| 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: | July 31, 2016 |
| Date of reporting period: | April 30, 2016 |
Item 1. Schedule of Investments: |
| Putnam Short Term Investment Fund | ||||||
| The fund's portfolio | ||||||
| 4/30/16 (Unaudited) | ||||||
| COMMERCIAL PAPER (28.8%)(a) | ||||||
| Yield (%) | Maturity date | Principal amount | Value | |||
| AbbVie, Inc. | 0.580 | 5/16/16 | $10,000,000 | $9,997,842 | ||
| ABN AMRO Funding USA, LLC | 0.601 | 7/5/16 | 16,000,000 | 15,986,243 | ||
| American Honda Finance Corp. | 0.511 | 6/6/16 | 31,000,000 | 30,984,424 | ||
| Apple, Inc. | 0.420 | 7/5/16 | 31,000,000 | 30,975,076 | ||
| AXA Financial, Inc. | 0.802 | 5/3/16 | 12,000,000 | 11,999,419 | ||
| AXA Financial, Inc. | 0.701 | 6/8/16 | 4,000,000 | 3,997,809 | ||
| BMW US Capital, LLC 144A | 0.400 | 5/2/16 | 13,200,000 | 13,199,598 | ||
| BNP Paribas SA/New York, NY (France) | 0.290 | 5/2/16 | 30,000,000 | 29,999,060 | ||
| BPCE SA (France) | 0.380 | 5/5/16 | 15,800,000 | 15,798,973 | ||
| Canada (Government of) (Canada) | 0.441 | 5/19/16 | 25,000,000 | 24,995,875 | ||
| Canadian Imperial Holdings, Inc. | 0.654 | 5/10/16 | 20,000,000 | 20,001,740 | ||
| Commonwealth Bank of Australia (Australia) | 0.541 | 5/31/16 | 31,000,000 | 30,992,615 | ||
| Cooperatieve Rabobank UA/NY (Netherlands) | 0.717 | 8/1/16 | 30,000,000 | 29,953,548 | ||
| Danske Corp. (Denmark) | 0.571 | 7/6/16 | 15,000,000 | 14,986,882 | ||
| Danske Corp. (Denmark) | 0.551 | 5/5/16 | 15,000,000 | 14,999,078 | ||
| DnB Bank ASA (Norway) | 0.651 | 7/5/16 | 31,500,000 | 31,473,971 | ||
| Export Development Canada (Canada) | 0.652 | 5/9/16 | 25,000,000 | 24,997,813 | ||
| HSBC Bank PLC 144A (United Kingdom) | 0.791 | 7/21/16 | 7,500,000 | 7,503,758 | ||
| Lloyds Bank PLC (United Kingdom) | 0.581 | 7/5/16 | 15,750,000 | 15,735,021 | ||
| Lloyds Bank PLC (United Kingdom) | 0.571 | 5/2/16 | 27,000,000 | 26,999,154 | ||
| National Australia Bank, Ltd. 144A (Australia) | 0.803 | 8/2/16 | 9,000,000 | 8,988,885 | ||
| National Bank of Canada 144A (Canada) | 0.571 | 6/22/16 | 30,000,000 | 29,980,110 | ||
| Nestle Finance International, Ltd. (Switzerland) | 0.586 | 7/14/16 | 31,000,000 | 30,966,231 | ||
| Nordea Bank AB (acquired 2/9/16, cost $15,979,400)(Sweden) ** | 0.516 | 5/9/16 | 16,000,000 | 15,998,147 | ||
| NSTAR Electric Co. (Canada) | 0.350 | 5/6/16 | 13,000,000 | 12,999,065 | ||
| Prudential PLC (United Kingdom) | 0.581 | 6/14/16 | 15,000,000 | 14,991,739 | ||
| Prudential PLC (United Kingdom) | 0.551 | 5/23/16 | 17,000,000 | 16,995,433 | ||
| Roche Holdings, Inc. (Switzerland) | 0.481 | 5/3/16 | 8,000,000 | 7,999,701 | ||
| Roche Holdings, Inc. (Switzerland) | 0.481 | 5/2/16 | 27,000,000 | 26,999,246 | ||
| Simon Property Group LP | 0.531 | 7/19/16 | 2,843,000 | 2,839,898 | ||
| Simon Property Group LP | 0.460 | 5/12/16 | 20,750,000 | 20,747,175 | ||
| Skandinaviska Enskilda Banken AB 144A, Ser. GLOB (Sweden) | 0.727 | 7/28/16 | 32,000,000 | 31,960,800 | ||
| Standard Chartered Bank/New York 144A | 0.631 | 6/17/16 | 31,000,000 | 30,979,198 | ||
| Stanley Black & Decker, Inc. | 0.590 | 5/11/16 | 14,000,000 | 13,997,830 | ||
| Stanley Black & Decker, Inc. | 0.530 | 5/2/16 | 11,000,000 | 10,999,615 | ||
| Sumitomo Mitsui Banking Corp. (Japan) | 0.601 | 5/18/16 | 5,000,000 | 4,999,147 | ||
| Svenska Handelsbanken AB (Sweden) | 0.646 | 7/13/16 | 32,500,000 | 32,464,792 | ||
