Multi-Asset

PRZZX Putnam Sustainable Retirement 2040 Fund

  • Unique glide path. Seeks to manage the right risk at the right time across the glide path to serve investors at all phases of the retirement journey.
  • Sustainable ETFs. Invests in ETFs that have a materiality-focused approach to sustainable investing aligned with fiduciary duties.
  • Experienced team. Managed by Putnam's tenured Global Asset Allocation team, which has experience leading asset allocation strategies since 1994 and target-date strategies since 2004.

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NAV 1 $0.04(0.12%)
$32.31
As of 10/31/2025
YTD Total Returns At NAV 2
10.69%
As of 10/31/2025
Total Net Assets
$395.86M
As of 09/30/2025 (Updated Monthly)

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Overview

Fund Facts

Fund description

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. Each fund's target date reflects when investors are expected to retire and determines the portfolio's asset allocation.

Benchmark 3
S&P Target Date To 2040 Index
Fund Inception Date
11/01/2004
Dividend Frequency, if any
Annually
Distribution Rate at NAV (Updated Daily)
N/A

Sales Charges, Expenses & Fees

As of 11/30/2024
Gross Expense Ratio4
1.21%
Net Expense Ratio4,5
0.60%
Maximum Initial Charge
N/A
CDSC
N/A
12b-1 Fee
N/A

Identifiers

Ticker
PRZZX
Fund Number
1958
CUSIP Code
746859461

Average Annual Total Returns

View performance section for additional info As of 09/30/2025

Class Y

  • 6.40%1 Year
  • 15.44%3 Years
  • 9.46%5 Years
  • 8.46%10 Years
  • 7.15%Since Inception
    10/29/2004

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

Additional Fund Info

Share Class Inception Date
11/01/2004
Investment Style
Target Date
Lipper Classification
Mixed-Asset Target 2040 Funds
Morningstar Category
Target-Date 2040

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Manager and Commentary

About the Team

Franklin Templeton Investment Solutions

Franklin Templeton Investment Solutions (FTIS) is a leader in multi-asset, quantitative, and hedged solutions, leveraging a global network of investment teams to offer innovative and diversified strategies. With a focus on long-term investing, we combine deep research, active management, and data-driven insights to create solutions which seek to meet the evolving needs of investors worldwide.

Franklin Templeton Investment Solutions
[Adrian H Chans avatar]

Managed Fund Since 2021

[Brett S Goldsteins avatar]

Managed Fund Since 2019

[Thomas Nelsons avatar]

Managed Fund Since 2025

[Berkeley Belknaps avatar]

Managed Fund Since 2025

[Jonathan M Schreibers avatar]

Managed Fund Since 2025

Portfolio Manager Profile
Years of Experience
Manager Location

Latest Insights

October 13, 2025

Hedge Fund Strategy Outlook: Fourth quarter 2025

October 10, 2025

Allocation Views: Responsibly bullish

July 17, 2025

Hedge Fund Strategy Outlook: Third quarter 2025

July 10, 2025

The “Big Beautiful Bill:” Beauty is in the eye of the bondholder

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Performance

Calendar Year Returns

As of 09/30/2025

Chart

Bar chart with 2 data series.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from -15.19 to 22.1.
End of interactive chart.
Class Y - Without Sales Charge (NAV) (%)
S&P Target Date To 2040 Index (%)

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized. 

See the risks and other important information.

Ratings 7

Morningstar logo
Overall Morningstar Rating
Overall Morningstar Rating: 1 out of 5 stars  
As of 09/30/2025
3 Years
3 Years: 1 out of 5 stars  
174 Funds in category
5 Years
5 Years: 2 out of 5 stars  
161 Funds in category
10 Years
10 Years: 1 out of 5 stars  
108 Funds in category
Rating Category
Target-Date 2040

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics. 

Morningstar Style Box
As of 09/30/2025
Current Historical
Large
Medium
Small
Value Blend Growth
Style
Size

Source: Morningstar®. The style box reveals a fund's investment style. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). For fixed income funds, the vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. Placement is determined by fund portfolio holding figures most recently entered into Morningstar's database and corresponding market conditions. Shaded areas show the past 3 years of quarterly data. Past performance does not guarantee future results.

