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Putnam Capital Spectrum Fund
Fund summaries Putnam Capital Spectrum Fund
Goal
Putnam Capital Spectrum Fund seeks total return.
Fees and expenses
The following table describes the fees and expenses you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Putnam funds. More information about these and other discounts is available from your financial advisor and in How do I buy fund shares? beginning on page 22 of the fund’s prospectus and in How to buy shares beginning on page II-1 of the fund’s statement of additional information (SAI).
Shareholder fees (fees paid directly from your investment)
Shareholder Fees Putnam Capital Spectrum Fund
Class A
Class B
Class C
Class M
Class R
Class Y
Share class Class A Class B Class C Class M Class R Class Y
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none none 3.50% none none
Maximum deferred sales charge (load) (as a percentage of original purchase price or redemption proceeds, whichever is lower) 1.00% [1] 5.00% [2] 1.00% 0.65% [1] none none
Redemption fee (as a percentage of total redemption proceeds) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
[1] Applies only to certain redemptions of shares bought with no initial sales charge.
[2] This charge is phased out over six years.
Annual fund operating expenses (expenses you pay each year as a percentage of the value of your investment)
Annual Fund Operating Expenses Putnam Capital Spectrum Fund
Class A
Class B
Class C
Class M
Class R
Class Y
Share class Class A Class B Class C Class M Class R Class Y
Management fees [1] 0.78% 0.78% 0.78% 0.78% 0.78% 0.78%
Distribution and service (12b-1) fees 0.25% 1.00% 1.00% 0.75% 0.50%  
Other expenses 0.35% 0.35% 0.35% 0.35% 0.35% 0.35%
Total annual fund operating expenses 1.38% 2.13% 2.13% 1.88% 1.63% 1.13%
[1] Management fees are subject to a performance adjustment.
Example
The following hypothetical example is intended to help you compare the cost of investing in the fund with the cost of investing in other funds. It assumes that you invest $10,000 in the fund for the time periods indicated and then, except as indicated, redeem all your shares at the end of those periods. It assumes a 5% return on your investment each year and that the fund’s operating expenses remain the same. Your actual costs may be higher or lower.
Expense Example Putnam Capital Spectrum Fund (USD $)
Class A
Class B
Class C
Class M
Class R
Class Y
Share class Class A Class B Class C Class M Class R Class Y
1 year 707 716 316 534 166 115
3 years 987 967 667 920 514 359
5 years 1,287 1,344 1,144 1,331 887 622
10 years 2,137 2,271 2,462 2,474 1,933 1,375
Expense Example, No Redemption Putnam Capital Spectrum Fund (USD $)
Class B
Class C
Share class Class B (no redemption) Class C (no redemption)
1 year 216 216
3 years 667 667
5 years 1,144 1,144
10 years 2,271 2,462
Portfolio turnover
The fund pays transaction-related costs when it buys and sells securities (or “turns over” its portfolio). A higher turnover rate may indicate higher transaction costs and may result in higher taxes when the fund’s shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or the above example, affect fund performance. The fund’s turnover rate in the most recent fiscal year was 117%.
Investments
We invest a majority of the fund’s assets in equity and fixed-income securities, including floating and fixed rate bank loans and both growth and value stocks, of leveraged small and midsize U.S. companies that we believe have favorable investment potential. These companies employ significant leverage in their capital structure through borrowing from banks or other lenders or through issuing fixed-income, convertible or preferred equity securities, and their fixed-income securities are often rated below-investment-grade (sometimes referred to as “junk bonds”). We may also invest in fixed-income securities of other issuers, in companies of any size and in companies that are not leveraged. We 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 equity investments, and, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy or sell fixed-income investments. We may also engage in short sales of securities.
Risks

It is important to understand that you can lose money by investing in the fund.

The prices of stocks and bonds in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including both general financial market conditions and factors related to a specific company or industry. These risks are generally greater for small and midsize companies. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The risks associated with bond investments include interest rate risk, which means the prices of the fund’s investments are likely to fall if interest rates rise. Bond investments are also subject to credit risk, which is the risk that the issuers of the fund’s investments may default on payment of interest or principal. Interest rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds (a significant part of the fund’s investments). Our focus on leveraged companies and the fund’s “non-diversified” status can increase the fund’s vulnerability to these factors. Our use of short selling may increase these risks.

