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UNITED STATES |
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SECURITIES AND EXCHANGE COMMISSION |
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Washington, D.C. 20549 |
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FORM N-CSR |
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED |
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MANAGEMENT INVESTMENT COMPANIES |
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Investment Company Act file number: |
(811-07237) |
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Exact name of registrant as specified in charter: |
Putnam Investments Funds |
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Address of principal executive offices: |
100 Federal Street, Boston, Massachusetts 02110 |
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Name and address of agent for service: |
Stephen Tate, Vice President |
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100 Federal Street |
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Boston, Massachusetts 02110 |
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Copy to: |
Bryan Chegwidden, Esq. |
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Ropes & Gray LLP |
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1211 Avenue of the Americas |
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New York, New York 10036 |
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James E. Thomas, Esq. |
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Ropes & Gray LLP |
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800 Boylston Street |
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Boston, Massachusetts 02199 |
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Registrant’s telephone number, including area code: |
(617) 292-1000 |
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Date of fiscal year end: |
July 31, 2024 |
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Date of reporting period: |
August 1 , 2023 – July 31, 2024 |
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Item 1. Report to Stockholders: |
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The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940: |
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Annual Shareholder Report |
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Class Name
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Costs of a $10,000 investment
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Costs paid as a percentage of a $10,000 investment*
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Class A
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$
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| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
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Top contributors to performance:
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Stock selection in the information technology, consumer staples, industrials and consumer discretionary sectors, including overweight positions relative to the benchmark in:
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↑
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Artificial intelligence solutions provider Nvidia and semiconductor manufacturer Broadcom
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↑
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Global pharmaceutical company Eli Lilly
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↑
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Trane Technologies, a leader in heating, ventilation, air conditioning and refrigeration solutions
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Top detractors from performance:
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Overweight positions in:
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↓
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Dexcom, a developer of continuous glucose monitoring systems for diabetes management
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↓
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Lululemon, a North American retailer of premium athletic apparel
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↓
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UnitedHealth Group, a multinational health insurance and services provider
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| Putnam Large Cap Growth Fund | PAGE 1 | 38964-ATSA-0924 |
Class A 7/31/2014 — 7/31/2024
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1 Year
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5 Year
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10 Year
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Total Net Assets
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$
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Total Number of Portfolio Holdings*
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Total Management Fee Paid
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$
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Portfolio Turnover Rate
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| * | Includes derivatives, if applicable. |
| Putnam Large Cap Growth Fund | PAGE 2 | 38964-ATSA-0924 |
| Cash and Equivalents, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Holdings and allocations may vary over time. |
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WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
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Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
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• prospectus • proxy voting information • financial information • holdings • tax information
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| Putnam Large Cap Growth Fund | PAGE 3 | 38964-ATSA-0924 |
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Annual Shareholder Report |
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Class Name
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Costs of a $10,000 investment
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Costs paid as a percentage of a $10,000 investment*
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Class B
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$
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| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
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Top contributors to performance:
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Stock selection in the information technology, consumer staples, industrials and consumer discretionary sectors, including overweight positions relative to the benchmark in:
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↑
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Artificial intelligence solutions provider Nvidia and semiconductor manufacturer Broadcom
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↑
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Global pharmaceutical company Eli Lilly
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↑
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Trane Technologies, a leader in heating, ventilation, air conditioning and refrigeration solutions
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Top detractors from performance:
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Overweight positions in:
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↓
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Dexcom, a developer of continuous glucose monitoring systems for diabetes management
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↓
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Lululemon, a North American retailer of premium athletic apparel
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↓
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UnitedHealth Group, a multinational health insurance and services provider
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| Putnam Large Cap Growth Fund | PAGE 1 | 38964-ATSB-0924 |
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1 Year
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5 Year
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10 Year
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Total Net Assets
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$
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Total Number of Portfolio Holdings*
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Total Management Fee Paid
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$
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Portfolio Turnover Rate
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| * | Includes derivatives, if applicable. |
| Putnam Large Cap Growth Fund | PAGE 2 | 38964-ATSB-0924 |
| Cash and Equivalents, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Holdings and allocations may vary over time. |
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WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
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Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
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• prospectus • proxy voting information • financial information • holdings • tax information
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| Putnam Large Cap Growth Fund | PAGE 3 | 38964-ATSB-0924 |
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Annual Shareholder Report |
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Class Name
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Costs of a $10,000 investment
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Costs paid as a percentage of a $10,000 investment*
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Class C
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$
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| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
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Top contributors to performance:
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Stock selection in the information technology, consumer staples, industrials and consumer discretionary sectors, including overweight positions relative to the benchmark in:
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↑
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Artificial intelligence solutions provider Nvidia and semiconductor manufacturer Broadcom
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|
↑
|
Global pharmaceutical company Eli Lilly
|
|
↑
|
Trane Technologies, a leader in heating, ventilation, air conditioning and refrigeration solutions
|
|
Top detractors from performance:
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|
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Overweight positions in:
|
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↓
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Dexcom, a developer of continuous glucose monitoring systems for diabetes management
|
|
↓
|
Lululemon, a North American retailer of premium athletic apparel
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|
↓
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UnitedHealth Group, a multinational health insurance and services provider
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| Putnam Large Cap Growth Fund | PAGE 1 | 38964-ATSC-0924 |
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1 Year
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5 Year
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10 Year
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Total Net Assets
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$
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Total Number of Portfolio Holdings*
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Total Management Fee Paid
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$
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Portfolio Turnover Rate
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| * | Includes derivatives, if applicable. |
| Putnam Large Cap Growth Fund | PAGE 2 | 38964-ATSC-0924 |
| Cash and Equivalents, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Holdings and allocations may vary over time. |
 |
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
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|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
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• prospectus • proxy voting information • financial information • holdings • tax information
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| Putnam Large Cap Growth Fund | PAGE 3 | 38964-ATSC-0924 |
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 |
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Annual Shareholder Report |
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 |
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Class Name
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Costs of a $10,000 investment
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Costs paid as a percentage of a $10,000 investment*
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Class R
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$
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| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
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Top contributors to performance:
|
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Stock selection in the information technology, consumer staples, industrials and consumer discretionary sectors, including overweight positions relative to the benchmark in:
|
|
|
↑
|
Artificial intelligence solutions provider Nvidia and semiconductor manufacturer Broadcom
|
|
↑
|
Global pharmaceutical company Eli Lilly
|
|
↑
|
Trane Technologies, a leader in heating, ventilation, air conditioning and refrigeration solutions
|
|
Top detractors from performance:
|
|
|
Overweight positions in:
|
|
|
↓
|
Dexcom, a developer of continuous glucose monitoring systems for diabetes management
|
|
↓
|
Lululemon, a North American retailer of premium athletic apparel
|
|
↓
|
UnitedHealth Group, a multinational health insurance and services provider
|
| Putnam Large Cap Growth Fund | PAGE 1 | 38964-ATSR-0924 |
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1 Year
|
5 Year
|
10 Year
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Total Net Assets
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$
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Total Number of Portfolio Holdings*
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|
