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: April 30, 2015

Date of reporting period : May 1, 2014 — April 30, 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
Asia Pacific
Equity Fund

Annual report
4 | 30 | 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	11
Your fund’s expenses	14
Terms and definitions	16
Other information for shareholders	17
Important notice regarding Putnam’s privacy policy	18
Financial statements	19
Federal tax information	46
About the Trustees	47
Officers	49

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. Investments in a single region may be affected by common economic forces and other factors. In addition, events in any one country within the region may impact the other countries or the region as a whole. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. You can lose money by investing in the fund.

Message from the Trustees

Dear Fellow Shareholder:

With the midway point of 2015 at hand, we note the sixth anniversary of the beginning of the U.S. economic expansion as dated by the National Bureau of Economic Research, which tracks the ups and downs of U.S. business cycles. It has also been six years since the beginning of the current bull market in U.S. stocks.

Both the expansion and the bull market are longer than average, and both appear to owe their longevity, to some degree, to the extraordinary policy measures undertaken by the Federal Reserve. Recently, however, the Fed has been preparing markets for a shift toward tighter monetary policy. Short-term interest rates could increase for the first time since 2006.

While higher interest rates can be a reflection of solid economic conditions, they can also pose a risk to fixed-income investments, and can have a less direct impact on stocks. International markets, which have performed well in early 2015, would also feel the effects of higher rates in the world’s largest economy. In the following pages, your fund’s portfolio manager provides a market outlook in addition to an update on your fund’s performance.

With the possibility that markets could begin to move in different directions, it might be a prudent time to consult your financial advisor to determine whether any adjustments or additions to your portfolio are warranted.

As the owner of a Putnam fund, you have put your investment in the hands of professional managers who pursue a consistent strategy and have experience in navigating changing market conditions. They, and we, share a deep conviction that an active approach based on fundamental research can play a valuable role in your portfolio.

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

June 12, 2015

Performance
snapshot

Annualized total return (%) comparison as of 4/30/15

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 11–13 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.

4     Asia Pacific Equity Fund

Interview with your fund’s portfolio manager

Daniel J. Graña, CFA

Equities in the Asia-Pacific region achieved a solid double-digit return for the 12-month reporting period ended April 30, 2015. What were the primary factors driving their performance?

Interestingly, as we entered the period in the spring of 2014, we actually thought that stocks in the Asia-Pacific region might be in for a bumpy ride. The expectation as we began the period was that the U.S. Federal Reserve would soon begin the process of hiking short-term interest rates and that the normalization of U.S. rates would be unsettling for the region’s equity markets. What we did not fully anticipate was the massive rally that occurred in the Chinese and Hong Kong equity markets when the stock exchanges in these two markets were in essence merged, unleashing a tidal wave of liquidity and driving up stock prices in those markets by considerable margins.

How did the fund perform during the period?

The fund posted a double-digit return for the 12 months, but it underperformed the benchmark, the MSCI All Country Asia ex Japan Index [ND]. There were two big downside themes for the fund during the period. The foremost was energy and the big selloff in oil prices that occurred when Saudi Arabia decided not to reduce its production of oil in spite of weaker global demand and the addition of U.S. shale oil to

Broad market index and fund performance

This comparison shows your fund’s performance in the context of broad market indexes for the 12 months ended 4/30/15. See pages 4 and 11–13 for additional fund performance information. Index descriptions can be found on page 16.

Asia Pacific Equity Fund     5

overall supply. Although the fund’s underweight in energy was beneficial, several of the individual holdings in the portfolio were significant underperformers, and they overwhelmed the benefit of being underweight to the energy sector. The second big theme was the massive rally in the Chinese stock market, and the fact that we did not have positions in some of the best performers in that market during the rally.

Which energy holdings detracted from the fund’s performance versus the benchmark index?

Our positions in two stocks in particular — Ezion Holdings and Ezra Holdings, both Singapore-based providers of offshore oil services — were among the biggest detractors from the fund’s relative performance. Both companies were especially hard hit by the sharp decline in worldwide oil prices because offshore drilling is far more capital intensive than land-based drilling.

How did the fund’s holdings in China affect relative performance?

The Chinese government has been actively engaged in trying to re-stimulate the country’s slowing economic growth. One of the steps taken was to create a cross-border investment vehicle allowing mainland Chinese and Hong Kong investors to invest in each other’s stock markets, effectively linking the Shanghai and Hong Kong stock exchanges. This program injected a huge amount of liquidity into the Chinese stock market, which, along with further government economic stimulus, drove Chinese stocks to a gain of more than 43% during the past 12 months. The fund benefited from its overweight in Chinese stocks, but the fact that we held no position in Hong Kong Exchanges and Clearing, the holding

Country composition

Allocations are shown as a percentage of the fund’s net assets as of 4/30/15. 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     Asia Pacific Equity Fund

“Overall, our view is that Asia Pacific
equity markets are likely to be choppy
through the remainder of 2015.”

Daniel Graña

company of the Hong Kong Stock Exchange, meant that we were not able to fully capitalize on the massive rally during the period. The fund also had no stake in Ping An Insurance Group, a major diversified financial services company in China, which further detracted from relative performance.

Another significant detractor among our Chinese holdings was Sound Global, a water and wastewater treatment company. Our thesis for buying the stock revolved around new efforts by the Beijing government to improve environmental conditions in China. Accounting irregularities were identified on the company’s books, which sent the stock plunging, and trading in the stock was suspended. Sound Global was the fund’s second-biggest detractor during the period.

There was a great disparity during the period between the performance of stocks in China and those in South Korea, the benchmark’s two biggest markets. How do you account for this difference?

In contrast with the strong rally in the Chinese market during the period, South Korean stocks posted rather anemic performance. Historically, South Korean stocks tend to be positively correlated with global growth, so to the extent that the U.S. economy was accelerating and the Chinese government was stimulating its economy, one would have expected South Korean stocks to outperform. Furthermore, one would have expected lower oil prices to have been a boon to the oil-importing, export-based South Korean economy. None of this came to pass during the period, however, largely because of

Top 10 holdings

This table shows the fund’s top 10 holdings by percentage of the fund’s net assets as of 4/30/15. Short-term investments and derivatives, if any, are excluded. Holdings will vary over time.

Asia Pacific Equity Fund     7

competitive pressures from Japan, where the currency effects of a robust quantitative easing program made Japanese exports more attractive to the global markets than South Korean exports. Among the fund’s South Korean holdings that detracted were Daesang, a major purveyor of food products for domestic consumption and regional export, and Hyundai Engineering & Construction, a contractor with projects worldwide, many of them energy-related. We no longer own a position in Hyundai Engineering & Construction or Daesang.

Where did the fund find better results?

The fund fared better in navigating some of the political reform themes in the region, specifically in India and Indonesia, where hopes for political and economic reform drove rallies in both markets. While the fund was overweight in its allocations to both countries, we anticipated that there could be difficulties in how well the Indian and Indonesian governments were able to execute their reform agendas, and we trimmed our exposures in both those markets, reaping solid security selection contributions. The fund also benefited from its decision to underweight its exposure to Malaysia, the only market in the benchmark to post a negative return.

Which individual holdings were the most significant contributors?

The single biggest contribution to relative results came from China Railway Group. We had an overweight in this Chinese infrastructure play. We liked the company because of its focus on building light rail and high-speed rail to serve China’s growing urban populations. China Railway stock has done extraordinarily well, and we sold our position at a profit.

Two other Chinese holdings — China Biologic Products and China Water Affairs Group — were solid contributors as well.

Comparison of top sector shifts

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

8     Asia Pacific Equity Fund

China Biologic manufactures human plasma for use in Chinese hospitals and health-care facilities. We liked the demand dynamics of the industry, bought China Biologic shortly after its initial public offering, and sold it at a profit when it reached our valuation target. Much like China Railway, China Water Affairs was a play on China’s ongoing infrastructure buildout, and we liquidated our position after China Water’s share price exceeded our valuation target.

Favorable security selection in Taiwan also contributed a good deal to the fund’s performance relative to the benchmark, including our overweight position in Inotera Memories, a manufacturer of dynamic random access memory [DRAM] semiconductor chips. We bought Inotera because we believed the memory semiconductor industry was undergoing consolidation and would result in more discipline in industry capacity expansion. In our view, fewer manufacturers would lead to lower capacity, helping to remedy supply overhangs, and translate into better pricing and higher profitability. Inotera validated our thesis, and when the stock reached our valuation target, we liquidated the position and took away a meaningful profit.

What are some of the aspects of your investment process?

