Putnam Sustainable Leaders Fund

02/26/2026 | Press release | Distributed by Public on 02/26/2026 10:54

Semi-Annual Report by Investment Company (Form N-CSRS)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06128

Putnam Sustainable Leaders Fund

(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: June 30

Date of reporting period: December 31, 2025

ITEM 1. REPORT TO STOCKHOLDERS.

(a) The Report to Shareholders is filed herewith

Putnam Sustainable Leaders Fund
Class A[PNOPX]
Semi-Annual Shareholder Report | December 31, 2025
This semi-annual shareholder reportcontains important information about Putnam Sustainable Leaders Fund for the period July 1, 2025, to December 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.  
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
$43
0.82%
† Annualized.
KEY FUND STATISTICS (as of December 31, 2025)
Total Net Assets
$6,615,387,548
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
59
Portfolio Turnover Rate
21%
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
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 https://www.franklintempleton.com/regulatory-fund-documents, including its:
• prospectus • proxy voting information • financial information • holdings • tax information
Putnam Sustainable Leaders Fund PAGE 1 39051-STSA-0226
Putnam Sustainable Leaders Fund
Class C[PNOCX]
Semi-Annual Shareholder Report | December 31, 2025
This semi-annual shareholder reportcontains important information about Putnam Sustainable Leaders Fund for the period July 1, 2025, to December 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.  
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
$83
1.58%
† Annualized.
KEY FUND STATISTICS (as of December 31, 2025)
Total Net Assets
$6,615,387,548
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
59
Portfolio Turnover Rate
21%
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
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 https://www.franklintempleton.com/regulatory-fund-documents, including its:
• prospectus • proxy voting information • financial information • holdings • tax information
Putnam Sustainable Leaders Fund PAGE 1 39051-STSC-0226
Putnam Sustainable Leaders Fund
Class R[PNORX]
Semi-Annual Shareholder Report | December 31, 2025
This semi-annual shareholder reportcontains important information about Putnam Sustainable Leaders Fund for the period July 1, 2025, to December 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.  
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
$57
1.07%
† Annualized.
KEY FUND STATISTICS (as of December 31, 2025)
Total Net Assets
$6,615,387,548
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
59
Portfolio Turnover Rate
21%
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
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 https://www.franklintempleton.com/regulatory-fund-documents, including its:
• prospectus • proxy voting information • financial information • holdings • tax information
Putnam Sustainable Leaders Fund PAGE 1 39051-STSR-0226
Putnam Sustainable Leaders Fund
Class R6[PSLGX]
Semi-Annual Shareholder Report | December 31, 2025
This semi-annual shareholder reportcontains important information about Putnam Sustainable Leaders Fund for the period July 1, 2025, to December 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.  
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
$26
0.50%
† Annualized.
KEY FUND STATISTICS (as of December 31, 2025)
Total Net Assets
$6,615,387,548
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
59
Portfolio Turnover Rate
21%
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
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 https://www.franklintempleton.com/regulatory-fund-documents, including its:
• prospectus • proxy voting information • financial information • holdings • tax information
Putnam Sustainable Leaders Fund PAGE 1 39051-STSR6-0226
Putnam Sustainable Leaders Fund
Class Y[PNOYX]
Semi-Annual Shareholder Report | December 31, 2025
This semi-annual shareholder reportcontains important information about Putnam Sustainable Leaders Fund for the period July 1, 2025, to December 31, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) 225-1581.  
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
$30
0.57%
† Annualized.
KEY FUND STATISTICS (as of December 31, 2025)
Total Net Assets
$6,615,387,548
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
59
Portfolio Turnover Rate
21%
WHAT DID THE FUND INVEST IN? (as of December 31, 2025)
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 https://www.franklintempleton.com/regulatory-fund-documents, including its:
• prospectus • proxy voting information • financial information • holdings • tax information
Putnam Sustainable Leaders Fund PAGE 1 39051-STSY-0226

(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
Sustainable
Leaders
Fund
Financial
Statements
and
Other
Important
Information
Semi-Annual
|
December 31, 2025
Table
of
Contents
franklintempleton.com
Financial
Statements
and
Other
Important
Information-Semiannual
1
Financial
Highlights
and
Schedule
of
Investments
2
Financial
Statements
11
Notes
to
Financial
Statements
15
Changes
In
and
Disagreements
with
Accountants
28
Results
of
Meeting(s)
of
Shareholders
28
Remuneration
Paid
to
Directors,
Officers
and
Others
28
Board
Approval
of
Management
and
Subadvisory
Agreements
28
Putnam
Sustainable
Leaders
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
O
a
Six
Months
Ended
December
31,
2025
(unaudited)
Year
Ended
June
30,
2025
2024
2023
2022
2021
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$123.36
$129.24
$101.80
$92.24
$128.40
$98.08
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.06
0.30
0.29
0.33
0.09
0.23
Net
realized
and
unrealized
gains
(losses)
12.36
5.15
30.36
16.64
(21.77)
38.43
Total
from
investment
operations
........
12.42
5.45
30.65
16.97
(21.68)
38.66
Less
distributions
from:
Net
investment
income
..............
-
(0.63)
(0.19)
(0.01)
(0.60)
(0.33)
Net
realized
gains
.................
(13.69)
(10.70)
(3.02)
(7.40)
(13.88)
(8.01)
Total
distributions
...................
(13.69)
(11.33)
(3.21)
(7.41)
(14.48)
(8.34)
Net
asset
value,
end
of
period
..........
$122.09
$123.36
$129.24
$101.80
$92.24
$128.40
Total
return
c
.......................
10.04%
3.84%
30.89%
19.33%
(19.55)%
40.82%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.82%
0.88%
0.87%
0.92%
0.99%
1.05%
Net
investment
income
...............
0.10%
0.24%
0.26%
0.34%
0.07%
0.20%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$5,908,241
$5,683,066
$5,989,514
$4,928,013
$4,442,688
$5,915,779
Portfolio
turnover
rate
................
