N-Q 1 a_multicapgrowth.htm PUTNAM MULTI-CAP GROWTH FUND a_multicapgrowth.htm


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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY



Investment Company Act file number: (811-06128)
Exact name of registrant as specified in charter: Putnam Multi-Cap Growth Fund
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109
Name and address of agent for service: Robert T. Burns, Vice President
One Post Office Square
Boston, Massachusetts 02109
Copy to:         John W. Gerstmayr, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199-3600
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: June 30, 2013
Date of reporting period: March 31, 2013



Item 1. Schedule of Investments:













Putnam Multi-Cap Growth Fund

The fund's portfolio
3/31/13 (Unaudited)
COMMON STOCKS (98.9%)(a)
Shares Value
Aerospace and defense (4.4%)
B/E Aerospace, Inc.(NON) 188,900 $11,388,781
Honeywell International, Inc. 827,400 62,344,590
Precision Castparts Corp. 96,361 18,271,973
Rockwell Collins, Inc.(S) 261,800 16,524,816
United Technologies Corp. 402,000 37,558,860
146,089,020
Air freight and logistics (1.0%)
FedEx Corp.(S) 325,700 31,983,740
31,983,740
Auto components (1.3%)
Johnson Controls, Inc. 933,900 32,751,873
TRW Automotive Holdings Corp.(NON) 225,400 12,397,000
45,148,873
Beverages (2.6%)
Beam, Inc. 219,804 13,966,346
Coca-Cola Enterprises, Inc. 1,164,800 43,004,416
PepsiCo, Inc. 183,000 14,477,130
SABMiller PLC (United Kingdom) 307,479 16,183,769
87,631,661
Biotechnology (2.9%)
BioMarin Pharmaceuticals, Inc.(NON)(S) 380,900 23,714,834
Celgene Corp.(NON) 268,100 31,075,471
Cubist Pharmaceuticals, Inc.(NON)(S) 410,811 19,234,171
Elan Corp. PLC ADR (Ireland)(NON)(S) 647,200 7,636,960
Gilead Sciences, Inc.(NON) 285,100 13,949,943
Prothena Corp PLC (Ireland)(NON) 14,441 96,610
95,707,989
Building products (0.9%)
Fortune Brands Home & Security, Inc.(NON) 573,700 21,473,591
Owens Corning, Inc.(NON) 240,100 9,467,143
30,940,734
Capital markets (1.7%)
Artisan Partners Asset Management, Inc.(NON)(S) 76,587 3,021,357
Charles Schwab Corp. (The) 1,945,200 34,410,588
Invesco, Ltd. 293,900 8,511,344
Morgan Stanley 544,500 11,968,110
57,911,399
Chemicals (4.4%)
Agrium, Inc. (Canada) 101,700 9,915,750
Albemarle Corp. 238,500 14,911,020
Celanese Corp. Ser. A 663,999 29,249,156
Dow Chemical Co. (The)(S) 638,600 20,333,024
Eastman Chemical Co. 232,300 16,230,801
GSE Holding, Inc.(NON) 896,457 7,404,735
HB Fuller Co. 357,700 13,978,916
Monsanto Co. 333,900 35,269,857
147,293,259
Commercial banks (0.5%)
Bancorp, Inc. (The)(NON) 650,000 9,002,500
UMB Financial Corp. 149,500 7,335,965
16,338,465
Commercial services and supplies (0.5%)
Tyco International, Ltd. 569,390 18,220,480
18,220,480
Communications equipment (2.9%)
Arris Group, Inc.(NON) 472,600 8,114,542
Polycom, Inc.(NON) 1,614,602 17,889,790
Qualcomm, Inc. 1,082,335 72,462,328
98,466,660
Computers and peripherals (8.8%)
Apple, Inc. 389,376 172,349,499
EMC Corp.(NON) 2,167,000 51,769,630
NetApp, Inc.(NON) 522,100 17,834,936
SanDisk Corp.(NON) 983,912 54,115,160
296,069,225
