0000928816-24-000714.txt : 20240626 0000928816-24-000714.hdr.sgml : 20240626 20240626170126 ACCESSION NUMBER: 0000928816-24-000714 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 8 CONFORMED PERIOD OF REPORT: 20240430 FILED AS OF DATE: 20240626 DATE AS OF CHANGE: 20240626 EFFECTIVENESS DATE: 20240626 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM FUNDS TRUST CENTRAL INDEX KEY: 0001005942 ORGANIZATION NAME: IRS NUMBER: 043299786 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07513 FILM NUMBER: 241074392 BUSINESS ADDRESS: STREET 1: 100 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6177601000 MAIL ADDRESS: STREET 1: 100 FEDERAL STREET CITY: BOSTON STATE: MA ZIP: 02110 0001005942 S000024275 Putnam Core Bond Fund C000071712 Class R C000071713 Class Y C000071714 Class A C000071715 Class B C000071716 Class C C000118006 Class R6 N-CSRS 1 a_corebond.htm PUTNAM FUNDS TRUST a_corebond.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES




Investment Company Act file number: (811-07513)
Exact name of registrant as specified in charter: Putnam Funds Trust
Address of principal executive offices: 100 Federal Street, Boston, Massachusetts 02110
Name and address of agent for service: Stephen Tate, Vice President
100 Federal Street
Boston, Massachusetts 02110
Copy to:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
        James E. Thomas, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: October 31, 2024
Date of reporting period: November 1, 2023 – April 30, 2024



Item 1. Report to Stockholders:

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940:






Message from the Trustees

June 7, 2024

Dear Fellow Shareholder:

We are pleased to report that on January 1, 2024, Franklin Resources, Inc., a leading global asset management firm operating as Franklin Templeton, acquired Putnam Investments. With complementary capabilities and an established infrastructure serving over 150 countries, Franklin Templeton enhances Putnam’s investment, risk management, operations, and technology platforms. Together, our firms are committed to delivering strong fund performance and more choices for our investors.

We are also pleased to welcome Jane E. Trust and Gregory G. McGreevey to your Board of Trustees. Ms. Trust is an interested trustee who has served as Senior Vice President, Fund Board Management, at Franklin Templeton since 2020. Mr. McGreevey joins the Board as an independent trustee, most recently serving as Senior Managing Director, Investments, at Invesco Ltd., until 2023.

As we enter this new chapter, you can rest assured that your fund continues to be actively managed by the same experienced investment professionals. Your investment team is exploring new and attractive opportunities for your fund while monitoring changing market conditions.

Thank you for investing with Putnam.





Credit qualities are shown as a percentage of the fund’s net assets as of 4/30/24. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings and portfolio credit quality will vary over time. Due to rounding, percentages may not equal 100%.

Cash and net other assets, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.

Of special interest

Effective November 2023, due to increased levels of income earned in the portfolio, the fund’s monthly dividend rate for class A shares was increased from $0.026 to $0.029 per share. Similar increases were made to other share classes.

2 Core Bond Fund 

 



Your fund’s expenses

As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. Using the following information, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You may also pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial representative.

Expense ratios

  Class A  Class B  Class C  Class R  Class R6  Class Y 
Total annual operating expenses for the             
fiscal year ended 10/31/23*  0.64%  0.84%  1.39%  0.89%  0.39%  0.39% 
Annualized expense ratio for the             
six-month period ended 4/30/24  0.64%  0.84%  1.39%  0.89%  0.39%  0.39% 

 

Fiscal year expense information in this table is taken from the most recent prospectus, is subject to change, and may differ from that shown for the annualized expense ratio and in the financial highlights of this report.

Expenses are shown as a percentage of average net assets.

* Restated to reflect the management fee under the fund’s new management contract, which took effect on March 1, 2023.

