Putnam Global Technology Fund

kettleproduceSoftware and s/w Development

Dec 2, 2013 (4 years and 5 months ago)


invests in stocks of technology
companies worldwide.
Global Technology
Annual report
8 | 31 | 13
Global Technology
Annual report
Message from the Trustees
About the fund
Performance snapshot
Interview with your fund’s portfolio managers
Your fund’s performance
Your fund’s expenses
Terms and defi nitions
Other information for shareholders
Important notice regarding Putnam’s privacy policy
Trustee approval of management contract
Financial statements
Federal tax information
About the Trustees
Consider these risks before investing: International investing involves currency, economic,
and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments
in small and/or midsize companies increase the risk of greater price fl uctuations. The tech-
nology industries may be aff ected by technological obsolescence, short product cycles, falling
prices and profi ts, competitive pressures, and general market conditions. The fund concen-
trates on a limited group of industries and is non-diversifi ed. Because the fund may invest in
fewer issuers, it is vulnerable to common economic forces and may result in greater losses and
volatility. Growth stocks may be more susceptible to earnings disappointments, and value
stocks may fail to rebound. The use of short selling may result in losses if the securities appre-
ciate in value. Risks associated with derivatives include increased investment exposure (which
may be considered leverage) and, in the case of over-the-counter instruments, the potential
inability to terminate or sell derivatives positions and the potential failure of the other party to
the instrument to meet its obligations. Stock prices may fall or fail to rise over time for several
reasons, including general fi nancial market conditions and factors related to a specifi c issuer
or industry. You can lose money by investing in the fund.
Message from the Trustees
Dear Fellow Shareholder:
Investors have been digesting a wide array of economic and geopolitical developments
in recent months. While economic growth has continued despite the negative impact of
the federal budget sequester, the Federal Reserve’s expected tapering of its $85 billion-a-
month bond-buying program has prompted greater market volatility, and bond yields have
risen substantially.
There is concern that the reduction of Fed purchases will cause long-term interest rates
to move higher, running the risk of curtailing the recovery. Already, mortgage rates have
jumped and housing market data appear less robust than earlier in the year. Overseas,
instability in Egypt and Syria has contributed to higher oil prices, which could undermine the
reasonably positive trends in consumer spending. Fortunately, the eurozone posted positive
GDP growth in the second calendar quarter after many months of contraction, though the
17-nation currency bloc continues to grapple with signifi cant economic challenges.
While we cannot forecast with precision how economic or geopolitical events will unfold
over the coming months, we have confi dence that a long-term investment program remains
valuable. Putnam’s in-depth fundamental research, active investing, and risk management
strategies can serve investors well through changing markets. To address a diverse range
of fi nancial goals, Putnam’s investment professionals integrate innovative thinking with
traditional and alternative approaches.
We also believe in the importance of relying on the guidance of a professional advisor who
can help you develop a fi nancial plan suited to your goals and risk tolerance.
We would like to welcome new shareholders of the fund and to thank you for investing with
Putnam. We would also like to extend our thanks to Elizabeth Kennan, who recently retired
from the Board of Trustees, for her 20 years of dedicated service.
Respectfully yours,
Robert L. Reynolds
President and Chief Executive Offi cer
Putnam Investments
Jameson A. Baxter
Chair, Board of Trustees
October 9, 2013
Most areas of the economy are infl uenced
by technology — from emerging companies
with revolutionary new products to
traditional businesses dependent on tech-
nological innovation. The fund’s managers,
with support from analysts in Putnam’s
Global Equity Research group, look across
industries to fi nd stocks that can help inves-
tors build wealth over time. Companies in
the portfolio may range from computer
hardware, software, storage, and security to
technology consulting and Internet services.
Number of Internet
users surpasses
one billion
Global sales of
eclipse those
of PCs
Sector investing at Putnam
In recent decades, innovation and
business growth have propelled stocks
in diff erent industries to market-leading
performance. Finding these stocks, many
of which are in international markets,
requires rigorous research and in-depth
knowledge of global markets.
Putnam’s sector funds invest in nine sectors
worldwide and off er active management,
risk controls, and the expertise of dedicated
sector analysts. The funds’ managers invest
with fl exibility and precision, using funda-
mental research to hand select stocks for
the portfolios.
All sectors in one fund:
Putnam Global Sector Fund
A portfolio of individual Putnam Global Sector
Funds that provides exposure to all sectors of
the MSCI World Index.
Individual sector funds:
Global Consumer Fund
Retail, hotels, restaurants, media, food
and beverages
Global Energy Fund
Oil and gas, energy equipment and services
Global Financials Fund
Commercial banks, insurance, diversifi ed
fi nancial services, mortgage fi nance
Global Health Care Fund
Pharmaceuticals, biotechnology,
health-care services
Global Industrials Fund
Airlines, railroads, trucking, aerospace and
defense, construction, commercial services
Global Natural Resources Fund
Metals, chemicals, oil and gas, forest products
Global Technology Fund
Software, computers, Internet services
Global Telecommunications Fund
Diversifi ed and wireless telecommunications
Global Utilities Fund
Electric, gas, and water utilities
About the fund
Pursuing growth opportunities in technology companies worldwide
In 1937, the year Putnam Investments was
founded, a law student named Chester
Carlson developed an innovative process
for reproducing words on a page in just
minutes. Despite the usefulness of his
invention, he had a diffi cult time fi nding
investors for his photocopier — which did
not become commercially available until
the Xerox Corporation began selling it in
1950. Successful investing, particularly in
the technology sector, requires the ability
to identify the value of a product, service,
or business, and to capitalize on its
long-term growth potential.
The magnitude of technological advances
since Mr. Carlson invented his photocopier
is astounding. Putnam Global Technology
Fund seeks to capitalize on the potential of
this sector — and the many innovations
that are still to come. The fund combines
the growth potential of technology stocks
with Putnam’s investment expertise,
research capabilities, and global reach.
The fund can invest worldwide in small
entrepreneurial fi rms, midsize companies
with signifi cant market share in new
industries, and well-established giants
with years of profi tability.
Developments and events that have aff ected the technology sector
The integrated circuit
is introduced; also known
as a “chip,” it revolu-
tionizes the world of
IBM introduces
the fi rst memory
disc, an 8-inch
plastic disc called
“fl oppy” because
of its fl exibility
TIME magazine
names the computer
“Machine of the Year”;
a year earlier, IBM had
introduced the PC
Tim Berners-Lee
builds the fi rst
Internet browser,
the World Wide Web
The fund’s 2008 inception post-dates many of these developments.
2 Global Technology Fund Global Technology Fund 3
Current performance may be lower or higher than the
quoted past performance, which cannot guarantee
future results. Share price, principal value, and return
will fl uctuate, and you may have a gain or a loss when
you sell your shares. Performance of class A shares
assumes reinvestment of distributions and does not
account for taxes. Fund returns in the bar chart do not
refl ect a sales charge of 5.75%; had they, returns would
have been lower. See pages 5 and 11–13 for additional
performance information. For a portion of the periods,
the fund had expense limitations, without which returns
would have been lower. To obtain the most recent
month-end performance, visit putnam.com.
(since 12/18/08)
The fund — class A shares before sales charge
Putnam Global Technology Fund (PGTAX)
Fund’s benchmark
MSCI World Information Technology Index (ND)
Annualized total return (%) comparison as of 8/31/13
4 Global Technology Fund
What was the investment environment like
during the 12-month reporting period, and
how did the fund perform?
Brian: The heightened anxiety that
dominated the market environment during
the fi rst half of the reporting period began
to wane during the second half. The United
States, which faced uncertainty about the
fi scal cliff in the fourth quarter of 2012,
achieved resolution on the issue in early
2013, with Congress approving a bipar-
tisan deal that provided greater clarity for
the tax landscape. The United States also
saw improving economic data, supporting
recovery in the housing and manufacturing
sectors, and an upward trend in GDP growth.
In the second quarter, however, markets
became more volatile, as Fed Chairman Ben
Bernanke began talking about the possible
tapering of quantitative easing.
