a_multicapcore.htm

Putnam
Multi-Cap Core
Fund

Annual report
4 | 30 | 19


Message from the Trustees	1
About the fund	2
Interview with your fund’s portfolio manager	4
Your fund’s performance	8
Your fund’s expenses	11
Consider these risks before investing	13
Terms and definitions	14
Other information for shareholders	16
Important notice regarding Putnam’s privacy policy	17
Financial statements	18
Federal tax information	46
About the Trustees	47
Officers	49

IMPORTANT NOTICE: Delivery of paper fund reports

In accordance with regulations adopted by the Securities and Exchange Commission, beginning on January 1, 2021, reports like this one will no longer be sent by mail unless you specifically request it. Instead, they will be on Putnam’s website, and you will be notified by mail whenever a new one is available, and provided with a website link to access the report.

If you wish to stop receiving paper reports sooner, or if you wish to continue to receive paper reports free of charge after January 1, 2021, please see the back cover or insert for instructions. If you invest through a bank or broker, your choice will apply to all funds held in your account. If you invest directly with Putnam, your choice will apply to all Putnam funds in your account.

If you already receive these reports electronically, no action is required.

Message from the Trustees

June 10, 2019

Dear Fellow Shareholder:

If there is any lesson to be learned from constantly changing financial markets, it is the importance of positioning your investment portfolio for your long-term goals. We believe that one strategy is to diversify across different asset classes and investment approaches.

We also believe your mutual fund investment offers a number of advantages, including constant monitoring by experienced investment professionals who maintain a long-term perspective. Putnam’s portfolio managers and analysts take a research-intensive approach that includes risk management strategies designed to serve you through changing conditions.

Another key strategy, in our view, is seeking the counsel of a financial advisor. For over 80 years, Putnam has recognized the importance of professional investment advice. Your financial advisor can help in many ways, including defining and planning for goals such as retirement, evaluating the level of risk appropriate for you, and reviewing your investments on a regular basis and making adjustments as necessary.

As always, your fund’s Board of Trustees remains committed to protecting the interests of Putnam shareholders like you, and we thank you for investing with Putnam.

No matter what the stock market is doing from year to year, there are always opportunities for those who know how to find them. Portfolio Manager Gerard Sullivan has more than 30 years of investing experience and the flexibility to invest across the entire universe of publicly traded U.S. companies.

The best-performing stocks change from year to year

Sometimes stocks of small, fast-growing companies lead the market. At other times, it may be large undervalued companies. By investing in all types of stocks, the fund may benefit in changing markets, with less volatility than funds with a more narrow focus.

Source: Putnam, as of 12/31/18. Mid-cap growth stocks are represented by the Russell Midcap Growth Index, an unmanaged index of those companies in the Russell Midcap Index chosen for their growth orientation. Small-cap value stocks are represented by the Russell 2000 Value Index, an unmanaged index of those companies in the small-cap Russell 2000 Index chosen for their value orientation. Mid-cap value stocks are represented by the Russell Midcap Value Index, an unmanaged index of those companies in the Russell Midcap Index chosen for their value orientation. Small-cap growth stocks are represented by the Russell 2000 Growth Index, an unmanaged index of those companies in the small-cap Russell 2000 Index chosen for their growth orientation. Large-cap growth stocks are represented by the Russell 1000 Growth Index, an unmanaged index of those companies in the large-cap Russell 1000 Index chosen for their growth orientation. Large-cap value stocks are represented by the Russell 1000 Value Index, which is an unmanaged index of those companies in the large-cap Russell 1000 Index chosen for their value orientation. You cannot invest directly in an index. Past performance is not a guarantee of future results.

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Jerry has an M.B.A. from Columbia University Graduate School of Business and a B.A. from Columbia University. He joined Putnam in 2008 and has been in the investment industry since 1982.

Arthur Yeager is also a Portfolio Manager of the fund.

Jerry, how were conditions for stock market investors during the reporting period?

During the early months of the period, which began in May 2018, U.S. stocks were strong performers, advancing throughout the summer at a relatively steady pace. They were boosted by strong corporate earnings, rising wages, low unemployment, and positive investor sentiment. In September, U.S. stocks delivered their biggest quarterly gain in nearly five years. Economic growth remained solid in the United States, due in large part to the Tax Cuts and Jobs Act.

In October, however, conditions changed considerably. It was a turbulent month for stocks, and all three major U.S. equity indexes posted losses, including the S&P 500 Index, which recorded its worst monthly performance since 2011. In mid-October, for the second time in 2018, stocks experienced a correction — a drop of more than 10% from a recent high. The downturn was due to worries about rising interest rates and the potential for rising inflation.

November and December brought still more volatility, and major indexes experienced their worst annual performance since 2008. Among

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the issues that contributed to the downturn were geopolitical instability, uncertainty about monetary policy, a slowing Chinese economy, and the ongoing U.S.–China trade dispute.

After the difficult end to 2018, stocks bounced back in early 2019. The Federal Reserve’s decision to put interest-rate hikes on hold boosted investor sentiment, as did signs of progress in the global trade conflict. Positive corporate earnings and better-than-expected economic growth helped U.S. stocks advance through April, when all three major indexes posted solid returns.

How did the fund perform in this environment?

The fund delivered a return of 8.66% for the 12-month period, underperforming its benchmark, the Russell 3000 Index, which returned 12.68%. The fund’s return was closer to the 8.90% average return for funds in its Lipper peer group.

Could you provide some examples of stocks that detracted from performance?

The top detractor for the period was our investment in Goldman Sachs Group. The company, like many others in financial services, struggled with declining revenues. The primary reason for declines across the financials sector were concerns over the flattening yield curve. Banks tend to benefit from a steep yield curve, which allows them to lend on higher long-term rates and borrow on lower short-term rates.

Another disappointment was the stock of Applied Materials, which provides equipment to make computer chips, flat panel TVs, and solar energy devices. This stock declined along with many others in the semiconductor industry, which is feeling the effects of weaker prices for memory components and slowing demand from smartphone and electronics manufacturers. By the close of the period, we had sold the fund’s position in Applied Materials.

Declining sales led to weakness in the share price of Lear Corporation, another of the fund’s top detractors for the period. Lear is a supplier of seating and electronic systems for the automotive industry. By the close of the period, we had sold this position.

What were some holdings that helped performance?

The top contributor to performance for the period was our investment in Microsoft. This stock advanced strongly due in large part to the success and growth of Azure, the company’s cloud computing business. Microsoft recently announced plans to reorganize the company to place a greater focus on its cloud-computing operations. Microsoft also demonstrated ongoing success and competitive strength in its Office 365 software business and its video gaming platforms.

Our investment in Live Nation Entertainment was also a performance highlight. The company promotes live events, operates event venues, and sells tickets for events worldwide. Live Nation, which is the largest U.S. ticketing service and promoter for concerts, continued to expand its ownership of venues and posted solid sales growth, thanks in part to strong worldwide demand for concert tickets.

Cisco Systems, a computer networking and software company, was a key contributor to fund performance. Shares of the stock gained as the company delivered better-than-expected earnings and a positive revenue forecast. Cisco has benefited from its increased focus on high-growth areas such as cloud computing.

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As the fund begins a new fiscal year, how are you positioning the portfolio?

We are pursuing a balanced strategy for the portfolio. It includes large-cap growth stocks that have delivered strong returns but still offer upside potential, in our view. We believe these companies, many of which are in the technology sector, have room to grow further despite fluctuations in economic conditions.

At the same time, within the portfolio we hold a number of cyclical stocks that are a bit depressed, but have the potential to rebound meaningfully, in our view. These include holdings in areas such as energy, housing, and financials. In our view, the bank stocks we own are very inexpensive relative to their earnings growth potential. We believe they offer solid balance sheets, strong credit, moderate loan growth, and decent expense controls.

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

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

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

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, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.

Multi-Cap Core Fund 7

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended April 30, 2019, 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, R6, and Y shares are not available to all investors. See the Terms and definitions section in this report for definitions of the share classes offered by your fund.