The process includes both a top-down and bottom-up approach. I spend a fair amount of time analyzing country dynamics and trying to understand where governments are planning to lead their economies. As such, country selection is an important part of the top-down investment process, and, during the past 12 months, where we chose to place and withhold emphasis was helpful to the fund’s performance versus the benchmark. What we lacked during the period was sufficient exposure to “beta,” meaning that we didn’t own enough of the individual risk assets that tended to do very well in rapidly rising markets during the past year, particularly those that benefited so much from the big stock market rallies in China and Hong Kong.

What is your outlook for Asia Pacific stocks through the remainder of 2015?

We continue to have a constructive view on Chinese stocks. We believe the Chinese government will continue to take constructive steps to help support the world’s second-largest economy. While we have a positive long-term view on India, we believe the government’s reform agenda may see difficulties, so we are watching India closely and currently have only a modest overweight there. We are also watching the reform agenda in Indonesia very closely, but for now we are remaining neutral to slightly underweight in that space.

Looking more broadly, we appear to be getting closer to the point where the U.S. Federal Reserve will begin to normalize interest rates. That matters because, since the beginning of quantitative easing in the United States, many fixed-income investors have been chasing yield in emerging markets. As U.S. interest rates normalize, we think chances are good that there will be a fair amount of market turbulence as some of those assets get moved out of emerging markets and into other investment options. At the same time, however, we think it’s also likely that the European Central Bank and the central banks of China and Japan will continue to pursue their quantitative easing regimes. Overall, our view is that Asia Pacific equity markets are likely to be choppy through the remainder of 2015.

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

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

Asia Pacific Equity Fund     9

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 Daniel J. Graña has an M.B.A. from Kellogg School of Management at Northwestern University and two B.S. degrees from the Massachusetts Institute of Technology. He joined Putnam in 1999 and has been in the investment industry since 1993.

IN THE NEWS

There seems to be momentum in the U.S. equities market, which is now in its third-longest bull run since 1928. Inflation, as measured by the Consumer Price Index, was –0.1% before seasonal adjustment for the 12 months ended March 31, 2015, according to the Bureau of Labor Statistics. Low inflation and a resilient U.S. economy generally provide a supportive environment for equities. However, investors appear to be more cautious than celebratory. Uncertainties include the timing of the Federal Reserve’s decision to implement the first hike in short-term interest rates since 2006 and whether the strong dollar could continue to worsen the trade balance, which could in turn reduce gross domestic product. In March, exports grew by less than 1%, according to the Bureau of Economic Analysis, compared with a 7.7% jump in imports in the same month. For now, the S&P 500 Index continues to hover around the 2100 mark. Investors should keep in mind that equities tend to perform well when short-term rates are rising from low levels. The reason is, in part, because rising rates typically signal an improving economy.

10     Asia Pacific Equity Fund

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended April 30, 2015, the end of its most recent fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance 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 4/30/15

	Class A		Class B		Class C		Class M		Class R	Class Y
(inception dates)	(6/12/09)		(6/12/09)		(6/12/09)		(6/12/09)		(6/12/09)	(6/12/09)
	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	47.75%	39.26%	41.51%	40.51%	41.42%	41.42%	43.51%	38.49%	45.66%	49.93%
Annual average	6.86	5.79	6.08	5.95	6.07	6.07	6.33	5.69	6.60	7.13
5 years	21.49	14.50	17.15	15.23	17.10	17.10	18.50	14.36	20.01	23.04
Annual average	3.97	2.75	3.22	2.88	3.21	3.21	3.45	2.72	3.72	4.23
3 years	23.45	16.35	20.71	17.71	20.67	20.67	21.54	17.29	22.49	24.32
Annual average	7.28	5.18	6.48	5.59	6.46	6.46	6.72	5.46	7.00	7.53
1 year	12.54	6.07	11.68	6.68	11.72	10.72	11.94	8.03	12.21	12.82

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.

Asia Pacific Equity Fund     11

Comparative index returns For periods ended 4/30/15

	MSCI All Country Asia ex Japan Index (ND)	Lipper Pacific Ex Japan Funds category average*
Life of fund	81.74%	80.61%
Annual average	10.69	10.36
5 years	42.26	35.59
Annual average	7.30	6.11
3 years	30.68	26.64
Annual average	9.33	8.03
1 year	17.89	10.57

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

*Over the 1-year, 3-year, 5-year, and life-of-fund periods ended 4/30/15, there were 69, 60, 32, and 28 funds, respectively, in this Lipper category.

Change in the value of a $10,000 investmentb ($9,425 after sales charge)

Cumulative total return from 6/12/09 to 4/30/15

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B shares would have been valued at $14,151 ($14,051 after contingent deferred sales charge). A $10,000 investment in the fund’s class C shares would be valued at $14,142, and no contingent deferred sales charge would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $13,849. A $10,000 investment in the fund’s class R and Y shares would have been valued at $14,566 and $14,993, respectively.

12     Asia Pacific Equity Fund

Fund price and distribution information For the 12-month period ended 4/30/15

Distributions	Class A		Class B	Class C	Class M		Class R	Class Y
Number	1		—	—	—		1	1
Income	$0.029		—	—	—		$0.002	$0.056
Capital gains	—		—	—	—		—	—
Total	$0.029		—	—	—		$0.002	$0.056
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
4/30/14	$10.22	$10.84	$10.02	$9.98	$10.13	$10.50	$10.17	$10.23
4/30/15	11.47	12.17	11.19	11.15	11.34	11.75	11.41	11.48

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.

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)	(6/12/09)		(6/12/09)		(6/12/09)		(6/12/09)		(6/12/09)	(6/12/09)
	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	39.25%	31.25%	33.29%	32.29%	33.30%	33.30%	35.29%	30.55%	37.24%	41.31%
Annual average	5.87	4.80	5.08	4.94	5.08	5.08	5.35	4.70	5.61	6.14
5 years	12.95	6.46	8.85	7.06	8.79	8.79	10.20	6.34	11.54	14.40
Annual average	2.47	1.26	1.71	1.37	1.70	1.70	1.96	1.24	2.21	2.73
3 years	15.85	9.19	13.33	10.33	13.25	13.25	14.21	10.21	15.03	16.80
Annual average	5.03	2.97	4.26	3.33	4.24	4.24	4.53	3.29	4.78	5.31
1 year	5.45	–0.61	4.56	–0.44	4.58	3.58	4.91	1.24	5.10	5.72

See the discussion following the fund performance table on page 11 for information about the calculation of fund performance.

Asia Pacific Equity Fund     13

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 4/30/14*	1.55%	2.30%	2.30%	2.05%	1.80%	1.30%
Total annual operating expenses for the fiscal year ended 4/30/14	2.58%	3.33%	3.33%	3.08%	2.83%	2.33%
Annualized expense ratio for the six-month period ended 4/30/15†‡	1.53%	2.28%	2.28%	2.03%	1.78%	1.28%

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 8/30/15.

†For the fund’s most recent fiscal half year; may differ from expense ratios based on one-year data in the financial highlights.

‡Includes a decrease of 0.04% from annualizing the performance fee adjustment for the six months ended 4/30/15.

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in the fund from November 1, 2014, to April 30, 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*†	$7.84	$11.66	$11.66	$10.39	$9.11	$6.56
Ending value (after expenses)	$1,066.00	$1,062.70	$1,061.90	$1,063.80	$1,064.60	$1,067.70

*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 4/30/15. 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.

14     Asia Pacific Equity Fund

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended April 30, 2015, use the following calculation method. To find the value of your investment on November 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*†	$7.65	$11.38	$11.38	$10.14	$8.90	$6.41
Ending value (after expenses)	$1,017.21	$1,013.49	$1,013.49	$1,014.73	$1,015.97	$1,018.45

*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 4/30/15. The expense ratio may differ for each share class.

†Expenses are calculated by multiplying the expense ratio by the average account value for the 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.

Asia Pacific Equity Fund     15

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 All Country Asia ex Japan Index (ND) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of Asia, excluding Japan.

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

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

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

16     Asia Pacific Equity Fund

Other information for shareholders

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 Securities and Exchange Commission (SEC) 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 April 30, 2015, Putnam employees had approximately $498,000,000 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.

Asia Pacific Equity Fund     17

Important notice regarding Putnam’s privacy policy

In order to conduct business with our shareholders, we must obtain certain personal information such as account holders’ names, addresses, Social Security numbers, and dates of birth. Using this information, we are able to maintain accurate records of accounts and transactions.

It is our policy to protect the confidentiality of our shareholder information, whether or not a shareholder currently owns shares of our funds. In particular, it is our policy not to sell information about you or your accounts to outside marketing firms. We have safeguards in place designed to prevent unauthorized access to our computer systems and procedures to protect personal information from unauthorized use.

