International Value Fund Annual Report - Putnam Investments · 2020. 8. 20. · Putnam International Value Fund (class A shares before sales charge) Fund’s benchmark (MSCI EAFE

Putnam International Value Fund

IMPORTANT NOTICE: Beginning on January 1, 2021, reports like this one will no longer automatically be sent by mail. See inside for more information.

FUND SYMBOL CLASS A

PNGAX

Annual report 6 | 30 | 20

Value funds look for stocks that have been overlooked by other investors and that may be selling for less than their true worth.

Putnam International Value FundAnnual report 6 | 30 | 20

Message from the Trustees 1

Interview with your fund’s portfolio manager 3

Your fund’s performance 8

Your fund’s expenses 10

Consider these risks before investing 12

Terms and definitions 13

Other information for shareholders 14

Important notice regarding Putnam’s privacy policy 15

Trustee approval of management contract 16

Audited financial statements 21

Report of Independent Registered Public Accounting Firm 22

Federal tax information 48

About the Trustees 50

Officers 52

IMPORTANT NOTICE: Delivery of paper fund reportsIn accordance with regulations adopted by the Securities and Exchange Commission, beginning on January 1, 2021, reports like this one will no longer be sent by mail unless you specifically request it. Instead, they will be on Putnam’s website, and you will be notified by mail whenever a new one is available, and provided with a website link to access the report.

If you wish to stop receiving paper reports sooner, or if you wish to continue to receive paper reports free of charge after January 1, 2021, please see the back cover or insert for instructions. If you invest through a bank or broker, your choice will apply to all funds held in your account. If you invest directly with Putnam, your choice will apply to all Putnam funds in your account.

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August 10, 2020

Dear Fellow Shareholder:

Financial markets worldwide continue to be challenged by economic uncertainty and high unemployment due to the COVID-19 pandemic. In addition, our nation is struggling with confusion, anger, and grief over horrific acts of racism and brutality in our country and with the overall issue of systemic racial injustice. Your Board of Trustees and Putnam Investments stand united against oppression and racism. We will work to support thoughtful and resourceful actions to elevate both our workplace and society.

Also, we would like to take this opportunity to thank Robert E. Patterson, who retired as a Trustee on June 30, 2020, for his 36 years of service. We will miss Bob’s experienced judgment and insights, and we wish him well. We are also pleased to welcome Mona K. Sutphen to the Board. Ms. Sutphen brings extensive professional and directorship experience to her role as a Trustee.

As always, thank you for investing with Putnam.

Respectfully yours,

Robert L. ReynoldsPresident and Chief Executive OfficerPutnam Investments

Kenneth R. LeiblerChair, Board of Trustees

Message from the Trustees

Performance history as of 6/30/20

Annualized total return (%) comparison

LIFE OF FUND(since 8/1/96)

10 YEARS 5 YEARS 3 YEARS 1 YEAR

4.44 4.14 4.77 4.25 3.53 3.72

–0.75–1.59–1.24–3.16

–4.43–3.70

–8.11

–14.48

–10.39

The fund — class A sharesbefore sales chargePutnam International ValueFund (PNGAX)

Fund’s benchmarkMSCI EAFE Value Index (ND)

Fund’s Lipperpeer group average*International Large-CapValue Funds

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, 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 reflect a sales charge of 5.75%; had they, returns would have been lower. See below and pages 8–10 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.

* Source: Lipper, a Refinitiv company.

Recent broad market index and fund performance

8.74%

7.51%

1.63%

–8.11%

–14.48%

U.S. bonds (Bloomberg Barclays U.S. Aggregate Bond Index)

U.S. stocks (S&P 500 Index)

Cash (ICE BofA U.S. 3-Month Treasury Bill Index)

Putnam International Value Fund (class A shares before sales charge)

Fund’s benchmark (MSCI EAFE Value Index (ND))

This comparison shows your fund’s performance in the context of broad market indexes for the 12 months ended 6/30/20. See above and pages 8–10 for additional fund performance information. Index descriptions can be found on pages 13–14.

2 International Value Fund

Interview with your fund’s portfolio manager

Darren A. Jaroch, CFAPortfolio Manager

Darren has a B.A. from Hartwick College. He joined Putnam in 1999 and has been in the investment industry since 1996.

Lauren B. DeMore, CFA, is Assistant Portfolio Manager of the fund.

How was the investment environment during the reporting period?The period consisted of two starkly different market environments. It began in July 2019, when international financial markets settled down after being weakened by recession fears and numerous other issues. Negative investor sentiment shifted to become more upbeat as resolutions appeared to be on the horizon for the U.S.–China trade conflict, Brexit, and Italy’s budget challenges. As the risk of recession seemed to abate, international value stocks, the focus of this fund, resumed their upward trend. For the 2019 calendar year, these stocks, as measured by the MSCI EAFE Value Index, delivered a healthy gain of 16.09%.

This positive market environment continued into the early part of the new year. However, in February 2020, market conditions started to change dramatically. As the COVID-19 pandemic began its global spread, financial markets encountered unprecedented bouts of volatility. Manufacturing and services activities ceased around the globe as businesses closed and stay-at-home orders went into effect. Not only were declines sharp across all asset classes and regions, but volatility levels were historic.

Darren Jaroch discusses the global investment environment and fund results for the 12 months ended June 30, 2020, as well as his outlook for the fund.

Interview with your fund’s portfolio manager

Performance history as of 6/30/20

Annualized total return (%) comparison

LIFE OF FUND(since 8/1/96)

10 YEARS 5 YEARS 3 YEARS 1 YEAR

4.44 4.14 4.77 4.25 3.53 3.72

–0.75–1.59–1.24–3.16

–4.43–3.70

–8.11

–14.48

–10.39

The fund — class A sharesbefore sales chargePutnam International ValueFund (PNGAX)

Fund’s benchmarkMSCI EAFE Value Index (ND)

Fund’s Lipperpeer group average*International Large-CapValue Funds

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, 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 reflect a sales charge of 5.75%; had they, returns would have been lower. See below and pages 8–10 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.

* Source: Lipper, a Refinitiv company.

Recent broad market index and fund performance

8.74%

7.51%

1.63%

–8.11%

–14.48%

U.S. bonds (Bloomberg Barclays U.S. Aggregate Bond Index)

U.S. stocks (S&P 500 Index)

Cash (ICE BofA U.S. 3-Month Treasury Bill Index)

Putnam International Value Fund (class A shares before sales charge)

Fund’s benchmark (MSCI EAFE Value Index (ND))

This comparison shows your fund’s performance in the context of broad market indexes for the 12 months ended 6/30/20. See above and pages 8–10 for additional fund performance information. Index descriptions can be found on pages 13–14.

International Value Fund 3

Top 10 holdingsHOLDING (PERCENTAGE OF FUND’S NET ASSETS)

COUNTRY

OVER/UNDERWEIGHT VS. BENCHMARK

Novartis AG (4.0%) Switzerland

Vinci SA (3.0%) France

Sanofi (2.7%) France

AIA Group, Ltd. (2.7%) Hong Kong

Siemens AG (2.4%) Germany

ING Groep NV (2.3%) Netherlands

Nippon Telegraph & Telephone Corp. (2.2%) Japan

Samsung Electronics Co., Ltd. (2.2%) South Korea

Vodafone Group PLC (2.1%) United Kingdom

AstraZeneca PLC (2.1%) United Kingdom 2.1%

1.2%

2.3%

1.0%

2.7%

1.9%

1.7%

2.2%

1.7%

-3.0 -1.50.0

1.5 3.0

1.0%

This table shows the fund’s top 10 holdings by percentage of the fund’s net assets as of 6/30/20. Short-term investments and derivatives, if any, are excluded. Holdings may vary over time.

