  income (loss)   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  to average  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  net assets  turnover 
Period ended­  of period­  income (loss)a,b   on investments­  operations­  income­  on investments­  distributions  of period­  value (%)c  (in thousands)  (%)d,e  (%)b,e  (%) 
Class A                           
February 28, 2023**   $9.54­  .08­  .09­  .17­  (.04)  (.69)  (.73)  $8.98­  2.05*  $997­  .11*  .85*  15* 
August 31, 2022**   12.64­  .12­  (1.61)  (1.49)  (.66)  (.95)  (1.61)  9.54­  (13.69)  720­  .23­  1.16­  51­ 
August 31, 2021 ­  10.56­  .05­  2.22­  2.27­  (.10)  (.09)  (.19)  12.64­  21.67­  449­  .22­  .45­  56­ 
Class C                           
February 28, 2023**   $9.51­  .04­  .09­  .13­  —­  (.69)  (.69)  $8.95­  1.63*  $13­  .48*  .47*  15* 
August 31, 2022**   12.58­  .03­  (1.60)  (1.57)  (.55)  (.95)  (1.50)  9.51­  (14.26)  26­  .98­  .32­  51­ 
August 31, 2021 ­  10.56­  .01­  2.17­  2.18­  (.07)  (.09)  (.16)  12.58­  20.77­  12­  .97­  .12­  56­ 
Class R                           
February 28, 2023**   $9.53­  .06­  .09­  .15­  —­  (.69)  (.69)  $8.99­  1.84*  $11­  .31*  .66*  15* 
August 31, 2022**   12.61­  .10­  (1.63)  (1.53)  (.60)  (.95)  (1.55)  9.53­  (14.00)  10­  .63­  .92­  51­ 
August 31, 2021 ­  10.56­  .05­  2.17­  2.22­  (.08)  (.09)  (.17)  12.61­  21.19­  12­  .62­  .47­  56­ 
Class R3                           
February 28, 2023**   $9.54­  .07­  .10­  .17­  (.02)  (.69)  (.71)  $9.00­  2.01*  $11­  .18*  .78*  15* 
August 31, 2022**   12.63­  .13­  (1.64)  (1.51)  (.63)  (.95)  (1.58)  9.54­  (13.84)  10­  .38­  1.17­  51­ 
August 31, 2021 ­  10.56­  .08­  2.17­  2.25­  (.09)  (.09)  (.18)  12.63­  21.48­  12­  .37­  .72­  56­ 
Class R4                           
February 28, 2023**   $9.56­  .08­  .09­  .17­  (.05)  (.69)  (.74)  $8.99­  2.03*  $26­  .06*  .90*  15* 
August 31, 2022**   12.65­  .13­  (1.61)  (1.48)  (.66)  (.95)  (1.61)  9.56­  (13.59)  21­  .13­  1.23­  51­ 
August 31, 2021 ­  10.56­  .11­  2.17­  2.28­  (.10)  (.09)  (.19)  12.65­  21.77­  12­  .12­  .97­  56­ 
Class R5                           
February 28, 2023**   $9.57­  .09­  .09­  .18­  (.06)  (.69)  (.75)  $9.00­  2.12*  $11­  (.01)*  .98*  15* 
August 31, 2022**   12.66­  .17­  (1.64)  (1.47)  (.67)  (.95)  (1.62)  9.57­  (13.44)  11­  (.02)  1.57­  51­ 
August 31, 2021 ­  10.56­  .13­  2.16­  2.29­  (.10)  (.09)  (.19)  12.66­  21.92­  12­  (.03)  1.12­  56­ 
Class R6                           
February 28, 2023**   $9.58­  .09­  .09­  .18­  (.07)  (.69)  (.76)  $9.00­  2.12*  $14,536­  (.06)*  1.00 *  15* 
August 31, 2022**   12.67­  .18­  (1.63)  (1.45)  (.69)  (.95)  (1.64)  9.58­  (13.34)  12,199­  (.12)  1.68­  51­ 
August 31, 2021  10.56­  .14­  2.17­  2.31­  (.11)  (.09)  (.20)  12.67­  22.06­  12,118­  (.13)  1.18­  56­ 
August 31, 2020 ­  10.00­  .07­  .49­  .56­  —­  —­  —­  10.56­  5.60*  6,497­  (.08)*  .68*  23* 
Class Y­                           
February 28, 2023**  $9.57­  .09­  .09­  .18­  (.06)  (.69)  (.75)  $9.00­  2.12*  $18­  (.01)*  .98*  15* 
August 31, 2022**   12.66­  .17­  (1.63)  (1.46)  (.68)  (.95)  (1.63)  9.57­  (13.43)  18­  (.02)  1.57­  51­ 
August 31, 2021 ­  10.56­  .12­  2.17­  2.29­  (.10)  (.09)  (.19)  12.66­  21.92­  20­  (.03)  1.06­  56­ 

 

See page 72 for notes to financial highlights.

The accompanying notes are an integral part of these financial statements.

64 Retirement Advantage Funds  Retirement Advantage Funds 65 

 


 

Financial highlights
(For a common share outstanding throughout the period)

2030 Fund

  INVESTMENT OPERATIONS      LESS DISTRIBUTIONS        RATIOS AND SUPPLEMENTAL DATA   
                        Ratio of net   
                      Ratio  investment   
  Net asset    Net realized                of expenses  income (loss)   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  to average  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  net assets  turnover 
Period ended­  of period­  income (loss)a,b  on investments­  operations­  income­  on investments  distributions  of period­  value (%)c  (in thousands)  (%)d,e  (%)b,e  (%) 
Class A                           
February 28, 2023**   $9.53­  .07­  .02­  .09­  (.14)  (.52)  (.66)  $8.96­  1.06*  $584­  .12*  .81*  28* 
August 31, 2022­  12.29­  .11­  (1.52)  (1.41)  (.57)  (.78)  (1.35)  9.53­  (12.89)  513­  .28­  1.07­  52­ 
August 31, 2021 ­  10.55­  .10­  1.77­  1.87­  (.12)  (.01)  (.13)  12.29­  17.86­  195­  .28­  .83­  61­ 
Class C                           
February 28, 2023**   $9.45­  .04­  .01­  .05­  (.08)  (.52)  (.60)  $8.90­  .61*  $65­  .50*  .41*  28* 
August 31, 2022­  12.23­  .05­  (1.52)  (1.47)  (.53)  (.78)  (1.31)  9.45­  (13.50)  57­  1.03­  .49­  52­ 
August 31, 2021 ­  10.55­  .02­  1.76­  1.78­  (.09)  (.01)  (.10)  12.23­  16.99­  27­  1.03­  .16­  61­ 
Class R                           
February 28, 2023**   $9.53­  .06­  —­f  .06­  (.09)  (.52)  (.61)  $8.98­  .76*  $10­  .32*  .61*  28* 
August 31, 2022­  12.26­  .10­  (1.55)  (1.45)  (.50)  (.78)  (1.28)  9.53­  (13.20)  10­  .68­  .90­  52­ 
August 31, 2021 ­  10.55­  .08­  1.74­  1.82­  (.10)  (.01)  (.11)  12.26­  17.42­  12­  .68­  .71­  61­ 
Class R3                           
February 28, 2023**   $9.54­  .07­  .01­  .08­  (.11)  (.52)  (.63)  $8.99­  1.02*  $10­  .20*  .74*  28* 
August 31, 2022­  12.28­  .12­  (1.55)  (1.43)  (.53)  (.78)  (1.31)  9.54­  (13.03)  10­  .43­  1.15­  52­ 
August 31, 2021 ­  10.55­  .11­  1.74­  1.85­  (.11)  (.01)  (.12)  12.28­  17.70­  12­  .43­  .96­  61­ 
Class R4                           
February 28, 2023**   $9.56­  .08­  —­f  .08­  (.14)  (.52)  (.66)  $8.98­  1.03*  $95­  .08*  .86*  28* 
August 31, 2022­  12.30­  .11­  (1.51)  (1.40)  (.56)  (.78)  (1.34)  9.56­  (12.79)  101­  .18­  1.15­  52­ 
August 31, 2021 ­  10.55­  .14­  1.74­  1.88­  (.12)  (.01)  (.13)  12.30­  17.98­  12­  .18­  1.21­  61­ 
Class R5                           
February 28, 2023**   $9.57­  .09­  —­f  .09­  (.15)  (.52)  (.67)  $8.99­  1.12*  $10­  *  .94*  28* 
August 31, 2022­  12.31­  .17­  (1.55)  (1.38)  (.58)  (.78)  (1.36)  9.57­  (12.64)  10­  .03­  1.55­  52­ 
August 31, 2021 ­  10.55­  .15­  1.74­  1.89­  (.12)  (.01)  (.13)  12.31­  18.13­  12­  .03­  1.36­  61­ 
Class R6                           
February 28, 2023**   $9.57­  .09­  .01­  .10­  (.16)  (.52)  (.68)  $8.99­  1.23*  $12,871­  (.05)*  .97*  28* 
August 31, 2022­  12.31­  .16­  (1.53)  (1.37)  (.59)  (.78)  (1.37)  9.57­  (12.56)  11,594­  (.07)  1.49­  52­ 
August 31, 2021  10.55­  .16­  1.74­  1.90­  (.13)  (.01)  (.14)  12.31­  18.17­  11,404­  (.07)  1.38­  61­ 
August 31, 2020 ­  10.00­  .12­  .43­  .55­  —­  —­  —­  10.55­  5.50*  5,698­  (.05)*  1.21*  20* 
Class Y­                           
February 28, 2023**  $9.57­  .09­  —­f  .09­  (.15)  (.52)  (.67)  $8.99­  1.13*  $12­  *  .94*  28* 
August 31, 2022­  12.31­  .17­  (1.55)  (1.38)  (.58)  (.78)  (1.36)  9.57­  (12.64)  12­  .03­  1.54­  52­ 
August 31, 2021 ­  10.55­  .15­  1.74­  1.89­  (.12)  (.01)  (.13)  12.31­  18.13­  12­  .03­  1.35­  61­ 

 

See page 72 for notes to financial highlights.