21%
44%
22%
25%
32%
24%
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
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Sustainable
Leaders
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
3
a
Six
Months
Ended
December
31,
2025
(unaudited)
Year
Ended
June
30,
2025
2024
2023
2022
2021
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$85.51
$92.89
$74.39
$69.76
$100.59
$78.62
Income
from
investment
operations
a
:
Net
investment
(loss)
b
..............
(0.29)
(0.45)
(0.39)
(0.29)
(0.62)
(0.51)
Net
realized
and
unrealized
gains
(losses)
8.56
3.79
21.91
12.33
(16.33)
30.49
Total
from
investment
operations
........
8.27
3.34
21.52
12.04
(16.95)
29.98
Less
distributions
from:
Net
investment
income
..............
-
(0.02)
-
(0.01)
-
-
Net
realized
gains
.................
(13.69)
(10.70)
(3.02)
(7.40)
(13.88)
(8.01)
Total
distributions
...................
(13.69)
(10.72)
(3.02)
(7.41)
(13.88)
(8.01)
Net
asset
value,
end
of
period
..........
$80.09
$85.51
$92.89
$74.39
$69.76
$100.59
Total
return
c
.......................
9.63%
3.06%
29.91%
18.44%
(20.15)%
39.76%
Ratios
to
average
net
assets
d
Expenses
e
........................
1.58%
1.62%
1.62%
1.67%
1.74%
1.80%
Net
investment
(loss)
................
(0.65)%
(0.51)%
(0.49)%
(0.41)%
(0.68)%
(0.56)%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$25,774
$27,199
$32,819
$31,579
$31,125
$41,870
Portfolio
turnover
rate
................
21%
44%
22%
25%
32%
24%
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
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Sustainable
Leaders
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
Six
Months
Ended
December
31,
2025
(unaudited)
Year
Ended
June
30,
2025
2024
2023
2022
2021
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$115.33
$121.52
$95.99
$87.58
$122.36
$93.85
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.09)
(0.01)
0.02
0.09
(0.28)
(0.12)
Net
realized
and
unrealized
gains
(losses)
11.55
4.85
28.56
15.73
(20.57)
36.77
Total
from
investment
operations
........
11.46
4.84
28.58
15.82
(20.85)
36.65
Less
distributions
from:
Net
investment
income
..............
-
(0.33)
(0.03)
(0.01)
(0.05)
(0.13)
Net
realized
gains
.................
(13.69)
(10.70)
(3.02)
(7.40)
(13.88)
(8.01)
Total
distributions
...................
(13.69)
(11.03)
(3.05)
(7.41)
(13.93)
(8.14)
Net
asset
value,
end
of
period
..........
$113.10
$115.33
$121.52
$95.99
$87.58
$122.36
Total
return
c
.......................
9.91%
3.58%
30.56%
19.03%
(19.74)%
40.47%
Ratios
to
average
net
assets
d
Expenses
e
........................
1.07%
1.13%
1.12%
1.17%
1.24%
1.30%
Net
investment
income
(loss)
..........
(0.15)%
(0.01)%
0.02%
0.10%
(0.22)%
(0.10)%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$1,796
$1,819
$1,705
$1,304
$1,020
$3,860
Portfolio
turnover
rate
................
21%
44%
22%
25%
32%
24%
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
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Sustainable
Leaders
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
Six
Months
Ended
December
31,
2025
(unaudited)
Year
Ended
June
30,
2025
2024
2023
2022
2021
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$140.71
$145.86
$114.45
$102.50
$141.11
$107.06
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.31
0.81
0.74
0.74
0.54
0.69
Net
realized
and
unrealized
gains
(losses)
14.11
5.78
34.22
18.62
(24.24)
42.06
Total
from
investment
operations
........
14.42
6.59
34.96
19.36
(23.70)
42.75
Less
distributions
from:
Net
investment
income
..............
-
(1.04)
(0.53)
(0.01)
(1.03)
(0.69)
Net
realized
gains
.................
(13.69)
(10.70)
(3.02)
(7.40)
(13.88)
(8.01)
Total
distributions
...................
(13.69)
(11.74)
(3.55)
(7.41)
(14.91)
(8.70)
Net
asset
value,
end
of
period
..........
$141.44
$140.71
$145.86
$114.45
$102.50
$141.11
Total
return
c
.......................
10.23%
4.19%
31.32%
19.74%
(19.27)%
41.29%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.50%
0.55%
0.53%
0.58%
0.65%
0.70%
Net
investment
income
...............
0.42%
0.57%
0.59%
0.70%
0.41%
0.55%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$43,714
$44,506
$103,080
$98,187
$81,611
$102,909
Portfolio
turnover
rate
................
21%
44%
22%
25%
32%
24%
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
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Sustainable
Leaders
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
Six
Months
Ended
December
31,
2025
(unaudited)
Year
Ended
June
30,
2025
2024
2023
2022
2021
Class
Y
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$140.01
$145.20
$113.95
$102.17
$140.72
$106.79
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.26
0.69
0.64
0.63
0.43
0.58
Net
realized
and
unrealized
gains
(losses)
14.03
5.75
34.06
18.56
(24.18)
41.95
Total
from
investment
operations
........
14.29
6.44
34.70
19.19
(23.75)
42.53
Less
distributions
from:
Net
investment
income
..............
-
(0.93)
(0.43)
(0.01)
(0.92)
(0.59)
Net
realized
gains
.................
(13.69)
(10.70)
(3.02)
(7.40)
(13.88)
(8.01)
Total
distributions
...................
(13.69)
(11.63)
(3.45)
(7.41)
(14.80)
(8.60)
Net
asset
value,
end
of
period
..........
$140.61
$140.01
$145.20
$113.95
$102.17
$140.72
Total
return
c
.......................
