Putnam Dynamic
Asset Allocation
Equity Fund

Annual report
5 | 31 | 21

 

 

Message from the Trustees

July 13, 2021

Dear Fellow Shareholder:

This summer, the economy is in a much different condition than a year ago, or even six months ago. Most states have lifted the Covid-19 pandemic-related restrictions, and U.S. gross domestic product has returned nearly to pre-2020 levels. However, the global economy is a different story. Beyond our shores, many nations lag the United States in vaccination rates and business activity.

While there are reasons to feel some relief, it’s important to recognize what may be a new normal. Many changes hastened by the pandemic could be lasting. Dynamic, well-managed companies have adapted to seize new, more sustainable growth opportunities.

An active investment philosophy is well suited to this time. Putnam’s research teams are analyzing the fundamentals of what has stayed the same and what has changed to uncover valuable investment insights and potential risks.

Thank you for investing with Putnam.

 

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, and you may have a gain or a loss when you sell your shares. Performance of class A shares assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart do not reflect a sales charge of 5.75%; had they, returns would have been lower. See page 3 and pages 8–9 for additional performance information. For a portion of the periods, the fund had expense limitations, without which returns would have been lower. To obtain the most recent month-end performance, visit putnam.com.

Lipper peer group average provided by Lipper, a Refinitiv company.

* Putnam Equity Blended Index is an unmanaged index administered by Putnam Management and comprises 75% the Russell 3000 Index, 19% the MSCI EAFE Index (ND), and 6% the MSCI Emerging Markets Index (GD). See index descriptions on pages 13–14.

 

 

This comparison shows your fund’s performance in the context of broad market indexes for the 12 months ended 5/31/21. See page 2 and pages 8–9 for additional fund performance information. Index descriptions can be found on pages 13–14.

All Bloomberg Barclays indices provided by Bloomberg Index Services Limited.

 

 

Please describe the investing environment during the 12-month period.

Global financial markets ended the period mostly higher. Key equity market indexes advanced, driven by progress on Covid-19 vaccinations, stimulus packages, loose monetary policy, and signs of economic recovery. Market momentum was periodically disrupted by concerns over a rising number of new Covid-19 variants, a global sell-off of technology stocks, and delays in the vaccine supply chain. For the 12-month reporting period, the S&P 500 Index — a broad measure of U.S. stock performance — rallied 40.32%. International stocks, as measured by the MSCI EAFE Index [ND], posted a return of 38.85% for the period.

We expect the U.S. economic recovery to support a stronger global comeback. President Biden’s $1.9 trillion pandemic relief package has added tailwinds to the U.S. economy, boosted by vaccine rollouts, in our view. The Federal Reserve has kept interest rates at record lows, and the European Central Bank has also pledged to hold rates at historic lows and expand its bond-buying program. The rate-sensitive Bloomberg Barclays U.S. Aggregate Bond Index, a measure of

 

 

This table shows the fund’s top 10 holdings by percentage of the fund’s net assets as of 5/31/21. Short-term investments and derivatives, if any, are excluded. Holdings may vary over time.

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

A negative percentage reflects the effect of fund strategies that are designed to enhance performance if certain securities decline in value.

 

 

investment-grade [IG] corporate bonds, fell 0.40% for the period. The yield on the benchmark 10-year U.S. Treasury note rose to 1.58% at the end of May 2021 from 0.66% at the beginning of the reporting period.

How did Putnam Dynamic Asset Allocation Equity Fund perform for the period?

The fund’s class A shares reported a return of 42.70%. The fund slightly underperformed its custom benchmark, the Putnam Equity Blended Index, which gained 43.41%, and its primary benchmark, the all-equity Russell 3000 Index, a broad index of U.S. stocks, which rose 43.91%.

What strategies helped and what detracted in the fund’s performance?

Overall, our dynamic asset allocation decisions added to performance, while our active implementation decisions and security selections detracted during the period. Among our asset allocation strategies, an underweight position in international equities relative to the Putnam Equity Blended Index benchmark and an overweight position in U.S. large-cap value equities relative to the benchmark benefited performance. A slightly overweight position in emerging-market equities relative to the benchmark also aided results. An overweight position in U.S. large-cap growth equities and a slightly underweight position in small-cap equities relative to the Putnam Equity Blended Index benchmark detracted from performance.

Active implementation weakness was primarily driven by U.S. large-cap stock selection, specifically our fundamental U.S. large-cap growth and quantitative U.S. large-cap equity strategies. These losses were partially offset

ABOUT DERIVATIVES

Derivatives are an increasingly common type of investment instrument, the performance of which is derived from an underlying security, index, currency, or other area of the capital markets. Derivatives employed by the fund’s managers generally serve one of two main purposes: to implement a strategy that may be difficult or more expensive to invest in through traditional securities, or to hedge unwanted risk associated with a particular position.

For example, the fund’s managers might use currency forward contracts to capitalize on an anticipated change in exchange rates between two currencies. This approach would require a significantly smaller outlay of capital than purchasing traditional bonds denominated in the underlying currencies. In another example, the managers may identify a bond that they believe is undervalued relative to its risk of default, but may seek to reduce the interest-rate risk of that bond by using interest-rate swaps, a derivative through which two parties “swap” payments based on the movement of certain rates. In other examples, the managers may use options and futures contracts to hedge against a variety of risks by establishing a combination of long and short exposures to specific equity markets or sectors.

Like any other investment, derivatives may not appreciate in value and may lose money. Derivatives may amplify traditional investment risks through the creation of leverage and may be less liquid than traditional securities. And because derivatives typically represent contractual agreements between two financial institutions, derivatives entail “counterparty risk,” which is the risk that the other party is unable or unwilling to pay. Putnam monitors the counterparty risks we assume. For example, Putnam often enters into collateral agreements that require the counterparties to post collateral on a regular basis to cover their obligations to the fund. Counterparty risk for exchange-traded futures and centrally cleared swaps is mitigated by the daily exchange of margin and other safeguards against default through their respective clearinghouses.

 

 

by international stock selection strength, including both quantitative and fundamental strategies. Emerging-market equity and fundamental U.S. large-cap value stock selection also aided performance.

What is your outlook for the remainder of 2021?