Fund performance Total return for periods ended 4/30/19


		Annual		Annual		Annual
	Life of fund	average	5 years	average	3 years	average	1 year
Class A (9/24/10)
Before sales charge	224.90%	14.69%	61.80%	10.10%	53.10%	15.26%	8.66%
After sales charge	206.22	13.90	52.50	8.81	44.30	13.00	2.41
Class B (9/24/10)
Before CDSC	205.95	13.89	55.82	9.28	49.59	14.37	7.79
After CDSC	205.95	13.89	53.82	8.99	46.59	13.60	2.79
Class C (9/24/10)
Before CDSC	204.66	13.83	55.86	9.28	49.65	14.38	7.80
After CDSC	204.66	13.83	55.86	9.28	49.65	14.38	6.80
Class M (9/24/10)
Before sales charge	211.23	14.11	57.83	9.56	50.80	14.67	8.09
After sales charge	200.34	13.64	52.31	8.78	45.52	13.32	4.31
Class R (9/24/10)
Net asset value	218.16	14.41	59.80	9.83	51.92	14.96	8.38
Class R6 (5/22/18)
Net asset value	232.16	14.98	63.93	10.39	54.36	15.57	8.99
Class Y (9/24/10)
Net asset value	231.89	14.97	63.80	10.37	54.23	15.54	8.90

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, R6, and Y shares have no initial sales charge or CDSC. Performance for class R6 shares prior to their inception is derived from the historical performance of class Y shares and has not been adjusted for the lower investor servicing fees applicable to class R6 shares; had it, returns would have been higher.

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

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

8 Multi-Cap Core Fund

Comparative index returns For periods ended 4/30/19


		Annual		Annual		Annual
	Life of fund	average	5 years	average	3 years	average	1 year
Russell 3000 Index	203.12%	13.76%	70.00%	11.20%	51.06%	14.74%	12.68%
Lipper Multi-Cap
Core Funds	162.97	11.79	52.46	8.71	42.01	12.35	8.90
category average^*

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 4/30/19, there were 751, 644, 558, and 448 funds, respectively, in this Lipper category.

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 and C shares would have been valued at $30,595 and $30,466, respectively, and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $30,034. A $10,000 investment in the fund’s class R, R6, and Y shares would have been valued at $31,816, $33,216 and $33,189, respectively.

Multi-Cap Core Fund 9

Fund price and distribution information For the 12-month period ended 4/30/19


Distributions	Class A		Class B	Class C	Class M		Class R	Class R6	Class Y
Number	2		2	2	2		2	2	2
Income	—		—	—	—		—	—	—
Capital gains
Long-term gains	$0.303		$0.303	$0.303	$0.303		$0.303	$0.303	$0.303
Short-term gains	0.185		0.185	0.185	0.185		0.185	0.185	0.185
Total	$0.488		$0.488	$0.488	$0.488		$0.488	$0.488	$0.488
	Before	After	Net	Net	Before	After	Net	Net	Net
	sales	sales	asset	asset	sales	sales	asset	asset	asset
Share value	charge	charge	value	value	charge	charge	value	value	value
4/30/18	$22.66	$24.04	$22.09	$22.06	$22.39	$23.20	$22.58	—	$22.75
5/22/18^*	—	—	—	—	—	—	—	$23.57	—
4/30/19	24.11	25.58	23.30	23.27	23.69	24.55	23.96	24.28	24.26

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.

^*Inception date of class R6 shares.

Fund performance as of most recent calendar quarter Total return for periods ended 3/31/19


		Annual		Annual		Annual
	Life of fund	average	5 years	average	3 years	average	1 year
Class A (9/24/10)
Before sales charge	209.81%	14.20%	53.81%	8.99%	46.25%	13.51%	3.61%
After sales charge	191.99	13.40	44.97	7.71	37.85	11.29	–2.34
Class B (9/24/10)
Before CDSC	191.74	13.39	48.11	8.17	42.98	12.66	2.84
After CDSC	191.74	13.39	46.11	7.88	39.98	11.86	–2.16
Class C (9/24/10)
Before CDSC	190.65	13.34	48.13	8.18	42.95	12.65	2.84
After CDSC	190.65	13.34	48.13	8.18	42.95	12.65	1.84
Class M (9/24/10)
Before sales charge	196.91	13.63	50.01	8.45	44.04	12.93	3.12
After sales charge	186.52	13.15	44.76	7.68	39.00	11.60	–0.49
Class R (9/24/10)
Net asset value	203.42	13.92	51.92	8.72	45.15	13.22	3.36
Class R6 (5/22/18)
Net asset value	216.56	14.48	55.85	9.28	47.37	13.80	3.91
Class Y (9/24/10)
Net asset value	216.43	14.48	55.78	9.27	47.31	13.78	3.87

See the discussion following the fund performance table on page 8 for information about the calculation of fund performance.

10 Multi-Cap Core Fund

Your fund’s expenses

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

Expense ratios


	Class A	Class B	Class C	Class M	Class R	Class R6	Class Y
Total annual operating expenses for the
fiscal year ended 4/30/18	1.02%^†	1.77%^†	1.77%^†	1.52%^†	1.27%^†	0.67%^*	0.77%^†
Annualized expense ratio for the
six-month period ended 4/30/19^‡	1.01%	1.76%	1.76%	1.51%	1.26%	0.64%	0.76%

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.

^*Other expenses are based on expenses of class Y shares for the fund’s last fiscal year, restated to reflect current fees and adjusted to the lower investor servicing fees applicable to class R6 shares.

^†Restated to reflect current fees.

^‡Expense ratios for each class are for the fund’s most recent fiscal half year. As a result of this, ratios may differ from expense ratios based on one-year data in the financial highlights.

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in each class of the fund from 11/1/18 to 4/30/19. 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 R6	Class Y
Expenses paid per $1,000^*†	$5.19	$9.03	$9.02	$7.75	$6.47	$3.29	$3.91
Ending value (after expenses)	$1,072.50	$1,068.30	$1,067.90	$1,069.50	$1,071.10	$1,073.90	$1,073.50

^*Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 4/30/19. 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.

Multi-Cap Core Fund 11

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended 4/30/19, use the following calculation method. To find the value of your investment on 11/1/18, 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 R6	Class Y
Expenses paid per $1,000^*†	$5.06	$8.80	$8.80	$7.55	$6.31	$3.21	$3.81
Ending value (after expenses)	$1,019.79	$1,016.07	$1,016.07	$1,017.31	$1,018.55	$1,021.62	$1,021.03

^†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.

12 Multi-Cap Core Fund

Terms and definitions

Important terms

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

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

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

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

Share classes

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

Class B shares are closed to new investments and are only available by exchange from another Putnam fund or through dividend and/or capital gains reinvestment. They 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.

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

Class R6 shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to employer-sponsored retirement plans, corporate and institutional clients, and clients in other approved programs.

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

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

ICE BofAML (Intercontinental Exchange Bank of America 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.

Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies.

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.

ICE Data Indices, LLC (“ICE BofAML”), used with permission. ICE BofAML permits use of the ICE BofAML indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofAML indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.

14 Multi-Cap Core 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, 2018, 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-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the fund’s Form N-PORT on the SEC’s website at www.sec.gov.

Prior to its use of Form N-PORT, the fund filed its complete schedule of its portfolio holdings with the SEC on Form N-Q, which is available online at www.sec.gov.

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, 2019, Putnam employees had approximately $507,000,000 and the Trustees had approximately $71,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.

16 Multi-Cap Core Fund

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.

Multi-Cap Core Fund 17

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.

18 Multi-Cap Core Fund

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders
Putnam Funds Trust:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Putnam Multi-Cap Core Fund (the “fund”), a series of the Putnam Funds Trust, including the fund’s portfolio, as of April 30, 2019, 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 related notes (collectively, the “financial statements”) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the fund as of April 30, 2019, and 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 or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures included confirmation of securities owned as of April 30, 2019, by correspondence with the custodian and brokers or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Putnam investment companies since 1999.