| Swedbank AB (Sweden) | 0.300 | 5/2/16 | 50,000,000 | 49,998,646 | ||
| Toyota Motor Credit Corp. | 0.561 | 5/25/16 | 30,000,000 | 29,992,915 | ||
| UnitedHealth Group, Inc. | 0.680 | 5/24/16 | 5,000,000 | 4,998,354 | ||
| UnitedHealth Group, Inc. | 0.650 | 5/3/16 | 7,726,000 | 7,725,626 | ||
| UnitedHealth Group, Inc. | 0.530 | 5/2/16 | 15,000,000 | 14,999,456 | ||
| Total commercial paper (cost $828,108,384) | $828,199,908 | |||||
| REPURCHASE AGREEMENTS (27.7%)(a) | ||||||
| Principal amount | Value | |||||
| Interest in $186,000,000 joint tri-party repurchase agreement dated 4/29/16 with Bank of Nova Scotia due 5/2/16 - maturity value of $86,001,935 for an effective yield of 0.270% (collateralized by various U.S. Treasury notes and bonds with coupon rates ranging from 0.125% to 4.375% and due dates ranging from 5/31/16 to 2/15/38, valued at $189,724,354) | $86,000,000 | $86,000,000 | ||||
| Interest in $71,250,000 tri-party term repurchase agreement dated 4/25/16 with Barclays Capital, Inc. due 5/2/16 - maturity value of $71,254,156 for an effective yield of 0.300% (collateralized by various mortgage backed securities with coupon rates ranging from 3.000% to 5.000% and due dates ranging from 1/1/19 to 3/1/46, valued at $72,675,000) | 71,250,000 | 71,250,000 | ||||
| Interest in $250,000,000 joint tri-party repurchase agreement dated 4/29/16 with Barclays Capital, Inc. due 5/2/16 - maturity value of $150,003,500 for an effective yield of 0.280% (collateralized by various U.S. Treasury notes and bonds with coupon rates ranging from 0.125% to 3.875% and due dates ranging from 7/15/16 to 4/15/32, valued at $255,000,086) | 150,000,000 | 150,000,000 | ||||
| Interest in $32,000,000 tri-party term repurchase agreement dated 4/25/16 with BNP Paribas due 6/24/16 - maturity value of $32,027,733 for an effective yield of 0.520% (collateralized by a corporate bond with a coupon rate of 3.000% and a due date of 4/22/26, valued at $33,603,398) (IR) | 32,000,000 | 32,000,000 | ||||
| Interest in $237,500,000 joint tri-party term repurchase agreement dated 4/28/16 with Citigroup Global Markets, Inc. due 5/5/16 - maturity value of $143,508,092 for an effective yield of 0.290% (collateralized by various U.S. Treasury notes and bonds with coupon rates ranging from zero % to 3.000% and due dates ranging from 7/31/16 to 8/31/22, valued at $242,250,075) | 143,500,000 | 143,500,000 | ||||
| Interest in $353,599,000 joint tri-party repurchase agreement dated 4/29/16 with Citigroup Global Markets, Inc. due 5/2/16 - maturity value of $74,871,872 for an effective yield of 0.300% (collateralized by various mortgage backed securities with coupon rates ranging from 2.000% to 8.500% and due dates ranging from 12/1/16 to 3/15/51, valued at $360,670,980) | 74,870,000 | 74,870,000 | ||||
| Interest in $50,000,000 tri-party repurchase agreement dated 4/29/16 with Credit Suisse Securities (USA), LLC due 5/2/16 - maturity value of $50,001,167 for an effective yield of 0.280% (collateralized by a U.S. Treasury note with a coupon rate of 2.125% and a due date of 8/15/21, valued at $51,003,339) | 50,000,000 | 50,000,000 | ||||
| Interest in $76,000,000 tri-party repurchase agreement dated 4/29/16 with Goldman, Sachs & Co. due 5/2/16 - maturity value of $76,001,773 for an effective yield of 0.280% (collateralized by various mortgage backed securities with coupon rates ranging from 3.500% to 4.000% and due dates ranging from 6/1/25 to 2/1/46, valued at $77,520,000) | 76,000,000 | 76,000,000 | ||||
