N-Q

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: October 31, 2017

Date of reporting period: July 31, 2017

Item 1. Schedule of Investments:

Putnam Absolute Return 100 Fund
The fund's portfolio
7/31/17 (Unaudited)
CORPORATE BONDS AND NOTES (40.3%)(a)
			Principal amount	Value
Banking (10.7%)
ABN AMRO Bank NV 144A sr. unsec. FRN 1.944%, 1/18/19 (Netherlands)			$1,125,000	$1,130,565
ANZ New Zealand Int'l, Ltd./London 144A company guaranty sr. unsec. FRN 2.314%, 1/25/22 (United Kingdom)			1,500,000	1,514,928
Bank of America Corp. sr. unsec. unsub. notes 2.00%, 1/11/18			1,159,000	1,161,260
Bank of America Corp. sr. unsec. unsub. notes Ser. MTN, 2.151%, 11/9/20			535,000	534,604
Bank of Nova Scotia (The) sr. unsec. unsub. notes 1.375%, 12/18/17 (Canada)			430,000	429,862
Banque Federative du Credit Mutuel SA 144A sr. unsec. unsub. notes 2.20%, 7/20/20 (France)			605,000	605,597
BNP Paribas SA company guaranty sr. unsec. unsub. notes Ser. BKNT, 5.00%, 1/15/21 (France)			600,000	655,885
Citigroup, Inc. sr. unsec. notes 2.65%, 10/26/20			520,000	526,171
Citizens Bank NA/Providence RI sr. unsec. notes 2.25%, 3/2/20			695,000	697,456
Commonwealth Bank of Australia 144A sr. unsec. notes 1.75%, 11/7/19 (Australia)			500,000	497,123
HBOS PLC unsec. sub. FRN Ser. EMTN, 1.923%, 9/6/17 (United Kingdom)			1,000,000	999,500
HSBC USA, Inc. sr. unsec. unsub. notes 2.00%, 8/7/18			1,000,000	1,003,400
JPMorgan Chase & Co. sr. unsec. unsub. notes 2.25%, 1/23/20			1,000,000	1,007,240
JPMorgan Chase & Co. sr. unsec. unsub. notes 2.00%, 8/15/17			428,000	428,094
JPMorgan Chase & Co. unsec. sub. notes 3.875%, 9/10/24			135,000	140,031
KeyCorp sr. unsec. unsub. notes Ser. MTN, 2.30%, 12/13/18			447,000	450,019
National Australia Bank, Ltd., NY sr. unsec. notes 2.80%, 1/10/22 (Australia)			1,500,000	1,523,363
PNC Bank NA sr. unsec. notes Ser. BKNT, 2.00%, 5/19/20			350,000	350,324
Royal Bank of Canada sr. unsec. notes Ser. GMTN, 2.125%, 3/2/20 (Canada)			735,000	738,401
Royal Bank of Canada sr. unsec. unsub. notes Ser. GMTN, 2.20%, 7/27/18 (Canada)			435,000	437,632
Royal Bank of Scotland Group PLC jr. unsec. sub. FRB 7.50%, perpetual maturity (United Kingdom)			200,000	211,250
Royal Bank of Scotland Group PLC unsec. sub. notes 4.70%, 7/3/18 (United Kingdom)			1,535,000	1,567,668
Santander Issuances SAU company guaranty unsec. sub. notes 5.179%, 11/19/25 (Spain)			200,000	216,458
Skandinaviska Enskilda Banken AB sr. unsec. notes 2.30%, 3/11/20 (Sweden)			1,645,000	1,655,561
Wells Fargo & Co. sr. unsec. notes Ser. GMTN, 2.60%, 7/22/20			1,015,000	1,032,174
Westpac Banking Corp. sr. unsec. unsub. notes 2.15%, 3/6/20 (Australia)			1,500,000	1,507,550
				21,022,116
Basic materials (1.7%)
Archer-Daniels-Midland Co. sr. unsec. notes 5.45%, 3/15/18			338,000	346,310
Georgia-Pacific, LLC 144A company guaranty sr. unsec. notes 5.40%, 11/1/20			1,000,000	1,099,685
International Paper Co. sr. unsec. notes 9.375%, 5/15/19			1,000,000	1,126,759
Southern Copper Corp. sr. unsec. unsub. notes 5.875%, 4/23/45 (Peru)			200,000	222,791
WestRock RKT Co. company guaranty sr. unsec. unsub. notes 4.45%, 3/1/19			450,000	466,325
				3,261,870
Capital goods (1.9%)
Boeing Co. (The) sr. unsec. bonds 8.75%, 8/15/21			865,000	1,082,907
Covidien International Finance SA company guaranty sr. unsec. unsub. notes 6.00%, 10/15/17 (Luxembourg)			430,000	433,954
Rockwell Collins, Inc. sr. unsec. sub. notes 1.95%, 7/15/19			1,000,000	1,002,835
United Technologies Corp. sr. unsec. unsub. notes 1.90%, 5/4/20			1,185,000	1,189,188
				3,708,884
Communication services (1.9%)
AT&T, Inc. sr. unsec. unsub. notes 3.00%, 6/30/22			1,000,000	1,011,977
NBCUniversal Media, LLC company guaranty sr. unsec. unsub. notes 5.15%, 4/30/20			155,000	168,968
Verizon Communications, Inc. sr. unsec. unsub. FRN 1.552%, 8/15/19			1,000,000	1,001,608
Verizon Communications, Inc. sr. unsec. unsub. notes 2.946%, 3/15/22			833,000	841,528
Vodafone Group PLC sr. unsec. unsub. notes 1.25%, 9/26/17 (United Kingdom)			744,000	743,911
				3,767,992
Conglomerates (0.6%)
Siemens Financieringsmaatschappij NV 144A company guaranty sr. unsec. notes 2.20%, 3/16/20 (Netherlands)			1,255,000	1,261,511
				1,261,511
Consumer cyclicals (2.2%)
Amazon.com, Inc. sr. unsec. notes 1.20%, 11/29/17			423,000	422,691
Autonation, Inc. company guaranty sr. unsec. unsub. notes 6.75%, 4/15/18			365,000	377,496
Autonation, Inc. company guaranty sr. unsec. unsub. notes 5.50%, 2/1/20			100,000	107,390
Dollar General Corp. sr. unsec. sub. notes 1.875%, 4/15/18			300,000	300,162
General Motors Financial Co., Inc. company guaranty sr. unsec. unsub. notes 3.10%, 1/15/19			1,000,000	1,015,094
Moody's Corp. sr. unsec. unsub. notes 2.75%, 12/15/21			1,000,000	1,011,052
S&P Global, Inc. company guaranty sr. unsec. unsub. notes 3.30%, 8/14/20			1,010,000	1,039,100
				4,272,985
Consumer finance (1.2%)
Air Lease Corp. sr. unsec. notes 2.625%, 9/4/18			1,385,000	1,396,907
American Express Co. jr. unsec. sub. FRN Ser. C, 4.90%, perpetual maturity			370,000	378,325
American Express Co. sr. unsec. notes 7.00%, 3/19/18			286,000	295,674
American Express Co. sr. unsec. notes 6.15%, 8/28/17			174,000	174,556
				2,245,462
Consumer staples (4.2%)
Altria Group, Inc. company guaranty sr. unsec. unsub. notes 2.625%, 1/14/20			1,905,000	1,940,157
Anheuser-Busch InBev Finance, Inc. company guaranty sr. unsec. unsub. bonds 4.90%, 2/1/46			577,000	648,011
Anheuser-Busch InBev Finance, Inc. company guaranty sr. unsec. unsub. bonds 3.65%, 2/1/26			578,000	597,837
Anheuser-Busch InBev Finance, Inc. company guaranty sr. unsec. unsub. notes 1.90%, 2/1/19			1,255,000	1,260,522
Anheuser-Busch InBev Finance, Inc. company guaranty sr. unsec. unsub. notes 1.25%, 1/17/18			156,000	155,788
CVS Health Corp. sr. unsec. notes 4.75%, 12/1/22			1,030,000	1,129,940
CVS Health Corp. sr. unsec. unsub. notes 2.25%, 12/5/18			430,000	432,924
Molson Coors Brewing Co. 144A company guaranty sr. unsec. unsub. notes 1.90%, 3/15/19			680,000	679,910
Mondelez International Holdings Netherlands BV 144A company guaranty sr. unsec. unsub. notes 1.625%, 10/28/19 (Netherlands)			1,000,000	992,363
PepsiCo, Inc. sr. unsec. unsub. notes 1.25%, 8/13/17			427,000	426,975
				8,264,427
Energy (3.2%)
Chevron Corp. sr. unsec. unsub. notes 1.561%, 5/16/19			530,000	529,905
Chevron Corp. sr. unsec. unsub. notes 1.104%, 12/5/17			423,000	422,600
ConocoPhillips Co. company guaranty sr. unsec. unsub. notes 1.05%, 12/15/17			430,000	429,320
Hess Corp. sr. unsec. unsub. notes 7.30%, 8/15/31			25,000	29,609
Petrobras Global Finance BV company guaranty sr. unsec. unsub. bonds 7.25%, 3/17/44 (Brazil)			689,000	692,445
Petrobras Global Finance BV company guaranty sr. unsec. unsub. notes 8.75%, 5/23/26 (Brazil)			312,000	366,600
Petrobras Global Finance BV company guaranty sr. unsec. unsub. notes 6.25%, 3/17/24 (Brazil)			594,000	619,988
Petrobras Global Finance BV company guaranty sr. unsec. unsub. notes 6.125%, 1/17/22 (Brazil)			53,000	55,716
Petroleos Mexicanos company guaranty sr. unsec. unsub. notes 5.50%, 1/21/21 (Mexico)			1,500,000	1,599,528
Petroleos Mexicanos company guaranty sr. unsec. unsub. notes 4.50%, 1/23/26 (Mexico)			99,000	98,347
Phillips 66 144A company guaranty sr. unsec. FRN 2.054%, 4/15/20			1,000,000	1,001,987
Statoil ASA company guaranty sr. unsec. unsub. notes 2.90%, 11/8/20 (Norway)			343,000	351,952
				6,197,997
Financial (2.4%)
GE Capital International Funding Co. Unlimited Co. company guaranty sr. unsec. notes 2.342%, 11/15/20 (Ireland)			930,000	936,933
KKR Group Finance Co., LLC 144A company guaranty sr. unsec. unsub. notes 6.375%, 9/29/20			1,977,000	2,218,528
Macquarie Bank, Ltd. 144A sr. unsec. notes 4.00%, 7/29/25 (Australia)			310,000	325,288
Macquarie Group Ltd. 144A sr. unsec. notes 7.625%, 8/13/19 (Australia)			260,000	285,906
