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: | (811-07513) |
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: | Robert T. Burns, 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: | November 30, 2013 |
Date of reporting period: | August 31, 2013 |
Item 1. Schedule of Investments: |
Putnam Global Dividend Fund | ||||||
The fund's portfolio | ||||||
8/31/13 (Unaudited) | ||||||
COMMON STOCKS (93.9%)(a) | ||||||
Shares | Value | |||||
Aerospace and defense (2.3%) | ||||||
BAE Systems PLC (United Kingdom) | 6,026 | $40,632 | ||||
General Dynamics Corp. | 917 | 76,340 | ||||
Northrop Grumman Corp. | 655 | 60,437 | ||||
177,409 | ||||||
Air freight and logistics (0.5%) | ||||||
bpost SA (Belgium)(NON) | 1,796 | 34,964 | ||||
34,964 | ||||||
Airlines (1.2%) | ||||||
ANA Holdings, Inc. (Japan) | 11,000 | 22,313 | ||||
Japan Airlines Co., Ltd. (Japan)(UR) | 1,300 | 68,650 | ||||
90,963 | ||||||
Automobiles (1.2%) | ||||||
Daimler AG (Registered Shares) (Germany) | 1,333 | 91,471 | ||||
91,471 | ||||||
Beverages (0.8%) | ||||||
Dr. Pepper Snapple Group, Inc. | 1,442 | 64,544 | ||||
64,544 | ||||||
Capital markets (3.1%) | ||||||
Ashmore Group PLC (United Kingdom) | 16,715 | 86,439 | ||||
Blackstone Group LP (The) | 3,729 | 81,441 | ||||
KKR & Co. LP | 3,835 | 73,287 | ||||
241,167 | ||||||
Chemicals (2.1%) | ||||||
BASF SE (Germany) | 624 | 54,538 | ||||
Dow Chemical Co. (The) | 1,413 | 52,846 | ||||
Tronox, Ltd. Class A | 2,500 | 53,400 | ||||
160,784 | ||||||
Commercial banks (3.6%) | ||||||
Australia & New Zealand Banking Group, Ltd. (Australia) | 4,173 | 109,527 | ||||
Bank of Nova Scotia (Canada) | 1,053 | 58,483 | ||||
Commonwealth Bank of Australia (Australia) | 852 | 54,900 | ||||
HSBC Holdings PLC (United Kingdom) | 5,481 | 57,419 | ||||
280,329 | ||||||
Commercial services and supplies (0.6%) | ||||||
Pitney Bowes, Inc. | 2,611 | 42,612 | ||||
42,612 | ||||||
Communications equipment (0.6%) | ||||||
Cisco Systems, Inc. | 2,100 | 48,951 | ||||
48,951 | ||||||
Computers and peripherals (2.0%) | ||||||
Apple, Inc. | 126 | 61,368 | ||||
ASUSTeK Computer, Inc. (Taiwan) | 6,000 | 47,572 | ||||
Hewlett-Packard Co. | 2,009 | 44,881 | ||||
153,821 | ||||||
Construction and engineering (0.9%) | ||||||
ACS Actividades de Construccion y Servicios SA (Spain) | 2,467 | 69,465 | ||||
69,465 | ||||||
Containers and packaging (0.5%) | ||||||
MeadWestvaco Corp. | 1,096 | 39,292 | ||||
39,292 | ||||||
Diversified financial services (2.8%) | ||||||
BM&F Bovespa SA (Brazil) | 5,700 | 27,927 | ||||
CME Group, Inc. | 794 | 56,461 | ||||
JPMorgan Chase & Co. | 2,660 | 134,410 | ||||
218,798 | ||||||
Diversified telecommunication services (7.9%) | ||||||
BCE, Inc. (Canada) | 872 | 35,756 | ||||
Bezeq The Israeli Telecommunication Corp., Ltd. (Israel) | 37,794 | 61,602 | ||||
CenturyLink, Inc. | 1,779 | 58,920 | ||||
TDC A/S (Denmark) | 11,518 | 94,054 | ||||
Telstra Corp., Ltd. (Australia) | 15,748 | 68,486 | ||||
Verizon Communications, Inc. | 2,104 | 99,688 | ||||
Vivendi (France) | 4,236 | 85,909 | ||||
Ziggo NV (Netherlands) | 2,642 | 104,771 | ||||
609,186 | ||||||
Electric utilities (3.1%) | ||||||
Duke Energy Corp. | 357 | 23,419 | ||||
Energias de Portugal (EDP) SA (Portugal) | 19,282 | 68,144 | ||||
FirstEnergy Corp. | 2,099 | 78,650 | ||||
SSE PLC (United Kingdom) | 2,758 | 66,804 | ||||
237,017 | ||||||
Electronic equipment, instruments, and components (0.7%) | ||||||
Hoya Corp. (Japan) | 2,500 | 53,092 | ||||
53,092 | ||||||
Energy equipment and services (1.3%) | ||||||
Petrofac, Ltd. (United Kingdom) | 1,991 | 42,734 | ||||
Seadrill, Ltd. (Norway) | 1,235 | 56,989 | ||||
99,723 | ||||||
Food and staples retail (1.1%) | ||||||
Wesfarmers, Ltd. (Australia) | 1,597 | 57,522 | ||||
