a_globalhealthcare.htm

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*:
Health care	$1,662,504,025	$—	$—
Total common stocks	1,662,504,025	—	—
Purchased options outstanding	—	1,052,113	—
U.S. treasury obligations	—	856,207	—
Short-term investments	—	86,663,062	—
Totals by level	$1,662,504,025	$88,571,382	$—


		Valuation inputs
Other financial instruments:	Level 1	Level 2	Level 3
Forward currency contracts	$—	$(2,207,268)	$—
Written options outstanding	—	(312,811)	—
Totals by level	$—	$(2,520,079)	$—

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

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


12 Global Health Care Fund

Statement of assets and liabilities 2/29/24 (Unaudited)


ASSETS
Investment in securities, at value, including $12,578,797 of securities on loan (Notes 1 and 8):
Unaffiliated issuers (identified cost $961,038,003)	$1,584,265,020
Affiliated issuers (identified cost $192,897,839 ) (Note 5)	166,810,387
Cash	325,554
Dividends, interest and other receivables	3,347,845
Foreign tax reclaim	1,821,844
Receivable for shares of the fund sold	1,919,463
Receivable for investments sold	7,918,265
Unrealized appreciation on forward currency contracts (Note 1)	968,463
Prepaid assets	79,208
Total assets	1,767,456,049

LIABILITIES
Payable for investments purchased	23,337,244
Payable for shares of the fund repurchased	7,624,308
Payable for compensation of Manager (Note 2)	837,784
Payable for custodian fees (Note 2)	16,485
Payable for investor servicing fees (Note 2)	384,879
Payable for Trustee compensation and expenses (Note 2)	336,359
Payable for administrative services (Note 2)	4,899
Payable for distribution fees (Note 2)	604,869
Unrealized depreciation on forward currency contracts (Note 1)	3,175,731
Written options outstanding, at value (premiums $245,047) (Note 1)	312,811
Collateral on securities loaned, at value (Note 1)	12,852,925
Collateral on certain derivative contracts, at value (Notes 1 and 8)	856,207
Other accrued expenses	115,906
Total liabilities	50,460,407

Net assets	$1,716,995,642

REPRESENTED BY
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)	$1,118,086,260
Total distributable earnings (Note 1)	598,909,382
Total — Representing net assets applicable to capital shares outstanding	$1,716,995,642

(Continued on next page)

Global Health Care Fund 13

Statement of assets and liabilities cont.


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
Net asset value and redemption price per class A share
($1,446,081,682 divided by 23,783,366 shares)	$60.80
Offering price per class A share (100/94.25 of $60.80)^*	$64.51
Net asset value and offering price per class B share ($2,604,439 divided by 126,202 shares)^**	$20.64
Net asset value and offering price per class C share ($17,604,103 divided by 499,435 shares)^**	$35.25
Net asset value, offering price and redemption price per class R share
($2,255,221 divided by 41,521 shares)	$54.32
Net asset value, offering price and redemption price per class R6 share
($29,132,864 divided by 427,788 shares)	$68.10
Net asset value, offering price and redemption price per class Y share
($219,317,333 divided by 3,228,919 shares)	$67.92

^*On single retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.

^**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

14 Global Health Care Fund

Statement of operations Six months ended 2/29/24 (Unaudited)


INVESTMENT INCOME
Dividends (net of foreign taxes paid and refunded of $793,052)	$9,208,423
Interest (including interest income of $1,616,568 from investments in affiliated issuers) (Note 5)	1,839,657
Securities lending (net of expenses) (Notes 1 and 5)	63,955
Total investment income	11,112,035

EXPENSES
Compensation of Manager (Note 2)	4,851,842
Investor servicing fees (Note 2)	1,122,241
Custodian fees (Note 2)	46,362
Trustee compensation and expenses (Note 2)	35,301
Distribution fees (Note 2)	1,799,559
Administrative services (Note 2)	31,192
Other	265,395
Total expenses	8,151,892
Expense reduction (Note 2)	(15,203)
Net expenses	8,136,689

Net investment income	2,975,346

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities from unaffiliated issuers (Notes 1 and 3)	12,601,660
Securities from affiliated issuers (Note 5)	(43,659)
Foreign currency transactions (Note 1)	(47,637)
Forward currency contracts (Note 1)	806,440
Total net realized gain	13,316,804
Change in net unrealized appreciation (depreciation) on:
Securities from unaffiliated issuers	155,272,888
Securities from affiliated issuers (Note 5)	11,650,352
Assets and liabilities in foreign currencies	21,126
Forward currency contracts	(2,017,976)
Written options	(67,764)
Total change in net unrealized appreciation	164,858,626

Net gain on investments	178,175,430

Net increase in net assets resulting from operations	$181,150,776

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

Global Health Care Fund 15

Statement of changes in net assets


INCREASE IN NET ASSETS	Six months ended 2/29/24*	Year ended 8/31/23
Operations
Net investment income	$2,975,346	$4,375,437
Net realized gain on investments
and foreign currency transactions	13,316,804	78,844,524
Change in net unrealized appreciation of investments
and assets and liabilities in foreign currencies	164,858,626	89,025,853
Net increase in net assets resulting from operations	181,150,776	172,245,814
Distributions to shareholders (Note 1):
From ordinary income
Net investment income
Class A	(2,326,691)	(1,851,737)
Class R6	(136,035)	(125,432)
Class Y	(583,307)	(599,328)
Net realized long-term gain on investments
Class A	(71,741,038)	(100,107,724)
Class B	(411,918)	(1,252,749)
Class C	(1,496,178)	(2,492,163)
Class R	(111,188)	(146,942)
Class R6	(1,421,363)	(1,947,754)
Class Y	(7,643,753)	(10,980,992)
Increase (decrease) from capital share transactions (Note 4)	75,826,282	(6,095,274)
Total increase in net assets	171,105,587	46,645,719

NET ASSETS
Beginning of period	1,545,890,055	1,499,244,336
End of period	$1,716,995,642	$1,545,890,055

^*Unaudited.

