| 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: | November 30, 2015 |
| Date of reporting period: | February 28, 2015 |
Item 1. Schedule of Investments: |
| Putnam Emerging Markets Income Fund | ||||||
| The fund's portfolio | ||||||
| 2/28/15 (Unaudited) | ||||||
| CORPORATE BONDS AND NOTES (48.4%)(a) | ||||||
| Principal amount | Value | |||||
| Banking (10.9%) | ||||||
| Banco de Credito del Peru 144A sr. unsec. sub. FRN notes 6 1/8s, 2027 (Peru) | $200,000 | $217,000 | ||||
| Banco de Credito del Peru/Panama 144A sr. unsec. sub. FRN notes 6 7/8s, 2026 (Peru) | 50,000 | 55,925 | ||||
| Banco do Brasil SA 144A jr. sub. FRB bonds 9 1/4s, perpetual maturity (Brazil) | 200,000 | 182,162 | ||||
| Banco Nacional de Costa Rica 144A sr. unsec. notes 4 7/8s, 2018 (Costa Rica) | 200,000 | 201,500 | ||||
| Caixa Economica Federal 144A sr. unsec. unsub. notes 4 1/4s, 2019 (Brazil) | 150,000 | 146,400 | ||||
| State Bank of India/London 144A sr. unsec. unsub. notes 4 1/8s, 2017 (India) | 200,000 | 209,275 | ||||
| Turkiye Garanti Bankasi AS 144A sr. unsec. unsub. notes 5 1/4s, 2022 (Turkey) | 200,000 | 205,842 | ||||
| VTB Bank OJSC 144A jr. unsec. sub. FRN notes 9 1/2s, perpetual maturity (Russia) | 200,000 | 144,000 | ||||
| 1,362,104 | ||||||
| Basic materials (4.5%) | ||||||
| Cemex SAB de CV 144A company guaranty sr. notes 6 1/8s, 2025 (Mexico) | 200,000 | 201,500 | ||||
| Fibria Overseas Finance, Ltd. company guaranty sr. unsec. notes 5 1/4s, 2024 (Brazil) | 150,000 | 150,750 | ||||
| Mexichem SAB de CV 144A sr. unsec. notes 4 7/8s, 2022 (Mexico) | 200,000 | 214,600 | ||||
| 566,850 | ||||||
| Capital goods (0.9%) | ||||||
| Embraer Overseas, Ltd 144A company guaranty sr. unsec. notes 5.696s, 2023 (Brazil) | 111,000 | 118,770 | ||||
| 118,770 | ||||||
| Coal (1.1%) | ||||||
| Indo Energy Finance II BV 144A company guaranty sr. notes 6 3/8s, 2023 (Indonesia) | 200,000 | 140,000 | ||||
| 140,000 | ||||||
| Communication services (4.1%) | ||||||
| America Movil SAB de CV sr. unsec. notes 6.45s, 2022 (Mexico) | MXN | 4,700,000 | 309,629 | |||
| Digicel Group, Ltd. 144A sr. unsec. notes 8 1/4s, 2020 (Jamaica) | $200,000 | 202,300 | ||||
| 511,929 | ||||||
| Consumer cyclicals (2.5%) | ||||||
| First Cash Financial Services, Inc. company guaranty sr. unsec. unsub. notes 6 3/4s, 2021 (Mexico) | 80,000 | 82,900 | ||||
| Grupo Televisa SAB sr. unsec. unsub. notes Ser. EMTN, 7 1/4s, 2043 (Mexico) | MXN | 2,000,000 | 120,489 | |||
| Hutchison Whampoa International 12, Ltd. 144A company guaranty unsec. sub. FRB bonds 6s, perpetual maturity (Cayman Islands) | $100,000 | 106,250 | ||||
| 309,639 | ||||||
| Consumer staples (2.5%) | ||||||
| JBS Investments GmbH 144A company guaranty sr. unsec. notes 7 3/4s, 2020 (Austria) | 200,000 | 210,500 | ||||
| JBS USA, LLC/JBS USA Finance, Inc. 144A sr. unsec. notes 7 1/4s, 2021 (Brazil) | 100,000 | 105,190 | ||||
| 315,690 | ||||||
| Financial (1.3%) | ||||||
| Morgan Stanley sr. unsec. notes 11 1/2s, 2020 (Brazil) | BRL | 470,000 | 161,864 | |||
| 161,864 | ||||||
| Government (1.9%) | ||||||
| Inter-American Development Bank sr. unsec. unsub. bonds Ser. gMTN, 7.2s, 2018 (Supra-Nation) | IDR | 3,160,000,000 | 241,456 | |||
| 241,456 | ||||||
| Oil and gas (13.3%) | ||||||
| Ecopetrol SA sr. unsec. unsub. bonds 4 1/8s, 2025 (Colombia) | $200,000 | 190,340 | ||||