Consumer finance (0.4%)
Capital One Financial Corp. 243,544 13,382,743
13,382,743
Diversified consumer services (0.1%)
Bright Horizons Family Solutions, Inc.(NON) 55,700 1,882,103
1,882,103
Diversified financial services (1.9%)
Bank of America Corp. 833,300 10,149,594
Citigroup, Inc. 564,300 24,964,632
CME Group, Inc. 444,800 27,306,272
62,420,498
Diversified telecommunication services (0.2%)
Iridium Communications, Inc.(NON)(S) 1,032,606 6,216,288
6,216,288
Electrical equipment (1.6%)
AMETEK, Inc. 421,100 18,258,896
Eaton Corp PLC 578,446 35,429,818
53,688,714
Energy equipment and services (3.8%)
Cameron International Corp.(NON) 285,300 18,601,560
Dresser-Rand Group, Inc.(NON) 149,600 9,224,336
Halliburton Co. 496,500 20,063,565
McDermott International, Inc.(NON) 776,200 8,530,438
Oil States International, Inc.(NON) 462,192 37,701,001
Schlumberger, Ltd. 445,200 33,341,028
127,461,928
Food and staples retail (1.1%)
Costco Wholesale Corp. 223,900 23,758,029
Whole Foods Market, Inc. 138,320 11,999,260
35,757,289
Food products (1.2%)
Hershey Co. (The)(S) 106,200 9,295,686
Hillshire Brands Co. 250,200 8,794,530
Mead Johnson Nutrition Co. 299,271 23,178,539
41,268,755
Health-care equipment and supplies (4.2%)
Baxter International, Inc. 870,658 63,244,597
Covidien PLC 748,000 50,744,320
Zimmer Holdings, Inc. 353,400 26,582,748
140,571,665
Health-care providers and services (2.2%)
Aetna, Inc. 683,100 34,920,072
Catamaran Corp.(NON) 118,324 6,274,722
UnitedHealth Group, Inc. 560,900 32,089,089
73,283,883
Hotels, restaurants, and leisure (2.6%)
Las Vegas Sands Corp. 389,855 21,968,329
McDonald's Corp. 167,300 16,678,137
Starbucks Corp. 435,400 24,800,384
Wyndham Worldwide Corp. 387,669 24,996,897
88,443,747
Household products (0.9%)
Procter & Gamble Co. (The) 398,500 30,708,410
30,708,410
Independent power producers and energy traders (0.8%)
Calpine Corp.(NON) 1,321,000 27,212,600
27,212,600
Insurance (1.0%)
Aon PLC 250,800 15,424,200
Prudential PLC (United Kingdom) 1,222,951 19,789,964
35,214,164
Internet and catalog retail (3.0%)
Amazon.com, Inc.(NON) 119,500 31,845,555
HomeAway, Inc.(NON) 476,800 15,496,000
HSN, Inc.(S) 110,700 6,073,002
Priceline.com, Inc.(NON) 70,790 48,698,565
102,113,122
Internet software and services (5.4%)
eBay, Inc.(NON) 630,100 34,164,022
Facebook, Inc. Class A(NON) 788,600 20,172,388
Google, Inc. Class A(NON) 119,872 95,181,963
Millennial Media, Inc.(NON)(S) 303,982 1,930,286
Yahoo!, Inc.(NON) 708,500 16,671,005
Yandex NV Class A (Russia)(NON) 540,800 12,503,296
180,622,960
IT Services (3.3%)
Cognizant Technology Solutions Corp.(NON) 312,600 23,948,286
Fidelity National Information Services, Inc. 215,900 8,553,958
InterXion Holding NV (Netherlands)(NON) 475,000 11,504,500
Total Systems Services, Inc. 547,000 13,554,660
Visa, Inc. Class A(S) 310,100 52,667,384
110,228,788
Leisure equipment and products (0.3%)
Polaris Industries, Inc. 101,700 9,406,233
9,406,233
Life sciences tools and services (1.5%)
Agilent Technologies, Inc. 393,000 16,494,210
Thermo Fisher Scientific, Inc. 456,853 34,944,686
51,438,896
Machinery (3.0%)