WM Morrison Supermarkets PLC (United Kingdom) | 6,013 | 27,042 | ||||
84,564 | ||||||
Food products (2.8%) | ||||||
Kraft Foods Group, Inc. | 942 | 48,767 | ||||
Nestle SA (Switzerland) | 2,529 | 165,936 | ||||
Pinnacle Foods, Inc. | 144 | 3,902 | ||||
218,605 | ||||||
Gas utilities (0.6%) | ||||||
Tokyo Gas Co., Ltd. (Japan) | 9,000 | 46,519 | ||||
46,519 | ||||||
Health-care equipment and supplies (0.6%) | ||||||
Baxter International, Inc. | 635 | 44,171 | ||||
44,171 | ||||||
Hotels, restaurants, and leisure (1.8%) | ||||||
McDonald's Corp. | 477 | 45,010 | ||||
OPAP SA (Greece) | 9,111 | 90,312 | ||||
135,322 | ||||||
Household durables (1.4%) | ||||||
Nexity (France) | 1,273 | 46,873 | ||||
Persimmon PLC (United Kingdom) | 3,515 | 59,865 | ||||
106,738 | ||||||
Independent power producers and energy traders (0.7%) | ||||||
Electric Power Development Co., Ltd. (Japan) | 1,800 | 55,356 | ||||
55,356 | ||||||
Industrial conglomerates (1.5%) | ||||||
General Electric Co. | 1,882 | 43,549 | ||||
Siemens AG (Germany) | 699 | 73,990 | ||||
117,539 | ||||||
Insurance (4.5%) | ||||||
Admiral Group PLC (United Kingdom) | 3,025 | 59,114 | ||||
Allianz SE (Germany) | 620 | 88,825 | ||||
SCOR SE (France) | 2,040 | 63,832 | ||||
Zurich Insurance Group AG (Switzerland) | 543 | 135,159 | ||||
346,930 | ||||||
Leisure equipment and products (0.5%) | ||||||
Hasbro, Inc. | 791 | 36,054 | ||||
36,054 | ||||||
Media (2.4%) | ||||||
Asian Pay Television Trust (Units) (Taiwan)(NON) | 81,681 | 53,320 | ||||
Comcast Corp. Class A | 1,514 | 63,724 | ||||
RTL Group SA (Belgium) | 665 | 64,116 | ||||
181,160 | ||||||
Metals and mining (1.4%) | ||||||
BHP Billiton PLC (United Kingdom) | 1,937 | 56,373 | ||||
Freeport-McMoRan Copper & Gold, Inc. Class B (Indonesia) | 1,807 | 54,608 | ||||
110,981 | ||||||
Multi-utilities (2.0%) | ||||||
Ameren Corp. | 1,995 | 67,451 | ||||
Centrica PLC (United Kingdom) | 14,261 | 85,285 | ||||
152,736 | ||||||
Multiline retail (1.3%) | ||||||
Macy's, Inc. | 1,289 | 57,270 | ||||
Myer Holdings, Ltd. (Australia) | 17,064 | 41,482 | ||||
98,752 | ||||||
Office electronics (1.1%) | ||||||
Canon, Inc. (Japan) | 1,900 | 56,932 | ||||
Neopost SA (France) | 441 | 30,891 | ||||
87,823 | ||||||
Oil, gas, and consumable fuels (8.0%) | ||||||
Chevron Corp. | 825 | 99,355 | ||||
Energy Transfer Equity L.P. | 1,200 | 77,196 | ||||
ENI SpA (Italy) | 4,452 | 101,675 | ||||
HollyFrontier Corp. | 914 | 40,655 | ||||
Origin Energy, Ltd. (Australia) | 4,919 | 57,750 | ||||
Royal Dutch Shell PLC Class A (United Kingdom) | 7,316 | 236,673 | ||||
613,304 | ||||||
Pharmaceuticals (11.3%) | ||||||
AbbVie, Inc. | 865 | 36,858 | ||||
Astellas Pharma, Inc. (Japan) | 600 | 30,544 | ||||
AstraZeneca PLC (United Kingdom) | 1,435 | 70,673 | ||||
Eli Lilly & Co. | 2,088 | 107,323 | ||||
GlaxoSmithKline PLC (United Kingdom) | 5,418 | 138,161 | ||||
Johnson & Johnson | 932 | 80,534 | ||||
Merck & Co., Inc. | 1,429 | 67,577 | ||||
Pfizer, Inc. | 3,277 | 92,444 | ||||
Sanofi (France) | 1,239 | 119,032 | ||||
Takeda Pharmaceutical Co., Ltd. (Japan) | 1,200 | 54,353 | ||||
Warner Chilcott PLC Class A | 2,000 | 42,900 | ||||
Zoetis, Inc. | 1,070 | 31,191 | ||||
871,590 | ||||||
Real estate investment trusts (REITs) (2.1%) | ||||||
American Tower Corp. Class A | 627 | 43,570 | ||||
CYS Investments, Inc. | 5,200 | 39,936 | ||||
Equity Residential Trust | 865 | 44,885 | ||||
Healthcare Trust of America, Inc. Class A | 2,081 | 21,434 | ||||
MFA Financial, Inc. | 1,400 | 10,080 | ||||
159,905 | ||||||
Semiconductors and semiconductor equipment (2.4%) | ||||||
Intel Corp. | 3,508 | 77,106 | ||||
Maxim Integrated Products, Inc. | 2,300 | 64,044 | ||||
Texas Instruments, Inc. | 1,159 | 44,274 | ||||
185,424 | ||||||
Software (1.5%) | ||||||