| Ecopetrol SA sr. unsec. unsub. notes 7 5/8s, 2019 (Colombia) | 50,000 | 58,860 | ||||
| KazMunayGas National Co., JSC 144A sr. unsec. bonds 6 3/8s, 2021 (Kazakhstan) | 200,000 | 203,000 | ||||
| Lukoil International Finance BV 144A company guaranty sr. unsec. notes 4.563s, 2023 (Russia) | 200,000 | 166,000 | ||||
| Nexen Energy ULC sr. unsec. unsub. notes 6.4s, 2037 (Canada) | 100,000 | 127,347 | ||||
| Pertamina Persero PT 144A sr. unsec. notes 4 7/8s, 2022 (Indonesia) | 200,000 | 209,000 | ||||
| Petrobras Global Finance BV company guaranty sr. unsec. notes 5 3/8s, 2021 (Brazil) | 200,000 | 179,956 | ||||
| Petroleos de Venezuela SA company guaranty sr. unsec. notes 5 1/4s, 2017 (Venezuela) | 5,000 | 2,288 | ||||
| Petroleos de Venezuela SA company guaranty sr. unsec. unsub. notes 5 3/8s, 2027 (Venezuela) | 50,000 | 16,150 | ||||
| Petroleos de Venezuela SA 144A company guaranty sr. notes 8 1/2s, 2017 (Venezuela) | 173,000 | 114,024 | ||||
| Petroleos de Venezuela SA 144A company guaranty sr. unsec. notes 6s, 2026 (Venezuela) | 35,000 | 11,288 | ||||
| Petroleos Mexicanos company guaranty sr. unsec. unsub. notes 6 3/8s, 2045 (Mexico) | 200,000 | 223,730 | ||||
| Petroleos Mexicanos 144A company guaranty sr. unsec. unsub. notes 5 5/8s, 2046 (Mexico) | 35,000 | 36,066 | ||||
| Petroleum Co. of Trinidad & Tobago Ltd. 144A sr. unsec. notes 9 3/4s, 2019 (Trinidad) | 100,000 | 117,750 | ||||
| 1,655,799 | ||||||
| Real estate (1.5%) | ||||||
| Country Garden Holdings Co., Ltd. 144A company guaranty sr. unsec. unsub. notes 7 1/2s, 2023 (China) | 200,000 | 191,750 | ||||
| 191,750 | ||||||
| Transportation (0.9%) | ||||||
| DP World Sukuk, Ltd. 144A unsec. bonds 6 1/4s, 2017 (United Arab Emirates) | 100,000 | 108,750 | ||||
| 108,750 | ||||||
| Utilities and power (3.0%) | ||||||
| Centrais Electricas Brasileiras SA (Electrobras) 144A sr. unsec. unsub. notes 6 7/8s, 2019 (Brazil) | 100,000 | 97,770 | ||||
| Korea Gas Corp. 144A sr. unsec. unsub. notes 6 1/4s, 2042 (South Korea) | 200,000 | 282,420 | ||||
| 380,190 | ||||||
| Total corporate bonds and notes (cost $6,642,117) | $6,064,791 | |||||
| FOREIGN GOVERNMENT AND AGENCY BONDS AND NOTES (42.8%)(a) | ||||||
| Principal amount | Value | |||||
| Argentina (Republic of) sr. unsec. bonds 8.28s, 2033 (Argentina) (In default)(NON) | $280,408 | $271,995 | ||||
| Argentina (Republic of) sr. unsec. unsub. notes Ser. 1, 8 3/4s, 2017 (Argentina) (In default)(NON) | 25,000 | 24,925 | ||||
| Argentina (Republic of) sr. unsec. unsub. notes Ser. LOC, 8.28s, 2033 (Argentina) | 364,530 | 330,355 | ||||
| Bahamas (Commonwealth of) 144A sr. unsec. notes 5 3/4s, 2024 (Bahamas) | 200,000 | 213,335 | ||||
| Brazil (Federal Republic of) sr. unsec. unsub. bonds 5s, 2045 (Brazil) | 260,000 | 236,130 | ||||
| Buenos Aires (Province of) 144A sr. unsec. unsub. notes 10 7/8s, 2021 (Argentina) | 200,000 | 202,000 | ||||
| Colombia (Republic of) sr. unsec. notes 4 3/8s, 2023 (Colombia) | COP | 300,000,000 | 109,605 | |||
| Colombia (Republic of) sr. unsec. unsub. bonds 5s, 2045 (Colombia) | $200,000 | 210,250 | ||||
| Eskom Holdings SOC, Ltd. 144A sr. unsub. notes 5 3/4s, 2021 (South Africa) | 200,000 | 198,210 | ||||
| Financing of Infrastructural Projects State Enterprise 144A sr. unsec. bonds 9s, 2017 (Ukraine) | 200,000 | 81,500 | ||||