Under certain circumstances, we must share account information with outside vendors who provide services to us, such as mailings and proxy solicitations. In these cases, the service providers enter into confidentiality agreements with us, and we provide only the information necessary to process transactions and perform other services related to your account. Finally, it is our policy to share account information with your financial representative, if you’ve listed one on your Putnam account.

18     Asia Pacific Equity Fund

Financial statements

These sections of the report, as well as the accompanying Notes, preceded by the Report of Independent Registered Public Accounting Firm, 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 year.

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.

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.

Asia Pacific Equity Fund     19

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders
Putnam Funds Trust

We have audited the accompanying statement of assets and liabilities of Putnam Asia Pacific Equity Fund (the fund), a series of Putnam Funds Trust, including the fund’s portfolio, as of April 30, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Putnam Asia Pacific Equity Fund as of April 30, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
June 12, 2015

20     Asia Pacific Equity Fund

The fund’s portfolio 4/30/15

COMMON STOCKS (91.0%)*	Shares	Value
Auto components (0.5%)
Apollo Tyres, Ltd. (India)	18,946	$51,588
		51,588
Automobiles (1.2%)
Tata Motors, Ltd. (India)	13,754	109,677
Tata Motors, Ltd. Interim Line (India) F	757	6,058
		115,735
Banks (17.0%)
Axis Bank, Ltd. (India)	10,585	94,441
Bank of China, Ltd. (China)	231,000	158,671
BOC Hong Kong Holdings, Ltd. (Hong Kong)	39,000	151,517
China Construction Bank Corp. (China)	326,000	317,261
CTBC Financial Holding Co., Ltd. (Taiwan)	252,993	196,912
DBS Group Holdings, Ltd. (Singapore)	5,000	79,475
Federal Bank, Ltd. (India)	41,287	85,304
Industrial & Commercial Bank of China, Ltd. (China)	212,000	184,174
King’s Town Bank Co., Ltd. (Taiwan)	163,000	167,216
United Overseas Bank, Ltd. (Singapore)	14,000	258,441
		1,693,412
Capital markets (1.2%)
BGP Holdings PLC (Malta) F	132,965	149
China Cinda Asset Management Co., Ltd. (China) †	194,000	115,466
Yuanta Financial Holding Co., Ltd. (Taiwan)	1	1
		115,616
Chemicals (2.4%)
AK Holdings, Inc. (South Korea)	850	67,397
LG Chemical, Ltd. (South Korea)	332	84,549
Soulbrain Co., Ltd. (South Korea)	2,143	82,801
		234,747
Commercial services and supplies (0.6%)
KEPCO Plant Service & Engineering Co., Ltd. (South Korea)	617	55,926
		55,926
Construction and engineering (3.0%)
China Singyes Solar Technologies Holdings, Ltd. (China)	49,000	80,507
IRB Infrastructure Developers, Ltd. (India)	45,486	166,712
KEPCO Engineering & Construction Co., Inc. (South Korea)	1,216	47,131
		294,350
Consumer finance (0.5%)
Shriram Transport Finance Co., Ltd. (India)	3,528	53,840
		53,840
Distributors (0.3%)
Jardine Cycle & Carriage, Ltd. (Singapore)	1,000	30,581
		30,581
Diversified financial services (2.4%)
Chailease Holding Co., Ltd. (Taiwan)	49,400	135,423
Far East Horizon, Ltd. (China)	101,000	106,920
		242,343
Diversified telecommunication services (0.9%)
PCCW, Ltd. (Hong Kong)	138,564	92,369
		92,369
Electric utilities (1.2%)
Korea Electric Power Corp. (South Korea)	1,627	70,642
Malakoff Corp. Bhd (Malaysia) †	105,100	53,118
		123,760

Asia Pacific Equity Fund     21

COMMON STOCKS (91.0%)* cont.	Shares	Value
Electrical equipment (1.8%)
Jiangnan Group, Ltd. (China)	302,000	$96,839
LS Industrial Systems Co., Ltd. (South Korea)	1,420	78,393
		175,232
Electronic equipment, instruments, and components (1.9%)
Hollysys Automation Technologies, Ltd. (China)	5,090	111,827
Wasion Group Holdings, Ltd. (Hong Kong)	46,000	72,612
		184,439
Energy equipment and services (1.3%)
Ezion Holdings, Ltd. (Singapore)	102,240	92,515
Ezra Holdings, Ltd. (Singapore) †	113,360	37,494
		130,009
Food products (0.7%)
WH Group, Ltd. 144A (Hong Kong) †	99,500	69,445
		69,445
Health-care providers and services (1.3%)
CHC Healthcare Group (Taiwan)	37,000	74,109
China Pioneer Pharma Holdings, Ltd. (China)	76,000	59,053
		133,162
Hotels, restaurants, and leisure (1.4%)
Grand Korea Leisure Co., Ltd. (South Korea)	2,241	80,440
Minor International PCL (Thailand)	56,980	57,041
		137,481
Household durables (1.6%)
Haier Electronics Group Co., Ltd. (China)	24,000	69,088
Techtronic Industries Co., Ltd. (Hong Kong)	26,500	94,148
		163,236
Independent power and renewable electricity producers (3.1%)
China Resources Power Holdings Co., Ltd. (China)	52,000	157,072
First Gen Corp. (Philippines)	87,000	54,824
Huadian Fuxin Energy Corp, Ltd. (China)	172,000	92,663
		304,559
Industrial conglomerates (1.6%)
DMCI Holdings, Inc. (Philippines)	248,400	83,627
JG Summit Holdings, Inc. (Philippines)	47,920	77,019
		160,646
Insurance (5.4%)
AIA Group, Ltd. (Hong Kong)	48,000	320,413
China Life Insurance Co., Ltd. (China)	14,000	67,900
Hanwha Life Insurance Co., Ltd. (South Korea)	10,248	75,808
Korean Reinsurance Co. (South Korea)	6,644	73,753
		537,874
Internet and catalog retail (1.1%)
Ctrip.com International, Ltd. ADR (China) †	1,534	97,685
FabFurnish GmbH (acquired 8/2/13, cost $1) (Private) (Brazil) † ΔΔ F	1	1
Global Fashion Holding SA (acquired 8/2/13, cost $21,942) (Private) (Brazil) † ΔΔ F	518	12,083
New Bigfoot Other Assets GmbH (acquired 8/2/13, cost $1) (Private) (Brazil) † ΔΔ F	1	1
New Middle East Other Assets GmbH (acquired 8/2/13, cost $1) (Private) (Brazil) † ΔΔ F	1	1
		109,771
Internet software and services (6.8%)
Alibaba Group Holding, Ltd. ADR (China) †	1,490	121,122
Baidu, Inc. ADR (China) †	755	151,211

22     Asia Pacific Equity Fund

COMMON STOCKS (91.0%)* cont.	Shares	Value
Internet software and services cont.
NetEase, Inc. ADR (China)	727	$93,194
Tencent Holdings, Ltd. (China)	14,800	305,656
		671,183
IT Services (2.1%)
HCL Technologies, Ltd. (India)	6,404	88,748
Infosys, Ltd. (India)	3,841	117,542
		206,290
Media (0.6%)
Television Broadcasts, Ltd. (Hong Kong)	9,300	60,650
		60,650
Metals and mining (1.6%)
Hindustan Zinc, Ltd. (India)	23,523	62,564
Vale Indonesia Tbk PT (Indonesia)	451,400	97,230
		159,794
Multiline retail (0.9%)
Hyundai Department Store Co., Ltd. (South Korea)	626	84,874
		84,874
Pharmaceuticals (0.5%)
Hua Han Bio-Pharmaceutical Holdings, Ltd. (China)	196,000	53,804
		53,804
Real estate management and development (4.2%)
China Overseas Land & Investment, Ltd. (China)	34,000	142,019
China Resources Land, Ltd. (China)	28,000	101,867
Kawasan Industri Jababeka Tbk PT (Indonesia)	3,153,600	68,875
KWG Property Holding, Ltd. (China)	84,000	85,096
Supalai PCL (Thailand)	34,700	21,053
		418,910
Semiconductors and semiconductor equipment (8.3%)
Advanced Semiconductor Engineering, Inc. (Taiwan)	94,000	133,215
SK Hynix, Inc. (South Korea)	5,253	224,579
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)	97,000	468,296
		826,090
Software (1.0%)
NCSoft Corp. (South Korea)	504	96,020
		96,020
Technology hardware, storage, and peripherals (6.5%)
Samsung Electronics Co., Ltd. (South Korea)	439	575,755
TCL Communication Technology Holdings, Ltd. (China)	71,000	75,633
		651,388
Thrifts and mortgage finance (1.4%)
Dewan Housing Finance Corp., Ltd. (India)	19,628	137,737
		137,737
Transportation infrastructure (0.5%)
Adani Ports & Special Economic Zone, Ltd. (India)	10,657	53,218
		53,218
Water utilities (0.7%)
Sound Global, Ltd. (China) † F	119,000	74,262
		74,262
Wireless telecommunication services (3.5%)
Bharti Infratel, Ltd. (India)	10,262	64,727
China Mobile, Ltd. (China)	19,500	278,823
		343,550
Total common stocks (cost $7,942,641)		$9,047,891

