UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07237
(Exact name of registrant as specified in charter)
100 Federal Street, Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Stephen Tate, Vice President
100 Federal Street
Boston, Massachusetts 02110
Copy to:
Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
James E. Thomas, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199
(Name and address of agent for service)
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: August 31
Date of reporting period:
| ITEM 1. | REPORT TO STOCKHOLDERS. |
(a) The Report to Shareholders is filed herewith
 |
 |
|
| |
|
|
Semi-Annual
Shareholder Report | |
 | |
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based
on a hypothetical $10,000 investment)
|
Class
Name |
Costs
of a $10,000 investment
|
Costs
paid as a percentage of a $10,000
investment†
|
|
Class
A |
$
|
|
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings (excludes derivatives, except purchased options, if any) |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
 |
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Putnam International Small Cap Fund | PAGE 1 | 38966-STSA-0426 |
|
|
|
|
| |
|
|
Semi-Annual
Shareholder Report | |
|
| |
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based
on a hypothetical $10,000 investment)
|
Class
Name |
Costs
of a $10,000 investment
|
Costs
paid as a percentage of a $10,000
investment†
|
|
Class
C |
$
|
|
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings (excludes derivatives, except purchased options, if any) |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Putnam International Small Cap Fund | PAGE 1 | 38966-STSC-0426 |
|
|
|
|
| |
|
|
Semi-Annual
Shareholder Report | |
|
| |
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based
on a hypothetical $10,000 investment)
|
Class
Name |
Costs
of a $10,000 investment
|
Costs
paid as a percentage of a $10,000
investment†
|
|
Class
R |
$
|
|
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings (excludes derivatives, except purchased options, if any) |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Putnam International Small Cap Fund | PAGE 1 | 38966-STSR-0426 |
|
|
|
|
| |
|
|
Semi-Annual
Shareholder Report | |
|
| |
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based
on a hypothetical $10,000 investment)
|
Class
Name |
Costs
of a $10,000 investment
|
Costs
paid as a percentage of a $10,000
investment*,†
|
|
Class
R6 |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings (excludes derivatives, except purchased options, if any) |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Putnam International Small Cap Fund | PAGE 1 | 38966-STSR6-0426 |
|
|
|
|
| |
|
|
Semi-Annual
Shareholder Report | |
|
| |
WHAT
WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based
on a hypothetical $10,000 investment)
|
Class
Name |
Costs
of a $10,000 investment
|
Costs
paid as a percentage of a $10,000
investment*,†
|
|
Class
Y |
$
|
|
| * | Reflects fee waivers and/or expense reimbursements, without which expenses would have been higher. |
| † | Annualized. |
KEY
FUND STATISTICS (as
of February 28, 2026)
|
Total
Net Assets |
$
|
|
Total
Number of Portfolio Holdings (excludes derivatives, except purchased options, if any) |
|
|
Portfolio
Turnover Rate |
|
WHAT
DID THE FUND INVEST IN? (as
of February 28, 2026)
Portfolio Composition*
(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE
CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND? |
|
Additional
information is available on | |
|
•
prospectus • proxy voting information • financial information • holdings • tax information |
| Putnam International Small Cap Fund | PAGE 1 | 38966-STSY-0426 |
(b) Not applicable
| ITEM 2. | CODE OF ETHICS. |
Not applicable.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
| (b) | Not applicable. |
| ITEM 7. | FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Putnam
International
Small
Cap
Fund
(formerly,
Putnam
International
Capital
Opportunities
Fund)
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
February
28,
2026
If
you
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.
Table
of
Contents
franklintempleton.com
Financial
Statements
and
Other
Important
Information—Semiannual
1
Financial
Highlights
and
Schedule
of
Investments
2
Financial
Statements
13
Notes
to
Financial
Statements
17
Changes
In
and
Disagreements
with
Accountants
32
Results
of
Meeting(s)
of
Shareholders
32
Remuneration
Paid
to
Directors,
Officers
and
Others
32
Board
Approval
of
Management
and
Subadvisory
Agreements
32
Putnam
Investment
Funds
Financial
Highlights
Putnam
International
Small
Cap
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$48.14
$43.43
$37.01
$31.83
$49.35
$37.10
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.01)
0.69
0.54
0.43
0.47
0.37
Net
realized
and
unrealized
gains
(losses)
5.09
5.53
6.35
4.91
(12.34)
13.74
Total
from
investment
operations
........
5.08
6.22
6.89
5.34
(11.87)
14.11
Less
distributions
from:
Net
investment
income
..............
(2.79)
(1.51)
(0.16)
(0.16)
(0.51)
(0.35)
Net
realized
gains
.................
(3.04)
—
(0.31)
—
(5.14)
(1.51)
Total
distributions
...................
(5.83)
(1.51)
(0.47)
(0.16)
(5.65)
(1.86)
Net
asset
value,
end
of
period
..........
$47.39
$48.14
$43.43
$37.01
$31.83
$49.35
Total
return
c
.......................
11.30%
15.18%
18.78%
16.84%
(26.66)%
38.96%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.42%
1.53%
1.59%
1.58%
1.51%
e
1.48%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.42%
1.52%
1.59%
1.58%
1.51%
e
1.48%
Net
investment
income
(loss)
..........
(0.03)%
1.59%
1.39%
1.23%
1.19%
0.86%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$290,484
$279,401
$266,233
$251,260
$235,116
$347,964
Portfolio
turnover
rate
................
19%
30%
24%
25%
37%
36%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Includes
one-time
proxy
cost
of
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Investment
Funds
Financial
Highlights
Putnam
International
Small
Cap
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
3
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$46.74
$42.14
$36.04
$31.08
$48.24
$36.28
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.18)
0.35
0.21
0.15
0.16
0.02
Net
realized
and
unrealized
gains
(losses)
4.94
5.41
6.20
4.81
(12.07)
13.47
Total
from
investment
operations
........
4.76
5.76
6.41
4.96
(11.91)
13.49
Less
distributions
from:
Net
investment
income
..............
(2.38)
(1.16)
—
—
(0.11)
(0.02)
Net
realized
gains
.................
(3.04)
—
(0.31)
—
(5.14)
(1.51)
Total
distributions
...................
(5.42)
(1.16)
(0.31)
—
(5.25)
(1.53)
Net
asset
value,
end
of
period
..........
$46.08
$46.74
$42.14
$36.04
$31.08
$48.24
Total
return
c
.......................
10.89%
14.31%
17.89%
15.96%
(27.22)%
37.93%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
2.17%
2.28%
2.34%
2.33%
2.26%
e
2.23%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
2.17%
2.27%
2.34%
2.33%
0.26%
e
2.23%
Net
investment
income
(loss)
..........
(0.78)%
0.84%
0.55%
0.43%
0.40%
0.05%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$984
$981
$1,244
$1,647
$1,987
$3,626
Portfolio
turnover
rate
................
19%
30%
24%
25%
37%
36%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Includes
one-time
proxy
cost
of
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Investment
Funds
Financial
Highlights
Putnam
International
Small
Cap
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$47.04
$42.46
$36.17
$31.09
$48.33
$36.36
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.06)
0.56
0.42
0.33
0.36
0.26
Net
realized
and
unrealized
gains
(losses)
4.95
5.43
6.22
4.81
(12.07)
13.46
Total
from
investment
operations
........
4.89
5.99
6.64
5.14
(11.71)
13.72
Less
distributions
from:
Net
investment
income
..............
(2.70)
(1.41)
(0.04)
(0.06)
(0.39)
(0.24)
Net
realized
gains
.................
(3.04)
—
(0.31)
—
(5.14)
(1.51)
Total
distributions
...................
(5.74)
(1.41)
(0.35)
(0.06)
(5.53)
(1.75)
Net
asset
value,
end
of
period
..........
$46.19
$47.04
$42.46
$36.17
$31.09
$48.33
Total
return
c
.......................
11.15%
14.90%
18.49%
16.56%
(26.85)%
38.60%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.67%
1.78%
1.84%
1.83%
1.76%
e
1.73%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.67%
1.77%
1.84%
1.83%
1.76%
e
1.73%
Net
investment
income
(loss)
..........
(0.28)%
1.34%
1.12%
0.96%
0.93%
0.62%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$7,095
$6,135
$5,810
$5,681
$6,303
$11,426
Portfolio
turnover
rate
................
19%
30%
24%
25%
37%
36%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Includes
one-time
proxy
cost
of
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Investment
Funds
Financial
Highlights
Putnam
International
Small
Cap
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$48.67
$43.91
$37.41
$32.18
$49.85
$37.45
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.09
0.86
0.62
0.59
0.64
0.56
Net
realized
and
unrealized
gains
(losses)
5.15
5.58
6.51
4.96
(12.47)
13.86
Total
from
investment
operations
........
5.24
6.44
7.13
5.55
(11.83)
14.42
Less
distributions
from:
Net
investment
income
..............
(2.98)
(1.68)
(0.32)
(0.32)
(0.70)
(0.51)
Net
realized
gains
.................
(3.04)
—
(0.31)
—
(5.14)
(1.51)
Total
distributions
...................
(6.02)
(1.68)
(0.63)
(0.32)
(5.84)
(2.02)
Net
asset
value,
end
of
period
..........
$47.89
$48.67
$43.91
$37.41
$32.18
$49.85
Total
return
c
.......................
