a_globalequity.htm

N-CSRS 1 a_globalequity.htm PUTNAM GLOBAL EQUITY FUND a_globalequity.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: (811- 01403 )

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

Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109

Name and address of agent for service:	Beth S. Mazor, Vice President
	One Post Office Square
	Boston, Massachusetts 02109

Copy to:	John W. Gerstmayr, Esq.
	Ropes & Gray LLP
	One International Place
	Boston, Massachusetts 02110

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

Date of fiscal year end: October 31, 2007

Date of reporting period: November 1, 2006— April 30, 2007

Item 1. Report to Stockholders:

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

What makes Putnam different?

In 1830, Massachusetts Supreme Judicial Court Justice Samuel Putnam established The Prudent Man Rule, a legal foundation for responsible money management.

THE PRUDENT MAN RULE

All that can be required of a trustee to invest is that he shall conduct himself faithfully and exercise a sound discretion. He is to observe how men of prudence, discretion, and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety of the capital to be invested.

A time-honored tradition in money management

Since 1937, our values have been rooted in a profound sense of responsibility for the money entrusted to us.

A prudent approach to investing

We use a research-driven team approach to seek consistent, dependable, superior investment results over time, although there is no guarantee a fund will meet its objectives.

Funds for every investment goal

We offer a broad range of mutual funds and other financial products so investors and their financial representatives can build diversified portfolios.

A commitment to doing what’s right for investors

We have below-average expenses and stringent investor protections, and provide a wealth of information about the Putnam funds.

Industry-leading service

We help investors, along with their financial representatives, make informed investment decisions with confidence.

Putnam
Global Equity
Fund

4| 30| 07
Semiannual Report

Message from the Trustees	2
About the fund	4
Report from the fund managers	7
Performance	13
Expenses	16
Portfolio turnover	18
Risk	19
Your fund’s management	20
Terms and definitions	23
Trustee approval of management contract	25
Other information for shareholders	31
Financial statements	32
Brokerage commissions	56

Cover photograph: © Marco Cristofori

Message from the Trustees

Dear Fellow Shareholder

Reflecting investor uncertainty about the outlook for the U.S. economy, volatility in the financial markets has been on the rise: after a downturn in March, the Dow Jones Industrial Average recently reached new record-high levels. However, it remains to be seen whether the current levels are sustainable. From our perspective, we are encouraged by recent indications of moderate inflation, a low unemployment rate, and a rebound in manufacturing. We consequently believe the resilience of the U.S. economy will enable it to weather this period of uncertainty.

As we communicated in proxy materials recently mailed to all Putnam fund shareholders, on February 1, 2007, Marsh & McLennan Companies, Inc. announced that it had signed a definitive agreement to sell its ownership interest in Putnam Investments Trust, the parent company of Putnam Management and its affiliates, to Great-West Lifeco Inc. Great-West Lifeco is a financial services holding company with operations in Canada, the United States, and Europe and is a member of the Power Financial Corporation group of companies. We are pleased to announce that in mid-May, shareholders voted overwhelmingly in favor of the proposed transaction. While it is still subject to regulatory approvals and other conditions, we currently expect the transaction to be completed in the middle of the year.

We would also like to take this opportunity to announce that Putnam President and Chief Executive Officer Ed Haldeman, one of your fund’s Trustees since 2004, has been named President of the Funds, assuming this role from George Putnam, III. This change will enable George Putnam to become an independent Trustee of the funds upon

completion of the transaction with Great-West Lifeco. Both George and Ed will continue serving on the Board of Trustees in our collective role of overseeing the Putnam funds on your behalf.

In the following pages, members of your fund’s management team discuss the fund’s performance and strategies for the fiscal period ended April 30, 2007, and provide their outlook for the months ahead. As always, we thank you for your support of the Putnam funds.

Putnam Global Equity Fund: seeking the benefits
of investing in stocks around the world

Just as free trade has opened the U.S. economy to world imports in recent years, the world has also opened to U.S. investors. Since 1994, Putnam Global Equity Fund has targeted solid companies throughout the world to offer investors a globally diversified stock portfolio.

With a global mandate, the fund invests across developed markets such as the United States, the European Union, and Japan. It also invests a portion of its assets in emerging markets. Though they have greater risk of volatility and illiquid securities, markets such as Brazil, Russia, India, and China may offer more robust economic growth.

The fund’s management team selects portfolio holdings from thousands of global stocks, with a strategy to identify what it believes are quality companies without a bias toward either growth- or value-style stocks. The team seeks to buy the stocks of these companies when they are priced below what the team determines to be their true worth. While the fund typically favors large, blue-chip companies, it can also invest in midsize and small companies. Although the stocks of smaller companies can be more volatile, they may offer stronger growth potential as well.

The fund has the flexibility to invest in top global competitors wherever they are based. To gather information about this wide variety of companies and markets, the management team draws on in-house research by Putnam analysts based in Boston, London, and Tokyo.

While investing in companies that operate under different economic and political systems involves risk, the fund may let your money grow when there is a downturn in the U.S. economy. That may be because international economies, which can follow a different business cycle, might be growing while the U.S. economy is sluggish.

In addition, investing in securities denominated in foreign currencies provides another type of diversification. While the euro, the yen, and other currencies fluctuate in value, the fund can benefit when these currencies strengthen against the U.S. dollar. The management team diligently monitors risk, seeking to sell fund holdings and to hedge currencies that it believes offer more risk than reward.

For nearly 13 years, the fund has offered investors the opportunity to benefit from the investment potential of diverse companies around the world.

Stock selection relies on
both fundamental and
quantitative tools

To seek consistent, dependable, superior performance over time, we look for stocks that have multiple sources of strength working in their favor. To consider a wide range of possible strengths, we use both fundamental analysis of company financials and quantitative research into factors that influence stock prices. Our research process has three key stages:

Screening: With integrated fundamental and quantitative methods, we screen stocks around the world to focus on 100-200 stocks that we want to consider buying for the portfolio.

Analysis: To determine which of the top 200 stocks we favor, and which to reject, we meet with company management and their competitors, customers, and suppliers.

Portfolio construction: We review the current portfolio and make buying and selling decisions to build a fund we believe optimizes the balance of return and risk.

Closer integration of world markets in recent years
has expanded opportunities for global investing.

Putnam Global Equity Fund seeks capital appreciation by investing mainly in common stocks of large and midsize companies worldwide. The fund targets companies believed to be worth more than their current stock prices may indicate, and can own stocks with both growth and value characteristics. It may be appropriate for investors seeking capital appreciation who are willing to accept the risk of investing in markets worldwide.

Highlights

• Putnam Global Equity Fund’s class A shares returned 14.48% before sales charges for the six months ended April 30, 2007.

• Your fund’s benchmark, the MSCI World Index, returned 11.87% .

• Your fund’s Lipper peer group, Global Large-Cap Core Funds, had an average return of 12.17% .

• Additional fund performance, comparative performance, and Lipper data can be found in the performance section beginning on page 13.

Performance

Total return for class A shares for periods ended 4/30/07

Since the fund’s inception (7/1/94), average annual return is 12.05% before sales charge and 11.58% after sales charge.

	Average annual return		Cumulative return

	Before sales charge	After sales charge	Before sales charge	After sales charge
10 years	10.57%	9.98%	173.25%	159.00%

5 years	12.26	11.07	78.31	69.05

3 years	18.17	16.08	65.01	56.42

1 year	19.18	12.89	19.18	12.89

6 months	—	—	14.48	8.46

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, and you may have a gain or a loss when you sell your shares. Performance of class A shares assumes reinvestment of distributions and does not account for taxes. After sales charge returns reflect a maximum 5.25% load. For a portion of the periods, this fund may have limited expenses, without which returns would have been lower. A 1% short-term trading fee may apply. To obtain the most recent month-end performance, visit www.putnam.com.

Report from the fund managers

The period in review

We are pleased to report that Putnam Global Equity Fund’s strong performance for fiscal 2006 has continued through the 2007 fiscal year’s first half, which ended April 30, 2007. Furthermore, as in fiscal 2006, your fund’s results before sales charges exceeded both those of its benchmark, the MSCI World Index, and the average for its Lipper fund category, Lipper Global Large-Cap Core Funds. While stocks generally appreciated in most of the world’s markets during the semiannual period, we attribute the fund’s strength to successful stock selection, which boosted results across almost every business sector. Our currency positioning also made a modest positive contribution to performance.

Market overview

In calendar year 2006, the world’s growth pace was a brisk 5.4%, according to the International Monetary Fund. Asia and Latin America were among the top-performing regions, and Europe also accelerated. While stock markets around the world advanced at a faster-than-normal pace during your fund’s semiannual period, changing perceptions of the global economy shaped the period into three distinct phases. In the first few months, markets generally anticipated that growth was remaining on course, but there were concerns about a slowdown in the United States. These concerns became more evident during the second phase, in February and March, when the already weak U.S. housing market was rocked by rising defaults among subprime mortgages, and the consequent failures of many subprime mortgage lenders. Markets declined on heightened fears of a recession that could have spillover effects for the global economy.

However, this downturn was short-lived. Market conditions shifted for a third time as investors became reassured by continuing job creation and acknowledgement from the Federal Reserve (the Fed) that it was watching the risks to growth. While the U.S. housing market remains weak, its negative effects appear to be contained

within the United States. Economic growth elsewhere remains strong. The current global expansion remains one of the most solid and pervasive of recent history, and is supporting business activity and corporate profits in many sectors and markets.

Strategy overview

In managing your fund’s portfolio, our approach focuses first and foremost on stock selection. In researching stocks, we look for those that we believe are mispriced by the market — in other words, companies that we believe are worth more than their current stock prices indicate. Our strategy reflects a “blend” investment style, which means that we have the flexibility to invest in stocks that may be considered growth-or value-style stocks, without having a bias toward either. The fund can own both companies that are growing rapidly and that we believe will continue to grow, as well as out-of-favor companies undergoing changes that may improve their financial performance. Our stock selection decisions determine the fund’s overweights and underweights relative to the benchmark, though it is unusual for the fund to have extreme overweights or underweights relative to the benchmark index.

Our research methods include a combination of fundamental and quantitative tools that function in tandem. Our quantitative tools allow us to scan the thousands of stocks in global markets to

Market sector performance

These indexes provide an overview of performance in different market sectors for the six months ended 4/30/07.

Equities

MSCI World Index (global stocks)	11.87%

MSCI EAFE Index (international stocks)	15.46%

S&P 500 Index (broad stock market)	8.60%

Bonds

Citigroup World Government Bond Index (global government bonds)	3.12%

JPMorgan Global High Yield Index (global high-yield corporate bonds)	7.41%

Lehman Aggregate Bond Index (broad bond market)	2.64%

Lehman Government Bond Index (U.S. Treasury and agency securities)	2.27%

find attractive companies and to interpret market trends. With our fundamental tools, we can look at stocks individually, to confirm what our quantitative models indicate, or to find information that suggests a stock is more or less attractive than it appears at first glance.

Your fund’s holdings

During the period, the fund’s top-performing holdings were primarily in industries that benefited from the long-term structural changes occurring in emerging markets. This does not mean that the portfolio had substantial holdings in emerging markets. Instead, the fund had exposure to emerging markets through companies based in developed markets that sell products or services globally. We chose this approach because stocks in developed markets were generally cheaper and since, it appears to us, investors have underestimated the sustainability of growth in emerging markets. Many of the stocks we found most attractive are in the energy and basic materials sectors, particularly steel and commodities, as well as the shipping and airlines industries. Because they were seen as unprofitable businesses during the 1980s and 1990s, many of these sectors invested little in development, and even experienced a decline in overall capacity. The remaining companies, however, consolidated their positions.

A key contributor to fund performance was Mitsui O.S.K. Lines, a diversified

Comparison of top country weightings

This chart shows how the fund’s top weightings have changed over the last six months. Weightings are shown as a percentage of net assets. Holdings will vary over time.

Japanese shipping company. The shipping industry had not demonstrated noteworthy growth potential for some time but it surged over the past four years as global trade increased significantly. In the past four years, shipping volume between Asia and the United States has nearly doubled. This higher volume has allowed shipping companies to raise prices, which is helping Mitsui’s profit margins.

We built a position in Salzgitter, a German steelmaker, during the period. This company is a leading supplier of steel throughout Europe, and has another profitable business niche as a supplier of steel tubing. These products are used as components of the industrial and energy pipelines now being constructed in many markets, particularly developing economies. The stock appreciated steadily during the period. We think it is poised to benefit from the ongoing consolidation of Europe’s steel industry.

