N-Q 1 a_fundstrust.htm PUTNAM FUNDS TRUST a_fundstrust.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM N-Q
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT 
INVESTMENT COMPANY
 
Investment Company Act file number: (811-07513)   
 
Exact name of registrant as specified in charter:  Putnam Funds Trust 
 
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109 
 
Name and address of agent for service:  Beth S. Mazor, Vice President 
  One Post Office Square 
  Boston, Massachusetts 02109 
 
Copy to:  John W. Gerstmayr, Esq. 
  Ropes & Gray LLP 
  800 Boylston Street 
  Boston, Massachusetts 02199-3600 
 
Registrant’s telephone number, including area code:  (617) 292-1000 
 
Date of fiscal year end: June 30, 2011     
 
Date of reporting period: September 30, 2010     

Item 1. Schedule of Investments:


Putnam International Value Fund    
The fund's portfolio     
9/30/10 (Unaudited)     
 
COMMON STOCKS (96.1%)(a)     
  Shares  Value 
 
Airlines (1.5%)     
Qantas Airways, Ltd. (Australia) (NON)  558,042  $1,505,558 
Singapore Airlines, Ltd. (Singapore)  226,540  2,811,187 
    4,316,745 
 
Automotive (4.3%)     
Fiat SpA (Italy)  126,916  1,959,716 
Nissan Motor Co., Ltd. (Japan) (NON)  615,700  5,382,484 
Porsche Automobil Holding SE (Preference) (Germany)  20,851  1,033,149 
Valeo SA (France) (NON)  67,420  3,125,405 
Volkswagen AG (Preference) (Germany)  9,747  1,177,041 
    12,677,795 
 
Banking (17.4%)     
Banco Bradesco SA ADR (Brazil) (S)  122,015  2,486,666 
Banco Santander Central Hispano SA (Spain)  444,843  5,653,445 
Barclays PLC (United Kingdom)  913,466  4,300,930 
BNP Paribas SA (France)  80,229  5,709,295 
China Construction Bank Corp. (China)  2,452,000  2,148,978 
Danske Bank A/S (Denmark) (NON)  152,907  3,691,452 
Governor & Co. of The Bank of Ireland (The) (Ireland)     
(NON)  1,417,154  1,198,503 
Governor & Co. of The Bank of Ireland (The) ADR     
(Ireland) (S) (NON)  42,008  142,827 
HSBC Holdings PLC (London Exchange) (United Kingdom)  934,969  9,477,311 
Mitsubishi UFJ Financial Group, Inc. (Japan)  281,500  1,313,149 
Mizuho Financial Group, Inc. (Japan)  1,041,200  1,523,281 
National Australia Bank, Ltd. (Australia)  61,890  1,516,539 
National Bank of Canada (Canada)  62,320  3,937,372 
National Bank of Greece SA (Greece) (NON)  64,262  628,498 
National Bank of Greece SA (Rights) (Greece)  64,262  31,556 
National Bank of Greece SA (Rights) (Greece) (NON)  64,262  60,483 
Royal Bank of Canada (Canada)  39,779  2,074,299 
Societe Generale (France)  28,572  1,646,636 
Sumitomo Mitsui Financial Group, Inc. (Japan)  120,900  3,525,948 
    51,067,168 
 
Beverage (1.2%)     
Anheuser-Busch InBev NV (Belgium)  27,925  1,643,631 
Britvic PLC (United Kingdom)  244,918  1,867,539 
    3,511,170 
 
Biotechnology (0.1%)     
Sinovac Biotech, Ltd. (China) (NON) (S)  108,842  422,307 
    422,307 
 
Broadcasting (1.1%)     
Mediaset SpA (Italy)  448,940  3,184,358 
    3,184,358 
 
Cable television (0.8%)     
Kabel Deutschland Holding AG (Germany) (NON)  57,164  2,269,060 
    2,269,060 
 
Chemicals (2.7%)     
BASF SE (Germany)  33,926  2,140,532 
Lanxess AG (Germany)  34,450  1,888,589 
Nitto Denko Corp. (Japan)  46,600  1,824,547 
Syngenta AG (Switzerland)  7,740  1,925,636 
    7,779,304 
 
Commercial and consumer services (1.9%)     
Edenred (France) (NON)  124,101  2,459,638 
Kloeckner & Co., AG (Germany) (NON)  71,973  1,620,375 
LG Corp. (South Korea)  20,723  1,499,362 
    5,579,375 
 
Computers (0.9%)     
Fujitsu, Ltd. (Japan)  378,000  2,656,290 
    2,656,290 
 
Conglomerates (1.8%)     
Mitsui & Co., Ltd. (Japan)  253,000  3,768,150 
Vivendi (France)  51,018  1,395,302 
    5,163,452 
 
Construction (1.4%)     
Carillion PLC (United Kingdom)  427,465  2,106,039 

 


HeidelbergCement AG (Germany)  41,028  1,978,336 
    4,084,375 
 
Consumer (0.4%)     
Christian Dior SA (France)  8,049  1,052,689 
    1,052,689 
 
Consumer goods (1.5%)     
Henkel AG & Co. KGaA (Germany)  36,811  1,978,355 
Reckitt Benckiser Group PLC (United Kingdom)  45,115  2,482,226 
    4,460,581 
 
Electric utilities (2.1%)     
Atco, Ltd. Class I (Canada)  44,400  2,332,977 
CEZ AS (Czech Republic)  58,826  2,635,042 
Fortum OYJ (Finland)  48,236  1,262,631 
    6,230,650 
 