| Ghana (Republic of) 144A unsec. notes 8 1/2s, 2017 (Ghana) | 29,000 | 29,943 | ||||
| Ghana (Republic of) 144A unsec. notes 7 7/8s, 2023 (Ghana) | 130,870 | 127,925 | ||||
| Hellenic (Republic of) sr. unsec. bonds 4 3/4s, 2019 (Greece) | EUR | 198,000 | 169,739 | |||
| Hungary (Government of) sr. unsub. notes 6 1/4s, 2020 (Hungary) | $100,000 | 114,750 | ||||
| Indonesia (Republic of) 144A sr. unsec. notes 5 1/8s, 2045 (Indonesia) | 200,000 | 211,500 | ||||
| Malaysia (Government of) sr. unsec. bonds 3.492s, 2020 (Malaysia) | 675,000 | 185,234 | ||||
| Peru (Republic of) sr. unsec. bonds 8 3/4s, 2033 (Peru) | 75,000 | 119,579 | ||||
| Peru (Republic of) 144A sr. unsec. notes 6.9s, 2037 (Peru) | PEN | 350,000 | 122,087 | |||
| Petroleos Mexicanos 144A GDN company guaranty sr. unsec. unsub. notes 7.65s, 2021 (Mexico) | MXN | 11,000 | 77,766 | |||
| Philippine (Republic of) sr. unsec. unsub. bonds 3.95s, 2040 (Philippines) | $200,000 | 210,750 | ||||
| Philippines (Republic of) sr. unsec. unsub. bonds 6 3/8s, 2034 (Philippines) | 150,000 | 207,870 | ||||
| Poland (Republic of) unsec. bonds 5 1/4s, 2020 (Poland) | PLN | 500,000 | 159,004 | |||
| Russia (Federation of) unsec. bonds 8.15s, 2027 (Russia) | RUB | 5,000,000 | 59,430 | |||
| Russia (Federation of) 144A sr. unsec. unsub. bonds 7 1/2s, 2030 (Russia) | $147,375 | 158,060 | ||||
| Serbia (Republic of) 144A sr. unsec. unsub. bonds 6 3/4s, 2024 (Serbia) | 42,912 | 44,145 | ||||
| Slovenia (Republic of) 144A sr. unsec. bonds 5.85s, 2023 (Slovenia) | 200,000 | 235,616 | ||||
| South Africa (Republic of) unsec. bonds Ser. 2023, 7 3/4s, 2023 (South Africa) | ZAR | 2,000,000 | 175,362 | |||
| Turkey (Republic of) sr. unsec. notes 4 7/8s, 2043 (Turkey) | $200,000 | 198,214 | ||||
| Turkey (Republic of) unsec. bonds 9s, 2017 (Turkey) | TRY | 800,000 | 322,540 | |||
| Turkey (Republic of) unsec. bonds 6s, 2041 (Turkey) | $200,000 | 228,438 | ||||
| Ukraine (Government of) 144A sr. unsec. unsub. bonds 6.58s, 2016 (Ukraine) | 100,000 | 43,020 | ||||
| Venezuela (Republic of) sr. unsec. unsub. notes 12 3/4s, 2022 (Venezuela) | 150,000 | 73,125 | ||||
| Vietnam (Republic of) 144A sr. unsec. bonds 4.8s, 2024 (Vietnam) | 200,000 | 209,997 | ||||
| Total foreign government and agency bonds and notes (cost $6,032,110) | $5,362,399 | |||||
| SHORT-TERM INVESTMENTS (6.6%)(a) | ||||||
| Principal amount/shares | Value | |||||
| Putnam Short Term Investment Fund 0.10%(AFF) | Shares | 797,306 | $797,306 | |||
| U.S. Treasury Bills with an effective yield of 0.02%, May 7, 2015(SEG) | $30,000 | 29,999 | ||||
| Total short-term investments (cost $827,305) | $827,305 | |||||
| TOTAL INVESTMENTS | ||||||
| Total investments (cost $13,501,532)(b) | $12,254,495 | |||||
| FORWARD CURRENCY CONTRACTS at 2/28/15 (aggregate face value $4,541,959) (Unaudited) | |||||||
| Unrealized | |||||||
| Contract | Delivery | Aggregate | appreciation/ | ||||
| Counterparty | Currency | type | date | Value | face value | (depreciation) | |
| Bank of America N.A. | |||||||
| Peruvian New Sol | Sell | 4/15/15 | $65,219 | $66,754 | $1,535 | ||
| Barclays Bank PLC | |||||||
| Australian Dollar | Sell | 4/15/15 | 42,173 | 43,401 | 1,228 | ||
| Mexican Peso | Buy | 4/15/15 | 20,246 | 21,459 | (1,213) | ||
| South African Rand | Buy | 4/15/15 | 189,960 | 187,338 | 2,622 | ||
| Citibank, N.A. | |||||||
