N-Q 1 a_putnamtrust.htm PUTNAM FUNDS TRUST a_putnamtrust.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: February 29, 2012
Date of reporting period: May 31, 2011



Item 1. Schedule of Investments:













Putnam Floating Rate Income Fund

The fund's portfolio
5/31/11 (Unaudited)
SENIOR LOANS (83.1%)(a)
Principal amount Value
Advertising and marketing services (0.9%)
Advantage Sales & Marketing, LLC bank term loan FRN 9 1/4s, 2018 $230,000 $234,600
Advantage Sales & Marketing, LLC bank term loan FRN 5 1/4s, 2017 1,995,000 2,000,965
Affinion Group, Inc. bank term loan FRN 5s, 2016 2,970,013 2,967,785
5,203,350
Automotive (1.8%)
Chrysler Group, LLC bank term loan FRN Ser. B, 6s, 2017 5,000,000 4,971,065
Federal Mogul Corp. bank term loan FRN Ser. B, 2.146s, 2014 1,513,474 1,456,088
Federal Mogul Corp. bank term loan FRN Ser. C, 2.139s, 2015 772,181 742,902
Remy International, Inc. bank term loan FRN Ser. B, 6 1/4s, 2016 2,992,500 3,007,463
10,177,518
Basic materials (8.2%)
American Rock Salt Co., LLC / American Rock Capital Corp. bank term loan FRN 5 1/2s, 2017 3,660,000 3,680,588
Armstrong World Industries, Inc. bank term loan FRN Ser. B, 4s, 2018 2,145,000 2,149,468
AZ Chem US, Inc. bank term loan FRN 4 3/4s, 2017 2,909,302 2,920,212
Chemtura Corp. bank term loan FRN Ser. B, 5 1/2s, 2016 2,000,000 2,010,000
Diversey, Inc. bank term loan FRN Ser. B, 4s, 2015 2,566,246 2,571,058
Exopack, LLC bank term loan FRN Ser. B, 6 1/2s, 2017 3,125,000 3,117,188
Fairmount Minerals, Ltd. bank term loan FRN Ser. B, 5 1/4s, 2017 3,000,000 3,006,876
General Chemical Group, Inc. bank term loan FRN Ser. B, 5.002s, 2018 2,992,481 2,994,974
Hexion Specialty Chemicals BV bank term loan FRN Ser. C2, 4.063s, 2015 (Netherlands) 291,629 289,005
Hexion Specialty Chemicals, Inc. bank term loan FRN Ser. C1, 4s, 2015 686,920 680,738
Houghton International, Inc. bank term loan FRN Ser. B, 6 3/4s, 2016 497,856 500,656
Ineos Holdings, Ltd. bank term loan FRN Ser. B2, 7.501s, 2013 (United Kingdom) 1,320,223 1,363,130
Ineos Holdings, Ltd. bank term loan FRN Ser. C2, 8.001s, 2014 (United Kingdom) 1,383,030 1,427,978
JMC Steel Group bank term loan FRN Ser. B, 4 3/4s, 2017 1,000,000 1,005,625
Nexeo Solutions, LLC bank term loan FRN Ser. B, 5s, 2017 3,060,000 3,059,045
Novelis, Inc. bank term loan FRN Ser. B, 4s, 2016 1,142,138 1,146,778
Omnova Solutions, Inc. bank term loan FRN Ser. B, 5 3/4s, 2017 3,241,875 3,268,215
Solutia, Inc. bank term loan FRN Ser. B, 3 1/2s, 2017 987,500 989,264
Styron Corp. bank term loan FRN 6s, 2017 3,491,250 3,509,953
Tronox Worldwide bank term loan FRN Ser. B, 7s, 2015 2,493,750 2,511,413
Univar, Inc. bank term loan FRN Ser. B, 5s, 2017 3,426,413 3,424,576
45,626,740
Broadcasting (3.3%)
Clear Channel Communications, Inc. bank term loan FRN Ser. B, 3.861s, 2016 6,926,403 6,053,870
Gray Television, Inc. bank term loan FRN Ser. B, 3.71s, 2014 2,893,437 2,870,683
Hubbard Broadcasting, Inc. bank term loan FRN Ser. 2nd, 8 3/4s, 2018 1,500,000 1,522,500
Hubbard Broadcasting, Inc. bank term loan FRN Ser. 1st, 5 1/4s, 2017 1,000,000 1,006,250
Radio One, Inc. bank term loan FRN Ser. B, 7 1/2s, 2016 1,500,000 1,525,625
Univision Communications, Inc. bank term loan FRN Ser. B, 4.461s, 2017 5,656,788 5,466,623
18,445,551
Building materials (1.7%)
CPG International, Inc. bank term loan FRN 6s, 2017 3,391,500 3,397,859
Goodman Global, Inc. bank term loan FRN Ser. 2nd, 9s, 2017 968,000 996,798
Goodman Global, Inc. bank term loan FRN Ser. 1st, 5 3/4s, 2016 1,360,165 1,368,470
Nortek, Inc. bank term loan FRN Ser. B, 5 1/4s, 2017 3,585,000 3,593,963
9,357,090
Capital goods (5.0%)
Delphi Automotive, LLP bank term loan FRN Ser. B, 3 1/2s, 2017 2,000,000 2,005,834
Dyncorp International, LLC bank term loan FRN Ser. B, 6 1/4s, 2016 909,781 914,330
Hawker Beechcraft Notes Co. bank term loan FRN Ser. B, 2.238s, 2014 1,694,868 1,487,459
Hawker Beechcraft Notes Co. bank term loan FRN Ser. C, 0.207s, 2014 104,673 91,864
Manitowoc Co., Inc. (The) bank term loan FRN Ser. B, 4 1/4s, 2017 3,000,000 3,008,124
Pinafore, LLC bank term loan FRN Ser. B1, 4 1/4s, 2016 2,706,426 2,712,629
Reynolds Group Holdings, Inc. bank term loan FRN Ser. E, 4 1/4s, 2018 3,500,000 3,497,813
Sensata Technologies BV bank term loan FRN 4s, 2018 (Netherlands) 3,000,000 3,004,374
Sensus USA, Inc. bank term loan FRN Ser. 2nd, 8 1/2s, 2018 1,000,000 1,016,250
Sensus USA, Inc. bank term loan FRN Ser. 1st, 4 3/4s, 2017 2,000,000 2,007,500
Sequa Corp. bank term loan FRN 3.504s, 2014 2,587,788 2,554,633
TASC, Inc. bank term loan FRN Ser. B, 4 1/2s, 2015 998,229 1,000,225
Tenneco, Inc. bank term loan FRN Ser. B, 4.807s, 2016 1,985,000 1,999,888
TransDigm Group, Inc. bank term loan FRN Ser. B, 4s, 2017 1,330,665 1,335,655
Wesco Aircraft Hardware Corp. bank term loan FRN Ser. B, 4 1/4s, 2017 1,440,000 1,450,800
28,087,378
Commercial and consumer services (4.4%)
Brickman Group Holdings, Inc. bank term loan FRN Ser. B, 7 1/4s, 2016 1,915,200 1,943,330
Compucom Systems, Inc. bank term loan FRN 3.72s, 2014 1,321,881 1,288,834
Emergency Medical Services Corp. bank term loan FRN Ser. B, 5 1/4s, 2018 3,000,000 2,993,037
Interactive Data Corp. bank term loan FRN 4 3/4s, 2018 2,855,000 2,862,120
MoneyGram International, Inc. bank term loan FRN Ser. B, 4 1/2s, 2017 2,000,000 2,008,750
Orbitz Worldwide, Inc. bank term loan FRN Ser. B, 3.253s, 2014 2,509,075 2,347,240
Sabre, Inc. bank term loan FRN Ser. 1st, 2.228s, 2014 4,147,067 3,721,992
ServiceMaster Co. (The) bank term loan FRN Ser. B, 2.739s, 2014 4,535,979 4,425,011
ServiceMaster Co. (The) bank term loan FRN Ser. DD, 2.72s, 2014 451,922 440,866
Travelport, LLC bank term loan FRN Ser. B, 4.741s, 2015 2,235,849 2,152,005
Travelport, LLC bank term loan FRN Ser. S, 4.807s, 2015 434,674 418,374
24,601,559
Communication services (5.6%)
Asurion Corp. bank term loan FRN Ser. 2nd, 9s, 2019 1,500,000 1,512,813
Asurion Corp. bank term loan FRN Ser. B, 5 1/2s, 2018 1,500,000 1,485,617
Atlantic Broadband Finance, LLC bank term loan FRN Ser. B, 4s, 2016 1,868,108 1,871,596
CCO Holdings, LLC / CCO Holdings Capital Corp. bank term loan FRN 2.711s, 2014 1,000,000 987,917
Charter Communications, Inc. bank term loan FRN Ser. C, 3.56s, 2016 2,583,348 2,579,639
CPI International Acquisition, Inc. bank term loan FRN 5s, 2018 997,500 1,002,488
Digicel Group, Ltd. bank term loan FRN 2.813s, 2012 (Jamaica) 666,800 665,967
Integra Telecom Holdings, Inc. bank term loan FRN Ser. B, 9 3/8s, 2015 1,985,000 1,989,963
Intelsat Jackson Holdings SA bank term loan FRN 3.285s, 2014 (Luxembourg) 2,125,000 2,073,203
Intelsat Jackson Holdings, Ltd. bank term loan FRN Ser. B, 5 1/4s, 2018 (Bermuda) 4,000,000 4,022,776
Level 3 Financing, Inc. bank term loan FRN Ser. B, 11 1/2s, 2014 1,200,000 1,272,000
MCC Georgia, LLC bank term loan FRN Ser. F, 4 1/2s, 2017 2,977,500 2,979,980
MetroPCS Wireless, Inc. bank term loan FRN Ser. B3, 4s, 2018 1,496,250 1,489,393
MetroPCS Wireless, Inc. bank term loan FRN Ser. B3, 4s, 2018 1,875,000 1,866,407
SAVVIS Communications Corp. bank term loan FRN Ser. B, 6 3/4s, 2016 2,487,500 2,504,913
Towerco, LLC bank term loan FRN 5 1/4s, 2017 2,000,000 2,004,376
US Telepacific Corp. bank term loan FRN 5 3/4s, 2017 1,000,000 995,500
31,304,548
Consumer (0.6%)
Armored Autogroup, Inc. bank term loan FRN Ser. B, 6s, 2016 1,197,000 1,197,000
Visant Corp. bank term loan FRN 5 1/4s, 2016 1,995,000 1,995,499
3,192,499
Consumer cyclicals (0.8%)
AMC Entertainment, Inc. bank term loan FRN 3.442s, 2013 1,231,198 1,227,736
Aramark Corp. bank term loan FRN Ser. B2, 3.557s, 2016 1,726,477 1,723,781
Aramark Corp. bank term loan FRN Ser. C, 0.094s, 2016 113,542 113,364
Nielsen Finance LLC bank term loan FRN Ser. B, 3.956s, 2016 1,407,355 1,407,355
4,472,236
Consumer staples (9.4%)
Amscan Holdings, Inc. bank term loan FRN 6 3/4s, 2017 3,482,500 3,493,383
Bakercorp bank term loan FRN Ser. B, 5s, 2018 2,000,000 2,004,166
Burger King Holdings, Inc. bank term loan FRN Ser. B, 4 1/2s, 2016 3,715,688 3,705,046
Claire's Stores, Inc. bank term loan FRN 3.051s, 2014 4,421,859 4,071,179
Darling International, Inc. bank term loan FRN Ser. B, 5s, 2016 300,000 302,250
Dave & Buster's, Inc. bank term loan FRN Ser. B, 5 1/2s, 2016 1,403,200 1,410,216
Dean Foods Co. bank term loan FRN Ser. A1, 3.501s, 2014 800,000 788,834
Dean Foods Co. bank term loan FRN Ser. B, 3.31s, 2016 997,487 983,149
Dean Foods Co. bank term loan FRN Ser. B2, 3.732s, 2017 1,474,155 1,457,045
Del Monte Foods Co. bank term loan FRN Ser. B, 4 1/2s, 2018 3,360,000 3,358,928
DineEquity, Inc. bank term loan FRN Ser. B, 4 1/4s, 2017 1,528,342 1,532,437
Dole Food Co., Inc. bank term loan FRN Ser. B, 5.049s, 2017 822,064 825,653
Dole Food Co., Inc. bank term loan FRN Ser. C, 5.141s, 2017 2,041,800 2,050,717
Getty Images, Inc. bank term loan FRN Ser. B, 5 1/4s, 2016 2,238,750 2,251,343
Green Mountain Coffee Roasters, Inc. bank term loan FRN Ser. B, 5 1/2s, 2016 1,083,409 1,084,086
Hertz Corp. (The) bank term loan FRN Ser. B, 3 3/4s, 2018 3,000,000 2,999,982
Huish Detergents, Inc. bank term loan FRN Ser. 2nd, 4.47s, 2014 1,375,000 1,303,672
Prestige Brands, Inc. bank term loan FRN 4 3/4s, 2016 1,715,067 1,719,355
Revlon Consumer Products bank term loan FRN Ser. B, 4 3/4s, 2017 4,310,000 4,315,388
Rite Aid Corp. bank term loan FRN 4 1/2s, 2018 971,916 959,767
Rite-Aid Corp. bank term loan FRN Ser. B, 1.959s, 2014 1,474,589 1,411,919
Spectrum Brands, Inc. bank term loan FRN 5s, 2016 3,872,353 3,900,702
US Foodservice bank term loan FRN Ser. B, 5 3/4s, 2017 3,000,000 2,949,999
Wendy's/Arby's Resturants, LLC bank term loan FRN 5s, 2017 1,885,754 1,889,880
West Corp. bank term loan FRN Ser. B5, 4.607s, 2016 1,412,758 1,418,056
52,187,152
Energy (2.1%)
EPCO Holdings, Inc. bank term loan FRN Ser. A, 1.193s, 2012 1,881,136 1,843,514
Frac Tech International, LLC bank term loan FRN Ser. B, 6 1/4s, 2016 2,550,000 2,551,821
Frac Tech International, LLC bank term loan FRN Ser. DD, 6 1/4s, 2016(U) 340,000 340,243
Helix Energy Solutions Group, Inc. bank term loan FRN Ser. B, 2.455s, 2013 361,520 358,883
Hercules Offshore, Inc. bank term loan FRN Ser. B, 7 1/2s, 2013 1,289,524 1,282,845
MEG Energy Corp. bank term loan FRN Ser. B, 4s, 2018 (Canada) 3,580,000 3,587,271
Walter Energy, Inc. bank term loan FRN Ser. B, 4s, 2018 2,000,000 2,004,090
11,968,667
Entertainment (0.9%)
Cedar Fair LP bank term loan FRN 4s, 2017 908,602 912,982
Cinemark USA, Inc. bank term loan FRN 3.495s, 2013 1,080,916 1,080,241
Clubcorp Club Operations, Inc. bank term loan FRN Ser. B, 6s, 2016 748,125 752,333
Revel Entertainment, LLC bank term loan FRN Ser. B, 9s, 2017 950,000 930,802
Six Flags Theme Parks bank term loan FRN Ser. B, 5 1/4s, 2016 1,460,974 1,471,201
5,147,559
Financials (4.7%)
AGFS Funding Co. bank term loan FRN Ser. B, 5 1/2s, 2017 4,820,000 4,812,471
Capital Automotive LP bank term loan FRN Ser. B, 5s, 2017 2,969,203 2,945,078
CB Richard Ellis Services, Inc. bank term loan FRN Ser. C, 3.51s, 2018(U) 2,000,000 1,987,500
CIT Group, Inc. bank term loan FRN 6 1/4s, 2015 1,400,000 1,413,343
CNO Financial Group, Inc. bank term loan FRN 6 1/4s, 2016 2,179,667 2,183,754
HUB International Holdings, Inc. bank term loan FRN 6 3/4s, 2014 647,145 647,145
iStar Financial, Inc. bank term loan FRN Ser. A1, 5s, 2013 1,864,730 1,855,116
iStar Financial, Inc. bank term loan FRN Ser. A2, 7s, 2014 2,550,000 2,568,669
Nuveen Investments, Inc. bank term loan FRN Ser. B, 5.791s, 2017 4,004,969 4,020,821
Nuveen Investments, Inc. bank term loan FRN Ser. B, 3.292s, 2014 1,390,711 1,367,532
Ocwen Financial Corp. bank term loan FRN 9s, 2015 112,500 112,219
Worldpay bank term loan FRN Ser. B2, 6 1/4s, 2017 (United Kingdom) 2,500,000 2,504,688
26,418,336
Gaming and lottery (5.0%)
Ameristar Casinos, Inc. bank term loan FRN Ser. B, 4s, 2018 3,200,000 3,213,693
Boyd Gaming Corp. bank term loan FRN Ser. A, 3.711s, 2015 3,209,375 3,127,135
Caesars Entertainment Corp. bank term loan FRN Ser. B, 9.261s, 2017 790,000 794,938
Caesars Entertainment Operating Co., Inc. bank term loan FRN Ser. B1, 3.274s, 2015 815,003 758,406
Caesars Entertainment Operating Co., Inc. bank term loan FRN Ser. B2, 3.249s, 2015 3,000,000 2,791,500
CCM Merger, Inc. bank term loan FRN Ser. B, 7s, 2017 3,550,000 3,597,925
Ceasars Entertainment Operating Co., Inc. bank term loan FRN Ser. B, 9 1/2s, 2016 232,063 245,986
Chester Downs & Marina, LLC bank term loan FRN 12 3/8s, 2016 887,500 904,141
Chester Downs & Marina, LLC bank term loan FRN 12 3/8s, 2016 245,313 250,219
Gateway Casinos & Entertainment, Inc. bank term loan FRN Ser. B, 6 1/2s, 2016 2,985,000 3,088,834
Golden Nugget, Inc. bank term loan FRN 2.217s, 2014(PIK) 779,911 682,422
Golden Nugget, Inc. bank term loan FRN Ser. B, 2.22s, 2014(PIK) 1,369,892 1,198,655
Green Valley Ranch Gaming, LLC bank term loan FRN Ser. B, 4 1/4s, 2014 (In default)(NON) 1,694,834 1,472,387
Green Valley Ranch Resort bank term loan FRN 6 1/4s, 2016 2,000,000 1,987,500
Harrah's Operating Co., Inc. bank term loan FRN Ser. B3, 3.274s, 2015 1,411,481 1,313,462
Isle of Capri Casinos, Inc. bank term loan FRN 4 3/4s, 2017 2,274,300 2,284,687
Las Vegas Sands, LLC bank term loan FRN Ser. B, 3s, 2014 202 198
27,712,088
Health care (7.1%)
Alliance Healthcare Services, Inc. bank term loan FRN 5 1/2s, 2016 1,975,000 1,970,886
Ardent Health Services bank term loan FRN Ser. B, 6 1/2s, 2015 2,673,000 2,679,683
Biomet, Inc. bank term loan FRN Ser. B, 3.277s, 2015 1,853,828 1,842,464
ConvaTec, Inc. bank term loan FRN Ser. B, 5 3/4s, 2016 2,992,500 2,999,981
DaVita, Inc. bank term loan FRN Ser. B, 4 1/2s, 2016 2,493,750 2,507,777
Grifols SA bank term loan FRN Ser. B, 6s, 2016 (Spain) 2,075,000 2,090,994
HCA, Inc. bank term loan FRN Ser. B3, 3.557s, 2018 2,672,010 2,655,444
IASIS Healthcare, LLC bank term loan FRN Ser. B, 5s, 2018 2,285,000 2,286,714
IMS Health, Inc. bank term loan FRN Ser. B, 4 1/2s, 2017 2,970,029 2,975,598
Kindred Healthcare, Inc. bank term loan FRN Ser. B, 5 1/4s, 2018 3,000,000 2,994,750
Multiplan, Inc. bank term loan FRN Ser. B, 4 3/4s, 2017 3,612,488 3,605,715
Mylan, Inc. bank term loan FRN Ser. B, 3.563s, 2014 600,889 602,805
Quintiles Transnational Corp. bank term loan FRN Ser. B, 5s, 2018 4,000,000 3,972,500
Select Medical Corp. bank term loan FRN Ser. B, 2.17s, 2012 1,262,284 1,253,868
United Surgical Partners International, Inc. bank term loan FRN 2.249s, 2014 1,068,174 1,048,814
Universal Health Services, Inc. bank term loan FRN Ser. B, 4s, 2016 997,288 1,001,028
Vanguard Health Systems, Inc. bank term loan FRN 5s, 2016 2,970,112 2,968,256
39,457,277
Homebuilding (0.8%)
Realogy Corp. bank term loan FRN 0.06s, 2013 465,418 442,147
Realogy Corp. bank term loan FRN Ser. A, 13 1/2s, 2017 1,000,000 1,060,000
Realogy Corp. bank term loan FRN Ser. B, 4.518s, 2016 2,089,768 1,942,364
Realogy Corp. bank term loan FRN Ser. B, 3.268s, 2013 888,135 843,728
4,288,239
Household furniture and appliances (0.2%)
National Bedding Co., LLC bank term loan FRN Ser. B, 3.813s, 2013 1,397,028 1,393,536
1,393,536
Lodging/Tourism (0.2%)
MGM Mirage bank term loan FRN Ser. E, 7s, 2014 987,957 982,194
982,194
Media (0.8%)
Nielsen Finance LLC bank term loan FRN Ser. A, 2.261s, 2013 48,991 48,766
Nielsen Finance LLC bank term loan FRN Ser. C, 3.456s, 2016 2,298,842 2,292,274
TWCC Holding Corp. bank term loan FRN Ser. B, 4 1/4s, 2017 1,995,000 2,005,807
4,346,847
Publishing (2.4%)
Cengage Learning Acquisitions, Inc. bank term loan FRN Ser. B, 2.46s, 2014 4,082,753 3,801,427
Cenveo Corp. bank term loan FRN Ser. B, 6 1/4s, 2016 1,596,000 1,606,773
Dex Media West, LLC bank term loan FRN Ser. A, 7s, 2014 865,617 764,268
GateHouse Media, Inc. bank term loan FRN Ser. B, 2.45s, 2014 172,985 65,042
GateHouse Media, Inc. bank term loan FRN Ser. B, 2.2s, 2014 2,011,036 756,150
GateHouse Media, Inc. bank term loan FRN Ser. DD, 2.2s, 2014 750,387 282,145
Quad/Graphics, Inc. bank term loan FRN 5 1/2s, 2016 1,488,750 1,487,510
R.H. Donnelley, Inc. bank term loan FRN Ser. B, 9s, 2014 149,300 110,780
Supermedia, Inc. bank term loan FRN 11s, 2015 2,522,365 1,650,179
Tribune Co. bank term loan FRN Ser. B, 5 1/4s, 2014 (In default)(NON) 4,264,063 2,882,506
13,406,780
Retail (5.7%)
Bass Pro Group, LLC bank term loan FRN Ser. B, 5.007s, 2015 1,401,104 1,398,769
Burlington Coat Factory Warehouse Corp. bank term loan FRN Ser. B, 6 1/4s, 2017 3,456,338 3,454,609
Dollar General Corp. bank term loan FRN Ser. B1, 2.961s, 2014 2,475,717 2,470,135
General Nutrition Centers, Inc. bank term loan FRN Ser. B, 4 1/4s, 2018 1,350,000 1,351,013
J. Crew Group, Inc. bank term loan FRN Ser. B, 4 3/4s, 2018 4,000,000 3,921,252
Jo-Ann Stores, Inc. bank term loan FRN Ser. B, 4 3/4s, 2018 475,000 469,894
KAR Auction Services, Inc. bank term loan FRN Ser. B, 5s, 2017 1,285,000 1,288,855
Leslie's Poolmart bank term loan FRN Ser. B, 4 1/2s, 2017 1,995,000 2,002,481
Michaels Stores, Inc. bank term loan FRN Ser. B1, 2.563s, 2013 3,025,452 2,985,350
NBTY, Inc. bank term loan FRN Ser. B, 4 1/4s, 2017 2,394,000 2,392,489
Neiman Marcus Group, Inc. (The) bank term loan FRN 4 3/4s, 2018 4,300,000 4,271,332
PETCO Animal Supplies, Inc. bank term loan FRN 4 1/2s, 2017 2,970,000 2,967,348
Toys"R"Us, Inc. bank term loan FRN Ser. B, 6s, 2016 2,977,500 2,981,618
31,955,145
Technology (7.3%)
Avaya, Inc. bank term loan FRN Ser. B3, 4.755s, 2017 6,555,709 6,379,977
Ceridian Corp. bank term loan FRN 3.211s, 2014 2,480,575 2,411,196
CommScope, Inc. bank term loan FRN Ser. B, 5s, 2018 1,435,000 1,442,175
Eagle Parent, Inc. bank term loan FRN 5s, 2018 3,000,000 2,966,250
Edwards, Ltd. bank term loan FRN Ser. B, 5 1/2s, 2016 (United Kingdom) 3,192,000 3,182,689
Fidelity National Information Services, Inc. bank term loan FRN Ser. B, 5 1/4s, 2016 1,990,000 1,997,463
First Data Corp. bank term loan FRN 4.195s, 2018 5,090,668 4,748,189
First Data Corp. bank term loan FRN Ser. B1, 2.945s, 2014 385,978 360,815
First Data Corp. bank term loan FRN Ser. B3, 2.945s, 2014 155,772 145,550
Freescale Semiconductor, Inc. bank term loan FRN 4.461s, 2016 4,303,641 4,285,484
MSCI, Inc. bank term loan FRN 3 3/4s, 2017 1,780,582 1,791,711
Springboard Finance, LLC bank term loan FRN Ser. B, 7s, 2015 2,823,192 2,835,293
SunGard Data Systems, Inc. bank term loan FRN Ser. B, 3.873s, 2016 3,432,521 3,429,662
Syniverse Holdings, Inc. bank term loan FRN 5 1/4s, 2017 1,995,000 2,004,975
Telecordia Technologies, Inc. bank term loan FRN 6 3/4s, 2016 2,537,064 2,534,951
40,516,380
Textiles (0.6%)
Gymboree Corp. bank term loan FRN 5s, 2018 3,491,250 3,420,699
3,420,699
Transportation (1.1%)
Delta Air Lines, Inc. bank term loan FRN Ser. B, 5 1/2s, 2017 2,500,000 2,473,438
Swift Transportation Co., LLC bank term loan FRN 6s, 2016 3,773,416 3,792,238
6,265,676
Utilities and power (2.5%)
AES Corp. (The) bank term loan FRN Ser. B, 4 1/4s, 2018 2,000,000 1,998,126
GenOn Energy, Inc. bank term loan FRN Ser. B, 6s, 2017 2,985,000 2,997,438
New Devlopment Holdings, LLC bank term loan FRN Ser. B, 4 1/2s, 2018 1,200,000 1,202,400
NRG Energy, Inc. bank term loan FRN 3.557s, 2015 1,172,615 1,169,683
NRG Energy, Inc. bank term loan FRN Ser. B, 3.469s, 2015 1,392,021 1,392,238
Texas Competitive Electric Holdings Co., LLC bank term loan FRN 4.738s, 2017 6,330,362 4,994,655
13,754,540
Total Senior loans (cost $462,627,023) 463,689,584

