a_globaltelecom.htm


	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:	August 31, 2015


	Date of reporting period:	September 1, 2014 – February 28, 2015


	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 Global
Telecommunications
Fund

Semiannual report
2 | 28 | 15

Message from the Trustees	1
About the fund	2
Performance snapshot	4
Interview with your fund’s portfolio manager	5
Your fund’s performance	10
Your fund’s expenses	12
Terms and definitions	14
Other information for shareholders	15
Financial statements	16

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. The telecommunications industry may be affected by government regulation, intense competition, equipment incompatibility, changing consumer preferences, technological obsolescence, and large capital expenditures and debt burdens. The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers, it is vulnerable to common economic forces and may result in greater losses and volatility. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The use of short selling may result in losses if the securities appreciate in value. 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. 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. You can lose money by investing in the fund.

Message from the Trustees

Dear Fellow Shareholder:

Conditions for investors in early 2015 offer reasons for both optimism and a degree of caution. After losing ground at the start of the year, many stock markets around the world have delivered positive results, but not without some volatility. Markets in the United States, Europe, and Japan have hit record or multiyear highs. An improving U.S. economy, global economic data, and the accommodative policies of several central banks provide sources of confidence.

The European Central Bank’s asset-purchase program, begun in early March, seeks to stimulate growth and combat the eurozone’s deflation risk. Investors have responded by sending European equities to record highs. Meanwhile, the U.S. Federal Reserve has stated that it will be patient in raising interest rates, while also acknowledging the nation’s strengthening economic recovery.

In the United States, the unemployment rate has dropped, while the nation’s gross domestic product has expanded for three consecutive quarters. Europe’s gross domestic product expanded by 0.3% in the fourth quarter of 2014 from the third quarter, and a weaker euro has boosted the competitiveness of the region.

In today’s environment, investors should consider a range of investment opportunities. An example would be Putnam’s new ways of thinking, which integrate innovative investment ideas into time-tested, traditional strategies. Our experienced equity and fixed-income teams invest across many asset classes and pursue flexible strategies that seek out opportunities for growth or income while being mindful of risk. We also believe that it is important to rely on the counsel of your financial advisor, who can help your portfolio match your individual 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

April 9, 2015

Performance
snapshot

Annualized total return (%) comparison as of 2/28/15

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 10–12 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 Global Telecommunications Fund

Interview with your fund’s portfolio manager

Vivek Gandhi, CFA

Growth in the global telecommunications sector slowed somewhat during the six-month reporting period ended February 28, 2015. What factors influenced the sector during the period, and how did the fund perform in this environment?

Revenue growth in the global telecommunications sector continued to slow across all geographic regions during the six-month period. Moderate global economic growth, due in part to persistent weakness in Europe and the emerging markets, was partially responsible for the slowing revenue growth in the telecom sector, as were competitive “price wars” among large companies — particularly in the United States — as they sought to grow market share. The softness in revenue growth was reflected in the scant 1.87% gain of the benchmark MSCI World Telecommunications Services Index [ND] during the period.

Despite generally slower growth in the sector, the fund was able to deliver more than an 8% gain and widely outpaced the benchmark index. This excess performance came mostly from favorable security selection, although the fund’s ongoing emphasis on certain geographies in Europe — which is where some of the greatest sector growth occurred — helped as well.

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 2/28/15. See pages 4 and 10–12 for additional fund performance information. Index descriptions can be found on page 14.

Global Telecommunications Fund 5

What do you see today as the major themes in the global telecommunications sector, and how are you trying to exploit them?

Global telecom is characterized by businesses with high fixed costs, low product differentiation, low switching costs for customers, and high barriers to exit. As such, the sector tends to be defined by a competitive intensity. Contributing to that competitive intensity are such factors as regulatory influences, industry structure, and the prevailing macroeconomic environment. Individual global markets typically differ as to how those factors affect telecom stocks at different times. Nearly two years ago, we began to shift the fund’s geographic emphasis away from the United States and to concentrate more heavily on Europe, where we believed the regulatory environment would improve and benefit the growth of telecommunication networks in the region. The fund has benefited from this shift, as the improving regulatory environment and growing merger-and-acquisition activity produced several rewarding investment opportunities for the fund. My view is that this consolidation trend in Europe will continue and is likely to be one of the principal drivers of stock prices of European telecoms.

In the United States, a trend we are watching — and in select cases benefiting from — is that of smaller telecom companies getting increasingly aggressive and gaining market share by undercutting larger carriers on price. T-Mobile US, a low-cost provider of wireless voice, messaging, and data services, has been making good strides in this regard, and the fund’s overweight investment in T-Mobile has been beneficial.

Another area that I’ve liked for some time is the cable television industry, which is benefiting from increased customer demand for its bundling of high-speed Internet and telephony services with traditional television functionality. A material part of the fund’s strong performance versus its benchmark

Global composition

Allocations are shown as a percentage of the fund’s net assets as of 2/28/15. 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 Global Telecommunications Fund

“Despite generally slower growth in
the sector, the fund was able to widely
outpace the benchmark index.”

Vivek Gandhi

in the past has come from our investment in cable companies, particularly those in Europe, and again during the past six months, some of the fund’s best performers were European cable stocks.

So let’s talk about some of those top contributors.

Three of the fund’s top five contributors were cable stocks in which we had strong conviction. French cable company Numericable topped the list. Numericable has benefited from its acquisition of a French telecom operator, SFR, as investors recognized the enhanced potential for Numericable to deepen its penetration of the French market. Swedish cable company Com Hem Holding benefited by increasing penetration of telephony and high-speed Internet services to its existing base of residential and commercial customers. Com Hem also improved its cable television services, which helped the company rebound from past customer losses. Liberty Global, one of the largest cable companies in Europe, also was a beneficial holding.

Holding underweights in large U.S. telecoms such as AT&T and Verizon was helpful as well. While these large, well-established names had positive performance during the period, their gains were below the industry average, so by holding smaller positions than were contained in the benchmark index, the fund actually profited from those underweights.

Iliad, a low-cost French broadband and mobile operator, is a stock I spoke about as a detractor in our last shareholder update. The firm had bid for a controlling share in T-Mobile US, a move that investors disliked and Iliad’s

Top 10 holdings

This table shows the fund’s top 10 holdings by percentage of the fund’s net assets as of 2/28/15. Short-term investments and derivatives, if any, are excluded. Holdings will vary over time.