Global composition

Japan 22.0%

United Kingdom 20.7

France 13.5

Switzerland 7.9

Netherlands 5.9

Australia 5.3

Germany 4.6

Canada 3.4

Other countries 14.2

Cash and net other assets 2.5

Allocations are shown as a percentage of the fund’s net assets as of 6/30/20. Cash and net other assets, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Summary information may differ from the information in the portfolio schedule notes included in the financial statements due to the inclusion of derivative securities, any interest accruals, the exclusion of as-of trades, if any, and rounding. Holdings and allocations may vary over time.


In the first three months of 2020, international value stocks declined 28.20%, giving back considerably more than their entire gain for the 2019 calendar year.

Just as surprising to many investors was the rebound in stocks that came in the final three months of the period. International value stocks recovered with a second-quarter return of 12.43%.

How did the fund perform in this environment?In a period that was particularly difficult for value stocks, the fund posted a return of –8.11%. The fund outperformed its benchmark, the MSCI EAFE Value Index [ND], which posted a return of –14.48%. The fund’s return was also better than the average return of –10.39% for funds in its Lipper peer group, International Large-Cap Value Funds.

Could you provide some examples of stocks that contributed to the fund’s performance for the reporting period?The top contributor was AstraZeneca, a Switzerland-based biopharmaceutical company that specializes in oncology, cardio-vascular, metabolic, and respiratory treatments. In the past few years, AstraZeneca has trans-formed from a company with shrinking top and bottom lines to one with double-digit top-line growth and operating leverage. The company has a lineup of new drugs to supplement existing products with expanding geographic reach and indications. For several quarters, the company has reported earnings growth that exceeded expectations, driven primarily by its oncology platform. Also, AstraZeneca is working with Oxford University on a vaccine for COVID-19.

Fund performance was also helped by our decision to not own a position in HSBC Holdings. This was a difficult period for the stock of this large U.K.-based bank, which has significant exposure to Asian markets. Unrest in Hong Kong and ongoing U.S.–China trade

disputes have created considerable headwinds for the business. At the close of the period, we continued to avoid this stock in favor of other financials sector stocks that we find more attractive.

Another performance highlight was our invest-ment in Ashtead Group, a London-based industrial equipment rental company. Prior to the COVID-19 crisis, the company was enjoying steady growth in its core business of construc-tion equipment rental. The stock continued to perform well through the crisis, in part because the drop in demand for equipment was less severe than anticipated. In addition, many investors believe that demand for rental equipment will increase following the crisis as businesses shift to variable costs — in this case, renting equipment rather than purchasing it.

What were some stocks that detracted from performance during the reporting period?The top detractor from performance was our investment in Suncor Energy, Canada’s largest integrated oil company. Like most energy stocks, Suncor was severely pressured by the collapse in oil prices. During the period, several issues caused oil prices to plummet, including a breakdown in Saudi Arabia–Russia oil output negotiations that coincided with the onset of the COVID-19 pandemic.

Suncor’s higher capital intensity expansion projects are on hold due to supply/demand concerns related to the pandemic. At the close of the period, we continued to own Suncor because of its solid balance sheet and long-term production growth potential. Also, with the exception of 2020, Suncor has demonstrated

While many uncertainties remain for investors, we are focused on our risk control and portfolio construction strategies. Darren Jaroch


strong cash-generation capabilities, which we expect to return when oil prices stabilize.

Another detractor from the fund’s performance was ING Groep, a Netherlands-based bank with strong franchises in Belgium and Germany. The stock struggled along with the entire financials sector due to the COVID-19 pandemic. Also, in 2018, the company was penalized for failing to control illegal money laundering activity in its branch network. This resulted in fines and ongoing compliance costs as well as an overhaul of ING’s management team and board of directors. We continue to own ING and believe it offers attractive long-term growth potential. We believe the company’s technology and digitiza-tion strategies are superior to those of its peers, which will enable the company to reduce costs and improve its profitability.

Fund performance was also dampened by our decision to avoid the stock of British American Tobacco, which performed well in the period. We have avoided tobacco stocks for many reasons. Demand and volume are down signifi-cantly for the industry, and tobacco companies no longer have the pricing power they once had, in our view. In addition, regulatory scrutiny and issues have created further headwinds for these companies. During this reporting period,

however, many of the regulatory headwinds subsided, and the company offered a dividend and strong, predictable cash flow during a time of many uncertainties. We continue to maintain underweight exposure to tobacco companies, and we expect to see a resurgence of regulatory risks once the pandemic subsides.

What is your outlook for the coming months?In our view, at the close of the period, many uncertainties remained, particularly regarding how much damage the pandemic will inflict on global economies. At the midpoint of 2020, there appears to be a considerable disconnect between the markets and the economy. The news on the macroeconomic front is bleak, yet the market seems to believe that the damage from the shutdown will be temporary. At the same time, government and central bank stimulus has been immediate, massive, and global. However, many investors seem to believe there will be no price to pay for the stimulus. We believe that there will be conse-quences at some point, and that is why we remain focused on our risk control and portfolio construction strategies.

Thank you for your time and insights.

Comparison of top sector shiftsSECTOR 12/31/19 6/30/20 CHANGE

Energy 7.7% 5.3%

Real estate 1.1% 0.0%

Financials 27.7% 26.7%

Materials 5.1% 6.0%

Health care 9.7% 10.7%

-2.5 0.0 2.5

bar height 1p1.5

space between bars 0p11.5

max. width of chart: 11p

0.9%

1.0%

–1.0%

–1.1%

–2.4%

Rule: 30% black. 4 pts above top bar / 4 pts below bottom bar.

This chart shows the fund’s largest allocation shifts, by percentage, over the past six months. Allocations are shown as a percentage of the fund’s net assets. Current period summary information may differ from the portfolio schedule included in the financial statements due to the inclusion of derivative securities, any interest accruals, the exclusion of as-of trades, if any, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.


The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice. Please note that the holdings discussed in this report may not have been held by the fund for the

entire period. Portfolio composition 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.


Your fund’s performanceThis section shows your fund’s performance, price, and distribution information for periods ended June 30, 2020, the end of its most recent fiscal year. In accordance with regulatory requirements for mutual funds, we also include 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 fluctuate, and you may have a gain or a loss when you sell your shares. Performance information does not reflect 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, R6, and Y shares are not available to all investors. See the Terms and definitions section in this report for definitions of the share classes offered by your fund.

Fund performance Total return for periods ended 6/30/20Annual average

(life of fund) 10 yearsAnnual average 5 years

Annual average 3 years

Annual average 1 year

Class A (8/1/96)

Before sales charge 4.44% 51.66% 4.25% –3.70% –0.75% –9.19% –3.16% –8.11%

After sales charge 4.18 42.94 3.64 –9.24 –1.92 –14.41 –5.06 –13.39

Class B (8/1/96)

Before CDSC 4.17 42.82 3.63 –7.12 –1.47 –11.13 –3.86 –8.72

After CDSC 4.17 42.82 3.63 –8.84 –1.83 –13.63 –4.77 –13.15

Class C (2/1/99)

Before CDSC 4.12 40.60 3.47 –7.19 –1.48 –11.17 –3.87 –8.84

After CDSC 4.12 40.60 3.47 –7.19 –1.48 –11.17 –3.87 –9.73

Class R (12/1/03)

Net asset value 4.18 47.90 3.99 –4.83 –0.99 –9.81 –3.38 –8.33

Class R6 (12/2/13)

Net asset value 4.72 57.20 4.63 –1.51 –0.30 –7.90 –2.71 –7.68

Class Y (10/2/00)

Net asset value 4.67 55.36 4.50 –2.38 –0.48 –8.49 –2.91 –7.87

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After-sales-charge returns for class A shares reflect the deduction of the maximum 5.75% sales charge levied at the time of purchase. Class B share returns after contingent deferred sales charge (CDSC) reflect the applicable CDSC, which is 5% in the first year, declining over time to 1% in the sixth year, and is eliminated thereafter. Class C share returns after CDSC reflect a 1% CDSC for the first year that is eliminated thereafter. Class R, R6, and Y shares have no initial sales charge or CDSC. Performance for class C, R, and Y shares before their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares, except for class Y shares, for which 12b-1 fees are not applicable. Performance for class R6 shares prior to their inception is derived from the historical performance of class Y shares and has not been adjusted for the lower investor servicing fees applicable to class R6 shares; had it, returns would have been higher.