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

16 Global Health Care Fund

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Global Health Care Fund 17

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


	INVESTMENT OPERATIONS				LESS DISTRIBUTIONS					RATIOS AND SUPPLEMENTAL DATA
												Ratio of net
	Net asset		Net realized								Ratio	investment
	value,		and unrealized	Total from	From net	From net		Net asset	Total return	Net assets,	of expenses	income (loss)	Portfolio
	beginning	Net investment	gain (loss)	investment	investment	realized gain	Total	value, end	at net asset	end of period	to average	to average	turnover
Period ended	of period	income (loss)^a	on investments	operations	income	on investments	distributions	of period	value (%)^b	(in thousands)	net assets (%)^c	net assets (%)	(%)
Class A
February 29, 2024^**	$57.43	.10	6.52	6.62	(.10)	(3.15)	(3.25)	$60.80	11.92^*	$1,446,082	.53^*	.17^*	21^*
August 31, 2023	55.47	.15	6.27	6.42	(.08)	(4.38)	(4.46)	57.43	11.79	1,341,541	1.07	.27	41
August 31, 2022	68.43	.17	(5.53)	(5.36)	(.36)	(7.24)	(7.60)	55.47	(9.11)	1,292,980	1.05	.28	71
August 31, 2021	60.86	.34	12.94	13.28	(.51)	(5.20)	(5.71)	68.43	23.43	1,522,142	1.05	.55	61
August 31, 2020	50.99	.41	12.69	13.10	(.17)	(3.06)	(3.23)	60.86	26.16	1,324,490	1.07	.75	82
August 31, 2019	54.00	.29	(.18)	.11	(.03)	(3.09)	(3.12)	50.99	1.15	1,133,447	1.09	.57	81
Class B
February 29, 2024^**	$21.52	(.05)	2.32	2.27	—	(3.15)	(3.15)	$20.64	11.55^*	$2,604	.90^*	(.22)^*	21^*
August 31, 2023	23.43	(.11)	2.58	2.47	—	(4.38)	(4.38)	21.52	10.94	4,224	1.82	(.51)	41
August 31, 2022	33.22	(.13)	(2.23)	(2.36)	(.19)	(7.24)	(7.43)	23.43	(9.79)	7,845	1.80	(.48)	71
August 31, 2021	32.37	(.07)	6.44	6.37	(.32)	(5.20)	(5.52)	33.22	22.50	13,072	1.80	(.21)	61
August 31, 2020	28.45	—^e	6.98	6.98	—	(3.06)	(3.06)	32.37	25.27	15,467	1.82	—^d	82
August 31, 2019	31.90	(.05)	(.31)	(.36)	—	(3.09)	(3.09)	28.45	.39	17,141	1.84	(.18)	81
Class C
February 29, 2024^**	$34.62	(.07)	3.85	3.78	—	(3.15)	(3.15)	$35.25	11.54^*	$17,604	.90^*	(.20)^*	21^*
August 31, 2023	35.23	(.17)	3.94	3.77	—	(4.38)	(4.38)	34.62	10.96	17,385	1.82	(.50)	41
August 31, 2022	46.21	(.19)	(3.47)	(3.66)	(.08)	(7.24)	(7.32)	35.23	(9.81)	21,218	1.80	(.47)	71
August 31, 2021	42.91	(.09)	8.84	8.75	(.25)	(5.20)	(5.45)	46.21	22.49	29,722	1.80	(.20)	61
August 31, 2020	36.87	—^e	9.10	9.10	—	(3.06)	(3.06)	42.91	25.25	33,172	1.82	(.01)	82
August 31, 2019	40.29	(.07)	(.26)	(.33)	—	(3.09)	(3.09)	36.87	.38	29,905	1.84	(.18)	81
Class R
February 29, 2024^**	$51.60	.03	5.84	5.87	—	(3.15)	(3.15)	$54.32	11.80^*	$2,255	.65^*	.05^*	21^*
August 31, 2023	50.30	.02	5.66	5.68	—	(4.38)	(4.38)	51.60	11.51	1,783	1.32	.05	41
August 31, 2022	62.68	.03	(5.02)	(4.99)	(.15)	(7.24)	(7.39)	50.30	(9.34)	1,603	1.30	.05	71
August 31, 2021	56.13	.17	11.88	12.05	(.30)	(5.20)	(5.50)	62.68	23.13	2,029	1.30	.29	61
August 31, 2020	47.27	.26	11.73	11.99	(.07)	(3.06)	(3.13)	56.13	25.85	2,272	1.32	.52	82
August 31, 2019	50.40	.15	(.19)	(.04)	—	(3.09)	(3.09)	47.27	.91	2,252	1.34	.32	81
Class R6
February 29, 2024^**	$64.03	.23	7.29	7.52	(.30)	(3.15)	(3.45)	$68.10	12.12^*	$29,133	.36^*	.35^*	21^*
August 31, 2023	61.35	.38	6.96	7.34	(.28)	(4.38)	(4.66)	64.03	12.19	28,924	.72	.61	41
August 31, 2022	74.89	.49	(6.21)	(5.72)	(.58)	(7.24)	(7.82)	61.35	(8.82)	29,327	.71	.74	71
August 31, 2021	65.97	.61	14.11	14.72	(.60)	(5.20)	(5.80)	74.89	23.86	19,470	.71	.89	61
August 31, 2020 ^†	62.85	.17	2.95	3.12	—	—	—	65.97	4.96^*	16,348	.18^*	.26^*	82

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

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


18 Global Health Care Fund	Global Health Care Fund 19

Financial highlights cont.