| Interest in $50,000,000 tri-party term repurchase agreement dated 4/26/16 with J.P. Morgan Securities, LLC due 5/3/16 - maturity value of $50,002,819 for an effective yield of 0.290% (collateralized by various mortgage backed securities with coupon rates ranging from 2.500% to 11.000% and due dates ranging from 6/1/16 to 4/1/51, valued at $51,003,489) | 50,000,000 | 50,000,000 | ||||
| Interest in $100,000,000 joint tri-party term repurchase agreement dated 4/26/16 with Merrill Lynch, Pierce, Fenner and Smith, Inc. due 5/3/16 - maturity value of $61,253,454 for an effective yield of 0.290% (collateralized by a mortgage backed security with a coupon rate of 4.000% and a due date of 9/20/45, valued at $102,000,000) | 61,250,000 | 61,250,000 | ||||
| Total repurchase agreements (cost $794,870,000) | $794,870,000 | |||||
| ASSET-BACKED COMMERCIAL PAPER (17.5%)(a) | ||||||
| Yield (%) | Maturity date | Principal amount | Value | |||
| Atlantic Asset Securitization, LLC | 0.420 | 5/25/16 | $15,000,000 | $14,995,114 | ||
| CAFCO, LLC | 0.571 | 6/2/16 | 21,000,000 | 20,991,650 | ||
| CAFCO, LLC | 0.571 | 5/16/16 | 11,000,000 | 10,998,198 | ||
| CAFCO, LLC | 0.320 | 5/2/16 | 32,000,000 | 31,999,320 | ||
| Chariot Funding, LLC | 0.854 | 7/7/16 | 16,000,000 | 15,983,440 | ||
| Chariot Funding, LLC | 0.501 | 5/9/16 | 10,000,000 | 9,998,839 | ||
| CHARTA, LLC | 0.561 | 5/23/16 | 22,000,000 | 21,994,280 | ||
| CHARTA, LLC | 0.390 | 5/25/16 | 8,000,000 | 7,997,706 | ||
| CIESCO, LLC | 0.581 | 5/9/16 | 28,000,000 | 27,997,674 | ||
| CRC Funding, LLC | 0.571 | 5/23/16 | 30,000,000 | 29,992,200 | ||
| Gotham Funding Corp. (Japan) | 0.460 | 5/11/16 | 10,000,000 | 9,998,590 | ||
| Jupiter Securitization Co., LLC | 0.854 | 7/13/16 | 12,250,000 | 12,235,708 | ||
| Jupiter Securitization Co., LLC | 0.854 | 7/5/16 | 17,750,000 | 17,732,393 | ||
| Liberty Street Funding, LLC (Canada) | 0.682 | 5/23/16 | 21,000,000 | 20,993,742 | ||
| Liberty Street Funding, LLC (Canada) | 0.611 | 5/16/16 | 9,000,000 | 8,998,160 | ||
| Liberty Street Funding, LLC (Canada) | 0.300 | 5/2/16 | 30,000,000 | 29,999,000 | ||
| Manhattan Asset Funding Co., LLC (Japan) | 0.510 | 6/9/16 | 16,000,000 | 15,991,217 | ||
| Manhattan Asset Funding Co., LLC (Japan) | 0.460 | 5/23/16 | 11,363,000 | 11,359,614 | ||
| MetLife Short Term Funding, LLC | 0.470 | 5/24/16 | 25,000,000 | 24,992,726 | ||
| MetLife Short Term Funding, LLC | 0.460 | 6/13/16 | 5,000,000 | 4,997,125 | ||
| Old Line Funding, LLC 144A | 0.874 | 7/14/16 | 6,000,000 | 5,993,249 | ||
| Old Line Funding, LLC 144A | 0.795 | 7/12/16 | 18,350,000 | 18,359,432 | ||
| Old Line Funding, LLC 144A | 0.651 | 7/25/16 | 8,000,000 | 7,988,980 | ||
| Regency Markets No. 1, LLC 144A | 0.440 | 5/16/16 | 23,500,000 | 23,495,195 | ||
| Sheffield Receivables Co., LLC (United Kingdom) | 0.591 | 5/9/16 | 16,000,000 | 15,998,142 | ||
| Thunder Bay Funding, LLC | 0.300 | 5/2/16 | 15,000,000 | 14,999,500 | ||
| Thunder Bay Funding, LLC 144A | 0.786 | 7/19/16 | 11,000,000 | 11,005,742 | ||
| Thunder Bay Funding, LLC 144A | 0.776 | 6/17/16 | 24,225,000 | 24,234,738 | ||
| Working Capital Management Co. (Japan) | 0.541 | 5/16/16 | 16,000,000 | 15,996,728 | ||
| Working Capital Management Co. (Japan) | 0.510 | 6/3/16 | 14,000,000 | 13,993,603 | ||
