Annual Report by Investment Company Form N CSR

2024-09-03PTEL8_PutnamFocusedEquityFund_ClassA_TSRAnnual

	UNITED STATES

	SECURITIES AND EXCHANGE COMMISSION

	Washington, D.C. 20549

	FORM N-CSR

	CERTIFIED SHAREHOLDER REPORT OF REGISTERED

	MANAGEMENT INVESTMENT COMPANIES

	Investment Company Act file number:	(811-07513)

	Exact name of registrant as specified in charter:	Putnam Funds Trust

	Address of principal executive offices:	100 Federal Street, Boston, Massachusetts 02110

	Name and address of agent for service:	Stephen Tate, Vice President

		100 Federal Street

		Boston, Massachusetts 02110

	Copy to:	Bryan Chegwidden, Esq.

		Ropes & Gray LLP

		1211 Avenue of the Americas

		New York, New York 10036

		James E. Thomas, Esq.

		Ropes & Gray LLP

		800 Boylston Street

		Boston, Massachusetts 02199

	Registrant's telephone number, including area code:	(617) 292-1000

	Date of fiscal year end:	August 31, 2024

	Date of reporting period:	September 1, 2023 - August 31, 2024

	Item 1. Report to Stockholders:

	The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940:

	Item 2. Code of Ethics:

(a) The fund's principal executive, financial and accounting officers are employees of Putnam Investment Management, LLC, the Fund's investment manager, or Franklin Templeton. As such they are subject to a comprehensive Code of Ethics adopted and administered by Putnam Investment Management, LLC and Franklin Templeton which is designed to protect the interests of the firm and its clients. The Fund has adopted a Code of Ethics which incorporates the Code of Ethics of Franklin Templeton with respect to all of its officers and Trustees who are employees of Putnam Investment Management, LLC and Franklin Templeton. For this reason, the Fund has not adopted a separate code of ethics governing its principal executive, financial and accounting officers.

(c) In connection with the acquisition of Putnam Investments by Franklin Templeton, the Putnam Investments Code of Ethics was amended effective January 1, 2024 to reflect revised compliance processes, including: (i) Compliance with the Putnam Investments Code of Ethics will be viewed as compliance with the Franklin Templeton Code for certain Putnam employees who are dual-hatted in Franklin Templeton advisory entities (ii) Certain Franklin Templeton employees are required to hold shares of Putnam mutual funds at Putnam Investor Services, Inc. and (iii) Certain provisions of the Putnam Investments Code of Ethics are amended that are no longer needed due to organizational changes. Effective March 4, 2024, the majority of legacy Putnam employees transitioned to Franklin Templeton policies outlined in the Franklin Templeton Code.

	Item 3. Audit Committee Financial Expert:

The Funds' Audit, Compliance and Risk Committee is comprised solely of Trustees who are "independent" (as such term has been defined by the Securities and Exchange Commission ("SEC") in regulations implementing Section 407 of the Sarbanes-Oxley Act (the "Regulations")). The Trustees believe that each member of the Audit, Compliance and Risk Committee also possesses a combination of knowledge and experience with respect to financial accounting matters, as well as other attributes, that qualifies him or her for service on the Committee. In addition, the Trustees have determined that each of Mr. McGreevey and Mr. Singh qualifies as an "audit committee financial expert" (as such term has been defined by the Regulations) based on their review of his or her pertinent experience and education.The SEC has stated, and the funds' amended and restated agreement and Declaration of Trust provides, that the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the Audit, Compliance and Risk Committee and the Board of Trustees in the absence of such designation or identification.

	Item 4. Principal Accountant Fees and Services:

	The following table presents fees billed in each of the last two fiscal years for services rendered to the fund by the fund's independent auditor:

Fiscal year ended	Audit Fees	Audit-Related Fees	Tax Fees	All Other Fees
August 31, 2024	$53,425	$ -	$9,476	$ -
August 31, 2023	$47,439	$ -	$14,186	$ -

	For the fiscal years ended August 31, 2024 and August 31, 2023, the fund's independent auditor billed aggregate non-audit fees in the amounts of $1,040,273 and $255,929 respectively, to the fund, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the fund.

	Audit Fees represent fees billed for the fund's last two fiscal years relating to the audit and review of the financial statements included in annual reports and registration statements, and other services that are normally provided in connection with statutory and regulatory filings or engagements.

	Audit-Related Fees represent fees billed in the fund's last two fiscal years for services traditionally performed by the fund's auditor, including accounting consultation for proposed transactions or concerning financial accounting and reporting standards and other audit or attest services not required by statute or regulation.

	Tax Fees represent fees billed in the fund's last two fiscal years for tax compliance, tax planning and tax advice services. Tax planning and tax advice services include assistance with tax audits, employee benefit plans and requests for rulings or technical advice from taxing authorities.

	Pre-Approval Policies of the Audit, Compliance and Risk Committee. The Audit, Compliance and Risk Committee of the Putnam funds has determined that, as a matter of policy, all work performed for the funds by the funds' independent auditors will be pre-approved by the Committee itself and thus will generally not be subject to pre-approval procedures.

The Audit, Compliance and Risk Committee also has adopted a policy to pre-approve the engagement by Putnam Management and certain of its affiliates of the funds' independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by Putnam Management or certain of its affiliates are typically submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees, and why this work should be performed by that particular audit firm as opposed to another one. In reviewing such requests, the Committee considers, among other things, whether the provision of such services by the audit firm are compatible with the independence of the audit firm.

	The following table presents fees billed by the fund's independent auditor for services required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

Fiscal year ended	Audit-Related Fees	Tax Fees	All Other Fees	Total Non-Audit Fees
August 31, 2024	$ -	$861,963	$168,834	$1,030,797
August 31, 2023	$ -	$241,743	$ -	$241,743

	(i) Not applicable

	(j) Not applicable

	Item 5. Audit Committee of Listed Registrants

	Not applicable

	Item 6. Investments:

	The registrant's schedule of investments in unaffiliated issuers is included in the Financial Statements and Other Important Information in Item 7 below.

	Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

Putnam
Focused Equity
Fund

Financial Statements and Other Important Information

Annual | August 31, 2024

Table of Contents

Report of Independent Registered Public Accounting Firm	1
The fund's portfolio	2
Financial statements	6
Financial highlights	9
Notes to financial statements	11
Federal tax information	18
Changes in and disagreements with accountants	19
Results of any shareholder votes	19
Remuneration paid to directors, officers, and others	19
Board approval of management and subadvisory agreements	20

Financial Statements and Other Important Information-Annual

franklintempleton.com

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Putnam Funds Trust and Shareholders of
Putnam Focused Equity Fund:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the fund's portfolio, of Putnam Focused Equity Fund (one of the funds constituting Putnam Funds Trust, referred to hereafter as the "Fund") as of August 31, 2024, the related statement of operations for the year ended August 31, 2024, the statement of changes in net assets for each of the two years in the period ended August 31, 2024, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2024 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2024 and the financial highlights for each of the five years in the period ended August 31, 2024 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2024 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 17, 2024

We have served as the auditor of one or more investment companies in the Putnam Funds family of funds since at least 1957. We have not been able to determine the specific year we began serving as auditor.