CORPORATE BONDS AND NOTES (13.4%)(a)
Principal amount Value
Basic materials (2.6%)
Exopack Holding Corp. company guaranty sr. unsec. notes 11 1/4s, 2014 $1,080,000 $1,107,000
FMG Resources August 2006 Pty, Ltd. 144A sr. notes 7s, 2015 (Australia) 1,000,000 1,055,947
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance, ULC company guaranty sr. notes FRN 4.761s, 2014 850,000 825,563
Huntsman International, LLC company guaranty sr. unsec. sub. notes 7 3/8s, 2015 1,000,000 1,022,500
Ineos Finance PLC 144A company guaranty sr. notes 9s, 2015 (United Kingdom) 1,000,000 1,085,000
Kronos International, Inc. sr. notes 6 1/2s, 2013 (Germany) EUR 800,000 1,160,748
Lyondell Chemical Co. sr. notes 11s, 2018 $1,996,963 2,249,080
Lyondell Chemical Co. 144A company guaranty sr. notes 8s, 2017 403,000 453,375
Momentive Performance Materials, Inc. company guaranty sr. notes 12 1/2s, 2014 1,000,000 1,100,000
Rhodia SA sr. unsec. notes FRN Ser. REGS, 4.077s, 2013 (France) EUR 856,075 1,239,684
Steel Dynamics, Inc. company guaranty sr. unsec. unsub. notes 6 3/4s, 2015 $500,000 515,000
Styrolution Group GmbH 144A sr. notes 7 5/8s, 2016 (Germany) EUR 690,000 993,901
Verso Paper Holdings, LLC/Verso Paper, Inc. company guaranty sr. notes FRN Ser. B, 4.023s, 2014 $1,000,000 962,500
Verso Paper Holdings, LLC/Verso Paper, Inc. sr. notes 11 1/2s, 2014 899,000 975,415
14,745,713
Capital goods (1.1%)
Berry Plastics Corp. company guaranty sr. notes FRN 5.028s, 2015 4,000,000 3,960,000
Case New Holland, Inc. company guaranty sr. unsec. unsub. notes 7 3/4s, 2013 (Netherlands) 500,000 543,750
General Cable Corp. company guaranty sr. unsec. unsub. notes FRN 2.68s, 2015 740,000 728,900
Ryerson Tull, Inc. company guaranty sr. notes FRN 7.648s, 2014 1,000,000 1,013,750
6,246,400
Communication services (2.2%)
Cincinnati Bell, Inc. company guaranty sr. unsec. notes 7s, 2015 750,000 761,250
Cricket Communications, Inc. company guaranty sr. unsec. unsub. notes 10s, 2015 1,167,000 1,270,571
Crown Castle International Corp. sr. unsec. notes 9s, 2015 500,000 553,750
CSC Holdings LLC sr. unsec. unsub. notes 8 1/2s, 2014 1,000,000 1,120,000
Digicel Group, Ltd. 144A sr. unsec. notes 12s, 2014 (Bermuda) 520,000 604,500
iPCS, Inc. company guaranty sr. notes FRN 2.398s, 2013 1,440,000 1,395,000
Kabel BW ERST Beteiligu 144A company guaranty sr. notes FRN 5.469s, 2018 (Germany) EUR 2,000,000 2,935,782
Level 3 Financing, Inc. 144A company guaranty FRN 4.215s, 2015 $1,000,000 960,000
Nextel Communications, Inc. company guaranty sr. unsec. notes Ser. D, 7 3/8s, 2015 1,750,000 1,760,938
Windstream Corp. company guaranty sr. unsec. unsub. notes 8 1/8s, 2013 1,000,000 1,097,500
12,459,291
Consumer cyclicals (2.8%)
AMC Entertainment, Inc. sr. sub. notes 8s, 2014 750,000 757,500
American Axle & Manufacturing, Inc. company guaranty sr. unsec. notes 5 1/4s, 2014 1,000,000 1,002,500
American Casino & Entertainment Properties LLC sr. notes 11s, 2014 925,000 987,438
Aramark Corp. company guaranty sr. unsec. notes FRN 3.773s, 2015 1,000,000 995,000
DISH DBS Corp. company guaranty 7s, 2013 1,000,000 1,077,500
FelCor Lodging LP company guaranty sr. notes 10s, 2014(R) 1,095,000 1,253,775
Ford Motor Credit Corp. sr. unsec. notes 12s, 2015 1,000,000 1,278,044
Hanesbrands, Inc. company guaranty sr. unsec. notes FRN Ser. B, 3.831s, 2014 1,045,000 1,041,081
Liberty Media, LLC sr. notes 5.7s, 2013 500,000 522,500
MGM Resorts International sr. notes 10 3/8s, 2014 750,000 866,250
MTR Gaming Group, Inc. company guaranty sr. notes 12 5/8s, 2014 1,000,000 1,055,000
Nielsen Finance LLC/Nielsen Finance Co. sr. notes 11 5/8s, 2014 652,000 767,730
Seminole Hard Rock Entertainment, Inc. 144A sr. notes FRN 2.81s, 2014 1,090,000 1,057,300
Toys "R" Us, Inc. sr. unsec. unsub. notes 7 7/8s, 2013 1,000,000 1,075,000
TRW Automotive, Inc. 144A company guaranty sr. unsec. unsub. notes 7s, 2014 1,000,000 1,100,000
XM Satellite Radio, Inc. 144A company guaranty sr. unsec. notes 13s, 2013 500,000 595,000
15,431,618
Consumer staples (0.5%)
Avis Budget Car Rental, LLC company guaranty sr. unsec. unsub. FRN 2.761s, 2014 1,000,000 970,000
Constellation Brands, Inc. company guaranty sr. unsec. unsub. notes 8 3/8s, 2014 1,000,000 1,146,250
Harry & David Operations Corp. company guaranty sr. unsec. notes FRN zero %, 2012 (In default)(NON) 500,000 102,500
JBS USA LLC/JBS USA Finance, Inc. company guaranty sr. unsec. notes 11 5/8s, 2014 500,000 585,000
2,803,750
Energy (1.3%)
Chesapeake Energy Corp. sr. unsec. notes 7 5/8s, 2013 1,000,000 1,092,500
Forest Oil Corp. company guaranty sr. unsec. notes 8 1/2s, 2014 350,000 387,625
Offshore Group Investments, Ltd. company guaranty sr. notes 11 1/2s, 2015 (Cayman Islands) 1,000,000 1,102,500
OPTI Canada, Inc. 144A sr. notes 9s, 2012 (Canada) 1,595,000 1,602,975
Petrohawk Energy Corp. company guaranty sr. unsec. notes 10 1/2s, 2014 1,000,000 1,135,000
SandRidge Energy, Inc. company guaranty sr. unsec. unsub. FRN 3.93s, 2014 1,425,000 1,416,125
Whiting Petroleum Corp. company guaranty 7s, 2014 500,000 540,000
7,276,725
Financials (1.3%)
Ally Financial, Inc. company guaranty sr. unsec. unsub. notes 4 1/2s, 2014 1,000,000 1,011,250
Ally Financial, Inc. company guaranty sr. unsec. unsub. notes FRN 2.454s, 2014 1,000,000 985,095
CIT Group, Inc. 144A company guaranty notes 5 1/4s, 2014 1,500,000 1,527,914
E*Trade Financial Corp. sr. notes 6 3/4s, 2016 480,000 480,000
Goldman Sachs Group LP sr. unsec. notes FRN 1.268s, 2014 2,000,000 1,984,089
Springleaf Finance Corp. sr. unsec. notes FRN Ser. MTN, 0.56s, 2011 1,000,000 985,740
USI Holdings Corp. 144A company guaranty sr. unsec. notes FRN 4.136s, 2014 190,000 181,925
7,156,013
Health care (0.6%)
Elan Finance PLC/Elan Finance Corp. company guaranty sr. unsec. unsub. notes 8 7/8s, 2013 (Ireland) 1,000,000 1,040,000
HCA, Inc. sr. unsec. notes 6 3/4s, 2013 90,000 95,063
Select Medical Holdings Corp. sr. unsec. notes FRN 6.211s, 2015 1,000,000 967,500
Tenet Healthcare Corp. sr. unsec. notes 7 3/8s, 2013 1,000,000 1,051,250
3,153,813
Technology (0.4%)
NXP BV/NXP Funding, LLC company guaranty sr. notes FRN Ser. EXCH, 3.028s, 2013 (Netherlands) 2,173,000 2,162,135
2,162,135
Utilities and power (0.6%)
AES Corp. (The) sr. unsec. unsub. notes 7 3/4s, 2014 750,000 821,250
Edison Mission Energy sr. unsec. notes 7 1/2s, 2013 1,000,000 1,025,000
GenOn Energy, Inc. sr. unsec. unsub. notes 7 5/8s, 2014 1,240,000 1,295,800
3,142,050
Total Corporate bonds and notes (cost $73,072,922) $74,577,508

U.S. TREASURY OBLIGATIONS (0.1%)(a)
Principal amount Value
U.S. Treasury Notes 3 5/8s, February 15, 2020(i) $297,000 $318,241
Total U.S. Treasury Obligations (cost $318,241) $318,241

SHORT-TERM INVESTMENTS (5.1%)(a)
Principal amount/shares Value
U.S. Treasury Bills for an effective rate of 0.14%, November 17, 2011 $131,000 $130,910
U.S. Treasury Bills for an effective rate of 0.24%, July 28, 2011 10,000 9,996
Putnam Money Market Liquidity Fund 0.07%(e) 28,563,742 28,563,742
Total Short-term investments (cost $28,704,652) $28,704,648

TOTAL INVESTMENTS
Total investments (cost $564,722,838)(b) $567,289,981













FORWARD CURRENCY CONTRACTS at 5/31/11 (aggregate face value $9,876,147) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Barclays Bank PLC
Euro Sell 6/15/11 $5,547,467 $5,748,086 $200,619
State Street Bank and Trust Co.
Euro Sell 6/15/11 997,133 983,887 (13,246)
UBS AG
Canadian Dollar Sell 6/15/11 3,082,678 3,144,174 61,496
Total $248,869












CREDIT DEFAULT CONTRACTS OUTSTANDING at 5/31/11 (Unaudited)
Upfront Fixed payments
premium Termi- received Unrealized
Swap counterparty / received Notional nation (paid) by fund appreciation/
Referenced debt* Rating*** (paid)** amount date per annum (depreciation)
JPMorgan Chase Bank, N.A.
  DJ LCDX NA Series 16 Version 1 Index — $(7,500) $3,000,000 6/20/16 (250 bp) $7,221
Total $7,221
*   Payments related to the referenced debt are made upon a credit default event.  
**   Upfront premium is based on the difference between the original spread on issue and the market spread on day of execution.  
***   Ratings are presented for credit default contracts in which the fund has sold protection on the underlying referenced debt. Ratings for an underlying index represent the average of the ratings of all the securities included in that index. The Moody's, Standard & Poor's or Fitch ratings are believed to be the most recent ratings available at May 31, 2011. Securities rated by Putnam are indicated by "/P." Securities rated by Fitch are indicated by "/F."  










Key to holding's currency abbreviations
EUR Euro
Key to holding's abbreviations
FRN Floating Rate Notes
MTN Medium Term Notes
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 March 1, 2011 through May 31, 2011 (the reporting period).
(a) Percentages indicated are based on net assets of $557,817,413.
(b) The aggregate identified cost on a tax basis is $565,136,558, resulting in gross unrealized appreciation and depreciation of $9,562,266 and $7,408,843, respectively, or net unrealized appreciation of $2,153,423.
(NON) Non-income-producing security.
(PIK) Income may be received in cash or additional securities at the discretion of the issuer.
(c) Senior loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for senior loans are the current interest rates at the close of the reporting period. Senior loans are also subject to mandatory and/or optional prepayment which cannot be predicted. As a result, the remaining maturity may be substantially less than the stated maturity shown. Senior loans are purchased or sold on a when-issued or delayed delivery basis and may be settled a month or more after the trade date, which from time to time can delay the actual investment of available cash balances; interest income is accrued based on the terms of the securities. Senior loans can be acquired through an agent, by assignment from another holder of the loan, or as a participation interest in another holder’s portion of the loan. When the fund invests in a loan or participation, the fund is subject to the risk that an intermediate participant between the fund and the borrower will fail to meet its obligations to the fund, in addition to the risk that the borrower under the loan may default on its obligations.
(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 $11,991 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $99,758,179 and $132,928,009, 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.
(i) Security purchased with cash or security received, that was pledged to the fund for collateral on certain derivatives contracts.
(R) Real Estate Investment Trust.
(U) This security, in part or in entirety, represents an unfunded loan commitment. As of the close of the reporting period, the fund had unfunded loan commitments of $2,327,743, which could be extended at the option of the borrower, pursuant to the following loan agreements with the following borrowers:
Borrower Unfunded commitments
CB Richard Ellis Services, Inc. $1,987,500
Frac Tech International, LLC 340,243
Totals $2,327,743
At the close of the reporting period, the fund maintained liquid assets totaling $3,012,865 to cover certain derivatives contracts.
Debt obligations are considered secured unless otherwise indicated.
144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
The rates shown on FRN are the current interest rates at the close of the reporting period.
The dates shown on debt obligations are the original maturity dates.
Security valuation: Senior loans are valued at fair value on the basis of valuations provided by an independent pricing service, approved by the Trustees. Such services use information with respect to transactions in senior loans, quotations from senior loan dealers, market transactions in comparable securities and various relationships between securities in determining value. These securities will generally be categorized as Level 2.
Market quotations are not considered to be readily available for certain debt obligations; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which considers such factors as prices, yields, maturities and ratings). These securities will generally be categorized as Level 2.
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, 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 at a given point in time and does not reflect an actual market price, which may be different by a material amount.
Forward currency contracts: The fund buys and sells 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 hedge foreign exchange risk. 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. The fund had an average contract amount of approximately $8,300,000 on forward currency contracts for the reporting period.
Credit default contracts: The fund enters into credit default contracts to gain exposure on individual names and/or baskets of securities. In a credit default contract, the protection buyer typically makes an up front payment and a periodic stream of payments to a counterparty, the protection seller, in exchange for the right to receive a contingent payment upon the occurrence of a credit event on the reference obligation or all other equally ranked obligations of the reference entity. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring and obligation acceleration. An upfront payment received by the fund, as the protection seller, is recorded as a liability on the fund’s books. An upfront payment made by the fund, as the protection buyer, is recorded as an asset on the fund’s books. Periodic payments received or paid by the fund are recorded as realized gains or losses. The credit default contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Upon the occurrence of a credit event, the difference between the par value and market value of the reference obligation, net of any proportional amount of the upfront payment, is recorded as a realized gain or loss.
In addition to bearing the risk that the credit event will occur, the fund could be exposed to market risk due to unfavorable changes in interest rates or in the price of the underlying security or index or the possibility that the fund may be unable to close out its position at the same time or at the same price as if it had purchased the underlying reference obligations. In certain circumstances, the fund may enter into offsetting credit default contracts which would mitigate its risk of loss. The fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty. Where the fund is a seller of protection, the maximum potential amount of future payments the fund may be required to make is equal to the notional amount of the relevant credit default contract. Outstanding notional amount on credit default swap contracts at the close of the reporting period are indicative of the volume of activity during the reporting 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 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 $13,246 on derivative contracts subject to the Master Agreements. There was no collateral posted by the fund.












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
Corporate bonds and notes $— $74,577,508 $—
Senior loans — 463,689,584 —
U.S. Treasury Obligations — 318,241 —
Short-term investments 28,563,742 140,906 —
Totals by level $28,563,742 $538,726,239 $—



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3


Forward currency contracts $— $248,869 $—
Credit default contracts — 14,721 —
Totals by level $— $263,590 $—


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
Credit contracts $14,721 $—
Foreign exchange contracts 262,115 13,246
Total $276,836 $13,246


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: July 28, 2011

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: July 28, 2011

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: July 28, 2011




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: February 29, 2012
Date of reporting period: May 31, 2011



Item 1. Schedule of Investments:













Putnam Retirement Income Fund Lifestyle 3

The fund's portfolio
5/31/11 (Unaudited)
COMMON STOCKS (25.8%)(a)
Shares Value
Basic materials (1.4%)
Albany International Corp. Class A 105 $2,898
Albemarle Corp. 250 17,710
Andersons, Inc. (The) 185 8,016
BASF SE (Germany) 93 8,587
Boise, Inc. 295 2,490
Century Aluminum Co.(NON) 76 1,227
Coeur d'Alene Mines Corp.(NON) 73 2,013
Cytec Industries, Inc. 173 9,721
Domtar Corp. (Canada) 45 4,612
Ferro Corp.(NON) 390 5,109
Fletcher Building, Ltd. (New Zealand) 1,094 8,045
Freeport-McMoRan Copper & Gold, Inc. Class B 700 36,148
Georgia Gulf Corp.(NON) 81 2,296
Gibraltar Industries, Inc.(NON) 115 1,502
Horsehead Holding Corp.(NON) 115 1,534
Innophos Holdings, Inc. 85 3,816
International Flavors & Fragrances, Inc. 222 14,221
KapStone Paper and Packaging Corp.(NON) 255 4,195
Koppers Holdings, Inc. 139 5,578
Kronos Worldwide, Inc. 100 3,014
Layne Christensen Co.(NON) 117 3,460
Lubrizol Corp. (The) 147 19,772
MeadWestvaco Corp. 464 15,785
Minerals Technologies, Inc. 88 5,984
Molycorp, Inc.(NON) 25 1,661
Monsanto Co. 248 17,618
Neenah Paper, Inc. 52 1,206
NewMarket Corp. 15 2,613
Nippon Paper Group, Inc. (Japan) 700 14,849
Nitto Denko Corp. (Japan) 300 15,726
Noranda Aluminum Holding Corp.(NON) 82 1,215
OM Group, Inc.(NON) 171 6,375
PolyOne Corp. 212 3,229
PPG Industries, Inc. 271 24,038
Quaker Chemical Corp. 36 1,568
Rare Element Resources, Ltd. (Canada)(NON) 141 1,739
Rayonier, Inc.(R) 391 25,958
Rio Tinto PLC (United Kingdom) 45 3,149
Rock-Tenn Co. Class A 39 2,996
Stepan Co. 17 1,141
Stillwater Mining Co.(NON) 242 4,901
Syngenta AG (Switzerland)(NON) 16 5,524
TPC Group, Inc.(NON) 48 1,746
voestalpine AG (Austria) 323 16,182
W.R. Grace & Co.(NON) 280 13,101
Yara International ASA (Norway) 40 2,410
356,678
Capital goods (1.3%)
Alamo Group, Inc. 116 2,958
Altra Holdings, Inc.(NON) 189 4,980
American Axle & Manufacturing Holdings, Inc.(NON) 248 2,867
American Science & Engineering, Inc. 17 1,471
Applied Industrial Technologies, Inc. 153 5,450
Autoliv, Inc. (Sweden) 131 10,084
AZZ, Inc. 47 2,074
Bekaert NV (Belgium) 139 14,750
Chart Industries, Inc.(NON) 52 2,526
Douglas Dynamics, Inc. 109 1,688
Dover Corp. 457 30,724
DXP Enterprises, Inc.(NON) 91 2,357
EMCOR Group, Inc.(NON) 122 3,705
Emerson Electric Co. 591 32,239
EnPro Industries, Inc.(NON) 46 2,097
Exide Technologies(NON) 424 4,181
Franklin Electric Co., Inc. 64 2,848
Generac Holdings, Inc.(NON) 104 1,915
John Bean Technologies Corp. 132 2,592
Lindsay Corp. 15 1,006
Lockheed Martin Corp. 334 26,019
LSB Industries, Inc.(NON) 87 4,119
Meritor, Inc.(NON) 139 2,295
Metso Corp. OYJ (Finland) 123 7,097
Mitsubishi Electric Corp. (Japan) 1,000 11,290
NACCO Industries, Inc. Class A 12 1,174
Nalco Holding Co. 396 11,302
Parker Hannifin Corp. 349 31,009
Polypore International, Inc.(NON) 82 5,375
Powell Industries, Inc.(NON) 57 1,958
Power-One, Inc.(NON) 145 1,217
Raytheon Co. 521 26,248
Regal-Beloit Corp. 222 15,318
SembCorp Industries, Ltd. (Singapore) 2,000 8,206
Singapore Technologies Engineering, Ltd. (Singapore) 1,000 2,406
Smith (A.O.) Corp. 126 5,225
Societe BIC SA (France) 133 12,575
Standex International Corp. 51 1,694
Timken Co. 50 2,581
TriMas Corp.(NON) 222 4,529
United Technologies Corp. 70 6,144
Valmont Industries, Inc. 72 7,216
327,509
Communication services (1.1%)
ADTRAN, Inc. 158 6,772
Allot Communications, Ltd. (Israel)(NON) 62 960
American Tower Corp. Class A(NON) 276 15,312
Aruba Networks, Inc.(NON) 46 1,307
AT&T, Inc. 880 27,773
Atlantic Tele-Network, Inc. 34 1,300
Brightpoint, Inc.(NON) 207 1,871
Cincinnati Bell, Inc.(NON) 690 2,194
DIRECTV Class A(NON) 651 32,719
EchoStar Corp. Class A(NON) 411 13,847
Finisar Corp.(NON) 69 1,657
France Telecom SA (France) 679 15,552
HSN, Inc.(NON) 51 1,796
IAC/InterActiveCorp.(NON) 701 25,783
InterDigital, Inc. 18 774
Iridium Communications, Inc.(NON) 707 6,306
Loral Space & Communications, Inc.(NON) 47 3,126
MetroPCS Communications, Inc.(NON) 269 4,815
NeuStar, Inc. Class A(NON) 119 3,184
Newport Corp.(NON) 69 1,255
NII Holdings, Inc.(NON) 613 26,764
NTELOS Holdings Corp. 137 2,856
Partner Communications Co., Ltd. (Israel) 383 6,513
Telecom Corp. of New Zealand, Ltd. (New Zealand) 8,278 16,402
Telstra Corp., Ltd. (Australia) 5,135 16,557
USA Mobility, Inc. 128 2,081
Verizon Communications, Inc. 1,138 42,026
281,502
Conglomerates (0.5%)
3M Co. 46 4,341
General Electric Co. 1,998 39,241
Honeywell International, Inc. 668 39,779
SPX Corp. 246 20,396
Vivendi (France) 635 17,794
121,551
Consumer cyclicals (2.7%)
Advance Auto Parts, Inc. 223 13,848
Aeropostale, Inc.(NON) 71 1,342
Alliance Data Systems Corp.(NON) 33 3,100
AMERCO(NON) 9 813
ANN, Inc.(NON) 129 3,631
Ascena Retail Group, Inc.(NON) 91 3,045
Bridgestone Corp. (Japan) 200 4,548
Cash America International, Inc. 44 2,291
Childrens Place Retail Stores, Inc. (The)(NON) 32 1,608
Coach, Inc. 309 19,671
Cooper Tire & Rubber 39 942
Deckers Outdoor Corp.(NON) 72 6,559
Deluxe Corp. 154 3,964
DSW, Inc. Class A(NON) 142 7,121
Dun & Bradstreet Corp. (The) 223 17,887
Expedia, Inc. 520 14,565
EZCORP, Inc. Class A(NON) 199 6,525
Finish Line, Inc. (The) Class A 214 4,935
Foot Locker, Inc. 663 16,535
GameStop Corp. Class A(NON) 511 14,298
Genesco, Inc.(NON) 83 3,734
Gordmans Stores, Inc.(NON) 71 1,235
Great Lakes Dredge & Dock Corp. 333 2,021
Helen of Troy, Ltd. (Bermuda)(NON) 32 1,036
Host Marriott Corp.(R) 1,761 30,958
Iconix Brand Group, Inc.(NON) 100 2,470
Interpublic Group of Companies, Inc. (The) 1,334 15,915
Jos. A. Bank Clothiers, Inc.(NON) 90 5,139
Kenneth Cole Productions, Inc. Class A(NON) 75 937
Kimberly-Clark Corp. 433 29,574
Kingfisher PLC (United Kingdom) 2,109 9,995
Kirkland's, Inc.(NON) 77 1,006
Knology, Inc.(NON) 156 2,435
La-Z-Boy, Inc.(NON) 262 2,900
Limited Brands, Inc. 581 23,217
Maidenform Brands, Inc.(NON) 107 3,224
Mediaset SpA (Italy) 997 5,219
Medifast, Inc.(NON) 85 2,271
Men's Wearhouse, Inc. (The) 152 5,233
Moody's Corp. 583 23,268
News Corp. Class A 1,908 34,993
Next PLC (United Kingdom) 212 7,931
Nu Skin Enterprises, Inc. Class A 90 3,518
OfficeMax, Inc.(NON) 86 719
Omnicom Group, Inc. 523 24,461
Perry Ellis International, Inc.(NON) 137 4,275
Peugeot SA (France)(NON) 233 9,910
Phillips-Van Heusen Corp. 27 1,781
R. R. Donnelley & Sons Co. 955 20,380
Rent-A-Center, Inc. 114 3,700
Select Comfort Corp.(NON) 150 2,451
Signet Jewelers, Ltd. (Bermuda)(NON) 35 1,610
Sinclair Broadcast Group, Inc. Class A 147 1,414
Sonic Automotive, Inc. Class A 566 7,398
Sony Corp. (Japan) 300 8,029
Sotheby's Holdings, Inc. Class A 56 2,383
Stage Stores, Inc. 136 2,453
Steven Madden, Ltd.(NON) 124 6,912
Swire Pacific, Ltd. (Hong Kong) 1,000 15,413
Thomas Cook Group PLC (United Kingdom) 3,090 7,674
Time Warner, Inc. 828 30,164
TJX Cos., Inc. (The) 492 26,086
TNS, Inc.(NON) 170 2,793
Toro Co. (The) 28 1,789
Tractor Supply Co. 26 1,642
Trump Entertainment Resorts, Inc.(F) 6 30
TRW Automotive Holdings Corp.(NON) 170 9,668
UniFirst Corp. 35 1,877
ValueClick, Inc.(NON) 56 1,011
VF Corp. 87 8,671
Volkswagen AG (Preference) (Germany) 86 15,292
Volvo AB Class B (Sweden) 124 2,244
Wal-Mart Stores, Inc. 940 51,907
Walt Disney Co. (The) 159 6,619
Warnaco Group, Inc. (The)(NON) 80 4,412
Wheelock and Co., Ltd. (Hong Kong) 1,000 4,197
Whirlpool Corp. 175 14,665
Williams-Sonoma, Inc. 352 13,781
World Fuel Services Corp. 53 1,939
Zale Corp.(NON) 290 1,815
687,022
Consumer staples (1.8%)
ACCO Brands Corp.(NON) 224 1,859
AFC Enterprises(NON) 446 7,395
Avis Budget Group, Inc.(NON) 131 2,304
Biglari Holdings, Inc.(NON) 6 2,391
Career Education Corp.(NON) 152 3,268
CEC Entertainment, Inc. 109 4,435
Coca-Cola Co. (The) 345 23,049
Core-Mark Holding Co., Inc.(NON) 51 1,823
Costco Wholesale Corp. 484 39,920
DineEquity, Inc.(NON) 40 2,150
Domino's Pizza, Inc.(NON) 204 5,084
Dr. Pepper Snapple Group, Inc. 628 25,874
Elizabeth Arden, Inc.(NON) 171 5,255
Energizer Holdings, Inc.(NON) 134 10,325
Estee Lauder Cos., Inc. (The) Class A 160 16,402
Genuine Parts Co. 340 18,632
Heineken NV (Netherlands) 152 9,146
Hershey Co. (The) 460 25,636
ITT Educational Services, Inc.(NON) 24 1,651
Kao Corp. (Japan) 400 10,284
Lifetime Brands, Inc. 54 619
Lincoln Educational Services Corp. 140 2,048
Lorillard, Inc. 125 14,410
McDonald's Corp. 125 10,193
Metro AG (Germany) 105 7,009
National Presto Industries, Inc. 14 1,468
Nestle SA (Switzerland) 452 29,021
On Assignment, Inc.(NON) 131 1,463
OpenTable, Inc.(NON) 15 1,325
Papa John's International, Inc.(NON) 46 1,524
PepsiCo, Inc. 242 17,211
Philip Morris International, Inc. 261 18,727
Prestige Brands Holdings, Inc.(NON) 193 2,492
Procter & Gamble Co. (The) 559 37,453
Reckitt Benckiser Group PLC (United Kingdom) 161 9,141
Revlon, Inc. Class A(NON) 106 1,868
Ruth's Hospitality Group, Inc.(NON) 102 546
Safeway, Inc. 1,109 27,392
Sally Beauty Holdings, Inc.(NON) 201 3,369
Shutterfly, Inc.(NON) 26 1,576
Spartan Stores, Inc. 90 1,679
Suedzucker AG (Germany) 147 4,632
Tesco PLC (United Kingdom) 1,593 11,006
USANA Health Sciences, Inc.(NON) 24 705
W.W. Grainger, Inc. 185 27,948
Woolworths, Ltd. (Australia) 161 4,717
456,425
Energy (2.4%)
Atwood Oceanics, Inc.(NON) 92 3,987
BP PLC (United Kingdom) 1,671 12,893
Caltex Australia, Ltd. (Australia) 322 4,860
Cameron International Corp.(NON) 588 28,024
Chevron Corp. 370 38,817
Cimarex Energy Co. 318 30,506
Cloud Peak Energy, Inc.(NON) 60 1,274
Complete Production Services, Inc.(NON) 135 4,481
ConocoPhillips 177 12,960
Contango Oil & Gas Co.(NON) 39 2,416
Energy Partners, Ltd.(NON) 266 4,267
Exxon Mobil Corp. 1,314 109,680
GT Solar International, Inc.(NON) 360 4,594
Halliburton Co. 917 45,988
Helix Energy Solutions Group, Inc.(NON) 305 5,344
James River Coal Co.(NON) 101 2,214
JX Holdings, Inc. (Japan) 2,500 16,559
Marathon Oil Corp. 505 27,356
Murphy Oil Corp. 400 27,556
Occidental Petroleum Corp. 55 5,932
Oceaneering International, Inc.(NON) 326 26,569
Oil States International, Inc.(NON) 39 3,083
Peabody Energy Corp. 520 31,907
Petrofac, Ltd. (United Kingdom) 296 7,839
Petroleum Development Corp.(NON) 83 3,017
Petroquest Energy, Inc.(NON) 99 791
Rosetta Resources, Inc.(NON) 129 6,340
Royal Dutch Shell PLC Class A (United Kingdom) 269 9,716
Schlumberger, Ltd. 105 9,001
Stallion Oilfield Holdings, Ltd. 28 1,169
Stone Energy Corp.(NON) 234 7,549
Sunoco, Inc. 562 22,755
Swift Energy Co.(NON) 81 3,178
TETRA Technologies, Inc.(NON) 146 1,991
Tidewater, Inc. 68 3,716
Unit Corp.(NON) 48 2,764
Vaalco Energy, Inc.(NON) 255 1,811
Valero Energy Corp. 1,331 36,603
W&T Offshore, Inc. 136 3,522
Walter Energy, Inc. 156 19,430
592,459
Financials (7.4%)
Acadia Realty Trust(R) 541 11,172
Affiliated Managers Group(NON) 306 32,353
Aflac, Inc. 271 12,951
Agree Realty Corp.(R) 89 2,025
Alexander's, Inc. 26 10,198
Alexandria Real Estate Equities, Inc.(R) 180 14,857
Allied World Assurance Company Holdings, Ltd. 338 20,490
AMB Property Corp.(R) 491 18,162
American Capital Agency Corp.(R) 66 2,004
American Equity Investment Life Holding Co. 280 3,637
American Express Co. 738 38,081
American Financial Group, Inc. 486 17,282
American Safety Insurance Holdings, Ltd.(NON) 142 2,631
Annaly Capital Management, Inc.(R) 1,169 21,194
Anworth Mortgage Asset Corp.(R) 227 1,646
Arch Capital Group, Ltd.(NON) 549 18,518
Ashford Hospitality Trust, Inc.(R) 1,348 19,236
Aspen Insurance Holdings, Ltd. 84 2,256
Assurant, Inc. 405 14,981
Assured Guaranty, Ltd. (Bermuda) 145 2,468
AvalonBay Communities, Inc.(R) 216 28,743
Aviva PLC (United Kingdom) 2,370 17,075
Baloise Holding AG Class R (Switzerland) 62 6,540
Banco Bilbao Vizcaya Argentaria SA (BBVA) (Spain) 415 4,859
Banco Latinoamericano de Exportaciones SA Class E (Panama) 197 3,558
Banco Santander Central Hispano SA (Spain) 1,896 22,589
Bank of America Corp. 1,511 17,754
Bank of Marin Bancorp. 36 1,315
Bank of the Ozarks, Inc. 98 4,764
Barclays PLC (United Kingdom) 1,717 7,847
Berkshire Hathaway, Inc. Class B(NON) 264 20,874
BioMed Realty Trust, Inc.(R) 547 11,208
Boston Properties, Inc.(R) 373 40,415
Brandywine Realty Trust(R) 818 10,438
BRE Properties(R) 314 16,020
Broadridge Financial Solutions, Inc. 775 17,732
Calamos Asset Management, Inc. Class A 115 1,724
Camden Property Trust(R) 195 12,535
Cardtronics, Inc.(NON) 140 3,100
CBL & Associates Properties, Inc.(R) 1,241 23,877
Citigroup, Inc.(NON) 209 8,600
CNO Financial Group, Inc.(NON) 379 2,933
Colonial Properties Trust (Canada)(R) 605 12,766
CommonWealth REIT(R) 521 13,598
Community Bank System, Inc. 82 2,057
Delek Group, Ltd. (Israel) 10 2,426
Developers Diversified Realty Corp.(R) 849 12,302
Digital Realty Trust, Inc.(R) 204 12,723
Dollar Financial Corp.(NON) 196 4,451
Douglas Emmett, Inc.(R) 617 12,988
Duke Realty Investments, Inc.(R) 788 11,852
DuPont Fabros Technology, Inc.(R) 429 11,214
E*Trade Financial Corp.(NON) 254 4,016
Encore Capital Group, Inc.(NON) 66 2,184
Endurance Specialty Holdings, Ltd. (Bermuda) 316 12,833
Entertainment Properties Trust(R) 232 11,271
Equity Lifestyle Properties, Inc.(R) 189 11,104
Equity Residential Trust(R) 1,001 61,892
Essex Property Trust, Inc.(R) 94 12,935
Evercore Partners, Inc. Class A 46 1,702
Extra Space Storage, Inc.(R) 682 14,840
Federal Realty Investment Trust(R) 234 20,498
Financial Institutions, Inc. 113 1,845
First Financial Bancorp 125 2,000
First Industrial Realty Trust(NON)(R) 153 1,925
Flagstone Reinsurance Holdings SA (Luxembourg) 205 1,792
Flushing Financial Corp. 191 2,563
General Growth Properties 1,261 20,781
Glimcher Realty Trust(R) 329 3,369
Goldman Sachs Group, Inc. (The) 50 7,037
Hang Lung Group, Ltd. (Hong Kong) 1,000 6,504
HCP, Inc.(R) 1,277 48,449
Health Care REIT, Inc.(R) 291 15,478
Hersha Hospitality Trust(R) 1,652 9,945
Highwoods Properties, Inc.(R) 344 12,412
Home Bancshares, Inc. 83 1,990
Home Properties of NY, Inc.(R) 199 12,318
Hospitality Properties Trust(R) 663 16,363
Hudson City Bancorp, Inc. 2,622 23,939
International Bancshares Corp. 143 2,441
Intesa Sanpaolo SpA (Italy) 4,989 12,989
Invesco Mortgage Capital, Inc.(R) 88 2,004
JPMorgan Chase & Co. 1,021 44,148
Kimco Realty Corp.(R) 1,376 26,846
Kinnevik Investment AB Class B (Sweden) 563 13,791
KKR & Co. LP 226 3,885
Lexington Realty Trust(R) 1,641 15,491
Liberty Property Trust(R) 1,201 43,308
Lloyds Banking Group PLC (United Kingdom)(NON) 12,812 10,989
LTC Properties, Inc.(R) 120 3,542
Macerich Co. (The)(R) 456 24,793
Mack-Cali Realty Corp.(R) 371 13,119
Maiden Holdings, Ltd. (Bermuda) 190 1,786
Man Group PLC (United Kingdom) 3,976 16,843
Medical Properties Trust, Inc.(R) 1,138 14,066
Merchants Bancshares, Inc. 51 1,291
Mid-America Apartment Communities, Inc.(R) 238 16,315
Mission West Properties(R) 160 1,320
Nasdaq OMX Group, Inc. (The)(NON) 1,023 26,107
National Australia Bank, Ltd. (Australia) 681 19,268
National Health Investors, Inc.(R) 357 16,822
National Retail Properties, Inc.(R) 409 10,544
Nationwide Health Properties, Inc.(R) 516 22,601
Nelnet, Inc. Class A 103 2,265
Newcastle Investment Corp.(NON)(R) 217 1,189
Omega Healthcare Investors, Inc.(R) 90 1,916
Orrstown Financial Services, Inc. 47 1,228
Park National Corp. 17 1,146
Piedmont Office Realty Trust, Inc. Class A(R) 524 10,773
PNC Financial Services Group, Inc. 468 29,213
Popular, Inc. (Puerto Rico)(NON) 437 1,267
Portfolio Recovery Associates, Inc.(NON) 22 1,906
Post Properties, Inc.(R) 299 12,588
ProLogis(R) 1,597 26,446
Protective Life Corp. 88 2,124
PS Business Parks, Inc.(R) 59 3,392
Public Storage(R) 399 47,218
Realty Income Corp.(R) 306 10,753
Regency Centers Corp.(R) 238 11,022
RenaissanceRe Holdings, Ltd. 253 18,206
Republic Bancorp, Inc. Class A 41 839
Saul Centers, Inc.(R) 42 1,677
SeaCube Container Leasing, Ltd. 146 2,621
Senior Housing Properties Trust(R) 503 12,147
Simon Property Group, Inc.(R) 941 111,094
SL Green Realty Corp.(R) 342 30,783
Southside Bancshares, Inc. 100 2,016
Sovran Self Storage, Inc.(R) 286 12,001
St. Joe Co. (The)(NON) 39 847
Starwood Property Trust, Inc.(R) 67 1,457
Sumitomo Mitsui Financial Group, Inc. (Japan) 600 17,391
Symetra Financial Corp. 190 2,550
U.S. Bancorp 655 16,768
UDR, Inc.(R) 477 12,431
Universal Health Realty Income Trust(R) 29 1,256
Universal Insurance Holdings, Inc. 254 1,369
Urstadt Biddle Properties, Inc. Class A(R) 90 1,724
Virginia Commerce Bancorp, Inc.(NON) 279 1,624
Vornado Realty Trust(R) 513 50,469
Weingarten Realty Investors(R) 441 11,739
Wells Fargo & Co. 689 19,547
Westpac Banking Corp. (Australia) 204 4,826
World Acceptance Corp.(NON) 35 2,334
1,855,475
Health care (2.8%)
Abbott Laboratories 172 8,987
Acorda Therapeutics, Inc.(NON) 40 1,314
Aetna, Inc. 569 24,854
Air Methods Corp.(NON) 26 1,587
Akorn, Inc.(NON) 122 831
Allergan, Inc. 364 30,114
Amedisys, Inc.(NON) 58 1,815
AmerisourceBergen Corp. 449 18,508
AMN Healthcare Services, Inc.(NON) 222 1,920
AmSurg Corp.(NON) 45 1,166
Amylin Pharmaceuticals, Inc.(NON) 62 861
AstraZeneca PLC (United Kingdom) 383 20,040
Auxilium Pharmaceuticals, Inc.(NON) 71 1,590
BioMarin Pharmaceuticals, Inc.(NON) 58 1,637
Bruker Corp.(NON) 87 1,716
Cardinal Health, Inc. 486 22,074
Continucare Corp.(NON) 300 1,413
Cooper Companies, Inc. (The) 49 3,671
Cubist Pharmaceuticals, Inc.(NON) 96 3,699
Dendreon Corp.(NON) 94 3,985
Elan Corp. PLC ADR (Ireland)(NON) 720 6,890
Eli Lilly & Co. 589 22,665
Endo Pharmaceuticals Holdings, Inc.(NON) 236 9,825
Forest Laboratories, Inc.(NON) 730 26,295
Fresenius SE (Germany) 152 15,994
Gentiva Health Services, Inc.(NON) 53 1,297
Gilead Sciences, Inc.(NON) 782 32,641
Health Management Associates, Inc. Class A(NON) 396 4,514
Health Net, Inc.(NON) 277 8,889
HealthSouth Corp.(NON) 46 1,291
HealthSpring, Inc.(NON) 121 5,306
Healthways, Inc.(NON) 109 1,767
Hi-Tech Pharmacal Co., Inc.(NON) 98 2,750
Human Genome Sciences, Inc.(NON) 104 2,846
Humana, Inc.(NON) 260 20,938
Impax Laboratories, Inc.(NON) 255 6,847
Ironwood Pharmaceuticals, Inc.(NON) 56 847
ISTA Pharmaceuticals, Inc.(NON) 158 1,468
Johnson & Johnson 522 35,125
Kensey Nash Corp.(NON) 78 2,052
Kindred Healthcare, Inc.(NON) 43 1,055
Kinetic Concepts, Inc.(NON) 84 4,985
Laboratory Corp. of America Holdings(NON) 164 16,536
Lincare Holdings, Inc. 139 4,214
Magellan Health Services, Inc.(NON) 110 5,823
Medco Health Solutions, Inc.(NON) 438 26,219
Medicines Co. (The)(NON) 91 1,739
Medicis Pharmaceutical Corp. Class A 158 5,920
Merck & Co., Inc. 1,039 38,183
Momenta Pharmaceuticals, Inc.(NON) 52 1,041
Novartis AG (Switzerland) 143 9,244
Obagi Medical Products, Inc.(NON) 236 2,358
OraSure Technologies, Inc.(NON) 632 5,448
Orion Oyj Class B (Finland) 237 6,160
Pain Therapeutics, Inc.(NON) 89 886
Par Pharmaceutical Cos., Inc.(NON) 229 7,868
Perrigo Co. 297 25,411
Pfizer, Inc. 1,391 29,837
PharMerica Corp.(NON) 64 790
Providence Service Corp. (The)(NON) 82 1,115
Questcor Pharmaceuticals, Inc.(NON) 189 4,360
Salix Pharmaceuticals, Ltd.(NON) 43 1,721
Sanofi (France) 100 7,929
Sciclone Pharmaceuticals, Inc.(NON) 439 2,559
Select Medical Holdings Corp.(NON) 285 2,708
Sequenom, Inc.(NON) 230 1,824
Sirona Dental Systems, Inc.(NON) 34 1,838
STAAR Surgical Co.(NON) 198 1,172
Steris Corp. 101 3,645
Takeda Pharmaceutical Co., Ltd. (Japan) 400 19,016
Thoratec Corp.(NON) 49 1,704
United Therapeutics Corp.(NON) 31 2,002
UnitedHealth Group, Inc. 767 37,545
Ventas, Inc.(R) 393 22,165
Viropharma, Inc.(NON) 180 3,483
Warner Chilcott PLC Class A (Ireland) 263 6,341
Waters Corp.(NON) 304 29,962
Watson Pharmaceuticals, Inc.(NON) 87 5,598
WellCare Health Plans, Inc.(NON) 63 3,103
West Pharmaceutical Services, Inc. 31 1,441
WuXi PharmaTech (Cayman), Inc. ADR (China)(NON) 101 1,843
718,820
Technology (3.3%)
Accenture PLC Class A 719 41,263
Acme Packet, Inc.(NON) 8 606
Actuate Corp.(NON) 177 963
Amdocs, Ltd. (United Kingdom)(NON) 836 25,448
Amkor Technologies, Inc.(NON) 165 1,054
Analog Devices, Inc. 325 13,380
Anixter International, Inc. 88 5,957
Apple, Inc.(NON) 221 76,870
Applied Materials, Inc. 2,343 32,287
Black Box Corp. 80 2,637
Brocade Communications Systems, Inc.(NON) 395 2,635
CA, Inc. 500 11,700
Cavium Networks, Inc.(NON) 76 3,380
Ceragon Networks, Ltd. (Israel)(NON) 97 1,072
Cirrus Logic, Inc.(NON) 120 1,974
Cisco Systems, Inc. 1,050 17,640
Coherent, Inc.(NON) 32 1,795
Convergys Corp.(NON) 191 2,441
CSG Systems International, Inc.(NON) 241 4,601
DDi Corp. 105 958
Dell, Inc.(NON) 1,386 22,287
EnerSys(NON) 118 4,224
Entegris, Inc.(NON) 378 3,470
F5 Networks, Inc.(NON) 26 2,953
Fair Isaac Corp. 78 2,282
Fairchild Semiconductor Intl., Inc.(NON) 394 7,108
Fortinet, Inc.(NON) 35 1,697
Fujitsu, Ltd. (Japan) 1,000 5,271
Global Payments, Inc. 416 21,615
Google, Inc. Class A(NON) 43 22,748
Harris Corp. 532 26,302
Hewlett-Packard Co. 1,200 44,856
Hitachi, Ltd. (Japan) 3,000 17,216
IBM Corp. 269 45,442
Informatica Corp.(NON) 93 5,455
Infospace, Inc.(NON) 106 986
Integrated Silicon Solutions, Inc.(NON) 68 628
Intel Corp. 927 20,867
Ixia(NON) 169 2,660
KEMET Corp.(NON) 157 2,311
L-3 Communications Holdings, Inc. 298 24,332
Lexmark International, Inc. Class A(NON) 49 1,459
LivePerson, Inc.(NON) 115 1,364
LTX-Credence Corp.(NON) 346 3,287
Magma Design Automation, Inc.(NON) 426 2,973
Microsoft Corp. 2,772 69,328
MicroStrategy, Inc.(NON) 41 5,994
Monotype Imaging Holdings, Inc.(NON) 177 2,522
Nokia OYJ (Finland) 1,062 7,413
Nova Measuring Instruments, Ltd. (Israel)(NON) 254 2,604
ON Semiconductor Corp.(NON) 997 11,186
Oplink Communications, Inc.(NON) 83 1,534
Oracle Corp. 535 18,308
Plantronics, Inc. 46 1,683
Polycom, Inc.(NON) 153 8,784
Powerwave Technologies, Inc.(NON) 484 1,830
Progress Software Corp.(NON) 68 1,841
QLogic Corp.(NON) 1,046 16,924
Qualcomm, Inc. 149 8,730
Rubicon Technology, Inc.(NON) 61 1,399
SanDisk Corp.(NON) 469 22,287
Seagate Technology(NON) 1,407 23,638
STEC, Inc.(NON) 73 1,307
Synchronoss Technologies, Inc.(NON) 134 4,301
Tech Data Corp.(NON) 173 8,195
TeleCommunication Systems, Inc. Class A(NON) 409 2,041
Teradata Corp.(NON) 386 21,535
Teradyne, Inc.(NON) 1,221 19,548
TIBCO Software, Inc.(NON) 218 6,124
TTM Technologies, Inc.(NON) 388 6,425
Unisys Corp.(NON) 130 3,634
Veeco Instruments, Inc.(NON) 38 2,188
VeriFone Systems, Inc.(NON) 61 2,936
826,693
Transportation (0.3%)
Alaska Air Group, Inc.(NON) 78 5,268
Alexander & Baldwin, Inc. 101 4,946
CAI International, Inc.(NON) 317 7,405
ComfortDelgro Corp., Ltd. (Singapore) 4,000 4,767
Firstgroup PLC (United Kingdom) 399 2,220
Genesee & Wyoming, Inc. Class A(NON) 56 3,324
HUB Group, Inc. Class A(NON) 46 1,755
Quality Distribution, Inc.(NON) 96 1,153
TAL International Group, Inc. 102 3,440
United Continental Holdings, Inc.(NON) 824 19,900
US Airways Group, Inc.(NON)(S) 668 6,079
Wabtec Corp. 100 6,759
Yangzijiang Shipbuilding Holdings, Ltd. (China) 5,000 6,487
73,503
Utilities and power (0.8%)
AES Corp. (The)(NON) 1,200 15,552
Alliant Energy Corp. 508 20,894
American Electric Power Co., Inc. 198 7,564
DPL, Inc. 634 19,128
El Paso Corp. 1,871 39,385
Enel SpA (Italy) 1,500 10,305
Energias de Portugal (EDP) SA (Portugal) 4,294 15,977
Exelon Corp. 627 26,240
Public Power Corp. SA (Greece) 364 4,829
Red Electrica Corp. SA (Spain) 256 15,491
TECO Energy, Inc. 1,027 19,718
Westar Energy, Inc. 639 17,374
212,457
Total Common stocks (cost $4,899,672) $6,510,094