Electrical equipment (1.9%)     
LS Corp. (South Korea)  14,525  1,490,397 
Mitsubishi Electric Corp. (Japan)  317,000  2,729,416 
Prysmian SpA (Italy)  80,368  1,468,988 
    5,688,801 
 
Electronics (2.1%)     
Compal Electronics, Inc. (Taiwan)  1,666,238  1,992,029 
Garmin, Ltd. (S)  40,800  1,238,280 
Venture Corp., Ltd. (Singapore)  385,000  2,874,729 
    6,105,038 
 
Energy (other) (0.4%)     
China WindPower Group, Ltd. (China) (NON)  9,150,000  1,037,783 
    1,037,783 
 
Engineering and construction (0.9%)     
Vinci SA (France)  50,157  2,515,680 
    2,515,680 
 
Financial (0.9%)     
Irish Life & Permanent PLC (Ireland) (NON)  195,004  369,733 
ORIX Corp. (Japan)  28,710  2,196,544 
    2,566,277 
 
Food (2.2%)     
Kerry Group PLC Class A (Ireland)  97,998  3,440,105 
Toyo Suisan Kaisha, Ltd. (Japan)  149,000  3,075,057 
    6,515,162 
 
Homebuilding (0.6%)     
Persimmon PLC (United Kingdom) (NON)  287,796  1,806,430 
    1,806,430 
 
Insurance (7.3%)     
ACE, Ltd.  52,686  3,068,960 
Allianz SE (Germany)  14,490  1,638,526 
AXA SA (France)  236,510  4,137,492 
ING Groep NV (Netherlands) (NON)  430,626  4,470,079 
Prudential PLC (United Kingdom)  311,441  3,115,318 
Zurich Financial Services AG (Switzerland)  21,605  5,069,157 
    21,499,532 
 
Investment banking/Brokerage (0.5%)     
Credit Suisse Group (Switzerland)  32,944  1,409,656 
    1,409,656 
 
Lodging/Tourism (0.7%)     
TUI Travel PLC (United Kingdom)  574,587  1,936,015 
    1,936,015 
 
Machinery (--%)     
Lonking Holdings, Ltd. (China)  63,000  63,659 
    63,659 
 
Manufacturing (0.5%)     
Smiths Group PLC (United Kingdom)  73,929  1,416,272 
    1,416,272 
 
Media (0.7%)     
WPP PLC (Ireland)  192,080  2,126,627 
    2,126,627 

 


Metals (3.1%)     
Rio Tinto PLC (United Kingdom)  57,541  3,364,847 
Teck Resources, Ltd. Class B (Canada)  66,900  2,754,897 
Xstrata PLC (United Kingdom)  149,934  2,869,959 
    8,989,703 
 
Natural gas utilities (2.1%)     
Centrica PLC (United Kingdom)  448,234  2,278,806 
GDF Suez (France)  49,514  1,773,589 
Tokyo Gas Co., Ltd. (Japan)  466,000  2,117,928 
    6,170,323 
 
Office equipment and supplies (1.2%)     
Canon, Inc. (Japan)  77,700  3,629,230 
    3,629,230 
 
Oil and gas (8.7%)     
BP PLC (United Kingdom)  704,841  4,738,710 
Nexen, Inc. (Canada)  151,515  3,051,824 
Petroleo Brasileiro SA ADR (Brazil) (S)  92,000  3,336,840 
Royal Dutch Shell PLC Class B (United Kingdom)  256,675  7,490,722 
Statoil ASA (Norway)  101,582  2,121,695 
Technip SA (France)  11,968  963,009 
Total SA (France)  74,364  3,834,796 
    25,537,596 
 
Pharmaceuticals (6.8%)     
Fujirebio, Inc. (Japan)  96,500  3,419,565 
Miraca Holdings, Inc. (Japan)  76,400  2,762,274 
Novartis AG (Switzerland)  131,003  7,520,777 
Roche Holding AG (Switzerland)  8,038  1,098,976 
Sanofi-Aventis (France)  54,859  3,657,336 
UCB SA (Belgium)  37,891  1,313,580 
    19,772,508 
 
Photography/Imaging (0.4%)     
Altek Corp. (Taiwan)  829,418  1,231,855 
    1,231,855 
 
Publishing (0.3%)     
United Business Media, Ltd. PLC (Ireland)  100,597  995,197 
    995,197 
 
Real estate (2.6%)     
Brookfield Properties Corp. (Canada) (R)  165,508  2,588,025 
Dexus Property Group (Australia)  1,297,177  1,072,486 
Japan Retail Fund Investment Corp. (Japan) (R)  1,744  2,457,369 
Soho China, Ltd. (China)  2,067,500  1,468,249 
    7,586,129 
 
Retail (1.9%)     
Grupo Comercial Chedraui SA de CV (Mexico) (NON)  146,741  422,467 
JB Hi-Fi, Ltd. (Australia) (S)  49,559  990,101 
Myer Holdings, Ltd. (Australia)  181,608  660,312 
PCD Stores, Ltd. (China) (NON)  5,836,000  1,842,824 
PPR SA (France)  9,504  1,539,467 
    5,455,171 
 
Software (1.1%)     
Longtop Financial Technologies Ltd. ADR (Hong Kong)     
(NON) (S)  81,437  3,204,546 
    3,204,546 
 
Telecommunications (3.9%)     
BCE, Inc. (Canada) (S)  117,893  3,840,671 
China Mobile, Ltd. (China)  161,500  1,653,746 
Tele2 AB Class B (Sweden)  107,659  2,258,893 
Vodafone Group PLC (United Kingdom)  1,477,587  3,648,022 
    11,401,332 
 
Telephone (1.1%)     
Nippon Telegraph & Telephone (NTT) Corp. (Japan)  75,800  3,313,239 
    3,313,239 
 
