March - Putnam Investments

ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchyis based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are definedas 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 areobservable, 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 inputsInvestments in securities: Level 1 Level 2 Level 3Common stocks*:Basic materials $66,936,823 $5,980,724 $51,140Capital goods 60,746,561 8,100,565 —Communication services 40,288,910 2,280,836 —Conglomerates 18,775,169 817,191 —Consumer cyclicals 132,569,841 17,871,086 —Consumer staples 76,239,549 5,760,718 124,255Energy 87,403,284 3,418,941 2,494Financials 177,627,659 30,277,507 188,206Health care 130,164,585 2,408,824 —Technology 159,993,378 17,833,319 —Transportation 22,211,925 3,984,464 —Utilities and power 30,682,647 3,825,215 —Total common stocks 1,003,640,331 102,559,390 366,095Convertible bonds and notes — 331,614 —Convertible preferred stocks 173,082 162,927 —Corporate bonds and notes — 252,994,897 5Foreign government and agency bonds and notes — 9,434,631 —Investment companies 4,499,329 — —Mortgage-backed securities — 50,871,432 —Municipal bonds and notes — 51,381 —Preferred stocks 240,240 1,080,524 —Purchased options outstanding — 176,526 —Senior loans — 3,277,431 —U.S. government and agency mortgage obligations — 99,390,798 —U.S. treasury obligations — 123,076 —Warrants — 1,723,277 —Short-term investments 341,870,032 39,545,809 —Totals by level $1,350,423,014 $561,723,713 $366,10092 Dynamic Asset Allocation Growth Fund