CORPORATE BONDS AND NOTES (14.0%)(a)
Principal amount Value
Basic materials (0.9%)
Allegheny Technologies, Inc. sr. unsec. unsub. notes 5.95s, 2021 $5,000 $5,479
ArcelorMittal sr. unsec. unsub. notes 7s, 2039 (France) 10,000 10,422
Celanese US Holdings, LLC sr. notes 5 7/8s, 2021 (Germany) 5,000 5,113
CF Industries, Inc. company guaranty sr. unsec. unsub. notes 6 7/8s, 2018 5,000 5,744
Dow Chemical Co. (The) sr. unsec. unsub. notes 8.55s, 2019 20,000 26,044
Freeport-McMoRan Copper & Gold, Inc. sr. unsec. notes 8 3/8s, 2017 23,000 25,185
Georgia-Pacific, LLC 144A company guaranty sr. notes 5.4s, 2020 10,000 10,396
Hanson PLC company guaranty 6 1/8s, 2016 (United Kingdom) 55,000 57,956
International Paper Co. sr. unsec. notes 9 3/8s, 2019 11,000 14,464
International Paper Co. sr. unsec. unsub. notes 7.3s, 2039 5,000 5,805
Novelis, Inc. company guaranty sr. unsec. notes 7 1/4s, 2015 5,000 5,063
Old All, Inc. company guaranty sr. unsec. notes 9s, 2014 (In default)(F)(NON) 15,000 —
Rio Tinto Finance USA, Ltd. company guaranty sr. unsec. notes 5.2s, 2040 (Australia) 15,000 14,720
Sealed Air Corp. sr. notes 7 7/8s, 2017 10,000 11,269
Steel Dynamics, Inc. sr. unsec. unsub. notes 7 3/4s, 2016 5,000 5,313
Teck Resources Limited sr. notes 10 3/4s, 2019 (Canada) 8,000 10,190
Teck Resources Limited sr. notes 10 1/4s, 2016 (Canada) 9,000 10,800
Teck Resources Limited sr. notes 9 3/4s, 2014 (Canada) 1,000 1,221
Temple-Inland, Inc. sr. unsec. unsub. notes 6 5/8s, 2018 5,000 5,582
230,766
Capital goods (0.2%)
Alliant Techsystems, Inc. sr. sub. notes 6 3/4s, 2016 25,000 25,688
Legrand SA unsec. unsub. debs. 8 1/2s, 2025 (France) 10,000 12,905
Republic Services, Inc. company guaranty sr. unsec. notes 5.7s, 2041 5,000 5,046
Republic Services, Inc. company guaranty sr. unsec. notes 3.8s, 2018 5,000 5,070
Ryerson, Inc. company guaranty sr. notes 12s, 2015 5,000 5,388
54,097
Communication services (1.9%)
American Tower Corp. sr. unsec. notes 7 1/4s, 2019 5,000 5,744
American Tower Corp. sr. unsec. notes 7s, 2017 5,000 5,750
AT&T, Inc. sr. unsec. unsub. bonds 5 1/2s, 2018 25,000 27,868
CCH II, LLC/CCH II Capital company guaranty sr. unsec. notes 13 1/2s, 2016 43,854 52,186
CenturyLink, Inc. sr. unsec. debs. bonds Ser. G, 6 7/8s, 2028 5,000 4,936
CenturyLink, Inc. sr. unsec. unsub. notes Ser. P, 7.6s, 2039 5,000 5,113
Clearwire Communications, LLC/Clearwire Finance, Inc. 144A company guaranty sr. notes 12s, 2015 5,000 5,469
Comcast Cable Communications company guaranty sr. unsub. notes 8 7/8s, 2017 10,000 12,793
Comcast Corp. company guaranty sr. unsec. unsub. notes 6.95s, 2037 15,000 17,272
Crown Castle Towers, LLC 144A company guaranty sr. notes 4.883s, 2020 5,000 5,068
CSC Holdings LLC sr. unsec. unsub. notes 8 1/2s, 2014 5,000 5,600
Frontier Communications Corp. sr. unsec. notes 7 7/8s, 2015 5,000 5,438
Intelsat Jackson Holding Co. company guaranty sr. unsec. notes 11 1/4s, 2016 (Bermuda) 20,000 21,200
Intelsat Luxembourg SA company guaranty sr. unsec. notes 11 1/2s, 2017 (Luxembourg)(PIK) 5,156 5,588
Intelsat Luxembourg SA company guaranty sr. unsec. notes 11 1/4s, 2017 (Luxembourg) 15,000 16,200
Level 3 Financing, Inc. company guaranty sr. unsec. unsub. notes 9 1/4s, 2014 26,000 26,780
NBC Universal, Inc. 144A notes 6.4s, 2040 5,000 5,451
NII Capital Corp. company guaranty sr. unsec. unsub. notes 10s, 2016 15,000 17,213
Qwest Communications International, Inc. company guaranty Ser. B, 7 1/2s, 2014 100,000 101,375
Rogers Communications, Inc. company guaranty notes 6.8s, 2018 (Canada) 5,000 5,944
SBA Tower Trust 144A company guaranty asset backed notes 5.101s, 2017 10,000 10,647
Sprint Capital Corp. company guaranty 6 7/8s, 2028 40,000 38,800
Telefonica Emisones SAU company guaranty sr. unsec. notes 5.462s, 2021 (Spain) 10,000 10,390
Time Warner Cable, Inc. company guaranty sr. notes 7.3s, 2038 10,000 11,660
Time Warner Cable, Inc. company guaranty sr. unsec. 6 3/4s, 2018 5,000 5,813
Time Warner Cable, Inc. company guaranty sr. unsec. unsub. notes 6 3/4s, 2039 5,000 5,494
Verizon Communications, Inc. sr. unsec. notes 7.35s, 2039 7,000 8,652
Verizon Communications, Inc. sr. unsec. unsub. notes 8 3/4s, 2018 13,000 17,004
Windstream Corp. company guaranty sr. unsec. unsub. notes 8 1/8s, 2013 5,000 5,488
466,936
Consumer cyclicals (1.8%)
Advance Auto Parts, Inc. company guaranty sr. unsec. notes 5 3/4s, 2020 5,000 5,356
Affinion Group Holdings, Inc. 144A company guaranty sr. notes 11 5/8s, 2015 4,000 4,050
Affinion Group, Inc. company guaranty sr. unsec. sub. notes 11 1/2s, 2015 6,000 6,240
American Media, Inc. 144A notes 13 1/2s, 2018 320 347
Bon-Ton Department Stores, Inc. (The) company guaranty 10 1/4s, 2014 5,000 5,088
Caesars Entertainment Operating Co., Inc. company guaranty sr. notes 10s, 2018 52,000 48,100
CBS Corp. company guaranty sr. unsec. notes 7 7/8s, 2030 5,000 6,058
Cenveo Corp. 144A company guaranty sr. unsec. notes 10 1/2s, 2016 10,000 10,075
Choice Hotels International, Inc. company guaranty sr. unsec. unsub. notes 5.7s, 2020 5,000 5,124
Clear Channel Worldwide Holdings, Inc. company guaranty sr. unsec. unsub. notes Ser. B, 9 1/4s, 2017 20,000 21,850
Compucom Systems, Inc. 144A sr. sub. notes 12 1/2s, 2015 5,000 5,369
DIRECTV Holdings, LLC/DIRECTV Financing Co., Inc. company guaranty sr. unsec. notes 6.35s, 2040 10,000 10,741
DISH DBS Corp. 144A company guaranty sr. unsec. notes 6 3/4s, 2021 5,000 5,050
Echostar DBS Corp. sr. notes 6 3/8s, 2011 35,000 35,481
Expedia, Inc. company guaranty sr. unsec. notes 7.456s, 2018 45,000 50,513
Goodyear Tire & Rubber Co. (The) sr. unsec. notes 10 1/2s, 2016 3,000 3,398
Host Hotels & Resorts LP company guaranty sr. unsec. unsub. notes Ser. Q, 6 3/4s, 2016(R) 10,000 10,325
Isle of Capri Casinos, Inc. company guaranty 7s, 2014 6,000 5,955
Jarden Corp. company guaranty sr. unsec. sub. notes 7 1/2s, 2017 30,000 31,950
Lender Processing Services, Inc. company guaranty sr. unsec. unsub. notes 8 1/8s, 2016 20,000 20,400
Levi Strauss & Co. sr. unsec. notes 8 7/8s, 2016 5,000 5,213
Liberty Media, LLC. debs. 8 1/4s, 2030 5,000 4,869
Limited Brands, Inc. company guaranty sr. unsec. notes 6 5/8s, 2021 5,000 5,194
Mashantucket Western Pequot Tribe 144A bonds 8 1/2s, 2015 (In default)(NON) 20,000 1,650
Michaels Stores, Inc. company guaranty 11 3/8s, 2016 5,000 5,406
News America, Inc. company guaranty sr. unsec. notes 6.9s, 2019 25,000 29,706
Omnicom Group, Inc. sr. unsec. unsub. notes 4.45s, 2020 5,000 5,000
Penske Automotive Group, Inc. company guaranty sr. unsec. sub. notes 7 3/4s, 2016 5,000 5,150
QVC Inc. 144A sr. notes 7 1/8s, 2017 5,000 5,350
Sears Holdings Corp. 144A sr. notes 6 5/8s, 2018 3,000 2,760
Station Casinos, Inc. sr. sub. notes 6 7/8s, 2016 (In default)(NON) 15,000 2
Time Warner, Inc. company guaranty sr. unsec. bonds 7.7s, 2032 10,000 12,192
Travelport LLC company guaranty 9 7/8s, 2014 35,000 32,463
Vertis, Inc. company guaranty sr. notes 13 1/2s, 2014 (In default)(F)(NON)(PIK) 4,537 227
XM Satellite Radio, Inc. 144A company guaranty sr. unsec. notes 13s, 2013 15,000 17,850
Yankee Acquisition Corp. company guaranty sr. notes Ser. B, 8 1/2s, 2015 25,000 26,031
450,533
Consumer staples (1.3%)
Altria Group, Inc. company guaranty sr. unsec. notes 9 1/4s, 2019 10,000 13,210
Anheuser-Busch InBev Worldwide, Inc. company guaranty sr. unsec. unsub. notes 8.2s, 2039 10,000 14,124
Anheuser-Busch InBev Worldwide, Inc. company guaranty sr. unsec. unsub. notes 7 3/4s, 2019 10,000 12,766
Claire's Stores, Inc. 144A company guaranty sr. unsec. notes 9 5/8s, 2015 (In default)(NON)(PIK) 13,404 13,370
Constellation Brands, Inc. company guaranty sr. unsec. unsub. notes 7 1/4s, 2016 10,000 10,938
CVS Caremark Corp. jr. unsec. sub. bonds FRB 6.302s, 2037 10,000 9,900
Darden Restaurants, Inc. sr. unsec. unsub. notes 6.8s, 2037 10,000 11,371
H.J. Heinz Co. sr. unsec. notes 5.35s, 2013 5,000 5,449
Hertz Corp. company guaranty sr. unsec. notes 8 7/8s, 2014 4,000 4,100
Kraft Foods, Inc. sr. unsec. unsub. notes 6 1/2s, 2040 20,000 22,565
McDonald's Corp. sr. unsec. notes 5.7s, 2039 40,000 43,913
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp. company guaranty sr. unsec. notes 9 1/4s, 2015 5,000 5,238
Rite Aid Corp. company guaranty sr. notes 7 1/2s, 2017 5,000 5,025
Rite Aid Corp. company guaranty sr. unsec. unsub. notes 9 1/2s, 2017 20,000 18,350
Service Corporation International sr. unsec. unsub. notes 6 3/4s, 2016 25,000 26,813
Tyson Foods, Inc. sr. unsec. unsub. notes 10 1/2s, 2014 10,000 12,038
Universal Corp. notes Ser. MTNC, 5.2s, 2013 100,000 104,205
333,375
Energy (1.1%)
Alpha Natural Resources, Inc. company guaranty sr. unsec. notes 6s, 2019(FWC) 2,000 2,018
Anadarko Finance Co. company guaranty sr. unsec. unsub. notes Ser. B, 7 1/2s, 2031 15,000 17,789
BP Capital Markets PLC company guaranty sr. unsec. unsub. notes 4.742s, 2021 (United Kingdom) 5,000 5,174
Chaparral Energy, Inc. company guaranty sr. unsec. notes 8 7/8s, 2017 5,000 5,225
Chesapeake Energy Corp. company guaranty 6 1/2s, 2017 15,000 16,200
Chesapeake Midstream Partners LP/CHKM Finance Corp. 144A company guaranty sr. notes 5 7/8s, 2021 3,000 3,015
Compton Petroleum Finance Corp. company guaranty sr. unsec. notes 10s, 2017 (Canada) 6,043 4,532
Connacher Oil and Gas, Ltd. 144A sec. notes 10 1/4s, 2015 (Canada) 15,000 16,369
Helix Energy Solutions Group, Inc. 144A sr. unsec. notes 9 1/2s, 2016 40,000 42,400
Hornbeck Offshore Services, Inc. sr. notes Ser. B, 6 1/8s, 2014 5,000 5,025
Motiva Enterprises, LLC 144A sr. unsec. notes 6.85s, 2040 5,000 5,959
Newfield Exploration Co. sr. unsec. sub. notes 6 5/8s, 2014 5,000 5,100
Noble Holding International, Ltd. company guaranty sr. unsec. notes 6.05s, 2041 5,000 5,281
OPTI Canada, Inc. company guaranty sr. sec. notes 8 1/4s, 2014 (Canada) 5,000 2,488
Peabody Energy Corp. company guaranty 7 3/8s, 2016 35,000 39,550
Peabody Energy Corp. company guaranty sr. unsec. unsub. notes 6 1/2s, 2020 5,000 5,381
Plains Exploration & Production Co. company guaranty 7s, 2017 25,000 25,688
Pride International, Inc. sr. unsec. notes 7 7/8s, 2040 10,000 12,819
Statoil ASA company guaranty sr. unsec. notes 5.1s, 2040 (Norway) 5,000 5,003
Weatherford Bermuda company guaranty sr. unsec. notes 9 7/8s, 2039 (Switzerland) 20,000 28,964
Williams Cos., Inc. (The) notes 8 3/4s, 2032 11,000 15,178
Williams Cos., Inc. (The) notes 7 3/4s, 2031 4,000 5,053
274,211
Financials (2.9%)
Aflac, Inc. sr. unsec. notes 6.9s, 2039 5,000 5,486
Aflac, Inc. sr. unsec. notes 6.45s, 2040 5,000 5,142
Ally Financial, Inc. company guaranty sr. unsec. notes 7s, 2012 3,000 3,071
Ally Financial, Inc. company guaranty sr. unsec. notes 6 7/8s, 2012 3,000 3,135
Ally Financial, Inc. company guaranty sr. unsec. notes 6 5/8s, 2012 6,000 6,210
Ally Financial, Inc. company guaranty sr. unsec. unsub. notes FRN 2.511s, 2014 1,000 985
American Express Co. sr. unsec. notes 8 1/8s, 2019 45,000 58,037
American International Group, Inc. sr. unsec. Ser. MTN, 5.85s, 2018 5,000 5,309
Assurant, Inc. sr. unsec. notes 6 3/4s, 2034 5,000 5,191
Bank Nederlandse Gemeenten sr. unsec. unsub. notes Ser. EMTN, 3 1/2s, 2014 (Netherlands) NOK 150,000 28,058
BankAmerica Capital III bank guaranteed jr. unsec. FRN 0.848s, 2027 $20,000 16,415
Barclays Bank PLC 144A jr. unsec. sub. notes FRN 6.86s, 2049 35,000 33,775
Bear Stearns Cos., Inc. (The) notes 5.7s, 2014 20,000 22,252
Bear Stearns Cos., Inc. (The) sr. unsec. notes 7 1/4s, 2018 40,000 47,980
Camden Property Trust sr. unsec. notes 4 7/8s, 2023(R) 10,000 9,888
Capital One Capital V company guaranty jr. unsec. sub. notes 10 1/4s, 2039 10,000 10,638
CIT Group, Inc. sr. bonds 7s, 2017 40,000 40,150
Citigroup, Inc. unsec. sub. notes 5 5/8s, 2012 15,000 15,729
CNA Financial Corp. unsec. notes 6 1/2s, 2016 5,000 5,670
Commonwealth Bank of Australia 144A sr. unsec. notes 5s, 2019 (Australia) 5,000 5,258
Corrections Corporation of America company guaranty sr. notes 7 3/4s, 2017 8,000 8,790
Credit Suisse Guernsey, Ltd. jr. unsec. sub. notes FRN 5.86s, 2017 (United Kingdom) 10,000 9,725
Duke Realty LP sr. unsec. notes 6 1/4s, 2013(R) 3,000 3,249
Erac USA Finance, LLC 144A sr. notes 4 1/2s, 2021 10,000 10,024
Fleet Capital Trust V bank guaranteed jr. sub. FRN 1.309s, 2028 20,000 16,215
General Electric Capital Corp. sr. unsec. FRN Ser. MTN, 0.466s, 2016 5,000 4,818
General Electric Capital Corp. sr. unsec. notes Ser. MTN, 6 7/8s, 2039 35,000 40,868
Genworth Financial, Inc. sr. unsec. unsub. notes 7 5/8s, 2021 15,000 15,649
Goldman Sachs Group, Inc. (The) sr. notes 7 1/2s, 2019 10,000 11,699
Hartford Financial Services Group, Inc. (The) jr. unsec. sub. debs. FRB 8 1/8s, 2038 10,000 11,296
Hartford Financial Services Group, Inc. (The) sr. unsec. unsub. notes 6 5/8s, 2040 5,000 5,339
HBOS Capital Funding LP 144A bank guaranty jr. unsec. sub. FRB 6.071s, perpetual maturity (Jersey) 15,000 13,500
HSBC Holdings PLC sr. unsec. notes 5.1s, 2021 (United Kingdom) 10,000 10,406
HUB International Holdings, Inc. 144A sr. sub. notes 10 1/4s, 2015 15,000 15,563
Icahn Enterprises LP/Icahn Enterprises Finance Corp. company guaranty sr. unsec. notes 7 3/4s, 2016 5,000 5,138
International Lease Finance Corp. sr. unsec. notes 6 1/4s, 2019 10,000 10,013
KB Home company guaranty 6 3/8s, 2011 11,000 11,055
Leucadia National Corp. sr. unsec. notes 7 1/8s, 2017 5,000 5,263
Liberty Mutual Group, Inc. 144A company guaranty jr. unsec. sub. notes FRN 7s, 2037 15,000 14,949
Lloyds TSB Bank PLC bank guaranty sr. unsec. unsub. notes 6 3/8s, 2021 (United Kingdom) 20,000 21,017
Macquarie Bank Ltd. 144A unsec. sub. notes 6 5/8s, 2021 (Australia) 15,000 15,330
Massachusetts Mutual Life Insurance Co. 144A notes 8 7/8s, 2039 10,000 14,415
MetLife, Inc. sr. unsec. 6 3/4s, 2016 10,000 11,812
MPT Operating Partnership LP/MPT Finance Corp. 144A company guaranty sr. notes 6 7/8s, 2021(R) 5,000 5,025
Omega Healthcare Investors, Inc. 144A sr. notes 6 3/4s, 2022(R) 9,000 8,978
Progressive Corp. (The) jr. unsec. sub. notes FRN 6.7s, 2037 20,000 21,150
Provident Funding Associates LP/PFG Finance Corp. 144A sr. notes 10 1/4s, 2017 5,000 5,525
Prudential Financial, Inc. sr. unsec. unsub. notes Ser. MTNB, 5.1s, 2014 20,000 21,892
Santander Holdings USA, Inc. sr. unsec. unsub. notes 4 5/8s, 2016 3,000 3,088
Simon Property Group LP sr. unsec. unsub. notes 10.35s, 2019(R) 5,000 7,057
State Street Capital Trust IV company guaranty jr. unsec. sub. bonds FRB 1.31s, 2037 15,000 12,669
Tanger Properties, LP sr. unsec. notes 6 1/8s, 2020(R) 5,000 5,615
Wachovia Corp. sr. unsec. notes 5 3/4s, 2017 10,000 11,354
WEA Finance LLC/ WT Finance Aust. Pty. Ltd. 144A company guaranty sr. unsec. notes 6 3/4s, 2019 15,000 17,471
Willis Group Holdings PLC company guaranty sr. unsec. unsub. notes 5 3/4s, 2021 (United Kingdom) 5,000 5,189
739,525
Government (0.2%)
Asian Development Bank sr. unsec. unsub. notes Ser. GMTN, 3 3/8s, 2014 (Supra-Nation) NOK 150,000 27,708
KFW govt. guaranty Ser. EMTN, 3 1/4s, 2014 (Germany) NOK 160,000 29,698
57,406
Health care (0.5%)
Aetna, Inc. sr. unsec. notes 6 1/2s, 2018 $10,000 11,773
Biomet, Inc. company guaranty sr. unsec. notes 10s, 2017 20,000 22,100
Fresenius Medical Care US Finance, Inc. 144A company guaranty sr. notes 5 3/4s, 2021 5,000 4,913
HCA, Inc. sr. sec. notes 9 1/4s, 2016 25,000 26,688
HCA, Inc. sr. unsec. notes 6 1/4s, 2013 2,000 2,085
HealthSouth Corp. company guaranty 10 3/4s, 2016 2,000 2,115
Quest Diagnostics, Inc. company guaranty sr. unsec. notes 6.95s, 2037 5,000 5,694
Select Medical Corp. company guaranty 7 5/8s, 2015 5,000 5,063
Surgical Care Affiliates, Inc. 144A sr. sub. notes 10s, 2017 10,000 10,350
Surgical Care Affiliates, Inc. 144A sr. unsec. notes 8 7/8s, 2015(PIK) 5,492 5,657
Tenet Healthcare Corp. sr. notes 9s, 2015 5,000 5,444
UnitedHealth Group, Inc. sr. unsec. notes 5.8s, 2036 10,000 10,375
Ventas Realty LP/Capital Corp. sr. notes 6 3/4s, 2017(R) 5,000 5,325
WellPoint, Inc. notes 7s, 2019 10,000 12,103
129,685
Technology (0.6%)
Ceridian Corp. company guaranty sr. unsec. notes 12 1/4s, 2015(PIK) 15,000 15,694
Ceridian Corp. sr. unsec. notes 11 1/4s, 2015 5,000 5,181
Computer Sciences Corp. sr. unsec. notes 6 1/2s, 2018 3,000 3,315
First Data Corp. company guaranty sr. unsec. notes 10.55s, 2015(PIK) 52,501 54,929
Freescale Semiconductor, Inc. 144A company guaranty sr. unsec. notes 10 3/4s, 2020 5,000 5,750
Iron Mountain, Inc. company guaranty sr. unsec. sub. notes 8s, 2020 10,000 10,525
Jazz Technologies, Inc. company guaranty sr. unsec. notes 8s, 2015(F) 16,000 15,760
KLA-Tencor Corp. sr. unsec. notes 6.9s, 2018 10,000 11,488
Lexmark International Inc, sr. unsec. notes 5.9s, 2013 15,000 16,031
SunGard Data Systems, Inc. company guaranty 10 1/4s, 2015 4,000 4,160
Xerox Corp. sr. unsec. notes 4 1/2s, 2021 5,000 4,996
147,829
Transportation (0.2%)
Burlington Northern Santa Fe Corp. sr. unsec. notes 5 3/4s, 2018 5,000 5,715
Burlington Northern Santa Fe, LLC sr. unsec. notes 5.4s, 2041 5,000 5,010
Continental Airlines, Inc. pass-through certificates Ser. 97-4A, 6.9s, 2018 2,658 2,837
Continental Airlines, Inc. pass-through certificates Ser. 98-1A, 6.648s, 2017 2,287 2,430
Delta Air Lines, Inc. pass-through certificates 6.2s, 2018 4,941 5,127
Norfolk Southern Corp. sr. unsec. notes 6s, 2111 5,000 5,067
Swift Services Holdings, Inc. 144A company guaranty sr. notes 10s, 2018 10,000 11,100
37,286
Utilities and power (2.4%)
AES Corp. (The) sr. unsec. unsub. notes 8s, 2017 15,000 16,219
Atmos Energy Corp. sr. unsec. sub. notes 8 1/2s, 2019 10,000 12,806
CMS Energy Corp. sr. unsec. notes 8 3/4s, 2019 5,000 6,209
CMS Energy Corp. sr. unsec. unsub. notes FRN 1.228s, 2013 10,000 9,950
Colorado Interstate Gas Co. debs. 6.85s, 2037 (Canada) 100,000 113,926
Commonwealth Edison Co. 1st mtge. sec. bonds 5.8s, 2018 10,000 11,345
DCP Midstream, LLC 144A sr. unsec. notes 5.35s, 2020 5,000 5,343
Dominion Resources, Inc. sr. unsec. unsub. notes Ser. 07-A, 6s, 2017 15,000 17,399
Dynegy Holdings, Inc. sr. unsec. notes 7 3/4s, 2019 110,000 80,300
Edison Mission Energy sr. unsec. notes 7.2s, 2019 10,000 8,100
El Paso Corp. sr. notes Ser. GMTN, 7 3/4s, 2032 5,000 6,090
El Paso Natural Gas Co. sr. unsec. unsub. bonds 8 3/8s, 2032 10,000 12,951
Electricite de France 144A notes 6.95s, 2039 (France) 10,000 12,335
Energy Future Holdings Corp. sr. notes 9 3/4s, 2019 35,000 36,400
Energy Future Intermediate Holdings Co., LLC sr. notes 9 3/4s, 2019 37,000 38,850
Energy Transfer Partners LP sr. unsec. unsub. notes 6.05s, 2041 10,000 10,110
Enterprise Products Operating, LLC company guaranty sr. unsec. unsub. notes 5.95s, 2041 5,000 5,108
Enterprise Products Operating, LLC company guaranty sr. unsec. unsub. notes 3.2s, 2016 5,000 5,108
FirstEnergy Corp. notes Ser. B, 6.45s, 2011 5,000 5,117
Iberdrola International BV company guaranty sr. unsec. unsub. notes 6 3/4s, 2036 5,000 5,548
Ipalco Enterprises, Inc. 144A sr. notes 7 1/4s, 2016 5,000 5,613
Nevada Power Co. notes 6 1/2s, 2018 25,000 29,333
NGPL PipeCo, LLC 144A sr. unsec. notes 7.119s, 2017 10,000 11,264
NRG Energy, Inc. company guaranty 7 3/8s, 2017 5,000 5,275
Pacific Gas & Electric Co. sr. notes 8 1/4s, 2018 5,000 6,504
Power Receivable Finance, LLC 144A sr. notes 6.29s, 2012 12,363 12,387
PPL WEM Holdings PLC 144A sr. unsec. notes 5 3/8s, 2021 (United Kingdom) 15,000 15,734
PSEG Power, LLC company guaranty sr. unsec. notes 5.32s, 2016 4,000 4,411
Puget Sound Energy, Inc. jr. sub. FRN Ser. A, 6.974s, 2067 5,000 5,063
Spectra Energy Capital, LLC company guaranty sr. unsec. unsub. notes 6.2s, 2018 10,000 11,404
Texas-New Mexico Power Co. 144A 1st mtge. sec. 9 1/2s, 2019 20,000 25,950
Trans-Canada Pipelines, Ltd. jr. unsec. sub. notes FRN 6.35s, 2067 (Canada) 10,000 10,215
Union Electric Co. 1st mtge. sr. sec. bonds 6.7s, 2019 5,000 5,912
Westar Energy, Inc. 1st mtge. sec. bonds 8 5/8s, 2018 15,000 19,568
Wisconsin Energy Corp. jr. unsec. sub. notes FRN 6 1/4s, 2067 20,000 20,250
608,097
Total Corporate bonds and notes (cost $3,294,012) $3,529,746

FOREIGN GOVERNMENT BONDS AND NOTES (7.2%)(a)
Principal amount Value
Australia (Government of) sr. unsec. bonds 5 3/4s, 2021 AUD 50,000 $55,433
Brazil (Federal Republic of) notes (units) 10s, 2012 BRL 173 112,471
Brazil (Federal Republic of) unsub. notes 10s, 2014 BRL 45 28,144
British Columbia (Province of) notes Ser. MTN, 4.7s, 2012 CAD 100,000 108,149
Canada (Government of) bonds 5s, 2037 CAD 9,000 11,614
Canada (Government of) bonds 3 1/2s, 2020 CAD 43,000 46,212
Canada (Government of) bonds Ser. WL43, 5 3/4s, 2029 CAD 30,000 40,648
Canada (Government of) notes 4s, 2017 CAD 100,000 111,606
Export-Import Bank of Korea 144A sr. unsec. unsub. notes 5.1s, 2013 INR 900,000 19,057
Germany (Federal Republic of) bonds Ser. 06, 3 3/4s, 2017 EUR 108,000 165,775
Germany (Federal Republic of) bonds Ser. 07, 4 1/4s, 2039 EUR 63,000 101,068
Germany (Federal Republic of) bonds Ser. 159, 2s, 2016 EUR 17,000 24,169
Hungary (Republic of) sr. unsec. unsub. notes 7 5/8s, 2041 $20,000 21,712
Italy (Republic of) bonds 4 1/4s, 2020 EUR 260,000 366,994
Sweden (Government of) bonds Ser. 1054, 3 1/2s, 2022 SEK 190,000 32,424
Sweden (Government of) debs. Ser. 1041, 6 3/4s, 2014 SEK 700,000 126,654
Switzerland (Government of) bonds 2s, 2021 CHF 97,000 115,797
United Kingdom (Government of) bonds 4 3/4s, 2038 GBP 30,000 54,651
United Kingdom Treasury bonds 4 1/2s, 2034 GBP 45,000 78,202
United Kingdom treasury 4 1/4s, 2039 GBP 100,000 168,436
United Kingdom Treasury bonds 3 3/4s, 2019 GBP 10,000 17,206
Total Foreign government bonds and notes (cost $1,699,808) $1,806,422

CONVERTIBLE BONDS AND NOTES (5.3%)(a)
Principal amount Value
Basic materials (0.2%)
Steel Dynamics, Inc. cv. sr. notes 5 1/8s, 2014 $18,000 $22,050
U.S. Steel Corp. cv. sr. unsec. notes 4s, 2014 11,000 17,559
USEC, Inc. cv. sr. unsec. notes 3s, 2014 20,000 15,750
55,359
Capital goods (0.2%)
General Cable Corp. cv. unsec. sub. notes stepped-coupon 4 1/2s (2 1/4s, 11/15/19) 2029(STP) 34,000 46,410
46,410
Communication services (1.1%)
Clearwire Communications, LLC/Clearwire Finance, Inc. 144A cv. company guaranty sr. unsec. notes 8 1/4s, 2040 36,000 36,225
Cogent Communication Group, Inc. cv. sr. unsec. notes 1s, 2027 23,000 20,413
Equinix, Inc. cv. sr. unsec. sub. notes 4 3/4s, 2016 25,000 35,531
Leap Wireless International, Inc. cv. sr. unsec. notes 4 1/2s, 2014 41,000 40,129
Level 3 Communications, Inc. cv. sr. unsec. unsub. notes 6 1/2s, 2016 25,000 50,344
Level 3 Communications, Inc. cv. sr. unsec. unsub. notes 3 1/2s, 2012 19,000 18,929
Virgin Media, Inc. cv. sr. unsec. notes 6 1/2s, 2016 (United Kingdom) 36,000 68,895
270,466
Consumer cyclicals (0.9%)
CBIZ, Inc. 144A cv. sr. sub. notes 4 7/8s, 2015 12,000 15,038
Charming Shoppes, Inc. cv. sr. unsec. notes 1 1/8s, 2014 42,000 37,380
Ford Motor Co. cv. sr. unsec. notes 4 1/4s, 2016 20,000 36,396
Icahn Enterprises LP 144A cv. sr. unsec. notes FRN 4s, 2013 25,000 24,063
Liberty Media, LLC cv. sr. unsec. unsub. notes 3 1/2s, 2031 58,000 32,625
Live Nation Entertainment, Inc. cv. sr. unsec. notes 2 7/8s, 2027 45,000 42,075
Morgans Hotel Group Co. cv. sr. sub. notes 2 3/8s, 2014 25,000 22,063
XM Satellite Radio, Inc. 144A cv. company guaranty sr. unsec. sub. notes 7s, 2014 17,000 26,435
236,075
Consumer staples (0.2%)
Rite Aid Corp. cv. sr. unsec. unsub. notes 8 1/2s, 2015 15,000 15,075
Spartan Stores, Inc. cv. sr. unsec. notes 3 3/8s, 2027 27,000 26,933
42,008
Energy (0.4%)
Carrizo Oil & Gas, Inc. cv. sr. unsec. unsub. notes 4 3/8s, 2028 7,000 7,026
Chesapeake Energy Corp. cv. sr. unsec. notes company guaranty 2 1/2s, 2037 25,000 27,719
Global Industries, Ltd. cv. sr. unsec. notes 2 3/4s, 2027 20,000 15,476
Helix Energy Solutions Group, Inc. cv. sr. unsec. unsub. notes 3 1/4s, 2025 42,000 42,105
Peabody Energy Corp. cv. jr. unsec. sub. debs. 4 3/4s, 2041 15,000 18,900
Trico Marine Services, Inc. cv. sr. unsec. debs. 3s, 2027 (In default)(NON) 15,000 675
111,901
Financials (0.7%)
Ares Capital Corp. 144A cv. sr. unsec. notes 5 3/4s, 2016 19,000 19,929
CapitalSource, Inc. cv. company guaranty sr. unsec. sub. notes 7 1/4s, 2037 10,000 10,413
Digital Realty Trust LP 144A cv. sr. unsec. notes 5 1/2s, 2029(R) 15,000 22,753
iStar Financial, Inc. cv. sr. unsec. unsub. notes FRN 0.805s, 2012(R) 25,000 23,563
KKR Financial Holdings, LLC cv. sr. unsec. notes 7 1/2s, 2017 18,000 26,359
MF Global Holdings Ltd. cv. sr. unsec. notes 9s, 2038 28,000 32,165
Old Republic International Corp. cv. sr. unsec. unsub. notes 8s, 2012 20,000 23,050
Tower Group, Inc. 144A cv. sr. unsec. notes 5s, 2014 21,000 23,100
181,332
Health care (0.5%)
Amylin Pharmaceuticals, Inc. cv. sr. unsec. notes 3s, 2014 27,000 24,638
China Medical Technologies, Inc. cv. sr. unsec. bonds Ser. CMT, 4s, 2013 (China) 32,000 27,040
China Medical Technologies, Inc. 144A cv. sr. unsec. notes 6 1/4s, 2016 (China) 14,000 13,527
Hologic, Inc. cv. sr. unsec. notes stepped-coupon 2s (0s, 12/15/16) 2037(STP) 15,000 17,738
Hologic, Inc. cv. sr. unsec. unsub. notes stepped-coupon 2s (0s, 12/15/13) 2037(STP) 20,000 19,525
LifePoint Hospitals, Inc. cv. sr. unsec. sub. notes 3 1/4s, 2025 12,000 12,555
Providence Service Corp. (The) cv. sr. unsec. sub. notes 6 1/2s, 2014 9,000 8,888
123,911
Technology (1.0%)
Advanced Micro Devices, Inc. cv. sr. unsec. notes 6s, 2015 32,000 33,240
EnerSys cv. sr. unsec. notes stepped-coupon 3 3/8s (0s, 6/1/15) 2038(STP) 11,000 12,595
ON Semiconductor Corp. cv. company guaranty sr. unsec. sub. notes 2 5/8s, 2026 20,000 25,475
Powerwave Technologies, Inc. cv. sr. unsec. sub. notes 3 7/8s, 2027 38,000 35,483
Quantum Corp. 144A cv. sr. unsec. sub. notes 3 1/2s, 2015 25,000 26,513
Safeguard Scientifics, Inc. cv. sr. unsec. sub. notes 10 1/8s, 2014 55,000 82,156
TeleCommunication Systems, Inc. 144A cv. sr. unsec. notes 4 1/2s, 2014 27,000 26,207
241,669
Transportation (0.1%)
AMR Corp. cv. company guaranty sr. unsub. notes 6 1/4s, 2014 17,000 17,510
17,510
Total Convertible bonds and notes (cost $1,113,479) $1,326,641

CONVERTIBLE PREFERRED STOCKS (5.3%)(a)
Shares Value
Basic materials (0.2%)
Smurfit-Stone Container Corp. (Escrow) zero % cv. pfd.(F) 1,775 $18
Vale Capital II $3.375 cv. pfd. (Cayman Islands) 645 57,445
57,463
Communication services (0.4%)
Cincinnati Bell, Inc. Ser. B, $3.378 cum. cv. pfd. 870 36,758
Crown Castle International Corp. $3.125 cum. cv. pfd. 915 55,019
91,777
Consumer cyclicals (1.3%)
FelCor Lodging Trust, Inc. Ser. A, $0.488 cum. cv. pfd.(R) 2,505 67,322
General Motors Co. Ser. B, $2.375 cv. pfd. 2,130 106,766
Interpublic Group of Cos, Inc. (The) Ser. B, 5.25% cv. pfd. 31 34,061
Nielsen Holdings NV $3.125 cv. pfd. 690 43,208
Retail Ventures, Inc. $3.312 cv. pfd. 535 39,633
Stanley Black & Decker, Inc. $4.75 cv. pfd. 255 30,791
321,781
Consumer staples (0.4%)
Bunge, Ltd. $4.875 cv. pfd. 370 38,711
Dole Food Automatic Exchange 144A 7.00% cv. pfd.(NON) 1,335 16,768
Newell Financial Trust I $2.625 cum. cv. pfd. 590 27,288
82,767
Energy (0.2%)
Apache Corp. Ser. D, $3.00 cv. pfd.(S) 640 42,624
Chesapeake Energy Corp. 144A 5.75% cv. pfd. 10 13,238
55,862
Financials (1.7%)
Alexandria Real Estate Equities, Inc. Ser. D, $1.75 cv. pfd. 875 23,468
AMG Capital Trust II $2.575 cv. pfd. 985 43,278
Assured Guaranty, Ltd. $4.25 cv. pfd. (Bermuda) 185 12,928
Bank of America Corp. Ser. L, 7.25% cv. pfd. 57 59,565
Citigroup, Inc. $7.50 cv. pfd. 385 46,323
Entertainment Properties Trust Ser. C, $1.438 cum. cv. pfd. 1,600 33,516
Hartford Financial Services Group, Inc. (The) $1.182 cv. pfd. 995 25,746
Health Care REIT, Inc. Ser. I, $3.25 cv. pfd. 660 35,516
Huntington Bancshares Ser. A, 8.50% cv. pfd. 28 32,200
Lehman Brothers Holdings, Inc. Ser. P, 7.25% cv. pfd. (In default)(NON) 18 19
MetLife, Inc. $3.75 cv. pfd. 471 38,956
Wells Fargo & Co. Ser. L, 7.50% cv. pfd. 50 54,250
XL Group PLC $2.688 cv. pfd. 900 28,665
434,430
Technology (0.3%)
Lucent Technologies Capital Trust I 7.75% cv. pfd. 35 35,298
Unisys Corp. Ser. A, 6.25% cv. pfd. 490 40,366
75,664
Transportation (0.1%)
Swift Mandatory Common Exchange Security Trust 144A 6.00% cv. pfd. 2,080 27,456
27,456
Utilities and power (0.7%)
AES Trust III $3.375 cv. pfd. 985 48,388
El Paso Energy Capital Trust I $2.375 cv. pfd. 965 44,450
Great Plains Energy, Inc. $6.00 cv. pfd. 640 42,592
PPL Corp. $4.375 cv. pfd. 770 42,650
178,080
Total Convertible preferred stocks (cost $1,188,859) $1,325,280