Focused Equity Fund

1

The fund's portfolio8/31/24

	COMMON STOCKS (98.7%)*	Shares	Value
	Air freight and logistics (1.7%)
	FedEx Corp. S	39,600	$11,831,292
			11,831,292
	Banks (2.4%)
	Citigroup, Inc.	254,920	15,968,189
			15,968,189
	Beverages (2.3%)
	Coca-Cola Co. (The)	220,100	15,950,647
			15,950,647
	Broadline retail (4.9%)
	Amazon.com, Inc. †	185,800	33,165,300
			33,165,300
	Capital markets (2.3%)
	Charles Schwab Corp. (The)	239,300	15,578,430
			15,578,430
	Chemicals (1.5%)
	Corteva, Inc.	178,900	10,250,970
			10,250,970
	Consumer finance (1.8%)
	Capital One Financial Corp.	84,000	12,342,120
			12,342,120
	Consumer staples distribution and retail (3.3%)
	Walmart, Inc. S	287,100	22,172,733
			22,172,733
	Electric utilities (2.4%)
	NextEra Energy, Inc.	206,400	16,617,264
			16,617,264
	Electronic equipment, instruments, and components (1.3%)
	Vontier Corp.	255,200	8,939,656
			8,939,656
	Entertainment (1.2%)
	Netflix, Inc. †	11,400	7,995,390
			7,995,390
	Financial services (2.4%)
	Apollo Global Management, Inc.	143,800	16,641,974
			16,641,974
	Ground transportation (1.6%)
	Canadian Pacific Kansas City, Ltd. (Canada)	133,000	11,031,020
			11,031,020
	Health care equipment and supplies (3.0%)
	Intuitive Surgical, Inc. †	40,900	20,148,567
			20,148,567
	Health care providers and services (3.7%)
	UnitedHealth Group, Inc.	42,100	24,847,420
			24,847,420
	Hotels, restaurants, and leisure (3.3%)
	Booking Holdings, Inc.	3,200	12,509,536
	Hilton Worldwide Holdings, Inc.	45,400	9,971,656
			22,481,192
	Insurance (3.8%)
	AIA Group, Ltd. (Hong Kong)	1,933,600	13,617,724
	AXA SA (France)	313,051	11,914,440
			25,532,164
	Interactive media and services (6.4%)
	Alphabet, Inc. Class A	125,500	20,504,190
	Meta Platforms, Inc. Class A	44,700	23,302,557
			43,806,747
	Machinery (2.2%)
	Otis Worldwide Corp.	158,837	15,040,276
			15,040,276

2

Focused Equity Fund

	COMMON STOCKS (98.7%)* cont.	Shares	Value
	Media (0.7%)
	Charter Communications, Inc. Class A † S	13,513	$4,696,308
			4,696,308
	Office REITs (1.5%)
	Vornado Realty Trust R	299,700	10,300,689
			10,300,689
	Oil, gas, and consumable fuels (4.4%)
	Cenovus Energy, Inc. (Canada)	380,819	7,061,675
	Exxon Mobil Corp.	193,300	22,797,802
			29,859,477
	Passenger airlines (1.6%)
	Ryanair Holdings PLC ADR (Ireland)	97,500	10,867,350
			10,867,350
	Pharmaceuticals (5.8%)
	AstraZeneca PLC ADR (United Kingdom)	201,700	17,672,954
	Eli Lilly and Co.	22,600	21,696,452
			39,369,406
	Semiconductors and semiconductor equipment (11.0%)
	Advanced Micro Devices, Inc. †	112,200	16,668,432
	Analog Devices, Inc.	43,200	10,145,088
	Broadcom, Inc.	40,600	6,610,492
	NVIDIA Corp.	343,300	40,979,721
			74,403,733
	Software (11.4%)
	Fair Isaac Corp. †	4,100	7,094,107
	Microsoft Corp.	145,400	60,652,156
	Oracle Corp.	66,800	9,438,172
			77,184,435
	Specialty retail (1.9%)
	Home Depot, Inc. (The) S	35,500	13,081,750
			13,081,750
	Technology hardware, storage, and peripherals (8.9%)
	Apple, Inc.	227,800	52,166,200
	Seagate Technology Holdings PLC	84,900	8,451,795
			60,617,995
	Total common stocks (cost $471,915,321)	$670,722,494

	SHORT-TERM INVESTMENTS (2.6%)*	Principal amount/shares	Value
	Putnam Cash Collateral Pool, LLC 5.49% d	Shares   7,375,700	$7,375,700
	Putnam Short Term Investment Fund Class P 5.44% L	Shares   9,222,699	9,222,699
	U.S. Treasury Bills 5.324%, 10/24/24 Δ	$300,000	297,830
	U.S. Treasury Bills 5.160%, 11/19/24 Δ	300,000	296,805
	U.S. Treasury Bills 5.094%, 12/17/24 Δ	200,000	197,134
	Total short-term investments (cost $17,389,863)	$17,390,168

	TOTAL INVESTMENTS
	Total investments (cost $489,305,184)	$688,112,662

	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, 2023 through August 31, 2024 the reporting period). Within the following notes to the portfolio, references to "Putnam Management" represent Putnam Investment Management, LLC, the fund's investment manager, an indirect wholly-owned subsidiary of Franklin Resources, Inc., and references to "ASC 820" represent Accounting Standards Codification 820Fair Value Measurements and Disclosures.
*	Percentages indicated are based on net assets of $679,477,277.
†	This security is non-income-producing.

Focused Equity Fund

3

Δ	This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period. Collateral at period end totaled $665,918 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 8).
d	Affiliated company. See Notes 1 and 5 to the financial statements regarding securities lending. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
L	Affiliated 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.
R	Real Estate Investment Trust.
S	Security on loan, in part or in entirety, at the close of the reporting period (Note 1).
	Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.

	FORWARD CURRENCY CONTRACTS at 8/31/24 (aggregate face value $107,257,488)
	Counterparty	Currency	Contract type*	Delivery date	Value	Aggregate face value	Unrealized appreciation/ (depreciation)
	Bank of America N.A.
		Canadian Dollar	Sell	10/16/24	$638,702	$629,757	$(8,945)
	Barclays Bank PLC
		Euro	Sell	9/18/24	683,687	676,149	(7,538)
	Citibank, N.A.
		Canadian Dollar	Sell	10/16/24	1,724,778	1,691,057	(33,721)
		Danish Krone	Buy	9/18/24	4,134,061	4,140,291	(6,230)
		Danish Krone	Sell	9/18/24	4,134,061	4,089,031	(45,030)
		Euro	Sell	9/18/24	11,722,557	11,593,391	(129,166)
		Hong Kong Dollar	Sell	11/20/24	2,426,644	2,428,790	2,146
	Goldman Sachs International
		British Pound	Sell	9/18/24	3,052,035	2,967,969	(84,066)
		Canadian Dollar	Sell	10/16/24	5,851,004	5,768,186	(82,818)
	HSBC Bank USA, National Association
		Hong Kong Dollar	Sell	11/20/24	2,523,422	2,525,794	2,372
	JPMorgan Chase Bank N.A.
		Hong Kong Dollar	Sell	11/20/24	1,777,443	1,778,953	1,510
	Morgan Stanley & Co. International PLC
		British Pound	Sell	9/18/24	925,357	899,595	(25,762)
		Canadian Dollar	Sell	10/16/24	3,473,629	3,424,537	(49,092)
		Euro	Sell	9/18/24	9,530,910	9,478,124	(52,786)
		Hong Kong Dollar	Sell	11/20/24	4,833,419	4,837,557	4,138
	NatWest Markets PLC
		Danish Krone	Buy	9/18/24	3,600,582	3,606,012	(5,430)
		Danish Krone	Sell	9/18/24	3,600,582	3,559,235	(41,347)
		Euro	Buy	9/18/24	561,351	550,340	11,011
	State Street Bank and Trust Co.
		British Pound	Sell	9/18/24	9,181,193	8,927,990	(253,203)
		Canadian Dollar	Sell	10/16/24	3,542,656	3,489,461	(53,195)
		Danish Krone	Buy	9/18/24	7,755,970	7,581,050	174,920
		Danish Krone	Sell	9/18/24	7,755,970	7,767,379	11,409
		Euro	Sell	9/18/24	377,184	362,063	(15,121)
	Toronto-Dominion Bank
		British Pound	Sell	9/18/24	2,573,004	2,500,768	(72,236)
		Canadian Dollar	Buy	10/16/24	3,702,703	3,608,159	94,544
	UBS AG
		Canadian Dollar	Sell	10/16/24	5,839,264	5,756,526	(82,738)
		Euro	Sell	9/18/24	103,200	100,881	(2,319)
	WestPac Banking Corp.
		British Pound	Sell	9/18/24	962,791	936,364	(26,427)
		Hong Kong Dollar	Sell	11/20/24	1,580,621	1,582,079	1,458
	Unrealized appreciation	303,508
	Unrealized (depreciation)	(1,077,170)
	Total	$(773,662)
*	The exchange currency for all contracts listed is the United States Dollar.