Global Telecommunications Fund 7

share price fell. We continued to hold the stock, and when the company subsequently withdrew its offer, the stock rebounded and our investment in Iliad paid off.

What holdings detracted from results?

The three biggest detractors relative to the benchmark were large European telecommunication stocks that the fund chose not to own: Germany’s Deutsche Telekom, French telecom operator Orange, and Spanish telecom operator Telefonica. These stocks also benefited from strong performance in the European telecommunication services sector during the period. Thankfully, we owned other European names that did even better than these stocks; hence, the fund outperformed the benchmark. As a matter of investment approach, we typically don’t take large amounts of risk from regional allocations, but instead focus on stock selection as the primary driver of investment returns. So owning more of some names in Europe, or any other region for that matter, comes at the expense of owning fewer of the other names in that region. Similarly, the fund had an underweight position in BT Group, the British multinational telecom firm, and did not achieve the full benefit of that firm’s solid performance during the period.

How did the fund use derivatives during the reporting period?

We used currency forward contracts to hedge portions of our foreign currency exposures. Currency forwards allow us to pursue strategies that can help protect the fund from adverse movements in exchange rates.

What is your outlook for global telecoms as we move further into 2015?

I remain constructive on Europe, where I believe the regulatory environment and declining competitive intensity will continue to be supportive of the region’s telecommunications companies. I am

Comparison of top industry weightings

This chart shows how the fund’s top weightings have changed 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 Global Telecommunications Fund

watching the U.S. market with some degree of caution. At this point, competitive intensity in the U.S. mobile business is quite high, particularly as aggressive, low-cost providers continue to execute well, which may limit the investment opportunities in that category. U.S. fixed-line and cable companies also appear to be facing some uncertainties on the regulatory side, which could make stock selection more problematic. In the emerging markets, we have generally been unable to find especially compelling opportunities, so it is likely we will continue to be very selective in what we choose to own — considering potential opportunities on a stock-by-stock, country-by-country basis.

Thank you, Vivek, for your time and insights.

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 Vivek Gandhi has an M.B.A. from Xavier Labour Relations Institute in Jamshedpur, India, and a B.Eng. from Regional Engineering College in Bhopal, India. He joined Putnam in 1999 and has been in the investment industry since 1994.

IN THE NEWS

The U.S. dollar showed continued strength in early March — climbing to a nearly 12-year high against the euro. A strengthening greenback supports consumer spending, with expected gains in the U.S. retail and travel sectors. At the same time, U.S.-based companies with global operations, such as those in pharmaceuticals and consumer electronics, may start earning less from international sales. German industrials, on the other hand, have taken advantage of a 17% decline in the euro in an effort to make prices more competitive. In 2014, sales from German manufacturers rose 11% in China and 6.5% in the United States, according to Germany’s federal statistical office Destatis. For 2015, the German machine tool industry expects another 3% boost in total production output. However, many countries in the 19-nation eurozone continue to cope with stagnation and high unemployment rates, which are up to 25% in Greece and Spain. To combat deflation, the European Central Bank implemented a €60 billion per-month bond repurchase program, which began in early March. However, these quantitative easing policies are likely to sustain currency weakness in many European economies.

Global Telecommunications Fund 9

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended February 28, 2015, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance information as of the most recent calendar quarter-end and 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 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 2/28/15

	Class A		Class B		Class C		Class M		Class R	Class Y
(inception dates)	(12/18/08)		(12/18/08)		(12/18/08)		(12/18/08)		(12/18/08)	(12/18/08)
	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
Life of fund	145.90%	131.76%	134.75%	134.75%	134.72%	134.72%	138.38%	130.04%	142.15%	149.85%
Annual average	15.64	14.54	14.77	14.77	14.77	14.77	15.06	14.40	15.35	15.93
5 years	125.69	112.72	117.41	115.41	117.42	117.42	120.10	112.40	122.97	128.65
Annual average	17.68	16.29	16.80	16.59	16.80	16.80	17.09	16.26	17.39	17.99
3 years	63.51	54.11	59.81	56.81	59.76	59.76	60.93	55.30	62.17	64.76
Annual average	17.81	15.51	16.91	16.18	16.90	16.90	17.19	15.80	17.49	18.11
1 year	4.50	–1.51	3.72	–0.38	3.70	2.88	3.92	0.29	4.24	4.76
6 months	8.41	2.18	8.01	3.73	7.92	7.07	8.09	4.31	8.24	8.55

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 and Y shares have no initial sales charge or CDSC.

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

10 Global Telecommunications Fund

Comparative index returns For periods ended 2/28/15

	MSCI World Telecommunications Services Index (ND)
Life of fund	81.09%
Annual average	10.06
5 years	74.06
Annual average	11.72
3 years	43.99
Annual average	12.92
1 year	5.70
6 months	1.87

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

Fund price and distribution information For the six-month period ended 2/28/15

Distributions	Class A		Class B	Class C	Class M		Class R	Class Y
Number	1		1	1	1		1	1
Income	$2.045		$1.883	$1.947	$1.955		$1.980	$2.101
Capital gains
Long-term gains	1.362		1.362	1.362	1.362		1.362	1.362
Short-term gains	0.456		0.456	0.456	0.456		0.456	0.456
Total	$3.863		$3.701	$3.765	$3.773		$3.798	$3.919
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
8/31/14	$17.87	$18.96	$17.44	$17.46	$17.69	$18.33	$17.73	$17.96
2/28/15	15.26	16.19	14.90	14.84	15.11	15.66	15.15	15.32

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.

Global Telecommunications Fund 11

Fund performance as of most recent calendar quarter
Total return for periods ended 3/31/15

	Class A		Class B		Class C		Class M		Class R	Class Y
(inception dates)	(12/18/08)		(12/18/08)		(12/18/08)		(12/18/08)		(12/18/08)	(12/18/08)
	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
Life of fund	135.59%	122.04%	124.83%	124.83%	124.91%	124.91%	128.44%	120.44%	132.08%	139.41%
Annual average	14.61	13.53	13.76	13.76	13.76	13.76	14.05	13.40	14.33	14.90
5 years	107.74	95.79	100.18	98.18	100.28	100.28	102.80	95.70	105.30	110.50
Annual average	15.75	14.38	14.89	14.66	14.90	14.90	15.19	14.37	15.47	16.05
3 years	52.99	44.20	49.66	46.66	49.68	49.68	50.83	45.56	51.90	54.20
Annual average	15.23	12.98	14.39	13.62	14.39	14.39	14.68	13.33	14.95	15.53
1 year	2.60	–3.30	1.86	–2.17	1.89	1.09	2.14	–1.43	2.41	2.87
6 months	6.61	0.48	6.24	2.04	6.27	5.43	6.42	2.69	6.50	6.75

See the discussion following the fund performance table on page 10 for information about the calculation of fund performance.