| Total asset-backed commercial paper (cost $502,247,305) | $502,312,005 | |||||
| CERTIFICATES OF DEPOSIT (9.4%)(a) | ||||||
| Yield (%) | Maturity date | Principal amount | Value | |||
| Australia & New Zealand Banking Group, Ltd./New York, NY | 0.450 | 5/9/16 | $28,000,000 | $28,000,736 | ||
| Bank of America, NA FRN | 0.606 | 5/9/16 | 39,050,000 | 39,049,883 | ||
| Bank of Montreal/Chicago, IL FRN (Canada) | 0.836 | 10/17/16 | 30,000,000 | 30,007,500 | ||
| Citibank, NA | 0.710 | 7/25/16 | 16,000,000 | 16,006,460 | ||
| Citibank, NA | 0.620 | 6/13/16 | 16,000,000 | 16,003,786 | ||
| Mitsubishi UFJ Trust & Banking Corp./NY FRN | 0.868 | 7/25/16 | 21,000,000 | 21,014,490 | ||
| Nordea Bank Finland PLC/New York FRN | 0.689 | 8/23/16 | 15,000,000 | 15,001,290 | ||
| State Street Bank & Trust Co. FRN | 0.787 | 10/20/16 | 30,000,000 | 29,999,490 | ||
| Toronto-Dominion Bank/NY (Canada) | 0.610 | 6/13/16 | 10,000,000 | 10,004,230 | ||
| Toronto-Dominion Bank/NY FRN (Canada) | 0.606 | 5/19/16 | 18,000,000 | 18,002,016 | ||
| US Bank, NA/Cincinnati OH FRN | 0.740 | 7/20/16 | 15,000,000 | 15,005,790 | ||
| Westpac Banking Corp./NY (Australia) | 0.560 | 6/6/16 | 32,000,000 | 32,009,554 | ||
| Total certificates of deposit (cost $270,057,667) | $270,105,225 | |||||
| U.S. TREASURY OBLIGATIONS (5.6%)(a) | ||||||
| Yield (%) | Maturity date | Principal amount | Value | |||
| U.S. Treasury Bills | 0.316 | 7/7/16 | $50,000,000 | $49,986,450 | ||
| U.S. Treasury FRN | 0.334 | 1/31/17 | 42,150,000 | 42,156,061 | ||
| U.S. Treasury FRN | 0.320 | 7/31/16 | 33,810,000 | 33,814,226 | ||
| U.S. Treasury FRN | 0.303 | 10/31/16 | 35,500,000 | 35,498,814 | ||
| Total U.S. treasury obligations (cost $161,431,044) | $161,455,551 | |||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS (5.1%)(a) | ||||||
| Yield (%) | Maturity date | Principal amount | Value | |||
| Federal Home Loan Banks unsec. discount notes | 0.392 | 5/27/16 | $25,000,000 | $24,995,650 | ||
| Federal Home Loan Banks unsec. discount notes | 0.390 | 7/1/16 | 43,250,000 | 43,226,946 | ||
| Federal Home Loan Banks unsec. discount notes | 0.365 | 5/26/16 | 30,000,000 | 29,994,990 | ||
| Federal Home Loan Mortgage Corporation unsec. discount notes | 0.471 | 5/9/16 | 25,000,000 | 24,998,775 | ||
| Federal Home Loan Mortgage Corporation unsec. discount notes | 0.461 | 8/12/16 | 4,020,000 | 4,016,129 | ||
| Federal National Mortgage Association unsec. discount notes | 0.401 | 7/19/16 | 19,500,000 | 19,486,487 | ||
| Total U.S. government agency obligations (cost $146,701,717) | $146,718,977 | |||||
| TIME DEPOSITS (2.4%)(a) | ||||||
| Yield (%) | Maturity date | Principal amount | Value | |||
| Australia & New Zealand Banking Group, Ltd./Cayman Islands (Cayman Islands) | 0.300 | 5/2/16 | $27,750,000 | $27,750,000 | ||
| Credit Agricole Corporate and Investment Bank/Grand Cayman (Cayman Islands) | 0.310 | 5/2/16 | 13,500,000 | 13,500,000 | ||
| Svenska Handelsbanken/Cayman Islands (Sweden) | 0.270 | 5/2/16 | 27,750,000 | 27,750,000 | ||
| Total time deposits (cost $69,000,000) | $69,000,000 | |||||
| MUNICIPAL BONDS AND NOTES (2.2%)(a) | ||||||
| Yield (%) | Maturity date | Principal amount | Value | |||
| Johns Hopkins University Commercial Paper, Ser. C | 0.480 | 5/25/16 | $24,000,000 | $23,993,760 | ||
| Texas A&M University Commercial Paper, Ser. B | 0.550 | 6/13/16 | 15,000,000 | 14,995,350 | ||