Tobacco (1.0%)     
Japan Tobacco, Inc. (Japan)  865  2,882,642 
    2,882,642 
 
Transportation services (1.8%)     
ComfortDelgro Corp., Ltd. (Singapore)  1,584,000  1,830,727 
Deutsche Post AG (Germany)  123,687  2,244,756 
TNT NV (Netherlands)  40,794  1,096,764 
    5,172,247 

 


Trucks and parts (1.4%)     
Aisin Seiki Co., Ltd. (Japan)  93,100  2,907,212 
Toyoda Gosei Co., Ltd. (Japan)  55,200  1,217,988 
    4,125,200 
 
Water Utilities (0.9%)     
Guangdong Investment, Ltd. (China)  4,984,000  2,601,571 
    2,601,571 
Total common stocks (cost $248,352,570)    $281,210,740 
 
 
U.S. TREASURY OBLIGATIONS (0.3%)(a)     
  Principal amount  Value 
U.S. Treasury Notes 4.5s, June 25, 2037 (i)  $480,071  $516,426 
U.S. Treasury Notes 3s, August 25, 2040 (i)  268,894  278,266 
Total U.S. treasury obligations (cost $794,692)    $794,692 
 
 
SHORT-TERM INVESTMENTS (6.4%)(a)     
  Principal amount/shares  Value 
Putnam Cash Collateral Pool, LLC 0.22% (d)  12,875,333  $12,875,333 
Putnam Money Market Liquidity Fund 0.15% (e)  5,023,286  5,023,286 
U.S. Treasury Bills for an effective yield 0.23%,     
July 28, 2011 (SEGSF)  181,000  180,652 
U.S. Treasury Bills with effective yields ranging from     
0.17% to 0.31%, March 10, 2011 (SEGSF)  525,000  524,575 
U.S. Treasury Bills with effective yields ranging from     
0.22% to 0.23%, December 16, 2010 (SEGSF)  121,000  120,967 
U.S. Treasury Bills with effective yields ranging from     
0.16% to 0.36%, November 18, 2010 (SEGSF)  109,000  108,947 
Total short-term investments (cost $18,833,487)    $18,833,760 
 
 
TOTAL INVESTMENTS     
Total investments (cost $267,980,749)(b)    $300,839,192 

 


FORWARD CURRENCY CONTRACTS at 9/30/10 (aggregate face value $198,691,590) (Unaudited)  
            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type  date  Value  face value  (depreciation) 
Bank of America, N.A.             
  Australian Dollar  Buy  10/20/10  $9,492,174  $8,896,973  $595,201 
  British Pound  Sell  10/20/10  3,058,648  3,006,564  (52,084) 
  Canadian Dollar  Buy  10/20/10  5,152,188  5,135,789  16,399 
  Euro  Sell  10/20/10  2,657,382  2,493,855  (163,527) 
  Norwegian Krone  Buy  10/20/10  1,048,310  998,574  49,736 
  Swedish Krona  Buy  10/20/10  4,697,315  4,356,537  340,778 
  Swiss Franc  Sell  10/20/10  231,712  230,856  (856) 
 
Barclays Bank PLC             
  Australian Dollar  Sell  10/20/10  1,431,865  1,342,155  (89,710) 
  British Pound  Sell  10/20/10  3,033,978  2,982,507  (51,471) 
  Euro  Sell  10/20/10  749,315  702,935  (46,380) 
  Hong Kong Dollar  Sell  10/20/10  1,105,050  1,105,234  184 
  Japanese Yen  Sell  10/20/10  5,597,121  5,541,830  (55,291) 
  Swiss Franc  Buy  10/20/10  364,789  353,895  10,894 
 
Citibank, N.A.             
  British Pound  Buy  10/20/10  4,974,291  4,890,472  83,819 
  Danish Krone  Sell  10/20/10  652,150  609,532  (42,618) 
  Euro  Sell  10/20/10  13,838,053  12,984,573  (853,480) 
  Hong Kong Dollar  Sell  10/20/10  735,265  734,242  (1,023) 
  Norwegian Krone  Buy  10/20/10  3,497,875  3,334,733  163,142 
  Singapore Dollar  Sell  10/20/10  1,747,788  1,711,339  (36,449) 
  Swiss Franc  Sell  10/20/10  1,793,884  1,740,502  (53,382) 
 
Credit Suisse AG             
  Australian Dollar  Sell  10/20/10  1,112,526  1,042,477  (70,049) 
  British Pound  Sell  10/20/10  5,690,516  5,593,977  (96,539) 
  Canadian Dollar  Buy  10/20/10  929,316  906,649  22,667 
  Euro  Sell  10/20/10  3,957,159  3,713,473  (243,686) 
  Japanese Yen  Buy  10/20/10  3,099,955  3,070,007  29,948 
  Norwegian Krone  Sell  10/20/10  502,189  478,856  (23,333) 
  Swedish Krona  Buy  10/20/10  5,385,790  4,995,271  390,519 
  Swiss Franc  Buy  10/20/10  350,523  340,022  10,501 
 
Deutsche Bank AG             
  Australian Dollar  Sell  10/20/10  3,692,238  3,459,761  (232,477) 
  Canadian Dollar  Buy  10/20/10  1,132,513  1,105,173  27,340 
  Euro  Buy  10/20/10  4,287,763  4,024,253  263,510 
 
