UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

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: Robert T. Burns, Vice President
One Post Office Square
Boston, Massachusetts 02109

Copy to:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036

Registrant’s telephone number, including area code: (617) 292-1000

Date of fiscal year end: June 30, 2015

Date of reporting period: July 1, 2014 – December 31, 2014

Item 1. Report to Stockholders:

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940:

Putnam
International Value
Fund

Semiannual report
12 | 31 | 14

Message from the Trustees	1
About the fund	2
Performance snapshot	4
Interview with your fund’s portfolio manager	5
Your fund’s performance	11
Your fund’s expenses	13
Terms and definitions	15
Other information for shareholders	16
Financial statements	17

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Value stocks may fail to rebound, and the market may not favor value-style investing. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. You can lose money by investing in the fund.

Message from the Trustees

Dear Fellow Shareholder:

The falling price of oil has captured headlines in recent months and is having a sustained effect on markets and economies worldwide. Cheaper oil allows many consumers and businesses to shift spending to other priorities. At the same time, the decline reflects greater pessimism about global growth, and it is having a negative impact on the energy sector — not just in the United States, but wherever energy is a key export.

This change in the investing environment has contributed to an increase in market volatility. Although the U.S. economy continues to grow, economic challenges in Europe, China, and Japan are causing uncertainty.

Compared with recent years, we may see more tempered returns from equity and fixed-income markets. While a number of positive trends continue, including an improving housing market and a brighter employment situation, investors should also be alert to a possible increase in short-term interest rates that is widely expected to occur in 2015. History suggests that rising rates could generate headwinds for markets.

In all types of market conditions, Putnam offers a wide range of flexible strategies. Our experienced investment teams employ new ways of thinking about building portfolios for both the opportunities and risks in today’s markets. In this dynamic environment, it may be an opportune time for you to meet with your financial advisor to ensure that your portfolio is properly aligned with your goals and tolerance for risk.

As always, thank you for investing with Putnam.

Respectfully yours,

Robert L. Reynolds
President and Chief Executive Officer
Putnam Investments

Jameson A. Baxter
Chair, Board of Trustees

February 11, 2015

Performance
snapshot

Annualized total return (%) comparison as of 12/31/14

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, and you may have a gain or a loss when you sell your shares. Performance of class A shares assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart do not reflect a sales charge of 5.75%; had they, returns would have been lower. See pages 5 and 11–12 for additional performance information. For a portion of the periods, the fund had expense limitations, without which returns would have been lower. To obtain the most recent month-end performance, visit putnam.com.

* Returns for the six-month period are not annualized, but cumulative.

4     International Value Fund

Interview with your fund’s portfolio manager

Darren A. Jaroch, CFA

What was the environment like for international value investing during the six months ended December 31, 2014?

Following the coordinated growth and bullishness of the first six months of 2014, the climate for international value investors became more volatile during the year’s second half. Growth among world economies began to diverge over the summer. Europe stagnated amid low inflation and weak manufacturing, while economic growth in Japan weakened and slowed. Meanwhile, a steady stream of positive data confirmed that the United States led the world in terms of economic growth.

Equity market performance and currency fluctuations mirrored these macroeconomic changes. U.S. equity markets surged, while those in developed and emerging markets faltered. The weak performance of foreign equities was particularly pronounced in dollar terms, as the dollar strengthened considerably against the yen, the euro, and most emerging-market currencies.

In terms of style, investors shifted away from the value preference they had shown earlier in the year and began to favor growth. Equity valuations remained high in many global markets, although I continued to find relative valuation opportunities for the portfolio throughout the period.

In this environment, Putnam International Value Fund modestly underperformed its

Broad market index and fund performance

This comparison shows your fund’s performance in the context of broad market indexes for the six months ended 12/31/14. See pages 4 and 11–12 for additional fund performance information. Index descriptions can be found on page 15.

International Value Fund     5

benchmark, with the portfolio returning –11.78%, compared with the –10.76% return of the MSCI EAFE Value Index [ND].

You mentioned a style shift toward growth over the period. Did this affect fund performance?

Disappointing macroeconomic data in major eurozone markets, as well as in China and Japan, made growth opportunities much harder to find during the period. As is often the case when growth opportunities are rare, investors chased these stocks, showing a clear preference for a smaller group of equities from companies demonstrating earnings growth and favorable forward visibility. This market environment dampened results throughout the value-investing universe, and the fund was no exception. The riskier, lower-quality stocks fared worst, although many of the higher-quality value stocks that had delivered solid portfolio returns earlier in the calendar year also lost favor when investors shifted their sights toward growth. We still believe in the fundamentals and long-term performance potential of these stocks, despite these short-term setbacks.

Which sectors and countries proved most helpful to overall performance?

During the period, the consumer discretionary, consumer staples, and information technology sectors were our top-performing sectors. Within the generally expensive consumer staples sector, out-of-benchmark positions within Anheuser-Busch and Henkel added favorably. Avoiding food retailers in the United Kingdom also helped. Within the consumer discretionary sector, we generated particularly strong returns in the media, travel, real estate, and automotive segments, notably in the United Kingdom and Japan. China was a major source of gains in the technology sector. On a country basis, our stock selection in the United Kingdom,

Global composition

Allocations are shown as a percentage of the fund’s net assets as of 12/31/14. Cash and net other assets, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Summary information may differ from the information in the portfolio schedule notes included in the financial statements due to the inclusion of derivative securities, any interest accruals, and the exclusion of as-of trades, if any. Holdings and allocations may vary over time.

6     International Value Fund

“I am relatively optimistic about value
investing opportunities over the next
six to twelve months.”

Darren Jaroch

Norway, Germany, and out-of-benchmark positions in China were most beneficial to relative performance.

Let’s discuss specific holdings that drove up performance relative to the fund’s benchmark. What specific companies helped the most?

The top two contributors were benchmark underperformers that we did not hold in the portfolio — France’s integrated energy firm Total, and BP, the U.K.-based integrated energy firm. The performance of both stocks plunged along with oil prices. An out-of-benchmark position in Japanese pharmaceutical firm Astellas Pharma was the portfolio’s third main contributor. Astellas has an expensive new prostate cancer drug that apparently achieved better clinical results than did competitive products, and sales have been well ahead of analyst estimates. Bank of Ireland was another important contributor. Ireland’s macroeconomic environment has been steadily improving during the past year or so. As the largest bank in the country, Bank of Ireland has leveraged its position to deliver better-than-expected earnings results while reducing the number of underperforming loans on its balance sheet. Overweights to Tui AG and Alibaba also proved favorable.

Besides the market shift away from value, were there other factors that detracted from the fund’s relative performance?

Although we continued to select high-quality stocks based on individual analysis of their fundamentals, the portfolio maintained a more “pro-cyclical” view over the period, especially in Europe. Accordingly, sectors including industrials and financials were

Top 10 holdings

This table shows the fund’s top 10 holdings by percentage of the fund’s net assets as of 12/31/14. Short-term holdings and derivatives, if any, are excluded. Holdings may vary over time.

International Value Fund     7

well represented. Unfortunately, because economies in the eurozone and elsewhere outside the United States did not pick up as expected, holdings in these cyclical sectors underperformed, dampening relative results. Energy was another trouble spot for the fund this period, as collapsing oil prices drove down returns on energy stocks throughout the world.

What about specific holdings that detracted?

The top two detractors were both out-of-benchmark positions in Canadian energy companies, EnCana and Suncor Energy. Oil price declines hit these firms particularly hard because they are higher-cost producers, making them far more susceptible to falling oil prices than lower-cost Saudi Arabian producers and even shale oil companies in the United States. Elsewhere in energy, an out-of-benchmark position in Australian firm Origin Energy also detracted. Origin has been developing a liquid natural gas project in northeastern Australia over the past ten years, and the value of the project declined substantially along with the price of oil. We believe oil prices will stabilize in coming months, likely as a result of suppliers moderating their output to reflect current levels of demand.

Out-of-benchmark Australian metals and mining firm BHP Billiton dampened relative results as well. An overweight position in French construction firm Vinci also hurt performance as European industrial stocks moved lower. Our stock selection in Japan was also problematic. In financials, we owned a bank with more domestic business rather than owning the outperforming global players in the benchmark. In the consumer discretionary sector, longtime holding Japan Tobacco lagged as Russian currency declines contracted demand from this major customer market, while gaming stock Sega Sammy dropped on news of delays in the passage of legislation that would legalize gaming and

Comparison of top sector shifts

This chart shows the fund’s largest allocation shifts, by percentage, over the past six months. Allocations are shown as a percentage of the fund’s net assets. Current period summary information may differ from the portfolio schedule included in the financial statements due to the inclusion of derivative securities, any interest accruals, the exclusion of as-of trades, if any, and the use of different classifications of securities for presentation purposes. Holdings and allocations may vary over time.

8     International Value Fund

casinos. We no longer hold Sega Sammy in the portfolio.

What is your outlook for the international markets and the fund as we head into 2015?

I am relatively optimistic about value investing opportunities over the next six to twelve months, although I also believe that market volatility, currency fluctuations, and periods of underperformance are likely to continue for some time as major international countries pursue disparate monetary policies. Slower economic growth in the eurozone and Japan has already prompted central bankers in both regions to announce or initiate plans to loosen money supplies in an effort to stimulate growth. At the same time, the United States and the United Kingdom have adopted more of a tightening bias, declaring intentions to raise interest rates in 2015. Uncertainty surrounding interest-rate changes has traditionally led to equity market volatility, especially when stock valuations are relatively high as they are today.

At this point, the United States has taken over as the driver of global growth, while emerging markets including China, Brazil, and Russia continue to lag. Most other non-U.S. economies are also exhibiting softness, or at least a slower pace of expansion than the United States. Accordingly, our expectation for growth in these non-U.S. markets has become more muted.

