8     Dynamic Asset Allocation Growth Fund

benefits of having some exposure to bonds, as they tend to be negatively correlated to equities and credit. Overall, while still somewhat constructive, we do not expect to see the same level of returns from the equity, credit, and bond markets that took place during the past three years.

We believe the United States will be the economic growth leader in the world, while the European Central Bank [ECB] continues to provide liquidity to eurozone economies, seeking to stimulate growth in the region. We think the outlook for European interest rates is more favorable than the outlook for U.S. rates because the ECB is likely to keep rates low for some time, while the Fed appears poised to begin raising rates. Accordingly, European bond markets look comparatively more appealing to us over the balance of this year and into 2015.

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

The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice.

Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

Portfolio Manager Robert J. Kea is Co-Head of Global Asset Allocation at Putnam. He holds an M.B.A. from the Bentley University Graduate School of Business and a B.A. from the University of Massachusetts, Amherst. He joined Putnam in 1989 and has been in the investment industry since 1988.

In addition to Bob, your fund’s portfolio managers are James A. Fetch; Joshua B. Kutin, CFA; Robert J. Schoen; and Jason R. Vaillancourt, CFA.

Dynamic Asset Allocation Growth Fund     9

IN THE NEWS

Tumbling oil prices, which dropped at least 20% from June to October 2014, signaled the beginning of a bear market caused by a vast oversupply of oil and weakening global demand. Shale gas and oil production extraction methods have helped boost U.S. oil production to 8.7 million barrels per day in September, the highest since July 1986, according to the Energy Information Administration. This output has greatly increased oil supplies worldwide. Rather than focus on lowering production in order to push prices higher, the 12-nation Organization of Petroleum Exporting Countries (OPEC) has opted to increase output and sell off reserves at a deep discount to struggling economies in Asia and Europe. Falling demand is also playing a role in the price drop. The International Energy Agency has cut its 2014 and 2015 estimates for oil demand to levels last seen in 2009, the most recent global recessionary period. With continued downward pressure on the world’s oil markets, there is a silver lining — some U.S. drivers have seen gasoline prices dip below $3 per gallon.

10     Dynamic Asset Allocation Growth Fund

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended September 30, 2014, the end of its most recent fiscal year. In accordance with regulatory requirements for mutual funds, we also include expense information taken from the fund’s current prospectus. Performance should always be considered in light of a fund’s investment strategy. Data represent past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance information does not reflect any deduction for taxes a shareholder may owe on fund distributions or on the redemption of fund shares. For the most recent month-end performance, please visit the Individual Investors section at putnam.com or call Putnam at 1-800-225-1581. Class R, R5, R6, and Y shares are not available to all investors. See the Terms and Definitions section in this report for definitions of the share classes offered by your fund.

Fund performance Total return for periods ended 9/30/14

	Class A		Class B		Class C		Class M		Class R	Class R5	Class R6	Class Y
(inception dates)	(2/8/94)		(2/16/94)		(9/1/94)		(2/3/95)		(1/21/03)	(7/2/12)	(7/2/12)	(7/14/94)
	Before sales charge	After sales charge	Before CDSC	After CDSC	Before CDSC	After CDSC	Before sales charge	After sales charge	Net  asset value	Net  asset value	Net  asset value	Net  asset value
Annual average
(life of fund)	7.86%	7.55%	7.55%	7.55%	7.03%	7.03%	7.32%	7.14%	7.58%	8.12%	8.14%	8.12%
10 years	109.66	97.60	97.90	97.90	94.83	94.83	99.51	92.53	104.04	114.69	115.19	114.64
Annual average	7.68	7.05	7.06	7.06	6.90	6.90	7.15	6.77	7.39	7.94	7.97	7.94
5 years	77.74	67.52	71.31	69.31	71.21	71.21	73.33	67.27	75.47	79.92	80.35	79.88
Annual average	12.19	10.87	11.37	11.11	11.35	11.35	11.63	10.84	11.90	12.47	12.52	12.46
3 years	67.72	58.08	64.14	61.14	64.14	64.14	65.38	59.59	66.65	69.07	69.47	69.03
Annual average	18.81	16.49	17.96	17.24	17.96	17.96	18.26	16.86	18.56	19.13	19.22	19.12
1 year	14.29	7.72	13.45	8.45	13.49	12.49	13.71	9.73	14.06	14.59	14.74	14.59

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After-sales-charge returns for class A and M shares reflect the deduction of the maximum 5.75% and 3.50% sales charge, respectively, levied at the time of purchase. Class B share returns after contingent deferred sales charge (CDSC) reflect the applicable CDSC, which is 5% in the first year, declining over time to 1% in the sixth year, and is eliminated thereafter. Class C share returns after CDSC reflect a 1% CDSC for the first year that is eliminated thereafter. Class R, R5, R6, and Y shares have no initial sales charge or CDSC. Performance for class B, C, M, R, and Y shares before their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares, except for class Y shares, for which 12b-1 fees are not applicable. Performance for class R5 and R6 shares prior to their inception is derived from the historical performance of class Y shares and has not been adjusted for the lower investor servicing fees applicable to class R5 and R6 shares; had it, returns would have been higher.

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

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

Dynamic Asset Allocation Growth Fund     11

Comparative index returns For periods ended 9/30/14

	Russell 3000 Index	Putnam Growth Blended Benchmark	Lipper Mixed-Asset Target Allocation Growth Funds category average*
Annual average (life of fund)	9.32%	—†	7.46%
10 years	124.78	115.15%	87.81
Annual average	8.44	7.96	6.45
5 years	108.02	76.27	62.25
Annual average	15.78	12.00	10.12
3 years	86.44	60.72	50.06
Annual average	23.08	17.14	14.45
1 year	17.76	12.43	10.58

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

*Over the 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 9/30/14, there were 568, 508, 473, 318, and 59 funds, respectively, in this Lipper category.

†The fund’s secondary benchmark, the Putnam Growth Blended Benchmark, was introduced on 12/31/94, which post-dates the inception of the fund’s class A shares.

Change in the value of a $10,000 investment ($9,425 after sales charge)

Cumulative total return from 9/30/04 to 9/30/14

Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B and class C shares would have been valued at $19,790 and $19,483, respectively, and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class M shares ($9,650 after sales charge) would have been valued at $19,253. A $10,000 investment in the fund’s class R, R5, R6, and Y shares would have been valued at $20,404, $21,469, $21,519, and $21,464, respectively.

12     Dynamic Asset Allocation Growth Fund

Fund price and distribution information For the 12-month period ended 9/30/14

Distributions	Class A		Class B	Class C	Class M		Class R	Class R5	Class R6	Class Y
Number	1		1	1	1		1	1	1	1
Income	$0.232		$0.107	$0.127	$0.157		$0.191	$0.296	$0.291	$0.264
Capital gains	—		—	—	—		—	—	—	—
Total	$0.232		$0.107	$0.127	$0.157		$0.191	$0.296	$0.291	$0.264
Share value	Before sales charge	After sales charge	Net asset value	Net asset value	Before sales charge	After sales charge	Net asset value	Net asset value	Net asset value	Net asset value
9/30/13	$15.60	$16.55	$15.28	$14.94	$15.30	$15.85	$15.33	$15.76	$15.77	$15.73
9/30/14	17.58	18.65	17.22	16.82	17.23	17.85	17.28	17.74	17.78	17.74

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

Your fund’s expenses

As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. Using the following information, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You may also pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial representative.