10.19%
4.11%
31.21%
19.62%
(19.35)%
41.17%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.57%
0.63%
0.62%
0.67%
0.74%
0.80%
Net
investment
income
...............
0.35%
0.49%
0.51%
0.60%
0.32%
0.46%
Supplemental
data
Net
assets,
end
of
period
(000's)
........
$635,863
$577,507
$469,390
$380,831
$324,486
$412,837
Portfolio
turnover
rate
................
21%
44%
22%
25%
32%
24%
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
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Putnam
Sustainable
Leaders
Fund
Schedule
of
Investments
(unaudited),
December
31,
2025
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
99.0%
Automobiles
1.9%
a
Tesla,
Inc.
.........................................
United
States
286,140
$
128,682,881
Banks
4.3%
Bank
of
America
Corp.
...............................
United
States
1,807,526
99,413,930
JPMorgan
Chase
&
Co.
...............................
United
States
576,060
185,618,053
285,031,983
Beverages
1.1%
Keurig
Dr.
Pepper,
Inc.
...............................
United
States
2,515,132
70,448,847
Biotechnology
2.7%
AbbVie,
Inc.
.......................................
United
States
482,700
110,292,123
Regeneron
Pharmaceuticals,
Inc.
.......................
United
States
88,540
68,341,370
178,633,493
Broadline
Retail
5.8%
a
Amazon.com,
Inc.
...................................
United
States
1,660,340
383,239,679
Building
Products
1.4%
Allegion
plc
........................................
United
States
243,900
38,833,758
Trane
Technologies
plc
...............................
United
States
138,400
53,865,280
92,699,038
Capital
Markets
2.8%
KKR
&
Co.,
Inc.
.....................................
United
States
754,600
96,196,408
TPG,
Inc.
,
A
.......................................
United
States
1,368,431
87,360,635
183,557,043
Chemicals
2.3%
Linde
plc
..........................................
United
States
193,160
82,361,492
Novonesis
Novozymes
,
B
.............................
Denmark
1,188,945
76,069,330
158,430,822
Commercial
Services
&
Supplies
1.0%
Republic
Services,
Inc.
,
A
.............................
United
States
312,300
66,185,739
Construction
Materials
0.8%
CRH
plc
..........................................
United
States
398,500
49,732,800
Consumer
Finance
1.7%
Capital
One
Financial
Corp.
...........................
United
States
459,000
111,243,240
Consumer
Staples
Distribution
&
Retail
2.8%
Costco
Wholesale
Corp.
..............................
United
States
89,800
77,438,132
Walmart,
Inc.
......................................
United
States
959,500
106,897,895
184,336,027
Electric
Utilities
2.8%
Constellation
Energy
Corp.
............................
United
States
267,900
94,641,033
NextEra
Energy,
Inc.
.................................
United
States
1,110,700
89,166,996
183,808,029
Entertainment
2.1%
a
Liberty
Media
Corp.-Liberty
Formula
One
Corp.
,
C
...........
United
States
501,600
49,412,616
Walt
Disney
Co.
(The)
................................
United
States
729,400
82,983,838
132,396,454
Financial
Services
1.9%
Mastercard,
Inc.
,
A
..................................
United
States
217,920
124,406,170
Putnam
Sustainable
Leaders
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Food
Products
0.9%
Danone
SA
........................................
France
626,319
$
56,493,406
Ground
Transportation
1.0%
Canadian
Pacific
Kansas
City
Ltd.
.......................
Canada
850,400
62,608,226
Health
Care
Equipment
&
Supplies
2.0%
Becton
Dickinson
&
Co.
...............................
United
States
301,200
58,453,884
a
Boston
Scientific
Corp.
...............................
United
States
786,500
74,992,775
133,446,659
Hotels,
Restaurants
&
Leisure
1.3%
Hilton
Worldwide
Holdings,
Inc.
.........................
United
States
302,896
87,006,876
Household
Durables
1.0%
DR
Horton,
Inc.
.....................................
United
States
441,600
63,603,648
Industrial
REITs
0.8%
Prologis,
Inc.
.......................................
United
States
423,900
54,115,074
Insurance
0.8%
Aon
plc
,
A
.........................................
United
States
148,660
52,459,141
Interactive
Media
&
Services
6.1%
Alphabet,
Inc.
,
A
....................................
United
States
1,294,300
405,115,900
IT
Services
0.9%
Accenture
plc
,
A
....................................
United
States
220,300
59,106,490
Life
Sciences
Tools
&
Services
2.7%
a
Mettler-Toledo
International,
Inc.
........................
United
States
48,390
67,464,854
Thermo
Fisher
Scientific,
Inc.
..........................
United
States
199,080
115,356,906
182,821,760
Machinery
3.7%
Fortive
Corp.
.......................................
United
States
1,190,000
65,699,900
Ingersoll
Rand,
Inc.
..................................
United
States
1,300,100
102,993,922
Otis
Worldwide
Corp.
................................
United
States
832,700
72,736,345
241,430,167
Office
REITs
0.7%
BXP,
Inc.
..........................................
United
States
633,200
42,728,336
Personal
Care
Products
1.3%
Unilever
plc
........................................
United
Kingdom
1,354,801
88,644,201
Pharmaceuticals
5.2%
AstraZeneca
plc
....................................
United
Kingdom
392,185
72,577,501
Eli
Lilly
&
Co.
......................................
United
States
205,940
221,319,599
GSK
plc
..........................................
United
States
2,239,065
54,895,641
348,792,741
Real
Estate
Management
&
Development
0.5%
FirstService
Corp.
...................................
Canada
228,200
35,491,946
Semiconductors
&
Semiconductor
Equipment
12.9%
ASML
Holding
NV
,
ADR
..............................
Netherlands
81,720
87,428,959
Broadcom,
Inc.
.....................................
United
States
789,060
273,093,666
Marvell
Technology,
Inc.
..............................
