SEC Info - Putnam Funds Trust - ‘N-CSR’ for 2/29/24


		Valuation inputs
Investments in securities:	Level 1	Level 2	Level 3
Common stocks*:
Utilities and power	$—	$170,826	$—
Total common stocks	—	170,826	—
Corporate bonds and notes	—	18,284,122	—
Senior loans	—	317,622,582	—
Short-term investments	—	33,496,135	—
Totals by level	$—	$369,573,665	$—


		Valuation inputs
Other financial instruments:	Level 1	Level 2	Level 3
Credit default contracts	$—	$653,994	$—
Totals by level	$—	$653,994	$—

* 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.


28 Floating Rate Income Fund

Statement of assets and liabilities 2/29/24


ASSETS
Investment in securities, at value (Note 1):
Unaffiliated issuers (identified cost $338,756,899)	$336,077,530
Affiliated issuers (identified cost $33,496,135) (Note 5)	33,496,135
Cash	1,149,247
Interest and other receivables	2,364,730
Receivable for shares of the fund sold	250,855
Receivable for investments sold	2,432,825
Receivable for variation margin on centrally cleared swap contracts (Note 1)	13,690
Deposits with broker (Note 1)	708,516
Receivable from broker (Note 1)	1,024
Prepaid assets	33,559
Total assets	376,528,111

LIABILITIES
Payable for investments purchased	7,349,333
Payable for shares of the fund repurchased	1,702,703
Payable for compensation of Manager (Note 2)	161,228
Payable for custodian fees (Note 2)	4,051
Payable for investor servicing fees (Note 2)	73,074
Payable for Trustee compensation and expenses (Note 2)	94,767
Payable for administrative services (Note 2)	1,211
Payable for distribution fees (Note 2)	109,256
Distributions payable to shareholders	202,317
Other accrued expenses	136,884
Total liabilities	9,834,824

Net assets	$366,693,287

REPRESENTED BY
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)	$451,462,132
Total distributable earnings (Note 1)	(84,768,845)
Total — Representing net assets applicable to capital shares outstanding	$366,693,287

(Continued on next page)

Floating Rate Income Fund 29

Statement of assets and liabilities cont.


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
Net asset value and redemption price per class A share
($227,247,127 divided by 28,472,753 shares)	$7.98
Offering price per class A share (100/97.75 of $7.98)^*	$8.16
Net asset value and offering price per class B share ($416,000 divided by 52,138 shares)^**	$7.98
Net asset value and offering price per class C share ($20,658,853 divided by 2,590,813 shares)^**	$7.97
Net asset value, offering price and redemption price per class R share
($494,656 divided by 62,005 shares)	$7.98
Net asset value, offering price and redemption price per class R6 share
($6,825,390 divided by 854,711 shares)	$7.99
Net asset value, offering price and redemption price per class Y share
($111,051,261 divided by 13,900,009 shares)	$7.99

^*On single retail sales of less than $100,000. On sales of $100,000 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.

30 Floating Rate Income Fund

Statement of operations Year ended 2/29/24


INVESTMENT INCOME
Interest (including interest income of $1,691,181 from investments in affiliated issuers) (Note 5)	$33,672,289
Total investment income	33,672,289

EXPENSES
Compensation of Manager (Note 2)	2,037,991
Investor servicing fees (Note 2)	462,745
Custodian fees (Note 2)	17,402
Trustee compensation and expenses (Note 2)	16,103
Distribution fees (Note 2)	761,423
Administrative services (Note 2)	11,044
Other	347,097
Total expenses	3,653,805
Expense reduction (Note 2)	(30,759)
Net expenses	3,623,046

Net investment income	30,049,243

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities from unaffiliated issuers (Notes 1 and 3)	(5,239,198)
Swap contracts (Note 1)	750,380
Total net realized loss	(4,488,818)
Change in net unrealized appreciation (depreciation) on:
Securities from unaffiliated issuers	11,175,767
Swap contracts	87,119
Total change in net unrealized appreciation	11,262,886

Net gain on investments	6,774,068

Net increase in net assets resulting from operations	$36,823,311

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

Floating Rate Income Fund 31

Statement of changes in net assets


DECREASE IN NET ASSETS	Year ended 2/29/24	Year ended 2/28/23
Operations
Net investment income	$30,049,243	$21,989,976
Net realized loss on investments	(4,488,818)	(10,504,391)
Change in net unrealized appreciation (depreciation)
of investments	11,262,886	(8,087,269)
Net increase in net assets resulting from operations	36,823,311	3,398,316
Distributions to shareholders (Note 1):
From ordinary income
Net investment income
Class A	(18,806,409)	(12,287,325)
Class B	(46,036)	(58,973)
Class C	(1,682,862)	(1,035,805)
Class R	(38,652)	(28,551)
Class R6	(757,854)	(398,963)
Class Y	(10,384,967)	(8,496,215)
From return of capital
Class A	(874,431)	—
Class B	(2,141)	—
Class C	(78,247)	—
Class R	(1,797)	—
Class R6	(35,238)	—
Class Y	(482,865)	—
Decrease from capital share transactions (Note 4)	(7,691,071)	(106,094,819)
Total decrease in net assets	(4,059,259)	(125,002,335)

NET ASSETS
Beginning of year	370,752,546	495,754,881
End of year	$366,693,287	$370,752,546

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

32 Floating Rate Income Fund

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Floating Rate Income Fund 33

Financial highlights
(For a common share outstanding throughout the period)