Demand for oil, gas, and other types of energy has increased in the industrialized world and at an even faster rate in emerging markets. The fund’s positions in the energy sector generally performed well during the period. Valero Energy, based in the United States, performed particularly well. Valero occupies an advantageous niche in the oil industry, because it is a leading refiner of heavy, sour crude oil. This type of oil requires more refining than light, sweet crude oil to produce finished energy products.

Top holdings

This table shows the fund’s top holdings, and the percentage of the fund’s net assets that each represented, as of 4/30/07. The fund's holdings will change over time.

Holding (percent of fund’s net assets)	Country	Industry

Suzuki Motor Corp. (3.2%)	Japan	Automotive

Goldman Sachs Group, Inc. (The) (3.0%)	United States	Investment banking/brokerage

WellPoint, Inc. (3.0%)	United States	Health-care services

Allianz SE (2.9%)	Germany	Insurance

Mitsui O.S.K Lines, Ltd. (2.9%)	Japan	Shipping

Bank of America Corp. (2.8%)	United States	Banking

Johnson & Johnson (2.8%)	United States	Pharmaceuticals

Marathon Oil Corp. (2.7%)	United States	Oil and gas

Valero Energy Corp. (2.7%)	United States	Oil and gas

Delhaize Group (2.4%)	Belgium	Food

This gives Valero particularly attractive product margins. The company’s stock price outperformed the U.S. market by a significant amount during the period.

We bought the stock of another oil refiner, SK Corporation of South Korea, during the period. As oil prices moderated in late 2006, the profit margins of this company fell, and the stock’s price declined. We found the valuation attractive, and considered it to have an attractive position serving Asian markets. This stock also appreciated strongly during the period as confidence in the continued global economic expansion helped oil prices to firm.

We saw disappointing results from Nissan Motor Company of Japan, which is among the car makers suffering from the slump in U.S. auto sales. The company’s models have not competed well lately, which has led to a restructuring of operations and management, as chief executive officer Carl Ghosn relinquished direct oversight of North American operations. We continue to own the stock because, following its decline during the period, we believe that it remains undervalued and offers appreciation potential. We believe the company’s new car models and its restructured production should lead to stronger profits in the future.

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

The outlook for your fund

The following commentary reflects anticipated developments that could affect your fund over the next six months, as well as your management team’s plans for responding to them.

We have a generally optimistic outlook for the global economy. The solid business activity that is occurring simultaneously across regions appears to be providing a supportive background for stocks. Emerging economies of the world are expanding and possess healthier financial conditions than has been the case in past decades. These economies now represent half of the world’s economy when measured by purchasing power parity, meaning the ability of consumers to generate demand. In other words, the emerging world is equal to the developed world in its economic impact. This should help international markets continue their growth, even amid the current sluggish economic activity in the United States.

Of course, given the widespread volatility of February and March, we remain watchful of risks. When stocks appreciate rapidly in a short amount of time, as we have seen during this period, the upswing can be followed by a period of profit-taking in which prices moderate. We believe that the large-cap companies the fund favors tend to be better able to adapt to shifting economic trends than smaller companies. We will continue to rely on our flexible blend strategy and our thorough stock research to build a portfolio of companies we consider well-positioned to benefit from growth in the world economy.

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

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging-market securities, including illiquidity and volatility. The fund invests some or all of its assets in small and/or midsize companies. Such investments increase the risk of fluctuations in the value of your investment.

Your fund’s performance

This section shows your fund’s performance for periods ended April 30, 2007, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance as of the most recent calendar quarter-end and expense information taken from the fund’s current prospectus. Performance should always be considered in light of a fund’s investment strategy. Data represents past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. For the most recent month-end performance, please visit www.putnam.com or call Putnam at 1-800-225-1581. Class Y shares are generally only available to corporate and institutional clients and clients in other approved programs. See the Terms and Definitions section in this report for definitions of the share classes offered by your fund.

Fund performance

Total return for periods ended 4/30/07

	Class A		Class B		Class C		Class M		Class R	Class Y
(inception dates)	(7/1/94)		(7/1/94)		(2/1/99)		(7/3/95)		(1/21/03)	(9/23/02)

	NAV	POP	NAV	CDSC	NAV	CDSC	NAV	POP	NAV	NAV
Annual average
(life of fund)	12.05%	11.58%	11.30%	11.30%	11.29%	11.29%	11.58%	11.30%	11.79%	12.14%

10 years	173.25	159.00	154.55	154.55	154.89	154.89	161.12	152.74	167.11	176.14
Annual average	10.57	9.98	9.79	9.79	9.81	9.81	10.07	9.72	10.32	10.69

5 years	78.31	69.05	71.48	69.48	71.52	71.52	74.06	68.43	76.47	80.19
Annual average	12.26	11.07	11.39	11.13	11.39	11.39	11.72	10.99	12.03	12.50

3 years	65.01	56.42	61.40	58.40	61.44	61.44	62.56	57.34	63.83	66.20
Annual average	18.17	16.08	17.30	16.57	17.31	17.31	17.58	16.31	17.89	18.45

1 year	19.18	12.89	18.27	13.27	18.32	17.32	18.69	14.85	18.90	19.39

6 months	14.48	8.46	14.11	9.11	14.14	13.14	14.29	10.62	14.40	14.61

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After sales charge returns (public offering price, or POP) for class A and M shares reflect a maximum 5.25% and 3.25% load, respectively. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter. Class C shares reflect a 1% CDSC for the first year and is eliminated thereafter. Class R and Y shares have no initial sales charge or CDSC. Performance for class C, M, R, and Y shares before their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares.

For a portion of the periods, this fund may have limited expenses, without which returns would have been lower.

A 1% short-term trading fee may be applied to shares exchanged or sold within 90 days of purchase.

Comparative index returns

For periods ended 4/30/07

		Lipper Global
		Large-Cap Core Funds
	MSCI World Index	category average*

Annual average
(life of fund)	9.23%	9.28%

10 years	115.84	103.81
Annual average	8.00	7.25

5 years	77.55	67.20
Annual average	12.17	10.73

3 years	60.56	58.07
Annual average	17.10	16.41

1 year	16.98	16.19

6 months	11.87	12.17

Index and Lipper results should be compared to fund performance at net asset value.

* Over the 6-month and 1-, 3-, 5-, 10-year and life-of-fund periods ended 4/30/07, there were 60, 59, 56, 45, 26, and 14 funds, respectively, in this Lipper category.

Fund price and distribution information

For the six-month period ended 4/30/07

Distributions*	Class A		Class B	Class C	Class M		Class R	Class Y

Number	1		1	1	1		1	1

Income	$0.175		$0.096	$0.102	$0.124		$0.167	$0.204

Capital gains	—		—	—	—		—	—

Total	$0.175		$0.096	$0.102	$0.124		$0.167	$0.204

Share value:	NAV	POP	NAV	NAV	NAV	POP	NAV	NAV

10/31/06	$10.64	$11.23	$9.67	$10.19	$10.25	$10.59	$10.57	$10.97

4/30/07	11.99	12.65	10.93	11.52	11.58	11.97	11.91	12.35

*Dividend sources are estimated and may vary based on final tax calculations after the fund’s fiscal year-end.

Fund performance as of most recent calendar quarter

Total return for periods ended 3/31/07

	Class A		Class B		Class C		Class M		Class R	Class Y
(inception dates)	(7/1/94)		(7/1/94)		(2/1/99)		(7/3/95)		(1/21/03)	(9/23/02)
	NAV	POP	NAV	CDSC	NAV	CDSC	NAV	POP	NAV	NAV

Annual average
(life of fund)	11.66%	11.19%	10.91%	10.91%	10.90%	10.90%	11.18%	10.90%	11.39%	11.75%

10 years	164.18	150.44	145.85	145.85	146.58	146.58	152.52	144.25	158.06	166.94
Annual average	10.20	9.62	9.41	9.41	9.44	9.44	9.71	9.34	9.94	10.32

5 years	61.67	53.23	55.63	53.63	55.57	55.57	57.57	52.48	59.74	63.37
Annual average	10.08	8.91	9.25	8.97	9.24	9.24	9.52	8.80	9.82	10.31

3 years	51.27	43.28	48.00	45.00	48.10	48.10	49.05	44.22	50.14	52.49
Annual average	14.79	12.74	13.96	13.19	13.99	13.99	14.23	12.98	14.51	15.10

1 year	17.16	10.97	16.21	11.21	16.30	15.30	16.57	12.78	16.74	17.34

6 months	14.04	8.06	13.68	8.68	13.66	12.66	13.82	10.10	13.95	14.19

Fund’s annual operating expenses

For the fiscal year ended 10/31/06

	Class A	Class B	Class C	Class M	Class R	Class Y

Total annual fund
operating expenses	1.28%	2.03%	2.03%	1.78%	1.53%	1.03%

Expense information in this table is taken from the most recent prospectus, is subject to change, and may differ from that shown in the next section and in the financial highlights of this report. Expenses are shown as a percentage of fund assets.

Your fund’s expenses

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

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Putnam Global Equity Fund from November 1, 2006, to April 30, 2007. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

	Class A	Class B	Class C	Class M	Class R	Class Y

Expenses paid per $1,000*	$ 6.81	$ 10.78	$ 10.78	$ 9.46	$ 8.13	$ 5.48

Ending value (after expenses)	$1,144.80	$1,141.10	$1,141.40	$1,142.90	$1,144.00	$1,146.10

* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 4/30/07. The expense ratio may differ for each share class (see the last table in this section). Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period; and then dividing that result by the number of days in the year.

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended April 30, 2007, use the calculation method below. To find the value of your investment on November 1, 2006, go to www.putnam.com and log on to your account. Click on the “Transaction History” tab in your Daily Statement and enter 11/01/2006 in both the “from” and “to” fields. Alternatively, call Putnam at 1-800-225-1581.

Compare expenses using the SEC’s method

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

	Class A	Class B	Class C	Class M	Class R	Class Y

Expenses paid per $1,000*	$ 6.41	$ 10.14	$ 10.14	$ 8.90	$ 7.65	$ 5.16

Ending value (after expenses)	$1,018.45	$1,014.73	$1,014.73	$1,015.97	$1,017.21	$1,019.69

Compare expenses using industry averages

You can also compare your fund’s expenses with the average of its peer group, as defined by Lipper, an independent fund-rating agency that ranks funds relative to others that Lipper considers to have similar investment styles or objectives. The expense ratio for each share class shown below indicates how much of your fund’s average net assets have been used to pay ongoing expenses during the period.

	Class A	Class B	Class C	Class M	Class R	Class Y

Your fund's annualized
expense ratio	1.28%	2.03%	2.03%	1.78%	1.53%	1.03%

Average annualized expense
ratio for Lipper peer group*	1.41%	2.16%	2.16%	1.91%	1.66%	1.16%

* Simple average of the expenses of all front-end load funds in the fund’s Lipper peer group, calculated in accordance with Lipper’s standard method for comparing fund expenses (excluding 12b-1 fees and without giving effect to any expense offset and brokerage service arrangements that may reduce fund expenses). This average reflects each fund’s expenses for its most recent fiscal year available to Lipper as of 3/31/07. To facilitate comparison, Putnam has adjusted this average to reflect the 12b-1 fees carried by each class of shares other than class Y shares, which do not incur 12b-1 fees. The peer group may include funds that are significantly smaller or larger than the fund, which may limit the comparability of the fund’s expenses to the simple average, which typically is higher than the asset-weighted average.

Your fund’s
portfolio turnover

Putnam funds are actively managed by teams of experts who buy and sell securities based on intensive analysis of companies, industries, economies, and markets. Portfolio turnover is a measure of how often a fund’s managers buy and sell securities for your fund. A portfolio turnover of 100%, for example, means that the managers sold and replaced securities valued at 100% of a fund’s assets within a one-year period. Funds with high turnover may be more likely to generate capital gains and dividends that must be distributed to shareholders as taxable income. High turnover may also cause a fund to pay more brokerage commissions and other transaction costs, which may detract from performance.

Turnover comparisons

Percentage of holdings that change every year

	2006	2005	2004	2003	2002

Putnam Global Equity Fund	88%	82%	77%	82%	91%*†

Lipper Global Large-Cap

Core Funds category average	84%	97%	120%	138%	92%

Turnover data for the fund is calculated based on the fund’s fiscal-year period, which ends on October 31. Turnover data for the fund’s Lipper category is calculated based on the average of the turnover of each fund in the category for its fiscal year ended during the indicated year. Fiscal years vary across funds in the Lipper category, which may limit the comparability of the fund’s portfolio turnover rate to the Lipper average. Comparative data for 2006 is based on information available as of 12/31/06.