United
States
570,200
48,455,596
NVIDIA
Corp.
......................................
United
States
2,420,600
451,441,900
860,420,121
Putnam
Sustainable
Leaders
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Software
11.4%
a
Cadence
Design
Systems,
Inc.
.........................
United
States
170,320
$
53,238,626
Microsoft
Corp.
.....................................
United
States
1,114,940
539,207,283
Roper
Technologies,
Inc.
..............................
United
States
212,060
94,394,268
a
ServiceNow,
Inc.
....................................
United
States
445,160
68,194,060
755,034,237
Specialty
Retail
1.4%
Home
Depot,
Inc.
(The)
...............................
United
States
271,880
93,553,908
Technology
Hardware,
Storage
&
Peripherals
8.1%
Apple,
Inc.
........................................
United
States
1,966,328
534,565,930
Textiles,
Apparel
&
Luxury
Goods
0.9%
a
On
Holding
AG
,
A
...................................
Switzerland
1,251,700
58,179,016
Total
Common
Stocks
(Cost
$
3,495,653,044
)
..................................
6,548,450,028
Short
Term
Investments
1.1%
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
U.S.
Government
and
Agency
Securities
0.1%
b,c
U.S.
Treasury
Bills
,
3
.49
%
,
4/23/26
......................
United
States
4,300,000
4,253,342
Total
U.S.
Government
and
Agency
Securities
(Cost
$
4,252,688
)
................
4,253,342
Shares
Management
Investment
Companies
1.0%
d,e
Putnam
Short
Term
Investment
Fund
,
Class
P
,
3.967
%
.......
United
States
69,394,218
69,394,218
Total
Management
Investment
Companies
(Cost
$
69,394,218
)
..................
69,394,218
Total
Short
Term
Investments
(Cost
$
73,646,906
)
..............................
73,647,560
a
Total
Investments
(Cost
$
3,569,299,950
)
100.1
%
..............................
$6,622,097,588
Other
Assets,
less
Liabilities
(
0.1
)
%
.........................................
(6,710,040)
Net
Assets
100.0%
.........................................................
$6,615,387,548
a
a
a
a
Non-income
producing.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
b
The
rate
shown
represents
the
yield
at
period
end.
c
A
portion
or
all
of
the
security
has
been
segregated
as
collateral
for
certain
derivative
contracts.
At
December
31,
2025,
the
value
of
this
security
pledged
amounted
to
$2,893,261,
representing
less
than
0.1%
of
net
assets.
d
See
Note
3
(
g
)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Putnam
Sustainable
Leaders
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
At
December
31,
2025
,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Note
1(c)
.
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
Canadian
Dollar
....
HSBK
Buy
742,200
542,596
1/14/26
$
-
$
(
1,622
)
Canadian
Dollar
....
JPHQ
Sell
47,711,000
34,146,845
1/14/26
-
(
628,672
)
Canadian
Dollar
....
MSCO
Sell
22,405,000
16,033,807
1/14/26
-
(
296,714
)
Canadian
Dollar
....
SSBT
Sell
30,937,600
22,194,515
1/14/26
-
(
355,234
)
Canadian
Dollar
....
TDOM
Sell
18,920,200
13,541,899
1/14/26
-
(
248,626
)
Canadian
Dollar
....
WPAC
Sell
17,695,100
12,666,590
1/14/26
-
(
230,986
)
British
Pound
......
BOFA
Sell
50,678,700
68,070,211
3/17/26
-
(
229,862
)
British
Pound
......
BZWS
Sell
12,241,400
16,442,099
3/17/26
-
(
55,730
)
British
Pound
......
CITI
Sell
16,934,400
22,745,465
3/17/26
-
(
77,156
)
British
Pound
......
GSCO
Buy
13,210,100
17,743,278
3/17/26
60,075
-
British
Pound
......
HSBK
Sell
12,889,300
17,311,812
3/17/26
-
(
59,196
)
British
Pound
......
MSCO
Buy
1,125,500
1,502,624
3/17/26
14,221
-
British
Pound
......
SSBT
Sell
92,337,100
123,277,046
3/17/26
-
(
1,166,371
)
British
Pound
......
TDOM
Buy
19,924,600
26,601,333
3/17/26
251,203
-
British
Pound
......
UBSW
Buy
806,900
1,088,832
3/17/26
-
(
1,366
)
British
Pound
......
UBSW
Sell
523,100
698,380
3/17/26
-
(
6,606
)
British
Pound
......
WPAC
Sell
11,146,100
14,881,292
3/17/26
-
(
140,393
)
Danish
Krone
......
BOFA
Sell
134,718,600
21,321,824
3/17/26
37,077
-
Danish
Krone
......
HSBK
Buy
4,139,400
654,461
3/17/26
-
(
461
)
Danish
Krone
......
HSBK
Sell
209,358,300
33,135,751
3/17/26
58,369
-
Danish
Krone
......
MSCO
Sell
51,912,200
8,202,624
3/17/26
801
-
Danish
Krone
......
SSBT
Sell
110,534,900
17,465,681
3/17/26
1,816
-
Euro
.............
BOFA
Buy
12,439,900
14,692,028
3/17/26
-
(
23,951
)
Euro
.............
BZWS
Sell
10,023,500
11,838,044
3/17/26
19,182
-
Euro
.............
GSCO
Buy
1,058,100
1,251,033
3/17/26
-
(
3,411
)
Euro
.............
GSCO
Sell
17,828,100
21,056,680
3/17/26
35,294
-
Euro
.............
HSBK
Buy
6,615,800
7,813,227
3/17/26
-
(
12,435
)
Euro
.............
JPHQ
Sell
35,905,900
42,403,127
3/17/26
65,929
-
Euro
.............
MSCO
Sell
16,702,000
19,693,395
3/17/26
-
(
189
)
Euro
.............
SSBT
Buy
8,614,700
10,081,893
3/17/26
75,832
-
Euro
.............
