Dynamic Risk Asset Allocation: Annual Report - Putnam Investments

Statement of operations Year ended 5/31/14INVESTMENT INCOMEDividends (net of foreign tax of $76,834) $2,217,322Interest (net of foreign tax of $9) (including interest income of $40,873 from investmentsin affiliated issuers) (Note 5) 1,534,088Securities lending (Note 1) 491Total investment income 3,751,901EXPENSESCompensation of Manager (Note 2) 1,886,301Investor servicing fees (Note 2) 415,598Custodian fees (Note 2) 122,824Trustee compensation and expenses (Note 2) 13,872Distribution fees (Note 2) 333,512Administrative services (Note 2) 5,394Other 198,423Fees waived and reimbursed by Manager (Note 2) (212,582)Total expenses 2,763,342Expense reduction (Note 2) (2,866)Net expenses 2,760,476Net investment income 991,425Net realized gain on investments (Notes 1 and 3) 6,546,961Net realized gain on swap contracts (Note 1) 1,994,381Net realized loss on futures contracts (Note 1) (971,414)Net realized loss on foreign currency transactions (Note 1) (1,477,012)Net realized loss on written options (Notes 1 and 3) (354,091)Net unrealized appreciation of assets and liabilities in foreign currencies during the year 906,784Net unrealized appreciation of investments, futures contracts, swap contracts, and writtenoptions during the year 10,378,102Net gain on investments 17,023,711Net increase in net assets resulting from operations $18,015,136The accompanying notes are an integral part of these financial statements.66 Dynamic Risk Allocation Fund