0000928816-16-003978.txt : 20161128 0000928816-16-003978.hdr.sgml : 20161128 20161128162517 ACCESSION NUMBER: 0000928816-16-003978 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20160930 FILED AS OF DATE: 20161128 DATE AS OF CHANGE: 20161128 EFFECTIVENESS DATE: 20161128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM MULTI-CAP GROWTH FUND CENTRAL INDEX KEY: 0000865177 IRS NUMBER: 043091455 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06128 FILM NUMBER: 162020197 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQUARE CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6172921000 MAIL ADDRESS: STREET 1: ONE POST OFFICE SQUARE CITY: BOSTON STATE: MA ZIP: 02109 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM NEW OPPORTUNITIES FUND DATE OF NAME CHANGE: 19920703 0000865177 S000006295 PUTNAM MULTI-CAP GROWTH FUND C000017306 Class A Shares PNOPX C000017307 Class B Shares PNOBX C000017308 Class C Shares PNOCX C000017309 Class M Shares PNOMX C000017310 Class R Shares PNORX C000017311 Class Y Shares PNOYX 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:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
Registrant's telephone number, including area code: (617) 292-1000
Date of fiscal year end: June 30, 2017
Date of reporting period: September 30, 2016



Item 1. Schedule of Investments:













Putnam Multi-Cap Growth Fund

The fund's portfolio
9/30/16 (Unaudited)
COMMON STOCKS (98.9%)(a)
Shares Value
Aerospace and defense (3.4%)
General Dynamics Corp. 313,800 $48,689,208
Northrop Grumman Corp. 355,400 76,037,830
124,727,038
Auto components (2.9%)
Johnson Controls International PLC 2,323,600 108,117,108
108,117,108
Banks (1.7%)
Bank of America Corp. 1,420,900 22,237,085
First Republic Bank 172,700 13,316,897
PacWest Bancorp 618,400 26,535,544
62,089,526
Beverages (3.3%)
Anheuser-Busch InBev SA/NV ADR (Belgium) 280,400 36,847,364
Constellation Brands, Inc. Class A 115,800 19,279,542
Monster Beverage Corp.(NON) 153,363 22,515,222
PepsiCo, Inc. 408,600 44,443,422
123,085,550
Biotechnology (5.4%)
Alkermes PLC(NON) 177,700 8,357,231
Amgen, Inc. 160,500 26,773,005
ARIAD Pharmaceuticals, Inc.(NON)(S) 650,132 8,900,307
Biogen, Inc.(NON) 111,100 34,777,633
BioMarin Pharmaceutical, Inc.(NON) 156,200 14,451,624
Celgene Corp.(NON) 731,868 76,502,162
Gilead Sciences, Inc. 292,533 23,145,211
Vertex Pharmaceuticals, Inc.(NON) 76,500 6,671,565
199,578,738
Capital markets (2.1%)
Charles Schwab Corp. (The) 1,209,100 38,171,287
KKR & Co. LP 1,074,200 15,318,092
Morgan Stanley 757,500 24,285,450
77,774,829
Chemicals (3.1%)
Albemarle Corp. 357,500 30,562,675
Ingevity Corp.(NON) 138,989 6,407,393
Sherwin-Williams Co. (The) 100,000 27,666,000
Symrise AG (Germany) 458,127 33,569,751
W.R. Grace & Co. 216,000 15,940,800
114,146,619
Commercial services and supplies (0.9%)
KAR Auction Services, Inc. 202,874 8,756,042
Stericycle, Inc.(NON) 46,100 3,694,454
Waste Connections, Inc. (Canada) 271,200 20,258,640
32,709,136
Consumer finance (0.6%)
Oportun Financial Corp. (acquired 6/23/15, cost $1,831,199) (Private)(F)(RES)(NON) 642,526 1,648,079
Synchrony Financial 746,600 20,904,800
22,552,879
Containers and packaging (1.2%)
Ball Corp.(S) 280,700 23,003,365
RPC Group PLC (United Kingdom) 1,512,873 18,824,731
41,828,096
Distributors (0.7%)
LKQ Corp.(NON) 722,500 25,619,850
25,619,850
Diversified consumer services (0.3%)
Bright Horizons Family Solutions, Inc.(NON) 173,351 11,595,448
11,595,448
Diversified telecommunication services (0.8%)
Level 3 Communications, Inc.(NON) 443,200 20,555,616
Zayo Group Holdings, Inc.(NON) 252,700 7,507,717
28,063,333
Equity real estate investment trusts (REITs) (1.5%)
American Tower Corp.(R) 267,202 30,282,003
Gaming and Leisure Properties, Inc.(R) 727,300 24,328,185
54,610,188
Food and staples retail (2.0%)
Costco Wholesale Corp. 107,300 16,364,323
Walgreens Boots Alliance, Inc. 719,100 57,973,842
74,338,165
Food products (0.4%)
Mead Johnson Nutrition Co. 176,300 13,929,463
13,929,463
Health-care equipment and supplies (5.7%)
Becton Dickinson and Co. 231,400 41,589,522
C.R. Bard, Inc. 221,400 49,655,592
Cooper Cos., Inc. (The) 119,600 21,439,496
Danaher Corp. 552,300 43,294,797
Edwards Lifesciences Corp.(NON) 100,000 12,056,000
GenMark Diagnostics, Inc.(NON)(S) 920,982 10,867,588
Innocoll Holdings PLC (Ireland)(NON) 997,911 5,867,717
Intuitive Surgical, Inc.(NON) 37,900 27,471,057
212,241,769
Health-care providers and services (0.6%)
Premier, Inc. Class A(NON) 610,987 19,759,320