Expense ratios

	Class A	Class B	Class C	Class M	Class R	Class R5	Class R6	Class Y
Total annual operating expenses for the fiscal year ended 9/30/13	1.10%	1.85%	1.85%	1.60%	1.35%	0.83%	0.73%	0.85%
Annualized expense ratio for the six-month period ended 9/30/14*	1.04%	1.79%	1.79%	1.54%	1.29%	0.80%	0.70%	0.79%

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

Expenses are shown as a percentage of average net assets.

*For the fund’s most recent fiscal half year; may differ from expense ratios based on one-year data in the financial highlights.

Dynamic Asset Allocation Growth Fund     13

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in the fund from April 1, 2014, to September 30, 2014. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

	Class A	Class B	Class C	Class M	Class R	Class R5	Class R6	Class Y
Expenses paid per $1,000*†	$5.29	$9.09	$9.10	$7.83	$6.56	$4.08	$3.57	$4.02
Ending value (after expenses)	$1,030.50	$1,026.80	$1,026.90	$1,028.00	$1,029.80	$1,032.00	$1,032.50	$1,032.00

*Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 9/30/14. The expense ratio may differ for each share class.

†Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period; and then dividing that result by the number of days in the year.

Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended September 30, 2014, use the following calculation method. To find the value of your investment on April 1, 2014, call Putnam at 1-800-225-1581.

Compare expenses using the SEC’s method

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

	Class A	Class B	Class C	Class M	Class R	Class R5	Class R6	Class Y
Expenses paid per $1,000*†	$5.27	$9.05	$9.05	$7.79	$6.53	$4.05	$3.55	$4.00
Ending value (after expenses)	$1,019.85	$1,016.09	$1,016.09	$1,017.35	$1,018.60	$1,021.06	$1,021.56	$1,021.11

*Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 9/30/14. The expense ratio may differ for each share class.

†Expenses are calculated by multiplying the expense ratio by the average account value for the six-month period; then multiplying the result by the number of days in the six-month period; and then dividing that result by the number of days in the year.

14     Dynamic Asset Allocation Growth Fund

Terms and definitions

Important terms

Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.

Before sales charge, or net asset value, is the price, or value, of one share of a mutual fund, without a sales charge. Before-sales-charge figures fluctuate with market conditions, and are calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

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

Contingent deferred sales charge (CDSC) is generally a charge applied at the time of the redemption of class B or C shares and assumes redemption at the end of the period. Your fund’s class B CDSC declines over time from a 5% maximum during the first year to 1% during the sixth year. After the sixth year, the CDSC no longer applies. The CDSC for class C shares is 1% for one year after purchase.

Share classes

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

Class B shares are not subject to an initial sales charge. They may be subject to a CDSC.

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

Class M shares have a lower initial sales charge and a higher 12b-1 fee than class A shares and no CDSC (except on certain redemptions of shares bought without an initial sales charge).

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

Class R5 shares and class R6 shares are not subject to an initial sales charge or CDSC, and carry no 12b-1 fee. They are only available to employer-sponsored retirement plans.

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

Fixed-income terms

Current rate is the annual rate of return earned from dividends or interest of an investment. Current rate is expressed as a percentage of the price of a security, fund share, or principal investment.

Mortgage-backed security (MBS), also known as a mortgage “pass-through,” is a type of asset-backed security that is secured by a mortgage or collection of mortgages. The following are types of MBSs:

•Agency “pass-through” has its principal and interest backed by a U.S. government agency, such as the Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac).

•Collateralized mortgage obligation (CMO) represents claims to specific cash flows from pools of home mortgages. The streams of principal and interest payments on the mortgages are distributed to the different classes of CMO interests in “tranches.” Each tranche may have different principal balances, coupon rates, prepayment risks, and maturity dates. A CMO is highly sensitive to changes in interest rates and any resulting change in the rate at which homeowners sell their properties, refinance, or otherwise prepay loans. CMOs are subject to prepayment, market, and liquidity risks.

•Interest-only (IO) security is a type of CMO in which the underlying asset is the interest portion of mortgage, Treasury, or bond payments.

•Non-agency residential mortgage-backed security (RMBS) is an MBS not backed by Fannie Mae, Ginnie Mae, or Freddie Mac. One type of RMBS is an Alt-A mortgage-backed security.

•Commercial mortgage-backed security (CMBS) is secured by the loan on a commercial property.

Dynamic Asset Allocation Growth Fund     15

Yield curve is a graph that plots the yields of bonds with equal credit quality against their differing maturity dates, ranging from shortest to longest. It is used as a benchmark for other debt, such as mortgage or bank lending rates.

Comparative indexes

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

BofA Merrill Lynch U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

Putnam Growth Blended Benchmark is a benchmark administered by Putnam Management, comprising 60% the Russell 3000 Index, 15% the MSCI EAFE Index (ND), 15% the Barclays U.S. Aggregate Bond Index, 5% the JPMorgan Developed High Yield Index, and 5% the MSCI Emerging Markets Index (ND).

Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies.

S&P 500 Index is an unmanaged index of common stock performance.

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

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

Other information for shareholders

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2014, are available in the Individual Investors section of putnam.com, and on the Securities and Exchange Commission (SEC) website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain the fund’s Form N-Q on the SEC’s website at www.sec.gov. In addition, the fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC’s website or the operation of the Public Reference Room.

Trustee and employee fund ownership

Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of September 30, 2014, Putnam employees had approximately $489,000,000 and the Trustees had approximately $137,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.

16     Dynamic Asset Allocation Growth Fund

Important notice regarding Putnam’s privacy policy

In order to conduct business with our shareholders, we must obtain certain personal information such as account holders’ names, addresses, Social Security numbers, and dates of birth. Using this information, we are able to maintain accurate records of accounts and transactions.

It is our policy to protect the confidentiality of our shareholder information, whether or not a shareholder currently owns shares of our funds. In particular, it is our policy not to sell information about you or your accounts to outside marketing firms. We have safeguards in place designed to prevent unauthorized access to our computer systems and procedures to protect personal information from unauthorized use.

Under certain circumstances, we must share account information with outside vendors who provide services to us, such as mailings and proxy solicitations. In these cases, the service providers enter into confidentiality agreements with us, and we provide only the information necessary to process transactions and perform other services related to your account. Finally, it is our policy to share account information with your financial representative, if you’ve listed one on your Putnam account.

Dynamic Asset Allocation Growth Fund     17

Trustee approval of management contract

General conclusions

The Board of Trustees of the Putnam funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of your fund’s management contract with Putnam Investment Management, LLC (“Putnam Management”), the sub-management contract with respect to your fund between Putnam Management and its affiliate, Putnam Investments Limited (“PIL”), and the sub-advisory contract among Putnam Management, PIL, and another affiliate, The Putnam Advisory Company (“PAC”). The Board of Trustees, with the assistance of its Contract Committee, requests and evaluates all information it deems reasonably necessary under the circumstances in connection with its annual contract review. The Contract Committee consists solely of Trustees who are not “interested persons” (as this term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the Putnam funds (“Independent Trustees”).

At the outset of the review process, members of the Board’s independent staff and independent legal counsel met with representatives of Putnam Management to review the annual contract review materials furnished to the Contract Committee during the course of the previous year’s review and to discuss possible changes in these materials that might be necessary or desirable for the coming year. Following these discussions and in consultation with the Contract Committee, the Independent Trustees’ independent legal counsel requested that Putnam Management furnish specified information, together with any additional information that Putnam Management considered relevant, to the Contract Committee. Over the course of several months ending in June 2014, the Contract Committee met on a number of occasions with representatives of Putnam Management, and separately in executive session, to consider the information that Putnam Management provided, as well as supplemental information provided in response to additional requests made by the Contract Committee. Throughout this process, the Contract Committee was assisted by the members of the Board’s independent staff and by independent legal counsel for the Putnam funds and the Independent Trustees.

