Putnam Research Fund (PNRAX) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: (811–07237)

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

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

Name and address of agent for service: Robert T. Burns, 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

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

Date of fiscal year end: September 30, 2019

Date of reporting period: October 1, 2018 — September 30, 2019

Item 1. Report to Stockholders:

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

Putnam
International Growth
Fund

Annual report
9|30|19

Message from the Trustees	1
Interview with your fund’s portfolio manager	3
Your fund’s performance	7
Your fund’s expenses	9
Consider these risks before investing	11
Terms and definitions	11
Other information for shareholders	12
Important notice regarding Putnam’s privacy policy	13
Trustee approval of management contract	14
Audited financial statements	19
Report of Independent Registered Public Accounting Firm	20
Federal tax information	48
About the Trustees	49
Officers	51

IMPORTANT NOTICE: Delivery of paper fund reports

In 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.

If you already receive these reports electronically, no action is required.

Message from the Trustees

November 4, 2019

Dear Fellow Shareholder:

We believe your mutual fund investment offers a number of advantages, such as investment diversification and daily liquidity. Putnam funds also include a commitment to active investing. Putnam’s portfolio managers and analysts take a research-intensive approach that incorporates risk management strategies designed to serve you through changing conditions.

To support your overall investment program, we believe that the counsel of a financial advisor is prudent. For over 80 years, Putnam has recognized the importance of professional investment advice. Your financial advisor can help in many ways, including defining and planning for goals, determining your appropriate level of risk, and reviewing your investments on a regular basis.

As always, your fund’s Board of Trustees remains committed to protecting the interests of Putnam shareholders like you. We thank you for investing with Putnam.

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 7–8 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.

This comparison shows your fund’s performance in the context of broad market indexes for the 12 months ended 9/30/19. See above and pages 7–8 for additional fund performance information. Index descriptions can be found on page 12.

2 International Growth Fund 

Jeff has an M.A. in Political Economy and International Relations from Princeton University, an M.A. in International Relations and Japanese Politics from the University of Tokyo, and a B.A. from Colgate University. He joined Putnam in 1999 and has been in the investment industry since 1993.

Jeff, how was the investing environment during the reporting period?

The period began in October 2018, at the onset of turbulence for stock market investors. International stocks declined in October and November as investors became increasingly concerned about geopolitical instability, uncertainty over monetary policy, a slowing Chinese economy, and the U.S.–China trade dispute. By the close of the 2018 calendar year, stocks had declined sharply. In Europe, stocks experienced their worst year since the global financial crisis. Contributing to the declines were budget struggles in Italy, social unrest in France, and a lack of clarity around Brexit — the planned withdrawal of the United Kingdom from the European Union. In addition, investors worldwide were worried that a widespread economic slowdown may be looming.

After the difficult end to 2018, stocks bounced back in early 2019 despite concerns over slowing economic growth and downward earnings revisions. The Fed’s decision to put interest-rate hikes on hold boosted sentiment, as did signs of progress in the U.S.–China trade conflict. For the first three months of 2019, international stocks posted solid gains

International Growth Fund 3 

Allocations are shown as a percentage of the fund’s net assets as of 9/30/19. 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.

This table shows the fund’s top 10 holdings by percentage of the fund’s net assets as of 9/30/19. Short-term holdings and derivatives, if any, are excluded. Holdings may vary over time.

4 International Growth Fund 

despite signs of slowing growth in many economies. For the remainder of the 12-month period, international stocks delivered modest advances despite the fact that many of the macroeconomic issues persisted.

How did the fund perform in this environment?

It was a challenging 12 months for fund performance. For the reporting period, the fund’s class A shares returned –5.68%, while the benchmark, the MSCI EAFE Growth Index [ND], returned 2.21%. The average return for funds in its Lipper peer group, International Multi-Cap Growth Funds, was –1.05%.

The fund’s underperformance relative to the benchmark was largely due to the fund’s investments in small and midsize companies. Large-company stocks make up a larger portion of the benchmark index holdings, and they outperformed small and midsize company stocks by a considerable margin during the reporting period. In addition, the fund’s benchmark does not include emerging-market stocks, which declined during the period and dampened fund performance somewhat.

Could you discuss some specific stocks that detracted from the fund’s performance?

Talend, a software company specializing in cloud-based solutions, was the top detractor from performance for the period. The stock struggled due to revenue weakness as the company transitioned its business model. However, we continue to own Talend and believe it offers compelling growth potential. As more businesses find it necessary to transition their data systems to the cloud, we believe Talend is well positioned as a globally recognized leader in this area.

Fund performance relative to the benchmark also suffered from our decision to not own Nestlé, a Switzerland-based food and beverage conglomerate. In our view, the stock did not offer an attractive price nor the growth potential we seek for our investments. The stock, whichis part of the fund’s benchmark, performed well as investors sought stocks that offered an attractive dividend yield and historically dependable — albeit slow — growth.

Our investment in Dalata Hotel Group, Ireland’s largest hotel operator, was also a detractor. The stock declined as investors worried about the potential impact of Brexit on tourism and hotel occupancy. Despite its recent weakness, we continued to hold Dalata in the fund at the close of the period. We believe it is a fundamentally solid business with strong management and durable growth potential.

What were some stocks that contributed to the fund’s performance for the period?

One of the top contributors to performance was Constellation Software, a Canadian company that is not part of the fund’s benchmark index. We had been following and analyzing this company for a while, and in mid-2018, we took advantage of a price decline to build a position. We have been impressed with the company’s ability to identify — and then acquire — software businesses across a variety of specialized markets. The company has been very successful in acquiring and managing these businesses, and we believe it continues to offer attractive long-term growth prospects. The stock remained in the portfolio at period-end.

Another portfolio highlight was Rheinmetall, a German defense contractor. We took advantage of this stock’s decline to add it to the portfolio at what we believed was an attractive price. Investors had been concerned about weakness in the company’s automotive business. However, we are focused on the growth potential of its weapons systems and

International Growth Fund 5 

defense and security technology. We believe the company’s long-term growth prospects are strong, especially as the German government currently plans to increase its defense spending in the coming years.

Also worth noting is Dino Polska, a Poland-based chain of grocery stores. We believe the company can continue to grow and gain market share due to its focus on offering clean, modern, visually appealing stores for Polish grocery shoppers. In addition, its distribution capabilities have been able to ensure more frequent delivery of fresh food than competing grocery stores. We believe there is room for continued growth and expansion for Dino Polska, and this stock remained in the portfolio at period-end.

As the fund begins a new fiscal year, what is your outlook?

As the period came to a close, investors began to favor the types of stocks we seek for the portfolio — those with superior growthprospects and attractive valuations. Although conditions could remain challenging for some segments of the market, we remain patiently focused on our investment process. This includes bottom-up analysis of companies’ earnings power and how their prospective earnings are priced by the market. While broader macroeconomic issues are important to consider, our main focus is the long-term appreciation potential of individual companies.

Thank you, Jeff, for your time and insights today.

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.

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.

6 International Growth Fund 

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended September 30, 2019, 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. On November 25, 2019, all outstanding class M shares were converted to class A shares, and class M shares are no longer available for purchase. See the Terms and definitions section in this report for definitions of the share classes offered by your fund.

Fund performanceTotal return for periods ended 9/30/19

	Annual
	average		Annual		Annual		Annual
	(life of fund)	10 years	average	5 years	average	3 years	average	1 year
Class A(1/3/95)
Before sales charge	5.91%	61.68%	4.92%	13.71%	2.60%	16.84%	5.33%	–5.68%
After sales charge	5.66	52.38	4.30	7.17	1.40	10.12	3.27	–11.10
Class B(7/21/95)
Before CDSC	5.66	52.23	4.29	9.54	1.84	14.27	4.55	–6.37
After CDSC	5.66	52.23	4.29	7.54	1.46	11.27	3.62	–11.05
Class C(2/1/99)
Before CDSC	5.60	49.95	4.13	9.53	1.84	14.28	4.55	–6.37
After CDSC	5.60	49.95	4.13	9.53	1.84	14.28	4.55	–7.30
Class M(7/21/95)
Before sales charge	5.39	53.74	4.39	10.94	2.10	15.10	4.80	–6.17
After sales charge	5.24	48.36	4.02	7.05	1.37	11.07	3.56	–9.45
Class R(12/1/03)
Net asset value	5.65	57.65	4.66	12.36	2.36	16.01	5.07	–5.91
Class R6(5/22/18)
Net asset value	6.07	66.20	5.21	15.44	2.91	18.03	5.68	–5.25
Class Y(10/4/05)
Net asset value	6.06	65.82	5.19	15.17	2.87	17.75	5.60	–5.43

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After-sales-charge returns for class A and M shares reflect the deduction of the maximum 5.75% and 3.50% sales charge, respectively, levied at the time of purchase. Class B share returns after contingent deferred sales charge (CDSC) 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 B, C, M, 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.

International Growth Fund 7 

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 returnsFor periods ended 9/30/19

	Annual
	average		Annual		Annual		Annual
	(life of fund)	10 years	average	5 years	average	3 years	average	1 year
MSCI EAFE Growth
Index (ND)	4.64%	88.04%	6.52%	30.63%	5.49%	25.16%	7.77%	2.21%
Lipper International
Multi-Cap Growth Funds	5.90	72.66	5.48	21.71	3.91	20.35	6.31	–1.05
category average*

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 9/30/19, there were 496, 428, 355, 284, and 32 funds, respectively, in this Lipper category.