Total Management Fee Paid
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$
|
|
Portfolio Turnover Rate
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| * | Includes derivatives, if applicable. |
| Putnam Large Cap Growth Fund | PAGE 2 | 38964-ATSR-0924 |
| Cash and Equivalents, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Holdings and allocations may vary over time. |
 |
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| Putnam Large Cap Growth Fund | PAGE 3 | 38964-ATSR-0924 |
|
|
 |
|
|
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||
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Annual Shareholder Report |
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||
 |
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Class Name
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Costs of a $10,000 investment
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Costs paid as a percentage of a $10,000 investment*
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Class R5
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$
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| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
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Top contributors to performance:
|
|
|
Stock selection in the information technology, consumer staples, industrials and consumer discretionary sectors, including overweight positions relative to the benchmark in:
|
|
|
↑
|
Artificial intelligence solutions provider Nvidia and semiconductor manufacturer Broadcom
|
|
↑
|
Global pharmaceutical company Eli Lilly
|
|
↑
|
Trane Technologies, a leader in heating, ventilation, air conditioning and refrigeration solutions
|
|
Top detractors from performance:
|
|
|
Overweight positions in:
|
|
|
↓
|
Dexcom, a developer of continuous glucose monitoring systems for diabetes management
|
|
↓
|
Lululemon, a North American retailer of premium athletic apparel
|
|
↓
|
UnitedHealth Group, a multinational health insurance and services provider
|
| Putnam Large Cap Growth Fund | PAGE 1 | 38964-ATSR5-0924 |
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1 Year
|
5 Year
|
10 Year
|
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|
|
|
|
|
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Total Net Assets
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$
|
|
Total Number of Portfolio Holdings*
|
|
|
Total Management Fee Paid
|
$
|
|
Portfolio Turnover Rate
|
|
| * | Includes derivatives, if applicable. |
| Putnam Large Cap Growth Fund | PAGE 2 | 38964-ATSR5-0924 |
| Cash and Equivalents, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Holdings and allocations may vary over time. |
 |
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| Putnam Large Cap Growth Fund | PAGE 3 | 38964-ATSR5-0924 |
|
|
 |
|
|
|
||
|
Annual Shareholder Report |
|
||
 |
||
|
Class Name
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Costs of a $10,000 investment
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Costs paid as a percentage of a $10,000 investment*
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|
Class R6
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$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
|
Top contributors to performance:
|
|
|
Stock selection in the information technology, consumer staples, industrials and consumer discretionary sectors, including overweight positions relative to the benchmark in:
|
|
|
↑
|
Artificial intelligence solutions provider Nvidia and semiconductor manufacturer Broadcom
|
|
↑
|
Global pharmaceutical company Eli Lilly
|
|
↑
|
Trane Technologies, a leader in heating, ventilation, air conditioning and refrigeration solutions
|
|
Top detractors from performance:
|
|
|
Overweight positions in:
|
|
|
↓
|
Dexcom, a developer of continuous glucose monitoring systems for diabetes management
|
|
↓
|
Lululemon, a North American retailer of premium athletic apparel
|
|
↓
|
UnitedHealth Group, a multinational health insurance and services provider
|
| Putnam Large Cap Growth Fund | PAGE 1 | 38964-ATSR6-0924 |
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1 Year
|
5 Year
|
10 Year
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Total Net Assets
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$
|
|
Total Number of Portfolio Holdings*
|
|
|
Total Management Fee Paid
|
$
|
|
Portfolio Turnover Rate
|
|
| * | Includes derivatives, if applicable. |
| Putnam Large Cap Growth Fund | PAGE 2 | 38964-ATSR6-0924 |
| Cash and Equivalents, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Holdings and allocations may vary over time. |
 |
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| Putnam Large Cap Growth Fund | PAGE 3 | 38964-ATSR6-0924 |
|
|
 |
|
|
|
||
|
Annual Shareholder Report |
|
||
 |
||
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment*
|
|
Class Y
|
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
|
Top contributors to performance:
|
|
|
Stock selection in the information technology, consumer staples, industrials and consumer discretionary sectors, including overweight positions relative to the benchmark in:
|
|
|
↑
|
Artificial intelligence solutions provider Nvidia and semiconductor manufacturer Broadcom
|
|
↑
|
Global pharmaceutical company Eli Lilly
|
|
↑
|
Trane Technologies, a leader in heating, ventilation, air conditioning and refrigeration solutions
|
|
Top detractors from performance:
|
|
|
Overweight positions in:
|
|
|
↓
|
Dexcom, a developer of continuous glucose monitoring systems for diabetes management
|
|
↓
|
Lululemon, a North American retailer of premium athletic apparel
|
|
↓
|
UnitedHealth Group, a multinational health insurance and services provider
|
| Putnam Large Cap Growth Fund | PAGE 1 | 38964-ATSY-0924 |
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1 Year
|
5 Year
|
10 Year
|
|
|
|
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|
|
|
|
|
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Total Net Assets
|
$
|
|
Total Number of Portfolio Holdings*
|
|
|
Total Management Fee Paid
|
$
|
|
Portfolio Turnover Rate
|
|
| * | Includes derivatives, if applicable. |
| Putnam Large Cap Growth Fund | PAGE 2 | 38964-ATSY-0924 |
| Cash and Equivalents, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Holdings and allocations may vary over time. |
 |
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| Putnam Large Cap Growth Fund | PAGE 3 | 38964-ATSY-0924 |
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Item 2. Code of Ethics: |
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(a) The fund’s principal executive, financial and accounting officers are employees of Putnam Investment Management, LLC, the Fund’s investment manager, or Franklin Templeton. As such they are subject to a comprehensive Code of Ethics adopted and administered by Putnam Investment Management, LLC and Franklin Templeton which is designed to protect the interests of the firm and its clients. The Fund has adopted a Code of Ethics which incorporates the Code of Ethics of Franklin Templeton with respect to all of its officers and Trustees who are employees of Putnam Investment Management, LLC and Franklin Templeton. For this reason, the Fund has not adopted a separate code of ethics governing its principal executive, financial and accounting officers. |
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(c) In connection with the acquisition of Putnam Investments by Franklin Templeton, the Putnam Investments Code of Ethics was amended effective January 1, 2024 to reflect revised compliance processes, including: (i) Compliance with the Putnam Investments Code of Ethics will be viewed as compliance with the Franklin Templeton Code for certain Putnam employees who are dual-hatted in Franklin Templeton advisory entities (ii) Certain Franklin Templeton employees are required to hold shares of Putnam mutual funds at Putnam Investor Services, Inc. and (iii) Certain provisions of the Putnam Investments Code of Ethics are amended that are no longer needed due to organizational changes. Effective March 4, 2024, the majority of legacy Putnam employees transitioned to Franklin Templeton policies outlined in the Franklin Templeton Code. |
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Item 3. Audit Committee Financial Expert: |
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The Funds’ Audit, Compliance and Risk Committee is comprised solely of Trustees who are “independent” (as such term has been defined by the Securities and Exchange Commission (“SEC”) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the “Regulations”)). The Trustees believe that each member of the Audit, Compliance and Risk Committee also possesses a combination of knowledge and experience with respect to financial accounting matters, as well as other attributes, that qualifies him or her for service on the Committee. In addition, the Trustees have determined that each of Mr. McGreevey and Mr. Singh qualifies as an “audit committee financial expert” (as such term has been defined by the Regulations) based on their review of his or her pertinent experience and education.The SEC has stated, and the funds’ amended and restated agreement and Declaration of Trust provides, that the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the Audit, Compliance and Risk Committee and the Board of Trustees in the absence of such designation or identification. |
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Item 4. Principal Accountant Fees and Services: |
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The following table presents fees billed in each of the last two fiscal years for services rendered to the fund by the fund’s independent auditor: |
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Fiscal year ended |
Audit Fees |
Audit-Related Fees |
Tax Fees |
All Other Fees |
|
July 31, 2024 |
$121,321 |
$ — |
$6,071 |
$ — |
|
July 31, 2023 |
$106,249 |
$ — |
$6,071 |
$ — |
|
For the fiscal years ended July 31, 2024 and July 31, 2023, the fund’s independent auditor billed aggregate non-audit fees in the amounts of $1,036,868 and $247,814 respectively, to the fund, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the fund. |
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Audit Fees represent fees billed for the fund’s last two fiscal years relating to the audit and review of the financial statements included in annual reports and registration statements, and other services that are normally provided in connection with statutory and regulatory filings or engagements. |
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Audit-Related Fees represent fees billed in the fund’s last two fiscal years for services traditionally performed by the fund’s auditor, including accounting consultation for proposed transactions or concerning financial accounting and reporting standards and other audit or attest services not required by statute or regulation. |
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Tax Fees represent fees billed in the fund’s last two fiscal years for tax compliance, tax planning and tax advice services. Tax planning and tax advice services include assistance with tax audits, employee benefit plans and requests for rulings or technical advice from taxing authorities. |
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Pre-Approval Policies of the Audit, Compliance and Risk Committee. The Audit, Compliance and Risk Committee of the Putnam funds has determined that, as a matter of policy, all work performed for the funds by the funds’ independent auditors will be pre-approved by the Committee itself and thus will generally not be subject to pre-approval procedures. |
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The Audit, Compliance and Risk Committee also has adopted a policy to pre-approve the engagement by Putnam Management and certain of its affiliates of the funds’ independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by Putnam Management or certain of its affiliates are typically submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees, and why this work should be performed by that particular audit firm as opposed to another one. In reviewing such requests, the Committee considers, among other things, whether the provision of such services by the audit firm are compatible with the independence of the audit firm. |
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The following table presents fees billed by the fund’s independent auditor for services required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2–01 of Regulation S-X. |
|
Fiscal year ended |
Audit-Related Fees |
Tax Fees |
All Other Fees |
Total Non-Audit Fees |
|
July 31, 2024 |
$ — |
$861,963 |
$168,834 |
$1,030,797 |
|
July 31, 2023 |
$ — |
$241,743 |
$ — |
$241,743 |
|
(i) Not applicable |
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(j) Not applicable |
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Item 5. Audit Committee of Listed Registrants |
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Not applicable |
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Item 6. Investments: |
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The registrant’s schedule of investments in unaffiliated issuers is included in the Financial Statements and Other Important Information in Item 7 below. |
|
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies. |
Putnam
Large Cap Growth
Fund
Financial Statements and Other Important Information
Annual | July
31, 2024
Table of Contents
| Financial Statements and Other Important Information—Annual | franklintempleton.com |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Putnam Investment Funds and Shareholders of Putnam Large Cap Growth Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s portfolio, of Putnam Large Cap Growth Fund (one of the funds constituting Putnam Investment Funds, referred to hereafter as the “Fund”) as of JulyÊ31, 2024, the related statement of operations for the year ended July 31, 2024, the statement of changes in net assets for each of the two years in the period ended July 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended July 31, 2024 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended July 31, 2024 and the financial highlights for each of the five years in the period ended July 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2024 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers
LLP
Boston, Massachusetts
September 12, 2024
We have served as the auditor of one or more investment companies in the Putnam Funds family of funds since at least 1957. We have not been able to determine the specific year we began serving as auditor.