SSBT
Sell
21,305,100
25,120,630
3/17/26
-
(
540
)
Euro
.............
UBSW
Buy
3,883,400
4,547,539
3/17/26
31,437
-
Euro
.............
UBSW
Sell
25,145,500
29,648,556
3/17/26
-
(
888
)
Euro
.............
WPAC
Sell
44,982,300
53,039,125
3/17/26
-
(
195
)
Swiss
Franc
.......
SSBT
Sell
29,239,800
37,106,957
3/17/26
-
(
87,391
)
Swiss
Franc
.......
WPAC
Sell
12,412,400
15,751,277
3/17/26
-
(
37,857
)
Total
Forward
Exchange
Contracts
...................................................
$651,236
$(3,665,852)
Net
unrealized
appreciation
(depreciation)
............................................
$(3,014,616)
*
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
27
.
Putnam
Sustainable
Leaders
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
December
30,
2025
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
Putnam
Sustainable
Leaders
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$3,499,905,732
Cost
-
Non-controlled
affiliates
(Note
3
g
)
........................................................
69,394,218
Value
-
Unaffiliated
issuers
..................................................................
$6,552,703,370
Value
-
Non-controlled
affiliates
(Note
3
g
)
.......................................................
69,394,218
Cash
....................................................................................
1,524,732
Receivables:
Investment
securities
sold
...................................................................
651,619
Capital
shares
sold
........................................................................
509,378
Dividends
and
interest
.....................................................................
3,327,422
Unrealized
appreciation
on
OTC
forward
exchange
contracts
..........................................
651,236
Prepaid
expenses
..........................................................................
1,267,646
Total
assets
..........................................................................
6,630,029,621
Liabilities:
Payables:
Capital
shares
redeemed
...................................................................
3,627,094
Management
fees
.........................................................................
2,571,792
Administrative
fees
........................................................................
20,840
Distribution
fees
..........................................................................
1,295,067
Transfer
agent
fees
........................................................................
1,523,215
Trustees'
fees
and
expenses
.................................................................
1,497,678
Unrealized
depreciation
on
OTC
forward
exchange
contracts
..........................................
3,665,852
Accrued
expenses
and
other
liabilities
...........................................................
440,535
Total
liabilities
.........................................................................
14,642,073
Net
assets,
at
value
.................................................................
$6,615,387,548
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$3,389,569,440
Total
distributable
earnings
(losses)
.............................................................
3,225,818,108
Net
assets,
at
value
.................................................................
$6,615,387,548
Putnam
Sustainable
Leaders
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
December
30,
2025
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
Putnam
Sustainable
Leaders
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$5,908,240,533
Shares
outstanding
........................................................................
48,391,792
Net
asset
value
per
share
a
,b
..................................................................
$122.09
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94
.25
%
)
b
................................
$129.54
Class
C:
Net
assets,
at
value
.......................................................................
$25,773,844
Shares
outstanding
........................................................................
321,791
Net
asset
value
and
maximum
offering
price
per
share
a
,b
............................................
$80.09
Class
R:
Net
assets,
at
value
.......................................................................
$1,795,762
Shares
outstanding
........................................................................
15,877
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$113.10
Class
R6:
Net
assets,
at
value
.......................................................................
$43,714,482
Shares
outstanding
........................................................................
309,073
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$141.44
Class
Y:
Net
assets,
at
value
.......................................................................
$635,862,927
Shares
outstanding
........................................................................
4,522,221
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$140.61
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
Sustainable
Leaders
Fund
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
December
31,
2025
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
Putnam
Sustainable
Leaders
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$165,888)
Unaffiliated
issuers
........................................................................
$28,240,853
Non-controlled
affiliates
(Note
3
g
)
.............................................................
1,739,489
Interest:
Unaffiliated
issuers
........................................................................
471,982
Total
investment
income
...................................................................
30,452,324
Expenses:
Management
fees
(Note
3
a
)
...................................................................
14,277,970
Administrative
fees
(Note
3
b
)
..................................................................
44,002
Distribution
fees:
(Note
3c
)
Class
A
................................................................................
7,395,876
Class
C
................................................................................
134,292
Class
R
................................................................................
4,322
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
3,541,741
Class
C
................................................................................
16,118
Class
R
................................................................................
1,032
Class
R6
...............................................................................
11,202
Class
Y
................................................................................
366,601
Custodian
fees
(Note
4
)
......................................................................
30,540
Reports
to
shareholders
fees
..................................................................
145,761
Registration
and
filing
fees
....................................................................
74,066
Professional
fees
...........................................................................
296,719
Trustees'
fees
and
expenses
(Note
3
f
)
...........................................................
114,158
Other
....................................................................................
114,545
Total
expenses
.........................................................................
26,568,945
Expense
reductions
(Note
4
)
...............................................................
(128,739)
Net
expenses
.........................................................................
26,440,206
Net
investment
income
................................................................
4,012,118
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
364,314,828
Foreign
currency
transactions
................................................................
40,824
Forward
exchange
contracts
.................................................................
(3,589,283)
Net
realized
gain
(loss)
..................................................................
360,766,369
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
246,613,633
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(120,002)
Forward
exchange
contracts
.................................................................
13,870,141
Net
change
in
unrealized
appreciation
(depreciation)
............................................
260,363,772
Net
realized
and
unrealized
gain
(loss)
............................................................
621,130,141
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$625,142,259
Putnam
Sustainable
Leaders
Fund
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
Putnam
Sustainable
Leaders
Fund
Six
Months
Ended
December
31,
2025
(unaudited)
Year
Ended
June
30,
2025
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$4,012,118
$16,639,250
Net
realized
gain
(loss)
.................................................
360,766,369
828,581,693
Net
change
in
unrealized
appreciation
(depreciation)
...........................
260,363,772
(603,971,620)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
625,142,259
241,249,323
Distributions
to
shareholders:
Class
A
.............................................................