	INVESTMENT OPERATIONS				LESS DISTRIBUTIONS					RATIOS AND SUPPLEMENTAL DATA
												Ratio of net
	Net asset		Net realized								Ratio	investment
	value,		and unrealized	Total from	From net			Net asset	Total return	Net assets,	of expenses	income (loss)	Portfolio
	beginning	Net investment	gain (loss)	investment	investment	From	Total	value, end	at net asset	end of period	to average	to average	turnover
Period ended	of period	income (loss)^a	on investments	operations	income	return of capital	distributions	of period	value (%)^b	(in thousands)	net assets (%)^c	net assets (%)	(%)
Class A
February 29, 2024	$7.89	.65	.16	.81	(.69)	(.03)	(.72)	$7.98	10.74	$227,247	1.04	8.20	31
February 28, 2023	8.18	.41	(.28)	.13	(.42)	—	(.42)	7.89	1.78	205,018	1.03	5.14	26
February 28, 2022	8.27	.22	(.09)	.13	(.22)	—	(.22)	8.18	1.63	268,621	1.00	2.70	42
February 28, 2021	8.28	.24	(.02)	.22	(.23)	—	(.23)	8.27	2.87	220,335	1.04	2.96	32
February 29, 2020	8.46	.36	(.16)	.20	(.37)	(.01)	(.38)	8.28	2.31	226,047	1.03	4.28	33
Class B
February 29, 2024	$7.89	.63	.16	.79	(.67)	(.03)	(.70)	$7.98	10.52	$416	1.24	7.98	31
February 28, 2023	8.17	.38	(.26)	.12	(.40)	—	(.40)	7.89	1.70	847	1.23	4.88	26
February 28, 2022	8.27	.20	(.09)	.11	(.21)	—	(.21)	8.17	1.30	1,534	1.20	2.45	42
February 28, 2021	8.27	.22	—^d	.22	(.22)	—	(.22)	8.27	2.79	3,514	1.24	2.80	32
February 29, 2020	8.46	.35	(.18)	.17	(.35)	(.01)	(.36)	8.27	1.98	6,429	1.23	4.10	33
Class C
February 29, 2024	$7.89	.59	.15	.74	(.63)	(.03)	(.66)	$7.97	9.77	$20,659	1.79	7.45	31
February 28, 2023	8.17	.35	(.27)	.08	(.36)	—	(.36)	7.89	1.14	21,993	1.78	4.45	26
February 28, 2022	8.27	.16	(.10)	.06	(.16)	—	(.16)	8.17	.74	24,485	1.75	1.94	42
February 28, 2021	8.27	.18	(.01)	.17	(.17)	—	(.17)	8.27	2.22	34,828	1.79	2.24	32
February 29, 2020	8.46	.30	(.18)	.12	(.30)	(.01)	(.31)	8.27	1.42	51,058	1.78	3.54	33
Class R
February 29, 2024	$7.89	.63	.16	.79	(.67)	(.03)	(.70)	$7.98	10.46	$495	1.29	7.95	31
February 28, 2023	8.17	.39	(.27)	.12	(.40)	—	(.40)	7.89	1.65	436	1.28	4.95	26
February 28, 2022	8.27	.20	(.10)	.10	(.20)	—	(.20)	8.17	1.25	554	1.25	2.44	42
February 28, 2021	8.28	.22	(.02)	.20	(.21)	—	(.21)	8.27	2.61	650	1.29	2.70	32
February 29, 2020	8.46	.34	(.16)	.18	(.35)	(.01)	(.36)	8.28	2.05	687	1.28	3.99	33
Class R6
February 29, 2024	$7.90	.67	.16	.83	(.71)	(.03)	(.74)	$7.99	11.10	$6,825	.72	8.51	31
February 28, 2023	8.18	.43	(.26)	.17	(.45)	—	(.45)	7.90	2.23	6,110	.70	5.49	26
February 28, 2022	8.28	.25	(.10)	.15	(.25)	—	(.25)	8.18	1.83	7,021	.68	3.02	42
February 28, 2021	8.29	.26	(.01)	.25	(.26)	—	(.26)	8.28	3.23	4,994	.70	3.30	32
February 29, 2020	8.47	.39	(.16)	.23	(.40)	(.01)	(.41)	8.29	2.66	5,700	.70	4.61	33
Class Y
February 29, 2024	$7.90	.67	.15	.82	(.70)	(.03)	(.73)	$7.99	11.01	$111,051	.79	8.44	31
February 28, 2023	8.19	.42	(.27)	.15	(.44)	—	(.44)	7.90	2.04	136,348	.78	5.32	26
February 28, 2022	8.28	.25	(.10)	.15	(.24)	—	(.24)	8.19	1.88	193,541	.75	2.97	42
February 28, 2021	8.29	.26	(.02)	.24	(.25)	—	(.25)	8.28	3.13	90,104	.79	3.23	32
February 29, 2020	8.47	.39	(.17)	.22	(.39)	(.01)	(.40)	8.29	2.57	110,079	.78	4.57	33

^aPer share net investment income (loss) has been determined on the basis of the weighted average number of shares outstanding during the period.

^bTotal return assumes dividend reinvestment and does not reflect the effect of sales charges.

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

^dAmount represents less than $0.01 per share.

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


34 Floating Rate Income Fund	Floating Rate Income Fund 35

Notes to financial statements 2/29/24

Unless otherwise noted, the “reporting period” represents the period from March 1, 2023 through February 29, 2024. The following table defines commonly used references within the Notes to financial statements:


References to	Represent
Franklin Templeton	Franklin Resources, Inc.
JPMorgan	JPMorgan Chase Bank, N.A.
OTC	Over-the-counter
PIL	Putnam Investments Limited, an affiliate of Putnam Management
Putnam Management	Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned
	subsidiary of Franklin Templeton
SEC	Securities and Exchange Commission
State Street	State Street Bank and Trust Company

Putnam Floating Rate Income Fund (the fund) is a diversified series of Putnam Funds Trust (the Trust), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The goal of the fund is to seek high current income. Preservation of capital is a secondary goal. The fund invests mainly in corporate loans and debt securities that have floating rates of interest and other corporate debt securities. Under normal circumstances, the fund will invest at least 80% of its net assets in income-producing floating rate loans and other floating rate debt securities. This policy may be changed only after 60 days’ notice to shareholders. The fund invests mainly in obligations of U.S. issuers that are below investment-grade in quality (having credit characteristics similar to “junk bonds”). Putnam Management may consider, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy or sell investments. Putnam Management may also use derivatives, such as futures, options, warrants, certain foreign currency transactions, and credit default, total return and interest rate swap contracts for both hedging and non-hedging purposes.

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
		1.00% on certain redemptions of shares
Class A	Up to 2.25%	bought with no initial sales charge	None
			Converts to class A shares
Class B^*	None	1.00% phased out over two years	after 8 years
			Converts to class A shares
Class C	None	1.00% eliminated after one year	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.

36 Floating Rate Income Fund

Under the Trust’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.

Security valuation Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.

Senior loans are valued at fair value on the basis of valuations provided by an independent pricing service, approved by the Trustees. Such services use information with respect to transactions in senior loans, quotations from senior loan dealers, market transactions in comparable securities and various relationships between securities in determining value. These securities will generally be categorized as Level 2.

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); such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. 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.

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 Putnam Management does not believe accurately reflects the security’s fair value, the security will be valued at fair value by Putnam Management, which has been designated as valuation designee pursuant to Rule 2a–5 under the Investment Company Act of 1940, in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities, 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

Floating Rate Income Fund 37

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.

The fund may have earned certain fees in connection with its senior loan purchasing activities. These fees, if any, are treated as market discount and are amortized into income in the Statement of operations.

Credit default contracts The fund entered into OTC and/or centrally cleared credit default contracts to hedge credit risk, to gain liquid exposure to individual names and to hedge market risk.