4

Focused Equity Fund

	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 defined 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 significant inputs are observable, either directly or indirectly.
	Level 3: Valuations based on inputs that are unobservable and significant 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*:
	Communication services	$56,498,445	$-	$-
	Consumer discretionary	68,728,242	-	-
	Consumer staples	38,123,380	-	-
	Energy	29,859,477	-	-
	Financials	60,530,713	25,532,164	-
	Health care	84,365,393	-	-
	Industrials	48,769,938	-	-
	Information technology	221,145,819	-	-
	Materials	10,250,970	-	-
	Real Estate	10,300,689	-	-
	Utilities	16,617,264	-	-
	Total common stocks	645,190,330	25,532,164	-
	Short-term investments	-	17,390,168	-
	Totals by level	$645,190,330	$42,922,332	$-

		Valuation inputs
	Other financial instruments:	Level 1	Level 2	Level 3
	Forward currency contracts	$-	$(773,662)	$-
	Totals by level	$-	$(773,662)	$-
*	Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.

The accompanying notes are an integral part of these financial statements.

Focused Equity Fund

5

Financial Statements

Statement of assets and liabilities

8/31/24

ASSETS
Investment in securities, at value, including $7,202,519 of securities on loan (Notes 1 and 8):
Unaffiliated issuers (identified cost $472,706,785)	$671,514,263
Affiliated issuers (identified cost $16,598,399) (Notes 1 and 5)	16,598,399
Foreign currency (cost $9) (Note 1)	8
Dividends, interest and other receivables	812,178
Foreign tax reclaim	696,511
Receivable for shares of the fund sold	164,078
Unrealized appreciation on forward currency contracts (Note 1)	303,508
Prepaid assets	33,425
Total assets	690,122,370
LIABILITIES
Payable for shares of the fund repurchased	219,389
Payable for compensation of Manager (Note 2)	1,022,571
Payable for custodian fees (Note 2)	11,508
Payable for investor servicing fees (Note 2)	384,076
Payable for Trustee compensation and expenses (Note 2)	184,012
Payable for administrative services (Note 2)	1,119
Payable for distribution fees (Note 2)	241,692
Unrealized depreciation on forward currency contracts (Note 1)	1,077,170
Collateral on securities loaned, at value (Note 1)	7,375,700
Other accrued expenses	127,856
Total liabilities	10,645,093
Net assets	$679,477,277
Represented by
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)	$540,698,989
Total distributable earnings (Note 1)	138,778,288
Total - Representing net assets applicable to capital shares outstanding	$679,477,277
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
Net asset value and redemption price per class A share ($512,150,494 divided by 14,517,027 shares)	$35.28
Offering price per class A share (100/94.25 of $35.28)*	$37.43
Net asset value and offering price per class B share ($1,434,381 divided by 45,422 shares)**	$31.58
Net asset value and offering price per class C share ($25,506,590 divided by 806,756 shares)**	$31.62
Net asset value, offering price and redemption price per class R share ($6,924,602 divided by 201,509 shares)	$34.36
Net asset value, offering price and redemption price per class R6 share ($14,198,016 divided by 387,720 shares)	$36.62
Net asset value, offering price and redemption price per class Y share ($119,263,194 divided by 3,288,404 shares)	$36.27

*	On single retail sales of less than $50,000. On sales of $50,000 or more the offering 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 financial statements.

6	Focused Equity Fund

Statement of operations

Year ended 8/31/24

Investment income
Dividends (net of foreign tax of $153,813)	$7,102,022
Interest (including interest income of $391,769 from investments in affiliated issuers) (Note 5)	455,927
Other income (Note 1)	831,855
Securities lending (net of expenses) (Notes 1 and 5)	55,534
Total investment income	8,445,338
EXPENSES
Compensation of Manager (Note 2)	3,869,466
Investor servicing fees (Note 2)	1,150,049
Custodian fees (Note 2)	25,428
Trustee compensation and expenses (Note 2)	29,984
Distribution fees (Note 2)	1,491,609
Administrative services (Note 2)	16,442
Other	328,925
Total expenses	6,911,903
Expense reduction (Note 2)	(5,464)
Net expenses	6,906,439
Net investment income	1,538,899
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities from unaffiliated issuers (Notes 1 and 3)	79,364,030
Foreign currency transactions (Note 1)	(22,793)
Forward currency contracts (Note 1)	927,453
Total net realized gain	80,268,690
Change in net unrealized appreciation (depreciation) on:
Securities from unaffiliated issuers	76,036,298
Assets and liabilities in foreign currencies	10,918
Forward currency contracts	(915,169)
Total change in net unrealized depreciation	75,132,047
Net gain on investments	155,400,737
Net increase in net assets resulting from operations	$156,939,636

The accompanying notes are an integral part of these financial statements.

Focused Equity Fund

7

Statement of changes in net assets 

	Year ended 8/31/24	Year ended 8/31/23
Increase in net assets
Operations
Net investment income	$1,538,899	$2,989,028
Net realized gain on investments and foreign currency transactions	80,268,690	6,603,371
Change in net unrealized appreciation (depreciation) of investments and assets and liabilities in foreign currencies	75,132,047	68,979,512
Net increase in net assets resulting from operations	156,939,636	78,571,911
Distributions to shareholders (Note 1):
From ordinary income
Net investment income
Class A	(2,261,476)	(8,501,819)
Class B	(17,466)	(80,557)
Class C	(149,730)	(479,034)
Class R	(35,662)	(137,577)
Class R6	(103,741)	(425,023)
Class Y	(534,300)	(2,622,762)
Net realized short-term gain on investments
Class A	-	(223,385)
Class B	-	(4,950)
Class C	-	(27,122)
Class R	-	(4,072)
Class R6	-	(9,319)
Class Y	-	(61,370)
From capital gain on investments
Net realized long-term gain on investments
Class A	(1,706,200)	(16,349,925)
Class B	(13,177)	(344,678)
Class C	(112,966)	(1,907,252)
Class R	(26,906)	(297,005)
Class R6	(78,268)	(679,271)
Class Y	(403,110)	(4,473,554)
Decrease from capital share transactions (Note 4)	(83,716,430)	(41,115,184)
Total increase in net assets	67,780,204	828,052
Net assets
Beginning of year	611,697,073	610,869,021
End of year	$679,477,277	$611,697,073

The accompanying notes are an integral part of these financial statements.

8	Focused Equity Fund

Financial highlights

(For a common share outstanding throughout the period)