INVESTMENT OPERATIONS

LESS DISTRIBUTIONS

RATIOS AND SUPPLEMENTAL DATA

Ratio of net

Net asset

Net realized

Ratio

investment

value,

and unrealized

Total from

From net

Net asset

Total return

Net assets,

of expenses

income (loss)

Portfolio

beginning

Net investment

gain (loss)

investment

investment

realized gain

Total

value, end

at net asset

end of period

to average

turnover

Period ended

of period

income (loss)^a

on investments

operations

income

on investments

distributions

of period

value (%)^b

(in thousands)

net assets (%)^c

net assets (%)

(%)

Class Y

February 29, 2024^**

$63.84

.21

7.26

7.47

(.24)

(3.15)

(3.39)

$67.92

12.07^*

$219,317

.40^*

.32^*

21^*

August 31, 2023

61.20

.32

6.94

7.26

(.24)

(4.38)

(4.62)

63.84

12.07

152,033

.82

.51

August 31, 2022

74.73

.36

(6.13)

(5.77)

(.52)

(7.24)

(7.76)

61.20

(8.90)

146,272

.80

.53

August 31, 2021

65.94

.54

14.10

14.64

(.65)

(5.20)

(5.85)

74.73

23.74

114,471

.80

August 31, 2020

54.99

.56

13.75

14.31

(.30)

(3.06)

(3.36)

65.94

26.49

92,183

.82

.93

August 31, 2019

57.97

.44

(.16)

.28

(.17)

(3.09)

(3.26)

54.99

1.41

64,674

.84

.82

^*Not annualized.

^** Unaudited.

^† For the period June 1, 2020 (commencement of operations) to August 31, 2020.

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

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

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

^dRepresents less than 0.01% of average net assets.

^eRepresents less than $0.01 per share.

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


20 Global Health Care Fund	Global Health Care Fund 21

Notes to financial statements 2/29/24 (Unaudited)

Unless otherwise noted, the “reporting period” represents the period from September 1, 2023 through February 29, 2024. The following table defines commonly used references within the Notes to financial statements:


References to	Represent
Franklin Templeton	Franklin Resources, Inc.
JPMorgan	JPMorgan Chase Bank, N.A.
OTC	Over-the-counter
PAC	The Putnam Advisory Company, LLC, an affiliate of Putnam Management
PIL	Putnam Investments Limited, an affiliate of Putnam Management
Putnam Management	Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned
	subsidiary of Franklin Templeton
SEC	Securities and Exchange Commission
State Street	State Street Bank and Trust Company

Putnam Global Health Care Fund (the fund) is a Massachusetts business trust, which is registered under the Investment Company Act of 1940, as amended, as a non-diversified open-end management investment company. The goal of the fund is to seek capital appreciation. For this non-diversified fund concentrating in the health care industries, the fund invests mainly in common stocks (growth or value stocks or both) of large and midsize companies worldwide that Putnam Management believes have favorable investment potential. Under normal circumstances, the fund invests at least 80% of the fund’s net assets in securities of companies in the health care industries. This policy may be changed only after 60 days’ notice to shareholders. Potential investments include companies that manufacture health care supplies or provide health care-related services, and companies in the research, development, production and marketing of pharmaceuticals and biotechnology products. The fund may purchase stocks of companies with stock prices that reflect a value lower than that which Putnam Management places on the company. Putnam Management may 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. Putnam Management may also consider other factors that Putnam Management believes will cause the stock price to rise. The fund may also use derivatives, such as futures, options, certain foreign currency transactions, warrants and swap contracts, for both hedging and non-hedging purposes, and may engage in short sales of securities. For example, the fund typically uses foreign currency forward contracts in connection with the fund’s investments in foreign securities in order to hedge the fund’s currency exposure relative to the fund’s benchmark index. The use of the term “global” in the fund’s name is meant to emphasize that Putnam Management looks for investment opportunities on a worldwide basis and that its investment strategies are not constrained by the countries or regions in which companies are located. Under normal market conditions, the fund intends to invest in at least five different countries and at least 40% of its net assets in securities of foreign companies (or, if less, at least the percentage of net assets that is ten percentage points less than the percentage of the fund’s benchmark represented by foreign companies, as determined by the providers of the benchmark).

22 Global Health Care Fund

The fund offers the following share classes. The expenses for each class of shares may differ based on the distribution and investor servicing fees of each class, which are identified in Note 2.


Share class	Sales charge	Contingent deferred sales charge	Conversion feature
		1.00% on certain redemptions of shares
Class A	Up to 5.75%	bought with no initial sales charge	None
			Converts to class A shares
Class B^*	None	5.00% phased out over six years	after 8 years
			Converts to class A shares
Class C	None	1.00% eliminated after one year	after 8 years
Class R^†	None	None	None
Class R6^†	None	None	None
Class Y^†	None	None	None

^*Purchases of class B shares are closed to new and existing investors except by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment.

^†Not available to all investors.

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

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

Under the fund’s Agreement and Declaration of Trust, any claims asserted by a shareholder against or on behalf of the fund, including claims against Trustees and Officers, must be brought in courts located within the Commonwealth of Massachusetts.

Note 1: Significant accounting policies

The fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.

Investment income, realized and unrealized gains and losses and expenses of the fund are borne pro-rata based on the relative net assets of each class to the total net assets of the fund, except that each class bears expenses unique to that class (including the distribution fees applicable to such classes). Each class votes as a class only with respect to its own distribution plan or other matters on which a class vote is required by law or determined by the Trustees. If the fund were liquidated, shares of each class would receive their pro-rata share of the net assets of the fund. In addition, the Trustees declare separate dividends on each class of shares.

Security valuation Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.

Global Health Care Fund 23

Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under Accounting Standards Codification 820 Fair Value Measurements and Disclosures (ASC 820). If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security.

Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.

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

Many securities markets and exchanges outside the U.S. close prior to the scheduled close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value certain foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. The foreign equity securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. 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, which has been designated as valuation designee pursuant to Rule 2a–5 under the Investment Company Act of 1940, in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.

To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.

Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.

Interest income, net of any applicable withholding taxes, if any, is recorded on the accrual basis. Amortization and accretion of premiums and discounts on debt securities, if any, is recorded on the accrual basis.

