0000928816-15-000146.txt : 20150128 0000928816-15-000146.hdr.sgml : 20150128 20150128154423 ACCESSION NUMBER: 0000928816-15-000146 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20141130 FILED AS OF DATE: 20150128 DATE AS OF CHANGE: 20150128 EFFECTIVENESS DATE: 20150128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM FUNDS TRUST CENTRAL INDEX KEY: 0001005942 IRS NUMBER: 043299786 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-07513 FILM NUMBER: 15554790 BUSINESS ADDRESS: STREET 1: ONE POST STREET 2: ONE POST OFFICE SQUARE CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6172921010 MAIL ADDRESS: STREET 1: ONE POST OFFICE SQUARE CITY: BOSTON STATE: MA ZIP: 02109 0001005942 S000032935 Putnam Retirement Income Fund Lifestyle 2 C000101642 Class A C000101643 Class B C000101644 Class C C000101645 Class M C000101646 Class R C000101647 Class Y N-Q 1 a_retirementinclifetwo.htm PUTNAM FUNDS TRUST a_retirementinclifetwo.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: (811-07513)
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:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: August 31, 2015
Date of reporting period: November 30, 2014



Item 1. Schedule of Investments:













Putnam Retirement Income Fund Lifestyle 2

The fund's portfolio
11/30/14 (Unaudited)
INVESTMENT COMPANIES (43.2%)(a)
Shares Value
iShares MSCI EAFE ETF 774 $49,528
Putnam Absolute Return 100 Fund Class Y(AFF) 67,262 692,125
Putnam Absolute Return 300 Fund Class Y(AFF) 155,906 1,674,425
Putnam Absolute Return 500 Fund Class Y(AFF) 241,449 2,911,872
Putnam Absolute Return 700 Fund Class Y(AFF) 34,410 448,362
Putnam Money Market Fund Class A(AFF) 543,677 543,677
SPDR S&P 500 ETF Trust 161 33,359
SPDR S&P MidCap 400 ETF Trust 17 4,470
Total investment companies (cost $6,141,050) $6,357,818