Meanwhile, investor appetite for an increasingly narrow group of growth and momentum stocks continues to leave value stocks behind. In this environment, we believe fundamental stock selection, especially in the non-U.S. arena, will become even more important. With volatility likely to generate clear winners and losers in the coming months, along with widening spreads — the difference in return — between the most and least expensive stocks, relative valuation opportunities should reemerge, in our view. In fact, toward the end of the recent period, we began to take advantage of market dislocations and mispricings to add what we believe are attractively priced stocks to the portfolio.

Thank you, Darren, for your time and insights today.

The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice.

Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

Portfolio Manager Darren A. Jaroch has a B.A. from Hartwick College. He joined Putnam in 1999 and has been in the investment industry since 1996.

International Value Fund     9

IN THE NEWS

Citing deteriorating economic conditions in the eurozone and emerging markets, the World Bank recently reduced its outlook for global economic growth. The Washington-based institution expects the global growth rate to rise moderately, by 3.0% in 2015, below its earlier forecast of 3.4%. World Bank economists see plummeting oil prices, down more than 50% since June 2014, as having a mixed effect around the world. For the United States, the drop in oil prices has boosted consumer spending. As such, the bank increased its U.S. growth estimate by 0.2%, to 3.2%. Meanwhile, the bank’s economists noted that the oil price plunge was failing to generate growth in Europe and Japan, while moving major oil-exporting countries toward recession.

10     International Value Fund

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended December 31, 2014, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include expense information taken from the fund’s current prospectus. Performance should always be considered in light of a fund’s investment strategy. Data represent past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance information does not reflect any deduction for taxes a shareholder may owe on fund distributions or on the redemption of fund shares. For the most recent month-end performance, please visit the Individual Investors section at putnam.com or call Putnam at 1-800-225-1581. Class R, R5, R6, and Y shares are not available to all investors. See the Terms and Definitions section in this report for definitions of the share classes offered by your fund.

Fund performance Total return for periods ended 12/31/14

	Class A		Class B		Class C		Class M		Class R	Class R5	Class R6	Class Y
(inception dates)	(8/1/96)		(8/1/96)		(2/1/99)		(8/1/96)		(12/1/03)	(12/2/13)	(12/2/13)	(10/2/00)
	Before sales charge	After sales charge	Before CDSC	After CDSC	Before CDSC	After CDSC	Before sales charge	After sales charge	Net asset value	Net asset value	Net asset value	Net asset value
Annual average
(life of fund)	5.66%	5.32%	5.30%	5.30%	4.88%	4.88%	5.13%	4.92%	5.39%	5.89%	5.89%	5.88%
10 years	32.38	24.77	24.58	24.58	22.88	22.88	25.89	21.48	29.17	36.01	36.03	35.87
Annual average	2.84	2.24	2.22	2.22	2.08	2.08	2.33	1.97	2.59	3.12	3.12	3.11
5 years	24.03	16.90	19.48	17.48	19.52	19.52	21.04	16.80	22.50	25.83	25.85	25.70
Annual average	4.40	3.17	3.62	3.27	3.63	3.63	3.89	3.15	4.14	4.70	4.71	4.68
3 years	33.69	26.00	30.77	27.77	30.87	30.87	31.74	27.13	32.76	34.83	34.86	34.69
Annual average	10.16	8.01	9.35	8.51	9.38	9.38	9.62	8.33	9.91	10.47	10.48	10.44
1 year	–9.83	–15.02	–10.50	–14.93	–10.49	–11.37	–10.33	–13.46	–10.09	–9.48	–9.47	–9.55
6 months	–11.78	–16.86	–12.08	–16.43	–12.07	–12.94	–11.97	–15.05	–11.91	–11.51	–11.64	–11.59

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After-sales-charge returns for class A and M shares reflect the deduction of the maximum 5.75% and 3.50% sales charge, respectively, levied at the time of purchase. Class B share returns after contingent deferred sales charge (CDSC) reflect the applicable CDSC, which is 5% in the first year, declining over time to 1% in the sixth year, and is eliminated thereafter. Class C share returns after CDSC reflect a 1% CDSC for the first year that is eliminated thereafter. Class R, R5, R6, and Y shares have no initial sales charge or CDSC. Performance for class C, R, and Y shares before their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares, except for class Y shares, for which 12b-1 fees are not applicable. Performance for class R5 and R6 shares prior to their inception is derived from the historical performance of class Y shares and has not been adjusted for the lower investor servicing fees applicable to class R5 and R6 shares; had it, returns would have been higher.

For a portion of the periods, the fund had expense limitations, without which returns would have been lower.

Class B share performance reflects conversion to class A shares after eight years.

International Value Fund     11

Comparative index returns For periods ended 12/31/14

	MSCI EAFE Value Index (ND)	Lipper International Large-Cap Value Funds category average*
Annual average (life of fund)	5.65%	6.09%
10 years	46.46	55.58
Annual average	3.89	4.39
5 years	24.14	20.67
Annual average	4.42	3.81
3 years	36.89	28.67
Annual average	11.04	8.74
1 year	–5.39	–7.17
6 months	–10.76	–10.54

Index and Lipper results should be compared with fund performance before sales charge, before CDSC, or at net asset value.

* Over the 6-month, 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 12/31/14, there were 77, 71, 65, 61, 21, and 11 funds, respectively, in this Lipper category.

Fund price and distribution information For the six-month period ended 12/31/14

Distributions	Class A		Class B	Class C	Class M		Class R	Class R5	Class R6	Class Y
Number	1		1	1	1		1	1	1	1
Income	$0.209		$0.105	$0.127	$0.146		$0.185	$0.247	$0.259	$0.241
Capital gains	—		—	—	—		—	—	—	—
Total	$0.209		$0.105	$0.127	$0.146		$0.185	$0.247	$0.259	$0.241
Share value	Before sales charge	After sales charge	Net asset value	Net asset value	Before sales charge	After sales charge	Net asset value	Net asset value	Net asset value	Net asset value
6/30/14	$12.00	$12.73	$11.89	$11.89	$12.00	$12.44	$11.82	$12.05	$12.07	$12.02
12/31/14	10.38	11.01	10.35	10.33	10.42	10.80	10.23	10.42	10.41	10.39

The classification of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate for class A and M shares, if applicable, do not take into account any sales charge levied at the time of purchase. After-sales-charge share value, current dividend rate, and current 30-day SEC yield, if applicable, are calculated assuming that the maximum sales charge (5.75% for class A shares and 3.50% for class M shares) was levied at the time of purchase. Final distribution information will appear on your year-end tax forms.

12     International Value Fund

Your fund’s expenses

As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. Using the following information, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You may also pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial representative.

Expense ratios

	Class A	Class B	Class C	Class M	Class R	Class R5	Class R6	Class Y
Total annual operating expenses for the fiscal year ended 6/30/14	1.34%	2.09%	2.09%	1.84%	1.59%	1.01%†	0.91%†	1.09%
Annualized expense ratio for the six-month period ended 12/31/14*	1.27%	2.02%	2.02%	1.77%	1.52%	0.97%	0.87%	1.02%

Fiscal-year expense information in this table is taken from the most recent prospectus, is subject to change, and may differ from that shown for the annualized expense ratio and in the financial highlights of this report.

Expenses are shown as a percentage of average net assets.

* Includes a decrease of 0.02% from annualizing the performance fee adjustment for the six months ended 12/31/14.

† Other expenses shown for class R5 and class R6 shares have been annualized.

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in the fund from July 1, 2014, to December 31, 2014. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

	Class A	Class B	Class C	Class M	Class R	Class R5	Class R6	Class Y
Expenses paid per $1,000*†	$6.03	$9.57	$9.57	$8.39	$7.21	$4.61	$4.13	$4.84
Ending value (after expenses)	$882.20	$879.20	$879.30	$880.30	$880.90	$884.90	$883.60	$884.10

* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 12/31/14. The expense ratio may differ for each share class.

† Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period; and then dividing that result by the number of days in the year.

International Value Fund     13

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended December 31, 2014, use the following calculation method. To find the value of your investment on July 1, 2014, call Putnam at 1-800-225-1581.

Compare expenses using the SEC’s method

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the following table shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

	Class A	Class B	Class C	Class M	Class R	Class R5	Class R6	Class Y
Expenses paid per $1,000*†	$6.46	$10.26	$10.26	$9.00	$7.73	$4.94	$4.43	$5.19
Ending value (after expenses)	$1,018.80	$1,015.02	$1,015.02	$1,016.28	$1,017.54	$1,020.32	$1,020.82	$1,020.06

* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 12/31/14. The expense ratio may differ for each share class.

† Expenses are calculated by multiplying the expense ratio by the average account value for the six-month period; then multiplying the result by the number of days in the six-month period; and then dividing that result by the number of days in the year.

14     International Value Fund

Terms and definitions

Important terms

Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.

Before sales charge, or net asset value, is the price, or value, of one share of a mutual fund, without a sales charge. Before-sales-charge figures fluctuate with market conditions, and are calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

After sales charge is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. After-sales-charge performance figures shown here assume the 5.75% maximum sales charge for class A shares and 3.50% for class M shares.

Contingent deferred sales charge (CDSC) is generally a charge applied at the time of the redemption of class B or C shares and assumes redemption at the end of the period. Your fund’s class B CDSC declines over time from a 5% maximum during the first year to 1% during the sixth year. After the sixth year, the CDSC no longer applies. The CDSC for class C shares is 1% for one year after purchase.

Share classes

Class A shares are generally subject to an initial sales charge and no CDSC (except on certain redemptions of shares bought without an initial sales charge).

Class B shares are not subject to an initial sales charge and may be subject to a CDSC.

Class C shares are not subject to an initial sales charge and are subject to a CDSC only if the shares are redeemed during the first year.

Class M shares have a lower initial sales charge and a higher 12b-1 fee than class A shares and no CDSC (except on certain redemptions of shares bought without an initial sales charge).