The fund may not achieve its goal, and it is not intended to be a complete investment program. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Performance
The performance information below gives some indication of the risks associated with an investment in the fund by showing the fund’s performance year to year and over time. The bar chart does not reflect the impact of sales charges. If it did, performance would be lower. Please remember that past performance is not necessarily an indication of future results. Monthly performance figures for the fund are available at putnam.com.
Annual total returns for class A shares before sales charges
Bar Chart

Year-to-date performance through 6/30/11 17.36%

Best calendar quarter Q4 2010 11.97%

Worst calendar quarter Q2 2010 -4.89%
Average annual total returns after sales charges (for periods ending 12/31/10)
Average Annual Total Returns Putnam Capital Spectrum Fund
Share class
Label
Index No Deduction for Fees, Expenses, Taxes [Text]
1 year
Since Inception
Inception Date
before taxes Class A
 Class A before taxes   14.67% 25.55% May 18, 2009
before taxes Class B
 Class B before taxes   15.72% 27.19% May 18, 2009
before taxes Class C
 Class C before taxes   19.75% 29.29% May 18, 2009
before taxes Class M
 Class M before taxes   16.79% 26.79% May 18, 2009
before taxes Class R
 Class R before taxes   21.33% 29.91% May 18, 2009
before taxes Class Y
 Class Y before taxes   21.95% 30.60% May 18, 2009
after taxes on distributions Class A
 Class A after taxes on distributions   13.50% 23.92% May 18, 2009
after taxes on distributions and sale of fund shares Class A
 Class A after taxes on distributions and sale of fund shares   9.63% 20.98% May 18, 2009
Putnam Capital Spectrum Blended Index
   Putnam Capital Spectrum Blended Index (no deduction for fees, expenses or taxes) 15.38% 27.20% May 18, 2009

The Putnam Capital Spectrum Blended Index is an unmanaged index administered by Putnam Investment Management, LLC, 50% of which is the S&P 500 Index and 50% of which is the JPMorgan Developed High Yield Index.

After-tax returns reflect the historical highest individual federal marginal income tax rates and do not reflect state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns are shown for class A shares only and will vary for other classes. These after-tax returns do not apply if you hold your fund shares through a 401(k) plan, an IRA, or another tax-advantaged arrangement.
Putnam Equity Spectrum Fund
Putnam Equity Spectrum Fund
Goal
Putnam Equity Spectrum Fund seeks capital appreciation.
Fees and expenses
The following table describes the fees and expenses you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Putnam funds. More information about these and other discounts is available from your financial advisor and in How do I buy fund shares? beginning on page 22 of the fund’s prospectus and in How to buy shares beginning on page II-1 of the fund’s statement of additional information (SAI).
Shareholder fees (fees paid directly from your investment)
Shareholder Fees Putnam Equity Spectrum Fund
Class A
Class B
Class C
Class M
Class R
Class Y
Share class Class A Class B Class C Class M Class R Class Y
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% none none 3.50% none none
Maximum deferred sales charge (load) (as a percentage of original purchase price or redemption proceeds, whichever is lower) 1.00% [1] 5.00% [2] 1.00% 0.65% [1] none none
Redemption fee (as a percentage of total redemption proceeds) 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
[1] Applies only to certain redemptions of shares bought with no initial sales charge.
[2] This charge is phased out over six years.
Annual fund operating expenses (expenses you pay each year as a percentage of the value of your investment)
Annual Fund Operating Expenses Putnam Equity Spectrum Fund
Class A
Class B
Class C
Class M
Class R
Class Y
Share class Class A Class B Class C Class M Class R Class Y
Management fees [1] 0.87% 0.87% 0.87% 0.87% 0.87% 0.87%
Distribution and service (12b-1) fees 0.25% 1.00% 1.00% 0.75% 0.50%  
Other expenses 0.46% 0.46% 0.46% 0.46% 0.46% 0.46%
Total annual fund operating expenses 1.58% 2.33% 2.33% 2.08% 1.83% 1.33%
[1] Management fees are subject to a performance adjustment.
Example
The following hypothetical example is intended to help you compare the cost of investing in the fund with the cost of investing in other funds. It assumes that you invest $10,000 in the fund for the time periods indicated and then, except as indicated, redeem all your shares at the end of those periods. It assumes a 5% return on your investment each year and that the fund’s operating expenses remain the same. Your actual costs may be higher or lower.
Expense Example Putnam Equity Spectrum Fund (USD $)
Class A
Class B
Class C
Class M
Class R
Class Y
Share class Class A Class B Class C Class M Class R Class Y
1 year 726 736 336 554 186 135
3 years 1,045 1,027 727 979 576 421
5 years 1,386 1,445 1,245 1,429 990 729
10 years 2,345 2,479 2,666 2,676 2,148 1,601
Expense Example, No Redemption Putnam Equity Spectrum Fund (USD $)
Class B
Class C
Share class Class B (no redemption) Class C (no redemption)
1 year 236 236
3 years 727 727
5 years 1,245 1,245
10 years 2,479 2,666
Portfolio turnover
The fund pays transaction-related costs when it buys and sells securities (or “turns over” its portfolio). A higher turnover rate may indicate higher transaction costs and may result in higher taxes when the fund’s shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or the above example, affect fund performance. The fund’s turnover rate in the most recent fiscal year was 107%.
Investments
We invest a majority of the fund’s assets in equity securities of leveraged small and midsize U.S. companies, including both growth and value stocks, that we believe have favorable investment potential. These companies employ significant leverage in their capital structure through borrowing from banks or other lenders or through issuing fixed-income, convertible or preferred equity securities, and their fixed-income securities are often rated below-investment-grade (sometimes referred to as “junk bonds”). We may invest in companies of any size and in companies that are not leveraged. We 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. We may also engage in short sales of securities.
Risks