(602,278,537)
(507,320,619)
Class
C
.............................................................
(3,813,401)
(3,568,346)
Class
R
.............................................................
(193,439)
(138,384)
Class
R6
............................................................
(3,886,300)
(8,021,747)
Class
Y
.............................................................
(57,242,862)
(37,250,064)
Total
distributions
to
shareholders
..........................................
(667,414,539)
(556,299,160)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
267,691,565
(17,224,987)
Class
B
.............................................................
-
(4,880,660)
Class
C
.............................................................
(65,822)
(2,784,625)
Class
R
.............................................................
9,571
204,595
Class
R6
............................................................
(1,260,421)
(55,648,427)
Class
Y
.............................................................
57,187,164
128,042,823
Total
capital
share
transactions
............................................
323,562,057
47,708,719
Net
increase
(decrease)
in
net
assets
...................................
281,289,777
(267,341,118)
Net
assets:
Beginning
of
period
.....................................................
6,334,097,771
6,601,438,889
End
of
period
..........................................................
$6,615,387,548
$6,334,097,771
Putnam
Sustainable
Leaders
Fund
15
franklintempleton.com
Semiannual
Report
Notes
to
Financial
Statements
(unaudited)
1.
Organization
and
Significant
Accounting
Policies
Putnam
Sustainable
Leaders
Fund (Fund)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company.
The Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
-
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
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.
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
derivative
financial instruments 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.
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
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
16
franklintempleton.com
Semiannual
Report
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
December
31,
2025,
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
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
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
17
franklintempleton.com
Semiannual
Report
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.
At
December
31,
2025,
the
Fund
had
OTC
derivatives
in
a
net
liability
position
of
$3,131,728
and
the
aggregate
value
of
collateral
pledged
for
such
contracts
was
$2,893,261.
Collateral
requirements
differ
by
type
of
derivative.
Collateral
or
initial
margin
requirements
are
set
by
the
broker
or
exchange
clearing
house
for
exchange
traded
and
centrally
cleared
derivatives.
Initial
margin
deposited
is
held
at
the
exchange
or
at
the
broker and
can
be
in
the
form
of
cash
and/or
securities.
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
for
OTC
derivatives,
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.
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 if
applicable,
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.
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.
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
December
31,
2025, 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.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Derivative
Financial
Instruments
(continued)
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
18
franklintempleton.com
Semiannual
Report
e.
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.
Distributions
from
realized
capital
gains
and
other
distributions,
if
any,
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.
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.
f.
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.
g.
Guarantees
and
Indemnifications
Under
the Fund's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the
Fund against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Fund's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Fund
that
have
not
yet
occurred.
Currently,
the Fund
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
December
31,
2025,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Six
Months
Ended
December
31,
2025
Year
Ended
June
30,
2025
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
320,589
$40,495,068
606,922
$76,340,251
Shares
issued
in
reinvestment
of
distributions
..........
4,647,137
568,809,860
3,719,456
479,326,247
Shares
redeemed
...............................
(2,646,465)
(341,613,363)
(4,601,478)
(572,891,485)
Net
increase
(decrease)
..........................
2,321,261
$267,691,565
(275,100)
$(17,224,987)
Class
B
Shares:
*
Shares
redeemed
...............................
-
-
(62,689)
(4,880,660)
Net
increase
(decrease)
..........................
-
$-
(62,689)
$(4,880,660)
1.
Organization
and
Significant
Accounting
Policies
(continued)
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
19
franklintempleton.com
Semiannual
Report
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:
Six
Months
Ended
December
31,
2025
Year
Ended
June
30,
2025
Shares
Amount
Shares
Amount
Class
C
Shares:
Shares
sold
...................................
14,171
$1,262,042
37,848
$3,332,666
Shares
issued
in
reinvestment
of
distributions
..........
47,441
3,809,985
39,699
3,561,819
Shares
redeemed
a
..............................
(57,885)
(5,137,849)
(112,804)
(9,679,110)
Net
increase
(decrease)
..........................
3,727
$(65,822)
(35,257)
$(2,784,625)
Class
R
Shares:
Shares
sold
...................................
2,034
$247,007
4,683
$549,935
Shares
issued
in
reinvestment
of
distributions
..........
1,706
193,439
1,147
138,384
Shares
redeemed
...............................
(3,637)
(430,875)
(4,090)
(483,724)
Net
increase
(decrease)
..........................
103
$9,571
1,740
$204,595
Class
R6
Shares:
Shares
sold
...................................
34,673
$5,193,362
93,625
$13,324,141
Shares
issued
in
reinvestment
of
distributions
..........
26,809
3,801,032
54,318
7,969,522
Shares
redeemed
...............................
(68,711)
(10,254,815)
(538,325)
(76,942,090)
Net
increase
(decrease)
..........................
(7,229)
$(1,260,421)
(390,382)
$(55,648,427)
Class
Y
Shares:
Shares
sold
...................................
517,696
$77,453,716
1,615,479
$225,070,278
Shares
issued
in
reinvestment
of
distributions
..........
401,779
56,630,810
251,555
36,742,079
Shares
redeemed
...............................
(522,132)
(76,897,362)
(974,767)
(133,769,534)
Net
increase
(decrease)
..........................
397,343
$57,187,164
892,267
$128,042,823
*
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
Investments
Limited
(PIL)
Subadvisor
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Putnam
Retail
Management
Limited
Partnership
(Putnam
Retail
Management)
Principal
underwriter
Putnam
Investor
Services,
Inc.
(PSERV)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
20
franklintempleton.com
Semiannual
Report
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:
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
500
Index
each
measured
over
the
performance
period.
The
maximum
annualized
performance
adjustment
rate
is
+/-
0.12%.
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
0.433%
of
the
Fund's
average
net
assets,
which
included
an
effective
base
fee
of
0.530%
and
a
decrease
of
0.097%
($3,187,320)
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.