Boston, Massachusetts
June 10, 2019

Multi-Cap Core Fund 19

The fund’s portfolio 4/30/19


COMMON STOCKS (96.4%)*	Shares	Value
Aerospace and defense (1.1%)
Boeing Co. (The)	76,504	$28,894,796
		28,894,796
Airlines (1.8%)
Air Canada (Canada) ^†	532,887	12,792,152
American Airlines Group, Inc.	365,446	12,490,944
Southwest Airlines Co.	367,234	19,915,100
		45,198,196
Auto components (1.2%)
Magna International, Inc. (Canada)	305,769	17,012,987
Pirelli & C. SpA (Italy) ^†	1,780,302	13,035,300
		30,048,287
Automobiles (0.6%)
General Motors Co.	395,351	15,398,921
		15,398,921
Banks (7.9%)
Bank of America Corp.	2,281,985	69,783,101
Citigroup, Inc.	627,172	44,341,060
Hilltop Holdings, Inc.	190,975	4,016,204
JPMorgan Chase & Co.	579,471	67,247,610
Wells Fargo & Co.	363,892	17,616,012
		203,003,987
Beverages (1.9%)
Coca-Cola Co. (The)	246,749	12,105,506
Molson Coors Brewing Co. Class B	245,766	15,775,720
PepsiCo, Inc.	163,233	20,901,986
		48,783,212
Biotechnology (2.8%)
Amgen, Inc.	202,344	36,284,326
Biogen, Inc. ^†	68,820	15,776,297
Gilead Sciences, Inc.	311,995	20,292,155
		72,352,778
Capital markets (4.7%)
Ameriprise Financial, Inc.	129,889	19,063,809
Apollo Global Management, LLC Class A	368,939	12,060,616
Deutsche Bank AG (Registered shares) (Germany)	549,847	4,552,733
Goldman Sachs Group, Inc. (The)	158,702	32,679,916
KKR & Co., Inc. Class A	451,407	11,036,901
Morgan Stanley	325,737	15,716,810
Raymond James Financial, Inc.	276,368	25,307,018
		120,417,803
Chemicals (1.5%)
Celanese Corp.	178,291	19,235,816
Dow, Inc. ^†	95,565	5,421,403
DowDuPont, Inc.	286,695	11,023,423
Orion Engineered Carbons SA (Luxembourg)	189,474	3,840,638
		39,521,280

20 Multi-Cap Core Fund


COMMON STOCKS (96.4%)* cont.	Shares	Value
Commercial services and supplies (0.7%)
BrightView Holdings, Inc. ^†	172,903	$2,773,364
New Bigfoot Other Assets GmbH (acquired 8/2/13, cost $32) (Private)
(Germany) ^†^{∆∆ F}	24	20
New Middle East Other Assets GmbH (acquired 8/2/13, cost $13) (Private)
(Germany) ^†^{∆∆ F}	10	8
Republic Services, Inc.	190,241	15,755,760
		18,529,152
Communications equipment (2.4%)
Cisco Systems, Inc.	1,125,737	62,984,985
		62,984,985
Consumer finance (0.9%)
Capital One Financial Corp.	259,932	24,129,488
		24,129,488
Diversified financial services (2.6%)
Alignvest Acquisition II Corp. Class A (Canada) ^†	677,047	5,114,366
Berkshire Hathaway, Inc. Class B ^†	189,782	41,127,657
Capitol Investment Corp. IV (Units) ^†	306,859	3,344,763
J2 Acquisition, Ltd. (British Virgin Islands) ^†	711,565	6,279,561
TPG Pace Holdings Corp. (Units) ^†	903,262	9,692,001
		65,558,348
Diversified telecommunication services (0.9%)
AT&T, Inc.	727,295	22,517,053
		22,517,053
Electric utilities (1.7%)
Entergy Corp.	180,029	17,444,810
Exelon Corp.	506,922	25,827,676
		43,272,486
Entertainment (2.1%)
Live Nation Entertainment, Inc. ^{† S}	315,328	20,603,532
Walt Disney Co. (The)	244,891	33,542,720
		54,146,252
Equity real estate investment trusts (REITs) (1.5%)
Armada Hoffler Properties, Inc. ^R	753,634	12,171,189
Easterly Government Properties, Inc. ^R	642,010	11,556,180
Equity Commonwealth ^R	469,514	14,930,545
		38,657,914
Food and staples retail (2.8%)
Kroger Co. (The)	574,846	14,819,530
Walgreens Boots Alliance, Inc.	208,074	11,146,524
Walmart, Inc.	436,635	44,903,543
		70,869,597
Health-care equipment and supplies (0.8%)
Baxter International, Inc.	276,042	21,062,005
RA Medical Systems, Inc. ^†	83,800	358,664
		21,420,669
Health-care providers and services (3.0%)
HCA Healthcare, Inc.	166,596	21,196,009
McKesson Corp.	108,014	12,880,670
Tenet Healthcare Corp. ^†	406,472	8,901,737
UnitedHealth Group, Inc.	143,422	33,427,366
		76,405,782

Multi-Cap Core Fund 21


COMMON STOCKS (96.4%)* cont.	Shares	Value
Hotels, restaurants, and leisure (1.1%)
Bloomin’ Brands, Inc.	242,458	$4,846,735
Hyatt Hotels Corp. Class A	139,653	10,715,575
MGM Resorts International	513,799	13,682,467
		29,244,777
Household durables (1.1%)
Green Brick Partners, Inc. ^†	342,890	3,065,437
HC Brillant Services GmbH (acquired 8/2/13, cost $32) (Private)
(Germany) ^†^{∆∆ F}	48	40
PulteGroup, Inc.	812,391	25,557,821
		28,623,298
Household products (1.0%)
Procter & Gamble Co. (The)	252,598	26,896,635
		26,896,635
Independent power and renewable electricity producers (1.0%)
NRG Energy, Inc.	621,105	25,570,893
		25,570,893
Industrial conglomerates (1.0%)
Honeywell International, Inc.	151,077	26,231,500
		26,231,500
Insurance (1.5%)
Assured Guaranty, Ltd.	309,148	14,746,360
Lincoln National Corp.	236,948	15,809,171
Sirius International Insurance Group, Ltd. (Bermuda) ^{† S}	565,612	7,466,078
		38,021,609
Interactive media and services (4.0%)
Alphabet, Inc. Class C ^†	52,090	61,907,923
Facebook, Inc. Class A ^†	210,116	40,636,434
		102,544,357
Internet and direct marketing retail (3.2%)
Amazon.com, Inc. ^†	32,065	61,773,864
Booking Holdings, Inc. ^†	6,719	12,463,678
Delivery Hero Holding GmbH (Germany) ^†	180,259	8,306,555
Global Fashion Group SA (acquired 8/2/13, cost $1,579,787) (Private)
(Luxembourg) ^†^{∆∆ F}	37,292	336,307
		82,880,404
IT Services (3.1%)
DXC Technology Co.	258,101	16,967,560
IBM Corp.	113,500	15,920,645
Priority Technology Holdings, Inc. ^†	272,753	1,636,518
Visa, Inc. Class A	267,700	44,017,911
		78,542,634
Machinery (0.8%)
Caterpillar, Inc.	139,549	19,455,922
		19,455,922
Media (2.0%)
Comcast Corp. Class A	855,245	37,228,815
Discovery, Inc. Class A ^{† S}	218,965	6,766,019
Liberty Global PLC Class A (United Kingdom) ^†	286,527	7,739,094
		51,733,928

22 Multi-Cap Core Fund


COMMON STOCKS (96.4%)* cont.	Shares	Value
Metals and mining (0.5%)
Freeport-McMoRan, Inc. (Indonesia)	724,104	$8,913,720
Largo Resources, Ltd. (Canada) ^{† S}	3,077,795	3,882,566
		12,796,286
Multiline retail (0.8%)
Target Corp.	249,148	19,289,038
		19,289,038
Oil, gas, and consumable fuels (6.7%)
Brigham Minerals, Inc. Class A ^†	243,701	4,998,308
ConocoPhillips	415,215	26,208,371
Diamondback Energy, Inc.	68,268	7,263,033
Encana Corp. (Canada) ^S	1,218,954	8,447,351
Enterprise Products Partners LP	578,768	16,570,128
Exxon Mobil Corp.	122,079	9,800,502
Kimbell Royalty Partners LP	205,152	3,649,654
Kinder Morgan, Inc.	1,014,020	20,148,577
Marathon Oil Corp.	699,076	11,912,255
Plains GP Holdings LP Class A ^†	277,384	6,546,262
Royal Dutch Shell PLC ADR Class A (United Kingdom)	467,510	29,700,910
Suncor Energy, Inc. (Canada)	364,160	12,017,280
Valero Energy Corp.	177,716	16,111,733
		173,374,364
Pharmaceuticals (3.4%)
Jazz Pharmaceuticals PLC ^†	111,787	14,506,599
Johnson & Johnson	254,813	35,979,596
Merck & Co., Inc.	312,779	24,618,835
Novartis AG (Switzerland)	153,159	12,509,748
		87,614,778
Real estate management and development (1.1%)
CBRE Group, Inc. Class A ^†	293,779	15,297,073
Kennedy-Wilson Holdings, Inc.	596,594	12,850,635
		28,147,708
Road and rail (2.0%)
Norfolk Southern Corp.	108,234	22,081,901
Union Pacific Corp.	146,480	25,932,819
US Xpress Enterprises, Inc. Class A ^†	394,978	2,662,152
		50,676,872
Semiconductors and semiconductor equipment (3.1%)
Intel Corp.	659,532	33,662,513
Lam Research Corp.	103,474	21,463,612
Micron Technology, Inc. ^†	289,340	12,169,640
Qualcomm, Inc.	155,501	13,393,301
		80,689,066
Software (7.9%)
Adobe, Inc. ^†	45,847	13,261,245
Microsoft Corp.	1,227,134	160,263,694
Oracle Corp.	530,329	29,343,104
		202,868,043