Class R shares are not subject to an initial sales charge or CDSC and are available only to certain employer-sponsored retirement plans.

Class R5 and R6 shares are not subject to an initial sales charge or CDSC, and carry no 12b-1 fee. They are only available to employer-sponsored retirement plans.

Class Y shares are not subject to an initial sales charge or CDSC, and carry no 12b-1 fee. They are generally only available to corporate and institutional clients and clients in other approved programs.

Comparative indexes

Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.

BofA Merrill Lynch U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

MSCI EAFE Value Index (ND) is an unmanaged index which measures the performance of equity securities representing the value style in countries within Europe, Australasia, and the Far East.

S&P 500 Index is an unmanaged index of common stock performance.

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

Lipper is a third-party industry-ranking entity that ranks mutual funds. Its rankings do not reflect sales charges. Lipper rankings are based on total return at net asset value relative to other funds that have similar current investment styles or objectives as determined by Lipper. Lipper may change a fund’s category assignment at its discretion. Lipper category averages reflect performance trends for funds within a category.

International Value Fund     15

Other information for shareholders

Important notice regarding delivery of shareholder documents

In accordance with Securities and Exchange Commission (SEC) regulations, Putnam sends a single copy of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2014, are available in the Individual Investors section of putnam.com, and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain the fund’s Form N-Q on the SEC’s website at www.sec.gov. In addition, the fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC’s website or the operation of the Public Reference Room.

Trustee and employee fund ownership

Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of December 31, 2014, Putnam employees had approximately $483,000,000 and the Trustees had approximately $140,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.

16     International Value Fund

Financial statements

A guide to financial statements

These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.

International Value Fund     17

The fund’s portfolio 12/31/14 (Unaudited)

COMMON STOCKS (97.0%)*	Shares	Value
Aerospace and defense (1.7%)
Airbus Group NV (France)	36,100	$1,792,986
BAE Systems PLC (United Kingdom)	200,569	1,464,160
		3,257,146
Air freight and logistics (2.0%)
Deutsche Post AG (Germany)	114,948	3,760,942
		3,760,942
Airlines (0.9%)
Japan Airlines Co., Ltd. (Japan) UR	56,200	1,641,635
		1,641,635
Automobiles (4.7%)
Daimler AG (Registered Shares) (Germany)	35,586	2,968,962
Nissan Motor Co., Ltd. (Japan)	334,600	2,914,447
Toyota Motor Corp. (Japan)	46,300	2,887,294
		8,770,703
Banks (15.8%)
Banco Bilbao Vizcaya Argentaria SA (Spain)	132,526	1,247,271
Bank of Ireland (Ireland) †	4,682,538	1,745,892
Bank of Queensland, Ltd. (Australia)	294,865	2,913,873
Barclays PLC (United Kingdom)	113,244	425,741
DNB ASA (Norway)	133,790	1,972,649
Erste Group Bank AG (Czech Republic)	32,651	748,570
HSBC Holdings PLC (United Kingdom)	373,625	3,530,937
ING Groep NV GDR (Netherlands) †	416,442	5,391,929
Lloyds Banking Group PLC (United Kingdom) †	1,074,902	1,269,316
Metro Bank PLC (acquired 1/15/14, cost $235,131) (Private) (United Kingdom) † ΔΔ F	30,891	640,954
Mizuho Financial Group, Inc. (Japan)	784,500	1,318,194
Natixis SA (France)	196,210	1,290,244
Sumitomo Mitsui Financial Group, Inc. (Japan)	102,100	3,689,129
TSB Banking Group PLC (United Kingdom) † S	256,548	1,109,045
United Overseas Bank, Ltd. (Singapore)	85,000	1,571,468
Virgin Money Holdings UK PLC (United Kingdom) †	121,306	544,515
		29,409,727
Beverages (1.0%)
Anheuser-Busch InBev NV (Belgium)	15,776	1,775,332
		1,775,332
Building products (0.6%)
Compagnie De Saint-Gobain (France)	27,623	1,162,908
		1,162,908
Capital markets (1.0%)
UBS Group AG (Switzerland)	111,506	1,916,755
		1,916,755
Communications equipment (0.8%)
Alcatel-Lucent (France) † S	414,949	1,473,142
		1,473,142
Construction and engineering (1.4%)
Vinci SA (France)	47,405	2,594,034
		2,594,034
Construction materials (0.5%)
CRH PLC (Ireland)	39,655	954,071
		954,071

18     International Value Fund

COMMON STOCKS (97.0%)* cont.	Shares	Value
Diversified financial services (1.8%)
Challenger, Ltd. (Australia)	415,568	$2,189,222
Eurazeo SA (France)	16,844	1,176,582
		3,365,804
Diversified telecommunication services (3.9%)
Com Hem Holding AB (Sweden) †	87,189	700,102
Nippon Telegraph & Telephone (NTT) Corp. (Japan)	16,600	854,203
Spark New Zealand, Ltd. (New Zealand)	704,341	1,706,557
Telecom Italia SpA RSP (Italy)	1,476,691	1,234,270
Telstra Corp., Ltd. (Australia)	302,500	1,469,002
Vivendi SA (France)	56,216	1,402,317
		7,366,451
Electronic equipment, instruments, and components (0.6%)
Hitachi, Ltd. (Japan)	154,000	1,126,858
		1,126,858
Food and staples retail (0.8%)
Seven & i Holdings Co., Ltd. (Japan)	30,000	1,082,122
WM Morrison Supermarkets PLC (United Kingdom)	147,320	419,268
		1,501,390
Food products (2.1%)
Kerry Group PLC Class A (Ireland)	28,173	1,943,827
Nestle SA (Switzerland)	27,420	2,009,928
		3,953,755
Gas utilities (1.3%)
Tokyo Gas Co., Ltd. (Japan)	436,000	2,352,727
		2,352,727
Hotels, restaurants, and leisure (1.5%)
TUI AG (Germany) †	171,302	2,752,682
		2,752,682
Household durables (2.1%)
Panasonic Corp. (Japan)	199,500	2,343,860
Skyworth Digital Holdings, Ltd. (China)	2,722,000	1,474,152
		3,818,012
Household products (1.2%)
Henkel AG & Co. KGaA (Preference) (Germany)	20,299	2,195,835
		2,195,835
Industrial conglomerates (3.3%)
Siemens AG (Germany)	31,451	3,566,865
Toshiba Corp. (Japan)	594,000	2,515,232
		6,082,097
Insurance (8.2%)
ACE, Ltd.	17,586	2,020,280
Admiral Group PLC (United Kingdom)	25,572	523,680
AIA Group, Ltd. (Hong Kong)	366,000	2,015,365
Allianz SE (Germany)	8,229	1,367,279
AXA SA (France)	110,787	2,558,796
Intact Financial Corp. (Canada)	22,900	1,652,750
Prudential PLC (United Kingdom)	158,776	3,653,778
SCOR SE (France)	52,242	1,580,987
		15,372,915
Internet software and services (0.4%)
Alibaba Group Holding, Ltd. ADR (China) †	7,824	813,227
		813,227

International Value Fund     19

COMMON STOCKS (97.0%)* cont.	Shares	Value
Media (3.0%)
Atresmedia Corporacion de Medios de Comunicacion SA (Spain)	65,674	$923,705
Liberty Global PLC Ser. C (United Kingdom)	39,000	1,884,090
WPP PLC (United Kingdom)	136,157	2,824,740
		5,632,535
Metals and mining (1.8%)
BHP Billiton, Ltd. (Australia)	57,568	1,366,006
Fortescue Metals Group, Ltd. (Australia)	251,465	554,150
Glencore Xstrata PLC (United Kingdom)	311,879	1,435,500
		3,355,656
Multi-utilities (2.0%)
Centrica PLC (United Kingdom)	503,673	2,167,788
Veolia Environnement SA (France)	90,096	1,599,973
		3,767,761
Oil, gas, and consumable fuels (9.1%)
BG Group PLC (United Kingdom)	53,035	705,935
EnCana Corp. (Canada)	140,700	1,958,271
Genel Energy PLC (United Kingdom) †	113,974	1,219,973
Origin Energy, Ltd. (Australia)	132,435	1,249,797
Royal Dutch Shell PLC Class A (United Kingdom)	253,931	8,493,296
Suncor Energy, Inc. (Canada)	103,300	3,280,918
		16,908,190
Personal products (0.7%)
Asaleo Care, Ltd. (Australia) †	987,109	1,327,940
		1,327,940
Pharmaceuticals (9.1%)
Astellas Pharma, Inc. (Japan)	236,400	3,290,123
AstraZeneca PLC (United Kingdom)	44,817	3,152,681
Bayer AG (Germany)	18,030	2,464,871
GlaxoSmithKline PLC (United Kingdom)	77,751	1,663,487
Sanofi (France)	71,290	6,497,080
		17,068,242
Professional services (0.3%)
Recruit Holdings Co., Ltd. (Japan) †	21,700	614,359
		614,359
Real estate investment trusts (REITs) (1.8%)
Hibernia REIT PLC (Ireland) †	2,104,553	2,755,918
Shopping Centres Australasia Property Group (Australia)	443,396	669,175
		3,425,093
Real estate management and development (2.3%)
Hongkong Land Holdings, Ltd. (Hong Kong)	195,000	1,312,486
Mitsui Fudosan Co., Ltd. (Japan)	66,000	1,775,104
Sumitomo Realty & Development Co., Ltd. (Japan)	36,000	1,226,352
		4,313,942
Specialty retail (0.7%)
Kingfisher PLC (United Kingdom)	249,956	1,317,171
		1,317,171
Technology hardware, storage, and peripherals (1.8%)
Konica Minolta Holdings, Inc. (Japan)	107,500	1,159,556
Samsung Electronics Co., Ltd. (South Korea)	1,780	2,139,653
		3,299,209
Tobacco (2.2%)
Japan Tobacco, Inc. (Japan)	110,700	3,039,610
Philip Morris International, Inc.	12,500	1,018,125
		4,057,735