| Large Cap Growth Fund 1 |
The fund’s portfolio 7/31/24
| COMMON STOCKS (97.6%)* | Shares | Value | |
| Aerospace and defense (1.6%) | |||
| GE Aerospace | 469,473 | $79,904,305 | |
| TransDigm Group, Inc. | 69,180 | 89,534,140 | |
| 169,438,445 | |||
| Automobiles (1.6%) | |||
| Tesla, Inc.† | 740,693 | 171,892,625 | |
| 171,892,625 | |||
| Biotechnology (0.8%) | |||
| Regeneron Pharmaceuticals, Inc.† | 77,480 | 83,615,641 | |
| 83,615,641 | |||
| Broadline retail (8.2%) | |||
| Amazon.com, Inc.† | 4,738,204 | 885,949,384 | |
| 885,949,384 | |||
| Building products (1.2%) | |||
| Trane Technologies PLC | 384,361 | 128,484,195 | |
| 128,484,195 | |||
| Capital markets (0.8%) | |||
| S&P Global, Inc. | 170,224 | 82,512,680 | |
| 82,512,680 | |||
| Chemicals (0.9%) | |||
| Sherwin-Williams Co. (The) | 290,446 | 101,888,457 | |
| 101,888,457 | |||
| Commercial services and supplies (1.0%) | |||
| Copart, Inc.† | 381,961 | 19,988,019 | |
| Waste Connections, Inc. | 489,250 | 86,973,973 | |
| 106,961,992 | |||
| Consumer staples distribution and retail (0.5%) | |||
| Costco Wholesale Corp. | 65,025 | 53,450,550 | |
| 53,450,550 | |||
| Electrical equipment (0.4%) | |||
| Vertiv Holdings Co. Class A | 528,846 | 41,620,180 | |
| 41,620,180 | |||
| Entertainment (3.1%) | |||
| Live Nation Entertainment, Inc.† | 633,724 | 60,957,912 | |
| Netflix, Inc.† | 320,766 | 201,553,316 | |
| Spotify Technology SA (Sweden)† | 225,643 | 77,607,653 | |
| 340,118,881 | |||
| Financial services (4.6%) | |||
| Mastercard, Inc. Class A | 618,458 | 286,785,159 | |
| Visa, Inc. Class A | 782,029 | 207,761,644 | |
| 494,546,803 | |||
| Ground transportation (2.3%) | |||
| Canadian Pacific Kansas City, Ltd. (Canada) | 1,345,884 | 112,811,997 | |
| Uber Technologies, Inc.† | 2,192,133 | 141,326,815 | |
| 254,138,812 | |||
| Health care equipment and supplies (3.1%) | |||
| Boston Scientific Corp.† | 1,489,721 | 110,060,587 | |
| IDEXX Laboratories, Inc.† | 104,292 | 49,655,507 | |
| Intuitive Surgical, Inc.† | 393,358 | 174,890,900 | |
| 334,606,994 | |||
| Hotels, restaurants, and leisure (3.1%) | |||
| Booking Holdings, Inc. | 39,199 | 145,624,677 | |
| Chipotle Mexican Grill, Inc.† | 2,021,342 | 109,799,297 | |
| DraftKings, Inc. Class A† | 2,104,037 | 77,744,167 | |
| 333,168,141 | |||
| Interactive media and services (9.1%) | |||
| Alphabet, Inc. Class C | 3,605,012 | 624,207,828 | |
| Meta Platforms, Inc. Class A | 762,159 | 361,895,958 | |
| 986,103,786 | |||
| 2 | Large Cap Growth Fund |
| COMMON STOCKS (97.6%)* cont. | Shares | Value | |
| Life sciences tools and services (1.7%) | |||
| Danaher Corp. | 371,595 | $102,961,543 | |
| Lonza Group AG (Switzerland) | 114,067 | 76,334,897 | |
| 179,296,440 | |||
| Pharmaceuticals (3.4%) | |||
| AstraZeneca PLC (United Kingdom) | 669,304 | 106,417,234 | |
| Eli Lilly and Co. | 323,693 | 260,336,569 | |
| 366,753,803 | |||
| Professional services (0.6%) | |||
| Equifax, Inc. | 246,243 | 68,792,907 | |
| 68,792,907 | |||
| Real estate management and development (0.5%) | |||
| CoStar Group, Inc.† | 748,277 | 58,380,572 | |
| 58,380,572 | |||
| Semiconductors and semiconductor equipment (17.3%) | |||
| Advanced Micro Devices, Inc.† | 647,220 | 93,510,346 | |
| Analog Devices, Inc. | 211,077 | 48,838,996 | |
| Applied Materials, Inc. | 615,090 | 130,522,098 | |
| Broadcom, Inc. | 2,582,122 | 414,895,363 | |
| NVIDIA Corp. | 10,167,658 | 1,189,819,339 | |
| 1,877,586,142 | |||
| Software (18.3%) | |||
| Cadence Design Systems, Inc.† | 508,236 | 136,034,448 | |
| Fair Isaac Corp.† | 52,660 | 84,256,000 | |
| Microsoft Corp. | 3,156,296 | 1,320,436,432 | |
| Oracle Corp. | 1,008,963 | 140,699,890 | |
| Salesforce, Inc. | 577,533 | 149,465,540 | |
| ServiceNow, Inc.† | 65,624 | 53,443,529 | |
| Synopsys, Inc.† | 184,930 | 103,250,118 | |
| 1,987,585,957 | |||
| Specialized REITs (1.2%) | |||
| American Tower Corp.R S | 607,104 | 133,805,722 | |
| 133,805,722 | |||
| Specialty retail (0.9%) | |||
| O’Reilly Automotive, Inc.† S | 85,270 | 96,043,012 | |
| 96,043,012 | |||
| Technology hardware, storage, and peripherals (11.4%) | |||
| Apple, Inc. | 5,585,435 | 1,240,413,403 | |
| 1,240,413,403 | |||
| Total common stocks (cost $4,288,408,702) | $10,577,155,524 | ||
| SHORT-TERM INVESTMENTS (3.0%)* | Principal amount/shares | Value | |
| Interest in $276,600,000 joint tri-party repurchase agreement dated 7/31/2024 with HSBC Securities (USA), Inc. due 8/1/2024 — maturity value of $71,930,688 for an effective yield of 5.350% (collateralized by Agency Mortgage-Backed Securities with coupon rates ranging from 1.000% to 7.000% and due dates ranging from 1/1/2031 to 6/1/2054, valued at $282,173,929) | $71,920,000 | $71,920,000 | |
| Putnam Cash Collateral Pool, LLC 5.57%d | Shares 23,087,175 | 23,087,175 | |
| Putnam Short Term Investment Fund Class P 5.47%L | Shares 225,783,027 | 225,783,027 | |
| Total short-term investments (cost $320,790,202) | $320,790,202 | ||
| TOTAL INVESTMENTS | ||
| Total investments (cost $4,609,198,904) | $10,897,945,726 | |
| Large Cap Growth Fund | 3 |
| 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 August 1, 2023 through July 31, 2024 (the reporting period). Within the following notes to the portfolio, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s investment manager, an indirect wholly-owned subsidiary of Franklin Resources, Inc., and references to “ASC820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures. | |
| * | Percentages indicated are based on net assets of $10,834,225,564. |
| † | This security is non-income-producing. |
| d | Affiliated company. See Notes 1 and 5 to the financial statements regarding securities lending. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. |
| L | Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. |
| R | Real Estate Investment Trust. |
| S | Security on loan, in part or in entirety, at the close of the reporting period (Note 1). |
| 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*: | ||||
| Communication services | $1,326,222,667 | $— | $— | |
| Consumer discretionary | 1,487,053,162 | — | — | |
| Consumer staples | 53,450,550 | — | — | |
| Financials | 577,059,483 | — | — | |
| Health care | 964,272,878 | — | — | |
| Industrials | 769,436,531 | — | — | |
| Information technology | 5,105,585,502 | — | — | |
| Materials | 101,888,457 | — | — | |
| Real estate | 192,186,294 | — | — | |
| Total common stocks | 10,577,155,524 | — | — | |
| Short-term investments | — | 320,790,202 | — | |
| Totals by level | $10,577,155,524 | $320,790,202 | $— | |
| * | Common stock classifications are presented at the sector level, which may differ from the fund’s portfolio presentation. | |||
The accompanying notes are an integral part of these financial statements.