* For the period March 1, 2002, to October 31, 2002. The fund changed its fiscal year end from February 28 to October 31.

† Portfolio turnover excludes the impact of assets received from the merger of Putnam Global Growth and Income Fund and the former Putnam Global Equity Fund.

Your fund’s risk

This risk comparison is designed to help you understand how your fund compares with other funds. The comparison utilizes a risk measure developed by Morningstar, an independent fund-rating agency. This risk measure is referred to as the fund’s Morningstar Risk.

Your fund’s Morningstar^®Risk

Your fund’s Morningstar Risk is shown alongside that of the average fund in its Morningstar category. The risk bar broadens the comparison by translating the fund’s Morningstar Risk into a percentile, which is based on the fund’s ranking among all funds rated by Morningstar as of March 31, 2007. A higher Morningstar Risk generally indicates that a fund’s monthly returns have varied more widely.

Morningstar determines a fund’s Morningstar Risk by assessing variations in the fund’s monthly returns — with an emphasis on downside variations — over a 3-year period, if available. Those measures are weighted and averaged to produce the fund’s Morningstar Risk. The information shown is provided for the fund’s class A shares only; information for other classes may vary. Morningstar Risk is based on historical data and does not indicate future results. Morningstar does not purport to measure the risk associated with a current investment in a fund, either on an absolute basis or on a relative basis. Low Morningstar Risk does not mean that you cannot lose money on an investment in a fund. Copyright 2007 Morningstar, Inc. All Rights Reserved. The information contained herein (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Your fund’s management

Your fund is managed by the members of the Putnam Global Core Team. Shigeki Makino is the Portfolio Leader and Bradford Greenleaf is a Portfolio Member of the fund. The Portfolio Leader and Portfolio Member coordinate the team’s management of the fund. For a complete listing of the members of the Putnam Global Core Team, including those who are not Portfolio Leaders or Portfolio Members of your fund, visit Putnam’s Individual Investor Web site at www.putnam.com.

Investment team fund ownership

The table below shows how much the fund’s current Portfolio Leader and Portfolio Member have invested in the fund and in all Putnam mutual funds (in dollar ranges). Information shown is as of April 30, 2007, and April 30, 2006.

Trustee and Putnam employee fund ownership

As of April 30, 2007, all of the Trustees of the Putnam funds owned fund shares. The table below shows the approximate value of investments in the fund and all Putnam funds as of that date by the Trustees and Putnam employees. These amounts include investments by the Trustees’ and employees’ immediate family members and investments through retirement and deferred compensation plans.

		Total assets in
	Assets in the fund	all Putnam funds

Trustees	$ 1,230,000	$ 95,000,000

Putnam employees	$12,960,000	$466,000,000

Fund manager compensation

The total 2006 fund manager compensation that is attributable to your fund is approximately $1,300,000. This amount includes a portion of 2006 compensation paid by Putnam Management to the fund managers listed in this section for their portfolio management responsibilities, calculated based on the fund assets they manage taken as a percentage of the total assets they manage. The compensation amount also includes a portion of the 2006 compensation paid to the Chief Investment Officer of the team and the Group Chief Investment Officer of the fund’s broader investment category for their oversight responsibilities, calculated based on the fund assets they oversee taken as a percentage of the total assets they oversee. This amount does not include compensation of other personnel involved in research, trading, administration, systems, compliance, or fund operations; nor does it include non-compensation costs. These percentages are determined as of the fund’s fiscal period-end. For personnel who joined Putnam Management during or after 2006, the calculation reflects annualized 2006 compensation or an estimate of 2007 compensation, as applicable.

Other Putnam funds managed by the Portfolio Leader and Portfolio Member

Shigeki Makino and Bradford Greenleaf are not Portfolio Leaders or Portfolio Members of any other Putnam mutual fund, although they may also manage other accounts and variable trust funds advised by Putnam Management or an affiliate.

Changes in your fund’s Portfolio Leader and Portfolio Members

During the year ended April 30, 2007, Portfolio Members Mark Bogar and David Gerber left your fund’s management team.

Putnam fund ownership by Putnam’s Executive Board

The table below shows how much the members of Putnam’s Executive Board have invested in all Putnam mutual funds (in dollar ranges). Information shown is as of April 30, 2007, and April 30, 2006.

			$1 –	$10,001 –	$50,001 –	$100,001 –	$500,001 –	$1,000,001
	Year	$0	$10,000	$50,000	$100,000	$500,000	$1,000,000	and over

Philippe Bibi	2007							•

Chief Technology Officer	2006							•

Joshua Brooks	2007							•

Deputy Head of Investments	2006							•

William Connolly	2007							•

Head of Retail Management	2006							•

Kevin Cronin	2007							•

Head of Investments	2006							•

Charles Haldeman, Jr.	2007							•

President and CEO	2006							•

Amrit Kanwal	2007						•

Chief Financial Officer	2006						•

Steven Krichmar	2007							•

Chief of Operations	2006						•

Francis McNamara, III	2007							•

General Counsel	2006							•

Jeffrey Peters	2007							•

Head of International Business	N/A

Richard Robie, III	2007						•

Chief Administrative Officer	2006						•

Edward Shadek	2007							•

Deputy Head of Investments	2006							•

Sandra Whiston	2007							•

Head of Institutional Management	2006						•

N/A indicates the individual was not a member of Putnam’s Executive Board as of 4/30/06.

Terms and definitions

Important terms

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

Net asset value (NAV) is the price, or value, of one share of a mutual fund, without a sales charge. NAVs fluctuate with market conditions. NAV is calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

Public offering price (POP) is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. POP performance figures shown here assume the 5.25% maximum sales charge for class A shares and 3.25% for class M shares.

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

Share classes

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

Class B shares are not subject to an initial sales charge. They may be subject to a CDSC.

Class C shares are not subject to an initial sales charge and are subject to a CDSC only if the shares are redeemed during the first year.

Class M shares have a lower initial sales charge and a higher 12b-1 fee than class A shares and no CDSC (except on certain redemptions of shares bought without an initial sales charge).

Class R shares are not subject to an initial sales charge or CDSC and are available only to certain defined contribution plans.

Class Y shares are not subject to an initial sales charge or CDSC, and carry no 12b-1 fee. They are only available to eligible purchasers, including eligible defined contribution plans or corporate IRAs.

Comparative indexes

Citigroup World Government Bond Index is an unmanaged index of global investment-grade fixed-income securities.

JPMorgan Global High Yield Index is an unmanaged index of global high-yield fixed-income securities.

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

Lehman Government Bond Index is an unmanaged index of U.S. Treasury and agency securities.

Morgan Stanley Capital International (MSCI) EAFE Index is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australasia.

Morgan Stanley Capital International (MSCI) World Index is an unmanaged index of equity securities from developed countries.

S&P 500 Index is an unmanaged index of common stock performance.

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

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

Trustee approval of
management contract

General conclusions

The Board of Trustees of the Putnam funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of your fund’s management contract with Putnam Management and the sub-management contract between Putnam Management’s affiliate, Putnam Investments Limited (“PIL”), and Putnam Management. In this regard, the Board of Trustees, with the assistance of its Contract Committee consisting solely of Trustees who are not “interested persons” (as such term is defined in the Investment Company Act of 1940, as amended) of the Putnam funds (the “Independent Trustees”), requests and evaluates all information it deems reasonably necessary under the circumstances. Over the course of several months ending in June 2006, the Contract Committee met four times to consider the information provided by Putnam Management and other information developed with the assistance of the Board’s independent counsel and independent staff. The Contract Committee reviewed and discussed key aspects of this information with all of the Independent Trustees. Upon completion of this review, the Contract Committee recommended, and the Independent Trustees approved, the continuance of your fund’s management contract and sub-management contract, effective July 1, 2006. (Because PIL is an affiliate of Putnam Management and Putnam Management remains fully responsible for all services provided by PIL, the Trustees have not evaluated PIL as a separate entity, and all subsequent references to Putnam Management below include reference to PIL as necessary or appropriate in the context.)

This approval was based on the following conclusions:

• That the fee schedule in effect for your fund represented reasonable compensation in light of the nature and quality of the services being provided to the fund, the fees paid by competitive funds and the costs incurred by Putnam Management in providing such services, and

• That such fee schedule represented an appropriate sharing between fund shareholders and Putnam Management of such economies of scale as may exist in the management of the fund at current asset levels.

These conclusions were based on a comprehensive consideration of all information provided to the Trustees and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the fee arrangements for your fund and the other Putnam funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that certain aspects of such arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements in prior years.

Management fee schedules and categories; total expenses

The Trustees reviewed the management fee schedules in effect for all Putnam funds, including fee levels and breakpoints, and the assignment of funds to particular fee categories. In reviewing fees and expenses, the Trustees generally focused their attention on material changes in circumstances — for example, changes in a fund’s size or investment style, changes in Putnam Management’s operating costs, or changes in competitive practices in the mutual fund industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not warrant changes to the management fee structure of your fund, which had been carefully developed over the years, re-examined on many occasions and adjusted where appropriate. The Trustees focused on two areas of particular interest, as discussed further below:

• Competitiveness. The Trustees reviewed comparative fee and expense information for competitive funds, which indicated that, in a custom peer group of competitive funds selected by Lipper Inc., your fund ranked in the 24th percentile in management fees and in the 5th percentile in total expenses (less any applicable 12b-1 fees) as of December 31, 2005 (the first percentile being the least expensive funds and the 100th percentile being the most expensive funds). (Because the fund’s custom peer group is smaller than the fund’s broad Lipper Inc. peer group, this expense information may differ from the Lipper peer expense information found elsewhere in this report.) The Trustees noted that expense ratios for a number of Putnam funds, which show the percentage of fund assets used to pay for management and administrative services, distribution (12b-1) fees and other expenses, had been increasing recently as a result of declining net assets and the natural operation of fee breakpoints.

The Trustees noted that the expense ratio increases described above were currently being controlled by expense limitations implemented in January 2004 and which Putnam Management, in consultation with the Contract Committee, has committed to maintain at least through 2007. These expense limitations give effect to a commitment by Putnam Management that the expense ratio of each open-end fund would be no higher than the average expense ratio of the competitive funds included in the fund’s relevant Lipper universe (exclusive of any applicable 12b-1 charges in each case). The Trustees observed that this commitment to limit fund expenses has served shareholders well since its inception. In order to ensure that the expenses of the Putnam funds continue to meet evolving competitive standards, the Trustees requested, and Putnam Management agreed, to implement an additional expense limitation for certain funds for the twelve months beginning January 1, 2007 equal to the average expense ratio (exclusive of 12b-1 charges) of a custom peer group of competitive funds selected by Lipper based on the size of the fund. This additional expense limitation will be applied to those open-end funds that had above-average expense ratios (exclusive of 12b-1 charges) based on the Lipper custom peer group data for the period ended December 31, 2005. This additional expense limitation will not be applied to your fund.

• Economies of scale. Your fund currently has the benefit of breakpoints in its management fee that provide shareholders with significant economies of scale, which means that the effective management fee rate of a fund (as a percentage of fund assets) declines as a fund grows in size and crosses specified asset thresholds. Conversely, as a fund shrinks in size — as has been the case for many Putnam funds in recent years — these breakpoints result in increasing fee levels. In recent years, the Trustees have examined the operation of the existing breakpoint structure during periods of both growth and decline in asset levels. The Trustees concluded that the fee schedules in effect for the funds represented an appropriate sharing of economies of scale at current asset levels. In reaching this conclusion, the Trustees considered the Contract Committee’s stated intent to continue to work with Putnam Management to plan for an eventual resumption in the growth of assets, including a study of potential economies that might be produced under various growth assumptions.

In connection with their review of the management fees and total expenses of the Putnam funds, the Trustees also reviewed the costs of the services to be provided and profits to be realized by Putnam Management and its affiliates from the relationship with the funds. This information included trends in revenues, expenses and profitability of Putnam Management and its affiliates relating to the investment management and distribution services provided to the funds. In this regard, the Trustees also reviewed an analysis of Putnam Management’s revenues, expenses and profitability with respect to the funds’ management contracts, allocated on a fund-by-fund basis. Because many of the costs incurred by Putnam Management in managing the funds are not readily identifiable to particular funds, the Trustees observed that the methodology for allocating costs is an important factor in evaluating Putnam Management’s costs and profitability, both as to the Putnam funds in the aggregate and as to individual funds. The Trustees reviewed Putnam Management’s cost allocation methodology with the assistance of independent consultants and concluded that this methodology was reasonable and well-considered.