20     International Value Fund

COMMON STOCKS (97.0%)* cont.	Shares	Value
Trading companies and distributors (1.7%)
ITOCHU Corp. (Japan)	95,500	$1,021,054
Mitsubishi Corp. (Japan)	118,000	2,164,105
		3,185,159
Transportation infrastructure (0.5%)
Sumitomo Warehouse Co., Ltd. (The) (Japan)	167,000	897,005
		897,005
Wireless telecommunication services (2.4%)
SoftBank Corp. (Japan)	14,800	880,781
Vodafone Group PLC (United Kingdom)	1,047,125	3,587,933
		4,468,714
Total common stocks (cost $171,859,324)		$181,056,859

U.S. TREASURY OBLIGATIONS (0.1%)*	Principal amount	Value
U.S. Treasury Notes
1.750%, September 30, 2019 i	$111,000	$112,098
0.875%, September 15, 2016 i	90,000	90,680
Total U.S. treasury obligations (cost $202,778)		$202,778

SHORT-TERM INVESTMENTS (4.5%)*	Principal amount/shares	Value
Putnam Cash Collateral Pool, LLC 0.20% d	Shares 2,481,233	$2,481,233
Putnam Short Term Investment Fund 0.10% L	Shares 3,538,991	3,538,991
SSgA Prime Money Market Fund Class N 0.04% P	Shares 229,000	229,000
U.S. Treasury Bills with an effective yield of 0.03%, April 9, 2015 Δ	$150,000	149,989
U.S. Treasury Bills with an effective yield of zero %, February 19, 2015 Δ	210,000	210,000
U.S. Treasury Bills with effective yields ranging from 0.01% to 0.02%, February 5, 2015 Δ	194,000	193,997
U.S. Treasury Bills with effective yields ranging from 0.01% to 0.02%, January 15, 2015 Δ	268,000	267,999
U.S. Treasury Bills with an effective yield of 0.01%, January 22, 2015	501,000	500,997
U.S. Treasury Bills with an effective yield of zero %, January 29, 2015 Δ	643,000	643,000
U.S. Treasury Bills with an effective yield of 0.01%, January 8, 2015 Δ	238,000	238,000
Total short-term investments (cost $8,453,203)		$8,453,206

TOTAL INVESTMENTS
Total investments (cost $180,515,305)	$189,712,843

Key to holding’s abbreviations
ADR	American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
GDR	Global Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank

International Value Fund     21

	Notes to the fund’s portfolio
	Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which ran from July 1, 2014 through December 31, 2014 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to “OTC”, if any, represent over-the-counter.
*	Percentages indicated are based on net assets of $186,726,404.
†	Non-income-producing security.
ΔΔ	Security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $640,954, or 3.4% of net assets.
Δ	This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period.
d	Affiliated company. See Note 1 to the financial statements regarding securities lending. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
F	Security is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for 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 (Note 1).
i	Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts (Note 1).
L	Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
P	Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period (Note 1).
S	Security on loan, in part or in entirety, at the close of the reporting period (Note 1).
UR	At the reporting period end, 7,200 shares owned by the fund were not formally entered on the company’s shareholder register, due to local restrictions on foreign ownership. While the fund has full title to these unregistered shares, these shares do not carry voting rights.
	At the close of the reporting period, the fund maintained liquid assets totaling $1,457,588 to cover certain derivatives contracts.

DIVERSIFICATION BY COUNTRY

Distribution of investments by country of risk at the close of the reporting period, excluding collateral received, if any (as a percentage of Portfolio Value):

United Kingdom	22.5%
Japan	20.8
France	12.4
Germany	10.2
Australia	6.3
United States	4.7
Ireland	4.0
Canada	3.7
Netherlands	2.9
Switzerland	2.1
Hong Kong	1.8
China	1.2
Spain	1.2
South Korea	1.1
Norway	1.1
Belgium	1.0
New Zealand	0.9
Singapore	0.8
Italy	0.7
Other	0.6
Total	100.0%

22     International Value Fund

FORWARD CURRENCY CONTRACTS at 12/31/14 (aggregate face value $108,135,035) (Unaudited)
Counterparty	Currency	Contract type	Delivery date	Value	Aggregate face value	Unrealized appreciation/ (depreciation)
Bank of America N.A.
	Australian Dollar	Buy	1/21/15	$6,767,086	$7,204,430	$(437,344)
Barclays Bank PLC
	Canadian Dollar	Sell	1/21/15	1,823,928	1,893,918	69,990
	Hong Kong Dollar	Buy	2/13/15	3,163,690	3,163,902	(212)
	Japanese Yen	Buy	2/13/15	414,320	438,106	(23,786)
	Singapore Dollar	Buy	2/13/15	1,880,585	1,933,453	(52,868)
	Swiss Franc	Buy	3/18/15	1,316,074	1,358,132	(42,058)
Citibank, N.A.
	British Pound	Buy	3/18/15	1,137,745	1,149,119	(11,374)
	Canadian Dollar	Buy	1/21/15	600,204	625,130	(24,926)
	Canadian Dollar	Sell	1/21/15	600,204	622,680	22,476
	Danish Krone	Buy	3/18/15	715,550	738,927	(23,377)
	Euro	Sell	3/18/15	10,379,529	10,715,639	336,110
	Japanese Yen	Buy	2/13/15	533,820	542,962	(9,142)
Credit Suisse International
	Australian Dollar	Sell	1/21/15	2,007,962	2,134,477	126,515
	British Pound	Sell	3/18/15	2,993,124	3,023,505	30,381
	Canadian Dollar	Sell	1/21/15	660,258	658,373	(1,885)
	Euro	Buy	3/18/15	4,555,339	4,703,246	(147,907)
	Japanese Yen	Buy	2/13/15	3,467,501	3,675,418	(207,917)
	Norwegian Krone	Buy	3/18/15	1,817,617	1,955,166	(137,549)
	Swedish Krona	Buy	3/18/15	2,507,605	2,635,178	(127,573)
	Swiss Franc	Buy	3/18/15	1,920,982	1,982,195	(61,213)
Deutsche Bank AG
	British Pound	Buy	3/18/15	114,958	125,768	(10,810)
	Canadian Dollar	Sell	1/21/15	798,178	827,867	29,689
	Euro	Buy	3/18/15	4,031,526	4,141,040	(109,514)
Goldman Sachs International
	Japanese Yen	Buy	2/13/15	3,178,707	3,347,225	(168,518)
HSBC Bank USA, National Association
	Australian Dollar	Sell	1/21/15	437,488	499,634	62,146
	British Pound	Buy	3/18/15	648,160	654,650	(6,490)
	Canadian Dollar	Sell	1/21/15	2,022,418	2,097,215	74,797
	Euro	Sell	3/18/15	504,682	550,797	46,115
JPMorgan Chase Bank N.A.
	British Pound	Buy	3/18/15	6,511,506	6,578,339	(66,833)
	Canadian Dollar	Sell	1/21/15	373,321	427,679	54,358
	Euro	Sell	3/18/15	720,698	704,625	(16,073)
	New Zealand Dollar	Sell	1/21/15	1,303,179	1,288,689	(14,490)
	Norwegian Krone	Sell	3/18/15	1,264,639	1,360,437	95,798
	Singapore Dollar	Sell	2/13/15	568,233	542,997	(25,236)
	Swedish Krona	Buy	3/18/15	1,695,081	1,781,245	(86,164)
	Swiss Franc	Buy	3/18/15	3,154,367	3,255,309	(100,942)

International Value Fund     23

FORWARD CURRENCY CONTRACTS at 12/31/14 (aggregate face value $108,135,035) (Unaudited) cont.
Counterparty	Currency	Contract type	Delivery date	Value	Aggregate face value	Unrealized appreciation/ (depreciation)
State Street Bank and Trust Co.
	Australian Dollar	Sell	1/21/15	$2,125,060	$2,259,167	$134,107
	Canadian Dollar	Buy	1/21/15	698,374	722,804	(24,430)
	Canadian Dollar	Sell	1/21/15	698,374	727,393	29,019
	Euro	Buy	3/18/15	246,771	254,771	(8,000)
	Hong Kong Dollar	Sell	2/13/15	493,185	493,281	96
	Israeli Shekel	Buy	1/21/15	905,513	969,251	(63,738)
	Swiss Franc	Sell	3/18/15	3,814,670	3,931,903	117,233
UBS AG
	British Pound	Buy	3/18/15	821,843	801,090	20,753
	Canadian Dollar	Sell	1/21/15	131,381	136,588	5,207
	Euro	Sell	3/18/15	589,200	605,545	16,345
	Swiss Franc	Buy	3/18/15	1,257,962	1,298,178	(40,216)
WestPac Banking Corp.
	Australian Dollar	Buy	1/21/15	1,008,303	1,071,687	(63,384)
	British Pound	Sell	3/18/15	3,469,936	3,504,701	34,765
	Canadian Dollar	Sell	1/21/15	1,004,240	1,041,459	37,219
	Euro	Buy	3/18/15	3,530,113	3,644,923	(114,810)
	Japanese Yen	Sell	2/13/15	6,966,802	7,334,822	368,020
Total						$(517,640)

24     International Value 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	$4,636,772	$17,654,331	$—
Consumer staples	1,018,125	13,793,862	—
Energy	5,239,189	11,669,001	—
Financials	6,134,300	51,028,982	640,954
Health care	—	17,068,242	—
Industrials	—	23,195,285	—
Information technology	813,227	5,899,209	—
Materials	—	4,309,727	—
Telecommunication services	—	11,835,165	—
Utilities	—	6,120,488	—
Total common stocks	17,841,613	162,574,292	640,954
U.S. treasury obligations	$—	$202,778	$—
Short-term investments	3,767,991	4,685,215	—
Totals by level	$21,609,604	$167,462,285	$640,954

		Valuation inputs
	Other financial instruments:	Level 1	Level 2	Level 3
	Forward currency contracts	$—	$(517,640)	$—
	Totals by level	$—	$(517,640)	$—
* Common stock classifications are presented at the sector level, which may differ from the fund’s portfolio presentation.
	During the reporting period, transfers within the fair value hierarchy, if any, (other than certain transfers involving non-U.S. equity securities as described in Note 1) did not represent, in the aggregate, more than 1% of the fund’s net assets measured as of the end of the period.
	At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund’s net assets and were not considered a significant portion of the fund’s portfolio.

