«Goal 2 What is Putnam Stable Value Fund? 2 Investment strategy 2 Risks of the Fund 5 Eligibility 6 Fund provisions 7 Fees and Expenses 9 Putnam ...»
Valuation. The assets of the fund are normally valued at book value as determined by the definition for “benefit responsiveness” as required by FASB FSP AAG INV-1 and SOP 94-4-1. However, either (or both) the value of any investment contract and the contract interest rate will be adjusted to reflect, when necessary, the default of any wrap provider, or issuer of a GIC or underlying security in a SBIC.
Thus, certain withdrawals may be payable at market value.
Deposits. Deposits can be made to the fund on a daily basis. There is no minimum size restriction. Putnam may accept or reject any particular investment, at any time in its discretion. Upon acceptance of a deposit from a plan or asset allocation fund, PFTC will credit the appropriate number of units to the account of the plan or the asset allocation fund. Contributions to the fund may be transmitted by wire or check. Detailed instructions will be provided by PFTC upon receipt of an executed participation agreement. Wired funds will be invested within one business day of receipt. Contributions by check will be invested within three business days of receipt.
Distributions of income. All units of the fund will receive a pro rata share of all income earned by the fund’s investments, net of any fund expenses, commencing upon the date the units are issued to the plan. Income will be credited to each participating plan or asset allocation fund in the form of additional units.
90-day equity wash provision. No participant-directed investment transfers may be made to competing investment options. If PFTC has consented to competing investment options being made available to participants under the plan, amounts transferred to non-competing investment options may not be transferred to competing investment options until 90 days have elapsed since the transfer out of the fund. Competing investment options have been defined by PFTC to generally include fixed income funds of short duration (less than 3 years) such as money market funds, short-term bond funds, and self-directed brokerage accounts. A list
Withdrawals. Subject to the restrictions set forth below, withdrawals from the fund will generally be permitted daily at book value.
While PFTC will attempt to maintain sufficient liquidity to meet all withdrawal requests, it is possible that such requests will exceed the fund’s available liquidity.
If PFTC determines, in its sole discretion, that the fund does not have sufficient
liquidity to meet any withdrawal request, the following rules will apply:
• PFTC may defer honoring any payment request or other obligation, if, as a result of the closing or other disruption of financial markets or exchanges, PFTC is unable to settle the necessary transaction prudently in order to honor on a timely basis such payment request or other payment obligation.
• PFTC may defer honoring employer withdrawal requests (e.g., a withdrawal due to plan termination) or an asset allocation fund’s withdrawal request, for up to 12 months. Notwithstanding such 12 month deferral, qualified employee-initiated benefit payments generally will continue to be made as provided for in this offering statement during such period.
Cash Management. The fund’s cash positions shall generally be invested in the Putnam Government Money Market Fund, an open-end investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Putnam Government Money Market Fund seeks as high a rate of current income as such fund’s investment manager, Putnam Investment Management, LLC, believes is consistent with the preservation of capital and maintenance of liquidity. For more detailed information about the Putnam Government Money Market Fund, including investment management fees and other operating expenses, please refer to the most recent prospectus. For a copy of the most recent prospectus you can contact Putnam Investments at the address and phone number indicated below. By investing cash positions in an affiliated money market fund, PFTC has greater control and transparency with respect to this aspect of the investment process. Any such investment by the fund shall be made pursuant to the terms and conditions of individual exemption 2010-13 granted to PFTC by the Department of Labor.
Proxy Voting. PFTC will vote (or may retain an affiliate to vote) proxies issued by companies whose securities are owned by the fund. PFTC’s policy is generally to seek to vote all proxies and that all voting be recorded in accordance with its (or its affiliate’s, as the case may be) proxy voting policy, although PFTC may solicit recommendations from advisors or sub-advisors which it retains with respect to 8 Offering Statement the fund. A copy of PFTC’s (or its affiliate’s, as the case may be) proxy voting policy is available upon request.
Regulatory Status. The fund and its Units have not been registered under the Securities Act of 1933, as amended (the “1933 Act”), the 1940 Act, or the securities laws of any states or other jurisdictions, and participants are not entitled to the protections of the 1933 Act, the 1940 Act, or such laws. The fund may, in addition to investing in securities and money market instruments, also invest in futures contracts, security futures contracts or products, derivatives, and other similar investments, and PFTC has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act, as amended (the “Commodity Act”), pursuant to Rule 4.5 of the Commodity Act, and therefore PFTC is not subject to registration or regulation as a “commodity pool operator” under the Commodity Act.
Custodian. State Street Bank and Trust Company serves as the custodian of the fund’s assets.
FEES AND EXPENSESInvestment management fee: Each participating plan pays a management fee equal to a percentage of the plan’s assets invested in the fund, not to exceed 1.00%, as agreed by PFTC and the plan. Such fee shall be accrued daily and paid quarterly. A portion of the fee may be applied to payments made by PFTC to financial advisors, other marketing and servicing expenses and plan administrative costs.
Investment contract fees: Expenses associated with the purchase of investment contracts, including SBICs, will be reflected in the interest rates credited under the contracts to the fund. These expenses for SBICs include custody fees and management or advisory fees (in the case of a managed SBIC with an unaffiliated investment manager) for the underlying securities and wrap fees, both of which are negotiated by PFTC. Similarly, the yields derived from investments in a stable value fund will be net of that fund’s management fees and other expenses. The fund may pay investment software costs related to GIC investment placement.
Other fund operating expenses: The fund (or any other fund in which it invests) also bears its other operating expenses, such as custody, middle office services and accounting fees, audit fees, and legal expenses.
PUTNAM FIDUCIARY TRUST COMPANYPFTC is a New Hampshire nondepository trust company that provides trustee and investment management services. PFTC is a subsidiary of Putnam Investments, LLC, a holding company that, except for a minority stake owned by employees, is owned (through a series of holding companies) by Great-West Lifeco Inc., which is Offering Statement 9 a financial services holding company with interests in the life insurance, retirement, savings, and reinsurance businesses. Its businesses have operations in Canada, the United States and Europe. Great-West Lifeco Inc. is a majority-owned subsidiary of Power Financial Corporation. Power Financial Corporation is a diversified management and holding company that has interests, directly or indirectly, in companies that are active in the financial services sector in Canada, the United States, and Europe. It also has substantial holdings in a group of energy, water, waste services, specialty minerals and cement and building materials companies in Europe. Power Corporation of Canada, a diversified international management and holding company, owns a majority of the voting securities of Power Financial Corporation.
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