The accompanying notes are an integral part of these financial statements.

66 Retirement Advantage Funds  Retirement Advantage Funds 67 

 


 

Financial highlights
(For a common share outstanding throughout the period)

2025 Fund

  INVESTMENT OPERATIONS      LESS DISTRIBUTIONS        RATIOS AND SUPPLEMENTAL DATA   
                        Ratio of net   
                      Ratio  investment   
  Net asset    Net realized                of expenses  income (loss)   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  to average  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  net assets  turnover 
Period ended­  of period­  income (loss)a,b  on investments­  operations­  income­  on investments­   distributions  of period­  value (%)c  (in thousands)  (%)d,e  (%)b,e  (%) 
Class A                           
February 28, 2023**   $9.38­  .06­  (.03)  .03­  (.04)  (.14)  (.18)  $9.23­  .30*  $1,168­  .14*  .61*  26* 
August 31, 2022­  11.46­  .09­  (1.42)  (1.33)  (.35)  (.40)  (.75)  9.38­  (12.36)  1,639­  .33­  .90­  49­ 
August 31, 2021 ­  10.55­  .14­  1.00­  1.14­  (.17)  (.06)  (.23)  11.46­  11.04­  1,433­  .32­  1.31­  56­ 
Class C                           
February 28, 2023**   $9.34­  .02­  (.04)  (.02)  —­  (.14)  (.14)  $9.18­  (.20)*  $68­  .52*  .27*  26* 
August 31, 2022­  11.42­  .03­  (1.43)  (1.40)  (.28)  (.40)  (.68)  9.34­  (12.98)  66­  1.08­  .31­  49­ 
August 31, 2021 ­  10.55­  .04­  1.03­  1.07­  (.14)  (.06)  (.20)  11.42­  10.28­  60­  1.07­  .34­  56­ 
Class R                           
February 28, 2023**   $9.38­  .04­  (.04)  —­f  (.01)  (.14)  (.15)  $9.23­  .01*  $10­  .34*  .44*  26* 
August 31, 2022­  11.44­  .07­  (1.44)  (1.37)  (.29)  (.40)  (.69)  9.38­  (12.68)  10­  .73­  .66­  49­ 
August 31, 2021 ­  10.55­  .10­  1.00­  1.10­  (.15)  (.06)  (.21)  11.44­  10.61­  11­  .72­  .92­  56­ 
Class R3                           
February 28, 2023**   $9.40­  .05­  (.04)  .01­  (.03)  (.14)  (.17)  $9.24­  .15*  $10­  .22*  .57*  26* 
August 31, 2022­  11.46­  .09­  (1.43)  (1.34)  (.32)  (.40)  (.72)  9.40­  (12.45)  10­  .48­  .91­  49­ 
August 31, 2021 ­  10.55­  .13­  1.00­  1.13­  (.16)  (.06)  (.22)  11.46­  10.88­  11­  .47­  1.17­  56­ 
Class R4                           
February 28, 2023**   $9.41­  .06­  (.04)  .02­  (.06)  (.14)  (.20)  $9.23­  .28*  $93­  .10*  .69*  26* 
August 31, 2022­  11.48­  .11­  (1.43)  (1.32)  (.35)  (.40)  (.75)  9.41­  (12.29)  105­  .23­  1.15­  49­ 
August 31, 2021 ­  10.55­  .15­  1.01­  1.16­  (.17)  (.06)  (.23)  11.48­  11.17­  11­  .22­  1.42­  56­ 
Class R5                           
February 28, 2023**   $9.42­  .07­  (.04)  .03­  (.07)  (.14)  (.21)  $9.24­  .36*  $10­  .02*  .76*  26* 
August 31, 2022­  11.49­  .14­  (1.44)  (1.30)  (.37)  (.40)  (.77)  9.42­  (12.14)  10­  .08­  1.31­  49­ 
August 31, 2021 ­  10.55­  .17­  1.00­  1.17­  (.17)  (.06)  (.23)  11.49­  11.32­  11­  .07­  1.57­  56­ 
Class R6                           
February 28, 2023**   $9.42­  .08­  (.04)  .04­  (.08)  (.14)  (.22)  $9.24­  .47*  $11,360­  (.03)*  .82*  26* 
August 31, 2022­  11.49­  .15­  (1.44)  (1.29)  (.38)  (.40)  (.78)  9.42­  (12.05)  10,784­  (.02)  1.45­  49­ 
August 31, 2021  10.55­  .18­  1.00­  1.18­  (.18)  (.06)  (.24)  11.49­  11.36­  10,325­  (.03)  1.63­  56­ 
August 31, 2020 ­  10.00­  .12­  .43­  .55­  —­  —­  —­  10.55­  5.50*  5,137­  (.02)*  1.19*  26* 
Class Y­                           
February 28, 2023**  $9.42­  .07­  (.04)  .03­  (.07)  (.14)  (.21)  $9.24­  .36*  $10­  .02*  .76*  26* 
August 31, 2022­  11.49­  .13­  (1.43)  (1.30)  (.37)  (.40)  (.77)  9.42­  (12.14)  10­  .08­  1.30­  49­ 
August 31, 2021 ­  10.55­  .17­  1.00­  1.17­  (.17)  (.06)  (.23)  11.49­  11.32­  12­  .07­  1.56­  56­ 

 

See page 72 for notes to financial highlights.

The accompanying notes are an integral part of these financial statements.

68 Retirement Advantage Funds  Retirement Advantage Funds 69 

 


 

Financial highlights
(For a common share outstanding throughout the period)

Maturity Fund

  INVESTMENT OPERATIONS      LESS DISTRIBUTIONS        RATIOS AND SUPPLEMENTAL DATA   
                        Ratio of net   
                      Ratio  investment   
  Net asset    Net realized                of expenses  income (loss)   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  to average  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  net assets  turnover 
Period ended­  of period­  income (loss)a,b   on investments­  operations­  income­  on investments­   distributions  of period­  value (%)c  (in thousands)  (%)d,e  (%)b,e  (%) 
Class A                           
February 28, 2023**   $9.50­  .01­  .05­  .06­  (.02)  (.09)  (.11)  $9.45­  .62*  $584­  .20*  .10*  31* 
August 31, 2022­  11.26­  .03­  (1.31)  (1.28)  (.32)  (.16)  (.48)  9.50­  (11.91)  441­  .57­  .25­  46­ 
August 31, 2021 ­  10.49­  (.01)  .95­  .94­  (.16)  (.01)  (.17)  11.26­  9.06­  565­  .60­  (.06)  41­ 
Class C                           
February 28, 2023**   $9.37­  (.03)  .06­  .03­  (.01)  (.09)  (.10)  $9.30­  .31*  $9­  .58*  (.28)*  31* 
August 31, 2022­  11.19­  (.06)  (1.29)  (1.35)  (.31)  (.16)  (.47)  9.37­  (12.59)    1.32­  (.56)  46­ 
August 31, 2021 ­  10.49­  .05­  .81­  .86­  (.15)  (.01)  (.16)  11.19­  8.25­  11­  1.35­  .49­  41­ 
Class R                           
February 28, 2023**   $9.43­  (.01)  .05­  .04­  (.01)  (.09)  (.10)  $9.37­  .44*  $10­  .40*  (.10)*  31* 
August 31, 2022­  11.22­  (.02)  (1.29)  (1.31)  (.32)  (.16)  (.48)  9.43­  (12.26)  10­  .97­  (.21)  46­ 
August 31, 2021 ­  10.49­  .09­  .81­  .90­  (.16)  (.01)  (.17)  11.22­  8.60­  11­  1.00­  .84­  41­ 
Class R3                           
February 28, 2023**   $9.47­  —­f  .06­  .06­  (.02)  (.09)  (.11)  $9.42­  .58*  $10­  .28*  .02*  31* 
August 31, 2022­  11.24­  —­f  (1.29)  (1.29)  (.32)  (.16)  (.48)  9.47­  (12.03)  10­  .72­  .04­  46­ 
August 31, 2021 ­  10.49­  .12­  .80­  .92­  (.16)  (.01)  (.17)  11.24­  8.84­  11­  .75­  1.09­  41­ 
Class R4                           
February 28, 2023**   $9.51­  .01­  .05­  .06­  (.02)  (.09)  (.11)  $9.46­  .66*  $26­  .15*  .15*  31* 
August 31, 2022­  11.26­  .02­  (1.29)  (1.27)  (.32)  (.16)  (.48)  9.51­  (11.81)  22­  .47­  .18­  46­ 
August 31, 2021 ­  10.49­  .14­  .80­  .94­  (.16)  (.01)  (.17)  11.26­  9.08­  11­  .50­  1.34­  41­ 
Class R5                           
February 28, 2023**   $9.53­  .02­  .06  .08  (.03)  (.09)  (.12)  $9.49­  .81*  $10­  .08*  .22*  31* 
August 31, 2022­  11.28­  .05­  (1.32)  (1.27)  (.32)  (.16)  (.48)  9.53­  (11.77)  10­  .32­  .44­  46­ 
August 31, 2021 ­  10.49­  .16­  .81­  .97­  (.17)  (.01)  (.18)  11.28­  9.29­  11­  .35­  1.49­  41­ 
Class R6                           
February 28, 2023**   $9.56­  .03­  .04  .07  (.03)  (.09)  (.12)  $9.51­  .74*  $12,274­  .03*  .27*  31* 
August 31, 2022­  11.29­  .06­  (1.31)  (1.25)  (.32)  (.16)  (.48)  9.56­  (11.57)  12,192­  .22­  .58­  46­ 
August 31, 2021  10.49­  .20­  .78­  .98­  (.17)  (.01)  (.18)  11.29­  9.42­  11,041­  .25­  1.86­  41­ 
August 31, 2020 ­  10.00­  (.01)  .50­  .49­  —­  —­  —­  10.49­  4.90*  2,152­  .17*  (.07)*  6* 
Class Y­                           
February 28, 2023**  $9.53­  .02­  .06  .08  (.03)  (.09)  (.12)  $9.49­  .81*  $23­  .08*  .22*  31* 
August 31, 2022­  11.28­  .05­  (1.32)  (1.27)  (.32)  (.16)  (.48)  9.53­  (11.77)  22­  .32­  .43­  46­ 
August 31, 2021 ­  10.49­  .16­  .81­  .97­  (.17)  (.01)  (.18)  11.28­  9.29­  11­  .35­  1.49­  41­ 

 

See page 72 for notes to financial highlights.