The accompanying notes are an integral part of these financial statements.

International Value Fund     25

Statement of assets and liabilities 12/31/14 (Unaudited)
ASSETS
Investment in securities, at value, including $2,344,442 of securities on loan (Note 1):
Unaffiliated issuers (identified cost $174,495,081)	$183,692,619
Affiliated issuers (identified cost $6,020,224) (Notes 1 and 5)	6,020,224
Cash	18,009
Foreign currency (cost $16,427) (Note 1)	16,426
Dividends, interest and other receivables	297,277
Receivable for shares of the fund sold	122,106
Receivable for investments sold	564,653
Unrealized appreciation on forward currency contracts (Note 1)	1,711,139
Foreign tax reclaim	69,852
Prepaid assets	57,075
Total assets	192,569,380
LIABILITIES
Payable for investments purchased	12,964
Payable for shares of the fund repurchased	194,345
Payable for compensation of Manager (Note 2)	106,971
Payable for custodian fees (Note 2)	9,665
Payable for investor servicing fees (Note 2)	26,154
Payable for Trustee compensation and expenses (Note 2)	150,523
Payable for administrative services (Note 2)	1,262
Payable for distribution fees (Note 2)	122,519
Distributions payable to shareholders	893
Unrealized depreciation on forward currency contracts (Note 1)	2,228,779
Collateral on securities loaned, at value (Note 1)	2,481,233
Collateral on certain derivative contracts, at value (Note 1)	431,778
Other accrued expenses	75,890
Total liabilities	5,842,976
Net assets	$186,726,404
REPRESENTED BY
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)	$460,765,603
Undistributed net investment income (Note 1)	821,007
Accumulated net realized loss on investments and foreign currency transactions (Note 1)	(283,531,468)
Net unrealized appreciation of investments and assets and liabilities in foreign currencies	8,671,262
Total — Representing net assets applicable to capital shares outstanding	$186,726,404
(Continued on next page)

The accompanying notes are an integral part of these financial statements.

26     International Value Fund

	Statement of assets and liabilities (Continued)
	COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
	Net asset value and redemption price per class A share ($159,760,611 divided by 15,389,283 shares)	$10.38
	Offering price per class A share (100/94.25 of $10.38)*	$11.01
	Net asset value and offering price per class B share ($5,255,519 divided by 507,766 shares)**	$10.35
	Net asset value and offering price per class C share ($8,716,911 divided by 844,096 shares)**	$10.33
	Net asset value and redemption price per class M share ($2,790,141 divided by 267,762 shares)	$10.42
	Offering price per class M share (100/96.50 of $10.42)*	$10.80
	Net asset value, offering price and redemption price per class R share ($2,423,529 divided by 236,900 shares)	$10.23
	Net asset value, offering price and redemption price per class R5 share ($9,313 divided by 894 shares)	$10.42
	Net asset value, offering price and redemption price per class R6 share ($3,259,775 divided by 313,050 shares)	$10.41
	Net asset value, offering price and redemption price per class Y share ($4,510,605 divided by 434,285 shares)	$10.39
*	On single retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.
**	Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

The accompanying notes are an integral part of these financial statements.

International Value Fund     27

Statement of operations Six months ended 12/31/14 (Unaudited)
INVESTMENT INCOME
Dividends (net of foreign tax of $163,906)	$2,114,175
Interest (including interest income of $1,345 from investments in affiliated issuers) (Note 5)	1,481
Securities lending (Note 1)	25,068
Total investment income	2,140,724
EXPENSES
Compensation of Manager (Note 2)	693,127
Investor servicing fees (Note 2)	202,600
Custodian fees (Note 2)	20,749
Trustee compensation and expenses (Note 2)	1,723
Distribution fees (Note 2)	318,145
Administrative services (Note 2)	2,951
Other	137,372
Total expenses	1,376,667
Expense reduction (Note 2)	(4,501)
Net expenses	1,372,166
Net investment income	768,558
Net realized gain on investments (Notes 1 and 3)	823,893
Net realized loss on foreign currency transactions (Note 1)	(1,391,490)
Net unrealized depreciation of assets and liabilities in foreign currencies during the period	(426,553)
Net unrealized depreciation of investments during the period	(25,668,054)
Net loss on investments	(26,662,204)
Net decrease in net assets resulting from operations	$(25,893,646)

The accompanying notes are an integral part of these financial statements.

28     International Value Fund

	Statement of changes in net assets
	INCREASE (DECREASE) IN NET ASSETS	Six months ended 12/31/14*	Year ended 6/30/14
	Operations:
	Net investment income	$768,558	$2,639,591
	Net realized gain (loss) on investments and foreign currency transactions	(567,597)	22,581,166
	Net unrealized appreciation (depreciation) of investments and assets and liabilities in foreign currencies	(26,094,607)	15,768,230
	Net increase (decrease) in net assets resulting from operations	(25,893,646)	40,988,987
	Distributions to shareholders (Note 1):
	From ordinary income
	Net investment income
	Class A	(3,167,014)	(2,552,422)
	Class B	(52,774)	(43,405)
	Class C	(106,559)	(64,399)
	Class M	(39,200)	(31,240)
	Class R	(43,261)	(28,883)
	Class R5	(216)	(135)
	Class R6	(79,384)	(135)
	Class Y	(102,654)	(124,792)
	Increase in capital from settlement payments	—	24,743
	Decrease from capital share transactions (Note 4)	(8,703,796)	(14,193,523)
	Total increase (decrease) in net assets	(38,188,504)	23,974,796
	NET ASSETS
	Beginning of period	224,914,908	200,940,112
	End of period (including undistributed net investment income of $821,007 and $3,643,511, respectively)	$186,726,404	$224,914,908
*	Unaudited.

The accompanying notes are an integral part of these financial statements.

International Value Fund     29

Financial highlights (For a common share outstanding throughout the period)

INVESTMENT OPERATIONS:					LESS DISTRIBUTIONS:							RATIOS AND SUPPLEMENTAL DATA:
Period ended	Net asset value, beginning of period	Net investment income (loss)a	Net realized and unrealized gain (loss) on investments	Total from investment operations	From net investment income	From return of capital	Total distributions	Redemption fees	Non-recurring reimbursements	Net asset value, end of period	Total return at net asset value (%)b	Net assets, end of period (in thousands)	Ratio of expenses to average net assets (%)c	Ratio of net investment income (loss) to average net assets (%)	Portfolio turnover (%)
Class A
December 31, 2014**	$12.00	.04	(1.45)	(1.41)	(.21)	—	(.21)	—	—	$10.38	(11.78)*	$159,761	.64*	.40*	11*
June 30, 2014	10.04	.14	1.98	2.12	(.16)	—	(.16)	—	—e	12.00	21.14	193,487	1.34	1.26	50
June 30, 2013	8.54	.17	1.46	1.63	(.13)	—	(.13)	—d	—	10.04	19.10	172,723	1.35	1.75	39
June 30, 2012	10.53	.18	(1.73)	(1.55)	(.46)	—	(.46)	—d	.02f,g	8.54	(14.26)	167,513	1.37k	2.00k	45
June 30, 2011	7.88	.15	2.63	2.78	(.13)	—	(.13)	—d	—h,i	10.53	35.44	241,467	1.37k	1.56k	52
June 30, 2010	7.67	.16	.07	.23	(.03)	—	(.03)	—d	.01j	7.88	3.08	222,114	1.47k	1.81k	87
Class B
December 31, 2014**	$11.89	—d	(1.43)	(1.43)	(.11)	—	(.11)	—	—	$10.35	(12.08)*	$5,256	1.02*	.02*	11*
June 30, 2014	9.95	.05	1.95	2.00	(.06)	—	(.06)	—	—e	11.89	20.16	6,691	2.09	.43	50
June 30, 2013	8.45	.09	1.46	1.55	(.05)	—	(.05)	—d	—	9.95	18.36	7,549	2.10	.92	39
June 30, 2012	10.39	.10	(1.69)	(1.59)	(.37)	—	(.37)	—d	.02f,g	8.45	(14.94)	8,624	2.12k	1.16k	45
June 30, 2011	7.77	.07	2.59	2.66	(.04)	—	(.04)	—d	—h,i	10.39	34.31	15,096	2.12k	.72k	52
June 30, 2010	7.59	.09	.08	.17	—	—	—	—d	.01j	7.77	2.37	17,728	2.22k	1.00k	87
Class C
December 31, 2014**	$11.89	—d	(1.43)	(1.43)	(.13)	—	(.13)	—	—	$10.33	(12.07)*	$8,717	1.02*	.02*	11*
June 30, 2014	9.96	.06	1.95	2.01	(.08)	—	(.08)	—	—e	11.89	20.18	10,030	2.09	.52	50
June 30, 2013	8.47	.10	1.45	1.55	(.06)	—	(.06)	—d	—	9.96	18.28	8,342	2.10	1.03	39
June 30, 2012	10.43	.11	(1.71)	(1.60)	(.38)	—	(.38)	—d	.02f,g	8.47	(14.95)	7,694	2.12k	1.23k	45
June 30, 2011	7.81	.08	2.60	2.68	(.06)	—	(.06)	—d	—h,i	10.43	34.31	11,310	2.12k	.81k	52
June 30, 2010	7.63	.09	.08	.17	—	—	—	—d	.01j	7.81	2.36	10,352	2.22k	1.06k	87
Class M
December 31, 2014**	$12.00	.02	(1.45)	(1.43)	(.15)	—	(.15)	—	—	$10.42	(11.97)*	$2,790	.89*	.15*	11*
June 30, 2014	10.05	.09	1.96	2.05	(.10)	—	(.10)	—	—e	12.00	20.44	3,364	1.84	.75	50
June 30, 2013	8.54	.12	1.46	1.58	(.07)	—	(.07)	—d	—	10.05	18.57	3,240	1.85	1.23	39
June 30, 2012	10.52	.12	(1.71)	(1.59)	(.41)	—	(.41)	—d	.02f,g	8.54	(14.70)	3,251	1.87k	1.41k	45
June 30, 2011	7.88	.11	2.61	2.72	(.08)	—	(.08)	—d	—h,i	10.52	34.63	5,337	1.87k	1.08k	52
June 30, 2010	7.68	.12	.07	.19	—	—	—	—d	.01j	7.88	2.60	4,648	1.97k	1.32k	87
Class R
December 31, 2014**	$11.82	.03	(1.43)	(1.40)	(.19)	—	(.19)	—	—	$10.23	(11.91)*	$2,424	.77*	.28*	11*
June 30, 2014	9.89	.11	1.95	2.06	(.13)	—	(.13)	—	—e	11.82	20.87	2,752	1.59	1.03	50
June 30, 2013	8.41	.15	1.44	1.59	(.11)	—	(.11)	—d	—	9.89	18.91	2,447	1.60	1.54	39
June 30, 2012	10.38	.16	(1.71)	(1.55)	(.44)	—	(.44)	—d	.02f,g	8.41	(14.51)	2,015	1.62k	1.81k	45
June 30, 2011	7.78	.13	2.59	2.72	(.12)	—	(.12)	—d	—h,i	10.38	35.00	2,560	1.62k	1.38k	52
June 30, 2010	7.58	.14	.06	.20	(.01)	—	(.01)	—d	.01j	7.78	2.80	1,928	1.72k	1.58k	87
Class R5
December 31, 2014**	$12.05	.06	(1.44)	(1.38)	(.25)	—	(.25)	—	—	$10.42	(11.51)*	$9	.49*	.55*	11*
June 30, 2014†	11.60	.14	.47	.61	(.16)	—	(.16)	—	—	12.05	5.29*	11	.58*	1.16*	50
Class R6
December 31, 2014**	$12.07	.07	(1.47)	(1.40)	(.26)	—	(.26)	—	—	$10.41	(11.64)*	$3,260	.44*	.60*	11*
June 30, 2014†	11.60	.18	.45	.63	(.16)	—	(.16)	—	—	12.07	5.46*	4,031	.53*	1.48*	50

