At Putnam, Writing Was on the Wall

Of all the firm's equity funds, only the Putnam Utilities Growth & Income Fund(PUGIX Quote), with an anemic 0.87% growth rate, has managed a positive annual rate of return over the past three years.

The firm announced that, in the next month or two, the Putnam Capital Appreciation Fund(PCAPX Quote) and the Putnam Tax Smart Equity Fund(PVISX Quote) will be merged into the Putnam Investors Fund(PINVX Quote). The Putnam Classic Equity Fund(PXGIX Quote) will meld with The Putnam Fund for Growth and Income(PGRWX Quote), while the Putnam Discovery Growth Fund(PVIIX Quote) will combine with the Putnam New Opportunities Fund(PNOPX Quote). The Putnam New Value Fund(PANVX Quote) will be acquired by the Putnam Equity Income Fund(PEYAX Quote), and the Putnam OTC Emerging Growth Fund(POEGX Quote) will combine with the Putnam Vista Fund(PVISX Quote).

PERCENTAGE OF PUTNAM EQUITY FUNDS WITH TheStreet.com RATINGS BUY, HOLD & SELL RECOMMENDATIONS BUY (%) HOLD (%) SELL (%) Dec. '07 9.8 41.5 48.8 Jan. '08 7.3 46.3 46.3 Feb. '08 9.8 43.9 46.3 Mar '08 7.3 43.9 48.8 Apr '08 12.2 39.0 48.8 May '08 12.2 41.5 46.3 Jun '08 9.8 51.2 39.0 Jul '08 7.3 48.8 43.9 Aug '08 4.9 31.7 63.4 Sep '08 9.8 31.7 58.5 Oct '08 17.1 34.1 48.8 Data as of 10/31/2008. Source: TheStreet.com Ratings. For an explanation of our ratings, click here.

NOT MAKING THE GRADES AT PUTNAM EQUITY FUNDS Percentage of Putnam Equity Funds in Each of the TheSteet.com Ratings Grade Ranges Grade Range A B C D E Dec. '07 2.4 7.3 41.5 31.7 17.1 Jan. '08 2.4 4.9 46.3 29.3 17.1 Feb. '08 2.4 7.3 43.9 29.3 17.1 Mar '08 2.4 4.9 43.9 26.8 22.0 Apr '08 2.4 9.8 39.0 24.4 24.4 May '08 2.4 9.8 41.5 19.5 26.8 Jun '08 2.4 7.3 51.2 19.5 19.5 Jul '08 2.4 4.9 48.8 22.0 22.0 Aug '08 2.4 2.4 31.7 43.9 19.5 Sep '08 0.0 9.8 31.7 36.6 22.0 Oct '08 2.4 14.6 34.1 41.5 7.3 Source: TheStreet.com Ratings - Data as of 10/31/2008 For an explanation of our ratings, click here.