For a portion of the periods, the fund had expense limitations, without which returns would have been lower.

The fund has had performance fee adjustments that may have had a positive or negative impact on returns.

Class B share performance reflects conversion to class A shares after eight years.

Class C share performance reflects conversion to class A shares after 10 years.


Comparative index returns For periods ended 6/30/20Annual average

(life of fund) 10 yearsAnnual average 5 years

Annual average 3 years

Annual average 1 year

MSCI EAFE Value Index (ND) 4.14% 41.52% 3.53% –7.72% –1.59% –12.71% –4.43% –14.48%

Lipper International Large-Cap Value Funds category average*

4.77 44.39 3.72 –6.02 –1.24 –10.68 –3.70 –10.39

Index and Lipper results should be compared with fund performance before sales charge, before CDSC, or at net asset value.

* Over the 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 6/30/20, there were 20, 18, 18, 17, and 5 funds, respectively, in this Lipper category.

Change in the value of a $10,000 investment ($9,425 after sales charge)Cumulative total return from 6/30/10 to 6/30/20

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 and C shares would have been valued at $14,282 and $14,060, respectively, and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class R, R6, and Y shares would have been valued at $14,790, $15,720, and $15,536, respectively.

$5,000

$10,000

’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20

Putnam International Value Fund class A shares a�er sales charge

MSCI EAFE Value Index (ND)

$9,425

$14,294

$14,152


Fund price and distribution information For the 12-month period ended 6/30/20Distributions Class A Class B Class C Class R Class R 6 Class Y

Number 1 1 1 1 1 1

Income $0.245 $0.142 $0.142 $0.217 $0.294 $0.273

Capital gains

Long-term gains 0.188 0.188 0.188 0.188 0.188 0.188

Short-term gains — — — — — —

Total $0.433 $0.330 $0.330 $0.405 $0.482 $0.461

Share value

Before sales

charge

After sales

charge

Net asset value

Net asset value

Net asset value

Net asset value

Net asset value

6/30/19 $10.62 $11.27 $10.66 $10.63 $10.51 $10.66 $10.63

6/30/20 9.39 9.96 9.45 9.41 9.29 9.43 9.40

The classification of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate for class A 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) was levied at the time of purchase. Final distribution information will appear on your year-end tax forms.

Your fund’s expensesAs 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 affect 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 financial representative.

Expense ratiosClass A Class B Class C Class R Class R6 Class Y

Total annual operating expenses for the fiscal year ended 6/30/19 1.33% 2.08% 2.08% 1.58% 0.88% 1.08%

Annualized expense ratio for the six-month period ended 6/30/20*† 1.43% 2.18% 2.18% 1.68% 0.98% 1.18%

Fiscal year expense information in this table is taken from the most recent prospectus, is subject to change, and may differ from that shown for the annualized expense ratio and in the financial highlights of this report.

Expenses are shown as a percentage of average net assets. * Expense ratios for each class are for the fund’s most recent fiscal half year. As a result of this, ratios may differ from

expense ratios based on one-year data in the financial highlights. † Includes an increase of 0.04% from annualizing the performance fee adjustment for the six months ended 6/30/20.


Expenses per $1,000The following table shows the expenses you would have paid on a $1,000 investment in each class of the fund from 1/1/20 to 6/30/20. 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 R Class R6 Class Y

Expenses paid per $1,000*† $6.57 $10.00 $10.00 $7.71 $4.51 $5.43

Ending value (after expenses) $848.20 $845.30 $844.70 $846.90 $850.30 $849.10

* 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 6/30/20. The expense ratio may differ 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 paidTo estimate the ongoing expenses you paid for the six months ended 6/30/20, use the following calculation method. To find the value of your investment on 1/1/20, call Putnam at 1-800-225-1581.

How to calculate the expenses you paid

Value of your investment on 1/1/20 ÷ $1,000 x Expenses paid per $1,000 = Total expenses paidExample Based on a $10,000 investment in class A shares of your fund.

$10,000 ÷ $1,000 x $6.57 (see preceding table) = $65.70

Compare expenses using the SEC’s methodThe 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 R Class R6 Class Y

Expenses paid per $1,000*† $7.17 $10.92 $10.92 $8.42 $4.92 $5.92

Ending value (after expenses) $1,017.75 $1,014.02 $1,014.02 $1,016.51 $1,019.99 $1,019.00

* 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 6/30/20. The expense ratio may differ 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.


Consider these risks before investingInternational investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Because the fund currently invests, and may in the future invest, significantly in European companies, the fund is particularly susceptible to economic, political, regulatory, or other events or conditions affecting issuers in Europe. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Value stocks may fail to rebound, and the market may not favor value-style investing. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. 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. You can lose money by investing in the fund.


Terms and definitions

Important termsTotal 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 figures fluctuate 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 perfor-mance figures shown here assume the 5.75% maximum sales charge for class A 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 first 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 classesClass 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 closed to new investments and are only available by exchange from another Putnam fund or through dividend and/or capital gains reinvestment. They are not subject to an initial sales charge and 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 first year.

Class R shares are not subject to an initial sales charge or CDSC and are only available to employer-sponsored retirement plans.

Class R6 shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to employer-sponsored retirement plans, corporate and institutional clients, and clients in other approved programs.

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 indexesBloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.

ICE BofA (Intercontinental Exchange Bank of America) 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 EAFE Value Index (ND) is an unmanaged index which measures the performance of equity securities representing the value style in countries within Europe, Australasia, and the Far East. Calculated with net dividends (ND), this total return index reflects the reinvest-ment of dividends after the deduction of withholding taxes, using a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties.

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 differ. You cannot invest directly in an index.

ICE Data Indices, LLC (“ICE BofA”), used with permis-sion. ICE BofA permits use of the ICE BofA indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability,


Other information for shareholders

Proxy votingPutnam 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, 2019, are available in the Individual Investors section of putnam.com and on the Securities and Exchange Commis-sion (SEC) website, www.sec.gov. If you have questions about finding 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 holdingsThe fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on

Form N-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the fund’s Form N-PORT on the SEC’s website at www.sec.gov.

Prior to its use of Form N-PORT, the fund filed its complete schedule of its portfolio holdings with the SEC on Form N-Q, which is available online at www.sec.gov.

Trustee and employee fund ownershipPutnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of June 30, 2020, Putnam employees had approximately $464,000,000 and the Trustees had approxi-mately $75,000,000 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.

quality, accuracy, timeliness, and/or completeness of the ICE BofA indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.

Lipper, a Refinitiv company, is a third-party industry-ranking entity that ranks mutual

funds. Its rankings do not reflect sales charges. Lipper rankings are based on total return at net asset value relative to other funds that have similar current investment styles or objectives as determined by Lipper. Lipper may change a fund’s category assignment at its discretion. Lipper category averages reflect performance trends for funds within a category.