Goldman Sachs International             
  Australian Dollar  Buy  10/20/10  2,270,410  2,127,386  143,024 
  British Pound  Sell  10/20/10  2,431,205  2,390,362  (40,843) 
  Euro  Buy  10/20/10  36,825  34,563  2,262 
  Japanese Yen  Sell  10/20/10  248,649  241,973  (6,676) 
  Norwegian Krone  Sell  10/20/10  640,820  610,526  (30,294) 
  Swedish Krona  Buy  10/20/10  205,841  191,184  14,657 
 
HSBC Bank USA, National Association  
  Australian Dollar  Buy  10/20/10  2,375,216  2,226,869  148,347 
  British Pound  Buy  10/20/10  1,836,446  1,851,408  (14,962) 
  Euro  Sell  10/20/10  4,416,786  4,144,990  (271,796) 
  Hong Kong Dollar  Sell  10/20/10  1,174,150  1,173,113  (1,037) 
  Norwegian Krone  Buy  10/20/10  655,770  625,276  30,494 
  Swiss Franc  Buy  10/20/10  907,896  880,722  27,174 
 
JPMorgan Chase Bank, N.A.  
  Australian Dollar  Buy  10/20/10  3,545,645  3,322,913  222,732 
  British Pound  Buy  10/20/10  3,909,067  3,843,534  65,533 
  Canadian Dollar  Sell  10/20/10  784,384  764,977  (19,407) 
  Euro  Buy  10/20/10  544,324  510,798  33,526 
  Hong Kong Dollar  Sell  10/20/10  940,285  939,037  (1,248) 
  Japanese Yen  Buy  10/20/10  7,588,186  7,504,851  83,335 
  Norwegian Krone  Sell  10/20/10  2,905,306  2,769,308  (135,998) 
  Singapore Dollar  Sell  10/20/10  692,728  678,597  (14,131) 
  Swedish Krona  Sell  10/20/10  4,166,941  3,865,836  (301,105) 
  Swiss Franc  Sell  10/20/10  1,429,197  1,386,379  (42,818) 
 
Royal Bank of Scotland PLC (The)  
  Australian Dollar  Buy  10/20/10  2,853,984  2,672,187  181,797 
  British Pound  Buy  10/20/10  31,899  31,367  532 
  Canadian Dollar  Sell  10/20/10  2,820,533  2,753,751  (66,782) 
  Euro  Buy  10/20/10  1,214,261  1,139,028  75,233 
  Japanese Yen  Buy  10/20/10  13,761,134  13,614,609  146,525 
  Swiss Franc  Buy  10/20/10  2,926,665  2,838,844  87,821 
 
State Street Bank and Trust Co.  
  Australian Dollar  Buy  10/20/10  1,028,083  963,351  64,732 
  Canadian Dollar  Buy  10/20/10  141,917  138,397  3,520 
  Euro  Buy  10/20/10  1,811,640  1,700,118  111,522 
 
UBS AG  
  Australian Dollar  Sell  10/20/10  2,470,757  2,315,496  (155,261) 
  British Pound  Buy  10/20/10  105,595  103,817  1,778 
  Canadian Dollar  Buy  10/20/10  98,145  95,740  2,405 
  Euro  Buy  10/20/10  6,892,499  6,467,951  424,548 
  Norwegian Krone  Sell  10/20/10  886,378  844,881  (41,497) 
  Swiss Franc  Buy  10/20/10  1,056,665  1,024,906  31,759 
 
Westpac Banking Corp.  
  Australian Dollar  Buy  10/20/10  3,132,115  2,935,198  196,917 
  British Pound  Sell  10/20/10  1,878,087  1,846,357  (31,730) 
  Canadian Dollar  Buy  10/20/10  925,912  903,864  22,048 
  Euro  Buy  10/20/10  5,285,304  4,961,225  324,079 
  Japanese Yen  Sell  10/20/10  17,562,566  17,372,885  (189,681) 
Total $973,317 

 


Key to holding's abbreviations

ADR  American Depository Receipts 

 

Notes to the fund's portfolio

Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from July 1, 2010 through September 30, 2010 (the reporting period).

(a) Percentages indicated are based on net assets of $292,688,142.

(b) The aggregate identified cost on a tax basis is $279,394,058, resulting in gross unrealized appreciation and depreciation of $34,418,762 and $12,973,628, respectively, or net unrealized appreciation of $21,445,134

(NON) Non-income-producing security.

(d) The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. At the close of the reporting period, the value of securities loaned amounted to $12,556,763. The fund received cash collateral of $12,875,333 which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Investment Management, LLC (Putnam Management), the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged by Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close fo the reporting period.

(e) The fund invested in Putnam Money Market Liquidity Fund, an open-end management investment company managed by Putnam Investment Management, LLC (Putnam Management), the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC. Investments in Putnam Money Market Liquidity Fund are valued at its closing net asset value each business day. Income distributions earned by the fund are recorded as interest income and totaled $177 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $19,566,835 and $14,543,549, respectively. Management fees charged to Putnam Money Market Liquidity Fund have been waived by Putnam Management. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.

(R) Real Estate Investment Trust.

(S) Securities on loan, in part or in entirety, at the close of the reporting period.

At the close of the reporting period, the fund maintained liquid assets totaling $1,133,822 to cover certain derivatives contracts.

ADR after the name of a foreign holding represents ownership of foreign securities on deposit with a custodian bank.

The dates shown on debt obligations are the original maturity dates.