11.55%
15.61%
19.27%
17.32%
(26.37)%
39.53%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.07%
1.15%
1.18%
1.16%
1.10%
e
1.08%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.01%
1.13%
1.18%
1.16%
1.10%
e
1.08%
Net
investment
income
...............
0.39%
1.99%
1.61%
1.66%
1.59%
1.28%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$9,155
$7,739
$11,492
$14,310
$11,781
$16,396
Portfolio
turnover
rate
................
19%
30%
24%
25%
37%
36%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Includes
one-time
proxy
cost
of
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Investment
Funds
Financial
Highlights
Putnam
International
Small
Cap
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
2024
2023
2022
2021
Class
Y
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$48.44
$43.68
$37.23
$32.02
$49.64
$37.29
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.09
0.80
0.65
0.54
0.58
0.49
Net
realized
and
unrealized
gains
(losses)
5.11
5.58
6.38
4.93
(12.42)
13.81
Total
from
investment
operations
........
5.20
6.38
7.03
5.47
(11.84)
14.30
Less
distributions
from:
Net
investment
income
..............
(2.95)
(1.62)
(0.27)
(0.26)
(0.64)
(0.44)
Net
realized
gains
.................
(3.04)
—
(0.31)
—
(5.14)
(1.51)
Total
distributions
...................
(5.99)
(1.62)
(0.58)
(0.26)
(5.78)
(1.95)
Net
asset
value,
end
of
period
..........
$47.65
$48.44
$43.68
$37.23
$32.02
$49.64
Total
return
c
.......................
11.53%
15.52%
19.08%
17.15%
(26.49)%
39.32%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.18%
1.28%
1.34%
1.33%
1.26%
e
1.23%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.01%
1.27%
1.34%
1.33%
1.26%
e
1.23%
Net
investment
income
...............
0.38%
1.84%
1.68%
1.55%
1.45%
1.12%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$57,254
$49,322
$50,004
$40,732
$26,385
$34,969
Portfolio
turnover
rate
................
19%
30%
24%
25%
37%
36%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Includes
one-time
proxy
cost
of
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Investment
Funds
Schedule
of
Investments
(unaudited),
February
28,
2026
Putnam
International
Small
Cap
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
a
Industry
Shares
a
Value
a
Common
Stocks
92.7%
Belgium
1.6%
a
Liberty
Global
Ltd.,
A
..............
Diversified
Telecommunication
Services
470,300
$
5,991,622
Canada
5.1%
Cogeco
Communications,
Inc.
.......
Diversified
Telecommunication
Services
168,800
8,954,487
a
International
Petroleum
Corp.
.......
Oil,
Gas
&
Consumable
Fuels
427,209
9,793,338
18,747,825
Denmark
4.5%
Broedrene
A&O
Johansen
A/S,
B
....
Trading
Companies
&
Distributors
321,412
4,883,437
a
Demant
A/S
....................
Health
Care
Equipment
&
Supplies
115,559
3,604,055
Royal
Unibrew
A/S
...............
Beverages
81,913
8,070,055
16,557,547
France
11.9%
Edenred
SE
....................
Financial
Services
317,266
7,332,966
Eurazeo
SE
....................
Financial
Services
58,355
3,429,076
FDJ
United
.....................
Hotels,
Restaurants
&
Leisure
260,955
7,915,971
Kaufman
&
Broad
SA
.............
Household
Durables
140,782
5,395,008
Rubis
SCA
.....................
Gas
Utilities
112,574
4,842,007
SPIE
SA
.......................
Commercial
Services
&
Supplies
139,194
8,617,126
Thermador
Groupe
...............
Trading
Companies
&
Distributors
65,094
5,999,376
43,531,530
Germany
4.6%
CTS
Eventim
AG
&
Co.
KGaA
.......
Entertainment
92,769
7,512,444
Jenoptik
AG
....................
Electronic
Equipment,
Instruments
&
Components
282,671
9,337,208
16,849,652
Greece
1.9%
National
Bank
of
Greece
SA
........
Banks
429,749
6,990,588
Ireland
2.0%
AIB
Group
plc
...................
Banks
706,809
7,336,536
Italy
1.6%
Interpump
Group
SpA
.............
Machinery
129,445
5,951,965
Japan
28.3%
Avant
Group
Corp.
...............
IT
Services
477,300
4,352,281
Azbil
Corp.
.....................
Electronic
Equipment,
Instruments
&
Components
797,700
7,408,499
BML,
Inc.
......................
Health
Care
Providers
&
Services
238,200
6,640,609
Ebara
Corp.
....................
Machinery
158,000
5,549,498
Fukui
Computer
Holdings,
Inc.
......
Software
378,200
8,324,814
Hikari
Tsushin,
Inc.
...............
Industrial
Conglomerates
27,500
7,774,659
Japan
Material
Co.
Ltd.
............
Semiconductors
&
Semiconductor
Equipment
671,600
9,325,284
Katitas
Co.
Ltd.
..................
Real
Estate
Management
&
Development
307,900
7,041,105
Miroku
Jyoho
Service
Co.
Ltd.
.......
Software
131,100
1,512,804
Mitani
Corp.
....................
Trading
Companies
&
Distributors
58,200
1,064,437
MonotaRO
Co.
Ltd.
...............
Trading
Companies
&
Distributors
296,200
3,938,002
Nihon
Dengi
Co.
Ltd.
..............
Building
Products
74,200
5,787,073
NOF
Corp.
.....................
Chemicals
420,700
8,442,851
Optex
Group
Co.
Ltd.
.............
Electronic
Equipment,
Instruments
&
Components
195,100
3,991,203
PILLAR
Corp.
...................
Chemicals
43,800
2,374,123
Riken
Keiki
Co.
Ltd.
..............
Electronic
Equipment,
Instruments
&
Components
136,100
3,150,992
Shofu,
Inc.
.....................
Health
Care
Equipment
&
Supplies
121,500
1,461,005
Putnam
Investment
Funds
Schedule
of
Investments
(unaudited)
Putnam
International
Small
Cap
Fund
(continued)
franklintempleton.com
Semiannual
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The
accompanying
notes
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an
integral
part
of
these
financial
statements.
8
a
a
Industry
Shares
a
Value
a
Common
Stocks
(continued)
Japan
(continued)
Software
Service,
Inc.
.............
Health
Care
Technology
20,900
$
1,741,637
Takeuchi
Manufacturing
Co.
Ltd.
.....
Machinery
88,800
4,264,709
Tokyo
Steel
Manufacturing
Co.
Ltd.
...
Metals
&
Mining
544,900
5,648,390
WingArc1st,
Inc.
.................
Software
186,700
3,290,180
103,084,155
Mexico
1.9%
Bolsa
Mexicana
de
Valores
SAB
de
CV
Capital
Markets
3,079,600
6,802,229
Netherlands
4.6%
Aalberts
NV
....................
Machinery
203,206
8,444,883
b
Euronext
NV,
144A,
Reg
S
.........
Capital
Markets
16,188
2,674,531
a
Topicus.com,
Inc.
................
Software
83,000
5,703,911
16,823,325
Spain
1.9%
Fomento
de
Construcciones
y
Contratas
SA
..........................
Commercial
Services
&
Supplies
219,818
3,054,873
Logista
Integral
SA
...............
Air
Freight
&
Logistics
101,309
3,860,605
6,915,478
Switzerland
1.4%
Swissquote
Group
Holding
SA
.......
Capital
Markets
9,293
4,958,310
Taiwan
1.6%
Elite
Material
Co.
Ltd.
.............
Electronic
Equipment,
Instruments
&
Components
76,000
5,820,285
United
Kingdom
16.5%
Admiral
Group
plc
................
Insurance
150,208
6,000,732
Baltic
Classifieds
Group
plc
.........
Interactive
Media
&
Services
1,647,720
4,116,899
Bellway
plc
.....................
Household
Durables
223,871
8,369,583
Berkeley
Group
Holdings
plc
........
Household
Durables
164,464
9,563,471
Cranswick
plc
...................
Food
Products
79,575
5,823,091
DCC
plc
.......................
Industrial
Conglomerates
98,524
6,870,276
JET2
plc
.......................
Passenger
Airlines
114,330
1,931,896
OSB
Group
plc
..................
Financial
Services
677,917
5,569,877
Rightmove
plc
...................
Interactive
Media
&
Services
1,000,895
6,030,982
Savills
plc
......................
Real
Estate
Management
&
Development
423,294
5,784,385
60,061,192
United
States
3.3%
a,c
ICON
plc
.......................
Life
Sciences
Tools
&
Services
43,600
4,714,904
QIAGEN
NV
....................
Life
Sciences
Tools
&
Services
145,436
7,230,968
11,945,872
Total
Common
Stocks
(Cost
$258,393,237)
.....................................
338,368,111
a
Management
Investment
Companies
2.2%
United
States
2.2%
c
VanEck
Junior
Gold
Miners
ETF
.....
Capital
Markets
50,200
7,840,738
Total
Management
Investment
Companies
(Cost
$7,012,296)
.....................
7,840,738
Putnam
Investment
Funds
Schedule
of
Investments
(unaudited)
Putnam
International
Small
Cap
Fund
(continued)
franklintempleton.com
The
accompanying
notes
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an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
a
Industry
Shares
a
Value
a
Preferred
Stocks
2.1%
Germany
2.1%
d
Jungheinrich
AG,
2.51%
...........