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 $15,223 and $14,995, respectively, and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $14,836. A $10,000 investment in the fund’s class R, R6, and Y shares would have been valued at $15,765, $16,620 and $16,582, respectively.

Fund price and distribution informationFor the 12-month period ended 9/30/19

	Class A		Class B	Class C	Class M		Class R	Class R6	Class Y
	Before	After	Net	Net	Before	After	Net	Net	Net
	sales	sales	asset	asset	sales	sales	asset	asset	asset
Share value	charge	charge	value	value	charge	charge	value	value	value
9/30/18	$22.54	$23.92	$20.09	$20.57	$20.92	$21.68	$22.00	$22.84	$22.83
9/30/19	21.26	22.56	18.81	19.26	19.63	20.34	20.70	21.64	21.59

The classification of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate for class A and M shares, if applicable, do not take into account any sales charge levied at the time of purchase. After-sales-charge share value, current dividend rate, and current 30-day SEC yield, if applicable, are calculated assuming that the maximum sales charge (5.75% for class A shares and 3.50% for class M shares) was levied at the time of purchase. Final distribution information will appear on your year-end tax forms.

The fund made no distributions during the period.

8 International Growth Fund 

Your fund’s expenses

As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. In the most recent six-month period, your fund’s expenses were limited; had expenses not been limited, they would have been higher. Using the following information, you can estimate how these expenses 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. On November 25, 2019, all outstanding class M shares were converted to class A shares, and class M shares are no longer available for purchase. For more information, see your fund’s prospectus or talk to your financial representative.

Expense ratios

	Class A	Class B	Class C	Class M	Class R	Class R6	Class Y
Net expenses for the fiscal year
ended 9/30/18*	1.40%	2.15%	2.15%	1.90%	1.65%	0.97%#	1.15%
Total annual operating expenses for the
fiscal year ended 9/30/18	1.51%	2.26%	2.26%	2.01%	1.76%	1.08%#	1.26%
Annualized expense ratio for the
six-month period ended 9/30/19†‡	1.37%	2.12%	2.12%	1.87%	1.62%	0.93%	1.12%

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.

^*Reflects Putnam Management’s contractual obligation to limit certain fund expenses through 1/30/20.

^†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 a decrease of 0.05% from annualizing the performance fee adjustment for the six months ended 9/30/19.

^#Other expenses are based on the expenses of class A shares for the fund’s last fiscal year, restated to reflect the lower investor servicing fees applicable to class R6 shares.

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in each class of the fund from 4/1/19 to 9/30/19. It also shows how much a $1,000 investment would be worth at the close of the period, assumingactual returnsand expenses.

	Class A	Class B	Class C	Class M	Class R	Class R6	Class Y
Expenses paid per $1,000*†	$6.95	$10.74	$10.74	$9.48	$8.22	$4.72	$5.69
Ending value (after expenses)	$1,024.60	$1,020.60	$1,020.70	$1,021.90	$1,023.20	$1,026.60	$1,025.70

^*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 9/30/19. 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.

International Growth Fund 9 

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended 9/30/19, use the following calculation method. To find the value of your investment on 4/1/19, call Putnam at 1-800-225-1581.

Compare expenses using the SEC’s method

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the following table shows your fund’s expenses based on a $1,000 investment, assuming ahypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

	Class A	Class B	Class C	Class M	Class R	Class R6	Class Y
Expenses paid per $1,000*†	$6.93	$10.71	$10.71	$9.45	$8.19	$4.71	$5.67
Ending value (after expenses)	$1,018.20	$1,014.44	$1,014.44	$1,015.69	$1,016.95	$1,020.41	$1,019.45

^*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 9/30/19. 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.

10 International Growth Fund 

Consider these risks before investing

International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-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, asset class, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. 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 terms

Total returnshows 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 chargeis the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. After-sales-charge performance figures shown here assume the 5.75% maximum sales charge for class A shares and 3.50% for class M shares.

Contingent deferred sales charge (CDSC)is generally a charge applied at the time of the redemption of class B or C shares and assumes redemption at the end of the period. Your fund’s class B CDSC declines over time from a 5% maximum during the 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 classes

Class A sharesare generally subject to an initial sales charge and no CDSC (except oncertain redemptions of shares bought without an initial sales charge).

Class B sharesare 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 sharesare not subject to an initial sales charge and are subject to a CDSC only if the shares are redeemed during the first year.

Class M shareshave a lower initial sales charge and a higher 12b-1 fee than class A shares and no CDSC. On November 25, 2019, all outstanding class M shares were converted to class A shares, and class M shares are no longer available for purchase.

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

Class R6 sharesare 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 sharesare 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.

International Growth Fund 11 

Comparative indexes

Bloomberg Barclays U.S. Aggregate Bond Indexis an unmanaged index of U.S. investment-grade fixed-income securities.

ICE BofAML (Intercontinental Exchange Bank of America Merrill Lynch) U.S. 3-Month Treasury Bill Indexis an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

MSCI EAFE Growth Index (ND)is an unmanaged index that measures the performance in 20 countries within Europe, Australasia and the Far East with a greater-than-average growth orientation. Calculated with net dividends (ND), this total return index reflects the reinvestment 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 Indexis 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 BofAML”), used with permission. ICE BofAML permits use of the ICE BofAML indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofAML 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.

Lipperis 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.

Other information for shareholders

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2019, are available in the Individual Investors section of putnam.com and on the Securities and Exchange Commission (SEC) website, www.sec.gov. If you have questions about 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 holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the firstand 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 ownership

Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of September 30, 2019, Putnam employees had approximately $473,000,000 and the Trustees had approximately $73,000,000 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.

12 International Growth Fund 

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 accessto 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.

International Growth Fund 13 

Trustee approval of management contract

General conclusions

The Board of Trustees of The Putnam Funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of your fund’s management contract with Putnam 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 discussed with representatives of Putnam Management the annual contract review materials furnished to the Contract Committee during the course of the previous year’s review, identifying possible changes in these materials that might be necessary or desirable for the coming year. 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 Committee. Over the course of several months ending in June 2019, 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 2019, the Contract Committee met in executive session to discuss and consider its recommendations with respect to the continuance of the contracts. At the Trustees’June 2019 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 Trustees approved, the continuance of your fund’s management, sub-management and sub-advisory contracts, effective July 1, 2019. (Because PIL and PAC are affiliates of Putnam Management and Putnam Management remains fully responsible for all services provided by PIL and PAC, the Trustees 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 represented 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 application 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 comprehensive consideration of all information provided to the Trustees and were not the result of any single factor. Some of the factors that figured particularly 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 management arrangements for your fund and the other Putnam funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that some aspects of

14 International Growth Fund 

the arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of fee arrangements in previous years. For example, with some minor exceptions, the funds’ current fee arrangements under the 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 expenses

The Trustees reviewed the management fee schedules in effect for all Putnam funds, including fee levels and breakpoints. The Trustees also reviewed the total expenses of each Putnam fund, recognizing that in most cases management 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 structure 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 economies of scale in the form of reduced fee rates 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 economies 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 investmentperformance, the Trustees examined the operation of your fund’s performance fees and concluded that these fees were operating effectively to align further Putnam Management’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 implemented expense limitations that were in effect during your fund’s fiscal year ending in 2018. These expense limitations were: (i) a contractual expense limitation applicable to all open-end funds of 25 basis points on investor servicing fees and expenses and (ii) a contractual expense limitation applicable to specified open-end funds, including your fund, of 20 basis points on so-called “other expenses” (i.e., all expenses exclusive of management 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 were not operative during their fiscal years ending in 2018. However, in the case of your fund, the first of the expense limitations was operative during its fiscal year ending in 2018. Putnam Management and PSERV have agreed to maintain these expense limitations until at least January 30, 2021. In addition, Putnam Management contractually agreed to waive fees and/or reimburse expenses of your fund to the extent that expenses of the fund (excluding payments under the fund’s distribution plans, investor servicing fees, any applicable performance-based upward or downward adjustments to the fund’s base management fee, brokerage, interest, taxes, investment-related expenses, extraordinary expenses, and acquired fund fees and expenses) would exceed an annual rate of 0.93% of its average net assets through at least January 30, 2021. During its fiscal year ending in 2018, your fund’s expenses were reduced as a result of this expense limitation. The support of Putnam Management and PSERV for these expense limitation arrangements was an important factor in the Trustees’ decision to approve the continuance of

International Growth Fund 15 

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 fifth 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 fifth quintile in total expenses (excluding any applicable 12b-1 fees) as of December 31, 2018. 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, 2018 reflected the most recent fiscal year-end data available in Broadridge’s database at that time.

In connection with their review of fund management 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 analysis of Putnam Management’s revenues, expenses and profitability, 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 profitability 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 represented 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 informationregarding fees charged by Putnam Management and its affiliates to institutional clients, including defined benefit pension and profit-sharing plans and sub-advised mutual funds. This information included, in cases where an institutional 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 different types of 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 individual 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 markets. The Trustees considered the fact that in many cases fee rates across different asset classes are higher on average for mutual funds than for institutional clients, and the Trustees 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 concluding that the management fees paid by your fund are reasonable.