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. In the most recent six-month period, your fund’s expenses were limited; had expenses not been limited, they would have been higher. 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 Y
Net expenses for the fiscal year ended 8/31/14*	1.29%	2.04%	2.04%	1.79%	1.54%	1.04%
Total annual operating expenses for the fiscal year ended 8/31/14	1.68%	2.43%	2.43%	2.18%	1.93%	1.43%
Annualized expense ratio for the six-month period ended 2/28/15	1.27%	2.02%	2.02%	1.77%	1.52%	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.

* Reflects Putnam Management’s contractual obligation to limit expenses through 12/30/15.

12 Global Telecommunications Fund

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in the fund from September 1, 2014, to February 28, 2015. 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 Y
Expenses paid per $1,000*†	$6.56	$10.42	$10.41	$9.13	$7.85	$5.27
Ending value (after expenses)	$1,084.10	$1,080.10	$1,079.20	$1,080.90	$1,082.40	$1,085.50

* 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 2/28/15. 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.

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended February 28, 2015, use the following calculation method. To find the value of your investment on September 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 Y
Expenses paid per $1,000*†	$6.36	$10.09	$10.09	$8.85	$7.60	$5.11
Ending value (after expenses)	$1,018.50	$1,014.78	$1,014.78	$1,016.02	$1,017.26	$1,019.74

† 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.

Global Telecommunications Fund 13

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 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 World Telecommunications Services Index (ND) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets in the telecommunications sector.

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.

14 Global Telecommunications Fund

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 February 28, 2015, Putnam employees had approximately $499,000,000 and the Trustees had approximately $142,000,000 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.

Global Telecommunications Fund 15

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.

16 Global Telecommunications Fund

The fund’s portfolio 2/28/15 (Unaudited)

COMMON STOCKS (94.7%)*	Shares	Value
Diversified telecommunication services (39.6%)
AT&T, Inc.	24,466	$845,545
BT Group PLC (United Kingdom)	86,185	606,340
CenturyLink, Inc.	13,600	514,896
Com Hem Holding AB (Sweden) †	116,236	1,016,385
Iliad SA (France)	2,994	777,469
Koninklijke (Royal) KPN NV (Netherlands)	222,826	761,027
TalkTalk Telecom Group PLC (United Kingdom) ^S	83,352	436,364
Telecom Italia SpA RSP (Italy)	1,278,979	1,253,052
Verizon Communications, Inc.	45,595	2,254,673
		8,465,751
Internet software and services (2.6%)
Telecity Group PLC (United Kingdom)	38,985	556,730
		556,730
IT Services (2.8%)
InterXion Holding NV (Netherlands) †	18,600	592,782
		592,782
Media (20.3%)
Charter Communications, Inc. Class A †	2,900	523,740
Comcast Corp. Class A	7,083	420,589
DISH Network Corp. Class A †	8,500	637,840
Liberty Global PLC Ser. C (United Kingdom)	16,000	834,720
Live Nation Entertainment, Inc. †	14,200	363,378
Mediaset SpA (Italy) †	76,450	352,130
Numericable-SFR (France) †	18,282	1,133,400
Tele Columbus AG (Germany) †	4,741	63,134
		4,328,931
Wireless telecommunication services (29.4%)
China Mobile, Ltd. (China)	29,500	400,136
KDDI Corp. (Japan)	13,900	964,120
SoftBank Corp. (Japan)	22,700	1,399,703
T-Mobile US, Inc. †	29,000	957,870
Vodafone Group PLC (United Kingdom)	738,440	2,558,251
		6,280,080
Total common stocks (cost $17,367,312)		$20,224,274

SHORT-TERM INVESTMENTS (7.5%)*	Shares	Value
Putnam Cash Collateral Pool, LLC 0.20% ^d	408,750	$408,750
Putnam Short Term Investment Fund 0.10% ^L	1,187,751	1,187,751
Total short-term investments (cost $1,596,501)		$1,596,501

	TOTAL INVESTMENTS
	Total investments (cost $18,963,813)	$21,820,775

Global Telecommunications Fund 17

	Notes to the fund’s portfolio
	Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which ran from September 1, 2014 through February 28, 2015 (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 $21,358,313.
†	This security is non-income-producing.
^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.
^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.
^S	Security on loan, in part or in entirety, at the close of the reporting period (Note 1).
	At the close of the reporting period, the fund maintained liquid assets totaling $128,605 to cover certain derivative 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 States	36.1%
United Kingdom	23.3
Japan	11.0
France	8.9
Italy	7.5
Netherlands	6.3
Sweden	4.7
China	1.9
Germany	0.3
Total	100.0%

⌂ Methodology differs from that used for purposes of complying with the fund’s policy regarding investments in securities of foreign issuers, as discussed further in the fund’s prospectus.

FORWARD CURRENCY CONTRACTS at 2/28/15 (aggregate face value $10,431,067) (Unaudited)
Counterparty	Currency	Contract type	Delivery date	Value	Aggregate face value	Unrealized appreciation/ (depreciation)
Bank of America N.A.
	Australian Dollar	Buy	4/15/15	$65,402	$67,392	$(1,990)
	Euro	Sell	3/18/15	406,615	454,267	47,652
Barclays Bank PLC
	Australian Dollar	Buy	4/15/15	34,845	35,860	(1,015)
	Canadian Dollar	Buy	4/15/15	57,480	60,901	(3,421)
	Hong Kong Dollar	Buy	5/20/15	93,695	93,708	(13)
	Japanese Yen	Sell	5/20/15	36,664	37,285	621
	Singapore Dollar	Buy	5/20/15	257,155	260,371	(3,216)
	Swiss Franc	Buy	3/18/15	37,466	37,105	361
Citibank, N.A.
	Australian Dollar	Buy	4/15/15	45,213	45,086	127
	British Pound	Sell	3/18/15	275,087	279,179	4,092
	Canadian Dollar	Buy	4/15/15	42,291	42,483	(192)
	Danish Krone	Buy	3/18/15	102,355	114,544	(12,189)
	Japanese Yen	Sell	5/20/15	11,968	12,173	205