Di: Meanwhile overseas, concerns about
China’s economic growth emerged. In
addition, Japan’s new government and
its central bank adopted an aggressive
monetary-easing stance, which temporarily
complicated the international demand
environment for technology companies. By
July of this year, economic data from China
indicated growth in its manufacturing and
exports. The fi scal situation in Europe also
stabilized. By the second quarter of 2013, the
eurozone economy shifted to growth, ending
18 consecutive months of recession.
This comparison shows your fund’s performance in the context of broad market indexes for the
12 months ended 8/31/13. See pages 4 and 11–13 for additional fund performance information. Index
descriptions can be found on page 15.
Broad market index and fund performance
U.S. stocks (S&P 500 Index)
Fund’s benchmark
(MSCI World Information Technology Index (ND))
Putnam Global Technology Fund
(class A shares before sales charge)
(BofA Merrill Lynch U.S. 3-Month Treasury Bill Index)
U.S. bonds (Barclays U.S. Aggregate Bond Index)
Interview with
your fund’s
portfolio managers
Global Technology Fund 5
Di Yao
Brian T. Hertzog
6 Global Technology Fund
In the international market, the combination of
elevated hope for Japan’s “Abenomics” — so
named for new Prime Minister Shinzō Abe —
and a concern that emerging markets may
continue to weaken due to Fed tapering, has
led to a rally in Japan’s equity market, where
the portfolio was underweight relative to the
benchmark during the reporting period.
Brian: The technology sector, which typically
performs well in rising markets, underper-
formed in the past year, relative to other
sectors in the S&P 500 Index. Struggles for
the sector were evident in the fourth quarter.
With uncertainty about the tax landscape,
businesses held back on technology spending
in the fourth quarter. Investors concerned
about higher taxes may have opted to take
profi ts in 2012, which could have contributed
to a sell-off of certain stocks, such as Apple,
our biggest position in the fund during the
period. Our position in Apple had a negative
impact on the fund’s overall performance.
For the reporting period, the fund under-
performed its benchmark, the MSCI World
Information Technology Index (ND).
What trends are you monitoring in the
technology sector?
Brian: Global mobile Internet adoption
continues to be a major theme, illustrated
by the rapid growth of smartphones. The
way that people consume content today is
signifi cantly diff erent than in the past. The
proliferation of broadband wireless tech-
nology and powerful mobile computing
devices allow people to be more produc-
tive whether they are at work, home, or
traveling. Our investment in Apple represents
this theme in the portfolio. Apple’s mobile
platform enables a virtuous cycle of high-
quality applications that has attracted more
and more customers, which in turn incentiv-
izes developers to make more and better
applications. We believe Apple has built a
long-term sustainable competitive advantage
Global composition
United States 84.8%
Japan 3.5
Taiwan 2.8
South Korea 2.4
Germany 1.9
Sweden 1.3
Russia 1.1
China 0.7
Netherlands 0.5
Short-term investments
and net other assets 1.0
Allocations are shown as a percentage of the fund’s net assets as of 8/31/13. Short-term
investments and net other assets, if any, represent the market value weights of cash, derivatives,
short-term securities, and other unclassifi ed assets in the portfolio. Summary information may
diff er from the information in the portfolio schedule notes included in the fi nancial statements due
to the inclusion of derivative securities, any interest accruals, and the exclusion of as-of trades, if
any. Holdings and allocations may vary over time.
Global Technology Fund 7
and a loyal customer base that anticipates its
new and improved products.
On the networking theme, DISH Network
has supplemented its core pay-TV business
by accumulating a portfolio of wireless
spectrum assets. Spectrum is the infrastruc-
ture or “highway” for wireless services. As
more people use powerful wireless devices
and bandwidth-intensive applications, they
require more capacity and, as a result, more
spectrum. While traditional wireless service
providers have a diffi cult time keeping up
with spectrum requirements, we believe DISH
holds an undervalued asset that will likely
become more valuable over time.
A third theme that we monitor is the health
of traditional personal computer companies.
The fund has held underweight positions in
vendors such as Microsoft, Intel, Hewlett-
Packard, and other companies that have done
well recently. But in our view, the fundamen-
tals for traditional desktop and notebook
computing continue to weaken as consumers
switch to the convenience of mobile devices.
As a result, we no longer hold positions in
certain of these companies such as Intel
and Hewlett-Packard.
Cloud computing is another technology trend
we are following. Delivering applications via
shared infrastructure rather than an individu-
ally supported hardware and software model
makes sense considering the ubiquitous
availability of broadband. We believe that the
fund’s position in Red Hat, an infrastructure
provider for companies that want to off er

Technology is rapidly enabling
powerful trends that enhance
people’s daily productivity during a
time when valuations are near historic
lows in the sector.

Di Yao
Top 10 holdings
HOLDING (percentage of fund’s net assets) COUNTRY OVER/UNDERWEIGHT VS. BENCHMARK
Apple, Inc. (20.1%) United States
Qualcomm, Inc. (7.8%) United States
Microsoft Corp. (7.7%) United States
Google, Inc. (5.9%) United States
DISH Network Corp. (4.9%) United States
Visa, Inc. (4.2%) United States
Oracle Corp. (4.1%) United States
Red Hat, Inc. (3.5%) United States
Facebook, Inc. (3.2%) United States
Polycom, Inc. (2.9%) United States
This table shows the fund’s top 10 holdings by percentage of the fund’s net assets as of 8/31/13.
Short-term holdings and derivatives, if any, are excluded. Holdings may vary over time.
8 Global Technology Fund
cloud-computing services, is well positioned
for this trend.
Di: On the component side, the DRAM
[dynamic random-access memory] industry
is going through structural changes. Unlike
static memory, DRAM is dynamic and has a
capacity for higher density. On the supply
side, the industry has consolidated into three
major players. Because this segment requires
signifi cant investment in equipment for the
manufacturing process, the development of
excess capacity is limited. On the demand
side, growth drivers are quickly moving from
commodity personal computer DRAM to
more customized mobile and server DRAM.
We believe the pricing power will move to
DRAM makers.
How did the fund use derivatives during the
reporting period?
Brian: During the period, the fund used
currency forward contracts to hedge
currency exposure that is generated through
international positions.
What are some of the holdings that
contributed to fund performance?
Brian: DISH was the top contributor to fund
performance. We believe the undervalued
piece of the company’s story is that its
spectrum assets are likely to become increas-
ingly valuable. There is also speculation
that DISH may be an attractive acquisition
candidate for another pay-TV vendor, wireless
service provider, or even a large cloud-
computing provider that has been a recent
driver of stock price.
Shares of companies that provide memory,
like SanDisk and SK Hynix, are holdings that
contributed to fund performance. Historically,
personal computers were the main drivers of
incremental memory and storage demand.
But what is really driving earnings for these
companies today is mobile computing.
Comparison of top industry weightings
Computers and
Internet software
and services
IT services
as of 2/28/13
as of 8/31/13
This chart shows how the fund’s top weightings have changed over the past six months. Allocations
are represented as a percentage of the fund’s net assets. Current period summary information may
diff er from the portfolio schedule included in the fi nancial statements due to the inclusion of derivative
securities, any interest accruals, the exclusion of as-of trades, if any, and the use of diff erent
classifi cations of securities for presentation purposes. Holdings and allocations may vary over time.
Global Technology Fund 9
SanDisk and SK Hynix have performed well
because they have maintained pricing power,
met incremental demand, and have been
strategic about adding capacity.
Facebook, the social media company, also
contributed to performance during the
annual period. Facebook’s ability to monetize
mobility was disputed when it announced its
IPO in the early part of 2012. In recent months,
however, the company began to enhance
its platform to allow advertising. We believe
Facebook has potential to add services and
open up new advertising options.
What holdings detracted from
fund performance?
Brian: As mentioned, Apple was our largest
holding, and it was also the fund’s top
detractor for the period. The stock’s price
multiple has declined as concerns increased
about the company’s ability to grow. Apple
had gone nearly a year without introducing
any signifi cant new products. But in our view,
it is now exiting that period. The company paid
its fi rst dividend a year ago, initiated a buyback,
continues to generate healthy cash fl ow, and
has been prudent about its capital structure.
Optimistic about Apple’s future prospects for
growth, we are comfortable about maintaining
the portfolio’s large position.
