Putnam Multi-Cap Value Fund - Putnam Investments

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About the fundSeeking undervalued companies before their potential is recognizedHidden opportunities and flexibility arekey ingredients in the strategy of PutnamMulti-Cap Value Fund. The fund’s managerlooks for investment potential in stocksthat are currently out of favor with investors.Introduced in 1999 as Putnam MidCap Value Fund, the fund now has theflexibility to invest in a wider range ofcompanies under its multi-cap valueinvestment mandate.The fund can invest in small companiesthat are in their emerging or expansionaryphases, and these companies can remainin the fund’s portfolio even as they growlarger. Historically, investing in stocks ofsmaller companies comes with the riskof greater price fluctuations. Combiningsmall-cap and mid-cap stocks with thoseof larger, more established companiesprovides a more diversified approach tohelp manage those risks.The fund is managed in the value style,which means the manager seeks stocksthat are attractively priced in relation to thecompany’s earnings and growth potential.A stock price may be low becausethe company is being underestimatedor because its industry is in the midstof a downturn. Often, companies in theportfolio are undergoing changes thatmay lift their stock prices, such as restructuring,introduction of new products, orstreamlining of operations to cut costs.Putnam Multi-Cap Value Fund holdings have spannedindustries over time.Supported by a team of research analysts,the fund’s manager uses his stock-pickingexpertise and Putnam resources to identifyopportunities. Putnam’s analysts generateindependent research and visit regularly withcompanies, seeking information that hasn’talready factored into stock prices.Multi-cap investingat PutnamPutnam’s suite of multi-cap equity fundsis designed to provide a streamlinedapproach to investing across the broaduniverse of U.S. stocks. Each fund investswith a specific style and has the flexibilityto invest in companies of all sizes.The fund managers can select stocksfrom across their style universe, regardlessof company size. The managers canown stocks throughout a company’sentire growth cycle, without capitalizationrestraints that might force them to sellholdings that get too large, or that wouldprevent them from taking advantage ofcertain attractively priced stocks.Supported by a strong research team, themanagers use their stock-picking expertiseto identify opportunities and manage risk.Putnam Multi-Cap Growth Fund targetsstocks of companies that are believed tooffer above-average growth potential.Putnam Multi-Cap Value Fund targetscompanies whose stocks are priced belowtheir long-term potential, and where theremay be a catalyst for positive change.Putnam Multi-Cap Core Fund uses ablend strategy, investing in both growthstocks and value stocks, seeking capitalappreciation for investors.2000ComericaFinancial servicescompany with banklocations in severalU.S. states2001MaytagManufacturer ofkitchen andlaundry appliances2002KelloggLeading producerof cereal andconvenience foods2004BurlingtonNorthern Santa FeProvider of railroadtransportation servicesin North America2007McAfeeProvider ofsoftware securityand services2011The TJXCompaniesAn off-price apparel andhome fashions retailerIdentified holdings were held during the yearindicated; holdings will vary over time. Thefund may not have continued to hold the securityin the portfolio, and may have sold it at aloss. Performance of identified holdings in ayear may not be representative of the fund’sreturns during the same period. Securitiespurchased in the future may not generatesimilar returns. This is not an offer to sell or arecommendation to buy any individual security.For more information on current fundholdings, see pages 24–28.2 Multi-Cap Value Fund Multi-Cap Value Fund 3
PerformancesnapshotAnnualized total return (%) comparison as of 10/31/13The fund — class A shares before sales chargePutnam Multi-Cap Value Fund (PMVAX)Fund’s benchmarkRussell 3000 Value IndexFund’s Lipper peer group averageMulti-Cap Value Funds10.266.067.079.137.88 7.4919.1214.1216.0317.7916.7315.5438.5730.4628.6418.0111.9810.58LIFE OF FUND(since 11/1/99)10 YEARS 5 YEARS 3 YEARS 1 YEAR 6 MONTHS*Current performance may be lower or higher thanthe quoted past performance, which cannot guaranteefuture results. Share price, principal value,and return will fluctuate, and you may have a gainor a loss when you sell your shares. Performance ofclass A shares assumes reinvestment of distributionsand does not account for taxes. Fund returns in thebar chart do not reflect a sales charge of 5.75%; hadthey, returns would have been lower. See pages 5and 11–13 for additional performance information.For a portion of the periods, the fund had expenselimitations, without which returns would havebeen lower. To obtain the most recent month-endperformance, visit putnam.com.* Returns for the six-month period are not annualized,but cumulative.4 Multi-Cap Value Fund
Page 1 and 2: PutnamMulti-CapValue FundFUND SYMBO
Page 3: Message from the TrusteesDear Fello
Page 7 and 8: For the six months overall, the bro
Page 9 and 10: Which individual holdings made the
Page 11 and 12: Please note that the holdings discu
Page 13 and 14: Comparative index returns For perio
Page 15 and 16: Expenses per $1,000The following ta
Page 17 and 18: Other information for shareholdersI
Page 19 and 20: shareholders and Putnam Management
Page 21 and 22: for mutual funds than for instituti
Page 23 and 24: The Trustees considered that the te
Page 25 and 26: The fund’s portfolio 10/31/13 (Un
Page 27 and 28: COMMON STOCKS (96.8%)* cont. Shares
Page 29 and 30: ASC 820 establishes a three-level h
Page 31 and 32: Statement of operations Six months
Page 33 and 34: Financial highlights (For a common
Page 35 and 36: Notes to financial statements 10/31
Page 37 and 38: things, the parties’ general obli
Page 39 and 40: continuance, effective October 8, 2
Page 41 and 42: Six months ended 10/31/13 Year ende
Page 43 and 44: The Putnam family of fundsThe follo
Page 45 and 46: Fund informationFounded over 75 yea

Putnam Multi-Cap Value Fund - Putnam Investments

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