UBS AG/London 144A sr. unsec. notes 2.20%, 6/8/20 (United Kingdom)			380,000	381,928
UBS Group Funding Jersey, Ltd. 144A company guaranty sr. unsec. notes 3.00%, 4/15/21 (Switzerland)			565,000	575,067
				4,723,650
Health care (1.4%)
AstraZeneca PLC sr. unsec. unsub. notes 5.90%, 9/15/17 (United Kingdom)			430,000	432,110
Biogen, Inc. sr. unsec. sub. notes 3.625%, 9/15/22			730,000	767,235
Johnson & Johnson sr. unsec. notes 5.15%, 7/15/18			269,000	278,493
Pfizer, Inc. sr. unsec. unsub. notes 1.70%, 12/15/19			635,000	636,139
Shire Acquisitions Investments Ireland DAC company guaranty sr. unsec. unsub. notes 1.90%, 9/23/19 (Ireland)			500,000	499,419
UnitedHealth Group, Inc. sr. unsec. notes 6.00%, 2/15/18			192,000	196,590
				2,809,986
Insurance (2.0%)
AIG Global Funding 144A sr. notes 2.15%, 7/2/20			325,000	325,705
Hartford Financial Services Group, Inc. (The) jr. unsec. sub. FRB 8.125%, 6/15/38			235,000	246,456
Marsh & McLennan Companies, Inc. sr. unsec. unsub. notes 2.75%, 1/30/22			1,000,000	1,012,588
MetLife, Inc. sr. unsec. unsub. notes 4.75%, 2/8/21			1,180,000	1,285,093
Metropolitan Life Global Funding I 144A sr. notes 3.00%, 1/10/23			790,000	807,861
Protective Life Global Funding 144A notes 2.262%, 4/8/20			325,000	325,568
				4,003,271
Investment banking/Brokerage (1.8%)
Goldman Sachs Group, Inc. (The) sr. unsec. unsub. FRN 2.352%, 11/15/21			1,500,000	1,514,754
Goldman Sachs Group, Inc. (The) sr. unsec. unsub. notes 2.60%, 12/27/20			280,000	282,395
Goldman Sachs Group, Inc. (The) sr. unsec. unsub. notes Ser. GLOB, 2.375%, 1/22/18			229,000	229,883
Morgan Stanley sr. unsec. unsub. FRN 2.487%, 1/20/22			1,500,000	1,514,969
				3,542,001
Real estate (0.4%)
Liberty Property LP sr. unsec. unsub. notes 3.375%, 6/15/23(R)			550,000	558,031
Select Income REIT sr. unsec. unsub. notes 3.60%, 2/1/20(R)			130,000	131,973
Select Income REIT sr. unsec. unsub. notes 2.85%, 2/1/18(R)			130,000	130,502
				820,506
Technology (2.7%)
Apple, Inc. sr. unsec. notes 2.10%, 5/6/19			1,395,000	1,409,430
Apple, Inc. sr. unsec. unsub. notes 2.00%, 5/6/20			359,000	361,620
Broadcom Corp./Broadcom Cayman Finance, Ltd. 144A company guaranty sr. unsec. unsub. notes 3.00%, 1/15/22			1,000,000	1,015,245
Intel Corp. sr. unsec. unsub. notes 1.35%, 12/15/17			430,000	430,030
Microsoft Corp. sr. unsec. unsub. notes 1.55%, 8/8/21			990,000	973,892
Oracle Corp. sr. unsec. unsub. notes 2.25%, 10/8/19			1,110,000	1,124,608
				5,314,825
Transportation (0.4%)
Continental Airlines, Inc. Pass-Through Trust pass-through certificates Ser. 97-4, Class A, 6.90%, 1/2/18			67,194	67,866
Continental Airlines, Inc. Pass-Through Trust pass-through certificates Ser. 98-1, Class A, 6.648%, 9/15/17			5,880	5,910
Federal Express Corp. Pass-Through Trust 144A pass-through certificates Ser. 12, 2.625%, 1/15/18			34,608	34,636
FedEx Corp. company guaranty sr. unsec. unsub. notes 3.20%, 2/1/25			625,000	638,298
				746,710
Utilities and power (1.6%)
Boardwalk Pipelines LP company guaranty sr. unsec. unsub. notes 5.75%, 9/15/19			500,000	531,690
Consolidated Edison Co. of New York, Inc. sr. unsec. notes 7.125%, 12/1/18			289,000	309,269
Consolidated Edison, Inc. sr. unsec. unsub. notes Ser. A, 2.00%, 3/15/20			320,000	320,685
IPALCO Enterprises, Inc. sr. notes 5.00%, 5/1/18			277,000	281,155
Texas-New Mexico Power Co. 144A 1st sr. bonds Ser. A, 9.50%, 4/1/19			654,000	728,436
TransCanada PipeLines, Ltd. sr. unsec. notes 1.625%, 11/9/17 (Canada)			1,000,000	1,000,369
				3,171,604
Total corporate bonds and notes (cost $78,315,063)				$79,135,797
MORTGAGE-BACKED SECURITIES (24.5%)(a)
			Principal amount	Value
Agency collateralized mortgage obligations (3.2%)
Federal Home Loan Mortgage Corporation
IFB Ser. 2976, Class LC, 19.926%, 5/15/35			$19,491	$28,671
Ser. 3724, Class CM, 5.50%, 6/15/37			42,786	47,646
Ser. 2533, Class HB, 5.50%, 12/15/17			2,248	2,261
Ser. 2513, Class DB, 5.00%, 10/15/17			1,370	1,372
Ser. 3539, Class PM, 4.50%, 5/15/37			20,841	21,826
Structured Agency Credit Risk Debt FRN Ser. 14-HQ3, Class M2, IO, 3.882%, 10/25/24			53,686	53,997
Structured Agency Credit Risk Debt FRN Ser. 15-DNA2, Class M2, 3.832%, 12/25/27			198,682	203,963
Structured Agency Credit Risk Debt FRN Ser. 14-DN3, Class M2, 3.632%, 8/25/24			14,369	14,387
Ser. 3805, Class AK, 3.50%, 4/15/24			2,907	2,906
Structured Agency Credit Risk Debt FRN Ser. 16-DNA2, Class M2, 3.432%, 10/25/28			381,000	388,552
Structured Agency Credit Risk Debt FRN Ser. 15-HQ1, Class M2, 3.432%, 3/25/25			141,394	143,056
Ser. 3876, Class CA, 2.75%, 6/15/26			17,961	18,046
Structured Agency Credit Risk Debt FRN Ser. 16-DNA3, Class M1, 2.332%, 12/25/28			261,316	262,218
Ser. 3609, Class LK, 2.00%, 12/15/24			127,552	127,503
FRB Ser. 8, Class A9, IO, 0.441%, 11/15/28			97,370	1,339
FRB Ser. 59, Class 1AX, IO, 0.272%, 10/25/43			257,338	2,523
Ser. 48, Class A2, IO, 0.212%, 7/25/33			389,714	2,862
Ser. 3835, Class FO, PO, zero %, 4/15/41			1,263,051	1,092,635
Federal National Mortgage Association
IFB Ser. 05-75, Class GS, 16.553%, 8/25/35			127,102	166,059
IFB Ser. 11-4, Class CS, 10.436%, 5/25/40			179,488	207,222
Ser. 05-68, Class PC, 5.50%, 7/25/35			21,077	21,896
IFB Ser. 12-36, Class SN, IO, 5.218%, 4/25/42			1,450,909	261,889
Ser. 09-100, Class PA, 4.50%, 4/25/39			4,673	4,709
Ser. 11-60, Class PA, 4.00%, 10/25/39			23,235	23,990
Ser. 03-43, Class YA, 4.00%, 3/25/33			186,930	189,025
Ser. 04-2, Class QL, 4.00%, 2/25/19			33,452	33,813
Ser. 10-155, Class A, 3.50%, 9/25/25			18,288	18,579
Connecticut Avenue Securities FRB Ser. 16-C05, Class 2M1, 2.582%, 1/25/29			197,090	198,704
Ser. 10-81, Class AP, 2.50%, 7/25/40			76,587	76,698
Ser. 98-W2, Class X, IO, 0.059%, 6/25/28			622,865	30,365
Ser. 98-W5, Class X, IO, 0.048%, 7/25/28			191,597	9,340
Government National Mortgage Association
Ser. 14-163, Class NI, IO, 5.00%, 2/20/44			738,328	137,393
IFB Ser. 14-20, Class SQ, IO, 4.872%, 7/20/43			3,895,720	591,663
Ser. 13-20, Class QI, IO, 4.50%, 12/16/42			4,401,884	749,264
Ser. 09-32, Class AB, 4.00%, 5/16/39			24,476	25,974
Ser. 13-23, Class IK, IO, 3.00%, 9/20/37			10,004,652	1,041,824
Ser. 10-151, Class KO, PO, zero %, 6/16/37			142,845	121,764
GSMPS Mortgage Loan Trust 144A
FRB Ser. 98-2, IO, 1.004%, 5/19/27			17,829	—
FRB Ser. 99-2, IO, 0.84%, 9/19/27			49,360	432
FRB Ser. 98-3, IO, zero %, 9/19/27			22,696	—
FRB Ser. 98-4, IO, zero %, 12/19/26			34,875	—
				6,326,366
Commercial mortgage-backed securities (16.3%)
Banc of America Commercial Mortgage Trust
Ser. 06-4, Class AJ, 5.695%, 7/10/46			33,368	33,618
FRB Ser. 07-3, Class AJ, 5.676%, 6/10/49			8,353	8,353
FRB Ser. 07-1, Class XW, IO, 0.221%, 1/15/49			236,491	1,020
Banc of America Merrill Lynch Commercial Mortgage, Inc. 144A FRB Ser. 04-4, Class XC, IO, 0.024%, 7/10/42			33,617	15
Bear Stearns Commercial Mortgage Securities Trust FRB Ser. 07-T26, Class AJ, 5.535%, 1/12/45			701,000	686,980
Bear Stearns Commercial Mortgage Securities Trust 144A FRB Ser. 06-PW11, Class B, 5.302%, 3/11/39			705,739	549,968
CFCRE Commercial Mortgage Trust 144A FRB Ser. 11-C2, Class D, 5.753%, 12/15/47			507,000	507,796
Citigroup Commercial Mortgage Trust Ser. 14-GC21, Class AS, 4.026%, 5/10/47			486,000	507,068
COBALT CMBS Commercial Mortgage Trust FRB Ser. 07-C3, Class AJ, 5.891%, 5/15/46			472,989	476,871
COMM Mortgage Pass-Through Certificates FRB Ser. 14-CR14, Class XA, IO, 0.816%, 2/10/47			9,945,229	298,755
COMM Mortgage Trust
FRB Ser. 12-LC4, Class C, 5.589%, 12/10/44			522,000	567,101
FRB Ser. 14-CR18, Class C, 4.735%, 7/15/47			306,000	311,569
FRB Ser. 14-CR17, Class C, 4.735%, 5/10/47			577,000	569,338
FRB Ser. 14-LC15, Class XA, IO, 1.34%, 4/10/47			12,246,176	663,143
FRB Ser. 13-LC13, Class XA, IO, 1.328%, 8/10/46			9,203,214	389,480
FRB Ser. 14-CR17, Class XA, IO, 1.143%, 5/10/47			6,159,094	308,571
Credit Suisse Commercial Mortgage Trust 144A FRB Ser. 08-C1, Class AJ, 6.31%, 2/15/41			500,000	362,500