| University of Chicago Commercial Paper, Ser. A | 0.470 | 5/24/16 | 25,000,000 | 24,991,250 | ||
| Total municipal bonds and notes (cost $63,992,493) | $63,980,360 | |||||
| CORPORATE BONDS AND NOTES (0.1%)(a) | ||||||
| Interest rate (%) | Maturity date | Principal amount | Value | |||
| Nordea Bank AB 144A sr. unsec. notes (acquired 4/1/16, cost $3,481,596) (Sweden)(RES) | 0.875 | 5/13/16 | $3,480,000 | $3,480,355 | ||
| Total corporate bonds and notes (cost $3,480,456) | $3,480,355 | |||||
| TOTAL INVESTMENTS | ||||||
| Total investments (cost $2,839,889,066)(b) | $2,840,122,381 | |||||
| Key to holding's abbreviations | |||
| FRN | Floating Rate Notes: the rate shown is the current interest rate or yield at the close of the reporting period | ||
| 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 August 1, 2015 through April 30, 2016 (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 $2,870,777,788. | |||||
| (b) | The aggregate identified cost on a tax basis is $2,839,889,066, resulting in gross unrealized appreciation and depreciation of $256,725 and $23,410, respectively, or net unrealized appreciation of $233,315. | |||||
| (RES) | This security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $3,480,355, or 0.1% of net assets. | |||||
| ** | On April 1, 2016, the non-restricted holdings of Nordea Bank AB were as follows: | |||||
| Holding | Type | Principal | Value | |||
| Nordea Bank AB | Commerical paper | $16,000,000 | $15,998,147 | |||
(IR) | Repurchase agreements with a maturity of more than seven days are considered to be illiquid investments. | |||||
| 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): | ||||||
| United States | 69.7% | |||||
| Canada | 7.4 | |||||
| Sweden | 5.7 | |||||
| United Kingdom | 3.5 | |||||
| Japan | 2.5 | |||||
| Australia | 2.5 | |||||
| Switzerland | 2.3 | |||||
| France | 1.6 | |||||
| Cayman Islands | 1.5 | |||||
| Norway | 1.1 | |||||
| Denmark | 1.1 | |||||
| Netherlands | 1.1 | |||||
| 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 (including short-term investments with remaining maturities of 60 days or less) 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. | ||||||
| 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. | ||||||
| Repurchase agreements: The fund, or any joint trading account, through its custodian, receives delivery of the underlying securities, the fair value of which at the time of purchase is required to be in an amount at least equal to the resale price, including accrued interest. Collateral for certain tri-party repurchase agreements is held at the counterparty's custodian in a segregated account for the benefit of the fund and the counterparty. Putnam Management is responsible for determining that the value of these underlying securities is at all times at least equal to the resale price, including accrued interest. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. | ||||||
| ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund's investments. The three levels are defined as follows: | ||||
| Level 1: Valuations based on quoted prices for identical securities in active markets. | ||||
| Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||
| Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement. | ||||
| The following is a summary of the inputs used to value the fund's net assets as of the close of the reporting period: | ||||
| Valuation inputs | ||||
|
| ||||