COMMON STOCKS (18.8%)(a)
Shares Value
Basic materials (0.6%)
Antofagasta PLC (United Kingdom) 597 $6,859
Asahi Kasei Corp. (Japan) 1,000 8,695
BASF SE (Germany) 81 7,351
BHP Billiton, Ltd. (Australia) 229 5,917
LyondellBasell Industries NV Class A 257 20,267
Mitsubishi Chemical Holdings Corp. (Japan) 1,000 5,152
Rio Tinto PLC (United Kingdom) 178 8,289
SBA Communications Corp. Class A(NON) 94 11,437
Sherwin-Williams Co. (The) 64 15,671
Stora Enso OYJ Class R (Finland) 670 5,920
95,558
Capital goods (1.1%)
ABB, Ltd. (Switzerland) 196 4,399
Allison Transmission Holdings, Inc. 99 3,256
BAE Systems PLC (United Kingdom) 1,564 11,733
Ball Corp. 101 6,774
Canon, Inc. (Japan) 200 6,413
Caterpillar, Inc. 108 10,865
Crown Holdings, Inc.(NON) 249 12,326
IDEX Corp. 61 4,685
Illinois Tool Works, Inc. 227 21,549
Ingersoll-Rand PLC 84 5,297
Joy Global, Inc. 75 3,678
Leggett & Platt, Inc. 97 4,083
Northrop Grumman Corp. 119 16,771
Raytheon Co. 230 24,541
Roper Industries, Inc. 87 13,730
Toyoda Gosei Co., Ltd. (Japan) 200 3,916
Vinci SA (France) 147 7,941
161,957
Communication services (0.5%)
Belgacom SA (Belgium) 233 9,189
Bezeq The Israeli Telecommunication Corp., Ltd. (Israel) 2,114 3,742
CenturyLink, Inc. 418 17,042
Deutsche Telekom AG (Germany) 613 10,438
Nippon Telegraph & Telephone (NTT) Corp. (Japan) 100 5,337
NTT DoCoMo, Inc. (Japan) 200 3,120
Orange (France) 595 10,466
Spark New Zealand, Ltd. (New Zealand) 1,921 4,608
Telstra Corp., Ltd. (Australia) 838 4,053
Verizon Communications, Inc. 65 3,288
Vodafone Group PLC (United Kingdom) 793 2,902
74,185
Conglomerates (0.2%)
AMETEK, Inc. 127 6,472
Bouygues SA (France) 240 9,023
Mitsui & Co., Ltd. (Japan) 500 6,899
22,394
Consumer cyclicals (2.3%)
ADT Corp. (The) 103 3,599
Asahi Glass Co., Ltd. (Japan) 1,000 4,828
Bayerische Motoren Werke (BMW) AG (Germany) 86 9,830
Dai Nippon Printing Co., Ltd. (Japan) 1,000 8,845
Daihatsu Motor Co., Ltd. (Japan) 400 5,483
Daimler AG (Registered Shares) (Germany) 56 4,719
Daito Trust Construction Co., Ltd. (Japan) 100 11,304
Deckers Outdoor Corp.(NON) 24 2,321
Discovery Communications, Inc. Class A(NON) 168 5,863
Expedia, Inc. 56 4,878
Ford Motor Co. 350 5,506
Fuji Heavy Industries, Ltd. (Japan) 200 7,279
Gap, Inc. (The) 126 4,990
Geberit International AG (Switzerland) 15 5,216
General Motors Co. 118 3,945
Hanesbrands, Inc. 72 8,332
Harley-Davidson, Inc. 137 9,546
Harman International Industries, Inc. 7 760
Hilton Worldwide Holdings, Inc.(NON) 454 11,904
Home Depot, Inc. (The) 330 32,802
Host Hotels & Resorts, Inc.(R) 963 22,380
Hugo Boss AG (Germany) 50 6,575
Kimberly-Clark Corp. 224 26,116
Lear Corp. 60 5,755
Lowe's Cos., Inc. 273 17,426
Macy's, Inc. 149 9,672
Marriott International, Inc. Class A 104 8,194
Next PLC (United Kingdom) 95 10,037
NVR, Inc.(NON) 3 3,776
Omnicom Group, Inc. 122 9,427
Reed Elsevier PLC (United Kingdom) 543 9,426
Scripps Networks Interactive Class A 58 4,534
SJM Holdings, Ltd. (Hong Kong) 2,000 3,944
Starz Class A(NON) 66 2,177
Swire Pacific, Ltd. Class A (Hong Kong) 1,000 13,735
Time Warner, Inc. 210 17,875
VF Corp. 33 2,481
Viacom, Inc. Class B 173 13,084
Wyndham Worldwide Corp. 93 7,752
346,316
Consumer staples (1.5%)
British American Tobacco (BAT) PLC (United Kingdom) 141 8,345
Bunge, Ltd. 107 9,712
Colgate-Palmolive Co. 66 4,593
CVS Health Corp. 374 34,169
Dr. Pepper Snapple Group, Inc. 209 15,466
Energizer Holdings, Inc. 25 3,251
Geo Group, Inc. (The)(R) 208 8,380
Imperial Tobacco Group PLC (United Kingdom) 172 7,938
ITOCHU Corp. (Japan) 500 5,760
Japan Tobacco, Inc. (Japan) 100 3,209
Kao Corp. (Japan) 100 3,707
Kirin Holdings Co., Ltd. (Japan) 400 5,134
Lawson, Inc. (Japan) 100 6,167
Liberty Ventures Ser. A(NON) 54 1,979
ManpowerGroup, Inc. 102 6,820
Metcash, Ltd. (Australia) 927 2,059
Mondelez International, Inc. Class A 760 29,792
Monster Beverage Corp.(NON) 104 11,664
Nestle SA (Switzerland) 157 11,782
Philip Morris International, Inc. 118 10,258
Reckitt Benckiser Group PLC (United Kingdom) 45 3,689
Swedish Match AB (Sweden) 163 5,631
Unilever NV ADR (Netherlands) 231 9,401
Unilever PLC (United Kingdom) 87 3,671
Woolworths, Ltd. (Australia) 141 3,734
216,311
Energy (1.1%)
Baker Hughes, Inc. 131 7,467
BP PLC (United Kingdom) 1,566 10,257
Exxon Mobil Corp. 172 15,573
Halliburton Co. 203 8,567
Marathon Petroleum Corp. 185 16,667
Oil States International, Inc.(NON) 34 1,695
Phillips 66 293 21,395
Royal Dutch Shell PLC Class A (United Kingdom) 299 9,943
Royal Dutch Shell PLC Class B (United Kingdom) 165 5,721
Schlumberger, Ltd. 302 25,957
Statoil ASA (Norway) 145 2,764
Superior Energy Services, Inc. 341 6,585
Total SA (France) 164 9,109
Valero Energy Corp. 391 19,007
Woodside Petroleum, Ltd. (Australia) 191 5,811
166,518
Financials (6.3%)
Alexandria Real Estate Equities, Inc.(R) 9 773
Allianz SE (Germany) 16 2,754
American Campus Communities, Inc.(R) 245 9,800
American Capital Agency Corp.(R) 260 6,000
American International Group, Inc. 17 932
American Realty Capital Properties, Inc.(R) 441 4,145
AMP, Ltd. (Australia) 1,441 6,900
Aon PLC 193 17,851
Apartment Investment & Management Co. Class A(R) 258 9,611
Aspen Insurance Holdings, Ltd. 27 1,194
Australia & New Zealand Banking Group, Ltd. (Australia) 115 3,118
AvalonBay Communities, Inc.(R) 145 23,315
Aviva PLC (United Kingdom) 983 7,784
Axis Capital Holdings, Ltd. 78 3,904
Baloise Holding AG (Switzerland) 36 4,698
Banco Santander SA (Spain) 719 6,462
Bank of New York Mellon Corp. (The) 319 12,770
Bendigo and Adelaide Bank, Ltd. (Australia) 406 4,404
Boston Properties, Inc.(R) 185 23,983
CaixaBank SA (Rights) (Spain)(NON) 1,193 80
CaixaBank SA (Spain) 1,193 6,564
Camden Property Trust(R) 159 12,192
CBRE Group, Inc. Class A(NON) 303 10,223
CNP Assurances (France) 450 8,320
Commonwealth Bank of Australia (Australia) 97 6,651
Corio NV (Netherlands)(R) 77 3,893
DCT Industrial Trust, Inc.(R) 246 8,396
DDR Corp.(R) 43 788
Deutsche Boerse AG (Germany) 87 6,357
DiamondRock Hospitality Co.(R) 713 10,645
Digital Realty Trust, Inc.(R) 38 2,670
Douglas Emmett, Inc.(R) 452 12,584
Duke Realty Corp.(R) 567 11,022
DuPont Fabros Technology, Inc.(R) 445 14,503
Equity Lifestyle Properties, Inc.(R) 231 11,460
Equity Residential Trust(R) 227 16,081
Essex Property Trust, Inc.(R) 31 6,275
Everest Re Group, Ltd. 34 5,963
Extra Space Storage, Inc.(R) 176 10,432
Federal Realty Investment Trust(R) 24 3,184
General Growth Properties(R) 751 20,097
Goldman Sachs Group, Inc. (The) 163 30,711
HCP, Inc.(R) 459 20,563
Health Care REIT, Inc.(R) 345 25,413
HSBC Holdings PLC (United Kingdom) 1,385 13,784
Insurance Australia Group, Ltd. (Australia) 1,261 6,824
Jones Lang LaSalle, Inc. 32 4,661
JPMorgan Chase & Co. 641 38,563
KeyCorp 647 8,735
Kimco Realty Corp.(R) 636 16,186
Liberty Property Trust(R) 121 4,281
Macerich Co. (The)(R) 62 4,903
Medical Properties Trust, Inc.(R) 865 11,989
Mid-America Apartment Communities, Inc.(R) 9 663
Morgan Stanley 366 12,876
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Germany) 15 3,089
Natixis SA (France) 1,288 9,095
Outfront Media, Inc.(R) 89 2,408
PartnerRe, Ltd. 57 6,641
Partners Group Holding AG (Switzerland) 13 3,729
Persimmon PLC (United Kingdom) 356 8,506
PNC Financial Services Group, Inc. 286 25,016
Prologis, Inc.(R) 389 16,447
Public Storage(R) 222 41,654
Realty Income Corp.(R) 101 4,692
Regency Centers Corp.(R) 203 12,480
Reinsurance Group of America, Inc. Class A 49 4,200
Resona Holdings, Inc. (Japan) 1,600 8,639
Select Income REIT(R) 211 4,874
Simon Property Group, Inc.(R) 296 53,517
SL Green Realty Corp.(R) 142 16,492
Spirit Realty Capital, Inc.(R) 293 3,431
State Street Corp. 314 24,093
Stockland (Units) (Australia)(R) 1,904 6,662
Strategic Hotels & Resorts, Inc.(NON)(R) 794 10,544
Sumitomo Mitsui Financial Group, Inc. (Japan) 100 3,771
Svenska Handelsbanken AB Class A (Sweden) 227 11,092
Swedbank AB Class A (Sweden) 131 3,430
Taubman Centers, Inc.(R) 159 12,639
Tryg A/S (Denmark) 33 3,803
Two Harbors Investment Corp.(R) 571 6,001
UDR, Inc.(R) 71 2,185
Visa, Inc. Class A 15 3,873
Vornado Realty Trust(R) 211 23,539
Weingarten Realty Investors(R) 313 11,393
Wells Fargo & Co. 176 9,588
Westpac Banking Corp. (Australia) 397 10,999
WP Carey, Inc.(R) 16 1,090
XL Group PLC 199 7,068
Zurich Insurance Group AG (Switzerland) 27 8,456
924,066
Health care (2.0%)
AstraZeneca PLC (United Kingdom) 179 13,337
C.R. Bard, Inc. 55 9,204
Cardinal Health, Inc. 152 12,493
Celgene Corp.(NON) 188 21,374
Charles River Laboratories International, Inc.(NON) 40 2,590
Edwards Lifesciences Corp.(NON) 76 9,856
Eisai Co., Ltd. (Japan) 100 3,583
Gilead Sciences, Inc.(NON) 81 8,126
GlaxoSmithKline PLC (United Kingdom) 280 6,486
Health Net, Inc.(NON) 37 1,901
Intuitive Surgical, Inc.(NON) 12 6,213
Johnson & Johnson 273 29,552
McKesson Corp. 99 20,865
Merck & Co., Inc. 578 34,911
Mettler-Toledo International, Inc.(NON) 10 2,933
Novartis AG (Switzerland) 118 11,412
Pfizer, Inc. 1,199 37,349
Roche Holding AG-Genusschein (Switzerland) 31 9,267
Sanofi (France) 87 8,409
Takeda Pharmaceutical Co., Ltd. (Japan) 200 8,378
Ventas, Inc.(R) 192 13,738
WellPoint, Inc. 134 17,140
289,117
Technology (2.2%)
Activision Blizzard, Inc. 430 9,310
Amdocs, Ltd. 134 6,532
Apple, Inc. 516 61,368
Avago Technologies, Ltd. 90 8,406
Broadcom Corp. Class A 418 18,028
Computer Sciences Corp. 196 12,422
Dun & Bradstreet Corp. (The) 51 6,474
eBay, Inc.(NON) 504 27,660
Electronic Arts, Inc.(NON) 24 1,054
EMC Corp. 313 9,500
Google, Inc. Class A(NON) 59 32,396
Hoya Corp. (Japan) 200 7,111
L-3 Communications Holdings, Inc. 119 14,827
Leidos Holdings, Inc. 104 4,203
Marvell Technology Group, Ltd. 495 7,088
Microsoft Corp. 84 4,016
NetApp, Inc. 343 14,595
Nippon Electric Glass Co., Ltd. (Japan) 1,000 4,575
Oracle Corp. 762 32,316
Symantec Corp. 458 11,949
Western Digital Corp. 176 18,176
Xerox Corp. 860 12,006
324,012
Transportation (0.4%)
ComfortDelgro Corp., Ltd. (Singapore) 3,000 5,971
Delta Air Lines, Inc. 26 1,213
Deutsche Post AG (Germany) 160 5,314
Japan Airlines Co., Ltd. (Japan)(UR) 200 5,916
Southwest Airlines Co. 508 21,245
Union Pacific Corp. 124 14,479
Yangzijiang Shipbuilding Holdings, Ltd. (China) 4,000 3,754
57,892
Utilities and power (0.6%)
Alliant Energy Corp. 17 1,069
Edison International 239 15,191
Electricite de France (EDF) (France) 187 5,602
Energias de Portugal (EDP) SA (Portugal) 1,789 7,328
ENI SpA (Italy) 295 5,840
Entergy Corp. 288 24,163
OGE Energy Corp. 144 5,139
Red Electrica Corporacion SA (Spain) 103 9,415
Snam SpA (Italy) 1,471 7,797
UGI Corp. 189 7,127
88,671
Total common stocks (cost $2,316,869) $2,766,997