Asia Pacific Equity Fund     23

WARRANTS (3.4%)* †	Expiration date	Strike price	Warrants	Value
China State Construction Engineering Corp., Ltd. 144A (China)	4/16/16	$0.00	43,400	$76,266
Daqin Railway Co., Ltd. 144A (China)	3/31/16	0.00	40,052	90,205
Qingdao Haier Co., Ltd. 144A (China)	3/16/17	0.00	16,800	73,453
Shanghai Automotive Co. 144A (China)	2/3/16	0.00	22,000	95,799
Total warrants (cost $280,897)				$335,723

INVESTMENT COMPANIES (2.2%)*	Shares	Value
ChinaAMC CSI 300 Index ETF (China)	12,200	$93,033
Market Vectors Vietnam ETF (Vietnam)	7,150	128,915
Total investment companies (cost $205,062)		$221,948

PURCHASED OPTIONS OUTSTANDING (0.1%)*	Expiration date/strike price	Contract amount	Value
iShares MSCI Emerging Markets ETF (Put)	Jun-15/$35.00	$115,138	$7,453
Total purchased options outstanding (cost $77,142)			$7,453

SHORT-TERM INVESTMENTS (3.3%)*	Shares	Value
Putnam Short Term Investment Fund 0.07% L	323,549	$323,549
Total short-term investments (cost $323,549)		$323,549

TOTAL INVESTMENTS
Total investments (cost $8,829,291)	$9,936,564

Key to holding’s abbreviations
ADR	American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
bp	Basis points
ETF	Exchange Traded Fund

	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 May 1, 2014 through April 30, 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 $9,944,875.
†	This security is non-income-producing.
ΔΔ	This security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $12,086, or 0.1% of net assets.
F	This security is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities’ valuation inputs. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio (Note 1).
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.

24     Asia Pacific Equity Fund

At the close of the reporting period, the fund maintained liquid assets totaling $692,690 to cover certain derivative contracts and the settlement of certain securities.

144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

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):

China	36.5%
South Korea	17.1
Taiwan	11.8
India	11.0
Hong Kong	8.7
Singapore	5.0
United States	3.3
Philippines	2.2
Indonesia	1.7
Vietnam	1.3
Thailand	0.8
Malaysia	0.5
Brazil	0.1
Total	100.0%

WRITTEN OPTIONS OUTSTANDING at 4/30/15 (premiums $51,414)
	Expiration date/strike price	Contract amount	Value
iShares MSCI Emerging Markets ETF (Put)	Jun-15/$33.00	$115,138	$2,880
WisdomTree India Earnings ETF (Call)	Jun-15/23.00	11,723	1,757
Total			$4,637

OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 4/30/15
Swap counterparty/ Notional amount		Upfront premium received (paid)	Termination   date	Payments received (paid) by fund per annum	Total return received by or paid by fund	Unrealized appreciation/ (depreciation)
UBS AG
baskets	489	$—	4/14/16	(3 month USD-LIBOR-BBA plus 55 bp)	A basket (UBSPUTNH) of common stocks	$(253)
Total		$—	$(253)

Asia Pacific Equity Fund     25

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	$154,726	$587,104	$12,086
Consumer staples	—	69,445	—
Energy	—	130,009	—
Financials	21,053	3,178,530	149
Health care	—	186,966	—
Industrials	—	739,372	—
Information technology	477,354	2,158,056	—
Materials	—	394,541	—
Telecommunication services	—	435,919	—
Utilities	—	502,581	—
Total common stocks	653,133	8,382,523	12,235
Investment companies	128,915	93,033	—
Purchased options outstanding	—	7,453	—
Warrants	—	335,723	—
Short-term investments	323,549	—	—
Totals by level	$1,105,597	$8,818,732	$12,235

		Valuation inputs
	Other financial instruments:	Level 1	Level 2	Level 3
	Written options outstanding	$—	$(4,637)	$—
	Total return swap contracts	—	(253)	—
	Totals by level	$—	$(4,890)	$—
*Common stock classifications are presented at the sector level, which may differ from the fund’s portfolio presentation.
	During the reporting period, transfers within the fair value hierarchy, if any, (other than certain transfers involving non-U.S. equity securities as described in Note 1) did not represent, in the aggregate, more than 1% of the fund’s net assets measured as of the end of the period.
	At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund’s net assets and were not considered a significant portion of the fund’s portfolio.

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

26     Asia Pacific Equity Fund

Statement of assets and liabilities 4/30/15
ASSETS
Investment in securities, at value (Note 1):
Unaffiliated issuers (identified cost $8,505,742)	$9,613,015
Affiliated issuers (identified cost $323,549) (Notes 1 and 5)	323,549
Foreign currency (cost $123,221) (Note 1)	125,680
Dividends, interest and other receivables	12,515
Receivable for shares of the fund sold	52,705
Receivable for investments sold	373,398
Receivable from Manager (Note 2)	33,004
Prepaid assets	4,841
Total assets	10,538,707
LIABILITIES
Payable for investments purchased	520,238
Payable for shares of the fund repurchased	6,603
Payable for custodian fees (Note 2)	9,982
Payable for investor servicing fees (Note 2)	178
Payable for Trustee compensation and expenses (Note 2)	899
Payable for administrative services (Note 2)	28
Payable for distribution fees (Note 2)	2,305
Payable for auditing and tax fees	36,430
Unrealized depreciation on OTC swap contracts (Note 1)	253
Written options outstanding, at value (premiums $51,414) (Notes 1 and 3)	4,637
Other accrued expenses	12,279
Total liabilities	593,832
Net assets	$9,944,875
REPRESENTED BY
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)	$9,160,927
Undistributed net investment income (Note 1)	35,696
Accumulated net realized loss on investments and foreign currency transactions (Note 1)	(407,824)
Net unrealized appreciation of investments and assets and liabilities in foreign currencies	1,156,076
Total — Representing net assets applicable to capital shares outstanding	$9,944,875
(Continued on next page)

Asia Pacific Equity Fund     27

	Statement of assets and liabilities (Continued)
	COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
	Net asset value and redemption price per class A share ($7,871,311 divided by 686,079 shares)	$11.47
	Offering price per class A share (100/94.25 of $11.47)*	$12.17
	Net asset value and offering price per class B share ($271,775 divided by 24,297 shares)**	$11.19
	Net asset value and offering price per class C share ($515,722 divided by 46,251 shares)**	$11.15
	Net asset value and redemption price per class M share ($58,030 divided by 5,117 shares)	$11.34
	Offering price per class M share (100/96.50 of $11.34)*	$11.75
	Net asset value, offering price and redemption price per class R share ($141,125 divided by 12,367 shares)	$11.41
	Net asset value, offering price and redemption price per class Y share ($1,086,912 divided by 94,655 shares)	$11.48
*	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.

28     Asia Pacific Equity Fund

Statement of operations Year ended 4/30/15
INVESTMENT INCOME
Dividends (net of foreign tax of $13,845)	$169,776
Interest (including interest income of $253 from investments in affiliated issuers) (Note 5)	253
Total investment income	170,029
EXPENSES
Compensation of Manager (Note 2)	81,326
Investor servicing fees (Note 2)	18,525
Custodian fees (Note 2)	35,156
Trustee compensation and expenses (Note 2)	361
Distribution fees (Note 2)	26,572
Administrative services (Note 2)	225
Reports to shareholders	18,209
Auditing and tax fees	55,962
Blue sky expense	71,813
Other	2,925
Fees waived and reimbursed by Manager (Note 2)	(166,051)
Total expenses	145,023
Expense reduction (Note 2)	(3,160)
Net expenses	141,863
Net investment income	28,166
Net realized gain on investments (net of foreign tax of $21,019) (Notes 1 and 3)	768,539
Net realized loss on foreign currency transactions (Note 1)	(12,931)
Net realized gain on written options (Notes 1 and 3)	50,854
Net unrealized appreciation of assets and liabilities in foreign currencies during the year	2,168
Net unrealized appreciation of investments, swap contracts and written options during the year	233,080
Net gain on investments	1,041,710
Net increase in net assets resulting from operations	$1,069,876