See notes to financial highlights at the end of this section.

The accompanying notes are an integral part of these financial statements.

30 International Value Fund International Value Fund 31

Financial highlights (Continued)

INVESTMENT OPERATIONS:					LESS DISTRIBUTIONS:							RATIOS AND SUPPLEMENTAL DATA:
Period ended	Net asset value, beginning of period	Net investment income (loss)a	Net realized and unrealized gain (loss) on investments	Total from investment operations	From net investment income	From return of capital	Total distributions	Redemption fees	Non-recurring reimbursements	Net asset value, end of period	Total return at net asset value (%)b	Net assets, end of period (in thousands)	Ratio of expenses to average net assets (%)c	Ratio of net investment income (loss) to average net assets (%)	Portfolio turnover (%)
Class Y
December 31, 2014**	$12.02	.06	(1.45)	(1.39)	(.24)	—	(.24)	—	—	$10.39	(11.59)*	$4,511	.51*	.55*	11*
June 30, 2014	10.06	.14	2.00	2.14	(.18)	—	(.18)	—	—e	12.02	21.38	4,549	1.09	1.27	50
June 30, 2013	8.55	.21	1.45	1.66	(.15)	—	(.15)	—d	—	10.06	19.48	6,638	1.10	2.14	39
June 30, 2012	10.56	.20	(1.74)	(1.54)	(.49)	—	(.49)	—d	.02f,g	8.55	(14.14)	4,023	1.12k	2.24k	45
June 30, 2011	7.91	.19	2.62	2.81	(.16)	—	(.16)	—d	—h,i	10.56	35.66	5,455	1.12k	1.90k	52
June 30, 2010	7.69	.16	.10	.26	(.05)	—	(.05)	—d	.01j	7.91	3.45	4,168	1.22k	1.79k	87

* Not annualized.

** Unaudited.

† For the period December 2, 2013 (commencement of operations) to June 30, 2014.

^a  Per share net investment income (loss) has been determined on the basis of the weighted average number of shares outstanding during the period.

^b  Total return assumes dividend reinvestment and does not reflect the effect of sales charges.

^c  Includes amounts paid through expense offset and/or brokerage/service arrangements (Note 2). Also excludes acquired fund fees and expenses, if any.

^d  Amount represents less than $0.01 per share.

^e  Reflects a non-recurring reimbursement related to restitution amounts in connection with a distribution plan approved by the SEC and Morgan Stanley & Co., which amounted to less than $0.01 per share outstanding as of November 27, 2013.

^f  Reflects a non-recurring reimbursement related to restitution amounts in connection with a distribution plan approved by the Securities and Exchange Commission (the SEC), which amounted to $0.01 per share outstanding on July 21,2011.

^g  Reflects a non-recurring reimbursement pursuant to a settlement between the SEC and Canadian Imperial Holdings, Inc. and CIBC World Markets Corp. which amounted to less than $0.01 per share outstanding on November 29, 2011.

^h  Reflects a non-recurring reimbursement related to short-term trading related lawsuits, which amounted to less than $0.01 per share outstanding on May 11, 2011.

ⁱ  Reflects a non-recurring reimbursement pursuant to a settlement between the SEC and Zurich Capital Markets, Inc., which amounted to less than $0.01 per share outstanding as of December 21, 2010.

^j  Reflects a non-recurring reimbursement pursuant to a settlement between the SEC and Prudential Securities, Inc., which amounted to $0.01 per share outstanding as of March 30, 2010.

^k  Reflects an involuntary contractual expense limitation in effect during the period. For the periods ended June 30, 2011 and June 30, 2012, the amount reflects the waiver, by Putnam Management, of certain proxy related costs. As a result of such limitation and/or waivers, the expenses of each class reflect a reduction of the following amounts (Note 2):

	Percentage of average net assets
June 30, 2012	<0.01%
June 30, 2011	0.03
June 30, 2010	0.06

The accompanying notes are an integral part of these financial statements.

32 International Value Fund International Value Fund 33

Notes to financial statements 12/31/14 (Unaudited)

Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter. Unless otherwise noted, the “reporting period” represents the period from July 1, 2014 through December 31, 2014.

Putnam International Value Fund (the fund) is a diversified series of Putnam Funds Trust (the Trust), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The goal of the fund is to seek capital growth. Current income is a secondary objective. The fund invests mainly in common stocks of large and midsize companies outside the United States, with a focus on value stocks. Value stocks are those that Putnam Management believes are currently undervalued by the market. If Putnam Management is correct and other investors ultimately recognize the value of the company, the price of its stock may rise. The fund invests mainly in developed countries, but may invest in emerging markets. Putnam Management may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. The fund may also use derivatives, such as futures, options, certain foreign currency transactions, warrants and swap contracts, for both hedging and non-hedging purposes.

The fund offers class A, class B, class C, class M, class R, class R5, class R6 and class Y shares. The fund began offering R5 and R6 classes of shares on December 2, 2013. Class A and class M shares are sold with a maximum front-end sales charge of 5.75% and 3.50%, respectively, and generally do not pay a contingent deferred sales charge. Class B shares, which convert to class A shares after approximately eight years, do not pay a front-end sales charge and are subject to a contingent deferred sales charge if those shares are redeemed within six years of purchase. Class C shares have a one-year 1.00% contingent deferred sales charge and do not convert to class A shares. Class R shares, which are not available to all investors, are sold at net asset value. The expenses for class A, class B, class C, class M and class R shares may differ based on the distribution fee of each class, which is identified in Note 2. Class R5, class R6 and class Y shares, which are sold at net asset value, are generally subject to the same expenses as class A, class B, class C, class M and class R shares, but do not bear a distribution fee and in the case of class R5 and class R6 shares, bear a lower investor servicing fee, which is identified in Note 2. Class R5, class R6 and class Y shares are not available to all investors.

In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.

Note 1: Significant accounting policies

The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.

Investment income, realized and unrealized gains and losses and expenses of the fund are borne pro-rata based on the relative net assets of each class to the total net assets of the fund, except that each class bears expenses unique to that class (including the distribution fees applicable to such classes). Each class votes as a class only with respect to its own distribution plan or other matters on which a class vote is required by law or determined by the Trustees. If the fund were liquidated, shares of each class would receive their pro-rata share of the net assets of the fund. In addition, the Trustees declare separate dividends on each class of shares.

Security valuation Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and has delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible

34     International Value Fund

for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.

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 under Accounting Standards Codification 820 Fair Value Measurements and Disclosures (ASC 820). If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security.

Investments in open-end investment companies (excluding exchange traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.

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 would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. 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. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value and are classified as Level 2 securities.

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 in accordance with policies and procedures approved by the Trustees. 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, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.

To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. 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.

Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.

Interest income, net of any applicable withholding taxes, is recorded on the accrual basis. Dividend income, net of any applicable withholding taxes, is recognized on the ex-dividend date except that certain dividends from foreign securities, if any, are recognized as soon as the fund is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Dividends representing a return of capital or capital gains, if any, are reflected as a reduction of cost and/or as a realized gain. All premiums/discounts are amortized/accreted on a yield-to-maturity basis.

Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The fair value of foreign securities, currency holdings, and other assets and liabilities is recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when earned or incurred. The fund does not isolate that portion of realized or unrealized gains or losses resulting from changes in the foreign exchange rate on investments from fluctuations arising from changes in the market prices of the securities. Such gains and losses are included with the net realized and unrealized gain or loss on

International Value Fund     35

investments. Net realized gains and losses on foreign currency transactions represent net realized exchange gains or losses on closed forward currency contracts, disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions and the difference between the amount of investment income and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign currencies arise from changes in the value of open forward currency contracts and assets and liabilities other than investments at the period end, resulting from changes in the exchange rate.

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 fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair 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. 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.

Master agreements The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC 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, is presented in the fund’s portfolio. Collateral posted to the fund which cannot be sold or repledged totaled $24,436 at the close of the reporting period.

Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.

Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund’s future derivative activity.

At the close of the reporting period, the fund had a net liability position of $1,432,161 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $1,132,985 and may include amounts related to unsettled agreements.

Securities lending 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 fair value of the securities loaned. The fair 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. Income from securities lending is included in investment income on the Statement of operations. Cash collateral is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. At the close of the reporting period, the fund received cash collateral of $2,481,233 and the value of securities loaned amounted to $2,344,442.

36     International Value Fund

Interfund lending The fund, along with other Putnam funds, may participate in an interfund lending program pursuant to an exemptive order issued by the SEC. This program allows the fund to borrow from or lend to other Putnam funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. Interest earned or paid on the interfund lending transaction will be based on the average of certain current market rates. During the reporting period, the fund did not utilize the program.

Lines of credit The fund participates, along with other Putnam funds, in a $392.5 million unsecured committed line of credit and a $235.5 million unsecured uncommitted line of credit, both provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund’s borrowing at a rate equal to the Federal Funds rate plus 1.25% for the committed line of credit and the Federal Funds rate plus 1.30% for the uncommitted line of credit. A closing fee equal to 0.04% of the committed line of credit and 0.04% of the uncommitted line of credit has been paid by the participating funds. In addition, a commitment fee of 0.11% per annum on any unutilized portion of the committed line of credit is allocated to the participating funds based on their relative net assets and paid quarterly. During the reporting period, the fund had no borrowings against these arrangements.

Federal taxes It is the policy of the fund to distribute all of its taxable income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.

The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

The fund may also be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. In some cases, the fund may be entitled to reclaim all or a portion of such taxes, and such reclaim amounts, if any, are reflected as an asset on the fund’s books. In many cases, however, the fund may not receive such amounts for an extended period of time, depending on the country of investment.

At June 30, 2014, the fund had a capital loss carryover of $282,544,838 available to the extent allowed by the Code to offset future net capital gain, if any. The amounts of the carryovers and the expiration dates are:

Loss carryover
Short-term	Long-term	Total	Expiration
$103,929,250	N/A	$103,929,250	June 30, 2017
178,615,588	N/A	178,615,588	June 30, 2018

Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

The aggregate identified cost on a tax basis is $180,934,338, resulting in gross unrealized appreciation and depreciation of $23,322,754 and $14,544,249, respectively, or net unrealized appreciation of $8,778,505.

Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund.

International Value Fund     37

Note 2: Management fee, administrative services and other transactions

The fund pays Putnam Management a management fee (base fee) (based on the fund’s average net assets and computed and paid monthly) at annual rates that may vary based on the average of the aggregate net assets of most open-end funds, as defined in the fund’s management contract, sponsored by Putnam Management. Such annual rates may vary as follows:

0.850%	of the first $5 billion,
0.800%	of the next $5 billion,
0.750%	of the next $10 billion,
0.700%	of the next $10 billion,
0.650%	of the next $50 billion,
0.630%	of the next $50 billion,
0.620%	of the next $100 billion and
0.615%	of any excess thereafter.

In addition, the monthly management fee consists of the monthly base fee plus or minus a performance adjustment for the month. The performance adjustment is determined based on performance over the thirty-six month period then ended. Each month, the performance adjustment is calculated by multiplying the performance adjustment rate and the fund’s average net assets over the performance period and the result is divided by twelve. The resulting dollar amount is added to, or subtracted from the base fee for that month. The performance adjustment rate is equal to 0.03 multiplied by the difference between the fund’s annualized performance (measured by the fund’s class A shares) and the annualized performance of the MSCI EAFE Value Index (ND), each measured over the performance period. The maximum annualized performance adjustment rates are +/– 0.15%. The monthly base fee is determined based on the fund’s average net assets for the month, while the performance adjustment is determined based on the fund’s average net assets over the performance period of up to thirty-six months. This means it is possible that, if the fund underperforms significantly over the performance period, and the fund’s assets have declined significantly over that period, the negative performance adjustment may exceed the base fee. In this event, Putnam Management would make a payment to the fund.

Because the performance adjustment is based on the fund’s performance relative to its applicable benchmark index, and not its absolute performance, the performance adjustment could increase Putnam Management’s fee even if the fund’s shares lose value during the performance period provided that the fund outperformed its benchmark index, and could decrease Putnam Management’s fee even if the fund’s shares increase in value during the performance period provided that the fund underperformed its benchmark index.

For the reporting period, the base fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.347% of the fund’s average net assets before a decrease of $24,373 (0.012% of the fund’s average net assets) based on performance.

Putnam Management has contractually agreed, through June 30, 2015, to waive fees or reimburse the fund’s expenses to the extent necessary to limit the cumulative expenses of the fund, exclusive of brokerage, interest, taxes, investment-related expenses, extraordinary expenses, acquired fund fees and expenses and payments under the fund’s investor servicing contract, investment management contract and distribution plans, on a fiscal year-to-date basis to an annual rate of 0.20% of the fund’s average net assets over such fiscal year-to-date period. During the reporting period, the fund’s expenses were not reduced as a result of this limit.

Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. Putnam Management pays a quarterly sub-management fee to PIL for its services at an annual rate of 0.35% of the average net assets of the portion of the fund managed by PIL.

The Putnam Advisory Company, LLC (PAC), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund, as designated from time to time by Putnam Management or PIL. Putnam Management or PIL, as applicable, pays a quarterly sub-advisory fee to PAC for its services at the annual rate of 0.35% of the average net assets of the portion of the fund’s assets for which PAC is engaged as sub-adviser.

The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees.

38     International Value Fund

Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.

Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. received fees for investor servicing (except for class R5 and R6 shares) based on the fund’s retail asset level, the number of shareholder accounts in the fund and the level of defined contribution plan assets in the fund. Class R5 shares pay a monthly fee based on the average net assets of class R5 shares at an annual rate of 0.15%. Class R6 shares pay a monthly fee based on the average net assets of class R6 shares at an annual rate of 0.05%. Investor servicing fees will not exceed an annual rate of 0.32% of the fund’s average net assets. During the reporting period, the expenses for each class of shares related to investor servicing fees were as follows:

Class A	$175,570
Class B	5,912
Class C	9,300
Class M	3,081
Class R	2,586
Class R5	7
Class R6	922
Class Y	5,222
Total	$202,600

The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. The fund also reduced expenses through brokerage/service arrangements. For the reporting period, the fund’s expenses were reduced by $121 under the expense offset arrangements and by $4,380 under the brokerage/service arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $119, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.

The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable on or after July 1, 1995. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.

The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.

The fund has adopted distribution plans (the Plans) with respect to its class A, class B, class C, class M and class R shares pursuant to Rule 12b–1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Retail Management Limited Partnership, an indirect wholly-owned subsidiary of Putnam Investments, LLC, for services provided and expenses incurred in distributing shares of the fund. The Plans provide for payments by the fund to Putnam Retail Management Limited Partnership at an annual rate of up to 0.35%, 1.00%, 1.00%, 1.00% and 1.00% of the average net assets attributable to class A, class B, class C, class M and class R shares, respectively. The Trustees have approved payment by the fund at an annual rate of 0.25%, 1.00%, 1.00%, 0.75% and 0.50% of the average net assets attributable to class A, class B, class C, class M and class R shares, respectively. During the reporting period, the class specific expenses related to distribution fees were as follows:

Class A	$222,681
Class B	29,991
Class C	47,187
Class M	11,725
Class R	6,561
Total	$318,145

International Value Fund     39

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $6,200 and $152 from the sale of class A and class M shares, respectively, and received $838 and $49 in contingent deferred sales charges from redemptions of class B and class C shares, respectively.

A deferred sales charge of up to 1.00% and 0.65% is assessed on certain redemptions of class A and class M shares, respectively. For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received no monies on class A and class M redemptions, respectively.