U.S. TREASURY OBLIGATIONS (9.1%)(a)
Principal amount Value
U.S. Treasury Bonds
     3 3/4s, November 15, 2043 $40,000 $46,644
     2 3/4s, August 15, 2042 60,000 58,158
U.S. Treasury Notes
     3 1/2s, February 15, 2018 40,000 43,153
     2 3/4s, November 15, 2023 50,000 52,578
     2 3/8s, August 15, 2024 160,000 162,536
     2s, February 15, 2023 70,000 69,744
     2s, November 30, 2020 70,000 70,921
     1 3/4s, May 31, 2016 130,000 132,854
     1 1/8s, December 31, 2019 160,000 156,685
     1s, August 31, 2016(SEGCCS) 270,000 272,842
     3/4s, March 31, 2018 200,000 198,031
     3/4s, December 31, 2017 70,000 69,544
Total U.S. treasury obligations (cost $1,307,490) $1,333,690

CORPORATE BONDS AND NOTES (6.5%)(a)
Principal amount Value
Basic materials (0.4%)
Agrium, Inc. sr. unsec. unsub. 5 1/4s, 2045 (Canada) $2,000 $2,120
Albemarle Corp. sr. unsec. notes 4.15s, 2024 3,000 3,059
ArcelorMittal SA sr. unsec. bonds 10.35s, 2019 (France) 5,000 6,088
CF Industries, Inc. company guaranty sr. unsec. notes 5 3/8s, 2044 4,000 4,311
CF Industries, Inc. company guaranty sr. unsec. notes 5.15s, 2034 3,000 3,196
CF Industries, Inc. company guaranty sr. unsec. unsub. notes 7 1/8s, 2020 2,000 2,409
Eastman Chemical Co. sr. unsec. unsub. notes 3.8s, 2025 5,000 5,100
Glencore Finance Canada, Ltd. 144A company guaranty sr. unsec. notes 6s, 2041 (Canada) 5,000 5,274
Huntsman International, LLC company guaranty sr. unsec. unsub. notes 4 7/8s, 2020 10,000 10,175
Methanex Corp. sr. unsec. unsub. notes 4 1/4s, 2024 (Canada) 2,000 2,030
Methanex Corp. sr. unsec. unsub. notes 3 1/4s, 2019 (Canada) 2,000 2,019
NOVA Chemicals Corp. 144A sr. unsec. notes 5s, 2025 (Canada) 2,000 2,068
Packaging Corp. of America sr. unsec. unsub. notes 4 1/2s, 2023 5,000 5,299
PPG Industries, Inc. sr. unsec. unsub. debs. 7.4s, 2019 5,000 6,294
59,442
Capital goods (0.1%)
Reynolds Group Issuer, Inc./Reynolds Group Issuer, LLC/Reynolds Group Issuer Lu company guaranty sr. notes 5 3/4s, 2020 10,000 10,288
United Technologies Corp. sr. unsec. unsub. notes 4 1/2s, 2042 5,000 5,403
15,691
Communication services (1.4%)
American Tower Corp. sr. unsec. notes 7s, 2017(R) 5,000 5,661
CC Holdings GS V, LLC/Crown Castle GS III Corp. company guaranty sr. notes 3.849s, 2023 5,000 4,984
CCO Holdings, LLC/CCO Holdings Capital Corp. company guaranty sr. unsec. notes 5 1/4s, 2022 5,000 4,975
CCO Holdings, LLC/CCO Holdings Capital Corp. company guaranty sr. unsec. unsub. bonds 5 1/8s, 2023 10,000 9,800
Comcast Cable Communications Holdings, Inc. company guaranty sr. unsec. notes 9.455s, 2022 5,000 7,204
Comcast Corp. company guaranty sr. unsec. unsub. notes 6.95s, 2037 10,000 13,818
Crown Castle International Corp. sr. unsec. notes 5 1/4s, 2023(R) 5,000 5,088
CSC Holdings, LLC sr. unsec. unsub. notes 6 3/4s, 2021 10,000 11,050
DISH DBS Corp. 144A company guaranty sr. unsec. notes 5 7/8s, 2024 5,000 5,038
Intelsat Luxembourg SA company guaranty sr. unsec. bonds 7 3/4s, 2021 (Luxembourg) 15,000 15,544
Koninklijke (Royal) KPN NV sr. unsec. unsub. bonds 8 3/8s, 2030 (Netherlands) 5,000 6,953
Level 3 Financing, Inc. company guaranty sr. unsec. unsub. notes 6 1/8s, 2021 10,000 10,425
Orange SA sr. unsec. unsub. notes 5 3/8s, 2019 (France) 5,000 5,660
Qwest Corp. sr. unsec. notes 6 3/4s, 2021 4,000 4,609
Rogers Communications, Inc. company guaranty sr. unsec. bonds 8 3/4s, 2032 (Canada) 4,000 5,675
Sprint Corp. company guaranty sr. unsec. notes 7 1/4s, 2021 35,000 35,700
T-Mobile USA, Inc. company guaranty sr. unsec. unsub. notes 6 1/8s, 2022 15,000 15,244
Telefonica Emisiones SAU company guaranty sr. unsec. unsub. notes 7.045s, 2036 (Spain) 5,000 6,497
Verizon Communications, Inc. sr. unsec. notes 6.4s, 2038 6,000 7,462
Verizon Communications, Inc. sr. unsec. unsub. notes 6.4s, 2033 2,000 2,477
Verizon Communications, Inc. sr. unsec. unsub. notes 5.9s, 2054 200 5,198
Verizon Communications, Inc. sr. unsec. unsub. notes 5.05s, 2034 5,000 5,350
Verizon Communications, Inc. sr. unsec. unsub. notes 4.4s, 2034 5,000 4,966
Verizon New York, Inc. company guaranty sr. unsec. notes Ser. B, 7 3/8s, 2032 1,000 1,269
200,647
Consumer cyclicals (1.1%)
21st Century Fox America, Inc. company guaranty sr. unsec. notes 7.85s, 2039 5,000 7,267
21st Century Fox America, Inc. company guaranty sr. unsec. unsub. notes 3s, 2022 5,000 4,976
Bed Bath & Beyond, Inc. sr. unsec. notes 5.165s, 2044 5,000 5,088
CBS Corp. company guaranty sr. unsec. debs. 7 7/8s, 2030 10,000 13,669
D.R. Horton, Inc. company guaranty sr. unsec. notes 5 3/4s, 2023 5,000 5,313
Dollar General Corp. sr. unsec. notes 3 1/4s, 2023 5,000 4,560
Expedia, Inc. company guaranty sr. unsec. unsub. notes 5.95s, 2020 5,000 5,633
Ford Motor Co. sr. unsec. unsub. notes 9.98s, 2047 2,000 3,175
Ford Motor Co. sr. unsec. unsub. notes 7.45s, 2031 1,000 1,350
Ford Motor Co. sr. unsec. unsub. notes 7.4s, 2046 5,000 7,103
Gannett Co., Inc. 144A company guaranty sr. unsec. notes 4 7/8s, 2021 2,000 2,010
General Motors Financial Co., Inc. company guaranty sr. unsec. notes 3 1/4s, 2018 2,000 2,033
General Motors Financial Co., Inc. company guaranty sr. unsec. notes 2 3/4s, 2016 3,000 3,034
Host Hotels & Resorts LP sr. unsec. unsub. notes 5 1/4s, 2022(R) 5,000 5,488
iHeartCommunications, Inc. company guaranty sr. notes 9s, 2021 15,000 14,625
INVISTA Finance, LLC 144A company guaranty sr. notes 4 1/4s, 2019 3,000 2,993
Macy's Retail Holdings, Inc. company guaranty sr. unsec. notes 6.9s, 2029 4,000 5,102
Macy's Retail Holdings, Inc. company guaranty sr. unsec. notes 5 1/8s, 2042 5,000 5,402
Macy's Retail Holdings, Inc. company guaranty sr. unsec. notes 3 5/8s, 2024 6,000 6,024
Marriott International, Inc. sr. unsec. unsub. notes 3s, 2019 5,000 5,150
MGM Resorts International company guaranty sr. unsec. notes 5 1/4s, 2020 15,000 15,150
Neiman Marcus Group, Ltd. 144A company guaranty sr. unsec. notes 8 3/4s, 2021(PIK) 10,000 10,775
Nordstrom, Inc. sr. unsec. notes 5s, 2044 4,000 4,481
QVC, Inc. company guaranty sr. notes 4.85s, 2024 2,000 2,034
QVC, Inc. 144A sr. bonds 4.45s, 2025 2,000 1,949
Sirius XM Radio, Inc. 144A sr. unsec. bonds 5 7/8s, 2020 5,000 5,275
Tiffany & Co. 144A sr. unsec. notes 4.9s, 2044 5,000 5,167
Walt Disney Co. (The) sr. unsec. notes 2 3/4s, 2021 5,000 5,090
159,916
Consumer staples (0.3%)
Altria Group, Inc. company guaranty sr. unsec. unsub. notes 2.85s, 2022 10,000 9,706
Constellation Brands, Inc. company guaranty sr. unsec. unsub. notes 6s, 2022 5,000 5,532