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

Asia Pacific Equity Fund     29

Statement of changes in net assets
INCREASE (DECREASE) IN NET ASSETS	Year ended 4/30/15	Year ended 4/30/14
Operations:
Net investment income	$28,166	$48,319
Net realized gain (loss) on investments and foreign currency transactions	806,462	(137,112)
Net unrealized appreciation of investments and assets and liabilities in foreign currencies	235,248	80,105
Net increase (decrease) in net assets resulting from operations	1,069,876	(8,688)
Distributions to shareholders (Note 1):
From ordinary income
Net investment income
Class A	(19,922)	(21,273)
Class R	(21)	(167)
Class Y	(5,189)	(3,728)
Increase (decrease) from capital share transactions (Note 4)	3,026	(116,717)
Total increase (decrease) in net assets	1,047,770	(150,573)
NET ASSETS
Beginning of year	8,897,105	9,047,678
End of year (including undistributed net investment income of $35,696 and accumulated net investment loss of $22,741, respectively)	$9,944,875	$8,897,105

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

30     Asia Pacific Equity Fund

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Asia Pacific Equity Fund     31

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	From return of capital	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
April 30, 2015	$10.22	.04	1.24	1.28	(.03)	—	—	(.03)	—	$11.47	12.54	$7,871	1.53	.34	135
April 30, 2014	10.18	.06	.01	.07	(.03)	—	—	(.03)	—	10.22	.67	7,056	1.55	.59	108
April 30, 2013	9.36	.04	.80	.84	(.02)	—	—	(.02)	—e	10.18	8.96	7,539	1.60	.44	117
April 30, 2012	13.00	.04	(2.34)	(2.30)	(.02)	(1.29)	(.03)	(1.34)	—e	9.36	(16.04)	6,556	1.63	.43	130
April 30, 2011	11.69	.08	1.89	1.97	(.12)	(.55)	—	(.67)	.01	13.00	17.20	9,247	1.72	.65	87
Class B
April 30, 2015	$10.02	(.04)	1.21	1.17	—	—	—	—	—	$11.19	11.68	$272	2.28	(.40)	135
April 30, 2014	10.02	(.02)	.02	—e	—	—	—	—	—	10.02	—f	237	2.30	(.19)	108
April 30, 2013	9.27	(.02)	.77	.75	—	—	—	—	—e	10.02	8.09	227	2.35	(.25)	117
April 30, 2012	12.91	(.04)	(2.29)	(2.33)	—	(1.29)	(.02)	(1.31)	—e	9.27	(16.53)	204	2.38	(.35)	130
April 30, 2011	11.64	(.01)	1.87	1.86	(.05)	(.55)	—	(.60)	.01	12.91	16.26	223	2.47	(.09)	87
Class C
April 30, 2015	$9.98	(.05)	1.22	1.17	—	—	—	—	—	$11.15	11.72	$516	2.28	(.47)	135
April 30, 2014	9.98	(.01)	.01	—e	—	—	—	—	—	9.98	—f	395	2.30	(.08)	108
April 30, 2013	9.24	(.04)	.78	.74	—	—	—	—	—e	9.98	8.01	468	2.35	(.45)	117
April 30, 2012	12.88	(.05)	(2.28)	(2.33)	—	(1.29)	(.02)	(1.31)	—e	9.24	(16.57)	294	2.38	(.45)	130
April 30, 2011	11.63	(.01)	1.87	1.86	(.07)	(.55)	—	(.62)	.01	12.88	16.32	277	2.47	(.06)	87
Class M
April 30, 2015	$10.13	(.02)	1.23	1.21	—	—	—	—	—	$11.34	11.94	$58	2.03	(.20)	135
April 30, 2014	10.10	.01	.02	.03	—	—	—	—	—	10.13	.30	44	2.05	.06	108
April 30, 2013	9.33	(.01)	.78	.77	—	—	—	—	—e	10.10	8.25	42	2.10	(.12)	117
April 30, 2012	12.96	(.01)	(2.31)	(2.32)	—	(1.29)	(.02)	(1.31)	—e	9.33	(16.38)	34	2.13	(.08)	130
April 30, 2011	11.66	.02	1.88	1.90	(.06)	(.55)	—	(.61)	.01	12.96	16.60	48	2.22	.20	87
Class R
April 30, 2015	$10.17	.01	1.23	1.24	—e	—	—	—e	—	$11.41	12.21	$141	1.78	.09	135
April 30, 2014	10.13	.02	.03	.05	(.01)	—	—	(.01)	—	10.17	.54	120	1.80	.17	108
April 30, 2013	9.33	.02	.78	.80	—	—	—	—	—e	10.13	8.57	81	1.85	.20	117
April 30, 2012	12.97	.01	(2.31)	(2.30)	(.02)	(1.29)	(.03)	(1.34)	—e	9.33	(16.19)	71	1.88	.10	130
April 30, 2011	11.69	.05	1.88	1.93	(.11)	(.55)	—	(.66)	.01	12.97	16.90	64	1.97	.43	87
Class Y
April 30, 2015	$10.23	.07	1.24	1.31	(.06)	—	—	(.06)	—	$11.48	12.82	$1,087	1.28	.62	135
April 30, 2014	10.18	.09	.01	.10	(.05)	—	—	(.05)	—	10.23	1.01	1,044	1.30	.85	108
April 30, 2013	9.37	.06	.79	.85	(.04)	—	—	(.04)	—e	10.18	9.09	692	1.35	.64	117
April 30, 2012	13.02	.07	(2.34)	(2.27)	(.04)	(1.29)	(.05)	(1.38)	—e	9.37	(15.80)	602	1.38	.66	130
April 30, 2011	11.70	.12	1.89	2.01	(.15)	(.55)	—	(.70)	.01	13.02	17.53	740	1.47	.95	87

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

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

32 Asia Pacific Equity Fund Asia Pacific Equity Fund 33

Financial highlights (Continued)

^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. For the period ended April 30, 2012, the amount also includes the waiver, by Putnam Management, of certain proxy-related costs. As a result of such limitation and/or waivers, the expenses of each class reflect a reduction of the following amounts (Note 2):

	Percentage of average net assets
April 30, 2015	1.79%
April 30, 2014	1.03
April 30, 2013	0.99
April 30, 2012	1.16
April 30, 2011	1.81

^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  Amount represents less than $0.01 per share.

^f  Amount represents less than 0.01%.

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

34     Asia Pacific Equity Fund

Notes to financial statements 4/30/15

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 May 1, 2014 through April 30, 2015.

Putnam Asia Pacific Equity Fund (the fund) is a diversified series of Putnam Funds Trust (the Trust), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The goal of the fund is to seek long-term capital appreciation. The fund invests mainly in equity securities (growth or value stocks or both) of Asian or Pacific Basin companies of any size that Putnam Management believes have favorable investment potential. The fund may invest in both developed countries and emerging markets, although under normal circumstances the fund will focus on emerging markets. This means the fund invests primarily in equity securities of Asian or Pacific Basin companies other than Japanese, Australian or New Zealand companies, although the fund may invest in companies in those countries. 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.

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

Asia Pacific Equity Fund     35

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 amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign

36     Asia Pacific Equity Fund

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.

Options contracts The fund uses options contracts to hedge against changes in values of securities it owns, owned or expects to own and to manage downside risks.

The potential risk to the fund is that the change in value of options contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.

Exchange-traded options are valued at the last sale price or, if no sales are reported, the last bid price for purchased options and the last ask price for written options. OTC traded options are valued using prices supplied by dealers.

Options on swaps are similar to options on securities except that the premium paid or received is to buy or grant the right to enter into a previously agreed upon interest rate or credit default contract. Forward premium swap option contracts include premiums that have extended settlement dates. The delayed settlement of the premiums is factored into the daily valuation of the option contracts. In the case of interest rate cap and floor contracts, in return for a premium, ongoing payments between two parties are based on interest rates exceeding a specified rate, in the case of a cap contract, or falling below a specified rate in the case of a floor contract.

Written option contracts outstanding at period end, if any, are listed after the fund’s portfolio.

Total return swap contracts The fund entered into OTC total return swap contracts, which are arrangements to exchange a market-linked return for a periodic payment, both based on a notional principal amount, to gain exposure to a basket of securities.

To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

OTC total return swap contracts outstanding, including their respective notional amounts 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

Asia Pacific Equity Fund     37

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 $253 on open derivative contracts subject to the Master Agreements. There was no collateral posted by the fund at period end for these agreements.

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

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

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

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

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

Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred for an unlimited period and the carry forwards will retain their character as either short-term or long-term capital losses. At April 30, 2015, the fund had the following capital loss carryovers available, to the extent allowed by the Code, to offset future net capital gain, if any:

Loss carryover
Short-term	Long-term	Total
$341,215	$—	$341,215

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. These differences include temporary and/or permanent differences from foreign currency gains and losses, foreign taxes paid on capital gains and both realized and unrealized gains and losses on passive foreign investment companies. 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. At the close of the reporting period, the fund reclassified $55,403 to decrease accumulated net investment loss and $55,403 to increase accumulated net realized loss.

