Putnam Voyager Fund - Putnam Investments

The fund may also be subject to taxes imposed by governments of countries in which it invests. Such taxes aregenerally based on either income or gains earned or repatriated. The fund accrues and applies such taxes to netinvestment income, net realized gains and net unrealized gains as income and/or capital gains are earned. In somecases, the fund may be entitled to reclaim all or a portion of such taxes, and such reclaim amounts, if any, arereflected as an asset on the fund’s books. In many cases, however, the fund may not receive such amounts for anextended period of time, depending on the country of investment.Distributions to shareholders Distributions to shareholders from net investment income are recorded by the fundon the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid atleast annually. The amount and character of income and gains to be distributed are determined in accordance withincome tax regulations, which may differ from generally accepted accounting principles. These differences includetemporary and/or permanent differences from losses on wash sale transactions, foreign currency gains and losses,unrealized gains and losses on passive investment companies, income on swap contracts and partnership income.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 fundreclassified $11,189,522 to decrease undistributed net investment income, $4,615 to decrease paid-in-capital and$11,194,137 to increase accumulated net realized gain.The tax basis components of distributable earnings and the federal tax cost as of the close of the reporting periodwere as follows:Unrealized appreciation $464,937,586Unrealized depreciation (185,299,334)Net unrealized appreciation 279,638,252Undistributed ordinary income 16,579,190Undistributed long-term gain 285,583,723Undistributed short-term gain 216,165,384Cost for federal income tax purposes $4,390,147,898Note 2: Management fee, administrative services and other transactionsThe fund pays Putnam Management a management fee (base fee) (based on the fund’s average net assets andcomputed and paid monthly) at annual rates that may vary based on the average of the aggregate net assets ofmost open-end funds, as defined in the fund’s management contract, sponsored by Putnam Management. Suchannual 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 and0.475 % of any excess thereafter.The fund’s shareholders approved the fund’s current management contract with Putnam Management effectiveFebruary 27, 2014. Shareholders were asked to approve the fund’s management contract following the death onOctober 8, 2013 of The Honourable Paul G. Desmarais, who had controlled directly and indirectly a majority ofthe voting shares of Power Corporation of Canada, the ultimate parent company of Putnam Management. Thesubstantive terms of the management contract, including terms relating to fees, are identical to the terms of thefund’s previous management contract and reflect the rates provided in the table above.In addition, beginning with January 2011, the monthly management fee consists of the monthly base fee plus orminus a performance adjustment for the month. The performance adjustment is determined based on performanceover the thirty-six month period then ended. Each month, the performance adjustment is calculated bymultiplying the performance adjustment rate and the fund’s average net assets over the performance period andthe result is divided by twelve. The resulting dollar amount is added to, or subtracted from the base fee for thatmonth. The performance adjustment rate is equal to 0.03 multiplied by the difference between the fund’s annualizedperformance (measured by the fund’s class A shares) and the annualized performance of the Russell 1000Growth Index, each measured over the performance period. The maximum annualized performance adjustmentrates are +/– 0.12%. The monthly base fee is determined based on the fund’s average net assets for the month, whilethe performance adjustment is determined based on the fund’s average net assets over the performance period ofup to thirty-six months. This means it is possible that, if the fund underperforms significantly over the performanceVoyager Fund47