Widespread vaccine distribution continues to aid the global economic recovery and a return to normal life. We are encouraged by the current tailwinds for financial assets, including an increase in consumer spending due to the economic reopening, the impact of U.S. stimulus, and dovish rhetoric on interest rates from the Federal Reserve. Still, we anticipate some volatility in the months ahead as investors weigh the continued rollout of vaccines and the pace of reopening, with its implications for inflation and higher interest rates.

Given the current environment, we are bullish on equities in the second half of 2021 until the Fed is close to signaling a taper of its asset purchase program. The combination of pent-up demand and the Fed’s easy monetary policy makes a compelling case for equities, in our opinion.

Thank you, Jason, 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.

 

 

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended May 31, 2021, 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 P 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 5/31/21

 

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After-sales-charge returns for class A shares reflect the deduction of the maximum 5.75% sales charge, levied at the time of purchase. Class P shares have no initial sales charge or CDSC. Performance for class P shares prior to their inception is derived from the historical performance of class A shares and has not been adjusted for the lower investor servicing fees applicable to class P 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.

Comparative index returns For periods ended 5/31/21

 

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

Lipper peer group average provided by Lipper, a Refinitiv company.

^* Putnam Equity Blended Index is an unmanaged index administered by Putnam Management and comprises 75% the Russell 3000 Index, 19% the MSCI EAFE Index (ND), and 6% the MSCI Emerging Markets Index (GD). See index descriptions on pages 13–14.

^† Over the 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 5/31/21, there were 645, 583, 508, 346, and 287 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 P shares would have been valued at $29,249.

Fund price and distribution information For the 12-month period ended 5/31/21

 

The classification of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate for class A 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) was levied at the time of purchase. Final distribution information will appear on your year-end tax forms.

Fund performance as of most recent calendar quarter Total return for periods ended 6/30/21

 

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

 

 

Your fund’s expenses

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

Expense ratios

 

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

Expenses are shown as a percentage of average net assets.

^* Reflects Putnam Management’s contractual obligation to limit certain fund expenses through 9/30/21.

^† 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 12/1/20 to 5/31/21. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

 

^* 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 5/31/21. The expense ratio may differ for each share class.

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

 

 

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended 5/31/21, use the following calculation method. To find the value of your investment on 12/1/20, 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.

 

^* 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 5/31/21. The expense ratio may differ for each share class.

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

 

 

Consider these risks before investing

The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. If the quantitative models or data that are used in managing the fund prove to be incorrect or incomplete, investment decisions made in reliance on the models or data may not produce the desired results and the fund may realize losses. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the 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.

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 P shares require no minimum initial investment amount and no minimum subsequent investment amount. There is no initial or deferred sales charge. They are only available to other Putnam funds and other accounts managed by Putnam Management or its affiliates.

Comparative indexes

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

ICE BofA (Intercontinental Exchange Bank of America) U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

MSCI EAFE Index (ND) is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australasia. Calculated with net dividends (ND), this total return index reflects the reinvestment of dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties.

MSCI Emerging Markets Index (GD) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. Gross total return (GD) indexes reinvest as much as possible of a company’s dividend distributions.

Putnam Equity Blended Index is an unmanaged index representing global stock market performance, and comprises 75% the Russell 3000 Index, 19% the MSCI EAFE Index (ND), and 6% the MSCI Emerging Markets Index (GD).

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.

BLOOMBERG^® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS^® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or limited, as to the results to be obtained therefrom, and to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

ICE Data Indices, LLC (“ICE BofA”), used with permission. ICE BofA permits use of the ICE BofA 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 BofA 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.

Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company.

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

 

 

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, 2020, 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 May 31, 2021, Putnam employees had approximately $579,000,000 and the Trustees had approximately $81,000,000 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.

Liquidity risk management program

Putnam, as the administrator of the fund’s liquidity risk management program (appointed by the Board of Trustees), presented the most recent annual report on the program to the Trustees in April 2021. The report covered the structure of the program, including the program documents and related policies and procedures adopted to comply with Rule 22e-4 under the Investment Company Act of 1940, and reviewed the operation of the program from January 2020 through December 2020. The report included a description of the annual liquidity assessment of the fund that Putnam performed in November 2020. The report noted that there were no material compliance exceptions identified under Rule 22e-4 during the period. The report included a review of the governance of the program and the methodology for classification of the fund’s investments. The report also included a discussion of liquidity monitoring during the period, including during the market liquidity challenges caused by the Covid-19 pandemic, and the impact those challenges had on the liquidity of the fund’s investments. Putnam concluded that the program has been operating effectively and adequately to ensure compliance with Rule 22e-4.

 

 

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.

 

 

Audited 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 audited 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.

 

 

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Putnam Funds Trust and Shareholders
of Putnam Dynamic Asset Allocation Equity Fund:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the fund’s portfolio, of Putnam Dynamic Asset Allocation Equity Fund (one of the funds constituting Putnam Funds Trust, referred to hereafter as the “Fund”) as of May 31, 2021, the related statement of operations for the year ended May 31, 2021, the statement of changes in net assets for each of the two years in the period ended May 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of May 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended May 31, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements 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 of these financial statements 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 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, 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. 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. Our procedures included confirmation of securities owned as of May 31, 2021 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
July 13, 2021

We have served as the auditor of one or more investment companies in the Putnam Investments family of mutual funds since at least 1957. We have not been able to determine the specific year we began serving as auditor.

 