Investment performance

The quality of the investment process provided by Putnam Management represented a major factor in the Trustees’ evaluation of the quality of services provided by Putnam Management under your fund’s management contract. The Trustees were assisted in their review of the Putnam funds’ investment process and performance by the work of the Investment Process Committee of the Trustees and the Investment Oversight Committees of the Trustees, which meet on a regular monthly basis with the funds’ portfolio teams throughout the year. The Trustees concluded that Putnam Management generally provides a high-quality investment process — as measured by the experience and skills of the individuals assigned to the management of fund portfolios, the resources made available to such personnel, and in general the ability of Putnam Management to attract and retain high-quality personnel — but also recognize that this does not guarantee favorable investment results for every fund in every time period. The Trustees considered the investment performance of each fund over multiple time periods

and considered information comparing each fund’s performance with various benchmarks and with the performance of competitive funds.

The Trustees noted the satisfactory investment performance of many Putnam funds. They also noted the disappointing investment performance of certain funds in recent years and discussed with senior management of Putnam Management the factors contributing to such underperformance and actions being taken to improve performance. The Trustees recognized that, in recent years, Putnam Management has made significant changes in its investment personnel and processes and in the fund product line to address areas of underperformance. In particular, they noted the important contributions of Putnam Management’s leadership in attracting, retaining and supporting high-quality investment professionals and in systematically implementing an investment process that seeks to merge the best features of fundamental and quantitative analysis. The Trustees indicated their intention to continue to monitor performance trends to assess the effectiveness of these changes and to evaluate whether additional changes to address areas of underperformance are warranted.

In the case of your fund, the Trustees considered that your fund’s class A share cumulative total return performance at net asset value was in the following percentiles of its Lipper Inc. peer group (Lipper Global Large-Cap Core Funds) for the one-, three- and five-year periods ended March 31, 2006 (the first percentile being the best performing funds and the 100th percentile being the worst performing funds):

One-year period	Three-year period	Five-year period

46th	36th	37th

(Because of the passage of time, these performance results may differ from the performance results for more recent periods shown elsewhere in this report. Over the one-, three- and five-year periods ended March 31, 2006, there were 63, 61, and 45 funds, respectively, in your fund’s Lipper peer group.* Past performance is no guarantee of future performance.)

As a general matter, the Trustees concluded that cooperative efforts between the Trustees and Putnam Management represent the most effective way to address investment performance problems. The Trustees noted that investors in the Putnam funds have, in effect, placed their trust in the Putnam organization, under the oversight of the funds’ Trustees, to make appropriate decisions regarding the management of the funds. Based on the responsiveness of Putnam Management in the recent past to Trustee concerns about investment performance, the Trustees

* The percentile rankings for your fund’s class A share annualized total return performance in the Lipper Global Large-Cap Core Funds category for the one-, five- and ten-year periods ended March 31, 2007 were 15%, 31%, and 8%, respectively. Over the one-, five- and ten-year periods ended March 31, 2007, the fund ranked 9 out of 59, 14 out of 45, and 2 out of 26 funds, respectively. Note that this more recent information was not available when the Trustees approved the continuance of your fund’s management contract.

concluded that it is preferable to seek change within Putnam Management to address performance shortcomings. In the Trustees’ view, the alternative of terminating a management contract and engaging a new investment adviser for an underperforming fund would entail significant disruptions and would not provide any greater assurance of improved investment performance.

Brokerage and soft-dollar allocations; other benefits

The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contract with your fund. These include benefits related to brokerage and soft-dollar allocations, whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research services that may be useful to Putnam Management in managing the assets of the fund and of other clients. The Trustees indicated their continued intent to monitor the potential benefits associated with the allocation of fund brokerage to ensure that the principle of seeking “best price and execution” remains paramount in the portfolio trading process.

The Trustees’ annual review of your fund’s management contract also included the review of its distributor’s contract and distribution plan with Putnam Retail Management Limited Partnership and the custodian agreement and investor servicing agreement with Putnam Fiduciary Trust Company, all of which provide benefits to affiliates of Putnam Management.

Comparison of retail and institutional fee schedules

The information examined by the Trustees as part of their annual contract review has included for many years information regarding fees charged by Putnam Management and its affiliates to institutional clients such as defined benefit pension plans, college endowments, etc. This information included comparison of such fees with fees charged to the funds, as well as a detailed assessment of the differences in the services provided to these two types of clients. The Trustees observed, in this regard, that the differences in fee rates between institutional clients and the funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients reflect to a substantial degree historical competitive forces operating in separate market places. The Trustees considered the fact that fee rates across all asset sectors are higher on average for funds than for institutional clients, as well as the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to institutional clients of the firm, but did not rely on such comparisons to any significant extent in concluding that the management fees paid by your fund are reasonable.

Approval of new management and sub-management contracts
in connection with pending change in control

As discussed in the “Message from the Trustees” at the beginning of this shareholder report, on February 1, 2007, Marsh & McLennan Companies, Inc. announced that it had signed a definitive agreement to sell its ownership interest in Putnam Investments Trust, the parent company of Putnam Management and its affiliates, to Great-West Lifeco Inc., a member of the Power Financial Corporation group of companies. In mid-May, shareholders voted overwhelmingly in favor of the proposed transaction. While the transaction is still subject to regulatory approvals and other conditions, it is currently expected to be completed by the middle of 2007.

At an in-person meeting on February 8–9, 2007, the Trustees considered the approval of new management contracts for each Putnam fund proposed to become effective upon the closing of the transaction, and the filing of a preliminary proxy statement. At an in-person meeting on March 8–9, 2007, the Trustees considered the approval of the final forms of the proposed new management contracts for each Putnam fund (and, in the case of your fund, the new sub-management contract) and the proxy statement. They reviewed the terms of the proposed new management contracts and the differences between the proposed new management contracts and the current management contracts. They noted that the terms of the proposed new management contracts were substantially identical to the current management contracts, except for certain changes developed at the initiative of the Trustees and designed largely to address inconsistencies among various of the existing contracts, which had been developed and implemented at different times in the past. They noted, in the case of your fund, that the terms of the proposed new sub-management contract were identical to the current sub-management contract, except for the effective date. In considering the approval of the proposed new management contracts (and, in the case of your fund, the new sub-management contract), the Trustees also considered, as discussed further in the proxy statement, various matters relating to the transaction. Finally, in considering the proposed new management contracts (and, in the case of your fund, the new sub-management contract), the Trustees also took into account their deliberations and conclusions (discussed above in the preceding paragraphs of the “Trustee Approval of Management Contract” section) in connection with the most recent annual approval of the continuance of the Putnam funds’ management contracts effective July 1, 2006, and the extensive materials that they had reviewed in connection with that approval process. Based upon the foregoing considerations, on March 9, 2007, the Trustees, including all of the Independent Trustees, unanimously approved the proposed new management contracts (and, in the case of your fund, the new sub-management contract) and determined to recommend their approval to the shareholders of the Putnam funds.

Other information
for shareholders

Important notice regarding delivery of shareholder documents

In accordance with SEC regulations, Putnam sends a single copy of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2006, are available on the Putnam Individual Investor Web site, www.putnam.com/individual, and on the SEC’s Web site, www.sec.gov. If you have questions about finding forms on the SEC’s Web site, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain the fund’s Forms N-Q on the SEC’s Web site at www.sec.gov. In addition, the fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC’s Web site or the operation of the Public Reference Room.

Financial statements

A guide to financial statements

These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and noninvestment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. 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.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlight table also includes the current reporting period.

The fund’s portfolio 4/30/07 (Unaudited)

COMMON STOCKS (98.8%)*

	Shares		Value

Airlines (2.1%)
Air France-KLM (France)	770,813	$	39,330,447
AMR Corp. † (S)	232,000		6,052,880
			45,383,327

Automotive (4.5%)
Nissan Motor Co., Ltd. (Japan)	2,968,800		29,939,135
Suzuki Motor Corp. (Japan)	2,445,000		69,580,605
			99,519,740

Banking (12.7%)
Bank of America Corp.	1,197,223		60,938,651
Bank of Ireland PLC (Ireland)	500,729		10,803,161
Barclays PLC (United Kingdom)	1,170,164		16,846,664
Credit Agricole SA (France)	1,060,635		44,512,092
KBC Groupe SA (Belgium)	137,900		18,207,210
Royal Bank of Scotland Group PLC (United Kingdom)	1,315,612		50,330,394
Societe Generale (France)	128,185		27,136,269
U.S. Bancorp (S)	337,029		11,576,946
UniCredito Italiano SpA (Italy)	2,714,099		27,825,254
Washington Mutual, Inc. (S)	285,615		11,990,118
			280,166,759

Beverage (0.7%)
InBev NV (Belgium)	190,277		14,817,857

Biotechnology (0.8%)
Biogen Idec, Inc. †	353,300		16,679,293

Building Materials (0.5%)
Sherwin-Williams Co. (The)	182,558		11,641,724

Chemicals (1.4%)
BASF AG (Germany)	263,647		31,293,584


Computers (0.4%)
IBM Corp.	83,200		8,503,872

Conglomerates (2.4%)
Mitsubishi Corp. (Japan)	1,929,600		41,150,150
Vivendi SA (France)	305,230		12,583,143
			53,733,293

Consumer (1.4%)
Matsushita Electric Industrial Co., Ltd. (Japan)	1,205,000		23,284,354
Sony Corp. (Japan)	126,200		6,718,912
			30,003,266

COMMON STOCKS (98.8%)* continued

	Shares		Value

Consumer Finance (1.2%)
Countrywide Financial Corp.	699,100	$	25,922,628

Consumer Goods (2.1%)
Reckitt Benckiser PLC (United Kingdom)	831,354		45,541,792

Electric Utilities (1.2%)
FirstEnergy Corp. (S)	106,100		7,261,484
PG&E Corp.	368,200		18,630,920
			25,892,404

Electronics (1.3%)
Atmel Corp. † (S)	958,000		5,096,560
Hynix Semiconductor, Inc. (South Korea) †	280,340		9,598,815
United Microelectronics Corp. (Taiwan)	23,687,911		13,636,928
			28,332,303

Energy (2.9%)
Grant Prideco, Inc. †	195,100		10,055,454
Petroleum Geo-Services ASA (Norway) †	981,250		26,965,667
SK Corp. (South Korea)	248,610		27,050,258
			64,071,379

Financial (2.1%)
Citigroup, Inc. #	403,340		21,627,091
JPMorgan Chase & Co.	482,300		25,127,830
			46,754,921

Food (2.4%)
Delhaize Group (Belgium)	560,035		53,675,693

Health Care Services (3.9%)
Coventry Health Care, Inc. †	347,000		20,067,010
WellPoint, Inc. †	823,200		65,008,104
			85,075,114

Household Furniture and Appliances (1.1%)
Whirlpool Corp.	222,707		23,613,623

Insurance (4.2%)
Allianz SE (Germany)	282,500		64,096,469
Zurich Financial Services AG (Switzerland)	98,518		28,533,092
			92,629,561

Investment Banking/Brokerage (6.3%)
Bear Stearns Cos., Inc. (The)	103,400		16,099,380
Credit Suisse Group (Switzerland)	510,769		40,149,068
Deutsche Bank AG (Germany)	106,120		16,353,263
Goldman Sachs Group, Inc. (The)	298,700		65,298,807
			137,900,518

COMMON STOCKS (98.8%)* continued

	Shares		Value

Machinery (1.0%)
Hyundai Heavy Industries Co., Ltd. (South Korea)	58,200	$	14,762,607
SMC Corp. (Japan)	56,500		7,208,915
			21,971,522

Manufacturing (1.9%)
Hyundai Mipo Dockyard (South Korea)	69,926		14,107,441
Kawasaki Kisen Kaisha, Ltd. (Japan)	1,567,000		16,924,500
SKF AB Class B (Sweden)	471,920		10,303,835
			41,335,776