MORTGAGE-BACKED SECURITIES (3.4%)(a)
Principal amount Value
Banc of America Commercial Mortgage, Inc.
Ser. 08-1, Class A3, 6.168s, 2051 $200,000 $218,108
Ser. 07-2, Class A2, 5.634s, 2049 17,927 18,435
Citigroup/Deutsche Bank Commercial Mortgage Trust Ser. 06-CD2, Class A2, 5.408s, 2046 5,276 5,273
Commercial Mortgage Pass-Through Certificates FRB Ser. 04-LB3A, Class B, 5.365s, 2037(F) 25,000 26,425
Credit Suisse Mortgage Capital Certificates
FRB Ser. 07-C4, Class A2, 5.801s, 2039 9,659 9,852
FRB Ser. 07-C3, Class AAB, 5.716s, 2039 61,000 65,718
Ser. 07-C1, Class AAB, 5.336s, 2040 18,000 19,186
Ser. 06-C5, Class A2, 5.246s, 2039 19,726 19,907
CS First Boston Mortgage Securities Corp. 144A Ser. 03-C3, Class AX, IO, 1.73s, 2038 184,042 4,765
GS Mortgage Securities Corp. II Ser. 06-GG6, Class A2, 5.506s, 2038 15,417 15,442
GS Mortgage Securities Corp. II 144A Ser. 03-C1, Class X1, IO, 0.842s, 2040 136,654 1,324
JPMorgan Chase Commercial Mortgage Securities Corp.
FRB Ser. 07-LD12, Class A3, 5.988s, 2051 43,000 45,850
Ser. 07-C1, Class A4, 5.716s, 2051 13,000 14,205
Ser. 06-CB17, Class A3, 5.45s, 2043 48,000 49,342
Ser. 07-LDPX, Class A3S, 5.317s, 2049 14,000 14,654
Ser. 06-LDP9, Class A2S, 5.298s, 2047 73,000 74,156
Ser. 06-LDP8, Class A2, 5.289s, 2045 15,670 15,732
Ser. 04-CB8, Class B, 4 1/2s, 2039 10,000 10,264
FRB Ser. 05-CB13, Class X2, IO, 0.024s, 2043 27,323,121 18,798
LB Commercial Conduit Mortgage Trust 144A Ser. 98-C4, Class J, 5.6s, 2035 2,000 2,058
LB-UBS Commercial Mortgage Trust Ser. 07-C7, Class A2, 5.588s, 2045 28,000 28,651
LB-UBS Commercial Mortgage Trust 144A
Ser. 05-C2, Class XCL, IO, 0.28s, 2040 293,057 2,254
Ser. 06-C1, Class XCL, IO, 0.1112s, 2041 305,374 3,079
Merrill Lynch Mortgage Trust FRB Ser. 07-C1, Class A2, 5.722s, 2050 67,485 69,019
Merrill Lynch/Countrywide Commercial Mortgage Trust
Ser. 07-7, Class ASB, 5.744s, 2050 26,000 27,561
Ser. 07-5, Class A3, 5.364s, 2048 54,000 55,645
Wachovia Bank Commercial Mortgage Trust FRB Ser. 07-C32, Class A2, 5.738s, 2049 25,158 26,164
Total Mortgage-backed securities (cost $830,841) $861,867

INVESTMENT COMPANIES (0.9%)(a)
Shares Value
BlackRock Kelso Capital Corp. 170 $1,685
iShares Dow Jones U.S. Real Estate Index Fund 91 5,715
iShares Russell 2000 Growth Index Fund 87 8,430
iShares Russell 2000 Value Index Fund 63 4,743
MCG Capital Corp. 610 4,197
NGP Capital Resources Co. 282 2,236
SPDR S&P 500 ETF Trust 1,263 170,366
SPDR S&P Midcap 400 ETF Trust 127 23,188
Total Investment Companies (cost $209,653) $220,560

U.S. TREASURY OBLIGATIONS (0.8%)(a)
Principal amount Value
U.S. Treasury Notes 3 1/2s, May 15, 2020 $180,000 $189,246
Total U.S. Treasury Obligations (cost $188,055) $189,246

UNITS (0.2%)(a)
Units Value
Ashland, Inc. cv. jr. unsec. sub. debs. units 6 1/2s, 2029 45,000 $38,700
Total Units (cost $41,485) $38,700

MUNICIPAL BONDS AND NOTES (0.1%)(a)
Principal amount Value
CA State G.O. Bonds (Build America Bonds), 7 1/2s, 4/1/34 $10,000 $11,657
North TX, Thruway Auth. Rev. Bonds (Build America Bonds), 6.718s, 1/1/49 10,000 11,108
OH State U. Rev. Bonds (Build America Bonds), 4.91s, 6/1/40 5,000 4,879
Total Municipal bonds and notes (cost $25,070) $27,644

PREFERRED STOCKS (0.1%)(a)
Shares Value
Ally Financial, Inc. 144A Ser. G, 7.00% cum. pfd. 5 $4,830
GMAC Capital Trust I Ser. 2, $2.031 cum. pfd. 430 11,296
Total Preferred stocks (cost $14,301) $16,126

WARRANTS (—%)(a)(NON)
Expiration date Strike Price Warrants Value
Tower Semiconductor, Ltd. 144A (Israel)(F) 6/30/15 0.01 6,345 $1,523
Total Warrants (cost $1,269) $1,523

ASSET-BACKED SECURITIES (—%)(a)
Principal amount Value
Bay View Auto Trust Ser. 05-LJ2, Class D, 5.27s, 2014 $610 $614
Total Asset-backed securities (cost $610) $614

SHORT-TERM INVESTMENTS (38.9%)(a)
Principal amount/shares Value
Putnam Cash Collateral Pool, LLC 0.19%(d) 39,575 $39,575
SSgA Prime Money Market Fund 0.09%(i)(P) 280,000 280,000
Putnam Money Market Liquidity Fund 0.07%(e) 6,016,099 6,016,099
Interest in $415,025,000 joint tri-party repurchase agreement dated May 31, 2011 with Deutsche Bank Securities, Inc. due June 1, 2011 - maturity value of $2,406,009 for an effective yield of 0.13% (collateralized by various mortgage-backed securities with coupon rates ranging from 3.5% to 5.5% and due dates ranging from July 1, 2024 to January 1, 2041, valued at $423,325,500) $2,406,000 2,406,000
U.S. Treasury Bills for an effective yield of 0.20%, August 25, 2010(SEG) 210,000 209,879
U.S. Treasury Bills with effective yields ranging from 0.22% to 0.23%, July 28, 2011 263,000 262,908
U.S. Treasury Bills with effective yields ranging from 0.23% to 0.25%, June 2, 2011(SEG)(SEGSF) 590,000 589,996
Total Short-term investments (cost $9,804,479) $9,804,457

TOTAL INVESTMENTS
Total investments (cost $23,311,593)(b) $25,658,920













FORWARD CURRENCY CONTRACTS at 5/31/11 (aggregate face value $16,150,007) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Bank of America, N.A.
Australian Dollar Sell 6/15/11 $2,342 $2,406 $64
British Pound Sell 6/15/11 17,272 17,542 270
Euro Buy 6/15/11 119,719 124,016 (4,297)
Japanese Yen Buy 6/15/11 13,919 13,971 (52)
Mexican Peso Buy 6/15/11 147 146 1
Norwegian Krone Sell 6/15/11 60,205 61,577 1,372
Swedish Krona Sell 6/15/11 3,171 3,235 64
Swiss Franc Buy 6/15/11 11,135 10,985 150
Barclays Bank PLC
British Pound Buy 6/15/11 20,397 20,723 (326)
Euro Buy 6/15/11 49,296 51,079 (1,783)
Hong Kong Dollar Sell 6/15/11 1,260 1,262 2
Japanese Yen Buy 6/15/11 5,960 6,003 (43)
Mexican Peso Buy 6/15/11 138 138 —
New Zealand Dollar Sell 6/15/11 4,523 4,392 (131)
Swedish Krona Buy 6/15/11 6,422 6,289 133
Swiss Franc Buy 6/15/11 5,509 5,438 71
Citibank, N.A.
Australian Dollar Sell 6/15/11 3,406 3,499 93
Brazilian Real Sell 6/15/11 114,232 113,338 (894)
British Pound Sell 6/15/11 9,541 9,691 150
Canadian Dollar Sell 6/15/11 51,902 52,942 1,040
Danish Krone Buy 6/15/11 8,293 8,460 (167)
Euro Buy 6/15/11 372,955 386,297 (13,342)
Hong Kong Dollar Sell 6/15/11 5,028 5,034 6
Norwegian Krone Sell 6/15/11 1,760 1,801 41
Singapore Dollar Buy 6/15/11 486 490 (4)
South African Rand Buy 6/15/11 1,479 1,521 (42)
Swiss Franc Sell 6/15/11 10,783 10,460 (323)
Credit Suisse AG
Australian Dollar Sell 6/15/11 37,787 38,822 1,035
British Pound Buy 6/15/11 68,593 69,657 (1,064)
Canadian Dollar Sell 6/15/11 110,615 112,847 2,232
Euro Sell 6/15/11 167,291 173,210 5,919
Japanese Yen Buy 6/15/11 166,579 167,153 (574)
Mexican Peso Buy 6/15/11 155 155 —
Norwegian Krone Buy 6/15/11 25,016 25,595 (579)
Swiss Franc Sell 6/15/11 4,923 4,861 (62)
Deutsche Bank AG
Australian Dollar Buy 6/15/11 21,714 22,314 (600)
British Pound Sell 6/15/11 2,961 3,008 47
Euro Buy 6/15/11 21,414 22,179 (765)
Mexican Peso Buy 6/15/11 1,511 1,509 2
Swiss Franc Buy 6/15/11 1,993 1,967 26
Goldman Sachs International
British Pound Sell 6/15/11 16,285 16,542 257
Euro Buy 6/15/11 37,367 38,713 (1,346)
Japanese Yen Sell 6/15/11 222,835 223,609 774
Norwegian Krone Sell 6/15/11 2,075 2,123 48
Swedish Krona Buy 6/15/11 1,909 1,946 (37)
Swiss Franc Buy 6/15/11 2,344 2,314 30
HSBC Bank USA, National Association
Australian Dollar Buy 6/15/11 394,047 404,814 (10,767)
British Pound Sell 6/15/11 122,875 124,824 1,949
Euro Sell 6/15/11 195,029 202,023 6,994
Hong Kong Dollar Buy 6/15/11 592 592 —
New Zealand Dollar Sell 6/15/11 17,927 17,250 (677)
Norwegian Krone Sell 6/15/11 7,208 7,386 178
Singapore Dollar Sell 6/15/11 1,946 1,959 13
Swiss Franc Sell 6/15/11 2,696 2,660 (36)
JPMorgan Chase Bank, N.A.
Australian Dollar Sell 6/15/11 103,248 106,031 2,783
Brazilian Real Sell 6/15/11 13,821 13,703 (118)
British Pound Sell 6/15/11 2,467 2,505 38
Canadian Dollar Sell 6/15/11 107,932 110,113 2,181
Euro Sell 6/15/11 5,952,903 6,161,101 208,198
Hong Kong Dollar Sell 6/15/11 129 129 —
Hungarian Forint Sell 6/15/11 278 288 10
Japanese Yen Buy 6/15/11 2,898 2,908 (10)
Mexican Peso Sell 6/15/11 59,399 59,373 (26)
Singapore Dollar Sell 6/15/11 8,755 8,706 (49)
South African Rand Buy 6/15/11 776 799 (23)
Swiss Franc Buy 6/15/11 1,758 1,736 22
Royal Bank of Scotland PLC (The)
Australian Dollar Buy 6/15/11 8,409 8,617 (208)
British Pound Buy 6/15/11 5,757 5,847 (90)
Euro Sell 6/15/11 142,714 147,733 5,019
Israeli Shekel Buy 6/15/11 1,862 1,887 (25)
Japanese Yen Sell 6/15/11 1,251 1,255 4
Norwegian Krone Sell 6/15/11 2,224 2,274 50
Swedish Krona Buy 6/15/11 421 429 (8)
Swiss Franc Buy 6/15/11 7,970 7,866 104
State Street Bank and Trust Co.
Australian Dollar Sell 6/15/11 63,226 64,958 1,732
British Pound Sell 6/15/11 64,974 66,011 1,037
Canadian Dollar Buy 6/15/11 27,963 28,526 (563)
Euro Sell 6/15/11 149,469 154,822 5,353
Israeli Shekel Sell 6/15/11 7,040 6,854 (186)
Japanese Yen Buy 6/15/11 43,085 43,229 (144)
Mexican Peso Buy 6/15/11 14,399 14,393 6
Norwegian Krone Buy 6/15/11 24,923 23,959 964
Swedish Krona Sell 6/15/11 1,440 1,468 28
UBS AG
Australian Dollar Sell 6/15/11 161,898 166,274 4,376
British Pound Sell 6/15/11 93,760 95,222 1,462
Canadian Dollar Sell 6/15/11 75,326 76,828 1,502
Euro Buy 6/15/11 22,420 23,210 (790)
Indian Rupee Sell 6/15/11 19,133 19,269 136
Israeli Shekel Buy 6/15/11 1,862 1,887 (25)
Japanese Yen Sell 6/15/11 46,630 46,784 154
Mexican Peso Buy 6/15/11 49,602 49,521 81
Norwegian Krone Sell 6/15/11 59,649 61,014 1,365
South African Rand Buy 6/15/11 557 571 (14)
Swedish Krona Sell 6/15/11 166,889 170,172 3,283
Swiss Franc Sell 6/15/11 99,041 98,338 (703)
Westpac Banking Corp.
Australian Dollar Sell 6/15/11 86,324 88,600 2,276
British Pound Sell 6/15/11 73,528 74,400 872
Euro Buy 6/15/11 5,286,045 5,475,071 (189,026)
Japanese Yen Buy 6/15/11 42,406 42,559 (153)
Total $35,925












FUTURES CONTRACTS OUTSTANDING at 5/31/11 (Unaudited)


             Unrealized
Number of             Expiration appreciation/
contracts Value             date (depreciation)
Australian Government Treasury Bond 3 yr (Short) 1 $273,951             Jun-11 $(632)
Canadian Government Bond 10 yr (Short) 2 256,524             Sep-11 (1,310)
Euro-Bobl 5 yr (Short) 1 168,134             Jun-11 (3,369)
Euro-Bund 10 yr (Long) 2 360,544             Jun-11 8,190
Euro-Buxl 30yr Bond (Short) 3 460,007             Jun-11 (17,916)
Euro-Dollar 90 day (Short) 5 1,242,000             Jun-12 (2,487)
Euro-Schatz 2 yr (Long) 10 1,550,470             Jun-11 8,125
Euro-Swiss Franc 3 Month (Short) 2 584,061             Dec-11 (1,912)
Euro-Swiss Franc 3 Month (Short) 2 582,127             Jun-12 (2,586)
Euro-Swiss Franc 3 Month (Short) 2 580,135             Dec-12 (2,616)
Euro-Swiss Franc 3 Month (Short) 2 583,241             Mar-12 (2,235)
Euro-Swiss Franc 3 Month (Short) 2 584,588             Sep-11 (1,150)
U.K. Gilt 10 yr (Short) 1 197,556             Sep-11 (102)
U.S. Treasury Bond 20 yr (Long) 15 1,872,656             Sep-11 11,518
U.S. Treasury Bond 30 yr (Long) 9 1,161,563             Sep-11 15,999
U.S. Treasury Note 5 yr (Long) 11 1,310,547             Sep-11 9,002
U.S. Treasury Note 10 yr (Short) 21 2,574,797             Sep-11 (10,095)
Total $6,424












WRITTEN OPTIONS OUTSTANDING at 5/31/11 (premiums received $200,741) (Unaudited)


Contract       Expiration date/
amount       strike price Value
Option on an interest rate swap with Citibank, N.A. for the obligation to pay a fixed rate of 4.49% versus the three month USD-LIBOR-BBA maturing August 17, 2021. $566,000       Aug-11/4.49 $61,796
Option on an interest rate swap with Citibank, N.A. for the obligation to receive a fixed rate of 4.49% versus the three month USD-LIBOR-BBA maturing August 17, 2021. 566,000       Aug-11/4.49 40
Option on an interest rate swap with Citibank, N.A. for the obligation to receive a fixed rate of 4.52% versus the three month USD-LIBOR-BBA maturing July 26, 2021. 677,000       Jul-11/4.52 4
Option on an interest rate swap with Citibank, N.A. for the obligation to pay a fixed rate of 4.52% versus the three month USD-LIBOR-BBA maturing July 26, 2021. 677,000       Jul-11/4.52 77,848
Option on an interest rate swap with Citibank, N.A. for the obligation to receive a fixed rate of 4.5475% versus the three month USD-LIBOR-BBA maturing July 26, 2021. 338,500       Jul-11/4.5475 2
Option on an interest rate swap with Citibank, N.A. for the obligation to pay a fixed rate of 4.5475% versus the three month USD-LIBOR-BBA maturing July 26, 2021. 338,500       Jul-11/4.5475 39,746
Total $179,436















INTEREST RATE SWAP CONTRACTS OUTSTANDING at 5/31/11 (Unaudited)
Upfront     Payments Payments Unrealized
Swap counterparty / premium     Termination made by received by appreciation/
Notional amount received (paid)     date fund per annum fund per annum (depreciation)
Credit Suisse International
$39,600 $(11)     5/27/21 3.21% 3 month USD-LIBOR-BBA $(252)
CHF 260,000 —      11/17/11 2.5125% 6 month CHF-LIBOR-BBA (6,907)
MXN 490,000 —      7/21/20 1 month MXN-TIIE-BANXICO 6.895% (527)
Deutsche Bank AG
$997,600 2,337      7/27/20 3 month USD-LIBOR-BBA 2.94% 6,039
MXN 490,000 —      7/17/20 1 month MXN-TIIE-BANXICO 6.95% (351)
Goldman Sachs International
GBP 101,000 —      2/1/15 6 month GBP-LIBOR-BBA 3.10% 6,767
JPMorgan Chase Bank, N.A.
$1,239,400 3,814      2/18/41 4.43% 3 month USD-LIBOR-BBA (114,193)
EUR 280,000 —      2/4/40 6 month EUR-EURIBOR-REUTERS 3.79% 13,698
EUR 210,000 —      2/4/15 2.596% 6 month EUR-EURIBOR-REUTERS (2,174)
JPY 121,100,000 —      2/19/15 6 month JPY-LIBOR-BBA 0.705% 15,299
JPY 14,400,000 —      2/19/20 6 month JPY-LIBOR-BBA 1.3975% 5,979
JPY 13,500,000 (E) —      7/28/29 6 month JPY-LIBOR-BBA 2.67% (108)
JPY 18,100,000 (E) —      7/28/39 2.40% 6 month JPY-LIBOR-BBA 2,073
MXN 70,000 —      7/16/20 1 month MXN-TIIE-BANXICO 6.99% (33)
Total $(74,690)
(E)   See Interest rate swap contracts note regarding extended effective dates.










CREDIT DEFAULT CONTRACTS OUTSTANDING at 5/31/11 (Unaudited)
Upfront Fixed payments
premium Termi- received Unrealized
Swap counterparty / received Notional nation (paid) by fund appreciation/
Referenced debt* Rating*** (paid)** amount date per annum (depreciation)
Credit Suisse International
  DJ CMB NA CMBX AJ Index — $(17,362) $54,000 2/17/51 (96 bp) $(3,494)
Deutsche Bank AG
  Universal Corp., 5.2%, 10/15/13 — — 25,000 3/20/15 (95 bp) 860
  Virgin Media Finance PLC, 8 3/4%, 4/15/14 BB- — EUR 10,000 9/20/13 477 bp 1,225
Morgan Stanley Capital Services, Inc.
  Universal Corp., 5.2%, 10/15/13 — — $75,000 3/20/13 (89 bp) 532
UBS, AG
  Hanson PLC., 7 7/8%, 9/27/10 — — 55,000 9/20/16 (250 bp) (3,475)
Total $(4,352)
*   Payments related to the referenced debt are made upon a credit default event.  
**   Upfront premium is based on the difference between the original spread on issue and the market spread on day of execution.  
***   Ratings are presented for credit default contracts in which the fund has sold protection on the underlying referenced debt. Ratings for an underlying index represent the average of the ratings of all the securities included in that index. The Moody's, Standard & Poor's or Fitch ratings are believed to be the most recent ratings available at May 31, 2011.  










Key to holding's currency abbreviations
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
CHF Swiss Franc
EUR Euro
GBP British Pound
INR Indian Rupee
JPY Japanese Yen
MXN Mexican Peso
MYR Malaysian Ringgit
NOK Norwegian Krone
SEK Swedish Krona
Key to holding's abbreviations
ADR American Depository Receipts
EMTN Euro Medium Term Notes
ETF Exchange Traded Fund
FRB Floating Rate Bonds
FRN Floating Rate Notes
GMTN Global Medium Term Notes
G.O. Bonds General Obligation Bonds
IO Interest Only
MTN Medium Term Notes
MTNB Medium Term Notes Class B
MTNC Medium Term Notes Class C
SPDR S&P 500 Index 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 March 1, 2011 through May 31, 2011 (the reporting period).
(a) Percentages indicated are based on net assets of $25,195,711.
(b) The aggregate identified cost on a tax basis is $23,447,939, resulting in gross unrealized appreciation and depreciation of $2,458,216 and $247,235, respectively, or net unrealized appreciation of $2,210,981.
(NON) Non-income-producing security.
(STP) The interest rate and date shown parenthetically represent the new interest rate to be paid and the date the fund will begin accruing interest at this rate.
(PIK) Income may be received in cash or additional securities at the discretion of the issuer.
(SEG) This security, in part or in entirety, was pledged and segregated with the broker to cover margin requirements for futures contracts at the close of the reporting period.
(SEGSF) This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivatives contracts at the close of the reporting period.
(FWC) Forward commitment, in part or in entirety.
(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 $38,725. The fund received cash collateral of $39,575 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 $1,125 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $4,962,426 and $4,050,363, 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.
(F) Is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures (ASC 820) based on the securities' valuation inputs. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio.
(i) Security purchased with cash or security received, that was pledged to the fund for collateral on certain derivatives contracts.
(P) 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) Security 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 $10,441,918 to cover certain derivatives contracts.
Debt obligations are considered secured unless otherwise indicated.
144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
ADR after the name of a foreign holding represents ownership of foreign securities on deposit with a custodian bank.
The rates shown on FRB and FRN are the current interest rates at the close of the reporting period.
The dates shown on debt obligations are the original maturity dates.
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.
Market quotations are not considered to be readily available for certain debt obligations and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which considers such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2.
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. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. 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. Certain securities may be valued on the basis of a price provided by a single source. 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.
Repurchase agreements: The fund, or any joint trading account, through its custodian, receives delivery of the underlying securities, the market value of which at the time of purchase is required to be in an amount at least equal to the resale price, including accrued interest. Collateral for certain tri-party repurchase agreements is held at the counterparty’s custodian in a segregated account for the benefit of the fund and the counterparty. Putnam Management is responsible for determining that the value of these underlying securities is at all times at least equal to the resale price, including accrued interest. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings.
Stripped securities: The fund may invest in stripped securities which represent a participation in securities that may be structured in classes with rights to receive different portions of the interest and principal. Interest-only securities receive all of the interest and principal-only securities receive all of the principal. If the interest-only securities experience greater than anticipated prepayments of principal, the fund may fail to recoup fully its initial investment in these securities. Conversely, principal-only securities increase in value if prepayments are greater than anticipated and decline if prepayments are slower than anticipated. The market value of these securities is highly sensitive to changes in interest rates.
Futures contracts: The fund uses futures contracts to hedge interest rate risk, to gain exposure to interest rates, to hedge prepayment risk, to equitize cash, and to manage exposure to market risk.
The potential risk to the fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. With futures, there is minimal counterparty credit risk to the fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. 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.
Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin”. Outstanding number of contracts on futures contracts at the close of the reporting period are indicative of the volume of activity during the reporting period.
Options contracts: The fund uses options contracts to hedge duration, convexity and prepayment risk, to hedge against changes in values of securities it owns, owned or expects to own, to hedge prepayment risk, to generate additional income for the portfolio, and to enhance the return on securities owned.
The potential risk to the fund is that the change in value of options contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.
Exchange traded options are valued at the last sale price or, if no sales are reported, the last bid price for purchased options and the last ask price for written options. Options traded over-the-counter are valued using prices supplied by dealers. Outstanding contracts on written options contracts at the close of the reporting period are indicative of the volume of activity during the reporting period. The fund did not have any activity on purchased options contracts during the reporting period.
Forward currency contracts: The fund buys and sells 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 hedge foreign exchange risk, and to gain exposure on currency. 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 reporting period.
Interest rate swap contracts: The fund enters into interest rate swap contracts, which are arrangements between two parties to exchange cash flows based on a notional principal amount, to hedge interest rate risk, to gain exposure on interest rates, and to hedge prepayment risk. An interest rate swap can be purchased or sold with an upfront premium. An upfront payment received by the fund is recorded as a liability on the fund's books. An upfront payment made by the fund is recorded as an asset on the fund's books. Interest rate swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain interest rate swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or if the counterparty defaults on its obligation to perform. The fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty. Outstanding notional amount on interest rate swap contracts at the close of the reporting period are indicative of the volume of activity during the reporting period.
Credit default contracts: The fund enters into credit default contracts to hedge credit risk, to hedge market risk, and to gain exposure on individual names and/or baskets of securities. In a credit default contract, the protection buyer typically makes an up front payment and a periodic stream of payments to a counterparty, the protection seller, in exchange for the right to receive a contingent payment upon the occurrence of a credit event on the reference obligation or all other equally ranked obligations of the reference entity. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring and obligation acceleration. An upfront payment received by the fund, as the protection seller, is recorded as a liability on the fund’s books. An upfront payment made by the fund, as the protection buyer, is recorded as an asset on the fund’s books. Periodic payments received or paid by the fund are recorded as realized gains or losses. The credit default contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Upon the occurrence of a credit event, the difference between the par value and market value of the reference obligation, net of any proportional amount of the upfront payment, is recorded as a realized gain or loss.
In addition to bearing the risk that the credit event will occur, the fund could be exposed to market risk due to unfavorable changes in interest rates or in the price of the underlying security or index or the possibility that the fund may be unable to close out its position at the same time or at the same price as if it had purchased the underlying reference obligations. In certain circumstances, the fund may enter into offsetting credit default contracts which would mitigate its risk of loss. The fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty. Where the fund is a seller of protection, the maximum potential amount of future payments the fund may be required to make is equal to the notional amount of the relevant credit default contract. Outstanding notional amount on credit default swap contracts at the close of the reporting period are indicative of the volume of activity during the reporting 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 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 $385,755 on derivative contracts subject to the Master Agreements. Collateral posted by the fund totaled $170,000.