The fund’s portfolio 5/31/21

COMMON STOCKS (92.5%)*	Shares	Value
Advertising and marketing services (—%)
Publicis Groupe SA (France)	312	$21,116
		21,116
Aerospace and defense (1.2%)
Lockheed Martin Corp.	1,241	474,310
Northrop Grumman Corp.	610	223,181
Raytheon Technologies Corp.	1,544	136,968
TransDigm Group, Inc. †	171	110,952
		945,411
Agency (—%)
Poste Italiane SpA (Italy)	1,244	17,544
		17,544
Agriculture (0.2%)
Corteva, Inc.	3,638	165,529
		165,529
Airlines (0.4%)
Copa Holdings SA Class A (Panama) †	510	41,953
Southwest Airlines Co. †	4,201	258,193
		300,146
Automotive (2.0%)
Ford Motor Co. †	43,629	633,929
General Motors Co. †	4,735	280,833
Knorr-Bremse AG (Germany)	302	37,453
Porsche Automobil Holding SE (Preference) (Germany)	440	49,632
Stellantis NV (Italy)	4,223	83,704
Tesla, Inc. †	358	223,829
United Rentals, Inc. †	576	192,361
Volkswagen AG (Preference) (Germany)	69	19,218
Volvo AB (Sweden)	2,733	71,450
		1,592,409
Banking (5.4%)
Banco Bilbao Vizcaya Argenta (Spain)	11,332	70,973
Bank Leumi Le-Israel BM (Israel) †	5,112	39,965
Bank of America Corp.	11,107	470,826
Bank of Ireland Group PLC (Ireland) †	8,371	53,531
BNP Paribas SA (France)	1,111	75,666
BOC Hong Kong Holdings, Ltd. (Hong Kong)	8,500	30,721
CaixaBank SA (Spain)	18,362	62,831
Citigroup, Inc.	13,201	1,039,050
Commonwealth Bank of Australia (Australia)	840	64,574
DBS Group Holdings, Ltd. (Singapore)	3,600	81,745
DNB ASA (Norway)	1,364	30,092
HDFC Bank, Ltd. (India) †	5,828	121,685
Israel Discount Bank, Ltd. Class A (Israel) †	4,979	24,734
JPMorgan Chase & Co.	8,173	1,342,333
KeyCorp	3,088	71,148
Mitsubishi UFJ Financial Group, Inc. (Japan)	8,800	49,675
PNC Financial Services Group, Inc. (The)	1,023	199,158
Sberbank of Russia PJSC ADR (Russia)	6,500	109,688

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Banking cont.
Skandinaviska Enskilda Banken AB (Sweden)	3,087	$39,423
State Street Corp.	1,121	97,505
Sumitomo Mitsui Financial Group, Inc. (Japan)	2,207	79,391
Sumitomo Mitsui Trust Holdings, Inc. (Japan)	800	27,467
TCS Group Holding PLC GDR 144A (Cyprus)	808	60,600
United Overseas Bank, Ltd. (Singapore)	1,800	35,483
		4,278,264
Beverage (1.5%)
Asahi Group Holdings, Ltd. (Japan)	1,600	76,027
Carlsberg A/S Class B (Denmark)	277	50,692
Coca-Cola Co. (The)	3,612	199,707
Coca-Cola Europacific Partners PLC (United Kingdom)	880	53,258
Coca-Cola HBC AG (Switzerland)	2,587	94,316
Constellation Brands, Inc. Class A	178	42,670
Diageo PLC (United Kingdom)	2,006	96,906
Keurig Dr Pepper, Inc.	2,568	94,913
PepsiCo, Inc.	3,055	451,957
		1,160,446
Biotechnology (0.9%)
Abcam PLC (United Kingdom) †	1,817	36,513
Alexion Pharmaceuticals, Inc. †	105	18,538
Amgen, Inc.	323	76,855
Biogen, Inc. †	920	246,082
Regeneron Pharmaceuticals, Inc. †	388	194,943
Vertex Pharmaceuticals, Inc. †	491	102,437
		675,368
Broadcasting (—%)
Discovery, Inc. Class A †	458	14,706
		14,706
Cable television (1.2%)
Altice USA, Inc. Class A †	1,251	45,111
Charter Communications, Inc. Class A †	495	343,793
Comcast Corp. Class A	8,554	490,486
Liberty Global PLC Class C (United Kingdom) †	2,443	66,498
		945,888
Chemicals (2.2%)
Akzo Nobel NV (Netherlands)	443	56,885
Asian Paints, Ltd. (India)	1,336	54,958
Axalta Coating Systems, Ltd. †	2,194	71,173
Brenntag AG (Germany)	753	70,833
Cabot Corp.	332	21,109
Celanese Corp.	226	37,392
Chemours Co. (The)	1,008	36,217
Covestro AG (Germany)	887	61,979
Dow, Inc.	3,357	229,685
DuPont de Nemours, Inc.	5,030	425,488
Eastman Chemical Co.	808	101,323
FMC Corp.	154	17,970
ICL Group, Ltd. (Israel)	1,779	12,895

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Chemicals cont.
LG Chem, Ltd. (South Korea)	286	$210,019
Linde PLC	177	53,248
Nitto Denko Corp. (Japan)	600	46,379
Sherwin-Williams Co. (The)	705	199,888
Shin-Etsu Chemical Co., Ltd. (Japan)	300	51,500
		1,758,941
Commercial and consumer services (2.6%)
Adecco Group AG (Switzerland)	536	36,909
Adyen NV (Netherlands) †	14	32,273
Allfunds Group PLC (United Kingdom) †	1,924	32,251
Aramark	2,558	95,541
Booking Holdings, Inc. †	55	129,885
Booz Allen Hamilton Holding Corp.	1,399	118,817
Brambles, Ltd. (Australia)	3,700	30,862
CK Hutchison Holdings, Ltd. (Hong Kong)	3,000	23,483
CoStar Group, Inc. †	171	146,034
FleetCor Technologies, Inc. †	110	30,188
Gartner, Inc. †	541	125,425
Kakao Corp. (South Korea)	820	90,433
Mastercard, Inc. Class A	1,042	375,724
Nexi SpA (Italy) †	3,763	75,899
PayPal Holdings, Inc. †	2,418	628,729
StoneCo., Ltd. Class A (Brazil) †	362	23,881
TransUnion	194	20,758
		2,017,092
Computers (5.2%)
Apple, Inc.	22,580	2,813,694
Check Point Software Technologies, Ltd. (Israel) †	200	23,396
Cisco Systems, Inc./California	8,787	464,832
Dynatrace, Inc. †	1,292	66,848
Fortinet, Inc. †	1,264	276,235
Fujitsu, Ltd. (Japan)	300	48,577
Logitech International SA (Switzerland)	281	34,801
ServiceNow, Inc. †	372	176,283
Synopsys, Inc. †	495	125,898
Twilio, Inc. Class A †	248	83,328
		4,113,892
Conglomerates (0.2%)
AMETEK, Inc.	740	99,974
General Electric Co.	2,175	30,581
		130,555
Construction (0.8%)
Compagnie De Saint-Gobain (France) †	2,062	137,845
CRH PLC (Ireland)	5,434	282,089
Eiffage SA (France)	281	30,956
Fortune Brands Home & Security, Inc.	971	100,168
Holcim, Ltd. (Switzerland)	859	51,053
		602,111