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

Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The fair value of foreign securities, currency holdings, and other assets and liabilities is recorded in the books and records of the

24 Global Health Care Fund

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

Options contracts The fund uses options contracts to enhance returns on a security.

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

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

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

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

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 are used for hedging 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. Risks may exceed amounts recognized on the Statement of assets and liabilities.

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

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

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

Global Health Care Fund 25

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 $2,534,754 on open derivative contracts subject to the Master Agreements. Collateral pledged by the fund at period end for these agreements totaled $2,175,306 and may include amounts related to unsettled agreements.

Securities lending The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. Income from securities lending, if any, is net of expenses and is included in investment income on the Statement of operations. Cash collateral is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. At the close of the reporting period, the fund received cash collateral of $12,852,925 and the value of securities loaned amounted to $12,578,797.

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

Lines of credit The fund participates, along with other Putnam funds, in a $320 million syndicated unsecured committed line of credit, provided by State Street ($160 million) and JPMorgan ($160 million), and a $235.5 million unsecured uncommitted line of credit, provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund’s borrowing at a rate equal to 1.25% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the committed line of credit and 1.30% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the uncommitted line of credit. A closing fee equal to 0.04% of the committed line of credit and 0.04% of the uncommitted line of credit has been paid by the participating funds and a $75,000 fee has been paid by the participating funds to State Street as agent of the syndicated committed line of credit. In addition, a commitment fee of 0.21% per annum on any unutilized portion of the committed line of credit is allocated to the participating funds based on their relative net assets and paid quarterly. During the reporting period, the fund had no borrowings against these arrangements.

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

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

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

26 Global Health Care Fund

Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The aggregate identified cost on a tax basis is $1,160,975,298, resulting in gross unrealized appreciation and depreciation of $650,443,451 and $62,863,421, respectively, or net unrealized appreciation of $587,580,030.

Distributions to shareholders Distributions to shareholders from net investment income, if any, are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.

Note 2: Management fee, administrative services and other transactions

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


0.780%	of the first $5 billion,	0.580%	of the next $50 billion,
0.730%	of the next $5 billion,	0.560%	of the next $50 billion,
0.680%	of the next $10 billion,	0.550%	of the next $100 billion and
0.630%	of the next $10 billion,	0.545%	of any excess thereafter.

For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.307% of the fund’s average net assets.

Putnam Management has contractually agreed, through December 30, 2024, to waive fees and/or reimburse the fund’s expenses to the extent necessary to limit the cumulative expenses of the fund, exclusive of brokerage, interest, taxes, investment-related expenses, extraordinary expenses, acquired fund fees and expenses and payments under the fund’s investor servicing contract, investment management contract and distribution plans, on a fiscal year-to-date basis to an annual rate of 0.20% of the fund’s average net assets over such fiscal year-to-date period. During the reporting period, the fund’s expenses were not reduced as a result of this limit.

PIL is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.25% of the average net assets of the portion of the fund managed by PIL.

PAC is authorized by the Trustees to manage a separate portion of the assets of the fund, as designated from time to time by Putnam Management or PIL. PAC did not manage any portion of the assets of the fund during the reporting period. If Putnam Management or PIL were to engage the services of PAC, Putnam Management or PIL, as applicable, would pay a quarterly sub-advisory fee to PAC for its services at the annual rate of 0.25% of the average net assets of the portion of the fund’s assets for which PAC is engaged as sub-adviser.

On January 1, 2024, a subsidiary of Franklin Templeton acquired Putnam U.S. Holdings I, LLC (“Putnam Holdings”), the parent company of Putnam Management, PIL and PAC, in a stock and cash transaction (the “Transaction”). As a result of the Transaction, Putnam Management, PIL and PAC became indirect, wholly-owned subsidiaries of Franklin Templeton. The Transaction also resulted in the automatic termination of the investment management contract between the fund and Putnam Management, the sub-management contract for the fund between Putnam Management and PIL, and the sub-advisory contract for the fund among Putnam Management, PIL and PAC that were in place for the fund before the Transaction. However, Putnam Management, PIL and PAC continued to provide uninterrupted services with respect to the fund pursuant to new investment management, sub-management, and sub-advisory contracts that were approved by fund shareholders at a shareholder meeting held in connection with the Transaction and that took effect on January 1, 2024. The terms of the new investment management, sub-management, and sub-advisory contracts are substantially similar to those of the

Global Health Care Fund 27

previous investment management, sub-management, and sub-advisory contracts, and the fee rates payable under the new investment management, sub-management, and sub-advisory contracts are the same as the fee rates under the previous investment management, sub-management, and sub-advisory contracts.

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

Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.

Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. received fees for investor servicing for class A, class B, class C, class R and class Y shares that included (1) a per account fee for each direct and underlying non-defined contribution account (retail account) of the fund; (2) a specified rate of the fund’s assets attributable to defined contribution plan accounts; and (3) a specified rate based on the average net assets in retail accounts. Putnam Investor Services, Inc. has agreed that the aggregate investor servicing fees for each fund’s retail and defined contribution accounts for these share classes will not exceed an annual rate of 0.25% of the fund’s average assets attributable to such accounts.

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

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


Class A	$978,563	Class R	1,428
Class B	2,269	Class R6	7,582
Class C	12,236	Class Y	120,163
		Total	$1,122,241

The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. For the reporting period, the fund’s expenses were reduced by $15,203 under the expense offset arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $1,345, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.

The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable from July 1, 1995 through December 31, 2023. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.

