Putnam Sustainable Leaders Fund
The fund's portfolio
9/30/19 (Unaudited)

COMMON STOCKS (98.5%)(a)
        Shares Value
Banks (3.9%)
Bank of America Corp. 3,911,900 $114,110,123
First Republic Bank 293,700 28,400,790
Webster Financial Corp. 801,000 37,542,870

Beverages (1.5%)
Heineken NV (Netherlands) 652,808 70,555,146

Biotechnology (1.8%)
Amgen, Inc. 119,700 23,163,147
Vertex Pharmaceuticals, Inc.(NON) 346,100 58,636,262

Building products (1.3%)
Johnson Controls International PLC 1,407,600 61,779,564

Capital markets (2.8%)
BlackRock, Inc. 249,000 110,964,360
EQT AB (Sweden)(NON) 2,058,064 18,287,073

Chemicals (5.7%)
Ecolab, Inc. 130,200 25,784,808
Koninklijke DSM NV (Netherlands) 574,949 69,183,910
Linde PLC 410,900 79,599,548
Novozymes A/S Class B (Denmark) 2,068,877 86,984,077

Commercial services and supplies (—%)
New Bigfoot Other Assets GmbH (acquired 8/2/13, cost $69) (Private) (Germany)(NON)(F)(RES) 52 43
New Middle East Other Assets GmbH (acquired 8/2/13, cost $29) (Private) (Germany)(NON)(F)(RES) 22 18

Consumer finance (0.1%)
Oportun Financial Corp. (acquired 6/23/15, cost $12,687,211) (Private)(NON)(F)(RES) 434,981 6,349,853

Containers and packaging (1.3%)
Ball Corp. 803,200 58,480,992

Electric utilities (1.4%)
NextEra Energy, Inc.(S) 272,200 63,419,878

Food and staples retail (2.6%)
Kroger Co. (The) 1,003,400 25,867,652
Walmart, Inc. 813,100 96,498,708

Food products (1.2%)
McCormick & Co., Inc. (non-voting shares) 347,600 54,329,880

Health-care equipment and supplies (6.6%)
Becton Dickinson and Co. 337,037 85,256,880
Cooper Cos., Inc. (The) 201,100 59,726,700
Danaher Corp. 826,100 119,313,623
Penumbra, Inc.(NON)(S) 312,062 41,969,218

Hotels, restaurants, and leisure (4.7%)
Chipotle Mexican Grill, Inc.(NON) 97,700 82,113,919
Hilton Worldwide Holdings, Inc. 963,636 89,724,148
Vail Resorts, Inc. 200,500 45,625,780

Household durables (—%)
HC Brillant Services GmbH (acquired 8/2/13, cost $69) (Private) (Germany)(NON)(F)(RES) 104 85

Independent power and renewable electricity producers (1.8%)
AES Corp. 4,985,900 81,469,606

Industrial conglomerates (3.2%)
Honeywell International, Inc. 497,200 84,126,240
Roper Technologies, Inc. 173,500 61,870,100

Insurance (2.8%)
AXA SA (France) 2,922,866 74,642,796
Prudential PLC (United Kingdom) 2,892,994 52,466,921

Interactive media and services (3.4%)
Alphabet, Inc. Class A(NON) 36,900 45,060,066
Alphabet, Inc. Class C(NON) 68,860 83,940,340
Pinterest, Inc. Class A(NON)(S) 991,615 26,228,217

Internet and direct marketing retail (4.1%), Inc.(NON) 89,377 155,150,428
Etsy, Inc.(NON) 576,300 32,560,950
Global Fashion Group SA (acquired 8/2/13, cost $3,488,697) (Private) (Luxembourg)(NON)(F)(RES) 15,440 31,746

IT Services (8.1%)
Accenture PLC Class A 421,100 80,998,585
Fidelity National Information Services, Inc. 629,900 83,625,524
Okta, Inc.(NON) 355,930 35,044,868
Visa, Inc. Class A 1,020,600 175,553,406

Leisure products (1.6%)
Hasbro, Inc. 635,200 75,391,888

Life sciences tools and services (1.6%)
Thermo Fisher Scientific, Inc. 248,200 72,293,214

Machinery (1.1%)
Stanley Black & Decker, Inc. 368,200 53,171,762

Personal products (3.2%)
Unilever NV (Netherlands) 2,466,428 148,258,863

Road and rail (1.2%)
Union Pacific Corp. 347,600 56,304,248

Semiconductors and semiconductor equipment (5.5%)
ASML Holding NV (Netherlands)(S) 112,000 27,823,040
First Solar Inc.(NON) 522,900 30,333,429
NXP Semiconductors NV 760,800 83,018,496
ON Semiconductor Corp.(NON) 2,609,700 50,132,337
Texas Instruments, Inc. 467,600 60,432,624

Software (15.2%)
Adobe, Inc.(NON) 484,200 133,760,250
DocuSign, Inc.(NON)(S) 952,700 58,991,184
Microsoft Corp. 2,249,000 312,678,470, Inc.(NON) 649,800 96,456,312
ServiceNow, Inc.(NON) 224,600 57,014,710
Talend SA ADR(NON) 1,292,750 43,927,645