| Brazilian Real | Buy | 4/2/15 | 165,943 | 174,235 | (8,292) | ||
| Canadian Dollar | Buy | 4/15/15 | 84,660 | 86,119 | (1,459) | ||
| Canadian Dollar | Sell | 4/15/15 | 84,660 | 89,463 | 4,803 | ||
| Mexican Peso | Buy | 4/15/15 | 86,498 | 85,968 | 530 | ||
| Mexican Peso | Sell | 4/15/15 | 85,028 | 86,434 | 1,406 | ||
| Philippine Peso | Buy | 5/20/15 | 43,913 | 44,043 | (130) | ||
| Thai Baht | Buy | 5/20/15 | 269,092 | 266,248 | 2,844 | ||
| Credit Suisse International | |||||||
| Australian Dollar | Buy | 4/15/15 | 87,229 | 87,073 | 156 | ||
| Euro | Buy | 3/18/15 | 85,845 | 87,018 | (1,173) | ||
| Indian Rupee | Buy | 5/20/15 | 83,484 | 84,540 | (1,056) | ||
| Philippine Peso | Buy | 5/20/15 | 15,794 | 15,804 | (10) | ||
| Deutsche Bank AG | |||||||
| Polish Zloty | Buy | 3/18/15 | 105,441 | 123,811 | (18,370) | ||
| Romanian Leu | Buy | 3/18/15 | 85,443 | 94,707 | (9,264) | ||
| Turkish Lira | Buy | 3/18/15 | 125,743 | 138,573 | (12,830) | ||
| Goldman Sachs International | |||||||
| Euro | Buy | 3/18/15 | 85,845 | 87,403 | (1,558) | ||
| HSBC Bank USA, National Association | |||||||
| Indonesian Rupiah | Buy | 5/20/15 | 281,756 | 286,601 | (4,845) | ||
| Nigerian Naira | Buy | 4/15/15 | 48,306 | 46,649 | 1,657 | ||
| JPMorgan Chase Bank N.A. | |||||||
| Australian Dollar | Buy | 4/15/15 | 86,395 | 83,950 | 2,445 | ||
| Australian Dollar | Sell | 4/15/15 | 86,976 | 87,146 | 170 | ||
| Canadian Dollar | Buy | 4/15/15 | 82,023 | 86,261 | (4,238) | ||
| Canadian Dollar | Sell | 4/15/15 | 82,023 | 86,911 | 4,888 | ||
| Euro | Sell | 3/18/15 | 173,704 | 198,798 | 25,094 | ||
| Hungarian Forint | Buy | 3/18/15 | 170,510 | 187,681 | (17,171) | ||
| Indian Rupee | Buy | 5/20/15 | 3,291 | 4,088 | (797) | ||
| Malaysian Ringgit | Buy | 5/20/15 | 44,398 | 45,294 | (896) | ||
| Mexican Peso | Buy | 4/15/15 | 70,948 | 70,203 | 745 | ||
| Philippine Peso | Buy | 5/20/15 | 43,913 | 44,053 | (140) | ||
| Russian Ruble | Buy | 3/18/15 | 70,745 | 78,498 | (7,753) | ||
| Singapore Dollar | Sell | 5/20/15 | 91,186 | 92,289 | 1,103 | ||
| Royal Bank of Scotland PLC (The) | |||||||
| Australian Dollar | Sell | 4/15/15 | 124,569 | 128,202 | 3,633 | ||
| Singapore Dollar | Sell | 5/20/15 | 176,808 | 178,945 | 2,137 | ||
| State Street Bank and Trust Co. | |||||||
| Chilean Peso | Buy | 4/15/15 | 6,892 | 6,855 | 37 | ||
| Colombian Peso | Buy | 4/15/15 | 140,898 | 144,053 | (3,155) | ||
| Euro | Sell | 3/18/15 | 160,722 | 161,439 | 717 | ||
| Hungarian Forint | Buy | 3/18/15 | 84,884 | 87,592 | (2,708) | ||
| Indonesian Rupiah | Sell | 5/20/15 | 231,629 | 234,948 | 3,319 | ||
| Israeli Shekel | Buy | 4/15/15 | 6,026 | 8,209 | (2,183) | ||
| Malaysian Ringgit | Sell | 5/20/15 | 83,870 | 82,863 | (1,007) | ||
| Singapore Dollar | Sell | 5/20/15 | 87,305 | 88,372 | 1,067 | ||
| Turkish Lira | Buy | 3/18/15 | 136,179 | 148,226 | (12,047) | ||
| UBS AG | |||||||
| Hungarian Forint | Sell | 3/18/15 | 2,380 | 3,442 | 1,062 | ||
|
| |||||||
| Total | $(49,097) | ||||||
| FUTURES CONTRACTS OUTSTANDING at 2/28/15 (Unaudited) | ||||||
| Unrealized | ||||||
| Number of | Expiration | appreciation/ | ||||
| contracts | Value | date | (depreciation) | |||
|
| ||||||
| U.S. Treasury Bond Ultra 30 yr (Short) | 6 | $1,009,688 | Jun-15 | $(23,543) | ||
| U.S. Treasury Note 2 yr (Long) | 4 | 874,313 | Jun-15 | 867 | ||