Fidessa Group PLC (United Kingdom) | 2,090 | 69,053 | ||||
Microsoft Corp. | 1,388 | 46,359 | ||||
115,412 | ||||||
Tobacco (4.4%) | ||||||
Altria Group, Inc. | 3,944 | 133,623 | ||||
British American Tobacco (BAT) PLC (United Kingdom) | 2,336 | 117,834 | ||||
Philip Morris International, Inc. | 1,068 | 89,114 | ||||
340,571 | ||||||
Trading companies and distributors (1.4%) | ||||||
Mitsubishi Corp. (Japan) | 2,600 | 48,513 | ||||
Rexel SA (France) | 2,615 | 60,136 | ||||
108,649 | ||||||
Transportation infrastructure (1.1%) | ||||||
Sydney Airport (Australia) | 25,445 | 85,370 | ||||
85,370 | ||||||
Wireless telecommunication services (2.8%) | ||||||
NTT DoCoMo, Inc. (Japan) | 37 | 59,126 | ||||
Vodafone Group PLC (United Kingdom) | 49,467 | 158,107 | ||||
217,233 | ||||||
Total common stocks (cost $7,180,130) | $7,234,296 | |||||
SHORT-TERM INVESTMENTS (8.4%)(a) | ||||||
Shares | Value | |||||
Putnam Short Term Investment Fund 0.07%(AFF) | 649,277 | $649,277 | ||||
Total short-term investments (cost $649,277) | $649,277 | |||||
TOTAL INVESTMENTS | ||||||
Total investments (cost $7,829,407)(b) | $7,883,573 | |||||
FORWARD CURRENCY CONTRACTS at 8/31/13 (aggregate face value $2,898,974) (Unaudited) | |||||||
Unrealized | |||||||
Contract | Delivery | Aggregate | appreciation/ | ||||
Counterparty | Currency | type | date | Value | face value | (depreciation) | |
Bank of America N.A. | |||||||
British Pound | Sell | 9/18/13 | $229,486 | $227,003 | $(2,483) | ||
Danish Krone | Sell | 9/18/13 | 49,898 | 49,406 | (492) | ||
Euro | Sell | 9/18/13 | 205,526 | 203,616 | (1,910) | ||
Swedish Krona | Buy | 9/18/13 | 105,243 | 106,132 | (889) | ||
Swedish Krona | Sell | 9/18/13 | 105,243 | 108,145 | 2,902 | ||
Citibank, N.A. | |||||||
Australian Dollar | Sell | 10/18/13 | 18,459 | 19,085 | 626 | ||
British Pound | Buy | 9/18/13 | 22,313 | 22,109 | 204 | ||
Euro | Buy | 9/18/13 | 27,095 | 26,839 | 256 | ||
Euro | Sell | 9/18/13 | 27,095 | 27,169 | 74 | ||
Japanese Yen | Buy | 11/20/13 | 21,138 | 21,030 | 108 | ||
Credit Suisse International | |||||||
Australian Dollar | Sell | 10/18/13 | 65,495 | 67,714 | 2,219 | ||
British Pound | Sell | 9/18/13 | 85,534 | 85,509 | (25) | ||
Canadian Dollar | Buy | 10/18/13 | 22,002 | 22,043 | (41) | ||
Canadian Dollar | Sell | 10/18/13 | 22,002 | 22,502 | 500 | ||
Euro | Sell | 9/18/13 | 58,023 | 57,446 | (577) | ||
Japanese Yen | Buy | 11/20/13 | 25,040 | 25,176 | (136) | ||
Swedish Krona | Sell | 9/18/13 | 3,062 | 2,975 | (87) | ||
Swiss Franc | Sell | 9/18/13 | 25,904 | 25,505 | (399) | ||
Deutsche Bank AG | |||||||
Euro | Buy | 9/18/13 | 94,899 | 93,782 | 1,117 | ||
Euro | Sell | 9/18/13 | 94,899 | 95,634 | 735 | ||
HSBC Bank USA, National Association | |||||||
Canadian Dollar | Buy | 10/18/13 | 178,196 | 178,558 | (362) | ||
Euro | Sell | 9/18/13 | 69,390 | 68,344 | (1,046) | ||
Hong Kong Dollar | Buy | 11/20/13 | 90,898 | 90,896 | 2 | ||
JPMorgan Chase Bank N.A. | |||||||
Australian Dollar | Sell | 10/18/13 | 141,461 | 146,241 | 4,780 | ||
British Pound | Sell | 9/18/13 | 64,461 | 62,791 | (1,670) | ||
Canadian Dollar | Buy | 10/18/13 | 40,590 | 40,387 | 203 | ||
Singapore Dollar | Buy | 11/20/13 | 50,647 | 50,614 | 33 | ||
Swedish Krona | Buy | 9/18/13 | 105,243 | 108,158 | (2,915) | ||
Royal Bank of Scotland PLC (The) | |||||||
Australian Dollar | Sell | 10/18/13 | 57,152 | 58,508 | 1,356 | ||
State Street Bank and Trust Co. | |||||||
British Pound | Sell | 9/18/13 | 239,248 | 236,531 | (2,717) | ||
Canadian Dollar | Buy | 10/18/13 | 54,056 | 55,282 | (1,226) | ||
Canadian Dollar | Sell | 10/18/13 | 54,056 | 54,151 | 95 | ||
Euro | Sell | 9/18/13 | 25,509 | 25,166 | (343) | ||
Israeli Shekel | Sell | 10/18/13 | 47,142 | 47,564 | 422 | ||
Japanese Yen | Buy | 11/20/13 | 154,348 | 151,472 | 2,876 | ||