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 $282,206 $74,472 $—
Capital goods 271,185 56,324 —
Communication services 226,478 55,024 —
Conglomerates 103,757 17,794 —
Consumer cyclicals 596,540 90,452 30
Consumer staples 371,469 84,956 —
Energy 540,592 51,867 —
Financials 1,691,538 163,937 —
Health care 640,437 78,383 —
Technology 796,793 29,900 —
Transportation 60,029 13,474 —
Utilities and power 165,855 46,602 —
Total common stocks 5,746,879 763,185 30
Asset-backed securities — 614 —
Convertible bonds and notes — 1,326,641 —
Convertible preferred stocks — 1,325,262 18
Corporate bonds and notes — 3,513,759 15,987
Foreign government bonds and notes — 1,806,422 —
Investment Companies 220,560 — —
Mortgage-backed securities — 861,867 —
Municipal bonds and notes — 27,644 —
Preferred stocks — 16,126 —
U.S. Treasury Obligations — 189,246 —
Units — 38,700 —
Warrants — — 1,523
Short-term investments 6,296,099 3,508,358 —
Totals by level $12,263,538 $13,377,824 $17,558



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3


Forward currency contracts $— $35,925 $—
Futures contracts 6,424 — —
Written options — (179,436) —
Interest rate swap contracts — (80,830) —
Credit default contracts — 13,010 —
Totals by level $6,424 $(211,331) $—


At the start and/or close of the reporting period, Level 3 investments in securities were not considered a significant portion of the fund's portfolio.
Asset derivatives Liability derivatives


Derivatives not accounted for as hedging instruments under ASC 815 Market value Market value
Credit contracts $16,485 $3,475
Foreign exchange contracts 265,997 230,072
Equity contracts 1,523 -
Interest rate contracts 100,352 354,194
Total $384,357 $587,741




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: July 28, 2011

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: July 28, 2011

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: July 28, 2011




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: August 31, 2011
Date of reporting period: May 31, 2011



Item 1. Schedule of Investments:













Putnam Emerging Markets Equity Fund

The fund's portfolio
5/31/11 (Unaudited)
COMMON STOCKS (97.1%)(a)
Shares Value
Airlines (1.0%)
AirAsia BHD (Malaysia)(NON) 268,100 $265,476
Cebu Air, Inc. (Philippines) 161,420 331,599
597,075
Auto components (1.4%)
Hyundai Mobis (South Korea) 2,237 787,684
787,684
Automobiles (0.8%)
Kia Motors Corp. (South Korea) 6,320 445,039
445,039
Beverages (1.0%)
Synergy Co. (Russia)(NON) 15,583 576,248
576,248
Capital markets (0.4%)
Yuanta Financial Holding Co., Ltd. (Taiwan) 364,000 251,556
251,556
Chemicals (3.6%)
Formosa Chemicals & Fibre Corp. (Taiwan) 116,000 444,279
PTT Chemical PCL (Thailand) 90,500 449,792
Silvinit OJSC (Russia)(F)(NON) 509 573,012
Vale Fertilizantes SA (Preference) (Brazil) 52,300 588,946
2,056,029
Commercial banks (21.0%)
Agricultural Bank of China, Ltd. (China)(NON) 1,699,000 1,040,806
Banco Bradesco SA ADR (Brazil) 79,978 1,593,165
China Construction Bank Corp. (China) 1,842,000 1,743,932
Grupo Financiero Banorte SAB de CV (Mexico) 114,972 534,173
Industrial and Commercial Bank of China, Ltd. (China) 2,266,000 1,901,467
Industrial Bank of Korea (IBK) (South Korea) 44,180 779,397
Itau Unibanco Holding SA ADR (Preference) (Brazil) 32,200 735,126
Kasikornbank PCL NVDR (Thailand) 131,900 542,005
KB Financial Group, Inc. (South Korea) 9,779 467,875
PT Bank Rakyat Indonesia (Persero) Tbk (Indonesia) 954,000 711,749
Sberbank OJSC (Russia)(NON) 519,052 1,836,037
11,885,732
Commercial services and supplies (0.6%)
KEPCO Plant Service & Engineering Co., Ltd. (South Korea) 11,070 347,619
347,619
Communications equipment (0.7%)
Wistron NeWeb Corp. (Taiwan) 109,000 425,342
425,342
Computers and peripherals (2.2%)
Asustek Computer, Inc. (Taiwan) 61,000 640,239
Wistron Corp. (Taiwan) 320,421 605,002
1,245,241
Construction and engineering (1.1%)
China State Construction International Holdings, Ltd. (China) 360,000 388,369
KEPCO Engineering & Construction Co., Inc. (South Korea) 4,559 254,007
642,376
Construction materials (3.0%)
BBMG Corp. (China) 347,500 521,593
China National Building Material Co., Ltd. (China) 368,000 748,700
Siam Cement PCL NVDR (Thailand) 34,900 407,894
1,678,187
Distributors (0.7%)
Imperial Holdings, Ltd. (South Africa) 21,939 376,347
376,347
Diversified financial services (0.8%)
African Bank Investments, Ltd. (South Africa) 87,459 458,484
458,484
Electric utilities (0.7%)
Companhia Paranaense de Energia-Copel (Preference) (Brazil) 15,774 409,377
409,377
Electrical equipment (0.8%)
Harbin Power Equipment Co., Ltd. (China) 376,000 434,382
Sun King Power Electronics Group (China)(NON) 244,000 45,802
480,184
Electronic equipment, instruments, and components (3.0%)
Hon Hai Precision Industry Co., Ltd. (Taiwan) 287,520 1,011,792
LG Display Co., Ltd. (South Korea) 20,260 673,695
1,685,487
Food and staples retail (1.0%)
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR (Preference) (Brazil) 5,069 205,852
Shinsegae Co., Ltd. (South Korea)(F) 1,485 362,328
568,180
Food products (1.2%)
Cosan SA Industria e Comercio (Brazil) 24,329 371,911
Zhongpin, Inc. (China)(NON) 20,735 316,209
688,120
Hotels, restaurants, and leisure (1.5%)
Genting Bhd (Malaysia) 96,600 353,061
Home Inns & Hotels Management, Inc. ADR (China)(NON) 12,600 514,962
868,023
Household durables (3.5%)
PDG Realty SA Empreendimentos e Participacoes (Brazil) 206,680 1,295,184
Rossi Residencial SA (Brazil) 75,087 665,412
1,960,596
Independent power producers and energy traders (2.5%)
China Power New Energy Development Co., Ltd. (China)(NON) 6,070,000 469,461
China Resources Power Holdings Co., Ltd. (China) 196,000 394,082
China WindPower Group, Ltd. (China)(NON) 5,230,000 531,490
1,395,033
Insurance (0.7%)
Ping An Insurance (Group) Co. of China, Ltd. (China) 38,500 414,053
414,053
Internet and catalog retail (0.5%)
CJ O Shopping Co., Ltd. (South Korea) 1,113 261,990
261,990
Internet software and services (1.6%)
SouFun Holdings, Ltd. ADR (China)(NON) 6,871 160,369
Tencent Holdings, Ltd. (China) 25,200 726,431
886,800
Machinery (3.7%)
BHI Co., Ltd. (South Korea) 23,750 385,565
China National Materials Co., Ltd. (China) 473,000 443,732
Lonking Holdings, Ltd. (China) 737,000 415,647
Tata Motors, Ltd. (India) 19,341 470,333
Weichai Power Co., Ltd. (China) 71,000 404,265
2,119,542
Metals and mining (6.7%)
African Rainbow Minerals, Ltd. (South Africa) 18,151 544,804
Freeport-McMoRan Copper & Gold, Inc. Class B 6,602 340,927
Mechel ADR (Russia) 20,282 537,473
New World Resources PLC Class A (Czech Republic)(NON) 21,540 345,508
Sterlite Industries (India), Ltd. (India) 70,838 269,720
Sterlite Industries (India), Ltd. ADR (India) 22,180 344,899
Vale SA ADR (Brazil) 18,028 581,583
Vale SA ADR (Preference) (Brazil) 27,814 814,950
3,779,864
Multiline retail (3.2%)
Hyundai Department Store Co., Ltd. (South Korea) 3,537 603,723
Lojas Renner SA (Brazil) 22,668 858,767
PCD Stores Group, Ltd. (China) 1,306,000 346,558
1,809,048
Oil, gas, and consumable fuels (14.0%)
CNOOC, Ltd. (China) 421,000 1,064,993
Gazprom OAO ADR (Russia) 120,376 1,781,121
Lukoil OAO ADR (Russia) 19,958 1,291,024
OGX Petroleo e Gas Participacoes SA (Brazil)(NON) 101,670 1,033,561
Petroleo Brasileiro SA ADR (Brazil) 20,573 712,443
Petroleo Brasileiro SA ADR (Preference) (Brazil) 29,706 928,610
Sasol, Ltd. (South Africa) 15,939 848,179
Tullow Oil PLC (United Kingdom) 11,596 258,422
7,918,353
Real estate management and development (4.7%)
Aliansce Shopping Centers SA (Brazil) 41,300 371,224
BR Malls Participacoes SA (Brazil) 70,732 817,551
C C Land Holdings, Ltd. (China) 1,033,000 395,681
Guangzhou R&F Properties Co., Ltd. (China) 342,000 476,381
Huaku Development Co., Ltd. (Taiwan) 90,000 289,192
LSR Group OJSC GDR (Russia)(NON) 36,063 303,254
2,653,283
Semiconductors and semiconductor equipment (6.3%)
Advanced Semiconductor Engineering Inc. (Taiwan) 460,000 566,870
Samsung Electronics Co., Ltd. (South Korea) 2,461 2,062,868
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan) 351,889 940,726
3,570,464
Software (1.7%)
AsiaInfo-Linkage, Inc. (China)(NON) 28,234 506,236
Perfect World Co., Ltd. ADR (China)(NON) 19,600 463,540
969,776
Wireless telecommunication services (1.5%)
Bharti Airtel, Ltd. (India) 50,215 417,109
Mobile Telesystems ADR (Russia) 20,557 416,690
833,799
Total Common stocks (cost $49,995,077) $55,044,931

INVESTMENT COMPANIES (1.4%)(a)
Shares Value
iShares MSCI Emerging Markets Index Fund 15,800 $767,090
Total Investment Companies (cost $757,881) $767,090

SHORT-TERM INVESTMENTS (1.0%)(a)
Shares Value
Putnam Money Market Liquidity Fund 0.07%(e) 592,098 $592,098
Total Short-term investments (cost $592,098) $592,098

TOTAL INVESTMENTS
Total investments (cost $51,345,056)(b) $56,404,119













Key to holding's abbreviations
ADR American Depository Receipts
GDR Global Depository Receipts
NVDR Non-voting Depository Receipt
OAO Open Joint Stock Company
OJSC Open Joint Stock Company
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 September 1, 2010 through May 31, 2011 (the reporting period).
(a) Percentages indicated are based on net assets of $56,711,907.
(b) The aggregate identified cost on a tax basis is $51,500,279, resulting in gross unrealized appreciation and depreciation of $6,403,588 and $1,499,748, respectively, or net unrealized appreciation of $4,903,840.
(NON) Non-income-producing security.
(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 $730 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $24,080,380 and $23,673,708, 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.
(F) Is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures (ASC 820) based on the securities' valuation inputs. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio.
ADR or GDR after the name of a foreign holding represents ownership of foreign securities on deposit with a custodian bank.
DIVERSIFICATION BY COUNTRY
Distribution of investments by country of risk at the close of the reporting period (as a percentage of Portfolio Value):
China 26.4%
Brazil 21.2
South Korea 13.2
Russia 13.0
Taiwan 9.2
South Africa 3.9
United States 3.0
India 2.7
Thailand 2.5
Indonesia 1.3
Malaysia 1.1
Mexico 0.9
Czech Republic 0.6
Philippines 0.6
United Kingdom 0.4
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. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. 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.












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:
    Consumer discretionary $3,334,325 $3,174,402 $—
    Consumer staples 893,972 576,248 362,328
    Energy 2,674,614 5,243,739 —
    Financials 4,051,239 11,611,869 —
    Industrials — 4,186,796 —
    Information technology 1,130,145 7,652,965 —
    Materials 3,208,778 3,732,290 573,012
    Telecommunication services 416,690 417,109 —
    Utilities 409,377 1,395,033 —
Total common stocks 16,119,140 37,990,451 935,340
Investment companies 767,090 — —
Short-term investments 592,098 — —
Totals by level $17,478,328 $37,990,451 $935,340


At the start and/or close of the reporting period, Level 3 investments in securities were not considered a significant portion of the fund's portfolio.

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: July 28, 2011

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: July 28, 2011

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: July 28, 2011




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: August 31, 2011
Date of reporting period: May 31, 2011



Item 1. Schedule of Investments:













Putnam Global Consumer Fund

The fund's portfolio
5/31/11 (Unaudited)
COMMON STOCKS (97.1%)(a)
Shares Value
Airlines (1.4%)
Delta Air Lines, Inc.(NON) 13,200 $133,056
United Continental Holdings, Inc.(NON) 4,800 115,920
248,976
Automobiles (9.5%)
Bayerische Motoren Werke (BMW) AG (Germany) 2,646 234,469
Dongfeng Motor Group Co., Ltd. (China) 24,000 42,456
Fiat SpA (Italy) 14,807 158,642
Ford Motor Co.(NON) 13,100 195,452
General Motors Co.(NON) 4,000 127,240
Nissan Motor Co., Ltd. (Japan) 34,300 343,888
Porsche Automobil Holding SE (Preference) (Germany) 3,577 248,487
Toyota Motor Corp. (Japan) 7,400 308,210
1,658,844
Beverages (11.1%)
Anheuser-Busch InBev NV (Belgium) 5,992 361,759
Britvic PLC (United Kingdom) 24,273 174,542
Carlsberg A/S Class B (Denmark) 2,563 296,362
Coca-Cola Co. (The) 5,900 394,179
Coca-Cola Enterprises, Inc. 12,000 346,680
Diageo PLC (United Kingdom) 17,038 363,245
1,936,767
Chemicals (1.1%)
Huabao International Holdings, Ltd. (China) 137,000 194,014
194,014
Commercial services and supplies (1.0%)
Edenred (France) 5,625 167,094
167,094
Diversified consumer services (1.4%)
Apollo Group, Inc. Class A(NON) 3,500 143,885
Career Education Corp.(NON) 4,332 93,138
237,023
Food and staples retail (2.2%)
Jeronimo Martins, SGPS, SA (Portugal) 9,575 179,169
WM Morrison Supermarkets PLC (United Kingdom) 39,474 197,838
377,007
Food products (7.8%)
Danone SA (France) 4,336 317,964
Kerry Group PLC Class A (Ireland) 6,692 286,798
Nestle SA (Switzerland) 7,046 452,401
Suedzucker AG (Germany) 3,326 104,802
Toyo Suisan Kaisha, Ltd. (Japan) 3,000 70,231
Zhongpin, Inc. (China)(NON)(S) 8,300 126,575
1,358,771
Hotels, restaurants, and leisure (9.3%)
Asia Entertainment & Resources, Ltd. (Hong Kong)(NON)(S) 28,500 208,905
Compass Group PLC (United Kingdom) 23,520 229,512
Domino's Pizza, Inc.(NON) 3,300 82,236
Home Inns & Hotels Management, Inc. ADR (China)(NON) 3,000 122,610
McDonald's Corp. 6,859 559,285
Whitbread PLC (United Kingdom) 5,978 160,615
Wyndham Worldwide Corp. 7,278 253,347
1,616,510
Household durables (2.9%)
Newell Rubbermaid, Inc. 9,300 165,633
Rossi Residencial SA (Brazil) 8,800 77,985
Sharp Corp. (Japan) 10,000 93,706
Sony Corp. (Japan) 6,400 171,279
508,603
Household products (8.7%)
Colgate-Palmolive Co. 5,900 516,427
Henkel AG & Co. KGaA (Germany) 4,265 301,465
Procter & Gamble Co. (The) 5,959 399,253
Reckitt Benckiser Group PLC (United Kingdom) 5,100 289,548
1,506,693
Internet and catalog retail (3.1%)
Amazon.com, Inc.(NON) 1,000 196,690
Priceline.com, Inc.(NON) 500 257,595
Rakuten, Inc. (Japan) 80 81,319
535,604
Internet software and services (0.5%)
Tencent Holdings, Ltd. (China) 3,000 86,480
86,480
Leisure equipment and products (1.8%)
Hasbro, Inc. 6,900 315,606
315,606
Media (8.9%)
Fuji Media Holdings, Inc. (Japan) 66 88,510
Interpublic Group of Companies, Inc. (The) 18,000 214,740
Kabel Deutschland Holding AG (Germany)(NON) 2,452 167,382
Pearson PLC (United Kingdom) 10,575 198,911
Perform Group PLC (United Kingdom)(NON) 28,812 104,046
Stroer Out-of-Home Media AG (Germany)(NON) 3,962 113,635
Time Warner, Inc. 10,320 375,958
WPP PLC (Ireland) 22,713 284,382
1,547,564
Multiline retail (4.1%)
Dollar General Corp.(NON) 4,800 168,336
Myer Holdings, Ltd. (Australia) 53,708 164,589
Target Corp. 7,800 386,334
719,259
Personal products (0.7%)
Hypermarcas SA (Brazil)(NON) 12,900 121,259
121,259
Real estate management and development (1.6%)
BR Malls Participacoes SA (Brazil) 9,300 107,493
Daito Trust Construction Co., Ltd. (Japan) 2,100 173,927
281,420
Software (0.9%)
Nintendo Co., Ltd. (Japan) 300 69,995
Perfect World Co., Ltd. ADR (China)(NON) 3,600 85,140
155,135
Specialty retail (9.8%)
Bed Bath & Beyond, Inc.(NON) 7,400 398,786
Best Buy Co., Inc. 7,800 247,728
Kingfisher PLC (United Kingdom) 47,354 224,410
Lowe's Cos., Inc. 9,100 219,674
Signet Jewelers, Ltd. (Bermuda)(NON) 4,400 202,444
Staples, Inc. 17,700 297,714
Urban Outfitters, Inc.(NON) 3,500 106,610
1,697,366
Textiles, apparel, and luxury goods (3.0%)
Christian Dior SA (France) 1,928 298,891
Hanesbrands, Inc.(NON) 2,800 84,868
Pandora A/S (Denmark)(S) 4,118 140,519
524,278
Tobacco (6.3%)
British American Tobacco (BAT) PLC (United Kingdom) 2,982 134,042
Imperial Tobacco Group PLC (United Kingdom) 7,350 263,542
Japan Tobacco, Inc. (Japan) 60 232,155
Philip Morris International, Inc. 6,600 473,550
1,103,289
Total Common stocks (cost $14,579,455) $16,897,562

SHORT-TERM INVESTMENTS (3.7%)(a)
Shares Value
Putnam Cash Collateral Pool, LLC 0.19%(d) 238,152 $238,152
Putnam Money Market Liquidity Fund 0.07%(e) 411,941 411,941
Total Short-term investments (cost $650,093) $650,093

TOTAL INVESTMENTS
Total investments (cost $15,229,548)(b) $17,547,655













FORWARD CURRENCY CONTRACTS at 5/31/11 (aggregate face value $6,243,697) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Bank of America, N.A.
Australian Dollar Buy 6/15/11 $67,069 $68,902 $(1,833)
British Pound Sell 6/15/11 153,967 156,376 2,409
Euro Sell 6/15/11 34,649 35,889 1,240
Barclays Bank PLC
British Pound Sell 6/15/11 185,715 188,677 2,962
Euro Sell 6/15/11 18,547 19,210 663
Hong Kong Dollar Sell 6/15/11 77,217 77,314 97
Japanese Yen Buy 6/15/11 197,744 198,427 (683)
Singapore Dollar Buy 6/15/11 30,885 31,108 (223)
Swedish Krona Buy 6/15/11 43,631 44,515 (884)
Citibank, N.A.
British Pound Sell 6/15/11 280,464 284,781 4,317
Danish Krone Sell 6/15/11 396,735 410,981 14,246
Euro Sell 6/15/11 37,669 39,002 1,333
Hong Kong Dollar Sell 6/15/11 36,352 36,398 46
Swiss Franc Buy 6/15/11 215,191 212,475 2,716
Credit Suisse AG
Australian Dollar Buy 6/15/11 112,952 116,030 (3,078)
British Pound Sell 6/15/11 60,699 61,639 940
Euro Sell 6/15/11 34,362 35,565 1,203
Japanese Yen Sell 6/15/11 80,156 80,432 276
Norwegian Krone Sell 6/15/11 31,803 32,534 731
Swiss Franc Buy 6/15/11 56,845 56,137 708
Deutsche Bank AG
British Pound Sell 6/15/11 135,873 138,025 2,152
Euro Sell 6/15/11 261,237 270,460 9,223
Swedish Krona Buy 6/15/11 85,401 87,114 (1,713)
Swiss Franc Buy 6/15/11 32,935 32,515 420
Goldman Sachs International
British Pound Buy 6/15/11 233,089 236,767 (3,678)
Euro Sell 6/15/11 50,896 52,703 1,807
Japanese Yen Buy 6/15/11 128,315 128,739 (424)
Norwegian Krone Sell 6/15/11 99,635 101,880 2,245
HSBC Bank USA, National Association
Australian Dollar Buy 6/15/11 47,587 48,879 (1,292)
British Pound Sell 6/15/11 114,324 116,135 1,811
Euro Buy 6/15/11 82,526 85,454 (2,928)
Hong Kong Dollar Sell 6/15/11 50,059 50,121 62
Singapore Dollar Buy 6/15/11 11,025 11,102 (77)
Swiss Franc Buy 6/15/11 36,334 35,866 468
JPMorgan Chase Bank, N.A.
Australian Dollar Sell 6/15/11 95,386 91,787 (3,599)
British Pound Buy 6/15/11 38,821 39,416 (595)
Canadian Dollar Buy 6/15/11 52,934 54,004 (1,070)
Euro Sell 6/15/11 244,846 253,316 8,470
Hong Kong Dollar Sell 6/15/11 42,370 42,425 55
Japanese Yen Sell 6/15/11 208,689 209,438 749
Norwegian Krone Buy 6/15/11 131,160 134,179 (3,019)
Singapore Dollar Buy 6/15/11 42,153 42,475 (322)
Swedish Krona Buy 6/15/11 54,567 55,651 (1,084)
Swiss Franc Buy 6/15/11 23,207 22,910 297
Royal Bank of Scotland PLC (The)
Australian Dollar Buy 6/15/11 39,070 40,029 (959)
British Pound Sell 6/15/11 191,636 194,635 2,999
Canadian Dollar Sell 6/15/11 11,557 11,795 238
Euro Sell 6/15/11 15,959 16,514 555
Japanese Yen Sell 6/15/11 117,823 118,199 376
Swiss Franc Buy 6/15/11 41,257 40,719 538
State Street Bank and Trust Co.
Canadian Dollar Buy 6/15/11 108,138 110,313 (2,175)
Euro Sell 6/15/11 37,237 38,557 1,320
UBS AG
Australian Dollar Buy 6/15/11 16,820 17,272 (452)
British Pound Sell 6/15/11 263,192 270,167 6,975
Euro Buy 6/15/11 57,653 70,591 (12,938)
Swiss Franc Buy 6/15/11 47,351 46,731 620
Westpac Banking Corp.
Australian Dollar Buy 6/15/11 29,702 30,480 (778)
British Pound Buy 6/15/11 88,334 89,733 (1,399)
Canadian Dollar Buy 6/15/11 70,579 72,011 (1,432)
Euro Buy 6/15/11 199,845 206,915 (7,070)
Japanese Yen Buy 6/15/11 340,053 341,283 (1,230)
Total $20,332












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 September 1, 2010 through May 31, 2011 (the reporting period).
(a) Percentages indicated are based on net assets of $17,402,026.
(b) The aggregate identified cost on a tax basis is $15,235,536, resulting in gross unrealized appreciation and depreciation of $2,823,681 and $511,562, respectively, or net unrealized appreciation of $2,312,119.
(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 $232,166. The fund received cash collateral of $238,152 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 $404 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $6,082,880 and $6,348,472, 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.
(S) Security 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 $20,555 to cover certain derivatives contracts.
ADR after the name of a foreign holding represents ownership of foreign securities on deposit with a custodian bank.
DIVERSIFICATION BY COUNTRY *
Distribution of investments by country of risk at the close of the reporting period (as a percentage of Portfolio Value):
United States 44.4%
United Kingdom 13.5
Japan 9.4
Germany 6.8
France 4.5
China 3.8
Ireland 3.3
Switzerland 2.6
Denmark 2.5
Belgium 2.1
Brazil 1.8
Hong Kong 1.2
Bermuda 1.2
Portugal 1.0
Australia 1.0
Italy 0.9
Total 100.0%
* Methodology differs from that used for purposes of complying with the fund’s policy regarding investments in securities of foreign issuers, as discussed further in the fund’s prospectus.
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. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. 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.
Forward currency contracts: The fund buys and sells 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 hedge foreign exchange risk. 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. 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 when the contract matures or by delivery of the currency. 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. The fund had an average contract amount of approximately $5,200,000 on forward currency contracts for the reporting 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 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 $20,693 on derivative contracts subject to the Master Agreements. There was no collateral posted by the fund.












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:
    Consumer discretionary $5,606,845 $3,753,812 $—
    Consumer staples 2,377,923 4,025,863 —
    Financials 107,493 173,927 —
    Industrials 248,976 167,094 —
    Information technology 85,140 156,475 —
    Materials — 194,014 —
Total common stocks 8,426,377 8,471,185 —
Short-term investments 411,941 238,152 —
Totals by level $8,838,318 $8,709,337 $—



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3


Forward currency contracts $— $20,332 $—
Totals by level $— $20,332 $—


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 $75,267 $54,935
Total $75,267 $54,935


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: During the period, State Street Bank and Trust Company, which provides certain administrative, pricing and bookkeeping services for the Putnam funds pursuant to an agreement with Putnam Investment Management, LLC, began utilizing different accounting systems and systems support in providing services for the fund.