Machinery
206,495
$
7,784,848
Total
Preferred
Stocks
(Cost
$5,123,592)
.......................................
7,784,848
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
U.S.
Government
and
Agency
Securities
0.3%
United
States
0.3%
e
U.S.
Treasury
Notes,
0.625%,
8/15/30
.
1,127,400
995,238
Total
U.S.
Government
and
Agency
Securities
(Cost
$995,238)
....................
995,238
Total
Long
Term
Investments
(Cost
$271,524,363)
...............................
354,988,935
Short
Term
Investments
5.7%
a
a
Industry
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
0.1%
United
States
0.1%
f
U.S.
Treasury
Bills,
3.53%,
7/16/26
...
400,000
394,655
Total
U.S.
Government
and
Agency
Securities
(Cost
$394,644)
....................
394,655
Shares
Management
Investment
Companies
1.7%
United
States
1.7%
g,h
Putnam
Short
Term
Investment
Fund,
Class
P,
3.852%
................
6,151,145
6,151,145
Total
Management
Investment
Companies
(Cost
$6,151,145)
.....................
6,151,145
i
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
3.9%
Money
Market
Funds
3.9%
g,h
Putnam
Cash
Collateral
Pool,
LLC,
3.897%
......................
14,402,710
14,402,710
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$14,402,710)
................................................................
14,402,710
a
a
a
a
a
Total
Short
Term
Investments
(Cost
$20,948,499
)
................................
20,948,510
a
a
a
Total
Investments
(Cost
$292,472,862)
103.0%
..................................
$375,937,445
Other
Assets,
less
Liabilities
(3.0)%
...........................................
(10,965,783)
Net
Assets
100.0%
...........................................................
$364,971,662
a
a
a
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2026,
the
value
of
this
security
was
$2,674,531,
representing
0.7%
of
net
assets.
c
A
portion
or
all
of
the
security
is
on
loan
at
February
28,
2026.
See
Note
1
(
d
).
d
Variable
rate
security.
The
rate
shown
represents
the
yield
at
period
end.
Putnam
Investment
Funds
Schedule
of
Investments
(unaudited)
Putnam
International
Small
Cap
Fund
(continued)
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Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
At
February
28,
2026,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Note
1(c).
e
This
security
was
pledged,
or
purchased
with
cash
that
was
pledged,
to
the
Fund
for
collateral
on
certain
derivative
contracts.
See
Note
1
(
c
).
f
The
rate
shown
represents
the
yield
at
period
end.
g
See
Note
3
(
g
)
regarding
investments
in
affiliated
management
investment
companies.
h
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
i
See
Note
1
(
d
)
regarding
securities
on
loan.
Forward
Exchange
Contracts
Currency
Counter-
party
a
Type
Quantity
Contract
Amount
*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
British
Pound
......
BOFA
Buy
2,491,600
3,352,154
3/17/26
$
5,743
$
—
British
Pound
......
BOFA
Sell
526,600
709,257
3/17/26
—
(435)
British
Pound
......
BZWS
Sell
2,535,200
3,405,167
3/17/26
—
(11,490)
British
Pound
......
CITI
Sell
2,164,900
2,907,789
3/17/26
—
(9,819)
British
Pound
......
GSCO
Buy
3,202,300
4,325,812
3/17/26
—
(10,114)
British
Pound
......
GSCO
Sell
2,073,900
2,796,930
3/17/26
5,863
(3,902)
British
Pound
......
HSBK
Sell
146,400
196,632
3/17/26
—
(669)
British
Pound
......
JPHQ
Buy
1,206,800
1,620,826
3/17/26
5,563
—
British
Pound
......
MSCO
Sell
5,909,800
7,903,573
3/17/26
2,854
(63,843)
British
Pound
......
SSBT
Buy
52,900
72,308
3/17/26
—
(1,015)
British
Pound
......
SSBT
Sell
6,472,900
8,663,813
3/17/26
762
(60,392)
British
Pound
......
TDOM
Sell
4,502,500
6,011,288
3/17/26
—
(56,674)
British
Pound
......
UBSW
Buy
1,162,200
1,551,630
3/17/26
14,652
—
British
Pound
......
WPAC
Sell
1,642,300
2,192,654
3/17/26
—
(20,652)
Danish
Krone
......
BOFA
Sell
6,858,400
1,085,475
3/17/26
—
(63)
Danish
Krone
......
BZWS
Sell
831,500
131,614
3/17/26
6
—
Danish
Krone
......
CITI
Buy
910,300
144,131
3/17/26
22
(71)
Danish
Krone
......
CITI
Sell
11,741,800
1,858,639
3/17/26
163
—
Danish
Krone
......
HSBK
Buy
13,232,800
2,105,044
3/17/26
1,147
(11,723)
Danish
Krone
......
HSBK
Sell
24,927,700
3,945,380
3/17/26
—
(141)
Danish
Krone
......
JPHQ
Sell
9,367,900
1,482,802
3/17/26
64
—
Danish
Krone
......
MSCO
Buy
976,200
155,852
3/17/26
—
(1,341)
Danish
Krone
......
MSCO
Sell
9,566,600
1,493,240
3/17/26
—
(20,948)
Danish
Krone
......
SSBT
Buy
2,063,700
327,848
3/17/26
—
(1,209)
Danish
Krone
......
SSBT
Sell
3,931,100
621,155
3/17/26
—
(1,054)
Danish
Krone
......
UBSW
Sell
5,689,900
899,142
3/17/26
—
(1,447)
Danish
Krone
......
WPAC
Sell
6,654,200
1,051,466
3/17/26
—
(1,752)
Euro
.............
BOFA
Buy
1,488,500
1,759,540
3/17/26
1,974
(1,385)
Euro
.............
BOFA
Sell
7,548,100
8,911,717
3/17/26
—
(13,799)
Euro
.............
BZWS
Sell
2,217,900
2,619,404
3/17/26
—
(3,230)
Euro
.............
CITI
Buy
1,272,900
1,506,697
3/17/26
—
(1,513)
Euro
.............
CITI
Sell
2,170,000
2,584,260
3/17/26
19,142
(875)
Euro
.............
GSCO
Buy
5,283,600
6,237,359
3/17/26
10,422
—
Euro
.............
GSCO
Sell
5,749,100
6,802,563
3/17/26
10,776
(6,439)
Euro
.............
HSBK
Buy
1,669,800
1,975,857
3/17/26
—
(1,344)
Euro
.............
HSBK
Sell
11,737,000
13,882,106
3/17/26
18,960
(15,682)
Euro
.............
JPHQ
Buy
1,994,700
2,360,892
3/17/26
—
(2,189)
Euro
.............
JPHQ
Sell
2,183,100
2,567,770
3/17/26
—
(13,714)
Euro
.............
MSCO
Buy
7,047,200
8,322,409
3/17/26
28,469
(17,668)
Euro
.............
SSBT
Sell
2,650,900
3,130,421
3/17/26
—
(4,227)
Euro
.............
TDOM
Sell
2,352,700
2,773,904
3/17/26
—
(8,129)
Euro
.............
UBSW
Buy
4,951,400
5,867,172
3/17/26
—
(12,215)
Euro
.............
UBSW
Sell
11,954,600
14,095,430
3/17/26
—
(40,707)
Euro
.............
WPAC
Buy
685,500
810,819
3/17/26
—
(
225)
Euro
.............
WPAC
Sell
3,222,100
3,799,214
3/17/26
—
(10,872)
Norwegian
Krone
...
BOFA
Buy
9,333,200
925,883
3/17/26
55,626
—
Putnam
Investment
Funds
Schedule
of
Investments
(unaudited)
Putnam
International
Small
Cap
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
Forward
Exchange
Contracts
(continued)
Currency
Counter-
party
a
Type
Quantity
Contract
Amount*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
(continued)
Norwegian
Krone
...
HSBK
Buy
703,700
69,808
3/17/26
$
4,195
$
—
Norwegian
Krone
...
JPHQ
Buy
7,612,200
755,056
3/17/26
45,468
—
Norwegian
Krone
...
MSCO
Buy
5,596,400
551,624
3/17/26
36,911
—
Norwegian
Krone
...
UBSW
Buy
9,849,000
970,927
3/17/26
64,825
—
Swedish
Krona
.....
BOFA
Buy
9,644,700
1,048,524
3/17/26
20,707
—
Swedish
Krona
.....
BZWS
Buy
11,716,300
1,273,690
3/17/26
25,203
—
Swedish
Krona
.....
HSBK
Buy
18,144,700
1,972,636
3/17/26
38,923
—
Swedish
Krona
.....
JPHQ
Buy
26,413,500
2,871,614
3/17/26
56,641
—
Swedish
Krona
.....
MSCO
Buy
14,381,000
1,556,303
3/17/26
38,004
—
Swedish
Krona
.....
SSBT
Buy
18,020,200
1,950,213
3/17/26
47,544
—
Swedish
Krona
.....
TDOM
Buy
11,586,600
1,253,859
3/17/26
30,655
—
Swedish
Krona
.....
TDOM
Sell
12,576,400
1,387,092
3/17/26
—
(7,153)
Swedish
Krona
.....
WPAC
Buy
6,376,200
690,039
3/17/26
16,840
—
Swiss
Franc
.......
