Dynamic Risk Asset Allocation: Annual Report - Putnam Investments

Financial highlights (For a common share outstanding throughout the period)INVESTMENT OPERATIONS: LESS DISTRIBUTIONS: RATIOS AND SUPPLEMENTAL DATA:Period endedÂClass AÂNet assetvalue,beginningof periodÂNet realizedand unrealizedNet investment gain (loss)income (lossÂ) a on investmentsÂTotal frominvestmentoperationsÂFromnet investmentincomeÂFromnet realized gainon investmentsÂTotaldisÂtriÂbutionsÂNet assetvalue, endof periodÂNet assets, Total returnvalue (%Â) b (in thousandsÂ)at net asset end of period(%Â) c,d (%Â) d (%Â)Ratioof expensesto averagenet assetsRatio of netinvestmentincome (loss)to averagenet assetsPortfolioturnoverMay 31, 2014 $10.63 .04 .98 1.02 (.07Â) — (.07Â) $11.58 9.59 $33,884 1.40 .33 117 eMay 31, 2013 10.24 .01 .81 .82 (.20Â) (.23Â) (.43Â) 10.63 7.97 68,440 1.40 .06 40 eMay 31, 2012† 10.00 (.02Â) .39 .37 (.09Â) (.04Â) (.13Â) 10.24 3.77Â* 38,666 .98Â* (.22Â) * 41Â*Class BÂMay 31, 2014 $10.53 (.03Â) .95 .92 (.01Â) — (.01Â) $11.44 8.78 $3,705 2.15 (.32Â) 117 eMay 31, 2013 10.20 (.07Â) .81 .74 (.18Â) (.23Â) (.41Â) 10.53 7.22 2,852 2.15 (.61Â) 40 eMay 31, 2012† 10.00 (.07Â) .38 .31 (.07Â) (.04Â) (.11Â) 10.20 3.19Â* 727 1.50Â* (.68Â) * 41Â*Class CÂMay 31, 2014 $10.51 (.04Â) .97 .93 — — — $11.44 8.85 $16,325 2.15 (.38Â) 117 eMay 31, 2013 10.19 (.06Â) .80 .74 (.19Â) (.23Â) (.42Â) 10.51 7.18 21,015 2.15 (.57Â) 40 eMay 31, 2012† 10.00 (.07Â) .38 .31 (.08Â) (.04Â) (.12Â) 10.19 3.21Â* 3,151 1.50Â* (.66Â) * 41Â*Class MÂMay 31, 2014 $10.66 (.01Â) .97 .96 (.02Â) — (.02Â) $11.60 9.03 $339 1.90 (.09Â) 117 eMay 31, 2013 10.21 (.05Â) .82 .77 (.09Â) (.23Â) (.32Â) 10.66 7.52 358 1.90 (.47Â) 40 eMay 31, 2012† 10.00 (.06Â) .39 .33 (.08Â) (.04Â) (.12Â) 10.21 3.39Â* 363 1.33Â* (.60Â) * 41Â*Class RÂMay 31, 2014 $10.59 .02 .97 .99 (.06Â) — (.06Â) $11.52 9.34 $484 1.65 .17 117 eMay 31, 2013 10.23 (.01Â) .80 .79 (.20Â) (.23Â) (.43Â) 10.59 7.70 458 1.65 (.11Â) 40 eMay 31, 2012† 10.00 (.05Â) .40 .35 (.08Â) (.04Â) (.12Â) 10.23 3.59Â* 102 1.15Â* (.45Â) * 41Â*Class R5ÂMay 31, 2014 $10.68 .07 .98 1.05 (.11Â) — (.11Â) $11.62 9.91 $12 1.15 .67 117 eMay 31, 2013†† 10.56 .03 .53 .56 (.21Â) (.23Â) (.44Â) 10.68 5.26Â* 11 1.05Â* .25Â* 40 eClass R6ÂMay 31, 2014 $10.68 .07 .98 1.05 (.12Â) — (.12Â) $11.61 9.93 $2,055 1.11 .68 117 eMay 31, 2013†† 10.56 .08 .49 .57 (.22Â) (.23Â) (.45Â) 10.68 5.31Â* 2,713 1.05Â* .63Â* 40 eClass YÂMay 31, 2014 $10.65 .07 .98 1.05 (.11Â) — (.11Â) $11.59 9.87 $133,332 1.15 .64 117 eMay 31, 2013 10.26 .03 .82 .85 (.23Â) (.23Â) (.46Â) 10.65 8.21 153,051 1.15 .32 40 eMay 31, 2012† 10.00 .01 .38 .39 (.09Â) (.04Â) (.13Â) 10.26 4.02Â* 84,578 .80Â* .11Â* 41Â*See notes to financial highlights at the end of this section.The accompanying notes are an integral part of these financial statements.68 Dynamic Risk Allocation Fund Dynamic Risk Allocation Fund69