19,759,320
Health-care technology (—%)
HTG Molecular Diagnostics, Inc.(AFF)(NON) 370,078 858,581
858,581
Hotels, restaurants, and leisure (2.7%)
Chipotle Mexican Grill, Inc.(NON)(S) 51,700 21,894,950
Hilton Worldwide Holdings, Inc. 1,214,003 27,837,089
Lindblad Expeditions Holdings, Inc.(NON)(S) 1,394,800 12,553,200
Yum! Brands, Inc. 409,100 37,150,371
99,435,610
Household products (0.6%)
Colgate-Palmolive Co. 276,300 20,484,882
20,484,882
Industrial conglomerates (1.0%)
Honeywell International, Inc. 308,900 36,014,651
36,014,651
Insurance (0.4%)
Prudential PLC (United Kingdom) 733,742 12,995,951
12,995,951
Internet and direct marketing retail (6.4%)
Amazon.com, Inc.(NON) 241,477 202,191,104
Delivery Hero Holding GmbH (acquired 6/12/15, cost $6,354,151) (Private) (Germany)(F)(RES)(NON) 825 5,708,316
FabFurnish GmbH (acquired 8/2/13, cost $69) (Private) (Brazil)(F)(RES)(NON) 104 88
Global Fashion Group SA (acquired 8/2/13, cost $3,488,697) (Private) (Brazil)(F)(RES)(NON) 82,353 595,814
New Bigfoot Other Assets GmbH (acquired 8/2/13, cost $69) (Private) (Brazil)(F)(RES)(NON) 52 44
New Middle East Other Assets GmbH (acquired 8/2/13, cost $29) (Private) (Brazil)(F)(RES)(NON) 22 19
Priceline Group, Inc. (The)(NON) 20,190 29,709,383
238,204,768
Internet software and services (12.2%)
Alibaba Group Holding, Ltd. ADR (China)(NON)(S) 245,450 25,966,156
Alphabet, Inc. Class A(NON) 138,448 111,320,499
Alphabet, Inc. Class C(NON) 196,283 152,568,813
Facebook, Inc. Class A(NON) 997,100 127,898,017
Instructure, Inc.(NON) 74,100 1,879,917
Shopify, Inc. Class A (Canada)(NON)(S) 572,900 24,588,868
Wix.com, Ltd. (Israel)(NON) 167,800 7,287,554
451,509,824
IT Services (4.2%)
Fidelity National Information Services, Inc. 506,700 39,031,101
Visa, Inc. Class A(S) 1,395,400 115,399,580
154,430,681
Life sciences tools and services (1.8%)
Agilent Technologies, Inc. 1,400,700 65,958,963
65,958,963
Machinery (1.7%)
Fortive Corp. 309,200 15,738,280
Middleby Corp. (The)(NON)(S) 265,800 32,858,196
Wabtec Corp.(S) 155,200 12,672,080
61,268,556
Media (2.2%)
DISH Network Corp. Class A(NON) 123,600 6,770,808
Live Nation Entertainment, Inc.(NON) 1,393,227 38,285,878
Time Warner, Inc. 148,600 11,830,046
Walt Disney Co. (The) 270,000 25,072,200
81,958,932
Multiline retail (0.3%)
Dollar General Corp. 161,400 11,296,386
11,296,386
Oil, gas, and consumable fuels (3.2%)
Anadarko Petroleum Corp. 498,700 31,597,632
EOG Resources, Inc. 341,400 33,016,794
Gulfport Energy Corp.(NON) 345,900 9,771,675
Pioneer Natural Resources Co. 159,800 29,666,870
Range Resources Corp.(S) 405,100 15,697,625
119,750,596
Personal products (0.8%)
Coty, Inc. Class A 394,200 9,263,700
Edgewell Personal Care Co.(NON) 260,400 20,707,008
29,970,708
Pharmaceuticals (3.6%)
Allergan PLC(NON) 279,100 64,279,521
Bristol-Myers Squibb Co. 443,100 23,891,952
Cardiome Pharma Corp. (Canada)(NON) 934,800 2,935,272
Eli Lilly & Co. 290,600 23,323,556
Jazz Pharmaceuticals PLC(NON) 155,067 18,837,539
133,267,840
Professional services (0.4%)
Equifax, Inc. 113,300 15,247,914
15,247,914
Real estate management and development (1.2%)
Kennedy-Wilson Holdings, Inc. 847,600 19,113,380
RE/MAX Holdings, Inc. Class A 593,855 25,998,972
45,112,352
Road and rail (2.4%)
Union Pacific Corp. 902,300 88,001,319
88,001,319
Semiconductors and semiconductor equipment (4.7%)
Applied Materials, Inc. 661,300 19,938,195
Broadcom, Ltd. 243,400 41,991,368
Micron Technology, Inc.(NON) 1,638,200 29,127,196
NVIDIA Corp.(S) 283,800 19,445,976
NXP Semiconductor NV(NON) 266,909 27,227,387
Taiwan Semiconductor Manufacturing Co., Ltd. ADR (Taiwan) 1,194,900 36,551,991
174,282,113
Software (7.0%)
Adobe Systems, Inc.(NON) 321,900 34,939,026
Electronic Arts, Inc.(NON) 547,500 46,756,500
Microsoft Corp. 1,259,600 72,552,960
Mobileye NV (Israel)(NON)(S) 209,195 8,905,431
Proofpoint, Inc.(NON)(S) 246,900 18,480,465
salesforce.com, Inc.(NON) 541,400 38,618,062
ServiceNow, Inc.(NON) 287,000 22,716,050
SS&C Technologies Holdings, Inc. 536,040 17,233,686
260,202,180
Specialty retail (2.4%)
Home Depot, Inc. (The) 431,400 55,512,552
TJX Cos., Inc. (The) 438,744 32,809,276
88,321,828
Technology hardware, storage, and peripherals (2.6%)
Apple, Inc. 853,932 96,537,013
96,537,013
Textiles, apparel, and luxury goods (0.6%)
NIKE, Inc. Class B 389,900 20,528,235
20,528,235
Wireless telecommunication services (0.5%)
T-Mobile US, Inc.(NON) 355,100 16,590,272
16,590,272
Total common stocks (cost $2,814,658,004) $3,668,997,210