38     Asia Pacific Equity Fund

The tax basis components of distributable earnings and the federal tax cost as of the close of the reporting period were as follows:

Unrealized appreciation	$1,405,581
Unrealized depreciation	(364,916)
Net unrealized appreciation	1,040,665
Undistributed ordinary income	35,442
Capital loss carryforward	(341,215)
Cost for federal income tax purposes	$8,895,899

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

1.080%	of the first $5 billion,
1.030%	of the next $5 billion,
0.980%	of the next $10 billion,
0.930%	of the next $10 billion,
0.880%	of the next $50 billion,
0.860%	of the next $50 billion,
0.850%	of the next $100 billion and
0.845%	of any excess thereafter.

In addition, the monthly management fee consists of the monthly base fee plus or minus a performance adjustment for the month. The performance adjustment is determined based on performance over the thirty-six month period then ended. Each month, the performance adjustment is calculated by multiplying the performance adjustment rate and the fund’s average net assets over the performance period and the result is divided by twelve. The resulting dollar amount is added to, or subtracted from the base fee for that month. The performance adjustment rate is equal to 0.03 multiplied by the difference between the fund’s annualized performance (measured by the fund’s class A shares) and the annualized performance of the benchmark indices described below, each measured over the performance period. The maximum annualized performance adjustment rate is +/– 0.21%. The monthly base fee is determined based on the fund’s average net assets for the month, while the performance adjustment is determined based on the fund’s average net assets over the performance period of up to thirty-six months. This means it is possible that, if the fund underperforms significantly over the performance period, and the fund’s assets have declined significantly over that period, the negative performance adjustment may exceed the base fee. In this event, Putnam Management would make a payment to the fund.

Effective July 1, 2011, the fund’s benchmark index is the MSCI All Country Asia ex Japan Index (ND). Before July 1, 2011, the fund’s benchmark index was the MSCI All Country Asia Pacific Index (ND). Because the performance adjustment is based on a rolling thirty-six month performance period, there is a transition period during which the fund’s performance is compared to a composite index that reflects the performance of the previous index (MSCI All Country Asia Pacific Index (ND)) for the portion of the performance period before July 1, 2011, and the performance of the new index (MSCI All Country Asia ex Japan Index (ND)) for the remainder of the period.

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

For the reporting period, the base fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.919% of the fund’s average net assets before a decrease of $3,731 (0.040% of the fund’s average net assets) based on performance.

Putnam Management has contractually agreed, through August 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,

Asia Pacific Equity Fund     39

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 $166,051 as a result of this limit.

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

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

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

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 account (“retail account”) 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	$14,765
Class B	498
Class C	929
Class M	102
Class R	238
Class Y	1,993
Total	$18,525

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 $18 under the expense offset arrangements and by $3,142 under the brokerage/service arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $5, 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.

40     Asia Pacific Equity Fund

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

Class A	$18,453
Class B	2,489
Class C	4,652
Class M	382
Class R	596
Total	$26,572

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $1,271 and $39 from the sale of class A and class M shares, respectively, and received $346 and $14 in contingent deferred sales charges from redemptions of class B and class C shares, respectively.

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

Note 3: Purchases and sales of securities

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

	Cost of purchases	Proceeds from sales
Investments in securities (Long-term)	$12,051,991	$11,971,073
U.S. government securities (Long-term)	—	—
Total	$12,051,991	$11,971,073

Written option transactions during the reporting period are summarized as follows:

	Written option contract amounts	Written option premiums
Written options outstanding at the beginning of the reporting period	$13,626	$14,056
Options opened	297,146	118,357
Options exercised	—	—
Options expired	(93,796)	(44,147)
Options closed	(90,115)	(36,852)
Written options outstanding at the end of the reporting period	$126,861	$51,414

Asia Pacific Equity Fund     41

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:

	Year ended 4/30/15		Year ended 4/30/14
Class A	Shares	Amount	Shares	Amount
Shares sold	82,320	$902,827	104,839	$1,056,216
Shares issued in connection with reinvestment of distributions	742	7,731	940	9,397
	83,062	910,558	105,779	1,065,613
Shares repurchased	(87,153)	(930,981)	(156,441)	(1,527,365)
Net decrease	(4,091)	$(20,423)	(50,662)	$(461,752)

	Year ended 4/30/15		Year ended 4/30/14
Class B	Shares	Amount	Shares	Amount
Shares sold	6,185	$66,609	3,584	$35,090
Shares issued in connection with reinvestment of distributions	—	—	—	—
	6,185	66,609	3,584	35,090
Shares repurchased	(5,582)	(59,463)	(2,539)	(25,115)
Net increase	603	$7,146	1,045	$9,975

	Year ended 4/30/15		Year ended 4/30/14
Class C	Shares	Amount	Shares	Amount
Shares sold	22,990	$244,485	11,196	$109,311
Shares issued in connection with reinvestment of distributions	—	—	—	—
	22,990	244,485	11,196	109,311
Shares repurchased	(16,309)	(171,530)	(18,479)	(172,363)
Net increase (decrease)	6,681	$72,955	(7,283)	$(63,052)

	Year ended 4/30/15		Year ended 4/30/14
Class M	Shares	Amount	Shares	Amount
Shares sold	1,145	$12,272	737	$7,258
Shares issued in connection with reinvestment of distributions	—	—	—	—
	1,145	12,272	737	7,258
Shares repurchased	(415)	(4,363)	(474)	(4,721)
Net increase	730	$7,909	263	$2,537

	Year ended 4/30/15		Year ended 4/30/14
Class R	Shares	Amount	Shares	Amount
Shares sold	3,665	$39,390	6,801	$66,167
Shares issued in connection with reinvestment of distributions	2	21	17	167
	3,667	39,411	6,818	66,334
Shares repurchased	(3,090)	(33,252)	(2,978)	(29,098)
Net increase	577	$6,159	3,840	$37,236

42     Asia Pacific Equity Fund

	Year ended 4/30/15		Year ended 4/30/14
Class Y	Shares	Amount	Shares	Amount
Shares sold	84,221	$901,941	73,899	$750,063
Shares issued in connection with reinvestment of distributions	497	5,183	372	3,723
	84,718	907,124	74,271	753,786
Shares repurchased	(92,076)	(977,844)	(40,227)	(395,447)
Net increase (decrease)	(7,358)	$(70,720)	34,044	$358,339

At the close of the reporting period, Putnam Investments, LLC owned 410,659 class A shares of the fund (59.9% of class A shares outstanding), valued at $4,710,259.

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*	$574,779	$4,412,058	$4,663,288	$253	$323,549
Totals	$574,779	$4,412,058	$4,663,288	$253	$323,549

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

Note 6: Market, credit and other risks

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

Note 7: Summary of derivative activity

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

Purchased equity option contracts (contract amount)	$57,000
Purchased futures contract option contracts (contract amount)	$5
Written equity option contracts (contract amount) (Note 3)	$59,000
Written futures contract option contracts (contract amount) (Note 3)	$5
OTC total return swap contracts (notional)	$11,000
Warrants (number of warrants)	28,000

Asia Pacific Equity Fund     43

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
Equity contracts	Investments	$343,176	Payables	$4,890
Total		$343,176		$4,890

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	Warrants	Options	Total
Equity contracts	$16,149	$(11,338)	$4,811
Total	$16,149	$(11,338)	$4,811

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	Warrants	Options	Swaps	Total
Equity contracts	$54,826	$(14,022)	$(253)	$40,551
Total	$54,826	$(14,022)	$(253)	$40,551

44     Asia Pacific Equity Fund

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.	UBS AG	Total
Assets:
OTC Total return swap contracts*#	$—	$—	$—
Purchased options**#	7,453	—	7,453
Total Assets	$7,453	$—	$7,453
Liabilities:
OTC Total return swap contracts*#	—	253	253
Written options#	4,637	—	4,637
Total Liabilities	$4,637	$253	$4,890
Total Financial and Derivative Net Assets	$2,816	$(253)	$2,563
Total collateral received (pledged)†##	$—	$—
Net amount	$2,816	$(253)

*	Excludes premiums, if any. Included in unrealized appreciation and depreciation on OTC swap contracts on the Statement of assets and liabilities.
**	Included with Investments in securities on the Statement of assets and liabilities.
†	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.

Asia Pacific Equity Fund     45

Federal tax information (Unaudited)

For the reporting period, total interest and dividend income from foreign countries were $179,977, or $0.21 per share (for all classes of shares). Taxes paid to foreign countries were $34,864, or $0.04 per share (for all classes of shares).