Media (2.1%)
Viacom, Inc. Class B †	1,115,200		46,002,000

Metals (7.1%)
Algoma Steel, Inc. (Canada) †	291,800		14,490,014
Boliden AB (Sweden)	805,600		20,112,700
Freeport-McMoRan Copper & Gold, Inc. Class B	56,357		3,784,936
JFE Holdings, Inc. (Japan)	143,600		7,794,737
Salzgitter AG (Germany)	299,830		49,656,777
Teck Cominco, Ltd. Class B (Canada)	547,500		41,514,225
voestalpine AG (Austria)	297,624		20,040,172
			157,393,561

Natural Gas Utilities (0.6%)
Centrica PLC (United Kingdom)	1,814,497		13,976,035


Office Equipment & Supplies (1.9%)
Canon, Inc. (Japan)	760,700		42,511,520

Oil & Gas (7.5%)
Exxon Mobil Corp.	593,956		47,148,227
Marathon Oil Corp.	583,894		59,294,436
Valero Energy Corp.	842,460		59,165,966
			165,608,629

Pharmaceuticals (7.5%)
Johnson & Johnson	946,601		60,790,716
Pfizer, Inc.	1,779,300		47,080,278
Roche Holding AG (Switzerland)	163,234		30,801,405
Watson Pharmaceuticals, Inc. †	936,768		25,573,766
			164,246,165

Regional Bells (2.4%)
Qwest Communications International, Inc. † (S)	2,224,827		19,756,464
Verizon Communications, Inc.	890,600		34,003,108
			53,759,572

Retail (0.7%)
Marks & Spencer Group PLC (United Kingdom)	1,089,000		16,066,000

COMMON STOCKS (98.8%)* continued

		Shares		Value

Schools (0.6%)
Apollo Group, Inc. Class A †		290,600	$	13,745,380

Shipping (2.9%)
Mitsui O.S.K. Lines, Ltd. (Japan)		5,049,000		63,539,318
Neptune Orient Lines, Ltd. (Singapore)		71,000		166,486
				63,705,804

Software (1.8%)
Oracle Corp. †		2,063,900		38,801,320

Technology Services (1.3%)
Accenture, Ltd. Class A (Bermuda)		587,600		22,975,160
Computer Sciences Corp. †		101,700		5,648,418
				28,623,578

Telecommunications (2.8%)
Embarq Corp.		230,295		13,826,912
Sprint Nextel Corp. (S)		2,414,600		48,364,438
				62,191,350

Telephone (1.1%)
China Netcom Group Corp., Ltd. (Hong Kong)		9,547,200		23,538,426

Total common stocks (cost $1,819,601,529)			$	2,174,629,289


SHORT-TERM INVESTMENTS (4.5%)*

		Principal amount/shares		Value

Putnam Prime Money Market Fund (e)		39,386,593	$	39,386,593
Short-term investments held as collateral for loaned
securities with yields ranging from 5.23% to 5.46% and due
dates ranging from May 1, 2007 to June 22, 2007 (d)	$	49,919,865		49,840,610

Total short-term investments (cost $89,227,203)			$	89,227,203


TOTAL INVESTMENTS
Total investments (cost $1,908,828,732)			$	2,263,856,492

* Percentages indicated are based on net assets of $2,201,520,206.

† Non-income-producing security.

# A portion of this security was pledged and segregated with the custodian to cover margin requirements for futures contracts at April 30, 2007.

(d) See Note 1 to the financial statements.

(e) See Note 5 to the financial statements regarding investments in Putnam Prime Money Market Fund.

(S) Securities on loan, in part or in entirety, at April 30, 2007.

At April 30, 2007, liquid assets totaling $19,944,002 have been designated as collateral for open forward contracts and futures contracts.

DIVERSIFICATION BY COUNTRY

Distribution of investments by country of issue at April 30, 2007 (as a percentage of Portfolio Value):

Austria	0.9%
Belgium	3.9
Bermuda	1.0
Canada	2.5
France	5.6
Germany	7.3
Hong Kong	1.1
Ireland	0.5
Italy	1.3
Japan	13.9
Norway	1.2
South Korea	3.0
Sweden	1.4
Switzerland	4.5
Taiwan	0.6
United Kingdom	6.4
United States	44.9

Total	100.0%

FORWARD CURRENCY CONTRACTS TO BUY at 4/30/07 (aggregate face value $492,665,447) (Unaudited)

				Unrealized
		Aggregate	Delivery	appreciation/
	Value	face value	date	(depreciation)

Australian Dollar	$134,704,972	$132,808,117	7/18/07	$1,896,855
British Pound	186,895,031	183,709,131	6/20/07	3,185,900
Canadian Dollar	84,125,879	81,634,346	7/18/07	2,491,533
Euro	50,514,741	49,706,746	6/20/07	807,995
Japanese Yen	447,211	452,415	5/16/07	(5,204)
Norwegian Krone	39,922,620	39,157,973	6/20/07	764,647
Swedish Krona	5,441,838	5,196,719	6/20/07	245,119

Total				$9,386,845

FORWARD CURRENCY CONTRACTS TO SELL at 4/30/07 (aggregate face value $479,028,685) (Unaudited)

				Unrealized
		Aggregate	Delivery	appreciation/
	Value	face value	date	(depreciation)


Australian Dollar	$ 26,644,188	$ 26,721,550	7/18/07	$ 77,362
British Pound	1,463,101	1,412,887	6/20/07	(50,214)
Danish Krone	30,230	29,162	6/20/07	(1,068)
Euro	123,403,254	121,197,215	6/20/07	(2,206,039)
Japanese Yen	245,947,942	246,171,498	5/16/07	223,556
Norwegian Krone	157,035	156,366	6/20/07	(669)
Swedish Krona	23,238,920	22,165,869	6/20/07	(1,073,051)
Swiss Franc	61,639,636	61,174,138	6/20/07	(465,498)

Total				$(3,495,621)

FUTURES CONTRACTS OUTSTANDING at 4/30/07 (Unaudited)

				Unrealized
	Number of		Expiration	appreciation/
	contracts	Value	date	(depreciation)

Dow Jones Euro Stoxx 50 Index (Long)	38	$2,251,513	Jun-07	$238,975
New Financial Times Stock Exchange
100 Index (Long)	18	2,327,253	Jun-07	142,614
S&P 500 Index (Long)	17	6,325,700	Jun-07	(1,339)
Tokyo Price Index (Long)	32	4,550,778	Jun-07	(8,213)

Total				$372,037

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

Statement of assets and liabilities 4/30/07 (Unaudited)

ASSETS

Investment in securities, at value, including $56,832,502 of securities on loan (Note 1):
Unaffiliated issuers (identified cost $1,869,442,139)	$ 2,224,469,899
Affiliated issuers (identified cost $39,386,593) (Note 5)	39,386,593

Cash	588,649

Foreign currency (cost $3,905,499) (Note 1)	3,929,852

Dividends, interest and other receivables	5,949,383

Receivable for shares of the fund sold	662,973

Receivable for securities sold	6,738,759

Receivable for variation margin (Note 1)	35,791

Receivable for open forward currency contracts (Note 1)	10,343,176

Receivable for closed forward currency contracts (Note 1)	3,071,671

Foreign tax reclaim	1,242,450

Total assets	2,296,419,196


LIABILITIES

Payable for securities purchased	25,258,060

Payable for shares of the fund repurchased	4,016,122

Payable for compensation of Manager (Notes 2 and 5)	3,532,535

Payable for investor servicing and custodian fees (Note 2)	482,455

Payable for Trustee compensation and expenses (Note 2)	496,751

Payable for administrative services (Note 2)	8,200

Payable for distribution fees (Note 2)	650,786

Payable for open forward currency contracts (Note 1)	4,451,952

Payable for closed forward currency contracts (Note 1)	5,831,518

Collateral on securities loaned, at value (Note 1)	49,840,610

Other accrued expenses	330,001

Total liabilities	94,898,990

Net assets	$ 2,201,520,206


REPRESENTED BY

Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)	$ 3,416,394,839

Distributions in excess of net investment income (Note 1)	(2,171,853)

Accumulated net realized loss on investments
and foreign currency transactions (Note 1)	(1,574,129,923)

Net unrealized appreciation of investments
and assets and liabilities in foreign currencies	361,427,143

Total — Representing net assets applicable to capital shares outstanding	$ 2,201,520,206

(Continued on next page)

Statement of assets and liabilities (Continued)

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE

Net asset value and redemption price per class A share
($1,821,127,095 divided by 151,877,640 shares)	$11.99

Offering price per class A share
(100/94.75 of $11.99)*	$12.65

Net asset value and offering price per class B share
($280,742,896 divided by 25,685,458 shares)**	$10.93

Net asset value and offering price per class C share
($34,710,473 divided by 3,014,293 shares)**	$11.52

Net asset value and redemption price per class M share
($33,013,804 divided by 2,851,971 shares)	$11.58

Offering price per class M share
(100/96.75 of $11.58)*	$11.97

Net asset value, offering price and redemption price per class R share
($1,454,738 divided by 122,180 shares)	$11.91

Net asset value, offering price and redemption price per class Y share
($30,471,200 divided by 2,466,388 shares)	$12.35

* 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.

Statement of operations Six months ended 4/30/07 (Unaudited)

INVESTMENT INCOME

Dividends (net of foreign tax of $941,968)	$ 18,541,163

Interest (including interest income of $769,486
from investments in affiliated issuers) (Note 5)	906,038

Securities lending	35,893

Total investment income	19,483,094


EXPENSES

Compensation of Manager (Note 2)	7,146,532

Investor servicing fees (Note 2)	2,833,025

Custodian fees (Note 2)	566,038

Trustee compensation and expenses (Note 2)	34,411

Administrative services (Note 2)	26,430

Distribution fees — Class A (Note 2)	2,140,005

Distribution fees — Class B (Note 2)	1,440,276

Distribution fees — Class C (Note 2)	163,698

Distribution fees — Class M (Note 2)	117,775

Distribution fees — Class R (Note 2)	3,166

Other	210,546

Fees waived and reimbursed by Manager (Note 5)	(13,240)

Total expenses	14,668,662

Expense reduction (Note 2)	(531,376)

Net expenses	14,137,286

Net investment income	5,345,808

Net realized gain on investments (Notes 1 and 3)	142,038,025

Net realized gain on futures contracts (Note 1)	886,198

Net realized gain on foreign currency transactions (Note 1)	18,879,497

Net unrealized depreciation of assets and liabilities in foreign currencies during the period	(984,403)

Net unrealized appreciation of investments and futures contracts during the period	119,385,178

Net gain on investments	280,204,495

Net increase in net assets resulting from operations	$285,550,303

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

Statement of changes in net assets

INCREASE (DECREASE) IN NET ASSETS

	Six months ended	Year ended
	4/30/07*	10/31/06

Operations:
Net investment income	$ 5,345,808	$ 19,977,557

Net realized gain on investments
and foreign currency transactions	161,803,720	361,873,580

Net unrealized appreciation of investments
and assets and liabilities in foreign currencies	118,400,775	71,657,782

Net increase in net assets resulting from operations	285,550,303	453,508,919

Distributions to shareholders: (Note 1)

From ordinary income

Net investment income

Class A	(27,017,872)	(15,884,826)

Class B	(2,853,688)	(171,492)

Class C	(314,261)	(25,309)

Class M	(365,410)	(106,307)

Class R	(17,862)	(2,177)

Class Y	(486,434)	(253,485)

Redemption fees (Note 1)	11,929	22,492

Decrease from capital share transactions (Note 4)	(106,164,403)	(720,353,257)

Total increase (decrease) in net assets	148,342,302	(283,265,442)


NET ASSETS

Beginning of period	2,053,177,904	2,336,443,346

End of period (including distributions in excess of net
investment income of $2,171,853 and undistributed
net investment income of $23,537,866, respectively)	$2,201,520,206	$2,053,177,904

* Unaudited

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

This page left blank intentionally.