Constellation Brands, Inc. company guaranty sr. unsec. unsub. notes 3 7/8s, 2019 2,000 2,037
Corrections Corp. of America company guaranty sr. unsec. notes 4 5/8s, 2023(R) 2,000 1,940
CVS Pass-Through Trust 144A sr. mtge. notes 4.704s, 2036 4,890 5,287
ERAC USA Finance, LLC 144A company guaranty sr. unsec. notes 7s, 2037 5,000 6,715
Molson Coors Brewing Co. company guaranty sr. unsec. unsub. notes 5s, 2042 5,000 5,287
Tyson Foods, Inc. company guaranty sr. unsec. bonds 4 7/8s, 2034 2,000 2,155
Tyson Foods, Inc. company guaranty sr. unsec. unsub. notes 6.6s, 2016 5,000 5,371
Walgreens Boots Alliance, Inc. company guaranty sr. unsec. unsub. notes 3.3s, 2021 5,000 5,070
49,100
Energy (0.4%)
Anadarko Petroleum Corp. sr. notes 5.95s, 2016 2,000 2,162
Anadarko Petroleum Corp. sr. unsec. notes 6.45s, 2036 5,000 6,092
California Resources Corp. 144A company guaranty sr. unsec. notes 5s, 2020 2,000 1,800
EQT Midstream Partners LP company guaranty sr. unsec. notes 4s, 2024 2,000 1,987
Kerr-McGee Corp. company guaranty sr. unsec. unsub. notes 7 7/8s, 2031 10,000 13,489
Kodiak Oil & Gas Corp. company guaranty sr. unsec. unsub. notes 5 1/2s, 2022 5,000 4,875
Petrobras International Finance Co. SA (PIFCO) company guaranty sr. unsec. notes 3 7/8s, 2016 (Brazil) 5,000 5,020
Plains Exploration & Production Co. company guaranty sr. unsec. notes 6 3/4s, 2022 3,000 3,349
Statoil ASA company guaranty sr. unsec. notes 5.1s, 2040 (Norway) 5,000 5,713
Weatherford International, Ltd. of Bermuda company guaranty sr. unsec. notes 9 7/8s, 2039 (Bermuda) 5,000 7,127
Williams Cos., Inc. (The) sr. unsec. notes 4.55s, 2024 5,000 4,945
Williams Partners LP sr. unsec. notes 5.4s, 2044 3,000 3,162
Williams Partners LP sr. unsec. notes 4.3s, 2024 2,000 2,056
61,777
Financials (1.5%)
Ally Financial, Inc. company guaranty sr. unsec. unsub. notes 7 1/2s, 2020 15,000 17,588
American International Group, Inc. jr. sub. FRB bonds 8.175s, 2058 4,000 5,480
ARC Properties Operating Partnership LP/Clark Acquisition, LLC company guaranty sr. unsec. unsub. notes 4.6s, 2024(R) 7,000 6,650
Associates Corp. of North America sr. unsec. notes 6.95s, 2018 7,000 8,239
Bank of America Corp. jr. unsec. sub. FRN notes Ser. Z, 6 1/2s, perpetual maturity 10,000 10,288
Berkshire Hathaway Finance Corp. company guaranty sr. unsec. unsub. notes 4.3s, 2043 5,000 5,129
CBL & Associates LP company guaranty sr. unsec. unsub. notes 5 1/4s, 2023(R) 7,000 7,484
CIT Group, Inc. sr. unsec. notes 5s, 2022 20,000 20,625
Citigroup, Inc. jr. unsec. sub. FRB bonds Ser. B, 5.9s, perpetual maturity 2,000 1,985
DDR Corp. sr. unsec. unsub. notes 7 7/8s, 2020(R) 5,000 6,217
Duke Realty LP sr. unsec. unsub. notes 3 7/8s, 2021(R) 5,000 5,214
EPR Properties unsec. notes 5 1/4s, 2023(R) 2,000 2,130
Fairfax US, Inc. 144A company guaranty sr. unsec. notes 4 7/8s, 2024 2,000 1,965
Genworth Holdings, Inc. sr. unsec. unsub. notes 7.7s, 2020 5,000 5,218
HBOS PLC 144A unsec. sub. bonds 6s, 2033 (United Kingdom) 10,000 11,402
HSBC Capital Funding LP 144A bank guaranty jr. unsec. sub. FRB bonds 10.176s, perpetual maturity (Jersey) 15,000 22,500
International Lease Finance Corp. sr. unsec. unsub. notes 4 7/8s, 2015 7,000 7,079
Liberty Mutual Group, Inc. 144A company guaranty jr. unsec. sub. bonds 7.8s, 2037 5,000 5,863
Liberty Property LP sr. unsec. unsub. notes 3 3/8s, 2023(R) 5,000 4,913
Massachusetts Mutual Life Insurance Co. 144A notes 8 7/8s, 2039 3,000 4,769
PHH Corp. sr. unsec. unsub. notes 6 3/8s, 2021 5,000 4,688
Progressive Corp. (The) jr. unsec. sub. FRN notes 6.7s, 2037 12,000 12,990
Prudential Financial, Inc. jr. unsec. sub. FRN notes 5.2s, 2044 5,000 4,950
Royal Bank of Scotland PLC (The) unsec. sub. FRN notes Ser. REGS, 9 1/2s, 2022 (United Kingdom) 5,000 5,743
Santander UK PLC 144A unsec. sub. notes 5s, 2023 (United Kingdom) 10,000 10,632
Springleaf Finance Corp. sr. unsec. unsub. notes 6s, 2020 10,000 10,325
Teachers Insurance & Annuity Association of America 144A unsec. sub. FRN notes 4.375s, 2054 2,000 2,138
USI, Inc./NY 144A sr. unsec. notes 7 3/4s, 2021 5,000 5,063
Willis Group Holdings PLC company guaranty sr. unsec. unsub. notes 5 3/4s, 2021 5,000 5,607
WP Carey, Inc. sr. unsec. unsub. notes 4.6s, 2024(R) 5,000 5,249
228,123
Health care (0.3%)
Fresenius Medical Care US Finance II, Inc. 144A company guaranty sr. unsec. notes 5 5/8s, 2019 2,000 2,150
HCA, Inc. company guaranty sr. notes 3 3/4s, 2019 15,000 14,925
Omega Healthcare Investors, Inc. company guaranty sr. unsec. notes 4.95s, 2024(R) 5,000 5,123
Omnicare, Inc. sr. unsec. notes 4 3/4s, 2022 2,000 2,035
Par Pharmaceutical Cos., Inc. company guaranty sr. unsec. unsub. notes 7 3/8s, 2020 5,000 5,263
Service Corporation International sr. unsec. unsub. notes 5 3/8s, 2024 15,000 15,450
44,946
Technology (0.3%)
Apple, Inc. sr. unsec. unsub. notes 3.85s, 2043 3,000 2,917
Apple, Inc. sr. unsec. unsub. notes 3.45s, 2024 5,000 5,198
First Data Corp. 144A company guaranty notes 8 1/4s, 2021 25,000 26,750
Jabil Circuit, Inc. sr. unsec. notes 8 1/4s, 2018 2,000 2,310
37,175
Utilities and power (0.7%)
AES Corp./Virginia (The) sr. unsec. notes 8s, 2020 5,000 5,813
Consolidated Edison Co. of New York sr. unsec. unsub. notes 4.2s, 2042 5,000 5,001
Duke Energy Carolinas, LLC sr. mtge. notes 4 1/4s, 2041 5,000 5,304
Electricite de France (EDF) 144A sr. unsec. notes 6.95s, 2039 (France) 5,000 6,700
Energy Transfer Partners LP sr. unsec. unsub. notes 6 1/2s, 2042 5,000 5,675
Enterprise Products Operating, LLC company guaranty sr. unsec. unsub. notes 4.85s, 2042 5,000 5,162
EP Energy, LLC/Everest Acquisition Finance, Inc. company guaranty sr. unsec. unsub. notes 7 3/4s, 2022 10,000 10,200
FirstEnergy Corp. sr. unsec. unsub. notes 4 1/4s, 2023 6,000 6,099
Kinder Morgan Energy Partners LP sr. unsec. unsub. notes 5.4s, 2044 2,000 1,994
Kinder Morgan Energy Partners LP sr. unsec. unsub. notes 4 1/4s, 2024 3,000 3,028
Kinder Morgan Energy Partners LP sr. unsec. unsub. notes 3 1/2s, 2021 5,000 5,012
Kinder Morgan, Inc./DE 144A sr. notes 5s, 2021 15,000 15,825
PPL Capital Funding, Inc. company guaranty sr. unsec. unsub. notes 4.2s, 2022 10,000 10,585
Puget Sound Energy, Inc. jr. sub. FRN notes Ser. A, 6.974s, 2067 5,000 5,219
Texas-New Mexico Power Co. 144A 1st mtge. bonds Ser. A, 9 1/2s, 2019 5,000 6,448
Westar Energy, Inc. sr. mtge. notes 4 1/8s, 2042 5,000 5,138
103,203
Total corporate bonds and notes (cost $938,867) $960,020