In May 2014, the Contract Committee met in executive session to discuss and consider its preliminary recommendations with respect to the continuance of the contracts. At the Trustees’ June 20, 2014 meeting, the Contract Committee met in executive session with the other Independent Trustees to review a summary of the key financial, performance and other data that the Contract Committee considered in the course of its review. The Contract Committee then presented its written report, which summarized the key factors that the Committee had considered and set forth its final recommendations. The Contract Committee then recommended, and the Independent Trustees approved, the continuance of your fund’s management, sub-management and sub-advisory contracts, effective July 1, 2014. (Because PIL and PAC are affiliates of Putnam Management and Putnam Management remains fully responsible for all services provided by PIL and PAC, the Trustees have not attempted to evaluate PIL or PAC as separate entities, and all subsequent references to Putnam Management below should be deemed to include reference to PIL and PAC as necessary or appropriate in the context.)

The Independent Trustees’ approval was based on the following conclusions:

•That the fee schedule in effect for your fund represented reasonable compensation in light of the nature and quality of the services being

18     Dynamic Asset Allocation Growth Fund

provided to the fund, the fees paid by competitive funds, and the costs incurred by Putnam Management in providing services to the fund; and

•That the fee schedule in effect for your fund represented an appropriate sharing between fund shareholders and Putnam Management of such economies of scale as may exist in the management of the fund at current asset levels.

These conclusions were based on a comprehensive consideration of all information provided to the Trustees and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the management arrangements for your fund and the other Putnam funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that some aspects of the arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of fee arrangements in previous years. For example, with some minor exceptions, the current fee arrangements under the management contracts for the Putnam funds were implemented at the beginning of 2010 following extensive review by the Contract Committee and discussions with representatives of Putnam Management, as well as approval by shareholders. Shareholders also voted overwhelmingly to approve these fee arrangements in early 2014, when they were asked to approve new management contracts (with the same fees and substantially identical other provisions) following the possible termination of the previous management contracts as a result of the death of the Honorable Paul G. Desmarais. (Mr. Desmarais, both directly and through holding companies, controlled a majority of the voting shares of Power Corporation of Canada, which (directly and indirectly) is the majority owner of Putnam Management. Mr. Desmarais’ voting control of shares of Power Corporation of Canada was transferred to The Desmarais Family Residuary Trust upon his death and this transfer, as a technical matter, may have constituted an “assignment” within the meaning of the 1940 Act, causing the Putnam funds’ management contracts to terminate automatically.)

Management fee schedules and total expenses

The Trustees reviewed the management fee schedules in effect for all Putnam funds, including fee levels and breakpoints. The Trustees also reviewed the total expenses of each Putnam fund, recognizing that in most cases management fees represented the major, but not the sole, determinant of total costs to shareholders.

In reviewing fees and expenses, the Trustees generally focus their attention on material changes in circumstances — for example, changes in assets under management, changes in a fund’s investment style, changes in Putnam Management’s operating costs or profitability, or changes in competitive practices in the mutual fund industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not warrant changes to the management fee structure of your fund.

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

Dynamic Asset Allocation Growth Fund     19

As in the past, the Trustees also focused on the competitiveness of each fund’s total expense ratio. In order to ensure that expenses of the Putnam funds continue to meet competitive standards, the Trustees and Putnam Management have implemented certain expense limitations. These expense limitations were: (i) a contractual expense limitation applicable to all retail open-end funds of 32 basis points on investor servicing fees and expenses and (ii) a contractual expense limitation applicable to all open-end funds of 20 basis points on so-called “other expenses” (i.e., all expenses exclusive of management fees, investor servicing fees, distribution fees, investment-related expenses, interest, taxes, brokerage commissions, extraordinary expenses and acquired fund fees and expenses). These expense limitations serve in particular to maintain competitive expense levels for funds with large numbers of small shareholder accounts and funds with relatively small net assets. Most funds, including your fund, had sufficiently low expenses that these expense limitations did not apply. Putnam Management’s support for these expense limitation arrangements was an important factor in the Trustees’ decision to approve the continuance of your fund’s management, sub-management and sub-advisory contracts.

The Trustees reviewed comparative fee and expense information for a custom group of competitive funds selected by Lipper Inc. (“Lipper”). This comparative information included your fund’s percentile ranking for effective management fees and total expenses (excluding any applicable 12b-1 fee), which provides a general indication of your fund’s relative standing. In the custom peer group, your fund ranked in the second quintile in effective management fees (determined for your fund and the other funds in the custom peer group based on fund asset size and the applicable contractual management fee schedule) and in the third quintile in total expenses (excluding any applicable 12b-1 fees) as of December 31, 2013 (the first quintile representing the least expensive funds and the fifth quintile the most expensive funds). The fee and expense data reported by Lipper as of December 31, 2013 reflected the most recent fiscal year-end data available in Lipper’s database at that time.

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

The information examined by the Trustees as part of their annual contract review for the Putnam funds has included for many years information regarding fees charged by Putnam Management and its affiliates to institutional clients such as defined benefit pension plans, college endowments, and the like. This information included comparisons of those fees with fees charged to the Putnam funds, as well as an assessment of the differences in the services provided to these different types of clients. The

20     Dynamic Asset Allocation Growth Fund

Trustees observed that the differences in fee rates between institutional clients and mutual funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients may reflect historical competitive forces operating in separate markets. The Trustees considered the fact that in many cases fee rates across different asset classes are higher on average for mutual funds than for institutional clients, as well as the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to its institutional clients. The Trustees did not rely on these comparisons to any significant extent in concluding that the management fees paid by your fund are reasonable.

Investment performance

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

The Trustees considered that 2013 was a year of strong competitive performance for many of the Putnam funds, with only a relatively small number of exceptions. They noted that this strong performance was exemplified by the fact that the Putnam funds were recognized by Barron’s as the second-best performing mutual fund complex for both 2013 and the five-year period ended December 31, 2013. They also noted, however, the disappointing investment performance of some funds for periods ended December 31, 2013 and considered information provided by Putnam Management regarding the factors contributing to the underperformance and actions being taken to improve the performance of these particular funds. The Trustees indicated their intention to continue to monitor performance trends to assess the effectiveness of these efforts and to evaluate whether additional actions to address areas of underperformance are warranted.

For purposes of evaluating investment performance, the Trustees generally focus on competitive industry rankings for the one-year, three-year and five-year periods. For a number of Putnam funds with relatively unique investment mandates for which meaningful competitive performance rankings are not considered available, the Trustees evaluated performance based on comparisons of fund returns with the returns of selected investment benchmarks. In the case of your fund, the Trustees considered that its class A share cumulative total return performance at net asset value was in the following quartiles of its Lipper peer group (Lipper Mixed-Asset Target Allocation Growth Funds) for the one-year, three-year and five-year periods ended December 31, 2013 (the first quartile representing the best-performing funds and the fourth quartile the worst-performing funds):

One-year period	1st
Three-year period	1st
Five-year period	1st

For the one-year and five-year periods ended December 31, 2013, your fund’s performance

Dynamic Asset Allocation Growth Fund     21

was in the top decile of its Lipper peer group. Over the one-year, three-year and five-year periods ended December 31, 2013, there were 573, 510 and 474 funds, respectively, in your fund’s Lipper peer group. (When considering performance information, shareholders should be mindful that past performance is not a guarantee of future results.)