Annualized
Fee
Rate
Net
Assets
0.710%
of
the
first
$5
billion,
0.660%
of
the
next
$5
billion,
0.610%
of
the
next
$10
billion,
0.560%
of
the
next
$10
billion,
0.510%
of
the
next
$50
billion,
0.490%
of
the
next
$50
billion,
0.480%
of
the
next
$100
billion
and
0.475%
of
any
excess
thereafter.
3.
Transactions
with
Affiliates
(continued)
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
21
franklintempleton.com
Semiannual
Report
b.
Administrative
Fees
Effective
June
1,
2024,
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.
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,
or
for
periods
prior
to
August
2,
2024,
Putnam
Retail
Management,
for
services
provided
and
expenses
incurred
in
distributing
shares
of
the
Fund.
The
Plans
provide
payments
by
the
Fund
to
Distributors
and
to
Putnam
Retail
Management
at
an
annual
rate
of
up
to
the
following
amounts
(Maximum
%)
of
the
average
net
assets
attributable
to
each
class.
The
Trustees
have
approved
payment
by
the
Fund
at
the
following
annual
rate
(Approved
%)
of
the
average
net
assets
attributable
to
each
class.
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
B,
Class
C,
Class R
and
Class
Y
shares
that
included
(1)
a
per
account
fee
for
each
direct
and
underlying
non-defined
contribution
account
(retail
account)
of
the
Fund;
(2)
a
specified
rate
of
the
Fund's
assets
attributable
to
defined
contribution
plan
accounts;
and
(3)
a
specified
rate
based
on
the
average
net
assets
in
retail
accounts.
PSERV
has
agreed
that
the
aggregate
investor
servicing
fees
for
each
Fund's
retail
and
defined
contribution
accounts
for
these
share
classes
will
not
exceed
an
annual
rate
of
0.25%
of
the
Fund's
average
assets
attributable
to
such
accounts.
Class R6
shares
paid
a
monthly
fee
based
on
the
average
net
assets
of
Class R6
shares
at
an
annual
rate
of
0.05%.
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.
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
..............................
$65,967
CDSC
retained
..............................................................................
$1,092
3.
Transactions
with
Affiliates
(continued)
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
22
franklintempleton.com
Semiannual
Report
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.
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
December
31,
2025,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
h.
Waiver
and
Expense
Reimbursements
Putnam
Management has
contractually
agreed,
through
October
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.
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
December
31,
2025,
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
Sustainable
Leaders
Fund
Non-Controlled
Affiliates
Dividends
Putnam
Short
Term
Investment
Fund,
Class
P,
3.967%
......
$165,159,563
$375,225,856
$(470,991,201)
$-
$-
$69,394,218
69,394,218
$1,739,489
Total
Affiliated
Securities
...
$165,159,563
$375,225,856
$(470,991,201)
$-
$-
$69,394,218
$1,739,489
3.
Transactions
with
Affiliates
(continued)
f.
Trustee
Fees
(continued)
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
23
franklintempleton.com
Semiannual
Report
5.
Income
Taxes
For
tax
purposes,
the
Fund
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At
June
30,
2025,
the
Fund
deferred
late-year
ordinary
losses
of
$26,171,050.
At
December
31,
2025,
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
and
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
period
ended
December
31,
2025,
aggregated
$1,324,598,798 and
$1,537,928,318,
respectively.
7.
Concentration
of
Risk
Investing
with
a
focus
on
companies
that
exhibit
a
commitment
to
sustainable
business
practices
may
result
in
the
Fund
investing
in
certain
types
of
companies,
industries
or
sectors
that
the
market
may
not
favor.
In
evaluating
an
investment
opportunity, Putnam
Management
may
make
investment
decisions
based
on
information
and
data
that
is
incomplete
or
inaccurate.
Due
to
changes
in
the
products
or
services
of
the
companies
and
issuers
in
which
the
Fund
invests,
the
Fund
may
temporarily
hold
securities
that
are
inconsistent
with
its
sustainable
investment
criteria.
8.
Other
Derivative
Information
At
December
31,
2025,
investments
in
derivative
contracts
are
reflected
in
the Statement of
Assets
and
Liabilities
as
follows:
Cost
of
investments
..........................................................................
$3,567,660,471
Unrealized
appreciation
........................................................................
$3,159,405,162
Unrealized
depreciation
........................................................................
(107,982,661)
Net
unrealized
appreciation
(depreciation)
..........................................................
$3,051,422,501
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
Sustainable
Leaders
Fund
Foreign
exchange
contracts
..
Unrealized
appreciation
on
OTC
forward
exchange
contracts
$
651,236
Unrealized
depreciation
on
OTC
forward
exchange
contracts
$
3,665,852
Total
....................
$651,236
$3,665,852
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
24
franklintempleton.com
Semiannual
Report
For
the
period
ended
December
31,
2025,
the
effect
of
derivative
contracts
in
the Statement
of
Operations
was
as
follows:
For
the
period
ended
December
31,
2025,
the
average
month
end contract
value
of
forward
exchange
contracts
was
$795,108,906.
See
Note
1(c) regarding
derivative
financial
instruments.
9.
Credit
Facility
Effective
January
31,
2025,
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
matured
on
January
30,
2026.
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.
Effective
January
30,
2026,
the
Borrowers
renewed
the
Global
Credit
Facility
for
a
one-year
term,
maturing
January
29,
2027,
for
a
total
of
$2.995
billion.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
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
reporting
period,
the
Fund
did
not
use
the
Global
Credit
Facility.
Prior
to
January
31,
2025,
the
Fund
participated,
along
with
other
Putnam
funds,
in
a
$320
million
syndicated
unsecured
committed
line
of
credit,
provided
by
State
Street
($160
million)
and
JPMorgan
($160
million),
and
a
$235.5
million
unsecured
uncommitted
line
of
credit,
provided
by
State
Street.