Cummins, Inc. 119,500 13,839,295
Edwards Group, Ltd. ADR (United Kingdom)(NON) 1,042,325 8,390,716
Joy Global, Inc. 215,000 12,796,800
Timken Co. 515,801 29,184,021
TriMas Corp.(NON) 595,506 19,336,080
Wabtec Corp. 167,300 17,083,003
100,629,915
Marine (0.5%)
Kirby Corp.(NON)(S) 208,400 16,005,120
16,005,120
Media (3.4%)
CBS Corp. Class B 74,800 3,492,412
Comcast Corp. Class A 782,000 32,851,820
DISH Network Corp. Class A 669,500 25,374,050
Time Warner, Inc. 918,500 52,923,970
114,642,252
Metals and mining (0.8%)
Barrick Gold Corp. (Canada) 415,000 12,201,000
Carpenter Technology Corp.(S) 310,000 15,279,900
27,480,900
Multiline retail (1.6%)
Dollar General Corp.(NON) 635,191 32,127,961
Nordstrom, Inc. 374,371 20,676,510
52,804,471
Oil, gas, and consumable fuels (3.5%)
Anadarko Petroleum Corp. 380,564 33,280,322
Cabot Oil & Gas Corp. 186,600 12,616,026
Gulfport Energy Corp.(NON) 551,700 25,284,411
Noble Energy, Inc. 326,761 37,793,177
Suncor Energy, Inc. (Canada) 238,100 7,134,679
116,108,615
Pharmaceuticals (4.2%)
AbbVie, Inc. 664,000 27,077,920
Actavis, Inc.(NON) 322,800 29,733,108
Auxilium Pharmaceuticals, Inc.(NON) 519,500 8,976,960
Eli Lilly & Co. 577,700 32,807,583
Jazz Pharmaceuticals PLC(NON) 262,567 14,680,121
Medicines Co. (The)(NON) 357,400 11,944,308
Shire PLC ADR (United Kingdom) 99,500 9,090,320
Zoetis Inc.(NON) 191,760 6,404,784
140,715,104
Professional services (0.7%)
Verisk Analytics, Inc. Class A(NON) 361,400 22,273,082
22,273,082
Real estate investment trusts (REITs) (1.2%)
American Campus Communities, Inc.(R) 262,129 11,884,929
American Tower Corp. Class A(R) 214,102 16,468,726
Equity Lifestyle Properties, Inc.(R)(S) 143,200 10,997,760
39,351,415
Real estate management and development (0.3%)
CBRE Group, Inc. Class A(NON) 442,200 11,165,550
11,165,550
Semiconductors and semiconductor equipment (3.1%)
Avago Technologies, Ltd. 868,400 31,192,928
Lam Research Corp.(NON)(S) 732,600 30,373,596
Micron Technology, Inc.(NON) 525,800 5,247,484
Texas Instruments, Inc. 271,800 9,643,464
Xilinx, Inc. 691,300 26,386,921
102,844,393
Software (3.3%)
Informatica Corp.(NON) 266,900 9,200,043
Oracle Corp. 529,100 17,111,094
Red Hat, Inc.(NON) 200,700 10,110,664
Salesforce.com, Inc.(NON)(S) 156,496 27,986,180
SAP AG ADR (Germany)(S) 249,600 20,102,784
SS&C Technologies Holdings, Inc.(NON) 641,420 19,229,772
Synopsys, Inc.(NON) 222,100 7,968,948
111,709,485
Specialty retail (2.8%)
Bed Bath & Beyond, Inc.(NON)(S) 364,487 23,480,253
Dick's Sporting Goods, Inc. 255,600 12,089,880
Foot Locker, Inc. 205,300 7,029,472
Lowe's Cos., Inc. 640,600 24,291,552
Tile Shop Holdings, Inc.(NON)(S) 209,178 4,394,830
TJX Cos., Inc. (The) 490,744 22,942,282
94,228,269
Textiles, apparel, and luxury goods (1.0%)
Coach, Inc. 403,900 20,190,961
Michael Kors Holdings, Ltd. (Hong Kong)(NON) 210,500 11,954,295
32,145,256
Tobacco (1.9%)
Japan Tobacco, Inc. (Japan) 320,800 10,223,615
Philip Morris International, Inc. 584,300 54,170,453
64,394,068
Trading companies and distributors (0.2%)
Rexel SA (France) 235,548 5,140,484
5,140,484
Total common stocks (cost $2,719,058,569) $3,314,762,670