Multi-Cap Core Fund 23


COMMON STOCKS (96.4%)* cont.	Shares	Value
Specialty retail (2.8%)
Best Buy Co., Inc.	300,581	$22,366,232
Home Depot, Inc. (The)	94,759	19,302,408
Lowe’s Cos., Inc.	219,268	24,807,982
Michaels Cos., Inc. (The) ^†	600,995	6,755,184
		73,231,806
Technology hardware, storage, and peripherals (5.1%)
Apple, Inc.	581,761	116,741,980
HP, Inc.	693,828	13,841,869
		130,583,849
Thrifts and mortgage finance (0.3%)
Radian Group, Inc.	308,800	7,232,096
		7,232,096
Total common stocks (cost $1,923,142,553)		$2,478,360,849

INVESTMENT COMPANIES (3.3%)*	Shares	Value
Health Care Select Sector SPDR Fund ^S	336,299	$30,018,049
Industrial Select Sector SPDR Fund ^S	483,938	37,752,003
SPDR S&P Homebuilders ETF ^S	446,167	18,141,150
Total investment companies (cost $80,610,436)		$85,911,202


	Expiration	Strike
WARRANTS (-%)* ^†	date	price	Warrants	Value
Alignvest Acquisition II Corp. Class A, (Canada)	7/4/22	CAD 11.50	338,523	$92,230
J2 Acquisition, Ltd. (British Virgin Islands)	10/10/20	$11.50	711,565	124,524
Sirius International Insurance Group,
Ltd. (Bermuda)	12/31/23	18.88	464,490	287,984
Total warrants (cost $333,253)				$504,738


	Principal amount/
SHORT-TERM INVESTMENTS (4.2%)*		shares	Value
Putnam Cash Collateral Pool, LLC 2.72% ^d	Shares	99,589,606	$99,589,606
Putnam Short Term Investment Fund 2.60% ^L	Shares	7,401,136	7,401,136
U.S. Treasury Bills 2.598%, 5/9/19 ^∆		$235,000	234,876
U.S. Treasury Bills 2.450%, 7/11/19		207,000	206,030
Total short-term investments (cost $107,431,640)			$107,431,648

TOTAL INVESTMENTS
Total investments (cost $2,111,517,882)			$2,672,208,437

Key to holding’s currency abbreviations


CAD	Canadian Dollar

Key to holding’s abbreviations


ADR	American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
ETF	Exchange Traded Fund
SPDR	S&P Depository Receipts

24 Multi-Cap Core 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, 2018 through April 30, 2019 (the reporting period). Within the following notes to the portfolio, 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 “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures.

^*Percentages indicated are based on net assets of $2,570,912,074.

^†This security is non-income-producing.

^∆∆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 $336,375, or less than 0.1% of net assets.

^∆This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period. Collateral at period end totaled $143,913 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 9).

^dAffiliated company. See Notes 1 and 5 to the financial statements regarding securities lending. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.

^FThis security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities are classified as 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).

^LAffiliated 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.

^RReal Estate Investment Trust.

^SSecurity on loan, in part or in entirety, at the close of the reporting period (Note 1).

At the close of the reporting period, the fund maintained liquid assets totaling $17,306,138 to cover certain derivative contracts.

Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.

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


WRITTEN OPTIONS OUTSTANDING at 4/30/19 (premiums $280,449)
	Expiration	Notional	Contract
Counterparty	date/strike price	amount	amount	Value
Barclays Bank PLC
Enterprise Products
Partners (Call)	Jun-19/$30.00	$5,467,099	$190,957	$33,443
Citibank, N.A.
Boeing Co. (The) (Call)	Jun-19/430.00	3,754,994	9,942	7,672
UBS AG
Bank of America Corp. (Call)	Jun-19/32.00	6,978,325	228,199	77,585
Total				$118,700

Multi-Cap Core 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^*:
Communication services	$230,941,590	$—		$—
Consumer discretionary	257,038,329	21,341,855		336,347
Consumer staples	146,549,444	—		—
Energy	173,374,364	—		—
Financials	458,363,331	—		—
Health care	245,284,259	12,509,748		—
Industrials	188,986,410	—		28
Information technology	555,668,577	—		—
Materials	52,317,566	—		—
Real estate	66,805,622	—		—
Utilities	68,843,379	—		—
Total common stocks	2,444,172,871	33,851,603		336,375

Investment companies	85,911,202	—		—
Warrants	504,738	—		—
Short-term investments	7,401,136	100,030,512		—
Totals by level	$2,537,989,947	$133,882,115		$336,375

			Valuation inputs
Other financial instruments:	Level 1	Level 2		Level 3
Written options outstanding	$—	$(118,700)		$—
Totals by level	$—	$(118,700)		$—

^*Common stock classifications are presented at the sector level, which may differ from the fund’s portfolio presentation.

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 Multi-Cap Core Fund

Statement of assets and liabilities 4/30/19


ASSETS
Investment in securities, at value, including $97,140,180 of securities on loan (Notes 1):
Unaffiliated issuers (identified cost $2,004,527,140)	$2,565,217,695
Affiliated issuers (identified cost $106,990,742) (Notes 1 and 5)	106,990,742
Cash	1,277,846
Foreign currency (cost $299) (Note 1)	290
Dividends, interest and other receivables	2,376,059
Receivable for shares of the fund sold	986,314
Receivable for investments sold	2,956,064
Prepaid assets	50,093
Total assets	2,679,855,103

LIABILITIES
Payable for investments purchased	2,575,664
Payable for shares of the fund repurchased	2,909,431
Payable for compensation of Manager (Note 2)	1,204,718
Payable for custodian fees (Note 2)	35,435
Payable for investor servicing fees (Note 2)	649,033
Payable for Trustee compensation and expenses (Note 2)	796,648
Payable for administrative services (Note 2)	9,746
Payable for distribution fees (Note 2)	541,143
Written options outstanding, at value (premiums $280,449) (Note 1)	118,700
Collateral on securities loaned, at value (Note 1)	99,589,606
Other accrued expenses	512,905
Total liabilities	108,943,029

Net assets	$2,570,912,074

REPRESENTED BY
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)	$1,894,059,420
Total distributable earnings (Note 1)	676,852,654
Total — Representing net assets applicable to capital shares outstanding	$2,570,912,074

(Continued on next page)

Multi-Cap Core Fund 27

Statement of assets and liabilities cont.


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
Net asset value and redemption price per class A share
($1,746,453,416 divided by 72,441,050 shares)	$24.11
Offering price per class A share (100/94.25 of $24.11)^*	$25.58
Net asset value and offering price per class B share ($38,062,815 divided by 1,633,290 shares)^**	$23.30
Net asset value and offering price per class C share ($172,981,505 divided by 7,432,240 shares)^**	$23.27
Net asset value and redemption price per class M share ($20,314,144 divided by 857,454 shares)	$23.69
Offering price per class M share (100/96.50 of $23.69)^*	$24.55
Net asset value, offering price and redemption price per class R share
($4,394,772 divided by 183,447 shares)	$23.96
Net asset value, offering price and redemption price per class R6 share
($39,959,303 divided by 1,645,627 shares)	$24.28
Net asset value, offering price and redemption price per class Y share
($548,746,119 divided by 22,615,306 shares)	$24.26

^*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 Multi-Cap Core Fund

Statement of operations Year ended 4/30/19


INVESTMENT INCOME
Dividends (net of foreign tax of $394,219)	$43,253,267
Interest (including interest income of $2,068,283 from investments in affiliated issuers) (Note 5)	2,124,980
Securities lending (net of expenses) (Notes 1 and 5)	294,927
Total investment income	45,673,174

