Putnam MultiCap Growth Fund


In late 2003 and 2004, Putnam Management settled charges
brought by the SEC and the Massachusetts Securities
Division in connection with excessive short term trading in
Putnam funds. In July 2011, the fund recorded a receivable
of $5,864,257 related to restitution amounts in connection
with a distribution plan approved by the SEC. This amount,
which was received by the fund in December 2011, is reported
as part of Increase in capital from settlement payments on
the Statement of changes in net assets. These allegations
and related matters have served as the general basis for
certain lawsuits, including purported class action lawsuits
against Putnam Management and,in a limited number of cases,
some Putnam funds. In May 2011, the fund received a payment
of $157,666 related to settlement of those lawsuits.
Putnam Management has agreed to bear any costs incurred by
the Putnam funds as a result of these matters.