Investment performance

The quality of the investment process provided by Putnam Management represented a major factor in the Trustees’ evaluation of the quality of services provided by Putnam Management under your fund’s management contract. The Trustees were assisted in their review of the Putnam funds’ investment process and 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 the funds’ portfolio teams and with the Chief Investment Officers and other senior members of Putnam Management’s Investment Division throughout the year. The Trustees concluded that Putnam Management generally provides a high-quality investment process — based on the experience and skills of the individuals assigned to the management of fund portfolios, the resources made available to them, and in general Putnam Management’s ability to attract and retain high-quality personnel — but also recognized that this does not guarantee favorable investment results for every fund in every time period.

16 International Growth Fund 

The Trustees considered that, after a strong start to the year, 2018 was a mixed year for The Putnam Funds, with the Putnam open-end Funds’ performance, on an asset-weighted basis, ranking in the 54th percentile of their Lipper Inc. (“Lipper”) peers (excluding those Putnam funds that are evaluated based on their total returns versus selected investment benchmarks). The Trustees also noted that The Putnam Funds were ranked by the Barron’s/Lipper Fund Families survey as the 41st-best performing mutual fund complex out of 57 complexes for the one-year period ended December 31, 2018 and the 29th-best performing mutual fund complex out of 55 complexes for the five-year period ended December 31, 2018. The Trustees observed that The Putnam Funds’ performance over the longer-term continued to be strong, ranking 6th out of 49 mutual fund complexes in the survey over the ten-year period ended 2018. In addition, the Trustees noted that 22 of the funds were four- or five-star rated by Morningstar Inc. at the end of 2018. They also noted, however, the disappointing investment performance of some funds for periods ended December 31, 2018 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 effectiveness 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 industry 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 Management informed the Trustees that meaningful competitive performance rankings are not considered to be available, the Trustees evaluated performance based on their total gross and net returns and comparisons of those returns with the returns of selected investment benchmarks. 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 Multi-Cap Growth Funds) for the one-year, three-year and five-year periods endedDecember 31, 2018 (the first quartile representing the best-performing funds and the fourth quartile the worst-performing funds):

One-year period	4th
Three-year period	4th
Five-year period	3rd

Over the one-year, three-year and five-year periods ended December 31, 2018, there were 505, 449 and 380 funds, respectively, in your fund’s Lipper peer group. (When considering performance information, shareholders should be mindful that past performance is not a guarantee of future results.)

The Trustees expressed concern about your fund’s fourth quartile performance over the one-year and three-year periods ended December 31, 2018 and considered the circumstances that may have contributed to this disappointing performance. The Trustees noted that Putnam Management believed that the fund’s fourth quartile performance was driven by several factors. The Trustees considered Putnam Management’s observation that security selection within certain sectors (particularly, the consumer discretionary and industrials sectors) and an overweight allocation to smaller-cap stocks detracted from the fund’s performance. The Trustees additionally noted Putnam Management’s view that the fund’s focus on companies priced attractively with strong growth prospects detracted from the fund’s performance in 2016 and the second half of 2018, during which an economic slowdown and concerns regarding deflation drove the outperformance of higher quality stocks with lower growth prospects.

The Trustees noted the fund’s top quartile performance in 2017 when the economic environment was more favorable for growth stocks.The Trustees considered that Putnam Management remained confident in the fund’s portfolio manager. The Trustees also considered Putnam Management’s continued efforts to support fund performance through initiatives including structuring compensation 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 in 2018 to strengthen its investment team.

International Growth Fund 17 

As a general matter, the Trustees believe that cooperative efforts between the Trustees and Putnam Management represent the most effective way to address investment performance concerns that may arise from time to time. The Trustees noted that investors in the Putnam funds have, in effect, placed their trust in the Putnam organization, under the oversight of the funds’ Trustees, to make appropriate decisions regarding the management of the funds. Based on Putnam Management’s willingness to take appropriate measures to address fund performance issues and Putnam Management’s responsiveness to Trustee concerns about investment performance, the Trustees concluded that it continued to be advisable to seek change within Putnam Management to address performance shortcomings. In the Trustees’ view, the alternative of engaging a new investment adviser for an underperforming fund, with all the attendant risks and disruptions, would not likely provide any greater assurance of improved investment performance.

Brokerage and soft-dollar allocations; investor servicing

The 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 Management 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 andresearch services (including third-party research and market data) that enhance Putnam Management’s investment capabilities and supplement Putnam Management’s internal research efforts. However, the Trustees noted that a portion of available soft dollars continues to be used to pay fund expenses. The Trustees indicated their continued intent to monitor regulatory and industry developments in this area with the assistance of their Brokerage Committee. The Trustees also indicated their continued intent to monitor the allocation of the Putnam funds’ brokerage in order to ensure that the principle of seeking best price and execution remains paramount in the portfolio trading process.

Putnam Management may also receive 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 distribution 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.

18 International Growth Fund 

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 portfoliolists all the fund’s investments 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 liabilitiesshows 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 operationsshows 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 operatingexpenses 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 unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal year.

Statement of changes in net assetsshows 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 determined on a tax basis and may be paid in a different period from the one in which they were earned.

Financial highlightsprovide 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 semiannual report, the highlights table also includes the current reporting period.

International Growth Fund 19 

Report of Independent Registered Public Accounting Firm

To the Trustees of Putnam Investment Funds and Shareholders
of Putnam International Growth Fund:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the fund’s portfolio, of Putnam International Growth Fund (one of the funds constituting Putnam Investment Funds, referred to hereafter as the “Fund”) as of September 30, 2019, the related statement of operations for the year ended September 30, 2019, the statement of changes in net assets for each of the two years in the period ended September 30, 2019, including the related notes, and the financial highlights for each of the periods indicated therein (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 September 30, 2019, 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 September 30, 2019 and the financial highlights for each of the periods indicated therein 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 September 30, 2019 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
November 4, 2019

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.

20 International Growth Fund 

The fund’s portfolio9/30/19

COMMON STOCKS (97.0%)*	Shares	Value
Aerospace and defense (2.7%)
Airbus SE (France)	52,882	$6,870,539
		6,870,539
Airlines (1.9%)
Air Canada (Canada) †	97,800	3,189,748
Dart Group PLC (United Kingdom)	144,966	1,630,922
		4,820,670
Auto components (0.9%)
Pirelli & C. SpA (Italy)	378,441	2,238,952
		2,238,952
Banks (3.7%)
Bank Tabungan Pensiunan Nasional Syariah Tbk PT (Indonesia) †	4,536,300	1,054,582
Commercial International Bank (CIB) Egypt SAE GDR (Egypt)	288,572	1,328,874
HDFC Bank, Ltd. (India)	301,882	5,228,606
ING Groep NV (Netherlands)	168,050	1,759,128
		9,371,190
Beverages (6.6%)
Asahi Group Holdings, Ltd. (Japan)	106,600	5,274,543
Coca-Cola HBC AG (Switzerland)	79,045	2,582,331
Diageo PLC (United Kingdom)	83,703	3,430,223
Heineken NV (Netherlands)	50,836	5,494,328
		16,781,425
Building products (0.8%)
Daikin Industries, Ltd. (Japan)	14,900	1,954,053
		1,954,053
Capital markets (3.8%)
Burford Capital, Ltd. (United Kingdom)	177,881	1,802,199
Deutsche Boerse AG (Germany)	20,732	3,240,388
Quilter PLC (United Kingdom)	1,620,034	2,715,972
TMX Group, Ltd. (Canada)	21,700	1,872,799
		9,631,358
Chemicals (2.5%)
Koninklijke DSM NV (Netherlands)	14,961	1,800,265
Novozymes A/S Class B (Denmark)	65,818	2,767,259
OCI NV (Netherlands) †	77,647	1,833,116
		6,400,640
Commercial services and supplies (1.1%)
A-Living Services Co., Ltd. Class H (China)	1,160,250	2,685,346
New Bigfoot Other Assets GmbH (acquired 8/2/13, cost $7) (Private)
(Germany) †∆∆ F	5	4
New Middle East Other Assets GmbH (acquired 8/2/13, cost $3) (Private)
(Germany) †∆∆ F	2	2
		2,685,352
Construction and engineering (1.2%)
Daiho Corp. (Japan)	113,100	2,983,225
		2,983,225
Distributors (1.5%)
PALTAC Corp. (Japan)	78,800	3,847,991
		3,847,991

International Growth Fund 21 

COMMON STOCKS (97.0%)*cont.	Shares	Value
Diversified consumer services (1.1%)
Fu Shou Yuan International Group, Ltd. (China)	3,039,000	$2,687,047
		2,687,047
Entertainment (0.9%)
CTS Eventim AG & Co. KGaA (Germany)	40,104	2,259,878
		2,259,878
Food and staples retail (1.2%)
Dino Polska SA (Poland) †	78,354	3,067,649
		3,067,649
Food products (1.9%)
Grieg Seafood ASA (Norway)	278,810	3,407,877
Kerry Group PLC Class A (Ireland)	10,921	1,277,229
		4,685,106
Health-care providers and services (3.1%)
Orpea (France)	40,856	4,991,926
Solasto Corp. (Japan)	255,600	2,872,176
		7,864,102
Hotels, restaurants, and leisure (4.0%)
Compass Group PLC (United Kingdom)	153,887	3,960,201
Dalata Hotel Group PLC (Ireland)	819,297	4,375,666
GVC Holdings PLC (Isle of Man)	200,111	1,829,109
		10,164,976
Household durables (1.0%)
HC Brillant Services GmbH (acquired 8/2/13, cost $7) (Private)
(Germany) †∆∆ F	10	8
Sony Corp. (Japan)	41,700	2,447,814
		2,447,822
Industrial conglomerates (1.8%)
Rheinmetall AG (Germany)	36,566	4,625,187
		4,625,187
Insurance (7.2%)
AIA Group, Ltd. (Hong Kong)	483,200	4,565,237
IRB Brasil Resseguros SA (Brazil)	337,494	3,059,008
Prudential PLC (United Kingdom)	294,703	5,344,691
QBE Insurance Group, Ltd. (Australia)	608,466	5,158,193
		18,127,129
Interactive media and services (3.4%)
Alphabet, Inc. Class A †	1,500	1,831,710
Tencent Holdings, Ltd. (China)	122,600	5,165,102
Yandex NV Class A (Russia) †	49,000	1,715,490
		8,712,302
Internet and direct marketing retail (—%)
Global Fashion Group SA (acquired 8/2/13, cost $351,064) (Private)
(Luxembourg) †F ∆∆	1,554	3,195
		3,195
IT Services (2.8%)
Pagseguro Digital, Ltd. Class A (Brazil) †	33,300	1,542,123
Visa, Inc. Class A S	31,900	5,487,119
		7,029,242