Di: An underweight position in Microsoft
detracted from performance. Fundamentally,
the company has a strong Offi ce software
franchise, but its greater exposure to desktop
and notebook computing will likely create
longer-term headwinds in our view. The recent
announcement of current CEO Steve Ballmer’s
expected retirement added an intriguing twist
to Microsoft’s story since it could become
more shareholder-friendly. But we believe the
subsequent announced acquisition of Nokia’s
handset division indicates more of the same
focus to attempt to grow into an increasingly
competitive smartphone market.
What trends are you observing in
merger-and-acquisition [M&A] activity
within the sector?
Brian: M&A activity has been slower in the
past 12 months, largely due to lower valu-
ations for the larger-cap tech companies.
Historically, there has been signifi cant M&A
activity in the sector because technology
companies have tended to maintain high cash
levels and directed it toward acquisitions. But
the market is not giving acquiring companies
the price multiples that are suffi cient to justify
using equity as currency in a transaction. As
the industry matures, companies’ balance
sheets can be enhanced further with smart
capital allocation decisions, such as dividends
and share buybacks. We are just starting to
see more of that now, as more technology
companies have begun paying dividends.
What is your outlook for the sector?
Di: In our view, it is an interesting time to be
investing in technology stocks. Technology
is rapidly enabling powerful trends that
enhance people’s daily productivity during a
time when valuations are near historic lows in
the sector. These lower price multiples off er
us an opportunity to invest in technology
companies, where we believe long-term
earnings potential is undervalued. We believe
it is important to maintain a consistent
long-term view on the portfolio, while at the
same time we are cognizant of the risk posed
by the potential headwinds.
Thank you, Brian and Di, for bringing us up
to date.
The views expressed in this report are exclu-
sively those of Putnam Management and
are subject to change. They are not meant as
investment advice.
10 Global Technology Fund
With the goal of updating the Dow Jones
Industrial Average (DJIA) as an accu-
rate gauge of the U.S. stock market, the
committee that oversees the index has
dropped three companies and added three
new ones. Eff ective at the close of trading on
September 20, 2013, Alcoa, Bank of America,
and Hewlett-Packard were removed,
replaced with Goldman Sachs, Nike, and
Visa. It was the most signifi cant change in
nearly a decade for the iconic Dow, the bell-
wether index to which people commonly
refer when they speak of the U.S. stock
market. Low stock prices of Alcoa, Bank of
America, and Hewlett-Packard triggered
the removal of these names and enabled the
DJIA committee to refl ect the shift of the
U.S. economy away from manufacturing and
toward services. Unlike most newer indexes,
which are weighted by market capitalization
and track the performance of hundreds or
even thousands of stocks, the Dow is a price-
weighted average of only 30 companies,
which, some argue, means the Dow is less
representative of overall market health.
Please note that the holdings discussed in
this report may not have been held by the
fund for the entire period. Portfolio composi-
tion is subject to review in accordance with
the fund’s investment strategy and may vary
in the future. Current and future portfolio
holdings are subject to risk.
Portfolio Manager Brian T. Hertzog holds
a B.A. from Saint John’s University. He
joined Putnam in 2005 and has been in the
investment industry since 2000.
Portfolio Manager Di Yao has an M.B.A. from
the Columbia University Graduate School of
Business, an M.S. in Computer Science from
the University of Massachusetts, Boston,
and a B.S. in Biochemistry from Fudan
University in Shanghai, China. He has been
in the investment industry since he joined
Putnam in 2005.
Global Technology Fund 11
Your fund’s performance
This section shows your fund’s performance, price, and distribution information for periods
ended August 31, 2013, the end of its most recent fi scal year. In accordance with regulatory
requirements for mutual funds, we also include performance information as of the most recent
calendar quarter-end and expense information taken from the fund’s current prospectus.
Performance should always be considered in light of a fund’s investment strategy. Data represent
past performance. Past performance does not guarantee future results. More recent returns may
be less or more than those shown. Investment return and principal value will fl uctuate, and you
may have a gain or a loss when you sell your shares. Performance information does not refl ect any
deduction for taxes a shareholder may owe on fund distributions or on the redemption of fund
shares. For the most recent month-end performance, please visit the Individual Investors section
at putnam.com or call Putnam at 1-800-225-1581. Class R and class Y shares are not available to all
investors. See the Terms and Defi nitions section in this report for defi nitions of the share classes
off ered by your fund.
Fund performance Total return for periods ended 8/31/13
Class A Class B Class C Class M Class R Class Y
(inception dates) (12/18/08 ) (12/18/08 ) (12/18/08 ) (12/18/08 ) (12/18/08 ) (12/18/08 )
Life of fund
91.03 % 80.04 % 84.35 % 82.35 % 84.33 % 84.33 % 86.53 % 80.00 % 88.68 % 93.17 %
Annual average
14.76 13.32 13.89 13.63 13.89 13.89 14.18 13.32 14.46 15.03
3 years
35.70 27.90 32.65 29.65 32.57 32.57 33.62 28.94 34.56 36.62
Annual average
10.71 8.55 9.88 9.04 9.85 9.85 10.14 8.84 10.40 10.96
1 year
2.52 –3.37 1.77 –3.23 1.71 0.71 2.00 –1.57 2.23 2.75
Current performance may be lower or higher than the quoted past performance, which cannot guarantee future
results. After-sales-charge returns for class A and M shares refl ect the deduction of the maximum 5.75% and 3.50%
sales charge, respectively, levied at the time of purchase. Class B share returns after contingent deferred sales
charge (CDSC) refl ect the applicable CDSC, which is 5% in the fi rst year, declining over time to 1% in the sixth year,
and is eliminated thereafter. Class C share returns after CDSC refl ect a 1% CDSC for the fi rst year that is eliminated
thereafter. Class R and Y shares have no initial sales charge or CDSC.
For a portion of the periods, the fund had expense limitations, without which returns would have been lower.
Comparative index returns For periods ended 8/31/13
MSCI World Information
Technology Index (ND)
Life of fund
106.13 %
Annual average
3 years
Annual average
1 year
Index results should be compared with fund performance before sales charge, before CDSC, or at net asset value.
12 Global Technology Fund
Change in the value of a $10,000 investment ($9,425 after sales charge)
Cumulative total return from 12/18/08 to 8/31/13
Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in
the fund’s class B shares would have been valued at $18,435 ($18,235 after contingent deferred sales charge). A
$10,000 investment in the fund’s class C shares would have been valued at $18,433, and no contingent deferred
sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would
have been valued at $18,000. A $10,000 investment in the fund’s class R and class Y shares would have been valued
at $18,868 and $19,317, respectively.
Fund price information For the 12-month period ended 8/31/13
Class A Class B Class C Class M Class R Class Y
Share value
$16.26 $17.25 $15.82 $15.82 $15.98 $16.56 $16.14 $16.39
16.67 17.69 16.10 16.09 16.30 16.89 16.50 16.84
The classifi cation of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate
for class A and M shares, if applicable, do not take into account any sales charge levied at the time of purchase.
After-sales-charge share value, current dividend rate, and current 30-day SEC yield, if applicable, are calculated
assuming that the maximum sales charge (5.75% for class A shares and 3.50% for class M shares) was levied at the
time of purchase. Final distribution information will appear on your year-end tax forms.
The fund made no distributions during the period.
12/18/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 8/31/13
Putnam Global Technology Fund class A shares after sales charge
MSCI World Information Technology Index (ND)
Global Technology Fund 13
Fund performance as of most recent calendar quarter
Total return for periods ended 9/30/13
Class A Class B Class C Class M Class R Class Y
(inception dates) (12/18/08 ) (12/18/08 ) (12/18/08 ) (12/18/08 ) (12/18/08 ) (12/18/08 )
Life of fund
98.47% 87.06% 91.33% 89.33% 91.44% 91.44% 93.63% 86.85% 96.00% 100.74%
Annual average
15.41 13.99 14.53 14.28 14.54 14.54 14.82 13.96 15.11 15.69
3 years
25.73 18.50 22.80 19.80 22.88 22.88 23.77 19.43 24.71 26.64
Annual average
7.93 5.82 7.08 6.21 7.11 7.11 7.37 6.10 7.64 8.19
1 year
5.29 –0.77 4.44 –0.56 4.44 3.44 4.70 1.04 4.96 5.49
See the discussion following the Fund performance table on page 11 for information about the calculation of
fund performance.