18 Global Telecommunications Fund

FORWARD CURRENCY CONTRACTS at 2/28/15 (aggregate face value $10,431,067) (Unaudited) cont.
Counterparty	Currency	Contract type	Delivery date	Value	Aggregate face value	Unrealized appreciation/ (depreciation)
Credit Suisse International
	Australian Dollar	Buy	4/15/15	$37,651	$38,746	$(1,095)
	British Pound	Sell	3/18/15	339,614	346,173	6,559
	Canadian Dollar	Buy	4/15/15	49,805	52,749	(2,944)
	Euro	Sell	3/18/15	148,186	165,522	17,336
	Japanese Yen	Sell	5/20/15	60,756	61,813	1,057
	New Zealand Dollar	Buy	4/15/15	54,543	55,198	(655)
	Norwegian Krone	Buy	3/18/15	110,432	121,981	(11,549)
	Swedish Krona	Buy	3/18/15	78,899	88,684	(9,785)
	Swiss Franc	Buy	3/18/15	186,597	184,782	1,815
Deutsche Bank AG
	Australian Dollar	Buy	4/15/15	65,480	67,373	(1,893)
	British Pound	Buy	3/18/15	418,188	424,878	(6,690)
	Canadian Dollar	Buy	4/15/15	70,351	74,502	(4,151)
	Euro	Sell	3/18/15	946,755	1,047,676	100,921
Goldman Sachs International
	Euro	Buy	3/18/15	361,063	403,331	(42,268)
HSBC Bank USA, National Association
	British Pound	Buy	3/18/15	42,606	43,423	(817)
	Canadian Dollar	Buy	4/15/15	30,939	32,768	(1,829)
	Euro	Buy	3/18/15	180,643	209,599	(28,956)
JPMorgan Chase Bank N.A.
	Australian Dollar	Buy	4/15/15	38,275	39,387	(1,112)
	British Pound	Sell	3/18/15	1,057,897	1,080,425	22,528
	Canadian Dollar	Buy	4/15/15	54,682	57,945	(3,263)
	Euro	Sell	3/18/15	24,959	25,282	323
	Japanese Yen	Buy	5/20/15	120,631	120,881	(250)
	Norwegian Krone	Buy	3/18/15	143,995	159,066	(15,071)
	Singapore Dollar	Buy	5/20/15	157,691	159,596	(1,905)
	Swedish Krona	Sell	3/18/15	57,678	58,724	1,046
	Swiss Franc	Buy	3/18/15	21,409	21,204	205
State Street Bank and Trust Co.
	Australian Dollar	Buy	4/15/15	99,234	102,105	(2,871)
	British Pound	Sell	3/18/15	770,923	784,514	13,591
	Canadian Dollar	Buy	4/15/15	102,649	108,710	(6,061)
	Euro	Buy	3/18/15	117,743	126,434	(8,691)
	Israeli Shekel	Buy	4/15/15	64,704	65,201	(497)
	Japanese Yen	Buy	5/20/15	315,709	321,203	(5,494)
	Singapore Dollar	Buy	5/20/15	61,963	62,109	(146)
	Swedish Krona	Sell	3/18/15	549,655	615,601	65,946

Global Telecommunications Fund 19

FORWARD CURRENCY CONTRACTS at 2/28/15 (aggregate face value $10,431,067) (Unaudited) cont.
Counterparty	Currency	Contract type	Delivery date	Value	Aggregate face value	Unrealized appreciation/ (depreciation)
UBS AG
	British Pound	Sell	3/18/15	$256,408	$262,839	$6,431
	Canadian Dollar	Buy	4/15/15	138,704	146,815	(8,111)
	Euro	Buy	3/18/15	589,385	632,778	(43,393)
WestPac Banking Corp.
	Australian Dollar	Buy	4/15/15	50,436	51,909	(1,473)
	British Pound	Buy	3/18/15	29,639	30,208	(569)
	Canadian Dollar	Buy	4/15/15	43,570	46,159	(2,589)
	Euro	Sell	3/18/15	351,326	392,420	41,094
Total						$95,746

	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	$4,328,931	$—	$—
Information technology	1,149,512	—	—
Telecommunication services	11,981,872	2,763,959	—
Total common stocks	17,460,315	2,763,959	—
Short-term investments	1,187,751	408,750	—
Totals by level	$18,648,066	$3,172,709	$—

		Valuation inputs
	Other financial instruments:	Level 1	Level 2	Level 3
	Forward currency contracts	$—	$95,746	$—
	Totals by level	$—	$95,746	$—
* 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.

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

20 Global Telecommunications Fund

	Statement of assets and liabilities 2/28/15 (Unaudited)
	ASSETS
	Investment in securities, at value, including $393,035 of securities on loan (Note 1):
	Unaffiliated issuers (identified cost $17,367,312)	$20,224,274
	Affiliated issuers (identified cost $1,596,501) (Notes 1 and 5)	1,596,501
	Dividends, interest and other receivables	1,103
	Receivable for shares of the fund sold	74,272
	Receivable from Manager (Note 2)	19,606
	Unrealized appreciation on forward currency contracts (Note 1)	331,910
	Prepaid assets	42,989
	Total assets	22,290,655
	LIABILITIES
	Payable for investments purchased	170,768
	Payable for shares of the fund repurchased	53,652
	Payable for custodian fees (Note 2)	3,760
	Payable for investor servicing fees (Note 2)	6,445
	Payable for Trustee compensation and expenses (Note 2)	2,366
	Payable for administrative services (Note 2)	65
	Payable for distribution fees (Note 2)	8,005
	Unrealized depreciation on forward currency contracts (Note 1)	236,164
	Collateral on securities loaned, at value (Note 1)	408,750
	Other accrued expenses	42,367
	Total liabilities	932,342
	Net assets	$21,358,313

	REPRESENTED BY
	Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)	$18,523,156
	Undistributed net investment income (Note 1)	1,640
	Distributions in excess of gains on investments and foreign currency transactions (Note 1)	(119,191)
	Net unrealized appreciation of investments and assets and liabilities in foreign currencies	2,952,708
	Total — Representing net assets applicable to capital shares outstanding	$21,358,313
	(Continued on next page)

Global Telecommunications Fund 21

	Statement of assets and liabilities (Continued)
	COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
	Net asset value and redemption price per class A share ($14,460,768 divided by 947,742 shares)	$15.26
	Offering price per class A share (100/94.25 of $15.26)*	$16.19
	Net asset value and offering price per class B share ($700,502 divided by 47,015 shares)**	$14.90
	Net asset value and offering price per class C share ($2,361,110 divided by 159,067 shares)**	$14.84
	Net asset value and redemption price per class M share ($89,173 divided by 5,900 shares)	$15.11
	Offering price per class M share (100/96.50 of $15.11)*	$15.66
	Net asset value, offering price and redemption price per class R share ($490,758 divided by 32,390 shares)	$15.15
	Net asset value, offering price and redemption price per class Y share ($3,256,002 divided by 212,597 shares)	$15.32
*	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.