DIVERSIFICATION BY COUNTRY   
 
 
Distribution of investments by country of risk at the close of the reporting period (as a percentage of Portfolio Value):   
 
 
United Kingdom  18.4 % 
Japan  18.4 
France  11.8 
Canada  7.2 
Germany  6.2 
United States  4.0 
Switzerland  5.9 
China  3.9 
Ireland  2.9 
Singapore  2.6 
Italy  2.3 
Brazil  2.0 
Australia  2.0 
Spain  1.9 
Netherlands  1.9 
Denmark  1.3 
Taiwan  1.1 
Hong Kong  1.1 
South Korea  1.0 
Belgium  1.0 
Czech Republic  0.9 
Sweden  0.8 
Norway  0.7 
Finland  0.4 
Greece  0.2 
Mexico  0.1 
Total  100.0% 

 

Security valuation: Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets and are classified as Level 1 securities. If no sales are reported -- as in the case of some securities traded over-the-counter -- a security is valued at its last reported bid price and is generally categorized as a Level 2 security. Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which will generally represent a transfer from a Level 1 to a Level 2 security, will be classified as Level 2. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Investment Management, LLC (Putnam Management), the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC, does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could


reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.

Forward currency contracts: The fund may buy and sell forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts are used to protect against a decline in value relative to the U.S. dollar of the currencies in which its portfolio securities are denominated or quoted (or an increase in the value of a currency in which securities a fund intends to buy are denominated, when a fund holds cash reserves and short term investments), or for other investment purposes. The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in market value is recorded as an unrealized gain or loss. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position.

Outstanding contracts on forward currency contracts at the close of the reporting period are indicative of the volume of activity during the period.

Master agreements: The fund is a party to ISDA (International Swap and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern over the counter derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the fund’s portfolio. Collateral posted to the fund which cannot be sold or repledged totaled 352,183 at the close of the reporting period. Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty. Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund's future derivative activity.

At the close of the reporting period, the fund had a net liability position of $1,163,126 on derivative contracts subject to the Master Agreements. Collateral posted by the fund totaled $935,178.


Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures (ASC 820) establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 – Valuations based on inputs that are unobservable and significant to the fair value measurement.

The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:

    Valuation inputs  
Investments in securities:  Level 1  Level 2  Level 3 
Common stocks:       
Basic materials  $20,853,382  $--  $-- 
Capital goods  17,438,842  --  -- 
Communication services  16,983,631  --  -- 
Conglomerates  5,163,452  --  -- 
Consumer cyclicals  34,813,657  --  -- 
Consumer staples  17,369,555  --  -- 
Energy  26,575,379  --  -- 
Financial  84,128,762  --  -- 
Health care  20,194,815  --  -- 
Technology  13,197,729  --  -- 
Transportation  9,488,992  --  -- 
Utilities and power  15,002,544  --  -- 
Total common stocks  281,210,740  --  -- 
U.S. Treasury Obligations    794,692   
Short-term investments  5,023,286  13,810,474  -- 
Totals by level  $286,234,026  $14,605,166  $-- 
 
 
 
 
    Valuation inputs  
Other financial instruments:  Level 1  Level 2  Level 3 
Forward currency contracts  --  973,317  -- 
Totals by level  $--  $973,317  $-- 

 

Market Values of Derivative Instruments as of the close of the reporting period

  Asset derivatives  Liability derivatives 
 
Derivatives not accounted for as hedging instruments under ASC 815  Market value  Market value 
Foreign exchange contracts  $4,450,938  $3,477,621 
Total  $4,450,938  $3,477,621 

 

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com


Item 2. Controls and Procedures:

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

(b) Changes in internal control over financial reporting: Not applicable

Item 3. Exhibits:

Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam Funds Trust

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: November 24, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):

/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: November 24, 2010

By (Signature and Title):

/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: November 24, 2010


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549

 

FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT 
INVESTMENT COMPANY
Investment Company Act file number: (811-07513)   
Exact name of registrant as specified in charter:  Putnam Funds Trust 
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109 
Name and address of agent for service:  Beth S. Mazor, Vice President 
  One Post Office Square 
  Boston, Massachusetts 02109 
Copy to:  John W. Gerstmayr, Esq. 
  Ropes & Gray LLP 
  800 Boylston Street 
  Boston, Massachusetts 02199-3600 
Registrant’s telephone number, including area code:  (617) 292-1000 
Date of fiscal year end: June 30, 2011     
Date of reporting period: September 30, 2010     

 

Item 1. Schedule of Investments:


Putnam Small Cap Growth Fund     
The fund's portfolio     
9/30/10 (Unaudited)     
COMMON STOCKS (93.2%)(a)     
  Shares  Value 
 
Advertising and marketing services (0.9%)     
Nu Skin Enterprises, Inc. Class A  17,700  $509,760 
ValueClick, Inc. (NON)  44,500  582,060 
    1,091,820 
 
Aerospace and defense (0.7%)     
Sturm Ruger & Co., Inc. (S)  59,500  811,580 
    811,580 
 
Agriculture (0.6%)     
Andersons, Inc. (The)  19,300  731,470 
    731,470 
 
Airlines (1.5%)     
Alaska Air Group, Inc. (NON)  9,900  505,197 
Republic Airways Holdings, Inc. (NON) (S)  64,400  533,232 
UAL Corp. (NON) (S)  21,800  515,134 
US Airways Group, Inc. (NON) (S)  32,400  299,700 
    1,853,263 
 
Biotechnology (4.6%)     
Alexion Pharmaceuticals, Inc. (NON)  11,300  727,268 
Amylin Pharmaceuticals, Inc. (NON)  19,300  402,405 
Auxilium Pharmaceuticals, Inc. (NON) (S)  15,300  379,134 
BioMarin Pharmaceuticals, Inc. (NON)  16,700  373,245 
Cubist Pharmaceuticals, Inc. (NON)  19,900  465,461 
Exelixis, Inc. (NON)  30,632  120,077 
Ironwood Pharmaceuticals, Inc. (NON)  23,200  236,176 
Momenta Pharmaceuticals, Inc. (NON) (S)  18,300  275,415 
Nabi Biopharmaceuticals (NON)  88,698  425,750 
Sequenom, Inc. (NON) (S)  63,600  445,836 
United Therapeutics Corp. (NON)  18,400  1,030,584 
Viropharma, Inc. (NON)  40,100  597,891 
    5,479,242 
 