Your fund’s expenses
As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution
fees (12b-1 fees), and other expenses. In the most recent six-month period, your fund’s expenses
were limited; had expenses not been limited, they would have been higher. Using the following
information, you can estimate how these expenses aff ect your investment and compare them
with the expenses of other funds. You may also pay one-time transaction expenses, including
sales charges (loads) and redemption fees, which are not shown in this section and would have
resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your
fi nancial representative.
Expense ratios
Class A Class B Class C Class M Class R Class Y
Net expenses for the fi scal year
ended 8/31/12*
1.41% 2.16% 2.16% 1.91% 1.66% 1.16%
Total annual operating expenses
for the fi scal year ended 8/31/12
1.95% 2.70% 2.70% 2.45% 2.20% 1.70%
Annualized expense ratio
for the six-month period
ended 8/31/13†
1.35% 2.10% 2.10% 1.85% 1.60% 1.10%
Fiscal-year expense information in this table is taken from the most recent prospectus, is subject to change, and
may diff er from that shown for the annualized expense ratio and in the fi nancial highlights of this report. Expenses
are shown as a percentage of average net assets.
* Refl ects Putnam Management’s contractual obligation to limit expenses through 12/30/13.
† For the fund’s most recent fi scal half year; may diff er from expense ratios based on one-year data in the
fi nancial highlights.
14 Global Technology Fund
Expenses per $1,000
The following table shows the expenses you would have paid on a $1,000 investment in the fund
from March 1, 2013, to August 31, 2013. It also shows how much a $1,000 investment would be
worth at the close of the period, assuming actual returns and expenses.
Class A Class B Class C Class M Class R Class Y
Expenses paid per $1,000*†
$7.03 $10.91 $10.91 $9.62 $8.33 $5.73
Ending value (after expenses)
$1,066.50 $1,062.00 $1,061.30 $1,063.30 $1,064.50 $1,067.20
* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which
represents the ongoing expenses as a percentage of average net assets for the six months ended 8/31/13. The
expense ratio may diff er for each share class.
† Expenses are calculated by multiplying the expense ratio by the average account value for the period; then
multiplying the result by the number of days in the period; and then dividing that result by the number of days in
the year.
Estimate the expenses you paid
To estimate the ongoing expenses you paid for the six months ended August 31, 2013, use the
following calculation method. To fi nd the value of your investment on March 1, 2013, call Putnam
at 1-800-225-1581.
How to calculate the expenses you paid
Value of your investment on 3/1/13
Expenses paid per $1,000
Total expenses paid
Based on a $10,000 investment in class A shares of your fund.
$7.03 (see preceding table)
Compare expenses using the SEC’s method
The Securities and Exchange Commission (SEC) has established guidelines to help investors
assess fund expenses. Per these guidelines, the following table shows your fund’s expenses
based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this
information to compare the ongoing expenses (but not transaction expenses or total costs)
of investing in the fund with those of other funds. All mutual fund shareholder reports will
provide this information to help you make this comparison. Please note that you cannot use this
information to estimate your actual ending account balance and expenses paid during the period.
Class A Class B Class C Class M Class R Class Y
Expenses paid per $1,000*†
$6.87 $10.66 $10.66 $9.40 $8.13 $5.60
Ending value (after expenses)
$1,018.40 $1,014.62 $1,014.62 $1,015.88 $1,017.14 $1,019.66
* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which
represents the ongoing expenses as a percentage of average net assets for the six months ended 8/31/13. The
expense ratio may diff er for each share class.
† Expenses are calculated by multiplying the expense ratio by the average account value for the six-month period;
then multiplying the result by the number of days in the six-month period; and then dividing that result by the
number of days in the year.
Global Technology Fund 15
Terms and defi nitions
Important terms
Total return shows how the value of the fund’s
shares changed over time, assuming you
held the shares through the entire period and
reinvested all distributions in the fund.
Before sales charge, or net asset value, is the
price, or value, of one share of a mutual fund,
without a sales charge. Before-sales-charge
fi gures fl uctuate with market conditions, and
are calculated by dividing the net assets of each
class of shares by the number of outstanding
shares in the class.
After sales charge is the price of a mutual fund
share plus the maximum sales charge levied
at the time of purchase. After-sales-charge
performance fi gures shown here assume the
5.75% maximum sales charge for class A shares
and 3.50% for class M shares.
Contingent deferred sales charge (CDSC) is
generally a charge applied at the time of the
redemption of class B or C shares and assumes
redemption at the end of the period. Your
fund’s class B CDSC declines over time from a
5% maximum during the fi rst year to 1% during
the sixth year. After the sixth year, the CDSC no
longer applies. The CDSC for class C shares is
1% for one year after purchase.
Share classes
Class A shares are generally subject to an initial
sales charge and no CDSC (except on certain
redemptions of shares bought without an
initial sales charge).
Class B shares are not subject to an initial sales
charge. They may be subject to a CDSC.
Class C shares are not subject to an initial sales
charge and are subject to a CDSC only if the
shares are redeemed during the fi rst year.
Class M shares have a lower initial sales charge
and a higher 12b-1 fee than class A shares and
no CDSC (except on certain redemptions of
shares bought without an initial sales charge).
Class R shares are not subject to an initial
sales charge or CDSC and are available only to
certain defi ned contribution plans.
Class Y shares are not subject to an initial
sales charge or CDSC, and carry no 12b-1 fee.
They are generally only available to corporate
and institutional clients and clients in other
approved programs.
Comparative indexes
Barclays U.S. Aggregate Bond Index is an
unmanaged index of U.S. investment-grade
fi xed-income securities.
BofA Merrill Lynch U.S. 3-Month Treasury
Bill Index is an unmanaged index that seeks to
measure the performance of U.S. Treasury bills
available in the marketplace.
MSCI World Information Technology
Index (ND) is a free fl oat-adjusted market
capitalization weighted index that is designed
to measure the equity market performance
of developed markets in the information
technology sector.
S&P 500 Index is an unmanaged index of
common stock performance.
Indexes assume reinvestment of all distributions and do
not account for fees. Securities and performance of a
fund and an index will diff er. You cannot invest directly
in an index.
16 Global Technology Fund
Other information for shareholders
Proxy voting
Putnam is committed to managing our mutual
funds in the best interests of our shareholders.
The Putnam funds’ proxy voting guidelines and
procedures, as well as information regarding
how your fund voted proxies relating to portfolio
securities during the 12-month period ended
June 30, 2013, are available in the Individual
Investors section of putnam.com, and on the
Securities and Exchange Commission (SEC)
website, www.sec.gov. If you have questions
about fi nding forms on the SEC’s website,
you may call the SEC at 1-800-SEC-0330.
You may also obtain the Putnam funds’ proxy
voting guidelines and procedures at no charge
by calling Putnam’s Shareholder Services
at 1-800-225-1581.
Fund portfolio holdings
The fund will fi le a complete schedule of
its portfolio holdings with the SEC for the
fi rst and third quarters of each fi scal year
on Form N-Q. Shareholders may obtain the
fund’s Forms N-Q on the SEC’s website at
www.sec.gov. In addition, the fund’s Forms
N-Q may be reviewed and copied at the SEC’s
Public Reference Room in Washington, D.C.
You may call the SEC at 1-800-SEC-0330 for
information about the SEC’s website or the
operation of the Public Reference Room.
Trustee and employee
fund ownership
Putnam employees and members of the Board
of Trustees place their faith, confi dence, and,
most importantly, investment dollars in Putnam
mutual funds. As of August 31, 2013, Putnam
employees had approximately $387,000,000
and the Trustees had approximately
$93,000,000 invested in Putnam mutual
funds. These amounts include investments by
the Trustees’ and employees’ immediate family
members as well as investments through
retirement and deferred compensation plans.