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Consumer (0.1%)
LVMH Moet Hennessy Louis Vuitton SA (France)	35	$27,828
Pandora A/S (Denmark)	288	38,896
Spectrum Brands Holdings, Inc.	195	17,334
		84,058
Consumer cyclicals (—%)
Genting Bhd (Singapore)	22,700	14,504
		14,504
Consumer finance (1.3%)
Alliance Data Systems Corp.	1,015	122,866
Capital One Financial Corp.	1,000	160,780
Discover Financial Services	274	32,129
Network International Holdings PLC (United Arab Emirates) †	6,949	39,328
SLM Corp.	3,854	78,044
Synchrony Financial	4,647	220,314
Visa, Inc. Class A	1,728	392,774
		1,046,235
Consumer goods (1.4%)
Colgate-Palmolive Co.	663	55,546
Estee Lauder Cos., Inc. (The) Class A	539	165,214
Hindustan Unilever, Ltd. (India)	1,938	62,601
L’Oreal SA (France)	241	108,239
Procter & Gamble Co. (The)	5,438	733,314
Unilever PLC (United Kingdom)	271	16,255
		1,141,169
Consumer services (1.1%)
Airbnb, Inc. Class A † S	920	129,168
Auto Trader Group PLC (United Kingdom) †	2,135	17,016
Auto1 Group SE 144A (Germany) †	1,102	59,008
JD.com, Inc. ADR (China) †	1,441	106,548
MercadoLibre, Inc. (Argentina) †	113	153,530
Netflix, Inc. †	45	22,626
Sea, Ltd. ADR (Thailand) †	305	77,238
Start Today Co., Ltd. (Japan)	1,300	43,852
Uber Technologies, Inc. †	3,212	163,266
Zalando SE (Germany) †	592	63,110
		835,362
Containers (0.1%)
Crown Holdings, Inc.	514	53,065
		53,065
Distribution (0.2%)
Ferguson PLC (United Kingdom)	560	76,166
ITOCHU Corp. (Japan)	2,400	70,994
PALTAC Corp. (Japan)	400	21,050
Sysco Corp.	334	27,054
		195,264
Electric utilities (1.8%)
AES Corp. (The)	375	9,529
AGL Energy, Ltd. (Australia)	2,770	17,339
Ameren Corp.	1,020	85,884

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Electric utilities cont.
American Electric Power Co., Inc.	3,500	$301,000
CLP Holdings, Ltd. (Hong Kong)	5,500	55,879
E.ON SE (Germany)	1,222	14,733
Electricite De France SA (France) †	2,631	36,656
Energias de Portugal (EDP) SA (Portugal)	11,290	64,777
Entergy Corp.	661	69,577
Exelon Corp.	7,878	355,456
Fortum OYJ (Finland)	2,036	57,874
Public Service Enterprise Group, Inc.	1,570	97,528
Southern Co. (The)	4,073	260,346
		1,426,578
Electrical equipment (1.1%)
ABB, Ltd. (Switzerland)	1,997	68,091
Allegion PLC (Ireland)	765	107,467
Daikin Industries, Ltd. (Japan)	300	59,011
Honeywell International, Inc.	2,002	462,282
Legrand SA (France)	669	69,866
Schneider Electric SA (France)	500	78,898
		845,615
Electronics (4.5%)
Advanced Micro Devices, Inc. †	332	26,587
Arrow Electronics, Inc. †	309	37,182
Brother Industries, Ltd. (Japan)	900	18,740
Garmin, Ltd.	381	54,193
Hoya Corp. (Japan)	1,100	143,715
MediaTek, Inc. (Taiwan)	3,000	107,604
MinebeaMitsumi, Inc. (Japan)	2,200	59,690
NVIDIA Corp.	1,945	1,263,822
NXP Semiconductors NV	470	99,367
Omron Corp. (Japan)	400	31,393
Qualcomm, Inc.	5,982	804,818
Samsung Electronics Co., Ltd. (South Korea)	4,143	299,033
Samsung Electronics Co., Ltd. (Preference) (South Korea)	875	57,272
Shenzhen Inovance Technology Co., Ltd. Class A (China)	4,600	71,171
SK Hynix, Inc. (South Korea)	1,238	140,972
Techtronic Industries Co., Ltd. (TTI) (Hong Kong)	4,500	83,090
Texas Instruments, Inc.	528	100,225
Thales SA (France)	745	76,186
Vontier Corp. †	3,153	110,607
		3,585,667
Energy (oil field) (0.6%)
Halliburton Co.	12,503	280,693
Schlumberger, Ltd.	5,689	178,236
		458,929
Energy (other) (—%)
Xinyi Solar Holdings, Ltd. (China)	6,000	10,762
		10,762

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Entertainment (0.5%)
Lite-On Technology Corp. (Taiwan)	13,000	$31,023
Live Nation Entertainment, Inc. †	1,693	152,556
Sony Group Corp. (Japan)	1,900	186,566
		370,145
Financial (1.3%)
3i Group PLC (United Kingdom)	2,350	41,454
Ally Financial, Inc.	3,605	197,230
Apollo Global Management, Inc.	1,830	104,932
B3 SA — Brasil Bolsa Balcao (Brazil)	23,600	79,426
Deutsche Boerse AG (Germany)	316	51,521
Hana Financial Group, Inc. (South Korea)	1,419	59,226
Hong Kong Exchanges and Clearing, Ltd. (Hong Kong)	500	31,298
Japan Exchange Group, Inc. (Japan)	2,300	52,979
Jefferies Financial Group, Inc.	2,286	73,449
London Stock Exchange Group PLC (United Kingdom)	854	91,793
MGIC Investment Corp.	1,347	19,828
Partners Group Holding AG (Switzerland)	51	77,506
Radian Group, Inc.	4,924	114,975
		995,617
Food (0.5%)
Campbell Soup Co.	343	16,694
Coles Group, Ltd. (Australia)	1,489	19,020
Dino Polska SA (Poland) †	631	48,846
Mondelez International, Inc. Class A	2,521	160,159
Nestle SA (Switzerland)	938	115,438
NH Foods, Ltd. (Japan)	400	15,933
WH Group, Ltd. (Hong Kong)	44,500	38,016
		414,106
Forest products and packaging (0.3%)
SIG Combibloc Group AG (Switzerland)	1,865	49,595
Stora Enso OYJ (Finland)	225	3,928
Weyerhaeuser Co. R	4,148	157,458
		210,981
Gaming and lottery (0.5%)
Aristocrat Leisure, Ltd. (Australia)	1,296	41,013
DraftKings, Inc. Class A †	2,748	137,263
Evolution Gaming Group LB (Sweden)	299	57,156
Flutter Entertainment PLC (Ireland) †	268	50,242
La Francaise des Jeux SAEM (France)	249	14,135
OPAP SA (Greece)	2,381	37,455
TABCORP Holdings, Ltd. (Australia)	4,807	18,936
		356,200
Health-care services (2.3%)
AmerisourceBergen Corp.	873	100,168
Anthem, Inc.	383	152,518
Apollo Hospitals Enterprise, Ltd. (India) †	2,036	89,464
Cardinal Health, Inc.	1,943	108,944
Cigna Corp.	662	171,359
Eurofins Scientific (Luxembourg) †	281	30,247