Brokerage and soft-dollar allocations; investor servicing

The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contract with your fund. These include benefits related to brokerage allocation and the use of soft dollars, whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research services that are expected to be useful to Putnam Management in managing the assets of the fund and of other clients. Subject to policies established by the Trustees, soft dollars generated by these means are used primarily to acquire brokerage and research services that enhance Putnam Management’s investment capabilities and supplement Putnam Management’s internal research efforts. However, the Trustees noted that a portion of available soft dollars continues to be used to pay fund expenses. The Trustees indicated their continued intent to monitor regulatory and industry developments in this area with the assistance of their Brokerage Committee and also indicated their continued intent to monitor the allocation of the Putnam funds’ brokerage in order to ensure that the principle of seeking best price and execution remains paramount in the portfolio trading process.

Putnam Management may also receive benefits from payments that the funds make to Putnam Management’s affiliates for investor or distribution services. In conjunction with the annual review of your fund’s management, sub-management and sub-advisory contracts, the Trustees reviewed your fund’s investor servicing agreement with Putnam Investor Services, Inc. (“PSERV”) and its distributor’s contracts and distribution plans with Putnam Retail Management Limited Partnership (“PRM”), both of which are affiliates of Putnam Management. The Trustees concluded that the fees payable by the funds to PSERV and PRM, as applicable, for such services are reasonable in relation to the nature and quality of such services, the fees paid by competitive funds, and the costs incurred by PSERV and PRM, as applicable, in providing such services.

22     Dynamic Asset Allocation Growth Fund

Financial statements

A note about your fund’s auditors

Between July 18, 2013 and December 16, 2013, which included a portion of your fund’s fiscal year, a non-U.S. member firm in
PricewaterhouseCoopers LLP’s (“PwC”) global network of firms had an investment in certain non-U.S. funds that became affiliated with Putnam Investments as a result of the acquisition of the funds’ advisor by Putnam’s parent company, Great-West Lifeco Inc. The investment consisted of pension plan assets for the benefit of the member firm’s personnel. This investment is inconsistent with the SEC’s independence rules applicable to auditors. Although upon the disposition of the investment by the member firm on December 16, 2013, PwC and its affiliates took all necessary steps to eliminate this issue, the requirements of the SEC’s independence rules were not met for your fund’s fiscal year because the SEC’s rules require an audit firm to be independent for the entire fiscal year under audit. Based on its knowledge of the facts and its experience with PwC, the Audit and Compliance Committee of your fund’s Board of Trustees concluded that the investment by the PwC member firm would not affect PwC’s ability to render an objective audit opinion to your fund. Based on this conclusion and consideration of the potential risks that the disruption of a change of auditor could present, the Audit and Compliance Committee determined that PwC should continue to act as auditor for your fund.

These sections of the report, as well as the accompanying Notes, preceded by the Report of Independent Registered Public Accounting Firm, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal year.

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

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

Dynamic Asset Allocation Growth Fund     23

Report of Independent Registered Public Accounting Firm

To the Trustees of Putnam Asset Allocation Funds and
Shareholders of Putnam Dynamic Asset Allocation Growth Fund:

In our opinion, the accompanying statement of assets and liabilities, including the portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Putnam Dynamic Asset Allocation Growth Fund (the “fund”) at September 30, 2014, and the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of investments owned at September 30, 2014 by correspondence with the custodian, brokers, and transfer agent, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
November 10, 2014

24     Dynamic Asset Allocation Growth Fund

The fund’s portfolio 9/30/14

	COMMON STOCKS (63.1%)*	Shares	Value
	Banking (5.2%)
	Access National Corp.	8,692	$141,071
	Alpha Bank A.E. (Greece) †	789,256	609,248
	Australia & New Zealand Banking Group, Ltd. (Australia)	30,586	826,441
	Banco Bilbao Vizcaya Argentaria SA (Rights) (Spain) †	90,142	8,994
	Banco Bilbao Vizcaya Argentaria SA (BBVA) (Spain)	90,142	1,079,701
	Banco Bradesco SA ADR (Brazil)	63,629	906,713
	Banco Latinoamericano de Exportaciones SA Class E (Panama)	19,345	593,505
	Banco Santander SA (Spain)	133,682	1,278,902
	Bank of Ireland (Ireland) †	1,378,862	540,150
	Bank of New York Mellon Corp. (The)	152,500	5,906,325
	Bank of Queensland, Ltd. (Australia)	35,073	355,692
	Bank of Yokohama, Ltd. (The) (Japan)	175,000	963,315
	Bank Rakyat Indonesia Persero Tbk PT (Indonesia)	530,300	450,610
	Bankia SA (Spain) †	471,089	872,685
	Barclays PLC (United Kingdom)	221,619	816,424
	BNP Paribas SA (France)	14,471	956,945
	BofI Holding, Inc. †	5,700	414,447
	Cardinal Financial Corp.	16,735	285,666
	China Construction Bank Corp. (China)	1,612,000	1,130,782
	Citizens & Northern Corp.	10,818	205,542
	City National Corp.	32,992	2,496,505
	Commonwealth Bank of Australia (Australia)	38,048	2,498,419
	Compartamos SAB de CV (Mexico)	461,368	987,627
	Credicorp, Ltd. (Peru)	8,842	1,356,274
	Credit Agricole SA (France)	94,142	1,414,490
	Credit Suisse Group AG (Switzerland)	19,481	537,043
	DBS Group Holdings, Ltd. (Singapore)	65,000	937,142
	DNB ASA (Norway)	10,598	198,201
	Dubai Islamic Bank PJSC (United Arab Emirates)	796,891	1,792,034
	East West Bancorp, Inc.	6,056	205,904
	Erste Group Bank AG (Czech Republic)	3,873	88,287
	Farmers Capital Bank Corp. †	7,838	176,590
	Financial Institutions, Inc.	11,176	251,236
	First Community Bancshares Inc.	10,552	150,788
	First NBC Bank Holding Co. †	6,577	215,397
	First Niagara Financial Group, Inc.	138,700	1,155,371
	FirstMerit Corp.	13,147	231,387
	FirstRand, Ltd. (South Africa)	116,008	440,811
	Flushing Financial Corp.	11,074	202,322
	Grupo Financiero Banorte SAB de CV (Mexico)	268,991	1,722,640
	Hang Seng Bank, Ltd. (Hong Kong)	58,500	939,704
	Hanmi Financial Corp.	22,158	446,705
	Heartland Financial USA, Inc.	7,493	178,933
	Heritage Financial Group, Inc.	9,573	193,279
	Industrial & Commercial Bank of China, Ltd. (China)	1,619,000	1,010,376
	ING Groep NV GDR (Netherlands) †	78,902	1,122,285