Global Technology Fund 17
Important notice regarding Putnam’s privacy policy
In order to conduct business with our shareholders, we must obtain certain personal information
such as account holders’ names, addresses, Social Security numbers, and dates of birth. Using this
information, we are able to maintain accurate records of accounts and transactions.
It is our policy to protect the confi dentiality of our shareholder information, whether or not a share-
holder currently owns shares of our funds. In particular, it is our policy not to sell information about
you or your accounts to outside marketing fi rms. We have safeguards in place designed to prevent
unauthorized access to our computer systems and procedures to protect personal information
from unauthorized use.
Under certain circumstances, we must share account information with outside vendors who
provide services to us, such as mailings and proxy solicitations. In these cases, the service providers
enter into confi dentiality agreements with us, and we provide only the information necessary to
process transactions and perform other services related to your account. Finally, it is our policy
to share account information with your fi nancial representative, if you’ve listed one on your
Putnam account.

18 Global Technology Fund
Trustee approval of management contract
General conclusions
The Board of Trustees of the Putnam funds
oversees the management of each fund and, as
required by law, determines annually whether
to approve the continuance of your fund’s
management contract with Putnam Invest-
ment Management (“Putnam Management”),
the sub- management contract with respect
to your fund between Putnam Management
and its affi liate, Putnam Investments Limited
(“PIL”), and the sub- advisory contract among
Putnam Management, PIL, and another affi l-
iate, The Putnam Advisory Company (“PAC”).
The Board of Trustees, with the assistance of its
Contract Committee, requests and evaluates
all information it deems reasonably necessary
under the circumstances in connection with
its annual contract review. The Contract Com-
mittee consists solely of Trustees who are not
“interested persons” (as this term is defi ned
in the Investment Company Act of 1940, as
amended (the “1940 Act”)) of the Putnam
funds (“Independent Trustees”).
At the outset of the review process, members
of the Board’s independent staff and indepen-
dent legal counsel met with representatives
of Putnam Management to review the annual
contract review materials furnished to the
Contract Committee during the course of the
previous year’s review and to discuss possi-
ble changes in these materials that might be
necessary or desirable for the coming year. Fol-
lowing these discussions and in consultation
with the Contract Committee, the Independent
Trustees’ independent legal counsel requested
that Putnam Management furnish specifi ed
information, together with any additional infor-
mation that Putnam Management considered
relevant, to the Contract Committee. Over the
course of several months ending in June 2013,
the Contract Committee met on a number
of occasions with representatives of Putnam
Management, and separately in executive ses-
sion, to consider the information that Putnam
Management provided. Throughout this pro-
cess, the Contract Committee was assisted
by the members of the Board’s independent
staff and by independent legal counsel for the
Putnam funds and the Independent Trustees.
In May 2013, the Contract Committee met in
executive session to discuss and consider its
preliminary recommendations with respect
to the continuance of the contracts. At the
Trustees’ June 20, 2013 meeting, the Contract
Committee met in executive session with the
other Independent Trustees to review a sum-
mary of the key fi nancial data that the Contract
Committee considered in the course of its
review. The Contract Committee then pre-
sented its written report, which summarized
the key factors that the Committee had consid-
ered and set forth its fi nal recommendations.
The Contract Committee then recommended,
and the Independent Trustees approved, the
continuance of your fund’s management, sub-
management and sub- advisory contracts,
eff ective July 1, 2013, subject to certain changes
in these contracts noted below. (Because
PIL and PAC are affi liates of Putnam Man-
agement and Putnam Management remains
fully responsible for all services provided by
PIL and PAC, the Trustees have not evaluated
PIL or PAC as separate entities, and all sub-
sequent references to Putnam Management
below should be deemed to include reference
to PIL and PAC as necessary or appropriate in
the context.)
The Independent Trustees’ approval was based
on the following conclusions:
• That the fee schedule in eff ect for your fund
represented reasonable compensation in
light of the nature and quality of the services
being provided to the fund, the fees paid by
competitive funds, and the costs incurred by
Global Technology Fund 19
Putnam Management in providing services to
the fund, and
• That the fee schedule represented an appro-
e sharing between fund shareholders and
Putnam Management of such economies of
scale as may exist in the management of the
fund at current asset levels.
These conclusions were based on a comprehen-
sive consideration of all information provided
to the Trustees and were not the result of any
single factor. Some of the factors that fi gured
particularly in the Trustees’ deliberations and
how the Trustees considered these factors are
described below, although individual Trustees
may have evaluated the information presented
diff erently, giving diff erent weights to various
factors. It is also important to recognize that the
management arrangements for your fund and
the other Putnam funds are the result of many
years of review and discussion between the
Independent Trustees and Putnam Manage-
ment, that some aspects of the arrangements
may receive greater scrutiny in some years
than others, and that the Trustees’ conclusions
may be based, in part, on their consideration of
fee arrangements in previous years. For exam-
ple, with some minor exceptions, the current
fee arrangements in the management con-
tracts for the Putnam funds were implemented
at the beginning of 2010 following extensive
review and discussion by the Trustees, as well
as approval by shareholders.
As noted above, the Trustees considered cer-
tain changes to the management contracts of
all funds that are organized as series of Putnam
Funds Trust, including your fund, that were pro-
posed by Putnam Management in an eff ort to
consolidate the contracts of these funds into
three separate contracts based on the structure
of each fund’s management fee. The Indepen-
dent Trustees’ approval of these consolidated
management contracts was based on their
conclusion that the changes were purely for
administrative convenience and would not
result in any substantive change to the terms
of a fund’s existing management contract
with Putnam Management or any reduction in
the nature and quality of services provided to
your fund.
The Trustees also considered certain
administrative revisions to your fund’s sub-
management and sub- advisory contracts.
Putnam Management recommended that
the sub- management contract be revised to
reduce the sub- management fee that Putnam
Management pays to PIL with respect to the
portion of the portfolios of certain funds, but
not your fund, that may be allocated to PIL
from time to time. Putnam Management also
recommended that the sub- advisory con-
tract be revised to refl ect the closure of PAC’s
Tokyo offi ce and the termination of PAC’s non-
discretionary investment adviser’s license with
respect to that offi ce. The Independent Trust-
ees’ approval of these recommendations was
based on their conclusion that these changes
would have no practical eff ect on Putnam Man-
agement’s continued responsibility for the
management of these funds or the costs borne
by fund shareholders and would not result
in any reduction in the nature and quality of
services provided to the funds.
Management fee schedules
and total expenses
The Trustees reviewed the management fee
schedules in eff ect for all Putnam funds, includ-
ing fee levels and breakpoints. The Trustees also
reviewed the total expenses of each Putnam
fund, recognizing that in most cases manage-
ment fees represented the major, but not the
sole, determinant of total costs to shareholders.
In reviewing fees and expenses, the Trustees
generally focus their attention on material
changes in circumstances — for example,
changes in assets under management, changes
in a fund’s investment style, changes in Putnam
Management’s operating costs or profi tability,
20 Global Technology Fund
or changes in competitive practices in the
mutual fund industry — that suggest that con-
sideration of fee changes might be warranted.
The Trustees concluded that the circumstances
did not warrant changes to the management
fee structure of your fund.
Under its management contract, your fund
has the benefi t of breakpoints in its manage-
ment fee schedule that provide shareholders
with economies of scale in the form of reduced
fee levels as assets under management in the
Putnam family of funds increase. The Trust-
ees concluded that the fee schedule in eff ect
for your fund represented an appropriate
sharing of economies of scale between fund
shareholders and Putnam Management.
As in the past, the Trustees also focused on the
competitiveness of each fund’s total expense
ratio. In order to ensure that expenses of the
Putnam funds continue to meet competitive
standards, the Trustees and Putnam Man-
agement have implemented certain expense
limitations. These expense limitations were: (i)
a contractual expense limitation applicable to
all retail open- end funds of 32 basis points on
investor servicing fees and expenses and (ii) a
contractual expense limitation applicable to all
open- end funds of 20 basis points on so- called
“other expenses” (i.e., all expenses exclusive of
management fees, investor servicing fees, dis-
tribution fees, investment- related expenses,
interest, taxes, brokerage commissions,
extraordinary expenses and acquired fund fees
and expenses). These expense limitations serve
in particular to maintain competitive expense
levels for funds with large numbers of small
shareholder accounts and funds with relatively
small net assets. Most funds had suffi ciently
low expenses that these expense limitations
did not apply. However, in the case of your fund,
both of the expense limitations applied during
its fi scal year ending in 2012. Putnam Manage-
ment’s support for these expense limitations
was an important factor in the Trustees’
decision to approve the continuance of your
fund’s management, sub- management and
sub- advisory contracts.