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Health-care services cont.
HCA Healthcare, Inc.	175	$37,588
Humana, Inc.	473	207,032
IQVIA Holdings, Inc. †	575	138,092
Laboratory Corp. of America Holdings †	430	118,026
M3, Inc. (Japan)	300	20,231
McKesson Corp.	946	182,001
UnitedHealth Group, Inc.	879	362,078
WuXi AppTec Co., Ltd. Class H (China)	3,624	77,608
		1,795,356
Homebuilding (0.3%)
Berkeley Group Holdings PLC (The) (United Kingdom)	315	20,917
Daito Trust Construction Co., Ltd. (Japan)	100	10,488
Daiwa House Industry Co., Ltd. (Japan)	1,300	37,946
PulteGroup, Inc.	3,198	184,812
		254,163
Household furniture and appliances (0.1%)
SEB SA (France)	80	14,858
Tempur Sealy International, Inc.	1,728	66,528
		81,386
Industrial (0.6%)
Johnson Controls International PLC	6,937	461,587
		461,587
Insurance (2.7%)
Aflac, Inc.	3,292	186,591
AIA Group, Ltd. (Hong Kong)	22,400	286,318
Allianz SE (Germany)	393	103,253
Allstate Corp. (The)	772	105,463
American Financial Group, Inc.	114	15,169
American International Group, Inc.	2,306	121,849
Assured Guaranty, Ltd.	3,283	156,369
Aviva PLC (United Kingdom)	10,459	61,034
AXA SA (France)	6,332	174,352
Berkshire Hathaway, Inc. Class B †	186	53,836
Direct Line Insurance Group PLC (United Kingdom)	6,498	27,416
Equitable Holdings, Inc.	2,934	93,155
Fidelity National Financial, Inc.	715	33,598
Gjensidige Forsikring ASA (Norway)	615	13,730
Lincoln National Corp.	418	29,172
MetLife, Inc.	5,777	377,585
NN Group NV (Netherlands)	131	6,634
Principal Financial Group, Inc.	1,426	93,246
Prudential PLC (United Kingdom)	2,497	53,190
RSA Insurance Group, Ltd. (United Kingdom)	4,782	46,432
Unum Group	1,749	54,167
Zurich Insurance Group AG (Switzerland)	53	22,131
		2,114,690
Investment banking/Brokerage (1.5%)
Ameriprise Financial, Inc.	744	193,321
Goldman Sachs Group, Inc. (The)	1,601	595,604

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Investment banking/Brokerage cont.
Hargreaves Lansdown PLC (United Kingdom)	490	$11,523
Morgan Stanley	3,310	301,045
Nomura Holdings, Inc. (Japan)	11,700	64,021
SEI Investments Co.	476	30,197
		1,195,711
Leisure (0.3%)
Brunswick Corp.	795	81,273
Polaris, Inc.	805	105,632
Yamaha Motor Co., Ltd. (Japan)	2,400	69,814
		256,719
Lodging/Tourism (0.7%)
Hilton Worldwide Holdings, Inc. †	2,289	286,743
Marriott International, Inc./MD Class A †	1,918	275,386
		562,129
Machinery (1.3%)
AGCO Corp.	637	88,142
Atlas Copco AB Class A (Sweden)	188	11,383
CNH Industrial NV (United Kingdom)	7,254	124,948
Cummins, Inc.	895	230,266
Deere & Co.	967	349,184
Otis Worldwide Corp.	777	60,862
Sandvik AB (Sweden)	2,613	68,785
Sany Heavy Industry Co., Ltd. Class A (China)	12,000	57,100
Toro Co. (The)	159	17,663
		1,008,333
Manufacturing (0.4%)
Airtac International Group (China)	2,000	71,953
Dover Corp.	235	35,368
Eaton Corp. PLC	944	137,116
Nordson Corp.	224	49,659
Oshkosh Corp.	410	53,890
		347,986
Media (0.2%)
Bollore SA (France)	2,478	12,909
Walt Disney Co. (The) †	849	151,674
		164,583
Medical technology (2.8%)
10x Genomics, Inc. Class A †	795	143,100
Abbott Laboratories	2,490	290,459
ABIOMED, Inc. †	340	96,757
Align Technology, Inc. †	578	341,107
Danaher Corp.	1,100	281,754
Edwards Lifesciences Corp. †	2,743	263,054
Fisher & Paykel Healthcare Corp., Ltd. (New Zealand)	514	11,092
IDEXX Laboratories, Inc. †	317	176,921
Medtronic PLC	1,562	197,734
QIAGEN NV (Netherlands) †	958	47,068
Sartorius Stedim Biotech (France)	84	36,303
Shenzhen Mindray Bio-Medical Electronics Co., Ltd. Class A (China)	900	68,288