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: July 28, 2011

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: July 28, 2011

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: July 28, 2011




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: August 31, 2011
Date of reporting period: May 31, 2011



Item 1. Schedule of Investments:













Putnam Global Energy Fund

The fund's portfolio
5/31/11 (Unaudited)
COMMON STOCKS (97.5%)(a)
Shares Value
Construction and engineering (0.4%)
KBR, Inc. 2,200 $82,104
82,104
Energy equipment and services (13.7%)
Baker Hughes, Inc. 4,600 340,078
Helix Energy Solutions Group, Inc.(NON) 3,300 57,816
National Oilwell Varco, Inc. 8,700 631,446
Oil States International, Inc.(NON) 1,100 86,955
Schlumberger, Ltd. 12,250 1,050,070
Technip SA (France) 4,328 466,099
Wood Group (John) PLC (United Kingdom) 19,481 201,426
2,833,890
Oil, gas, and consumable fuels (83.1%)
Anadarko Petroleum Corp. 4,100 326,032
Apache Corp. 5,200 647,920
BG Group PLC (United Kingdom) 42,218 982,175
BP PLC (United Kingdom) 133,408 1,029,328
Brigham Exploration Co.(NON) 3,300 102,762
Cairn Energy PLC (United Kingdom)(NON) 55,863 405,851
Canadian Natural Resources, Ltd. (Canada) 15,000 652,921
Chevron Corp. 12,997 1,363,515
CNOOC, Ltd. (China) 41,000 103,717
Cobalt International Energy, Inc.(NON) 8,748 125,884
CONSOL Energy, Inc. 7,100 364,017
Devon Energy Corp. 3,200 269,024
Exxon Mobil Corp. 37,498 3,129,958
Gazprom OAO (Russia)(NON) 11,739 85,797
Gazprom OAO ADR (Russia) 6,265 92,409
Gazprom OAO ADR (Russia) 1,310 19,383
Hess Corp. 2,600 205,478
Inpex Holdings, Inc. (Japan) 77 557,728
Kosmos Energy, Ltd.(NON) 6,895 132,039
Linn Energy, LLC (Units) 2,580 100,259
Newfield Exploration Co.(NON) 3,100 231,229
Nexen, Inc. (Canada) 13,305 306,943
Noble Energy, Inc. 5,200 484,640
Occidental Petroleum Corp. 7,129 768,863
OGX Petroleo e Gas Participacoes SA (Brazil)(NON) 12,200 124,023
Petroleo Brasileiro SA ADR (Brazil) 2,531 87,649
Petroleo Brasileiro SA ADR (Preference) (Brazil)(S) 5,800 181,308
QEP Resources, Inc. 2,400 104,400
Rosetta Resources, Inc.(NON)(S) 1,100 54,065
Royal Dutch Shell PLC Class A (United Kingdom) 29,288 1,057,897
Royal Dutch Shell PLC Class B (United Kingdom) 22,282 809,889
Santos, Ltd. (Australia) 11,475 181,109
Sunoco, Inc. 7,900 319,871
Swift Energy Co.(NON) 3,000 117,690
Total SA (France) 19,510 1,128,546
Tullow Oil PLC (United Kingdom) 22,560 502,759
17,157,078
Semiconductors and semiconductor equipment (0.3%)
First Solar, Inc.(NON)(S) 500 62,125
62,125
Total Common stocks (cost $17,658,051) $20,135,197

SHORT-TERM INVESTMENTS (3.9%)(a)
Shares Value
Putnam Cash Collateral Pool, LLC 0.19%(d) 260,926 $260,926
Putnam Money Market Liquidity Fund 0.07%(e) 539,182 539,182
Total Short-term investments (cost $800,108) $800,108

TOTAL INVESTMENTS
Total investments (cost $18,458,159)(b) $20,935,305













FORWARD CURRENCY CONTRACTS at 5/31/11 (aggregate face value $7,085,545) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Bank of America, N.A.
Australian Dollar Buy 6/15/11 $19,695 $20,233 $(538)
British Pound Sell 6/15/11 235,227 238,907 3,680
Canadian Dollar Buy 6/15/11 417,075 423,405 (6,330)
Euro Sell 6/15/11 32,780 33,953 1,173
Barclays Bank PLC
British Pound Sell 6/15/11 191,965 195,028 3,063
Canadian Dollar Buy 6/15/11 133,006 135,749 (2,743)
Citibank, N.A.
Australian Dollar Buy 6/15/11 28,531 29,302 (771)
British Pound Buy 6/15/11 8,225 8,486 (261)
Canadian Dollar Buy 6/15/11 69,753 71,151 (1,398)
Euro Buy 6/15/11 30,768 31,856 (1,088)
Hong Kong Dollar Sell 6/15/11 101,019 101,190 171
Swiss Franc Buy 6/15/11 108,298 106,932 1,366
Credit Suisse AG
Australian Dollar Buy 6/15/11 27,360 28,105 (745)
British Pound Sell 6/15/11 607,479 616,893 9,414
Canadian Dollar Buy 6/15/11 326,375 331,329 (4,954)
Euro Buy 6/15/11 137,304 142,110 (4,806)
Japanese Yen Buy 6/15/11 101,088 101,437 (349)
Norwegian Krone Sell 6/15/11 48,483 49,597 1,114
Deutsche Bank AG
Australian Dollar Buy 6/15/11 51,526 52,940 (1,414)
Canadian Dollar Sell 6/15/11 2,580 2,632 52
Euro Buy 6/15/11 12,508 12,950 (442)
Goldman Sachs International
Australian Dollar Buy 6/15/11 21,185 21,751 (566)
British Pound Buy 6/15/11 87,182 88,558 (1,376)
Canadian Dollar Sell 6/15/11 348,148 355,106 6,958
Euro Buy 6/15/11 303,075 313,693 (10,618)
Japanese Yen Sell 6/15/11 219,395 220,159 764
Norwegian Krone Buy 6/15/11 62,365 63,770 (1,405)
HSBC Bank USA, National Association
British Pound Sell 6/15/11 195,584 198,682 3,098
Norwegian Krone Buy 6/15/11 110,903 113,624 (2,721)
JPMorgan Chase Bank, N.A.
British Pound Sell 6/15/11 152,980 155,326 2,346
Canadian Dollar Buy 6/15/11 366,618 374,026 (7,408)
Euro Sell 6/15/11 269,000 278,306 9,306
Japanese Yen Buy 6/15/11 120,896 121,330 (434)
Royal Bank of Scotland PLC (The)
Australian Dollar Buy 6/15/11 78,034 79,950 (1,916)
British Pound Sell 6/15/11 58,725 59,644 919
Canadian Dollar Buy 6/15/11 397,161 405,346 (8,185)
Euro Sell 6/15/11 140,611 145,501 4,890
Japanese Yen Sell 6/15/11 91,964 92,258 294
State Street Bank and Trust Co.
Canadian Dollar Buy 6/15/11 181,297 184,943 (3,646)
Euro Buy 6/15/11 158,295 163,903 (5,608)
UBS AG
Australian Dollar Buy 6/15/11 8,091 8,308 (217)
British Pound Sell 6/15/11 90,801 92,215 1,414
Canadian Dollar Sell 6/15/11 86,676 87,313 637
Euro Buy 6/15/11 53,340 58,537 (5,197)
Norwegian Krone Buy 6/15/11 195,934 200,386 (4,452)
Swiss Franc Buy 6/15/11 52,274 51,589 685
Westpac Banking Corp.
Australian Dollar Buy 6/15/11 49,503 50,800 (1,297)
British Pound Buy 6/15/11 21,055 21,389 (334)
Canadian Dollar Buy 6/15/11 142,293 145,179 (2,886)
Euro Buy 6/15/11 29,905 30,963 (1,058)
Japanese Yen Sell 6/15/11 168,197 168,805 608
Total $(33,211)












Key to holding's abbreviations
ADR American Depository Receipts
OAO Open Joint Stock Company
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 September 1, 2011 through May 31, 2011 (the reporting period).
(a) Percentages indicated are based on net assets of $20,660,639.
(b) The aggregate identified cost on a tax basis is $18,497,888, resulting in gross unrealized appreciation and depreciation of $2,655,030 and $217,613, respectively, or net unrealized appreciation of $2,437,417.
(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 $259,682. The fund received cash collateral of $260,926 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. 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 $569 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $5,622,628 and $5,437,743, 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.
(S) Security 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 $40,052 to cover certain derivatives contracts.
ADR after the name of a foreign holding represents ownership of foreign securities on deposit with a custodian bank.
DIVERSIFICATION BY COUNTRY*
Distribution of investments by country of risk at the close of the reporting period (as a percentage of Portfolio Value):
United States 56.6%
United Kingdom 24.1
France 7.7
Canada 4.6
Japan 2.7
Brazil 1.9
Russia 1.0
Australia 0.9
China 0.5
Total 100.0%
* Methodology differs from that used for purposes of complying with the fund’s policy regarding investments in securities of foreign issuers, as discussed further in the fund’s prospectus.
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. At May 31, 2011, fair value pricing was used for certain foreign securities in the portfolio. 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 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 buys and sells 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 hedge foreign exchange risk. 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. Risks may exceed amounts recognized on the Statement of assets and liabilities. Forward currency contracts outstanding at period end, if any, are listed after the fund’s portfolio. The fund had an average contract amount of approximately $5,100,000 on forward currency contracts for the reporting 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 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 $37,722 on derivative contracts subject to the Master Agreements. There was no collateral posted by the fund.












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:
    Energy $12,459,264 $7,531,704 $—
    Industrials 82,104 — —
    Information technology 62,125 — —
Total common stocks 12,603,493 7,531,704 —
Short-term investments $539,182 $260,926 $—
Totals by level $13,142,675 $7,792,630 $—



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3


Forward currency contracts $— $(33,211) $—
Totals by level $— $(33,211) $—


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 $51,952 $85,163
Total $51,952 $85,163


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: During the period, State Street Bank and Trust Company, which provides certain administrative, pricing and bookkeeping services for the Putnam funds pursuant to an agreement with Putnam Investment Management, LLC, began utilizing different accounting systems and systems support in providing services for the fund.

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: July 28, 2011

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: July 28, 2011

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: July 28, 2011




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: August 31, 2011
Date of reporting period: May 31, 2011



Item 1. Schedule of Investments:













Putnam Global Financials Fund

The fund's portfolio
5/31/11 (Unaudited)
COMMON STOCKS (94.4%)(a)
Shares Value
Capital markets (9.8%)
BlackRock, Inc. 362 $74,413
Goldman Sachs Group, Inc. (The) 987 138,901
Invesco, Ltd. 3,517 86,764
Julius Baer Group, Ltd. (Switzerland) 1,657 72,920
Macquarie Group, Ltd. (Australia) 1,647 59,856
Morgan Stanley 4,716 113,939
Schroders PLC (United Kingdom) 2,681 72,433
State Street Corp. 2,000 91,540
T. Rowe Price Group, Inc. 1,000 63,300
774,066
Commercial banks (43.5%)
Australia & New Zealand Banking Group, Ltd. (Australia) 5,728 135,566
Banco Bradesco SA (Preference) (Brazil)(NON) 5,400 106,031
Banco Santander Central Hispano SA (Spain) 15,460 184,195
Barclays PLC (United Kingdom) 36,460 166,629
BNP Paribas SA (France) 2,747 214,775
China Construction Bank Corp. (China) 149,000 141,067
Comerica, Inc. 1,500 54,165
DBS Group Holdings, Ltd. (Singapore) 10,085 121,024
DnB NOR ASA (Norway) 7,601 114,581
Fifth Third Bancorp 2,100 27,426
HSBC Holdings PLC (London Exchange) (United Kingdom) 9,102 95,199
Industrial and Commercial Bank of China, Ltd. (China) 170,000 142,652
Kasikornbank PCL NVDR (Thailand) 17,200 70,678
Lloyds Banking Group PLC (United Kingdom)(NON) 35,236 30,221
Mitsubishi UFJ Financial Group, Inc. (Japan) 25,600 118,544
National Australia Bank, Ltd. (Australia) 5,400 152,782
National Bank of Canada (Canada) 974 81,384
PNC Financial Services Group, Inc. 850 53,057
Popular, Inc. (Puerto Rico)(NON) 12,900 37,410
Royal Bank of Canada (Canada) 3,110 181,759
Sberbank OJSC (Russia)(NON)(FWC) 42,841 151,541
Shinhan Financial Group Co., Ltd. (South Korea) 2,053 92,574
Societe Generale (France) 1,604 95,527
Standard Chartered PLC (United Kingdom) 8,132 218,137
Sumitomo Mitsui Financial Group, Inc. (Japan) 3,000 86,955
SunTrust Banks, Inc. 1,732 48,721
Swedbank AB Class A (Sweden) 5,520 102,676
Toronto-Dominion Bank (Canada) 1,925 165,934
Wells Fargo & Co. 8,891 252,239
3,443,449
Consumer finance (0.9%)
Discover Financial Services 2,799 66,728
66,728
Diversified financial services (11.5%)
Bank of America Corp. 14,300 168,025
BGP Holdings PLC (Malta)(F) 82,319 118
Citigroup, Inc.(NON) 5,970 245,666
CME Group, Inc. 282 80,584
ING Groep NV (Netherlands)(NON) 10,710 129,701
JPMorgan Chase & Co. 4,147 179,316
ORIX Corp. (Japan) 750 71,900
Warsaw Stock Exchange (Poland)(NON) 1,927 38,003
913,313
Household durables (0.5%)
Persimmon PLC (United Kingdom) 4,494 35,485
35,485
Insurance (21.5%)
Aflac, Inc. 2,188 104,565
AIA Group, Ltd. (Hong Kong)(NON) 26,000 91,846
Allianz SE (Germany) 1,097 151,587
Assured Guaranty, Ltd. (Bermuda) 3,381 57,545
AXA SA (France) 7,707 164,948
Brown & Brown, Inc. 1,500 39,585
Employers Holdings, Inc. 2,200 36,542
Hartford Financial Services Group, Inc. (The) 3,217 85,733
Marsh & McLennan Cos., Inc. 3,500 107,345
MBIA, Inc.(NON) 3,000 26,400
MetLife, Inc. 2,700 119,070
Old Mutual PLC (United Kingdom) 21,140 45,883
Ping An Insurance (Group) Co. of China, Ltd. (China) 8,000 86,037
Progressive Corp. (The) 4,400 95,260
Prudential Financial, Inc. 1,337 85,274
Prudential PLC (United Kingdom) 8,936 108,698
SCOR (France) 3,348 92,942
Swiss Reinsurance Co., Ltd. (Switzerland)(NON) 2,105 125,607
XL Group PLC 3,372 79,782
1,704,649
Real estate investment trusts (REITs) (3.6%)
Digital Realty Trust, Inc.(R) 875 54,574
Link REIT (The) (Hong Kong)(R) 14,749 50,180
ProLogis(R) 4,500 74,520
Simon Property Group, Inc.(R) 909 107,317
286,591
Real estate management and development (3.1%)
Henderson Land Development Co., Ltd. (Hong Kong) 14,000 95,115
Mitsubishi Estate Co., Ltd. (Japan) 7,000 125,122
New World Development Co., Ltd. (Hong Kong) — —
Savills PLC (United Kingdom) 4,014 27,159
247,396
Total Common stocks (cost $6,466,090) $7,471,677

WARRANTS (0.7%)(a)(NON)
Expiration date Strike Price Warrants Value
JPMorgan Chase & Co.(W) 10/28/18 $42.42 3,709 $55,598
Total Warrants (cost $39,872) $55,598

SHORT-TERM INVESTMENTS (5.2%)(a)
Shares Value
Putnam Money Market Liquidity Fund 0.07%(e) 411,233 $411,233
Total Short-term investments (cost $411,233) $411,233

TOTAL INVESTMENTS
Total investments (cost $6,917,195)(b) $7,938,508













FORWARD CURRENCY CONTRACTS at 5/31/11 (aggregate face value $3,037,242) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Barclays Bank PLC
Australian Dollar Buy 6/15/11 $27,356 $28,108 $(752)
British Pound Sell 6/15/11 42,110 42,782 672
Canadian Dollar Sell 6/15/11 22,495 22,958 463
Euro Sell 6/15/11 15,953 16,530 577
Hong Kong Dollar Sell 6/15/11 40,943 40,994 51
Japanese Yen Buy 6/15/11 42,630 42,777 (147)
Norwegian Krone Sell 6/15/11 48,586 49,741 1,155
Swedish Krona Buy 6/15/11 21,692 22,134 (442)
Swiss Franc Buy 6/15/11 39,616 39,109 507
Citibank, N.A.
British Pound Buy 6/15/11 57,243 58,144 (901)
Canadian Dollar Buy 6/15/11 12,382 12,630 (248)
Danish Krone Buy 6/15/11 22,180 21,890 290
Euro Sell 6/15/11 106,209 110,009 3,800
Hong Kong Dollar Sell 6/15/11 243,422 243,696 274
Norwegian Krone Sell 6/15/11 24,293 23,852 (441)
Singapore Dollar Buy 6/15/11 29,913 30,139 (226)
Swiss Franc Sell 6/15/11 118,849 117,348 (1,501)
Credit Suisse AG
Australian Dollar Buy 6/15/11 110,912 113,952 (3,040)
British Pound Sell 6/15/11 34,708 35,246 538
Canadian Dollar Buy 6/15/11 121,347 123,795 (2,448)
Euro Sell 6/15/11 33,343 34,523 1,180
Japanese Yen Sell 6/15/11 6,152 6,173 21
Norwegian Krone Buy 6/15/11 59,945 61,333 (1,388)
Swiss Franc Buy 6/15/11 469 463 6
Deutsche Bank AG
Australian Dollar Buy 6/15/11 29,804 30,626 (822)
Euro Buy 6/15/11 69,130 71,597 (2,467)
Swedish Krona Sell 6/15/11 5,775 5,891 116
Swiss Franc Buy 6/15/11 37,272 36,796 476
Goldman Sachs International
British Pound Sell 6/15/11 5,593 5,681 88
Euro Sell 6/15/11 22,420 23,176 756
Japanese Yen Buy 6/15/11 80,372 80,464 (92)
Norwegian Krone Sell 6/15/11 44,213 45,217 1,004
Swedish Krona Buy 6/15/11 19,023 19,396 (373)
Swiss Franc Buy 6/15/11 58,135 57,393 742
JPMorgan Chase Bank, N.A.
Australian Dollar Sell 6/15/11 35,445 36,323 878
Royal Bank of Scotland PLC (The)
Australian Dollar Buy 6/15/11 103,355 105,909 (2,554)
British Pound Buy 6/15/11 116,953 118,786 (1,833)
Canadian Dollar Buy 6/15/11 18,367 18,746 (379)
Euro Buy 6/15/11 143,864 148,923 (5,059)
Israeli Shekel Buy 6/15/11 5,586 5,660 (74)
Japanese Yen Buy 6/15/11 48,298 48,452 (154)
Swiss Franc Buy 6/15/11 86,734 85,603 1,131
State Street Bank and Trust Co.
Canadian Dollar Buy 6/15/11 89,565 91,367 (1,802)
Euro Buy 6/15/11 63,237 65,501 (2,264)
Israeli Shekel Buy 6/15/11 5,615 5,698 (83)
Swedish Krona Buy 6/15/11 18,036 18,394 (358)
UBS AG
Australian Dollar Buy 6/15/11 47,260 48,538 (1,278)
British Pound Sell 6/15/11 104,288 105,914 1,626
Canadian Dollar Sell 6/15/11 28,789 29,363 574
Euro Buy 6/15/11 170,740 176,750 (6,010)
Israeli Shekel Buy 6/15/11 5,615 5,692 (77)
Norwegian Krone Sell 6/15/11 17,344 17,741 397
Swiss Franc Buy 6/15/11 29,419 29,033 386
Westpac Banking Corp.
Australian Dollar Buy 6/15/11 24,269 24,909 (640)
British Pound Sell 6/15/11 1,974 2,005 31
Canadian Dollar Buy 6/15/11 79,040 80,643 (1,603)
Euro Sell 6/15/11 58,925 61,033 2,108
Japanese Yen Buy 6/15/11 31,582 31,696 (114)
Total $(19,723)












TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 5/31/11 (Unaudited)
Upfront     Fixed payments Total return Unrealized
Swap counterparty / premium     Termination received (paid) by received by appreciation/
Notional amount received (paid)     date fund per annum or paid by fund (depreciation)
Goldman Sachs International
basket 826      4/9/12 (1 month USD-LIBOR-BBA plus 40 bps) A basket (GSCBPBAT) of common stocks $(689)
Total $(689)










Key to holding's abbreviations
NVDR Non-voting Depository Receipt
OJSC Open Joint Stock Company
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 August 31, 2010 through May 31, 2011 (the reporting period).
(a) Percentages indicated are based on net assets of $7,912,777.
(b) The aggregate identified cost on a tax basis is $6,954,382, resulting in gross unrealized appreciation and depreciation of $1,151,819 and $167,693, respectively, or net unrealized appreciation of $984,126.
(FWC) Forward commitment, in part or in entirety.
(NON) Non-income-producing security.
(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 $129 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $2,685,044 and $2,397,654, 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.
(F) Is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures (ASC 820) based on the securities' valuation inputs. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio.
(R) Real Estate Investment Trust.
(W) Warrants issued to the U.S. Treasury under the Troubled Asset Relief Program (TARP).
At the close of the reporting period, the fund maintained liquid assets totaling $23,498 to cover certain derivatives contracts.
DIVERSIFICATION BY COUNTRY
Distribution of investments by country of risk at the close of the reporting period (as a percentage of Portfolio Value):
United States 40.7%
United Kingdom 10.1
France 7.1
Canada 5.4
Japan 5.1
China 4.7
Australia 4.4
Hong Kong 3.0
Switzerland 2.5
Spain 2.3
Germany 1.9
Russia 1.9
Netherlands 1.6
Singapore 1.5
Norway 1.4
Brazil 1.3
Sweden 1.3
South Korea 1.2
Thailand 0.9
Bermuda 0.7
Poland 0.5
Puerto Rico 0.5
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. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. 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 buys and sells 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 hedge foreign exchange risk. 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. The fund had an average contract amount of approximately $2,600,000 on forward currency contracts for the reporting period.
Total return swap contracts: The fund enters into total return swap contracts, which are arrangements to exchange a market linked return for a periodic payment, both based on a notional principal amount to manage exposure to specific sectors or industries, to gain exposure to specific markets/countries and to gain exposure to specific sectors/industries. To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. Total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty. The fund had an average notional amount of approximately $100,000 on total return swap contracts for the reporting 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 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 $25,855 on derivative contracts subject to the Master Agreements. There was no collateral posted by the fund.












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:
    Consumer discretionary $— $35,485 $—
    Financials 3,390,814 4,045,260 118
Total common stocks 3,390,814 4,080,745 118
Warrants 55,598 $— $—
Short-term investments 411,233 — —
Totals by level $3,857,645 $4,080,745 $118



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3


Forward currency contracts $— (19,723) $—
Total return swap contracts (689)
Totals by level $— $(20,412) $—


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 $19,847 $39,570
Equity contracts 55,598 689
Total $75,445 $40,259


At the start and/or close of the reporting period, Level 3 investments in securities were not considered a significant portion of the fund's portfolio.

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: July 28, 2011

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: July 28, 2011

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: July 28, 2011




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: August 31, 2011
Date of reporting period: May 31, 2011



Item 1. Schedule of Investments:













Putnam Global Industrials Fund

The fund's portfolio
5/31/11 (Unaudited)
COMMON STOCKS (98.2%)(a)
Shares Value
Aerospace and defense (23.6%)
Cobham PLC (United Kingdom) 14,820 $55,341
Embraer SA ADR (Brazil) 13,500 435,915
General Dynamics Corp. 3,800 282,036
Goodrich Corp. 1,600 139,664
Honeywell International, Inc. 13,000 774,150
L-3 Communications Holdings, Inc. 4,000 326,600
MTU Aero Engines Holding AG (Germany) 4,228 323,987
Northrop Grumman Corp. 13,100 855,299
Precision Castparts Corp. 3,700 581,270
Raytheon Co. 1,755 88,417
Rockwell Collins, Inc. 1,200 73,356
Safran SA (France) 10,608 433,298
Textron, Inc. 1,700 38,896
United Technologies Corp. 1,867 163,867
4,572,096
Air freight and logistics (1.5%)
Deutsche Post AG (Germany) 9,053 170,511
FedEx Corp. 400 37,456
PostNL (Netherlands) 3,581 37,585
TNT Express NV (Netherlands)(NON) 3,581 50,722
296,274
Airlines (5.4%)
China Southern Airlines Co., Ltd. (China)(NON) 392,000 203,196
Deutsche Lufthansa AG (Germany) 13,717 298,176
Qantas Airways, Ltd. (Australia)(NON) 34,420 77,260
US Airways Group, Inc.(NON) 51,100 465,010
1,043,642
Auto components (0.8%)
Aisin Seiki Co., Ltd. (Japan) 4,200 155,693
155,693
Automobiles (1.6%)
Daimler AG (Registered Shares) (Germany) 1,348 95,137
Fiat SpA (Italy) 19,439 208,270
303,407
Building products (0.2%)
Daikin Industries, Ltd. (Japan) 1,400 46,800
46,800
Commercial services and supplies (0.3%)
Iron Mountain, Inc. 1,500 51,015
51,015
Construction and engineering (1.4%)
Daelim Industrial Co., Ltd. (South Korea) 885 87,286
Fluor Corp. 1,700 117,181
KEPCO Engineering & Construction Co., Inc. (South Korea) 1,265 70,480
274,947
Construction materials (0.6%)
China Shanshui Cement Group, Ltd. (China) 104,000 112,454
112,454
Electrical equipment (9.1%)
Babcock & Wilcox Co.(NON) 1,450 40,673
Cooper Industries PLC 5,300 333,105
Emerson Electric Co. 7,600 414,580
Mitsubishi Electric Corp. (Japan) 35,000 395,156
Schneider Electric SA (France) 2,345 386,891
Sensata Technologies Holding NV (Netherlands)(NON) 3,670 133,148
Sun King Power Electronics Group (China)(NON) 300,000 56,315
Xinjiang Goldwind Science & Technology Co., Ltd. (China) 1,600 2,211
1,762,079
Electronic equipment, instruments, and components (1.0%)
Hollysys Automation Technologies, Ltd. (China)(NON) 2,200 19,360
Yokogawa Electric Corp. (Japan) 22,000 173,578
192,938
Independent power producers and energy traders (0.4%)
China WindPower Group, Ltd. (China)(NON) 730,000 74,185
74,185
Industrial conglomerates (17.5%)
General Electric Co. 93,499 1,836,320
Siemens AG (Germany) 8,094 1,082,433
Tyco International, Ltd. 9,900 488,565
3,407,318
IT Services (0.4%)
Mantech International Corp. Class A(NON) 1,100 49,522
SAIC, Inc.(NON) 1,600 28,096
77,618
Machinery (28.4%)
China National Materials Co., Ltd. (China) 77,000 72,235
Cummins, Inc. 900 94,716
Dover Corp. 1,100 73,953
Eaton Corp. 7,100 366,857
Fiat Industrial SpA (Italy)(NON) 24,826 328,142
Flowserve Corp. 400 48,492
Hitachi Construction Machinery Co., Ltd. (Japan) 4,600 97,236
Illinois Tool Works, Inc. 7,800 447,096
Ingersoll-Rand PLC 19,100 953,090
Joy Global, Inc. 2,800 251,020
Lonking Holdings, Ltd. (China) 156,000 87,979
Metso OYJ (Finland) 8,326 480,401
Parker Hannifin Corp. 11,550 1,026,218
Sumitomo Heavy Industries, Ltd. (Japan) 43,000 298,121
Vallourec SA (France) 679 85,454
Volvo AB Class B (Sweden) 40,226 727,863
Zardoya Otis SA (Spain) 4,788 80,322
5,519,195
Road and rail (3.1%)
Avis Budget Group, Inc.(NON) 4,100 72,119
Canadian National Railway Co. (Canada) 1,436 112,310
CSX Corp. 2,200 174,460
Swift Transportation Co.(NON) 18,500 250,675
609,564
Semiconductors and semiconductor equipment (0.3%)
First Solar, Inc.(NON)(S) 400 49,700
49,700
Trading companies and distributors (2.6%)
Mitsubishi Corp. (Japan) 2,700 68,359
Mitsui & Co., Ltd. (Japan) 15,900 272,058
Rexel SA (France)(NON) 4,014 102,397
WESCO International, Inc.(NON) 1,100 61,156
503,970
Total Common stocks (cost $16,809,316) $19,052,895

PURCHASED OPTIONS OUTSTANDING (0.1%)(a)
Expiration date/ Contract
strike price amount Value
Caterpillar, Inc. (Put) Jun-11/$95.00 50,919 $9,843
General Electric Co. (Call) Jul-11/23.00 626,854 5,015
Total Purchased options outstanding (cost $47,750) $14,858

SHORT-TERM INVESTMENTS (1.9%)(a)
Shares Value
Putnam Cash Collateral Pool, LLC 0.19%(d) 37,200 $37,200
Putnam Money Market Liquidity Fund 0.07%(e) 330,488 330,488
Total Short-term investments (cost $367,688) $367,688

TOTAL INVESTMENTS
Total investments (cost $17,224,754)(b) $19,435,441













WRITTEN OPTIONS OUTSTANDING at 5/31/11 (premiums received $12,730) (Unaudited)


Expiration date/       Contract
strike price       amount Value
Caterpillar, Inc. (Put) Jun-11/$90.00        50,919 $3,203
Total $3,203