The Trustees reviewed comparative fee and
expense information for a custom group of
competitive funds selected by Lipper Inc. This
comparative information included your fund’s
percentile ranking for eff ective management
fees and total expenses (excluding any appli-
cable 12b- 1 fee), which provides a general
indication of your fund’s relative standing. In
the custom peer group, your fund ranked in
the 1st quintile in eff ective management fees
(determined for your fund and the other funds
in the custom peer group based on fund asset
size and the applicable contractual manage-
ment fee schedule) and in the 3rd quintile in
total expenses (excluding any applicable 12b- 1
fees) as of December 31, 2012 (the fi rst quin-
tile representing the least expensive funds and
the fi fth quintile the most expensive funds).
The fee and expense data reported by Lipper
as of December 31, 2012 refl ected the most
recent fi scal year- end data available in Lipper’s
database at that time.
In connection with their review of the manage-
ment fees and total expenses of the Putnam
funds, the Trustees also reviewed the costs of
the services provided and the profi ts realized
by Putnam Management and its affi liates from
their contractual relationships with the funds.
This information included trends in revenues,
expenses and profi tability of Putnam Manage-
ment and its affi liates relating to the investment
management, investor servicing and distri-
bution services provided to the funds. In this
regard, the Trustees also reviewed an analysis
of Putnam Management’s revenues, expenses
and profi tability, allocated on a fund- by- fund
basis, with respect to the funds’ management,
distribution, and investor servicing contracts.
For each fund, the analysis presented informa-
tion about revenues, expenses and profi tability
for each of the agreements separately and for
Global Technology Fund 21
the agreements taken together on a combined
basis. The Trustees concluded that, at current
asset levels, the fee schedules in place rep-
resented reasonable compensation for the
services being provided and represented an
appropriate sharing of such economies of scale
as may exist in the management of the Putnam
funds at that time.
The information examined by the Trustees
as part of their annual contract review for the
Putnam funds has included for many years
information regarding fees charged by Putnam
Management and its affi liates to institutional
clients such as defi ned benefi t pension plans,
college endowments, and the like. This infor-
mation included comparisons of those fees
with fees charged to the funds, as well as an
assessment of the diff erences in the services
provided to these diff erent types of clients. The
Trustees observed that the diff erences in fee
rates between institutional clients and mutual
funds are by no means uniform when examined
by individual asset sectors, suggesting that
diff erences in the pricing of investment man-
agement services to these types of clients may
refl ect historical competitive forces operating
in separate markets. The Trustees considered
the fact that in many cases fee rates across dif-
ferent asset classes are higher on average for
mutual funds than for institutional clients, as
well as the diff erences between the services
that Putnam Management provides to the
Putnam funds and those that it provides to its
institutional clients. The Trustees did not rely on
these comparisons to any signifi cant extent in
concluding that the management fees paid by
your fund are reasonable.
Investment performance
The quality of the investment process provided
by Putnam Management represented a major
factor in the Trustees’ evaluation of the quality
of services provided by Putnam Management
under your fund’s management contract. The
Trustees were assisted in their review of the
Putnam funds’ investment process and perfor-
mance by the work of the investment oversight
committees of the Trustees, which meet on a
regular basis with the funds’ portfolio teams
and with the Chief Investment Offi cer and other
senior members of Putnam Management’s
Investment Division throughout the year. The
Trustees concluded that Putnam Management
generally provides a high- quality investment
process — based on the experience and skills of
the individuals assigned to the management of
fund portfolios, the resources made available
to them, and in general Putnam Management’s
ability to attract and retain high- quality per-
sonnel — but also recognized that this does
not guarantee favorable investment results for
every fund in every time period.
The Trustees considered that 2012 was a year
of strong competitive performance for many of
the Putnam funds, with only a relatively small
number of exceptions. They noted that this
strong performance was exemplifi ed by the
fact that the Putnam funds were recognized by
Barron’s as the best performing mutual fund
complex for 2012—the second time in four
years that Putnam Management has achieved
this distinction for the Putnam funds. They also
noted, however, the disappointing investment
performance of some funds for periods ended
December 31, 2012 and considered information
provided by Putnam Management regarding
the factors contributing to the underperfor-
mance and actions being taken to improve the
performance of these particular funds. The
Trustees indicated their intention to continue
to monitor performance trends to assess the
eff ectiveness of these eff orts and to evaluate
whether additional actions to address areas of
underperformance are warranted.
For purposes of evaluating investment per-
formance, the Trustees generally focus on
competitive industry rankings for the one- year,
three- year, and fi ve- year periods. For a number
of Putnam funds with relatively unique
22 Global Technology Fund
investment mandates, the Trustees evaluated
performance based on comparisons of their
absolute returns with the returns of selected
investment benchmarks or targeted annual-
ized returns. In the case of your fund, which
commenced operations on December 18, 2008,
the Trustees considered information about the
absolute return of your fund and your fund’s
performance relative to its benchmark over
the one- year and three- year periods ended
December 31, 2012. Your fund’s class A shares’
return net of fees and expenses was positive
and trailed the return of its internal benchmark
over the one- year and three- year periods. The
Trustees did not fi nd any evidence of under-
performance that would suggest a need for
concern regarding the investment process for
your fund. (When considering performance
information, shareholders should be mindful
that past performance is not a guarantee of
future results.)
The Trustees also considered a number of
other changes that Putnam Management had
made in recent years in eff orts to support and
improve fund performance generally. These
changes included Putnam Management’s
eff orts to increase accountability and to reduce
complexity in the portfolio management pro-
cess for the Putnam equity funds by moving
generally from a portfolio management team
structure to a decision- making process that
vests full authority and responsibility with
individual portfolio managers and by affi rm-
ing its commitment to a fundamental- driven
approach to investing. The Trustees noted
that Putnam Management had also worked
to strengthen its fundamental research capa-
bilities by adding new investment personnel
to the large- cap equities research team and
by bringing U.S. and international research
under common leadership. In addition, the
Trustees recognized that Putnam Manage-
ment has adjusted the compensation structure
for portfolio managers and research analysts
so that only those who achieve top- quartile
returns over a rolling three- year basis are
eligible for full bonuses.
Brokerage and soft- dollar allocations;
investor servicing
The Trustees considered various potential ben-
efi ts that Putnam Management may receive in
connection with the services it provides under
the management contract with your fund.
These include benefi ts related to brokerage
allocation and the use of soft dollars, whereby
a portion of the commissions paid by a fund
for brokerage may be used to acquire research
services that are expected to be useful to
Putnam Management in managing the assets
of the fund and of other clients. Subject to pol-
icies established by the Trustees, soft dollars
generated by these means are used primarily
to acquire brokerage and research services that
enhance Putnam Management’s investment
capabilities and supplement Putnam Man-
agement’s internal research eff orts. However,
the Trustees noted that a portion of available
soft dollars continues to be used to pay fund
expenses. The Trustees indicated their contin-
ued intent to monitor regulatory and industry
developments in this area with the assistance
of their Brokerage Committee and also indi-
cated their continued intent to monitor the
allocation of the Putnam funds’ brokerage in
order to ensure that the principle of seeking
best price and execution remains paramount in
the portfolio trading process.
Putnam Management may also receive ben-
efi ts from payments that the funds make to
Putnam Management’s affi liates for investor
or distribution services. In conjunction with
the annual review of your fund’s management,
sub- management and sub- advisory contracts,
the Trustees reviewed your fund’s investor
servicing agreement with Putnam Investor
Services, Inc. (“PSERV”) and its distributor’s
contracts and distribution plans with Putnam
Retail Management Limited Partnership
Global Technology Fund 23
(“PRM”), both of which are affi liates of Putnam
Management. The Trustees concluded that the
fees payable by the funds to PSERV and PRM,
as applicable, for such services are reasonable
in relation to the nature and quality of such
services, the fees paid by competitive funds,
and the costs incurred by PSERV and PRM, as
applicable, in providing such services.