The accompanying notes are an integral part of these financial statements.

70 Retirement Advantage Funds  Retirement Advantage Funds 71 

 


 

Financial highlights cont.

* Not annualized.

** Unaudited.

For the period December 30, 2020 (commencement of operations) to August 31, 2021.

For the period September 1, 2020 (commencement of operations) to August 31, 2021.

For the period December 31, 2019 (commencement of operations) to August 31, 2020.

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 The ratio of net investment income and net investment income per share amounts shown may not correspond with the expected class specific difference due to the timing of income received from the underlying Putnam Funds and the timing of subscriptions/redemption to the class.

c Total return does not reflect the effect of sales charges.

d Expense ratios do not include expenses of the underlying funds.

e Reflects an involuntary contractual expense limitation in effect during the period. As a result of such limitation the expenses for the following periods reflect a reduction of the following based on each fund’s average net assets (Note 2):

  2/28/23  8/31/22  8/31/21  8/31/20 
2065 Fund         
Classes A, C, R, R3, R4, R5, R6 and Y  –20.11%  70.37%  99.33%  N/A 
2060 Fund         
Classes A, C, R, R3, R4, R5, and Y  –2.88  7.76  12.96  N/A 
Class R6  –2.88  7.76  12.96  29.98% 
2055 Fund         
Classes A, C, R, R3, R4, R5, and Y  –1.51  3.54  5.93  N/A 
Class R6  –1.51  3.54  5.93  8.82 
2050 Fund         
Classes A, C, R, R3, R4, R5, and Y  –1.22  2.67  4.00  N/A 
Class R6  –1.22  2.67  4.00  6.16 
2045 Fund         
Classes A, C, R, R3, R4, R5, and Y  –0.87  1.83  2.62  N/A 
Class R6  –0.87  1.83  2.62  4.00 
2040 Fund         
Classes A, C, R, R3, R4, R5, and Y  –0.90  1.88  2.73  N/A 
Class R6  –0.90  1.88  2.73  3.98 
2035 Fund         
Classes A, C, R, R3, R4, R5, and Y  –0.68  1.40  2.08  N/A 
Class R6  –0.68  1.40  2.08  3.25 
2030 Fund         
Classes A, C, R, R3, R4, R5, and Y  –0.68  1.36  2.10  N/A 
Class R6  –0.68  1.36  2.10  3.38 
2025 Fund         
Classes A, C, R, R3, R4, R5, and Y  –0.68  1.30  2.10  N/A 
Class R6  –0.68  1.30  2.10  3.46 
Maturity Fund         
Classes A, C, R, R3, R4, R5, and Y  –0.58  1.04  1.86  N/A 
Class R6  –0.58  1.04  1.86  16.03 

 

f Amount represents less than $0.01 per share.

The accompanying notes are an integral part of these financial statements.

72 Retirement Advantage Funds 

 


 

Notes to financial statements 2/28/23 (Unaudited)

Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission, references to “Putnam Management” represent Putnam Investment Management, LLC, the funds’ manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter. Unless otherwise noted, the “reporting period” represents the period from September 1, 2022 through February 28, 2023.

Each of the Putnam Retirement Advantage Funds: Putnam Retirement Advantage 2065 Fund, Putnam Retirement Advantage 2060 Fund, Putnam Retirement Advantage 2055 Fund, Putnam Retirement Advantage 2050 Fund, Putnam Retirement Advantage 2045 Fund, Putnam Retirement Advantage 2040 Fund, Putnam Retirement Advantage 2035 Fund, Putnam Retirement Advantage 2030 Fund, Putnam Retirement Advantage 2025 Fund, and Putnam Retirement Advantage Maturity Fund (“Maturity Fund”) (collectively, the “Retirement Advantage Funds”) is a diversified series of Putnam Target Date Funds (the “Trust”), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end investment company. Each fund, except the Putnam Retirement Advantage 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. Putnam Retirement Advantage Maturity Fund seeks as high a rate of current income as 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 2025. The tenth fund is named Putnam Retirement Advantage Maturity Fund. Amounts invested in each target date fund are allocated among underlying Putnam funds based on the fund’s target date. The target percentages for each target date fund gradually change over time based on the number of years that remain until the target date of the fund so that a fund’s asset allocation will become more conservative as the fund approaches its target date. The asset allocation of each target date fund is designed to provide a diversified investment that Putnam Management believes is neither overly aggressive nor overly conservative for a typical investor planning to retire (or otherwise begin using the invested funds) in the target year. When a fund’s target percentages correspond to those of Putnam Advantage Maturity Fund, which currently is expected to occur during the latter part of the target year, the fund will be merged into Putnam Retirement Advantage Maturity Fund.

These financial statements report on each fund, which may invest in certain Putnam Funds which are managed by Putnam Management. As of February 28, 2023, each fund may invest in the following diversified funds: Putnam Dynamic Asset Allocation Balanced Fund, Putnam Dynamic Asset Allocation Conservative Fund, Putnam Dynamic Asset Allocation Equity Fund, Putnam Dynamic Asset Allocation Growth Fund, Putnam Multi-Asset Income Fund and Putnam Short Term Investment Fund (the underlying Putnam Funds). 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 the following share classes. The expenses for each class of shares may differ based on the distribution and investor servicing fees of each class, which are identified in Note 2.

Share class  Sales charge  Contingent deferred sales charge  Conversion feature 
    1.00% on certain redemptions of shares   
Class A  Up to 5.75%/4.00%  bought with no initial sales charge  None 
      Converts to class A shares 
Class C  None  1.00% eliminated after one year  after 8 years 
Class R*  None  None  None 
Class R3*  None  None  None 
Class R4*  None  None  None 
Class R5*  None  None  None 
Class R6*  None  None  None 
Class Y*  None  None  None 

 

* Not available to all investors.

Sales charge 5.75% for all funds except Putnam Retirement Advantage Maturity Fund which is 4.00%.

Retirement Advantage Funds 73 

 


 

In the normal course of business, each fund enters into contracts that may include agreements to indemnify another party under given circumstances. Each fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against each fund. However, each fund’s management team expects the risk of material loss to be remote.

Each fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent and custodian, who each provide services to each fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of each fund.

Under each fund’s Amended and Restated Agreement and Declaration of Trust, any claims asserted against or on behalf of the Putnam Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.

Note 1: Significant accounting policies

The following is a summary of significant accounting policies consistently followed by each fund in the preparation of its 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. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.

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.

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, which are classified as Level 1 or Level 2 securities under Accounting Standards Codification 820 Fair Value Measurements and Disclosures (ASC 820). The NAVs of the underlying Putnam funds are determined based on the policies contained in each underlying Putnam fund’s financial statements. 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 scheduled close of regular trading on the New York Stock Exchange each day the exchange is open.

Security transactions and related investment income Security transactions, which consist of shares of the underlying Putnam Funds, are recorded on the trade date (date the order to buy or sell is executed). Gains or losses from the sale of the underlying Putnam Funds are determined on the identified cost basis. Income and capital gain distributions from the underlying Putnam Funds are recorded on the ex-dividend date.

Interfund lending Each fund, along with other Putnam funds, may participate in an interfund lending program pursuant to an exemptive order issued by the SEC. This program allows the funds to borrow from or lend to other Putnam funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. Interest earned or paid on the interfund lending transaction will be based on the average of certain current market rates. During the reporting period, the funds did not utilize the program.

Federal taxes It is the policy of each fund to distribute all of its taxable income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (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.

Each fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The funds did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. 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. Each of the funds’ federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

74 Retirement Advantage Funds 

 


 

Under the Regulated Investment Company Modernization Act of 2010, the funds will be permitted to carry forward capital losses incurred for an unlimited period and the carry forwards will retain their character as either short-term or long-term capital losses. At August 31, 2022, the fund had the following capital loss carryovers available, to the extent allowed by the Code, to offset future net capital gain, if any:

Loss carryover 
  Short-term  Long-term  Total 
2050 Fund  $135  $—  $135 
2045 Fund  2,588  6,710  9,298 
2040 Fund  573  739  1,312 
2035 Fund  11,408    11,408 

 

Pursuant to federal income tax regulations applicable to regulated investment companies, the Putnam Retirement Advantage 2065 Fund has elected to defer $130 to its fiscal year ending August 31, 2023 late year ordinary losses ((i) ordinary losses recognized between January 1, 2022 and August 31, 2022, and (ii) specified ordinary and currency losses recognized between November 1 and August 31, 2022).

Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The aggregate identified cost on a tax basis, resulting in gross unrealized appreciation and depreciation, respectively, and net unrealized for each fund are as follows:

      Net unrealized  Cost for federal 
  Unrealized  Unrealized  appreciation/  income tax 
  appreciation  (depreciation)  (depreciation)  purposes 
2065 Fund  $243  $(47,595)  $(47,352)  $312,149 
2060 Fund  4,343  (357,273)  (352,930)  2,061,729 
2055 Fund  5,064  (719,172)  (714,108)  4,392,777 
2050 Fund  29,523  (885,331)  (855,808)  5,966,536 
2045 Fund  42,923  (1,290,925)  (1,248,002)  10,633,104 
2040 Fund  63,140  (1,130,072)  (1,066,932)  9,800,880 
2035 Fund  60,054  (2,330,234)  (2,270,180)  17,888,599 
2030 Fund  26,418  (2,188,548)  (2,162,130)  15,818,499 
2025 Fund  25,084  (1,860,709)  (1,835,625)  14,564,745 
Maturity Fund  12,142  (1,450,713)  (1,438,571)  14,385,660 

 

Distributions to shareholders Each fund normally distributes any net investment income and any net realized capital gains annually, except Maturity Fund, which normally distributes any net investment income monthly and any net realized capital gains annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the funds’ fiscal year. Reclassifications are made to the funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.

Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund.

Note 2: Management fee, administrative services and other transactions

Under the funds’ management contract (the “Management Contract”), each fund pays a management fee to Putnam Management. The fee for each fund is calculated and paid monthly based on an annual rate and the fund’s average net assets for the month. For Putnam Retirement Advantage Maturity Fund, the annual rate is 0.36%. For each other fund, the annual rate is based on the number of years remaining (determined as of September 30th of each year and applicable through September 30th of the following year) until the date

Retirement Advantage Funds 75 

 


 

referenced in the fund’s name (the “Target Date”). “Average net assets” means the average of all of the determinations of a fund’s net asset value at the close of business on each business day during each month. The annual rate for each fund for the reporting period were:

2065 Fund  0.45% 
2060 Fund  0.44% 
2055 Fund  0.43% 
2050 Fund  0.42% 
2045 Fund  0.41% 
2040 Fund  0.40% 
2035 Fund  0.39% 
2030 Fund  0.38% 
2025 Fund  0.37% 

 

Putnam Management has contractually agreed to waive fees and/or reimburse expenses of each fund through at least December 30, 2025 in an amount equal to the fund’s acquired fund fees and expenses. During the reporting period, expenses for each fund were reduced by the following amounts as a result of this waiver:

 

  Fees waived and reimbursed 
    by the Manager 
2065 Fund    $584 
2060 Fund    4,517 
2055 Fund    10,566 
2050 Fund    14,916 
2045 Fund    27,819 
2040 Fund    23,904 
2035 Fund    39,228 
2030 Fund    33,996 
2025 Fund    31,543 
Maturity Fund    24,359 

 

Putnam Management has also contractually agreed to waive fees and/or reimburse expenses of each class of shares of each fund through at least December 30, 2025 in an amount sufficient to result in total annual fund operating expenses for the fund’s class A, C, R, R3, R4, R5, R6 and Y shares (exclusive of payments under the fund’s distribution plans, brokerage, interest, taxes, investment-related expenses, acquired fund fees and extraordinary expenses) that equal 0.55%, 0.55%, 0.70%, 0.70%, 0.70%, 0.55%, 0.45%, and 0.55%, respectively, of the fund’s average net assets. During the reporting period, expenses for each fund were reduced by the following amounts as a result of this waiver:

 

  Fees waived and reimbursed 
    by the Manager 
2065 Fund    $37,268 
2060 Fund    37,146 
2055 Fund    39,998 
2050 Fund    41,721 
2045 Fund    47,379 
2040 Fund    45,674 
2035 Fund    53,628 
2030 Fund    51,122 
2025 Fund    53,325 
Maturity Fund    49,234 

 

76 Retirement Advantage Funds 

 


 

Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of each fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the funds during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.25% of the average net assets of the portion of each fund managed by PIL.

Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to each fund at the following class specific rates. During the period, the expenses for each class of shares related to investor servicing fees for each fund were as follows:

  Class A  Class C  Class R  Class R3  Class R4  Class R5  Class R6  Class Y  Total 
Maximum %  0.125%  0.125%  0.275%  0.275%  0.275%  0.125%  0.025%  0.125%   
2065 Fund  $30  $8  $14  $14  $51  $6  $5  $14  $142 
2060 Fund  86  7  15  15  28  7  154  9  321 
2055 Fund  111  10  15  15  40  7  386  7  591 
2050 Fund  121  7  15  15  43  7  548  7  763 
2045 Fund  256  13  15  15  108  7  1,016  10  1,440 
2040 Fund  127  10  14  15  58  7  933  7  1,171 
2035 Fund  468  11  14  14  32  7  1,604  11  2,161 
2030 Fund  327  33  14  14  132  6  1,477  7  2,010 
2025 Fund  778  42  13  13  138  6  1,384  6  2,380 
Maturity Fund  305  6  13  13  33  6  1,511  14  1,901 

 

Each fund has adopted distribution plans (the Plans) with respect to the following share classes pursuant to Rule 12b–1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Retail Management Limited Partnership, an indirect wholly-owned subsidiary of Putnam Investments, LLC, for services provided and expenses incurred in distributing shares of the funds. The Plans provide for payments by each fund to Putnam Retail Management Limited Partnership at an annual rate of up to the following amounts (“Maximum %”) of the average net assets attributable to each class. The Trustees have approved payment by the funds at the following annual rates (“Approved %”) of the average net assets attributable to each class. During the reporting period, the class-specific expenses related to distribution fees for each fund were as follows:

 

  Class A  Class C  Class R  Class R3  Total 
Maximum %  0.35%  1.00%  1.00%  0.35%   
Approved %  0.25%  1.00%  0.50%  0.25%   
2065 Fund  $60  $65  $24  $12  $161 
2060 Fund  170  54  27  13  264 
2055 Fund  220  76  27  13  336 
2050 Fund  240  53  27  13  333 
2045 Fund  507  107  26  13  653 
2040 Fund  253  80  26  13  372 
2035 Fund  926  90  26  13  1,055 
2030 Fund  648  263  25  13  949 
2025 Fund  1,541  330  24  12  1,907 
Maturity Fund  603  47  23  12  685 

 

Retirement Advantage Funds 77 

 


 

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions from the sale of class A shares and received contingent deferred sales charges from redemptions of class C shares in the following amounts:

  Class A Net commissions  Class C CDSC 
2065 Fund  $138  $— 
2060 Fund  770   
2055 Fund  91  52 
2050 Fund  955   
2045 Fund  914   
2040 Fund  1,190   
2035 Fund  491   
2030 Fund  327   
2025 Fund  26   

 

A deferred sales charge of up to 1.00% is assessed on certain redemptions of class A shares. For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received the following amount on class A redemptions:

 

  Class A CDSC 
2065 Fund    $7 
2060 Fund    2 
2050 Fund    11 
2045 Fund    18 
2040 Fund    3 

 

Note 3: Purchases and sales of securities

During the reporting period, cost of purchases and proceeds from sales of underlying Putnam Funds were as follows:

  Cost of purchases  Proceeds from sales 
2065 Fund  $124,837  $13,682 
2060 Fund  687,085  67,097 
2055 Fund  996,175  245,859 
2050 Fund  1,099,790  275,740 
2045 Fund  1,752,280  786,977 
2040 Fund  2,428,956  894,562 
2035 Fund  4,043,082  1,138,987 
2030 Fund  3,725,918  1,924,188 
2025 Fund  2,279,222  1,755,333 
Maturity Fund  2,410,303  2,102,256 

 

78 Retirement Advantage Funds 

 


 

Note 4: Capital shares

At the close of the reporting period, there were an unlimited number of shares of beneficial interest authorized. Transactions, including, if applicable, direct exchanges pursuant to share conversions, in capital shares were as follows:

2065 Fund

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class A  Shares  Amount  Shares  Amount 
Shares sold  7,948  $73,940  2,545  $27,971 
Shares issued in connection with         
reinvestment of distributions  269  2,384  175  1,998 
  8,217  76,324  2,720  29,969 
Shares repurchased  (124)  (1,170)  (23)  (250) 
Net increase  8,093  $75,154  2,697  $29,719 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class C  Shares  Amount  Shares  Amount 
Shares sold  264  $2,450  208  $2,080 
Shares issued in connection with         
reinvestment of distributions  71  623  50  571 
  335  3,073  258  2,651 
Shares repurchased  (4)  (35)  (3)  (35) 
Net increase  331  $3,038  255  $2,616 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  52  459  53  610 
  52  459  53  610 
Shares repurchased         
Net increase  52  $459  53  $610 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R3  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  52  461  56  638 
  52  461  56  638 
Shares repurchased         
Net increase  52  $461  56  $638 

 

Retirement Advantage Funds 79 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R4  Shares  Amount  Shares  Amount 
Shares sold  939  $8,743  2,491  $25,615 
Shares issued in connection with         
reinvestment of distributions  220  1,950  58  667 
  1,159  10,693  2,549  26,282 
Shares repurchased  (68)  (611)  (7)  (69) 
Net increase  1,091  $10,082  2,542  $26,213 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R5  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  57  504  60  684 
  57  504  60  684 
Shares repurchased         
Net increase  57  $504  60  $684 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  1,094  $10,296  3,840  $42,440 
Shares issued in connection with         
reinvestment of distributions  247  2,197  61  695 
  1,341  12,493  3,901  43,135 
Shares repurchased  (1,155)  (10,570)  (1,129)  (12,227) 
Net increase  186  $1,923  2,772  $30,908 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class Y  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  122  1,085  132  1,510 
  122  1,085  132  1,510 
Shares repurchased  (50)  (474)  (37)  (436) 
Net increase  72  $611  95  $1,074 

 