In OTC and centrally cleared credit default contracts, the protection buyer typically makes a periodic stream of payments to a counterparty, the protection seller, in exchange for the right to receive a contingent payment upon the occurrence of a credit event on the reference obligation or all other equally ranked obligations of the reference entity. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring and obligation acceleration. For OTC credit default contracts, an upfront payment received by the fund is recorded as a liability on the fund’s books. An upfront payment made by the fund is recorded as an asset on the fund’s books. Centrally cleared credit default contracts provide the same rights to the protection buyer and seller except the payments between parties, including upfront premiums, are settled through a central clearing agent through variation margin payments. Upfront and periodic payments received or paid by the fund for OTC and centrally cleared credit default contracts are recorded as realized gains or losses at the reset date or close of the contract. The OTC and centrally cleared credit default contracts are marked to market daily based upon quotations from an independent pricing service or market makers. Any change in value of OTC credit default contracts is recorded as an unrealized gain or loss. Daily fluctuations in the value of centrally cleared credit default contracts are recorded in variation margin on the Statement of assets and liabilities and recorded as unrealized gain or loss. Upon the occurrence of a credit event, the difference between the par value and fair value of the reference obligation, net of any proportional amount of the upfront payment, is recorded as a realized gain or loss.

In addition to bearing the risk that the credit event will occur, the fund could be exposed to market risk due to unfavorable changes in interest rates or in the price of the underlying security or index or the possibility that the fund may be unable to close out its position at the same time or at the same price as if it had purchased the underlying reference obligations. In certain circumstances, the fund may enter into offsetting OTC and centrally cleared credit default contracts which would mitigate its risk of loss. Risks of loss may exceed amounts recognized on the Statement of assets and liabilities. The fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk may be mitigated for OTC credit default contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared credit default contracts through the daily exchange of variation margin. Counterparty risk is further mitigated with respect to centrally cleared credit default swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Where the fund is a seller of protection, the maximum potential amount of future payments the fund may be required to make is equal to the notional amount.

OTC and centrally cleared credit default contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.

At the close of the reporting period, the fund has deposited cash valued at $708,516 in a segregated account to cover margin requirements on open centrally cleared credit default contracts.

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 except for testing purposes.

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

38 Floating Rate Income Fund

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.

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 February 29, 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
$11,336,980	$70,550,138	$81,887,118

Distributions to shareholders The fund declares a distribution each day based upon the projected net investment income, for a specified period, calculated as if earned pro rata throughout the period on a daily basis. Such distributions are recorded daily and paid monthly. 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 income on swap contracts. 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 $367,393 to decrease distributions in excess of net investment income and $367,393 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	$2,300,470
Unrealized depreciation	(4,979,879)
Net unrealized depreciation	(2,679,409)
Capital loss carryforward	(81,887,118)
Cost for federal income tax purposes	$372,907,068

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.

Floating Rate Income Fund 39

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 (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:


0.720%	of the first $5 billion,	0.520%	of the next $50 billion,
0.670%	of the next $5 billion,	0.500%	of the next $50 billion,
0.620%	of the next $10 billion,	0.490%	of the next $100 billion and
0.570%	of the next $10 billion,	0.485%	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 0.559% of the fund’s average net assets.

Putnam Management has contractually agreed, through June 30, 2024, 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.

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 0.20% of the average net assets of the portion of the fund managed by PIL.

On January 1, 2024, a subsidiary of Franklin Templeton acquired Putnam U.S. Holdings I, LLC (“Putnam Holdings”), the parent company of Putnam Management and PIL, in a stock and cash transaction (the “Transaction”). As a result of the Transaction, Putnam Management and PIL 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 and the sub-management contract for the fund between Putnam Management and PIL 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 4, 2024, Putnam Management and PIL continued to provide uninterrupted services with respect to the fund pursuant to interim investment management and sub-management 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 4, 2024, new investment management and sub-management 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 4, 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.

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.

Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. 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. Putnam Investor Services, Inc. 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.

40 Floating Rate Income Fund

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	$279,431	Class R	591
Class B	707	Class R6	4,227
Class C	27,290	Class Y	150,499
		Total	$462,745

The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’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 $30,759 under the expense offset arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $310, 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 Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Retail Management Limited Partnership, an indirect wholly-owned subsidiary of Franklin Templeton, for services provided and expenses incurred in distributing shares of the fund. The Plans provide payments by the fund to Putnam Retail Management Limited Partnership 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 %	Amount
Class A	0.35%	0.25%	$544,258
Class B	1.00%	0.45%	2,461
Class C	1.00%	1.00%	212,402
Class R	1.00%	0.50%	2,302
Total			$761,423

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $20,512 from the sale of class A shares and received no monies and $612 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 assessed on certain redemptions of class A shares. For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received $9,678 on class A redemptions.

Floating Rate Income Fund 41

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)	$103,127,780	$115,362,479
U.S. government securities (Long-term)	—	—
Total	$103,127,780	$115,362,479

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 2/29/24		YEAR ENDED 2/28/23
Class A	Shares	Amount	Shares	Amount
Shares sold	7,734,532	$61,065,971	8,332,826	$66,117,550
Shares issued in connection with
reinvestment of distributions	2,322,162	18,367,640	1,459,539	11,430,630
	10,056,694	79,433,611	9,792,365	77,548,180
Shares repurchased	(7,552,513)	(59,592,304)	(16,670,045)	(131,027,338)
Net increase (decrease)	2,504,181	$19,841,307	(6,877,680)	$(53,479,158)

	YEAR ENDED 2/29/24		YEAR ENDED 2/28/23
Class B	Shares	Amount	Shares	Amount
Shares sold	1	$8	3,055	$24,397
Shares issued in connection with
reinvestment of distributions	6,082	48,003	7,420	58,068
	6,083	48,011	10,475	82,465
Shares repurchased	(61,346)	(483,315)	(90,777)	(718,168)
Net decrease	(55,263)	$(435,304)	(80,302)	$(635,703)

	YEAR ENDED 2/29/24		YEAR ENDED 2/28/23
Class C	Shares	Amount	Shares	Amount
Shares sold	557,851	$4,406,357	989,755	$7,823,291
Shares issued in connection with
reinvestment of distributions	206,341	1,629,856	122,254	955,959
	764,192	6,036,213	1,112,009	8,779,250
Shares repurchased	(961,879)	(7,595,270)	(1,320,632)	(10,383,194)
Net decrease	(197,687)	$(1,559,057)	(208,623)	$(1,603,944)

42 Floating Rate Income Fund


	YEAR ENDED 2/29/24		YEAR ENDED 2/28/23
Class R	Shares	Amount	Shares	Amount
Shares sold	4,975	$39,438	45,426	$358,920
Shares issued in connection with
reinvestment of distributions	5,121	40,449	3,633	28,404
	10,096	79,887	49,059	387,324
Shares repurchased	(3,394)	(26,882)	(61,471)	(480,997)
Net increase (decrease)	6,702	$53,005	(12,412)	$(93,673)