BOFA
Buy
2,595,400
3,303,933
3/17/26
77,454
—
Swiss
Franc
.......
BZWS
Buy
814,500
1,036,946
3/17/26
24,216
—
Swiss
Franc
.......
CITI
Buy
806,000
1,026,042
3/17/26
24,046
—
Swiss
Franc
.......
GSCO
Buy
888,000
1,161,577
3/17/26
—
(4,656)
Swiss
Franc
.......
GSCO
Sell
942,700
1,200,265
3/17/26
—
(27,921)
Swiss
Franc
.......
HSBK
Buy
3,066,800
3,904,414
3/17/26
91,132
—
Swiss
Franc
.......
JPHQ
Buy
4,240,200
5,398,695
3/17/26
125,602
—
Swiss
Franc
.......
MSCO
Sell
1,707,300
2,166,723
3/17/26
—
(
57,613)
Swiss
Franc
.......
UBSW
Buy
3,502,300
4,444,769
3/17/26
118,163
—
Swiss
Franc
.......
WPAC
Buy
864,600
1,097,173
3/17/26
29,261
—
Australian
Dollar
....
BOFA
Buy
16,229,200
10,854,393
4/15/26
692,810
—
Australian
Dollar
....
CITI
Buy
3,935,000
2,629,166
4/15/26
170,618
—
Australian
Dollar
....
CITI
Sell
2,916,500
2,063,704
4/15/26
—
(11,409)
Australian
Dollar
....
GSCO
Sell
2,890,600
1,990,647
4/15/26
—
(66,038)
Australian
Dollar
....
HSBK
Sell
1,378,100
926,098
4/15/26
—
(54,431)
Australian
Dollar
....
JPHQ
Buy
3,531,000
2,359,261
4/15/26
153,073
—
Australian
Dollar
....
MSCO
Buy
7,526,700
5,057,950
4/15/26
297,356
—
Australian
Dollar
....
SSBT
Buy
4,148,800
2,788,147
4/15/26
163,757
—
Australian
Dollar
....
UBSW
Buy
1,784,800
1,199,371
4/15/26
70,528
—
Australian
Dollar
....
WPAC
Buy
306,200
204,578
4/15/26
13,285
—
Australian
Dollar
....
WPAC
Sell
1,871,900
1,303,061
4/15/26
—
(28,810)
Canadian
Dollar
....
BOFA
Buy
5,173,000
3,739,176
4/15/26
60,392
—
Canadian
Dollar
....
BZWS
Sell
1,744,900
1,261,276
4/15/26
—
(20,353)
Canadian
Dollar
....
GSCO
Buy
717,800
518,835
4/15/26
8,389
—
Canadian
Dollar
....
GSCO
Sell
2,349,200
1,722,641
4/15/26
—
(2,846)
Canadian
Dollar
....
HSBK
Buy
7,554,900
5,466,904
4/15/26
82,169
—
Canadian
Dollar
....
JPHQ
Buy
2,020,200
1,460,212
4/15/26
23,624
—
Canadian
Dollar
....
MSCO
Buy
7,230,600
5,232,176
4/15/26
78,698
—
Canadian
Dollar
....
MSCO
Sell
7,270,000
5,320,408
4/15/26
—
(19,405)
Canadian
Dollar
....
SSBT
Buy
3,879,600
2,839,656
4/15/26
15,945
(6,035)
Canadian
Dollar
....
TDOM
Buy
7,508,400
5,432,838
4/15/26
82,080
—
Canadian
Dollar
....
TDOM
Sell
3,304,100
2,451,630
4/15/26
24,769
—
Canadian
Dollar
....
UBSW
Buy
4,246,300
3,072,585
4/15/26
46,321
—
Canadian
Dollar
....
WPAC
Buy
1,539,600
1,127,545
4/15/26
3,291
—
Canadian
Dollar
....
WPAC
Sell
2,753,700
2,025,572
4/15/26
2,980
—
Israeli
New
Shekel
..
BOFA
Buy
1,674,100
531,818
4/15/26
2,876
—
Israeli
New
Shekel
..
GSCO
Buy
2,587,500
822,021
4/15/26
4,406
—
Israeli
New
Shekel
..
SSBT
Buy
9,697,900
3,091,733
4/15/26
5,698
—
Israeli
New
Shekel
..
UBSW
Buy
1,816,000
578,879
4/15/26
1,137
—
Mexican
Peso
......
BOFA
Sell
400,400
22,082
4/15/26
—
(1,075)
Mexican
Peso
......
BZWS
Sell
7,291,500
402,099
4/15/26
—
(19,596)
Mexican
Peso
......
CITI
Sell
15,827,300
872,807
4/15/26
—
(42,547)
Mexican
Peso
......
GSCO
Sell
23,259,100
1,282,776
4/15/26
—
(62,387)
Mexican
Peso
......
HSBK
Sell
26,219,000
1,453,301
4/15/26
—
(63,045)
Putnam
Investment
Funds
Schedule
of
Investments
(unaudited)
Putnam
International
Small
Cap
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
Forward
Exchange
Contracts
(continued)
Currency
Counter-
party
a
Type
Quantity
Contract
Amount*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
(continued)
Mexican
Peso
......
SSBT
Sell
21,543,900
1,194,134
4/15/26
$
—
$
(51,832)
Mexican
Peso
......
UBSW
Sell
18,963,600
1,051,255
4/15/26
—
(45,483)
New
Zealand
Dollar
.
JPHQ
Buy
1,623,400
933,940
4/15/26
41,544
—
South
African
Rand
..
BOFA
Sell
14,507,300
901,699
4/15/26
—
(6,340)
South
African
Rand
..
SSBT
Buy
6,566,400
398,329
4/15/26
12,674
—
Chinese
Yuan
......
HSBK
Buy
3,832,500
555,983
5/13/26
5,207
—
Hong
Kong
Dollar
...
BZWS
Buy
17,446,700
2,238,958
5/13/26
—
(2,264)
Hong
Kong
Dollar
...
CITI
Buy
6,736,300
864,415
5/13/26
—
(811)
Hong
Kong
Dollar
...
GSCO
Buy
7,335,400
941,436
5/13/26
—
(1,026)
Hong
Kong
Dollar
...
HSBK
Buy
4,284,200
549,764
5/13/26
—
(523)
Hong
Kong
Dollar
...
SSBT
Sell
1,978,900
253,984
5/13/26
286
—
Hong
Kong
Dollar
...
TDOM
Buy
5,038,100
646,590
5/13/26
—
(698)
Japanese
Yen
......
BOFA
Sell
852,110,700
5,491,496
5/13/26
11,365
(11,058)
Japanese
Yen
......
BZWS
Sell
806,460,300
5,181,029
5/13/26
—
(15,978)
Japanese
Yen
......
CITI
Buy
278,997,100
1,803,370
5/13/26
240
(5,692)
Japanese
Yen
......
CITI
Sell
267,238,500
1,716,548
5/13/26
—
(5,595)
Japanese
Yen
......
GSCO
Buy
40,780,500
262,851
5/13/26
—
(52)
Japanese
Yen
......
GSCO
Sell
325,121,500
2,088,846
5/13/26
—
(6,309)
Japanese
Yen
......
HSBK
Buy
106,416,700
689,611
5/13/26
—
(3,838)
Japanese
Yen
......
HSBK
Sell
681,920,500
4,386,301
5/13/26
2,663
(10,807)
Japanese
Yen
......
JPHQ
Sell
279,062,800
1,792,932
5/13/26
—
(5,411)
Japanese
Yen
......
MSCO
Buy
180,499,900
1,159,666
5/13/26
3,515
—
Japanese
Yen
......
SSBT
Buy
73,164,900
473,472
5/13/26
742
(2,722)
Japanese
Yen
......
SSBT
Sell
232,465,700
1,516,985
5/13/26
18,925
—
Japanese
Yen
......
TDOM
Buy
104,029,700
668,254
5/13/26
2,137
—
Japanese
Yen
......
TDOM
Sell
434,619,400
2,796,421
5/13/26
—
(4,361)
Japanese
Yen
......
UBSW
Buy
87,461,000
565,937
5/13/26
1,156
(3,476)
Japanese
Yen
......
UBSW
Sell
29,812,800
196,505
5/13/26
4,385
—
New
Taiwan
Dollar
..
BZWS
Sell
26,306,800
831,809
5/13/26
—
(8,307)
New
Taiwan
Dollar
..
HSBK
Buy
64,414,500
2,035,342
5/13/26
21,755
—
New
Taiwan
Dollar
..
SSBT
Sell
223,230,700
7,064,409
5/13/26
—
(64,535)
Singapore
Dollar
....
GSCO
Buy
997,000
789,243
5/13/26
3,012
—
Singapore
Dollar
....
JPHQ
Buy
4,786,600
3,789,430
5/13/26
14,188
—
South
Korean
Won
..
BOFA
Buy
5,599,469,500
3,840,145
5/13/26
56,251
—
South
Korean
Won
..
BZWS
Buy
3,674,503,500
2,520,374
5/13/26
36,533
—
South
Korean
Won
..
GSCO
Buy
13,672,116,400
9,376,666
5/13/26
137,090
—
South
Korean
Won
..
HSBK
Buy
10,220,946,900
7,028,569
5/13/26
83,688
—
South
Korean
Won
..
