March - Putnam Investments

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Putnam DynamicAsset AllocationGrowth FundSemiannual report3 | 31 | 14Message from the Trustees 1About the fund 2Performance snapshot 4Interview with your fund’s portfolio manager 5Your fund’s performance 11Your fund’s expenses 13Terms and definitions 15Other information for shareholders 16Trustee approval of management contract 17Financial statements 24Shareholder meeting results 118Consider these risks before investing: International investing involves currency, economic,and political risks. Emerging-market securities carry illiquidity and volatility risks.Investments in small and/or midsize companies increase the risk of greater price fluctuations.Lower-rated bonds may offer higher yields in return for more risk. Funds that invest ingovernment securities are not guaranteed. Mortgage-backed securities are subject toprepayment risk and the risk that they may increase in value less when interest rates declineand decline in value more when interest rates rise. Our allocation of assets among permittedasset categories may hurt performance. Growth stocks may be more susceptible to earningsdisappointments, and value stocks may fail to rebound. Bond investments are subject tointerest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk ofan issuer defaulting on interest or principal payments). Interest-rate risk is greater for longertermbonds, and credit risk is greater for below-investment-grade bonds. Risks associatedwith derivatives include increased investment exposure (which may be considered leverage)and, in the case of over-the-counter instruments, the potential inability to terminate or sellderivatives positions and the potential failure of the other party to the instrument to meet itsobligations. Unlike bonds, funds that invest in bonds have fees and expenses. Stock and bondprices may fall or fail to rise over time for several reasons, including general financial marketconditions and factors related to a specific issuer or industry. You can lose money byinvesting in the fund.
Message from the TrusteesDear Fellow Shareholder:While U.S. stocks and bonds have generally delivered modest returns so far in 2014, volatilityhas become more pronounced, driven in the early months of the year by unusually cold weatherconditions, shifting expectations for U.S. Federal Reserve action, and rising geopolitical fears.Still, evidence exists that global economic growth is slowly strengthening, and we believe theUnited States, Europe, and Japan are poised to contribute to an extended recovery.In our view, portfolio diversification becomes extraordinarily important in this kind ofenvironment. Putnam’s active research and investment strategies can serve investors who arepursuing income and capital appreciation goals.We are pleased to report that Putnam continues to garner recognition in the mutual fundindustry. For 2013, Barron’s ranked Putnam second among 64 mutual fund families based ontotal returns across asset classes. Over the longer term of five years ended in December 2013,Putnam also ranked second out of 55 fund families.We believe Putnam’s sound investment strategies can provide benefits to your portfolio.An experienced advisor can help you assess your individual needs, time horizon, and risktolerance — and can help guide you toward your investment goals.As always, thank you for investing with Putnam.Respectfully yours,Robert L. ReynoldsPresident and Chief Executive OfficerPutnam InvestmentsJameson A. BaxterChair, Board of TrusteesMay 9, 2014How Barron’s ranked the fund families:The Barron’s/Lipper Fund Family Ranking published February 8, 2014, ranked Putnam 1 out of 61 for 2009, 14 out of57 for 2010, 57 out of 58 for 2011, 1 out of 62 for 2012, and 2 out of 64 for 2013 for the 1-year period with funds in fivecategories: U.S. equity, world equity, mixed asset, taxable bond, and tax-exempt bond. Putnam ranked 43 out of54 and 46 out of 48 for the 5- and 10-year periods ending 2009, 41 out of 53 and 38 out of 46 for the 5- and 10-yearperiods ending 2010, 49 out of 53 and 41 out of 45 for the 5- and 10-year periods ending 2011, 27 out of 53 and36 out of 46 for the 5- and 10-year periods ending 2012, and 2 out of 55 and 32 out of 48 for the 5- and 10-yearperiods ending 2013, respectively. Only funds with at least one year of performance were included. Returns werecalculated minus the effects of sales charges and 12b-1 fees. Rankings were asset weighted, so larger funds had agreater impact on a fund family’s overall ranking, and then weighted by category, with each category assigned apercentage. Past performance is not indicative of future results. Barron’s is a registered trademark of Dow Jones &Company. Lipper ranked Putnam Dynamic Asset Allocation Growth Fund 6% (30/581), 3% (14/487), and 15%(44/305) for the 1-, 3-, and 5-year periods, respectively, as of 3/31/14 in the Mixed-Asset Target Allocation GrowthFunds category. Lipper rankings for class A shares are based on total return without sales charge relative to all shareclasses of funds with similar objectives as determined by Lipper.
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Page 8 and 9: “The U.S. economy has been stucki
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Page 16 and 17: Terms and definitionsImportant term
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Page 22 and 23: fees and total expenses (excluding
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Page 26 and 27: The fund’s portfolio 3/31/14 (Una
Page 28 and 29: COMMON STOCKS (60.9%)* cont. Shares
Page 46 and 47: CORPORATE BONDS AND NOTES (13.9%)*
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CORPORATE BONDS AND NOTES (13.9%)*
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MORTGAGE-BACKED SECURITIES (2.8%)*
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MORTGAGE-BACKED SECURITIES (2.8%)*
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FOREIGN GOVERNMENT AND AGENCYBONDS
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Key to holding’s currency abbrevi
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FORWARD CURRENCY CONTRACTS at 3/31/
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FORWARD CURRENCY CONTRACTS at 3/31/
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CENTRALLY CLEARED INTEREST RATE SWA
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OTC TOTAL RETURN SWAP CONTRACTS OUT
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OTC CREDIT DEFAULT CONTRACTS OUTSTA
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Valuation inputsOther financial ins
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Statement of assets and liabilities
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Statement of changes in net assetsI
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Financial highlights (Continued)Rat
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securities under Accounting Standar
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Futures contracts are valued at the
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the other party may elect to termin
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Note 2: Management fee, administrat
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Note 3: Purchases and sales of secu
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At the close of the reporting perio
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The following is a summary of reali
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Shareholder meeting results (Unaudi
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Absolute ReturnAbsolute Return 100
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Putnam’s commitmentto confidentia
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This report is for the information
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March - Putnam Investments

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