Dynamic Asset Allocation Growth Fund     25

	COMMON STOCKS (63.1%)* cont.	Shares	Value
	Banking cont.
	Itau Unibanco Holding SA ADR (Preference) (Brazil)	103,990	$1,443,381
	Joyo Bank, Ltd. (The) (Japan)	150,000	736,984
	JPMorgan Chase & Co.	321,177	19,347,702
	Lloyds Banking Group PLC (United Kingdom) †	1,820,883	2,256,292
	MainSource Financial Group, Inc.	16,637	286,988
	Meta Financial Group, Inc.	6,136	216,355
	Metro Bank PLC (acquired 1/15/14, cost $189,830) (Private) (United Kingdom) † ΔΔ F	8,918	184,971
	Mizuho Financial Group, Inc. (Japan)	90,000	160,850
	National Australia Bank, Ltd. (Australia)	31,436	891,813
	Natixis (France)	72,645	499,652
	OFG Bancorp (Puerto Rico)	9,829	147,238
	Pacific Premier Bancorp, Inc. †	10,475	147,174
	PacWest Bancorp	9,095	374,987
	Peoples Bancorp, Inc.	10,321	245,124
	Philippine National Bank (Philippines) †	371,654	724,549
	PNC Financial Services Group, Inc.	147,599	12,631,522
	Popular, Inc. (Puerto Rico) †	8,754	257,674
	Republic Bancorp, Inc. Class A	6,711	158,984
	Resona Holdings, Inc. (Japan)	280,000	1,580,240
	Skandinaviska Enskilda Banken AB (Sweden)	78,926	1,048,449
	Societe Generale SA (France)	3,978	202,197
	State Street Corp.	112,100	8,251,681
	Sumitomo Mitsui Financial Group, Inc. (Japan)	39,700	1,620,063
	Swedbank AB Class A (Sweden)	38,047	953,201
	TSB Banking Group PLC (United Kingdom) † S	66,348	297,592
	UniCredit SpA (Italy)	182,428	1,428,596
	United Community Banks, Inc.	11,132	183,233
	Wells Fargo & Co.	21,882	1,135,019
	Westpac Banking Corp. (Australia)	35,093	983,137
			97,688,556
	Basic materials (3.4%)
	Aceto Corp.	7,668	148,146
	Amcor, Ltd. (Australia)	73,403	728,662
	Andersons, Inc. (The)	6,690	420,667
	Antofagasta PLC (United Kingdom)	48,211	562,472
	ArcelorMittal SA (France)	60,935	836,364
	Assa Abloy AB Class B (Sweden)	8,320	426,658
	BASF SE (Germany)	15,475	1,419,372
	BHP Billiton PLC (Australia)	30,779	854,543
	BHP Billiton, Ltd. (Australia)	50,937	1,498,741
	Cabot Corp.	5,232	265,629
	Cambrex Corp. †	27,194	507,984
	Cemex SAB de CV ADR (Mexico)	48,097	627,185
	Chemtura Corp. †	18,661	435,361
	China Singyes Solar Technologies Holdings, Ltd. (China)	233,000	414,382
	Compagnie de Saint-Gobain (France)	3,217	146,526
	Croda International PLC (United Kingdom)	4,393	145,672

26     Dynamic Asset Allocation Growth Fund

	COMMON STOCKS (63.1%)* cont.	Shares	Value
	Basic materials cont.
	Domtar Corp. (Canada)	4,334	$152,253
	Dow Chemical Co. (The)	227,300	11,919,612
	EMS-Chemie Holding AG (Switzerland)	1,812	750,565
	Fortescue Metals Group, Ltd. (Australia)	28,942	87,596
	Glencore Xstrata PLC (United Kingdom)	178,851	989,592
	Hi-Crush Partners LP (Units)	8,731	450,170
	Hitachi Metals, Ltd. (Japan)	68,000	1,222,856
	Horsehead Holding Corp. †	29,396	485,916
	Innophos Holdings, Inc.	6,015	331,366
	Innospec, Inc.	7,569	271,727
	IRB Infrastructure Developers, Ltd. (India)	186,011	693,925
	KapStone Paper and Packaging Corp. †	18,611	520,550
	Koninklijke Boskalis Westminster NV (Netherlands)	16,035	897,136
	Kraton Performance Polymers, Inc. †	8,023	142,890
	L.B. Foster Co. Class A	6,039	277,432
	Landec Corp. †	49,264	603,484
	Limoneira Co.	5,182	122,762
	LSB Industries, Inc. †	17,961	641,387
	LyondellBasell Industries NV Class A	72,198	7,845,035
	Minerals Technologies, Inc.	3,285	202,717
	Mining and Metallurgical Co. GMK Norilsk Nickel OJSC ADR (Russia)	31,964	596,129
	Monsanto Co.	2,700	303,777
	Mota-Engil Africa (Rights) (Portugal) † F	98,989	107,649
	Mota-Engil SGPS SA (Portugal)	193,544	1,238,101
	Nippon Paint Holdings Co., Ltd. (Japan)	37,000	833,588
	NN, Inc.	21,895	585,034
	OM Group, Inc.	18,924	491,078
	Packaging Corp. of America	17,300	1,104,086
	Pembangunan Perumahan Persero Tbk PT (Indonesia)	3,148,900	553,771
	PTT Global Chemical PCL (Thailand)	273,200	513,961
	Reliance Steel & Aluminum Co.	14,500	991,800
	Rio Tinto PLC (United Kingdom)	16,025	786,795
	S&W Seed Co. † S	18,780	79,627
	Sasol, Ltd. (South Africa)	12,187	661,217
	Sherwin-Williams Co. (The)	32,800	7,182,872
	Siam Cement PCL (The) NVDR (Thailand)	42,500	586,403
	Solvay SA (Belgium)	2,158	330,837
	Sumitomo Metal Mining Co., Ltd. (Japan)	54,000	761,259
	Sung Kwang Bend Co., Ltd. (South Korea)	23,175	400,576
	Symrise AG (Germany)	4,934	262,280
	Syngenta AG (Switzerland)	2,804	890,006
	Taisei Corp. (Japan)	27,000	152,500
	ThyssenKrupp AG (Germany) †	52,785	1,386,032
	Trex Co., Inc. †	11,651	402,775
	Tronox, Ltd. Class A	9,850	256,593
	U.S. Silica Holdings, Inc.	6,415	401,002
	UPL, Ltd. (India)	110,908	609,458
	UPM-Kymmene OYJ (Finland)	54,382	771,456

Dynamic Asset Allocation Growth Fund     27

	COMMON STOCKS (63.1%)* cont.	Shares	Value
	Basic materials cont.
	Veidekke ASA (Norway)	19,097	$192,186
	voestalpine AG (Austria)	8,068	318,871
	Wendel SA (France)	7,075	799,741
	Yamato Kogyo Co., Ltd. (Japan)	3,700	123,827
	Zep, Inc.	16,663	233,615
			62,956,237
	Capital goods (4.7%)
	ABB, Ltd. (Switzerland)	47,961	1,073,083
	Airbus Group NV (France)	12,968	814,001
	Alliant Techsystems, Inc.	4,094	522,558
	Alstom SA (France) †	5,413	184,866
	Altra Industrial Motion Corp.	16,079	468,864
	Astronics Corp. †	5,148	245,466
	Atlas Copco AB Class A (Sweden)	50,833	1,453,064
	AviChina Industry & Technology Co., Ltd. (China)	284,000	203,175
	AZZ, Inc.	6,320	263,986
	Ball Corp.	26,200	1,657,674
	Canon, Inc. (Japan)	29,350	954,533
	Caterpillar, Inc.	55,200	5,466,456
	Chase Corp.	8,822	274,541
	China Railway Group, Ltd. (China)	1,423,000	755,184
	Coway Co., Ltd. (South Korea)	3,052	243,010
	Crown Holdings, Inc. †	128,300	5,711,916
	Cummins, Inc.	43,152	5,695,201
	Daifuku Co., Ltd. (Japan)	14,100	165,950
	Daikin Industries, Ltd. (Japan)	3,300	204,793
	Delphi Automotive PLC (United Kingdom)	9,898	607,143
	Douglas Dynamics, Inc.	14,173	276,374
	DXP Enterprises, Inc. †	3,049	224,650
	Embraer SA ADR (Brazil)	15,369	602,772
	Faurecia (France)	6,187	197,041
	Franklin Electric Co., Inc.	7,011	243,562
	Gaztransport Et Technigaz SA (France)	3,094	183,025
	Generac Holdings, Inc. †	6,218	252,078
	Greenbrier Cos., Inc. (The) S	16,640	1,221,043
	Hitachi, Ltd. (Japan)	18,000	136,994
	Hota Industrial Manufacturing Co., Ltd. (Taiwan)	328,524	600,579
	Hyster-Yale Materials Holdings, Inc.	3,282	235,057
	Hyundai Engineering & Construction Co., Ltd. (South Korea)	15,220	868,023
	Hyundai Mobis Co., Ltd. (South Korea)	4,582	1,116,554
	IDEX Corp.	31,500	2,279,655
	II-VI, Inc. †	26,411	310,857
	Ingersoll-Rand PLC	43,100	2,429,116
	JGC Corp. (Japan)	30,000	819,501
	Joy Global, Inc.	38,200	2,083,428
	JTEKT Corp (Japan)	10,000	167,471
	Kadant, Inc.	9,075	354,379
	Leggett & Platt, Inc.	49,600	1,732,032