Liquidity risk management programPutnam, as the administrator of the fund’s liquidity risk management program (appointed by the Board of Trustees), presented the first annual report on the program to the Trustees in April 2020. The report covered the structure of the program, including the program documents and related policies and procedures adopted to comply with Rule 22e-4 under the Investment Company Act of 1940, and reviewed the operation of the program from December 2018 through March 2020. The report included a descrip-tion of the annual liquidity assessment of the fund that Putnam performed in November

2019. The report noted that there were no material compliance exceptions identified under Rule 22e-4 during the period. The report included a review of the governance of the program and the methodology for classifica-tion of the fund’s investments. The report also included a discussion of liquidity monitoring during the period, including during the market liquidity challenges caused by the COVID-19 pandemic, and the impact those challenges had on the liquidity of the fund’s investments. Putnam concluded that the program has been operating effectively and adequately to ensure compliance with Rule 22e-4.

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 confidentiality of our shareholder information, whether or not a shareholder currently owns shares of our funds. In particular, it is our policy not to sell information about you or your accounts to outside marketing firms. 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 confidentiality 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 financial representative, if you’ve listed one on your Putnam account.


Trustee approval of management contract

Trustee approval of management contract

General conclusionsThe 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 Investment Management, LLC (“Putnam Management”), the sub-management contract with respect to your fund between Putnam Management and its affiliate, Putnam Investments Limited (“PIL”), and the sub-advisory contract among Putnam Management, PIL, and another affiliate, The Putnam Advisory Company (“PAC”). The Board, 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 Committee consists solely of 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 Funds (“Independent Trustees”).

At the outset of the review process, members of the Board’s independent staff and independent legal counsel considered any possible changes to the annual contract review materials furnished to the Contract Committee during the course of the previous year’s review and, as applicable, identified those changes to Putnam Management. Following these discussions and in consultation with the Contract Committee, the Independent Trustees’ independent legal counsel requested that Putnam Management and its affiliates furnish specified information, together with any additional information that Putnam Management considered relevant, to the Contract Commit-tee. Over the course of several months ending in June 2020, the Contract Committee met on a number of occasions with representatives of Putnam Management, and separately in executive session, to consider the information that Putnam Management provided. Throughout this process, 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 2020, the Contract Committee met in executive session to discuss and consider its recommendations with respect to the contin-uance of the contracts. At the Trustees’ June 2020 meeting, the Contract Committee met in

executive session with the other Independent Trustees to review a summary of the key financial, performance and other data that the Contract Committee considered in the course of its review. The Contract Committee then presented its written report, which summarized the key factors that the Committee had considered and set forth its recommendations. The Contract Committee recommended, and the Independent Trust-ees approved, the continuance of your fund’s management, sub-management and sub-advisory contracts, effective July 1, 2020. (Because PIL and PAC are affiliates of Putnam Management and Putnam Management remains fully responsible for all services provided by PIL and PAC, the Trust-ees have not attempted to evaluate PIL or PAC as separate entities, and all subsequent 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 effect for your fund repre-sented reasonable compensation in light of the nature and quality of the services being provided to the fund, the fees paid by competitive funds, the costs incurred by Putnam Management in providing services to the fund, and the appli-cation of certain reductions and waivers noted below; and

• That the fee schedule in effect for your fund represented an appropriate 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 figured particu-larly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the manage-ment 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 Management, 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 previ-ous years. For example, with certain exceptions primarily involving newly launched or reposi-tioned funds, the current fee arrangements under the vast majority of the funds’ management contracts were first implemented at the beginning of 2010 following extensive review by the Contract Committee and discussions with representatives of Putnam Management, as well as approval by shareholders.

Management fee schedules and total expensesThe Trustees reviewed the management fee schedules in effect 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 fund shareholders. (Two funds have implemented so-called “all-in” management fees covering substantially all routine fund operating costs.)

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 strategy, changes in Putnam Management’s operating costs or profitability, or changes in competitive practices in the mutual fund industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not indicate that changes to the management fee schedule for your fund would be appropriate at this time.

Under its management contract, your fund has the benefit of breakpoints in its management fee schedule that provide shareholders with econo-mies of scale in the form of reduced fee levels as assets under management in the Putnam family of funds increase. The Trustees concluded that the fee schedule in effect for your fund represented an appropriate sharing of econo-mies of scale between fund shareholders and Putnam Management.

In addition, your fund’s management contract provides that its management fees will be adjusted up or down depending upon whether your fund’s performance is better or worse than the performance of an appropriate index of securities prices specified in the management

contract. In the course of reviewing invest-ment performance, the Trustees examined the operation of your fund’s performance fees and concluded that these fees were operating effectively to align further Putnam Manage-ment’s economic interests with those of the fund’s shareholders.

As in the past, the Trustees also focused on the competitiveness of each fund’s total expense ratio. In order to support the effort to have fund expenses meet competitive standards, the Trustees and Putnam Management and the funds’ investor servicing agent, Putnam Investor Services, Inc. (“PSERV”), have imple-mented expense limitations that were in effect during your fund’s fiscal year ending in 2019. These expense limitations were: (i) a contrac-tual expense limitation applicable to specified open-end funds, including your fund, of 25 basis points on investor servicing fees and expenses and (ii) a contractual expense limitation appli-cable to specified open-end funds, including your fund, of 20 basis points on so-called “other expenses” (i.e., all expenses exclusive of manage-ment fees, distribution fees, investor servicing fees, investment-related expenses, interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses). These expense limitations attempt to maintain competitive expense levels for the funds. Most funds had sufficiently low expenses that these expense limitations did not apply. However, in the case of your fund, both expense limitations applied during its fiscal year ending in 2019. Putnam Management and PSERV have agreed to maintain these expense limitations until at least October 30, 2021. The support of Putnam Management and PSERV for these expense limita-tion arrangements 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 Broadridge Financial Solutions, Inc. (“Broadridge”). This comparative information included your fund’s percentile ranking for effective management fees and total expenses (excluding any applicable 12b-1 fees), which provides a general indication of your fund’s relative standing. In the custom peer group, your fund ranked in the first quintile in effective management fees (determined for your fund and the other funds in the custom peer


group based on fund asset size and the applicable contractual management fee schedule) and in the fourth quintile in total expenses (excluding any applicable 12b-1 fees) as of December 31, 2019. The first quintile represents the least expensive funds and the fifth quintile the most expensive funds. The fee and expense data reported by Broadridge as of December 31, 2019 reflected the most recent fiscal year-end data available in Broadridge’s database at that time.

In connection with their review of fund manage-ment fees and total expenses, the Trustees also reviewed the costs of the services provided and the profits realized by Putnam Management and its affiliates from their contractual relationships with the funds. This information included trends in revenues, expenses and profitability of Putnam Management and its affiliates relating to the investment management, investor servicing and distribution services provided to the funds. In this regard, the Trustees also reviewed an analy-sis of the revenues, expenses and profitability of Putnam Management and its affiliates, allocated on a fund-by-fund basis, with respect to the funds’ management, distribution, and investor servicing contracts. For each fund, the analysis presented information about revenues, expenses and profit-ability for each of the agreements separately and for the agreements taken together on a combined basis. The Trustees concluded that, at current asset levels, the fee schedules in place repre-sented reasonable compensation for the services being provided and represented an appropriate sharing between fund shareholders and Putnam Management of such economies of scale as may exist in the management of the Putnam funds at that time.