22 International Growth Fund 

COMMON STOCKS (97.0%)*cont.	Shares	Value
Life sciences tools and services (1.1%)
Clinigen Group PLC (United Kingdom)	259,609	$2,757,906
		2,757,906
Machinery (0.5%)
Komatsu, Ltd. (Japan)	52,900	1,210,890
		1,210,890
Media (0.9%)
Media Nusantara Citra Tbk PT (Indonesia)	25,989,500	2,261,151
		2,261,151
Metals and mining (1.6%)
Freeport-McMoRan, Inc. (Indonesia)	420,600	4,025,142
		4,025,142
Oil, gas, and consumable fuels (3.1%)
Cairn Energy PLC (United Kingdom) †	1,262,058	2,977,833
Cheniere Energy, Inc. †	27,500	1,734,150
Reliance Industries, Ltd. (India)	163,683	3,077,048
		7,789,031
Personal products (4.5%)
Shiseido Co., Ltd. (Japan)	58,700	4,684,599
TCI Co., Ltd. (Taiwan)	90,670	913,290
Unilever NV (Netherlands)	96,882	5,823,651
		11,421,540
Pharmaceuticals (6.1%)
AstraZeneca PLC (United Kingdom)	77,725	6,939,101
Merck & Co., Inc.	46,250	3,893,325
Novartis AG (Switzerland)	53,754	4,660,960
		15,493,386
Professional services (0.8%)
Outsourcing, Inc. (Japan)	212,600	2,021,298
		2,021,298
Real estate management and development (2.3%)
Logan Property Holdings Co., Ltd. (China)	1,680,000	2,392,130
Open House Co., Ltd. (Japan)	138,200	3,289,959
		5,682,089
Semiconductors and semiconductor equipment (7.4%)
ASML Holding NV (Netherlands)	20,525	5,083,862
NEC Electronics Corp. (Japan) †	574,800	3,731,881
NXP Semiconductors NV	29,850	3,257,232
SCREEN Holdings Co., Ltd. (Japan)	56,700	3,340,384
Sino-American Silicon Products, Inc. (Taiwan)	1,260,000	3,338,394
		18,751,753
Software (4.9%)
Constellation Software, Inc. (Canada)	5,450	5,443,007
Dassault Systemes SA (France)	30,497	4,346,158
Talend SA ADR †	73,850	2,509,423
		12,298,588
Textiles, apparel, and luxury goods (5.1%)
adidas AG (Germany)	15,733	4,898,380
Aritzia, Inc. (Canada) †	187,900	2,381,282

International Growth Fund 23 

COMMON STOCKS (97.0%)*cont.	Shares	Value
Textiles, apparel, and luxury goodscont.
Bosideng International Holdings, Ltd. (China)	3,348,000	$1,426,735
Kering SA (France)	8,402	4,281,712
		12,988,109
Trading companies and distributors (2.1%)
Ashtead Group PLC (United Kingdom)	187,324	5,214,538
		5,214,538
Wireless telecommunication services (1.5%)
Safaricom PLC (Kenya)	4,865,800	1,288,488
SoftBank Group Corp. (Japan)	63,400	2,486,160
		3,774,648
Total common stocks (cost $234,838,380)		$244,949,099

	Expiration	Strike
WARRANTS (0.9%)*†	date	price	Warrants	Value
Jarir Marketing Co. 144A (Saudi Arabia)	1/20/22	$0.00	54,840	$2,309,636
Total warrants (cost $2,250,940)				$2,309,636

	Principal
U.S. TREASURY OBLIGATIONS (0.1%)*	amount	Value
U.S. Treasury Notes
2.00%, 11/30/22 i	$180,000	$183,470
1.125%, 4/30/20 i	130,000	130,057
Total U.S. treasury obligations (cost $313,527)		$313,527

	Principal amount/
SHORT-TERM INVESTMENTS (3.3%)*		shares	Value
Putnam Cash Collateral Pool, LLC 2.15% d	Shares	4,970,000	$4,970,000
Putnam Short Term Investment Fund 2.05% L	Shares	3,296,499	3,296,499
U.S. Treasury Bills 1.889%, 3/12/20 ∆		$172,000	170,604
Total short-term investments (cost $8,437,065)			$8,437,103
TOTAL INVESTMENTS
Total investments (cost $245,839,912)			$256,009,365

Key to holding’s abbreviations

ADR	American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
GDR	Global Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank

Notes to the fund’s portfolio

Unless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, which ran from October 1, 2018 through September 30, 2019 (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 820Fair Value Measurements and Disclosures.

^*Percentages indicated are based on net assets of $252,537,291.

^†This security is non-income-producing.

^∆∆This security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $3,209, or less than 0.1% of net assets.

24 International Growth Fund 

^∆This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period. Collateral at period end totaled $50,582 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 8).

^dAffiliated 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.

^FThis security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities are classified as Level 3 for ASC 820 based on the securities’ valuation inputs (Note 1).

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

^LAffiliated 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.

^SSecurity 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 $211,937 to cover certain derivative contracts.

Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.

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.

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	16.0%	Hong Kong	1.8%
United Kingdom	14.7	Taiwan	1.7
United States	8.8	Norway	1.4
Netherlands	8.7	Poland	1.2
France	8.2	Denmark	1.1
Germany	6.0	Saudi Arabia	0.9
China	5.7	Italy	0.9
Canada	5.1	Isle of Man	0.7
India	3.3	Russia	0.7
Indonesia	2.9	Egypt	0.5
Switzerland	2.9	Kenya	0.5
Ireland	2.3	Other	0.1
Australia	2.1	Total	100.0%
Brazil	1.8

FORWARD CURRENCY CONTRACTS at 9/30/19 (aggregate face value $113,994,439)
						Unrealized
		Contract	Delivery		Aggregate	appreciation/
Counterparty	Currency	type*	date	Value	face value	(depreciation)
Bank of America N.A.
	Brazilian Real	Buy	10/2/19	$6,790,623	$6,810,210	$(19,587)
	Brazilian Real	Sell	10/2/19	6,790,623	6,957,145	166,522
	Brazilian Real	Sell	2/4/20	6,740,414	6,766,440	26,026
	Japanese Yen	Buy	11/20/19	3,185,970	3,202,053	(16,083)
Barclays Bank PLC
	Australian Dollar	Buy	10/16/19	1,588,151	1,635,046	(46,895)
	Australian Dollar	Sell	10/16/19	1,588,150	1,649,912	61,762

International Growth Fund 25 

FORWARD CURRENCY CONTRACTS at 9/30/19 (aggregate face value $113,994,439)cont.
						Unrealized
		Contract	Delivery		Aggregate	appreciation/
Counterparty	Currency	type*	date	Value	face value	(depreciation)
Barclays Bank PLCcont.
	British Pound	Sell	12/18/19	$3,465,392	$3,502,802	$37,410
	Euro	Sell	12/18/19	114,030	106,382	(7,648)
	Hong Kong Dollar	Buy	11/20/19	2,254,652	2,252,509	2,143
	Japanese Yen	Sell	11/20/19	1,071,467	1,078,630	7,163
	Polish Zloty	Sell	12/18/19	2,579,596	2,610,216	30,620
	Swiss Franc	Buy	12/18/19	8,488,853	8,601,140	(112,287)
Citibank, N.A.
	Canadian Dollar	Sell	10/16/19	3,927,536	3,972,846	45,310
	Chinese Yuan (Offshore)	Sell	11/20/19	970,244	965,210	(5,034)
	Danish Krone	Sell	12/18/19	1,908,489	1,926,206	17,717
	Euro	Buy	12/18/19	2,859,184	2,881,717	(22,533)
	Japanese Yen	Buy	11/20/19	1,735,957	1,745,392	(9,435)
Credit Suisse International
	Japanese Yen	Buy	11/20/19	2,206,054	2,217,134	(11,080)
Goldman Sachs International
	Australian Dollar	Buy	10/16/19	602,833	602,436	397
	Australian Dollar	Sell	10/16/19	602,833	605,054	2,221
	Euro	Buy	12/18/19	3,574,172	3,602,858	(28,686)
	Japanese Yen	Sell	11/20/19	2,032,058	2,142,835	110,777
	New Taiwan Dollar	Buy	11/20/19	5,905,252	5,865,265	39,987
	New Taiwan Dollar	Sell	11/20/19	5,905,252	5,831,567	(73,685)
HSBC Bank USA, National Association
	Canadian Dollar	Buy	10/16/19	1,456,301	1,454,977	1,324
	Canadian Dollar	Sell	10/16/19	1,456,301	1,458,455	2,154
	Chinese Yuan	Sell	11/20/19	642,558	644,189	1,631
JPMorgan Chase Bank N.A.
	British Pound	Sell	12/18/19	3,736,381	3,706,559	(29,822)
	Canadian Dollar	Sell	10/16/19	3,003,503	3,039,975	36,472
	Chinese Yuan (Offshore)	Sell	11/20/19	2,505,643	2,557,003	51,360
	Japanese Yen	Buy	11/20/19	3,018,952	3,033,762	(14,810)
	New Zealand Dollar	Buy	10/16/19	443,301	473,170	(29,869)
	Norwegian Krone	Sell	12/18/19	1,353,952	1,359,185	5,233
	Singapore Dollar	Buy	11/20/19	2,267,602	2,288,094	(20,492)
	Swedish Krona	Buy	12/18/19	1,163,718	1,173,682	(9,964)
	Swiss Franc	Buy	12/18/19	7,944,820	8,049,028	(104,208)
NatWest Markets PLC
	Australian Dollar	Buy	10/16/19	792,049	845,668	(53,619)
State Street Bank and Trust Co.
	Canadian Dollar	Sell	10/16/19	3,980,612	4,026,488	45,876
	Israeli Shekel	Buy	10/16/19	1,473,908	1,443,148	30,760
	Japanese Yen	Buy	11/20/19	940,684	910,051	30,633
Unrealized appreciation						753,498
Unrealized (depreciation)						(615,737)
Total						$137,761