JPHQ
Sell
2,039,176,900
1,398,411
5/13/26
—
(20,552)
South
Korean
Won
..
MSCO
Buy
2,380,172,000
1,672,174
5/13/26
—
(15,929)
South
Korean
Won
..
MSCO
Sell
1,282,536,000
879,676
5/13/26
—
(12,778)
Total
Forward
Exchange
Contracts
...................................................
$3,559,556
$(1,234,664)
Net
unrealized
appreciation
(depreciation)
............................................
$2,324,892
*
In
U.S.
dollars
unless
otherwise
indicated.
a
May
be
comprised
of
multiple
contracts
with
the
same
counterparty,
currency
and
settlement
date.
See
Note
8
regarding
other
derivative
information.
See
A
bbreviations
on
page
31
.
Putnam
Investment
Funds
Financial
Statements
Statement
of
Assets
and
Liabilities
February
28,
2026
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
Putnam
International
Small
Cap
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$271,919,007
Cost
-
Non-controlled
affiliates
(Note
3
g
)
........................................................
20,553,855
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$
11,283,257
)
.................................
$355,383,590
Value
-
Non-controlled
affiliates
(Note
3
g
)
.......................................................
20,553,855
Cash
....................................................................................
1,100,000
Receivables:
Investment
securities
sold
...................................................................
1,388,239
Capital
shares
sold
........................................................................
55,914
Dividends
...............................................................................
844,746
European
Union
tax
reclaims
(Note
1
e
)
.........................................................
475,924
Unrealized
appreciation
on
OTC
forward
exchange
contracts
..........................................
3,559,556
Prepaid
expenses
..........................................................................
116,052
Total
assets
..........................................................................
383,477,876
Liabilities:
Payables:
Capital
shares
redeemed
...................................................................
168,433
Management
fees
.........................................................................
191,924
Administrative
fees
........................................................................
19
Distribution
fees
..........................................................................
58,213
Transfer
agent
fees
........................................................................
144,610
Trustees'
fees
and
expenses
.................................................................
120,864
Deposits
from
brokers
for:
OTC
derivative
contracts
..................................................................
1,100,000
Unrealized
depreciation
on
OTC
forward
exchange
contracts
..........................................
1,234,664
Payable
upon
return
of
securities
loaned
(Note
1
d
)
..................................................
14,402,710
Collateral
on
certain
derivative
contracts,
at
value
(Note
1
c
)
...........................................
995,238
Accrued
expenses
and
other
liabilities
...........................................................
89,539
Total
liabilities
.........................................................................
18,506,214
Net
assets,
at
value
.................................................................
$364,971,662
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$281,442,758
Total
distributable
earnings
(losses)
.............................................................
83,528,904
Net
assets,
at
value
.................................................................
$364,971,662
Putnam
Investment
Funds
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
February
28,
2026
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
Putnam
International
Small
Cap
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$290,483,681
Shares
outstanding
........................................................................
6,129,864
Net
asset
value
per
share
a
,b
..................................................................
$47.39
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94
.25
%
)
b
................................
$50.28
Class
C:
Net
assets,
at
value
.......................................................................
$984,023
Shares
outstanding
........................................................................
21,354
Net
asset
value
and
maximum
offering
price
per
share
a
,b
............................................
$46.08
Class
R:
Net
assets,
at
value
.......................................................................
$7,095,120
Shares
outstanding
........................................................................
153,599
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$46.19
Class
R6:
Net
assets,
at
value
.......................................................................
$9,155,167
Shares
outstanding
........................................................................
191,185
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$47.89
Class
Y:
Net
assets,
at
value
.......................................................................
$57,253,671
Shares
outstanding
........................................................................
1,201,622
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$47.65
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Putnam
Investment
Funds
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
February
28,
2026
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
Putnam
International
Small
Cap
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$156,448)
Unaffiliated
issuers
........................................................................
$2,196,187
Non-controlled
affiliates
(Note
3
g
)
.............................................................
175,167
Interest:
Unaffiliated
issuers
........................................................................
14,645
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
(50,106)
Non-controlled
affiliates
(Note
3
g
)
.............................................................
55,901
Other
income
(Note
1
e
)
......................................................................
13,203
Total
investment
income
...................................................................
2,404,997
Expenses:
Management
fees
(Note
3
a
)
...................................................................
1,564,744
Administrative
fees
(Note
3
b
)
..................................................................
2,204
Distribution
fees:
(Note
3c
)
Class
A
................................................................................
348,629
Class
C
................................................................................
4,813
Class
R
................................................................................
16,272
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
222,754
Class
C
................................................................................
771
Class
R
................................................................................
5,186
Class
R6
...............................................................................
2,064
Class
Y
................................................................................
40,808
Custodian
fees
............................................................................
9,912
Reports
to
shareholders
fees
..................................................................
40,018
Registration
and
filing
fees
....................................................................
33,658
Professional
fees
...........................................................................
52,327
Trustees'
fees
and
expenses
(Note
3
f
)
...........................................................
6,318
Other
....................................................................................
48,569
Total
expenses
.........................................................................
2,399,047
Expense
reductions
(Not
e
4)
...............................................................
(14,353)
Expenses
waived/paid
by
affiliates
(Note
3
g
and
3
h
)
..............................................
(42,872)
Net
expenses
.........................................................................
2,341,822
Net
investment
income
................................................................
63,175
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
14,209,565
Foreign
currency
transactions
................................................................
(4,107)
Forward
exchange
contracts
.................................................................
747,313
Net
realized
gain
(loss)
..................................................................
14,952,771
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
20,011,867
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(1,178)
Forward
exchange
contracts
.................................................................
2,773,403
Net
change
in
unrealized
appreciation
(depreciation)
............................................
22,784,092
Net
realized
and
unrealized
gain
(loss)
............................................................
37,736,863
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$37,800,038
Putnam
Investment
Funds
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
Putnam
International
Small
Cap
Fund
Six
Months
Ended
February
28,
2026
(unaudited)
Year
Ended
August
31,
2025
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$63,175
$5,190,891
Net
realized
gain
(loss)
.................................................
14,952,771
34,328,881
Net
change
in
unrealized
appreciation
(depreciation)
...........................
22,784,092
4,459,457
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
37,800,038
43,979,229
Distributions
to
shareholders:
Class
A
.............................................................
(32,794,682)
(8,936,063)
Class
C
.............................................................
(107,160)
(32,305)
Class
R
.............................................................
(764,633)
(188,470)
Class
R6
............................................................
(1,011,781)
(442,905)
Class
Y
.............................................................
(6,196,032)
(1,762,132)
Total
distributions
to
shareholders
..........................................
(40,874,288)
(11,361,875)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
13,571,972
(14,363,206)
Class
B
.............................................................
—
(196,328)
Class
C
.............................................................
10,337
(375,712)
Class
R
.............................................................
1,016,200
(282,792)
Class
R6
............................................................
1,498,518
(3,623,034)
Class
Y
.............................................................
8,371,975
(5,181,066)
Total
capital
share
transactions
............................................
24,469,002
(24,022,138)
Net
increase
(decrease)
in
net
assets
...................................
21,394,752
8,595,216
Net
assets:
Beginning
of
period
.....................................................
343,576,910
334,981,694
End
of
period
..........................................................
$364,971,662
$343,576,910
Putnam
Investment
Funds
17
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
Putnam
International
Small
Cap
Fund
1.
Organization
and
Significant
Accounting
Policies
Putnam
Investment
Funds (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of six
separate
funds.
The
Trust
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
Putnam
International
Capital
Opportunities
Fund
(Fund)
is
included
in
this
report.
The
Fund
offers five
classes
of
shares:
Class
A,
Class
C,
Class
R,
Class
R6
and
Class
Y. Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
Effective
September
5,
2024,
all
Class B
shares
were
converted
to
Class
A.
Effective
September
30,
2025,
Putnam
International
Capital
Opportunities
Fund
was
renamed
Putnam
International
Small
Cap
Fund.
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the Trust's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
and
exchange
traded
funds listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the OTC
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
Certain
derivative
financial
instruments
trade
in
the
OTC
market.
The
Fund's
pricing
services
use
various
techniques
including
industry
standard
option
pricing
models
and
proprietary
discounted
cash
flow
models
to
determine
the
fair
value
of
those
instruments.
The
Fund's
net
benefit
or
obligation
under
the
derivative
contract,
as
measured
by
the
fair
value
of
the
contract,
is
included
in
net
assets.
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
18
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
February
28,
2026,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
within
the
fair
value
hierarchy
(referred
to
as
“market
level
fair
value”).
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Derivative
Financial
Instruments
The
Fund invested
in
derivative
financial
instruments
in
order
to
manage
risk
or
gain
exposure
to
various
other
investments
or
markets.
Derivatives
are
financial
contracts
based
on
an
underlying
or
notional
amount,
require
no
initial
investment
or
an
initial
net
investment
that
is
smaller
than
would
normally
be
required
to
have
a
similar
response
to
changes
in
market
factors,
and
require
or
permit
net
settlement.
Derivatives
contain
various
risks
including
the
potential
inability
of
the
counterparty
to
fulfill
their
obligations
under
the
terms
of
the
contract,
the
potential
for
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
19
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
an
illiquid
secondary
market,
and/or
the
potential
for
market
movements
which
expose
the
Fund
to
gains
or
losses
in
excess
of
the
amounts
shown
in
the
Statement
of
Assets
and
Liabilities.