Credit Suisse First Boston Mortgage Securities Corp. 144A
Ser. 98-C1, Class F, 6.00%, 5/17/40			58,114	58,713
FRB Ser. 03-C3, Class AX, IO, 2.044%, 5/15/38			277,333	1
DBUBS Mortgage Trust 144A FRB Ser. 11-LC3A, Class D, 5.346%, 8/10/44			958,000	997,565
GE Capital Commercial Mortgage Corp. FRB Ser. 05-C1, Class D, 4.412%, 6/10/48			777,277	788,027
GE Capital Commercial Mortgage Corp. 144A FRB Ser. 05-C3, Class XC, IO, 0.073%, 7/10/45			779,187	8
GS Mortgage Securities Corp. II FRB Ser. 13-GC10, Class XA, IO, 1.582%, 2/10/46			4,715,365	305,084
GS Mortgage Securities Corp. II 144A FRB Ser. 13-GC10, Class D, 4.41%, 2/10/46			521,000	503,911
GS Mortgage Securities Trust
FRB Ser. 14-GC18, Class C, 4.945%, 1/10/47			686,000	716,225
FRB Ser. 14-GC22, Class C, 4.646%, 6/10/47			293,000	303,100
FRB Ser. 13-GC12, Class C, 4.179%, 6/10/46			88,000	87,498
FRB Ser. 13-GC12, Class XA, IO, 1.547%, 6/10/46			4,540,603	280,609
FRB Ser. 14-GC24, Class XA, IO, 0.846%, 9/10/47			3,079,043	132,242
GS Mortgage Securities Trust 144A
FRB Ser. 12-GC6, Class D, 5.652%, 1/10/45			389,000	377,719
FRB Ser. 11-GC5, Class D, 5.399%, 8/10/44			319,000	304,745
FRB Ser. 14-GC18, Class D, 4.945%, 1/10/47			295,000	251,909
FRB Ser. 13-GC12, Class D, 4.446%, 6/10/46			890,000	793,079
JP Morgan Chase Commercial Mortgage Securities Trust 144A FRB Ser. 12-C8, Class C, 4.604%, 10/15/45			262,000	271,049
JPMBB Commercial Mortgage Securities Trust
FRB Ser. 14-C19, Class C, 4.665%, 4/15/47			378,000	383,515
Ser. 13-C17, Class AS, 4.458%, 1/15/47			241,000	259,678
FRB Ser. 14-C25, Class C, 4.447%, 11/15/47			721,000	718,225
FRB Ser. 14-C22, Class XA, IO, 0.933%, 9/15/47			6,602,266	327,748
JPMorgan Chase Commercial Mortgage Securities Corp. 144A FRB Ser. 12-LC9, Class D, 4.384%, 12/15/47			173,000	176,996
JPMorgan Chase Commercial Mortgage Securities Trust
FRB Ser. 07-CB20, Class AJ, 6.21%, 2/12/51			10,538	10,617
FRB Ser. 05-LDP5, Class F, 5.674%, 12/15/44			347,614	345,646
FRB Ser. 05-CB11, Class C, 5.519%, 8/12/37			500,000	507,750
Ser. 04-LN2, Class A2, 5.115%, 7/15/41			5,375	5,391
FRB Ser. 13-C10, Class XA, IO, 1.123%, 12/15/47			12,010,130	558,291
JPMorgan Chase Commercial Mortgage Securities Trust 144A
FRB Ser. 11-C3, Class E, 5.614%, 2/15/46			645,000	644,871
FRB Ser. 12-C6, Class E, 5.136%, 5/15/45			898,000	815,474
LB-UBS Commercial Mortgage Trust
FRB Ser. 06-C6, Class B, 5.472%, 9/15/39 (In default)(NON)			527,000	50,065
FRB Ser. 06-C6, Class AJ, 5.452%, 9/15/39			269,549	215,639
FRB Ser. 07-C2, Class XW, IO, 0.263%, 2/15/40			92,824	12
LSTAR Commercial Mortgage Trust 144A
FRB Ser. 15-3, Class B, 3.198%, 4/20/48			1,713,000	1,632,403
FRB Ser. 15-3, Class C, 3.198%, 4/20/48			338,000	299,015
Merrill Lynch Mortgage Trust Ser. 04-KEY2, Class D, 5.046%, 8/12/39			264,644	261,941
Merrill Lynch Mortgage Trust 144A FRB Ser. 05-MCP1, Class XC, IO, 0.005%, 6/12/43			1,895,511	6
ML-CFC Commercial Mortgage Trust 144A FRB Ser. 06-4, Class XC, IO, 0.634%, 12/12/49			1,914,876	14,362
Morgan Stanley Bank of America Merrill Lynch Trust
Ser. 12-C5, Class AS, 3.792%, 8/15/45			388,000	405,382
FRB Ser. 13-C7, Class XA, IO, 1.484%, 2/15/46			13,153,778	748,450
FRB Ser. 14-C17, Class XA, IO, 1.243%, 8/15/47			8,614,194	440,788
Morgan Stanley Bank of America Merrill Lynch Trust 144A FRB Ser. 13-C7, Class XB, IO, 0.348%, 2/15/46			24,165,000	423,854
Morgan Stanley Capital I Trust Ser. 07-HQ11, Class AJ, 5.508%, 2/12/44			218,191	217,100
Morgan Stanley Capital I Trust 144A
FRB Ser. 11-C3, Class E, 5.155%, 7/15/49			301,000	302,367
FRB Ser. 12-C4, Class XA, IO, 2.099%, 3/15/45			3,721,635	287,615
UBS-Barclays Commercial Mortgage Trust 144A
FRB Ser. 12-C3, Class C, 5.04%, 8/10/49			300,000	316,560
FRB Ser. 12-C2, Class D, 4.898%, 5/10/63			279,000	279,753
FRB Ser. 12-C4, Class XA, IO, 1.738%, 12/10/45			5,169,529	348,420
FRB Ser. 12-C2, Class XA, IO, 1.383%, 5/10/63			15,837,249	839,111
Wachovia Bank Commercial Mortgage Trust
FRB Ser. 05-C21, Class D, 5.291%, 10/15/44			240,000	239,199
FRB Ser. 06-C29, IO, 0.323%, 11/15/48			3,365,112	135
Wachovia Bank Commercial Mortgage Trust 144A FRB Ser. 07-C31, IO, 0.177%, 4/15/47			15,589,961	2,436
Wells Fargo Commercial Mortgage Trust
FRB Ser. 13-LC12, Class C, 4.295%, 7/15/46			898,000	919,372
Ser. 12-LC5, Class AS, 3.539%, 10/15/45			535,000	553,939
Wells Fargo Commercial Mortgage Trust 144A FRB Ser. 13-LC12, Class D, 4.295%, 7/15/46			964,000	899,131
WF-RBS Commercial Mortgage Trust
Ser. 14-C19, Class C, 4.646%, 3/15/47			212,000	220,162
FRB Ser. 12-C10, Class C, 4.391%, 12/15/45			544,000	537,482
Ser. 13-C18, Class AS, 4.387%, 12/15/46			491,000	529,843
Ser. 13-UBS1, Class AS, 4.306%, 3/15/46			319,000	341,202
Ser. 13-C12, Class AS, 3.56%, 3/15/48			395,000	407,411
Ser. 13-C11, Class AS, 3.311%, 3/15/45			224,000	228,130
WF-RBS Commercial Mortgage Trust 144A
FRB Ser. 11-C5, Class E, 5.672%, 11/15/44			517,000	531,062
FRB Ser. 11-C2, Class D, 5.602%, 2/15/44			269,000	272,228
Ser. 11-C4, Class D, 5.265s, 6/15/44			1,217,000	1,216,562
Ser. 11-C4, Class E, 5.265%, 6/15/44			285,000	275,367
FRB Ser. 13-C15, Class D, 4.479%, 8/15/46			662,000	574,617
FRB Ser. 13-C12, Class XA, IO, 1.369%, 3/15/48			1,285,553	63,622
				32,062,575
Residential mortgage-backed securities (non-agency) (5.0%)
BCAP, LLC Trust 144A FRB Ser. 14-RR1, Class 2A2, 2.882%, 1/26/36			500,000	437,454
Citigroup Mortgage Loan Trust, Inc. FRB Ser. 05-2, Class 1A2A, 3.166%, 5/25/35			536,562	547,293
Countrywide Alternative Loan Trust
FRB Ser. 06-OA7, Class 1A2, 1.716%, 6/25/46			2,118,183	2,006,131
FRB Ser. 05-59, Class 1A1, 1.558%, 11/20/35			607,409	553,599
FRB Ser. 06-OA10, Class 4A1, 1.422%, 8/25/46			2,276,743	2,110,996
Countrywide Home Loans Mortgage Pass-Through Trust FRB Ser. 05-3, Class 1A1, 1.852%, 4/25/35			241,798	200,337
Federal National Mortgage Association
Connecticut Avenue Securities FRB Ser. 16-C03, Class 2M2, 7.132%, 10/25/28			467,620	551,818
Connecticut Avenue Securities FRB Ser. 15-C04, Class 1M2, 6.932%, 4/25/28			155,110	177,864
Connecticut Avenue Securities FRB Ser. 15-C04, Class 2M2, 6.782%, 4/25/28			60,000	67,646
Connecticut Avenue Securities FRB Ser. 15-C03, Class 2M2, 6.232%, 7/25/25			10,000	11,045
Connecticut Avenue Securities FRB Ser. 16-C06, Class 1M2, 5.482%, 4/25/29			20,000	22,437
GSAA Home Equity Trust FRB Ser. 06-8, Class 2A2, 1.412%, 5/25/36(F)			673,674	352,716
Merrill Lynch Mortgage Investors Trust FRB Ser. 05-A2, Class A2, 2.976%, 2/25/35			171,916	172,990
Morgan Stanley Resecuritization Trust 144A Ser. 15-R4, Class CB1, 0.598%, 8/26/47			1,265,000	1,043,625
Structured Asset Securities Corp. Mortgage Loan Trust FRB Ser. 06-AM1, Class A4, 1.392%, 4/25/36			246,146	242,203
Vericrest Opportunity Loan Transfer LXI, LLC 144A Ser. 17-NPL8, Class A1, 3.125%, 6/25/47			275,358	275,316
WaMu Mortgage Pass-Through Certificates Trust FRB Ser. 05-AR17, Class A1B2, 1.642%, 12/25/45			1,053,668	1,000,984
				9,774,454
Total mortgage-backed securities (cost $48,483,987)				$48,163,395
U.S. GOVERNMENT AND AGENCY MORTGAGE OBLIGATIONS (8.4%)(a)
			Principal amount	Value
U.S. Government Agency Mortgage Obligations (8.4%)
Federal Home Loan Mortgage Corporation 4.50%, 10/1/18			$4,655	$4,696
Federal Home Loan Mortgage Corporation Pass-Through Certificates
6.00%, 9/1/17			4,943	4,948
4.50%, 8/1/18			3,880	3,927
Federal National Mortgage Association Pass-Through Certificates
6.00%, with due dates from 9/1/18 to 9/1/19			8,541	8,680
4.50%, TBA, 9/1/47			2,000,000	2,145,078
4.50%, TBA, 8/1/47			2,000,000	2,147,188
3.50%, 6/1/56			968,209	1,000,243
3.50%, TBA, 9/1/47			2,000,000	2,055,781
3.50%, TBA, 8/1/47			4,000,000	4,118,125
3.00%, TBA, 8/1/47			3,000,000	3,004,922
2.50%, TBA, 9/1/47			1,000,000	965,469
2.50%, TBA, 8/1/47			1,000,000	966,641
				16,425,698
Total U.S. government and agency mortgage obligations (cost $16,381,394)				$16,425,698