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Medical technology cont.
Sonic Healthcare, Ltd. (Australia)	1,307	$35,053
Sonova Holding AG (Switzerland)	176	62,573
Thermo Fisher Scientific, Inc.	252	118,314
Universal Vision Biotechnology Co., Ltd. (Taiwan)	4,000	43,835
Zimmer Biomet Holdings, Inc.	194	32,656
		2,246,068
Metals (0.8%)
Anglo American PLC (United Kingdom)	1,654	73,587
BHP Billiton, Ltd. (Australia)	2,447	90,263
BHP Group PLC (United Kingdom)	1,334	40,192
Fortescue Metals Group, Ltd. (Australia)	2,752	47,586
Freeport-McMoRan, Inc. (Indonesia)	6,330	270,418
Reliance Steel & Aluminum Co.	292	49,076
Rio Tinto PLC (United Kingdom)	1,130	97,245
		668,367
Miscellaneous (0.1%)
Centre Testing International Group Co., Ltd. Class A (China)	13,302	70,149
Soaring Eagle Acquisition Corp. Class A †	1,836	18,121
		88,270
Natural gas utilities (0.2%)
Kinder Morgan, Inc.	6,095	111,782
Tokyo Gas Co., Ltd. (Japan)	900	17,753
		129,535
Oil and gas (2.3%)
APA Corp.	1,469	30,555
BP PLC (United Kingdom)	18,129	78,765
Cenovus Energy, Inc. (Canada)	6,302	52,636
Chevron Corp.	1,525	158,280
Cimarex Energy Co.	828	56,097
ConocoPhillips	3,424	190,854
Devon Energy Corp.	1,636	43,452
Enterprise Products Partners LP	3,771	89,033
EOG Resources, Inc.	540	43,384
Equinor ASA (Norway)	3,278	70,420
Exxon Mobil Corp.	2,199	128,356
Orsted AS (Denmark)	479	72,484
Reliance Industries, Ltd. (India)	4,544	135,073
Reliance Industries, Ltd. 144A (India)	1,227	70,737
Royal Dutch Shell PLC Class A (Amsterdam Exchange) (United Kingdom)	5,530	105,766
Royal Dutch Shell PLC Class B (United Kingdom)	8,259	150,448
Targa Resources Corp.	1,768	68,704
TOTAL SA (France)	380	17,565
Valero Energy Corp.	2,367	190,307
Williams Cos., Inc. (The)	1,394	36,718
		1,789,634
Pharmaceuticals (5.0%)
AbbVie, Inc.	3,339	377,975
Alkermes PLC †	1,263	28,632
AstraZeneca PLC (United Kingdom)	244	27,861

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Pharmaceuticals cont.
AstraZeneca PLC ADR (United Kingdom) S	2,341	$132,899
Bristol-Myers Squibb Co.	9,784	643,004
DexCom, Inc. †	375	138,521
Eli Lilly and Co.	3,635	726,055
GlaxoSmithKline PLC (United Kingdom)	1,656	31,590
Hikma Pharmaceuticals PLC (United Kingdom)	873	30,279
Ipsen SA (France)	148	14,940
Jazz Pharmaceuticals PLC †	95	16,922
Johnson & Johnson	2,615	442,589
Lonza Group AG (Switzerland)	342	220,142
Merck & Co., Inc.	5,150	390,833
Merck KGaA (Germany)	752	135,308
Novartis AG (Switzerland)	1,542	135,291
Novo Nordisk A/S Class B (Denmark)	1,325	104,576
Ono Pharmaceutical Co., Ltd. (Japan)	1,600	36,083
Pfizer, Inc.	1,528	59,179
Roche Holding AG (Switzerland)	374	130,016
Sanofi (France)	1,122	118,994
		3,941,689
Power producers (0.3%)
NRG Energy, Inc.	7,945	255,431
		255,431
Publishing (0.2%)
S&P Global, Inc.	446	169,244
		169,244
Railroads (0.7%)
CSX Corp.	326	32,639
Norfolk Southern Corp.	124	34,832
Union Pacific Corp.	2,277	511,710
		579,181
Real estate (1.4%)
AvalonBay Communities, Inc. R	312	64,565
Boston Properties, Inc. R	1,544	181,512
CBRE Group, Inc. Class A †	1,456	127,808
CK Asset Holdings, Ltd. (Hong Kong)	642	4,706
Duke Realty Corp. R	737	34,241
Equity Lifestyle Properties, Inc. R	481	34,084
First Industrial Realty Trust, Inc. R	1,030	52,159
Gaming and Leisure Properties, Inc. R	4,878	226,144
Goodman Group (Australia) R	4,928	73,814
Henderson Land Development Co., Ltd. (Hong Kong)	3,900	18,643
Invitation Homes, Inc. R	929	33,695
Jones Lang LaSalle, Inc. †	208	42,068
Lamar Advertising Co. Class A R	539	56,498
Link REIT (The) (Hong Kong) R	600	5,713
Medical Properties Trust, Inc. R	2,750	58,218
Persimmon PLC (United Kingdom)	475	21,301
Simon Property Group, Inc. R	135	17,346

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Real estate cont.
Sumitomo Realty & Development Co., Ltd. (Japan)	300	$9,939
Sun Hung Kai Properties, Ltd. (Hong Kong)	2,000	30,718
		1,093,172
Regional Bells (0.1%)
AT&T, Inc.	1,471	43,292
		43,292
Restaurants (0.8%)
Chipotle Mexican Grill, Inc. †	85	116,618
Darden Restaurants, Inc.	226	32,370
Jubilant Foodworks, Ltd. (India) †	955	41,018
McDonald’s Corp.	1,341	313,646
Yum China Holdings, Inc. (China)	1,250	83,189
Yum! Brands, Inc.	379	45,469
		632,310
Retail (7.2%)
Amazon.com, Inc. †	714	2,301,272
Best Buy Co., Inc.	2,064	239,919
BJ’s Wholesale Club Holdings, Inc. †	3,485	156,093
Costco Wholesale Corp.	382	144,499
Home Depot, Inc. (The)	863	275,219
Industria de Diseno Textil SA (Inditex) (Spain)	725	28,017
Kingfisher PLC (United Kingdom) †	7,814	39,955
Koninklijke Ahold Delhaize NV (Netherlands)	1,711	49,293
Li Ning Co., Ltd. (China)	13,000	122,028
Lowe’s Cos., Inc.	963	187,621
lululemon athletica, Inc. (Canada) †	456	147,347
Moncler SpA (Italy)	972	68,890
Nike, Inc. Class B	1,620	221,065
Nitori Holdings Co., Ltd. (Japan)	400	69,067
O’Reilly Automotive, Inc. †	655	350,504
Poya International Co., Ltd. (Taiwan)	2,030	39,297
Ryohin Keikaku Co., Ltd. (Japan)	500	9,464
Target Corp.	1,910	433,417
TJX Cos., Inc. (The)	2,320	156,693
Wal-Mart de Mexico SAB de CV (Mexico)	28,729	94,561
Walmart, Inc.	2,821	400,666
Wesfarmers, Ltd. (Australia)	1,926	82,241
Woolworths Group, Ltd. (Australia)	2,475	79,410
		5,696,538
Semiconductor (1.5%)
Applied Materials, Inc.	2,460	339,800
ASML Holding NV (Netherlands)	59	39,370
Lasertec Corp. (Japan)	100	18,755
Novatek Microelectronics Corp. (Taiwan)	3,000	57,750
Parade Technologies, Ltd. (Taiwan)	1,000	55,154
Renesas Electronics Corp. (Japan) †	5,600	56,798
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)	21,000	451,939
Taiwan Semiconductor Manufacturing Co., Ltd. ADR (Taiwan)	762	89,428
Tokyo Electron, Ltd. (Japan)	100	44,303
		1,153,297

