N-Q 1 a_mmliquidity.htm PUTNAM FUNDS TRUST a_mmliquidity.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM N-Q
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT 
INVESTMENT COMPANY
 
Investment Company Act file number: (811-7513)   
 
Exact name of registrant as specified in charter:  Putnam Funds Trust 
 
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109 
 
Name and address of agent for service:  Beth S. Mazor, Vice President 
  One Post Office Square 
  Boston, Massachusetts 02109 
 
Copy to:    John W. Gerstmayr, Esq. 
  Ropes & Gray LLP 
  800 Boylston Street 
  Boston, Massachusetts 02199-3600 
 
Registrant’s telephone number, including area code:  (617) 292-1000 
 
Date of fiscal year end: September 30, 2011     
 
Date of reporting period: December 31, 2010     

 

Item 1. Schedule of Investments:


Putnam Money Market Liquidity Fund
The fund's portfolio
12/31/10 (Unaudited)

U.S. TREASURY OBLIGATIONS (75.9%)(a)         
  Yield (%)  Maturity date  Principal amount  Value 
U.S. Treasury Bills  0.260  11/17/11  $50,000,000  $49,886,222 
U.S. Treasury Bills  0.219  10/20/11  50,000,000  49,912,400 
U.S. Treasury Bills  0.238  8/25/11  50,000,000  49,923,136 
U.S. Treasury Bills  0.155  2/10/11  250,000,000  249,966,000 
U.S. Treasury Bills  0.120  2/3/11  350,000,000  349,962,119 
U.S. Treasury Bills  0.121  1/27/11  450,000,000  449,961,228 
U.S. Treasury Bills  0.093  1/20/11  700,000,000  699,966,222 
U.S. Treasury Bills  0.089  1/13/11  600,000,000  599,993,083 
U.S. Treasury Bills  0.111  1/6/11  502,400,000  502,398,759 
U.S. Treasury Notes (k)  0.342  3/31/11  50,000,000  50,536,846 
U.S. Treasury Notes (k)  0.244  10/31/11  57,700,000  58,061,834 
U.S. Treasury Notes (k)  0.322  9/30/11  30,000,000  30,151,285 
U.S. Treasury Notes (k)  0.302  8/31/11  10,000,000  10,046,137 
U.S. Treasury Notes (k)  0.279  7/31/11  50,000,000  50,208,338 
U.S. Treasury Notes (k)  0.304  2/28/11  50,000,000  50,045,492 
Total U.S. treasury obligations (cost $3,251,019,101)      $3,251,019,101 
 