INVESTMENT OPERATIONS	LESS DISTRIBUTIONS	RATIOS AND SUPPLEMENTAL DATA
Period ended	Net asset value, beginning of period	Net investment income (loss)a	Net realized and unrealized gain (loss) on investments	Total from investment operations	From net investment income	From net realized gain on investments	Total distributions	Net asset value, end of period	Total return at net asset value (%)b	Net assets, end of period (in thousands)	Ratio of expenses to average net assets (%)c	Ratio of net investment income (loss) to average net assets (%)	Portfolio turnover (%)
Class A
August 31, 2024	$27.83	.07	7.64	7.71	(.15)	(.11)	(.26)	$35.28	27.94	$512,150	1.11	.23	30
August 31, 2023	25.93	.13	3.36	3.49	(.54)	(1.05)	(1.59)	27.83	14.45	442,601	1.15	.52	20
August 31, 2022	30.72	.17	(2.52)	(2.35)	(.01)	(2.43)	(2.44)	25.93	(8.42)	411,469	1.14d	.60	19
August 31, 2021	24.12	.11	6.49	6.60	-	-	-	30.72	27.36	456,675	1.15e,f	.41e	77
August 31, 2020	21.69	.05	2.87	2.92	-	(.49)	(.49)	24.12	13.62	390,813	1.32e	.22e	294
Class B
August 31, 2024	$25.12	(.17)	6.89	6.72	(.15)	(.11)	(.26)	$31.58	27.00	$1,434	1.86	(.62)	30
August 31, 2023	23.43	(.06)	3.04	2.98	(.24)	(1.05)	(1.29)	25.12	13.59	4,116	1.90	(.28)	20
August 31, 2022	28.19	(.05)	(2.27)	(2.32)	(.01)	(2.43)	(2.44)	23.43	(9.11)	9,968	1.89d	(.21)	19
August 31, 2021	22.31	(.10)	5.98	5.88	-	-	-	28.19	26.36	20,123	1.90e,f	(.38)e	77
August 31, 2020	20.24	(.11)	2.67	2.56	-	(.49)	(.49)	22.31	12.80	26,938	2.07e	(.55)e	294
Class C
August 31, 2024	$25.15	(.15)	6.88	6.73	(.15)	(.11)	(.26)	$31.62	27.01	$25,507	1.86	(.54)	30
August 31, 2023	23.48	(.06)	3.04	2.98	(.26)	(1.05)	(1.31)	25.15	13.57	29,605	1.90	(.27)	20
August 31, 2022	28.24	(.06)	(2.26)	(2.32)	(.01)	(2.43)	(2.44)	23.48	(9.09)	51,468	1.89d	(.22)	19
August 31, 2021	22.34	(.10)	6.00	5.90	-	-	-	28.24	26.41	110,048	1.90e,f	(.39)e	77
August 31, 2020	20.27	(.14)	2.70	2.56	-	(.49)	(.49)	22.34	12.78	158,407	2.07e	(.68)e	294
Class R
August 31, 2024	$27.18	(.01)	7.45	7.44	(.15)	(.11)	(.26)	$34.36	27.61	$6,925	1.36	(.04)	30
August 31, 2023	25.37	.06	3.28	3.34	(.48)	(1.05)	(1.53)	27.18	14.13	7,391	1.40	.26	20
August 31, 2022	30.17	.10	(2.46)	(2.36)	(.01)	(2.43)	(2.44)	25.37	(8.62)	7,174	1.39d	.35	19
August 31, 2021	23.75	.04	6.38	6.42	-	-	-	30.17	27.03	8,030	1.40e,f	.14e	77
August 31, 2020	21.41	-g	2.83	2.83	-	(.49)	(.49)	23.75	13.37	8,363	1.57e	-e,h	294
Class R6
August 31, 2024	$28.76	.18	7.94	8.12	(.15)	(.11)	(.26)	$36.62	28.46	$14,198	.73	.57	30
August 31, 2023	26.76	.24	3.46	3.70	(.65)	(1.05)	(1.70)	28.76	14.87	20,877	.74	.92	20
August 31, 2022	31.50	.29	(2.59)	(2.30)	(.01)	(2.43)	(2.44)	26.76	(8.03)	17,415	.74d	1.00	19
August 31, 2021	24.64	.22	6.64	6.86	-	-	-	31.50	27.84	20,768	.75e,f	.80e	77
August 31, 2020	22.05	.15	2.93	3.08	-	(.49)	(.49)	24.64	14.13	18,333	.87e	.69e	294
Class Y
August 31, 2024	$28.53	.15	7.85	8.00	(.15)	(.11)	(.26)	$36.27	28.27	$119,263	.86	.48	30
August 31, 2023	26.55	.20	3.44	3.64	(.61)	(1.05)	(1.66)	28.53	14.73	107,108	.90	.76	20
August 31, 2022	31.32	.24	(2.57)	(2.33)	(.01)	(2.43)	(2.44)	26.55	(8.18)	113,376	.89d	.85	19
August 31, 2021	24.53	.17	6.62	6.79	-	-	-	31.32	27.68	134,722	.90e,f	.64e	77
August 31, 2020	22.00	.10	2.92	3.02	-	(.49)	(.49)	24.53	13.88	152,930	1.07e	.43e	294

The accompanying notes are an integral part of these financial statements.

Focused Equity Fund

9

Financial highlightscont.

a	Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period.

b	Total return assumes dividend reinvestment and does not reflect the effect of sales charges.

c	Includes amounts paid through expense offset and/or brokerage service arrangements, if any (Note 2). Also excludes acquired fund fees and expenses, if any.

d	Includes one-time proxy cost of 0.01%.

e	Reflects an involuntary contractual expense limitation in effect during the period. As a result of such limitation the expenses of each class reflect a reduction of the following amounts (Note 2):

	Percentage of average net assets
August 31, 2021	0.01%
August 31, 2020	0.20

f	Includes one-time merger costs which amounted to less than 0.01% as a percentage of average net assets.

g	Amount represents less than $0.01 per share.

h	Amount represents less than 0.01% of average net assets.

The accompanying notes are an integral part of these financial statements.

10

Focused Equity Fund

Notes to financial statements 8/31/24

Unless otherwise noted, the "reporting period" represents the period from September 1, 2023 through August 31, 2024. The following table defines commonly used references within the Notes to financial statements:

References to	Represent
1940 Act	Investment Company Act of 1940, as amended
Franklin Advisers	Franklin Advisers, Inc., a direct wholly-owned subsidiary of Franklin Templeton
Franklin Distributors	Franklin Distributors, LLC, an indirect wholly-owned subsidiary of Franklin Templeton, and the fund's distributor and principal underwriter for periods on or after August 2, 2024
Franklin Templeton	Franklin Resources, Inc.
Franklin Templeton Services	Franklin Templeton Services, LLC, a wholly-owned subsidiary of Franklin Templeton
JPMorgan	JPMorgan Chase Bank, N.A.
OTC	Over-the-counter
PAC	The Putnam Advisory Company, LLC, an indirect wholly-owned subsidiary of Franklin Templeton
PIL	Putnam Investments Limited, an indirect wholly-owned subsidiary of Franklin Templeton
PSERV	Putnam Investor Services, Inc., a wholly-owned subsidiary of Franklin Templeton
Putnam Management	Putnam Investment Management, LLC, the fund's investment manager, an indirect wholly-owned subsidiary of Franklin Templeton
Putnam Retail Management	Putnam Retail Management Limited Partnership, an indirect wholly-owned subsidiary of Franklin Templeton, and the fund's distributor and principal underwriter for periods prior to August 2, 2024
SEC	Securities and Exchange Commission
State Street	State Street Bank and Trust Company

Putnam Focused Equity Fund (the fund) is a diversified series of Putnam Funds Trust (the Trust), a Massachusetts business trust registered under the 1940 Act, as an open-end management investment company. The goal of the fund is to seek capital appreciation. The fund invests mainly in equity securities (growth or value stocks or both) of large and midsize companies that the fund's investment manager believes have favorable investment potential. The fund's investment manager may consider, among other factors, a company's valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. Under normal circumstances, the fund invests at least 80% of the fund's net assets in equity investments, including common stocks, preferred stocks, convertible securities, warrants, American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs). This policy may be changed only after 60 days' notice to shareholders. The fund is "non-diversified," which means it may invest a greater percentage of its assets in fewer issuers than a "diversified" fund. The fund expects to concentrate its investments in a limited number of issuers.

The fund offers the following share classes. The expenses for each class of shares may differ based on the distribution and investor servicing fees of each class, which are identified in Note 2.

Share class	Sales charge	Contingent deferred sales charge	Conversion feature
Class A	Up to 5.75%	1.00% on certain redemptions of shares bought with no initial sales charge	None
Class B *	None	5.00% phased out over six years	Converts to class A shares on September 5, 2024
Class C	None	1.00% eliminated after one year	Converts to class A shares after 8 years
Class R †	None	None	None
Class R6 †	None	None	None
Class Y †	None	None	None
* Purchases of class B shares are closed to new and existing investors except by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment.
† Not available to all investors.

In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund's management team expects the risk of material loss to be remote.

The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.

Under the fund's Agreement and Declaration of Trust, any claims asserted by a shareholder against or on behalf of the Trust (or its series), including claims against Trustees and Officers, must be brought in courts located within the Commonwealth of Massachusetts.

Note 1: Significant accounting policies

The fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.

Investment income, realized and unrealized gains and losses and expenses of the fund are borne pro-rata based on the relative net assets of each class to the total net assets of the fund, except that each class bears expenses unique to that class (including the distribution fees applicable to such classes). Each class votes as a class only with respect to its own distribution plan or other matters on which a class vote is required by law or determined by the Trustees. If the fund were liquidated, shares of each class would receive their pro-rata share of the net assets of the fund. In addition, the Trustees declare separate dividends on each class of shares.