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

The fund has adopted distribution plans (the Plans) with respect to the following share classes pursuant to Rule 12b–1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Retail Management Limited Partnership, an indirect wholly-owned subsidiary of Franklin Templeton, for services provided and expenses incurred in distributing shares of the fund. The Plans provide payments by the fund to Putnam Retail Management Limited Partnership at an annual rate of up to the following amounts (Maximum %) of the average net assets attributable to each class. The Trustees have approved payment by the fund at the

28 Global Health Care Fund

following annual rate (Approved %) of the average net assets attributable to each class. During the reporting period, the class-specific expenses related to distribution fees were as follows:


	Maximum %	Approved %	Amount
Class A	0.35%	0.25%	$1,694,177
Class B	1.00%	1.00%	15,683
Class C	1.00%	1.00%	84,753
Class R	1.00%	0.50%	4,946
Total			$1,799,559

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $36,923 from the sale of class A shares and received no monies and $31 in contingent deferred sales charges from redemptions of class B and class C shares, respectively.

A deferred sales charge of up to 1.00% is assessed on certain redemptions of class A shares. For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received $40 on class A redemptions.

Note 3: Purchases and sales of securities

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


	Cost of purchases	Proceeds from sales
Investments in securities (Long-term)	$347,626,310	$316,462,211
U.S. government securities (Long-term)	—	—
Total	$347,626,310	$316,462,211

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

Note 4: Capital shares

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


	SIX MONTHS ENDED 2/29/24		YEAR ENDED 8/31/23
Class A	Shares	Amount	Shares	Amount
Shares sold	539,961	$31,589,506	604,148	$33,943,730
Shares issued in connection with
reinvestment of distributions	1,212,889	68,843,584	1,694,107	94,769,424
	1,752,850	100,433,090	2,298,255	128,713,154
Shares repurchased	(1,330,308)	(77,351,190)	(2,248,770)	(126,571,015)
Net increase	422,542	$23,081,900	49,485	$2,142,139

Global Health Care Fund 29


	SIX MONTHS ENDED 2/29/24		YEAR ENDED 8/31/23
Class B	Shares	Amount	Shares	Amount
Shares sold	31	$610	846	$18,446
Shares issued in connection with
reinvestment of distributions	21,320	411,258	58,526	1,233,166
	21,351	411,868	59,372	1,251,612
Shares repurchased	(91,398)	(1,921,868)	(197,946)	(4,300,323)
Net decrease	(70,047)	$(1,510,000)	(138,574)	$(3,048,711)

	SIX MONTHS ENDED 2/29/24		YEAR ENDED 8/31/23
Class C	Shares	Amount	Shares	Amount
Shares sold	57,451	$1,978,253	71,676	$2,489,100
Shares issued in connection with
reinvestment of distributions	45,390	1,495,602	73,485	2,491,142
	102,841	3,473,855	145,161	4,980,242
Shares repurchased	(105,526)	(3,620,178)	(245,222)	(8,380,538)
Net decrease	(2,685)	$(146,323)	(100,061)	$(3,400,296)

	SIX MONTHS ENDED 2/29/24		YEAR ENDED 8/31/23
Class R	Shares	Amount	Shares	Amount
Shares sold	8,256	$431,973	15,361	$773,248
Shares issued in connection with
reinvestment of distributions	2,192	111,188	2,919	146,942
	10,448	543,161	18,280	920,190
Shares repurchased	(3,486)	(187,464)	(15,598)	(803,568)
Net increase	6,962	$355,697	2,682	$116,622

	SIX MONTHS ENDED 2/29/24		YEAR ENDED 8/31/23
Class R6	Shares	Amount	Shares	Amount
Shares sold	77,954	$5,176,881	74,569	$4,637,906
Shares issued in connection with
reinvestment of distributions	24,510	1,557,398	33,264	2,069,731
	102,464	6,734,279	107,833	6,707,637
Shares repurchased	(126,400)	(8,499,772)	(134,097)	(8,331,119)
Net decrease	(23,936)	$(1,765,493)	(26,264)	$(1,623,482)

	SIX MONTHS ENDED 2/29/24		YEAR ENDED 8/31/23
Class Y	Shares	Amount	Shares	Amount
Shares sold	1,120,781	$73,737,927	928,021	$57,765,621
Shares issued in connection with
reinvestment of distributions	128,568	8,148,613	184,107	11,429,504
	1,249,349	81,886,540	1,112,128	69,195,125
Shares repurchased	(401,808)	(26,076,039)	(1,120,660)	(69,476,671)
Net increase (decrease)	847,541	$55,810,501	(8,532)	$(281,546)

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Global Health Care Fund 31

Note 5: Affiliated transactions

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


						Change in
						unrealized	Shares
	Fair value as			Investment		appreciation	outstanding as	Fair value as
Name of affiliate	of 8/31/23	Purchase cost	Sale proceeds	income	Realized gain (loss)	(depreciation)	of 2/29/24	of 2/29/24
Short-term investments
Putnam Cash Collateral Pool, LLC^*	$50,451,765	$94,129,515	$131,728,355	$1,193,508	$—	$—	12,852,925	$12,852,925
Putnam Short Term Investment Fund
Class P^‡	84,847,718	166,528,225	180,831,144	1,616,568	—	—	70,544,799	70,544,799
Total Short-term investments	135,299,483	260,657,740	312,559,499	2,810,076	—	—		83,397,724
Common stocks^**
Health care
4Front Ventures Corp.	6,336,897	—	—	—	—	(1,447,008)	49,896,829	4,889,889
Innoviva, Inc.	65,758,520	—	289,447	—	(43,659)	13,097,360	5,138,925	78,522,774
Total Common stocks	72,095,417	—	289,447	—	(43,659)	11,650,352		83,412,663
Totals	$207,394,900	$260,657,740	$312,848,946	$2,810,076	$(43,659)	$11,650,352		$166,810,387

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

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

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

Note 6: Market, credit and other risks

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

The fund concentrates a majority of its investments in the health sector, which involves more risk than a fund that invests more broadly.

