Dynamic Risk Asset Allocation: Annual Report - Putnam Investments

Statement of changes in net assetsINCREASE (DECREASE) IN NET ASSETS Year ended 5/31/14 Year ended 5/31/13Operations:Net investment income $991,425 $340,893Net realized gain on investmentsand foreign currency transactions 5,738,825 1,428,133Net unrealized appreciation of investments and assetsand liabilities in foreign currencies 11,284,886 8,777,214Net increase in net assets resulting from operations 18,015,136 10,546,240Distributions to shareholders (Note 1):From ordinary incomeNet investment incomeClass A (256,283) (819,727)Class B (4,243) (36,913)Class C — (201,447)Class M (628) (1,835)Class R (2,406) (6,777)Class R5 (109) (199)Class R6 (24,169) (204)Class Y (1,370,389) (2,678,694)Net realized short-term gain on investmentsClass A — (767,685)Class B — (37,957)Class C — (201,655)Class M — (3,701)Class R — (6,284)Class R5 — (179)Class R6 — (179)Class Y — (2,221,925)From net realized long-term gain on investmentsClass A — (149,066)Class B — (7,370)Class C — (39,157)Class M — (719)Class R — (1,220)Class R5 — (35)Class R6 — (35)Class Y — (431,448)Increase (decrease) from capital share transactions (Note 4) (75,119,062) 118,377,574Total increase (decrease) in net assets (58,762,153) 121,309,403NET ASSETSBeginning of year 248,897,395 15,000,000End of year (including undistributed net investment incomeand distributions in excess of net investment income $93,318and $269,096, respectively) $190,135,242 $248,897,395The accompanying notes are an integral part of these financial statements.Dynamic Risk Allocation Fund67