28     Dynamic Asset Allocation Growth Fund

	COMMON STOCKS (63.1%)* cont.	Shares	Value
	Capital goods cont.
	Lextar Electronics Corp. (Taiwan)	844,000	$843,780
	Middleby Corp. (The) †	5,308	467,794
	Miller Industries, Inc.	10,911	184,396
	Mitsubishi Electric Corp. (Japan)	123,000	1,639,880
	MSA Safety, Inc.	3,723	183,916
	Northrop Grumman Corp.	61,400	8,090,064
	NSK, Ltd. (Japan)	12,000	171,064
	Orbital Sciences Corp. †	16,625	462,175
	OSRAM Licht AG (Germany) †	13,616	506,621
	Polypore International, Inc. †	2,295	89,298
	Raytheon Co.	118,379	12,029,674
	Rheinmetall AG (Germany)	2,294	110,020
	Roper Industries, Inc.	44,500	6,509,905
	Safran SA (France)	9,443	611,393
	Singapore Technologies Engineering, Ltd. (Singapore)	281,000	802,806
	SMC Corp. (Japan)	500	138,077
	Sound Global, Ltd. (China) † S	787,000	786,297
	Standard Motor Products, Inc.	15,482	533,045
	Standex International Corp.	4,348	322,361
	Stoneridge, Inc. †	24,331	274,210
	Tenneco, Inc. †	4,028	210,705
	THK Co., Ltd. (Japan)	33,900	844,785
	Tower International, Inc. †	17,790	448,130
	Vinci SA (France)	29,854	1,728,540
	Wabash National Corp. †	33,205	442,291
	WABCO Holdings, Inc. †	57,200	5,202,340
	WESCO International, Inc. †	5,551	434,421
			87,367,643
	Communication services (2.6%)
	Allot Communications, Ltd. (Israel) †	8,361	95,483
	Arris Group, Inc. †	4,971	140,953
	Aruba Networks, Inc. †	5,437	117,330
	BT Group PLC (United Kingdom)	215,536	1,320,259
	CalAmp Corp. †	16,111	283,876
	China Mobile, Ltd. (China)	136,500	1,602,294
	Com Hem Holding AB (Sweden) †	36,441	265,503
	Comcast Corp. Class A	249,831	13,435,911
	Deutsche Telekom AG (Germany)	67,902	1,025,686
	EchoStar Corp. Class A †	13,473	656,943
	Frontier Communications Corp.	58,220	379,012
	HSN, Inc.	2,606	159,930
	IDT Corp. Class B	9,238	148,362
	Inteliquent, Inc.	13,510	168,200
	Iridium Communications, Inc. † S	23,747	210,161
	Liberty Global PLC Ser. C (United Kingdom)	4,600	188,669
	Loral Space & Communications, Inc. †	4,363	313,307
	MTN Group, Ltd. (South Africa)	56,713	1,195,202
	NeuStar, Inc. Class A †	9,993	248,126

Dynamic Asset Allocation Growth Fund     29

	COMMON STOCKS (63.1%)* cont.	Shares	Value
	Communication services cont.
	Nippon Telegraph & Telephone (NTT) Corp. (Japan)	1,900	$118,249
	NTT DoCoMo, Inc. (Japan)	55,800	931,931
	Numericable Group SA (France) † S	2,576	137,435
	Orange (France)	59,885	897,148
	Quebecor, Inc. Class B (Canada)	10,000	251,261
	Ruckus Wireless, Inc. †	14,068	187,948
	ShoreTel, Inc. †	15,090	100,349
	SK Telecom Co., Ltd. (South Korea)	4,473	1,228,358
	Spark New Zealand, Ltd. (New Zealand)	82,093	190,410
	Spok Holdings, Inc.	12,661	164,720
	Tele2 AB Class B (Sweden)	31,760	382,980
	Telecom Italia SpA RSP (Italy)	429,821	380,936
	Telefonica SA (Spain)	56,794	877,568
	Telenor ASA (Norway)	36,984	811,553
	Telstra Corp., Ltd. (Australia)	265,152	1,226,680
	Ubiquiti Networks, Inc. † S	2,829	106,172
	Verizon Communications, Inc.	326,215	16,307,488
	Vodafone Group PLC (United Kingdom)	292,843	965,306
	Ziggo NV (Netherlands) †	7,938	370,605
			47,592,304
	Conglomerates (0.8%)
	AMETEK, Inc.	65,454	3,286,445
	Danaher Corp.	99,954	7,594,505
	Exor SpA (Italy)	14,495	560,238
	Marubeni Corp. (Japan)	45,000	308,260
	Mitsubishi Corp. (Japan)	31,800	651,767
	Siemens AG (Germany)	22,497	2,681,337
	Tyco International, Ltd.	5,800	258,506
	Vivendi SA (France)	6,387	153,925
			15,494,983
	Consumer cyclicals (7.5%)
	Adidas AG (Germany)	6,867	513,641
	ADT Corp. (The)	64,041	2,270,894
	ANN, Inc. †	11,908	489,776
	Apollo Tyres, Ltd. (India)	242,227	800,661
	Ascena Retail Group, Inc. †	10,190	135,527
	Ascent Capital Group, Inc. Class A †	1,298	78,140
	Atresmedia Corporacion de Medios de Comunicacion SA (Spain)	25,405	386,416
	Babcock International Group PLC (United Kingdom)	46,302	815,565
	Bayerische Motoren Werke (BMW) AG (Germany)	8,612	924,642
	Big Lots, Inc.	10,441	449,485
	Brown Shoe Co., Inc.	6,307	171,109
	Brunswick Corp.	10,769	453,806
	Bunzl PLC (United Kingdom)	33,421	868,326
	Bureau Veritas SA (France)	26,885	592,783
	CaesarStone Sdot-Yam, Ltd. (Israel)	3,591	185,583
	Carmike Cinemas, Inc. †	3,310	102,544
	Century Casinos, Inc. †	23,296	119,508
	China ZhengTong Auto Services Holdings, Ltd. (China)	1,523,500	891,012