2060 Fund

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class A  Shares  Amount  Shares  Amount 
Shares sold  5,169  $47,743  16,325  $177,250 
Shares issued in connection with         
reinvestment of distributions  966  8,491  1,502  17,208 
  6,135  56,234  17,827  194,458 
Shares repurchased  (338)  (3,248)  (10,567)  (111,031) 
Net increase  5,797  $52,986  7,260  $83,427 

 

80 Retirement Advantage Funds 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class C  Shares  Amount  Shares  Amount 
Shares sold  13  $120  17  $175 
Shares issued in connection with         
reinvestment of distributions  74  644  192  2,197 
  87  764  209  2,372 
Shares repurchased         
Net increase  87  $764  209  $2,372 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  72  632  196  2,239 
  72  632  196  2,239 
Shares repurchased         
Net increase  72  $632  196  $2,239 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R3  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  73  641  198  2,271 
  73  641  198  2,271 
Shares repurchased         
Net increase  73  $641  198  $2,271 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R4  Shares  Amount  Shares  Amount 
Shares sold  241  $2,237  938  $9,771 
Shares issued in connection with         
reinvestment of distributions  149  1,309  201  2,304 
  390  3,546  1,139  12,075 
Shares repurchased  (27)  (237)  (3)  (29) 
Net increase  363  $3,309  1,136  $12,046 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R5  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  78  689  203  2,323 
  78  689  203  2,323 
Shares repurchased         
Net increase  78  $689  203  $2,323 

 

Retirement Advantage Funds 81 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  41,384  $385,314  52,284  $578,703 
Shares issued in connection with         
reinvestment of distributions  9,503  83,625  14,515  166,339 
  50,887  468,939  66,799  745,042 
Shares repurchased  (3,514)  (32,556)  (11,092)  (120,066) 
Net increase  47,373  $436,383  55,707  $624,976 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  71  $650  16  $210 
Shares issued in connection with         
reinvestment of distributions  104  917  259  2,976 
  175  1,567  275  3,186 
Shares repurchased  (3)  (26)  (2)  (25) 
Net increase  172  $1,541  273  $3,161 

 

2055 Fund

  SIX MONTHS ENDED 2/23/23  YEAR ENDED 8/31/22 
Class A  Shares  Amount  Shares  Amount 
Shares sold  1,535  $14,391  14,952  $149,432 
Shares issued in connection with         
reinvestment of distributions  1,755  15,335  709  8,257 
  3,290  29,726  15,661  157,689 
Shares repurchased  (41)  (380)  (704)  (7,475) 
Net increase  3,249  $29,346  14,957  $150,214 
 
  SIX MONTHS ENDED 2/23/23  YEAR ENDED 8/31/22 
Class C  Shares  Amount  Shares  Amount 
Shares sold  27  $250  798  $8,799 
Shares issued in connection with         
reinvestment of distributions  121  1,057  155  1,807 
  148  1,307  953  10,606 
Shares repurchased  (545)  (5,278)  (6)  (60) 
Net increase (decrease)  (397)  $(3,971)  947  $10,546 
 
  SIX MONTHS ENDED 2/23/23  YEAR ENDED 8/31/22 
Class R  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  98  859  159  1,852 
  98  859  159  1,852 
Shares repurchased         
Net increase  98  $859  159  $1,852 

 

82 Retirement Advantage Funds 

 


 

  SIX MONTHS ENDED 2/23/23  YEAR ENDED 8/31/22 
Class R3  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  102  890  162  1,882 
  102  890  162  1,882 
Shares repurchased         
Net increase  102  $890  162  $1,882 
 
  SIX MONTHS ENDED 2/23/23  YEAR ENDED 8/31/22 
Class R4  Shares  Amount  Shares  Amount 
Shares sold  270  $2,535  4,366  $46,345 
Shares issued in connection with         
reinvestment of distributions  279  2,442  165  1,915 
  549  4,977  4,531  48,260 
Shares repurchased  (334)  (3,124)  (2,396)  (25,865) 
Net increase  215  $1,853  2,135  $22,395 
 
  SIX MONTHS ENDED 2/23/23  YEAR ENDED 8/31/22 
Class R5  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  107  939  166  1,935 
  107  939  166  1,935 
Shares repurchased         
Net increase  107  $939  166  $1,935 
 
  SIX MONTHS ENDED 2/23/23  YEAR ENDED 8/31/22 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  56,123  $531,380  145,284  $1,633,980 
Shares issued in connection with         
reinvestment of distributions  31,627  277,055  35,484  413,385 
  87,750  808,435  180,768  2,047,365 
Shares repurchased  (16,116)  (152,259)  (50,952)  (543,016) 
Net increase  71,634  $656,176  129,816  $1,504,349 
 
  SIX MONTHS ENDED 2/23/23  YEAR ENDED 8/31/22 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  26  $240  43  $480 
Shares issued in connection with         
reinvestment of distributions  114  1,001  170  1,986 
  140  1,241  213  2,466 
Shares repurchased  (3)  (25)  (2)  (25) 
Net increase  137  $1,216  211  $2,441 

 

Retirement Advantage Funds 83 

 


 

2050 Fund

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class A  Shares  Amount  Shares  Amount 
Shares sold  9,210  $82,579  14,964  $145,312 
Shares issued in connection with         
reinvestment of distributions  2,277  19,353  342  3,909 
  11,487  101,932  15,306  149,221 
Shares repurchased  (175)  (1,615)  (12)  (125) 
Net increase  11,312  $100,317  15,294  $149,096 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class C  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  115  972  158  1,808 
  115  972  158  1,808 
Shares repurchased         
Net increase  115  $972  158  $1,808 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  117  997  161  1,851 
  117  997  161  1,851 
Shares repurchased         
Net increase  117  $997  161  $1,851 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R3  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  120  1,028  165  1,883 
  120  1,028  165  1,883 
Shares repurchased         
Net increase  120  $1,028  165  $1,883 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R4  Shares  Amount  Shares  Amount 
Shares sold  677  $6,254  1,842  $19,103 
Shares issued in connection with         
reinvestment of distributions  375  3,195  167  1,914 
  1,052  9,449  2,009  21,017 
Shares repurchased  (60)  (540)  (6)  (53) 
Net increase  992  $8,909  2,003  $20,964 

 

84 Retirement Advantage Funds 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R5  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  127  1,077  169  1,934 
  127  1,077  169  1,934 
Shares repurchased         
Net increase  127  $1,077  169  $1,934 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  64,143  $597,214  211,125  $2,339,567 
Shares issued in connection with         
reinvestment of distributions  52,973  451,855  60,869  696,340 
  117,116  1,049,069  271,994  3,035,907 
Shares repurchased  (16,066)  (153,451)  (133,168)  (1,432,067) 
Net increase  101,050  $895,618  138,826  $1,603,840 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class Y  Shares  Amount  Shares  Amount 
Shares sold    $—  99  $1,000 
Shares issued in connection with         
reinvestment of distributions  138  1,172  169  1,934 
  138  1,172  268  2,934 
Shares repurchased         
Net increase  138  $1,172  268  $2,934 

 

2045 Fund

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class A  Shares  Amount  Shares  Amount 
Shares sold  5,875  $54,690  22,403  $242,848 
Shares issued in connection with         
reinvestment of distributions  5,155  44,231  2,916  33,622 
  11,030  98,921  25,319  276,470 
Shares repurchased  (520)  (4,863)  (1,127)  (11,861) 
Net increase  10,510  $94,058  24,192  $264,609 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class C  Shares  Amount  Shares  Amount 
Shares sold  167  $1,535  38  $368 
Shares issued in connection with         
reinvestment of distributions  247  2,121  268  3,097 
  414  3,656  306  3,465 
Shares repurchased  (6)  (50)     
Net increase  408  $3,606  306  $3,465 

 

Retirement Advantage Funds 85 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  125  1,073  141  1,634 
  125  1,073  141  1,634 
Shares repurchased         
Net increase  125  $1,073  141  $1,634 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R3  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  128  1,104  144  1,665 
  128  1,104  144  1,665 
Shares repurchased         
Net increase  128  $1,104  144  $1,665 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R4  Shares  Amount  Shares  Amount 
Shares sold  443  $4,164  8,375  $88,850 
Shares issued in connection with         
reinvestment of distributions  986  8,474  147  1,696 
  1,429  12,638  8,522  90,546 
Shares repurchased  (1,982)  (18,200)  (1,338)  (14,346) 
Net increase (decrease)  (553)  $(5,562)  7,184  $76,200 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R5  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  134  1,154  148  1,715 
  134  1,154  148  1,715 
Shares repurchased         
Net increase  134  $1,154  148  $1,715 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  132,391  $1,242,934  342,753  $3,853,895 
Shares issued in connection with         
reinvestment of distributions  104,331  897,247  101,727  1,175,969 
  236,722  2,140,181  444,480  5,029,864 
Shares repurchased  (64,492)  (594,943)  (206,981)  (2,252,928) 
Net increase  172,230  $1,545,238  237,499  $2,776,936 

 

86 Retirement Advantage Funds 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  5,503  $50,130    $— 
Shares issued in connection with         
reinvestment of distributions  134  1,154  148  1,715 
  5,637  51,284  148  1,715 
Shares repurchased         
Net increase  5,637  $51,284  148  $1,715 

 

2040 Fund

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class A  Shares  Amount  Shares  Amount 
Shares sold  16,889  $156,460  13,759  $142,240 
Shares issued in connection with         
reinvestment of distributions  2,547  21,647  729  8,328 
  19,436  178,107  14,488  150,568 
Shares repurchased  (11,634)  (108,192)  (2,178)  (24,366) 
Net increase  7,802  $69,915  12,310  $126,202 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class C  Shares  Amount  Shares  Amount 
Shares sold  788  $7,000  352  $3,801 
Shares issued in connection with         
reinvestment of distributions  184  1,570  145  1,654 
  972  8,570  497  5,455 
Shares repurchased  (3)  (25)  (2)  (25) 
Net increase  969  $8,545  495  $5,430 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  133  1,127  133  1,521 
  133  1,127  133  1,521 
Shares repurchased         
Net increase  133  $1,127  133  $1,521 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R3  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  136  1,157  136  1,552 
  136  1,157  136  1,552 
Shares repurchased         
Net increase  136  $1,157  136  $1,552 