©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

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Portfolio

Assets

As of09/30/2025 (Updated Monthly)

Total Net Assets
$395.86 Million

Positions

As of 09/30/2025 (Updated Monthly)

Number of Holdings
Fund
7

Holdings

As of 09/30/2025 (Updated Monthly)

PUTNAM SUSTAINABLE LEADERS ETF SEDOL BLB0YF8
PUTNAM ESG CORE BOND ETF SEDOL BP48DM7
PUTNAM SUSTAINABLE FUTURE ETF SEDOL BLB0YK3
PUTNAM PANAGORA ESG INT EQ ETF SEDOL BP48DQ1
PUTNAM ESG ULTRA SHORT ETF SEDOL BP48DP0
PUTNAM ESG HIGH YIELD ETF SEDOL BP48DR2
PUTNAM PANAGORA ESG EM EQ ETF SEDOL BP48DN8
Net Cash
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Distributions & Tax

Distribution Frequency
AnnuallyThis fund is an ex-Dividend fund
Capital Gain Distributions
December

Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.

Distributions Per Share
Distribution amounts may be estimates

12/31/2024
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Pricing

Pricing History

As of 10/31/2025 (Updated Daily)

Chart

Line chart with 5284 data points.
The chart has 1 X axis displaying Time. Data ranges from 2004-11-01 00:00:00 to 2025-10-31 00:00:00.
The chart has 1 Y axis displaying [products.performance-value]. Data ranges from 14.02 to 91.99.
End of interactive chart.

Daily Fund Prices

As of 10/31/2025

Share Prices

As of 10/31/2025

NAV  1(Net Asset Value)
$32.31
NAV Change  1
$0.04
NAV Change (%)  1
0.12%
POP  6(Public Offering Price)
$32.31

52-Week Range

Highest NAV As of 10/27/2025
$32.62
Lowest NAV As of 04/08/2025
$25.88

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Documents

Fund Literature
 Name Download Add to Cart
Factsheet - Putnam Sustainable Retirement Funds (Class Y)Download Document
Regulatory Documents
 Name Download Add to Cart
Annual Report - Putnam Sustainable Retirement 2040 Fund - Class YDownload Document
Annual Financial Statements and Other Information - Putnam Sustainable Retirement FundsDownload Document
Semi-Annual Report - Putnam Sustainable Retirement 2040 Fund - Class YDownload Document
Semi-Annual Financial Statements and Other Information - Putnam Sustainable Retirement FundsDownload Document
Prospectus - Putnam Sustainable Retirement FundsDownload Document
Statement Of Additional Information - Putnam Sustainable Retirement 2040 FundMailed hardcopies unavailable.Download Document
Fiscal Q1 Holdings - Putnam Sustainable Retirement 2040 FundMailed hardcopies unavailable.Download Document
Fiscal Q3 Holdings - Putnam Sustainable Retirement FundsDownload Document

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Risks

All investments involve risks, including possible loss of principal. Investments in underlying funds are subject to the same risks as, and indirectly bear the fees and expenses of, the underlying funds. The allocation of assets among different strategies, asset classes and investments may not prove beneficial or produce the desired results. The managers' environmental, social and governance (ESG) strategies may limit the types and number of investments available and, as a result, may forgo favorable market opportunities or underperform strategies that are not subject to such criteria. There is no guarantee that the strategy's ESG directives will be successful or will result in better performance. The investment style may become out of favor, which may have a negative impact on performance. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Active management does not ensure gains or protect against market declines. These and other risks are discussed in the fund's prospectus.

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Important Information

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance. 

Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

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Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results. 

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. 

The 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. The 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. 
Source: © S&P Dow Jones Indices LLC. All rights reserved.

Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

Putnam funds are not exchangeable for other funds distributed by Franklin Distributors, LLC. 

Franklin Distributors, LLC. Member FINRA/SIPC. Putnam Investment is a Franklin Templeton company. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.

Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov. 

Footnotes

  1. Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.

  2. Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.

  3. Effective July 24, 2024, the fund changed its benchmark to the S&P Target Date To 2040 Index.

  4. Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.

  5. Net Expense Ratio represents the expense ratio applicable to investors. 

  6. Public Offering Price – the purchase price for each share of the fund on a given day.  It includes the maximum initial sales charge, if any.

  7. The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics. 
    ©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.