| U.S. Treasury Note 5 yr (Long) | 4 | 477,125 | Jun-15 | 1,648 | ||
| U.S. Treasury Note 10 yr (Long) | 5 | 638,984 | Jun-15 | 4,014 | ||
|
| ||||||
| Total | $(17,014) | |||||
| Key to holding's currency abbreviations | |||
| BRL | Brazilian Real | ||
| COP | Colombian Peso | ||
| EUR | Euro | ||
| IDR | Indonesian Rupiah | ||
| MXN | Mexican Peso | ||
| PEN | Peruvian Neuvo Sol | ||
| PLN | Polish Zloty | ||
| RUB | Russian Ruble | ||
| TRY | Turkish Lira | ||
| USD / $ | United States Dollar | ||
| ZAR | South African Rand | ||
| Key to holding's abbreviations | |||
| EMTN | Euro Medium Term Notes | ||
| 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 | ||
| GDN | Global Depository Notes: represents ownership of foreign securities on deposit with a custodian bank | ||
| JSC | Joint Stock Company | ||
| OJSC | Open Joint Stock Company | ||
| 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 December 1, 2014 through February 28, 2015 (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 $12,542,332. | |||||
| (b) | The aggregate identified cost on a tax basis is $13,501,532, resulting in gross unrealized appreciation and depreciation of $338,053 and $1,585,090, respectively, or net unrealized depreciation of $1,247,037. | |||||
| (NON) | This security is non-income-producing. | |||||
| (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 | 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* | $2,310,172 | $— | $1,512,866 | $320 | $797,306 | |
| * Management fees charged to Putnam Short Term Investment 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. | |||||
| At the close of the reporting period, the fund maintained liquid assets totaling $3,064,478 to cover certain derivative 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. | ||||||
| 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): | ||||||
| Brazil | 11.2% | |||||
| Mexico | 10.3 | |||||
| Turkey | 7.8 | |||||
| Argentina | 6.8 | |||||
| United States | 6.8 | |||||
| Colombia | 4.6 | |||||
| Indonesia | 4.6 | |||||
| Russia | 4.3 | |||||
| Peru | 4.2 | |||||
| Philippines | 3.4 | |||||
| South Africa | 3.0 | |||||
| South Korea | 2.3 | |||||
| Supra-Nation | 2.0 | |||||
| Slovenia | 1.9 | |||||
| Venezuela | 1.8 | |||||
| Bahamas | 1.7 | |||||
| Austria | 1.7 | |||||
| Vietnam | 1.7 | |||||
| India | 1.7 | |||||
| Kazakhstan | 1.7 | |||||
| Jamaica | 1.7 | |||||
| Costa Rica | 1.6 | |||||
| China | 1.6 | |||||
| Malaysia | 1.5 | |||||
| Greece | 1.4 | |||||
| Poland | 1.3 | |||||
| Ghana | 1.3 | |||||
| Canada | 1.0 | |||||
| Ukraine | 1.0 | |||||
| Trinidad | 1.0 | |||||
| Hungary | 0.9 | |||||
| United Arab Emirates | 0.9 | |||||
| Cayman Islands | 0.9 | |||||
| Serbia | 0.4 | |||||
| Total | 100.0% | |||||
| Security valuation: Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have 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. | ||||||
| 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. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. 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. | ||||||
| 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. | ||||||
| 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. 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. | ||||||
| Futures contracts: The fund used futures contracts for hedging treasury term structure risk and for yield curve positioning. | ||||||
