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Putnam Dynamic Asset Allocation Bal R Overview

Putnam Dynamic Asset Allocation Bal R (PAARX) is an actively managed Allocation Moderate Allocation fund. Franklin Templeton Investments launched the fund in 2003.

The investment seeks total return. The fund allocates 45% to 75% of its assets in equities and 25% to 55% in fixed income securities. It invests mainly in equity securities (growth or value stocks or both) of both U.S. and foreign companies of any size. The fund also invests in fixed-income investments, including U.S. and foreign government obligations, corporate obligations and securitized debt instruments (such as mortgage-backed investments).

About Putnam Dynamic Asset Allocation Bal R (PAARX)

There are 4 members of the management team with an average tenure of 3.44 years: Thomas Nelson (2025), Adrian Chan (2021), Brett Goldstein (2019), Laura Green (2026). Management tenure is more important for actively managed funds than passive index funds.

The fund has 6 primary benchmarks: Russell 3000 TR USD index with a weighting of 100%, Bloomberg US Corp HY TR USD index with a weighting of 2%, Bloomberg Gbl Agg Ex USD TR Hdg USD index with a weighting of 6%, Bloomberg US Agg Bond TR USD index with a weighting of 32%, Russell 3000 TR USD index with a weighting of 48% and MSCI ACWI Ex USA NR USD index with a weighting of 12%. Putnam Dynamic Asset Allocation Bal R has 2319 securities in its portfolio. The top 10 holdings constitute 45.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Putnam Dynamic Asset Allocation Bal R is part of the Allocation global asset class and is within the Allocation fund group. Putnam Dynamic Asset Allocation Bal R has 18.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 49.4%. There is 10.5% allocated to foreign stock, and 0.2% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 40.5% (32.5% domestic bond, 8.0% foreign bond and 0.0% convertible bond). Putnam Dynamic Asset Allocation Bal R has -0.6% of the portfolio in cash.

Assets Under Management

The fund has $17 million in total assets, which is below the $2 billion average for the Moderate Allocation category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PAARX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Putnam Dynamic Asset Allocation Bal R expense ratio is high compared to funds in the Moderate Allocation category. Putnam Dynamic Asset Allocation Bal R has an expense ratio of 1.15%, which is 16% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Putnam Dynamic Asset Allocation Bal R has a portfolio turnover rate of 158%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 52% for the Moderate Allocation category.

Recently, in the month of June 2026, Putnam Dynamic Asset Allocation Bal R returned 0.6%, which earned it a grade of B, as the Moderate Allocation category had an average return of 0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Putnam Dynamic Asset Allocation Bal R has a trailing yield of 2.43%, which is above the 1.97% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Putnam Dynamic Asset Allocation Bal R Grades

Year to date, the fund has returned 7.3%, 0.6 percentage points better than the category, which translates into a grade of C. The fund has returned 15.5% over the past year (grade of B), 15.1% over the past three years (grade of A) and 7.7% per year over the past five years (grade of B) and 8.8% per year over the past 10 years (grade of C).

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