22 Global Telecommunications Fund

	Statement of operations Six months ended 2/28/15 (Unaudited)
	INVESTMENT INCOME
	Dividends (net of foreign tax of $2,279)	$173,928
	Interest (including interest income of $114 from investments in affiliated issuers) (Note 5)	114
	Securities lending (Note 1)	4,044
	Total investment income	178,086
	EXPENSES
	Compensation of Manager (Note 2)	61,900
	Investor servicing fees (Note 2)	20,210
	Custodian fees (Note 2)	5,484
	Trustee compensation and expenses (Note 2)	231
	Distribution fees (Note 2)	31,266
	Administrative services (Note 2)	285
	Auditing and tax fees	22,697
	Blue sky expense	37,074
	Other	11,926
	Fees waived and reimbursed by Manager (Note 2)	(57,609)
	Total expenses	133,464
	Expense reduction (Note 2)	(259)
	Net expenses	133,205
	Net investment income	44,881

	Net realized gain on investments (Notes 1 and 3)	160,289
	Net realized loss on foreign currency transactions (Note 1)	(82,175)
	Net unrealized appreciation of assets and liabilities in foreign currencies during the period	99,425
	Net unrealized appreciation of investments during the period	1,326,385
	Net gain on investments	1,503,924
	Net increase in net assets resulting from operations	$1,548,805

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

Global Telecommunications Fund 23

	Statement of changes in net assets
	INCREASE (DECREASE) IN NET ASSETS	Six months ended 2/28/15*	Year ended 8/31/14
	Operations:
	Net investment income	$44,881	$2,540,705
	Net realized gain on investments and foreign currency transactions	78,114	1,810,651
	Net unrealized appreciation (depreciation) of investments and assets and liabilities in foreign currencies	1,425,810	(1,501,329)
	Net increase in net assets resulting from operations	1,548,805	2,850,027
	Distributions to shareholders (Note 1):
	From ordinary income
	Net investment income
	Class A	(1,517,074)	(104,605)
	Class B	(71,668)	(522)
	Class C	(205,740)	—
	Class M	(6,646)	(123)
	Class R	(42,413)	(2,234)
	Class Y	(378,902)	(37,236)
	Net realized short-term gain on investments
	Class A	(338,282)	(347,571)
	Class B	(17,356)	(15,753)
	Class C	(48,186)	(25,250)
	Class M	(1,550)	(1,307)
	Class R	(9,768)	(9,190)
	Class Y	(82,237)	(93,606)
	From net realized long-term gain on investments
	Class A	(1,010,393)	(730,666)
	Class B	(51,838)	(33,116)
	Class C	(143,923)	(53,082)
	Class M	(4,630)	(2,746)
	Class R	(29,175)	(19,320)
	Class Y	(245,628)	(196,780)
	Increase from capital share transactions (Note 4)	1,516,458	1,408,527
	Total increase (decrease) in net assets	(1,140,146)	2,585,447
	NET ASSETS
	Beginning of period	22,498,459	19,913,012
	End of period (including undistributed net investment income of $1,640 and $2,179,202, respectively)	$21,358,313	$22,498,459
*	Unaudited.

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

24 Global Telecommunications Fund

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Global Telecommunications Fund 25