U.S. TREASURY OBLIGATIONS (—%)(a)
			Principal amount	Value
U.S. Treasury Notes 2.00%, 9/30/20(SEGSF)			$58,000	$58,798
Total U.S. treasury obligations (cost $57,983)				$58,798
FOREIGN GOVERNMENT AND AGENCY BONDS AND NOTES (2.9%)(a)
			Principal amount/units	Value
Argentina (Republic of) sr. unsec. unsub. bonds 7.625%, 4/22/46 (Argentina)			$215,000	$221,020
Argentina (Republic of) sr. unsec. unsub. notes 6.875%, 1/26/27 (Argentina)			570,000	585,960
Cordoba (Province of) 144A sr. unsec. unsub. notes 7.125%, 6/10/21 (Argentina)			380,000	397,142
Indonesia (Republic of) 144A sr. unsec. notes 4.75%, 1/8/26 (Indonesia)			600,000	647,250
Indonesia (Republic of) 144A sr. unsec. unsub. notes 5.95%, 1/8/46 (Indonesia)			300,000	361,500
United Mexican States sr. unsec. unsub. notes 4.15%, 3/28/27 (Mexico)			315,000	328,685
Russia (Federation of) 144A sr. unsec. unsub. bonds 12.75%, 6/24/28 (Russia)			750,000	1,317,188
Russia (Federation of) 144A sr. unsec. unsub. bonds 5.625%, 4/4/42 (Russia)			1,600,000	1,742,000
Turkey (Republic of) unsec. notes 11.00%, 3/2/22 (Turkey)		TRY	479,000	138,078
Total foreign government and agency bonds and notes (cost $5,462,057)				$5,738,823
ASSET-BACKED SECURITIES (1.4%)(a)
			Principal amount	Value
Mortgage Repurchase Agreement Financing Trust 144A
FRB Ser. 16-2, Class A, 2.524%, 3/10/19			$112,000	$112,000
FRB Ser. 16-4, Class A1, 2.424%, 5/10/19			138,000	138,000
FRB Ser. 16-5, Class A, 2.394%, 6/10/19			1,598,000	1,598,000
Station Place Securitization Trust 144A FRB Ser. 17-1, Class A, 2.132%, 2/25/49			923,333	923,333
Total asset-backed securities (cost $2,771,373)				$2,771,333
PURCHASED SWAP OPTIONS OUTSTANDING (0.1%)(a)
Counterparty
Fixed right % to receive or (pay)/	Expiration		Contract
Floating rate index/Maturity date	date/strike		amount	Value
Bank of America N.A.
(2.214)/3 month USD-LIBOR-BBA/Aug-19	Aug-17/2.214		$3,615,000	$4
Barclays Bank PLC
1.47/3 month USD-LIBOR-BBA/Aug-18	Aug-17/1.47		4,338,000	824
Citibank, N.A.
(2.518)/3 month USD-LIBOR-BBA/May-49	May-19/2.518		318,100	28,766
2.25/3 month USD-LIBOR-BBA/Sep-27	Sep-17/2.25		2,892,000	19,174
(2.57)/3 month USD-LIBOR-BBA/Nov-22	Nov-17/2.57		1,446,000	12,624
1.975/3 month USD-LIBOR-BBA/Nov-22	Nov-17/1.975		1,446,000	9,182
(1.975)/3 month USD-LIBOR-BBA/Nov-22	Nov-17/1.975		1,446,000	8,850
1.6125/3 month USD-LIBOR-BBA/Aug-18	Aug-17/1.6125		5,784,000	8,271
(1.896)/3 month USD-LIBOR-BBA/Dec-22	Dec-17/1.896		928,000	8,148
2.57/3 month USD-LIBOR-BBA/Nov-22	Nov-17/2.57		1,446,000	7,852
2.235/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.235		2,169,000	6,681
1.896/3 month USD-LIBOR-BBA/Dec-22	Dec-17/1.896		928,000	4,510
2.02/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.02		2,169,000	1,019
Credit Suisse International
2.2275/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.2275		2,169,000	10,737
2.3724/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.3724		728,500	8,669
2.8472/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.8472		728,500	2,768
Goldman Sachs International
2.20/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.20		7,690,000	27,144
(2.33)/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.33		2,169,000	7,201
2.525/3 month USD-LIBOR-BBA/Aug-37	Aug-17/2.525		723,000	6,384
2.015/3 month USD-LIBOR-BBA/Oct-27	Oct-17/2.015		1,982,000	5,847
(1.83)/3 month USD-LIBOR-BBA/Sep-22	Sep-17/1.83		879,000	5,177
1.796/3 month USD-LIBOR-BBA/Oct-18	Oct-17/1.796		4,338,000	4,685
1.83/3 month USD-LIBOR-BBA/Sep-22	Sep-17/1.83		879,000	1,231
(2.5975)/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.5975		4,338,000	824
1.296/3 month USD-LIBOR-BBA/Oct-18	Oct-17/1.296		8,676,000	260
(2.234)/3 month USD-LIBOR-BBA/Aug-19	Aug-17/2.234		3,615,000	4
JPMorgan Chase Bank N.A.
1.585/3 month USD-LIBOR-BBA/Oct-18	Oct-17/1.585		4,338,000	3,731
(2.81025)/3 month USD-LIBOR-BBA/Oct-27	Oct-17/2.81025		2,892,000	1,388
1.479/3 month USD-LIBOR-BBA/Aug-18	Aug-17/1.479		4,338,000	998
(1.585)/3 month USD-LIBOR-BBA/Oct-18	Oct-17/1.585		4,338,000	824
1.9685/3 month USD-LIBOR-BBA/Aug-27	Aug-17/1.9685		1,321,000	304
Total purchased swap options outstanding (cost $300,939)				$204,081
PURCHASED OPTIONS OUTSTANDING (—%)(a)
	Expiration		Contract
	date/strike price		amount	Value
Federal National Mortgage Association 30 yr 3.00% TBA commitments (Put)	Sep-17/$100.05		$8,000,000	$38,592
Total purchased options outstanding (cost $42,500)				$38,592
SHORT-TERM INVESTMENTS (30.5%)(a)
			Principal amount/shares	Value
Aegon NV 144A commercial paper 1.454%, 9/19/17			$1,000,000	$997,954
Agrium, Inc. commercial paper 1.544%, 9/27/17			1,000,000	997,617
Amcor, Ltd./Australia commercial paper 1.443%, 9/28/17			1,000,000	997,576
Ameren Corp. commercial paper 1.381%, 8/8/17			1,000,000	999,686
Amphenol Corp. commercial paper 1.400%, 8/2/17			1,000,000	999,923
Anthem, Inc. 144A commercial paper 1.382%, 8/17/17			1,000,000	999,333
Assa Abloy Financial Services AB commercial paper 1.505%, 9/28/17			1,000,000	997,594
Autonation, Inc. commercial paper 1.600%, 8/1/17			1,000,000	999,953
BASF SE commercial paper 1.243%, 9/25/17			1,000,000	998,231
Berkshire Hathaway Energy Co. commercial paper 1.323%, 8/9/17			1,000,000	999,652
Cabot Corp. commercial paper 1.401%, 8/11/17			1,000,000	999,565
Caterpillar Financial Services Corp. commercial paper 1.363%, 8/15/17			1,000,000	999,454
Deutsche Telekom AG 144A commercial paper 1.403%, 8/30/17			1,000,000	998,725
Duke Energy Corp. commercial paper 1.402%, 8/9/17			1,000,000	999,646
E. I. du Pont de Nemours & Co. commercial paper 1.402%, 8/14/17			969,000	968,473
Energy Transfer Partners LP commercial paper 1.750%, 8/1/17			1,000,000	999,953
Entergy Corp. commercial paper 1.421%, 8/22/17			1,000,000	999,011
Enterprise Products Operating, LLC commercial paper 1.402%, 8/16/17			1,000,000	999,360
ERP Operating LP commercial paper 1.370%, 8/4/17			1,000,000	999,845
Humana, Inc. commercial paper 1.472%, 8/14/17			1,000,000	999,374
Interpublic Group of Cos., Inc. (The) commercial paper 1.432%, 8/16/17			1,000,000	999,374
Intesa Funding, LLC commercial paper 1.504%, 8/8/17			1,000,000	999,644
Kansas City Southern commercial paper 1.702%, 8/7/17			1,000,000	999,669
KCP&L Greater Missouri Operations Co. commercial paper 1.385%, 8/1/17			2,000,000	1,999,923
McCormick & Co., Inc./MD commercial paper 1.342%, 8/31/17			1,400,000	1,398,275
National Grid USA commercial paper 1.403%, 9/20/17			1,000,000	997,912
Nationwide Building Society 144A commercial paper 1.154%, 8/2/17			750,000	749,944
NextEra Energy Capital Holdings, Inc. commercial paper 1.504%, 9/18/17			1,000,000	997,995
Omnicom Capital, Inc. commercial paper 1.462%, 8/7/17			1,000,000	999,726
Putnam Short Term Investment Fund 1.15%(AFF)		Shares	17,896,479	17,896,479
Rogers Communications, Inc. commercial paper 1.432%, 8/10/17			$1,000,000	999,605
Sempra Global commercial paper 1.425%, 8/3/17			1,000,000	999,884
Sheffield Receivables Co. LLC asset backed commercial paper 1.304%, 9/29/17			640,000	638,613
Southern Company Gas Capital Corp. commercial paper 1.441%, 8/9/17			1,000,000	999,646
Suncor Energy, Inc. commercial paper 1.453%, 9/12/17			1,000,000	998,245
Tyco International Holding SA commercial paper 1.400%, 8/2/17			1,000,000	999,923
U.S. Treasury Bills 0.891%, 8/10/17(SEGSF)			102,000	101,976
U.S. Treasury Bills 0.925%, 8/3/17			50,000	49,997
U.S. Treasury Bills 0.940%, 8/24/17(SEGCCS)			91,000	90,943
U.S. Treasury Bills 0.974%, 8/17/17(SEGSF)(SEGCCS)			2,952,000	2,950,725
UnitedHealth Group, Inc. commercial paper 1.271%, 8/9/17			1,000,000	999,650
Whirlpool Corp. commercial paper 1.353%, 8/7/17			1,000,000	999,726
WPP CP Finance PLC commercial paper 1.502%, 8/21/17			1,000,000	999,155
Total short-term investments (cost $59,819,844)				$59,817,954
TOTAL INVESTMENTS
Total investments (cost $211,635,140)(b)				$212,354,471