Norwegian Krone | Sell | 9/18/13 | 16,381 | 17,178 | 797 | ||
WestPac Banking Corp. | |||||||
British Pound | Sell | 9/18/13 | 81,815 | 80,807 | (1,008) | ||
Euro | Buy | 9/18/13 | 42,030 | 41,917 | 113 | ||
Euro | Sell | 9/18/13 | 42,030 | 41,639 | (391) | ||
Japanese Yen | Buy | 11/20/13 | 34,353 | 33,950 | 403 | ||
| |||||||
Total | $1,104 |
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 March 18, 2013 (commencement of operations) through August 31, 2013 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter. | ||||||
(a) | Percentages indicated are based on net assets of $7,705,264. | |||||
(b) | The aggregate identified cost on a tax basis is $7,829,407, resulting in gross unrealized appreciation and depreciation of $305,420 and $251,254, respectively, or net unrealized appreciation of $54,166. | |||||
(NON) | Non-income-producing security. | |||||
(UR) | At the reporting period end, 300 shares owned by the fund were not formally entered on the company's shareholder register, due to local restrictions on foreign ownership. While the fund has full title to these unregistered shares, these shares do not carry voting rights and, until 2014, are not eligible for receipt of dividends. | |||||
(AFF) | Affiliated company. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with Putnam Short Term Investment Fund, which is under common ownership and control, were as follows: | |||||
Name of affiliate | Market value at the beginning of the reporting period | Purchase cost | Sale proceeds | Investment income | Market value at the end of the reporting period | |
Putnam Short Term Investment Fund * | $— | $6,780,881 | $6,131,604 | $132 | $649,277 | |
* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. | ||||||
At the close of the reporting period, the fund maintained liquid assets totaling $5,584 to cover certain derivatives contracts. | ||||||
DIVERSIFICATION BY COUNTRY ⌂ | ||||||
Distribution of investments by country of risk at the close of the reporting period, excluding collateral received, if any (as a percentage of Portfolio Value): | ||||||
United States | 44.4% | |||||
United Kingdom | 17.4 | |||||
Japan | 6.3 | |||||
Australia | 6.0 | |||||
France | 5.2 | |||||
Germany | 3.9 | |||||
Switzerland | 3.8 | |||||
Netherlands | 1.3 | |||||
Italy | 1.3 | |||||
Taiwan | 1.3 | |||||
Belgium | 1.3 | |||||
Canada | 1.2 | |||||
Denmark | 1.2 | |||||
Greece | 1.1 | |||||
Spain | 0.9 | |||||
Portugal | 0.9 | |||||
Israel | 0.8 | |||||
Norway | 0.7 | |||||
Indonesia | 0.7 | |||||
Brazil | 0.3 | |||||
Total | 100.0% | |||||
⌂ Methodology differs from that used for purposes of complying with the fund’s policy regarding investments in securities of foreign issuers, as discussed further in the fund’s prospectus. | ||||||
Security valuation: Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under ASC 820. If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security. | ||||||
Investments in open-end investment companies (excluding exchange traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares. | ||||||
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. | ||||||
To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. | ||||||
Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount. | ||||||
Forward currency contracts: The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts were used to hedge foreign exchange risk. | ||||||
The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in market value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position. | ||||||
For the fund's average contract amount on forward currency contracts, see the appropriate table at the end of these footnotes. | ||||||
Master agreements: The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the fund’s portfolio. | ||||||
Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty. | ||||||
Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund's future derivative activity. | ||||||
At the close of the reporting period, the fund had a net liability position of $5,257 on open derivative contracts subject to the Master Agreements. There was no collateral posted by the fund for these agreements. |
ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows: | ||||
Level 1: Valuations based on quoted prices for identical securities in active markets. | ||||
Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||
Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement. | ||||
The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period: | ||||
Valuation inputs | ||||
| ||||
Investments in securities: | Level 1 | Level 2 | Level 3 | |
Common stocks *: | ||||
Consumer discretionary | $554,695 | $94,802 | $— | |
Consumer staples | 650,762 | 57,522 | — | |
Energy | 655,277 | 57,750 | — | |
Financials | 1,082,702 | 164,427 | — | |
Health care | 830,864 | 84,897 | — | |
Industrials | 502,125 | 224,846 | — | |
Information technology | 543,859 | 100,664 | — | |
Materials | 311,057 | — | — | |
Telecommunication services | 698,807 | 127,612 | — | |
Utilities | 389,753 | 101,875 | — | |
Total common stocks | 6,219,901 | 1,014,395 | — | |
Short-term investments | 649,277 | — | — | |
|
|
|
||
Totals by level | $6,869,178 | $1,014,395 | $— | |
Valuation inputs | ||||
| ||||
Other financial instruments: | Level 1 | Level 2 | Level 3 | |
Forward currency contracts | $— | $1,104 | $— | |
|
|
|
||
Totals by level | $— | $1,104 | $— | |
* Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation. | ||||
Market Values of Derivative Instruments as of the close of the reporting period | ||||
Asset derivatives | Liability derivatives | |||
| ||||
Derivatives not accounted for as hedging instruments under ASC 815 | Market value | Market value | ||
Foreign exchange contracts | $19,821 | $18,717 | ||
|
|
|||
Total | $19,821 | $18,717 | ||
The average volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was as follows: | ||||
Forward currency contracts (contract amount) | $2,600,000 |
The following table summarizes any derivatives, repurchase agreements, reverse repurchase agreements, securities lending and borrowing transactions, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. | ||||||||||||||||||||||||||||||||||||||||||
Bank of America N.A. | Citibank, N.A. | Credit Suisse International | Deutsche Bank AG | HSBC Bank USA, National Association | JPMorgan Chase Bank N.A. | Royal Bank of Scotland PLC (The) | State Street Bank and Trust Co. | WestPac Banking Corp. | Total | |||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||
Forward currency contracts# | $ | 2,902 | $ | 1,268 | $ | 2,719 | $ | 1,852 | $ | 2 | $ | 5,016 | $ | 1,356 | $ | 4,190 | $ | 516 | $19,821 | |||||||||||||||||||||||
Total Assets | $ | 2,902 | $ | 1,268 | $ | 2,719 | $ | 1,852 | $ | 2 | $ | 5,016 | $ | 1,356 | $ | 4,190 | $ | 516 | $19,821 | |||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||
Forward currency contracts# | $ | 5,774 | $ | — | $ | 1,265 | $ | — | $ | 1,408 | $ | 4,585 | $ | — | $ | 4,286 | $ | 1,399 | $18,717 | |||||||||||||||||||||||
Total Liabilities | $ | 5,774 | $ | — | $ | 1,265 | $ | — | $ | 1,408 | $ | 4,585 | $ | — | $ | 4,286 | $ | 1,399 | $18,717 | |||||||||||||||||||||||
Total Financial and Derivative Net Assets | $ | (2,872 | ) | $ | 1,268 | $ | 1,454 | $ | 1,852 | $ | (1,406 | ) | $ | 431 | $ | 1,356 | $ | (96 | ) | $ | (883 | ) | $1,104 | |||||||||||||||||||
Total collateral received (pledged)## | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ — | |||||||||||||||||||||||