	YEAR ENDED 2/29/24		YEAR ENDED 2/28/23
Class R6	Shares	Amount	Shares	Amount
Shares sold	1,089,356	$8,648,633	384,256	$3,073,811
Shares issued in connection with
reinvestment of distributions	100,162	793,092	50,848	398,228
	1,189,518	9,441,725	435,104	3,472,039
Shares repurchased	(1,108,064)	(8,815,873)	(519,651)	(4,058,391)
Net increase (decrease)	81,454	$625,852	(84,547)	$(586,352)

	YEAR ENDED 2/29/24		YEAR ENDED 2/28/23
Class Y	Shares	Amount	Shares	Amount
Shares sold	5,225,831	$41,375,769	7,544,876	$60,006,570
Shares issued in connection with
reinvestment of distributions	1,207,725	9,556,624	969,774	7,605,273
	6,433,556	50,932,393	8,514,650	67,611,843
Shares repurchased	(9,787,674)	(77,149,267)	(14,904,281)	(117,307,832)
Net decrease	(3,354,118)	$(26,216,874)	(6,389,631)	$(49,695,989)

Note 5: Affiliated transactions

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


					Shares
					outstanding
					and fair
	Fair value as	Purchase	Sale	Investment	value as
Name of affiliate	of 2/28/23	cost	proceeds	income	of 2/29/24
Short-term investments
Putnam Short Term
Investment Fund
Class P^*	$33,906,849	$136,412,441	$136,823,155	$1,691,181	33,496,135
Total Short-term
investments	$33,906,849	$136,412,441	$136,823,155	$1,691,181	$33,496,135

^*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.

Floating Rate Income Fund 43

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. The fund may invest in higher-yielding, lower-rated bonds that may have a higher rate of default.

Note 7: Senior loan commitments

Senior loans are purchased or sold on a when-issued or delayed delivery basis and may be settled a month or more after the trade date, which from time to time can delay the actual investment of available cash balances; interest income is accrued based on the terms of the securities. Senior loans can be acquired through an agent, by assignment from another holder of the loan, or as a participation interest in another holder’s portion of the loan. When the fund invests in a loan or participation, the fund is subject to the risk that an intermediate participant between the fund and the borrower will fail to meet its obligations to the fund, in addition to the risk that the borrower under the loan may default on its obligations.

Note 8: 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:


Centrally cleared credit default contracts (notional)	$9,000,000

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	Statement of		Statement of
hedging instruments	assets and		assets and
under ASC 815	liabilities location	Fair value	liabilities location	Fair value
	Receivables, Net
	assets — Unrealized
Credit contracts	appreciation	$653,994^*	Payables	$—
Total		$653,994		$—

^*Includes cumulative appreciation of centrally cleared swaps as reported in the fund’s portfolio. Only current day’s variation margin is reported within the Statement of assets and liabilities.

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	Swaps	Total
Credit contracts	$750,380	$750,380
Total	$750,380	$750,380


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	Swaps	Total
Credit contracts	$87,119	$87,119
Total	$87,119	$87,119

44 Floating Rate Income Fund

Note 9: 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.


	Barclays Capital, Inc.
	(clearing broker)	Total
Assets:
Centrally cleared credit default contracts^§	$13,690	$13,690
Total Assets	$13,690	$13,690
Liabilities:
Centrally cleared credit default contracts^§	—	—
Total Liabilities	$—	$—
Total Financial and Derivative Net Assets	$13,690	$13,690
Total collateral received (pledged)^†##	$—
Net amount	$13,690
Controlled collateral received (including
TBA commitments)^**	$—	$—
Uncontrolled collateral received	$—	$—
Collateral (pledged) (including TBA commitments)^**	$—	$—

^**Included with Investments in securities on the Statement of assets and liabilities.

^†Additional collateral may be required from certain brokers based on individual agreements.

^##Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.

^§Includes current day’s variation margin only as reported on the Statement of assets and liabilities, which is not collateralized. Cumulative appreciation/(depreciation) for centrally cleared swap contracts is represented in the table listed after the fund’s portfolio. Collateral pledged for initial margin on centrally cleared swap contracts, which is not included in the table above, amounted to $708,516.

Floating Rate Income Fund 45

Federal tax information (Unaudited)

For the reporting period, a portion of the fund’s distribution represents a return of capital and is therefore not taxable to shareholders.

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.

46 Floating Rate Income Fund

Shareholder meeting results (Unaudited)

January 4, 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
21,377,002	560,684	1,702,651

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
21,234,038	638,228	1,768,071

All tabulations are rounded to the nearest whole number.

Floating Rate Income Fund 47

Photo -- floatingrateincomex49x1.jpg

48 Floating Rate Income Fund

Floating Rate Income Fund 49

^* Ms. Murphy is the founder, controlling member, and Chief Executive Officer of Runa Digital Assets, LLC (“RDA”), the investment manager of Runa Digital Partners, LP (“RDP”), a private investment fund. Ms. Murphy also holds a controlling interest in RDP’s general partner and is a limited partner in RDP. A subsidiary of Franklin Templeton and certain individuals employed by Franklin Templeton or its affiliates have made passive investments as limited partners in RDP (one of whom serves on the advisory board for RDA, which has no governance or oversight authority over RDA), representing in the aggregate approximately 33% of RDP as of October 31, 2023. In addition, if certain conditions are met, Franklin Templeton will be entitled to receive a portion of any incentive compensation allocable to RDP’s general partner. For so long as Franklin Templeton maintains its investment in RDP, Ms. Murphy also has agreed upon request to advise and consult with Franklin Templeton and its affiliates on the market for digital assets. Ms. Murphy provides similar service to other limited partners in RDP that request her advice. Ms. Murphy also is entitled to receive deferred cash compensation in connection with her prior employment by an affiliate of Franklin Templeton, which employment ended at the end of 2021. With regard to Ms. Murphy, the relationships described above may give rise to a potential conflict of interest with respect to the Funds.

† Mr. Reynolds is an “interested person” (as defined in the Investment Company Act of 1940) of the fund and Putnam Management. He is President of your fund and each of the other Putnam funds and holds direct beneficial interest in shares of Franklin Templeton, of which Putnam Management is an indirect wholly-owned subsidiary.

‡ Ms. Trust is an “interested person” (as defined in the Investment Company Act of 1940) of the fund and Putnam Management by virtue of her positions with certain affiliates of Putnam Management.

The address of each Trustee is 100 Federal Street, Boston, MA 02110.