CONVERTIBLE BONDS AND NOTES (3.2%)(a)
Principal amount Value
Basic materials (0.1%)
AK Steel Corp. cv. company guaranty sr. unsec. unsub. notes 5s, 2019 $6,000 $8,048
Cemex SAB de CV cv. unsec. sub. notes 3 3/4s, 2018 (Mexico) 3,000 4,226
12,274
Capital goods (0.1%)
General Cable Corp. cv. unsec. sub. notes stepped-coupon 4 1/2s (2 1/4s, 11/15/19) 2029(STP) 4,000 2,708
Trinity Industries, Inc. cv. unsec. sub. notes 3 7/8s, 2036 4,000 5,803
WESCO International, Inc. cv. company guaranty sr. unsec. notes 6s, 2029 2,000 5,820
14,331
Communication services (0.1%)
Clearwire Communications, LLC/Clearwire Finance, Inc. 144A cv. company guaranty sr. unsec. notes 8 1/4s, 2040 1,000 1,100
Level 3 Communications, Inc. cv. sr. unsec. unsub. notes Ser. B, 7s, 2015 4,000 7,338
Powerwave Technologies, Inc. cv. sr. unsec. sub. notes 3 7/8s, 2027 (In default)(F)(NON) 7,000 1
TeleCommunication Systems, Inc. cv. sr. unsec. notes 7 3/4s, 2018 4,000 3,780
12,219
Consumer cyclicals (0.6%)
Callaway Golf Co. cv. sr. unsec. bonds 3 3/4s, 2019 3,000 3,330
CBIZ, Inc. 144A cv. sr. sub. notes 4 7/8s, 2015 3,000 3,699
Host Hotels & Resorts LP 144A cv. company guaranty sr. unsec. notes 2 1/2s, 2029(R) 4,000 7,165
Jarden Corp. 144A cv. company guaranty sr. unsec. sub. notes 1 1/8s, 2034 9,000 9,529
Lennar Corp. 144A cv. sr. notes 2 3/4s, 2020 3,000 6,405
Liberty Interactive, LLC cv. sr. unsec. unsub. bonds 3/4s, 2043 5,000 7,031
Liberty Interactive, LLC cv. sr. unsec. unsub. notes 3 1/2s, 2031 9,000 4,944
Liberty Interactive, LLC 144A cv. sr. unsec. notes 1s, 2043 6,000 6,593
M/I Homes, Inc. cv. company guaranty sr. sub. notes 3s, 2018 3,000 3,081
MGM Resorts International Co. cv. company guaranty sr. unsec. notes 4 1/4s, 2015 11,000 13,812
Navistar International Corp. 144A cv. sr. unsec. unsub. notes 4 3/4s, 2019 4,000 3,990
Priceline Group, Inc. (The) cv. sr. unsec. unsub. notes 1s, 2018 4,000 5,393
Ryland Group, Inc. (The) cv. company guaranty sr. unsub. notes 1 5/8s, 2018 3,000 4,114
Sirius XM Radio, Inc. 144A cv. company guaranty sr. unsec. sub. notes 7s, 2014 3,000 5,916
Standard Pacific Corp. cv. company guaranty sr. unsec. unsub. notes 1 1/4s, 2032 6,000 6,904
TiVo, Inc. 144A cv. sr. unsec. notes 4s, 2016 3,000 3,647
95,553
Consumer staples (0.1%)
Rite Aid Corp. cv. sr. unsec. unsub. notes 8 1/2s, 2015 2,000 4,291
Vector Group, Ltd. cv. sr. unsec. FRN notes 2 1/2s, 2019 7,000 9,898
14,189
Energy (0.3%)
Chesapeake Energy Corp. cv. company guaranty sr. unsec. notes 2 1/4s, 2038 18,000 17,089
Cobalt International Energy, Inc. cv. sr. unsec. unsub. notes 2 5/8s, 2019 9,000 6,351
Energy XXI, Ltd. 144A cv. sr. unsec. notes 3s, 2018 4,000 2,600
Goodrich Petroleum Corp. cv. company guaranty sr. unsub. notes 5s, 2032 4,000 2,599
Hornbeck Offshore Services, Inc. cv. company guaranty sr. unsec. notes 1 1/2s, 2019 3,000 2,706
Peabody Energy Corp. cv. jr. unsec. sub. debs. 4 3/4s, 2041 4,000 2,473
SEACOR Holdings, Inc. cv. sr. unsec. bonds 3s, 2028 5,000 4,631
Vantage Drilling Co. cv. sr. unsec. unsub. notes 7 7/8s, 2042 4,000 3,850
42,299
Financials (0.4%)
Ares Capital Corp. cv. sr. unsec. notes 5 3/4s, 2016 7,000 7,263
Blackstone Mortgage Trust, Inc. cv. sr. unsec. unsub. notes 5 1/4s, 2018(R) 5,000 5,216
Brookdale Senior Living, Inc. cv. sr. unsec. unsub. notes 2 3/4s, 2018 5,000 6,678
Cowen Group, Inc. 144A cv. sr. unsec. notes 3s, 2019 4,000 4,100
Empire State Realty OP LP 144A cv. sr. unsec. notes 2 5/8s, 2019(R) 3,000 2,964
Forest City Enterprises, Inc. cv. sr. unsec. notes 4 1/4s, 2018 7,000 8,015
Hercules Technology Growth Capital, Inc. cv. sr. unsec. notes 6s, 2016 4,000 5,448
iStar Financial, Inc. cv. sr. unsec. unsub. notes 3s, 2016(R) 4,000 5,210
Radian Group, Inc. cv. sr. unsec. unsub. notes 3s, 2017 4,000 6,253
Spirit Realty Capital, Inc. cv. sr. unsec. notes 2 7/8s, 2019(R) 3,000 2,925
Starwood Property Trust, Inc. cv. sr. unsec. unsub. notes 4s, 2019(R) 5,000 5,609
TCP Capital Corp. 144A cv. sr. unsec. notes 5 1/4s, 2019 5,000 4,988
Walter Investment Management Corp. cv. sr. unsec. sub. notes 4 1/2s, 2019 2,000 1,551
66,220
Health care (0.5%)
Accuray, Inc. cv. sr. unsec. notes 3 3/4s, 2016 5,000 5,103
Alere, Inc. cv. sr. unsec. sub. notes 3s, 2016 4,000 4,265
China Medical Technologies, Inc. cv. sr. unsec. bonds Ser. CMT, 4s, 2016 (China) (In default)(F)(NON) 5,000 400
China Medical Technologies, Inc. 144A cv. sr. unsec. notes 6 1/4s, 2016 (China) (In default)(F)(NON) 3,000 210
Cubist Pharmaceuticals, Inc. cv. sr. unsec. bonds 1 1/8s, 2018 3,000 3,491
Cubist Pharmaceuticals, Inc. cv. sr. unsec. notes 2 1/2s, 2017 1,000 2,618
Endo Health Solutions, Inc. cv. sr. unsec. sub. notes 1 3/4s, 2015 3,000 7,496
Gilead Sciences, Inc. cv. sr. unsec. notes 1 5/8s, 2016 3,000 13,217
HealthSouth Corp. cv. sr. unsec. sub. notes 2s, 2043 7,000 8,116
Hologic, Inc. cv. sr. unsec. unsub. notes stepped-coupon 2s (zero %, 3/1/18) 2042(STP) 8,000 8,885
Jazz Investments I, Ltd. 144A cv. company guaranty sr. unsec. notes 1 7/8s, 2021 (Ireland) 8,000 9,390
Medidata Solutions, Inc. cv. sr. unsec. notes 1s, 2018 6,000 6,293
PDL BioPharma, Inc. cv. sr. unsec. unsub. notes 4s, 2018 1,000 1,004
Teleflex, Inc. cv. sr. unsec. sub. notes 3 7/8s, 2017 3,000 5,846
76,334
Technology (0.9%)
Bottomline Technologies (DE), Inc. cv. sr. unsec. unsub. notes 1 1/2s, 2017 3,000 3,133
Ciena Corp. cv. sr. unsec. notes 4s, 2020 5,000 5,819
Intel Corp. cv. jr. sub. notes 3 1/4s, 2039 3,000 5,389
j2 Global, Inc. cv. sr. unsec. notes 3 1/4s, 2029 5,000 5,216
Micron Technology, Inc. cv. sr. unsec. bonds Ser. E, 1 5/8s, 2033 11,000 36,053
Novellus Systems, Inc. cv. sr. unsec. notes 2 5/8s, 2041 3,000 7,131
ON Semiconductor Corp. cv. company guaranty sr. unsec. sub. notes Ser. B, 2 5/8s, 2026 5,000 5,672
Safeguard Scientifics, Inc. cv. sr. unsec. bonds 5 1/4s, 2018 8,000 10,085
Salesforce.com, Inc. cv. sr. unsec. unsub. notes 1/4s, 2018 5,000 5,709
SanDisk Corp. cv. sr. unsec. notes 1 1/2s, 2017 10,000 20,281
ServiceNow, Inc. cv. sr. unsec. unsub. bonds zero %, 2018 3,000 3,315
Vishay Intertechnology, Inc. 144A cv. sr. unsec. notes 2 1/4s, 2041 5,000 4,453
Web.com Group, Inc. cv. sr. unsec. unsub. notes 1s, 2018 5,000 4,438
Xilinx, Inc. cv. sr. unsec. notes 2 5/8s, 2017 3,000 4,751
Yahoo!, Inc. 144A cv. sr. unsec. notes zero %, 2018 7,000 8,037
129,482
Transportation (0.1%)
Scorpio Tankers, Inc. 144A cv. sr. unsec. notes 2 3/8s, 2019 10,000 9,475
9,475
Total convertible bonds and notes (cost $420,120) $472,376