| 4 | Large Cap Growth Fund |
Financial Statements
Statement of assets and liabilities
7/31/24
| ASSETS | |
| Investment in securities, at value, including $22,354,656 of securities on loan (Note 1): | |
| Unaffiliated issuers (identified cost $4,360,328,702) | $10,649,075,524 |
| Affiliated issuers (identified cost $248,870,202) (Notes 1 and 5) | 248,870,202 |
| Cash | 8,710 |
| Dividends, interest and other receivables | 2,737,235 |
| Foreign tax reclaim | 191,027 |
| Receivable for shares of the fund sold | 5,980,565 |
| Prepaid assets | 95,797 |
| Total assets | 10,906,959,060 |
| LIABILITIES | |
| Payable for investments purchased | 20,370,679 |
| Payable for shares of the fund repurchased | 7,961,391 |
| Payable for compensation of Manager (Note 2) | 9,509,270 |
| Payable for custodian fees (Note 2) | 29,448 |
| Payable for investor servicing fees (Note 2) | 3,490,366 |
| Payable for Trustee compensation and expenses (Note 2) | 1,309,996 |
| Payable for administrative services (Note 2) | 13,659 |
| Payable for distribution fees (Note 2) | 6,240,260 |
| Collateral on securities loaned, at value (Note 1) | 23,087,175 |
| Other accrued expenses | 721,252 |
| Total liabilities | 72,733,496 |
| Net assets | $10,834,225,564 |
| Represented by | |
| Paid-in capital (Unlimited shares authorized) (Notes 1 and 4) | $4,028,782,683 |
| Total distributable earnings (Note 1) | 6,805,442,881 |
| Total — Representing net assets applicable to capital shares outstanding | $10,834,225,564 |
| COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE | |
| Net asset value and redemption price per class A share ($7,236,613,375 divided by 111,843,829 shares) | $64.70 |
| Offering price per class A share (100/94.25 of $64.70)* | $68.65 |
| Net asset value and offering price per class B share ($6,443,435 divided by 132,274 shares)** | $48.71 |
| Net asset value and offering price per class C share ($139,078,686 divided by 2,782,126 shares)** | $49.99 |
| Net asset value, offering price and redemption price per class R share ($17,040,993 divided by 281,206 shares) | $60.60 |
| Net asset value, offering price and redemption price per class R5 share ($5,954,670 divided by 84,775 shares) | $70.24 |
| Net asset value, offering price and redemption price per class R6 share ($894,307,163 divided by 12,704,450 shares) | $70.39 |
| Net asset value, offering price and redemption price per class Y share ($2,534,787,242 divided by 36,474,138 shares) | $69.50 |
| * | 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. |
| Large Cap Growth Fund | 5 |
Statement of operations
Year ended 7/31/24
| Investment income | |
| Dividends (net of foreign tax of $432,644) | $56,909,047 |
| Interest (including interest income of $8,080,852 from investments in affiliated issuers) (Note 5) | 8,934,765 |
| Other income (Note 1) | 390,095 |
| Securities lending (net of expenses) (Notes 1 and 5) | 152,233 |
| Total investment income | 66,386,140 |
| EXPENSES | |
| Compensation of Manager (Note 2) | 48,029,808 |
| Investor servicing fees (Note 2) | 12,874,533 |
| Custodian fees (Note 2) | 101,377 |
| Trustee compensation and expenses (Note 2) | 454,459 |
| Distribution fees (Note 2) | 17,750,775 |
| Administrative services (Note 2) | 261,451 |
| Other | 1,879,978 |
| Fees waived and reimbursed by Manager (Note 2) | (1,968) |
| Total expenses | 81,350,413 |
| Expense reduction (Note 2) | (131,910) |
| Net expenses | 81,218,503 |
| Net investment loss | (14,832,363) |
| REALIZED AND UNREALIZED GAIN (LOSS) | |
| Net realized gain (loss) on: | |
| Securities from unaffiliated issuers (Notes 1 and 3) | 582,880,524 |
| Net increase from payments by affiliates (Note 2) | 5,788 |
| Foreign currency transactions (Note 1) | (19,306) |
| Total net realized gain | 582,867,006 |
| Change in net unrealized appreciation (depreciation) on: | |
| Securities from unaffiliated issuers | 1,824,261,776 |
| Assets and liabilities in foreign currencies | 6,302 |
| Total change in net unrealized appreciation | 1,824,268,078 |
| Net gain on investments | 2,407,135,084 |
| Net increase in net assets resulting from operations | $2,392,302,721 |
The accompanying notes are an integral part of these financial statements.
| 6 | Large Cap Growth Fund |
Statement of changes in net assets
| Year ended 7/31/24 | Year ended 7/31/23 | |
| Increase in net assets | ||
| Operations | ||
| Net investment loss | $(14,832,363) | $(2,221,733) |
| Net realized gain on investments and foreign currency transactions | 582,867,006 | 33,796,104 |
| Change in net unrealized appreciation of investments and assets and liabilities in foreign currencies | 1,824,268,078 | 1,207,242,070 |
| Net increase in net assets resulting from operations | 2,392,302,721 | 1,238,816,441 |
| Distributions to shareholders (Note 1): | ||
| From capital gain on investments | ||
| Net realized long-term gain on investments | ||
| Class A | (31,281,377) | (341,932,281) |
| Class B | (74,853) | (1,668,752) |
| Class C | (760,546) | (8,812,750) |
| Class R | (86,622) | (846,837) |
| Class R5 | (14,571) | (146,282) |
| Class R6 | (3,458,472) | (34,879,002) |
| Class Y | (9,189,869) | (88,324,986) |
| Increase (decrease) from capital share transactions (Note 4) | (171,644,083) | 160,892,832 |
| Total increase in net assets | 2,175,792,328 | 923,098,383 |
| Net assets | ||
| Beginning of year | 8,658,433,236 | 7,735,334,853 |
| End of year | $10,834,225,564 | $8,658,433,236 |
The accompanying notes are an integral part of these financial statements.
| Large Cap Growth Fund | 7 |
Financial highlights
(For a common share outstanding throughout the period)
| INVESTMENT OPERATIONS | LESS DISTRIBUTIONS | RATIOS AND SUPPLEMENTAL DATA | ||||||||||
| Period ended | Net asset value, beginning of period | Net investment income (loss) a | Net realized and unrealized gain (loss) on investments | Total from investment operations | From net realized gain on investments | Total distributions | Net asset value, end of period | Total return at net asset value (%) b | Net assets, end of period (in thousands) | Ratio of expenses to average net assets (%) c | Ratio of net investment income (loss) to average net assets (%) | Portfolio turnover (%) |
| Class A | ||||||||||||
| July 31, 2024 | $50.90 | (.13) | 14.20 | 14.07 | (.27) | (.27) | $64.70 | 27.77 | $7,236,613 | .92 d | (.23) d | 32 |
| July 31, 2023 | 46.78 | (.04) | 7.13 | 7.09 | (2.97) | (2.97) | 50.90 | 16.93 | 6,034,496 | .90 | (.09) | 34 |
| July 31, 2022 | 60.13 | (.23) | (7.80) | (8.03) | (5.32) | (5.32) | 46.78 | (14.92) | 5,527,590 | .92 | (.43) | 44 |
| July 31, 2021 | 48.00 | (.26) | 14.11 | 13.85 | (1.72) | (1.72) | 60.13 | 29.50 | 6,953,705 | .99 | (.50) | 49 |
| July 31, 2020 | 37.72 | (.06) | 11.84 | 11.78 | (1.50) | (1.50) | 48.00 | 32.32 | 5,756,280 | 1.05 | (.15) | 45 |
| Class B | ||||||||||||
| July 31, 2024 | $38.67 | (.39) | 10.70 | 10.31 | (.27) | (.27) | $48.71 | 26.82 | $6,443 | 1.67 d | (.94) d | 32 |
| July 31, 2023 | 36.58 | (.27) | 5.33 | 5.06 | (2.97) | (2.97) | 38.67 | 16.05 | 14,946 | 1.65 | (.83) | 34 |
| July 31, 2022 | 48.48 | (.51) | (6.07) | (6.58) | (5.32) | (5.32) | 36.58 | (15.56) | 25,940 | 1.67 | (1.18) | 44 |
| July 31, 2021 | 39.29 | (.53) | 11.44 | 10.91 | (1.72) | (1.72) | 48.48 | 28.53 | 51,057 | 1.74 | (1.24) | 49 |
| July 31, 2020 | 31.36 | (.29) | 9.72 | 9.43 | (1.50) | (1.50) | 39.29 | 31.36 | 56,457 | 1.80 | (.88) | 45 |
| Class C | ||||||||||||
| July 31, 2024 | $39.68 | (.43) | 11.01 | 10.58 | (.27) | (.27) | $49.99 | 26.82 | $139,079 | 1.67 d | (.98) d | 32 |
| July 31, 2023 | 37.45 | (.29) | 5.49 | 5.20 | (2.97) | (2.97) | 39.68 | 16.05 | 116,157 | 1.65 | (.84) | 34 |
| July 31, 2022 | 49.51 | (.51) | (6.23) | (6.74) | (5.32) | (5.32) | 37.45 | (15.56) | 119,507 | 1.67 | (1.18) | 44 |
| July 31, 2021 | 40.09 | (.54) | 11.68 | 11.14 | (1.72) | (1.72) | 49.51 | 28.53 | 170,111 | 1.74 | (1.24) | 49 |
| July 31, 2020 | 31.98 | (.30) | 9.91 | 9.61 | (1.50) | (1.50) | 40.09 | 31.31 | 177,417 | 1.80 | (.90) | 45 |
| Class R | ||||||||||||
| July 31, 2024 | $47.81 | (.25) | 13.31 | 13.06 | (.27) | (.27) | $60.60 | 27.45 | $17,041 | 1.17 d | (.47) d | 32 |
| July 31, 2023 | 44.24 | (.14) | 6.68 | 6.54 | (2.97) | (2.97) | 47.81 | 16.64 | 14,422 | 1.15 | (.34) | 34 |
| July 31, 2022 | 57.28 | (.34) | (7.38) | (7.72) | (5.32) | (5.32) | 44.24 | (15.14) | 12,524 | 1.17 | (.68) | 44 |
| July 31, 2021 | 45.91 | (.37) | 13.46 | 13.09 | (1.72) | (1.72) | 57.28 | 29.18 | 14,731 | 1.24 | (.74) | 49 |
| July 31, 2020 | 36.23 | (.15) | 11.33 | 11.18 | (1.50) | (1.50) | 45.91 | 31.99 | 15,852 | 1.30 | (.40) | 45 |
| Class R5 | ||||||||||||
| July 31, 2024 | $55.10 | (.01) | 15.42 | 15.41 | (.27) | (.27) | $70.24 | 28.09 | $5,955 | .68 d | (.01) d | 32 |
| July 31, 2023 | 50.24 | .07 | 7.76 | 7.83 | (2.97) | (2.97) | 55.10 | 17.25 | 2,898 | .64 | .16 | 34 |
| July 31, 2022 | 64.06 | (.11) | (8.39) | (8.50) | (5.32) | (5.32) | 50.24 | (14.73) | 2,416 | .68 | (.18) | 44 |
| July 31, 2021 | 50.91 | (.14) | 15.01 | 14.87 | (1.72) | (1.72) | 64.06 | 29.82 | 3,130 | .74 | (.25) | 49 |
| July 31, 2020 | 39.82 | .04 | 12.55 | 12.59 | (1.50) | (1.50) | 50.91 | 32.66 | 2,299 | .78 | .10 | 45 |
| Class R6 | ||||||||||||