EXPENSES
Compensation of Manager (Note 2)	12,956,148
Investor servicing fees (Note 2)	3,967,140
Custodian fees (Note 2)	39,254
Trustee compensation and expenses (Note 2)	110,363
Distribution fees (Note 2)	5,920,391
Administrative services (Note 2)	72,233
Other	972,955
Total expenses	24,038,484
Expense reduction (Note 2)	(40,041)
Net expenses	23,998,443

Net investment income	21,674,731

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities from unaffiliated issuers (Notes 1 and 3)	98,286,837
Foreign currency transactions (Note 1)	(3,125)
Futures contracts (Note 1)	141,377
Written options (Note 1)	1,130,808
Total net realized gain	99,555,897
Change in net unrealized appreciation (depreciation) on:
Securities from unaffiliated issuers	14,508,780
Assets and liabilities in foreign currencies	(8)
Written options	161,749
Total change in net unrealized appreciation	14,670,521

Net gain on investments	114,226,418

Net increase in net assets resulting from operations	$135,901,149

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

Multi-Cap Core Fund 29

Statement of changes in net assets


INCREASE IN NET ASSETS	Year ended 4/30/19	Year ended 4/30/18
Operations
Net investment income	$21,674,731	$4,527,916
Net realized gain on investments
and foreign currency transactions	99,555,897	27,180,357
Change in net unrealized appreciation of investments
and assets and liabilities in foreign currencies	14,670,521	44,866,585
Net increase in net assets resulting from operations	135,901,149	76,574,858
Distributions to shareholders (Note 1):
From ordinary income
Net investment income
Class A	—	(1,544,185)
Class B	—	(59,397)
Class C	—	(438,009)
Class M	—	(8,665)
Class R	—	(19,049)
Class Y	—	(3,481,712)
Net realized short-term gain on investments
Class A	(1,488,292)	—
Class B	(135,617)	—
Class C	(1,104,760)	—
Class M	(14,545)	—
Class R	(20,812)	—
Class R6	(69,479)	—
Class Y	(2,627,987)	—
From net realized long-term gain on investments
Class A	(6,263,664)	(2,178,443)
Class B	(282,082)	(233,169)
Class C	(1,917,621)	(1,797,368)
Class M	(69,362)	(20,909)
Class R	(37,901)	(33,017)
Class R6	(190,888)	—
Class Y	(5,162,742)	(4,004,822)
Increase from capital share transactions (Note 4 and 8)	1,812,756,272	3,444,668
Total increase in net assets	1,929,271,669	66,200,781

NET ASSETS
Beginning of year	641,640,405	575,439,624
End of year	$2,570,912,074	$641,640,405

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

30 Multi-Cap Core Fund

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


	INVESTMENT OPERATIONS				LESS DISTRIBUTIONS						RATIOS AND SUPPLEMENTAL DATA
												Ratio of	Ratio of net
	Net asset		Net realized			From						expenses	investment
	value,		and unrealized	Total from	From	net realized	From		Net asset	Total return	Net assets,	to average	income (loss)	Portfolio
	beginning	Net investment	gain (loss) on	investment	net investment	gain on	return of	Total	value, end	at net asset	end of period	net assets	to average	turnover
Period ended	of period	income (loss)^a	investments	operations	income	investments	capital	distributions	of period	value (%)^b	(in thousands)	(%)^c	net assets (%)	(%)
Class A
April 30, 2019	$22.66	.21	1.73	1.94	—	(.49)	—	(.49)	$24.11	8.66	$1,746,453	1.03^d	.91	41
April 30, 2018	20.17	.18	2.88	3.06	(.24)	(.33)	—	(.57)	22.66	15.22	172,995	1.06^e	.80	80
April 30, 2017	16.65	.18	3.52	3.70	(.18)	—	—	(.18)	20.17	22.28	138,053	1.05	1.01	76
April 30, 2016	17.98	.17	(1.32)	(1.15)	(.13)	(.04)	(.01)	(.18)	16.65	(6.46)	144,502	1.07^f	.99^f	72
April 30, 2015	16.17	.12	1.97	2.09	(.06)	(.22)	—	(.28)	17.98	12.98	174,471	1.14	.69	52
Class B
April 30, 2019	$22.09	.04	1.66	1.70	—	(.49)	—	(.49)	$23.30	7.79	$38,063	1.78^d	.19	41
April 30, 2018	19.68	.01	2.81	2.82	(.08)	(.33)	—	(.41)	22.09	14.41	16,059	1.81^e	.05	80
April 30, 2017	16.28	.04	3.43	3.47	(.07)	—	—	(.07)	19.68	21.31	14,546	1.80	.22	76
April 30, 2016	17.62	.04	(1.29)	(1.25)	(.05)	(.04)	—^g	(.09)	16.28	(7.13)	10,786	1.82^f	.23^f	72
April 30, 2015	15.91	(.01)	1.94	1.93	—	(.22)	—	(.22)	17.62	12.16	7,691	1.89	(.03)	52
Class C
April 30, 2019	$22.06	.05	1.65	1.70	—	(.49)	—	(.49)	$23.27	7.80	$172,982	1.78^d	.21	41
April 30, 2018	19.65	.01	2.81	2.82	(.08)	(.33)	—	(.41)	22.06	14.41	129,480	1.81^e	.05	80
April 30, 2017	16.23	.04	3.42	3.46	(.04)	—	—	(.04)	19.65	21.35	113,298	1.80	.24	76
April 30, 2016	17.57	.04	(1.29)	(1.25)	(.05)	(.04)	—^g	(.09)	16.23	(7.13)	108,812	1.82^f	.22^f	72
April 30, 2015	15.88	(.01)	1.93	1.92	(.01)	(.22)	—	(.23)	17.57	12.14	78,033	1.89	(.08)	52
Class M
April 30, 2019	$22.39	.09	1.70	1.79	—	(.49)	—	(.49)	$23.69	8.09	$20,314	1.53^d	.41	41
April 30, 2018	19.94	.06	2.86	2.92	(.14)	(.33)	—	(.47)	22.39	14.69	1,654	1.56^e	.27	80
April 30, 2017	16.46	.11	3.45	3.56	(.08)	—	—	(.08)	19.94	21.64	1,151	1.55	.60	76
April 30, 2016	17.75	.08	(1.31)	(1.23)	(.02)	(.04)	—^g	(.06)	16.46	(6.91)	2,513	1.57^f	.49^f	72
April 30, 2015	16.03	.03	1.96	1.99	(.05)	(.22)	—	(.27)	17.75	12.43	3,575	1.64	.18	52
Class R
April 30, 2019	$22.58	.16	1.71	1.87	—	(.49)	—	(.49)	$23.96	8.38	$4,395	1.28^d	.69	41
April 30, 2018	20.10	.12	2.88	3.00	(.19)	(.33)	—	(.52)	22.58	15.00	2,334	1.31^e	.53	80
April 30, 2017	16.61	.13	3.50	3.63	(.14)	—	—	(.14)	20.10	21.89	1,868	1.30	.72	76
April 30, 2016	17.93	.13	(1.32)	(1.19)	(.09)	(.04)	—^g	(.13)	16.61	(6.64)	1,855	1.32^f	.75^f	72
April 30, 2015	16.16	.07	1.97	2.04	(.05)	(.22)	—	(.27)	17.93	12.66	2,222	1.39	.42	52
Class R6
April 30, 2019^†	$23.57	.28	.92	1.20	—	(.49)	—	(.49)	$24.28	5.19^*	$39,959	.62^*d	1.23^*	41
Class Y
April 30, 2019	$22.75	.28	1.72	2.00	—	(.49)	—	(.49)	$24.26	8.90	$548,746	.78^d	1.20	41
April 30, 2018	20.24	.24	2.89	3.13	(.29)	(.33)	—	(.62)	22.75	15.54	319,118	.81^e	1.11	80
April 30, 2017	16.71	.22	3.54	3.76	(.23)	—	—	(.23)	20.24	22.58	306,524	.80	1.19	76
April 30, 2016	18.04	.21	(1.32)	(1.11)	(.17)	(.04)	(.01)	(.22)	16.71	(6.22)	207,093	.82^f	1.23^f	72
April 30, 2015	16.20	.16	1.98	2.14	(.08)	(.22)	—	(.30)	18.04	13.24	179,176	.89	.91	52

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

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


32 Multi-Cap Core Fund	Multi-Cap Core Fund 33

Financial highlights cont.

^*Not annualized.

^†For the period May 22, 2018 (commencement of operations) to April 30, 2019.

^aPer share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period.

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

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

^dIncludes one-time merger costs of 0.01% as a percentage of average net assets.