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

26 International Growth Fund 

ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:

Level 1: Valuations based on quoted prices for identical securities in active markets.

Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.

The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:

			Valuation inputs
Investments in securities:	Level 1	Level 2		Level 3
Common stocks*:
Communication services	$17,007,979	$—­		$—­
Consumer discretionary	34,374,889	—­		3,203
Consumer staples	35,955,720	—­		—­
Energy	7,789,031	—­		—­
Financials	37,129,677	—­		—­
Health care	26,115,394	—­		—­
Industrials	32,385,746	—­		6
Information technology	38,079,583	—­		—­
Materials	10,425,782	—­		—­
Real estate	5,682,089	—­		—­
Total common stocks	244,945,890	—­		3,209
U.S. treasury obligations	—­	313,527		—­
Warrants	—­	2,309,636		—­
Short-term investments	3,296,499	5,140,604		—­
Totals by level	$248,242,389	$7,763,767		$3,209
			Valuation inputs
Other financial instruments:	Level 1	Level 2		Level 3
Forward currency contracts	$—­	$137,761		$—­
Totals by level	$—­	$137,761		$—­

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

At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund’s net assets and were not considered a significant portion of the fund’s portfolio.

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

International Growth Fund 27 

Statement of assets and liabilities9/30/19

ASSETS
Investment in securities, at value, including $4,816,280 of securities on loan (Notes 1 and 8):
Unaffiliated issuers (identified cost $237,573,413)	$247,742,866
Affiliated issuers (identified cost $8,266,499) (Notes 1 and 5)	8,266,499
Cash	77,352
Foreign currency (cost $275,953) (Note 1)	277,568
Dividends, interest and other receivables	534,628
Foreign tax reclaim	194,802
Receivable for shares of the fund sold	35,341
Receivable for investments sold	4,308,383
Unrealized appreciation on forward currency contracts (Note 1)	753,498
Prepaid assets	34,714
Total assets	262,225,651
LIABILITIES
Payable for investments purchased	2,676,622
Payable for shares of the fund repurchased	343,682
Payable for compensation of Manager (Note 2)	77,918
Payable for custodian fees (Note 2)	50,601
Payable for investor servicing fees (Note 2)	53,940
Payable for Trustee compensation and expenses (Note 2)	214,161
Payable for administrative services (Note 2)	1,021
Payable for distribution fees (Note 2)	142,448
Unrealized depreciation on forward currency contracts (Note 1)	615,737
Collateral on securities loaned, at value (Note 1)	4,970,000
Collateral on certain derivative contracts, at value (Notes 1 and 8)	313,527
Other accrued expenses	228,703
Total liabilities	9,688,360
Net assets	$252,537,291
REPRESENTED BY
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)	$251,173,943
Total distributable earnings (Note 1)	1,363,348
Total — Representing net assets applicable to capital shares outstanding	$252,537,291

(Continued on next page)

28 International Growth Fund 

Statement of assets and liabilitiescont.

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
Net asset value and redemption price per class A share
($208,568,750 divided by 9,810,551 shares)	$21.26
Offering price per class A share(100/94.25 of $21.26)*	$22.56
Net asset value and offering price per class B share($1,853,765 divided by 98,553 shares)**	$18.81
Net asset value and offering price per class C share($4,099,092 divided by 212,844 shares)**	$19.26
Net asset value and redemption price per class M share($4,186,306 divided by 213,224 shares)	$19.63
Offering price per class M share(100/96.50 of $19.63)*	$20.34
Net asset value, offering price and redemption price per class R share
($495,978 divided by 23,965 shares)	$20.70
Net asset value, offering price and redemption price per class R6 share
($10,537,396 divided by 486,994 shares)	$21.64
Net asset value, offering price and redemption price per class Y share
($22,796,004 divided by 1,056,046 shares)	$21.59

^*On single retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.

^**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

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

International Growth Fund 29 

Statement of operationsYear ended 9/30/19

INVESTMENT INCOME
Dividends (net of foreign tax of $390,152)	$4,434,574
Interest (including interest income of $135,623 from investments in affiliated issuers) (Note 5)	160,235
Securities lending (net of expenses) (Notes 1 and 5)	76,990
Total investment income	4,671,799
EXPENSES
Compensation of Manager (Note 2)	2,284,400
Investor servicing fees (Note 2)	611,572
Custodian fees (Note 2)	58,702
Trustee compensation and expenses (Note 2)	11,049
Distribution fees (Note 2)	645,372
Administrative services (Note 2)	7,798
Other	287,201
Fees waived and reimbursed by Manager (Note 2)	(336,728)
Total expenses	3,569,366
Expense reduction (Note 2)	(43,783)
Net expenses	3,525,583
Net investment income	1,146,216
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Securities from unaffiliated issuers (Notes 1 and 3)	(7,960,756)
Foreign currency transactions (Note 1)	(131,181)
Forward currency contracts (Note 1)	148,527
Total net realized loss	(7,943,410)
Change in net unrealized appreciation (depreciation) on:
Securities from unaffiliated issuers (net of foreign tax of $86,078)	(12,143,319)
Assets and liabilities in foreign currencies	(7,483)
Forward currency contracts	953,258
Total change in net unrealized depreciation	(11,197,544)
Net loss on investments	(19,140,954)
Net decrease in net assets resulting from operations	$(17,994,738)

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

30 International Growth Fund 

Statement of changes in net assets

INCREASE (DECREASE) IN NET ASSETS	Year ended 9/30/19	Year ended 9/30/18
Operations
Net investment income	$1,146,216	$277,364
Net realized gain (loss) on investments
and foreign currency transactions	(7,943,410)	27,048,017
Change in net unrealized depreciation of investments
and assets and liabilities in foreign currencies	(11,197,544)	(18,571,670)
Net increase (decrease) in net assets resulting
from operations	(17,994,738)	8,753,711
Increase in capital from settlement payments	9,908	—
Decrease from capital share transactions (Note 4)	(33,288,313)	(120,200)
Total increase (decrease) in net assets	(51,273,143)	8,633,511
NET ASSETS
Beginning of year	303,810,434	295,176,923
End of year	$252,537,291	$303,810,434

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

International Growth Fund 31 

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

Non-recurring

Net asset

Total return

Net assets,

of expenses

income (loss)

Portfolio

beginning

Net investment

gain (loss)

investment

investment

Total

reimburse-­

value, end

at net asset

end of period

to average

to average

turnover

Period ended­

of period­

income (loss)a

on investments­

operations­

income­

distributions

ments­

of period­

value (%)b

(in thousands)

net assets (%)c

net assets (%)

(%)

Class A­

September 30, 2019­

$22.54­

.09­

(1.37)

(1.28)

—­

—­

—­e,f

$21.26­

(5.68)

$208,569­

1.37­d

.43­d

77­

September 30, 2018­

21.88­

.02­

.64­

.66­

—­

—­

—­

22.54­

3.02­

247,156­

1.49­d

.09­d

96­

September 30, 2017­

18.54­

.12­

3.54­

3.66­

(.32)

(.32)

—­

21.88­

20.25­

255,755­

1.49­

.65­

121­

September 30, 2016­

17.93­

.12­

.49­

.61­

—­

—­

—­

18.54­

3.40­

242,646­

1.46­d

.70­d

108­

September 30, 2015­

19.05­

.09­

(1.21)

(1.12)

—­

—­

—­

17.93­

(5.88)

260,642­

1.48­

.49­

88­

Class B­

September 30, 2019­

$20.09­

(.07)

(1.21)

(1.28)

—­

—­

—­e,f

$18.81­

(6.37)

$1,854­

2.12­d

(.37)d

77­

September 30, 2018­

19.65­

(.14)

.58­

.44­

—­

—­

—­

20.09­

2.24­

3,017­

2.24­d

(.69)d

96­

September 30, 2017­

16.66­

(.02)