FORWARD CURRENCY CONTRACTS at 5/31/11 (aggregate face value $8,050,579) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Bank of America, N.A.
Australian Dollar Buy 6/15/11 $43,222 $44,403 $(1,181)
British Pound Sell 6/15/11 18,259 18,545 286
Canadian Dollar Buy 6/15/11 56,030 57,160 (1,130)
Euro Buy 6/15/11 53,052 54,950 (1,898)
Norwegian Krone Buy 6/15/11 6,635 6,785 (150)
Singapore Dollar Buy 6/15/11 47,504 47,838 (334)
Swedish Krona Buy 6/15/11 57,268 57,640 (372)
Swiss Franc Buy 6/15/11 81,341 80,248 1,093
Barclays Bank PLC
Australian Dollar Buy 6/15/11 41,412 42,545 (1,133)
British Pound Buy 6/15/11 98,697 100,271 (1,574)
Canadian Dollar Buy 6/15/11 49,013 50,024 (1,011)
Euro Buy 6/15/11 118,757 123,006 (4,249)
Hong Kong Dollar Buy 6/15/11 38,139 38,187 (48)
Japanese Yen Buy 6/15/11 273,616 274,562 (946)
Swedish Krona Sell 6/15/11 53,952 55,046 1,094
Citibank, N.A.
British Pound Buy 6/15/11 126,496 128,485 (1,989)
Canadian Dollar Sell 6/15/11 19,605 19,998 393
Danish Krone Buy 6/15/11 199,920 207,014 (7,094)
Euro Sell 6/15/11 461,944 478,294 16,350
Hong Kong Dollar Sell 6/15/11 533,899 534,574 675
Singapore Dollar Sell 6/15/11 10,863 10,945 82
Swedish Krona Buy 6/15/11 7,231 7,376 (145)
Swiss Franc Buy 6/15/11 182,959 180,650 2,309
Credit Suisse AG
British Pound Buy 6/15/11 75,668 76,840 (1,172)
Canadian Dollar Buy 6/15/11 86,573 88,320 (1,747)
Euro Sell 6/15/11 85,833 88,837 3,004
Japanese Yen Buy 6/15/11 146,884 147,391 (507)
Norwegian Krone Buy 6/15/11 14,048 14,371 (323)
Swedish Krona Buy 6/15/11 18,976 19,353 (377)
Swiss Franc Buy 6/15/11 48,523 47,919 604
Deutsche Bank AG
Euro Buy 6/15/11 19,841 20,541 (700)
Swedish Krona Buy 6/15/11 110,638 112,857 (2,219)
Swiss Franc Buy 6/15/11 94,468 93,263 1,205
Goldman Sachs International
Australian Dollar Buy 6/15/11 45,671 46,890 (1,219)
British Pound Sell 6/15/11 29,609 30,076 467
Canadian Dollar Sell 6/15/11 37,044 37,784 740
Euro Sell 6/15/11 102,223 105,852 3,629
Japanese Yen Buy 6/15/11 601,182 602,496 (1,314)
Norwegian Krone Buy 6/15/11 21,610 22,097 (487)
Swedish Krona Buy 6/15/11 11,729 11,958 (229)
HSBC Bank USA, National Association
Australian Dollar Buy 6/15/11 26,402 27,119 (717)
British Pound Buy 6/15/11 167,127 169,774 (2,647)
Euro Sell 6/15/11 41,838 43,323 1,485
Hong Kong Dollar Buy 6/15/11 195,467 195,709 (242)
Norwegian Krone Sell 6/15/11 15,420 15,798 378
Singapore Dollar Buy 6/15/11 65,743 66,207 (464)
Swiss Franc Buy 6/15/11 42,429 41,883 546
JPMorgan Chase Bank, N.A.
British Pound Sell 6/15/11 14,969 15,199 230
Canadian Dollar Buy 6/15/11 22,598 23,054 (456)
Euro Sell 6/15/11 281,796 291,544 9,748
Hong Kong Dollar Sell 6/15/11 122,596 122,755 159
Japanese Yen Buy 6/15/11 359,459 360,748 (1,289)
Norwegian Krone Sell 6/15/11 18,051 18,467 416
Singapore Dollar Buy 6/15/11 230,141 231,898 (1,757)
Swedish Krona Buy 6/15/11 58,013 59,165 (1,152)
Swiss Franc Buy 6/15/11 107,244 105,873 1,371
Royal Bank of Scotland PLC (The)
British Pound Buy 6/15/11 227,825 229,646 (1,821)
Canadian Dollar Buy 6/15/11 27,035 27,592 (557)
Euro Buy 6/15/11 20,560 21,275 (715)
Japanese Yen Buy 6/15/11 198,090 198,723 (633)
Swedish Krona Buy 6/15/11 16 17 (1)
Swiss Franc Buy 6/15/11 61,299 60,500 799
State Street Bank and Trust Co.
Australian Dollar Sell 6/15/11 12,881 13,232 351
Canadian Dollar Buy 6/15/11 88,843 90,630 (1,787)
Euro Sell 6/15/11 272,595 282,252 9,657
Swedish Krona Sell 6/15/11 47,578 48,518 940
UBS AG
Australian Dollar Buy 6/15/11 29,170 29,953 (783)
British Pound Buy 6/15/11 96,065 97,561 (1,496)
Canadian Dollar Buy 6/15/11 25,900 26,416 (516)
Euro Sell 6/15/11 261,380 270,481 9,101
Japanese Yen Buy 6/15/11 65,906 66,125 (219)
Norwegian Krone Buy 6/15/11 14,197 14,519 (322)
Swiss Franc Buy 6/15/11 52,860 52,167 693
Westpac Banking Corp.
British Pound Buy 6/15/11 88,663 90,067 (1,404)
Canadian Dollar Buy 6/15/11 57,474 58,640 (1,166)
Euro Buy 6/15/11 292,004 302,335 (10,331)
Japanese Yen Sell 6/15/11 24,892 24,982 90
Swedish Krona Sell 6/15/11 69,628 71,041 1,413
Total $5,285












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 September 1, 2010 through May 31, 2011 (the reporting period).
(a) Percentages indicated are based on net assets of $19,409,428.
(b) The aggregate identified cost on a tax basis is $17,270,765, resulting in gross unrealized appreciation and depreciation of $2,442,440 and $277,764, respectively, or net unrealized appreciation of $2,164,676.
(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 $37,275. The fund received cash collateral of $37,200 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 $412 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $8,816,349 and $8,530,355, 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.
(S) Security 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 $4,610,828 to cover certain derivatives contracts.
ADR after the name of a foreign holding represents ownership of foreign securities on deposit with a custodian bank.
DIVERSIFICATION BY COUNTRY*
Distribution of investments by country of risk at the close of the reporting period (as a percentage of Portfolio Value):
United States 58.8%
Germany 10.2
Japan 7.8
France 5.2
Sweden 3.8
China 3.2
Italy 2.8
Finland 2.5
Brazil 2.2
Netherlands 1.1
South Korea 0.8
Canada 0.6
Other 1.0
Total 100.0%
* Methodology differs from that used for purposes of complying with the fund’s policy regarding investments in securities of foreign issuers, as discussed further in the fund’s prospectus.
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. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. 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.
Options contracts: The fund uses options contracts to further express our fundamental opinion on stocks we own or actively cover.
The potential risk to the fund is that the change in value of options contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.
Exchange traded options are valued at the last sale price or, if no sales are reported, the last bid price for purchased options and the last ask price for written options. Options traded over-the-counter are valued using prices supplied by dealers. The fund had an average contract amount of approximately 400,000 on purchased options contracts for the reporting period. Outstanding contracts on written options contracts at the close of the reporting period are indicative of the volume of activity during the reporting period.
Forward currency contracts: The fund buys and sells 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 hedge foreign exchange risk and to gain exposure on currency. 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. 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 when the contract matures or by delivery of the currency. 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. The fund had an average contract amount of approximately $5,700,000 on forward currency contracts for the reporting 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 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 $29,770 on derivative contracts subject to the Master Agreements. There was no collateral posted by the fund.












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:
Consumer discretionary $— $459,100 $—
Industrials 11,646,270 6,440,630 —
Information technology 146,678 173,578 —
Materials — 112,454 —
Utilities — 74,185 —
Total common stocks 11,792,948 7,259,947 —
Purchased options outstanding — 14,858 —
Short-term investments 330,488 37,200 —
Totals by level $12,123,436 $7,312,005 $—



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3


Forward currency contracts $— $5,285 $—
Written options — (3,203) —
Totals by level $— $2,082 $—


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 $69,308 $64,023
Equity contracts 14,858 3,203
Total $84,166 $67,226


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: During the period, State Street Bank and Trust Company, which provides certain administrative, pricing and bookkeeping services for the Putnam funds pursuant to an agreement with Putnam Investment Management, LLC, began utilizing different accounting systems and systems support in providing services for the fund.



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: July 28, 2011



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: July 28, 2011



By (Signature and Title):


/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: July 28, 2011





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: August 31, 2011
Date of reporting period: May 31, 2011



Item 1. Schedule of Investments:













Putnam Global Technology Fund

The fund's portfolio
5/31/11 (Unaudited)
COMMON STOCKS (96.7%)(a)
Shares Value
Aerospace and defense (0.9%)
L-3 Communications Holdings, Inc. 1,500 $122,475
122,475
Communications equipment (18.3%)
ADTRAN, Inc. 700 30,002
Alcatel-Lucent ADR (France)(NON)(S) 16,585 94,037
Cisco Systems, Inc. 51,130 858,984
HTC Corp. (Taiwan) 100 4,274
Qualcomm, Inc. 15,371 900,587
Sycamore Networks, Inc. 3,900 94,536
Telefonaktiebolaget LM Ericsson ADR (Sweden) 32,569 483,324
Wistron NeWeb Corp. (Taiwan) 4,000 15,609
2,481,353
Computers and peripherals (25.3%)
Apple, Inc.(NON) 5,230 1,819,145
Compal Electronics, Inc. (Taiwan) 217 264
EMC Corp.(NON) 17,051 485,442
Fujitsu, Ltd. (Japan) 13,000 68,518
Hewlett-Packard Co. 16,710 624,620
SanDisk Corp.(NON) 5,376 255,468
Stratasys, Inc.(NON) 800 28,160
Toshiba Corp. (Japan) 27,000 144,214
Wistron Corp. (Taiwan) 553 1,044
3,426,875
Diversified telecommunication services (1.7%)
Verizon Communications, Inc. 6,320 233,398
233,398
Electronic equipment, instruments, and components (8.5%)
Corning, Inc. 24,516 493,997
Fuji Photo Film Cos., Ltd. (Japan) 800 23,674
Hitachi, Ltd. (Japan) 34,000 195,118
KEMET Corp.(NON) 3,000 44,160
Kyocera Corp. (Japan) 1,200 126,248
Multi-Fineline Electronix, Inc.(NON) 2,000 42,380
Murata Manufacturing Co., Ltd. (Japan) 1,300 82,066
Nippon Electric Glass Co., Ltd. (Japan) 9,000 127,589
TE Connectivity, Ltd. (Switzerland) 600 22,098
1,157,330
Household durables (0.6%)
Alpine Electronics, Inc. (Japan) 1,700 22,782
Skyworth Digital Holdings, Ltd. (China) 78,000 50,605
73,387
Internet software and services (8.3%)
eBay, Inc.(NON) 1,000 31,170
Google, Inc. Class A(NON) 1,645 870,238
Mail.ru Group, Ltd. 144A GDR (Russia) 353 12,212
Tencent Holdings, Ltd. (China) 1,200 34,592
VeriSign, Inc. 4,180 146,384
Yahoo!, Inc.(NON) 1,800 29,790
1,124,386
IT Services (6.4%)
Accenture PLC Class A 603 34,606
Automatic Data Processing, Inc. 692 38,136
IBM Corp. 1,942 328,062
Mastercard, Inc. Class A 615 176,536
Visa, Inc. Class A 2,804 227,292
Western Union Co. (The) 3,201 65,813
870,445
Leisure equipment and products (0.6%)
Nikon Corp. (Japan) 3,100 72,791
72,791
Media (0.3%)
CyberAgent, Inc. (Japan) 10 34,198
34,198
Office electronics (1.0%)
Canon, Inc. (Japan) 800 38,595
Canon, Inc. ADR (Japan) 2,112 101,334
139,929
Semiconductors and semiconductor equipment (4.6%)
ASML Holding NV (Netherlands) 1,923 74,999
Cymer, Inc.(NON) 400 19,148
Elpida Memory, Inc. (Japan)(NON) 2,200 30,553
First Solar, Inc.(NON)(S) 1,238 153,822
Kinsus Interconnect Technology Corp. (Taiwan) 5,000 22,619
Lam Research Corp.(NON) 2,200 103,389
Samsung Electronics Co., Ltd. (South Korea) 126 105,616
Sumco Corp. (Japan)(NON) 1,400 25,269
Texas Instruments, Inc. 800 28,240
Tokyo Electron, Ltd. (Japan) 1,100 60,858
624,513
Software (19.6%)
Adobe Systems, Inc.(NON) 7,900 273,577
Autonomy Corp. PLC (United Kingdom)(NON) 3,212 95,122
BMC Software, Inc.(NON) 2,836 158,334
CA, Inc. 7,800 182,520
Microsoft Corp. 28,019 700,755
Nintendo Co., Ltd. (Japan) 500 116,659
Nintendo Co., Ltd. ADR (Japan)(S) 2,425 70,083
Oracle Corp. 22,895 783,467
Red Hat, Inc.(NON) 715 31,174
SAP AG (Germany) 702 43,653
Symantec Corp.(NON) 7,973 155,872
Synchronoss Technologies, Inc.(NON) 600 19,179
VMware, Inc. Class A(NON) 321 31,240
2,661,635
Specialty retail (0.6%)
Best Buy Co., Inc. 2,600 82,576
82,576
Total Common stocks (cost $11,058,481) $13,105,291

WARRANTS (0.5%)(a)(NON)
Expiration date Strike Price Warrants Value
Bharti Airtel, Ltd. 144A (India) 2/28/14 $0.00 7,887 $65,511
Total Warrants (cost $59,716) $65,511

SHORT-TERM INVESTMENTS (4.2%)(a)
Shares Value
Putnam Cash Collateral Pool, LLC 0.19%(d) 284,750 $284,750
Putnam Money Market Liquidity Fund 0.07%(e) 281,345 281,345
Total Short-term investments (cost $566,095) $566,095

TOTAL INVESTMENTS
Total investments (cost $11,684,292)(b) $13,736,897













FORWARD CURRENCY CONTRACTS at 5/31/11 (aggregate face value $2,325,398) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Bank of America, N.A.
British Pound Sell 6/15/11 $39,808 $40,430 $622
Canadian Dollar Buy 6/15/11 22,185 22,632 (447)
Euro Buy 6/15/11 166,634 172,593 (5,959)
Swedish Krona Buy 6/15/11 1,747 1,459 288
Barclays Bank PLC
Euro Sell 6/15/11 17,109 19,524 2,415
Hong Kong Dollar Sell 6/15/11 66,043 66,126 83
Japanese Yen Buy 6/15/11 51,621 51,799 (178)
Swedish Krona Buy 6/15/11 922 941 (19)
Swiss Franc Sell 6/15/11 38,326 37,836 (490)
Citibank, N.A.
British Pound Buy 6/15/11 63,001 63,992 (991)
Canadian Dollar Sell 6/15/11 20,843 21,261 418
Euro Sell 6/15/11 8,770 9,081 311
Credit Suisse AG
Euro Sell 6/15/11 28,323 29,315 992
Japanese Yen Buy 6/15/11 189,068 189,720 (652)
Swiss Franc Buy 6/15/11 51,922 51,276 646
Deutsche Bank AG
Canadian Dollar Buy 6/15/11 24,145 24,632 (487)
Euro Sell 6/15/11 3,451 3,572 121
Goldman Sachs International
Euro Buy 6/15/11 51,183 53,001 (1,818)
Japanese Yen Sell 6/15/11 18,684 18,749 65
Swedish Krona Sell 6/15/11 16,598 14,535 (2,063)
HSBC Bank USA, National Association
Euro Buy 6/15/11 119,907 124,162 (4,255)
Hong Kong Dollar Buy 6/15/11 8,153 8,163 (10)
JPMorgan Chase Bank, N.A.
British Pound Buy 6/15/11 60,863 61,796 (933)
Canadian Dollar Sell 6/15/11 722 737 15
Euro Buy 6/15/11 28,036 29,006 (970)
Japanese Yen Buy 6/15/11 117,279 117,700 (421)
Swedish Krona Sell 6/15/11 81,616 83,237 1,621
Royal Bank of Scotland PLC (The)
Canadian Dollar Sell 6/15/11 1,341 1,369 28
Euro Buy 6/15/11 127,096 131,516 (4,420)
Japanese Yen Sell 6/15/11 282,830 283,734 904
Swedish Krona Sell 6/15/11 41,641 42,461 820
State Street Bank and Trust Co.
Canadian Dollar Buy 6/15/11 42,306 43,157 (851)
Euro Buy 6/15/11 40,113 41,534 (1,421)
Swedish Krona Sell 6/15/11 105,219 107,298 2,079
UBS AG
British Pound Buy 6/15/11 18,423 18,710 (287)
Canadian Dollar Buy 6/15/11 65,007 66,304 (1,297)
Euro Buy 6/15/11 95,466 96,222 (756)
Westpac Banking Corp.
British Pound Sell 6/15/11 51,980 52,804 824
Canadian Dollar Buy 6/15/11 34,258 34,953 (695)
Euro Sell 6/15/11 24,154 25,008 854
Japanese Yen Buy 6/15/11 18,220 18,286 (66)
Swedish Krona Sell 6/15/11 43,873 44,767 894
Total $(15,486)












Key to holding's abbreviations
ADR American Depository Receipts
GDR Global 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 September 1, 2010 through May 31, 2011 (the reporting period).
(a) Percentages indicated are based on net assets of $13,556,293.
(b) The aggregate identified cost on a tax basis is $11,746,211, resulting in gross unrealized appreciation and depreciation of $2,400,847 and $410,161, respectively, or net unrealized appreciation of $1,990,686.
(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 $279,295. The fund received cash collateral of $284,750 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 $342 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $5,191,742 and $4,910,397, 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.
(S) Security 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 $20,850 to cover certain derivatives contracts.
144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
ADR and GDR after the name of a foreign holding represents ownership of foreign securities on deposit with a custodian bank.
DIVERSIFICATION BY COUNTRY
Distribution of investments by country of risk at the close of the reporting period (as a percentage of Portfolio Value):
United States 81.7%
Japan 10.0
Sweden 3.6
South Korea 0.8
United Kingdom 0.7
France 0.7
China 0.6
Netherlands 0.6
India 0.5
other 0.8
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. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. 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.
Forward currency contracts: The fund buys and sells 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 hedge foreign exchange risk. 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. The fund had an average contract amount of approximately $2,000,000 on forward currency contracts for the reporting 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 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 $20,093 on derivative contracts subject to the Master Agreements. There was no collateral posted by the fund.












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:
    Consumer discretionary $82,576 $180,376 $—
    Industrials 122,475 — —
    Information technology 11,037,101 1,449,365 —
    Telecommunication services 233,398 — —
Total common stocks 11,475,550 1,629,741 —
Warrants $— $65,511 $—
Short-term investments 281,345 284,750 —
Totals by level $11,756,895 $1,980,002 $—



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3


Forward currency contracts $— $(15,486) $—
Totals by level $— $(15,486) $—


Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Market value Market value
Foreign exchange contracts $14,000 $29,486
Equity contracts 65,511 —
Total $79,511 $29,486




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: During the period, State Street Bank and Trust Company, which provides certain administrative, pricing and bookkeeping services for the Putnam funds pursuant to an agreement with Putnam Investment Management, LLC, began utilizing different accounting systems and systems support in providing services for the fund.

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: July 28, 2011

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: July 28, 2011

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: July 28, 2011




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: August 31, 2011
Date of reporting period: May 31, 2011



Item 1. Schedule of Investments:













Putnam Global Telecommunications Fund

The fund's portfolio
5/31/11 (Unaudited)
COMMON STOCKS (95.5%)(a)
Shares Value
Communications equipment (2.4%)
Qualcomm, Inc. 3,900 $228,501
228,501
Diversified telecommunication services (45.4%)
AT&T, Inc. 44,866 1,415,971
BT Group PLC (United Kingdom) 51,738 171,409
CenturyTel, Inc. 5,300 228,907
Deutsche Telekom AG (Germany) 10,419 155,138
Hutchison Telecommunications Hong Kong Holdings, Ltd. (Hong Kong) 584,000 190,903
Koninklijke (Royal) KPN NV (Netherlands) 17,323 254,592
Swisscom AG (Switzerland) 440 202,570
TDC A/S (Denmark)(NON) 8,021 73,002
Telefonica SA (Spain) 11,940 289,944
Telenet Group Holding NV (Belgium)(NON) 6,543 297,875
Verizon Communications, Inc. 30,118 1,112,258
4,392,569
Internet software and services (1.9%)
Telecity Group PLC (United Kingdom)(NON) 20,231 181,112
181,112
IT Services (0.4%)
InterXion Holding NV (Netherlands)(NON) 2,600 36,686
36,686
Media (16.4%)
Comcast Corp. Class A 14,383 363,027
DIRECTV Class A(NON) 4,200 211,092
Kabel Deutschland Holding AG (Germany)(NON) 5,127 349,987
Time Warner Cable, Inc. 1,700 131,274
Virgin Media, Inc. (United Kingdom) 10,900 355,558
Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA (Portugal) 34,592 170,164
1,581,102
Wireless telecommunication services (29.0%)
M1, Ltd. (Singapore) 99,000 195,018
Mobile Telesystems ADR (Russia) 10,400 210,808
NTT DoCoMo, Inc. (Japan) 271 507,049
Softbank Corp. (Japan) 8,500 330,624
Sprint Nextel Corp.(NON) 35,878 209,886
Vodafone Group PLC (United Kingdom) 483,849 1,347,249
2,800,634
Total Common stocks (cost $7,717,798) $9,220,604

SHORT-TERM INVESTMENTS (5.7%)(a)
Shares Value
Putnam Money Market Liquidity Fund 0.07%(e) 551,118 $551,118
Total Short-term investments (cost $551,118) $551,118

TOTAL INVESTMENTS
Total investments (cost $8,268,916)(b) $9,771,722













FORWARD CURRENCY CONTRACTS at 5/31/11 (aggregate face value $3,703,693) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Bank of America, N.A.
Australian Dollar Buy 6/15/11 $44,074 $45,278 $(1,204)
British Pound Buy 6/15/11 7,073 7,184 (111)
Euro Buy 6/15/11 223,855 231,862 (8,007)
Norwegian Krone Buy 6/15/11 9,007 9,211 (204)
Swedish Krona Buy 6/15/11 11,696 11,935 (239)
Barclays Bank PLC
Australian Dollar Buy 6/15/11 47,587 48,889 (1,302)
British Pound Sell 6/15/11 12,008 12,200 192
Canadian Dollar Buy 6/15/11 13,517 13,796 (279)
Euro Buy 6/15/11 48,883 50,632 (1,749)
Hong Kong Dollar Buy 6/15/11 37,033 37,080 (47)
Japanese Yen Buy 6/15/11 10,644 10,680 (36)
Norwegian Krone Buy 6/15/11 21,221 21,721 (500)
Singapore Dollar Buy 6/15/11 14,024 14,125 (101)
Swedish Krona Buy 6/15/11 20,772 21,193 (421)
Swiss Franc Buy 6/15/11 23,441 22,653 788
Citibank, N.A.
Australian Dollar Sell 6/15/11 66,536 68,334 1,798
British Pound Sell 6/15/11 103,138 104,604 1,466
Danish Krone Sell 6/15/11 72,176 74,824 2,648
Euro Buy 6/15/11 100,066 103,608 (3,542)
Hong Kong Dollar Sell 6/15/11 118,751 118,946 195
Singapore Dollar Sell 6/15/11 31,453 31,691 238
Swedish Krona Buy 6/15/11 12,829 13,085 (256)
Swiss Franc Sell 6/15/11 56,025 55,318 (707)
Credit Suisse AG
British Pound Sell 6/15/11 106,428 108,077 1,649
Canadian Dollar Buy 6/15/11 36,631 36,266 365
Euro Buy 6/15/11 45,145 46,725 (1,580)
Japanese Yen Sell 6/15/11 68,880 69,118 238
Norwegian Krone Buy 6/15/11 32,915 33,671 (756)
Swedish Krona Buy 6/15/11 13,136 13,397 (261)
Deutsche Bank AG
Australian Dollar Buy 6/15/11 16,607 17,063 (456)
Euro Sell 6/15/11 39,682 41,083 1,401
Swedish Krona Buy 6/15/11 61,539 62,773 (1,234)
Goldman Sachs International
British Pound Buy 6/15/11 63,988 64,998 (1,010)
Euro Buy 6/15/11 109,124 112,883 (3,759)
Japanese Yen Buy 6/15/11 295,966 296,821 (855)
Norwegian Krone Buy 6/15/11 10,119 10,347 (228)
Swedish Krona Buy 6/15/11 11,567 11,793 (226)
HSBC Bank USA, National Association
British Pound Sell 6/15/11 19,081 19,384 303
Hong Kong Dollar Sell 6/15/11 26,335 26,367 32
New Zealand Dollar Buy 6/15/11 12,419 11,949 470
Singapore Dollar Buy 6/15/11 17,996 18,123 (127)
JPMorgan Chase Bank, N.A.
Australian Dollar Buy 6/15/11 14,904 15,303 (399)
British Pound Sell 6/15/11 6,251 6,347 96
Canadian Dollar Buy 6/15/11 27,551 28,107 (556)
Euro Buy 6/15/11 38,963 40,310 (1,347)
Hong Kong Dollar Sell 6/15/11 44,132 44,189 57
Japanese Yen Sell 6/15/11 123,703 124,147 444
Singapore Dollar Sell 6/15/11 26,427 26,629 202
Swedish Krona Buy 6/15/11 34,830 35,522 (692)
Swiss Franc Sell 6/15/11 109,588 108,187 (1,401)
Royal Bank of Scotland PLC (The)
Australian Dollar Buy 6/15/11 21,398 21,923 (525)
British Pound Sell 6/15/11 26,155 27,300 1,145
Canadian Dollar Buy 6/15/11 17,748 18,114 (366)
Euro Buy 6/15/11 114,444 118,424 (3,980)
Israeli Shekel Buy 6/15/11 27,521 27,887 (366)
Japanese Yen Buy 6/15/11 19,908 20,237 (329)
Swedish Krona Buy 6/15/11 23,975 24,447 (472)
Swiss Franc Buy 6/15/11 12,658 12,493 165
State Street Bank and Trust Co.
Canadian Dollar Buy 6/15/11 129,601 132,208 (2,607)
Euro Sell 6/15/11 185,899 192,485 6,586
Israeli Shekel Buy 6/15/11 10,735 10,894 (159)
Swedish Krona Buy 6/15/11 17,698 18,048 (350)
UBS AG
British Pound Buy 6/15/11 31,090 31,574 (484)
Canadian Dollar Buy 6/15/11 35,393 36,099 (706)
Euro Buy 6/15/11 78,357 81,642 (3,285)
Israeli Shekel Buy 6/15/11 10,735 10,882 (147)
Norwegian Krone Buy 6/15/11 28,764 29,417 (653)
Swiss Franc Buy 6/15/11 16,760 16,541 219
Westpac Banking Corp.
Australian Dollar Buy 6/15/11 21,292 21,850 (558)
British Pound Buy 6/15/11 41,288 41,942 (654)
Canadian Dollar Buy 6/15/11 56,236 57,377 (1,141)
Euro Buy 6/15/11 103,948 107,626 (3,678)
Japanese Yen Sell 6/15/11 85,548 85,855 307
Total $(33,048)












Key to holding's abbreviations
ADR
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 September 1, 2010 through May 31, 2011 (the reporting period).
(a) Percentages indicated are based on net assets of $9,656,454.
(b) The aggregate identified cost on a tax basis is $8,272,767, resulting in gross unrealized appreciation and depreciation of $1,548,095 and $49,140, respectively, or net unrealized appreciation of $1,498,955.
(NON) Non-income-producing security.
(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 $197 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $2,617,184 and $2,169,459, 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.
At the close of the reporting period, the fund maintained liquid assets totaling $39,818 to cover certain derivatives contracts.
ADR after the name of a foreign holding represents ownership of foreign securities on deposit with a custodian bank.
DIVERSIFICATION BY COUNTRY*
Distribution of investments by country of risk at the close of the reporting period (as a percentage of Portfolio Value):
United States 45.5%
United Kingdom 21.0
Japan 8.6
Germany 5.2
Belgium 3.0
Netherlands 3.0
Spain 3.0
Russia 2.2
Switzerland 2.1
Singapore 2.0
Hong Kong 2.0
Portugal 1.7
Denmark 0.7
Total 100.0%
* Methodology differs from that used for purposes of complying with the fund’s policy regarding investments in securities of foreign issuers, as discussed further in the fund’s prospectus.
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. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. 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.
Forward currency contracts: The fund buys and sells 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 hedge foreign exchange risk. 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. 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 when the contract matures or by delivery of the currency. 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. The fund had an average contract amount of approximately $2,900,000 on forward currency contracts for the reporting 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 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 $39,036 on derivative contracts subject to the Master Agreements. There was no collateral posted by the fund.












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:
Consumer discretionary $1,060,951 $520,151 $—
Information technology 265,187 181,112 —
Telecommunication services 3,177,830 4,015,373 —
Total common stocks 4,503,968 4,716,636 —
Short-term investments 551,118 — —
Totals by level $5,055,086 $4,716,636 $—



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3


Forward currency contracts $— $(33,048) $—
Totals by level $— $(33,048) $—


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 $21,004 $54,052
Total $21,004 $54,052


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: During the period, State Street Bank and Trust Company, which provides certain administrative, pricing and bookkeeping services for the Putnam funds pursuant to an agreement with Putnam Investment Management, LLC, began utilizing different accounting systems and systems support in providing services for the fund.

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: July 28, 2011

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: July 28, 2011

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: July 28, 2011