Broadcasting (2.0%)     
DG FastChannel, Inc. (NON)  21,500  467,625 
EchoStar Corp. Class A (NON)  68,900  1,314,612 
Knology, Inc. (NON)  42,300  568,089 
    2,350,326 
 
Cable television (0.5%)     
HSN, Inc. (NON)  19,800  592,020 
    592,020 
 
Chemicals (5.3%)     
Ferro Corp. (NON)  63,700  821,093 
Koppers Holdings, Inc.  32,900  884,023 
Minerals Technologies, Inc.  16,200  954,504 
NewMarket Corp.  4,500  511,560 
OM Group, Inc. (NON)  20,300  611,436 
Quaker Chemical Corp.  10,300  335,368 
Stepan, Co.  7,300  431,503 
W.R. Grace & Co. (NON)  66,000  1,844,040 
    6,393,527 
 
Coal (0.5%)     
Walter Energy, Inc.  7,800  634,062 
    634,062 
 
Commercial and consumer services (1.7%)     
Emergency Medical Services Corp. Class A (NON)  12,559  668,767 
EZCORP, Inc. Class A (NON)  16  321 
Great Lakes Dredge & Dock Co.  95,400  554,274 
Orbitz Worldwide, Inc. (NON)  81,000  510,300 
Sotheby's Holdings, Inc. Class A  10,000  368,200 
    2,101,862 
 
Communications equipment (2.1%)     
ARRIS Group, Inc. (NON)  40,633  396,984 
Plantronics, Inc.  47,400  1,601,172 
Syniverse Holdings, Inc. (NON)  24,400  553,148 
    2,551,304 
 
Computers (8.0%)     
Anixter International, Inc. (NON)  13,700  739,663 
Brocade Communications Systems, Inc. (NON)  151,200  883,008 
Checkpoint Systems, Inc. (NON)  41,000  834,350 

 


Ixia (NON)  47,300  586,520 
Magma Design Automation, Inc. (NON)  119,200  441,040 
Monotype Imaging Holdings, Inc. (NON)  44,200  404,430 
National Instruments Corp.  15,000  489,900 
Polycom, Inc. (NON)  33,700  919,336 
Quest Software, Inc. (NON)  65,900  1,620,481 
Silicon Graphics International Corp. (NON)  30,600  237,456 
SMART Modular Technologies (WWH), Inc. (NON)  88,700  534,861 
Synchronoss Technologies, Inc. (NON)  20,300  361,543 
VeriFone Systems, Inc. (NON)  25,000  776,750 
Xyratex, Ltd. (United Kingdom) (NON)  50,700  752,388 
    9,581,726 
 
Consumer finance (1.2%)     
Cardtronics, Inc. (NON)  32,200  496,846 
Dollar Financial Corp. (NON)  21,800  454,966 
Nelnet, Inc. Class A  20,200  462,176 
    1,413,988 
 
Consumer goods (0.9%)     
hhgregg, Inc. (NON) (S)  26,100  646,236 
Revlon, Inc. Class A (NON)  30,100  379,862 
    1,026,098 
 
Consumer services (1.5%)     
Avis Budget Group, Inc. (NON)  107,400  1,251,210 
WebMD Health Corp. (NON)  10,456  521,441 
    1,772,651 
 
Electrical equipment (0.5%)     
II-VI, Inc. (NON)  7,700  287,441 
Insteel Industries, Inc.  28,500  255,930 
    543,371 
 
Electronics (5.7%)     
Cavium Networks, Inc. (NON) (S)  71,100  2,044,835 
DDi Corp.  31,100  287,364 
Elster Group SE ADR (Germany) (NON)  13,200  171,600 
Integrated Device Technology, Inc. (NON)  87,800  513,630 
Integrated Silicon Solutions, Inc. (NON)  44,000  378,840 
PMC - Sierra, Inc. (NON)  78,200  575,552 
Rubicon Technology, Inc. (NON) (S)  14,400  326,736 
Sanmina-SCI Corp. (NON)  35,400  427,632 
Silicon Laboratories, Inc. (NON) (S)  29,500  1,081,175 
Skyworks Solutions, Inc. (NON)  28,200  583,176 
TTM Technologies, Inc. (NON)  47,100  461,109 
    6,851,649 
 
Energy (oil field) (1.7%)     
Cal Dive International, Inc. (NON)  62,200  340,234 
Helix Energy Solutions Group, Inc. (NON)  44,400  494,616 
Oceaneering International, Inc. (NON)  10,300  554,758 
TETRA Technologies, Inc. (NON)  64,300  655,860 
    2,045,468 
 
Energy (other) (0.3%)     
GT Solar International, Inc. (NON) (S)  46,200  386,694 
    386,694 
 
Engineering and construction (0.3%)     
EMCOR Group, Inc. (NON)  16,200  398,358 
    398,358 
 
Entertainment (0.6%)     
Cinemark Holdings, Inc.  23,200  373,520 
National CineMedia, Inc.  19,600  350,840 
    724,360 
 
Environmental (0.4%)     
Tetra Tech, Inc. (NON)  25,200  528,444 
    528,444 
 
Financial (2.4%)     
AerCap Holdings NV (Netherlands) (NON)  148,707  1,759,204 
BGC Partners, Inc. Class A  179,700  1,072,809 
    2,832,013 
 