Expenses per $1,000

The following table shows the expenses you would have paid on a $1,000 investment in each class of the fund from 11/1/23 to 4/30/24. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

  Class A  Class B  Class C  Class R  Class R6  Class Y 
Expenses paid per $1,000*†  $3.27  $4.29  $7.09  $4.54  $1.99  $2.00 
Ending value (after expenses)  $1,056.80  $1,054.50  $1,051.90  $1,053.50  $1,056.90  $1,058.40 

 

* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 4/30/24. The expense ratio may differ for each share class.

Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period (182); and then dividing that result by the number of days in the year (366).

Core Bond Fund 3 

 



Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended 4/30/24, use the following calculation method. To find the value of your investment on 11/1/23, call Putnam at 1-800-225-1581.


Compare expenses using the SEC’s method

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the following table shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

  Class A  Class B  Class C  Class R  Class R6  Class Y 
Expenses paid per $1,000*†  $3.22  $4.22  $6.97  $4.47  $1.96  $1.96 
Ending value (after expenses)  $1,021.68  $1,020.69  $1,017.95  $1,020.44  $1,022.92  $1,022.92 

 

* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 4/30/24. The expense ratio may differ for each share class.

Expenses are calculated by multiplying the expense ratio by the average account value for the six-month period; then multiplying the result by the number of days in the six-month period (182); and then dividing that result by the number of days in the year (366).

4 Core Bond Fund 

 



Other information for shareholders

Important notice regarding delivery of shareholder documents

In accordance with Securities and Exchange Commission (SEC) regulations, your fund’s manager sends a single notice of internet availability, or a single printed copy, of annual and semiannual shareholder reports, prospectuses, and proxy statements to shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call 1-800-225-1581 or, for exchange-traded funds only, 1-833-228-5577. We will begin sending individual copies within 30 days.

Proxy voting

The Putnam Funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2023, are available in the Individual Investors section of putnam.com and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain The Putnam Funds’ proxy voting guidelines and procedures at no charge by calling Shareholder Services at 1-800-225-1581 or, for exchange-traded funds only, 1-833-228-5577.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the fund’s Form N-PORT on the SEC’s website at www.sec.gov.

Liquidity risk management program

Putnam Investment Management, LLC (“Putnam Management”), as the administrator of the fund’s liquidity risk management program (appointed by the Board of Trustees), presented the most recent annual report on the program to the Trustees in April 2024. The report covered the structure of the program, including the program documents and related policies and procedures adopted to comply with Rule 22e-4 under the Investment Company Act of 1940, and reviewed the operation of the program from January 2023 through December 2023. The report included a description of the annual liquidity assessment of the fund that Putnam Management performed in November 2023. The report noted that there were no material compliance exceptions identified under Rule 22e-4 during the period. The report included a review of the governance of the program and the methodology for classification of the fund’s investments. Putnam Management concluded that the program has been operating effectively and adequately to ensure compliance with Rule 22e-4.

Core Bond Fund 5 

 



Important notice regarding Putnam’s privacy policy

In order to conduct business with our shareholders, we must obtain certain personal information such as account holders’ names, addresses, Social Security numbers, and dates of birth. Using this information, we are able to maintain accurate records of accounts and transactions.

It is our policy to protect the confidentiality of our shareholder information, whether or not a shareholder currently owns shares of our funds. In particular, it is our policy not to sell information about you or your accounts to outside marketing firms. We have safeguards in place designed to prevent unauthorized access to our computer systems and procedures to protect personal information from unauthorized use.

Under certain circumstances, we must share account information with outside vendors who provide services to us, such as mailings and proxy solicitations. In these cases, the service providers enter into confidentiality agreements with us, and we provide only the information necessary to process transactions and perform other services related to your account. Finally, it is our policy to share account information with your financial representative, if you’ve listed one on your Putnam account.

6 Core Bond Fund 

 



Financial statements

These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal period.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover (not required for money market funds) in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.