 

Retirement Advantage Funds 87 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R4  Shares  Amount  Shares  Amount 
Shares sold  254  $2,363  3,172  $33,343 
Shares issued in connection with         
reinvestment of distributions  565  4,802  139  1,584 
  819  7,165  3,311  34,927 
Shares repurchased  (26)  (230)  (11)  (103) 
Net increase  793  $6,935  3,300  $34,824 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R5  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  142  1,207  140  1,602 
  142  1,207  140  1,602 
Shares repurchased         
Net increase  142  $1,207  140  $1,602 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  186,616  $1,686,252  323,402  $3,581,313 
Shares issued in connection with         
reinvestment of distributions  100,001  851,011  90,101  1,029,855 
  286,617  2,537,263  413,503  4,611,168 
Shares repurchased  (47,838)  (433,390)  (255,415)  (2,756,398) 
Net increase  238,779  $2,103,873  158,088  $1,854,770 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class Y  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  142  1,207  140  1,602 
  142  1,207  140  1,602 
Shares repurchased         
Net increase  142  $1,207  140  $1,602 

 

2035 Fund

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class A  Shares  Amount  Shares  Amount 
Shares sold  29,163  $262,316  35,578  $361,208 
Shares issued in connection with         
reinvestment of distributions  6,624  57,561  6,026  67,189 
  35,787  319,877  41,604  428,397 
Shares repurchased  (203)  (1,865)  (1,722)  (18,171) 
Net increase  35,584  $318,012  39,882  $410,226 

 

88 Retirement Advantage Funds 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class C  Shares  Amount  Shares  Amount 
Shares sold    $—  1,860  $17,223 
Shares issued in connection with         
reinvestment of distributions  127  1,098  129  1,438 
  127  1,098  1,989  18,661 
Shares repurchased  (1,473)  (13,655)  (194)  (1,894) 
Net increase (decrease)  (1,346)  $(12,557)  1,795  $16,767 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  87  758  133  1,480 
  87  758  133  1,480 
Shares repurchased         
Net increase  87  $758  133  $1,480 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R3  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  89  777  135  1,510 
  89  777  135  1,510 
Shares repurchased         
Net increase  89  $777  135  $1,510 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R4  Shares  Amount  Shares  Amount 
Shares sold  463  $4,309  3,738  $38,361 
Shares issued in connection with         
reinvestment of distributions  215  1,872  138  1,541 
  678  6,181  3,876  39,902 
Shares repurchased  (9)  (84)  (2,644)  (27,522) 
Net increase  669  $6,097  1,232  $12,380 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R5  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  94  825  140  1,559 
  94  825  140  1,559 
Shares repurchased         
Net increase  94  $825  140  $1,559 

 

Retirement Advantage Funds 89 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  260,056  $2,373,569  643,760  $6,970,069 
Shares issued in connection with         
reinvestment of distributions  114,769  999,639  155,607  1,736,577 
  374,825  3,373,208  799,367  8,706,646 
Shares repurchased  (34,354)  (318,931)  (482,122)  (5,096,644) 
Net increase  340,471  $3,054,277  317,245  $3,610,002 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class Y  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  158  1,378  233  2,606 
  158  1,378  233  2,606 
Shares repurchased         
Net increase  158  $1,378  233  $2,606 

 

2030 Fund

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class A  Shares  Amount  Shares  Amount 
Shares sold  8,870  $81,605  45,968  $493,699 
Shares issued in connection with         
reinvestment of distributions  4,188  36,561  3,264  35,873 
  13,058  118,166  49,232  529,572 
Shares repurchased  (1,694)  (15,801)  (11,262)  (119,849) 
Net increase  11,364  $102,365  37,970  $409,723 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class C  Shares  Amount  Shares  Amount 
Shares sold  2,493  $22,735  3,402  $36,073 
Shares issued in connection with         
reinvestment of distributions  407  3,535  386  4,230 
  2,900  26,270  3,788  40,303 
Shares repurchased  (1,595)  (14,912)  (3)  (35) 
Net increase  1,305  $11,358  3,785  $40,268 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  74  649  112  1,230 
  74  649  112  1,230 
Shares repurchased         
Net increase  74  $649  112  $1,230 

 

90 Retirement Advantage Funds 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R3  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  77  677  115  1,260 
  77  677  115  1,260 
Shares repurchased         
Net increase  77  $677  115  $1,260 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R4  Shares  Amount  Shares  Amount 
Shares sold  172  $1,593  9,486  $97,364 
Shares issued in connection with         
reinvestment of distributions  744  6,516  117  1,289 
  916  8,109  9,603  98,653 
Shares repurchased  (867)  (7,933)  (37)  (343) 
Net increase  49  $176  9,566  $98,310 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R5  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  82  722  119  1,306 
  82  722  119  1,306 
Shares repurchased         
Net increase  82  $722  119  $1,306 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  230,299  $2,119,793  579,287  $6,374,381 
Shares issued in connection with         
reinvestment of distributions  94,019  823,602  138,285  1,522,519 
  324,318  2,943,395  717,572  7,896,900 
Shares repurchased  (104,133)  (972,945)  (432,441)  (4,555,281) 
Net increase  220,185  $1,970,450  285,131  $3,341,619 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class Y  Shares  Amount  Shares  Amount 
Shares sold    $—  142  $1,431 
Shares issued in connection with         
reinvestment of distributions  96  839  122  1,343 
  96  839  264  2,774 
Shares repurchased         
Net increase  96  $839  264  $2,774 

 

Retirement Advantage Funds 91 

 


 

2025 Fund

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class A  Shares  Amount  Shares  Amount 
Shares sold  3,176  $29,449  70,606  $762,173 
Shares issued in connection with         
reinvestment of distributions  2,440  22,107  10,916  116,586 
  5,616  51,556  81,522  878,759 
Shares repurchased  (53,666)  (489,827)  (31,903)  (330,156) 
Net increase (decrease)  (48,050)  $(438,271)  49,619  $548,603 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class C  Shares  Amount  Shares  Amount 
Shares sold  284  $2,600  2,311  $21,684 
Shares issued in connection with         
reinvestment of distributions  112  1,008  339  3,618 
  396  3,608  2,650  25,302 
Shares repurchased  (104)  (955)  (797)  (8,150) 
Net increase  292  $2,653  1,853  $17,152 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  16  152  63  672 
  16  152  63  672 
Shares repurchased         
Net increase  16  $152  63  $672 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R3  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  19  177  65  699 
  19  177  65  699 
Shares repurchased         
Net increase  19  $177  65  $699 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R4  Shares  Amount  Shares  Amount 
Shares sold  644  $5,949  20,812  $206,676 
Shares issued in connection with         
reinvestment of distributions  244  2,212  68  726 
  888  8,161  20,880  207,402 
Shares repurchased  (1,965)  (18,139)  (10,660)  (106,472) 
Net increase (decrease)  (1,077)  $(9,978)  10,220  $100,930 

 

92 Retirement Advantage Funds 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R5  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  24  218  69  743 
  24  218  69  743 
Shares repurchased         
Net increase  24  $218  69  $743 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  126,053  $1,168,864  585,276  $6,068,898 
Shares issued in connection with         
reinvestment of distributions  29,873  270,948  74,258  794,555 
  155,926  1,439,812  659,534  6,863,453 
Shares repurchased  (70,659)  (655,496)  (413,568)  (4,217,473) 
Net increase  85,267  $784,316  245,966  $2,645,980 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class Y  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  24  218  69  743 
  24  218  69  743 
Shares repurchased      (35)  (396) 
Net increase  24  $218  34  $347 

 

Maturity Fund

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class A  Shares  Amount  Shares  Amount 
Shares sold  15,388  $143,418  11,629  $130,360 
Shares issued in connection with         
reinvestment of distributions  540  5,004  2,418  26,067 
  15,928  148,422  14,047  156,427 
Shares repurchased  (610)  (5,844)  (17,771)  (192,906) 
Net increase (decrease)  15,318  $142,578  (3,724)  $(36,479) 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class C  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  11  98  42  453 
  11  98  42  453 
Shares repurchased         
Net increase  11  $98  42  $453 

 

Retirement Advantage Funds 93 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  11  101  43  457 
  11  101  43  457 
Shares repurchased         
Net increase  11  $101  43  $457 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R3  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  12  104  42  461 
  12  104  42  461 
Shares repurchased         
Net increase  12  $104  42  $461 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R4  Shares  Amount  Shares  Amount 
Shares sold  358  $3,360  1,508  $15,055 
Shares issued in connection with         
reinvestment of distributions  30  283  43  462 
  388  3,643  1,551  15,517 
Shares repurchased  (11)  (99)  (196)  (1,929) 
Net increase  377  $3,544  1,355  $13,588 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R5  Shares  Amount  Shares  Amount 
Shares sold    $—    $— 
Shares issued in connection with         
reinvestment of distributions  13  117  43  465 
  13  117  43  465 
Shares repurchased         
Net increase  13  $117  43  $465 
 
  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  211,045  $2,016,688  744,178  $8,007,884 
Shares issued in connection with         
reinvestment of distributions  16,179  151,047  59,526  644,073 
  227,224  2,167,735  803,704  8,651,957 
Shares repurchased  (212,856)  (2,038,710)  (505,817)  (5,225,341) 
Net increase  14,368  $129,025  297,887  $3,426,616 

 

94 Retirement Advantage Funds 

 