| July 31, 2024 | $55.16 | .07 | 15.43 | 15.50 | (.27) | (.27) | $70.39 | 28.22 | $894,307 | .58 d | .11 d | 32 |
| July 31, 2023 | 50.25 | .12 | 7.76 | 7.88 | (2.97) | (2.97) | 55.16 | 17.35 | 700,519 | .54 | .26 | 34 |
| July 31, 2022 | 64.01 | (.04) | (8.40) | (8.44) | (5.32) | (5.32) | 50.25 | (14.65) | 539,847 | .58 | (.08) | 44 |
| July 31, 2021 | 50.83 | (.09) | 14.99 | 14.90 | (1.72) | (1.72) | 64.01 | 29.93 | 630,666 | .64 | (.16) | 49 |
| July 31, 2020 | 39.72 | .08 | 12.53 | 12.61 | (1.50) | (1.50) | 50.83 | 32.80 | 456,204 | .68 | .19 | 45 |
| Class Y | ||||||||||||
| July 31, 2024 | $54.51 | .01 | 15.25 | 15.26 | (.27) | (.27) | $69.50 | 28.11 | $2,534,787 | .67 d | .02 d | 32 |
| July 31, 2023 | 49.75 | .07 | 7.66 | 7.73 | (2.97) | (2.97) | 54.51 | 17.22 | 1,774,996 | .65 | .16 | 34 |
| July 31, 2022 | 63.48 | (.10) | (8.31) | (8.41) | (5.32) | (5.32) | 49.75 | (14.72) | 1,507,510 | .67 | (.18) | 44 |
| July 31, 2021 | 50.46 | (.14) | 14.88 | 14.74 | (1.72) | (1.72) | 63.48 | 29.83 | 1,948,015 | .74 | (.26) | 49 |
| July 31, 2020 | 39.49 | .03 | 12.44 | 12.47 | (1.50) | (1.50) | 50.46 | 32.63 | 1,149,225 | .80 | .08 | 45 |
| 8 | Large Cap Growth Fund |
Financial highlights cont.
| 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. |
| c | Includes amounts paid through expense offset and/or brokerage/service arrangements, if any (Note 2). Also excludes acquired fund fees and expenses, if any. |
| d | Reflects a waiver of certain fund expenses in connection with investments in Putnam Government Money Market Fund during the period. As a result of such waiver, the expenses of the fund reflect a reduction of less than 0.01% as a percentage of average net assets (Notes 2 and 5). |
The accompanying notes are an integral part of these financial statements.
| Large Cap Growth Fund | 9 |
Notes to financial statements 7/31/24
Unless otherwise noted, the “reporting period” represents the period from August 1, 2023 through July 31, 2024. The following table defines commonly used references within the Notes to financial statements:
| References to | Represent |
| 1940 Act | Investment Company Act of 1940, as amended |
| Franklin Advisers | Franklin Advisers, Inc., a direct wholly-owned subsidiary of Franklin Templeton |
| Franklin Distributors | Franklin Distributors, LLC, an indirect wholly-owned subsidiary of Franklin Templeton |
| Franklin Templeton | Franklin Resources, Inc. |
| Franklin Templeton Services | Franklin Templeton Services, LLC, a wholly-owned subsidiary of Franklin Templeton |
| JPMorgan | JPMorgan Chase Bank, N.A. |
| OTC | Over-the-counter |
| PIL | Putnam Investments Limited, an indirect wholly-owned subsidiary of Franklin Templeton |
| Putnam Management | Putnam Investment Management, LLC, the fund’s investment manager, an indirect wholly-owned subsidiary of Franklin Templeton |
| Putnam Retail Management | Putnam Retail Management Limited Partnership, an indirect wholly-owned subsidiary of Franklin Templeton |
| SEC | Securities and Exchange Commission |
| State Street | State Street Bank and Trust Company |
Putnam Large Cap Growth Fund (the fund) is a non-diversified series of Putnam Investment Funds (the Trust), a Massachusetts business trust registered under the 1940 Act as an open-end management investment company. The goal of the fund is to seek capital appreciation. The fund invests mainly in common stocks of large U.S. companies, with a focus on growth stocks. Growth stocks are stocks of companies whose earnings are expected to grow faster than those of similar firms, and whose business growth and other characteristics may lead to an increase in stock price. Putnam Management may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. Under normal circumstances, Putnam Management invests at least 80% of the fund’s net assets (plus the amount of any borrowings for investment purposes) in companies of a size similar to those in the Russell 1000 Growth Index. This policy may be changed only after 60 days’ notice to shareholders. The fund is “non-diversified,” which means it may invest a greater percentage of its assets in fewer issuers than a ”diversified” fund.
The fund offers the following share classes. The expenses for each class of shares may differ based on the distribution and investor servicing fees of each class, which are identified in Note 2.
| Share class | Sales charge | Contingent deferred sales charge | Conversion feature |
| Class A | Up to 5.75% | 1.00% on certain redemptions of shares bought with no initial sales charge | None |
| Class B* | None | 5.00% phased out over six years | Converts to class A shares on September 5, 2024 |
| Class C | None | 1.00% eliminated after one year | Converts to class A shares after 8 years |
| Class R† | None | None | None |
| Class R5 † | None | None | None |
| Class R6 † | None | None | None |
| Class Y† | None | None | None |
| * Purchases of class B shares are closed to new and existing investors except by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment. | |||
| † Not available to all investors. | |||
In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.
The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.
Under the Trust’s Agreement and Declaration of Trust, any claims asserted by a shareholder against or on behalf of the Trust (or its series), including claims against Trustees and Officers, must be brought in courts located within the Commonwealth of Massachusetts.
Note 1: Significant accounting policies
The fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.
Investment income, realized and unrealized gains and losses and expenses of the fund are borne pro-rata based on the relative net assets of each class to the total net assets of the fund, except that each class bears expenses unique to that class (including the distribution fees applicable to such classes). Each class votes as a class only with respect to its own distribution plan or other matters on which a class vote is required by law or determined by the Trustees. If the fund were liquidated, shares of each class would receive their pro-rata share of the net assets of the fund. In addition, the Trustees declare separate dividends on each class of shares.
Security valuation Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees (Trustees). The Trustees have formed a Pricing Committee to oversee the implementation of these procedures. Under compliance policies and procedures approved by the Trustees, the Trustees have designated the fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC). The VC is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Trustees.
Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under Accounting Standards Codification 820 Fair Value Measurements and Disclosures (ASC 820). If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at the average of the last reported bid and ask prices, the “mid price” (prior to June 30, 2024, the most recent bid price was used), 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.
Many securities markets and exchanges outside the U.S. close prior to the scheduled close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value certain foreign
| 10 | Large Cap Growth Fund |
equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. The foreign equity securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. Short-term securities with remaining maturities of 60 days or less are valued using an independent pricing service approved by the Trustees, and are classified as Level 2 securities.
To the extent a pricing service or dealer is unable to value a security or provides a valuation that the fund’s investment manager does not believe accurately reflects the security’s fair value, the security will be valued at fair value by the fund’s investment manager, which has been designated as valuation designee pursuant to Rule 2a–5 under the 1940 Act, 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.
Joint trading account Pursuant to an exemptive order from the SEC, the fund may transfer uninvested cash balances 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 short-term investments having maturities of up to 90 days.
Repurchase agreements The fund, or any joint trading account, through its custodian, receives delivery of the underlying securities, the fair 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, which totaled $73,369,302 at the end of the reporting period, 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. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings.
Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.
Interest income, net of any applicable withholding taxes, if any, is recorded on the accrual basis. Amortization and accretion of premiums and discounts on debt securities, if any, is recorded on the accrual basis.
Dividend income, net of any applicable withholding taxes, is recognized on the ex-dividend date except that certain dividends from foreign securities, if any, are recognized as soon as the fund is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Dividends representing a return of capital or capital gains, if any, are reflected as a reduction of cost and/or as a realized gain.
Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The fair value of foreign securities, currency holdings, and other assets and liabilities is recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when earned or incurred. The fund does not isolate that portion of realized or unrealized gains or losses resulting from changes in the foreign exchange rate on investments from fluctuations arising from changes in the market prices of the securities. Such gains and losses are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net realized exchange gains or losses on disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions and the difference between the amount of investment income and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign currencies arise from changes in the value of assets and liabilities other than investments at the period end, resulting from changes in the exchange rate.
Securities lending The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. Income from securities lending, if any, is net of expenses and is included in investment income on the Statement of operations. Cash collateral is invested in Putnam Cash Collateral Pool, LLC, a limited liability company that is managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. At the close of the reporting period, the fund received cash collateral of $23,087,175 and the value of securities loaned amounted to $22,354,656.
Interfund lending The fund, along with other Putnam funds, may participate in an interfund lending program pursuant to an exemptive order issued by the SEC. This program allows the fund to borrow from or lend to other Putnam funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. Interest earned or paid on the interfund lending transaction will be based on the average of certain current market rates. During the reporting period, the fund did not utilize the program.
Lines of credit The fund participates, along with other Putnam funds, in a $320 million syndicated unsecured committed line of credit, provided by State Street ($160 million) and JPMorgan ($160 million), and a $235.5 million unsecured uncommitted line of credit, provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund’s borrowing at a rate equal to 1.25% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the committed line of credit and 1.30% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the uncommitted line of credit. A closing fee equal to 0.04% of the committed line of credit and 0.04% of the uncommitted line of credit has been paid by the participating funds and a $75,000 fee has been paid by the participating funds to State Street as agent of the syndicated committed line of credit. In addition, a commitment fee of 0.21% per annum on any unutilized portion of the committed line of credit is allocated to the participating funds based on their relative net assets and paid quarterly. During the reporting period, the fund had no borrowings against these arrangements.
Federal taxes It is the policy of the fund to distribute all of its taxable income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.
The fund may also be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. In some cases, the fund may be entitled to reclaim all or a portion of such taxes, and such reclaim amounts, if any, are reflected as an asset and income on the fund’s books. In many cases, however, the fund may not receive such amounts for an extended period of time, depending on the country of investment.
| Large Cap Growth Fund | 11 |
As a result of several court cases, in certain countries across the European Union, the fund filed additional tax reclaims for previously withheld taxes on dividends earned in those countries (EU reclaims). When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the fund , if any, reduce the amount of foreign taxes fund shareholders can use as tax deductions or credits on their income tax returns.
Distributions to shareholders Distributions to shareholders from net investment income, if any, are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences include temporary and/or permanent differences from losses on wash sale transactions and from net operating loss. 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. At the close of the reporting period, the fund reclassified $18,907,121 to decrease accumulated net investment loss and $18,907,121 to decrease accumulated net realized gain.
Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The tax basis components of distributable earnings and the federal tax cost as of the close of the reporting period were as follows:
| Unrealized appreciation | $6,306,898,109 |
| Unrealized depreciation | (29,038,225) |
| Net unrealized appreciation | 6,277,859,884 |
| Undistributed long-term gains | 478,076,460 |
| Undistributed short-term gains | 49,507,240 |
| Cost for federal income tax purposes | $4,620,085,842 |
Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund.
Note 2: Management fee, administrative services and other transactions
The fund pays Putnam Management a management fee (base fee) (based on the fund’s average net assets and computed and paid monthly) at annual rates that may vary based on the average of the aggregate net assets of all open-end mutual funds sponsored by Putnam Management (including open-end funds managed by affiliates of Putnam Management that have been deemed to be sponored by Putnam Managment for this prupose) (excluding net assets of funds that are invested in, or that are invested in by, other Putnam funds to the extent necessary to avoid “double counting” of those assets). Such annual rates may vary as follows:
| 0.710% | of the first $5 billion, |
| 0.660% | of the next $5 billion, |
| 0.610% | of the next $10 billion, |
| 0.560% | of the next $10 billion, |
| 0.510% | of the next $50 billion, |
| 0.490% | of the next $50 billion, |
| 0.480% | of the next $100 billion and |
| 0.475% | of any excess thereafter. |
In addition, the monthly management fee consists of the monthly base fee plus or minus a performance adjustment for the month. The performance adjustment is determined based on performance over the thirty-six month period then ended. Each month, the performance adjustment is calculated by multiplying the performance adjustment rate and the fund’s average net assets over the performance period and dividing the result by twelve. The resulting dollar amount is added to, or subtracted from the base fee for that month. The performance adjustment rate is equal to 0.03 multiplied by the difference between the fund’s annualized performance (measured by the fund’s class A shares) and the annualized performance of the Russell 1000 Growth Index each measured over the performance period. The maximum annualized performance adjustment rate is +/- 0.12%. The monthly base fee is determined based on the fund’s average net assets for the month, while the performance adjustment is determined based on the fund’s average net assets over the thirty-six month performance period. This means it is possible that, if the fund underperforms significantly over the performance period, and the fund’s assets have declined significantly over that period, the negative performance adjustment may exceed the base fee. In this event, Putnam Management would make a payment to the fund.
Because the performance adjustment is based on the fund’s performance relative to its applicable benchmark index, and not its absolute performance, the performance adjustment could increase Putnam Management’s fee even if the fund’s shares lose value during the performance period provided that the fund outperformed its benchmark index, and could decrease Putnam Management’s fee even if the fund’s shares increase in value during the performance period provided that the fund underperformed its benchmark index.
For the reporting period, the management fee represented an effective rate (excluding the impact of any expense waiver in effect) of 0.501% of the fund’s average net assets, which included an effective base fee of 0.545% and a decrease of 0.044% ($4,173,998) based on performance.
Putnam Management has contractually agreed, through November 30, 2025, to waive fees and/or reimburse the fund’s expenses to the extent necessary to limit the cumulative expenses of the fund, exclusive of brokerage, interest, taxes, investment-related expenses, extraordinary expenses, acquired fund fees and expenses and payments under the fund’s investor servicing contract, investment management contract and distribution plans, on a fiscal year-to-date basis to an annual rate of 0.20% of the fund’s average net assets over such fiscal year-to-date period. During the reporting period, the fund’s expenses were not reduced as a result of this limit.
The fund invests in Putnam Government Money Market Fund, an open-end management investment company managed by Franklin Advisers. Management fees paid by the fund are reduced by an amount equal to the management fees paid by Putnam Government Money Market Fund with respect to assets invested by the fund in Putnam Government Money Market Fund. For the reporting period, management fees paid were reduced by $1,968 relating to the fund’s investment in Putnam Government Money Market Fund.
Effective July 15, 2024, Franklin Advisers was retained by Putnam Management as a sub-adviser for the fund pursuant to a new sub-advisory agreement between Putnam Management and Franklin Advisers. Pursuant to the agreement, Franklin Advisers provides certain advisory and related services. Putnam Management pays a monthly fee to Franklin Advisers based on the costs of Franklin Advisers in providing these services to the fund, which may include a mark-up not to exceed 15% over such costs.
PIL is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.25% of the average net assets of the portion of the fund managed by PIL.
On January 1, 2024, a subsidiary of Franklin Templeton acquired Putnam U.S. Holdings I, LLC (“Putnam Holdings”), the parent company of Putnam Management and PIL, in a stock and cash transaction (the “Transaction”). As a result of the Transaction, Putnam Management and PIL became indirect, wholly-owned subsidiaries of Franklin Templeton. The Transaction also resulted in the automatic termination of the investment management contract between the fund and Putnam Management and the sub-management contract for the fund between Putnam Management and PIL that were in place for the fund before the Transaction (together, the “Previous Advisory Contracts”). However, Putnam Management and PIL continued to provide uninterrupted services with respect to the fund pursuant to new investment management and sub-management contracts that were approved by fund shareholders at a shareholder meeting held in connection with the Transaction and that took effect on January 1, 2024 (together, the “New Advisory Contracts”). The terms of the New Advisory Contracts are substantially similar to those of the Previous Advisory Contracts, and the fee rates payable under the New Advisory Contracts are the same as the fee rates under the Previous Advisory Contracts.
Effective June 1, 2024, Franklin Templeton Services provides certain administrative services to the fund. The fee for those services is paid by the fund’s investment manager based on the fund’s average daily net assets and is not an additional expense of the fund.
Putnam Management voluntarily reimbursed the fund $5,788 for a trading error which occurred during the reporting period. The effect of the loss incurred and the reimbursement by Putnam Management of such amount had no material impact on total return.
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.
| 12 | Large Cap Growth Fund |
Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.
Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. received fees for investor servicing for class A, class B, class C, class R and class Y shares that included (1) a per account fee for each direct and underlying non-defined contribution account (retail account) of the fund; (2) a specified rate of the fund’s assets attributable to defined contribution plan accounts; and (3) a specified rate based on the average net assets in retail accounts. Putnam Investor Services, Inc. has agreed that the aggregate investor servicing fees for each fund’s retail and defined contribution accounts for these share classes will not exceed an annual rate of 0.25% of the fund’s average assets attributable to such accounts.
Class R5 shares paid a monthly fee based on the average net assets of class R5 shares at an annual rate of 0.15%.
Class R6 shares paid a monthly fee based on the average net assets of class R6 shares at an annual rate of 0.05%.