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 net realized gain on investments	Total distributions	Redemption fees	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, d}	Ratio of net investment income (loss) to average net assets (%)^c	Portfolio turnover (%)
Class A
February 28, 2015**	$17.87	.04^e	1.22	1.26	(2.05)	(1.82)	(3.87)	—	$15.26	8.41*	$14,461	.63*	.25*^e	13*
August 31, 2014	16.68	1.90^f	.52	2.42	(.11)	(1.12)	(1.23)	—	17.87	14.43	15,365	1.29	10.46^f	75
August 31, 2013	14.46	.32	2.26	2.58	(.26)	(.10)	(.36)	—^g	16.68	18.21	14,179	1.36	2.03	63
August 31, 2012	13.13	.35	1.59	1.94	(.45)	(.16)	(.61)	—^g	14.46	15.60	9,831	1.41	2.61	38
August 31, 2011	11.67	.46	1.84	2.30	(.33)	(.51)	(.84)	—^g	13.13	20.01	7,395	1.40	3.42	43
August 31, 2010	10.56	.28	1.22	1.50	(.39)	—	(.39)	—^g	11.67	14.46	3,636	1.48	2.53	80
Class B
February 28, 2015**	$17.44	(.01)^e	1.17	1.16	(1.88)	(1.82)	(3.70)	—	$14.90	8.01*	$701	1.00*	(.09)*^e	13*
August 31, 2014	16.34	1.58^f	.65	2.23	(.01)	(1.12)	(1.13)	—	17.44	13.56	796	2.04	8.84^f	75
August 31, 2013	14.22	.20	2.22	2.42	(.20)	(.10)	(.30)	—^g	16.34	17.29	637	2.11	1.32	63
August 31, 2012	12.94	.23	1.59	1.82	(.38)	(.16)	(.54)	—^g	14.22	14.79	377	2.16	1.79	38
August 31, 2011	11.56	.41	1.77	2.18	(.29)	(.51)	(.80)	—^g	12.94	19.14	201	2.15	3.08	43
August 31, 2010	10.50	.15	1.27	1.42	(.36)	—	(.36)	—^g	11.56	13.65	40	2.23	1.38	80
Class C
February 28, 2015**	$17.46	(.03)^e	1.18	1.15	(1.95)	(1.82)	(3.77)	—	$14.84	7.92*	$2,361	1.00*	(.16)*^e	13*
August 31, 2014	16.34	1.47^f	.77	2.24	—	(1.12)	(1.12)	—	17.46	13.61	1,754	2.04	8.24^f	75
August 31, 2013	14.18	.21	2.21	2.42	(.16)	(.10)	(.26)	—^g	16.34	17.34	1,005	2.11	1.37	63
August 31, 2012	12.94	.24	1.57	1.81	(.41)	(.16)	(.57)	—^g	14.18	14.72	1,049	2.16	1.81	38
August 31, 2011	11.54	.40	1.78	2.18	(.27)	(.51)	(.78)	—^g	12.94	19.17	345	2.15	3.01	43
August 31, 2010	10.50	.27	1.14	1.41	(.37)	—	(.37)	—^g	11.54	13.65	135	2.23	2.43	80
Class M
February 28, 2015**	$17.69	(.01)^e	1.21	1.20	(1.96)	(1.82)	(3.78)	—	$15.11	8.09*	$89	.88*	(.04)*^e	13*
August 31, 2014	16.53	1.73^f	.58	2.31	(.03)	(1.12)	(1.15)	—	17.69	13.91	65	1.79	9.56^f	75
August 31, 2013	14.35	.23	2.25	2.48	(.20)	(.10)	(.30)	—^g	16.53	17.58	45	1.86	1.50	63
August 31, 2012	13.05	.28	1.58	1.86	(.40)	(.16)	(.56)	—^g	14.35	14.98	40	1.91	2.10	38
August 31, 2011	11.60	.50	1.72	2.22	(.26)	(.51)	(.77)	—^g	13.05	19.45	39	1.90	3.71	43
August 31, 2010	10.52	.20	1.25	1.45	(.37)	—	(.37)	—^g	11.60	13.95	12	1.98	1.80	80
Class R
February 28, 2015**	$17.73	.02^e	1.20	1.22	(1.98)	(1.82)	(3.80)	—	$15.15	8.24*	$491	.75*	.13*^e	13*
August 31, 2014	16.57	1.76^f	.61	2.37	(.09)	(1.12)	(1.21)	—	17.73	14.21	536	1.54	9.75^f	75
August 31, 2013	14.39	.28	2.24	2.52	(.24)	(.10)	(.34)	—^g	16.57	17.87	308	1.61	1.76	63
August 31, 2012	13.11	.32	1.58	1.90	(.46)	(.16)	(.62)	—^g	14.39	15.30	117	1.66	2.39	38
August 31, 2011	11.65	.41	1.85	2.26	(.29)	(.51)	(.80)	—^g	13.11	19.73	17	1.65	3.04	43
August 31, 2010	10.54	.26	1.22	1.48	(.37)	—	(.37)	—^g	11.65	14.22	12	1.73	2.32	80
Class Y
February 28, 2015**	$17.96	.06^e	1.22	1.28	(2.10)	(1.82)	(3.92)	—	$15.32	8.55*	$3,256	.51*	.39*^e	13*
August 31, 2014	16.74	1.94^f	.54	2.48	(.14)	(1.12)	(1.26)	—	17.96	14.78	3,983	1.04	10.58^f	75
August 31, 2013	14.52	.38	2.23	2.61	(.29)	(.10)	(.39)	—^g	16.74	18.40	3,739	1.11	2.44	63
August 31, 2012	13.17	.31	1.68	1.99	(.48)	(.16)	(.64)	—^g	14.52	15.99	2,198	1.16	2.30	38
August 31, 2011	11.70	.50	1.83	2.33	(.35)	(.51)	(.86)	—^g	13.17	20.27	729	1.15	3.75	43
August 31, 2010	10.57	.35	1.20	1.55	(.42)	—	(.42)	—^g	11.70	14.87	363	1.23	3.17	80

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

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

Global Telecommunications Fund

Financial highlights (Continued)

* Not annualized.

** Unaudited.

^a Per share net investment income 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 Reflects an involuntary contractual expense limitation in effect during the period. As a result of such limitation, the expenses of each class reflect a reduction of the following amounts (Note 2 ):

	Percentage of average net assets
February 28, 2015	0.29%
August 31, 2014	0.39
August 31, 2013	0.31
August 31, 2012	0.67
August 31, 2011	0.95
August 31, 2010	2.64

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

^e Reflects a dividend received by the fund from a single issuer which amounted to the following amounts:

	Per share	Percentage of average net assets
Class A	$0.04	0.22%
Class B	0.04	0.23
Class C	0.03	0.22
Class M	0.03	0.21
Class R	0.03	0.21
Class Y	0.04	0.22

^f Reflects a dividend received by the fund from a single issuer which amounted to the following amounts:

	Per share	Percentage of average net assets
Class A	$1.77	9.73%
Class B	1.56	8.74
Class C	1.45	8.12
Class M	1.67	9.23
Class R	1.66	9.17
Class Y	1.75	9.54

^g Amount represents less than $0.01 per share.

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

28 Global Telecommunications Fund

Notes to financial statements 2/28/15 (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 September 1, 2014 through February 28, 2015.

Putnam Global Telecommunications Fund (the fund) is a non-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 appreciation. The fund concentrates in the telecommunications industries and invests mainly in common stocks (growth or value stocks or both) of large and midsize companies worldwide that Putnam Management believes have favorable investment potential. Potential investments include companies that develop, manufacture or sell communications services or communications equipment, and companies that bundle video with communications services. The fund may purchase stocks of companies with stock prices that reflect a value lower than that which Putnam Management places on the company. Putnam Management also considers other factors that it believes will cause the stock price to rise. 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 offers class A, class B, class C, class M, class R and class Y shares. 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 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. 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 have 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 for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.

Global Telecommunications Fund 29

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.

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 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

30 Global Telecommunications Fund

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 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 $133,583 on open derivative contracts subject to the Master Agreements. There was no collateral posted by the fund at period end for these 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 $408,750 and the value of securities loaned amounted to $393,035.

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

Global Telecommunications Fund 31

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.

The aggregate identified cost on a tax basis is $19,125,152, resulting in gross unrealized appreciation and depreciation of $3,853,622 and $1,157,999, respectively, or net unrealized appreciation of $2,695,623.

Distributions to shareholders Distributions to shareholders from net investment income are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. 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. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.

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.

Note 2: Management fee, administrative services and other transactions

The fund pays Putnam Management a management 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:

0.780%	of the first $5 billion,
0.730%	of the next $5 billion,
0.680%	of the next $10 billion,
0.630%	of the next $10 billion,
0.580%	of the next $50 billion,
0.560%	of the next $50 billion,
0.550%	of the next $100 billion and
0.545%	of any excess thereafter.