WARRANTS (0.0%)(a)(NON)
Expiration date Strike Price Warrants Value
Citigroup, Inc. 1/4/19 $106.10 1,682,858 $851,526
Total warrants (cost $1,699,687) $851,526

CONVERTIBLE PREFERRED STOCKS (—%)(a)
Shares Value
UNEXT.com, LLC zero % cv. pfd. (acquired 4/14/00, cost $10,451,238) (Private)(F)(RES)(NON) 125,000 $—
Total convertible preferred stocks (cost $10,451,238) $—

SHORT-TERM INVESTMENTS (6.9%)(a)
Principal amount/shares Value
U.S. Treasury Bills with an effective yield of 0.18%, April 4, 2013 $448,000 $447,993
U.S. Treasury Bills with an effective yield of 0.13%, January 9, 2014 342,000 341,649
Putnam Cash Collateral Pool, LLC 0.19%(d) 199,446,123 199,446,123
Putnam Short Term Investment Fund 0.08%(AFF) 31,769,491 31,769,491
Total short-term investments (cost $232,005,256) $232,005,256

TOTAL INVESTMENTS
Total investments (cost $2,963,214,750)(b) $3,547,619,452













Key to holding's abbreviations
ADR American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
Notes to the fund's portfolio
Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from July 1, 2012 through March 31, 2013 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter.
(a) Percentages indicated are based on net assets of $3,351,968,530.
(b) The aggregate identified cost on a tax basis is $2,962,802,290, resulting in gross unrealized appreciation and depreciation of $643,001,317 and $58,184,155, respectively, or net unrealized appreciation of $584,817,162.
(NON) Non-income-producing security.
(RES) Security is restricted with regard to public resale. The total market value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $0.
(AFF) Affiliated company. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund, which are under common ownership and control, were as follows:
Name of affiliates Market value at the beginning of the reporting period Purchase cost Sale proceeds Investment income Market value at the end of the reporting period
Putnam Money Market Liquidity Fund * $37,166,064 $389,975,932 $427,141,996 $32,450 $—
Putnam Short Term Investment Fund * — 101,475,429 69,705,938 2,099 31,769,491
Totals $37,166,064 $491,451,361 $496,847,934 $34,549 $31,769,491
* Management fees charged to Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund have been waived by Putnam Management.
(d) Affiliated company. The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the 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 agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. At the close of the reporting period, the value of securities loaned amounted to $196,183,826.
The fund received cash collateral of $199,446,123, which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close of the reporting period.
(F) Is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities' valuation inputs. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio.
(R) Real Estate Investment Trust.
(S) Security on loan, in part or in entirety, at the close of the reporting period.
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, and are classified as Level 1 securities under ASC 820. If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security.
Investments in open-end investment companies (excluding exchange traded funds), if any, which can be classified as Level 1 or Level 2 securities, are based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.
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, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. At the close of the reporting period, 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.
To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.












ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:
Level 1: Valuations based on quoted prices for identical securities in active markets.
Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.
The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:

 Valuation inputs
Investments in securities: Level 1 Level 2 Level 3
Common stocks:
    Consumer discretionary $540,814,326 $— $—
    Consumer staples 249,536,568 10,223,615 —
    Energy 243,570,543 — —
    Financials 235,784,234 — —
    Health care 501,717,537 — —
    Industrials 424,971,289 — —
    Information technology 899,941,511 — —
    Materials 174,774,159 — —
    Telecommunication services 6,216,288 — —
    Utilities 27,212,600 — —
Total common stocks 3,304,539,055 10,223,615 —
Convertible preferred stocks — — —
Warrants 851,526 — —
Short-term investments 31,769,491 200,235,765 —
Totals by level $3,337,160,072 $210,459,380 $—


Market Values of Derivative Instruments as of the close of the reporting period
Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Market value Market value
Equity contracts $851,526 $—
Total $851,526 $—


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



Item 2. 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 3. Exhibits:
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.

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 Multi-Cap Growth Fund
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: May 24, 2013

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

By (Signature and Title):
/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: May 24, 2013

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: May 24, 2013