For the reporting period, the fund hereby designates 36.41%, or the maximum amount allowable, of its taxable ordinary income distributions as qualified dividends taxed at the individual net capital gain rates.

The Form 1099 that will be mailed to you in January 2016 will show the tax status of all distributions paid to your account in calendar 2015.

46     Asia Pacific Equity Fund

About the Trustees

Independent Trustees

Liaquat Ahamed

Born 1952, Trustee since 2012

Principal occupations during past five years: Pulitzer Prize-winning author of Lords of Finance: The Bankers Who Broke the World, whose articles on economics have appeared in such publications as the New York Times, Foreign Affairs, and the Financial Times. Director of Aspen Insurance Co., a New York Stock Exchange company, and Chair of the Aspen Board’s Investment Committee. Trustee of the Brookings Institution.

Other directorships: The Rohatyn Group, an emerging-market fund complex that manages money for institutions

Ravi Akhoury

Born 1947, Trustee since 2009

Principal occupations during past five years: Trustee of American India Foundation and of the Rubin Museum. From 1992 to 2007, was Chairman and CEO of MacKay Shields, a multi-product investment management firm.

Other directorships: RAGE Frameworks, Inc., a private software company; English Helper, Inc., a private software company

Barbara M. Baumann

Born 1955, Trustee since 2010

Principal occupations during past five years: President and Owner of Cross Creek Energy Corporation, a strategic consultant to domestic energy firms and direct investor in energy projects. Current Board member of The Denver Foundation. Former Chair and current Board member of Girls Incorporated of Metro Denver. Member of the Finance Committee, the Children’s Hospital of Colorado.

Other directorships: Buckeye Partners, L.P., a publicly traded master limited partnership focused on pipeline transport, storage, and distribution of petroleum products; Devon Energy Corporation, a leading independent natural gas and oil exploration and production company

Jameson A. Baxter

Born 1943, Trustee since 1994, Vice Chair from 2005 to 2011, and Chair since 2011

Principal occupations during past five years: President of Baxter Associates, Inc., a private investment firm. Chair of Mutual Fund Directors Forum. Chair Emeritus of the Board of Trustees of Mount Holyoke College. Director of the Adirondack Land Trust and Trustee of the Nature Conservancy’s Adirondack Chapter.

Charles B. Curtis

Born 1940, Trustee since 2001

Principal occupations during past five years: Senior Advisor to the Center for Strategic and International Studies. President Emeritus and former President and Chief Operating Officer of the Nuclear Threat Initiative, a private foundation dealing with national security issues. Member of the Council on Foreign Relations and U.S. State Department International Security Advisory Board.

Robert J. Darretta

Born 1946, Trustee since 2007

Principal occupations during past five years: From 2009 until 2012, served as Health Care Industry Advisor to Permira, a global private equity firm. Until April 2007, was Vice Chairman of the Board of Directors of Johnson & Johnson. Served as Johnson & Johnson’s Chief Financial Officer for a decade.

Other directorships: UnitedHealth Group, a diversified health-care company

Katinka Domotorffy

Born 1975, Trustee since 2012

Principal occupations during past five years: Voting member of the Investment Committees of the Anne Ray Charitable Trust and Margaret A. Cargill Foundation, part of the Margaret A. Cargill Philanthropies. Until 2011, Partner, Chief Investment Officer, and Global Head of Quantitative Investment Strategies at Goldman Sachs Asset Management.

Other directorships: Reach Out and Read of Greater New York, an organization dedicated to promoting childhood literacy; Great Lakes Science Center

John A. Hill

Born 1942, Trustee since 1985 and Chairman from 2000 to 2011

Principal occupations during past five years: Founder and Vice-Chairman of First Reserve Corporation, the leading private equity buyout firm focused on the worldwide energy industry. Trustee and Chairman of the Board of Trustees of Sarah Lawrence College. Member of the Advisory Board of the Millstein Center for Global Markets and Corporate Ownership at The Columbia University Law School.

Other directorships: Devon Energy Corporation, a leading independent natural gas and oil exploration and production company

Asia Pacific Equity Fund     47

Paul L. Joskow

Born 1947, Trustee since 1997

Principal occupations during past five years: Economist and President of the Alfred P. Sloan Foundation, a philanthropic institution focused primarily on research and education on issues related to science, technology, and economic performance. Elizabeth and James Killian Professor of Economics, Emeritus at the Massachusetts Institute of Technology (MIT). Prior to 2007, served as the Director of the Center for Energy and Environmental Policy Research at MIT.

Other directorships: Yale University; Exelon Corporation, an energy company focused on power services; Boston Symphony Orchestra; Prior to April 2013, served as Director of TransCanada Corporation and TransCanada Pipelines Ltd., energy companies focused on natural gas transmission, oil pipelines and power services

Kenneth R. Leibler

Born 1949, Trustee since 2006

Principal occupations during past five years: Founder and former Chairman of Boston Options Exchange, an electronic marketplace for the trading of derivative securities. Serves on the Board of Trustees of Beth Israel Deaconess Hospital in Boston, Massachusetts. Director of Beth Israel Deaconess Care Organization. Until November 2010, director of Ruder Finn Group, a global communications and advertising firm.

Other directorships: Eversource Corporation, which operates New England’s largest energy delivery system

Robert E. Patterson

Born 1945, Trustee since 1984

Principal occupations during past five years: Co-Chairman of Cabot Properties, Inc., a private equity firm investing in commercial real estate, and Chairman of its Investment Committee. Past Chairman and Trustee of the Joslin Diabetes Center.

George Putnam, III

Born 1951, Trustee since 1984

Principal occupations during past five years: Chairman of New Generation Research, Inc., a publisher of financial advisory and other research services. Founder and President of New Generation Advisors, LLC, a registered investment advisor to private funds. Director of The Boston Family Office, LLC, a registered investment advisor.

W. Thomas Stephens

Born 1942, Trustee from 1997 to 2008 and since 2009

Principal occupations during past five years: Retired as Chairman and Chief Executive Officer of Boise Cascade, LLC, a paper, forest products, and timberland assets company, in December 2008. Prior to 2010, Director of Boise Inc., a manufacturer of paper and packaging products.

Other directorships: Prior to April 2014, served as Director of TransCanada Pipelines Ltd., an energy infrastructure company

Interested Trustee

Robert L. Reynolds*

Born 1952, Trustee since 2008 and President of the Putnam Funds since 2009

Principal occupations during past five years: President and Chief Executive Officer of Putnam Investments since 2008 and, since 2014, President and Chief Executive Officer of Great-West Financial, a financial services company that provides retirement savings plans, life insurance, and annuity and executive benefits products, and of Great-West Lifeco U.S. Inc., a holding company that owns Putnam Investments and Great-West Financial. Prior to joining Putnam Investments, served as Vice Chairman and Chief Operating Officer of Fidelity Investments from 2000 to 2007.

*Mr. Reynolds is an “interested person” (as defined in the Investment Company Act of 1940) of the fund and Putnam Investments. He is President and Chief Executive Officer of Putnam Investments, as well as the President of your fund and each of the other Putnam funds.

The address of each Trustee is One Post Office Square, Boston, MA 02109.

As of April 30, 2015, there were 117 Putnam funds. All Trustees serve as Trustees of all Putnam funds.

Each Trustee serves for an indefinite term, until his or her resignation, retirement at age 75, removal, or death.

48     Asia Pacific Equity Fund

Officers

In addition to Robert L. Reynolds, the other officers of the fund are shown below:

Jonathan S. Horwitz (Born 1955)

Executive Vice President, Principal Executive Officer, and Compliance Liaison

Since 2004

Steven D. Krichmar(Born 1958)

Vice President and Principal Financial Officer

Since 2002

Chief of Operations, Putnam Investments and Putnam Management

Robert T. Burns (Born 1961)

Vice President and Chief Legal Officer

Since 2011

General Counsel, Putnam Investments, Putnam Management, and Putnam Retail Management

Robert R. Leveille (Born 1969)

Vice President and Chief Compliance Officer

Since 2007

Chief Compliance Officer, Putnam Investments, Putnam Management, and Putnam Retail Management

Michael J. Higgins (Born 1976)

Vice President, Treasurer, and Clerk

Since 2010

Manager of Finance, Dunkin’ Brands (2008–2010); Senior Financial Analyst, Old Mutual Asset Management (2007–2008); Senior Financial Analyst, Putnam Investments (1999–2007)

Janet C. Smith (Born 1965)

Vice President, Principal Accounting Officer, and Assistant Treasurer

Since 2007

Director of Fund Administration Services, Putnam Investments and Putnam Management

Susan G. Malloy (Born 1957)

Vice President and Assistant Treasurer

Since 2007

Director of Accounting & Control Services, Putnam Investments and Putnam Management

James P. Pappas (Born 1953)

Vice President

Since 2004

Director of Trustee Relations, Putnam Investments and Putnam Management

Mark C. Trenchard (Born 1962)

Vice President and BSA Compliance Officer

Since 2002

Director of Operational Compliance, Putnam Investments and Putnam Retail Management

Nancy E. Florek (Born 1957)

Vice President, Director of Proxy Voting and Corporate Governance, Assistant Clerk, and Associate Treasurer

Since 2000

The principal occupations of the officers for the past five years have been with the employers as shown above, although in some cases they have held different positions with such employers. The address of each officer is One Post Office Square, Boston, MA 02109.