Putnam Management has contractually agreed, through December 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 reduced by $57,609 as a result of this limit.

32 Global Telecommunications Fund

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.

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 that included (1) a per account fee for each direct and underlying non-defined contribution accounts (“retail accounts”) of the fund and each of the other funds in its specified category, which was totaled and then allocated to each fund in the category based on its average daily net assets; (2) a specified rate of the fund’s assets attributable to defined contribution plan accounts; and (3) for the portion of the fund’s fiscal year beginning after January 1, 2015, a specified rate based on the average net assets in retail accounts. Putnam Investor Services has agreed that the aggregate investor servicing fees for each fund’s retail and defined contribution accounts will not exceed an annual rate of 0.320% of the fund’s average assets attributable to such accounts. During the reporting period, the expenses for each class of shares related to investor servicing fees were as follows:

Class A	$13,780
Class B	711
Class C	1,873
Class M	65
Class R	458
Class Y	3,323
Total	$20,210

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 $16 under the expense offset arrangements and by $243 under the brokerage/service arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $10, 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

Global Telecommunications Fund 33

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	$17,075
Class B	3,522
Class C	9,294
Class M	242
Class R	1,133
Total	$31,266

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $4,603 and $93 from the sale of class A and class M shares, respectively, and received no monies and $62 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 $1 and 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 (Long-term)	$2,543,120	$6,183,989
U.S. government securities (Long-term)	—	—
Total	$2,543,120	$6,183,989

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 2/28/15		Year ended 8/31/14
Class A	Shares	Amount	Shares	Amount
Shares sold	146,413	$2,266,104	523,446	$9,649,042
Shares issued in connection with reinvestment of distributions	194,174	2,782,508	49,477	894,546
	340,587	5,048,612	572,923	10,543,588
Shares repurchased	(252,428)	(4,150,398)	(563,541)	(10,174,693)
Net increase	88,159	$898,214	9,382	$368,895

	Six months ended 2/28/15		Year ended 8/31/14
Class B	Shares	Amount	Shares	Amount
Shares sold	7,253	$113,251	20,100	$360,343
Shares issued in connection with reinvestment of distributions	10,054	140,862	2,716	48,178
	17,307	254,113	22,816	408,521
Shares repurchased	(15,933)	(259,765)	(16,196)	(286,474)
Net increase (decrease)	1,374	$(5,652)	6,620	$122,047

34 Global Telecommunications Fund

	Six months ended 2/28/15		Year ended 8/31/14
Class C	Shares	Amount	Shares	Amount
Shares sold	46,859	$700,602	45,666	$815,875
Shares issued in connection with reinvestment of distributions	27,825	388,442	4,411	78,299
	74,684	1,089,044	50,077	894,174
Shares repurchased	(16,075)	(253,124)	(11,122)	(197,218)
Net increase	58,609	$835,920	38,955	$696,956

	Six months ended 2/28/15		Year ended 8/31/14
Class M	Shares	Amount	Shares	Amount
Shares sold	1,649	$24,063	1,428	$25,530
Shares issued in connection with reinvestment of distributions	903	12,826	233	4,176
	2,552	36,889	1,661	29,706
Shares repurchased	(335)	(5,677)	(689)	(11,974)
Net increase	2,217	$31,212	972	$17,732

	Six months ended 2/28/15		Year ended 8/31/14
Class R	Shares	Amount	Shares	Amount
Shares sold	10,269	$157,166	18,375	$331,595
Shares issued in connection with reinvestment of distributions	4,457	63,462	1,444	25,956
	14,726	220,628	19,819	357,551
Shares repurchased	(12,571)	(220,008)	(8,180)	(149,427)
Net increase	2,155	$620	11,639	$208,124

	Six months ended 2/28/15		Year ended 8/31/14
Class Y	Shares	Amount	Shares	Amount
Shares sold	20,411	$321,129	108,263	$1,995,589
Shares issued in connection with reinvestment of distributions	48,896	703,121	18,054	327,495
	69,307	1,024,250	126,317	2,323,084
Shares repurchased	(78,442)	(1,268,106)	(127,866)	(2,328,311)
Net decrease	(9,135)	$(243,856)	(1,549)	$(5,227)

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

	Shares owned	Percentage of ownership	Fair value
Class M	1,578	26.7%	$23,844

Global Telecommunications Fund 35

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*	$43,491	$3,892,118	$2,747,858	$114	$1,187,751
Totals	$43,491	$3,892,118	$2,747,858	$114	$1,187,751

* 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. The fund concentrates a majority of its investments in the Telecommunications sector, which involves more risk than a fund that invests more broadly.

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)

$14,600,000

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	$331,910	Payables	$236,164
Total		$331,910		$236,164

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	$(79,182)	$(79,182)
Total	$(79,182)	$(79,182)

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	$98,961	$98,961
Total	$98,961	$98,961

36 Global Telecommunications Fund

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Global Telecommunications Fund 37

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#	$47,652	$982	$4,424	$26,767	$100,921	$—	$—	$24,102	$79,537	$6,431	$41,094	$331,910
Total Assets	$47,652	$982	$4,424	$26,767	$100,921	$—	$—	$24,102	$79,537	$6,431	$41,094	$331,910
Liabilities:
Forward currency contracts#	1,990	7,665	12,381	26,028	12,734	42,268	31,602	21,601	23,760	51,504	4,631	236,164
Total Liabilities	$1,990	$7,665	$12,381	$26,028	$12,734	$42,268	$31,602	$21,601	$23,760	$51,504	$4,631	$236,164
Total Financial and Derivative Net Assets	$45,662	$(6,683)	$(7,957)	$739	$88,187	$(42,268)	$(31,602)	$2,501	$55,777	$(45,073)	$36,463	$95,746
Total collateral received (pledged)†##	$—	$—	$—	$—	$—	$—	$—	$—	$—	$—	$—
Net amount	$45,662	$(6,683)	$(7,957)	$739	$88,187	$(42,268)	$(31,602)	$2,501	$55,777	$(45,073)	$36,463

†	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.

38 Global Telecommunications Fund

Global Telecommunications Fund 39

Services for shareholders

Investor services

Systematic investment plan Tell us how much you wish to invest regularly — weekly, semimonthly, or monthly — and the amount you choose will be transferred automatically from your checking or savings account. There’s no additional fee for this service, and you can suspend it at any time. This plan may be a great way to save for college expenses or to plan for your retirement.