Forest products and packaging (1.0%)     
Boise, Inc. (NON)  89,100  578,259 
KapStone Paper and Packaging Corp. (NON)  33,700  409,118 
Neenah Paper, Inc.  17,443  265,134 
    1,252,511 
 
Gaming and lottery (0.7%)     
Bally Technologies, Inc. (NON)  23,800  831,810 

 


    831,810 
 
 
Health-care services (3.2%)     
Continucare Corp. (NON)  83,300  349,860 
Gentiva Health Services, Inc. (NON)  18,500  404,225 
Health Management Associates, Inc. Class A (NON)  68,300  523,178 
HealthSouth Corp. (NON)  38,600  741,120 
Lincare Holdings, Inc.  21,000  526,890 
Magellan Health Services, Inc. (NON)  13,900  656,636 
Providence Service Corp. (The) (NON)  24,500  401,555 
Sciclone Pharmaceuticals, Inc. (NON)  73,500  194,040 
    3,797,504 
 
Household furniture and appliances (0.8%)     
Select Comfort Corp. (NON)  86,200  584,436 
Tempur-Pedic International, Inc. (NON)  11,100  344,100 
    928,536 
 
Insurance (0.4%)     
Assured Guaranty, Ltd. (Bermuda)  29,000  496,190 
    496,190 
 
Machinery (2.1%)     
Applied Industrial Technologies, Inc.  20,900  639,540 
DXP Enterprises, Inc. (NON)  36,400  690,872 
Lindsay Corp. (S)  20,500  888,060 
NACCO Industries, Inc. Class A  3,300  288,387 
    2,506,859 
 
Manufacturing (1.8%)     
Polypore International, Inc. (NON)  9,900  298,584 
Smith (A.O.) Corp.  10,700  619,423 
Standex International Corp.  15,700  379,783 
TriMas Corp. (NON)  28,300  420,255 
Trinity Industries, Inc.  20,200  449,854 
    2,167,899 
 
Medical technology (3.6%)     
AGA Medical Holdings, Inc. (NON) (S)  22,752  317,618 
Bruker Corp. (NON)  78,200  1,097,146 
Cooper Cos., Inc. (The)  18,400  850,448 
Medical Action Industries, Inc. (NON)  21,300  192,765 
MELA Sciences, Inc. (NON) (S)  45,700  297,964 
NxStage Medical, Inc. (NON) (S)  59,500  1,136,450 
OraSure Technologies, Inc. (NON)  108,400  439,020 
    4,331,411 
 
Metals (0.5%)     
Horsehead Holding Corp. (NON)  56,600  558,642 
    558,642 
 
Oil and gas (3.5%)     
Atwood Oceanics, Inc. (NON)  16,600  505,470 
Concho Resources, Inc. (NON)  19,000  1,257,230 
Petroquest Energy, Inc. (NON)  29,743  181,135 
Rosetta Resources, Inc. (NON) (S)  50,600  1,188,594 
Stone Energy Corp. (NON)  39,800  586,254 
W&T Offshore, Inc. (S)  41,609  441,055 
    4,159,738 
 
Pharmaceuticals (3.6%)     
Akorn, Inc. (NON)  74,200  299,768 
Cephalon, Inc. (NON)  5,700  355,908 
Endo Pharmaceuticals Holdings, Inc. (NON)  24,400  811,056 
Hi-Tech Pharmacal Co., Inc. (NON) (S)  34,800  704,352 
Impax Laboratories, Inc. (NON)  35,000  693,000 
Medicis Pharmaceutical Corp. Class A  22,000  652,300 
Salix Pharmaceuticals, Ltd. (NON)  15,814  628,132 
Somaxon Pharmaceuticals, Inc. (NON) (S)  50,200  195,278 
    4,339,794 
 
Real estate (0.3%)     
Chimera Investment Corp. (R)  99,800  394,210 
    394,210 
 
Restaurants (2.5%)     
AFC Enterprises (NON)  65,400  810,960 
DineEquity, Inc. (NON) (S)  13,600  611,728 
Domino's Pizza, Inc. (NON)  98,100  1,296,882 
Papa John's International, Inc. (NON)  3,100  81,778 
Ruth's Hospitality Group, Inc. (NON)  59,700  239,397 
    3,040,745 
 
Retail (5.1%)     
Aeropostale, Inc. (NON)  20,700  481,275 
AnnTaylor Stores Corp. (NON)  34,200  692,208 

 


Big Lots, Inc. (NON)  15,100  502,075 
DSW, Inc. Class A (NON) (S)  23,000  660,100 
Genesco, Inc. (NON)  12,300  367,524 
Jo-Ann Stores, Inc. (NON)  19,385  863,602 
Kirkland's, Inc. (NON)  23,300  322,938 
OfficeMax, Inc. (NON)  40,200  526,218 
Schiff Nutrition International, Inc. (S)  28,700  235,340 
Talbots, Inc. (The) (NON) (S)  51,000  668,100 
Tractor Supply Co.  21,200  840,792 
    6,160,172 
 
Schools (1.4%)     
Career Education Corp. (NON)  25,500  547,485 
ITT Educational Services, Inc. (NON) (S)  7,400  519,998 
Lincoln Educational Services Corp. (NON) (S)  40,100  577,841 
    1,645,324 
 
Semiconductor (0.4%)     
Entegris, Inc. (NON)  114,000  532,380 
    532,380 
 
Shipping (1.3%)     
CAI International, Inc. (NON)  50,800  770,636 
Wabtec Corp.  15,700  750,303 
    1,520,939 
 