MORTGAGE-BACKED SECURITIES (1.8%)(a)
Principal amount Value
Banc of America Commercial Mortgage Trust Ser. 06-5, Class A3, 5.39s, 2047 $20,000 $20,156
Banc of America Merrill Lynch Commercial Mortgage, Inc. Ser. 05-4, Class A5A, 4.933s, 2045 15,000 15,242
COMM Mortgage Trust
     Ser. 12-CR1, Class AM, 3.912s, 2045 13,000 13,700
     Ser. 12-CR5, Class XA, IO, 2.045s, 2045 161,780 15,753
     Ser. 13-LC13, Class XA, IO, 1.611s, 2046 156,533 11,710
     Ser. 14-CR16, Class XA, IO, 1.439s, 2047 123,302 9,335
     Ser. 14-CR14, Class XA, IO, 1.053s, 2047 184,744 9,217
JPMorgan Chase Commercial Mortgage Securities Trust
     FRB Ser. 07-LD11, Class A2, 5.96s, 2049 437 437
     Ser. 04-LN2, Class A2, 5.115s, 2041 2,465 2,470
LB-UBS Commercial Mortgage Trust Ser. 05-C7, Class C, 5.35s, 2040 10,000 10,043
Merrill Lynch Mortgage Trust FRB Ser. 05-CIP1, Class AM, 5.107s, 2038 25,000 25,523
ML-CFC Commercial Mortgage Trust FRB Ser. 06-4, Class A2FL, 0.274s, 2049 3,859 3,858
Morgan Stanley Bank of America Merrill Lynch Trust
     FRB Ser. 13-C11, Class AS, 4.564s, 2046 10,000 10,797
     Ser. 13-C13, Class XA, IO, 1.398s, 2046 99,092 7,504
Morgan Stanley Capital I Trust Ser. 07-IQ14, Class A2, 5.61s, 2049 9,080 9,139
UBS-Citigroup Commercial Mortgage Trust 144A Ser. 11-C1, Class AS, 5.154s, 2045 10,000 11,386
Wachovia Bank Commercial Mortgage Trust FRB Ser. 06-C25, Class AJ, 5.896s, 2043 16,000 16,592
Wells Fargo Commercial Mortgage Trust FRB Ser. 13-LC12, Class AS, 4.437s, 2046 10,000 10,791
WF-RBS Commercial Mortgage Trust
     Ser. 13-C12, Class AS, 3.56s, 2048 10,000 10,258
     Ser. 12-C9, Class AS, 3.388s, 2045 10,000 10,229
WF-RBS Commercial Mortgage Trust 144A
     Ser. 12-C10, Class XA, IO, 1.947s, 2045 200,838 20,092
     Ser. 13-C12, Class XA, IO, 1.639s, 2048 218,201 17,921
Total mortgage-backed securities (cost $260,126) $262,153

CONVERTIBLE PREFERRED STOCKS (1.7%)(a)
Shares Value
Basic materials (0.1%)
Alcoa, Inc. Ser. 1, $2.688 cv. pfd.(NON) 147 $7,835
Weyerhaeuser Co. Ser. A, $3.188 cv. pfd.(R) 181 10,611
18,446
Capital goods (0.1%)
United Technologies Corp. $3.75 cv. pfd. 235 14,121
14,121
Communication services (0.2%)
American Tower Corp. Ser. A, $5.25 cv. pfd.(R) 124 14,136
Cincinnati Bell, Inc. Ser. B, $3.378 cum. cv. pfd. 147 7,175
Crown Castle International Corp. Ser. A, Class A, $4.50 cv. pfd.(R) 73 7,738
Iridium Communications, Inc. Ser. B, 6.75% cv. pfd. 5 1,778
Iridium Communications, Inc. 144A $7.00 cv. pfd. 26 2,998
33,825
Consumer cyclicals (0.1%)
FelCor Lodging Trust, Inc. Ser. A, $0.488 cum. cv. pfd.(R) 215 5,721
Stanley Black & Decker, Inc. $6.25 cv. pfd. 99 11,424
17,145
Consumer staples (0.1%)
Tyson Foods, Inc. $2.375 cv. pfd. 129 6,738
6,738
Energy (0.1%)
Chesapeake Energy Corp. 144A 5.75% cv. pfd. 16 16,990
Halcon Resources Corp. Ser. A, 5.75% cv. pfd. 4 2,200
McDermott International, Inc. $1.563 cv. pfd. 106 1,555
20,745
Financials (0.6%)
Alexandria Real Estate Equities, Inc. Ser. D, $1.75 cv. pfd.(R) 296 8,228
AMG Capital Trust II $2.575 cv. pfd. 183 11,209
Banc of California, Inc. 4.00% cv. pfd. 72 3,900
Bank of America Corp. Ser. L, 7.25% cv. pfd. 27 31,725
EPR Properties Ser. C, $1.44 cv. pfd.(R) 411 9,530
Health Care REIT, Inc. Ser. I, $3.25 cv. pfd.(R) 119 7,776
Maiden Holdings, Ltd. Ser. B, $3.625 cv. pfd. (Bermuda) 98 4,851
Wells Fargo & Co. Ser. L, 7.50% cv. pfd. 8 9,760
86,979
Health care (—%)
Alere, Inc. Ser. B, 3.00% cv. pfd. 13 4,290
AmSurg Corp. Ser. A-1, $5.25 cv. pfd. 21 2,279
6,569
Transportation (0.1%)
Genesee & Wyoming, Inc. $5.00 cv. pfd. 48 6,093
6,093
Utilities and power (0.3%)
Dominion Resources, Inc./VA $3.188 cv. pfd. 200 10,350
Dynegy, Inc. Ser. A, $5.375 cv. pfd.(NON) 40 4,272
El Paso Energy Capital Trust I $2.375 cv. pfd. 145 8,700
Exelon Corp. $3.25 cv. pfd. 146 7,620
NextEra Energy, Inc. $2.90 cv. pfd. 207 11,644
42,586
Total convertible preferred stocks (cost $235,265) $253,247

SENIOR LOANS (0.2%)(a)(c)
Principal amount Value
Caesars Entertainment Operating Co., Inc. bank term loan FRN Ser. B6, 6.985s, 2017 $18,906 $17,176
Grifols Worldwide Operations USA, Inc. bank term loan FRN 3.156s, 2021 4,987 4,936
Total senior loans (cost $22,920) $22,112

PREFERRED STOCKS (0.1%)(a)
Shares Value
Citigroup, Inc. Ser. K, $1.719 pfd. 790 $20,911
Total preferred stocks (cost $20,994) $20,911

SHORT-TERM INVESTMENTS (15.2%)(a)
Principal amount/shares Value
Putnam Short Term Investment Fund 0.09%(AFF) Shares 2,204,046 $2,204,046
U.S. Treasury Bills with an effective yield of 0.01%, January 8, 2015(SEG)(SEGCCS) $25,000 25,000
Total short-term investments (cost $2,229,046) $2,229,046