Realized
gain
and
loss
and
unrealized
appreciation
and
depreciation
on
these
contracts
for
the
period
are
included
in
the
Statement
of
Operations.
Derivative
counterparty
credit
risk
is
managed
through
a
formal
evaluation
of
the
creditworthiness
of
all
potential
counterparties.
The
Fund
attempts
to
reduce
its
exposure
to
counterparty
credit
risk
on
OTC
derivatives,
whenever
possible,
by
entering
into
International
Swaps
and
Derivatives
Association
(ISDA)
master
agreements
with
certain
counterparties.
These
agreements
contain
various
provisions,
including
but
not
limited
to
collateral
requirements,
events
of
default,
or
early
termination.
Termination
events
applicable
to
the
counterparty
include
certain
deteriorations
in
the
credit
quality
of
the
counterparty.
Termination
events
applicable
to
the
Fund
include
failure
of
the
Fund
to
maintain
certain
net
asset
levels
and/or
limit
the
decline
in
net
assets
over
various
periods
of
time.
In
the
event
of
default
or
early
termination,
the
ISDA
master
agreement
gives
the
non-defaulting
party
the
right
to
net
and
close-out
all
transactions
traded,
whether
or
not
arising
under
the
ISDA
agreement,
to
one
net
amount
payable
by
one
counterparty
to
the
other.
However,
absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
Early
termination
by
the
counterparty
may
result
in
an
immediate
payment
by
the
Fund
of
any
net
liability
owed
to
that
counterparty
under
the
ISDA
agreement.
Collateral
requirements
differ
by
type
of
derivative.
Collateral
terms
are
contract
specific
for
OTC
derivatives.
For
OTC
derivatives
traded
under
an
ISDA
master
agreement,
posting
of
collateral
is
required
by
either
the
Fund
or
the
applicable
counterparty
if
the
total
net
exposure
of
all
OTC
derivatives
with
the
applicable
counterparty
exceeds
the
minimum
transfer
amount,
which
typically
ranges
from
$100,000
to
$250,000,
and
can
vary
depending
on
the
counterparty
and
the
type
of
agreement.
Generally,
collateral
is
determined
at
the
close
of
Fund
business
each
day
and
any
additional
collateral
required
due
to
changes
in
derivative
values
may
be
delivered
by
the
Fund
or
the
counterparty
the
next
business
day,
or
within
a
few
business
days.
Collateral
pledged
and/or
received
by
the
Fund,
if
any,
is
held
in
segregated
accounts
with
the
Fund’s
custodian/counterparty
broker
and
can
be
in
the
form
of
cash
and/or
securities.
Unrestricted
cash
may
be
invested
according
to
the
Fund's
investment
objectives.
To
the
extent
that
the
amounts
due
to
the
Fund
from
its
counterparties
are
not
subject
to
collateralization
or
are
not
fully
collateralized,
the
Fund
bears
the
risk
of
loss
from
counterparty
non-performance.
The
Fund entered
into
OTC
forward
exchange
contracts
primarily
to
manage
and/or
gain exposure
to
certain
foreign
currencies.
A
forward
exchange
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
a
foreign
currency at
a
specific
exchange
rate
on
a
future
date.
Forward
exchange
contracts
outstanding
at
period
end,
if
any,
are
listed
in
the
Fund's
Schedule
of
Investments.
See
Note
8
regarding
other
derivative
information.
d.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
the
Putnam
Cash
Collateral
Pool,
LLC,
a
limited
liability
company,
an
affiliate
of
Putnam
Management. The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the Statement of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
Securities
on
loan
outstanding
at
period
end,
if
any,
are
listed
in
the
Fund‘s
Schedule
of
Investments.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Derivative
Financial
Instruments
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
20
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
e.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
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
a
dividend
receivable
in
the
Statement
of
Assets
and
Liabilities
and
dividend
income
in
the
Statement
of
Operations.
In
many
cases,
however,
the
Fund
may
not
receive
such
amounts
for
an
extended
period
of
time,
depending
on
the
country
of
investment.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union, the
Fund
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statement
of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statement
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Fund,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their
income
tax
returns.
The Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
February
28,
2026, the Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
The
Fund’s
federal
and
state
income
and
federal
excise
tax
returns
for
the
prior
three
fiscal
years
are
subject
to
examination
by
the
Internal
Revenue
Service
and
state
departments
of
revenue.
f.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
21
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
h.
Guarantees
and
Indemnifications
Under
the Trust's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the Trust against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the Trust,
on
behalf
of
the
Fund, enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Trust
that
have
not
yet
occurred.
Currently,
the Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
February
28,
2026,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Six
Months
Ended
February
28,
2026
Year
Ended
August
31,
2025
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
65,379
$3,085,851
192,233
$8,502,543
Shares
issued
in
reinvestment
of
distributions
..........
705,179
31,429,849
220,909
8,555,813
Shares
redeemed
...............................
(444,026)
(20,943,728)
(739,495)
(31,421,562)
Net
increase
(decrease)
..........................
326,532
$13,571,972
(326,353)
$(14,363,206)
Class
B
Shares:
*
Shares
redeemed
...............................
—
$—
(4,657)
$(196,328)
Net
increase
(decrease)
..........................
—
$—
(4,657)
$(196,328)
Class
C
Shares:
Shares
sold
...................................
1,331
$62,221
2,112
$88,642
Shares
issued
in
reinvestment
of
distributions
..........
2,346
101,803
817
30,878
Shares
redeemed
a
..............................
(3,311)
(153,687)
(11,467)
(495,232)
Net
increase
(decrease)
..........................
366
$10,337
(8,538)
$(375,712)
Class
R
Shares:
Shares
sold
...................................
37,182
$1,682,875
28,756
$1,270,139
Shares
issued
in
reinvestment
of
distributions
..........
17,590
764,633
4,973
188,470
Shares
redeemed
...............................
(31,609)
(1,431,308)
(40,119)
(1,741,401)
Net
increase
(decrease)
..........................
23,163
$1,016,200
(6,390)
$(282,792)
Class
R6
Shares:
Shares
sold
...................................
34,120
$1,639,544
71,972
$3,296,229
Shares
issued
in
reinvestment
of
distributions
..........
22,079
993,771
11,238
438,851
Shares
redeemed
...............................
(24,004)
(1,134,797)
(185,910)
(7,358,114)
Net
increase
(decrease)
..........................
32,195
$1,498,518
(102,700)
$(3,623,034)
1.
Organization
and
Significant
Accounting
Policies
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
22
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and trustees
of
the Fund are
also
officers
and/or directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
Putnam
Management
a
management
fee
(based
on
the
Fund’s
average
net
assets
and
computed
and
paid
monthly)
at
annual
rates
that
may
vary
based
on
the
average
of
the
aggregate
net
assets
of
all
open-end
mutual
funds
sponsored
by
Putnam
Management
(including
open-end
funds
managed
by
affiliates
of
Putnam
Management
that
have
been
deemed
to
be
sponsored
by
Putnam
Management
for
this
purpose)
(excluding
net
assets
of
such
funds
that
are
invested
in,
or
that
are
invested
in
by,
other
such
funds
to
the
extent
necessary
to
avoid
“double
counting”
of
those
assets).
Such
annual
rates
may
vary
as
follows:
For
the
period
ended
February
28,
2026,
the
annualized
gross
effective
investment
management
fee
rate
was 0.905%
of
the
Fund’s
average daily
net
assets.
Six
Months
Ended
February
28,
2026
Year
Ended
August
31,
2025
Shares
Amount
Shares
Amount
Class
Y
Shares:
Shares
sold
...................................
150,259
$7,095,209
172,779
$7,510,638
Shares
issued
in
reinvestment
of
distributions
..........
132,360
5,927,076
43,591
1,694,835
Shares
redeemed
...............................
(99,300)
(4,650,310)
(342,772)
(14,386,539)
Net
increase
(decrease)
..........................
183,319
$8,371,975
(126,402)
$(5,181,066)
*
Effective
September
5,
2024,
the
Fund
has
terminated
its
Class
B
shares.
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Putnam
Investment
Management,
LLC
(Putnam
Management)
Investment
manager
Franklin
Advisers,
Inc.
(Advisers)
Subadvisor
Franklin
Templeton
Investment
Management
Limited
(FTIML)
Subadvisor
Putnam
Advisory
Company,
LLC
(PAC)
Subadvisor
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Putnam
Investor
Services,
Inc.
(PSERV)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
1.080%
of
the
first
$5
billion,
1.030%
of
the
next
$5
billion,
0.980%
of
the
next
$10
billion,
0.930%
of
the
next
$10
billion,
0.880%
of
the
next
$50
billion,
0.860%
of
the
next
$50
billion,
0.850%
of
the
next
$100
billion
and
0.845%
of
any
excess
thereafter.
2.
Shares
of
Beneficial
Interest
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
23
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
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
S&P
Developed/Ex-U.S.
SmallCap
Index
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
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
0.905%
of
the
Fund’s
average
net
assets,
which
included
an
effective
base
fee
of
0.898%
and
a
increase
of
0.007%
($12,103)
based
on
performance.
Putnam
Management
retained
Advisers
as
subadvisor
for
the
Fund.
Pursuant
to
the
agreement,
Advisers
provides
certain
advisory
and
related
services
to
the
Fund.