Core Bond Fund 7 

 



The fund’s portfolio 4/30/24 (Unaudited)
U.S. GOVERNMENT AND AGENCY
MORTGAGE OBLIGATIONS (32.7%)*
Principal
amount
Value
U.S. Government Guaranteed Mortgage Obligations (5.4%)
Government National Mortgage Association Pass-Through Certificates    
6.50%, with due dates from 9/20/53 to 11/20/53 $2,831,435 $2,910,100
6.00%, with due dates from 2/20/53 to 11/20/53 4,183,017 4,230,693
5.50%, with due dates from 5/20/49 to 7/20/53 2,669,604 2,633,614
5.00%, with due dates from 5/20/49 to 8/20/53 1,034,920 995,618
4.50%, TBA, 5/1/54 1,000,000 931,609
4.00%, TBA, 5/1/54 1,000,000 906,244
4.00%, with due dates from 6/20/49 to 1/20/51 4,590,389 4,186,352
3.50%, TBA, 5/1/54 1,000,000 881,113
3.50%, with due dates from 10/20/49 to 11/20/49 103,526 91,179
3.00%, TBA, 5/1/54 3,000,000 2,551,968
2.50%, TBA, 5/1/54 2,000,000 1,640,509
2.00%, TBA, 5/1/54 2,000,000 1,574,222
23,533,221
U.S. Government Agency Mortgage Obligations (27.3%)
Federal Home Loan Mortgage Corporation Pass-Through Certificates    
6.50%, 5/1/53 74,249 75,255
6.00%, 5/1/53 1,194,571 1,193,245
5.50%, with due dates from 7/1/49 to 11/1/53 4,532,723 4,448,754
4.50%, 2/1/53 311,033 287,454
4.00%, 4/1/52 896,381 803,861
3.00%, with due dates from 8/1/50 to 3/1/52 2,663,529 2,241,339
2.50%, with due dates from 10/1/50 to 4/1/52 7,086,281 5,721,410
2.00%, with due dates from 3/1/51 to 1/1/52 4,129,558 3,131,384
2.00%, 9/1/35 700,538 608,938
Federal National Mortgage Association Pass-Through Certificates    
6.50%, with due dates from 4/1/53 to 5/1/53 1,259,177 1,274,427
6.00%, with due dates from 4/1/53 to 10/1/53 2,921,367 2,921,958
5.50%, with due dates from 4/1/50 to 11/1/53 14,670,378 14,364,478
5.00%, with due dates from 1/1/49 to 8/1/49 75,764 72,522
4.50%, 1/1/53 619,542 572,576
4.00%, 5/1/52 923,212 831,674
3.50%, with due dates from 7/1/50 to 4/1/52 5,470,565 4,756,063
3.00%, with due dates from 9/1/50 to 4/1/51 1,869,093 1,561,115
2.50%, with due dates from 3/1/51 to 3/1/52 2,512,265 2,025,979
2.00%, with due dates from 9/1/50 to 3/1/52 6,094,238 4,669,896
2.00%, 3/1/37 2,833,080 2,461,748
1.50%, 9/1/51 1,799,643 1,294,337
Uniform Mortgage-Backed Securities    
6.50%, TBA, 5/1/54 8,000,000 8,064,062
6.00%, TBA, 5/1/54 5,000,000 4,956,446
5.00%, TBA, 5/1/54 7,000,000 6,636,601
4.50%, TBA, 5/1/54 1,000,000 921,719
3.50%, TBA, 5/1/54 3,000,000 2,586,211
3.00%, TBA, 5/1/54 13,000,000 10,739,726
3.00%, TBA, 5/1/39 1,000,000 908,125
2.50%, TBA, 5/1/54 12,000,000 9,498,281