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

INVESTMENT OPERATIONS:					LESS DISTRIBUTIONS:						RATIOS AND SUPPLEMENTAL DATA:

			Net							Total			Ratio of net
	Net asset		realized and	Total	From				Net asset	return	Net	Ratio of	investment
	value,	Net	unrealized	from	net	From			value,	at net	assets,	expenses to	income (loss)	Portfolio
	beginning	investment	gain (loss)on	investment	investment	return of	Total	Redemption	end	asset	end of period	average net	to average	turnover
Period ended	of period	income (loss)^(a)	investments	operations	income	capital	distributions	fees	of period	value (%)^(b)	(in thousands)	assets (%)^(c)	net assets (%)	(%)

CLASS A
April 30, 2007^**	$10.64	.04^(d)	1.49	1.53	(.18)	—	(.18)	—^(e)	$11.99	14.48^*	$1,821,127	.64^*(d)	.31^*(d)	38.45^*
October 31, 2006	8.76	.10^(d,f)	1.86	1.96	(.08)	—	(.08)	—^(e)	10.64	22.46	1,666,331	1.23^(d,f)	1.02^(d,f)	87.79
October 31, 2005	7.73	.09^(d,g)	.96	1.05	(.02)	—	(.02)	—^(e)	8.76	13.60^(g)	1,895,204	1.26^(d)	1.01^(d,g)	82.06
October 31, 2004	7.20	.03^(d)	.66	.69	(.16)	—	(.16)	—^(e)	7.73	9.67	1,919,183	1.25^(d)	.46^(d)	76.70
October 31, 2003	5.94	.06	1.22	1.28	(.02)	—	(.02)	—^(e)	7.20	21.56	2,453,151	1.25	.92	81.86
October 31, 2002^‡††	7.01	.02	(1.05)	(1.03)	(.04)	—	(.04)	—	5.94	(14.72)^*	2,415,850	.90^*	.29^*	91.14^*(h)
February 28, 2002	8.62	.03	(1.62)	(1.59)	(.01)	(.01)	(.02)	—	7.01	(18.44)	579,544	1.25	.37	102.99


CLASS B
April 30, 2007^**	$9.67	(.01)^(d)	1.37	1.36	(.10)	—	(.10)	—^(e)	$10.93	14.11^*	$280,743	1.01^*(d)	(.07)^*(d)	38.45^*
October 31, 2006	7.96	.02^(d,f)	1.69	1.71	—^(e)	—	—^(e)	—^(e)	9.67	21.54	296,523	1.98^(d,f)	.24^(d,f)	87.79
October 31, 2005	7.06	.02^(d,g)	.88	.90	—	—	—	—^(e)	7.96	12.75^(g)	353,745	2.01^(d)	.31^(d,g)	82.06
October 31, 2004	6.60	(.02)^(d)	.59	.57	(.11)	—	(.11)	—^(e)	7.06	8.67	464,644	2.00^(d)	(.29)^(d)	76.70
October 31, 2003	5.46	.01	1.13	1.14	—	—	—	—^(e)	6.60	20.88	579,873	2.00	.17	81.86
October 31, 2002^‡††	6.44	(.01)	(.97)	(.98)	—	—	—	—	5.46	(15.20)^*	574,021	1.40^*	(.12)^*	91.14^*(h)
February 28, 2002	7.95	(.02)	(1.49)	(1.51)	—	—	—	—	6.44	(19.01)	286,836	1.98	(.32)	102.99


CLASS C
April 30, 2007^**	$10.19	(.01)^(d)	1.44	1.43	(.10)	—	(.10)	—^(e)	$11.52	14.14^*	$34,710	1.01^*(d)	(.06)^*(d)	38.45^*
October 31, 2006	8.39	.02^(d,f)	1.79	1.81	(.01)	—	(.01)	—^(e)	10.19	21.55	31,684	1.98^(d,f)	.25^(d,f)	87.79
October 31, 2005	7.44	.02^(d,g)	.93	.95	—	—	—	—^(e)	8.39	12.77^(g)	31,135	2.01^(d)	.28^(d,g)	82.06
October 31, 2004	6.94	(.02)^(d)	.62	.60	(.10)	—	(.10)	—^(e)	7.44	8.68	34,105	2.00^(d)	(.29)^(d)	76.70
October 31, 2003	5.75	.01	1.18	1.19	—	—	—	—^(e)	6.94	20.70	46,663	2.00	.16	81.86
October 31, 2002^‡††	6.77	(.01)	(1.01)	(1.02)	—	—	—	—	5.75	(15.08)^*	49,207	1.40^*	(.09)^*	91.14^*(h)
February 28, 2002	8.37	(.03)	(1.57)	(1.60)	—	—	—	—	6.77	(19.06)	29,088	1.98	(.33)	102.99


CLASS M
April 30, 2007^**	$10.25	.01^(d)	1.44	1.45	(.12)	—	(.12)	—^(e)	$11.58	14.29^*	$33,014	.88^*(d)	.06^*(d)	38.45^*
October 31, 2006	8.44	.05^(d,f)	1.79	1.84	(.03)	—	(.03)	—^(e)	10.25	21.84	30,816	1.73^(d,f)	.50^(d,f)	87.79
October 31, 2005	7.47	.04^(d,g)	.93	.97	—	—	—	—^(e)	8.44	12.99^(g)	31,938	1.76^(d)	.52^(d,g)	82.06
October 31, 2004	6.97	—^(d,e)	.62	.62	(.12)	—	(.12)	—^(e)	7.47	8.98	34,708	1.75^(d)	(.04)^(d)	76.70
October 31, 2003	5.75	.03	1.19	1.22	—	—	—	—^(e)	6.97	21.22	44,070	1.75	.41	81.86
October 31, 2002^‡††	6.78	—^(e)	(1.02)	(1.02)	(.01)	—	(.01)	—	5.75	(15.04)^*	46,210	1.24^*	.10^*	91.14^*(h)
February 28, 2002	8.35	(.01)	(1.56)	(1.57)	—	—	—	—	6.78	(18.80)	32,641	1.73	(.08)	102.99


CLASS R
April 30, 2007^**	$10.57	.02^(d)	1.49	1.51	(.17)	—	(.17)	—^(e)	$11.91	14.40^*	$1,455	.76^*(d)	.20^*(d)	38.45^*
October 31, 2006	8.72	.08^(d,f)	1.84	1.92	(.07)	—	(.07)	—^(e)	10.57	22.11	1,144	1.48^(d,f)	.82^(d,f)	87.79
October 31, 2005	7.71	.04^(d,g)	1.00	1.04	(.03)	—	(.03)	—^(e)	8.72	13.48^(g)	271	1.51^(d)	.51^(d,g)	82.06
October 31, 2004	7.19	.01^(d)	.65	.66	(.14)	—	(.14)	—^(e)	7.71	9.35	57	1.50^(d)	.18^(d)	76.70
October 31, 2003^†	6.03	.03	1.13	1.16	—	—	—	—^(e)	7.19	19.24^*	1	1.17^*	.52^*	81.86


CLASS Y
April 30, 2007^**	$10.97	.05^(d)	1.53	1.58	(.20)	—	(.20)	—^(e)	$12.35	14.61^*	$30,471	.51^*(d)	.44^*(d)	38.45^*
October 31, 2006	9.03	.12^(d,f)	1.92	2.04	(.10)	—	(.10)	—^(e)	10.97	22.75	26,681	.98^(d,f)	1.25^(d,f)	87.79
October 31, 2005	7.97	.11^(d,g)	.99	1.10	(.04)	—	(.04)	—^(e)	9.03	13.85^(g)	24,149	1.01^(d)	1.31^(d,g)	82.06
October 31, 2004	7.42	.05^(d)	.68	.73	(.18)	—	(.18)	—^(e)	7.97	9.93	30,161	1.00^(d)	.70^(d)	76.70
October 31, 2003	6.12	.06	1.27	1.33	(.03)	—	(.03)	—^(e)	7.42	21.90	46,042	1.00	1.18	81.86
October 31, 2002^‡‡††	5.89	—^(e)	.23	.23	—	—	—	—	6.12	3.90^*	144,718	.12^*	.03^*	91.14^*(h)

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

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

Financial highlights (Continued)

* Not annualized.

** Unaudited.

‡ For the period March 1, 2002 to October 31, 2002. The fund changed its fiscal year end from February 28 to October 31.

‡‡ For the period September 23, 2002 to October 31, 2002.

† For the period January 21, 2003 (commencement of operations) to October 31, 2003.

†† On September 23, 2002, Putnam Global Growth Fund acquired the net assets of both Putnam Global Equity Fund and Putnam Global Growth and Income Fund. Putnam Global Growth Fund was the legal survivor and Putnam Global Equity Fund was the accounting and performance survivor in this transaction. In addition, on October 1, 2002, the merged fund changed its name from Putnam Global Growth Fund to Putnam Global Equity Fund. The financial highlights for class A, B, C and M shares for the periods prior to October 31, 2002 are those of the former Putnam Global Equity Fund, which have been restated to give effect for this transaction. The former Putnam Global Equity Fund did not have any class Y shares outstanding.

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

(b) Total return assumes dividend reinvestment and does not reflect the effect of sales charges.

(d) Reflects an involuntary contractual expense limitation and waivers of certain fund expenses in connection with investments in Putnam Prime Money Market Fund in effect during the period. As a result of such limitation and waivers, the expenses of each class reflect a reduction of the following amounts (Notes 2 and 5):

	Percentage
	of average
	net assets

April 30, 2007	<0.01%

October 31, 2006	<0.01

October 31, 2005	<0.01

October 31, 2004	0.03

(e) Amount represents less than $0.01 per share.

(f) Reflects a non-recurring reimbursement from Putnam Investments relating to the calculation of certain amounts paid by the fund to Putnam in previous years for transfer agent services, which amounted to less than $0.01 per share and 0.05% of average net assets for the period ended October 31, 2006.

(g) Reflects a non-recurring accrual related to Putnam Management’s settlement with the SEC regarding brokerage allocation practices, which amounted to the following amounts:

		Percentage
		of average
	Per share	net assets

Class A	$0.01	0.07%

Class B	0.01	0.07

Class C	0.01	0.07

Class M	0.01	0.07

Class R	0.01	0.06

Class Y	0.01	0.08

(h) Portfolio turnover excludes the impact of assets received from the merger of Putnam Global Growth and Income Fund and the former Putnam Global Equity Fund.

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

Notes to financial statements 4/30/07 (Unaudited)

Note 1: Significant accounting policies

Putnam Global Equity Fund (the “fund”), a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The fund seeks capital appreciation by investing primarily in common stocks issued by large and midsize companies worldwide that Putnam Investment Management, LLC (“Putnam Management”), the fund’s manager, an indirect wholly-owned subsidiary of Putnam, LLC, believes have favorable investment potential.

The fund offers class A, class B, class C, class M, class R and class Y shares. Class A and class M shares are sold with a maximum front-end sales charge of 5.25% and 3.25%, respectively, and generally do not pay a contingent deferred sales charge. Class B shares, which convert to class A shares after approximately eight years, do not pay a front-end sales charge and are subject to a contingent deferred sales charge, if those shares are redeemed within six years of purchase. Class C shares have a one-year 1.00% contingent deferred sales charge and do not convert to class A shares. Class R shares, which are offered to qualified employee-benefit plans, are sold without a front-end sales charge or a contingent deferred sales charge. The expenses for class A, class B, class C, class M and class R shares may differ based on the distribution fee of each class, which is identified in Note 2. Class Y shares, which are sold at net asset value, are generally subject to the same expenses as class A, class B, class C, class M and class R shares, but do not bear a distribution fee. Class Y shares are sold to certain eligible purchasers including certain defined contribution plans (including corporate IRAs), bank trust departments and trust companies.

Effective October 2, 2006, a 1.00% redemption fee may apply on any shares purchased on or after such date that are redeemed (either by selling or exchanging into another fund) within 90 days of purchase. The redemption fee is accounted for as an addition to paid-in-capital. Prior to October 2, 2006, a 2.00% redemption fee applied to any shares that were redeemed (either by selling or exchanging into another fund) within 5 days of purchase. A 1.00% redemption fee applied to any shares that were redeemed (either by selling or exchanging into another fund) within 6–90 days of purchase.

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.

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 expects the risk of material loss to be remote.

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 during the reporting period. Actual results could differ from those estimates.

A) Security valuation 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. If no sales are reported — as in the case of some securities traded over-the-counter — a security is valued at its last reported bid price. Many securities markets and exchanges outside the U.S. close prior to the 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 close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors, including movements in the U.S. securities markets. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. At April 30, 2007, fair value pricing was used for certain foreign securities in the portfolio. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. Certain investments, including certain restricted securities, are also valued at fair value following procedures approved by the Trustees. 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 at a given point in time and does not reflect an actual market price, which may be different by a material amount.

B) Joint trading account Pursuant to an exemptive order from the Securities and Exchange Commission (the “SEC”), the fund may transfer uninvested cash balances, including cash collateral received under security lending arrangements, into a joint trading account along with the cash of other registered investment companies and certain other accounts managed by Putnam Management. These balances may be invested in issues of high-grade short-term investments having maturities of up to 397 days for collateral received under security lending arrangements and up to 90 days for other cash investments.