3.19­

3.17­

(.18)

(.18)

—­

19.65­

19.37­

3,984­

2.24­

(.12)

121­

September 30, 2016­

16.23­

(.01)

.44­

.43­

—­

—­

—­

16.66­

2.65­

4,169­

2.21­d

(.07)d

108­

September 30, 2015­

17.38­

(.05)

(1.10)

(1.15)

—­

—­

—­

16.23­

(6.62)

4,990­

2.23­

(.28)

88­

Class C­

September 30, 2019­

$20.57­

(.07)

(1.24)

(1.31)

—­

—­

—­e,f

$19.26­

(6.37)

$4,099­

2.12­d

(.35)d

77­

September 30, 2018­

20.12­

(.15)

.60­

.45­

—­

—­

—­

20.57­

2.24­

6,208­

2.24­d

(.73)d

96­

September 30, 2017­

17.06­

(.02)

3.27­

3.25­

(.19)

(.19)

—­

20.12­

19.38­

8,406­

2.24­

(.10)

121­

September 30, 2016­

16.62­

(.01)

.45­

.44­

—­

—­

—­

17.06­

2.65­

7,741­

2.21­d

(.05)d

108­

September 30, 2015­

17.80­

(.04)

(1.14)

(1.18)

—­

—­

—­

16.62­

(6.63)

8,591­

2.23­

(.25)

88­

Class M­

September 30, 2019­

$20.92­

(.02)

(1.27)

(1.29)

—­

—­

—­e,f

$19.63­

(6.17)

$4,186­

1.87­d

(.08)d

77­

September 30, 2018­

20.40­

(.09)

.61­

.52­

—­

—­

—­

20.92­

2.55­

5,318­

1.99­d

(.41)d

96­

September 30, 2017­

17.31­

.03­

3.30­

3.33­

(.24)

(.24)

—­

20.40­

19.62­

5,239­

1.99­

.16­

121­

September 30, 2016­

16.82­

.03­

.46­

.49­

—­

—­

—­

17.31­

2.91­

4,748­

1.96­d

.19­d

108­

September 30, 2015­

17.96­

—­e

(1.14)

(1.14)

—­

—­

—­

16.82­

(6.35)

5,270­

1.98­

(.01)

88­

Class R­

September 30, 2019­

$22.00­

.03­

(1.33)

(1.30)

—­

—­

—­e,f

$20.70­

(5.91)

$496­

1.62­d

.16­d

77­

September 30, 2018­

21.40­

(.03)

.63­

.60­

—­

—­

—­

22.00­

2.80­

977­

1.74­d

(.15)d

96­

September 30, 2017­

18.15­

.07­

3.46­

3.53­

(.28)

(.28)

—­

21.40­

19.93­

856­

1.74­

.40­

121­

September 30, 2016­

17.60­

.08­

.47­

.55­

—­

—­

—­

18.15­

3.13­

708­

1.71­d

.44­d

108­

September 30, 2015­

18.74­

.03­

(1.17)

(1.14)

—­

—­

—­

17.60­

(6.08)

658­

1.73­

.16­

88­

Class R6­

September 30, 2019­

$22.84­

.18­

(1.38)

(1.20)

—­

—­

—­e,f

$21.64­

(5.25)

$10,537­

.93­d

.86­d

77­

September 30, 2018†

24.19­

.04­

(1.39)

(1.35)

—­

—­

—­

22.84­

(5.58)*

11,684­

.37*d

.18*d

96­

Class Y­

September 30, 2019­

$22.83­

.14­

(1.38)

(1.24)

—­

—­

—­e,f

$21.59­

(5.43)

$22,796­

1.12­d

.66­d

77­

September 30, 2018­

22.10­

.10­

.63­

.73­

—­

—­

—­

22.83­

3.30­

29,450­

1.24­d

.45­d

96­

September 30, 2017­

18.73­

.18­

3.55­

3.73­

(.36)

(.36)

—­

22.10­

20.54­

20,937­

1.24­

.92­

121­

September 30, 2016­

18.07­

.17­

.49­

.66­

—­

—­

—­

18.73­

3.65­

19,874­

1.21­d

.96­d

108­

September 30, 2015­

19.15­

.14­

(1.22)

(1.08)

—­

—­

—­

18.07­

(5.64)

20,409­

1.23­

.75­

88­

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

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

32 International Growth Fund  International Growth Fund 33 

Financial highlightscont.

^*Not annualized.

^†For the period May 22, 2018 (commencement of operations) to September 30, 2018.

^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 brokerage/service arrangements, if any (Note 2). Also excludes acquired fund fees and expenses, if any.

^dReflects a voluntary waiver of certain fund expenses in effect during the period. As a result of such waiver, the expenses of each class reflect a reduction of the following amounts:

	Percentage of average net assets
September 30, 2019	0.13%
September 30, 2018	0.02
September 30, 2016	<0.01

^eAmount represents less than $0.01 per share.

^fReflects a non-recurring reimbursement pursuant to a settlement between the Securities and Exchange Commission (the SEC) and Canadian Imperial Holdings, Inc. and CIBC World Market Corp. which amounted to less than $0.01 per share outstanding on March 6, 2019.

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

34 International Growth Fund 

Notes to financial statements9/30/19

Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission, 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 “OTC”, if any, represent over-the-counter. Unless otherwise noted, the “reporting period” represents the period from October 1, 2018 through September 30, 2019.

Putnam International Growth Fund (the fund) is a diversified series of Putnam Investment Funds (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 long-term capital appreciation. The fund invests mainly in common stocks of companies of any size in established and emerging markets outside the United States. The fund invests mainly in growth stocks, which are issued by companies whose earnings are expected to grow faster than those of similar firms, and whose business growth and other characteristics may lead to an increase in stock price. Putnam Management may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. The fund may also use derivatives, such as futures, options, certain foreign currency transactions, warrants and swap contracts, for both hedging and non-hedging purposes.

The fund offers class A, class B, class C, class M, class R, class R6 and class Y shares. 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. Effective November 25, 2019, class M shares will no longer be available for purchase and will convert automatically to class A shares. Class A and class M shares are sold with a maximum front-end sales charge of 5.75% and 3.50%, respectively. Class A shares generally are not subject to a contingent deferred sales charge, and class M, class R, class R6 and class Y shares are not subject to a contingent deferred sales charge. Class B shares, which convert to class A shares after approximately eight years, are not subject to a front-end sales charge and are subject to a contingent deferred sales charge if those shares are redeemed within six years of purchase. Class C shares are subject to a one-year 1.00% contingent deferred sales charge and generally convert to class A shares after approximately ten years. Class R shares, which are not available to all investors, are sold at net asset value. The expenses for class A, class B, class C, class M and class R shares may differ based on the distribution fee of each class, which is identified in Note 2. Class R6 and class Y shares, which are sold at net asset value, are generally subject to the same expenses as class A, class B, class C, class M and class R shares, but do not bear a distribution fee, and in the case of class R6 shares, bear a lower investor servicing fee, which is identified in Note 2. Class R6 and class Y shares are not available to all investors.

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

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

Under the fund’s Amended and Restated Agreement and Declaration of Trust, any claims asserted against or on behalf of the Putnam Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.

Note 1: Significant accounting policies

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.

International Growth Fund 35 

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 valuationPortfolio 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.

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

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

Market quotations are not considered to be readily available for certain debt obligations (including short-term investments with remaining maturities of 60 days or less) and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by 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.

Many securities markets and exchanges outside the U.S. close prior to the scheduled close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value certain foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. The foreign equity securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. 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 in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.

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

36 International Growth Fund 

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

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

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

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

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

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

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

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

International Growth Fund 37 

At the close of the reporting period, the fund had a net liability position of $208,531 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $50,582 and may include amounts related to unsettled agreements.

Securities lendingThe fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. Income from securities lending, net of expenses, is included in investment income on the Statement of operations. Cash collateral is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. At the close of the reporting period, the fund received cash collateral of $4,970,000 and the value of securities loaned amounted to $4,816,280.

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

Lines of creditThe fund participates, along with other Putnam funds, in a $317.5 million unsecured committed line of credit and a $235.5 million unsecured uncommitted line of credit, both provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund’s borrowing at a rate equal to 1.25% plus the higher of (1) the Federal Funds rate and (2) the overnight LIBOR for the committed line of credit and the Federal Funds rate plus 1.30% 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. 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 taxesIt 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 740Income Taxes(ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

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

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 September 30, 2019, 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
$8,103,351	$—	$8,103,351

38 International Growth Fund 

Distributions to shareholdersDistributions to shareholders from net investment income are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences include temporary and/or permanent differences from foreign currency gains and losses, from realized gains and losses on passive foreign investment companies, from unrealized gains and losses on passive foreign investment companies and from net operating loss. 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 $925,400 to increase undistributed net investment income, $1,021,934 to decrease paid-in capital and $96,534 to decrease 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	$26,487,452
Unrealized depreciation	(16,923,886)
Net unrealized appreciation	9,563,566
Capital loss carryforward	(8,103,351)
Cost for federal income tax purposes	$246,583,560

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

Note 2: Management fee, administrative services and other transactions

The fund pays Putnam Management a management fee (base 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:

1.080%	of the first $5 billion,	0.880%	of the next $50 billion,
1.030%	of the next $5 billion,	0.860%	of the next $50 billion,
0.980%	of the next $10 billion,	0.850%	of the next $100 billion and
0.930%	of the next $10 billion,	0.845%	of any excess thereafter.