^eIncludes one-time merger costs of 0.04% as a percentage of average net assets.

^fReflects a voluntary waiver of certain fund expenses in effect during the period. As a result of such waivers, the expenses of each class reflects a reduction of less than 0.01% as a percentage of average net assets.

^gAmount represents less than $0.01 per share.

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

34 Multi-Cap Core Fund

Notes to financial statements 4/30/19

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, 2018 through April 30, 2019.

Putnam Multi-Cap Core Fund (the fund) is a diversified series of Putnam Funds Trust (the Trust), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The goal of the fund is to seek capital appreciation. The fund invests mainly in common stocks (growth or value stocks or both) of U.S. companies of any size that Putnam Management believes have favorable investment potential. For example, the fund may purchase stocks of companies with stock prices that reflect a value lower than that which Putnam Management places on the company. Putnam Management may also consider other factors that it believes will cause the stock price to rise. Putnam Management may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments.

The fund offers class A, class B, class C, class M, class R, class R6 and class Y shares. The fund began offering class R6 shares on May 22, 2018. Purchases of class B shares are closed to new and existing investors except by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment. Class A and class M shares are sold with a maximum front-end sales charge of 5.75% and 3.50%, respectively. Class A shares generally are not subject to a contingent deferred sales charge, and class M, class R, class R6 and class Y shares are not subject to a contingent deferred sales charge. Class B shares, which convert to class A shares after approximately eight years, are not subject to 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 are subject to a one-year 1.00% contingent deferred sales charge and generally convert to class A shares after approximately ten years. 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 R6 and class Y shares, which are sold at net asset value, are generally subject to the same expenses as class A, class B, class C, class M and class R shares, but do not bear a distribution fee, and in the case of class R6 shares, bear a lower investor servicing fee, which is identified in Note 2. Class R6 and class Y shares are not available to all investors.

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

The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.

Under the fund’s Amended and Restated Agreement and Declaration of Trust, any claims asserted against or on behalf of the Putnam Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.

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

Multi-Cap Core Fund 35

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 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.

Market quotations are not considered to be readily available for certain debt obligations (including short-term investments with remaining maturities of 60 days or less) and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2.

Many securities markets and exchanges outside the U.S. close prior to the scheduled 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 scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value certain 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. The foreign equity 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.

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.

36 Multi-Cap Core Fund

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

All premiums/discounts are amortized/accreted on a yield-to-maturity basis.

Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The fair value of foreign securities, currency holdings, and other assets and liabilities is recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when earned or incurred. The fund does not isolate that portion of realized or unrealized gains or losses resulting from changes in the foreign exchange rate on investments from fluctuations arising from changes in the market prices of the securities. Such gains and losses are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net realized exchange gains or losses on disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions and the difference between the amount of investment income and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign currencies arise from changes in the value of 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.

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.

Futures contracts The fund uses futures contracts to equitize cash.

The potential risk to the fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. With futures, there is minimal counterparty credit risk to the fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin.”

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

Multi-Cap Core Fund 37

Master agreements The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and, with respect to those amounts which can be sold or repledged, is presented in the fund’s portfolio.

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

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

At the close of the reporting period, the fund had a net liability position of $118,700 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $143,913 and may include amounts related to unsettled agreements.

Securities lending The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. Income from securities lending, net of expenses, is included in investment income on the Statement of operations. Cash collateral is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. At the close of the reporting period, the fund received cash collateral of $99,589,606 and the value of securities loaned amounted to $97,140,180.

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 $317.5 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 1.25% plus the higher of (1) the Federal Funds rate and (2) the overnight LIBOR 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 0.21% 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

38 Multi-Cap Core Fund

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.

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 losses on wash sale transactions, from nontaxable dividends and from partnership income. 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 $118,312 to increase undistributed net investment income, $24,115,638 to decrease paid-in capital and $23,997,326 to increase accumulated net realized gain.

Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. 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	$647,315,347
Unrealized depreciation	(87,108,668)
Net unrealized appreciation	560,206,679
Undistributed ordinary income	20,653,275
Undistributed long-term gain	93,335,344
Undistributed short-term gain	2,657,363
Cost for federal income tax purposes	$2,111,883,058

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

Note 2: Management fee, administrative services and other transactions

The fund pays Putnam Management a management fee (based on the fund’s average net assets and computed and paid monthly) at annual rates that may vary based on the average of the aggregate net assets of all open-end mutual funds sponsored by Putnam Management (excluding net assets of funds that are invested in, or that are invested in by, other Putnam funds to the extent necessary to avoid “double counting” of those assets). Such annual rates may vary as follows:


0.710%	of the first $5 billion,	0.510%	of the next $50 billion,
0.660%	of the next $5 billion,	0.490%	of the next $50 billion,
0.610%	of the next $10 billion,	0.480%	of the next $100 billion and
0.560%	of the next $10 billion,	0.475%	of any excess thereafter.

For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.553% of the fund’s average net assets.

Putnam Management has contractually agreed, through August 30, 2019, to waive fees and/or reimburse the fund’s expenses to the extent necessary to limit the cumulative expenses of the fund, exclusive of brokerage, interest, taxes, investment-related expenses, extraordinary expenses, acquired fund fees and expenses and

Multi-Cap Core Fund 39

payments under the fund’s investor servicing contract, investment management contract and distribution plans, on a fiscal year-to-date basis to an annual rate of 0.20% of the fund’s average net assets over such fiscal year-to-date period. During the reporting period, the fund’s expenses were not reduced as a result of this limit.

Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay 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 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 for class A, class B, class C, class M, class R and class Y shares that included (1) a per account fee for each direct and underlying non-defined contribution account (retail account) of the fund; (2) a specified rate of the fund’s assets attributable to defined contribution plan accounts; and (3) a specified rate based on the average net assets in retail accounts. Putnam Investor Services, Inc. has agreed that the aggregate investor servicing fees for each fund’s retail and defined contribution accounts for these share classes will not exceed an annual rate of 0.25% of the fund’s average assets attributable to such accounts.

Class R6 shares paid a monthly fee based on the average net assets of class R6 shares at an annual rate of 0.05%.

During the reporting period, the expenses for each class of shares related to investor servicing fees were as follows:


Class A	$2,563,046	Class R	6,676
Class B	61,630	Class R6	15,771
Class C	281,975	Class Y	1,008,551
Class M	29,491	Total	$3,967,140

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 $27,316 under the expense offset arrangements and by $12,725 under the brokerage/service arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $1,770, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.

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

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

The fund has adopted distribution plans (the Plans) with respect to the following share classes 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

40 Multi-Cap Core Fund

provided and expenses incurred in distributing shares of the fund. The Plans provide payments by the fund to Putnam Retail Management Limited Partnership at an annual rate of up to the following amounts (Maximum %) of the average net assets attributable to each class. The Trustees have approved payment by the fund at the following annual rate (Approved %) of the average net assets attributable to each class. During the reporting period, the class-specific expenses related to distribution fees were as follows:


	Maximum %	Approved %	Amount
Class A	0.35%	0.25%	$3,741,051
Class B	1.00%	1.00%	362,658
Class C	1.00%	1.00%	1,667,611
Class M	1.00%	0.75%	129,377
Class R	1.00%	0.50%	19,694
Total			$5,920,391

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $142,351 and $2,283 from the sale of class A and class M shares, respectively, and received $12,545 and $2,723 in contingent deferred sales charges from redemptions of class B and class C shares, respectively.

A deferred sales charge of up to 1.00% is assessed on certain redemptions of class A shares. For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received $162 on class A 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)	$926,338,814	$1,073,563,779
U.S. government securities (Long-term)	—	—
Total	$926,338,814	$1,073,563,779

The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales of long-term securities from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.