Note 7: Summary of derivative activity

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


Purchased equity option contracts (contract amount)	$110,000
Written equity option contracts (contract amount)	$110,000
Forward currency contracts (contract amount)	$404,800,000


32 Global Health Care Fund	Global Health Care Fund 33

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


Fair value of derivative instruments as of the close of the reporting period
	ASSET DERIVATIVES		LIABILITY DERIVATIVES
Derivatives not
accounted for as	Statement of		Statement of
hedging instruments	assets and		assets and
under ASC 815	liabilities location	Fair value	liabilities location	Fair value
Foreign exchange
contracts	Receivables	$968,463	Payables	$3,175,731
Equity contracts	Investments	1,052,113	Payables	312,811
Total		$2,020,576		$3,488,542

The following is a summary of realized and change in unrealized gains or losses of derivative instruments in the Statement of operations for the reporting period (Note 1):


Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments
Derivatives not accounted for as	Forward currency
hedging instruments under ASC 815	contracts	Total
Foreign exchange contracts	$806,440	$806,440
Total	$806,440	$806,440


Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss)
on investments
Derivatives not accounted for as hedging		Forward currency
instruments under ASC 815	Options	contracts	Total
Foreign exchange contracts	$—	$(2,017,976)	$(2,017,976)
Equity contracts	(81,071)	—	$(81,071)
Total	$(81,071)	$(2,017,976)	$(2,099,047)

34 Global Health Care Fund

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Global Health Care Fund 35

Note 8: Offsetting of financial and derivative assets and liabilities

The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions or borrowing transactions associated with securities sold short, if any, see Note 1. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.


	Bank of America N.A.	Barclays Bank PLC	Citibank, N.A.	Goldman Sachs International	HSBC Bank USA, National Association	JPMorgan Chase Bank N.A.	Morgan Stanley & Co. International PLC	NatWest Markets PLC	State Street Bank and Trust Co.	Toronto- Dominion Bank	UBS AG	WestPac Banking Corp.	Total
Assets:
Forward currency contracts^#	$212,131	$139	$79,108	$96,053	$291,924	$90,991	$—	$46,067	$53,242	$22,700	$12,972	$63,136	$968,463
Purchased options^**#	1,052,113	—	—	—	—	—	—	—	—	—	—	—	1,052,113
Total Assets	$1,264,244	$139	$79,108	$96,053	$291,924	$90,991	$—	$46,067	$53,242	$22,700	$12,972	$63,136	$2,020,576
Liabilities:
Forward currency contracts^#	8,479	—	—	218,484	895,962	53,007	364,328	770,622	461,913	302,820	43,583	56,533	3,175,731
Written options^#	312,811	—	—	—	—	—	—	—	—	—	—	—	312,811
Total Liabilities	$321,290	$—	$—	$218,484	$895,962	$53,007	$364,328	$770,622	$461,913	$302,820	$43,583	$56,533	$3,488,542
Total Financial and Derivative Net Assets	$942,954	$139	$79,108	$(122,431)	$(604,038)	$37,984	$(364,328)	$(724,555)	$(408,671)	$(280,120)	$(30,611)	$6,603	$(1,467,966)
Total collateral received (pledged)^†##	$856,207	$—	$—	$(122,431)	$(324,953)	$—	$(353,359)	$(718,907)	$(302,945)	$(252,909)	$—	$—
Net amount	$86,747	$139	$79,108	$—	$(279,085)	$37,984	$(10,969)	$(5,648)	$(105,726)	$(27,211)	$(30,611)	$6,603
Controlled collateral received (including
TBA commitments)^**	$856,207	$—	$—	$—	$—	$—	$—	$—	$—	$—	$—	$—	$856,207
Uncontrolled collateral received	$—	$—	$—	$—	$—	$—	$—	$—	$—	$—	$—	$—	$—
Collateral (pledged) (including
TBA commitments)^**	$—	$—	$—	$(222,233)	$(324,953)	$—	$(353,359)	$(718,907)	$(302,945)	$(252,909)	$—	$—	$(2,175,306)

^**Included with Investments in securities on the Statement of assets and liabilities.

^†Additional collateral may be required from certain brokers based on individual agreements.

^#Covered by master netting agreement (Note 1).

^##Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.


36 Global Health Care Fund	Global Health Care Fund 37

Shareholder meeting results (Unaudited)

November 17, 2023 special meeting

At the meeting, a new Management Contract for your fund with Putnam Investment Management, LLC was approved, as follows:


Votes for	Votes against	Abstentions/Votes withheld
12,173,828	524,248	897,927

At the meeting, a new Sub-Management Contract for your fund between Putnam Investment Management, LLC and Putnam Investments Limited was approved, as follows:


Votes for	Votes against	Abstentions/Votes withheld
12,071,732	596,995	927,277

At the meeting, a new Sub-Advisory Contract for your fund between Putnam Investment Management, LLC, Putnam Investments Limited and The Putnam Advisory Company, LLC was approved, as follows:


Votes for	Votes against	Abstentions/Votes withheld
12,022,325	617,927	955,751

All tabulations are rounded to the nearest whole number.

38 Global Health Care Fund

Fund information


Investment Manager	Trustees	Jonathan S. Horwitz
Putnam Investment	Kenneth R. Leibler, Chair	Executive Vice President,
Management, LLC	Barbara M. Baumann, Vice Chair	Principal Executive Officer,
100 Federal Street	Liaquat Ahamed	and Compliance Liaison
Boston, MA 02110	Katinka Domotorffy
	Catharine Bond Hill	Kelley Hunt
Investment Sub-Advisors	Jennifer Williams Murphy	AML Compliance Officer
Putnam Investments Limited	Marie Pillai
16 St James’s Street	George Putnam III	Martin Lemaire
London, England SW1A 1ER	Robert L. Reynolds	Vice President and
	Manoj P. Singh	Derivatives Risk Manager
The Putnam Advisory Company, LLC	Mona K. Sutphen
100 Federal Street	Jane E. Trust	Alan G. McCormack
Boston, MA 02110		Vice President and
	Officers	Derivatives Risk Manager
Marketing Services	Robert L. Reynolds
Putnam Retail Management	President, The Putnam Funds	Denere P. Poulack
Limited Partnership		Assistant Vice President,
100 Federal Street	Kevin R. Blatchford	Assistant Clerk, and
Boston, MA 02110	Vice President and	Assistant Treasurer
	Assistant Treasurer
Custodian		Janet C. Smith
State Street Bank	James F. Clark	Vice President,
and Trust Company	Vice President and	Principal Financial Officer,
	Chief Compliance Officer	Principal Accounting Officer,
Legal Counsel		and Assistant Treasurer
Ropes & Gray LLP	Michael J. Higgins
	Vice President, Treasurer,	Stephen J. Tate
	and Clerk	Vice President and
		Chief Legal Officer