PUTNAM EQUITY FUNDS: IN NEED OF A TRANSFUSION NAME, TICKER & TheStreet.com RATINGS GRADE INVESTMENT OBJECTIVE TOTAL EXPENSE RATIO (%) 3-MO. TOTAL RET'N (%) 12-MO. TOTAL RET'N (%) 3-YR. ANN'L RET'N (%) Putnam Asset Alloc-Balanced A (PABAX) C+ Asset Allocation - Domestic 1.11 -22.65 -31.94 -5.55 Putnam Asset Alloc-Conserv A (PACAX) A- Asset Allocation - Domestic 1.21 -16.60 -22.09 -3.51 Putnam Asset Alloc-Growth A (PAEAX) C Asset Allocation - Domestic 1.23 -26.68 -38.30 -5.91 Putnam Capital Appreciation A (PCAPX) D+ * Growth - Domestic 1.34 -23.78 -39.26 -10.07 Putnam Capital Opportunities A (PCOAX) D Small Cap 1.23 -26.12 -37.77 -8.83 Putnam Classic Equity A (PXGIX) C * Growth & Income 1.25 -16.08 -36.30 -8.35 Putnam Convertible Inc & Gr A (PCONX) C- Convertible 1.05 -32.14 -39.13 -7.30 Putnam Discovery Growth Fund A (PVIIX) D+ * Aggressive Growth 1.57 -29.58 -40.92 -7.65 Putnam Equity Income A (PEYAX) B- Equity Income 1.05 -20.46 -32.24 -2.97 Putnam Europe Equity A (PEUGX) D- Non-US Equity 1.48 -36.45 -49.62 -6.22 Putnam Fund for Gr & Inc A (PGRWX) D Growth & Income 0.92 -21.28 -40.22 -9.76 Putnam George Fund A (PGEOX) C Asset Allocation - Domestic 0.98 -23.30 -34.59 -7.42 Putnam Global Equity Fd A (PEQUX) D- Global Equity 1.28 -33.97 -48.72 -7.67 Putnam Global Natural Resources A (EBERX) E+ Energy/Natural Res 1.23 -44.06 -49.22 -4.85 Putnam Growth Opportunities A (POGAX) C- Growth - Domestic 1.53 -25.18 -36.92 -7.57 Putnam Health Sciences Trust A (PHSTX) B- Health/Biotechnology 1.17 -15.73 -17.74 -3.14 Putnam International Capital Opp A (PNVAX) D- Non-US Equity 1.49 -41.45 -54.87 -6.72 Putnam International Equity A (POVSX) D- Non-US Equity 1.25 -36.65 -49.23 -6.63 Putnam Intl Growth & Inc A (PNGAX) D- Non-US Equity 1.35 -37.81 -51.11 -7.71 Putnam Intl New Opportunities A (PINOX) D+ Non-US Equity 1.73 -32.78 -47.04 -4.27 Putnam Investors Fund A (PINVX) D+ Growth - Domestic 1.08 -22.16 -40.29 -9.91 Putnam Mid Cap Value Fund A (PMVAX) E+ Mid Cap 1.23 -31.41 -42.80 -8.66 Putnam New Opportunities A (PNOPX) C- Growth - Domestic 1.17 -27.73 -38.19 -7.61 Putnam New Value Fund A (PANVX) D- * Growth - Domestic 1.14 -25.00 -45.23 -12.05 Putnam OTC Emerging Growth A (POEGX) D * Mid Cap 1.48 -31.45 -42.45 -6.65 Putnam Research Fund A (PNRAX) C Growth - Domestic 1.25 -22.52 -37.68 -7.78 Putnam Retirement Ready 2010 A (PRXRX) B+ Asset Allocation - Domestic 1.01 -17.17 -22.71 -4.09 Putnam Retirement Ready 2015 A (PRRHX) B Asset Allocation - Domestic 1.08 -19.17 -26.99 -4.66 Putnam Retirement Ready 2020 A (PRRMX) C+ Asset Allocation - Domestic 1.16 -21.85 -32.02 -5.80 Putnam Retirement Ready 2025 A (PRROX) C+ Asset Allocation - Domestic 1.2 -23.88 -35.23 -6.39 Putnam Retirement Ready 2030 A (PRRQX) C Asset Allocation - Domestic 1.22 -25.10 -37.12 -6.95 Putnam Retirement Ready 2035 A (PRRWX) C Asset Allocation - Domestic 1.25 -25.85 -38.45 -7.29 Putnam Retirement Ready 2040 A (PRRZX) C- Asset Allocation - Domestic 1.26 -26.39 -39.49 -7.46 Putnam Retirement Ready 2045 A (PRVLX) D Asset Allocation - Domestic 1.27 -27.10 -40.51 -7.71 Putnam Retirement Ready Maturity A (PRMAX) B+ Asset Allocation - Domestic 0.97 -16.55 -21.17 -3.94 Putnam Small Cap Growth A (PNSAX) D- Small Cap 1.68 -29.02 -42.57 -10.81 Putnam Small Cap Value Fund A (PSLAX) E- Small Cap 1.39 -25.10 -41.26 -11.67 Putnam Tax Smart Equity A (PATSX) D+ * Growth - Domestic 1.18 -22.10 -40.25 -10.24 Putnam Utilities Gr & Inc A (PUGIX) B+ Utilities 1.18 -24.25 -33.07 0.87 Putnam Vista Fund A (PVISX) D Mid Cap 1.11 -33.17 -43.42 -11.14 Putnam Voyager A (PVOYX) C- Growth - Domestic 1.14 -25.75 -37.59 -9.07             S&P 500 Composite Total Return -23.11 -36.10 -5.21 * To be merged into another Putnam fund. Note: All funds in the table have $500 minimum initial investment requirements and are subject to initial sales changes of up to 5.75%. Source: TheStreet.com Ratings - Data as of 10/31/2008 For an explanation of our ratings, click here.