Asia Pacific Equity Fund     49

Putnam family of funds

The following is a list of Putnam’s open-end mutual funds offered to the public. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, contact your financial advisor or call Putnam Investor Services at 1-800-225-1581. Please read the prospectus carefully before investing.

Growth

Growth Opportunities Fund

International Growth Fund

Multi-Cap Growth Fund

Small Cap Growth Fund

Voyager Fund

Blend

Asia Pacific Equity Fund

Capital Opportunities Fund

Capital Spectrum Fund

Emerging Markets Equity Fund

Equity Spectrum Fund

Europe Equity Fund

Global Equity Fund

International Capital Opportunities Fund

International Equity Fund

Investors Fund

Low Volatility Equity Fund

Multi-Cap Core Fund

Research Fund

Strategic Volatility Equity Fund

Value

Convertible Securities Fund

Equity Income Fund

Global Dividend Fund

The Putnam Fund for Growth and Income

International Value Fund

Multi-Cap Value Fund

Small Cap Value Fund

Income

American Government Income Fund

Diversified Income Trust

Emerging Markets Income Fund

Floating Rate Income Fund

Global Income Trust

High Yield Advantage Fund

High Yield Trust

Income Fund

Money Market Fund*

Short Duration Income Fund

U.S. Government Income Trust

Tax-free Income

AMT-Free Municipal Fund

Intermediate-Term Municipal Income Fund

Short-Term Municipal Income Fund

Tax Exempt Income Fund

Tax Exempt Money Market Fund*

Tax-Free High Yield Fund

State tax-free income funds†:

Arizona, California, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio, and Pennsylvania.

* An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

†Not available in all states.

50     Asia Pacific Equity Fund

Absolute Return

Absolute Return 100 Fund®

Absolute Return 300 Fund®

Absolute Return 500 Fund®

Absolute Return 700 Fund®

Global Sector

Global Consumer Fund

Global Energy Fund

Global Financials Fund

Global Health Care Fund

Global Industrials Fund

Global Natural Resources Fund

Global Sector Fund

Global Technology Fund

Global Telecommunications Fund

Global Utilities Fund

Asset Allocation

George Putnam Balanced Fund

Global Asset Allocation Funds — four investment portfolios that spread your money across a variety of stocks, bonds, and money market instruments.

Dynamic Asset Allocation Balanced Fund

Dynamic Asset Allocation Conservative Fund

Dynamic Asset Allocation Growth Fund

Dynamic Risk Allocation Fund

Retirement Income Lifestyle Funds — portfolios with managed allocations to stocks, bonds, and money market investments to generate retirement income.

Retirement Income Fund Lifestyle 1

Retirement Income Fund Lifestyle 2

Retirement Income Fund Lifestyle 3

RetirementReady® Funds — portfolios with adjusting allocations to stocks, bonds, and money market instruments, becoming more conservative over time.

RetirementReady® 2055 Fund

RetirementReady® 2050 Fund

RetirementReady® 2045 Fund

RetirementReady® 2040 Fund

RetirementReady® 2035 Fund

RetirementReady® 2030 Fund

RetirementReady® 2025 Fund

RetirementReady® 2020 Fund

RetirementReady® 2015 Fund

Check your account balances and the most recent month-end performance in the Individual Investors section
at putnam.com.

Asia Pacific Equity Fund     51

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.

52     Asia Pacific Equity 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

Independent Registered
Public Accounting Firm

KPMG 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 Asia Pacific Equity 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:

(a) The fund’s principal executive, financial and accounting officers are employees of Putnam Investment Management, LLC, the Fund’s investment manager. As such they are subject to a comprehensive Code of Ethics adopted and administered by Putnam Investments which is designed to protect the interests of the firm and its clients. The Fund has adopted a Code of Ethics which incorporates the Code of Ethics of Putnam Investments with respect to all of its officers and Trustees who are employees of Putnam Investment Management, LLC. For this reason, the Fund has not adopted a separate code of ethics governing its principal executive, financial and accounting officers.

(c) In July 2013, the Code of Ethics of Putnam Investment Management, LLC was amended. The changes to the Code of Ethics were as follows: (i) eliminating the requirement for employees to hold their shares of Putnam mutual funds for specified periods of time, (ii) removing the requirement to preclear transactions in certain kinds of exchange-traded funds and exchange-traded notes, although reporting of all such instruments remains required; (iii) eliminating the excessive trading rule related to employee transactions in securities requiring preclearance under the Code; (iv) adding provisions related to monitoring of employee trading; (v) changing from a set number of shares to a set dollar value of stock of mid- and large-cap companies on the Restricted List that can be purchased or sold; (vi) adding a requirement starting in March 2014 for employees to generally use certain approved brokers that provide Putnam with an electronic feed of transactions and statements for their personal brokerage accounts; and (vii) certain other changes.

Item 3. Audit Committee Financial Expert:

The Funds’ Audit and Compliance Committee is comprised solely of Trustees who are “independent” (as such term has been defined by the Securities and Exchange Commission (“SEC”) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the “Regulations”)). The Trustees believe that each of the members of the Audit and Compliance Committee also possess a combination of knowledge and experience with respect to financial accounting matters, as well as other attributes, that qualify them for service on the Committee. In addition, the Trustees have determined that each of Mr. Leibler, Mr. Hill, Mr. Darretta, and Ms. Baumann qualifies as an “audit committee financial expert” (as such term has been defined by the Regulations) based on their review of his or her pertinent experience and education. The SEC has stated, and the funds’ amended and restated agreement and Declaration of Trust provides, that the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the Audit and Compliance Committee and the Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services:

The following table presents fees billed in each of the last two fiscal years for services rendered to the fund by the fund’s independent auditor:

Fiscal year ended	Audit Fees	Audit-Related Fees	Tax Fees	All Other Fees
April 30, 2015	$40,096	$ —	$3,610	$ —
April 30, 2014	$38,915	$ —	$3,538	$ —

For the fiscal years ended April 30, 2015 and April 30, 2014, the fund’s independent auditor billed aggregate non-audit fees in the amounts of $3,610 and $3,538 respectively, to the fund, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the fund.

Audit Fees represent fees billed for the fund’s last two fiscal years relating to the audit and review of the financial statements included in annual reports and registration statements, and other services that are normally provided in connection with statutory and regulatory filings or engagements.

Audit-Related Fees represent fees billed in the fund’s last two fiscal years for services traditionally performed by the fund’s auditor, including accounting consultation for proposed transactions or concerning financial accounting and reporting standards and other audit or attest services not required by statute or regulation.

Tax Fees represent fees billed in the fund’s last two fiscal years for tax compliance, tax planning and tax advice services. Tax planning and tax advice services include assistance with tax audits, employee benefit plans and requests for rulings or technical advice from taxing authorities.

Pre-Approval Policies of the Audit and Compliance Committee. The Audit and Compliance Committee of the Putnam funds has determined that, as a matter of policy, all work performed for the funds by the funds’ independent auditors will be pre-approved by the Committee itself and thus will generally not be subject to pre-approval procedures.

The Audit and Compliance Committee also has adopted a policy to pre-approve the engagement by Putnam Management and certain of its affiliates of the funds’ independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by Putnam Management or certain of its affiliates are typically submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees, and why this work should be performed by that particular audit firm as opposed to another one. In reviewing such requests, the Committee considers, among other things, whether the provision of such services by the audit firm are compatible with the independence of the audit firm.

The following table presents fees billed by the fund’s independent auditor for services required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

Fiscal year ended	Audit-Related Fees	Tax Fees	All Other Fees	Total Non-Audit Fees
April 30, 2015	$ —	$ —	$ —	$ —
April 30, 2014	$ —	$ —	$ —	$ —

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) The Code of Ethics of The Putnam Funds, which incorporates the Code of Ethics of Putnam Investments, is filed herewith.

(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.

SIGNATURES

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

Putnam Funds Trust

By (Signature and Title):

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

Date: June 26, 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: June 26, 2015

By (Signature and Title):

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

Date: June 26, 2015