As of February 29, 2024, there were 89 mutual funds, 4 closed-end funds, and 12 exchange-traded funds in the Putnam family of funds. Each Trustee serves as Trustee of all funds in the Putnam family of funds. Ms. Trust also serves as Trustee of 123 other funds that are advised by one or more affiliates of Putnam Management.

Each Trustee serves for an indefinite term, until his or her resignation, retirement at age 75, removal, or death.

Officers
In addition to Robert L. Reynolds, the other officers of the fund are shown below:


Kevin R. Blatchford (Born 1967)	Alan G. McCormack (Born 1964)
Vice President and Assistant Treasurer	Vice President and Derivatives Risk Manager
Since 2023	Since 2022
Director, Financial Reporting, Putnam Holdings	Head of Quantitative Equities and Risk,
	Putnam Management
James F. Clark (Born 1974)
Vice President and Chief Compliance Officer	Denere P. Poulack (Born 1968)
Since 2016	Assistant Vice President, Assistant Clerk,
Chief Compliance Officer, Putnam Management	and Assistant Treasurer
and Putnam Holdings	Since 2004

Michael J. Higgins (Born 1976)	Janet C. Smith (Born 1965)
Vice President, Treasurer, and Clerk	Vice President, Principal Financial Officer, Principal
Since 2010	Accounting Officer, and Assistant Treasurer
	Since 2007
Jonathan S. Horwitz (Born 1955)	Head of Fund Administration Services, Putnam Holdings
Executive Vice President, Principal Executive Officer,	and Putnam Management
and Compliance Liaison
Since 2004	Stephen J. Tate (Born 1974)
	Vice President and Chief Legal Officer
Kelley Hunt (Born 1984)	Since 2021
AML Compliance Officer	Deputy General Counsel, Franklin Templeton, and
Since 2023	Secretary, Putnam Holdings, Putnam Management, and
Manager, U.S. Financial Crime Compliance,	Putnam Retail Management
Franklin Templeton

Martin Lemaire (Born 1984)
Vice President and Derivatives Risk Manager
Since 2022
Risk Manager and Risk Analyst, Putnam Management

The principal occupations of the officers for the past five years have been with the employers as shown above, although in some cases they have held different positions with such employers. The address of each officer, other than Ms. Hunt, is 100 Federal Street, Boston, MA 02110. Ms. Hunt’s address is 100 Fountain Parkway, St. Petersburg, FL 33716.

50 Floating Rate Income Fund

Fund information


Investment Manager	Trustees	Jonathan S. Horwitz
Putnam Investment	Kenneth R. Leibler, Chair	Executive Vice President,
Management, LLC	Barbara M. Baumann, Vice Chair	Principal Executive Officer,
100 Federal Street	Liaquat Ahamed	and Compliance Liaison
Boston, MA 02110	Katinka Domotorffy
	Catharine Bond Hill	Kelley Hunt
Investment Sub-Advisor	Jennifer Williams Murphy	AML Compliance Officer
Putnam Investments Limited	Marie Pillai
16 St James’s Street	George Putnam III	Martin Lemaire
London, England SW1A 1ER	Robert L. Reynolds	Vice President and
	Manoj P. Singh	Derivatives Risk Manager
Marketing Services	Mona K. Sutphen
Putnam Retail Management	Jane E. Trust	Alan G. McCormack
Limited Partnership		Vice President and
100 Federal Street	Officers	Derivatives Risk Manager
Boston, MA 02110	Robert L. Reynolds
	President, The Putnam Funds	Denere P. Poulack
Custodian		Assistant Vice President,
State Street Bank	Kevin R. Blatchford	Assistant Clerk, and
and Trust Company	Vice President and	Assistant Treasurer
	Assistant Treasurer
Legal Counsel		Janet C. Smith
Ropes & Gray LLP	James F. Clark	Vice President,
	Vice President and	Principal Financial Officer,
Independent Registered	Chief Compliance Officer	Principal Accounting Officer,
Public Accounting Firm		and Assistant Treasurer
PricewaterhouseCoopers LLP	Michael J. Higgins
	Vice President, Treasurer,	Stephen J. Tate
	and Clerk	Vice President and
		Chief Legal Officer

This report is for the information of shareholders of Putnam Floating Rate Income Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of the fund’s Quarterly Performance Summary, and the fund’s Quarterly Ranking Summary. For more recent performance, please visit putnam.com or franklintempleton.com. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund, which are described in its prospectus. For this and other information or to request a prospectus or summary prospectus, call 1-800-225-1581 toll free. Please read the prospectus carefully before investing. The fund’s Statement of Additional Information contains additional information about the fund’s Trustees and is available without charge upon request by calling 1-800-225-1581.

This page left blank intentionally.


	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. As such they are subject to a comprehensive Code of Ethics adopted and administered by Putnam Investments 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 Putnam Investments with respect to all of its officers and Trustees who are employees of Putnam Investment Management, LLC. 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.


	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 Dr. Hill, Ms. Murphy 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


February 29, 2024	$89,933	$ —	$9,614	$ —
February 28, 2023	$80,120	$ —	$9,334	$ —


	For the fiscal years ended February 29, 2024 and February 28, 2023, the fund’s independent auditor billed aggregate non-audit fees in the amounts of $673,977 and $251,345 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

February 29, 2024	$ —	$664,363	$ —	$ —
February 28, 2023	$ —	$242,011	$ —	$ —


	(i) Not applicable


	(j) Not applicable


	Item 5. Audit Committee of Listed Registrants


	Not applicable


	Item 6. Schedule of Investments:


	The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.


	Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:


	Not applicable


	Item 8. Portfolio Managers of Closed-End Investment Companies


	Not Applicable


	Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:


	Not applicable


	Item 10. Submission of Matters to a Vote of Security Holders:


	Not applicable


	Item 11. 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 12. Disclosures of Securities Lending Activities for Closed-End Management Investment Companies:


	Not Applicable


	Item 13. Recovery of Erroneously Awarded Compensation.