Specialty retail (4.9%)
Home Depot, Inc. (The) 513,600 119,165,472
Lowe's Cos., Inc. 522,100 57,410,116
TJX Cos., Inc. (The) 619,800 34,547,652
Ulta Beauty, Inc.(NON)(S) 68,500 17,169,525

Technology hardware, storage, and peripherals (4.1%)
Apple, Inc. 841,032 188,365,937

Textiles, apparel, and luxury goods (1.8%)
adidas AG (Germany) 153,262 47,717,252
Levi Strauss & Co. Class A(NON)(S) 1,784,942 33,985,294


Total common stocks (cost $3,229,738,729) $4,544,788,568

        Principal amount Value
U.S. Treasury Notes 2.25%, 4/30/21(i) $131,000 $133,286

Total U.S. treasury obligations (cost $133,286) $133,286

    Expiration date Strike Price Warrants Value
Neuralstem, Inc. Ser. K, (acquired 4/20/17, cost $—)(RES) 1/9/22 $42.00 55,497 $—

Total warrants (cost $—) $—

        Shares Value, LLC $0.00 cv. pfd. (acquired 4/14/00, cost $10,451,238) (Private)(NON)(F)(RES) $125,000 $—

Total convertible preferred stocks (cost $10,451,238) $—

        Principal amount/
Putnam Cash Collateral Pool, LLC 2.15%(AFF) Shares 93,135,185 $93,135,185
Putnam Short Term Investment Fund 2.05%(AFF) Shares 79,196,149 79,196,149
State Street Institutional U.S. Government Money Market Fund, Premier Class 1.88%(P) Shares 130,000 130,000
U.S. Treasury Bills 1.889%, 3/12/20(SEGSF) $1,194,000 1,184,309

Total short-term investments (cost $173,645,381) $173,645,643

Total investments (cost $3,413,968,634) $4,718,567,497

FORWARD CURRENCY CONTRACTS at 9/30/19 (aggregate face value $145,192,350) (Unaudited)
  Counterparty Currency Contract type* Delivery
Value Aggregate face value Unrealized
Bank of America N.A.
British Pound Sell 12/18/19 $15,028,661 $14,921,761 $(106,900)
Barclays Bank PLC
British Pound Sell 12/18/19 326,619 323,951 (2,668)
JPMorgan Chase Bank N.A.
Euro Sell 12/18/19 52,074,604 52,483,909 409,305
State Street Bank and Trust Co.
Euro Sell 12/18/19 29,199,706 29,433,183 233,477
Euro Sell 12/18/19 47,675,800 48,029,546 353,746

Unrealized appreciation 996,528

Unrealized (depreciation) (109,568)

Total $886,960
* The exchange currency for all contracts listed is the United States Dollar.

Key to holding's abbreviations
ADR American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
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 July 1, 2019 through September 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, references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to "OTC", if any, represent over-the-counter.
(a) Percentages indicated are based on net assets of $4,615,451,704.
(NON) This security is non-income-producing.
(RES) 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 $6,381,745, or 0.1% of net assets.
(AFF) Affiliated company. For investments in Putnam Cash Collateral Pool, LLC and Putnam Short Term Investment Fund, the rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with any company which is under common ownership or control were as follows:
Name of affiliate Fair value
as of
Shares outstanding
and fair
value as  of
Short-term investments
Putnam Cash Collateral Pool, LLC*# $154,042,280 $91,829,036 $152,736,131 $882,966 $93,135,185
Putnam Short Term Investment Fund** 210,401,383 265,655,999 396,861,233 748,135 79,196,149

Total Short-term investments $364,443,663 $357,485,035 $549,597,364 $1,631,101 $172,331,334
* No management fees are charged to Putnam Cash Collateral Pool, LLC. There were no realized or unrealized gains or losses during the period.
# 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. The fund received cash collateral of $93,135,185, which 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. The rate quoted in the security description is the annualized 7-day yield at the close of the reporting period. At the close of the reporting period, the value of securities loaned amounted to $92,300,296.
** 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.
(SEGSF) 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 $201,335.
(F) This 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.
(i) This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts.
(P) This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
(S) This security is on loan, in part or in entirety, at the close of the reporting period.
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.
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 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. 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.
Forward currency contracts: The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts were used to hedge foreign exchange risk.
The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position.
For the fund's average contract amount on forward currency contracts, see the appropriate table at the end of these footnotes.
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 posted to the fund which cannot be sold or repledged totaled $181,327 at the close of the reporting period.
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 $109,568 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $201,335 and may include amounts related to unsettled agreements.

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 $155,228,623 $— $—
Consumer discretionary 790,562,424 31,831
Consumer staples 395,510,249
Financials 436,414,933 6,349,853
Health care 460,359,044
Industrials 317,251,914 61
Information technology 1,518,156,817
Materials 320,033,335
Utilities 144,889,484

Total common stocks 4,538,406,823 6,381,745
Convertible preferred stocks
U.S. treasury obligations 133,286
Short-term investments 79,326,149 94,319,494

Totals by level $4,617,732,972 $94,452,780 $6,381,745
Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $886,960 $—

Totals by level $— $886,960 $—
* 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 volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period:
Forward currency contracts (contract amount) $136,300,000
Warrants (number of warrants) 55,000

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site,, or visit Putnam's Individual Investor Web site at