Note 3: Purchases and sales of securities

During the reporting period, cost of purchases and proceeds from sales, excluding short-term investments were as follows:

	Cost of purchases	Proceeds from sales
Investments in securities, including TBA commitments (Long-term)	$22,733,564	$40,119,621
U.S. government securities (Long-term)	—	—
Total	$22,733,564	$40,119,621

Note 4: Capital shares

At the close of the reporting period, there were an unlimited number of shares of beneficial interest authorized. Transactions in capital shares were as follows:

	Six months ended 12/31/14		Year ended 6/30/14
Class A	Shares	Amount	Shares	Amount
Shares sold	310,133	$3,473,318	946,501	$10,831,658
Shares issued in connection with reinvestment of distributions	285,803	3,012,365	210,401	2,430,132
	595,936	6,485,683	1,156,902	13,261,790
Shares repurchased	(1,332,630)	(14,943,649)	(2,229,798)	(25,295,135)
Net decrease	(736,694)	$(8,457,966)	(1,072,896)	$(12,033,345)

	Six months ended 12/31/14		Year ended 6/30/14
Class B	Shares	Amount	Shares	Amount
Shares sold	18,725	$208,344	44,963	$507,582
Shares issued in connection with reinvestment of distributions	4,908	51,587	3,653	41,972
	23,633	259,931	48,616	549,554
Shares repurchased	(78,545)	(872,183)	(244,601)	(2,764,953)
Net decrease	(54,912)	$(612,252)	(195,985)	$(2,215,399)

	Six months ended 12/31/14		Year ended 6/30/14
Class C	Shares	Amount	Shares	Amount
Shares sold	52,200	$575,660	99,063	$1,123,233
Shares issued in connection with reinvestment of distributions	8,657	90,809	4,833	55,535
	60,857	666,469	103,896	1,178,768
Shares repurchased	(60,301)	(664,714)	(97,983)	(1,108,602)
Net increase	556	$1,755	5,913	$70,166

40     International Value Fund

	Six months ended 12/31/14		Year ended 6/30/14
Class M	Shares	Amount	Shares	Amount
Shares sold	4,074	$45,465	9,129	$102,444
Shares issued in connection with reinvestment of distributions	3,599	38,110	2,646	30,638
	7,673	83,575	11,775	133,082
Shares repurchased	(20,194)	(223,904)	(53,881)	(619,595)
Net decrease	(12,521)	$(140,329)	(42,106)	$(486,513)

	Six months ended 12/31/14		Year ended 6/30/14
Class R	Shares	Amount	Shares	Amount
Shares sold	22,332	$243,904	51,044	$575,361
Shares issued in connection with reinvestment of distributions	4,023	41,798	2,463	28,056
	26,355	285,702	53,507	603,417
Shares repurchased	(22,340)	(242,115)	(68,005)	(749,323)
Net increase (decrease)	4,015	$43,587	(14,498)	$(145,906)

	Six months ended 12/31/14		For the period 12/2/13 (commencement of operations) to 6/30/14
Class R5	Shares	Amount	Shares	Amount
Shares sold	—	$—	862	$10,000
Shares issued in connection with reinvestment of distributions	20	216	12	135
	20	216	874	10,135
Shares repurchased	—	—	—	—
Net increase	20	$216	874	$10,135

	Six months ended 12/31/14		For the period 12/2/13 (commencement of operations) to 6/30/14
Class R6	Shares	Amount	Shares	Amount
Shares sold	9,753	$110,594	361,648	$4,212,165
Shares issued in connection with reinvestment of distributions	7,503	79,384	12	135
	17,256	189,978	361,660	4,212,300
Shares repurchased	(38,310)	(430,660)	(27,556)	(324,527)
Net increase (decrease)	(21,054)	$(240,682)	334,104	$3,887,773

	Six months ended 12/31/14		Year ended 6/30/14
Class Y	Shares	Amount	Shares	Amount
Shares sold	249,489	$2,923,542	170,235	$1,925,521
Shares issued in connection with reinvestment of distributions	8,148	85,963	10,013	115,753
	257,637	3,009,505	180,248	2,041,274
Shares repurchased	(201,701)	(2,307,630)	(461,551)	(5,321,708)
Net increase (decrease)	55,936	$701,875	(281,303)	$(3,280,434)

International Value Fund     41

At the close of the reporting period, Putnam Investments, LLC owned the following shares of the fund:

	Shares owned	Percentage of ownership	Value
Class R5	894	100%	9,313
Class R6	895	0.29	9,317

Note 5: Affiliated transactions

Transactions during the reporting period with Putnam Short Term Investment Fund, which is under common ownership and control, were as follows:

Name of affiliate	Fair value at the beginning of the reporting period	Purchase cost	Sale proceeds	Investment income	Fair value at the end of the reporting period
Putnam Short Term Investment Fund*	$2,288,978	$29,880,297	$28,630,284	$1,345	$3,538,991

* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management.

Note 6: Market, credit and other risks

In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. Investments in foreign securities involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations.

Note 7: Summary of derivative activity

The volume of activity for the reporting period for any derivative type that was held during the period is listed below and was as follows based on an average of the holdings at the end of each fiscal quarter:

Forward currency contracts (contract amount) $136,200,000

The following is a summary of the fair value of derivative instruments as of the close of the reporting period:

Fair value 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	Statement of assets and liabilities location	Fair value	Statement of assets and liabilities location	Fair value
Foreign exchange contracts	Receivables	$1,711,139	Payables	$2,228,779
Total		$1,711,139		$2,228,779

42     International Value Fund

The following is a summary of realized and change in unrealized gains or losses of derivative instruments on the Statement of operations for the reporting period (see Note 1):

Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments

Derivatives not accounted for as hedging instruments under ASC 815	Forward currency contracts	Total
Foreign exchange contracts	$(1,318,748)	$(1,318,748)
Total	$(1,318,748)	$(1,318,748)

Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss) on investments

Derivatives not accounted for as hedging instruments under ASC 815	Forward currency contracts	Total
Foreign exchange contracts	$(406,768)	$(406,768)
Total	$(406,768)	$(406,768)

International Value Fund     43

Note 8: Offsetting of financial and derivative assets and liabilities

The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions or borrowing transactions associated with securities sold short, if any, see Note 1. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.

	Bank of America N.A.	Barclays Bank PLC	Citibank, N.A.	Credit Suisse International	Deutsche Bank AG	Goldman Sachs International	HSBC Bank USA, National Association	JPMorgan Chase Bank N.A.	State Street Bank and Trust Co.	UBS AG	WestPac Banking Corp.	Total
Assets:
Forward currency contracts#	$—	$69,990	$358,586	$156,896	$29,689	$—	$183,058	$150,156	$280,455	$42,305	$440,004	$1,711,139
Total Assets	$—	$69,990	$358,586	$156,896	$29,689	$—	$183,058	$150,156	$280,455	$42,305	$440,004	$1,711,139
Liabilities:
Forward currency contracts#	437,344	118,924	68,819	684,044	120,324	168,518	6,490	309,738	96,168	40,216	178,194	2,228,779
Total Liabilities	$437,344	$118,924	$68,819	$684,044	$120,324	$168,518	$6,490	$309,738	$96,168	$40,216	$178,194	$2,228,779
Total Financial and Derivative Net Assets	$(437,344)	$(48,934)	$289,767	$(527,148)	$(90,635)	$(168,518)	$176,568	$(159,582)	$184,287	$2,089	$261,810	$(517,640)
Total collateral received (pledged)†##	$(437,344)	$—	$229,000	$(429,988)	$—	$(121,000)	$176,568	$(80,000)	$—	$2,089	$—
Net amount	$—	$(48,934)	$60,767	$(97,160)	$(90,635)	$(47,518)	$—	$(79,582)	$184,287	$—	$261,810

†	Additional collateral may be required from certain brokers based on individual agreements.
#	Covered by master netting agreement (Note 1).
##	Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.

44     International Value Fund

Fund information

Founded over 75 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage over 100 funds across income, value, blend, growth, asset allocation, absolute return, and global sector categories.

Investment Manager

Putnam Investment
Management, LLC
One Post Office Square
Boston, MA 02109

Investment Sub-Manager

Putnam Investments Limited
57–59 St James’s Street
London, England SW1A 1LD

Investment Sub-Advisor

The Putnam Advisory Company, LLC
One Post Office Square
Boston, MA 02109

Marketing Services

Putnam Retail Management
One Post Office Square
Boston, MA 02109

Custodian

State Street Bank
and Trust Company

Legal Counsel

Ropes & Gray LLP

Trustees

Jameson A. Baxter, Chair
Liaquat Ahamed
Ravi Akhoury
Barbara M. Baumann
Charles B. Curtis
Robert J. Darretta
Katinka Domotorffy
John A. Hill
Paul L. Joskow
Kenneth R. Leibler
Robert E. Patterson
George Putnam, III
Robert L. Reynolds
W. Thomas Stephens

Officers

Robert L. Reynolds
President

Jonathan S. Horwitz
Executive Vice President,
Principal Executive Officer, and
Compliance Liaison

Steven D. Krichmar
Vice President and
Principal Financial Officer

Robert T. Burns
Vice President and
Chief Legal Officer

Robert R. Leveille
Vice President and
Chief Compliance Officer

Michael J. Higgins
Vice President, Treasurer,
and Clerk

Janet C. Smith
Vice President,
Principal Accounting Officer,
and Assistant Treasurer

Susan G. Malloy
Vice President and
Assistant Treasurer

James P. Pappas
Vice President

Mark C. Trenchard
Vice President and
BSA Compliance Officer

Nancy E. Florek
Vice President, Director of
Proxy Voting and Corporate
Governance, Assistant Clerk,
and Associate Treasurer

This report is for the information of shareholders of Putnam International Value Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of Putnam’s Quarterly Performance Summary, and Putnam’s Quarterly Ranking Summary. For more recent performance, please visit putnam.com. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund, which are described in its prospectus. For this and other information or to request a prospectus or summary prospectus, call 1-800-225-1581 toll free. Please read the prospectus carefully before investing. The fund’s Statement of Additional Information contains additional information about the fund’s Trustees and is available without charge upon request by calling 1-800-225-1581.

Item 2. Code of Ethics:

Not applicable

Item 3. Audit Committee Financial Expert:

Not applicable

Item 4. Principal Accountant Fees and Services:

Not applicable

Item 5. Audit Committee of Listed Registrants

Not applicable

Item 6. Schedule of Investments:

The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.

Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:

Not applicable

Item 8. Portfolio Managers of Closed-End Investment Companies

Not Applicable

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:

Not applicable

Item 10. Submission of Matters to a Vote of Security Holders:

Not applicable

Item 11. 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 12. Exhibits:

(a)(1) Not applicable

(a)(2) 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.

(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith.

Putnam Funds Trust

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer

Date: February 27, 2015

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: February 27, 2015

By (Signature and Title):

/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer

Date: February 27, 2015