TOTAL INVESTMENTS
Total investments (cost $13,892,747)(b) $14,678,370













FORWARD CURRENCY CONTRACTS at 11/30/14 (aggregate face value $203,652) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Bank of America N.A.
Euro Buy 12/17/14 $11,316 $11,555 $(239)
Euro Sell 12/17/14 11,316 11,616 300
Barclays Bank PLC
British Pound Buy 12/17/14 6,091 6,293 (202)
British Pound Sell 12/17/14 6,091 6,270 179
Euro Buy 12/17/14 12,187 12,177 10
Hong Kong Dollar Buy 2/13/15 3,791 3,791 —
Japanese Yen Buy 2/13/15 1,810 1,892 (82)
Singapore Dollar Sell 2/13/15 153 155 2
Swedish Krona Buy 12/17/14 1,073 1,085 (12)
Swiss Franc Buy 12/17/14 1,242 1,241 1
Citibank, N.A.
Australian Dollar Sell 1/21/15 8,988 9,197 209
Danish Krone Buy 12/17/14 6,318 6,654 (336)
New Zealand Dollar Buy 1/21/15 390 385 5
Credit Suisse International
Australian Dollar Sell 1/21/15 5,172 5,256 84
Japanese Yen Buy 2/13/15 543 571 (28)
New Zealand Dollar Sell 1/21/15 3,981 3,901 (80)
Norwegian Krone Buy 12/17/14 1,624 1,696 (72)
Swiss Franc Buy 12/17/14 6,107 6,400 (293)
Deutsche Bank AG
British Pound Sell 12/17/14 4,841 5,069 228
Euro Buy 12/17/14 2,363 2,412 (49)
Euro Sell 12/17/14 2,363 2,425 62
Swedish Krona Buy 12/17/14 470 499 (29)
Goldman Sachs International
Euro Buy 12/17/14 16,912 17,360 (448)
Euro Sell 12/17/14 16,912 17,190 278
HSBC Bank USA, National Association
British Pound Buy 12/17/14 8,278 8,555 (277)
British Pound Sell 12/17/14 8,278 8,555 277
Euro Buy 12/17/14 124 128 (4)
Euro Sell 12/17/14 124 131 7
JPMorgan Chase Bank N.A.
British Pound Buy 12/17/14 625 646 (21)
British Pound Sell 12/17/14 625 659 34
Euro Buy 12/17/14 6,093 6,382 (289)
Euro Sell 12/17/14 6,093 6,250 157
Singapore Dollar Buy 2/13/15 4,446 4,496 (50)
Swedish Krona Buy 12/17/14 1,985 2,107 (122)
Swedish Krona Sell 12/17/14 1,985 2,051 66
Swiss Franc Buy 12/17/14 5,900 6,138 (238)
Swiss Franc Sell 12/17/14 5,900 6,042 142
State Street Bank and Trust Co.
Australian Dollar Buy 1/21/15 1,441 1,474 (33)
Australian Dollar Sell 1/21/15 1,441 1,505 64
Euro Buy 12/17/14 3,482 3,499 (17)
Israeli Shekel Buy 1/21/15 771 823 (52)
Japanese Yen Buy 2/13/15 2,039 2,054 (15)
Japanese Yen Sell 2/13/15 2,039 2,126 87
Swiss Franc Buy 12/17/14 725 763 (38)
Swiss Franc Sell 12/17/14 725 741 16
UBS AG
Swiss Franc Buy 12/17/14 1,656 1,743 (87)
Swiss Franc Sell 12/17/14 1,656 1,694 38
Total $(867)












FUTURES CONTRACTS OUTSTANDING at 11/30/14 (Unaudited)


             Unrealized
Number of             Expiration appreciation/
contracts Value             date (depreciation)
U.S. Treasury Note 2 yr (Long) 1 $219,141             Mar-15 $248
U.S. Treasury Note 5 yr (Long) 1 119,492             Mar-15 584
Total $832













OTC CREDIT DEFAULT CONTRACTS OUTSTANDING at 11/30/14 (Unaudited)
Upfront Payments
premium Termi- received Unrealized
Swap counterparty/ received Notional nation (paid) by fund appreciation/
Referenced debt* Rating*** (paid)** amount date per annum (depreciation)
Barclays Bank PLC
  EM Series 22 Index BBB-/P $37,638 $510,000 12/20/19 100 bp $(1,146)
Total$37,638$(1,146)
*   Payments related to the referenced debt are made upon a credit default event.  
**   Upfront premium is based on the difference between the original spread on issue and the market spread on day of execution.  
***   Ratings are presented for credit default contracts in which the fund has sold protection on the underlying referenced debt. Ratings for an underlying index represent the average of the ratings of all the securities included in that index. The Moody's, Standard & Poor's or Fitch ratings are believed to be the most recent ratings available at November 30, 2014. Securities rated by Putnam are indicated by “/P.”  











CENTRALLY CLEARED CREDIT DEFAULT CONTRACTS OUTSTANDING at 11/30/14 (Unaudited)
Upfront Payments
premium Termi- received Unrealized
received Notional nation (paid) by fund appreciation/
Referenced debt* Rating*** (paid)** amount date per annum (depreciation)
  NA HY Series 23 Index B+/P $(61,667) $967,000 12/20/19 500 bp $14,945
Total$(61,667)$14,945
*   Payments related to the referenced debt are made upon a credit default event.  
**   Upfront premium is based on the difference between the original spread on issue and the market spread on day of execution.  
***   Ratings are presented for credit default contracts in which the fund has sold protection on the underlying referenced debt. Ratings for an underlying index represent the average of the ratings of all the securities included in that index. The Moody's, Standard & Poor's or Fitch ratings are believed to be the most recent ratings available at November 30, 2014. Securities rated by Putnam are indicated by “/P.”  