Focused Equity Fund

11

Security valuation Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees (Trustees). The Trustees have formed a Pricing Committee to oversee the implementation of these procedures. Under compliance policies and procedures approved by the Trustees, the Trustees have designated the fund's investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the fund's administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC). The VC is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Trustees.

Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under Accounting Standards Codification 820 Fair Value Measurements and Disclosures (ASC 820). If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at the average of the last reported bid and ask prices, the "mid price" (prior to July 22, 2024, the most recent bid price was used), and is generally categorized as a Level 2 security.

Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.

Market quotations are not considered to be readily available for certain debt obligations (including short-term investments with remaining maturities of 60 days or less) and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by the fund's investment manager. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2.

Many securities markets and exchanges outside the U.S. close prior to the scheduled close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the scheduled close of the New York Stock Exchange. When reliable prices are not readily available for equity securities, such as when the value of a security has been affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund will fair value these securities as determined in accordance with procedures approved by the Trustees. This may include using an independent third-party pricing service to adjust the value of such securities to the latest indications of fair value at 4:00 p.m. (Eastern Time). These securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate.

To the extent a pricing service or dealer is unable to value a security or provides a valuation that the fund's investment manager does not believe accurately reflects the security's fair value, the security will be valued at fair value by the fund's investment manager, which has been designated as valuation designee pursuant to Rule 2a-5 under the 1940 Act, in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.

To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.

Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.

Interest income, net of any applicable withholding taxes, if any, is recorded on the accrual basis. Amortization and accretion of premiums and discounts on debt securities, if any, is recorded on the accrual basis.

Dividend income, net of any applicable withholding taxes, is recognized on the ex-dividend date except that certain dividends from foreign securities, if any, are recognized as soon as the fund is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Dividends representing a return of capital or capital gains, if any, are reflected as a reduction of cost and/or as a realized gain.

Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The fair value of foreign securities, currency holdings, and other assets and liabilities is recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when earned or incurred. The fund does not isolate that portion of realized or unrealized gains or losses resulting from changes in the foreign exchange rate on investments from fluctuations arising from changes in the market prices of the securities. Such gains and losses are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net realized exchange gains or losses on disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions and the difference between the amount of investment income and foreign withholding taxes recorded on the fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign currencies arise from changes in the value of assets and liabilities other than investments at the period end, resulting from changes in the exchange rate.

Forward currency contracts The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts are used for hedging foreign exchange risk.

The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position. Risks may exceed amounts recognized on the Statement of assets and liabilities.

Forward currency contracts outstanding at period end, if any, are listed after the fund's portfolio.

Master agreements The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties' general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral pledged to the fund is held in a segregated account by the fund's custodian and, with respect to those amounts which can be sold or repledged, is presented in the fund's portfolio.

Collateral pledged by the fund is segregated by the fund's custodian and identified in the fund's portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund's net position with each counterparty.

Termination events applicable to the fund may occur upon a decline in the fund's net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty's long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of

12

Focused Equity Fund

the fund's counterparties to elect early termination could impact the fund's future derivative activity.

At the close of the reporting period, the fund had a net liability position of $799,852 on open derivative contracts subject to the Master Agreements. Collateral pledged by the fund at period end for these agreements totaled $665,918 and may include amounts related to unsettled agreements.

Securities lending The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. The risk of borrower default will be borne by the fund's agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. Income from securities lending, if any, is net of expenses and is included in investment income on the Statement of operations. Cash collateral is invested in Putnam Cash Collateral Pool, LLC, a limited liability company that is managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. At the close of the reporting period, the fund received cash collateral of $7,375,700 and the value of securities loaned amounted to $7,202,519.

Interfund lending The fund, along with other Putnam funds, may participate in an interfund lending program pursuant to an exemptive order issued by the SEC. This program allows the fund to borrow from or lend to other Putnam funds that permit such transactions. Interfund lending transactions are subject to each fund's investment policies and borrowing and lending limits. Interest earned or paid on the interfund lending transaction will be based on the average of certain current market rates. During the reporting period, the fund did not utilize the program.

Lines of credit The fund participates, along with other Putnam funds, in a $320 million syndicated unsecured committed line of credit, provided by State Street ($160 million) and JPMorgan ($160 million), and a $235.5 million unsecured uncommitted line of credit, provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund's borrowing at a rate equal to 1.25% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the committed line of credit and 1.30% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the uncommitted line of credit. A closing fee equal to 0.04% of the committed line of credit and 0.04% of the uncommitted line of credit has been paid by the participating funds and a $75,000 fee has been paid by the participating funds to State Street as agent of the syndicated committed line of credit. In addition, a commitment fee of 0.21% per annum on any unutilized portion of the committed line of credit is allocated to the participating funds based on their relative net assets and paid quarterly. During the reporting period, the fund had no borrowings against these arrangements.

Federal taxes It is the policy of the fund to distribute all of its taxable income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.

The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

The fund may also be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. In some cases, the fund may be entitled to reclaim all or a portion of such taxes, and such reclaim amounts, if any, are reflected as an asset and income on the fund's books. In many cases, however, the fund may not receive such amounts for an extended period of time, depending on the country of investment.

As a result of several court cases, in certain countries across the European Union, the fund filed additional tax reclaims for previously withheld taxes on dividends earned in those countries (EU reclaims). When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the fund, if any, reduce the amount of foreign taxes fund shareholders can use as tax deductions or credits on their income tax returns.

Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred for an unlimited period and the carry forwards will retain their character as either short-term or long-term capital losses. At August 31, 2024, the fund had the following capital loss carryovers available, to the extent allowed by the Code, to offset future net capital gain, if any:

Loss carryover
Short-term	Long-term	Total
$55,353,763	$72,323,797	$127,677,560

Distributions to shareholders Distributions to shareholders from net investment income, if any, are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences include temporary and/or permanent differences from losses on wash sale transactions, from foreign currency gains and losses, from tax equalization, from a redesignation of taxable distributions and from partnership income. Reclassifications are made to the fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations. At the close of the reporting period, the fund reclassified $6,632,616 to decrease accumulated net investment loss, $5,362,343 to increase paid-in capital and $11,994,959 to increase accumulated net realized loss.

Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The tax basis components of distributable earnings and the federal tax cost as of the close of the reporting period were as follows:

Unrealized appreciation	$211,054,429
Unrealized depreciation	(12,388,737)
Net unrealized appreciation	198,665,692
Undistributed ordinary income	950,148
Capital loss carryforward	(127,677,560)
Undistributed long-term gains	63,706,824
Undistributed short-term gains	2,509,302
Cost for federal income tax purposes	$488,673,308

Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund.

Note 2: Management fee, administrative services and other transactions

The fund pays Putnam Management a management fee (based on the fund's average net assets and computed and paid monthly) at annual rates that may vary based on the average of the aggregate net assets of all open-end mutual funds sponsored by Putnam Management (including open-end funds managed by affiliates of Putnam Management that have been deemed to be sponsored by Putnam Management for this purpose) (excluding net assets of funds that are invested in, or that are invested in by, other Putnam funds to the extent necessary to avoid "double counting" of those assets). Such annual rates may vary as follows:

0.780%	of the first $5 billion,
0.730%	of the next $5 billion,
0.680%	of the next $10 billion,
0.630%	of the next $10 billion,
0.580%	of the next $50 billion,
0.560%	of the next $50 billion,
0.550%	of the next $100 billion and
0.545%	of any excess thereafter.

For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.613% of the fund's average net assets.

Focused Equity Fund

13

Putnam Management has contractually agreed, through December 30, 2025, to waive fees and/or reimburse the fund's expenses to the extent necessary to limit the cumulative expenses of the fund, exclusive of brokerage, interest, taxes, investment-related expenses, extraordinary expenses, acquired fund fees and expenses and payments under the fund's investor servicing contract, investment management contract and distribution plans, on a fiscal year-to-date basis to an annual rate of 0.20% of the fund's average net assets over such fiscal year-to-date period. During the reporting period, the fund's expenses were not reduced as a result of this limit.