Note 4: Capital shares

At the close of the reporting period, there were an unlimited number of shares of beneficial interest authorized. Transactions, including, if applicable, direct exchanges pursuant to share conversions, in capital shares were as follows:


	YEAR ENDED 4/30/19		YEAR ENDED 4/30/18
Class A	Shares	Amount	Shares	Amount
Shares sold	3,205,046	$73,593,435	2,641,855	$59,270,120
Shares issued in connection with
reinvestment of distributions	327,533	7,376,876	162,081	3,591,713
Shares issued in connection with the
merger of Putnam Investors Fund	70,558,629	1,628,069,815	—	—
	74,091,208	1,709,040,126	2,803,936	62,861,833
Shares repurchased	(9,282,939)	(211,906,066)	(2,017,265)	(44,062,541)
Net increase	64,808,269	$1,497,134,060	786,671	$18,799,292

Multi-Cap Core Fund 41


	YEAR ENDED 4/30/19		YEAR ENDED 4/30/18
Class B	Shares	Amount	Shares	Amount
Shares sold	84,609	$1,886,506	73,562	$1,622,994
Shares issued in connection with
reinvestment of distributions	17,276	383,248	12,068	261,400
Shares issued in connection with the
merger of Putnam Investors Fund	1,188,956	26,691,232	—	—
	1,290,841	28,960,986	85,630	1,884,394
Shares repurchased	(384,618)	(8,549,627)	(97,802)	(2,075,323)
Net increase (decrease)	906,223	$20,411,359	(12,172)	$(190,929)

	YEAR ENDED 4/30/19		YEAR ENDED 4/30/18
Class C	Shares	Amount	Shares	Amount
Shares sold	1,532,840	$34,161,025	1,590,327	$34,776,009
Shares issued in connection with
reinvestment of distributions	128,303	2,859,467	97,000	2,099,083
Shares issued in connection with the
merger of Putnam Investors Fund	1,704,434	38,212,903	—	—
	3,365,577	75,233,395	1,687,327	36,875,092
Shares repurchased	(1,803,173)	(39,905,873)	(1,583,754)	(33,765,036)
Net increase	1,562,404	$35,327,522	103,573	$3,110,056

	YEAR ENDED 4/30/19		YEAR ENDED 4/30/18
Class M	Shares	Amount	Shares	Amount
Shares sold	41,816	$919,936	35,022	$776,444
Shares issued in connection with
reinvestment of distributions	3,778	83,657	1,348	29,574
Shares issued in connection with the
merger of Putnam Investors Fund	821,384	18,704,548	—	—
	866,978	19,708,141	36,370	806,018
Shares repurchased	(83,404)	(1,863,060)	(20,229)	(443,398)
Net increase	783,574	$17,845,081	16,141	$362,620

	YEAR ENDED 4/30/19		YEAR ENDED 4/30/18
Class R	Shares	Amount	Shares	Amount
Shares sold	53,589	$1,234,701	59,816	$1,309,745
Shares issued in connection with
reinvestment of distributions	2,458	56,110	2,192	48,433
Shares issued in connection with the
merger of Putnam Investors Fund	59,091	1,357,752	—	—
	115,138	2,648,563	62,008	1,358,178
Shares repurchased	(35,051)	(797,188)	(51,548)	(1,109,268)
Net increase	80,087	$1,851,375	10,460	$248,910

42 Multi-Cap Core Fund


			FOR THE PERIOD 5/22/18 (COMMENCEMENT OF
			OPERATIONS) TO 4/30/19
Class R6			Shares	Amount
Shares sold			1,021,052	$24,549,097
Shares issued in connection with reinvestment of distributions			11,412	260,367
Shares issued in connection with the merger of Putnam
Investors Fund			981,176	22,739,139
			2,013,640	47,548,603
Shares repurchased			(368,013)	(8,398,613)
Net increase (decrease)			1,645,627	$39,149,990

	YEAR ENDED 4/30/19		YEAR ENDED 4/30/18
Class Y	Shares	Amount	Shares	Amount
Shares sold	7,719,494	$177,730,000	7,056,726	$154,706,432
Shares issued in connection with
reinvestment of distributions	315,047	7,237,683	303,248	6,741,213
Shares issued in connection with the
merger of Putnam Investors Fund	14,244,030	330,084,032	—	—
	22,278,571	515,051,715	7,359,974	161,447,645
Shares repurchased	(13,689,070)	(314,014,830)	(8,480,082)	(180,332,926)
Net increase (decrease)	8,589,501	$201,036,885	(1,120,108)	$(18,885,281)

Note 5: Affiliated transactions

Transactions during the reporting period with any company which is under common ownership or control were as follows:


					Shares
					outstanding
					and fair
	Fair value as	Purchase	Sale	Investment	value as
Name of affiliate	of 4/30/18	cost	proceeds	income	of 4/30/19
Short-term investments
Putnam Cash Collateral
Pool, LLC^*	$13,676,525	$1,016,840,236	$930,927,155	$1,294,040	$99,589,606
Putnam Short Term
Investment Fund^**	31,719,811	358,960,122	383,278,797	2,068,283	7,401,136
Total Short-term
investments	$45,396,336	$1,375,800,358	$1,314,205,952	$3,362,323	$106,990,742

^*No management fees are charged to Putnam Cash Collateral Pool, LLC (Note 1). Investment income shown is included in securities lending income on the Statement of operations. There were no realized or unrealized gains or losses during the period.

^**Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.

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.

Multi-Cap Core Fund 43

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 based on an average of the holdings at the end of each fiscal quarter:


Written equity option contracts (contract amount)	$260,000
Futures contracts (number of contracts)	400
Warrants (number of warrants)	1,600,000

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


Fair value of derivative instruments as of the close of the reporting period
	ASSET DERIVATIVES		LIABILITY DERIVATIVES
Derivatives not
accounted for as	Statement of		Statement of
hedging instruments	assets and		assets and
under ASC 815	liabilities location	Fair value	liabilities location	Fair value
Equity contracts	Investments	$504,738	Payables	$118,700
Total		$504,738		$118,700

The following is a summary of realized and change in unrealized gains or losses of derivative instruments in the Statement of operations for the reporting period (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	Futures	Total
Equity contracts	$101,885	$1,130,808	$141,377	$1,374,070
Total	$101,885	$1,130,808	$141,377	$1,374,070

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	Total
Equity contracts		$(8,800)	$161,749	$152,949
Total		$(8,800)	$161,749	$152,949

Note 8: Acquisition of Putnam Investors Fund

On June 25, 2018, the fund issued 70,558,629, 1,188,956, 1,704,434, 821,384, 59,091, 981,176 and 14,244,030 class A, class B, class C, class M, class R, class R6 and class Y shares, respectively, for 55,935,004, 1,024,174, 1,390,034, 683,201, 47,067, 767,037 and 11,182,434 class A, class B, class C, class M, class R, class R6 and class Y shares of Putnam Investors Fund to acquire that fund’s net assets in a tax-free exchange approved by the shareholders. The purpose of the transaction was to combine two Putnam funds with similar investment objectives and substantially similar investment strategies into a single Putnam fund with a larger asset base and therefore potentially lower expenses for fund shareholders. The investment portfolio of Putnam Investors Fund, with a fair value of $2,029,668,326 and an identified cost of $1,599,648,819 at June 22, 2018, was the principal asset acquired by the fund. The net assets of the fund and Putnam Investors Fund on June 22, 2018, were $678,897,926 and $2,065,859,422, respectively. On June 22, 2018, Putnam Investors Fund had distributions in excess of net investment income of $1,139,768, accumulated net realized loss of $21,119,815 and unrealized appreciation of $430,019,507. The aggregate net assets of the fund immediately following the acquisition were $2,744,757,348.

44 Multi-Cap Core Fund

Assuming the acquisition had been completed on 5/1/18, the fund’s pro forma results of operations for the reporting period are as follows (unaudited):


Net investment Income	$26,329,845
Net gain on investments	$185,943,799
Net Increase in net assets resulting from operations	$212,273,644

Because the combined investment portfolios have been managed as a single portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Putnam Investors Fund that have been included in the fund’s Statement of operations for the current fiscal period.

Note 9: 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.


	Barclays Bank PLC	Citibank, N.A.	UBS AG	Total
Assets:
Purchased options^**#	$—	$—	$—	$—
Total Assets	$—	$—	$—	$—
Liabilities:
Written options^#	33,443	7,672	77,585	118,700
Total Liabilities	$33,443	$7,672	$77,585	$118,700
Total Financial and Derivative	$(33,443)	$(7,672)	$(77,585)	$(118,700)
Net Assets
Total collateral received	$(30,981)	$—	$(77,585)
(pledged)^†##
Net amount	$(2,462)	$(7,672)	$—
Controlled collateral received
(including TBA commitments)^**	$—	$—	$—	$—
Uncontrolled collateral received	$—	$—	$—	$—
Collateral (pledged) (including
TBA commitments)^**	$(30,981)	$—	$(112,932)	$(143,913)

^**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.

Multi-Cap Core Fund 45

Federal tax information (Unaudited)

Pursuant to §852 of the Internal Revenue Code, as amended, the fund hereby designates $110,099,530 as a capital gain dividend with respect to the taxable year ended April 30, 2019, or, if subsequently determined to be different, the net capital gain of such year.