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Shipping (0.5%)
A. P. Moeller-Maersck A/S Class B (Denmark)	25	$68,995
FedEx Corp.	53	16,685
Nippon Yusen KK (Japan)	900	36,996
Old Dominion Freight Line, Inc.	886	235,189
United Parcel Service, Inc. Class B	346	74,252
		432,117
Software (7.3%)
Activision Blizzard, Inc.	3,828	372,274
Adobe, Inc. †	1,689	852,235
Amdocs, Ltd.	685	53,499
Autodesk, Inc. †	1,191	340,459
Cadence Design Systems, Inc. †	2,232	283,442
Intuit, Inc.	1,298	569,939
Manhattan Associates, Inc. †	371	50,449
Microsoft Corp.	10,493	2,619,892
Oracle Corp.	1,850	145,669
Sage Group PLC (The) (United Kingdom)	3,341	31,132
Take-Two Interactive Software, Inc. †	46	8,536
Tata Consultancy Services, Ltd. (India)	3,808	166,290
Totvs SA (Brazil)	12,855	85,023
Veeva Systems, Inc. Class A †	488	142,174
		5,721,013
Staffing (0.1%)
ManpowerGroup, Inc.	459	55,534
		55,534
Technology services (8.3%)
Accenture PLC Class A	1,927	543,722
Alibaba Group Holding, Ltd. (China) †	14,841	403,490
Alphabet, Inc. Class A †	706	1,663,936
Alphabet, Inc. Class C †	301	725,880
Baidu, Inc. ADR (China) †	290	56,918
Capgemini SE (France)	294	54,728
Cognizant Technology Solutions Corp. Class A	1,938	138,683
DocuSign, Inc. †	554	111,698
DXC Technology Co. †	1,702	64,540
eBay, Inc.	1,953	118,899
Facebook, Inc. Class A †	2,006	659,432
Fidelity National Information Services, Inc.	1,634	243,434
FUJIFILM Holdings Corp. (Japan)	100	6,943
GoDaddy, Inc. Class A †	1,700	137,632
IBM Corp.	246	35,360
Leidos Holdings, Inc.	923	94,838
Meituan Dianping Class B (China) †	2,600	98,494
NAVER Corp. (South Korea)	234	76,056
Nomura Research Institute, Ltd. (Japan)	1,500	47,662
Palo Alto Networks, Inc. †	90	32,693
Pinterest, Inc. Class A †	5,586	364,766
Prosus NV (China)	307	31,788
Roku, Inc. †	863	299,211

 

 

 

COMMON STOCKS (92.5%)* cont.	Shares	Value
Technology services cont.
SCSK Corp. (Japan)	300	$17,344
Tencent Holdings, Ltd. (China) †	5,300	422,722
Yandex NV Class A (Russia) † S	1,000	67,540
		6,518,409
Telecommunications (1.0%)
American Tower Corp. R	1,108	283,050
BT Group PLC (United Kingdom) †	8,493	21,074
Equinix, Inc. R	196	144,397
Koninklijke KPN NV (Netherlands)	10,762	35,670
SK Telecom Co., Ltd. (South Korea)	226	64,236
T-Mobile US, Inc. †	1,682	237,919
		786,346
Telephone (0.9%)
Deutsche Telekom AG (Germany)	4,169	86,396
KDDI Corp. (Japan)	2,600	87,988
Nippon Telegraph & Telephone Corp. (Japan)	1,400	37,366
Verizon Communications, Inc.	9,409	531,519
		743,269
Textiles (0.1%)
Hermes International (France)	61	85,730
		85,730
Tire and rubber (0.1%)
Compagnie Generale des Etablissements Michelin SCA (France)	414	63,510
		63,510
Tobacco (0.4%)
Altria Group, Inc.	5,604	275,829
Imperial Brands PLC (United Kingdom)	3,157	71,684
		347,513
Toys (0.2%)
Nintendo Co., Ltd. (Japan)	200	123,276
		123,276
Transportation services (0.3%)
Deutsche Post AG (Germany)	2,356	160,315
Nippon Express Co., Ltd. (Japan)	500	39,924
Ryder System, Inc.	514	42,040
Yamato Holdings Co., Ltd. (Japan)	800	21,924
		264,203
Trucks and parts (0.2%)
Allison Transmission Holdings, Inc.	954	40,364
Gentex Corp.	1,494	53,037
Koito Manufacturing Co., Ltd. (Japan)	600	38,840
		132,241
Waste Management (0.2%)
Republic Services, Inc.	619	67,582
Waste Management, Inc.	853	120,000
		187,582
Total common stocks (cost $47,892,321)		$72,973,089

 

 

 

INVESTMENT COMPANIES (1.7%)*	Shares	Value
iShares Core MSCI Emerging Markets ETF	1,224	$81,580
iShares Russell 1000 Value ETF	1,591	256,358
SPDR S&P 500 ETF Trust S	2,116	888,805
SPDR S&P MidCap 400 ETF Trust	243	120,956
Total investment companies (cost $1,207,553)		$1,347,699

CONVERTIBLE PREFERRED STOCKS (0.3%)*	Shares	Value
Danaher Corp. 5.00% cv. pfd.	58	$82,528
T-Mobile US, Inc. 144A 5.25% cv. pfd. †	94	115,900
Total convertible preferred stocks (cost $156,189)		$198,428