Effective July 15, 2024, Franklin Advisers was retained by Putnam Management as a sub-adviser for the fund pursuant to a new sub-advisory agreement between Putnam Management and Franklin Advisers. Pursuant to the agreement, Franklin Advisers provides certain advisory and related services. Putnam Management pays a monthly fee to Franklin Advisers based on the costs of Franklin Advisers in providing these services to the fund, which may include a mark-up not to exceed 15% over such costs.

PIL is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.25% of the average net assets of the portion of the fund managed by PIL.

PAC is authorized by the Trustees to manage a separate portion of the assets of the fund, as designated from time to time by Putnam Management or PIL. PAC did not manage any portion of the assets of the fund during the reporting period. If Putnam Management or PIL were to engage the services of PAC, Putnam Management or PIL, as applicable, would pay a quarterly sub-advisory fee to PAC for its services at the annual rate of 0.25% of the average net assets of the portion of the fund's assets for which PAC is engaged as sub-adviser.

On January 1, 2024, a subsidiary of Franklin Templeton acquired Putnam U.S. Holdings I, LLC ("Putnam Holdings"), the parent company of Putnam Management, PIL and PAC, in a stock and cash transaction (the "Transaction"). As a result of the Transaction, Putnam Management, PIL and PAC became indirect, wholly-owned subsidiaries of Franklin Templeton. The Transaction also resulted in the automatic termination of the investment management contract between the fund and Putnam Management, the sub-management contract for the fund between Putnam Management and PIL, and the sub-advisory contract for the fund among Putnam Management, PIL and PAC that were in place for the fund before the Transaction (together, the "Previous Advisory Contracts"). However, for the period from January 1, 2024 until January 31, 2024, Putnam Management, PIL and PAC continued to provide uninterrupted services with respect to the fund pursuant to interim investment management, sub-management and sub-advisory contracts (together, the "Interim Advisory Contracts") that were approved by the Board of Trustees. The terms of the Interim Advisory Contracts were identical to those of the Previous Advisory Contracts, except for the term of the contracts and those provisions required by regulation. On January 31, 2024, new investment management, sub-management and sub-advisory contracts were approved by fund shareholders at a shareholder meeting held in connection with the Transaction (together, the "New Advisory Contracts"). The New Advisory Contracts took effect on January 31, 2024 and replaced the Interim Advisory Contracts. The terms of the New Advisory Contracts are substantially similar to those of the Previous Advisory Contracts, and the fee rates payable under the New Advisory Contracts are the same as the fee rates under the Previous Advisory Contracts.

Effective June 1, 2024, Franklin Templeton Services provides certain administrative services to the fund. The fee for those services is paid by the fund's investment manager based on the fund's average daily net assets and is not an additional expense of the fund.

The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees.

Custodial functions for the fund's assets are provided by State Street. Custody fees are based on the fund's asset level, the number of its security holdings and transaction volumes.

PSERV, an affiliate of Putnam Management, provides investor servicing agent functions to the fund. PSERV received fees for investor servicing for class A, class B, class C, class R and class Y shares that included (1) a per account fee for each direct and underlying non-defined contribution account (retail account) of the fund; (2) a specified rate of the fund's assets attributable to defined contribution plan accounts; and (3) a specified rate based on the average net assets in retail accounts. PSERV has agreed that the aggregate investor servicing fees for each fund's retail and defined contribution accounts for these share classes will not exceed an annual rate of 0.25% of the fund's average assets attributable to such accounts.

Class R6 shares paid a monthly fee based on the average net assets of class R6 shares at an annual rate of 0.05%.

During the reporting period, the expenses for each class of shares related to investor servicing fees were as follows:

Class A	$868,577
Class B	4,782
Class C	49,383
Class R	12,840
Class R6	8,650
Class Y	205,817
Total	$1,150,049

The fund has entered into expense offset arrangements with PSERV and State Street whereby PSERV's and State Street's fees are reduced by credits allowed on cash balances. For the reporting period, the fund's expenses were reduced by $5,464 under the expense offset arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $508, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.

The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable from July 1, 1995 through December 31, 2023. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.

The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee's average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee's lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.

The fund has adopted distribution plans (the Plans) with respect to the following share classes pursuant to Rule 12b-1 under the 1940 Act. The purpose of the Plans is to compensate Franklin Distributors, or for periods prior to August 2, 2024, Putnam Retail Management, for services provided and expenses incurred in distributing shares of the fund. The Plans provide payments by the fund to Franklin Distributors and to Putnam Retail Management at an annual rate of up to the following amounts (Maximum %) of the average net assets attributable to each class. The Trustees have approved payment by the fund at the following annual rate (Approved %) of the average net assets attributable to each class. During the reporting period, the class-specific expenses related to distribution fees were as follows:

	Maximum %	Approved %	Franklin Distributors Amount	Putnam Retail Management Amount	Totals
Class A	0.35%	0.25%	$105,411	$1,062,895	$1,168,306
Class B	1.00%	1.00%	1,188	24,094	$25,282
Class C	1.00%	1.00%	21,113	242,599	$263,712
Class R	1.00%	0.50%	2,836	31,473	$34,309
Total			$130,548	$1,361,061	$1,491,609

For the period from August 2, 2024 through August 31, 2024, Franklin Distributors, acting as underwriter, received net commissions of $3,417 from the sale of class A shares and received $14 and $81 in contingent deferred sales charges from redemptions of class B and class C shares, respectively. For the period September 1, 2023 through August 1, 2024, Putnam Retail Management, acting as underwriter, received net commissions of $41,220 from the sale of class A shares and received no monies and $879 in contingent deferred sales charges from redemptions of class B and class C shares, respectively.

A deferred sales charge of up to 1.00% is accessed on certain redemptions of class A shares. For the period from August 2, 2024 through August 31, 2024,

14

Focused Equity Fund

Franklin Distributors, acting as underwriter, received $6 on class A redemptions. For the period from September 1, 2023 through August 1, 2024, Putnam Retail Management, acting as underwriter, received $26 on class A redemptions.

Note 3: Purchases and sales of securities

During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments, were as follows:

	Cost of purchases	Proceeds from sales
Investments in securities (Long-term)	$184,597,452	$265,779,313
U.S. government securities (Long-term)	-	-
Total	$184,597,452	$265,779,313

The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund's transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales of long-term securities from or to other Putnam funds, if any, did not represent more than 5% of the fund's total cost of purchases and/or total proceeds from sales.

Note 4: Capital shares

At the close of the reporting period, there were an unlimited number of shares of beneficial interest authorized. Transactions, including, if applicable, direct exchanges pursuant to share conversions, in capital shares were as follows:

	YEAR ENDED 8/31/24	YEAR ENDED 8/31/23
Class A	Shares	Amount	Shares	Amount
Shares sold	759,956	$23,005,453	1,429,256	$35,828,078
Shares issued in connection with reinvestment of distributions	138,447	3,841,876	1,000,136	24,043,281
	898,403	26,847,329	2,429,392	59,871,359
Shares repurchased	(2,286,717)	(69,747,992)	(2,392,076)	(60,295,528)
Net increase (decrease)	(1,388,314)	$(42,900,663)	37,316	$(424,169)

	YEAR ENDED 8/31/24	YEAR ENDED 8/31/23
Class B	Shares	Amount	Shares	Amount
Shares sold	26	$815	24	$579
Shares issued in connection with reinvestment of distributions	1,090	27,219	18,722	408,523
	1,116	28,034	18,746	409,102
Shares repurchased	(119,521)	(3,213,138)	(280,286)	(6,375,150)
Net decrease	(118,405)	$(3,185,104)	(261,540)	$(5,966,048)

	YEAR ENDED 8/31/24	YEAR ENDED 8/31/23
Class C	Shares	Amount	Shares	Amount
Shares sold	51,638	$1,404,370	76,247	$1,729,215
Shares issued in connection with reinvestment of distributions	10,485	262,229	110,343	2,409,897
	62,123	1,666,599	186,590	4,139,112
Shares repurchased	(432,439)	(11,662,487)	(1,201,616)	(27,280,834)
Net decrease	(370,316)	$(9,995,888)	(1,015,026)	$(23,141,722)