Software (3.1%)     
Informatica Corp. (NON)  25,800  990,978 
Lawson Software, Inc. (NON)  59,100  500,577 
MedAssets, Inc. (NON)  34,300  721,672 
TIBCO Software, Inc. (NON)  85,100  1,509,674 
    3,722,901 
 
Technology (0.8%)     
Tech Data Corp. (NON)  23,400  943,020 
    943,020 
 
Technology services (3.1%)     
Acxiom Corp. (NON)  24,600  390,156 
Infospace, Inc. (NON)  45,800  396,628 
LivePerson, Inc. (NON)  172,400  1,448,160 
Travelzoo, Inc. (NON)  9,800  252,448 
Unisys Corp. (NON)  43,750  1,220,625 
    3,708,017 
 
Telecommunications (4.6%)     
ADTRAN, Inc.  24,200  854,260 
Aruba Networks, Inc. (NON)  59,300  1,265,462 
Iridium Communications, Inc. (NON) (S)  149,937  1,280,462 
j2 Global Communications, Inc. (NON)  27,600  656,604 
Loral Space & Communications, Inc. (NON)  14,000  730,800 
NeuStar, Inc. Class A (NON)  18,800  467,368 
Vonage Holdings Corp. (NON)  109,800  279,990 
    5,534,946 
 
Textiles (1.2%)     
Perry Ellis International, Inc. (NON)  21,108  461,210 
UniFirst Corp.  11,000  485,650 
Warnaco Group, Inc. (The) (NON)  10,800  552,204 
    1,499,064 
 
Transportation (2.0%)     
Fly Leasing, Ltd. ADR (Ireland)  64,100  846,120 
TAL International Group, Inc.  62,600  1,516,172 
    2,362,292 
 
Transportation services (0.6%)     
HUB Group, Inc. Class A (NON)  25,000  731,500 
    731,500 
 
Trucks and parts (1.7%)     
ArvinMeritor, Inc. (NON)  92,500  1,437,450 
Fuel Systems Solutions, Inc. (NON) (S)  16,500  645,315 
    2,082,765 
 
Total common stocks (cost $93,315,333)    $111,944,465 
 
INVESTMENT COMPANIES (4.8%)(a)     
  Shares  Value 
iShares Russell 2000 Growth Index Fund (S)  66,900  $5,000,106 
MCG Capital Corp.  123,200  719,488 
Total investment companies (cost $5,362,247)    $5,719,594 
 
SHORT-TERM INVESTMENTS (19.3%)(a)     
  Shares  Value 

 


Putnam Cash Collateral Pool, LLC 0.22% (d)  19,163,662  $19,163,662 
Putnam Money Market Liquidity Fund 0.15% (e)  4,058,668  4,058,668 
Total short-term investments (cost $23,222,330)    $23,222,330 
 
TOTAL INVESTMENTS     
Total investments (cost $121,899,910) (b)    $140,886,389 

 


Key to holding's abbreviations

ADR American Depository Receipts

Notes to the fund's portfolio

Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from July 1, 2010 through September 30, 2010 (the reporting period).

(a) Percentages indicated are based on net assets of $120,170,515.

(b) The aggregate identified cost on a tax basis is $122,176,815, resulting in gross unrealized appreciation and depreciation of $22,741,553 and $4,031,979, respectively, or net unrealized appreciation of $18,709,574.

(NON) Non-income-producing security.

(d) The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. At the close of the reporting period, the value of securities loaned amounted to $18,532,421. The fund received cash collateral of $19,163,662 which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Investment Management, LLC (Putnam Management), the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged by Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close fo the reporting period.

(e) The fund invested in Putnam Money Market Liquidity Fund, an open-end management investment company managed by Putnam Management. Investments in Putnam Money Market Liquidity Fund are valued at its closing net asset value each business day. Income distributions earned by the fund are recorded as interest income and totaled $1,087 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $17,401,454 and $17,149,900, respectively. Management fees charged to Putnam Money Market Liquidity Fund have been waived by Putnam Management. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.

(R) Real Estate Investment Trust.

(S) Securities on loan, in part or in entirety, at the close of the reporting period.

ADR after the name of a foreign holding represents ownership of foreign securities on deposit with a custodian bank.

Security valuation: Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets and are classified as Level 1 securities. If no sales are reported-- as in the case of some securities traded over-the-counter-- a security is valued at its last reported bid price and is generally categorized as a Level 2 security. Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which will generally represent a transfer from a Level 1 to a Level 2 security, will be classified as Level 2. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.


Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures (ASC 820) establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 – Valuations based on inputs that are unobservable and significant to the fair value measurement.

The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:

    Valuation inputs   
Investments in securities:  Level 1  Level 2  Level 3 
 
Common stocks:       
 
Basic materials  $8,936,150  $--  $-- 
  
Capital goods  9,039,276  --  -- 
 
Communication services  6,126,966  --  -- 
 
Consumer cyclicals  15,452,610  --  -- 
 
Consumer staples  7,720,158  --  -- 
 
Energy  7,225,962  --  -- 
 
Financial  5,136,401  --  -- 
 
Health care  17,947,951  --  -- 
 
Technology  27,890,997  --  -- 
 
Transportation  6,467,994  --  -- 
Total common stocks  111,944,465  --  -- 
 
Investment companies  5,719,594  --  -- 
 
Short-term investments  4,058,668  19,163,662  -- 
 
Totals by level  $121,722,727  $19,163,662  $-- 
 

 

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com


Item 2. Controls and Procedures:

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

(b) Changes in internal control over financial reporting: Not applicable

Item 3. Exhibits:

Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam Funds Trust

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: November 24, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):

/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: November 24, 2010

By (Signature and Title):

/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: November 24, 2010