CONVERTIBLE PREFERRED STOCKS (0.4%)(a)
Shares Value
Oportun Financial Corp. Ser. A-1, 8.00% cv. pfd. (acquired 6/23/15, cost $4,999) (Private)(F)(RES)(NON) 1,754 $4,499
Oportun Financial Corp. Ser. B-1, 8.00% cv. pfd. (acquired 6/23/15, cost $95,634) (Private)(F)(RES)(NON) 30,360 86,071
Oportun Financial Corp. Ser. C-1, 8.00% cv. pfd. (acquired 6/23/15, cost $224,601) (Private)(F)(RES)(NON) 44,126 202,141
Oportun Financial Corp. Ser. D-1, 8.00% cv. pfd. (acquired 6/23/15, cost $325,791) (Private)(F)(RES)(NON) 64,006 293,211
Oportun Financial Corp. Ser. E-1, 8.00% cv. pfd. (acquired 6/23/15, cost $182,702) (Private)(F)(RES)(NON) 33,279 164,432
Oportun Financial Corp. Ser. F, 8.00% cv. pfd. (acquired 6/23/15, cost $551,501) (Private)(F)(RES)(NON) 71,810 496,351
Oportun Financial Corp. Ser. F-1, 8.00% cv. pfd. (acquired 6/23/15, cost $1,546,855) (Private)(F)(RES)(NON) 542,756 1,392,169
Oportun Financial Corp. Ser. G, 8.00% cv. pfd. (acquired 6/23/15, cost $1,955,989) (Private)(F)(RES)(NON) 686,312 1,760,390
Oportun Financial Corp. Ser. H, 8.00% cv. pfd. (acquired 2/6/15, cost $5,967,941) (Private)(F)(RES)(NON) 2,096,000 5,371,147
Ovid Therapeutics, Inc. 144A Ser. B, 8.00% cv. pfd. (acquired 8/10/15, cost $4,137,150) (Private)(F)(RES)(NON) 664,069 3,723,435
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 $25,444,401) $13,493,846