Key to holding's abbreviations
ADR American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
bp Basis Points
ETF Exchange Traded Fund
FRB Floating Rate Bonds: the rate shown is the current interest rate at the close of the reporting period
FRN Floating Rate Notes: the rate shown is the current interest rate at the close of the reporting period
IO Interest Only
OTC Over-the-counter
REGS Securities sold under Regulation S may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.
SPDR S&P Depository Receipts
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 September 1, 2014 through November 30, 2014 (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 $14,708,672.
(b) The aggregate identified cost on a tax basis is $13,908,357, resulting in gross unrealized appreciation and depreciation of $872,149 and $102,136, respectively, or net unrealized appreciation of $770,013.
(NON) Non-income-producing security.
(STP) The interest rate and date shown parenthetically represent the new interest rate to be paid and the date the fund will begin accruing interest at this rate.
(PIK) Income may be received in cash or additional securities at the discretion of the issuer.
(AFF) Affiliated company. For investments in Putnam Short Term Investment Fund, 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 a company which is under common ownership or control, or involving securities of companies in which the fund owned at least 5% of the outstanding voting securities, were as follows:
Name of affiliate Fair value at the beginning of the reporting period Purchase cost Sale proceeds Investment income Fair value at the end of the reporting period
Putnam Short Term Investment Fund * $1,741,204 $1,008,717 $545,875 $458 $2,204,046
Putnam Absolute Return 100 Fund Class Y 567,289 133,321 9,586 — 692,125
Putnam Absolute Return 300 Fund Class Y 1,383,439 319,971 23,005 — 1,674,425
Putnam Absolute Return 500 Fund Class Y 2,367,960 533,285 38,341 — 2,911,872
Putnam Absolute Return 700 Fund Class Y 363,920 79,993 5,751 — 448,362
Putnam Money Market Fund Class A 444,673 106,672 7,668 13 543,677
Totals $6,868,485 $2,181,959 $630,226 $471 $8,474,507
* Management fees charged to Putnam Short Term Investment Fund Fund have been waived by Putnam Management.
(SEG) This security, in part or in entirety, was pledged and segregated with the broker to cover margin requirements for futures contracts at the close of the reporting period.
(SEGCCS) This security, in part or in entirety, was pledged and segregated with the custodian for collateral on the initial margin on certain centrally cleared derivative contracts at the close of the reporting period.
(c) Senior loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for senior loans are the current interest rates at the close of the reporting period. Senior loans are also subject to mandatory and/or optional prepayment which cannot be predicted. As a result, the remaining maturity may be substantially less than the stated maturity shown. Senior loans are purchased or sold on a when-issued or delayed delivery basis and may be settled a month or more after the trade date, which from time to time can delay the actual investment of available cash balances; interest income is accrued based on the terms of the securities.
Senior loans can be acquired through an agent, by assignment from another holder of the loan, or as a participation interest in another holder’s portion of the loan. When the fund invests in a loan or participation, the fund is subject to the risk that an intermediate participant between the fund and the borrower will fail to meet its obligations to the fund, in addition to the risk that the borrower under the loan may default on its obligations.
(F) Security is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities' valuation inputs. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio.
(R) Real Estate Investment Trust.
(UR) At the reporting period end, 100 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.
At the close of the reporting period, the fund maintained liquid assets totaling $1,816,581 to cover certain derivatives contracts.
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 dates shown on debt obligations are the original maturity dates.
Security valuation: Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Board has formed a Pricing Committee to oversee the implementation of these procedures and has delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee.
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.
Market quotations are not considered to be readily available for certain debt obligations and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value and are classified as Level 2 securities.
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. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. 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, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. Certain securities may be valued on the basis of a price provided by a single source. 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.
Stripped securities: The fund may invest in stripped securities which represent a participation in securities that may be structured in classes with rights to receive different portions of the interest and principal. Interest-only securities receive all of the interest and principal-only securities receive all of the principal. If the interest-only securities experience greater than anticipated prepayments of principal, the fund may fail to recoup fully its initial investment in these securities. Conversely, principal-only securities increase in value if prepayments are greater than anticipated and decline if prepayments are slower than anticipated. The fair value of these securities is highly sensitive to changes in interest rates.
Futures contracts: The fund used futures contracts to manage exposure to market risk, to hedge prepayment risk, to hedge interest rate risk, to gain exposure to interest rates and to equitize cash.
The potential risk to the fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. With futures, there is minimal counterparty credit risk to the fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. When the contract is closed, 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.
Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin”.
For the fund's average number of futures contracts, see the appropriate table at the end of these footnotes.
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 and to gain exposure on currency.
The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair 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.
Credit default contracts: The fund entered into OTC and/or centrally cleared credit default contracts to hedge credit risk, to hedge market risk and to gain exposure on individual names and/or baskets of securities.
In OTC and centrally cleared credit default contracts, the protection buyer typically makes a periodic stream of payments to a counterparty, the protection seller, in exchange for the right to receive a contingent payment upon the occurrence of a credit event on the reference obligation or all other equally ranked obligations of the reference entity. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring and obligation acceleration. For OTC credit default contracts, an upfront payment received by the fund is recorded as a liability on the fund’s books. An upfront payment made by the fund is recorded as an asset on the fund’s books. Centrally cleared credit default contracts provide the same rights to the protection buyer and seller except the payments between parties, including upfront premiums, are settled through a central clearing agent through variation margin payments. Upfront and periodic payments received or paid by the fund for OTC and centrally cleared credit default contracts are recorded as realized gains or losses at the reset date or close of the contract. The OTC and centrally cleared credit default contracts are marked to market daily based upon quotations from an independent pricing service or market makers. Any change in value of OTC credit default contracts is recorded as an unrealized gain or loss. Daily fluctuations in the value of centrally cleared credit default contracts are recorded as unrealized gain or loss. Upon the occurrence of a credit event, the difference between the par value and fair value of the reference obligation, net of any proportional amount of the upfront payment, is recorded as a realized gain or loss.
In addition to bearing the risk that the credit event will occur, the fund could be exposed to market risk due to unfavorable changes in interest rates or in the price of the underlying security or index or the possibility that the fund may be unable to close out its position at the same time or at the same price as if it had purchased the underlying reference obligations. In certain circumstances, the fund may enter into offsetting OTC and centrally cleared credit default contracts which would mitigate its risk of loss. The fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk may be mitigated for OTC credit default contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared credit default contracts through the daily exchange of variation margin. Counterparty risk is further mitigated with respect to centrally cleared credit default swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Where the fund is a seller of protection, the maximum potential amount of future payments the fund may be required to make is equal to the notional amount.
For the fund's average notional amount on credit default 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, is 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 $39,939 on open derivative contracts subject to the Master Agreements. There was no collateral posted by the fund at period end 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*:
    Basic materials $47,375 $48,183 $—
    Capital goods 127,555 34,402 —
    Communication services 20,330 53,855 —
    Conglomerates 6,472 15,922 —
    Consumer cyclicals 245,095 101,221 —
    Consumer staples 136,084 80,227 —
    Energy 122,913 43,605 —
    Financials 754,202 169,864 —
    Health care 228,245 60,872 —
    Technology 312,326 11,686 —
    Transportation 36,937 20,955 —
    Utilities and power 52,689 35,982 —
Total common stocks 2,090,223 676,774 —
Convertible bonds and notes — 471,765 611
Convertible preferred stocks 4,290 248,957 —
Corporate bonds and notes — 960,020 —
Investment companies 6,357,818 — —
Mortgage-backed securities — 262,153 —
Preferred stocks 20,911 — —
Senior loans — 22,112 —
U.S. treasury obligations — 1,333,690 —
Short-term investments 2,204,046 25,000 —
Totals by level $10,677,288 $4,000,471 $611



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $(867) $—
Futures contracts 832 — —
Credit default contracts — 37,828 —
Totals by level $832 $36,961 $—


* Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.
During the reporting period, transfers within the fair value hierarchy, if any, (other than certain transfers involving non-U.S. equity securities as described in the Security valuation note above) did not represent, in the aggregate, more than 1% of the fund's net assets measured as of the end of the period.
At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio.

Fair Value 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 Fair value Fair value
Credit contracts $76,612 $38,784
Foreign exchange contracts 2,246 3,113
Interest rate contracts 832 —
Total $79,690 $41,897


The 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 based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period:
Futures contracts (number of contracts)2
Forward currency contracts (contract amount)$220,000
OTC credit default contracts (notional)$500,000
Centrally cleared credit default contracts (notional)$900,000
   
  The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions, if applicable, see note "(d)" above, and for borrowing transactions associated with securities sold short, if applicable, see the "Short sales of securities" note above.
                                 
      Bank of America N.A. Barclays Bank PLC Barclays Capital Inc. (clearing broker) Citibank, N.A. Credit Suisse International Deutsche Bank AG Goldman Sachs International HSBC Bank USA, National Association JPMorgan Chase Bank N.A. Merrill Lynch, Pierce, Fenner & Smith, Inc. State Street Bank and Trust Co. UBS AG   Total
                                 
  Assets:                              
  OTC Credit default contracts*#    $–  $–  $–  $–  $–  $–  $–  $–  $–  $–  $–  $–    $–
  Centrally cleared credit default contracts§    –  –  –  –  –  –  –  –  –  –  –  –    –
  Futures contracts§    –  –  –  –  –  –  –  –  –  297  –  –    297
  Forward currency contracts#    300  192  –  214  84  290  278  284  399  –  167  38    2,246
                                 
  Total Assets  $300  $192  $–  $214  $84  $290  $278  $284  $399  $297  $167  $38  $2,543
                                 
  Liabilities:                              
  OTC Credit default contracts*#    $–  $38,784  $–  $–  $–  $–  $–  $–  $–  $–  $–  $–    $38,784
  Centrally cleared credit default contracts§    –  –  3,208  –  –  –  –  –  –  –  –  –    3,208
  Futures contracts§    –  –  –  –  –  –  –  –  –  –  –  –    –
  Forward currency contracts#    239  296  –  336  473  78  448  281  720  –  155  87    3,113
                                 
  Total Liabilities  $239  $39,080  $3,208  $336  $473  $78  $448  $281  $720  $–  $155  $87  $45,105
                                 
  Total Financial and Derivative Net Assets    $61  $(38,888)  $(3,208)  $(122)  $(389)  $212  $(170)  $3  $(321)  $297  $12  $(49)    $(42,562)
  Total collateral received (pledged)##†    $–  $–  $–  $–  $–  $–  $–  $–  $–  $–  $–  $–    
  Net amount    $61  $(38,888)  $(3,208)  $(122)  $(389)  $212  $(170)  $3  $(321)  $297  $12  $(49)    
                                 
* Excludes premiums, if any.
                                 
†  Additional collateral may be required from certain brokers based on individual agreements.
                                 
# Covered by master netting agreement.
                                 
## Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.
                                 
§ Includes current day's variation margin only, which is not collateralized. Cumulative appreciation/(depreciation) for futures contracts and centrally cleared swap contracts is represented in the tables listed after the fund's portfolio. 

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: January 28, 2015

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: January 28, 2015

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: January 28, 2015

EX-99.CERT 2 b_LF2certifications.htm EX-99.CERT b_LF2certifications.htm

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: January 28, 2015
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: January 28, 2015
Steven D. Krichmar
Principal Financial Officer














Attachment A

NQ

Period (s) ended November 30, 2014
               Putnam Global Health Care Fund
               Putnam High Yield Trust
               Putnam International Capital Opportunities Fund
               Putnam High Income Securities Fund
               Putnam Global Natural Resources Fund
               Putnam Floating Rate Income Fund
               Putnam Small Cap Value Fund
               Putnam Global Consumer Fund
               Putnam Global Energy Fund
               Putnam Global Financials Fund
               Putnam Global Industrials Fund
               Putnam Global Technology Fund
               Putnam Global Telecommunications Fund
               Putnam Emerging Markets Equity Fund
               Putnam Global Utilities Fund
               Putnam Retirement Income Fund Lifestyle 2
               Putnam Retirement Income Fund Lifestyle 3
               Putnam Mortgage Recovery Fund