	(a) No


	(b) No


	Item 14. Exhibits:


	(a)(1) The Code of Ethics of The Putnam Funds, which incorporates the Code of Ethics of Putnam Investments, is 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. Not Applicable


	(a)(3) Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, 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/ *Janet C. Smith* Janet C. Smith Principal Accounting Officer


	Date: April 25, 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: April 25, 2024


	By (Signature and Title):


	/s/ *Janet C. Smith* Janet C. Smith Principal Financial Officer


	Date: April 25, 2024

Dates Referenced Herein and Documents Incorporated by Reference

This ‘N-CSR’ Filing	Date	Other Filings

	6/30/24
Filed on / Effective on:	4/25/24	NPORT-P
	4/8/24
	3/1/24	40-17G
For Period end:	2/29/24	485BPOS, NPORT-P
	1/4/24
	1/1/24
	12/31/23	N-CSRS, NPORT-P
	10/31/23	24F-2NT, 497, 497K, N-CEN, N-CSR, N-CSRS, NPORT-P
	6/30/23	24F-2NT, 485BPOS, 497, 497K, N-CEN, N-CSR, N-PX, N-PX/A, NPORT-P
	3/1/23
	2/28/23	24F-2NT, 485BPOS, 497, 497K, N-CEN, N-CSR, N-CSRS, NPORT-P
	2/28/22	24F-2NT, 485BPOS, N-CEN, N-CSR, N-CSRS, NPORT-P
	2/28/21	24F-2NT, 485BPOS, N-CEN, N-CSR, N-CSRS, NPORT-P
	4/8/20
	2/29/20	485BPOS, N-CEN, N-CSR, N-CSRS, NPORT-P
	12/31/06	N-CSRS, N-Q, NSAR-A
	12/31/05	N-CSR, N-Q, NSAR-A
	7/1/95
		List all Filings

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Filing Submission 0000928816-24-000558 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Putnam Funds Trust – ‘N-CSR’ for 2/29/24

On: Thursday, 4/25/24, at 5:21pm ET · Effective: 4/25/24 · For: 2/29/24 · Accession #: 928816-24-558 · File #: 811-07513

As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/25/24 Putnam Funds Trust N-CSR 2/29/24 5:3.1M McMunn Assocs Inc./FA → Putnam Floating Rate Income Fund ⇒ Class A shares (PFLRX) — Class B shares — Class C shares — Class R shares — Class R6 Shares — Class Y shares

Document/Exhibit Description Pages Size 1: N-CSR Putnam Funds Trust HTML 563K 3: EX-99.906 CERT 906 Certifications HTML 8K 2: EX-99.CERT Certifications HTML 13K 4: EX-99.CODE ETH Code of Ethics HTML 369K 5: EX-99.CODE ETH Code of Ethics HTML 28K

Page	(sequential)		(alphabetic)	↑Top
		Alternative Formats (Word, et al.) About the Trustees Audited financial statements Comparative index definitions Federal tax information Important notice regarding Putnam's privacy policy Interview with your fund's portfolio manager Message from the Trustees Officers Other information for shareholders Report of Independent Registered Public Accounting Firm Shareholder meeting results Your fund's expenses Your fund's performance
1	1st Page – Filing Submission
"	Message from the Trustees
"	Interview with your fund's portfolio manager
"	Your fund's performance
"	Your fund's expenses
"	Comparative index definitions
"	Other information for shareholders
"	Important notice regarding Putnam's privacy policy
"	Audited financial statements
"	Report of Independent Registered Public Accounting Firm
"	Federal tax information
"	Shareholder meeting results
"	About the Trustees
"	Officers

Page

(sequential)

(alphabetic)

↑Top

Alternative Formats (Word, et al.)
About the Trustees
Audited financial statements
Comparative index definitions
Federal tax information
Important notice regarding Putnam's privacy policy
Interview with your fund's portfolio manager
Message from the Trustees
Officers
Other information for shareholders
Report of Independent Registered Public Accounting Firm
Shareholder meeting results
Your fund's expenses
Your fund's performance

1st Page – Filing Submission

Message from the Trustees

Interview with your fund's portfolio manager

Your fund's performance

Your fund's expenses

Comparative index definitions

Other information for shareholders

Important notice regarding Putnam's privacy policy

Audited financial statements

Report of Independent Registered Public Accounting Firm

Federal tax information

Shareholder meeting results

About the Trustees

Officers


	Life of fund	10 years	5 years	3 years	1 year
Class A (8/4/04)
Before sales charge	3.62%	3.30%	3.81%	4.63%	10.74%
After sales charge	3.50	3.06	3.34	3.84	8.24
Class B (9/7/04)
Before CDSC	3.41	3.12	3.60	4.42	10.52
After CDSC	3.41	3.12	3.60	4.42	9.52
Class C (9/7/04)
Before CDSC	3.29	2.67	3.01	3.80	9.77
After CDSC	3.29	2.67	3.01	3.80	8.77
Class R (9/7/04)
Net asset value	3.36	3.04	3.55	4.37	10.46
Class R6 (5/22/18)
Net asset value	3.89	3.60	4.16	4.97	11.10
Class Y (10/4/05)
Net asset value	3.86	3.56	4.07	4.89	11.01


	Life of fund	10 years	5 years	3 years	1 year
Morningstar LSTA US
Leveraged Loan Index^*	4.88%	4.49%	5.26%	5.70%	11.49%
Lipper Loan Participation
Funds category median^†	3.87	3.48	3.94	4.48	10.30


	Life of fund	10 years	5 years	3 years	1 year
Class A (8/4/04)
Before sales charge	3.65%	3.38%	4.10%	5.01%	11.56%
After sales charge	3.53	3.14	3.62	4.22	9.05
Class B (9/7/04)
Before CDSC	3.44	3.20	3.89	4.76	11.34
After CDSC	3.44	3.20	3.89	4.76	10.34
Class C (9/7/04)
Before CDSC	3.33	2.74	3.32	4.23	10.73
After CDSC	3.33	2.74	3.32	4.23	9.73
Class R (9/7/04)
Net asset value	3.38	3.10	3.81	4.71	11.28
Class R6 (5/22/18)
Net asset value	3.91	3.67	4.42	5.31	11.93
Class Y (10/4/05)
Net asset value	3.89	3.62	4.33	5.24	11.84


	Class A	Class B	Class C	Class R	Class R6	Class Y
Total annual operating expenses for the
fiscal year ended 2/28/23	1.03%	1.23%	1.78%	1.28%	0.70%	0.78%
Annualized expense ratio for the
six-month period ended 2/29/24^*	1.04%	1.24%	1.79%	1.29%	0.71%	0.79%


	Class A	Class B	Class C	Class R	Class R6	Class Y
Expenses paid per $1,000^*†	$5.30	$6.32	$9.11	$6.57	$3.62	$4.03
Ending value (after expenses)	$1,050.20	$1,049.10	$1,046.30	$1,048.90	$1,051.90	$1,051.50

Dates Referenced Herein and Documents Incorporated by Reference

Putnam Funds Trust – ‘N-CSR’ for 2/29/24

On: Thursday, 4/25/24, at 5:21pm ET · Effective: 4/25/24 · For: 2/29/24 · Accession #: 928816-24-558 · File #: 811-07513

Previous ‘N-CSR’: ‘N-CSR’ on 1/22/24 for 11/30/23 · Latest ‘N-CSR’: This Filing

Annual Certified Shareholder Report by an Investment Company — Form N-CSR — ICA’40