 
REPURCHASE AGREEMENTS (22.6%)(a)         
      Principal amount  Value 
Interest in $248,000,000 joint tri-party repurchase         
agreement dated December 31, 2010 with Citigroup         
Global Markets, Inc. due January 3, 2011 - maturity         
value of $114,002,660 for an effective yield of 0.28%       
(collateralized by various mortgage-backed securities       
with coupon rates ranging from 2.75% to 6.00% and due       
dates ranging from March 1, 2018 to November 15, 2040,       
valued at $252,960,000)      $114,000,000  $114,000,000 
Interest in $87,500,000 joint tri-party repurchase         
agreement dated December 31, 2010 with JPMorgan       
Securities, Inc. due January 3, 2011 - maturity value       
of $36,000,900 for an effective yield of 0.30%         
(collateralized by various corporate bonds and notes       
with coupon rates ranging from zero % to 8.00% and due       
dates ranging from February 24, 2012 to         
December 16, 2050, valued at $91,878,227)      36,000,000  36,000,000 
Interest in $81,500,000 joint tri-party repurchase         
agreement dated December 31, 2010 with Citigroup         
Global Markets, Inc. due January 3, 2011 - maturity         
value of $35,000,875 for an effective yield of 0.30%         
(collateralized by various corporate bonds and notes       
with coupon rates ranging from zero % to 7.50% and due       
dates ranging from a bond that matures on         
January 18, 2011 to a perpetural bond that does not         
have a predetermined maturity date, valued         
at $85,575,001)      35,000,000  35,000,000 
Interest in $248,000,000 joint tri-party repurchase         
agreement dated December 31, 2010 with Deutsche Bank       
Securities, Inc. due January 3, 2011 - maturity value       
of $114,002,660 for an effective yield of 0.28%         
(collateralized by various Federal National Mortgage       
Assciation securities with coupon rates ranging from       
2.97% to 7.00% and due dates ranging from         
August 1, 2012 to July 1, 2047, valued at $252,960,000)    114,000,000  114,000,000 
Interest in $228,000,000 joint tri-party repurchase         
agreement dated December 31, 2010 with Goldman Sachs &       
Co. due January 3, 2011 - maturity value         
of $114,001,425 for an effective yield of 0.15%         
(collateralized by various mortgage-backed securities       
with coupon rates ranging from zero % to 6.00% and due       
dates ranging from May 1, 2023 to December 1, 2040,       
valued at $232,560,000)      114,000,000  114,000,000 
Interest in $88,500,000 joint tri-party repurchase         
agreement dated December 31, 2010 with Merrill Lynch &       
Co. due January 3, 2011 - maturity value         
of $35,000,788 for an effective yield of 0.27%         
(collateralized by various corporate bonds and notes       
with coupon rates ranging from 0.724% to 6.15% and due       
dates ranging from February 5, 2013 to         
September 30, 2015, valued at $90,825,000)      35,000,000  35,000,000 
Interest in $439,946,000 joint tri-party repurchase         
agreement dated December 31, 2010 with Merrill Lynch &       
Co. due January 3, 2011 - maturity value         
of $125,094,606 for an effective yield of 0.25%         
(collateralized by various mortgage-backed securities       
with coupon rates ranging from 1.543% to 6.00% and due       
dates ranging from July 1, 2027 to October 20, 2060,       
valued at $448,744,920)      125,092,000  125,092,000 
Interest in $63,000,000 joint tri-party repurchase         
agreement dated December 31, 2010 with Deutsche Bank       
Securities, Inc. due January 3, 2011 - maturity value       
of $38,000,792 for an effective yield of 0.25%         
(collateralized by various corporate bonds and notes       
and asset backed securities with coupon rates ranging       
from zero % to 8.00% and due dates ranging from         
September 30, 2011 to October 15, 2048, valued         
at $66,150,000)      38,000,000  38,000,000 
Interest in $115,000,000 joint tri-party repurchase         
agreement dated December 31, 2010 with BNP Paribas       
Securities Corp. due January 3, 2011 - maturity value       

 


of $70,001,342 for an effective yield of 0.23%         
(collateralized by various corporate bonds and notes         
and various foreign government bonds and notes with         
coupon rates ranging from 5.75% to 10.50% and due         
dates ranging from July 14, 2014 to         
September 15, 2029, valued at $120,750,001)      70,000,000  70,000,000 
Interest in $125,000,000 joint tri-party repurchase         
agreement dated December 31, 2010 with Credit Suisse         
First Boston due January 3, 2011 - maturity value         
of $127,501,612 for an effective yield of 0.20%         
(collateralized by a single United States Treasury         
bond with a coupon rate of 1.75% and a due date         
of August 15, 2012, valued at $127,501,612)      125,000,000  125,000,000 
Interest in $50,000,000 joint tri-party repurchase         
agreement dated December 31, 2010 with BNP Paribas         
Securities Corp. due January 3, 2011 - maturity value         
of $50,000,750 for an effective yield of 0.18%         
(collateralized by a single mortgage-backed security         
with a coupon rate of 4.00% and a due date of         
December 1, 2030, valued at $51,000,001)      50,000,000  50,000,000 
Interest in $248,000,000 joint tri-party repurchase         
agreement dated December 31, 2010 with JPMorgan         
Securities, Inc. due January 3, 2011 - maturity value         
of $114,002,850 for an effective yield of 0.30%         
(collateralized by various mortgage-backed securities         
with coupon rates ranging from 3.50% to 8.50% and due         
dates ranging from May 1, 2014 to September 1, 2050,         
valued at $252,961,342)      114,000,000  114,000,000 
Total repurchase agreements (cost $970,092,000)        $970,092,000 
 