	YEAR ENDED 8/31/24	YEAR ENDED 8/31/23
Class R	Shares	Amount	Shares	Amount
Shares sold	43,712	$1,307,412	38,381	$944,705
Shares issued in connection with reinvestment of distributions	2,285	61,886	18,461	434,208
	45,997	1,369,298	56,842	1,378,913
Shares repurchased	(116,424)	(3,436,150)	(67,750)	(1,658,365)
Net decrease	(70,427)	$(2,066,852)	(10,908)	$(279,452)

	YEAR ENDED 8/31/24	YEAR ENDED 8/31/23
Class R6	Shares	Amount	Shares	Amount
Shares sold	68,613	$2,216,575	118,231	$3,108,373
Shares issued in connection with reinvestment of distributions	6,335	182,009	44,958	1,113,613
	74,948	2,398,584	163,189	4,221,986
Shares repurchased	(413,050)	(13,342,158)	(88,234)	(2,311,708)
Net increase (decrease)	(338,102)	$(10,943,574)	74,955	$1,910,278

Focused Equity Fund

15

	YEAR ENDED 8/31/24	YEAR ENDED 8/31/23
Class Y	Shares	Amount	Shares	Amount
Shares sold	380,451	$11,902,712	581,942	$14,862,476
Shares issued in connection with reinvestment of distributions	32,052	912,854	284,227	6,991,993
	412,503	12,815,566	866,169	21,854,469
Shares repurchased	(878,459)	(27,439,915)	(1,382,052)	(35,068,540)
Net decrease	(465,956)	$(14,624,349)	(515,883)	$(13,214,071)

Note 5: Affiliated transactions

Transactions during the reporting period with any company which is under common ownership or control were as follows:

Name of affiliate	Fair value as of 8/31/23	Purchase cost	Sale proceeds	Investment income	Shares outstanding and fair value as of 8/31/24
Short-term investments
Putnam Cash Collateral Pool, LLC *	$23,090,615	$400,408,276	$416,123,191	$1,210,435	$7,375,700
Putnam Short Term Investment Fund Class P **	6,029,193	94,395,795	91,202,289	391,769	9,222,699
Total Short-term investments	$29,119,808	$494,804,071	$507,325,480	$1,602,204	$16,598,399
* No management fees are charged to Putnam Cash Collateral Pool, LLC (Note 1). Investment income shown is included in securities lending income on the Statement of operations. There were no realized or unrealized gains or losses during the period.
** Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.

Note 6: Market, credit and other risks

In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. Investments in foreign securities involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations.

Note 7: Summary of derivative activity

The volume of activity for the reporting period for any derivative type that was held during the period is listed below and was based on an average of the holdings at the end of each fiscal quarter:

Forward currency contracts (contract amount)

$96,200,000

The following is a summary of the fair value of derivative instruments as of the close of the reporting period:

Fair value of derivative instruments as of the close of the reporting period
	Asset derivatives	Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815	Statement of assets and liabilities location	Fair value	Statement of assets and liabilities location	Fair value
Foreign exchange contracts	Receivables	$303,508	Payables	$1,077,170
Total		$303,508		$1,077,170

The following is a summary of realized and change in unrealized gains or losses of derivative instruments in the Statement of operations for the reporting period (Note 1):

Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments
Derivatives not accounted for as hedging instruments under ASC 815	Forward currency contracts	Total
Foreign exchange contracts	$927,453	$927,453
Total	$927,453	$927,453

Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss) on investments
Derivatives not accounted for as hedging instruments under ASC 815	Forward currency contracts	Total
Foreign exchange contracts	$(915,169)	$(915,169)
Total	$(915,169)	$(915,169)

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Focused Equity Fund

Note 8: Offsetting of financial and derivative assets and liabilities

The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions or borrowing transactions associated with securities sold short, if any, see Note 1. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.

	Bank of America N.A.	Barclays Bank PLC	Citibank, N.A.	Goldman Sachs International	HSBC Bank USA, National Association	JPMorgan Chase Bank N.A.	Morgan Stanley & Co. International PLC
Assets:
Forward currency contracts #	$-	$-	$2,146	$-	$2,372	$1,510	$4,138
Total Assets	$-	$-	$2,146	$-	$2,372	$1,510	$4,138
Liabilities:
Forward currency contracts #	8,945	7,538	214,147	166,884	-	-	127,640
Total Liabilities	$8,945	$7,538	$214,147	$166,884	$-	$-	$127,640
Total Financial and Derivative Net Assets	$(8,945)	$(7,538)	$(212,001)	$(166,884)	$2,372	$1,510	$(123,502)
Total collateral received (pledged) †##	$-	$-	$(212,001)	$(110,723)	$-	$-	$(123,502)
Net amount	$(8,945)	$(7,538)	$-	$(56,161)	$2,372	$1,510	$-
Controlled collateral received (including TBA commitments) **	$-	$-	$-	$-	$-	$-	$-
Uncontrolled collateral received	$-	$-	$-	$-	$-	$-	$-
Collateral (pledged) (including TBA commitments) **	$-	$-	$(292,670)	$(110,723)	$-	$-	$(141,370)

	NatWest Markets PLC	State Street Bank and Trust Co.	Toronto-Dominion Bank	UBS AG	WestPac Banking Corp.	Total
Assets:
Forward currency contracts #	$11,011	$186,329	$94,544	$-	$1,458	$303,508
Total Assets	$11,011	$186,329	$94,544	$-	$1,458	$303,508
Liabilities:
Forward currency contracts #	46,777	321,519	72,236	85,057	26,427	1,077,170
Total Liabilities	$46,777	$321,519	$72,236	$85,057	$26,427	$1,077,170
Total Financial and Derivative Net Assets	$(35,766)	$(135,190)	$22,308	$(85,057)	$(24,969)	$(773,662)
Total collateral received (pledged) †##	$-	$(121,155)	$-	$-	$-
Net amount	$(35,766)	$(14,035)	$22,308	$(85,057)	$(24,969)
Controlled collateral received (including TBA commitments) **	$-	$-	$-	$-	$-	$-
Uncontrolled collateral received	$-	$-	$-	$-	$-	$-
Collateral (pledged) (including TBA commitments) **	$-	$(121,155)	$-	$-	$-	$(665,918)

**	Included with Investments in securities on the Statement of assets and liabilities.
†	Additional collateral may be required from certain brokers based on individual agreements.
#	Covered by master netting agreement (Note 1).
##	Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.

Focused Equity Fund

17

Federal tax information (Unaudited)

Pursuant to ^§852 of the Internal Revenue Code, as amended, the fund hereby designates $78,552,597 as a capital gain dividend with respect to the taxable year ended August 31, 2024, or, if subsequently determined to be different, the net capital gain of such year.

The fund designated $5,154,075 of income eligible as qualifying for the dividends received deduction for corporations.

For the reporting period, the fund hereby designates $6,772,778, or the maximum amount allowable, of its taxable ordinary income earned as qualified dividends taxed at the individual net capital gain rates.

The Form 1099 that will be mailed to you in January 2025 will show the tax status of all distributions paid to your account in calendar 2024.

18

Focused Equity Fund

Changes in and disagreements with accountants

Not applicable

Results of any shareholder votes (Unaudited)
January 31, 2024 special meeting
At the meeting, a new Management Contract for your fund with Putnam Investment Management, LLC was approved, as follows:
Votes for	Votes against	Abstentions/Votes withheld
8,521,765	380,540	2,396,007
At the meeting, a new Sub-Management Contract for your fund between Putnam Investment Management, LLC and Putnam Investments Limited was approved, as follows:
Votes for	Votes against	Abstentions/Votes withheld
8,473,633	410,491	2,414,188
At the meeting, a new Sub-Advisory Contract for your fund between Putnam Investment Management, LLC, Putnam Investments Limited and The Putnam Advisory Company, LLC was approved, as follows:
Votes for	Votes against	Abstentions/Votes withheld
8,396,645	438,234	2,463,433
All tabulations are rounded to the nearest whole number.