Filing Table of Contents

‘N-CSR’ — Putnam Funds Trust

Document Table of Contents

This is an HTML Document rendered as filed. [ Alternative Formats ]


	CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES


	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 reporting period:	March 1 , 2023 – February 29, 2024


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


Message from the Trustees	1
Interview with your fund’s portfolio manager	3
Your fund’s performance	7
Your fund’s expenses	10
Comparative index definitions	12
Other information for shareholders	13
Important notice regarding Putnam’s privacy policy	14
Audited financial statements	15
Report of Independent Registered Public Accounting Firm	16
Federal tax information	46
Shareholder meeting results	47
About the Trustees	48
Officers	50


	UNITED STATES SECURITIES AND EXCHANGE COMMISSION


	Washington, D.C. 20549


	FORM N-CSR


	Investment Company Act file number:	(811-07513)


*SENIOR LOANS (86.6%)c**	Principal amount	Value
Advertising and marketing services (1.3%)
Advantage Sales & Marketing, Inc. bank term loan FRN (CME Term SOFR 1 Month + 4.50%), 10.092%, 10/28/27	$1,118,828	$1,115,561
Clear Channel Outdoor Holdings, Inc. bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 3.50%), 9.074%, 8/21/26	2,360,512	2,346,089
CMG Media Corp. bank term loan FRN (CME Term SOFR 3 Month + 3.50%), 8.948%, 12/17/26	1,590,711	1,330,232
		4,791,882
Automotive (0.3%)
Wand NewCo 3, Inc. bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 3.75%), 9.076%, 1/20/31	1,000,000	1,001,250
		1,001,250
Basic materials (10.1%)
Arsenal AIC Parent, LLC bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 3.75%), 9.083%, 8/19/30	997,500	997,749
Axalta Coating Systems US Holdings, Inc. bank term loan FRN Ser. B4, (CME Term SOFR 1 Month + 2.50%), 7.848%, 12/20/29	351,494	351,614
BWAY Holding Co. bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 4.00%), 9.326%, 8/10/26	1,472,868	1,475,931
Core & Main LP bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 2.50%), 7.966%, 6/10/28	1,461,278	1,455,798
CP Atlas Buyer, Inc. bank term loan FRN Ser. B1, (CME Term SOFR 1 Month + 3.75%), 9.176%, 11/23/27	2,089,049	2,057,713
GEON Performance Solutions, LLC bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 4.75%), 10.36%, 8/20/28	977,500	976,278
Herens US Holdco Corp. bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 3.93%), 9.373%, 4/30/28	2,119,954	1,980,652
Janus International Group, LLC bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 3.25%), 8.623%, 7/25/30	1,995,000	1,996,995
Klockner-Pentaplast of America, Inc. bank term loan FRN (CME Term SOFR 6 Month + 4.73%), 10.268%, 2/4/26	1,478,058	1,418,936
LSF11 A5 HoldCo, LLC bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 4.25%), 9.676%, 10/15/28	616,900	616,592
LSF11 A5 HoldCo, LLC bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 3.50%), 8.941%, 9/30/28	23,580	23,469
Nouryon USA, LLC bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 4.00%), 9.424%, 4/3/28	746,250	745,787
Nouryon USA, LLC bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 4.00%), 9.419%, 4/3/28	1,476,042	1,474,507
Olympus Water US Holding Corp. bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 3.75%), 9.36%, 9/21/28	2,463,847	2,459,388
Pregis TopCo, LLC bank term loan FRN (CME Term SOFR 1 Month + 3.75%), 9.191%, 8/1/26	1,466,250	1,464,051
Quikrete Holdings, Inc. bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 2.63%), 6.696%, 2/1/27	1,504,543	1,503,835
SCIH Salt Holdings, Inc. bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 4.00%), 9.441%, 3/16/27	2,106,436	2,103,803
Smyrna Ready Mix Concrete, LLC bank term loan FRN (CME Term SOFR 1 Month + 3.50%), 8.82%, 4/1/29	1,178,313	1,179,786
Summit Materials, LLC bank term loan FRN (CME Term SOFR 1 Month + 2.50%), 7.827%, 11/30/28	1,000,000	1,002,080


*SENIOR LOANS (86.6%)c** cont.	Principal amount	Value
Basic materials cont.
TAMKO Building Products, LLC bank term loan FRN Ser. B , (CME Term SOFR 1 Month + 3.50%), 8.87%, 9/13/30	$2,010,494	$2,009,247
TMS International Corp./DE bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 4.25%), 9.588%, 3/4/30	1,488,750	1,489,688
Tronox Finance, LLC bank term loan FRN (CME Term SOFR 1 Month + 3.50%), 8.848%, 8/10/28	1,000,000	998,750
Tronox Finance, LLC bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 3.25%), 8.598%, 4/4/29	982,500	979,553
Vibrantz Technologies, Inc. bank term loan FRN (CME Term SOFR 3 Month + 4.25%), 9.573%, 4/21/29	1,978,731	1,930,608
W.R. Grace Holdings, LLC bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 3.75%), 9.36%, 9/22/28	1,979,849	1,976,879
Watlow Electric Manufacturing, Co. bank term loan FRN (CME Term SOFR 1 Month + 3.75%), 9.329%, 3/2/28	1,402,473	1,399,850
Windsor Holdings III, LLC bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 4.50%), 9.824%, 6/22/30	997,500	998,278
		37,067,817
Broadcasting (0.9%)
iHeartCommunications, Inc. bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 3.00%), 8.441%, 5/1/26	1,926,582	1,692,984
Univision Communications, Inc. bank term loan FRN (CME Term SOFR 1 Month + 3.25%), 8.691%, 3/24/26	1,567,344	1,564,899
		3,257,883
Building materials (5.0%)
AppleCaramel Buyer, LLC bank term loan FRN (CME Term SOFR 1 Month + 3.75%), 9.076%, 10/19/27	2,326,962	2,328,754
Chariot Buyer, LLC bank term loan FRN (CME Term SOFR 3 Month + 3.25%), 8.676%, 10/22/28	2,940,000	2,931,915
Cornerstone Building Brands, Inc. bank term loan FRN (CME Term SOFR 3 Month + 3.25%), 8.668%, 4/12/28	2,858,662	2,818,555
CPG International, LLC bank term loan FRN Ser. B, (CME Term SOFR 6 Month + 2.50%), 7.926%, 4/28/29	2,468,750	2,464,899
LBM Acquisition, LLC bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 3.75%), 9.176%, 12/17/27	2,759,601	2,749,611
MI Windows And Doors, Inc. bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 3.50%), 8.926%, 12/18/27	1,964,912	1,963,694
Park River Holdings, Inc. bank term loan FRN (CME Term SOFR 3 Month + 3.25%), 8.843%, 12/28/27	972,484	944,622
Robertshaw US Holding Corp. bank term loan FRN (CME Term SOFR 1 Month + 8.00%), 13.448%, 2/28/27	1,427,000	28,540
SRS Distribution, Inc. bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 3.50%), 8.941%, 5/20/28	1,959,799	1,955,958
		18,186,548
Capital goods (9.5%)
American Trailer World Corp. bank term loan FRN (CME Term SOFR 1 Month + 3.50%), 9.176%, 3/3/28	2,110,850	2,058,522
Barnes Group, Inc. bank term loan FRN Ser. B, (CME Term SOFR 1 Month + 3.00%), 8.426%, 8/30/30	498,750	498,999
Bleriot US Bidco, Inc. bank term loan FRN Ser. B, (CME Term SOFR 3 Month + 4.00%), 9.593%, 10/31/28	497,500	498,356