MORTGAGE-BACKED SECURITIES (-%)(a)
Principal amount Value
Federal Home Loan Mortgage Association Ser. 4012, Class JK, 3.50%, 12/15/40(i) $116,130 $124,285
Total Mortgage-backed securities (cost $124,285) $124,285

WARRANTS (-%)(a)(NON)
Expiration date Strike Price Warrants Value
Citigroup, Inc. 1/4/19 $106.10 1,682,858 $92,557
Neuralstem, Inc. Ser. J (acquired 1/3/14, cost $—)(F)(RES) 1/3/19 3.64 721,455 —
Total warrants (cost $1,699,687) $92,557

SHORT-TERM INVESTMENTS (7.3%)(a)
Principal amount/shares Value
Putnam Cash Collateral Pool, LLC 0.67%(d) Shares 212,703,550 $212,703,550
Putnam Short Term Investment Fund 0.51%(AFF) Shares 56,320,298 56,320,298
State Street Institutional Liquid Reserves Fund Trust Class 0.34%(P) Shares 960,000 960,000
U.S. Treasury Bills 0.294%, 11/17/16 $739,000 738,838
U.S. Treasury Bills 0.281%, 11/10/16 760,000 759,842
Total short-term investments (cost $271,482,335) $271,482,528

TOTAL INVESTMENTS
Total investments (cost $3,113,408,712)(b) $3,954,190,426













FORWARD CURRENCY CONTRACTS at 9/30/16 (aggregate face value $71,028,618) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Bank of America N.A.
British Pound Sell 12/21/16 $13,259,353 $13,574,089 $314,736
JPMorgan Chase Bank N.A.
Euro Sell 12/21/16 45,762,532 45,424,057 (338,475)
UBS AG
Euro Sell 12/21/16 12,066,204 12,030,472 (35,732)
Total $(59,471)













OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/16 (Unaudited)
Upfront     Payments Total return Unrealized
Swap counterparty/ premium     Termination received (paid) by received by appreciation/
Notional amount received (paid)     date fund per annum or paid by fund (depreciation)
JPMorgan Chase Bank N.A.
baskets 79,108 $—      4/17/17 (3 month USD-LIBOR-BBA plus 0.38%) A basket (JPCMPNET) of common stocks $969,318
Total$—     $969,318










