Stable Value Fund (15 bps management fee)

1 * Calculation indicates Value at the security level. The views expressed herein are exclusively those of the portfolio manager as of the end of the period covered, and are subject to change without notice. It is not intended to provide investment advice, and should not be considered the primary basis on which you make these decisions. Holdings and sectors will vary over time. This is not an offer to sell or a recommendation to buy any individual security. OBJECTIVE To preserve principal and achieve high current income through a diversified portfolio of high-quality investment contracts. PERFORMANCE Portfolio issuers PERFORMANCE The Putnam Stable Value Fund posted a positive absolute return and outperformed its benchmark for the period on a gross basis.

2 Our two underlying synthetic strategies posted negative absolute returns on a market Value basis. However, both strategies outperformed their respective benchmarks for the quarter. Prepayment strategies were the largest contributor to relative returns, aided by underweight positioning in the intermediate actively managed synthetic strategy during a period of significant widening in the sector. Term-structure positioning contributed to relative returns as well, as our slightly short duration position proved beneficial in an environment where rates rose across the curve. Mortgage credit sectors marginally contributed to relative performance despite significant spread widening during the last month of the quarter.

3 Seasoned credit risk transfer (CRT) mezzanine bonds saw strong outperformance across the capital stack, as they continue to be tendered by issuers and receive some upgrades by rating agencies. Exposure to traditional GICs (which are not sensitive to interest rate movements) continued to provide a measure of stability and helped drive the overall outperformance versus the cash benchmark. OUTLOOK Overall, broad positioning within the Putnam Stable Value strategy continues to remain focused on liquidity, diversification, and preservation of principal. We believe that these priorities provide the Fund with the foundation to perform consistently in all types of market environments, including an environment where rates are rising.

4 Within IG corporate credit, we continue to find pockets of idiosyncratic opportunities but have a cautious view for the final quarter of 2022. We expect overall fundamentals for commercial real estate will be mixed as the US economy continues to reopen to travel, office use, and retail spending even as the Federal Reserve tightens policy, likely pushing the country into a recession. We continue to favor seasoned mezzanine tranches with high quality collateral, which offer strong risk-adjusted relative Value . Within residential mortgage credit, fundamentals have improved as prepayment speeds have steadily declined year-to-date with mortgage rates reaching their highest levels since 2008. We believe a scenario where the enters a recession may be positive for the agency MBS market relative to other sectors due to their higher credit quality and more robust liquidity profile We believe AAA CLOs remain attractive from a risk-adjusted return perspective relative to other available options in unsecured and secured high grade sectors.

5 Credit enhancement has allowed them to withstand all known credit events to date without losses. Additionally, strong liquidity and the presence of a diverse buyer base for more senior tranches continues to provide stability. In the Traditional GIC sector, A and AA contracts maturing between 3-5 years remain an important, long-term structural component of the portfolio. Recent curve moves have dampened the relative attractiveness of longer-term GICS, so we are being more tactical in transacting. If this situation changes, we will increase exposure to ensure the integrity of our liquidity structure. Synthetic wrap providers transamerica Life Pacific Life Mass Mutual Life Prudential Life Metropolitan Life American United Life American General Life New York Life Traditional GIC issuers Principal Life Metropolitan Life Jackson National Life United of Omaha Life Minnesota Life Lincoln National Life Prudential Life Net cash Putnam Money Market Portfolio Cash Investments Percent of portfolio INVESTMENT THEMES Liquidity, stability, and consistency are essential to the portfolio construction process, which emphasizes diversifying the sources of returns, industries.

6 And issuers within the portfolio Utilizes the full opportunity set within the Stable Value universe, including cash alternatives, GICs, managed synthetics, and constant duration synthetics Periods less than one year are not annualized. Data is historical. Past performance is not a guarantee of future results. More recent returns may be higher or lower than those shown. Investment returns and principal Value will fluctuate and you may have a gain or a loss when you sell your shares. All performance is shown net of fees. For the most recent month end performance information please contact Putnam Investments. ICE BofA 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of Treasury bills available in the marketplace.

7 You cannot invest directly in an index. Putnam Stable Value Fund (as of September 30, 2022) Annualized (%) ICE BofA 3-Month Treasury Bill Index Q3 YTD 1 year 3 years 5 years 10 years Portfolio characteristics Inception date February 28, 1991 Total portfolio assets $ Total strategy assets $ Net crediting rate Market/book Value Effective duration Weighted average maturity* Q3 | 2022 Stable Value Fund (15 bps management fee) Sector allocationQuality Calendar year performance (%) Periods less than one year are not annualized. Data is historical. Past performance is not a guarantee of future results. More recent returns may be higher or lower than those shown.

8 Investment returns and principal Value will fluctuate and you may have a gain or a loss when you sell your shares. All performance is shown net of fees. For the most recent month end performance information please contact Putnam Investments. *Wrap fees are calculated based on total synthetic wrap fees (in dollars) divided by the Fund's average assets. Synthetic wrap contracts account for only a part of the overall portfolio. As a result, the Fund's blended expense is for the twelve-month period ended December 31, 2021, although the average wrap fee, on a contract basis, is higher. For example, if the Fund had half its assets in synthetic wrap contracts over the period, and the contracts had wrap fees of , the Fund's reported wrap fees would be of assets.

9 Current wrap fees may be higher than the fees shown. Implicit expenses associated with traditional guaranteed investment contracts and other portfolio investments that do not charge an explicit wrap fee are not included in the table, but are reflected in the Fund's performance and crediting rate. 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, legal expenses and any other miscellaneous expenses. Please note that the expense information above is calculated in accordance with Department of Labor requirements, which require that wrap fees be reflected as a separate expense item. Expense information in the Fund's annual report, which is prepared under general accounting principles, does not reflect these fees, and will differ as a result.

10 * Total Net cash shown within the Sector & Quality distributions reflects total cash, including wrapped cash and cash held outside of managed strategies. Net cash in the Portfolio Structure distribution only reflects unwrapped cash held for daily portfolio activity. Credit qualities are shown as a percentage of net assets. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor's, Moody's, Fitch, and DBRS. S h ort-term cash bonds rated A-1+ are included in the AAA-rating category. Ratings and portfolio credit quality will vary over time. The fund itself has not been rated by an independent rating agency.