The information examined by the Trustees in connection with their annual contract review for the Putnam funds included information regarding services provided and fees charged by Putnam Management and its affiliates to other clients, including defined benefit pension and profit-shar-ing plans, sub-advised mutual funds, private funds sponsored by affiliates of Putnam Management, and model-only separately managed accounts. This information included, in cases where a product’s investment strategy corresponds with a fund’s strategy, comparisons of those fees with fees charged to the Putnam funds, as well as an assessment of the differences in the services provided to these clients as compared to the services provided to the Putnam funds. The Trustees observed that the differences in fee rates

between these clients and the Putnam funds are by no means uniform when examined by individ-ual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients may reflect, among other things, historical competitive forces operating in separate marketplaces. The Trustees consid-ered the fact that in many cases fee rates across different asset classes are higher on average for mutual funds than for other clients, and the Trust-ees also considered the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to its other clients. The Trustees did not rely on these comparisons to any significant extent in conclud-ing that the management fees paid by your fund are reasonable.

Investment performanceThe 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 Putnam Manage-ment’s investment process and performance by the work of the investment oversight committees of the Trustees and the full Board of Trustees, which meet on a regular basis with individual portfolio managers and with senior management 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 personnel — but also recognized that this does not guarantee favorable investment results for every fund in every time period.

The Trustees considered that, in the aggregate, 2019 was a strong year of performance for The Putnam Funds, with the Putnam funds, on an asset-weighted basis, ranking in the top quartile of their Lipper Inc. (“Lipper”) peers for the year ended December 31, 2019. For those funds that are evaluated based on their total returns versus selected investment benchmarks, the Trustees observed that the funds, on an asset-weighted- basis, delivered a gross return that was 2.3% ahead of their benchmarks in 2019. In addition to the performance of the individual Putnam funds, the Trustees considered, as they had in


prior years, the performance of The Putnam Fund complex versus competitor fund complexes. In this regard, the Trustees observed that The Putnam Funds’ relative performance, as reported in the Barron’s/Lipper Fund Families survey, was exceptionally strong over both the short and long term, with The Putnam Funds ranking as the 8th best performing mutual fund complex out of 55 complexes for the one-year period ended December 31, 2019 and the 8th best performing mutual fund complex out of 45 complexes for the ten-year period, with 2019 marking the third consecutive year that The Putnam Funds have ranked in the top ten fund complexes for the ten-year period. The Trustees also noted that The Putnam Funds ranked 26th out of 52 complexes for the five-year period ended December 31, 2019. In addition to the Barron’s/Lipper Fund Families Survey, the Trustees also considered the funds’ ratings assigned by Morningstar Inc., noting that 22 of the funds were four- or five-star rated at the end of 2019 and that this included five funds that had achieved a five-star rating. They also noted, however, the disappointing investment performance of some funds for periods ended December 31, 2019 and considered information provided by Putnam Management regarding the factors contributing to the underperformance and actions being taken to improve the performance of these particular funds. The Trustees indicated their intention to continue to monitor closely the performance of those funds, including the effec-tiveness of any efforts Putnam Management has undertaken to address underperformance and whether additional actions to address areas of underperformance are warranted.

For purposes of the Trustees’ evaluation of the Putnam funds’ investment performance, the Trustees generally focus on a competitive indus-try ranking of each fund’s total net return over a one-year, three-year and five-year period. For a number of Putnam funds with relatively unique investment mandates for which Putnam Manage-ment informed the Trustees that meaningful competitive performance rankings are not considered to be available, the Trustees evalu-ated performance based on their total gross and net returns and comparisons of those returns with the returns of selected investment bench-marks. In the case of your fund, the Trustees considered that its class A share cumulative total return performance at net asset value was in the following quartiles of its Lipper peer group (Lipper International Large-Cap Value Funds) for the

one-year, three-year and five-year periods ended December 31, 2019 (the first quartile representing the best-performing funds and the fourth quartile the worst-performing funds):

One-year period 1stThree-year period 2ndFive-year period 2nd

Over the one-year, three-year and five-year periods ended December 31, 2019, there were 20, 18 and 18 funds, respectively, in your fund’s Lipper peer group. (When considering performance infor-mation, shareholders should be mindful that past performance is not a guarantee of future results.)

The Trustees considered Putnam Management’s continued efforts to support fund performance through initiatives including structuring compen-sation for portfolio managers and research analysts to enhance accountability for fund performance, emphasizing accountability in the portfolio management process, and affirming its commitment to a fundamental-driven approach to investing. The Trustees noted further that Putnam Management had made selective hires and internal promotions in 2019 to strengthen its investment team.

Brokerage and soft-dollar allocations; investor servicingThe Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contract with your fund. These include benefits 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 Manage-ment in managing the assets of the fund and of other clients. Subject to policies established by the Trustees, soft dollars generated by these means are used predominantly to acquire brokerage and research services (including third-party research and market data) that enhance Putnam Management’s investment capabilities and supplement Putnam Management’s inter-nal research efforts. The Trustees noted that, in 2019, they had approved the elimination of a fund expense recapture program, whereby a portion of available soft dollars were used to pay fund expenses, and that the amount of commissions allocated to that program were instead used to increase, by a corresponding amount, the budget allocated for execution services. The Trustees


indicated their continued intent to monitor regula-tory and industry developments in this area with the assistance of their Brokerage Committee. In addition, with the assistance of their Brokerage Committee, the Trustees indicated their continued intent to monitor the allocation of the Putnam funds’ brokerage in order to ensure that the princi-ple of seeking best price and execution remains paramount in the portfolio trading process.

Putnam Management may also receive benefits from payments that the funds make to Putnam Management’s affiliates 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

PSERV and its distributor’s contracts and distri-bution plans with Putnam Retail Management Limited Partnership (“PRM”), both of which are affiliates of Putnam Management. The Trustees concluded that the fees payable by the funds to PSERV and PRM, as applicable, for such services are fair and 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. Furthermore, the Trustees were of the view that the services provided were required for the operation of the funds, and that they were of a quality at least equal to those provided by other providers.


Audited financial statements


Audited 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 audited financial 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 diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment 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 separately 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 first 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 holdings — as well as any unreal-ized 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 fiscal year.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are deter-mined on a tax basis and may be paid in a different period from the one in which they were earned.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semian-nual report, the highlights table also includes the current reporting period.

Report of Independent Registered Public Accounting Firm

To the Trustees of Putnam Funds Trust and Shareholders of Putnam International Value Fund:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the fund’s portfolio, of Putnam International Value Fund (one of the funds constituting Putnam Funds Trust, referred to hereafter as the “Fund”) as of June 30, 2020, the related statement of operations for the year ended June 30, 2020, the statement of changes in net assets for each of the two years in the period ended June 30, 2020, including the related notes, and the financial highlights for each of the five years in the period ended June 30, 2020 (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 June 30, 2020, 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 June 30, 2020 and the financial highlights for each of the five years in the period ended June 30, 2020 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 June 30, 2020 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 August 10, 2020

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



COMMON STOCKS (96.9%)* Shares ValueAerospace and defense (0.8%)BAE Systems PLC (United Kingdom) 137,249 $820,939

820,939Airlines (1.0%)Qantas Airways, Ltd. (voting rights) (Australia) 312,663 819,093Qantas Airways, Ltd. (Australia) † 107,988 281,695

1,100,788Auto components (1.0%)Magna International, Inc. (Canada) 22,913 1,020,418

1,020,418Automobiles (0.6%)Yamaha Motor Co., Ltd. (Japan) 42,400 664,321

664,321Banks (11.7%)Australia & New Zealand Banking Group, Ltd. (Australia) 159,370 2,062,437BNP Paribas SA (France) † 27,234 1,079,640CaixaBank SA (Spain) 295,756 630,293DBS Group Holdings, Ltd. (Singapore) 58,400 873,578DNB ASA (Norway) † 68,254 903,091ING Groep NV (Netherlands) 348,251 2,419,240Lloyds Banking Group PLC (United Kingdom) 1,014,265 391,271Mizuho Financial Group, Inc. (Japan) 710,200 870,902Skandinaviska Enskilda Banken AB (Sweden) † 30,210 261,278Sumitomo Mitsui Financial Group, Inc. (Japan) 64,800 1,822,380UniCredit SpA (Italy) † 100,360 921,364