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, 2016 through September 30, 2016 (the reporting period). Within the following notes to the portfolio, references to "ASC 820" represent Accounting Standards Codification 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 $3,711,620,231.
(b) The aggregate identified cost on a tax basis is $3,118,695,947, resulting in gross unrealized appreciation and depreciation of $916,455,405 and $80,960,926, respectively, or net unrealized appreciation of $835,494,479.
(NON) This security is non-income-producing.
(RES) This security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $21,446,206, or 0.6% of net assets.
(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 Cash Collateral Pool, LLC and Putnam Short Term Investment Fund, which are under common ownership and control, were as follows:
Name of affiliate Fair value at the beginning of the reporting period Purchase cost Sale proceeds Investment income Fair value at the end of the reporting period
HTG Molecular Diagnostics, Inc. $962,203 $— $— $— $858,581
Putnam Cash Collateral Pool, LLC * 142,201,300 370,918,373 300,416,123 176,747 212,703,550
Putnam Short Term Investment Fund ** 42,433,371 210,313,821 196,426,894 74,641 56,320,298
Totals $185,596,874 $581,232,194 $496,843,017 $251,388 $269,882,429
* No management fees are charged to Putnam Cash Collateral Pool, LLC.
** Management fees charged to 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 fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. The risk of borrower default will be borne by the fund's agent; the fund will bear the risk of loss with respect to the investment of the cash collateral.
The fund received cash collateral of $212,703,550, which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close of the reporting period. At the close of the reporting period, the value of securities loaned amounted to $210,511,688.
(F) This security is valued by Putnam Management 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.
(i) This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts.
(P) This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
(R) Real Estate Investment Trust.
(S) This security is on loan, in part or in entirety, at the close of the reporting period.
At the close of the reporting period, the fund maintained liquid assets totaling $42,130 to cover certain derivative contracts and the settlement of certain securities.
Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.
Debt obligations are considered secured unless otherwise indicated.
144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
The dates shown on debt obligations are the original maturity dates.

Security valuation: Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund's assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.
Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under ASC 820. If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security.
Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.
Market quotations are not considered to be readily available for certain debt obligations (including short-term investments with remaining maturities of 60 days or less) and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2.
Many securities markets and exchanges outside the U.S. close prior to the scheduled close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value 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. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate.
To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.
Forward currency contracts: The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts were used to hedge foreign exchange risk.
The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position.
For the fund's average contract amount on forward currency contracts, see the appropriate table at the end of these footnotes.
Total return swap contracts: The fund entered into OTC total return swap contracts, which are arrangements to exchange a market-linked return for a periodic payment, both based on a notional principal amount, to gain exposure to specific markets or countries and to gain exposure to specific sectors or industries.
To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund's maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty.
For the fund's average notional amount on OTC total return swap contracts, see the appropriate table at the end of these footnotes.
Master agreements: The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties' general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund's custodian and, with respect to those amounts which can be sold or repledged, is presented in the fund's portfolio.
Collateral pledged by the fund is segregated by the fund's custodian and identified in the fund's portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund's net position with each counterparty.
Termination events applicable to the fund may occur upon a decline in the fund's net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty's long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund's counterparties to elect early termination could impact the fund's future derivative activity.
At the close of the reporting period, the fund had a net liability position of $35,732 on open derivative contracts subject to the Master Agreements. There was no collateral posted by the fund at period end for these agreements.












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

 Valuation inputs
Investments in securities: Level 1 Level 2 Level 3
Common stocks*:
    Consumer discretionary $678,773,884 $— $6,304,281
    Consumer staples 261,808,768 — —
    Energy 119,750,596 — —
    Financials 173,765,106 — 1,648,079
    Health care 631,665,211 — —
    Industrials 357,968,614 — —
    Information technology 1,136,961,811 — —
    Materials 155,974,715 — —
    Real estate 99,722,540 — —
    Telecommunication services 44,653,605 — —
Total common stocks 3,661,044,850 — 7,952,360
Convertible preferred stocks — — 13,493,846
Mortgage-backed securities — 124,285 —
Warrants 92,557 — —
Short-term investments 57,280,298 214,202,230 —
Totals by level $3,718,417,705 $214,326,515 $21,446,206



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $(59,471) $—
Total return swap contracts — 969,318 —
Totals by level $— $909,847 $—


* Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.
During the reporting period, transfers within the fair value hierarchy, if any (other than certain transfers involving non-U.S. equity securities as described in the Security valuation note above), did not represent, in the aggregate, more than 1% of the fund's net assets measured as of the end of the period. Transfers are accounted for using the end of period pricing valuation method.
At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio.