It is important to understand that you can lose money by investing in the fund.

The prices of stocks in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including both general financial market conditions and factors related to a specific company or industry. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Our focus on leveraged companies and the fund’s “non-diversified” status can increase the fund’s vulnerability to these factors. Our use of short selling may increase these risks.

The fund may not achieve its goal, and it is not intended to be a complete investment program. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Performance
The performance information below gives some indication of the risks associated with an investment in the fund by showing the fund’s performance year to year and over time. The bar chart does not reflect the impact of sales charges. If it did, performance would be lower. Please remember that past performance is not necessarily an indication of future results. Monthly performance figures for the fund are available at putnam.com.
Annual total returns for class A shares before sales charges
Bar Chart

Year-to-date performance

through 6/30/11

17.71%

Best calendar quarter

Q4 2010

11.94%

Worst calendar quarter

Q2 2010

-6.69%
Average annual total returns after sales charges (for periods ending 12/31/10)
Average Annual Total Returns Putnam Equity Spectrum Fund
Share class
Label
Index No Deduction for Fees, Expenses, Taxes [Text]
1 year
Since Inception
Inception Date
before taxes Class A
 Class A before taxes   16.51% 31.49% May 18, 2009
before taxes Class B
 Class B before taxes   17.61% 33.34% May 18, 2009
before taxes Class C
 Class C before taxes   21.67% 35.43% May 18, 2009
before taxes Class M
 Class M before taxes   18.71% 32.81% May 18, 2009
before taxes Class R
 Class R before taxes   23.29% 36.09% May 18, 2009
before taxes Class Y
 Class Y before taxes   23.89% 36.75% May 18, 2009
after taxes on distributions Class A
 Class A after taxes on distributions   16.30% 30.55% May 18, 2009
after taxes on distributions and sale of fund shares Class A
 Class A after taxes on distributions and sale of fund shares   10.79% 26.56% May 18, 2009
S&P 500 Index
   S&P 500 Index (no deduction for fees, expenses or taxes) 15.06% 24.70% May 18, 2009
After-tax returns reflect the historical highest individual federal marginal income tax rates and do not reflect state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns are shown for class A shares only and will vary for other classes. These after-tax returns do not apply if you hold your fund shares through a 401(k) plan, an IRA, or another tax-advantaged arrangement.