12,235,474Beverages (1.1%)Asahi Group Holdings, Ltd. (Japan) 32,400 1,135,077

1,135,077Building products (0.9%)Compagnie De Saint-Gobain (France) † 26,339 946,690

946,690Capital markets (3.5%)Credit Suisse Group AG (Switzerland) 60,487 624,124Partners Group Holding AG (Switzerland) 1,072 970,750Quilter PLC (United Kingdom) 767,466 1,322,056UBS Group AG (Switzerland) 69,005 792,767

3,709,697Chemicals (0.8%)LANXESS AG (Germany) 16,227 852,975

852,975Construction and engineering (3.0%)Vinci SA (France) 34,006 3,127,149

3,127,149Construction materials (1.2%)CRH PLC (Ireland) 36,801 1,258,701

1,258,701

The fund’s portfolio 6/30/20


COMMON STOCKS (96.9%)* cont. Shares ValueContainers and packaging (1.1%)SIG Combibloc Group AG (Switzerland) 70,422 $1,138,149

1,138,149Diversified financial services (2.0%)Eurazeo SA (France) † 19,743 1,011,024ORIX Corp. (Japan) 85,900 1,059,175

2,070,199Diversified telecommunication services (4.0%)BCE, Inc. (Canada) 26,900 1,121,890Nippon Telegraph & Telephone Corp. (Japan) 100,600 2,341,987Telstra Corp., Ltd. (Australia) 323,510 700,324

4,164,201Electric utilities (2.3%)Fortum OYJ (Finland) 51,847 983,606SSE PLC (United Kingdom) 86,523 1,460,852

2,444,458Entertainment (0.9%)Nintendo Co., Ltd. (Japan) 2,200 978,923

978,923Food and staples retail (2.5%)Koninklijke Ahold Delhaize NV (Netherlands) 61,062 1,662,797Seven & i Holdings Co., Ltd. (Japan) 28,100 917,014

2,579,811Food products (1.7%)JDE Peet’s BV (Netherlands) † 14,373 582,622Kerry Group PLC Class A (Ireland) 9,387 1,167,808

1,750,430Health-care equipment and supplies (1.8%)Alcon, Inc. (Switzerland) † 7,320 419,408Hoya Corp. (Japan) 15,200 1,455,628

1,875,036Hotels, restaurants, and leisure (1.2%)Compass Group PLC (United Kingdom) 50,307 692,080Dalata Hotel Group PLC (Ireland) 186,267 595,606

1,287,686Household durables (2.7%)Panasonic Corp. (Japan) 118,400 1,032,118Sony Corp. (Japan) 26,200 1,794,211

2,826,329Industrial conglomerates (2.4%)Siemens AG (Germany) 21,053 2,473,048

2,473,048Insurance (9.3%)AIA Group, Ltd. (Hong Kong) 298,400 2,777,229Allianz SE (Germany) 7,234 1,475,546AXA SA (France) † 90,431 1,887,214Prudential PLC (United Kingdom) 129,599 1,951,718QBE Insurance Group, Ltd. (Australia) 273,208 1,679,570

9,771,277


COMMON STOCKS (96.9%)* cont. Shares ValueMachinery (2.2%)MinebeaMitsumi, Inc. (Japan) 89,000 $1,613,650NSK, Ltd. (Japan) 99,100 734,907

2,348,557Metals and mining (2.9%)Anglo American PLC (United Kingdom) 64,502 1,490,963Rio Tinto PLC (United Kingdom) 26,987 1,518,557

3,009,520Multi-utilities (1.9%)Veolia Environnement SA (France) 87,735 1,970,594

1,970,594Oil, gas, and consumable fuels (5.3%)BP PLC (United Kingdom) 463,511 1,761,537Ovintiv, Inc. S 25,760 244,963Royal Dutch Shell PLC Class B (United Kingdom) 58,012 877,845Suncor Energy, Inc. (Canada) 85,012 1,433,356TOTAL SA (France) 32,682 1,244,844

5,562,545Personal products (1.4%)Unilever NV (Netherlands) 28,173 1,494,165

1,494,165Pharmaceuticals (8.8%)AstraZeneca PLC (United Kingdom) 21,086 2,198,145Novartis AG (Switzerland) 48,812 4,241,307Sanofi (France) 27,388 2,786,428

9,225,880Semiconductors and semiconductor equipment (2.4%)Sino-American Silicon Products, Inc. (Taiwan) 313,000 1,013,929Tokyo Electron, Ltd. (Japan) 6,200 1,521,555

2,535,484Technology hardware, storage, and peripherals (2.2%)Samsung Electronics Co., Ltd. (South Korea) 51,857 2,298,776

2,298,776Tobacco (1.1%)Imperial Brands PLC (United Kingdom) 60,183 1,146,074

1,146,074Trading companies and distributors (7.4%)Ashtead Group PLC (United Kingdom) 62,379 2,096,950Ferguson PLC (United Kingdom) 19,627 1,605,586ITOCHU Corp. (Japan) 85,600 1,843,408Mitsubishi Corp. (Japan) 103,100 2,170,563

7,716,507Transportation infrastructure (0.8%)Aena SME SA (Spain) † 6,057 806,356

806,356Wireless telecommunication services (3.0%)KDDI Corp. (Japan) 32,800 983,438Vodafone Group PLC (United Kingdom) 1,384,637 2,207,887

3,191,325Total common stocks (cost $109,894,553) $101,537,559


U.S. TREASURY OBLIGATIONS (0.2%)*Principal

amount ValueU.S. Treasury Notes

2.50%, 1/15/22 i $108,000 $113,1111.875%, 8/31/22 i 107,000 111,619

Total U.S. treasury obligations (cost $224,730) $224,730

SHORT-TERM INVESTMENTS (2.4%)*Principal amount/

shares ValuePutnam Cash Collateral Pool, LLC 0.27% d Shares 212,134 $212,134Putnam Short Term Investment Fund 0.41% L Shares 2,078,067 2,078,067U.S. Treasury Bills zero%, 8/13/20 $130,000 129,979U.S. Treasury Bills 1.530%, 7/16/20 128,000 127,993U.S. Treasury Bills 0.056%, 7/9/20 13,000 13,000Total short-term investments (cost $2,561,121) $2,561,173

TOTAL INVESTMENTSTotal investments (cost $112,680,404) $104,323,462

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 July 1, 2019 through June 30, 2020 (the reporting period). Within the following notes to the portfolio, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures.

* Percentages indicated are based on net assets of $104,767,843. † This security is non-income-producing. 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.

i This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts (Note 1).

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.

S Security on loan, in part or in entirety, at the close of the reporting period (Note 1).At the close of the reporting period, the fund maintained liquid assets totaling $75,066 to cover certain derivative contracts.Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.

DIVERSIFICATION BY COUNTRY

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):

Japan 21.9%United Kingdom 20.6France 13.4Switzerland 7.8Netherlands 5.9Australia 5.3Germany 4.6Canada 3.4Ireland 2.9Hong Kong 2.7

United States 2.5%South Korea 2.2Spain 1.4Taiwan 1.0Finland 0.9Italy 0.9Norway 0.9Singapore 0.8Other 0.9Total 100.0%


FORWARD CURRENCY CONTRACTS at 6/30/20 (aggregate face value $35,524,888 )

Counterparty CurrencyContract

type*Delivery

date ValueAggregate face value

Unrealized appreciation/ (depreciation)

Bank of America N.A.Australian Dollar Buy 7/15/20 $1,120,809 $990,453 $130,356Canadian Dollar Sell 7/15/20 2,350,928 2,277,081 (73,847 )

Euro Sell 9/16/20 1,241,968 1,238,835 (3,133 )Japanese Yen Sell 8/19/20 322,775 324,547 1,772

Barclays Bank PLCAustralian Dollar Buy 7/15/20 202,560 179,037 23,523

British Pound Sell 9/16/20 257,599 261,728 4,129Euro Sell 9/16/20 264,464 265,807 1,343

Hong Kong Dollar Buy 8/19/20 1,061,324 1,060,393 931Citibank, N.A.