24 Global Technology Fund
Financial statements
These sections of the report, as well as the
accompanying Notes, preceded by the
Report of Independent Registered Public
Accounting Firm, constitute the fund’s
fi nancial statements.
The fund’s portfolio lists all the fund’s invest-
ments and their values as of the last day of
the reporting period. Holdings are organized
by asset type and industry sector, country,
or state to show areas of concentration
and diversifi cation.
Statement of assets and liabilities shows
how the fund’s net assets and share price are
determined. All investment and non-invest-
ment assets are added together. Any unpaid
expenses and other liabilities are subtracted
from this total. The result is divided by the
number of shares to determine the net asset
value per share, which is calculated sepa-
rately for each class of shares. (For funds with
preferred shares, the amount subtracted from
total assets includes the liquidation preference
of preferred shares.)
Statement of operations shows the fund’s
net investment gain or loss. This is done by
fi rst adding up all the fund’s earnings — from
dividends and interest income — and subtracting
its operating expenses to determine net
investment income (or loss). Then, any net gain
or loss the fund realized on the sales of its hold-
ings — as well as any unrealized gains or losses
over the period — is added to or subtracted
from the net investment result to determine the
fund’s net gain or loss for the fi scal year.
Statement of changes in net assets shows
how the fund’s net assets were aff ected by the
fund’s net investment gain or loss, by distribu-
tions to shareholders, and by changes in the
number of the fund’s shares. It lists distribu-
tions and their sources (net investment income
or realized capital gains) over the current
reporting period and the most recent fi scal
year-end. The distributions listed here may
not match the sources listed in the Statement
of operations because the distributions are
determined on a tax basis and may be paid in
a diff erent period from the one in which they
were earned.
Financial highlights provide an overview of the
fund’s investment results, per-share distribu-
tions, expense ratios, net investment income
ratios, and portfolio turnover in one summary
table, refl ecting the fi ve most recent reporting
periods. In a semiannual report, the highlights
table also includes the current reporting period.
Report of Independent Registered Public Accounting Firm
Global Technology Fund 25
The Board of Trustees and Shareholders
Putnam Funds Trust:
We have audited the accompanying statement of assets and liabilities of
Putnam Global Technology Fund (the fund), a series of Putnam Funds
Trust, including the fund’s portfolio, as of August 31, 2013, and the related
statement of operations for the year then ended, the statements of changes
in net assets for each of the years in the two-year period then ended, and
the fi nancial highlights for each of the years or periods in the four-year
period then ended and the period from December 18, 2008 (commencement
of operations) through August 31, 2009. These fi nancial statements and
fi nancial highlights are the responsibility of the fund’s management. Our
responsibility is to express an opinion on these fi nancial statements and
fi nancial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the fi nancial statements and fi nancial highlights are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the fi nancial
statements. Our procedures included confi rmation of securities owned as
of August 31, 2013, by correspondence with the custodian and brokers or by
other appropriate auditing procedures. An audit also includes assessing the
accounting principles used and signifi cant estimates made by management,
as well as evaluating the overall fi nancial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the fi nancial statements and fi nancial highlights referred to
above present fairly, in all material respects, the fi nancial position of Putnam
Global Technology Fund as of August 31, 2013, the results of its operations,
the changes in its net assets, and the fi nancial highlights for each of the
periods specifi ed in the fi rst paragraph above, in conformity with U.S.
generally accepted accounting principles.
Boston, Massachusetts
October 9, 2013
26 Global Technology Fund
COMMON STOCKS (99.0%)* Shares Value
Communications equipment (15.5%)
Cisco Systems, Inc.9,630 $224,475
EchoStar Corp. Class A † 1,500 60,390
F5 Networks, Inc. † 1,821 151,835
Polycom, Inc. † 37,028 367,688
Qualcomm, Inc.14,871 985,650
Telefonaktiebolaget LM Ericsson ADR (Sweden) 13,469 158,665
Computers and peripherals (23.9%)
Apple, Inc.5,176 2,520,971
ASUSTeK Computer, Inc. (Taiwan) 5,000 39,644
Casetek Holdings, Ltd. (Taiwan) † 26,000 138,422
NetApp, Inc.700 29,078
Pegatron Corp. (Taiwan) † 44,000 67,685
SanDisk Corp.3,676 202,842
Electronic equipment, instruments, and components (3.2%)
Hitachi, Ltd. (Japan) 28,000 167,540
Hon Hai Precision Industry Co., Ltd. (Taiwan) 40,100 108,248
Keyence Corp. (Japan) 400 131,516
Household durables (0.6%)
Alpine Electronics, Inc. (Japan) 8,400 81,665
Internet software and services (14.5%)
eBay, Inc. † 6,760 337,932
Facebook, Inc. Class A † 9,600 396,288
Google, Inc. Class A † 874 740,191
Millennial Media, Inc. † 2,350 15,393
Tencent Holdings, Ltd. (China) 2,000 93,348
Yahoo!, Inc. † 3,500 94,920
Yandex NV Class A (Russia) † 4,510 144,320
IT Services (8.0%)
Cognizant Technology Solutions Corp. † 1,800 131,940
Computer Sciences Corp.456 22,868
IBM Corp.767 139,801
MasterCard, Inc. Class A 315 190,915
Visa, Inc. Class A 3,004 523,958
Media (4.9%)
DISH Network Corp. Class A 13,700 615,952
Offi ce electronics (0.5%)
Canon, Inc. (Japan) 1,200 35,957
Canon, Inc. ADR (Japan) 712 21,289
Real estate investment trusts (REITs) (0.8%)
American Tower Corp. Class A 
1,500 104,235
The fund’s portfolio 8/31/13
Global Technology Fund 27
COMMON STOCKS (99.0%)* cont.Shares Value
Semiconductors and semiconductor equipment (7.8%)
ASML Holding NV (Netherlands) 677 $59,331
Avago Technologies, Ltd.2,900 111,679
Fairchild Semiconductor International, Inc. † 3,100 37,851
Lam Research Corp. † 3,700 172,679
Maxim Integrated Products, Inc.2,000 55,690
Samsung Electronics Co., Ltd. (South Korea) 157 192,702
SK Hynix, Inc. (South Korea) † 4,140 104,661
Texas Instruments, Inc.2,500 95,500
Xilinx, Inc.3,520 152,838
Software (19.3%)
Adobe Systems, Inc. † 1,500 68,625
Bottomline Technologies, Inc. † 800 21,776
Intuit, Inc.1,100 69,883
Microsoft Corp.28,819 962,555
Oracle Corp.16,095 512,787
QLIK Technologies, Inc. † 3,500 114,765
Red Hat, Inc. † 8,615 435,230
SAP AG (Germany) 3,187 235,581
Total common stocks (cost $9,055,391) $12,449,754
Putnam Short Term Investment Fund 0.07% 
165,648 $165,648
Total short-term investments (cost $165,648) $165,648
Total investments (cost $9,221,039) $12,615,402
Key to holding’s abbreviations
ADR American Depository Receipts: represents ownership of foreign securities on deposit with a
custodian bank
Notes to the fund’s portfolio
Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which
ran from September 1, 2012 through August 31, 2013 (the reporting period). Within the following notes to the
portfolio, references to “ASC 820” represent Accounting Standards Codifi cation 820 Fair Value Measurements and
Disclosures and references to “OTC”, if any, represent over-the-counter.
* Percentages indicated are based on net assets of $12,569,313.
† Non-income-producing security.
Affi liated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund
at the close of the reporting period.
Real Estate Investment Trust.
At the close of the reporting period, the fund maintained liquid assets totaling $8,719 to cover certain
derivatives contracts.
28 Global Technology Fund
Distribution of investments by country of risk at the close of the reporting period, excluding collateral received,
if any (as a percentage of Portfolio Value):
United States 85.9%
Japan 3.5
Taiwan 2.8
South Korea 2.3
Germany 1.9
Sweden 1.3%
Russia 1.1
China 0.7
Netherlands 0.5
Total 100.0%
⌂ Methodology diff ers from that used for purposes of complying with the fund’s policy regarding investments
in securities of foreign issuers, as discussed further in the fund’s prospectus.