During the reporting period, the expenses for each class of shares related to investor servicing fees were as follows:
| Class A | $9,260,844 |
| Class B | 14,743 |
| Class C | 176,950 |
| Class R | 22,669 |
| Class R5 | 5,202 |
| Class R6 | 397,615 |
| Class Y | 2,996,510 |
| Total | $12,874,533 |
The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. For the reporting period, the fund’s expenses were reduced by $131,910 under the expense offset arrangements.
Each Independent Trustee of the fund receives an annual Trustee fee, of which $8,144, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.
The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable from July 1, 1995 through December 31, 2023. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.
The fund has adopted distribution plans (the Plans) with respect to the following share classes pursuant to Rule 12b–1 under the 1940 Act. The purpose of the Plans is to compensate Putnam Retail Management for services provided and expenses incurred in distributing shares of the fund. Effective August 2, 2024, Franklin Distributors will replace Putnam Retail Management as the fund’s distributor and principal underwriter. The Plans provide payments by the fund to Putnam Retail Management at an annual rate of up to the following amounts (Maximum %) of the average net assets attributable to each class. The Trustees have approved payment by the fund at the following annual rate (Approved %) of the average net assets attributable to each class. During the reporting period, the class-specific expenses related to distribution fees were as follows:
| Maximum % | Approved % | Amount | |
| Class A | 0.35% | 0.25% | $16,319,006 |
| Class B | 1.00% | 1.00% | 103,161 |
| Class C | 1.00% | 1.00% | 1,248,776 |
| Class R | 1.00% | 0.50% | 79,832 |
| Total | $17,750,775 |
For the reporting period, Putnam Retail Management, acting as underwriter, received net commissions of $450,022 from the sale of class A shares and received $345 and $5,199 in contingent deferred sales charges from redemptions of class B and class C shares, respectively.
A deferred sales charge of up to 1.00% is assessed on certain redemptions of class A shares. For the reporting period, Putnam Retail Management acting as underwriter, received $1,764 on class A redemptions.
Note 3: Purchases and sales of securities
During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments, were as follows:
| Cost of purchases | Proceeds from sales | |
| Investments in securities (Long-term) | $2,979,213,386 | $3,333,864,144 |
| U.S. government securities (Long-term) | — | — |
| Total | $2,979,213,386 | $3,333,864,144 |
The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales of long-term securities from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.
Note 4: Capital shares
At the close of the reporting period, there were an unlimited number of shares of beneficial interest authorized. Transactions, including, if applicable, direct exchanges pursuant to share conversions, in capital shares were as follows:
| YEAR ENDED 7/31/24 | YEAR ENDED 7/31/23 | |||
| Class A | Shares | Amount | Shares | Amount |
| Shares sold | 3,837,339 | $217,448,021 | 4,479,109 | $193,488,941 |
| Shares issued in connection with reinvestment of distributions | 564,394 | 29,354,184 | 8,066,868 | 320,416,013 |
| 4,401,733 | 246,802,205 | 12,545,977 | 513,904,954 | |
| Shares repurchased | (11,117,741) | (631,556,950) | (12,155,196) | (525,470,258) |
| Net increase (decrease) | (6,716,008) | $(384,754,745) | 390,781 | $(11,565,304) |
| Large Cap Growth Fund | 13 |
| YEAR ENDED 7/31/24 | YEAR ENDED 7/31/23 | |||
| Class B | Shares | Amount | Shares | Amount |
| Shares sold | 3,328 | $138,030 | 4,500 | $149,456 |
| Shares issued in connection with reinvestment of distributions | 1,897 | 74,634 | 54,385 | 1,649,485 |
| 5,225 | 212,664 | 58,885 | 1,798,941 | |
| Shares repurchased | (259,435) | (10,973,614) | (381,540) | (12,695,535) |
| Net decrease | (254,210) | $(10,760,950) | (322,655) | $(10,896,594) |
| YEAR ENDED 7/31/24 | YEAR ENDED 7/31/23 | |||
| Class C | Shares | Amount | Shares | Amount |
| Shares sold | 562,925 | $24,566,915 | 520,406 | $18,068,174 |
| Shares issued in connection with reinvestment of distributions | 18,123 | 731,826 | 268,186 | 8,346,095 |
| 581,048 | 25,298,741 | 788,592 | 26,414,269 | |
| Shares repurchased | (726,317) | (31,474,527) | (1,052,598) | (35,516,033) |
| Net decrease | (145,269) | $(6,175,786) | (264,006) | $(9,101,764) |
| YEAR ENDED 7/31/24 | YEAR ENDED 7/31/23 | |||
| Class R | Shares | Amount | Shares | Amount |
| Shares sold | 92,907 | $4,787,563 | 64,318 | $2,719,055 |
| Shares issued in connection with reinvestment of distributions | 1,775 | 86,622 | 22,661 | 846,837 |
| 94,682 | 4,874,185 | 86,979 | 3,565,892 | |
| Shares repurchased | (115,144) | (6,097,682) | (68,411) | (2,836,395) |
| Net increase (decrease) | (20,462) | $(1,223,497) | 18,568 | $729,497 |
| YEAR ENDED 7/31/24 | YEAR ENDED 7/31/23 | |||
| Class R5 | Shares | Amount | Shares | Amount |
| Shares sold | 61,025 | $4,138,856 | 3,619 | $171,823 |
| Shares issued in connection with reinvestment of distributions | 258 | 14,571 | 3,407 | 146,282 |
| 61,283 | 4,153,427 | 7,026 | 318,105 | |
| Shares repurchased | (29,102) | (1,777,104) | (2,524) | (111,209) |
| Net increase | 32,181 | $2,376,323 | 4,502 | $206,896 |
| YEAR ENDED 7/31/24 | YEAR ENDED 7/31/23 | |||
| Class R6 | Shares | Amount | Shares | Amount |
| Shares sold | 4,873,336 | $301,596,900 | 4,444,142 | $208,047,195 |
| Shares issued in connection with reinvestment of distributions | 58,852 | 3,322,798 | 781,910 | 33,583,020 |
| 4,932,188 | 304,919,698 | 5,226,052 | 241,630,215 | |
| Shares repurchased | (4,926,786) | (310,820,012) | (3,269,184) | (154,214,445) |
| Net increase (decrease) | 5,402 | $(5,900,314) | 1,956,868 | $87,415,770 |
| YEAR ENDED 7/31/24 | YEAR ENDED 7/31/23 | |||
| Class Y | Shares | Amount | Shares | Amount |
| Shares sold | 12,523,942 | $759,655,698 | 10,920,490 | $505,583,711 |
| Shares issued in connection with reinvestment of distributions | 158,921 | 8,863,015 | 1,959,513 | 83,220,521 |
| 12,682,863 | 768,518,713 | 12,880,003 | 588,804,232 | |
| Shares repurchased | (8,769,516) | (533,723,827) | (10,621,377) | (484,699,901) |
| Net increase | 3,913,347 | $234,794,886 | 2,258,626 | $104,104,331 |
| 14 | Large Cap Growth Fund |
Note 5: Affiliated transactions
Transactions during the reporting period with any company which is under common ownership or control were as follows:
| Name of affiliate | Fair value as of 7/31/23 | Purchase cost | Sale proceeds | Investment income | Shares outstanding and fair value as of 7/31/24 |
| Short-term investments | |||||
| Putnam Cash Collateral Pool, LLC* | $243,021,650 | $1,168,903,602 | $1,388,838,077 | $5,490,196 | $23,087,175 |
| Putnam Government Money Market Fund Class G† | — | 43,023,645 | 43,023,645 | 27,505 | — |
| Putnam Short Term Investment Fund Class P‡ | 140,684,570 | 974,851,744 | 889,753,287 | 8,053,347 | 225,783,027 |
| Total Short-term investments | $383,706,220 | $2,186,778,991 | $2,321,615,009 | $13,571,048 | $248,870,202 |
| * No management fees are charged to Putnam Cash Collateral Pool, LLC (Note 1). Investment income shown is included in securities lending income on the Statement of operations. There were no realized or unrealized gains or losses during the period. | |||||
| † Management fees paid by the fund are reduced by an amount equal to the management fees paid by Putnam Government Money Market Fund with respect to assets invested by the fund in Putnam Government Money Market Fund (Note 2). There were no realized or unrealized gains or losses during the period. | |||||
| ‡ Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period. | |||||
Note 6: Market, credit and other risks
In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. Investments in foreign securities involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations.
Note 7: Offsetting of financial and derivative assets and liabilities
The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions or borrowing transactions associated with securities sold short, if any, see Note 1. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.
| HSBC Securities (USA), Inc. | Total | |
| Assets: | ||
| Repurchase agreements** | $71,920,000 | $71,920,000 |
| Total Assets | $71,920,000 | $71,920,000 |
| Liabilities: | ||
| Total Liabilities | $— | $— |
| Total Financial and Derivative Net Assets | $71,920,000 | $71,920,000 |
| Total collateral received (pledged)†## | $71,920,000 | |
| Net amount | $— | |
| Controlled collateral received (including TBA commitments) ** | $— | $— |
| Uncontrolled collateral received | $73,369,302 | $73,369,302 |
| Collateral (pledged) (including TBA commitments) ** | $— | $— |
| ** | Included with Investments in securities on the Statement of assets and liabilities. |
| † | Additional collateral may be required from certain brokers based on individual agreements. |
| ## | Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements. |
| Large Cap Growth Fund | 15 |
Federal tax information (Unaudited)
Pursuant to §852 of the Internal Revenue Code, as amended, the fund hereby designates $527,132,524 as a capital gain dividend with respect to the taxable year ended July 31, 2024, or, if subsequently determined to be different, the net capital gain of such year.