FORWARD CURRENCY CONTRACTS at 7/31/17 (aggregate face value $136,022) (Unaudited)
		Contract	Delivery		Aggregate	Unrealized
Counterparty	Currency	type	date	Value	face value	depreciation
Royal Bank of Scotland PLC (The)
	Turkish Lira	Sell	9/20/17	$139,045	$136,022	$(3,023)
Total						$(3,023)

WRITTEN SWAP OPTIONS OUTSTANDING at 7/31/17 (premiums $3,209,418) (Unaudited)
Counterparty
Fixed Obligation % to receive or (pay)/	Expiration	Contract
Floating rate index/Maturity date	date/strike	amount	Value
Bank of America N.A.
2.404/3 month USD-LIBOR-BBA/Aug-19	Aug-17/2.404	$7,230,000	$7
Barclays Bank PLC
(1.8295)/3 month USD-LIBOR-BBA/Aug-18	Aug-17/1.8295	4,338,000	824
Citibank, N.A.
2.551/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.551	4,338,000	43
2.5225/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.5225	2,169,000	694
(1.642)/3 month USD-LIBOR-BBA/Dec-19	Dec-17/1.642	2,892,000	4,425
(2.0625)/3 month USD-LIBOR-BBA/Aug-18	Aug-17/2.0625	5,784,000	6,709
1.642/3 month USD-LIBOR-BBA/Dec-19	Dec-17/1.642	2,892,000	7,230
(2.257)/3 month USD-LIBOR-BBA/Nov-27	Nov-17/2.257	1,446,000	16,311
2.257/3 month USD-LIBOR-BBA/Nov-27	Nov-17/2.257	1,446,000	20,822
2.208/3 month USD-LIBOR-BBA/May-24	May-19/2.208	1,446,000	26,534
Credit Suisse International
2.4475/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.4475	2,169,000	2,494
(2.0385)/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.0385	4,338,000	3,514
(2.5816)/3 month USD-LIBOR-BBA/Aug-37	Aug-17/2.5816	728,500	10,782
Goldman Sachs International
2.419/3 month USD-LIBOR-BBA/Aug-19	Aug-17/2.419	7,230,000	7
(1.563)/3 month USD-LIBOR-BBA/Sep-19	Sep-17/1.563	2,892,000	1,215
(2.805)/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.805	723,000	1,779
2.62/3 month USD-LIBOR-BBA/Oct-27	Oct-17/2.62	1,982,000	3,944
1.563/3 month USD-LIBOR-BBA/Sep-19	Sep-17/1.563	2,892,000	4,598
(1.619)/3 month USD-LIBOR-BBA/Oct-18	Oct-17/1.619	13,014,000	5,206
(2.31)/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.31	723,000	5,408
2.46/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.46	6,507,000	5,986
(2.3025)/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.3025	3,845,000	31,339
JPMorgan Chase Bank N.A.
2.5385/3 month USD-LIBOR-BBA/Aug-27	Aug-17/2.5385	1,321,000	343
1.993/3 month USD-LIBOR-BBA/Oct-20	Oct-17/1.993	1,446,000	593
(1.98)/3 month USD-LIBOR-BBA/Aug-18	Aug-17/1.98	4,338,000	607
2.534/3 month USD-LIBOR-BBA/Oct-27	Oct-17/2.534	1,446,000	3,861
(1.783)/3 month USD-LIBOR-BBA/Oct-20	Oct-17/1.783	1,446,000	4,005
(6.00 Floor)/3 month USD-LIBOR-BBA/Mar-18	Mar-18/6.00	16,499,000	582,415
Total			$751,695