FORWARD CURRENCY CONTRACTS at 8/31/13 (aggregate face value $2,458,079 )
Counterparty Currency
date Value
face value
Bank of America N.A.
British Pound Sell 9/18/13 $4,804 $4,906 $102
Euro Buy 9/18/13 120,804 119,682 1,122
Barclays Bank PLC
Euro Sell 9/18/13 143,538 142,274 (1,264 )
Hong Kong Dollar Buy 11/20/13 9,171 9,171 —
Japanese Yen Buy 11/20/13 168,785 166,881 1,904
Swedish Krona Buy 9/18/13 66,597 67,179 (582 )
Swedish Krona Sell 9/18/13 66,597 67,314 717
Citibank, N.A.
Euro Buy 9/18/13 115,650 115,307 343
Euro Sell 9/18/13 115,650 114,559 (1,091 )
Japanese Yen Buy 11/20/13 3,579 3,537 42
Credit Suisse International
British Pound Buy 9/18/13 11,467 11,288 179
British Pound Sell 9/18/13 11,467 11,346 (121 )
Japanese Yen Buy 11/20/13 301,239 298,767 2,472
Goldman Sachs International
Euro Buy 9/18/13 57,627 57,124 503
Euro Sell 9/18/13 57,627 57,784 157
HSBC Bank USA, National Association
Euro Buy 9/18/13 102,697 101,639 1,058
JPMorgan Chase Bank N.A.
British Pound Buy 9/18/13 154,643 153,022 1,621
Canadian Dollar Buy 10/18/13 2,655 2,716 (61 )
Canadian Dollar Sell 10/18/13 2,655 2,660 5
Euro Buy 9/18/13 237,379 235,210 2,169
Swedish Krona Sell 9/18/13 8,975 8,865 (110 )
Global Technology Fund 29
FORWARD CURRENCY CONTRACTS at 8/31/13 (aggregate face value $2,458,079 ) cont.
Counterparty Currency
date Value
face value
State Street Bank and Trust Co.
Euro Buy 9/18/13 $124,902 $125,276 $(374 )
Euro Sell 9/18/13 124,902 124,037 (865 )
Israeli Shekel Buy 10/18/13 26,927 26,869 58
Swedish Krona Buy 9/18/13 29,852 30,106 (254 )
Swedish Krona Sell 9/18/13 29,852 30,172 320
British Pound Sell 9/18/13 49,585 49,059 (526 )
Canadian Dollar Buy 10/18/13 57,092 57,135 (43 )
Euro Buy 9/18/13 50,754 50,365 389
Euro Sell 9/18/13 50,754 50,501 (253 )
WestPac Banking Corp.
British Pound Buy 9/18/13 44,162 43,684 478
British Pound Sell 9/18/13 44,162 43,475 (687 )
Euro Buy 9/18/13 35,951 36,049 (98 )
Euro Sell 9/18/13 35,951 35,618 (333 )
Japanese Yen Buy 11/20/13 4,555 4,502 53
Total $7,030
Swap counterparty/
Notional amount
received (paid)
Fixed payments
received (paid) by
fund per annum
Total return
received by
or paid by fund
Deutsche Bank AG
baskets 1,185 $— 7/1/14 (3 month USD-
A basket
common stocks
$(5,802 )
Total $— $(5,802 )
30 Global Technology Fund
The accompanying notes are an integral part of these fi nancial statements.
ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy
is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defi ned
as 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 signifi cant inputs are
observable, either directly or indirectly.
Level 3: Valuations based on inputs that are unobservable and signifi cant 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 inputs
Investments in securities:Level 1 Level 2 Level 3
Common stocks*:
Consumer discretionary $615,952 $81,665 $—
Financials 104,235 — —
Information technology 10,568,179 1,079,723 —
Total common stocks 11,288,366 1,161,388 —
Short-term investments 165,648 — —
Totals by level $11,454,014 $1,161,388 $—
Valuation inputs
Other fi nancial instruments:Level 1 Level 2 Level 3
Forward currency contracts $— $7,030 $—
Total return swap contracts — (5,802 ) —
Totals by level $— $1,228 $—
* Common stock classifi cations are presented at the sector level, which may diff er from the fund’s portfolio presentation.
Global Technology Fund 31
Statement of assets and liabilities 8/31/13
Investment in securities, at value (Note 1):
Unaffi liated issuers (identifi ed cost $9,055,391) $12,449,754
Affi liated issuers (identifi ed cost $165,648) (Notes 1 and 5) 165,648
Cash 141
Foreign currency (cost $2,563) (Note 1) 2,565
Dividends, interest and other receivables 11,149
Receivable for shares of the fund sold 6,541
Receivable for investments sold 65,091
Receivable from Manager (Note 2) 5,776
Unrealized appreciation on forward currency contracts (Note 1) 13,692
Total assets 12,720,357
Payable for investments purchased 55,721
Payable for shares of the fund repurchased 13,516
Payable for custodian fees (Note 2) 2,465
Payable for investor servicing fees (Note 2) 4,982
Payable for Trustee compensation and expenses (Note 2) 1,954
Payable for administrative services (Note 2) 25
Payable for distribution fees (Note 2) 5,576
Payable for auditing and tax fees 44,002
Payable for reports to shareholders 9,380
Unrealized depreciation on OTC swap contracts (Note 1) 5,802
Unrealized depreciation on forward currency contracts (Note 1) 6,662
Other accrued expenses 959
Total liabilities 151,044
Net assets $12,569,313
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4) $9,852,087
Accumulated net investment loss (Note 1) (108,823)
Accumulated net realized loss on investments and foreign currency transactions (Note 1) (569,551)
Net unrealized appreciation of investments and assets and liabilities in foreign currencies 3,395,600
Total — Representing net assets applicable to capital shares outstanding $12,569,313
(Continued on next page)
The accompanying notes are an integral part of these fi nancial statements.
32 Global Technology Fund
Statement of assets and liabilities (Continued)
Net asset value and redemption price per class A share ($8,354,867 divided by 501,322 shares) $16.67
Off ering price per class A share (100/94.25 of $16.67)* $17.69
Net asset value and off ering price per class B share ($1,105,343 divided by 68,674 shares)** $16.10
Net asset value and off ering price per class C share ($1,199,189 divided by 74,510 shares)** $16.09
Net asset value and redemption price per class M share ($91,823 divided by 5,635 shares) $16.30
Off ering price per class M share (100/96.50 of $16.30)* $16.89
Net asset value, off ering price and redemption price per class R share
($23,664 divided by 1,434 shares) $16.50
Net asset value, off ering price and redemption price per class Y share
($1,794,427 divided by 106,550 shares) $16.84
*On single retail sales of less than $50,000. On sales of $50,000 or more the off ering price is reduced.
**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of these fi nancial statements.
Global Technology Fund 33
Statement of operations Year ended 8/31/13
Dividends (net of foreign tax of $3,201) $168,318
Interest (including interest income of $186 from investments in affi liated issuers) (Note 5) 259
Total investment income 168,577
Compensation of Manager (Note 2) 76,055
Investor servicing fees (Note 2) 32,790
Custodian fees (Note 2) 13,550
Trustee compensation and expenses (Note 2) 1,009
Distribution fees (Note 2) 43,561
Administrative services (Note 2) 343
Reports to shareholders 17,044
Auditing and tax fees 47,587
Other 3,132
Fees waived and reimbursed by Manager (Note 2) (58,522)
Total expenses 176,549
Expense reduction (Note 2) (262)
Net expenses 176,287
Net investment loss (7,710)
Net realized gain on investments (Notes 1 and 3) 588,900
Net realized loss on foreign currency transactions (Note 1) (66,363)
Net realized gain on written options (Notes 1 and 3) 2,520
Net unrealized depreciation of assets and liabilities in foreign currencies during the year (3,857)
Net unrealized depreciation of investments during the year (280,717)
Net gain on investments 240,483
Net increase in net assets resulting from operations $232,773
The accompanying notes are an integral part of these fi nancial statements