 

  SIX MONTHS ENDED 2/28/23  YEAR ENDED 8/31/22 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  106  $1,000  1,312  $12,729 
Shares issued in connection with         
reinvestment of distributions  30  280  43  465 
  136  1,280  1,355  13,194 
Shares repurchased         
Net increase  136  $1,280  1,355  $13,194 

 

At the close of the reporting period, Putnam Investments, LLC owned the following shares of each fund:

 

      Fair value at the end of the 
  Shares owned  Percentage of shares outstanding  reporting period 
2065 Fund class A  1,114  8.89%  $10,360 
2065 Fund class C  1,102  69.48  10,194 
2065 Fund class R  1,105  100.00  10,274 
2065 Fund class R3  1,108  100.00  10,330 
2065 Fund class R4  1,114  24.04  10,382 
2065 Fund class R5  1,117  100.00  10,420 
2065 Fund class R6  1,119  28.27  10,440 
2065 Fund class Y  1,117  46.56  10,422 
2060 Fund class A  1,225  6.72  11,307 
2060 Fund class C  1,210  97.42  11,096 
2060 Fund class R  1,215  100.00  11,189 
2060 Fund class R3  1,219  100.00  11,257 
2060 Fund class R4  1,227  50.12  11,325 
2060 Fund class R5  1,230  100.00  11,366 
2060 Fund class Y  1,230  74.77  11,365 
2055 Fund class A  1,228  5.87  11,224 
2055 Fund class C  1,208  80.21  11,029 
2055 Fund class R  1,214  100.00  11,123 
2055 Fund class R3  1,221  100.00  11,191 
2055 Fund class R4  1,228  37.12  11,261 
2055 Fund class R5  1,232  100.00  11,299 
2055 Fund class Y  1,232  93.33  11,297 
2050 Fund class A  1,255  4.47  11,132 
2050 Fund class C  1,232  99.92  10,928 
2050 Fund class R  1,240  100.00  11,024 

 

Retirement Advantage Funds 95 

 


 

      Fair value at the end of the 
  Shares owned  Percentage of shares outstanding  reporting period 
2050 Fund class R3  1,247  100.00%  $11,091 
2050 Fund class R4  1,255  31.71  11,157 
2050 Fund class R5  1,259  100.00  11,198 
2050 Fund class Y  1,259  91.96  11,205 
2045 Fund class C  1,214  47.24  10,829 
2045 Fund class R  1,223  100.00  10,927 
2045 Fund class R3  1,230  100.00  10,993 
2045 Fund class R4  1,238  16.31  11,055 
2045 Fund class R5  1,241  100.00  11,100 
2045 Fund class Y  1,241  18.40  11,095 
2040 Fund class A  1,241  4.86  10,933 
2040 Fund class C  1,219  48.01  10,739 
2040 Fund class R  1,228  100.00  10,824 
2040 Fund class R3  1,235  100.00  10,890 
2040 Fund class R4  1,243  24.58  10,951 
2040 Fund class R5  1,246  100.00  10,996 
2040 Fund class Y  1,246  100.00  10,996 
2035 Fund class C  1,176  83.46  10,525 
2035 Fund class R  1,181  100.00  10,610 
2035 Fund class R3  1,186  100.00  10,675 
2035 Fund class R4  1,194  41.70  10,734 
2035 Fund class R5  1,197  100.00  10,778 
2035 Fund class Y  1,197  59.88  10,773 
2030 Fund class C  1,143  15.65  10,173 
2030 Fund class R  1,143  100.00  10,270 
2030 Fund class R3  1,150  100.00  10,332 
2030 Fund class R4  1,157  10.94  10,390 
2030 Fund class R5  1,160  100.00  10,433 
2030 Fund class Y  1,160  86.18  10,428 
2025 Fund class C  1,043  14.07  9,575 
2025 Fund class R  1,046  100.00  9,662 
2025 Fund class R3  1,052  100.00  9,721 
2025 Fund class R4  1,059  10.47  9,775 
2025 Fund class R5  1,062  100.00  9,815 
2025 Fund class Y  1,062  100.00  9,818 
Maturity Fund class C  1,021  100.00  9,494 
Maturity Fund class R  1,022  100.00  9,574 
Maturity Fund class R3  1,023  100.00  9,631 
Maturity Fund class R4  1,023  37.87  9,678 
Maturity Fund class R5  1,024  99.90  9,718 
Maturity Fund class Y  1,024  41.63  9,718 

 

96 Retirement Advantage Funds 

 


 

At the close of the reporting period, the following funds had shareholders of record that owned the following percentages of the outstanding shares of the fund.

2065 Fund  22.6% 
2060 Fund  8.0%, 44.8% 
2055 Fund  6.6%, 19.6%, 28.0% 
2050 Fund  6.0%, 11.0%, 37.7% 
2045 Fund  9.8%, 13.6%, 34.8% 
2040 Fund  7.2%, 15.4%, 39.1% 
2035 Fund  7.1%, 14.5%, 28.9% 
2030 Fund  7.4%, 8.8%, 9.0%, 12.5%, 24.7% 
2025 Fund  7.8%, 10.1%, 18.1%, 23.2% 
Maturity Fund  5.2%, 5.6%, 6.2%, 6.3%, 11.6%, 28.1% 

 

Retirement Advantage Funds 97 

 


 

Note 5: Affiliated transactions

Transactions during the reporting period with any company which is under common ownership or control, or involving securities of companies in which a fund owned at least 5% of the outstanding voting securities, were as follows:

2065 Fund                   
              Change in     
              unrealized  Shares   
  Fair value  Purchase  Sale  Investment  Capital gain  Realized  appreciation  outstanding  Fair value 
Affiliates  as of 8/31/22  cost  proceeds  income  distributions  gain (loss)  (depreciation)  as of 2/28/23  as of 2/28/23 
Putnam Dynamic Asset Allocation                   
Equity Fund Class P  $136,715  $102,484  $10,441  $1,500  $26,327  $(1,641)  $(20,072)  19,350  $207,045 
Putnam Dynamic Asset Allocation                   
Growth Fund Class P  37,371  21,643  2,968  443  408  (515)  983  3,429  56,514 
Putnam Short Term Investment Fund                   
Class G  801  710  273  13        1,238  1,238 
Totals  $174,887  $124,837  $13,682  $1,956  $26,735  $(2,156)  $(19,089)    $264,797 
 
2060 Fund                   
              Change in     
              unrealized  Shares   
  Fair value  Purchase  Sale  Investment  Capital gain  Realized  appreciation  outstanding  Fair value 
Affiliates  as of 8/31/22  cost  proceeds  income  distributions  gain (loss)  (depreciation)  as of 2/28/23  as of 2/28/23 
Putnam Dynamic Asset Allocation                   
Equity Fund Class P  $901,989  $523,762  $54,416  $11,312  $199,177  $(8,008)  $(155,673)  112,865  $1,207,654 
Putnam Dynamic Asset Allocation                   
Growth Fund Class P  336,650  159,725  11,404  4,464  4,132  (1,471)  9,121  29,892  492,621 
Putnam Short Term Investment Fund                   
Class G  6,203  3,598  1,277  119        8,524  8,524 
Totals  $1,244,842  $687,085  $67,097  $15,895  $203,309  $(9,479)  $(146,552)    $1,708,799 
 
2055 Fund                   
              Change in     
              unrealized  Shares   
  Fair value  Purchase  Sale  Investment  Capital gain  Realized  appreciation  outstanding  Fair value 
Affiliates  as of 8/31/22  cost  proceeds  income  distributions  gain (loss)  (depreciation)  as of 2/28/23  as of 2/28/23 
Putnam Dynamic Asset Allocation                   
Equity Fund Class P  $1,634,205  $600,402  $161,766  $17,546  $307,879  $(17,168)  $(240,729)  169,621  $1,814,944 
Putnam Dynamic Asset Allocation                   
Growth Fund Class P  1,510,651  389,651  80,551  17,878  16,550  (3,613)  28,950  111,959  1,845,088 
Putnam Short Term Investment Fund                   
Class G  16,057  6,122  3,542  283        18,637  18,637 
Totals  $3,160,913  $996,175  $245,859  $35,707  $324,429  $(20,781)  $(211,779)    $3,678,669 

 

98 Retirement Advantage Funds  Retirement Advantage Funds 99 

 


 

2050 Fund                   
              Change in     
              unrealized  Shares   
  Fair value  Purchase  Sale  Investment  Capital gain  Realized  appreciation  outstanding  Fair value 
Affiliates  as of 8/31/22  cost  proceeds  income  distributions  gain (loss)  (depreciation)  as of 2/28/23  as of 2/28/23 
Putnam Dynamic Asset Allocation                   
Equity Fund Class P  $1,161,035  $386,598  $155,519  $11,758  $205,484  $(34,557)  $(139,033)  113,881  $1,218,524 
Putnam Dynamic Asset Allocation                   
Growth Fund Class P  3,222,512  704,978  115,600  37,456  34,673  (4,495)  58,663  234,591  3,866,058 
Putnam Short Term Investment Fund                   
Class G  22,553  8,214  4,621  397        26,146  26,146 
Totals  $4,406,100  $1,099,790  $275,740  $49,611  $240,157  $(39,052)  $(80,370)    $5,110,728 
 
2045 Fund                   
              Change in     
              unrealized  Shares   
  Fair value  Purchase  Sale  Investment  Capital gain  Realized  appreciation  outstanding  Fair value 
Affiliates  as of 8/31/22  cost  proceeds  income  distributions  gain (loss)  (depreciation)  as of 2/28/23  as of 2/28/23 
Putnam Dynamic Asset Allocation                   
Equity Fund Class P  $404,844  $99,738  $189,196  $2,750  $47,502  $(72,567)  $23,515  24,891  $266,334 
Putnam Dynamic Asset Allocation                   
Growth Fund Class P  7,833,046  1,605,817  585,161  88,130  81,584  (21,394)  119,589  543,198  8,951,897 
Putnam Short Term Investment Fund                   
Class G  132,766  46,725  12,620  2,788        166,871  166,871 
Totals  $8,370,656  $1,752,280  $786,977  $93,668  $129,086  $(93,961)  $143,104    $9,385,102 
 
