Putnam Investments Launches Two Spectrum Funds That Invest in Leveraged Company Securities

New leveraged company funds to be managed by investment veteran, David Glancy
BOSTON--(Business Wire)--
Putnam Investments today announced that it has launched two new funds that
collectively invest across the full spectrum of securities of leveraged
companies, including stocks, bonds, bank loans, and convertible securities.
Putnam Capital Spectrum Fund and Putnam Equity Spectrum Fund will both be
managed by veteran portfolio manager David Glancy, who joined Putnam earlier
this year after two decades of specializing in industries of leveraged companies
at Andover Capital and Fidelity Investments.

* Putnam Capital Spectrum Fund (Class A: PVSAX) pursues total return by
investing in the securities of leveraged companies. Management aims to select
the most attractive securities anywhere within a company`s capital structure,
including stocks, bonds, bank loans, and convertibles.
* Putnam Equity Spectrum Fund (Class A: PYSAX) seeks capital appreciation
through investments in the equity securities of leveraged companies. Using deep
analytical research and investment experience in this area, management seeks to
uncover mispriced stocks of leveraged companies, creating the potential for
these stocks to outperform broad market averages.

"Today, many leveraged companies offer attractive investment opportunities, and
few are better at uncovering and capitalizing on these opportunities than David
Glancy," said Putnam Investments President and Chief Executive Officer Robert L.
Reynolds. "For more than two decades, David has been at the forefront of
assessing undervalued, leveraged companies. His career spans the history of
leveraged investing, from the leveraged-buyout wave of the 1980s and the private
equity wave of the 2000s to the credit crisis of today, and he has amassed an
outstanding performance record along the way."

The leveraged company funds` investment processes rely on fundamental research
by analyzing corporate balance sheets and capital structures to identify the
securities with the greatest total return potential. Types of leveraged
companies the funds will seek include capital-intensive businesses; early-stage
growth companies (rising stars); former investment-grade companies (fallen
angels); and companies in special situations, such as restructurings,
bankruptcies, or leveraged buyouts. For investors willing to assume the
volatility and other risks of these investments, investing in leveraged
companies can provide a level of diversification when added to a traditional
equity or fixed-income portfolio.

Glancy has access to all of Putnam`s expanded research capabilities, including
the High Yield Credit team and the Small- and Mid-Cap Equities group, which
combined, cover most of the leveraged company universe.

Although Putnam Capital Spectrum Fund and Putnam Equity Spectrum Fund invest in
companies that may be highly leveraged, they do not themselves utilize leverage
as a primary investment strategy. Both funds also have an innovative management
fee structure in which the fee adjusts based on fund performance. This feature
aligns the interests of the fund manager with those of shareholders, similar to
the approach taken by the Putnam Absolute Return Funds. Launched in January, the
Putnam Absolute Return Funds, the industry`s first suite of target absolute
return mutual funds.

"There are a lot more opportunities among leveraged companies today than in the
past; debt burdens are higher and earnings recovery is less certain than in the
previous two recessions," said Glancy. "As a result of the volatility and market
dislocation we see today, leveraged companies can provide exceptional upside
potential for investments across their capital structures, and we look forward
to identifying and exploiting those opportunities to generate strong returns for
our shareholders."

Glancy joined Putnam Investments in 2009 from Andover Capital, where he was a
founding partner and portfolio manager. Previously, he generated notable
performance during his 13-year tenure at Fidelity Investments, where he was the
only portfolio manager to manage both equity and debt funds. Among the funds he
managed were the Fidelity Capital & Income Fund, the Fidelity Advisor Leveraged
Company Stock Fund, and the Fidelity Leveraged Company Stock Fund, which he
managed from its inception in 2000 until leaving the firm near the end of 2003.
For the one-year period ending June 30, 2003, Mr. Glancy managed the number-one
fund in Lipper`s Capital Appreciation category.

NOTE: For more information on Putnam Spectrum Funds, go to
http://www.putnam.com/individual/spectrum_funds/.

About Putnam Investments

Founded in 1937, Putnam Investments is a leading global money management firm
with over 70 years of investment experience. At the end of April 2009, Putnam
had $99 billion in assets under management. Putnam has offices in Boston,
London, Tokyo, Singapore, and Sydney. For more information, go to
www.putnam.com.

For any Putnam fund, request a prospectus from your financial representative or
by calling Putnam at 1-800-225-1581. The prospectus includes investment
objectives, risks, fees, expenses, and other information that you should read
and consider carefully before investing.

Putnam mutual funds are distributed by Putnam Retail Management.

Putnam Absolute Return Funds are not intended to outperform stocks and bonds
during strong market rallies.

Putnam Investments
Jon Goldstein, 617-760-1127 (office)
516-946-5598 (cell)
jon_goldstein@putnam.com
or
Laura McNamara, 617-760-1108 (office)
978-505-0524 (cell)
laura_mcnamara@putnam.com

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