The fund designated $46,745,804 of income eligible as qualifying for the dividends received deduction for corporations.
For the reporting period, the fund hereby designates $53,095,563, or the maximum amount allowable, of its taxable ordinary income earned as qualified dividends taxed at the individual net capital gain rates.
The Form 1099 that will be mailed to you in January 2025 will show the tax status of all distributions paid to your account in calendar 2024.
| 16 | Large Cap Growth Fund |
Changes in and disagreements with accountants
Not applicable
| Results of any shareholder votes (Unaudited) | ||
| December 11, 2023 special meeting | ||
| At the meeting, a new Management Contract for your fund with Putnam Investment Management, LLC was approved, as follows: | ||
| Votes for | Votes against | Abstentions/Votes withheld |
| 74,571,824 | 2,588,797 | 6,843,959 |
| At the meeting, a new Sub-Management Contract for your fund between Putnam Investment Management, LLC and Putnam Investments Limited was approved, as follows: | ||
| Votes for | Votes against | Abstentions/Votes withheld |
| 74,091,922 | 2,884,617 | 7,028,041 |
| All tabulations are rounded to the nearest whole number. | ||
Remuneration paid to directors, officers, and others
Remuneration paid to directors, officers, and others is included in the Notes to financial statements above.
| Large Cap Growth Fund | 17 |
Board approval of management and subadvisory agreements (Unaudited)
At its meeting on June 28, 2024, the Board of Trustees of your fund, including all of the Trustees who are not “interested persons” (as this term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the Putnam mutual funds and exchange-traded funds (collectively, the “funds”) (the “Independent Trustees”) approved a new subadvisory agreement (the “New Subadvisory Agreement”) for your fund between Putnam Investment Management, LLC, your fund’s investment adviser (“Putnam Management”), and Franklin Advisers, Inc. (“Franklin Advisers”). Franklin Advisers and Putnam Management are each indirect, wholly owned subsidiaries of Franklin Resources, Inc. (“Franklin Templeton”).
The Trustees considered the proposed New Subadvisory Agreement in connection with an internal reorganization (the “Reorganization”) whereby the fixed income and Investment Solutions investment operations of Putnam Management were combined with those of Franklin Advisers. Pursuant to the New Subadvisory Agreement, Putnam Management retained Franklin Advisers as sub-adviser for each Putnam equity fund so that, following the Reorganization, the Putnam Management fixed income investment personnel that moved to Franklin Advisers pursuant to the Reorganization (the “Fixed Income Personnel”) could continue to provide certain services that they had historically provided to the Putnam equity funds, including, as applicable, cash management services, currency trading services and portfolio management services (the “Services”). After the Reorganization and the effectiveness of the New Subadvisory Agreement, Putnam Management remains the investment adviser to your fund and the other equity funds pursuant to existing management contracts between the equity funds and Putnam Management (the “Current Management Contracts”), and Putnam Investments Limited (“PIL”) continues to serve as a sub-adviser to your fund and other Putnam funds pursuant to a sub-management contract between Putnam Management and PIL (the “Current Sub-Management Contract”). The Current Management Contracts and Current Sub-Management Contract remain in effect until June 30, 2025, unless the contracts are sooner terminated or continued pursuant to their terms.
In connection with the review process, the Independent Trustees’ independent legal counsel (as that term is defined in Rule 0-1(a)(6)(i) under the 1940 Act) met with representatives of Putnam Management and Franklin Templeton to discuss the contract review materials that would be furnished to the Contract Committee. The Board of Trustees, with the assistance of its Contract Committee (which consists solely of Independent Trustees) and its independent legal counsel, requested and evaluated all information it deemed reasonably necessary under the circumstances in connection with its review of the New Subadvisory Agreement. Over the course of several months ending in June 2024, the Contract Committee met on a number of occasions with representatives of Putnam Management and Franklin Templeton, and separately in executive session, to consider the information provided. Throughout this process, the Contract Committee was assisted by the members of the Board of Trustees’ independent staff and by independent legal counsel for the Independent Trustees.
At the Board of Trustees’ June 2024 meeting, the Contract Committee met in executive session to discuss and consider its recommendations with respect to the approval of the New Subadvisory Agreement. At that meeting, the Contract Committee also met in executive session with the other Independent Trustees to discuss its observations and recommendation.
The Trustees considered that, under the New Subadvisory Agreement, the Fixed Income Personnel would provide any necessary Services to the applicable equity funds in their capacity as employees of Franklin Advisers under generally the same terms and conditions related to the equity funds as such services were previously provided by the Fixed Income Personnel in their capacity as employees of Putnam Management under the Current Management Contracts. The Trustees also considered that Putnam Management would be responsible for overseeing the Services provided to the equity funds by Franklin Advisers under the New Subadvisory Agreement and would compensate Franklin Advisers for such services out of the fees it receives under the Current Management Contracts. The Trustees further noted Putnam Management’s and Franklin Templeton’s representations that Franklin Advisers’ appointment as sub-adviser to the equity funds would not result in any material change in the nature or level of investment advisory services provided to the equity funds and that the management fee rates paid by the equity funds would not increase as a result of the New Subadvisory Agreement. In addition, the Trustees considered that counsel to Franklin Advisers and Putnam Management had provided a legal opinion that shareholder approval of the New Subadvisory Agreement was not required under the 1940 Act.
The Trustees considered that, in connection with their review of your fund’s Current Management Contract and Current Sub-Management Contract over the course of several months ending in June 2023, they had considered information regarding the nature, extent and quality of the services provided to the fund, the fund’s performance, the fund’s management fees and expense ratios, the profitability of Putnam Management and its affiliates in providing services to the fund, whether there had been economies of scale with respect to the management of the fund and other benefits received by Putnam Management and its affiliates as a result of their relationships with the fund. As part of the review process in connection with the consideration of the New Subadvisory Agreement, the Trustees received and reviewed updated information regarding the profitability of Putnam Management and its affiliates, potential economies of scale, other benefits received by Putnam Management and its affiliates as a result of their relationships with the funds, and the performance and expenses of the funds. The Trustees also received, in connection with their review of the New Subadvisory Agreement, certain performance information for Franklin Advisers’ fixed income and Investment Solutions investment strategies and information regarding the revenues, expenses and profitability of Franklin Templeton’s global investment management business and its U.S. registered investment company business, which includes the financial results of Franklin Advisers. Given the scope of the Services to be provided pursuant to the New Subadvisory Agreement, the fact that the New Sub-Advisory Agreement would maintain the current level of services received by your fund, and the fact that the New Subadvisory Agreement would not impact the fees payable by the fund, since Putnam Management would be responsible for the payment of fees under the New Subadvisory Agreement, the Trustees considered, but did not rely to a significant extent on the information provided to them described in this paragraph in connection with their consideration of the New Subadvisory Agreement.
| 18 | Large Cap Growth Fund |
Board of Trustees’ Conclusion
After considering the factors described above, as well as other factors, the Board of Trustees, including all of the Independent Trustees, concluded that the fees payable under the New Subadvisory Agreement represented reasonable compensation in light of the nature and quality of the services that would continue to be provided to the equity funds, and determined to approve the New Subadvisory Agreement for your fund. This conclusion was based on a comprehensive consideration of all information provided to the Trustees and was not the result of any single factor.
| Large Cap Growth Fund | 19 |
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| © 2024 Franklin Templeton. All rights reserved. | 38964-AFSOI 09/24 | |
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Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies. |
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Included in Item 7 above. |
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Item 9. Proxy Disclosure for Open-End Management Investment Companies. |
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Included in Item 7 above. |
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Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. |
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Included in Item 7 above. |
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Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract. |
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Included in Item 7 above. |
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Item 12. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies: |
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Not applicable |
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Item 13. Portfolio Managers of Closed-End Investment Companies |
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Not Applicable |
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Item 14. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers: |
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Not applicable |
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Item 15. Submission of Matters to a Vote of Security Holders: |
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Not applicable |
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Item 16. Controls and Procedures: |
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(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. |
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(b) Changes in internal control over financial reporting: Not applicable |
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Item 17. Disclosures of Securities Lending Activities for Closed-End Investment Companies: |
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Not Applicable |
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Item 18. Recovery of Erroneously Awarded Compensation. |
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(a) No |
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(b) No |
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Item 19. Exhibits: |
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(a)(1) The Code of Ethics of The Putnam Funds and Franklin Templeton are filed herewith |
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(a)(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant’s securities are listed. |
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SIGNATURES |
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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. |
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Putnam Investment Funds |
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By (Signature and Title): |
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/s/ Jeffrey White |
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Jeffrey White |
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Date: September 27, 2024 |
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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. |
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By (Signature and Title): |
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/s/ Jonathan S. Horwitz |
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Jonathan S. Horwitz |
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Date: September 27, 2024 |
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By (Signature and Title): |
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/s/ Jeffrey White |
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Jeffrey White |
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Date: September 27, 2024 |