Please note that regular investing does not guarantee a profit or protect against loss in a declining market. Before arranging a systematic investment plan, consider your financial ability to continue making purchases in periods when prices are low.

Systematic exchange You can make regular transfers from one Putnam fund to another Putnam fund. There are no additional fees for this service, and you can cancel or change your options at any time.

Dividends PLUS You can choose to have the dividend distributions from one of your Putnam funds automatically reinvested in another Putnam fund at no additional charge.

Free exchange privilege You can exchange money between Putnam funds free of charge, as long as they are the same class of shares. A signature guarantee is required if you are exchanging more than $500,000. The fund reserves the right to revise or terminate the exchange privilege.

Reinstatement privilege If you’ve sold Putnam shares or received a check for a dividend or capital gain, you may reinvest the proceeds with Putnam within 90 days of the transaction and they will be reinvested at the fund’s current net asset value — with no sales charge. However, reinstatement of class B shares may have special tax consequences. Ask your financial or tax representative for details.

Check-writing service You have ready access to many Putnam accounts. It’s as simple as writing a check, and there are no special fees or service charges. For more information about the check-writing service, call Putnam or visit our website.

Dollar cost averaging When you’re investing for long-term goals, it’s time, not timing, that counts. Investing on a systematic basis is a better strategy than trying to figure out when the markets will go up or down. This means investing the same amount of money regularly over a long period. This method of investing is called dollar cost averaging. When a fund’s share price declines, your investment dollars buy more shares at lower prices. When it increases, they buy fewer shares. Over time, you will pay a lower average price per share.

For more information

Visit the Individual Investors section at putnam.com A secure section of our website contains complete information on your account, including balances and transactions, updated daily. You may also conduct transactions, such as exchanges, additional investments, and address changes. Log on today to get your password.

Call us toll free at 1-800-225-1581 Ask a helpful Putnam representative or your financial advisor for details about any of these or other services, or see your prospectus.

40 Global Telecommunications 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 Global Telecommunications 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: April 28, 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: April 28, 2015


	By (Signature and Title):


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


	Date: April 28, 2015


	Certifications
	I, Jonathan S. Horwitz, the Principal Executive Officer of the funds listed on Attachment A, certify that:
	1. I have reviewed each report on Form N-CSR of the funds listed on Attachment A:
	2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report;
	3. Based on my knowledge, the financial statements, and other financial information included in each report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in each report;
	4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
	a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared;
	b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of each report based on such evaluation; and
	d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
	5. The registrant’s other certifying officer and I have disclosed to each registrant’s auditors and the audit committee of each registrant’s board of directors (or persons performing the equivalent functions):
	a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant’s ability to record, process, summarize, and report financial information; and
	b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant’s internal control over financial reporting.
	Date: April 28, 2015
	/s/ Jonathan S. Horwitz
	_______________________
	Jonathan S. Horwitz
	Principal Executive Officer
	Certifications
	I, Steven D. Krichmar, the Principal Financial Officer of the funds listed on Attachment A, certify that:
	1. I have reviewed each report on Form N-CSR of the funds listed on Attachment A:
	2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report;
	3. Based on my knowledge, the financial statements, and other financial information included in each report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in each report;
	4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
	a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared;
	b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of each report based on such evaluation; and
	d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
	5. The registrant’s other certifying officer and I have disclosed to each registrant’s auditors and the audit committee of each registrant’s board of directors (or persons performing the equivalent functions):
	a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant’s ability to record, process, summarize, and report financial information; and
	b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant’s internal control over financial reporting.
	Date: April 28, 2015
	/s/ Steven D. Krichmar
	_______________________
	Steven D. Krichmar
	Principal Financial Officer
	Attachment A
	Period (s) ended February 28, 2015
	Putnam Global Health Care Fund
	Putnam High Yield Trust
	Putnam International Capital Opportunities Fund
	Putnam High Income Securities Fund
	Putnam Global Natural Resources Fund
	Putnam Floating Rate Income Fund
	Putnam Small Cap Value Fund
	Putnam Global Consumer Fund
	Putnam Global Energy Fund
	Putnam Global Financials Fund
	Putnam Global Industrials Fund
	Putnam Global Technology Fund
	Putnam Global Telecommunications Fund
	Putnam Emerging Markets Equity Fund
	Putnam Global Utilities Fund
	Putnam Retirement Income Fund Lifestyle 2
	Putnam Retirement Income Fund Lifestyle 3


	Section 906 Certifications
	I, Jonathan S. Horwitz, the Principal Executive Officer of the Funds listed on Attachment A, certify that, to my knowledge:
	1. The form N-CSR of the Funds listed on Attachment A for the period ended February 28, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
	2. The information contained in the Form N-CSR of the Funds listed on Attachment A for the period ended February 28, 2015 fairly presents, in all material respects, the financial condition and results of operations of the Funds listed on Attachment A.
	Date: April 28, 2015
	/s/ Jonathan S. Horwitz
	______________________
	Jonathan S. Horwitz
	Principal Executive Officer
	Section 906 Certifications
	I, Steven D. Krichmar, the Principal Financial Officer of the Funds listed on Attachment A, certify that, to my knowledge:
	1. The form N-CSR of the Funds listed on Attachment A for the period ended February 28, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
	2. The information contained in the Form N-CSR of the Funds listed on Attachment A for the period ended February 28, 2015 fairly presents, in all material respects, the financial condition and results of operations of the Funds listed on Attachment A.
	Date: April 28, 2015
	/s/ Steven D. Krichmar
	______________________
	Steven D. Krichmar
	Principal Financial Officer
	Attachment A
	N-CSR
	Period (s) ended February 28, 2015
	Putnam Global Health Care Fund
	Putnam High Yield Trust
	Putnam International Capital Opportunities Fund
	Putnam High Income Securities Fund
	Putnam Global Natural Resources Fund
	Putnam Floating Rate Income Fund
	Putnam Small Cap Value Fund
	Putnam Global Consumer Fund
	Putnam Global Energy Fund
	Putnam Global Financials Fund
	Putnam Global Industrials Fund
	Putnam Global Technology Fund
	Putnam Global Telecommunications Fund
	Putnam Emerging Markets Equity Fund
	Putnam Global Utilities Fund
	Putnam Retirement Income Fund Lifestyle 2
	Putnam Retirement Income Fund Lifestyle 3