WRITTEN OPTIONS OUTSTANDING at 7/31/17 (premiums $42,500) (Unaudited)
	Expiration	Contract
	date/strike price	amount	Value
Federal National Mortgage Association 30 yr 3.00% TBA commitments (Put)	Sep-17/$99.61	$8,000,000	$23,960
Federal National Mortgage Association 30 yr 3.00% TBA commitments (Put)	Sep-17/99.17	8,000,000	14,072
Total			$38,032

FORWARD PREMIUM SWAP OPTION CONTRACTS OUTSTANDING at 7/31/17 (Unaudited)
Counterparty			Premium	Unrealized
Fixed right or obligation % to receive or (pay)/	Expiration	Contract	receivable/	appreciation/
Floating rate index/Maturity date	date/strike	amount	(payable)	(depreciation)
Bank of America N.A.
(2.647)/3 month USD-LIBOR-BBA/Jun-29 (Purchased)	Jun-24/2.647	$723,000	$(28,269)	$1,178
2.5925/3 month USD-LIBOR-BBA/Jan-27 (Purchased)	Jan-19/2.5925	433,800	(15,291)	35
2.785/3 month USD-LIBOR-BBA/Jan-47 (Purchased)	Jan-27/2.785	433,800	(46,547)	(130)
(2.203)/3 month USD-LIBOR-BBA/Jun-24 (Purchased)	Jun-19/2.203	723,000	(14,460)	(470)
(2.785)/3 month USD-LIBOR-BBA/Jan-47 (Purchased)	Jan-27/2.785	433,800	(46,547)	(1,093)
2.203/3 month USD-LIBOR-BBA/Jun-24 (Purchased)	Jun-19/2.203	723,000	(14,460)	(1,685)
2.647/3 month USD-LIBOR-BBA/Jun-29 (Purchased)	Jun-24/2.647	723,000	(28,269)	(1,887)
(2.5925)/3 month USD-LIBOR-BBA/Jan-27 (Purchased)	Jan-19/2.5925	433,800	(15,291)	(7,366)
2.7175/3 month USD-LIBOR-BBA/Jan-47 (Written)	Jan-19/2.7175	433,800	39,194	13,448
(2.7175)/3 month USD-LIBOR-BBA/Jan-47 (Written)	Jan-19/2.7175	433,800	39,194	4,997
(2.413)/3 month USD-LIBOR-BBA/Jun-29 (Written)	Jun-19/2.413	723,000	27,799	3,955
2.413/3 month USD-LIBOR-BBA/Jun-29 (Written)	Jun-19/2.413	723,000	27,799	(318)
Barclays Bank PLC
2.43/3 month USD-LIBOR-BBA/Feb-22 (Purchased)	Feb-19/2.43	433,800	(6,052)	1,098
(2.205)/3 month USD-LIBOR-BBA/Jun-24 (Purchased)	Jun-19/2.205	723,000	(14,460)	(499)
2.205/3 month USD-LIBOR-BBA/Jun-24 (Purchased)	Jun-19/2.205	723,000	(14,460)	(1,656)
(2.43)/3 month USD-LIBOR-BBA/Feb-22 (Purchased)	Feb-19/2.43	433,800	(6,052)	(3,783)
Citibank, N.A.
(2.654)/3 month USD-LIBOR-BBA/Jun-29 (Purchased)	Jun-24/2.654	723,000	(28,269)	1,070
2.654/3 month USD-LIBOR-BBA/Jun-29 (Purchased)	Jun-24/2.654	723,000	(28,269)	(1,786)
(2.42)/3 month USD-LIBOR-BBA/Jun-29 (Written)	Jun-19/2.42	723,000	27,836	3,774
2.42/3 month USD-LIBOR-BBA/Jun-29 (Written)	Jun-19/2.42	723,000	27,691	(188)
Goldman Sachs International
2.8175/3 month USD-LIBOR-BBA/Mar-47 (Purchased)	Mar-27/2.8175	86,800	(10,959)	223
1.995/3 month USD-LIBOR-BBA/Oct-27 (Purchased)	Oct-17/1.995	1,982,000	(5,351)	12
(2.8175)/3 month USD-LIBOR-BBA/Mar-47 (Purchased)	Mar-27/2.8175	86,800	(10,959)	(345)
2.60/3 month USD-LIBOR-BBA/Oct-27 (Written)	Oct-17/2.60	1,982,000	5,351	630
JPMorgan Chase Bank N.A.
2.8325/3 month USD-LIBOR-BBA/Feb-52 (Purchased)	Feb-22/2.8325	433,800	(60,569)	1,197
1.9777/3 month USD-LIBOR-BBA/Sep-27 (Purchased)	Sep-17/1.9777	1,982,000	(2,722)	4
(2.8325)/3 month USD-LIBOR-BBA/Feb-52 (Purchased)	Feb-22/2.8325	433,800	(60,569)	(10,402)
2.79/3 month USD-LIBOR-BBA/Feb-49 (Written)	Feb-19/2.79	433,800	41,189	16,385
(2.79)/3 month USD-LIBOR-BBA/Feb-49 (Written)	Feb-19/2.79	433,800	41,189	833
2.5777/3 month USD-LIBOR-BBA/Sep-27 (Written)	Sep-17/2.5777	1,982,000	2,722	180
Total			$(177,861)	$17,411

TBA SALE COMMITMENTS OUTSTANDING at 7/31/17 (proceeds receivable $11,196,758) (Unaudited)
	Principal	Settlement
Agency	amount	date	Value
Federal National Mortgage Association, 4.50%, 8/1/47	$2,000,000	8/14/17	$2,147,188
Federal National Mortgage Association, 3.50%, 8/1/47	4,000,000	8/14/17	4,118,125
Federal National Mortgage Association, 3.00%, 9/1/47	1,000,000	9/13/17	1,000,156
Federal National Mortgage Association, 3.00%, 8/1/47	3,000,000	8/14/17	3,004,922
Federal National Mortgage Association, 2.50%, 8/1/47	1,000,000	8/14/17	966,640
Total			$11,237,031

	CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/17 (Unaudited)
				Upfront		Payments	Payments	Unrealized
				premium	Termination	made by	received by	appreciation/
	Notional amount			received (paid)	date	fund per annum	fund per annum	(depreciation)
		$32,320,500	(E)	$65,383	9/20/19	1.70%	3 month USD-LIBOR-BBA	$23,496
		1,446,000		3,885	7/12/27	3 month USD-LIBOR-BBA	2.291%	11,054
		2,169,000		(13,043)	7/18/27	2.124%	3 month USD-LIBOR-BBA	9,816
		4,338,000		12,956	7/18/27	3 month USD-LIBOR-BBA	2.204%	(1,043)
		723,000		4,618	7/25/27	3 month USD-LIBOR-BBA	2.132%	(2,681)
		587,000		(4,502)	7/25/47	2.488%	3 month USD-LIBOR-BBA	3,684
		7,802,300	(E)	40,473	9/20/27	2.20%	3 month USD-LIBOR-BBA	87,084
		38,849,600	(E)	81,646	9/20/22	1.90%	3 month USD-LIBOR-BBA	139,769
		1,021,500	(E)	10,770	9/20/47	2.45%	3 month USD-LIBOR-BBA	35,436
		1,668,500		(22)	6/27/27	2.15%	3 month USD-LIBOR-BBA	12,251
		723,000		2,902	7/13/27	3 month USD-LIBOR-BBA	2.18%	(877)
		3,320,000		(44)	6/30/27	2.1965%	3 month USD-LIBOR-BBA	10,370
		2,148,000		(8)	7/5/19	1.60431%	3 month USD-LIBOR-BBA	(1,153)
		2,148,000		(8)	7/5/19	1.6076%	3 month USD-LIBOR-BBA	(1,292)
		398,000		(5)	7/5/27	2.317%	3 month USD-LIBOR-BBA	(3,030)
		636,800		(8)	7/10/27	2.34267%	3 month USD-LIBOR-BBA	(6,209)
		636,800		(8)	7/10/27	2.34955%	3 month USD-LIBOR-BBA	(6,610)
		636,800		(8)	7/10/27	2.35263%	3 month USD-LIBOR-BBA	(6,789)
		384,500	(E)	(5)	8/7/27	2.3625%	3 month USD-LIBOR-BBA	(4,029)
		318,400		(4)	7/10/27	2.3575%	3 month USD-LIBOR-BBA	(3,536)
		410,000	(E)	(6)	8/9/27	2.3725%	3 month USD-LIBOR-BBA	(4,647)
		129,500		(2)	7/13/27	2.34524%	3 month USD-LIBOR-BBA	(1,281)
		129,500		(2)	7/13/27	2.34667%	3 month USD-LIBOR-BBA	(1,298)
		137,000		(2)	7/19/27	2.264%	3 month USD-LIBOR-BBA	(307)
		138,000		(2)	7/20/27	2.202%	3 month USD-LIBOR-BBA	479
		5,307,000		(70)	7/25/27	2.22113%	3 month USD-LIBOR-BBA	10,278
		901,000		(12)	7/25/27	2.20843%	3 month USD-LIBOR-BBA	2,792
		325,000	(E)	(5)	8/30/27	2.27%	3 month USD-LIBOR-BBA	(406)
		820,000	(E)	(11)	8/7/27	3 month USD-LIBOR-BBA	2.27%	1,643
		1,132,853	(E)	(15)	8/9/27	3 month USD-LIBOR-BBA	2.275%	2,726
		423,000	(E)	(6)	10/3/27	2.2777%	3 month USD-LIBOR-BBA	(347)
		581,000	(E)	(8)	11/2/27	2.295%	3 month USD-LIBOR-BBA	(744)
	Total			$204,827	$304,599
(E)	Extended effective date.

OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/17 (Unaudited)
		Upfront		Payments	Total return	Unrealized
Swap counterparty/		premium	Termination	received (paid) by	received by	appreciation/
Notional amount		received (paid)	date	fund per annum	or paid by fund	(depreciation)
Barclays Bank PLC
	$536,000	$—	7/3/22	(1.9225%)	USA Non Revised Consumer Price Index- Urban (CPI-U)	$161
	536,000	—	7/3/27	2.085%	USA Non Revised Consumer Price Index- Urban (CPI-U)	(777)
	616,000	—	7/5/22	(1.89%)	USA Non Revised Consumer Price Index- Urban (CPI-U)	1,238
	616,000	—	7/5/27	2.05%	USA Non Revised Consumer Price Index- Urban (CPI-U)	(3,093)
Total		$—	$(2,471)

	OTC CREDIT DEFAULT CONTRACTS OUTSTANDING at 7/31/17 (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)
	Bank of America N.A.
	CMBX NA BBB-.6 Index	BBB-/P	$2,939		$43,000	5/11/63	300 bp	$(1,912)
	CMBX NA BBB-.6 Index	BBB-/P	5,604		93,000	5/11/63	300 bp	(4,887)
	CMBX NA BBB-.6 Index	BBB-/P	11,483		186,000	5/11/63	300 bp	(9,501)
	CMBX NA BBB-.6 Index	BBB-/P	10,944		192,000	5/11/63	300 bp	(10,717)
	Credit Suisse International
	CMBX NA A.6 Index	A/P	4,549		145,000	5/11/63	200 bp	502
	CMBX NA A.6 Index	A/P	4,944		152,000	5/11/63	200 bp	701
	CMBX NA A.6 Index	A/P	33,255		632,000	5/11/63	200 bp	15,615
	CMBX NA BB.7 Index	—	(21,975)		1,245,000	5/11/63	(500 bp)	212,737
	CMBX NA BB.7 Index	—	(42,767)		260,000	1/17/47	(500 bp)	(2,277)
	CMBX NA BBB-.6 Index	BBB-/P	10,258		81,000	5/11/63	300 bp	1,120
	CMBX NA BBB-.6 Index	BBB-/P	28,753		272,000	5/11/63	300 bp	(1,933)
	CMBX NA BBB-.6 Index	BBB-/P	37,117		343,000	5/11/63	300 bp	(1,580)
	CMBX NA BBB-.6 Index	BBB-/P	142,418		1,332,000	5/11/63	300 bp	(7,853)
	CMBX NA BBB-.7 Index	BBB-/P	43,610		590,000	1/17/47	300 bp	(8,320)
	Goldman Sachs International
	CMBX NA BB.6 Index	—	(46,446)		454,000	5/11/63	(500 bp)	39,148
	CMBX NA BB.7 Index	—	(4,086)		27,000	1/17/47	(500 bp)	119
	CMBX NA A.6 Index	A/P	4,549		145,000	5/11/63	200 bp	502
	CMBX NA A.6 Index	A/P	6,612		217,000	5/11/63	200 bp	555
	CMBX NA A.6 Index	A/P	6,712		217,000	5/11/63	200 bp	655
	CMBX NA A.6 Index	A/P	35,368		695,000	5/11/63	200 bp	15,970
	CMBX NA A.7 Index	A/P	22,839		453,000	1/17/47	200 bp	15,722
	CMBX NA BB.7 Index	—	(15,401)		94,000	1/17/47	(500 bp)	(763)
	CMBX NA BB.7 Index	—	(5,685)		28,000	1/17/47	(500 bp)	(1,325)
	CMBX NA BBB-.6 Index	BBB-/P	1,773		34,000	5/11/63	300 bp	(2,062)
	CMBX NA BBB-.6 Index	BBB-/P	4,019		37,000	5/11/63	300 bp	(155)
	CMBX NA BBB-.6 Index	BBB-/P	4,003		37,000	5/11/63	300 bp	(171)
	CMBX NA BBB-.6 Index	BBB-/P	2,133		43,000	5/11/63	300 bp	(2,718)
	CMBX NA BBB-.6 Index	BBB-/P	2,096		43,000	5/11/63	300 bp	(2,755)
	CMBX NA BBB-.6 Index	BBB-/P	11,385		82,000	5/11/63	300 bp	2,134
	CMBX NA BBB-.6 Index	BBB-/P	17,320		358,000	5/11/63	300 bp	(23,068)
	CMBX NA BBB-.7 Index	—	(8,458)		104,000	1/17/47	(300 bp)	696
	CMBX NA BBB-.7 Index	—	(135)		2,000	1/17/47	(300 bp)	41
	CMBX NA BBB-.7 Index	—	(68)		1,000	1/17/47	(300 bp)	20
	CMBX NA BBB-.7 Index	—	(69)		1,000	1/17/47	(300 bp)	19
	JPMorgan Securities LLC
	CMBX NA A.6 Index	A/P	4,749		145,000	5/11/63	200 bp	702
	CMBX NA A.6 Index	A/P	11,255		342,000	5/11/63	200 bp	1,709
	CMBX NA A.6 Index	A/P	11,614		384,000	5/11/63	200 bp	896
	CMBX NA A.6 Index	A/P	25,971		537,000	5/11/63	200 bp	10,983
	CMBX NA BB.6 Index	—	(5,483)		39,000	5/11/63	(500 bp)	1,869
	CMBX NA BB.6 Index	—	(3,596)		25,000	5/11/63	(500 bp)	1,118
	CMBX NA BB.6 Index	—	(2,792)		21,000	5/11/63	(500 bp)	1,167
	CMBX NA BB.7 Index	—	(6,676)		39,000	1/17/47	(500 bp)	(603)
	CMBX NA BB.7 Index	—	(2,923)		18,000	1/17/47	(500 bp)	(120)
	CMBX NA BBB-.6 Index	BBB-/P	44		1,000	5/11/63	300 bp	(69)
	CMBX NA BBB-.6 Index	BBB-/P	4,875		39,000	5/11/63	300 bp	475
	CMBX NA BBB-.6 Index	BBB-/P	6,135		55,000	5/11/63	300 bp	(70)
	CMBX NA BBB-.6 Index	BBB-/P	14,268		98,000	5/11/63	300 bp	3,212
	CMBX NA BBB-.6 Index	BBB-/P	14,988		104,000	5/11/63	300 bp	3,255
	CMBX NA BBB-.6 Index	BBB-/P	12,113		109,000	5/11/63	300 bp	(184)
	CMBX NA BBB-.6 Index	BBB-/P	38,043		257,000	5/11/63	300 bp	9,049
	CMBX NA BBB-.6 Index	BBB-/P	38,043		257,000	5/11/63	300 bp	9,049
	CMBX NA BBB-.6 Index	BBB-/P	39,014		372,000	5/11/63	300 bp	(2,954)
	CMBX NA BBB-.6 Index	BBB-/P	41,013		523,000	5/11/63	300 bp	(17,990)
	CMBX NA BBB-.6 Index	BBB-/P	51,054		605,000	5/11/63	300 bp	(17,200)
	CMBX NA BBB-.7 Index	—	(25,881)		281,000	1/17/47	(300 bp)	(1,148)
	CMBX NA BBB-.7 Index	—	(9,318)		112,000	1/17/47	(300 bp)	540
	CMBX NA BBB-.7 Index	—	(6,803)		86,000	1/17/47	(300 bp)	767
	Total		$559,300	$228,712
*	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 July 31, 2017. Securities rated by Putnam are indicated by "/P." The Putnam rating categories are comparable to the Standard & Poor's classifications.

Key to holding's currency abbreviations
TRY	Turkish Lira
Key to holding's abbreviations
BKNT	Bank Note
bp	Basis Points
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 or yield at the close of the reporting period
GMTN	Global Medium Term Notes
IFB	Inverse Floating Rate Bonds, which are securities that pay interest rates that vary inversely to changes in the market interest rates. As interest rates rise, inverse floaters produce less current income. The rate shown is the current interest rate at the close of the reporting period.
IO	Interest Only
MTN	Medium Term Notes
PO	Principal Only
TBA	To Be Announced Commitments

	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 November 1, 2016 through July 31, 2017 (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 $196,408,413.
(b)	The aggregate identified cost on a tax basis is $211,997,211, resulting in gross unrealized appreciation and depreciation of $2,513,155 and $2,155,895, respectively, or net unrealized appreciation of $357,260.
(NON)	This security is non-income-producing.
(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 any company which is under common ownership or control were as follows:

Name of affiliate	Fair value as of 10/31/16	Purchase cost	Sale proceeds	Investment income	Shares outstanding and fair value as of 7/31/17
Short-term investments
Putnam Short Term Investment Fund*	$16,690,663	$219,033,465	$217,827,649	$129,156	$17,896,479
Total Short-term investments	$16,690,663	$219,033,465	$217,827,649	$129,156	$17,896,479

	* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.
(SEGSF)	This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative 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.
(F)	This security is valued by Putnam Management 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.
(R)	Real Estate Investment Trust.
	At the close of the reporting period, the fund maintained liquid assets totaling $14,690,596 to cover certain derivative contracts and delayed delivery securities.
	Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.
	Debt obligations are considered secured unless otherwise indicated.
	144A after the name of an issuer represents securities exempt from registration under Rule 144A of 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	79.4%
	United Kingdom	3.9
	Canada	2.6
	Australia	2.4
	Netherlands	2.1
	Russia	1.4
	Sweden	1.2
	Mexico	1.0
	Germany	0.9
	Brazil	0.8
	Ireland	0.7
	Luxembourg	0.7
	France	0.6
	Spain	0.6
	Argentina	0.6
	Indonesia	0.5
	Other	0.6
	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.
	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. 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.
	Options contracts: The fund used options contracts to hedge duration and convexity, to isolate prepayment risk, and to manage downside risks.
	The potential risk to the fund is that the change in value of options 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. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.
	Exchange-traded options are valued at the last sale price or, if no sales are reported, the last bid price for purchased options and the last ask price for written options. OTC traded options are valued using prices supplied by dealers.
	Options on swaps are similar to options on securities except that the premium paid or received is to buy or grant the right to enter into a previously agreed upon interest rate or credit default contract. Forward premium swap options contracts include premiums that have extended settlement dates. The delayed settlement of the premiums is factored into the daily valuation of the option contracts. In the case of interest rate cap and floor contracts, in return for a premium, ongoing payments between two parties are based on interest rates exceeding a specified rate, in the case of a cap contract, or falling below a specified rate in the case of a floor contract.
	For the fund's average contract amount on options 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.
	Interest rate swap contracts: The fund entered into OTC and/or centrally cleared interest rate swap contracts, which are arrangements between two parties to exchange cash flows based on a notional principal amount, for hedging term structure risk, for yield curve positioning, and for gaining exposure to rates in various countries.
	An OTC and centrally cleared interest rate swap can be purchased or sold with an upfront premium. For OTC interest rate swap 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. OTC and centrally cleared interest rate swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers. Any change is recorded as an unrealized gain or loss on OTC interest rate swaps. Daily fluctuations in the value of centrally cleared interest rate swaps are settled through a central clearing agent and are recorded as unrealized gain or loss. Payments, including upfront premiums, received or made are recorded as realized gains or losses at the reset date or the closing of the contract. Certain OTC and centrally cleared interest rate swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract.
	The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or if the counterparty defaults, in the case of OTC interest rate contracts, or the central clearing agency or a clearing member defaults, in the case of centrally cleared interest rate swap contracts, on its respective obligation to perform under the contract. The fund's maximum risk of loss from counterparty risk or central clearing risk is the fair value of the contract. This risk may be mitigated for OTC interest rate swap contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared interest rate swap contracts through the daily exchange of variation margin. There is minimal counterparty risk with respect to centrally cleared interest rate swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default.
	For the fund's average notional amount on interest rate swap contracts, see the appropriate table at the end of these footnotes.
	Total return swap contracts: The fund entered into OTC total return swap contracts, which are arrangements to exchange a market-linked return for a periodic payment, both based on a notional principal amount, to hedge sector exposure, for gaining exposure to specific sectors, for hedging inflation, and for gaining exposure to inflation.
	To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund's maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty.
	For the fund's average notional amount on OTC total return swap 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, for gaining liquid exposure to individual names, to hedge market risk, and for gaining exposure to specific sectors.
	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.
	TBA commitments: The fund may enter into TBA (to be announced) commitments to purchase securities for a fixed unit price at a future date beyond customary settlement time. Although the unit price and par amount have been established, the actual securities have not been specified. However, it is anticipated that the amount of the commitments will not significantly differ from the principal amount. The fund holds, and maintains until settlement date, cash or high-grade debt obligations in an amount sufficient to meet the purchase price, or the fund may enter into offsetting contracts for the forward sale of other securities it owns. Income on the securities will not be earned until settlement date.
	The fund may also enter into TBA sale commitments to hedge its portfolio positions to sell mortgage-backed securities it owns under delayed delivery arrangements or to take a short position in mortgage-backed securities. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, either equivalent deliverable securities, or an offsetting TBA purchase commitment deliverable on or before the sale commitment date, are held as "cover" for the transaction, or other liquid assets in an amount equal to the notional value of the TBA sale commitment are segregated. If the TBA sale commitment is closed through the acquisition of an offsetting TBA purchase commitment, the fund realizes a gain or loss. If the fund delivers securities under the commitment, the fund realizes a gain or a loss from the sale of the securities based upon the unit price established at the date the commitment was entered into.
	TBA commitments, which are accounted for as purchase and sale transactions, may be considered securities themselves, and involve a risk of loss due to changes in the value of the security prior to the settlement date as well as the risk that the counterparty to the transaction will not perform its obligations. Counterparty risk is mitigated by having a master agreement between the fund and the counterparty.
	Unsettled TBA commitments are valued at their fair value according to the procedures described under "Security valuation" above. The contract is marked to market daily and the change in fair value is recorded by the fund as an unrealized gain or loss. Based on market circumstances, Putnam Management will determine whether to take delivery of the underlying securities or to dispose of the TBA commitments prior to settlement.
	Master agreements: The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements that govern OTC derivative and foreign exchange contracts and Master Securities Forward Transaction Agreements that govern transactions involving mortgage-backed and other asset-backed securities that may result in delayed delivery (Master Agreements) with certain counterparties entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties' general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund's custodian and, with respect to those amounts which can be sold or repledged, are presented in the fund's portfolio.
	Collateral pledged by the fund is segregated by the fund's custodian and identified in the fund's portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund's net position with each counterparty.
	With respect to ISDA Master Agreements, 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 or 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 $904,802 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $804,834 and may include amounts related to unsettled 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
Asset-backed securities	$—	$2,771,333	$—
Corporate bonds and notes	—	79,135,797	—
Foreign government and agency bonds and notes	—	5,738,823	—
Mortgage-backed securities	—	48,163,395	—
Purchased options outstanding	—	38,592	—
Purchased swap options outstanding	—	204,081	—
U.S. government and agency mortgage obligations	—	16,425,698	—
U.S. treasury obligations	—	58,798	—
Short-term investments	17,896,479	41,921,475	—
Totals by level	$17,896,479	$194,457,992	$—
		Valuation inputs
Other financial instruments:	Level 1	Level 2	Level 3
Forward currency contracts	$—	$(3,023)	$—
Written options outstanding	—	(38,032)	—
Written swap options outstanding	—	(751,695)	—
Forward premium swap option contracts	—	17,411	—
TBA sale commitments	—	(11,237,031)	—
Interest rate swap contracts	—	99,772	—
Total return swap contracts	—	(2,471)	—
Credit default contracts	—	(330,588)	—
Totals by level	$—	$(12,245,657)	$—
During the reporting period, transfers within the fair value hierarchy, 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.
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	$460,567	$791,155
Foreign exchange contracts	—	3,023
Interest rate contracts	501,420	933,762
Total	$961,987	$1,727,940
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 based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period:
Purchased TBA commitment option contracts (contract amount)		$12,800,000
Purchased swap option contracts (contract amount)		$60,800,000
Written TBA commitment option contracts (contract amount)		$25,600,000
Written swap option contracts (contract amount)		$80,100,000
Forward currency contracts (contract amount)		$83,000
Centrally cleared interest rate swap contracts (notional)		$95,400,000
OTC total return swap contracts (notional)		$690,000
OTC credit default contracts (notional)		$10,900,000

	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 "(AFF)" 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	Goldman Sachs International	JPMorgan Chase Bank N.A.	JPMorgan Securities LLC	Royal Bank of Scotland PLC (The)	Total
	Assets:
	Centrally cleared interest rate swap contracts§	—	—	13,007	—	—	—	—	—	—	13,007
	OTC Total return swap contracts*#	—	1,399	—	—	—	—	—	—	—	1,399
	OTC Credit default contracts*#	—	—	—	—	275,202	118,303	—	67,062	—	460,567
	Forward currency contracts#	—	—	—	—	—	—	—	—	—	—
	Forward premium swap option contracts#	23,613	1,098	—	4,844	—	865	18,599	—	—	49,019
	Purchased swap options#	4	824	—	115,077	22,174	58,757	7,245	—	—	204,081
	Purchased options#	—	—	—	—	—	—	38,592	—	—	38,592
	Total Assets	$23,617	$3,321	$13,007	$119,921	$297,376	$177,925	$64,436	$67,062	$—	$766,665
	Liabilities:
	Centrally cleared interest rate swap contracts§	—	—	1,879	—	—		—	—	—	1,879
	OTC Total return swap contracts*#	—	3,870	—	—	—	—	—	—	—	3,870
	OTC Credit default contracts*#	57,987	—	—	—	306,652	114,200	—	312,316	—	791,155
	Forward currency contracts#	—	—	—	—	—	—	—	—	3,023	3,023
	Forward premium swap option contracts#	12,949	5,938	—	1,974	—	345	10,402	—	—	31,608
	Written swap options#	7	824	—	82,768	16,790	59,482	591,824	—	—	751,695
	Written options#	—	—	—	—	—	—	38,032	—	—	38,032
	Total Liabilities	$70,943	$10,632	$1,879	$84,742	$323,442	$174,027	$640,258	$312,316	$3,023	$1,621,262
	Total Financial and Derivative Net Assets	$(47,326)	$(7,311)	$11,128	$35,179	$(26,066)	$3,898	$(575,822)	$(245,254)	$(3,023)	$(854,597)
	Total collateral received (pledged)##†	$—	$—	$—	$—	$—	$—	$(575,822)	$(220,910)	$—
	Net amount	$(47,326)	$(7,311)	$11,128	$35,179	$(26,066)	$3,898	$—	$(24,344)	$(3,023)
*	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: September 29, 2017

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: September 29, 2017

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer
Date: September 29, 2017

EX-99.CERT

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: September 28, 2017

Jonathan S. Horwitz

Principal Executive Officer

Certifications

I, Janet C. Smith, 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/ Janet C. Smith

_______________________________

Date: September 28, 2017

Janet C. Smith

Principal Financial Officer

Attachment A

NQ

Period (s) ended July 31, 2017

               Putnam Managed Municipal Income Trust

               Putnam Municipal Opportunities Trust

               Putnam Multi-Cap Value Fund

               Putnam Capital Opportunities Fund

               Putnam Income Fund

               Putnam Global Income Trust

               Putnam Global Equity Fund

               Putnam Convertible Securities Fund

               Putnam Absolute Return 100 Fund

               Putnam Absolute Return 300 Fund

               Putnam Absolute Return 500 Fund

               Putnam Absolute Return 700 Fund

               Putnam Capital Spectrum Fund

               Putnam Equity Spectrum Fund

               Putnam Global Sector Fund

               Putnam Multi-Cap Core Fund