| 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 for hedging currency exposures and to gain exposure to currencies. | ||||||
| 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. | ||||||
| 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 $63,551 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 | |
| Corporate bonds and notes | $— | $6,064,791 | $— | |
| Foreign government and agency bonds and notes | — | 5,362,399 | — | |
| Short-term investments | 797,306 | 29,999 | — | |
|
|
|
|
||
| Totals by level | $797,306 | $11,457,189 | $— | |
| Valuation inputs | ||||
|
| ||||
| Other financial instruments: | Level 1 | Level 2 | Level 3 | |
| Forward currency contracts | $— | $(49,097) | $— | |
| Futures contracts | (17,014) | — | — | |
|
|
|
|
||
| Totals by level | $(17,014) | $(49,097) | $— | |
| During the reporting period, transfers within the fair value hierarchy, if any, did not represent, in the aggregate, more than 1% of the fund's net assets measured as of the end of the period. | ||||
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 | ||
| Foreign exchange contracts | $63,198 | $112,295 | ||
| Interest rate contracts | 6,529 | 23,543 | ||
|
|
|
|||
| Total | $69,727 | $135,838 | ||
| 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) | 20 | |||
| Forward currency contracts (contract amount) | $6,600,000 | |||
| 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 | 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. | Royal Bank of Scotland PLC (The) | State Street Bank and Trust Co. | UBS AG | Total | ||||
| Assets: | ||||||||||||||||
| Futures contracts§ | $– | $– | $– | $– | $– | $– | $– | $– | $703 | $– | $– | $– | $703 | |||
| Forward currency contracts# | 1,535 | 3,850 | 9,583 | 156 | – | – | 1,657 | 34,445 | – | 5,770 | 5,140 | 1,062 | 63,198 | |||
| Total Assets | $1,535 | $3,850 | $9,583 | $156 | $– | $– | $1,657 | $34,445 | $703 | $5,770 | $5,140 | $1,062 | $63,901 | |||
| Liabilities: | ||||||||||||||||
| Futures contracts§ | – | – | – | – | – | – | – | – | 1,422 | – | – | – | 1,422 | |||
| Forward currency contracts# | – | 1,213 | 9,881 | 2,239 | 40,464 | 1,558 | 4,845 | 30,995 | – | – | 21,100 | – | 112,295 | |||
| Total Liabilities | $– | $1,213 | $9,881 | $2,239 | $40,464 | $1,558 | $4,845 | $30,995 | $1,422 | $– | $21,100 | $– | $113,717 | |||
| Total Financial and Derivative Net Assets | $1,535 | $2,637 | $(298) | $(2,083) | $(40,464) | $(1,558) | $(3,188) | $3,450 | $(719) | $5,770 | $(15,960) | $1,062 | $(49,816) | |||
| Total collateral received (pledged)##† | $– | $– | $– | $– | $– | $– | $– | $– | $– | $– | $– | $– | ||||
| Net amount | $1,535 | $2,637 | $(298) | $(2,083) | $(40,464) | $(1,558) | $(3,188) | $3,450 | $(719) | $5,770 | $(15,960) | $1,062 | ||||
| † | 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: April 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: April 28, 2015 |
| By (Signature and Title): |
| /s/ Steven D. Krichmar Steven D. Krichmar Principal Financial Officer Date: April 28, 2015 |
| 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: April 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: April 28, 2015 | |
| Steven D. Krichmar | |
| Principal Financial Officer | |
Attachment A | |
NQ | |
Period (s) ended February 28, 2015 | |
| 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 |