C) Repurchase agreements The fund, or any joint trading account, through its custodian, receives delivery of the underlying securities, the market value of which at the time of purchase is required to be in an amount at least equal to the resale price, including accrued interest. Collateral for certain tri-party repurchase agreements is held at the counterparty’s custodian in a segregated account for the benefit of the fund and the counterparty. Putnam Management is responsible for determining that the value of these underlying securities is at all times at least equal to the resale price, including accrued interest.

D) 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 is recorded on the accrual basis. Dividend income, net of 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 market 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.

E) Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The market value of foreign securities, currency holdings, and other assets and liabilities are recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when earned or incurred. The fund does not isolate that portion of realized or unrealized gains or losses resulting from changes in the foreign exchange rate on investments from fluctuations arising from

changes in the market prices of the securities. Such gains and losses are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net realized exchange gains or losses on closed forward currency contracts, 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 open forward currency contracts and assets and liabilities other than investments at the period end, resulting from changes in the exchange rate. Investments in foreign securities involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations, not present with domestic investments.

F) Forward currency contracts The fund may buy and sell 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 to protect against a decline in value relative to the U.S. dollar of the currencies in which its portfolio securities are denominated or quoted (or an increase in the value of a currency in which securities a fund intends to buy are denominated, when a fund holds cash reserves and short term investments), or for other investment purposes. The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in market value is recorded as an unrealized gain or loss. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. 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.

G) Futures and options contracts The fund may use futures and options contracts to hedge against changes in the values of securities the fund owns or expects to purchase, or for other investment purposes. The fund may also write options on swaps or securities it owns or in which it may invest to increase its current returns.

The potential risk to the fund is that the change in value of futures and 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, or if the counterparty to the contract is unable to perform. Risks may exceed amounts recognized on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. 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.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin.” 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. Options traded over-the-counter are valued using prices supplied by dealers. Futures and written option contracts outstanding at period end, if any, are listed after the fund’s portfolio.

H) Securities lending The fund may lend securities, through its agents, to qualified borrowers in order to earn additional income. The loans are collateralized by cash and/or securities in an amount at least equal to the market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agents; the fund will bear the risk of loss with respect to the investment of the cash collateral. Income from securities lending is included in investment income on the statement of operations. At April 30, 2007, the value of securities loaned amounted to $56,832,502. The fund received cash collateral of $49,840,610 which is pooled with collateral of other Putnam funds into 35 issues of high grade short-term investments. The fund also received $9,727,200 in non-cash collateral.

I) Federal taxes It is the policy of the fund to distribute all of its taxable income within the prescribed time and otherwise comply with the provisions of the Internal Revenue Code of 1986 (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, as amended. Therefore, 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.

At October 31, 2006, the fund had a capital loss carryover of $1,735,914,660 available to the extent allowed by the Code to offset future net capital gain, if any. The amount of the carryover and the expiration dates are:

Loss Carryover	Expiration

$ 62,989,606	October 31, 2008

988,886,988	October 31, 2009

652,543,262	October 31, 2010

31,494,804	October 31, 2011

The aggregate identified cost on a tax basis is $1,908,954,146, resulting in gross unrealized appreciation and depreciation of $384,175,910 and $29,273,564, respectively, or net unrealized appreciation of $354,902,346.

J) Distributions to shareholders Distributions to shareholders from net investment income are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. 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

Putnam Management is paid for management and investment advisory services quarterly based on the average net assets of the fund. Such fee is based on the following annual rates: 0.80% of the first $500 million of average net assets, 0.70% of the next $500 million, 0.65% of the next $500 million, 0.60% of the next $5 billion, 0.575% of the next $5 billion, 0.555% of the next $5 billion, 0.54% of the next $5 billion, 0.53% of the next $5 billion, 0.52% of the next $5 billion, 0.51% of the next $5 billion, 0.50% of the next $5 billion, 0.49%

of the next $5 billion, 0.48% of the next $8.5 billion and 0.47% thereafter.

Putnam Management has agreed to waive fees and reimburse expenses of the fund through October 31, 2007 to the extent necessary to ensure that the fund’s expenses do not exceed the simple average of the expenses of all front-end load funds viewed by Lipper Inc. as having the same investment classification or objective as the fund. The expense reimbursement is based on a comparison of the fund’s expenses with the average annualized operating expenses of the funds in its Lipper peer group for each calendar quarter during the fund’s last fiscal year, excluding 12b-1 fees and without giving effect to any expense offset and brokerage service arrangements that may reduce fund expenses. For the period ended April 30, 2007, Putnam Management did not waive any of its management fee from the fund.

Putnam Investments Limited (“PIL”), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. Putnam Management pays a quarterly sub-management fee to PIL for its services at an annual rate of 0.35% of the average net assets of the portion of the fund managed by PIL.

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

Custodial functions for the fund’s assets were provided by Putnam Fiduciary Trust Company (“PFTC”), a subsidiary of Putnam, LLC, and by State Street Bank and Trust Company. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes. Putnam Investor Services, a division of PFTC, provided investor servicing agent functions to the fund. Putnam Investor Services received fees for investor servicing based on the number of shareholder accounts in the fund and the level of defined contribution plan assets in the fund. During the period ended April 30, 2007, the fund incurred $3,375,373 for custody and investor servicing agent functions provided by PFTC.

The fund has entered into arrangements with PFTC and State Street Bank and Trust Company whereby PFTC’s and State Street Bank and Trust Company’s fees are reduced by credits allowed on cash balances. The fund also reduced expenses through brokerage service arrangements. For the six months ended April 30, 2007, the fund’s expenses were reduced by $531,376 under these arrangements.

Each independent Trustee of the fund receives an annual Trustee fee, of which $657, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees receive additional fees for attendance at certain committee meetings, industry seminars and for certain compliance-related matters. Trustees also are reimbursed for expenses they incur relating to their services as Trustees. George Putnam, III, who was not an independent Trustee during the period, also receives the foregoing fees for his services as Trustee.

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

The fund has adopted an unfunded noncontributory defined benefit pension plan (the “Pension Plan”) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund

is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.

The fund has adopted distribution plans (the “Plans”) with respect to its class A, class B, class C, class M and class R shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Retail Management, a wholly-owned subsidiary of Putnam, LLC and Putnam Retail Management GP, Inc., for services provided and expenses incurred in distributing shares of the fund. The Plans provide for payments by the fund to Putnam Retail Management at an annual rate of up to 0.35%, 1.00%, 1.00%, 1.00% and 1.00% of the average net assets attributable to class A, class B, class C, class M and class R shares, respectively. The Trustees have approved payment by the fund at an annual rate of 0.25%, 1.00%, 1.00%, 0.75% and 0.50% of the average net assets attributable to class A, class B, class C, class M and class R shares, respectively.

For the six months ended April 30, 2007, Putnam Retail Management, acting as underwriter, received net commissions of $34,076 and $846 from the sale of class A and class M shares, respectively, and received $77,125 and $379 in contingent deferred sales charges from redemptions of class B and class C shares, respectively.

A deferred sales charge of up to 1.00% and 0.65% is assessed on certain redemptions of class A and class M shares, respectively. For the six months ended April 30, 2007, Putnam Retail Management, acting as underwriter, received $2,152 and no monies on class A and class M redemptions, respectively.

Note 3: Purchases and sales of securities

During the six months ended April 30, 2007, cost of purchases and proceeds from sales of investment securities other than short-term investments aggregated $797,396,253 and $890,380,661, respectively. There were no purchases or sales of U.S. government securities.

Note 4: Capital shares

At April 30, 2007, there was an unlimited number of shares of beneficial interest authorized. In certain circumstances shares may be purchased or redeemed through the delivery to the fund or receipt by the shareholders, respectively, of securities, the fair value of which is used to determine the number of shares issued or redeemed. Transactions in capital shares were as follows:

CLASS A	Shares	Amount

Six months ended 4/30/07:
Shares sold	8,513,119	$ 95,813,314

Shares issued
in connection
with reinvestment
of distributions	2,300,037	25,346,343

	10,813,156	121,159,657

Shares
repurchased	(15,569,244)	(174,080,852)

Net decrease	(4,756,088)	$ (52,921,195)

Year ended 10/31/06:
Shares sold	16,516,974	$ 160,011,896

Shares issued
in connection
with reinvestment
of distributions	1,653,538	15,129,876

	18,170,512	175,141,772

Shares
repurchased	(41,324,941)	(398,971,863)

Redemptions
in kind	(36,642,575)	(360,562,936)

Net decrease	(59,797,004)	$(584,393,027)

CLASS B	Shares	Amount

Six months ended 4/30/07:
Shares sold	1,180,711	$ 12,072,069

Shares issued
in connection
with reinvestment
of distributions	269,802	2,716,908

	1,450,513	14,788,977

Shares
repurchased	(6,416,813)	(65,956,262)

Net decrease	(4,966,300)	$ (51,167,285)

Year ended 10/31/06:
Shares sold	2,285,128	$ 20,179,250

Shares issued
in connection
with reinvestment
of distributions	19,446	162,759

	2,304,574	20,342,009

Shares
repurchased	(16,081,779)	(141,859,884)

Net decrease	(13,777,205)	$(121,517,875)


CLASS C	Shares	Amount

Six months ended 4/30/07:
Shares sold	177,887	$ 1,917,481

Shares issued
in connection
with reinvestment
of distributions	26,901	285,423

	204,788	2,202,904

Shares
repurchased	(298,781)	(3,218,125)

Net decrease	(93,993)	$(1,015,221)

Year ended 10/31/06:
Shares sold	293,523	$ 2,760,726

Shares issued
in connection
with reinvestment
of distributions	2,651	23,385

	296,174	2,784,111

Shares
repurchased	(898,063)	(8,331,820)

Net decrease	(601,889)	$(5,547,709)

CLASS M	Shares	Amount

Six months ended 4/30/07:
Shares sold	150,502	$ 1,627,342

Shares issued
in connection
with reinvestment
of distributions	32,952	351,270

	183,454	1,978,612

Shares
repurchased	(336,749)	(3,640,437)

Net decrease	(153,295)	$ (1,661,825)

Year ended 10/31/06:
Shares sold	288,749	$ 2,724,007

Shares issued
in connection
with reinvestment
of distributions	11,591	102,583

	300,340	2,826,590

Shares
repurchased	(1,078,577)	(10,108,844)

Net decrease	(778,237)	$ (7,282,254)


CLASS R	Shares	Amount
Six months ended 4/30/07:
Shares sold	24,163	$ 265,321

Shares issued
in connection
with reinvestment
of distributions	1,562	17,107

	25,725	282,428

Shares
repurchased	(11,716)	(126,812)

Net increase	14,009	$ 155,616

Year ended 10/31/06:
Shares sold	84,916	$ 816,680

Shares issued
in connection
with reinvestment
of distributions	239	2,177

	85,155	818,857

Shares
repurchased	(8,059)	(78,624)

Net increase	77,096	$ 740,233

CLASS Y	Shares	Amount

Six months ended 4/30/07:
Shares sold	260,751	$ 3,036,131

Shares issued
in connection
with reinvestment
of distributions	42,807	485,429

	303,558	3,521,560

Shares
repurchased	(269,019)	(3,076,053)

Net increase	34,539	$ 445,507

Year ended 10/31/06:
Shares sold	207,662	$ 2,070,271

Shares issued
in connection
with reinvestment
of distributions	26,877	252,909

	234,539	2,323,180

Shares
repurchased	(477,321)	(4,675,805)

Net decrease	(242,782)	$(2,352,625)

Note 5: Investment in Putnam Prime Money Market Fund

The fund invests in Putnam Prime Money Market Fund, an open-end management investment company managed by Putnam Management. Investments in Putnam Prime Money Market Fund are valued at its closing net asset value each business day. Management fees paid by the fund are reduced by an amount equal to the management and administrative services fees paid by Putnam Prime Money Market Fund with respect to assets invested by the fund in Putnam Prime Money Market Fund. For the period ended April 30, 2007, management fees paid were reduced by $13,240 relating to the fund’s investment in Putnam Prime Money Market Fund. Income distributions earned by the fund are recorded as income in the Statement of operations and totaled $769,486 for the period ended April 30, 2007. During the period ended April 30, 2007, cost of purchases and proceeds of sales of investments in Putnam Prime Money Market Fund aggregated $297,018,820 and $297,570,720, respectively.