British Pound Buy 9/16/20 307,929 302,842 5,087Canadian Dollar Buy 7/15/20 119,996 114,850 5,146

Danish Krone Buy 9/16/20 289,795 288,323 1,472Euro Buy 9/16/20 350,555 349,751 804

Japanese Yen Sell 8/19/20 1,460,221 1,450,815 (9,406 )Goldman Sachs International

Canadian Dollar Buy 7/15/20 1,449,303 1,405,006 44,297Euro Buy 9/16/20 313,305 312,417 888

Japanese Yen Buy 8/19/20 3,174,911 3,190,246 (15,335 )HSBC Bank USA, National Association

Australian Dollar Buy 7/15/20 898,303 793,983 104,320British Pound Sell 9/16/20 345,242 350,729 5,487

Canadian Dollar Sell 7/15/20 48,543 37,372 (11,171 )Euro Buy 9/16/20 2,909,892 2,910,040 (148 )

Japanese Yen Sell 8/19/20 21,559 21,677 118JPMorgan Chase Bank N.A.

Australian Dollar Buy 7/15/20 165,706 146,496 19,210British Pound Sell 9/16/20 69,916 71,035 1,119

Canadian Dollar Sell 7/15/20 1,529,005 1,482,696 (46,309 )Euro Buy 9/16/20 1,741,186 1,736,415 4,771

Japanese Yen Buy 8/19/20 258,185 259,241 (1,056 )New Zealand Dollar Buy 7/15/20 313,568 291,389 22,179

Norwegian Krone Sell 9/16/20 234,418 236,724 2,306Singapore Dollar Buy 8/19/20 279,810 270,809 9,001

South Korean Won Sell 8/19/20 2,249,665 2,212,162 (37,503 )Swiss Franc Sell 9/16/20 682,305 663,389 (18,916 )

NatWest Markets PLCSwedish Krona Buy 9/16/20 1,552,239 1,552,203 36

State Street Bank and Trust Co.Australian Dollar Buy 7/15/20 453,155 460,226 (7,071 )

British Pound Sell 9/16/20 2,201,988 2,244,650 42,662Canadian Dollar Sell 7/15/20 458,178 469,685 11,507

Euro Sell 9/16/20 158,791 158,855 64Hong Kong Dollar Sell 8/19/20 502,181 501,952 (229 )

Israeli Shekel Buy 7/15/20 666,085 636,778 29,307Japanese Yen Sell 8/19/20 34,558 35,317 759

Swiss Franc Buy 9/16/20 103,457 104,088 (631 )


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

FORWARD CURRENCY CONTRACTS at 6/30/20 (aggregate face value $35,524,888 ) cont.

Counterparty CurrencyContract

type*Delivery

date ValueAggregate face value

Unrealized appreciation/ (depreciation)

UBS AGCanadian Dollar Sell 7/15/20 $888,218 $857,023 $(31,195 )

Euro Buy 9/16/20 541,645 542,905 (1,260 )Japanese Yen Buy 8/19/20 1,315,466 1,320,551 (5,085 )

WestPac Banking Corp.Australian Dollar Sell 7/15/20 782,634 784,964 2,330

Euro Buy 9/16/20 360,234 359,403 831Unrealized appreciation 475,755Unrealized (depreciation) (262,295 )Total $213,460

* The exchange currency for all contracts listed is the United States Dollar.

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 inputsInvestments in securities: Level 1 Level 2 Level 3Common stocks*:

Communication services $1,121,890 $7,212,559 $—

Consumer discretionary 1,020,418 4,778,336 —

Consumer staples 582,622 7,522,935 —

Energy 1,678,319 3,884,226 —

Financials — 27,786,647 —

Health care — 11,100,916 —

Industrials 281,695 19,058,339 —

Information technology — 4,834,260 —

Materials — 6,259,345 —

Utilities — 4,415,052 — Total common stocks 4,684,944 96,852,615 —

U.S. treasury obligations — 224,730 — Short-term investments 2,078,067 483,106 — Totals by level $6,763,011 $97,560,451 $—

Valuation inputsOther financial instruments: Level 1 Level 2 Level 3Forward currency contracts $— $213,460 $— Totals by level $— $213,460 $—

* Common stock classifications are presented at the sector level, which may differ from the fund’s portfolio presentation.

Statement of assets and liabilities 6/30/20

ASSETSInvestment in securities, at value, including $219,754 of securities on loan (Notes 1 and 8):

Unaffiliated issuers (identified cost $110,390,203) $102,033,261 Affiliated issuers (identified cost $2,290,201) (Notes 1 and 5) 2,290,201

Cash 2,415 Foreign currency (cost $29,074) (Note 1) 29,142 Dividends, interest and other receivables 227,412 Foreign tax reclaim 212,770 Receivable for shares of the fund sold 747,439 Unrealized appreciation on forward currency contracts (Note 1) 475,755 Prepaid assets 50,591 Total assets 106,068,986

LIABILITIESPayable for shares of the fund repurchased 222,537 Payable for compensation of Manager (Note 2) 50,884 Payable for custodian fees (Note 2) 17,381 Payable for investor servicing fees (Note 2) 40,707 Payable for Trustee compensation and expenses (Note 2) 117,282 Payable for administrative services (Note 2) 408 Payable for distribution fees (Note 2) 56,092 Payable for auditing and tax fees 67,526 Unrealized depreciation on forward currency contracts (Note 1) 262,295 Collateral on securities loaned, at value (Note 1) 212,134 Collateral on certain derivative contracts, at value (Notes 1 and 8) 224,730 Other accrued expenses 29,167 Total liabilities 1,301,143

Net assets $104,767,843

REPRESENTED BYPaid-in capital (Unlimited shares authorized) (Notes 1 and 4) $111,045,883 Total distributable earnings (Note 1) (6,278,040)Total — Representing net assets applicable to capital shares outstanding $104,767,843

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICENet asset value and redemption price per class A share ($90,141,243 divided by 9,597,076 shares) $9.39 Offering price per class A share (100/94.25 of $9.39)* $9.96 Net asset value and offering price per class B share ($584,869 divided by 61,914 shares)** $9.45 Net asset value and offering price per class C share ($1,275,251 divided by 135,507 shares)** $9.41 Net asset value, offering price and redemption price per class R share ($746,796 divided by 80,364 shares) $9.29 Net asset value, offering price and redemption price per class R6 share ($5,907,123 divided by 626,438 shares) $9.43 Net asset value, offering price and redemption price per class Y share ($6,112,561 divided by 650,322 shares) $9.40

*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.