In addition, the monthly management fee consists of the monthly base fee plus or minus a performance adjustment for the month. The performance adjustment is determined based on performance over the thirty-six month period then ended. Each month, the performance adjustment is calculated by multiplying the performance adjustment rate and the fund’s average net assets over the performance period and dividing the result by twelve. The resulting dollar amount is added to, or subtracted from the base fee for that month. The performance adjustment rate is equal to 0.03 multiplied by the difference between the fund’s annualized performance (measured by the fund’s class A shares) and the annualized performance of the MSCI EAFE Growth Index (Net Dividends) each measured over the performance period. The maximum annualized performance adjustment rate is +/– 0.21%. The monthly base fee is determined based on the fund’s average net assets for the month, while the performance adjustment is determined based on the fund’s average net assets over the thirty-six month performance period. This means it is possible that, if the fund underperforms significantly over the performance period, and the fund’s assets have declined significantly over that period, the negative performance adjustment may exceed the base fee. In this event, Putnam Management would make a payment to the fund.

Because the performance adjustment is based on the fund’s performance relative to its applicable benchmark index, and not its absolute performance, the performance adjustment could increase Putnam Management’s fee even if the fund’s shares lose value during the performance period provided that the fund outperformed

International Growth Fund 39 

its benchmark index, and could decrease Putnam Management’s fee even if the fund’s shares increase in value during the performance period provided that the fund underperformed its benchmark index.

For the reporting period, the management fee represented an effective rate (excluding the impact of any expense waiver in effect) of 0.869% of the fund’s average net assets, which included an effective base fee of 0.920% and a decrease of 0.051% ($135,293) based on performance.

Putnam Management has contractually agreed to waive fees (and, to the extent necessary, bear other expenses) of the fund through January 30, 2021, to the extent that total expenses of the fund (before any applicable performance-based adjustment to the fund’s base management fee and excluding brokerage, interest, taxes, investment-related expenses, payments under distribution plans, extraordinary expenses, payments under the fund’s investor servicing contract and acquired fund fees and expenses, but including payments under the fund’s investment management contract) would exceed an annual rate of 0.93% of the fund’s average net assets. During the reporting period, the fund’s expenses were reduced by $336,728 as a result of this limit.

Putnam Management has also contractually agreed, through January 30, 2021, 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.

Putnam Investments Limited (PIL), an affiliate of Putnam Management, 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 0.35% of the average net assets of the portion of the fund managed by PIL.

The Putnam Advisory Company, LLC (PAC), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund, as designated from time to time by Putnam Management or PIL. PAC did not manage any portion of the assets of the fund during the reporting period. If Putnam Management or PIL were to engage the services of PAC, Putnam Management or PIL, as applicable, would pay a quarterly sub-advisory fee to PAC for its services at the annual rate of 0.35% of the average net assets of the portion of the fund’s assets for which PAC is engaged as sub-adviser.

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 M, 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.

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	$515,099	Class R	1,903
Class B	5,268	Class R6	5,422
Class C	11,879	Class Y	61,118
Class M	10,883	Total	$611,572

40 International Growth Fund 

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. The fund also reduced expenses through brokerage/service arrangements. For the reporting period, the fund’s expenses were reduced by $4,033 under the expense offset arrangements and by $39,750 under the brokerage/service arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $186, 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 on or after July 1, 1995. 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 Putnam Investments, LLC, 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%	$536,223
Class B	1.00%	1.00%	21,893
Class C	1.00%	1.00%	49,362
Class M	1.00%	0.75%	33,931
Class R	1.00%	0.50%	3,963
Total			$645,372

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $11,188 and $439 from the sale of class A and class M shares, respectively, and received $617 and $258 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 $94 on class A redemptions.

Note 3: Purchases and sales of securities

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

	Cost of purchases	Proceeds from sales
Investments in securities (Long-term)	$197,912,259	$221,471,926
U.S. government securities (Long-term)	—	—
Total	$197,912,259	$221,471,926

International Growth Fund 41 

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 9/30/19		YEAR ENDED 9/30/18
Class A	Shares	Amount	Shares	Amount
Shares sold	219,514	$4,518,154	756,431	$17,502,159
Shares issued in connection with
reinvestment of distributions	—	—	—	—
	219,514	4,518,154	756,431	17,502,159
Shares repurchased	(1,375,353)	(28,311,368)	(1,481,699)	(34,003,822)
Net decrease	(1,155,839)	$(23,793,214)	(725,268)	$(16,501,663)
	YEAR ENDED 9/30/19		YEAR ENDED 9/30/18
Class B	Shares	Amount	Shares	Amount
Shares sold	270	$5,000	11,605	$241,435
Shares issued in connection with
reinvestment of distributions	—	—	—	—
	270	5,000	11,605	241,435
Shares repurchased	(51,889)	(948,908)	(64,230)	(1,315,788)
Net decrease	(51,619)	$(943,908)	(52,625)	$(1,074,353)
	YEAR ENDED 9/30/19		YEAR ENDED 9/30/18
Class C	Shares	Amount	Shares	Amount
Shares sold	26,596	$493,123	129,548	$2,740,056
Shares issued in connection with
reinvestment of distributions	—	—	—	—
	26,596	493,123	129,548	2,740,056
Shares repurchased	(115,566)	(2,177,693)	(245,600)	(5,207,917)
Net decrease	(88,970)	$(1,684,570)	(116,052)	$(2,467,861)
	YEAR ENDED 9/30/19		YEAR ENDED 9/30/18
Class M	Shares	Amount	Shares	Amount
Shares sold	3,410	$65,261	16,618	$356,407
Shares issued in connection with
reinvestment of distributions	—	—	—	—
	3,410	65,261	16,618	356,407
Shares repurchased	(44,446)	(853,213)	(19,144)	(408,736)
Net decrease	(41,036)	$(787,952)	(2,526)	$(52,329)

42 International Growth Fund 

	YEAR ENDED 9/30/19		YEAR ENDED 9/30/18
Class R	Shares	Amount	Shares	Amount
Shares sold	7,779	$155,250	14,208	$319,111
Shares issued in connection with
reinvestment of distributions	—	—	—	—
	7,779	155,250	14,208	319,111
Shares repurchased	(28,253)	(578,078)	(9,760)	(218,821)
Net increase (decrease)	(20,474)	$(422,828)	4,448	$100,290
			FOR THE PERIOD 5/22/18
			(COMMENCEMENT OF OPERATIONS)
	YEAR ENDED 9/30/19		TO 9/30/18
Class R6	Shares	Amount	Shares	Amount
Shares sold	73,964	$1,629,602	535,940	$13,024,069
Shares issued in connection with
reinvestment of distributions	—	—	—	—
	73,964	1,629,602	535,940	13,024,069
Shares repurchased	(98,570)	(2,059,388)	(24,340)	(563,923)
Net increase (decrease)	(24,606)	$(429,786)	511,600	$12,460,146
	YEAR ENDED 9/30/19		YEAR ENDED 9/30/18
Class Y	Shares	Amount	Shares	Amount
Shares sold	347,552	$7,074,250	1,131,164	$26,284,570
Shares issued in connection with
reinvestment of distributions	—	—	—	—
	347,552	7,074,250	1,131,164	26,284,570
Shares repurchased	(581,602)	(12,300,305)	(788,422)	(18,869,000)
Net increase (decrease)	(234,050)	$(5,226,055)	342,742	$7,415,570

At the close of the reporting period, a shareholder of record owned 5.2% of the outstanding shares of the fund.

International Growth Fund 43 

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 9/30/18	cost	proceeds	income	of 9/30/19
Short-term investments
Putnam Cash Collateral
Pool, LLC*	$5,983,716	$51,040,347	$52,054,063	$135,512	$4,970,000
Putnam Short Term
Investment Fund**	11,586,132	94,114,876	102,404,509	135,623	3,296,499
Total Short-term
investments	$17,569,848	$145,155,223	$154,458,572	$271,135	$8,266,499

^*No management fees are charged to Putnam Cash Collateral Pool, LLC (Note 1). Investment income shown is included in securities lending income on the Statement of operations. There were no realized or unrealized gains or losses during the period.

^**Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management.There were no realized or unrealized gains or losses during the period.

