March - Putnam Investments

Financial statementsA guide to financial statementsThese sections of the report, as well as theaccompanying Notes, constitute the fund’sfinancial statements.The fund’s portfolio lists all the fund’s investmentsand their values as of the last day ofthe reporting period. Holdings are organizedby asset type and industry sector, country,or state to show areas of concentrationand diversification.Statement of assets and liabilities shows howthe fund’s net assets and share price are determined.All investment and non-investmentassets are added together. Any unpaid expensesand other liabilities are subtracted from this total.The result is divided by the number of shares todetermine the net asset value per share, whichis calculated separately for each class of shares.(For funds with preferred shares, the amountsubtracted from total assets includes theliquidation preference of preferred shares.)Statement of operations shows the fund’s netinvestment gain or loss. This is done by firstadding up all the fund’s earnings — from dividendsand interest income — and subtractingits operating expenses to determine net investmentincome (or loss). Then, any net gain or lossthe fund realized on the sales of its holdings — aswell as any unrealized gains or losses over theperiod — is added to or subtracted from the netinvestment result to determine the fund’s netgain or loss for the fiscal period.Statement of changes in net assets shows howthe fund’s net assets were affected by the fund’snet investment gain or loss, by distributions toshareholders, and by changes in the number ofthe fund’s shares. It lists distributions and theirsources (net investment income or realizedcapital gains) over the current reporting periodand the most recent fiscal year-end. The distributionslisted here may not match the sourceslisted in the Statement of operations becausethe distributions are determined on a tax basisand may be paid in a different period fromthe one in which they were earned. Dividendsources are estimated at the time of declaration.Actual results may vary. Any non-taxablereturn of capital cannot be determined untilfinal tax calculations are completed after theend of the fund’s fiscal year.Financial highlights provide an overview of thefund’s investment results, per-share distributions,expense ratios, net investment incomeratios, and portfolio turnover in one summarytable, reflecting the five most recent reportingperiods. In a semiannual report, the highlightstable also includes the current reporting period.24 Dynamic Asset Allocation Growth Fund