This report is for the information of shareholders of Putnam Global Health Care Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of the fund’s Quarterly Performance Summary, and the fund’s Quarterly Ranking Summary. For more recent performance, please visit putnam.com or franklintempleton.com. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund, which are described in its prospectus. For this and other information or to request a prospectus or summary prospectus, call 1-800-225-1581 toll free. Please read the prospectus carefully before investing. The fund’s Statement of Additional Information contains additional information about the fund’s Trustees and is available without charge upon request by calling 1-800-225-1581.

This page left blank intentionally.


	Item 2. Code of Ethics:


	Not applicable


	Item 3. Audit Committee Financial Expert:


	Not applicable


	Item 4. Principal Accountant Fees and Services:


	Not applicable


	Item 5. Audit Committee of Listed Registrants


	Not applicable


	Item 6. Schedule of Investments:


	The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.


	Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:


	Not applicable


	Item 8. Portfolio Managers of Closed-End Investment Companies


	Not Applicable


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


	Not applicable


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


	Not applicable


	Item 11. Controls and Procedures:

(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.


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


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


	Not Applicable


	Item 13. Recovery of Erroneously Awarded Compensation.


	Not Applicable


	Item 14. Exhibits:


	(a)(1) Not applicable


	(a)(2) Not applicable


	(a)(3) Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.


	(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith.


	SIGNATURES


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


	Putnam Global Health Care Fund


	By (Signature and Title):


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


	Date: April 25, 2024


	Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


	By (Signature and Title):


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


	Date: April 25, 2024


	By (Signature and Title):


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


	Date: April 25, 2024


Message from the Trustees	1
Your fund at a glance	2
Your fund’s expenses	3
Other information for shareholders	5
Important notice regarding Putnam’s privacy policy	6
Financial statements	7
Shareholder meeting results	38


	Class A	Class B	Class C	Class R	Class R6	Class Y
Total annual operating expenses for the
fiscal year ended 8/31/23	1.07%	1.82%	1.82%	1.32%	0.72%	0.82%
Annualized expense ratio for the
six-month period ended 2/29/24	1.06%	1.81%	1.81%	1.31%	0.72%	0.81%


	Class A	Class B	Class C	Class R	Class R6	Class Y
Expenses paid per $1,000^*†	$5.59	$9.52	$9.52	$6.90	$3.80	$4.27
Ending value (after expenses)	$1,119.20	$1,115.50	$1,115.40	$1,118.00	$1,121.20	$1,120.70


	Class A	Class B	Class C	Class R	Class R6	Class Y
Expenses paid per $1,000^*†	$5.32	$9.07	$9.07	$6.57	$3.62	$4.07
Ending value (after expenses)	$1,019.59	$1,015.86	$1,015.86	$1,018.35	$1,021.28	$1,020.84


COMMON STOCKS (96.8%)*	Shares	Value
Biotechnology (15.4%)
AbbVie, Inc.	750,200	$132,072,710
Ascendis Pharma A/S ADR (Denmark) ^{† S}	509,262	75,248,553
Regeneron Pharmaceuticals, Inc. ^†	41,900	40,479,171
Rocket Pharmaceuticals, Inc. ^†	580,600	17,011,580
		264,812,014
Health care equipment and supplies (14.8%)
Boston Scientific Corp. ^†	1,308,600	86,642,406
Dexcom, Inc. ^{† S}	359,700	41,390,679
Intuitive Surgical, Inc. ^†	270,400	104,266,240
Stryker Corp.	44,900	15,673,243
Terumo Corp. (Japan)	141,900	5,523,802
		253,496,370
Health care providers and services (18.3%)
Cigna Group (The)	171,600	57,681,624
Humana, Inc.	27,988	9,804,756
McKesson Corp.	95,200	49,638,232
Option Care Health, Inc. ^†	1,343,500	43,354,745
UnitedHealth Group, Inc.	311,700	153,855,119
		314,334,476
Life sciences tools and services (8.0%)
Danaher Corp.	261,200	66,120,168
Thermo Fisher Scientific, Inc.	125,500	71,557,590
		137,677,758
Pharmaceuticals (40.3%)
4Front Ventures Corp. ^{† Ω}	49,896,829	4,889,889
AstraZeneca PLC (United Kingdom)	739,194	93,149,800
Curaleaf Holdings, Inc. ^{† S}	764,500	3,646,665
Daiichi Sankyo Co., Ltd. (Japan)	541,100	17,952,451
Eisai Co., Ltd. (Japan)	109,300	4,559,513
Eli Lilly and Co.	175,200	132,044,736
GlaxoSmithKline PLC (United Kingdom)	2,601,977	54,673,360
Innoviva, Inc. ^{† Ω}	5,138,925	78,522,774
Johnson & Johnson	246,943	39,851,661
Merck & Co., Inc.	531,538	67,585,057
Novo Nordisk A/S Class B (Denmark)	708,982	84,267,751
Roche Holding AG (Switzerland)	220,653	57,873,538
Royalty Pharma PLC Class A	653,600	19,830,224
Takeda Pharmaceutical Co., Ltd. (Japan)	603,800	17,668,561
TerrAscend Corp. (Canada) ^{† S}	7,203,486	12,317,961
Verano Holdings Corp. ^†	646,615	3,349,466
		692,183,407
Total common stocks (cost $1,065,350,847)		$1,662,504,025


	CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES


	Exact name of registrant as specified in charter:	Putnam Global Health Care Fund


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


	Name and address of agent for service:	Stephen Tate, Vice President 100 Federal Street Boston, Massachusetts 02110


	Copy to:	Bryan Chegwidden, Esq. Ropes & Gray LLP 1211 Avenue of the Americas New York, New York 10036


		James E. Thomas, Esq. Ropes & Gray LLP 800 Boylston Street Boston, Massachusetts 02199


	Registrant’s telephone number, including area code:	(617) 292-1000


	Date of reporting period:	September 1, 2023 – February 29, 2024


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


PURCHASED OPTIONS OUTSTANDING (0.1%)* Counterparty	Expiration date/strike price	Notional amount	Contract amount	Value
Bank of America N.A.
Ascendis Pharma A/S ADR (Call)	Apr-24/$165.00	$39,356,615	$266,355	$1,052,113
Total purchased options outstanding (cost $1,065,420)				$1,052,113


	UNITED STATES SECURITIES AND EXCHANGE COMMISSION


	Washington, D.C. 20549


	FORM N-CSR


	Investment Company Act file number:	(811-03386)


U.S. TREASURY OBLIGATIONS (—%)*	Principal amount	Value
U.S. Treasury Notes 0.625%, 8/15/30 ⁱ	$1,075,000	$856,207
Total U.S. treasury obligations (cost $856,207)		$856,207


SHORT-TERM INVESTMENTS (5.0%)*		Principal amount/ shares	Value
Putnam Cash Collateral Pool, LLC 5.53% ^d	Shares	12,852,925	$12,852,925
Putnam Short Term Investment Fund Class P 5.51% ^L	Shares	70,544,799	70,544,799
U.S. Treasury Bills 5.378%, 5/23/24 ^∆		$2,000,000	1,975,836
U.S. Treasury Bills 5.353%, 4/25/24 ^∆		1,300,000	1,289,502
Total short-term investments (cost $86,663,368)			$86,663,062


TOTAL INVESTMENTS
Total investments (cost $1,153,935,842)	$1,751,075,407


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 September 1, 2023 through February 29, 2024 (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 Franklin Resources, Inc., and references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures.
^*	Percentages indicated are based on net assets of $1,716,995,642.
^†	This security is non-income-producing.
^Ω	Affiliated company (Note 5).
^∆	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 $2,175,306 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.
ⁱ	This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts (Note 1).
^L	Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
^S	Security on loan, in part or in entirety, at the close of the reporting period (Note 1).
	Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.


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	75.7%	Japan	2.6%
Denmark	9.2	Canada	0.7
United Kingdom	8.5	Total	100.0%
Switzerland	3.3
⌂ Methodology differs from that used for purposes of complying with the fund’s policy regarding investments in securities of foreign issuers, as discussed further in the fund’s prospectus.


FORWARD CURRENCY CONTRACTS at 2/29/24 (aggregate face value $403,419,774) (Unaudited)
Counterparty	Currency	Contract type*	Delivery date	Value	Aggregate face value	Unrealized appreciation/ (depreciation)
Bank of America N.A.
	Australian Dollar	Buy	4/17/24	$46,148	$47,700	$(1,552)
	British Pound	Sell	3/20/24	4,655,287	4,649,197	(6,090)
	Euro	Buy	3/20/24	291,030	291,867	(837)
	Swiss Franc	Sell	3/20/24	15,368,329	15,580,460	212,131
Barclays Bank PLC
	British Pound	Sell	3/20/24	5,118,720	5,118,859	139
Citibank, N.A.
	Danish Krone	Sell	3/20/24	32,800,954	32,880,062	79,108
Goldman Sachs International
	British Pound	Sell	3/20/24	5,714,707	5,706,507	(8,200)
	Canadian Dollar	Sell	4/17/24	1,794,124	1,824,159	30,035
	Israeli Shekel	Buy	4/17/24	2,309,436	2,263,194	46,242
	Japanese Yen	Buy	5/16/24	16,046,632	16,256,916	(210,284)
	Swedish Krona	Buy	3/20/24	2,110,008	2,090,232	19,776
HSBC Bank USA, National Association
	British Pound	Sell	3/20/24	7,642,670	7,629,281	(13,389)
	Canadian Dollar	Sell	4/17/24	2,598,722	2,642,078	43,356
	Danish Krone	Sell	3/20/24	5,095,985	5,167,301	71,316
	Euro	Buy	3/20/24	29,586,228	29,408,976	177,252
	Swiss Franc	Buy	3/20/24	41,276,597	42,159,170	(882,573)
JPMorgan Chase Bank N.A.
	British Pound	Sell	3/20/24	25,078,283	25,092,837	14,554
	Canadian Dollar	Sell	4/17/24	2,048,584	2,082,813	34,229
	Danish Krone	Sell	3/20/24	9,988,904	9,996,912	8,008
	Euro	Buy	3/20/24	23,585,124	23,550,924	34,200
	Japanese Yen	Buy	5/16/24	4,074,949	4,127,956	(53,007)
Morgan Stanley & Co. International PLC
	Australian Dollar	Buy	4/17/24	2,556,492	2,642,183	(85,691)
	British Pound	Buy	3/20/24	82,436	94,902	(12,466)
	Danish Krone	Sell	3/20/24	6,441,802	6,402,355	(39,447)
	Japanese Yen	Buy	5/16/24	2,883,595	2,922,173	(38,578)
	Swiss Franc	Buy	3/20/24	8,062,035	8,250,181	(188,146)


WRITTEN OPTIONS OUTSTANDING at 2/29/24 (premiums $245,047) (Unaudited)
Counterparty	Expiration date/strike price	Notional amount	Contract amount	Value
Bank of America N.A.
Ascendis Pharma A/S ADR (Call)	Apr-24/$185.00	$39,356,615	$266,355	$312,811
Total				$312,811