Borrowings
may
have
been
made
for
temporary
or
emergency
purposes,
including
the
funding
of
shareholder
redemption
requests
and
trade
settlements.
Interest
was
charged
to
the
Fund
based
on
the
Fund's
borrowings.
A
closing
fee
equal
to
0.04%
of
the
committed
line
of
credit
and
0.04%
of
the
uncommitted
line
of
credit
was
paid
by
the
participating
funds
and
a
$75,000
fee
was
paid
by
the
participating
funds
to
State
Street
as
agent
of
the
syndicated
committed
line
of
credit.
In
addition,
a
commitment
fee
of
0.21%
per
annum
on
any
unutilized
portion
of
the
committed
line
of
credit
was
allocated
to
the
participating
funds
based
on
their
relative
net
assets
and
paid
quarterly.
During
the
reporting
period,
the
Fund
had
no
borrowings
against
these
arrangements.
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
Sustainable
Leaders
Fund
Net
realized
gain
(loss)
from:
Net
change
in
unrealized
appreciation
(depreciation)
on:
Foreign
exchange
contracts
.....
Forward
exchange
contracts
$(3,589,283)
Forward
exchange
contracts
$13,870,141
Total
.......................
$(3,589,283)
$13,870,141
8.
Other
Derivative
Information
(continued)
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
25
franklintempleton.com
Semiannual
Report
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
December
31,
2025,
in
valuing
the
Fund's assets
and
liabilities carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Putnam
Sustainable
Leaders
Fund
Assets:
Investments
in
Securities:
a
Common
Stocks
:
Automobiles
..........................
$
128,682,881
$
-
$
-
$
128,682,881
Banks
...............................
285,031,983
-
-
285,031,983
Beverages
...........................
70,448,847
-
-
70,448,847
Biotechnology
.........................
178,633,493
-
-
178,633,493
Broadline
Retail
.......................
383,239,679
-
-
383,239,679
Building
Products
......................
92,699,038
-
-
92,699,038
Capital
Markets
........................
183,557,043
-
-
183,557,043
Chemicals
...........................
82,361,492
76,069,330
-
158,430,822
Commercial
Services
&
Supplies
...........
66,185,739
-
-
66,185,739
Construction
Materials
..................
49,732,800
-
-
49,732,800
Consumer
Finance
.....................
111,243,240
-
-
111,243,240
Consumer
Staples
Distribution
&
Retail
......
184,336,027
-
-
184,336,027
Electric
Utilities
........................
183,808,029
-
-
183,808,029
Entertainment
.........................
132,396,454
-
-
132,396,454
Financial
Services
......................
124,406,170
-
-
124,406,170
Food
Products
........................
-
56,493,406
-
56,493,406
Ground
Transportation
..................
62,608,226
-
-
62,608,226
Health
Care
Equipment
&
Supplies
.........
133,446,659
-
-
133,446,659
Hotels,
Restaurants
&
Leisure
.............
87,006,876
-
-
87,006,876
Household
Durables
....................
63,603,648
-
-
63,603,648
Industrial
REITs
.......................
54,115,074
-
-
54,115,074
Insurance
............................
52,459,141
-
-
52,459,141
Interactive
Media
&
Services
..............
405,115,900
-
-
405,115,900
IT
Services
...........................
59,106,490
-
-
59,106,490
Life
Sciences
Tools
&
Services
............
182,821,760
-
-
182,821,760
Machinery
............................
241,430,167
-
-
241,430,167
Office
REITs
..........................
42,728,336
-
-
42,728,336
Personal
Care
Products
.................
-
88,644,201
-
88,644,201
Pharmaceuticals
.......................
221,319,599
127,473,142
-
348,792,741
Real
Estate
Management
&
Development
....
35,491,946
-
-
35,491,946
Semiconductors
&
Semiconductor
Equipment
.
860,420,121
-
-
860,420,121
Software
.............................
755,034,237
-
-
755,034,237
Specialty
Retail
........................
93,553,908
-
-
93,553,908
Technology
Hardware,
Storage
&
Peripherals
.
534,565,930
-
-
534,565,930
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
26
franklintempleton.com
Semiannual
Report
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
other
than
those
already
disclosed
in
the
financial
statements.
Level
1
Level
2
Level
3
Total
Putnam
Sustainable
Leaders
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
a
(continued)
Common
Stocks:
(continued)
Textiles,
Apparel
&
Luxury
Goods
..........
$
58,179,016
$
-
$
-
$
58,179,016
Short
Term
Investments
...................
69,394,218
4,253,342
-
73,647,560
Total
Investments
in
Securities
...........
$6,269,164,167
$352,933,421
b
$-
$6,622,097,588
Other
Financial
Instruments:
Forward
Exchange
Contracts
...............
$-
$651,236
$-
$651,236
Total
Other
Financial
Instruments
.........
$-
$651,236
$-
$651,236
Liabilities:
Other
Financial
Instruments:
Forward
Exchange
Contracts
...............
$
-
$
3,665,852
$
-
$
3,665,852
Total
Other
Financial
Instruments
.........
$-
$3,665,852
$-
$3,665,852
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
Includes
foreign
securities
valued
at
$348,680,079,
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.
10.
Fair
Value
Measurements
(continued)
Putnam
Sustainable
Leaders
Fund
Notes
to
Financial
Statements
(unaudited)
27
franklintempleton.com
Semiannual
Report
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
ADR
American
Depositary
Receipt
REIT
Real
Estate
Investment
Trust
Putnam
Sustainable
Leaders
Fund
28
franklintempleton.com
Annual
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.
39051-SFSOI
02/26
©
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

Exhibit 99.CERT

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 Sustainable Leaders Fund

By: /s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: February 26, 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: February 26, 2026
By: /s/ Jeffrey White
Jeffrey White
Principal Financial Officer
Date: February 26, 2026
Putnam Sustainable Leaders Fund published this content on February 26, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 26, 2026 at 16:54 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]