30     Dynamic Asset Allocation Growth Fund

	COMMON STOCKS (63.1%)* cont.	Shares	Value
	Consumer cyclicals cont.
	CJ CGV Co., Ltd. (South Korea)	13,070	$663,000
	Compagnie Financiere Richemont SA (Switzerland)	11,563	947,561
	Compass Group PLC (United Kingdom)	89,785	1,450,100
	Conn’s, Inc. † S	22,408	678,290
	Continental AG (Germany)	8,532	1,622,263
	Cooper Tire & Rubber Co.	20,046	575,320
	Corporate Executive Board Co. (The)	2,663	159,966
	Ctrip.com International, Ltd. ADR (China) †	7,200	408,672
	Daimler AG (Registered Shares) (Germany)	6,500	498,545
	Dalata Hotel Group PLC (Ireland) †	32,925	125,998
	Deckers Outdoor Corp. †	9,018	876,369
	Deluxe Corp.	15,109	833,412
	Demand Media, Inc. †	3,031	26,824
	Denso Corp. (Japan)	14,100	650,596
	Ennis, Inc.	13,395	176,412
	Expedia, Inc.	29,298	2,567,091
	Experian PLC (United Kingdom)	58,105	922,962
	Far Eastern Department Stores, Ltd. (Taiwan)	580,000	558,826
	FF Group (Greece)	13,240	492,793
	Fuji Heavy Industries, Ltd. (Japan)	60,300	1,996,187
	G&K Services, Inc. Class A	5,660	313,451
	GameStop Corp. Class A	43,700	1,800,440
	Gap, Inc. (The)	65,600	2,734,864
	Geberit International AG (Switzerland)	2,693	867,515
	General Motors Co.	60,800	1,941,952
	Genesco, Inc. †	2,589	193,528
	Global Cash Access Holdings, Inc. †	61,708	416,529
	GNC Holdings, Inc. Class A	16,033	621,118
	Grand Korea Leisure Co., Ltd. (South Korea)	11,204	443,773
	Green Dot Corp. Class A †	9,175	193,960
	Hanesbrands, Inc.	27,800	2,986,832
	Harbinger Group, Inc. †	44,328	581,583
	Harley-Davidson, Inc.	70,700	4,114,740
	Hilton Worldwide Holdings, Inc. †	234,800	5,783,124
	Home Depot, Inc. (The)	149,781	13,740,909
	Home Inns & Hotels Management, Inc. ADR (China) †	17,485	506,890
	Hyundai Motor Co. (South Korea)	5,791	1,044,357
	ITV PLC (United Kingdom)	392,948	1,321,413
	KAR Auction Services, Inc.	22,806	652,936
	Kate Spade & Co. †	5,669	148,698
	Kimberly-Clark Corp.	115,400	12,413,578
	Kingfisher PLC (United Kingdom)	28,358	148,628
	Kolao Holdings (South Korea)	41,927	666,870
	Lenta, Ltd. 144A GDR (Russia) †	16,903	180,355
	Lions Gate Entertainment Corp.	19,607	646,443
	Live Nation Entertainment, Inc. †	25,239	606,241
	Lowe’s Cos., Inc.	141,027	7,463,149
	Luxottica Group SpA (Italy)	5,363	278,664

Dynamic Asset Allocation Growth Fund     31

	COMMON STOCKS (63.1%)* cont.	Shares	Value
	Consumer cyclicals cont.
	Macy’s, Inc.	76,303	$4,439,309
	Makalot Industrial Co., Ltd. (Taiwan)	102,000	517,629
	Marcus Corp.	19,703	311,307
	Marriott Vacations Worldwide Corp. †	5,623	356,554
	MasterCard, Inc. Class A	9,100	672,672
	MAXIMUS, Inc.	3,647	146,354
	Mediaset SpA (Italy) †	37,867	144,872
	Melco Crown Entertainment, Ltd. ADR (Hong Kong) S	6,900	181,401
	MGM China Holdings, Ltd. (Hong Kong)	300,000	864,132
	Mitra Adiperkasa Tbk PT (Indonesia)	438,700	198,055
	Naspers, Ltd. Class N (South Africa)	9,095	1,000,304
	National CineMedia, Inc.	38,594	559,999
	Next PLC (United Kingdom)	17,858	1,911,766
	Nissan Motor Co., Ltd. (Japan)	39,800	388,326
	Nu Skin Enterprises, Inc. Class A	7,814	351,864
	Omnicom Group, Inc.	62,600	4,310,636
	Panasonic Corp. (Japan)	136,000	1,619,094
	Paradise Entertainment, Ltd. (Hong Kong)	720,000	267,258
	Penn National Gaming, Inc. †	31,223	350,010
	PGT, Inc. †	33,869	315,659
	Pitney Bowes, Inc.	13,538	338,315
	Priceline Group, Inc. (The) †	3,061	3,546,413
	Puregold Price Club, Inc. (Philippines)	107,000	82,655
	Randstad Holding NV (Netherlands)	6,061	281,454
	Remy International, Inc.	9,053	185,858
	Renault SA (France)	11,092	800,619
	Scripps Networks Interactive Class A	30,200	2,358,318
	SeaWorld Entertainment, Inc.	22,570	434,021
	Select Comfort Corp. †	12,834	268,487
	Shimano, Inc. (Japan)	14,100	1,716,006
	Sinclair Broadcast Group, Inc. Class A	5,990	156,279
	Six Flags Entertainment Corp.	6,113	210,226
	SJM Holdings, Ltd. (Hong Kong)	279,000	532,585
	Sonic Automotive, Inc. Class A	14,808	362,944
	Sony Corp. (Japan)	24,200	436,071
	Sports Direct International PLC (United Kingdom) †	22,621	225,758
	Steinhoff International Holdings, Ltd. (South Africa)	176,902	846,960
	Steven Madden, Ltd. †	4,877	157,186
	Suzuki Motor Corp. (Japan)	50,200	1,665,784
	Swatch Group AG (The) (Switzerland)	1,344	636,790
	Thomas Cook Group PLC (United Kingdom) †	184,145	352,802
	TiVo, Inc. †	62,899	804,793
	Toyota Motor Corp. (Japan)	37,900	2,227,268
	TUI Travel PLC (United Kingdom)	89,866	564,428
	TVN SA (Poland)	78,337	370,547
	Vail Resorts, Inc.	2,019	175,168
	Valeo SA (France)	10,314	1,143,985

32     Dynamic Asset Allocation Growth Fund

	COMMON STOCKS (63.1%)* cont.	Shares	Value
	Consumer cyclicals cont.
	Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA (Brazil)	51,941	$812,722
	Viacom, Inc. Class B	89,200	6,863,048
	VOXX International Corp. †	12,385	115,181
	WH Smith PLC (United Kingdom)	10,108	177,147
	Wirecard AG (Germany)	3,808	140,674
	WPP PLC (United Kingdom)	33,526	670,591
	Wyndham Worldwide Corp.	33,247	2,701,651
			140,563,080
	Consumer finance (1.3%)
	Discover Financial Services	133,700	8,608,943
	Encore Capital Group, Inc. †	11,511	510,052
	Federal Agricultural Mortgage Corp. Class C	7,828	251,592
	Housing Development Finance Corp., Ltd. (HDFC) (India)	32,999	562,704
	MicroFinancial, Inc.	12,493	100,694
	Nelnet, Inc. Class A	12,553	540,909
	Performant Financial Corp. †	46,567	376,261
	PHH Corp. †	9,005	201,352
	Portfolio Recovery Associates, Inc. †	11,022	575,679
	Regional Management Corp. †	15,586	279,769
	Santander Consumer USA Holdings, Inc.	47,700	849,537
	Visa, Inc. Class A	52,600	11,223,262
			24,080,754
	Consumer staples (4.9%)
	Affinity Education Group, Ltd. (Australia) †	65,365	74,707
	Alibaba Group Holding, Ltd. ADR (China) †	20,742	1,842,927
	Anheuser-Busch InBev NV (Belgium)	20,753	2,302,120
	Associated British Foods PLC (United Kingdom)	31,489	1,364,174
	Barrett Business Services, Inc.	4,330	170,992
	Bigfoot GmbH (acquired 8/2/13, cost $43,964) (Private) (Brazil) †ΔΔ F	2	27,180
	Bloomin’ Brands, Inc. †	11,636	213,404
	Blue Nile, Inc. †	5,922	169,073
	Boulder Brands, Inc. †	5,048	68,804
	Bright Horizons Family Solutions, Inc. †	8,174	343,798
	British American Tobacco (BAT) PLC (United Kingdom)	20,112	1,130,473
	Calbee, Inc. (Japan)	42,900	1,405,391
	Carrefour SA (France)	28,341	873,204
	Chaoda Modern Agriculture Holdings, Ltd. (China) † F	72,000	4,636
	Chegg, Inc. †	25,333	158,078
	Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR (Preference) (Brazil)	17,841	778,046
	Colgate-Palmolive Co.	34,300	2,237,046
	Core-Mark Holding Co., Inc.	9,128	484,149
	Coty, Inc. Class A	26,286	435,033
	CVS Health Corp.	192,638	15,332,058
	Daesang Corp. (South Korea)	14,804	722,612
	Diageo PLC (United Kingdom)	27,409	792,503
	Distribuidora Internacional de Alimentacion SA (Spain)	80,247	572,302
	Dr. Pepper Snapple Group, Inc.	107,300	6,900,463