Remuneration paid to directors, officers, and others

Remuneration paid to directors, officers, and others is included in the Notes to financial statements above.

Focused Equity Fund

19

Board approval of management and subadvisory agreements (Unaudited)

At its meeting on June 28, 2024, the Board of Trustees of your fund, including all of the Trustees who are not "interested persons" (as this term is defined in the Investment Company Act of 1940, as amended (the "1940 Act")) of the Putnam mutual funds and exchange-traded funds (collectively, the "funds") (the "Independent Trustees") approved a new subadvisory agreement (the "New Subadvisory Agreement") for your fund between Putnam Investment Management, LLC, your fund's investment adviser ("Putnam Management"), and Franklin Advisers, Inc. ("Franklin Advisers"). Franklin Advisers and Putnam Management are each indirect, wholly owned subsidiaries of Franklin Resources, Inc. ("Franklin Templeton").

The Trustees considered the proposed New Subadvisory Agreement in connection with an internal reorganization (the "Reorganization") whereby the fixed income and Investment Solutions investment operations of Putnam Management were combined with those of Franklin Advisers. Pursuant to the New Subadvisory Agreement, Putnam Management retained Franklin Advisers as sub-adviser for each Putnam equity fund so that, following the Reorganization, the Putnam Management fixed income investment personnel that moved to Franklin Advisers pursuant to the Reorganization (the "Fixed Income Personnel") could continue to provide certain services that they had historically provided to the Putnam equity funds, including, as applicable, cash management services, currency trading services and portfolio management services (the "Services"). After the Reorganization and the effectiveness of the New Subadvisory Agreement, Putnam Management remains the investment adviser to your fund and the other equity funds pursuant to existing management contracts between the equity funds and Putnam Management (the "Current Management Contracts"), Putnam Investments Limited ("PIL") continues to serve as a sub-adviser to your fund and other Putnam funds pursuant to a sub-management contract between Putnam Management and PIL (the "Current Sub-Management Contract") and The Putnam Advisory Company, LLC ("PAC") continues to serve as a sub-adviser to your fund and certain other Putnam funds pursuant to a sub-advisory contract among Putnam Management, PIL and PAC (the "Current Sub-Advisory Contract"). The Current Management Contracts, Current Sub-Management Contract and Current Sub-Advisory Contract remain in effect until June 30, 2025, unless the contracts are sooner terminated or continued pursuant to their terms.

In connection with the review process, the Independent Trustees' independent legal counsel (as that term is defined in Rule 0-1(a)(6)(i) under the 1940 Act) met with representatives of Putnam Management and Franklin Templeton to discuss the contract review materials that would be furnished to the Contract Committee. The Board of Trustees, with the assistance of its Contract Committee (which consists solely of Independent Trustees) and its independent legal counsel, requested and evaluated all information it deemed reasonably necessary under the circumstances in connection with its review of the New Subadvisory Agreement. Over the course of several months ending in June 2024, the Contract Committee met on a number of occasions with representatives of Putnam Management and Franklin Templeton, and separately in executive session, to consider the information provided. Throughout this process, the Contract Committee was assisted by the members of the Board of Trustees' independent staff and by independent legal counsel for the Independent Trustees.

At the Board of Trustees' June 2024 meeting, the Contract Committee met in executive session to discuss and consider its recommendations with respect to the approval of the New Subadvisory Agreement. At that meeting, the Contract Committee also met in executive session with the other Independent Trustees to discuss its observations and recommendation.

The Trustees considered that, under the New Subadvisory Agreement, the Fixed Income Personnel would provide any necessary Services to the applicable equity funds in their capacity as employees of Franklin Advisers under generally the same terms and conditions related to the equity funds as such services were previously provided by the Fixed Income Personnel in their capacity as employees of Putnam Management under the Current Management Contracts. The Trustees also considered that Putnam Management would be responsible for overseeing the Services provided to the equity funds by Franklin Advisers under the New Subadvisory Agreement and would compensate Franklin Advisers for such services out of the fees it receives under the Current Management Contracts. The Trustees further noted Putnam Management's and Franklin Templeton's representations that Franklin Advisers' appointment as sub-adviser to the equity funds would not result in any material change in the nature or level of investment advisory services provided to the equity funds and that the management fee rates paid by the equity funds would not increase as a result of the New Subadvisory Agreement. In addition, the Trustees considered that counsel to Franklin Advisers and Putnam Management had provided a legal opinion that shareholder approval of the New Subadvisory Agreement was not required under the 1940 Act.

The Trustees considered that, in connection with their review of your fund's Current Management Contract, Current Sub-Management Contract and Current Sub-Advisory Contract over the course of several months ending in June 2023, they had considered information regarding the nature, extent and quality of the services provided to the fund, the fund's performance, the fund's management fees and expense ratios, the profitability of Putnam Management and its affiliates in providing services to the fund, whether there had been economies of scale with respect to the management of the fund and other benefits received by Putnam Management and its affiliates as a result of their relationships with the fund. As part of the review process in connection with the consideration of the New Subadvisory Agreement, the Trustees received and reviewed updated information regarding the profitability of Putnam Management and its affiliates, potential economies of scale, other benefits received by Putnam Management and its affiliates as a result of their relationships with the funds, and the performance and expenses of the funds. The Trustees also received, in connection with their review of the New Subadvisory Agreement, certain performance information for Franklin Advisers' fixed income and Investment Solutions investment strategies and information regarding the revenues, expenses and profitability of Franklin Templeton's global investment management business and its U.S. registered investment company business, which includes the financial results of Franklin Advisers. Given the scope of the Services to be provided pursuant to the New Subadvisory Agreement, the fact that the New Sub-Advisory Agreement would maintain the current level of services received by your fund, and the fact that the New Subadvisory Agreement would not impact the fees payable by the fund, since Putnam Management would be responsible for the payment of fees under the New Subadvisory Agreement, the Trustees considered, but did not rely to a significant extent on the information provided to them described in this paragraph in connection with their consideration of the New Subadvisory Agreement.

20

Focused Equity Fund

Board of Trustees' Conclusion

After considering the factors described above, as well as other factors, the Board of Trustees, including all of the Independent Trustees, concluded that the fees payable under the New Subadvisory Agreement represented reasonable compensation in light of the nature and quality of the services that would continue to be provided to the equity funds, and determined to approve the New Subadvisory Agreement for your fund. This conclusion was based on a comprehensive consideration of all information provided to the Trustees and was not the result of any single factor.

Focused Equity Fund

21

© 2024 Franklin Templeton. All rights reserved.	39115-AFSOI 10/24

	Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

	Included in Item 7 above.

	Item 9. Proxy Disclosure for Open-End Management Investment Companies.

	Included in Item 7 above.

	Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

	Included in Item 7 above.

	Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

	Included in Item 7 above.

	Item 12. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:

	Not applicable

	Item 13. Portfolio Managers of Closed-End Investment Companies

	Not Applicable

	Item 14. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:

	Not applicable

	Item 15. Submission of Matters to a Vote of Security Holders:

	Not applicable

	Item 16. Controls and Procedures:

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

	(b) Changes in internal control over financial reporting: Not applicable

	Item 17. Disclosures of Securities Lending Activities for Closed-End Investment Companies:

	Not Applicable

	Item 18. Recovery of Erroneously Awarded Compensation.

	(a) No

	(b) No

	Item 19. Exhibits:

	(a)(1) The Code of Ethics of The Putnam Funds and Franklin Templeton are filed herewith.

	(a)(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant's securities are listed.

	(a)(3) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), are filed herewith:

	(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith.

	SIGNATURES

	Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Putnam Funds Trust

	By (Signature and Title):

	/s/ Jeffrey White

	Jeffrey White Principal Accounting Officer

	Date: October 28, 2024

	Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	By (Signature and Title):

	/s/ Jonathan S. Horwitz

	Jonathan S. Horwitz Principal Executive Officer

	Date: October 28, 2024

	By (Signature and Title):

	/s/ Jeffrey White

	Jeffrey White Principal Financial Officer

	Date: October 28, 2024