CORPORATE BONDS AND NOTES (5.0%)*	Principal amount	Value
Buckeye Partners LP sr. unsec. notes 3.95%, 12/1/26	$500,000	$472,850
Calpine Corp. 144A sr. unsec. notes 5.125%, 3/15/28	1,000,000	950,642
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A company guaranty sr. unsec. bonds 5.50%, 5/1/26	2,250,000	2,210,704
Connect Finco SARL/Connect US Finco, LLC 144A company guaranty sr. notes 6.75%, 10/1/26 (Luxembourg)	1,000,000	981,178
CSC Holdings, LLC 144A company guaranty sr. unsec. notes 5.375%, 2/1/28	1,100,000	958,793
DIRECTV Holdings, LLC/DIRECTV Financing Co., Inc. 144A sr. notes 5.875%, 8/15/27	1,000,000	943,870
Hess Midstream Operations LP 144A company guaranty sr. unsec. sub. notes 5.625%, 2/15/26	1,000,000	985,850
JELD-WEN, Inc. 144A company guaranty sr. unsec. notes 4.875%, 12/15/27	864,000	821,880
Novelis Corp. 144A company guaranty sr. unsec. notes 3.25%, 11/15/26	1,000,000	927,350
OneMain Finance Corp. company guaranty sr. unsec. sub. notes 7.125%, 3/15/26	1,000,000	1,016,242
Outfront Media Capital, LLC/Outfront Media Capital Corp. 144A company guaranty sr. unsec. notes 5.00%, 8/15/27	1,000,000	962,030
SM Energy Co. sr. unsec. notes 6.625%, 1/15/27	1,000,000	995,960
Smyrna Ready Mix Concrete, LLC 144A sr. notes 6.00%, 11/1/28	1,000,000	969,839
Standard Industries, Inc. 144A sr. unsec. notes 5.00%, 2/15/27	721,000	694,176
Tenet Healthcare Corp. company guaranty sr. notes 5.125%, 11/1/27	1,000,000	978,866
Teva Pharmaceutical Finance Netherlands III BV company guaranty sr. unsec. notes 6.75%, 3/1/28 (Israel)	1,000,000	1,011,810
Univision Communications, Inc. 144A sr. notes 8.00%, 8/15/28	1,000,000	1,005,340
Venture Global LNG, Inc. 144A sr. notes 8.125%, 6/1/28	1,000,000	1,015,907
Vistra Operations Co., LLC 144A company guaranty sr. notes 5.125%, 5/13/25	384,000	380,835
Total corporate bonds and notes (cost $18,011,709)		$18,284,122


COMMON STOCKS (—%)*	Shares	Value
Texas Competitive Electric Holdings Co., LLC/TCEH Finance, Inc. (Rights)^†	113,884	$170,826
Total common stocks (cost $142,355)		$170,826


SHORT-TERM INVESTMENTS (9.1%)*	Shares	Value
Putnam Short Term Investment Fund Class P 5.51% ^L	33,496,135	$33,496,135
Total short-term investments (cost $33,496,135)		$33,496,135


TOTAL INVESTMENTS
Total investments (cost $372,253,034)	$369,573,665


Key to holding’s abbreviations
bp	Basis Points
CME	Chicago Mercantile Exchange
FRN	Floating Rate Notes: The rate shown is the current interest rate or yield at the close of the reporting period. Rates may be subject to a cap or floor. For certain securities, the rate may represent a fixed rate currently in place at the close of the reporting period.
SOFR	Secured Overnight Financing Rate


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 March 1, 2023 through February 29, 2024 (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 Franklin Resources, Inc., and references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures.
^*	Percentages indicated are based on net assets of $366,693,287.
^†	This security is non-income-producing.
^c	Senior loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for senior loans are the current interest rates at the close of the reporting period. Senior loans are also subject to mandatory and/or optional prepayment which cannot be predicted. As a result, the remaining maturity may be substantially less than the stated maturity shown (Notes 1 and 7).
^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.
	Debt obligations are considered secured unless otherwise indicated.
	144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
	The dates shown on debt obligations are the original maturity dates.


CENTRALLY CLEARED CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 2/29/24
Referenced debt*	Rating***	Upfront premium received (paid)**		Notional amount	Value	Termi- nation date	Payments received by fund	Unrealized appreciation/ (depreciation)
CDX NA HY Series 41 Index	B+/P	$(20,934)		$8,910,000	$564,894	12/20/28	500 bp — Quarterly	$633,060
Total	$(20,934)		$633,060
^*Payments related to the referenced debt are made upon a credit default event.
^**Upfront premium is based on the difference between the original spread on issue and the market spread on day of execution.
^**Ratings for an underlying index represent the average of the ratings of all the securities included in that index. The Moody’s, Standard & Poor’s or Fitch ratings are believed to be the most recent ratings available at February 29, 2024. Securities rated by Fitch are indicated by “/F.”* Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications.

Putnam Funds Trust – ‘N-CSR’ for 2/29/24

On: Thursday, 4/25/24, at 5:21pm ET · Effective: 4/25/24 · For: 2/29/24 · Accession #: 928816-24-558 · File #: 811-07513

Previous ‘N-CSR’: ‘N-CSR’ on 1/22/24 for 11/30/23 · Latest ‘N-CSR’: This Filing

Annual Certified Shareholder Report by an Investment Company — Form N-CSR — ICA’40Filing Table of Contents

‘N-CSR’ — Putnam Funds TrustDocument Table of Contents

This is an HTML Document rendered as filed. [ Alternative Formats ]

Dates Referenced Herein and Documents Incorporated by Reference

Annual Certified Shareholder Report by an Investment Company — Form N-CSR — ICA’40

Filing Table of Contents

‘N-CSR’ — Putnam Funds Trust

Document Table of Contents