Dynamic Asset Allocation Growth Fund     33

	COMMON STOCKS (63.1%)* cont.	Shares	Value
	Consumer staples cont.
	Estacio Participacoes SA (Brazil)	89,934	$934,704
	Fourlis Holdings SA (Greece) †	73,873	392,945
	G8 Education, Ltd. (Australia)	63,779	285,301
	Genuine Parts Co.	55,200	4,841,592
	Geo Group, Inc. (The) R	3,715	141,987
	Grand Canyon Education, Inc. †	2,869	116,969
	Groupon, Inc. †	17,139	114,489
	Heineken Holding NV (Netherlands)	14,024	926,238
	Henkel AG & Co. KGaA (Preference) (Germany)	6,577	656,763
	ITOCHU Corp. (Japan)	11,500	140,626
	ITT Educational Services, Inc. † S	6,865	29,451
	Japan Tobacco, Inc. (Japan)	29,900	973,252
	Kao Corp. (Japan)	29,300	1,142,847
	Kerry Group PLC Class A (Ireland)	9,490	669,192
	Kforce, Inc.	18,199	356,154
	Koninklijke Ahold NV (Netherlands)	67,706	1,094,880
	Korn/Ferry International †	9,839	244,991
	Krispy Kreme Doughnuts, Inc. †	13,393	229,824
	Kroton Educacional SA (Brazil)	88,396	555,420
	L’Oreal SA (France)	5,290	837,798
	ManpowerGroup, Inc.	52,200	3,659,220
	Mondelez International, Inc. Class A	257,100	8,809,532
	MWI Veterinary Supply, Inc. †	2,237	331,971
	Nestle SA (Switzerland)	52,425	3,845,358
	New Oriental Education & Technology Group, Inc. ADR (China)	11,900	276,080
	Nutraceutical International Corp. †	6,445	134,765
	On Assignment, Inc. †	14,944	401,246
	Papa John’s International, Inc.	9,119	364,669
	Philip Morris International, Inc.	144,400	12,042,960
	Pinnacle Foods, Inc.	10,331	337,307
	Popeyes Louisiana Kitchen, Inc. †	7,225	292,613
	Reckitt Benckiser Group PLC (United Kingdom)	9,661	836,207
	Rightmove PLC (United Kingdom)	3,943	136,683
	SABMiller PLC (United Kingdom)	13,402	744,726
	Sao Martinho SA (Brazil)	44,838	719,899
	Seven & I Holdings Co., Ltd. (Japan)	3,400	131,999
	Shutterfly, Inc. †	2,022	98,552
	SpartanNash Co.	8,935	173,786
	Suntory Beverage & Food, Ltd. (Japan)	27,100	961,713
	TrueBlue, Inc. †	25,231	637,335
	Ulker Biskuvi Sanayi AS (Turkey)	77,426	513,826
	Unilever NV ADR (Netherlands)	21,290	846,276
	Unilever PLC (United Kingdom)	16,516	689,394
	United Natural Foods, Inc. †	2,787	171,289
	USANA Health Sciences, Inc. †	2,202	162,199
	WH Group, Ltd. 144A (Hong Kong) †	205,605	168,936
	WM Morrison Supermarkets PLC (United Kingdom)	16,466	44,914
	Wolseley PLC (United Kingdom)	4,909	257,905

34     Dynamic Asset Allocation Growth Fund

	COMMON STOCKS (63.1%)* cont.	Shares	Value
	Consumer staples cont.
	Woolworths, Ltd. (Australia)	16,521	$493,917
	Zalando SE (acquired 9/30/13, cost $89,683) (Private) (Germany) † ΔΔ F	3,740	91,406
	Zalando SE (Germany) †	858	23,299
			91,488,578
	Energy (4.6%)
	Adaro Energy Tbk PT (Indonesia)	581,700	56,108
	AMEC PLC (United Kingdom)	56,594	1,007,456
	Baker Hughes, Inc.	67,200	4,372,032
	Beijing Jingneng Clean Energy Co., Ltd. (China)	322,000	138,179
	BG Group PLC (United Kingdom)	59,964	1,103,022
	BP PLC (United Kingdom)	295,683	2,166,667
	Cabot Oil & Gas Corp.	67,400	2,203,306
	Callon Petroleum Co. †	66,769	588,235
	Delek US Holdings, Inc.	18,569	615,005
	Dril-Quip, Inc. †	9,400	840,360
	EnCana Corp. (Canada)	26,100	554,184
	EOG Resources, Inc.	76,400	7,565,128
	EP Energy Corp. Class A †	24,157	422,264
	Exxon Mobil Corp.	159,135	14,966,647
	Ezion Holdings, Ltd. (Singapore)	729,480	1,035,436
	FutureFuel Corp.	29,241	347,675
	Genel Energy PLC (United Kingdom) †	62,158	840,632
	Gulfport Energy Corp. †	3,494	186,580
	Halliburton Co.	107,300	6,921,923
	Key Energy Services, Inc. †	41,328	200,028
	Kodiak Oil & Gas Corp. †	21,750	295,148
	Lone Pine Resources Canada, Ltd. (Canada) † F	12,473	499
	Lone Pine Resources, Inc. Class A (Canada) † F	12,473	499
	Lukoil OAO ADR (Russia)	16,485	837,669
	Oceaneering International, Inc.	20,164	1,314,088
	Oil & Natural Gas Corp., Ltd. (India)	119,368	789,440
	Oil States International, Inc. †	11,900	736,610
	Petroleo Brasileiro SA ADR (Preference) (Brazil)	46,738	695,929
	Petroleo Brasileiro SA ADR (Brazil)	34,298	486,689
	Rosetta Resources, Inc. †	4,062	181,003
	Royal Dutch Shell PLC Class A (United Kingdom)	53,258	2,031,374
	Royal Dutch Shell PLC Class A (United Kingdom)	30,204	1,152,852
	Royal Dutch Shell PLC Class B (United Kingdom)	43,725	1,724,863
	Schlumberger, Ltd.	155,537	15,816,558
	SPT Energy Group, Inc. (China)	276,000	96,359
	Statoil ASA (Norway)	57,913	1,575,689
	Stone Energy Corp. †	10,218	320,436
	Suncor Energy, Inc. (Canada)	12,300	445,126
	Superior Energy Services, Inc.	173,900	5,716,093
	Total SA (France)	31,463	2,033,390
	Unit Corp. †	4,877	286,036
	Vaalco Energy, Inc. †	28,873	245,421