Fair Value 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 Fair value Fair value
Foreign exchange contracts $314,736 $374,207
Equity contracts 1,061,875 —
Total $1,376,611 $374,207


The volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period:
Forward currency contracts (contract amount)$64,000,000
OTC total return swap contracts (notional)$9,000,000
Warrants (number of warrants)2,500,000
   
  The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions, if applicable, see note "(d)" above, and for borrowing transactions associated with securities sold short, if applicable, see the "Short sales of securities" note above.
   
      Bank of America N.A. JPMorgan Chase Bank N.A. UBS AG   Total
               
  Assets:            
  OTC Total return swap contracts*#   $-  $969,318  $-    $969,318 
  Forward currency contracts#   314,736  —  —    314,736 
               
  Total Assets   $314,736  $969,318  $—    $1,284,054 
               
  Liabilities:            
  OTC Total return swap contracts*#   —  —  —    — 
  Forward currency contracts#   —  338,475  35,732    374,207 
               
  Total Liabilities   $—  $338,475  $35,732    $374,207 
               
  Total Financial and Derivative Net Assets   $314,736  $630,843  $(35,732)   $909,847 
  Total collateral received (pledged)##†   $244,285  $630,843  $—     
  Net amount   $70,451  $—  $(35,732)    
               
* Excludes premiums, if any.
               
†  Additional collateral may be required from certain brokers based on individual agreements.
               
# Covered by master netting agreement.
               
## Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.

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: November 28, 2016

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: November 28, 2016

By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer
Date: November 28, 2016

EX-99.CERT 2 b_852certifications.htm CERTIFICATIONS b_852certifications.htm

Certifications

I, Jonathan S. Horwitz, the Principal Executive Officer of the funds listed on Attachment A, certify that:

1. I have reviewed each report on Form N-Q of the funds listed on Attachment A:

2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report;

3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have:


a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared;


b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and


d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to each registrant's auditors and the audit committee of each registrant's board of directors (or persons performing the equivalent functions):


a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant's ability to record, process, summarize, and report financial information; and


b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant's internal control over financial reporting.

/s/ Jonathan S. Horwitz
_____________________________

Date: November 28, 2016
Jonathan S. Horwitz
Principal Executive Officer













Certifications

I, Janet C. Smith, the Principal Financial Officer of the funds listed on Attachment A, certify that:

1. I have reviewed each report on Form N-Q of the funds listed on Attachment A:

2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report;

3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have:


a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared;


b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and


d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to each registrant's auditors and the audit committee of each registrant's board of directors (or persons performing the equivalent functions):


a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant's ability to record, process, summarize, and report financial information; and


b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant's internal control over financial reporting.

/s/ Janet C. Smith
_______________________________

Date: November 28, 2016
Janet C. Smith
Principal Financial Officer














Attachment A

NQ

Period (s) ended September 30, 2016
               Putnam Europe Equity Fund
               Putnam International Equity Fund
               Putnam Multi-Cap Growth Fund
               Putnam Small Cap Growth Fund
               Putnam International Value Fund

               Putnam VT Absolute 500 Fund
               Putnam VT American Government Income Fund
               Putnam VT Capital Opportunities Fund
               Putnam VT Diversified Income Fund
               Putnam VT Equity Income Fund
               Putnam VT George Putnam Balanced Fund
               Putnam VT Global Asset Allocation Fund
               Putnam VT Global Equity Fund
               Putnam VT Global Health Care Fund
               Putnam VT Global Utilities Fund
               Putnam VT Growth and Income Fund
               Putnam VT Growth Opportunities Fund
               Putnam VT High Yield Fund
               Putnam VT Income Fund
               Putnam VT International Equity Fund
               Putnam VT International Value Fund
               Putnam VT International Growth Fund
               Putnam VT Investors Fund
               Putnam VT Multi-Cap Value Fund
               Putnam VT Government Money Market Fund
               Putnam VT Multi-Cap Growth Fund
               Putnam VT Research Fund
               Putnam VT Small Cap Value Fund
               Putnam VT Voyager Fund