Putnam
Management
pays
a
monthly
fee
to
Advisers
based
on
the
costs
of
Advisers
in
providing
these
services
to
the
Fund,
which
may
include
a
mark-up
not
to
exceed
15%
over
such
costs.
Under
a
subadvisory
agreement,
FTIML
provides
subadvisory
services
to
the
Fund.
The
subadvisory
fee
is
paid by Putnam
Management
based
on
the
average
net
assets
managed
by
FTIML,
and
is
not
an
additional
expense
of
the
Fund.
Under
a
subadvisory
agreement,
PAC
provides
subadvisory
services
to
the
Fund.
The
subadvisory
fee
is
paid by
Putnam
Management based
on
the
average
net
assets
managed
by
PAC,
and
is
not
an
additional
expense
of
the
Fund.
b.
Administrative
Fees
Under
an
agreement
with
Putnam
Management,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by Putnam
Management
based
on
the Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
The
Fund
reimburses
Putnam
Management
an
allocated
amount
for
the
compensation
and
related
expenses
of
certain
officers
of
the
Fund
and
their
staff
who
provide
administrative
services
to
the
Fund.
The
aggregate
amount
of
all
such
reimbursements
is
determined
annually
by
the
Trustees.
3.
Transactions
with
Affiliates
(continued)
a.
Management
Fees
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
24
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
c.
Distribution
Fees
The
Fund
has
adopted
distribution
plans
(the
Plans)
with
respect
to
the
following
share
classes
pursuant
to
Rule
12b–1
under
the
1940
Act.
The
purpose
of
the
Plans
is
to
compensate
Distributors
for
services
provided
and
expenses
incurred
in
distributing
shares
of
the
Fund.
The
Plans
provide
payments
by
the
Fund
to
Distributors
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.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
period:
e.
Transfer
Agent
Fees
PSERV,
an
affiliate
of
Putnam
Management,
provides
investor
servicing
agent
functions
to
the
Fund.
PSERV
received
fees
for
investor
servicing
for
Class
A,
Class
C,
Class
R
and
Class
Y shares
that
included
(1)
a
per
account
fee
for
each
direct
and
underlying
non-defined
contribution
account
(retail
account)
of
the
Fund;
(2)
a
specified
rate
of
the
Fund’s
assets
attributable
to
defined
contribution
plan
accounts;
and
(3)
a
specified
rate
based
on
the
average
net
assets
in
retail
accounts.
PSERV
has
agreed
that
the
aggregate
investor
servicing
fees
for
each
Fund’s
retail
and
defined
contribution
accounts
for
these
share
classes
will
not
exceed
an
annual
rate
of
0.25%
of
the
Fund’s
average
assets
attributable
to
such
accounts.
Class R6
shares
paid
a
monthly
fee
based
on
the
average
net
assets
of
Class R6
shares
at
an
annual
rate
of
0.05%.
f.
Trustee
Fees
The
Fund
has
adopted
a
Trustee
Fee
Deferral
Plan
(the
Deferral
Plan)
which
allows
the
Trustees to
defer
the
receipt
of
all
or
a
portion
of
Trustees'
fees
payable
from
July
1,
1995
through
December
31,
2023.
The
deferred
fees
remain
invested
in
certain
Putnam
funds
until
distribution
in
accordance
with
the
Deferral
Plan.
The
Fund
has
adopted
an
unfunded
noncontributory
defined
benefit
pension
plan
(the
Pension
Plan)
covering
all
Trustees
of
the
Fund
who
have
served
as
a
Trustee
for
at
least
five
years
and
were
first
elected
prior
to
2004.
Benefits
under
the
Pension
Plan
are
equal
to
50%
of
the
Trustee's
average
annual
attendance
and
retainer
fees
for
the
three
years
ended
December
31,
2005.
The
retirement
benefit
is
payable
during
a
Trustee's
lifetime,
beginning
the
year
following
retirement,
for
the
number
of
years
of
service
through
December
31,
2006.
Pension
expense
for
the
Fund
is
included
in
the
Trustees' fees
and
expenses
in
the
Statement
of
Operations.
Accrued
pension
liability
is
included
in
Payable
for
Trustees' fees
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.
Maximum
%
Approved
%
Class
A
...................................................................
0.35%
0.25%
Class
C
...................................................................
1.00%
1.00%
Class
R
...................................................................
1.00%
0.50%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$3,580
CDSC
retained
..............................................................................
$13
3.
Transactions
with
Affiliates
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
25
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
g.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees,
if
applicable, paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
February
28,
2026,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
h.
Waiver
and
Expense
Reimbursements
Putnam
Management has
contractually
agreed,
through
December
30,
2026,
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.
Putnam
Management
has
also
contractually
agreed
to
waive
fees
(and,
to
the
extent
necessary,
bear
other
expenses)
of
the
Fund
through
December
30,
2026, to
the
extent
that
total
expenses
of
the
Fund
(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,
inclusive
of
any
performance-based
adjustment)
would
exceed
an
annual
rate
of
1.05%
of
the
Fund’s
average
net
assets.
PSERV
has
agreed
to
waive
all
investor
servicing
fees
with
respect
to
Class
R6
and
Class
Y
shares,
through
December
30,
2026.
4.
Expense
Offset
Arrangement
The Fund has entered
into arrangements
with PSERV
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
transfer
agent
fees.
During
the
period
ended
February
28,
2026,
the
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Putnam
International
Small
Cap
Fund
Non-Controlled
Affiliates
Dividends
Putnam
Short
Term
Investment
Fund,
Class
P,
3.852%
......
$11,951,061
$46,730,677
$(52,530,593)
$—
$—
$6,151,145
6,151,145
$175,167
Non-Controlled
Affiliates
Income
from
securities
loaned
Putnam
Cash
Collateral
Pool,
LLC,
3.897%
.............
$5,330,000
$35,334,159
$(26,261,449)
$—
$—
$14,402,710
14,402,710
$55,901
Total
Affiliated
Securities
...
$17,281,061
$82,064,836
$(78,792,042)
$—
$—
$20,553,855
$231,068
3.
Transactions
with
Affiliates
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
26
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
5.
Income
Taxes
At
February
28,
2026,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation) for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
foreign
currency
transactions,
EU
reclaims
and
passive
foreign
investment
company
shares.
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
period
ended
February
28,
2026,
aggregated
$64,456,580 and
$74,065,208,
respectively.
At
February
28,
2026,
in
connection
with
securities
lending
transactions,
the
Fund
loaned
equity
investments
and
received
$14,402,710
of
cash
collateral.
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statement
of
Assets
and
Liabilities.
The
agreements
can
be
terminated
at
any
time.
7.
Concentration
of
Risk
Investing
in
foreign
securities
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities,
such
as
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
Political
and
financial
uncertainty
in
many
foreign
regions
may
increase
market
volatility
and
the
economic
risk
of
investing
in
foreign
securities.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
8.
Other
Derivative
Information
At
February
28,
2026,
investments
in
derivative
contracts
are
reflected
in
the Statement of
Assets
and
Liabilities
as
follows:
Cost
of
investments
..........................................................................
$297,885,031
Unrealized
appreciation
........................................................................
$96,336,055
Unrealized
depreciation
........................................................................
(15,958,749)
Net
unrealized
appreciation
(depreciation)
..........................................................
$80,377,306
Asset
Derivatives
Liability
Derivatives
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Putnam
International
Small
Cap
Fund
Foreign
exchange
contracts
..
Unrealized
appreciation
on
OTC
forward
exchange
contracts
$
3,559,556
Unrealized
depreciation
on
OTC
forward
exchange
contracts
$
1,234,664
Total
....................
$3,559,556
$1,234,664
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
27
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
For
the
period
ended
February
28,
2026,
the
effect
of
derivative
contracts
in
the Statement
of
Operations
was
as
follows:
For
the
period
ended
February
28,
2026,
the
average
month
end contract
value
of
forward
exchange
contracts
was
$292,285,793.
At
February
28,
2026,
the
Fund's
OTC
derivative
assets
and
liabilities
are
as
follows:
Derivative
Contracts
Not
Accounted
for
as
Hedging
Instruments
Statement
of
Operations
Location
Net
Realized
Gain
(Loss)
for
the
Period
Statement
of
Operations
Location
Net
Change
in
Unrealized
Appreciation
(Depreciation)
for
the
Period
Putnam
International
Small
Cap
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
appreciation
(depreciation)
on:
Foreign
exchange
contracts
.....
Forward
exchange
contracts
$747,313
Forward
exchange
contracts
$2,773,403
Total
.......................
$747,313
$2,773,403
Gross
Amounts
of
Assets
and
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Assets
a
Liabilities
a
Putnam
International
Small
Cap
Fund
Forward
Exchange
Contracts
.............................
$
3,559,556
$
1,234,664
Total
.............................................
$3,559,556
$1,234,664
a
Absent
an
event
of
default
or
early
termination,
OTC
derivative
assets
and
liabilities
are
presented
gross
and
not
offset
in
the
Statement
of
Assets
and
Liabilities.
8.