The fund designated 100.00% of ordinary income distributions as qualifying for the dividends received deduction for corporations.

For the reporting period, the fund hereby designates 100.00%, or the maximum amount allowable, of its taxable ordinary income distributions as qualified dividends taxed at the individual net capital gain rates.

For the reporting period, pursuant to §871(k) of the Internal Revenue Code, the fund hereby designates no monies of distributions paid as qualifying to be taxed as interest-related dividends, and $5,461,492 to be taxed as short-term capital gain dividends for nonresident alien shareholders.

The Form 1099 that will be mailed to you in January 2020 will show the tax status of all distributions paid to your account in calendar 2019.

46 Multi-Cap Core Fund

Officers

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


Jonathan S. Horwitz (Born 1955)	Susan G. Malloy (Born 1957)
Executive Vice President, Principal Executive Officer,	Vice President and Assistant Treasurer
and Compliance Liaison	Since 2007
Since 2004	Head of Accounting, Middle Office, & Control Services,
	Putnam Investments and Putnam Management
Robert T. Burns (Born 1961)
Vice President and Chief Legal Officer	Mark C. Trenchard (Born 1962)
Since 2011	Vice President and BSA Compliance Officer
General Counsel, Putnam Investments,	Since 2002
Putnam Management, and Putnam Retail Management	Director of Operational Compliance, Putnam
	Investments and Putnam Retail Management
James F. Clark (Born 1974)
Vice President and Chief Compliance Officer	Nancy E. Florek (Born 1957)
Since 2016	Vice President, Director of Proxy Voting and Corporate
Chief Compliance Officer, Putnam Investments	Governance, Assistant Clerk, and Assistant Treasurer
and Putnam Management	Since 2000

Michael J. Higgins (Born 1976)	Denere P. Poulack (Born 1968)
Vice President, Treasurer, and Clerk	Assistant Vice President, Assistant Clerk,
Since 2010	and Assistant Treasurer
	Since 2004
Janet C. Smith (Born 1965)
Vice President, Principal Financial Officer, Principal
Accounting Officer, and Assistant Treasurer
Since 2007
Head of Fund Administration Services,
Putnam Investments and Putnam Management

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 100 Federal Street, Boston, MA 02110.

Multi-Cap Core 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.


Blend	Value
Capital Spectrum Fund	Convertible Securities Fund
Emerging Markets Equity Fund	Equity Income Fund
Equity Spectrum Fund	International Value Fund
Europe Equity Fund	Small Cap Value Fund
Global Equity Fund
International Capital Opportunities Fund	Income
International Equity Fund	Diversified Income Trust
Multi-Cap Core Fund	Floating Rate Income Fund
Research Fund	Global Income Trust
	Government Money Market Fund^*
Global Sector	High Yield Fund
Global Communications Fund	Income Fund
Global Consumer Fund	Money Market Fund^†
Global Financials Fund	Mortgage Securities Fund
Global Health Care Fund	Short Duration Bond Fund
Global Industrials Fund	Short Duration Income Fund
Global Natural Resources Fund
Global Sector Fund	Tax-free Income
Global Technology Fund	AMT-Free Municipal Fund
Global Utilities Fund	Intermediate-Term Municipal Income Fund
	Short-Term Municipal Income Fund
Growth	Tax Exempt Income Fund
Growth Opportunities Fund	Tax-Free High Yield Fund
International Growth Fund
Small Cap Growth Fund	State tax-free income funds^‡:
Sustainable Future Fund	California, Massachusetts, Minnesota,
Sustainable Leaders Fund	New Jersey, New York, Ohio, and Pennsylvania.

50 Multi-Cap Core Fund


Absolute Return	Asset Allocation
Fixed Income Absolute Return Fund	Dynamic Risk Allocation Fund
Multi-Asset Absolute Return Fund	George Putnam Balanced Fund

Putnam PanAgora**	Dynamic Asset Allocation Balanced Fund
Putnam PanAgora Managed Futures Strategy	Dynamic Asset Allocation Conservative Fund
Putnam PanAgora Market Neutral Fund	Dynamic Asset Allocation Growth Fund
Putnam PanAgora Risk Parity Fund
	Retirement Income Fund Lifestyle 1

	RetirementReady^® 2060 Fund
	RetirementReady^® 2055 Fund
	RetirementReady^® 2050 Fund
	RetirementReady^® 2045 Fund
	RetirementReady^® 2040 Fund
	RetirementReady^® 2035 Fund
	RetirementReady^® 2030 Fund
	RetirementReady^® 2025 Fund
	RetirementReady^® 2020 Fund

^*You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

^†You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

^‡Not available in all states.

^**Sub-advised by PanAgora Asset Management.

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

Multi-Cap Core 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 Multi-Cap Core Fund

Fund information

Founded over 80 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 funds across income, value, blend, sustainable, growth, asset allocation, absolute return, and global sector categories.


Investment Manager	Trustees	Michael J. Higgins
Putnam Investment	Kenneth R. Leibler, Chair	Vice President, Treasurer,
Management, LLC	Liaquat Ahamed	and Clerk
100 Federal Street	Ravi Akhoury
Boston, MA 02110	Barbara M. Baumann	Janet C. Smith
	Katinka Domotorffy	Vice President,
Investment Sub-Advisor	Catharine Bond Hill	Principal Financial Officer,
Putnam Investments Limited	Paul L. Joskow	Principal Accounting Officer,
16 St James’s Street	Robert E. Patterson	and Assistant Treasurer
London, England SW1A 1ER	George Putnam, III
	Robert L. Reynolds	Susan G. Malloy
Marketing Services	Manoj P. Singh	Vice President and
Putnam Retail Management		Assistant Treasurer
100 Federal Street	Officers
Boston, MA 02110	Robert L. Reynolds	Mark C. Trenchard
	President	Vice President and
Custodian		BSA Compliance Officer
State Street Bank	Jonathan S. Horwitz
and Trust Company	Executive Vice President,	Nancy E. Florek
	Principal Executive Officer,	Vice President, Director of
Legal Counsel	and Compliance Liaison	Proxy Voting and Corporate
Ropes & Gray LLP		Governance, Assistant Clerk,
	Robert T. Burns	and Assistant Treasurer
Independent Registered	Vice President and
Public Accounting Firm	Chief Legal Officer	Denere P. Poulack
KPMG LLP		Assistant Vice President, Assistant
	James F. Clark	Clerk, and Assistant Treasurer
	Vice President and
	Chief Compliance Officer

This report is for the information of shareholders of Putnam Multi- Cap Core 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.


Fiscal year ended	Audit Fees	Audit-Related Fees	Tax Fees	All Other Fees


April 30, 2019	$35,513	$ —	$3,438	$ —
April 30, 2018	$40,462	$17,500*	$3,338	$ —


Fiscal year ended	Audit-Related Fees	Tax Fees	All Other Fees	Total Non-Audit Fees


April 30, 2019	$ —	$ —	$ —	$ —

April 30, 2018	$ —	$ —	$ —	$ —


	CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES


	Exact name of registrant as specified in charter:	Putnam Funds Trust


	Address of principal executive offices:	100 Federal Street, Boston, Massachusetts 02110


	Name and address of agent for service:	Robert T. Burns, Vice President 100 Federal Street Boston, Massachusetts 02110


	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


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


	(c) In February 2018, the Code of Ethics of Putnam Investments was amended. The key changes to the Code of Ethics are as follows: (i) Prohibition of investing in public coin offerings or token offerings, (ii) Removal of monetary fines as available sanctions for violations of the Code of Ethics, and (iii) Expanded definition of “Immediate Family Member”.


	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:


	For the fiscal years ended April 30, 2019 and April 30, 2018, the fund's independent auditor billed aggregate non-audit fees in the amounts of $3,438 and $3,338 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.


	UNITED STATES SECURITIES AND EXCHANGE COMMISSION


	Washington, D.C. 20549


	FORM N-CSR


	Item 1. Report to Stockholders:


	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, Compliance and Distributions Committee. The Audit, Compliance and Distributions 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 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:


	Item 8. Portfolio Managers of Closed-End Investment Companies


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


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


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


	Item 12. Disclosures of Securities Lending Activities for Closed-End Management Investment Companies:


	(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.


	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.


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


	/s/ Jonathan S. Horwitz Jonathan S. Horwitz Principal Executive Officer