PURCHASED OPTIONS OUTSTANDING (0.0%)*  Counterparty	Expiration  date/strike price	Notional  amount		Contract  amount	Value
Citibank, N.A.
S&P 500 Index (Call)	Jan-22/4350.00	$845,026		$201	$26,884
Total purchased options outstanding (cost $17,045)					$26,884

WARRANTS (0.0%)* †	Expiration date	Strike  price	Warrants	Value
Occidental Petroleum Corp.	8/3/27	$22.00	49	$537
Total warrants (cost $243)				$537

SHORT-TERM INVESTMENTS (6.4%)*		Principal amount/  shares	Value
Putnam Cash Collateral Pool, LLC 0.10% d	Shares	1,043,590	$1,043,590
Putnam Short Term Investment Fund Class P 0.08% L	Shares	3,522,079	3,522,079
U.S. Treasury Bills 0.012%, 6/29/21 #		$500,000	500,000
Total short-term investments (cost $5,065,665)			$5,065,669

TOTAL INVESTMENTS
Total investments (cost $54,339,016)	$79,612,306

Key to holding’s abbreviations
ADR	American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
ETF	Exchange Traded Fund
GDR	Global Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
IO	Interest Only
PJSC	Public Joint Stock Company
SPDR	S&P Depository Receipts

Notes to the fund’s portfolio
	Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which ran from June 1, 2020 through May 31, 2021 (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 $78,885,234.
†	This security is non-income-producing.

 

 

 

#	This security, in part or in entirety, was pledged and segregated with the broker to cover margin requirements for futures contracts at the close of the reporting period. Collateral at period end totaled $296,000 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 8).
d	Affiliated 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.
L	Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
R	Real Estate Investment Trust.
S	Security on loan, in part or in entirety, at the close of the reporting period (Note 1).
	At the close of the reporting period, the fund maintained liquid assets totaling $91,095 to cover certain derivative contracts.
	Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.
	Debt obligations are considered secured unless otherwise indicated.
	144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
	The dates shown on debt obligations are the original maturity dates.

DIVERSIFICATION BY COUNTRY
Distribution of investments by country of risk at the close of the reporting period, excluding collateral received, if any (as a percentage of Portfolio Value):
United States	79.2%		Taiwan	1.1%
Japan	2.6		India	0.9
United Kingdom	2.3		Hong Kong	0.8
China	2.2		Australia	0.8
France	1.6		Ireland	0.6
Switzerland	1.4		Other	4.0
South Korea	1.3		Total	100.0%
Germany	1.2

Dynamic Asset Allocation Equity Fund 33

 

FORWARD CURRENCY CONTRACTS at 5/31/21 (aggregate face value $23,626,044) cont.
Counterparty	Currency	Contract  type*	Delivery  date	Value	Aggregate  face value	Unrealized  appreciation/  (depreciation)
Barclays Bank PLC cont.
	Japanese Yen	Buy	8/18/21	$85,397	$85,646	$(249)
	Swedish Krona	Buy	6/16/21	96,565	94,588	1,977
	Swiss Franc	Buy	6/16/21	81,356	80,681	675
	Swiss Franc	Sell	6/16/21	81,356	80,521	(835)
Citibank, N.A.
	Australian Dollar	Buy	7/21/21	72,375	72,643	(268)
	British Pound	Buy	6/16/21	109,254	109,902	(648)
	Canadian Dollar	Buy	7/21/21	134,622	129,198	5,424
	Chinese Yuan (Offshore)	Sell	8/18/21	63,799	62,671	(1,128)
	Danish Krone	Buy	6/16/21	94,352	93,160	1,192
	Euro	Buy	6/16/21	261,148	254,764	6,384
	Hong Kong Dollar	Sell	8/18/21	33,260	33,236	(24)
	Japanese Yen	Buy	8/18/21	651,150	653,062	(1,912)
	New Zealand Dollar	Sell	7/21/21	23,870	23,122	(748)
Credit Suisse International
	British Pound	Sell	6/16/21	173,186	170,395	(2,791)
	Canadian Dollar	Buy	7/21/21	12,758	12,246	512
	Euro	Sell	6/16/21	11,865	11,607	(258)
	Swiss Franc	Buy	6/16/21	31,830	31,927	(97)
	Swiss Franc	Sell	6/16/21	31,830	31,248	(582)
Goldman Sachs International
	Australian Dollar	Buy	7/21/21	77,098	76,518	580
	British Pound	Buy	6/16/21	1,006,295	997,069	9,226
	Canadian Dollar	Buy	7/21/21	58,571	46,514	12,057
	Chinese Yuan (Offshore)	Buy	8/18/21	42,049	42,214	(165)
	Euro	Buy	6/16/21	75,470	76,834	(1,364)
	Hong Kong Dollar	Buy	8/18/21	19,974	19,960	14
	Japanese Yen	Sell	8/18/21	172,200	171,826	(374)
	New Zealand Dollar	Sell	7/21/21	471,657	457,313	(14,344)
	Norwegian Krone	Buy	6/16/21	255,636	255,441	195
	South African Rand	Buy	7/21/21	31,439	29,514	1,925
	Swedish Krona	Buy	6/16/21	479,434	475,425	4,009
	Swiss Franc	Sell	6/16/21	66,887	65,529	(1,358)
HSBC Bank USA, National Association
	Australian Dollar	Buy	7/21/21	96,372	96,907	(535)
	British Pound	Sell	6/16/21	432,609	425,370	(7,239)
	Canadian Dollar	Buy	7/21/21	179,276	173,317	5,959
	Chinese Yuan (Offshore)	Buy	8/18/21	584,843	574,514	10,329
	Euro	Buy	6/16/21	398,633	387,701	10,932
	Hong Kong Dollar	Sell	8/18/21	163,836	163,724	(112)
	Japanese Yen	Buy	8/18/21	27,119	26,878	241
	New Zealand Dollar	Buy	7/21/21	2,911	3,903	(992)
	Swedish Krona	Buy	6/16/21	34,649	33,758	891
	Swiss Franc	Buy	6/16/21	110,848	110,264	584
	Swiss Franc	Sell	6/16/21	110,848	108,837	(2,011)