Other
Derivative
Information
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
28
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
At
February
28,
2026,
OTC
derivative
assets,
which
may
be
offset
against
the
Fund's
OTC
derivative
liabilities
and
collateral
received
from
the
counterparty,
are
as
follows:
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Gross
Amounts
of
Assets
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
Instruments
Available
for
Offset
Financial
Instruments
Collateral
Received
a,b
Cash
Collateral
Received
b
Net
Amount
(Not
less
than
zero)
Putnam
International
Small
Cap
Fund
Counterparty
BOFA
....................
$
985,198
$
(34,155)
$
(951,043)
$
—
$
—
BZWS
...................
85,958
(81,218)
—
—
4,740
CITI
.....................
214,231
(78,332)
—
(120,000)
15,899
GSCO
...................
179,958
(179,958)
—
—
—
HSBK
...................
349,839
(162,203)
—
(
187,636)
—
JPHQ
...................
465,767
(41,866)
—
(360,000)
63,901
MSCO
...................
485,807
(209,525)
—
(270,000)
6,282
SSBT
....................
266,333
(193,021)
—
—
73,312
TDOM
...................
139,641
(77,015)
—
—
62,626
UBSW
...................
321,167
(103,328)
(202,278)
—
15,561
WPAC
...................
65,657
(62,311)
—
—
3,346
Total
...................
$3,559,556
$(1,222,932)
$(1,153,321)
$(937,636)
$245,667
$
1
8.
Other
Derivative
Information
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
29
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
At
February
28,
2026,
OTC
derivative
liabilities,
which
may
be
offset
against
the
Fund's
OTC
derivative
assets
and
collateral
pledged
to
the
counterparty,
are
as
follows:
See
Note
1(c) regarding
derivative
financial
instruments.
See
Abbreviations
on
page
31
.
9.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.995
billion
(Global
Credit
Facility)
which
matures
on
January
29,
2027.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
may,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
period
ended
February
28,
2026,
the Fund
did
not
use
the
Global
Credit
Facility.
Amounts
Not
Offset
in
the
Statement
of
Assets
and
Liabilities
Gross
Amounts
of
Liabilities
Presented
in
the
Statement
of
Assets
and
Liabilities
Financial
Instruments
Available
for
Offset
Financial
Instruments
Collateral
Pledged
Cash
Collateral
Pledged
Net
Amount
(Not
less
than
zero)
Putnam
International
Small
Cap
Fund
Counterparty
BOFA
....................
$
34,155
$
(34,155)
$
—
$
—
$
—
BZWS
...................
81,218
(81,218)
—
—
—
CITI
.....................
78,332
(78,332)
—
—
—
GSCO
...................
191,690
(179,958)
—
—
11,732
HSBK
...................
162,203
(162,203)
—
—
—
JPHQ
...................
41,866
(
41,866)
—
—
—
MSCO
...................
209,525
(209,525)
—
—
—
SSBT
....................
193,021
(193,021)
—
—
—
TDOM
...................
77,015
(77,015)
—
—
—
UBSW
...................
103,328
(103,328)
—
—
—
WPAC
...................
62,311
(62,311)
—
—
—
Total
...................
$1,234,664
$(1,222,932)
$—
$—
$11,732
a
At
February
28,
2026,
the
Fund
received
U.S
Treasury
Bills,
Bonds
and
Notes
as
collateral
for
derivatives.
b
In
some
instances,
the
collateral
amounts
disclosed
in
the
table
above
were
adjusted
due
to
the
requirement
to
limit
the
collateral
amounts
to
avoid
the
effect
of
overcollateralization.
Actual
collateral
received
and/or
pledged
may
be
more
than
the
amounts
disclosed
herein.
8.
Other
Derivative
Information
(continued)
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
30
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
10.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
February
28,
2026,
in
valuing
the
Fund's assets
and
liabilities carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Putnam
International
Small
Cap
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
:
Belgium
..............................
$
5,991,622
$
—
$
—
$
5,991,622
Canada
..............................
8,954,487
9,793,338
—
18,747,825
Denmark
.............................
8,070,055
8,487,492
—
16,557,547
France
...............................
5,999,376
37,532,154
—
43,531,530
Germany
.............................
—
16,849,652
—
16,849,652
Greece
..............................
—
6,990,588
—
6,990,588
Ireland
...............................
—
7,336,536
—
7,336,536
Italy
.................................
—
5,951,965
—
5,951,965
Japan
...............................
—
103,084,155
—
103,084,155
Mexico
..............................
6,802,229
—
—
6,802,229
Netherlands
...........................
5,703,911
11,119,414
—
16,823,325
Spain
................................
—
6,915,478
—
6,915,478
Switzerland
...........................
—
4,958,310
—
4,958,310
Taiwan
...............................
—
5,820,285
—
5,820,285
United
Kingdom
........................
15,724,375
44,336,817
—
60,061,192
United
States
..........................
4,714,904
7,230,968
—
11,945,872
Management
Investment
Companies
.........
7,840,738
—
—
7,840,738
Preferred
Stocks
........................
—
7,784,848
—
7,784,848
U.S.
Government
and
Agency
Securities
.......
—
995,238
—
995,238
Short
Term
Investments
...................
6,151,145
14,797,365
—
20,948,510
Total
Investments
in
Securities
...........
$75,952,842
$299,984,603
b
$—
$375,937,445
Other
Financial
Instruments:
Forward
Exchange
Contracts
...............
$—
$3,559,556
$—
$3,559,556
Total
Other
Financial
Instruments
.........
$—
$3,559,556
$—
$3,559,556
Liabilities:
Other
Financial
Instruments:
Forward
Exchange
Contracts
...............
$—
$1,234,664
$—
$1,234,664
Total
Other
Financial
Instruments
.........
$—
$1,234,664
$—
$1,234,664
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
Includes
foreign
securities
valued
at
$284,192,000,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
Putnam
Investment
Funds
Notes
to
Financial
Statements
(unaudited)
31
franklintempleton.com
Semiannual
Report
Putnam
International
Small
Cap
Fund
(continued)
11.
Operating
Segments
The Fund operates
as
a
single
operating
segment,
which
is
an
investment
portfolio.
A
management
group
of
the
Fund’s
investment
manager serves
as
the
Chief
Operating
Decision
Maker
(“CODM”)
and
is
responsible
for
evaluating
the
Fund's
operating
results
and
allocating
resources
in
accordance
with
the
Fund’s
investment
strategy.
Internal
reporting
provided
to
the
CODM
aligns
with
the
accounting
policies
and
measurement
principles
used
in
the financial
statements.
For
information
regarding
segment
assets,
segment
profit
or
loss,
and
significant
expenses,
refer
to
the Statement
of
Assets
and
Liabilities
and
the Statement
of
Operations,
along
with
the
related
notes
to
the financial
statements.
The Schedule
of
Investments
provides
details
of
the Fund's investments
that
generate
returns
such
as
interest,
dividends,
and
realized
and
unrealized
gains
or
losses.
Performance
metrics,
including
portfolio
turnover
and
expense
ratios,
are
disclosed
in
the Financial
Highlights.
12.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Counterparty
BOFA
Bank
of
America
NA
BZWS
Barclays
Bank
plc
CITI
Citibank
NA
GSCO
Goldman
Sachs
Group,
Inc.
HSBK
HSBC
Bank
plc
JPHQ
JPMorgan
Chase
Bank
NA
MSCO
Morgan
Stanley
SSBT
State
Street
Bank
and
Trust
Co.
TDOM
Toronto
Dominion
Bank
UBSW
UBS
AG
WPAC
Westpac
Banking
Corp.
Selected
Portfolio
ETF
Exchange-Traded
Fund
Putnam
Investment
Funds
32
franklintempleton.com
Semiannual
Report
Changes
In
and
Disagreements
with
Accountants
For
the
period
covered
by
this
report
Not
applicable.
Results
of
Meeting(s)
of
Shareholders
For
the
period
covered
by
this
report
Not
applicable.
Remuneration
Paid
to
Directors,
Officers
and
Others
For
the
period
covered
by
this
report
Refer
to
the
financial
statements
included
herein.
Remuneration
to
officers
is
paid
by
the
Fund’s
investment
manager
according
to
the
terms
of
the
agreement.
Board
Approval
of
Management
and
Subadvisory
Agreements
For
the
period
covered
by
this
report
Not
applicable.
38966-SFSOI
04/26
©
2026
Franklin
Templeton.
All
rights
reserved.
| ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 9. | PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 10. | REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 11. | STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.
| ITEM 12. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 13. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 14. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
| ITEM 16. | CONTROLS AND PROCEDURES. |
| (a) | The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
| (b) | During the period covered by this report, the Registrant transitioned to a new third-party service provider who performs certain accounting and administrative services for the Registrant that are subject to Franklin Templeton’s oversight. |
| ITEM 17. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 18. | RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| ITEM 19. | EXHIBITS. |
(a) (1) Not applicable.
Exhibit 99.CODE ETH
(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.CERT
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.906CERT
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, there unto duly authorized.
| Putnam Investment Funds | ||
| By: | /s/ Jonathan S. Horwitz | |
| Jonathan S. Horwitz | ||
| Principal Executive Officer | ||
| Date: | April 29, 2026 | |
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: | /s/ Jonathan S. Horwitz | |
| Jonathan S. Horwitz | ||
| Principal Executive Officer | ||
| Date: | April 29, 2026 | |
| By: | /s/ Jeffrey White | |
| Jeffrey White | ||
| Principal Financial Officer | ||
| Date: | April 29, 2026 |