Net amount | $ | (2,872 | ) | $ | 1,268 | $ | 1,454 | $ | 1,852 | $ | (1,406 | ) | $ | 431 | $ | 1,356 | $ | (96 | ) | $ | (883 | ) | $1,104 | |||||||||||||||||||
# | Covered by master netting agreement. | |||||||||||||||||||||||||||||||||||||||||
## | Any over-collateralization of total financial and derivative net assets is not shown. | |||||||||||||||||||||||||||||||||||||||||
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: Not applicable |
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: October 29, 2013 |
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: October 29, 2013 |
By (Signature and Title): |
/s/ Steven D. Krichmar Steven D. Krichmar Principal Financial Officer Date: October 29, 2013 |
Certifications | |
I, Jonathan S. Horwitz, the Principal Executive Officer of the funds listed on Attachment A, certify that: | |
1. I have reviewed each report on Form N-Q of the funds listed on Attachment A: | |
2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report; | |
3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; | |
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have: | |
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared; | |
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and | |
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |
5. The registrant’s other certifying officer and I have disclosed to each registrant’s auditors and the audit committee of each registrant’s board of directors (or persons performing the equivalent functions): | |
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant’s ability to record, process, summarize, and report financial information; and | |
b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant’s internal control over financial reporting. | |
/s/ Jonathan S. Horwitz | |
_____________________________ | |
Date: October 29, 2013 | |
Jonathan S. Horwitz | |
Principal Executive Officer | |
Certifications | |
I, Steven D. Krichmar, the Principal Financial Officer of the funds listed on Attachment A, certify that: | |
1. I have reviewed each report on Form N-Q of the funds listed on Attachment A: | |
2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report; | |
3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; | |
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have: | |
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared; | |
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and | |
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |
5. The registrant’s other certifying officer and I have disclosed to each registrant’s auditors and the audit committee of each registrant’s board of directors (or persons performing the equivalent functions): | |
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant’s ability to record, process, summarize, and report financial information; and | |
b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant’s internal control over financial reporting. | |
/s/ Steven D. Krichmar | |
_______________________________ | |
Date: October 29, 2013 | |
Steven D. Krichmar | |
Principal Financial Officer | |
Attachment A | |
Period (s) ended August 31, 2013 | |
Putnam Arizona Tax Exempt Income Fund | |
Putnam Minnesota Tax Exempt Income Fund | |
Putnam Massachusetts Tax Exempt Income Fund | |
Putnam New York Tax Exempt Income Fund | |
Putnam High Yield Advantage Fund | |
Putnam Equity Income Fund | |
Putnam Pennsylvania Tax Exempt Income Fund | |
Putnam Ohio Tax Exempt Income Fund | |
Putnam New Jersey Tax Exempt Income Fund | |
Putnam Michigan Tax Exempt Income Fund | |
Putnam Dynamic Asset Allocation Equity Fund | |
Putnam Dynamic Risk Allocation Fund | |
Putnam Short Term Municipal Income Fund | |
Putnam Intermediate Term Municipal Income Fund | |
Putnam Emerging Markets Income Fund | |
Putnam Global Dividend Fund |