Note 6: Regulatory matters and litigation

In late 2003 and 2004, Putnam Management settled charges brought by the SEC and the Massachusetts Securities Division (“MSD”) in connection with excessive short-term trading by certain former Putnam employees and, in the case of charges brought by the MSD, excessive short-term trading by participants in some Putnam-administered 401(k) plans. Putnam Management agreed to pay $193.5 million in penalties and restitution, of which $153.5 million will be distributed to certain open-end Putnam funds and their shareholders after the SEC and MSD approve a distribution plan being developed by an independent consultant. The allegations of the SEC and MSD and related matters have served as the general basis for certain lawsuits, including purported class action lawsuits filed against Putnam Management and, in a limited number of cases, against some Putnam funds. Putnam Management believes that these lawsuits will have no material adverse effect on the funds or on Putnam Management’s ability to provide investment management services. In addition, Putnam Management has agreed to bear any costs incurred by the Putnam funds as a result of these matters.

Putnam Management and Putnam Retail Management are named as defendants in a civil suit in which the plaintiffs allege that the management and distribution fees paid by certain Putnam funds were excessive and seek recovery under the Investment Company Act of 1940. Putnam Management and Putnam Retail Management have contested the plaintiffs’ claims and the matter is currently pending in the U.S. District Court for the District of Massachusetts. Based on currently available information, Putnam Management believes that this action is without merit and that it is unlikely to have a material effect on Putnam Management’s and Putnam Retail Management’s ability to provide services to their clients, including the fund.

Note 7: New accounting pronouncements

In June 2006, the Financial Accounting Standards Board (“FASB”) issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes (the “Interpretation”). The Interpretation prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken by a filer in the filer’s tax return. The Interpretation will become effective for fiscal years beginning after December 15, 2006 but will also apply to tax positions reflected in the fund’s financial statements as of that date. No determination has been made whether the adoption of the Interpretation will require the fund to make any adjustments to its net assets or have any other effect on the fund’s financial statements. The effects of implementing this pronouncement, if any, will be noted in the fund’s next semiannual financial statements.

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (the “Standard”). The Standard defines fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. The Standard applies to fair value measurements already required or permitted by existing standards. The Standard is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Putnam Management is currently evaluating what impact the adoption of the Standard will have on the fund’s financial statements.

Brokerage commissions
(Unaudited)

Brokerage commissions are paid to firms that execute trades on behalf of your fund. When choosing these firms, Putnam is required by law to seek the best execution of the trades, taking all relevant factors into consideration, including expected quality of execution and commission rate. Listed below are the largest relationships based upon brokerage commissions for your fund and the other funds in Putnam’s International group for the year ended April 30, 2007. The other Putnam mutual funds in this group are Putnam Europe Equity Fund, Putnam International Capital Opportunities Fund, Putnam International Equity Fund, Putnam International Growth and Income Fund, Putnam International New Opportunities Fund, Putnam VT Global Equity Fund, Putnam VT International Equity Fund, Putnam VT International Growth and Income Fund, and Putnam VT International New Opportunities Fund.

The top five firms that received brokerage commissions for trades executed for the International group are (in descending order) Credit Suisse First Boston, Goldman Sachs, Citigroup Global Markets, UBS Warburg, and Merrill Lynch. Commissions paid to these firms together represented approximately 54% of the total brokerage commissions paid for the year ended April 30, 2007.

Commissions paid to the next 10 firms together represented approximately 30% of the total brokerage commissions paid during the period. These firms are (in alphabetical order) ABN AMRO U.S., Deutsche Bank Securities, Dresdner Kleinwort Wasserstein, Handelsbanken, HSBCS, Inc., JPMorgan Clearing, Lehman Brothers, Macquarie, Morgan Stanley Dean Witter, and Sanford Bernstein.

Additional information about brokerage commissions is available on the Securities and Exchange Commission (SEC) Web site at www.sec.gov. Putnam funds disclose commissions by firm to the SEC in semiannual filings on Form N-SAR.

Putnam puts your interests first

In January 2004, Putnam began introducing a number of voluntary initiatives designed to reduce fund expenses, provide investors with more useful information, and help safeguard the interests of all Putnam investors. Visit www.putnam.com for details.

Cost-cutting initiatives

Reduced sales charges The maximum sales charge for class A shares has been reduced to 5.25% for equity funds (formerly 5.75%) and 3.75% for most income funds (formerly 4.50%) . The maximum sales charge for class M shares has been reduced to 3.25% for equity funds (formerly 3.50%) .*

Lower class B purchase limit To help ensure that investors are in the most cost-effective share class, the maximum amount that can be invested in class B shares has been reduced to $100,000. (Larger trades or accumulated amounts will be refused.)

Ongoing expenses will be limited Through calendar 2007, total ongoing expenses, including management fees for all funds, will be maintained at or below the average of each fund’s industry peers in its Lipper load-fund universe. For more information, please see the Statement of Additional information.

Improved disclosure

Putnam fund prospectuses and shareholder reports have been revised to disclose additional information that will help shareholders compare funds and weigh their costs and risks along with their potential benefits. Shareholders will find easy-to-understand information about fund expense ratios, portfolio manager compensation, risk comparisons, turnover comparisons, brokerage commissions, and employee and trustee ownership of Putnam funds. Disclosure of breakpoint discounts has also been enhanced to alert investors to potential cost savings.

Protecting investors’ interests

Short-term trading fee introduced To discourage short-term trading, which can interfere with a fund’s long-term strategy, a 1% short-term trading fee may be imposed on any Putnam fund shares (other than money market funds) redeemed or exchanged within seven calendar days of purchase (for certain funds, this fee applies for 90 days).

* The maximum sales charge for class A shares of Putnam Limited Duration Government Income Fund and Putnam Floating Rate Income Fund remains 3.25% .

The Putnam
family of funds

The following is a list of Putnam’s open-end mutual funds offered to the public. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund before investing. For a prospectus containing this and other information for any Putnam fund or product, call your financial advisor at 1-800-225-1581 and ask for a prospectus. Please read the prospectus carefully before investing.

Growth funds	Value funds
Discovery Growth Fund	Classic Equity Fund
Growth Opportunities Fund	Convertible Income-Growth Trust
Health Sciences Trust	Equity Income Fund
International New Opportunities Fund*	The George Putnam Fund of Boston
New Opportunities Fund	The Putnam Fund for Growth
OTC & Emerging Growth Fund	and Income
Small Cap Growth Fund*	International Growth and Income Fund*
Vista Fund	Mid Cap Value Fund
Voyager Fund	New Value Fund
	Small Cap Value Fund*

Blend funds	Income funds
Capital Appreciation Fund	American Government Income Fund
Capital Opportunities Fund*	Diversified Income Trust
Europe Equity Fund*	Floating Rate Income Fund
Global Equity Fund*	Global Income Trust*
Global Natural Resources Fund*	High Yield Advantage Fund*
International Capital	High Yield Trust*
Opportunities Fund*	Income Fund
International Equity Fund*	Limited Duration Government
Investors Fund	Income Fund
Research Fund	Money Market Fund†
Tax Smart Equity Fund®	U.S. Government Income Trust
Utilities Growth and Income Fund

* A 1% redemption fee on total assets redeemed or exchanged within 90 days of purchase may be imposed for all share classes of these funds.

† An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Tax-free income funds	Putnam RetirementReady® Funds
AMT-Free Insured Municipal Fund	Putnam RetirementReady Funds — ten
Tax Exempt Income Fund	investment portfolios that offer diversifica-
Tax Exempt Money Market Fund§	tion among stocks, bonds, and money
Tax-Free High Yield Fund	market instruments and adjust to become
	more conservative over time based on a
State tax-free income funds:	target date for withdrawing assets.
Arizona, California, Massachusetts, Michigan,	The ten funds:
Minnesota, New Jersey, New York, Ohio,	Putnam RetirementReady 2050 Fund
and Pennsylvania	Putnam RetirementReady 2045 Fund
	Putnam RetirementReady 2040 Fund
Asset allocation funds	Putnam RetirementReady 2035 Fund
Income Strategies Fund	Putnam RetirementReady 2030 Fund
Putnam Asset Allocation Funds — three	Putnam RetirementReady 2025 Fund
investment portfolios that spread your	Putnam RetirementReady 2020 Fund
money across a variety of stocks, bonds,	Putnam RetirementReady 2015 Fund
and money market investments.	Putnam RetirementReady 2010 Fund
	Putnam RetirementReady Maturity Fund
The three portfolios:
Asset Allocation: Balanced Portfolio
Asset Allocation: Conservative Portfolio
Asset Allocation: Growth Portfolio

With the exception of money market funds, a 1% redemption fee may be applied to shares exchanged or sold within 7 days of purchase (90 days, for certain funds).

Check your account balances and the most recent month-end performance at www.putnam.com.

Services for shareholders

Investor services

Help your investment grow Set up a program for systematic investing from a Putnam fund or from your own savings or checking account. (Regular investing does not guarantee a profit or protect against loss in a declining market.)

Switch funds easily* You can move money from one Putnam fund to another within the same class of shares without a service charge.

Access your money easily You can have checks sent regularly or redeem shares any business day at the then-current net asset value, which may be more or less than the original cost of the shares. Class B and class C shares carry a sales charge that is applied to certain withdrawals.

How to buy additional shares You may buy shares through your financial advisor or directly from Putnam. To open an account by mail, send a check made payable to the name of the fund along with a completed fund application. To add to an existing account, complete the investment slip found at the top of your Confirmation of Activity statement and return it with a check payable to your fund.

For more information

Visit www.putnam.com A secure section of our Web site contains complete information on your account, including balances and transactions, updated daily. You may also conduct transactions, such as exchanges, additional investments, and address changes. Log on today to get your password.

Call us toll free at 1-800-225-1581 Ask a helpful Putnam representative or your financial advisor for details about any of these or other services, or see your prospectus.

*This privilege is subject to change or termination. An exchange of funds may result in a taxable event. In addition, a 1% redemption fee will be applied to shares exchanged or sold within 7 days of purchase, and, for certain funds, this fee applies on total assets redeemed or exchanged within 90 days of purchase.

Fund information

Founded nearly 70 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage over 100 mutual funds in growth, value, blend, fixed income, and international.

Investment Manager	Kenneth R. Leibler	James P. Pappas
Putnam Investment	Robert E. Patterson	Vice President
Management, LLC	George Putnam, III	Richard S. Robie, III
One Post Office Square	W. Thomas Stephens	Vice President
Boston, MA 02109	Richard B. Worley
		Francis J. McNamara, III
Investment Sub-Manager	Officers	Vice President and
Putnam Investments Limited	Charles E. Haldeman, Jr.	Chief Legal Officer
57–59 St. James’s Street	President
London, England SW1A 1LD		Robert R. Leveille
	Charles E. Porter	Chief Compliance Officer
Marketing Services	Executive Vice President,
Putnam Retail Management	Principal Executive Officer,	Mark C. Trenchard
One Post Office Square	Associate Treasurer and	Vice President and
Boston, MA 02109	Compliance Liaison	BSA Compliance Officer

Custodians	Jonathan S. Horwitz	Judith Cohen
Putnam Fiduciary Trust	Senior Vice President	Vice President, Clerk and
Company, State Street Bank	and Treasurer	Assistant Treasurer
and Trust Company
	Steven D. Krichmar	Wanda M. McManus
Legal Counsel	Vice President and	Vice President, Senior Associate
Ropes & Gray LLP	Principal Financial Officer	Treasurer and Assistant Clerk

Trustees	Janet C. Smith	Nancy E. Florek
John A. Hill, Chairman	Vice President, Principal	Vice President, Assistant Clerk,
Jameson Adkins Baxter,	Accounting Officer and	Assistant Treasurer and
Vice Chairman	Assistant Treasurer	Proxy Manager
Charles B. Curtis
Myra R. Drucker	Susan G. Malloy
Charles E. Haldeman, Jr.	Vice President and
Paul L. Joskow	Assistant Treasurer
Elizabeth T. Kennan
	Beth S. Mazor
	Vice President

This report is for the information of shareholders of Putnam Global Equity Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of Putnam’s Quarterly Performance Summary, and Putnam’s Quarterly Ranking Summary. For more recent performance, please visit www.putnam.com. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund, which are described in its prospectus. For this and other information or to request a 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.

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. Exhibits:

(a)(1) Not applicable

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

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

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 Equity Fund

By (Signature and Title):

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

Date: June 29, 2007

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/Charles E. Porter
Charles E. Porter
Principal Executive Officer

Date: June 29, 2007

By (Signature and Title):

/s/Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer

Date: June 29, 2007