Statement of operations Year ended 6/30/20

INVESTMENT INCOMEDividends (net of foreign tax of $278,154) $3,419,741 Interest (including interest income of $35,424 from investments in affiliated issuers) (Note 5) 36,869 Securities lending (net of expenses) (Notes 1 and 5) 854 Total investment income 3,457,464

EXPENSESCompensation of Manager (Note 2) 803,745 Investor servicing fees (Note 2) 279,447 Custodian fees (Note 2) 26,084 Trustee compensation and expenses (Note 2) 1,898 Distribution fees (Note 2) 288,093 Administrative services (Note 2) 3,212 Reports to shareholders 126,303 Other 104,192 Fees waived and reimbursed by Manager (Note 2) (29,713)Total expenses 1,603,261

Expense reduction (Note 2) (4,004)Net expenses 1,599,257

Net investment income 1,858,207

REALIZED AND UNREALIZED GAIN (LOSS)Net realized gain (loss) on:

Securities from unaffiliated issuers (Notes 1 and 3) 1,664,905 Foreign currency transactions (Note 1) (25,611)Forward currency contracts (Note 1) (17,974)

Total net realized gain 1,621,320 Change in net unrealized appreciation (depreciation) on:

Securities from unaffiliated issuers (13,358,711)Assets and liabilities in foreign currencies 140 Forward currency contracts 228,843

Total change in net unrealized depreciation (13,129,728)

Net loss on investments (11,508,408)

Net decrease in net assets resulting from operations $(9,650,201)



Statement of changes in net assets

DECREASE IN NET ASSETS Year ended 6/30/20 Year ended 6/30/19OperationsNet investment income $1,858,207 $3,039,631 Net realized gain on investments and foreign currency transactions 1,621,320 2,935,125 Change in net unrealized depreciation of investments and assets and liabilities in foreign currencies (13,129,728) (14,561,456)Net decrease in net assets resulting from operations (9,650,201) (8,586,700)Distributions to shareholders (Note 1):

From ordinary incomeNet investment income

Class A (2,423,448) (2,307,174)Class B (11,505) (11,789)Class C (26,090) (17,648)Class M — (29,766)Class R (18,191) (23,831)Class R6 (120,961) (116,485)Class Y (160,565) (159,809)

From net realized long-term gain on investmentsClass A (1,859,625) (2,016,178)Class B (15,231) (21,991)Class C (34,542) (46,901)Class M — (35,211)Class R (15,760) (26,570)Class R6 (77,350) (80,997)Class Y (110,572) (126,543)

Decrease from capital share transactions (Note 4) (6,690,542) (17,098,228)Total decrease in net assets (21,214,583) (30,705,821)

NET ASSETSBeginning of year 125,982,426 156,688,247

End of year $104,767,843 $125,982,426


Fund _FundCode, — NumbCols Columns — This section modified: 7/22/20 6:37:55 PM Fund _FundCode, — NumbCols Columns — This section modified: 7/22/20 6:37:55 PM

International Value Fund 33 32 International Value Fund


See notes to financial highlights at the end of this section.

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 dis tri bu tions

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 AJune 30, 2020 $10.62 .16 (.95 ) (.79 ) (.25 ) (.19 ) (.44 ) $9.39 (8.11 ) $90,141 1.40 g 1.60 g 19 June 30, 2019 11.71 .24 (.92 ) (.68 ) (.22 ) (.19 ) (.41 ) 10.62 (5.27 ) 108,690 1.33 g 2.28 g 10 June 30, 2018 11.35 .22 .28 .50 (.14 ) — (.14 ) 11.71 4.32 132,078 1.38 1.84 15 June 30, 2017 9.59 .17 1.81 1.98 (.22 ) — (.22 ) 11.35 21.00 133,974 1.36 1.66 16 June 30, 2016 11.06 .19 (1.55 ) (1.36 ) (.11 ) — (.11 ) 9.59 (12.36 ) 130,120 1.31 d 1.85 d 20 Class BJune 30, 2020 $10.66 .08 (.96 ) (.88 ) (.14 ) (.19 ) (.33 ) $9.45 (8.72 ) $585 2.15 g .81 g 19 June 30, 2019 11.70 .15 (.90 ) (.75 ) (.10 ) (.19 ) (.29 ) 10.66 (6.01 ) 1,019 2.08 g 1.43 g 10 June 30, 2018 11.32 .11 e .30 .41 (.03 ) — (.03 ) 11.70 3.59 1,579 2.13 .95 e 15 June 30, 2017 9.55 .08 1.82 1.90 (.13 ) — (.13 ) 11.32 20.09 2,230 2.11 .81 16 June 30, 2016 10.98 .10 (1.52 ) (1.42 ) (.01 ) — (.01 ) 9.55 (12.97 ) 2,724 2.06 d .97 d 20 Class CJune 30, 2020 $10.63 .09 (.98 ) (.89 ) (.14 ) (.19 ) (.33 ) $9.41 (8.84 ) $1,275 2.15 g .84 g 19 June 30, 2019 11.62 .16 (.89 ) (.73 ) (.07 ) (.19 ) (.26 ) 10.63 (5.92 ) 2,331 2.08 g 1.47 g 10 June 30, 2018 11.26 .09 e .31 .40 (.04 ) — (.04 ) 11.62 3.57 3,238 2.13 .79 e 15 June 30, 2017 9.51 .09 1.80 1.89 (.14 ) — (.14 ) 11.26 20.10 5,986 2.11 .88 16 June 30, 2016 10.96 .11 (1.53 ) (1.42 ) (.03 ) — (.03 ) 9.51 (13.01 ) 6,814 2.06 d 1.07 d 20 Class RJune 30, 2020 $10.51 .14 (.95 ) (.81 ) (.22 ) (.19 ) (.41 ) $9.29 (8.33 ) $747 1.65 g 1.37 g 19 June 30, 2019 11.56 .18 e (.87 ) (.69 ) (.17 ) (.19 ) (.36 ) 10.51 (5.47 ) 911 1.58 g 1.64 e,g 10 June 30, 2018 11.22 .20 .26 .46 (.12 ) — (.12 ) 11.56 4.08 2,104 1.63 1.64 15 June 30, 2017 9.50 .16 1.78 1.94 (.22 ) — (.22 ) 11.22 20.70 1,667 1.61 1.52 16 June 30, 2016 10.88 .15 (1.52 ) (1.37 ) (.01 ) — (.01 ) 9.50 (12.57 ) 1,195 1.56 d 1.45 d 20 Class R6June 30, 2020 $10.66 .21 (.96 ) (.75 ) (.29 ) (.19 ) (.48 ) $9.43 (7.68 ) $5,907 .95 g 2.08 g 19 June 30, 2019 11.77 .30 (.94 ) (.64 ) (.28 ) (.19 ) (.47 ) 10.66 (4.85 ) 4,753 .88 g 2.84 g 10 June 30, 2018 11.40 .28 .28 .56 (.19 ) — (.19 ) 11.77 4.84 4,083 .93 2.29 15 June 30, 2017 9.63 .23 1.81 2.04 (.27 ) — (.27 ) 11.40 21.55 3,617 .92 2.18 16 June 30, 2016 11.11 .23 (1.56 ) (1.33 ) (.15 ) — (.15 ) 9.63 (12.02 ) 3,135 .91 d 2.29 d 20 Class YJune 30, 2020 $10.63 .19 (.96 ) (.77 ) (.27 ) (.19 ) (.46 ) $9.40 (7.87 ) $6,113 1.15 g 1.89 g 19 June 30, 2019 11.72 .26 e (.91 ) (.65 ) (.25 ) (.19 ) (.44 ) 10.63 (5.04 ) 6,333 1.08 g 2.39 e,g 10 June 30, 2018 11.36 .29 f .24 .53 (.17 ) — (.17 ) 11.72 4.59 11,403 1.13 2.42 f 15 June 30, 2017 9.60 .22 1.79 2.01 (.25 ) — (.25 ) 11.36 21.32 7,539 1.11 2.08 16 June 30, 2016 11.07 .22 (1.55 ) (1.33 ) (.14 ) — (.14 ) 9.60 (12.07 ) 5,181 1.06 d 2.15 d 20

Documents

International Value Fund Annual Report - Putnam Investments · 2020. 8. 20. · Putnam International Value Fund (class A shares before sales charge) Fund’s benchmark (MSCI EAFE