 
ASSET-BACKED COMMERCIAL PAPER (4.5%)(a)         
  Yield (%)  Maturity date  Principal amount  Value 
Straight-A Funding, LLC  0.250  3/10/11  $25,000,000  $24,988,194 
Straight-A Funding, LLC  0.250  3/9/11  50,000,000  49,976,736 
Straight-A Funding, LLC  0.250  3/8/11  42,702,000  42,682,428 
Straight-A Funding, LLC  0.240  2/14/11  35,347,000  35,336,632 
Straight-A Funding, LLC  0.220  2/1/11  40,786,000  40,778,273 
Total asset-backed commercial paper (cost $193,762,263)        $193,762,263 
 
 
CORPORATE BONDS AND NOTES (1.3%)(a)         
  Yield (%)  Maturity date  Principal amount  Value 
JPMorgan Chase Bank NA sr. notes FRN  0.261  6/21/11  $30,000,000  $30,000,000 
Westpac Banking Corp. 144A sr. unsec. notes FRN         
(Australia)  0.311  7/1/11  25,000,000  25,000,000 
Total corporate bonds and notes (cost $55,000,000)        $55,000,000 
 
 
U.S. GOVERNMENT AGENCY OBLIGATIONS (0.5%)(a)         
  Yield (%)  Maturity date  Principal amount  Value 
Federal Farm Credit Bank FRB Ser. 1  0.271  2/28/11  $21,300,000  $21,300,000 
Total U.S. government agency obligations (cost $21,300,000)        $21,300,000 
 
 
CERTIFICATES OF DEPOSIT (0.5%)(a)         
  Yield (%)  Maturity date  Principal amount  Value 
Lloyds TSB Bank PLC/New York, NY FRN (United Kingdom)  1.266  5/06/11  $20,500,000  $20,500,000 
Total certificates of deposit (cost $20,500,000)        $20,500,000 
 
 
TOTAL INVESTMENTS         
Total investments (cost $4,511,673,364)(b)        $4,511,673,364 

 


Key to holding's abbreviations

FRB  Floating Rate Bonds 
FRN  Floating Rate Notes 

 

Notes to the fund's portfolio

Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from October 1, 2010 through December 31, 2010 (the reporting period).

(a) Percentages indicated are based on net assets of $4,283,426,259.

(b) The aggregate identified cost on a financial reporting and tax basis is the same.

(k) The rates shown are the current interest rates at the close of the reporting period.

Debt obligations are considered secured unless otherwise indicated.

144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

The rates shown on FRB and FRN are the current interest rates at the close of the reporting period.

The dates shown on debt obligations are the original maturity dates.

Security valuation: The valuation of the fund’s portfolio instruments is determined by means of the amortized cost method (which approximates market value) as set forth in Rule 2a-7 under the Investment Company Act of 1940. The amortized cost of an instrument is determined by valuing it at its original cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity and is generally categorized as a Level 2 security.

Repurchase agreements: The fund, or any joint trading account, through its custodian, receives delivery of the underlying securities, the market value of which at the time of purchase is required to be in an amount at least equal to the resale price, including accrued interest. Collateral for certain tri-party repurchase agreements is held at the counterparty’s custodian in a segregated account for the benefit of the fund and the counterparty. Putnam Management is responsible for determining that the value of these underlying securities is at all times at least equal to the resale price, including accrued interest. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings.


Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures (ASC 820) establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:

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

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

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

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

    Valuation inputs  
Investments in securities:  Level 1  Level 2  Level 3 
Asset-backed commercial paper  $--  $193,762,263  $-- 
Certificates of deposit  --  20,500,000  -- 
Corporate bonds and notes  --  55,000,000  -- 
Repurchase agreements  --  970,092,000  -- 
U.S. Government Agency Obligations  --  21,300,000  -- 
U.S. Treasury Obligations  --  3,251,019,101  -- 
Totals by level  $--  $4,511,673,364  $-- 

 

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com


Item 2. Controls and Procedures:

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

(b) Changes in internal control over financial reporting: During the period, State Street Bank and Trust Company, which provides certain administrative, pricing and bookkeeping services for the Putnam funds pursuant to an agreement with Putnam Investment Management, LLC, began utilizing different accounting systems and systems support in providing services for the fund.

Item 3. Exhibits:

Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam Funds Trust

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: February 28, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):

/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: February 28, 2011

By (Signature and Title):

/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: February 28, 2011