| Investments in securities: | Level 1 | Level 2 | Level 3 | |
| Asset-backed commercial paper | $— | $502,312,005 | $— | |
| Certificates of deposit | — | 270,105,225 | — | |
| Commercial paper | — | 828,199,908 | — | |
| Corporate bonds and notes | — | 3,480,355 | — | |
| Municipal bonds and notes | — | 63,980,360 | — | |
| Repurchase agreements | — | 794,870,000 | — | |
| Time deposits | — | 69,000,000 | — | |
| U.S. government agency obligations | — | 146,718,977 | — | |
| U.S. treasury obligations | — | 161,455,551 | — | |
|
|
|
|
||
| Totals by level | $— | $2,840,122,381 | $— | |
| 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. Transfers are accounted for using the end of period pricing valuation method. | ||||
| 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 Nova Scotia | Barclays Capital, Inc. | BNP Paribas | Citigroup Global Markets, Inc. | Credit Suisse Securities (USA), LLC | Goldman, Sachs & Co. | J.P. Morgan Securities, LLC | Merrill Lynch, Pierce, Fenner and Smith, Inc. | Total | ||||
| Assets: | ||||||||||||
| Repurchase agreements | $86,000,000 | $221,250,000 | $32,000,000 | $218,370,000 | $50,000,000 | $76,000,000 | $50,000,000 | $61,250,000 | $794,870,000 | |||
| Total Assets | $86,000,000 | $221,250,000 | $32,000,000 | $218,370,000 | $50,000,000 | $76,000,000 | $50,000,000 | $61,250,000 | $794,870,000 | |||
| Liabilities: | ||||||||||||
| Total Liabilities | $— | $— | $— | $— | $— | $— | $— | $— | $— | |||
| Total Financial and Derivative Net Assets | $86,000,000 | $221,250,000 | $32,000,000 | $218,370,000 | $50,000,000 | $76,000,000 | $50,000,000 | $61,250,000 | $794,870,000 | |||
| Total collateral received (pledged)##† | $86,000,000 | $221,250,000 | $32,000,000 | $218,370,000 | $50,000,000 | $76,000,000 | $50,000,000 | $61,250,000 | ||||
| Net amount | $— | $— | $— | $— | $— | $— | $— | $— | ||||
| † | Additional collateral may be required from certain brokers based on individual agreements. | |||||||||||
| ## | Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements. | |||||||||||
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: June 28, 2016 |
| 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: June 28, 2016 |
| By (Signature and Title): |
| /s/ Steven D. Krichmar Steven D. Krichmar Principal Financial Officer Date: June 28, 2016 |
| 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: June 27, 2016 | |
| 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: June 27, 2016 | |
| Steven D. Krichmar | |
| Principal Financial Officer | |
Attachment A | |
NQ | |
Period (s) ended April 30, 2016 | |
| Putnam Premier Income Trust | |
| Putnam Research Fund | |
| Putnam Investors Fund | |
| Putnam Voyager Fund | |
| Putnam Tax- Free High Yield Fund | |
| Putnam AMT-Free Municipal Fund | |
| Putnam Growth Opportunities Fund | |
| George Putnam Balanced Fund | |
| Putnam Short Duration Income Fund | |
| Putnam Short Term Investment Fund | |
| Putnam Strategic Volatility Equity Fund | |
| Putnam Low Volatility Equity Fund | |
Putnam RetirementReady — Funds: | |
| Putnam RetirementReady — 2060 | |
| Putnam RetirementReady — 2055 | |
| Putnam RetirementReady — 2050 | |
| Putnam RetirementReady — 2045 | |
| Putnam RetirementReady — 2040 | |
| Putnam RetirementReady — 2035 | |
| Putnam RetirementReady — 2030 | |
| Putnam RetirementReady — 2025 | |
| Putnam RetirementReady — 2020 | |
| Putnam Retirement Income Fund Lifestyle 1 |