Note 6: Market, credit and other risks

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

Note 7: Summary of derivative activity

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

Forward currency contracts (contract amount)	$117,700,000
Warrants (number of warrants)	38,000

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
Foreign exchange
contracts	Receivables	$753,498	Payables	$615,737
Equity contracts	Investments	2,309,636	Payables	—
Total		$3,063,134		$615,737

44 International Growth Fund 

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	Forward currency
hedging instruments under ASC 815	contracts	Total
Foreign exchange contracts	$148,527	$148,527
Total	$148,527	$148,527

Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss)
on investments
Derivatives not accounted for as hedging		Forward currency
instruments under ASC 815	Warrants	contracts	Total
Foreign exchange contracts	$—	$953,258	$953,258
Equity contracts	58,696	—	$58,696
Total	$58,696	$953,258	$1,011,954

International Growth Fund 45 

Note 8: Offsetting of financial and derivative assets and liabilities

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

	Bank of America N.A.	Barclays Bank PLC	Citibank, N.A.	Credit Suisse International	Goldman Sachs International	HSBC Bank USA, National Association	JPMorgan Chase Bank N.A.	NatWest Markets PLC	State Street Bank and Trust Co.	Total
Assets:
Forward currency contracts#	$192,548	$139,098	$63,027	$—	$153,382	$5,109	$93,065	$—	$107,269	$753,498
Total Assets	$192,548	$139,098	$63,027	$—	$153,382	$5,109	$93,065	$—	$107,269	$753,498
Liabilities:
Forward currency contracts#	35,670	166,830	37,002	11,080	102,371	—	209,165	53,619	—	615,737
Total Liabilities	$35,670	$166,830	$37,002	$11,080	$102,371	$—	$209,165	$53,619	$—	$615,737
Total Financial and Derivative
Net Assets	$156,878	$(27,732)	$26,025	$(11,080)	$51,011	$5,109	$(116,100)	$(53,619)	$107,269	$137,761
Total collateral received (pledged)†##	$156,878	$—	$—	$—	$—	$—	$(50,582)	$—	$107,269
Net amount	$—	$(27,732)	$26,025	$(11,080)	$51,011	$5,109	$(65,518)	$(53,619)	$—
Controlled collateral received (including
TBA commitments)**	$183,470	$—	$—	$—	$—	$—	$—	$—	$130,057	$313,527
Uncontrolled collateral received	$—	$—	$—	$—	$—	$—	$—	$—	$—	$—
Collateral (pledged) (including
TBA commitments)**	$—	$—	$—	$—	$—	$—	$(50,582)	$—	$—	$(50,582)

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

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

^#Covered by master netting agreement (Note 1).

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

46 International Growth Fund  International Growth Fund 47 

Federal tax information (Unaudited)

For the reporting period, total interest and dividend income from foreign countries were $4,598,742, or $0.39 per share (for all classes of shares). Taxes paid to foreign countries were $390,152, or $0.03 per share (for all classes of shares).

The Form 1099 that will be mailed to you in January 2020 will show the tax status of all distributions paid to your account in calendar 2019.

48 International Growth Fund 

International Growth Fund 49 

^*Mr. Reynolds is an “interested person” (as defined in the Investment Company Act of 1940) of the fund and Putnam Investments. He is President and Chief Executive Officer of Putnam Investments, as well as the President of your fund and each of the other Putnam funds.

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

As of September 30, 2019, there were 91 Putnam funds. All Trustees serve as Trustees of all Putnam funds.

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

50 International Growth Fund 

Officers

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

Robert T. Burns(Born 1961)	Richard T. Kircher(Born 1962)
Vice President and Chief Legal Officer	Vice President and BSA Compliance Officer
Since 2011	Since 2019
General Counsel, Putnam Investments,	Assistant Director, Operational Compliance, Putnam
Putnam Management, and Putnam Retail Management	Investments and Putnam Retail Management
James F. Clark(Born 1974)	Susan G. Malloy(Born 1957)
Vice President and Chief Compliance Officer	Vice President and Assistant Treasurer
Since 2016	Since 2007
Chief Compliance Officer and Chief Risk Officer,	Head of Accounting and Middle Office Services,
Putnam Investments and Chief Compliance Officer,	Putnam Investments and Putnam Management
Putnam Management
	Denere P. Poulack(Born 1968)
Nancy E. Florek(Born 1957)	Assistant Vice President, Assistant Clerk,
Vice President, Director of Proxy Voting and Corporate	and Assistant Treasurer
Governance, Assistant Clerk, and Assistant Treasurer	Since 2004
Since 2000
	Janet C. Smith(Born 1965)
Michael J. Higgins(Born 1976)	Vice President, Principal Financial Officer, Principal
Vice President, Treasurer, and Clerk	Accounting Officer, and Assistant Treasurer
Since 2010	Since 2007
	Head of Fund Administration Services,
Jonathan S. Horwitz(Born 1955)	Putnam Investments and Putnam Management
Executive Vice President, Principal Executive Officer,
and Compliance Liaison	Mark C. Trenchard(Born 1962)
Since 2004	Vice President
	Since 2002
	Director of Operational Compliance, Putnam
	Investments and Putnam Retail 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 is 100 Federal Street, Boston, MA 02110.

International Growth Fund 51 

Services for shareholders

Investor services

Systematic investment planTell us how much you wish to invest regularly — weekly, semimonthly, or monthly — and the amount you choose will be transferred automatically from your checking or savings account. There’s no additional fee for this service, and you can suspend it at any time. This plan may be a great way to save for college expenses or to plan for your retirement.

Please note that regular investing does not guarantee a profit or protect against loss in a declining market. Before arranging a systematic investment plan, consider your financial ability to continue making purchases in periods when prices are low.

Systematic exchangeYou can make regular transfers from one Putnam fund to another Putnam fund. There are no additional fees for this service, and you can cancel or change your options at any time.

Dividends PLUSYou can choose to have the dividend distributions from one of your Putnam funds automatically reinvested in another Putnam fund at no additional charge.

Free exchange privilegeYou can exchange money between Putnam funds free of charge, as long as they are the same class of shares. A signature guarantee is required if you are exchanging more than $500,000. The fund reserves the right to revise or terminate the exchange privilege.

Reinstatement privilegeIf you’ve sold Putnam shares or received a check for a dividend or capital gain, you may reinvest the proceeds with Putnam within 90 days of thetransaction and they will be reinvested at the fund’s current net asset value — with no sales charge. However, reinstatement of class B shares may have special tax consequences. Ask your financial or tax representative for details.

Check-writing serviceYou have ready access to many Putnam accounts. It’s as simple as writing a check, and there are no special fees or service charges. For more information about the check-writing service, call Putnam or visit our website.

Dollar cost averagingWhen you’re investing for long-term goals, it’s time, not timing, that counts. Investing on a systematic basis is a better strategy than trying to figure out when the markets will go up or down. This means investing the same amount of money regularly over a long period. This method of investing is called dollar cost averaging. When a fund’s share price declines, your investment dollars buy more shares at lower prices. When it increases, they buy fewer shares. Over time, you will pay a lower average price per share.

For more information

Visit the Individual Investors section at putnam.comA secure section of our website contains complete information on your account, including balances and transactions, updated daily. You may also conduct transactions, such as exchanges, additional investments, and address changes. Log on today to get your password.

Call us toll free at 1-800-225-1581Ask a helpful Putnam representative or your financial advisor for details about any of these or other services, or see your prospectus.

52 International Growth Fund 

Fund information

Founded over 80 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage funds across income, value, blend, growth, sustainable, asset allocation, absolute return, and global sector categories.

Investment Manager	Trustees	Michael J. Higgins
Putnam Investment	Kenneth R. Leibler,Chair	Vice President, Treasurer,
Management, LLC	Liaquat Ahamed	and Clerk
100 Federal Street	Ravi Akhoury
Boston, MA 02110	Barbara M. Baumann	Jonathan S. Horwitz
	Katinka Domotorffy	Executive Vice President,
Investment Sub-Advisors	Catharine Bond Hill	Principal Executive Officer,
Putnam Investments Limited	Paul L. Joskow	and Compliance Liaison
16 St James’s Street	Robert E. Patterson
London, England SW1A 1ER	George Putnam, III	Richard T. Kircher
	Robert L. Reynolds	Vice President and BSA
The Putnam Advisory Company, LLC	Manoj P. Singh	Compliance Officer
100 Federal Street
Boston, MA 02110	Officers	Susan G. Malloy
	Robert L. Reynolds	Vice President and
Marketing Services	President	Assistant Treasurer
Putnam Retail Management
100 Federal Street	Robert T. Burns	Denere P. Poulack
Boston, MA 02110	Vice President and	Assistant Vice President, Assistant
	Chief Legal Officer	Clerk, and Assistant Treasurer
Custodian
State Street Bank	James F. Clark	Janet C. Smith
and Trust Company	Vice President, Chief Compliance	Vice President,
	Officer, and Chief Risk Officer	Principal Financial Officer,
Legal Counsel		Principal Accounting Officer,
Ropes & Gray LLP	Nancy E. Florek	and Assistant Treasurer
	Vice President, Director of
Independent Registered Public	Proxy Voting and Corporate	Mark C. Trenchard
Accounting Firm	Governance, Assistant Clerk,	Vice President
PricewaterhouseCoopers LLP	and Assistant Treasurer

This report is for the information of shareholders of Putnam International Growth Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of Putnam’s Quarterly Performance Summary, and Putnam’s Quarterly Ranking Summary. For more recent performance, please visit putnam.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.

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.

Item 3. Audit Committee Financial Expert:

The Funds' Audit, Compliance and Distributions 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 of the members of the Audit, Compliance and Distributions Committee also possess a combination of knowledge and experience with respect to financial accounting matters, as well as other attributes, that qualify them for service on the Committee. In addition, the Trustees have determined that each of Mr. Patterson, Ms. Baumann 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 Distribution 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
September 30, 2019	$79,387	$ —	$15,969	$ —
September 30, 2018	$81,298	$ —	$19,964	$417

For the fiscal years ended September 30, 2019 and September 30, 2018, the fund's independent auditor billed aggregate non-audit fees in the amounts of $562,953 and $544,782 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.

All Other Fees represent fees billed for services relating to an analysis of fund profitability

Pre-Approval Policies of the Audit, Compliance and Distributions Committee. The Audit, Compliance and Distributions 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 Distributions 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
September 30, 2019	$ —	$546,984	$ —	$ —
September 30, 2018	$ —	$524,401	$ —	$ —

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 180 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. 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) 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 Investment Funds

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer

Date: November 26, 2019

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: November 26, 2019

By (Signature and Title):

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

Date: November 26, 2019