2040 Fund                   
              Change in     
              unrealized  Shares   
  Fair value  Purchase  Sale  Investment  Capital gain  Realized  appreciation  outstanding  Fair value 
Affiliates  as of 8/31/22  cost  proceeds  income  distributions  gain (loss)  (depreciation)  as of 2/28/23  as of 2/28/23 
Putnam Dynamic Asset Allocation                   
Balanced Fund Class P  $1,631,613  $916,321  $141,347  $15,940  $83,553  $(33,494)  $(7,163)  170,949  $2,365,930 
Putnam Dynamic Asset Allocation                   
Growth Fund Class P  5,341,905  1,431,614  725,618  59,557  55,132  (132,656)  194,950  370,764  6,110,195 
Putnam Short Term Investment Fund                   
Class G  204,399  81,021  27,597  4,239        257,823  257,823 
Totals  $7,177,917  $2,428,956  $894,562  $79,736  $138,685  $(166,150)  $187,787    $8,733,948 
 
2035 Fund                   
              Change in     
              unrealized  Shares   
  Fair value  Purchase  Sale  Investment  Capital gain  Realized  appreciation  outstanding  Fair value 
Affiliates  as of 8/31/22  cost  proceeds  income  distributions  gain (loss)  (depreciation)  as of 2/28/23  as of 2/28/23 
Putnam Dynamic Asset Allocation                   
Balanced Fund Class P  $9,234,503  $3,295,130  $253,507  $85,890  $433,585  $(33,366)  $(254,779)  866,184  $11,987,981 
Putnam Dynamic Asset Allocation                   
Growth Fund Class P  3,280,001  592,118  847,371  32,200  29,808  (327,686)  317,925  182,948  3,014,987 
Putnam Short Term Investment Fund                   
Class G  497,726  155,834  38,109  9,994        615,451  615,451 
Totals  $13,012,230  $4,043,082  $1,138,987  $128,084  $463,393  $(361,052)  $63,146    $15,618,419 

 

100 Retirement Advantage Funds  Retirement Advantage Funds 101 

 


 

2030 Fund                   
              Change in     
              unrealized  Shares   
  Fair value  Purchase  Sale  Investment  Capital gain  Realized  appreciation  outstanding  Fair value 
Affiliates  as of 8/31/22  cost  proceeds  income  distributions  gain (loss)  (depreciation)  as of 2/28/23  as of 2/28/23 
Putnam Multi-Asset Income Fund                   
Class P  $1,129,794  $427,082  $102,903  $2,382  $15,709  $(14,030)  $9,733  152,277  $1,449,676 
Putnam Dynamic Asset Allocation                   
Balanced Fund Class P  7,992,179  1,726,688  1,501,169  69,120  330,987  (397,025)  89,823  571,568  7,910,496 
Putnam Dynamic Asset Allocation                   
Conservative Fund Class P  2,564,675  1,417,568  250,252  31,948  120,792  (53,590)  (85,361)  377,024  3,593,040 
Putnam Short Term Investment Fund                   
Class G  618,441  154,580  69,864  12,050        703,157  703,157 
Totals  $12,305,089  $3,725,918  $1,924,188  $115,500  $467,488  $(464,645)  $14,195    $13,656,369 
 
2025 Fund                   
              Change in     
              unrealized  Shares   
  Fair value  Purchase  Sale  Investment  Capital gain  Realized  appreciation  outstanding  Fair value 
Affiliates  as of 8/31/22  cost  proceeds  income  distributions  gain (loss)  (depreciation)  as of 2/28/23  as of 2/28/23 
Putnam Multi-Asset Income Fund                   
Class P  $4,138,635  $1,062,776  $421,227  $8,446  $58,985  $(58,130)  $45,622  500,806  $4,767,676 
Putnam Dynamic Asset Allocation                   
Balanced Fund Class P  1,305,667  174,259  366,745  11,257  53,190  (123,109)  67,901  76,443  1,057,973 
Putnam Dynamic Asset Allocation                   
Conservative Fund Class P  6,437,088  931,897  862,793  64,683  270,162  (172,267)  (188,051)  644,898  6,145,874 
Putnam Short Term Investment Fund                   
Class G  751,875  110,290  104,568  14,028        757,597  757,597 
Totals  $12,633,265  $2,279,222  $1,755,333  $98,414  $382,337  $(353,506)  $(74,528)    $12,729,120 
 
Maturity Fund                   
              Change in     
              unrealized  Shares   
  Fair value  Purchase  Sale  Investment  Capital gain  Realized  appreciation  outstanding  Fair value 
Affiliates  as of 8/31/22  cost  proceeds  income  distributions  gain (loss)  (depreciation)  as of 2/28/23  as of 2/28/23 
Putnam Multi-Asset Income Fund                   
Class P  $11,963,781  $2,241,050  $1,948,542  $25,252  $156,253  $(262,388)  $182,975  1,279,084  $12,176,876 
Putnam Short Term Investment Fund                   
Class G  754,674  169,253  153,714  12,871        770,213  770,213 
Totals  $12,718,455  $2,410,303  $2,102,256  $38,123  $156,253  $(262,388)  $182,975    $12,947,089 

 

102 Retirement Advantage Funds  Retirement Advantage Funds 103 

 


 

Note 6: Market, credit and other risks

In the normal course of business, the underlying Putnam Funds trade financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The underlying Putnam Funds may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. The underlying Putnam Funds may invest in foreign securities that involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations. 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.

The Covid–19 pandemic and efforts to contain its spread have resulted in, among other effects, significant market volatility, exchange trading suspensions and closures, declines in global financial markets, higher default rates, significant changes in fiscal and monetary policies, and economic downturns and recessions. The effects of the Covid–19 pandemic have negatively affected, and may continue to negatively affect, the global economy, the economies of the United States and other individual countries, the financial performance of individual issuers, sectors, industries, asset classes, and markets, and the value, volatility, and liquidity of particular securities and other assets. The effects of the Covid–19 pandemic also are likely to exacerbate other risks that apply to the fund, which could negatively impact the fund’s performance and lead to losses on your investment in the fund. The duration of the Covid–19 pandemic and its effects cannot be determined with certainty.

104 Retirement Advantage Funds 

 


 

Fund information

Founded over 85 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 funds across income, value, blend, growth, sustainable, and asset allocation categories.

Investment Manager  Trustees  Richard T. Kircher 
Putnam Investment  Kenneth R. Leibler, Chair  Vice President and 
Management, LLC  Barbara M. Baumann, Vice Chair  BSA Compliance Officer 
100 Federal Street  Liaquat Ahamed   
Boston, MA 02110  Katinka Domotorffy  Martin Lemaire 
  Catharine Bond Hill  Vice President and 
Investment Sub-Advisor  Jennifer Williams Murphy  Derivatives Risk Manager 
Putnam Investments Limited  Marie Pillai   
16 St James’s Street  George Putnam III  Susan G. Malloy 
London, England SW1A 1ER  Robert L. Reynolds  Vice President and 
  Manoj P. Singh  Assistant Treasurer 
Marketing Services  Mona K. Sutphen   
Putnam Retail Management    Alan G. McCormack 
Limited Partnership  Officers  Vice President and 
100 Federal Street  Robert L. Reynolds  Derivatives Risk Manager 
Boston, MA 02110  President   
    Denere P. Poulack 
Custodian  James F. Clark  Assistant Vice President, 
State Street Bank  Vice President, Chief Compliance  Assistant Clerk, and 
and Trust Company  Officer, and Chief Risk Officer  Assistant Treasurer 
     
Legal Counsel  Michael J. Higgins  Janet C. Smith 
Ropes & Gray LLP  Vice President, Treasurer,  Vice President, 
  and Clerk  Principal Financial Officer, 
    Principal Accounting Officer, 
  Jonathan S. Horwitz  and Assistant Treasurer 
  Executive Vice President,   
  Principal Executive Officer,  Stephen J. Tate 
  and Compliance Liaison  Vice President and 
    Chief Legal Officer 
     
Mark C. Trenchard 
Vice President 

 

This report is for the information of shareholders of Putnam Retirement Advantage 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 putnam.com. Investors should carefully consider the investment objectives, risks, charges, and expenses of the underlying funds, which are described in their prospectuses. For this and other information or to request a prospectus or summary prospectus, call 1-800-225-1581 toll free. Please read the prospectus carefully before investing. The fund’s Statement of Additional Information contains additional information about the fund’s Trustees and is available without charge upon request by calling 1-800-225-1581.


 


Item 2. Code of Ethics:
Not applicable

Item 3. Audit Committee Financial Expert:
Not applicable

Item 4. Principal Accountant Fees and Services:
Not applicable

Item 5. Audit Committee of Listed Registrants
Not applicable

Item 6. Schedule of Investments:
The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.

Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:
Not applicable

Item 8. Portfolio Managers of Closed-End Investment Companies
Not Applicable

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:
Not applicable

Item 10. Submission of Matters to a Vote of Security Holders:
Not applicable

Item 11. Controls and Procedures:
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

(b) Changes in internal control over financial reporting: Not applicable

Item 12. Disclosures of Securities Lending Activities for Closed-End Investment Companies:
Not Applicable

Item 13. Exhibits:
(a)(1) Not applicable

(a)(2) Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam Target Date Funds
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer

Date: April 27, 2023
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/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer

Date: April 27, 2023
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer

Date: April 27, 2023