8 Core Bond Fund




U.S. GOVERNMENT AND AGENCY
MORTGAGE OBLIGATIONS (32.7%)*
cont.
Principal
amount
Value
U.S. Government Agency Mortgage Obligations cont.
Uniform Mortgage-Backed Securities    
2.50%, TBA, 5/1/39 $2,000,000 $1,772,578
2.00%, TBA, 5/1/54 22,000,000 16,615,370
1.50%, TBA, 5/1/39 2,000,000 1,683,800
119,701,332
Total U.S. government and agency mortgage obligations (cost $146,864,935) $143,234,553

U.S. TREASURY OBLIGATIONS (25.5%)* Principal
amount
Value
U.S. Treasury Bonds    
3.25%, 5/15/42 $5,000,000 $4,016,211
3.00%, 2/15/49 18,000,000 13,125,938
3.00%, 2/15/47 12,000,000 8,848,126
2.75%, 8/15/42 Φ 15,000,000 11,092,970
2.375%, 5/15/51 12,810,000 8,081,309
U.S. Treasury Notes    
2.75%, 8/15/32 12,400,000 10,752,641
2.75%, 2/15/28 17,300,000 16,072,781
1.625%, 9/30/26 6,910,000 6,392,560
1.625%, 5/15/26 15,500,000 14,485,840
1.625%, 2/15/26 6,400,000 6,021,857
1.50%, 2/15/30 6,000,000 5,031,328
0.375%, 7/31/27 4,150,000 3,596,396
0.25%, 9/30/25 4,160,000 3,882,775
Total U.S. treasury obligations (cost $118,745,148) $111,400,732

CORPORATE BONDS AND NOTES (30.5%)* Principal
amount
Value
Basic materials (1.2%)
Celanese US Holdings, LLC company guaranty sr. unsec. notes 6.33%, 7/15/29 (Germany)   $1,150,000 $1,166,570
Celanese US Holdings, LLC company guaranty sr. unsec. notes 6.165%, 7/15/27 (Germany)   365,000 367,142
CF Industries, Inc. company guaranty sr. unsec. bonds 4.95%, 6/1/43   240,000 205,538
FMC Corp. sr. unsec. unsub. notes 5.65%, 5/18/33   330,000 316,348
Glencore Funding, LLC 144A company guaranty sr. unsec. bonds 5.634%, 4/4/34   1,040,000 1,006,136
Glencore Funding, LLC 144A company guaranty sr. unsec. notes 6.375%, 10/6/30   470,000 482,421
Glencore Funding, LLC 144A company guaranty sr. unsec. notes 2.50%, 9/1/30   440,000 364,109
Graphic Packaging International, LLC 144A company guaranty sr. unsec. notes 3.75%, 2/1/30   430,000 374,134
Huntsman International, LLC sr. unsec. notes 4.50%, 5/1/29   185,000 172,616
International Flavors & Fragrances, Inc. sr. unsec. notes 4.45%, 9/26/28   90,000 85,730
International Flavors & Fragrances, Inc. 144A sr. unsec. notes 2.30%, 11/1/30   85,000 68,943
Nutrien, Ltd. sr. unsec. sub. bonds 4.20%, 4/1/29 (Canada)   160,000 150,963


Core Bond Fund 9



CORPORATE BONDS AND NOTES (30.5%)* cont. Principal
amount
Value
Basic materials cont.
Sherwin-Williams Co. (The) sr. unsec. unsub. bonds 3.45%, 6/1/27   $500,000 $472,087
WestRock MWV, LLC company guaranty sr. unsec. unsub. notes 8.20%, 1/15/30   115,000 127,834
5,360,571
Capital goods (1.7%)
BAE Systems PLC 144A sr. unsec. bonds 5.50%, 3/26/54 (United Kingdom)   350,000 334,688
BAE Systems PLC 144A sr. unsec. notes 5.125%, 3/26/29 (United Kingdom)   745,000 729,169
Boeing Co. (The) sr. unsec. bonds 5.805%, 5/1/50   455,000 402,640
Boeing Co. (The) sr. unsec. notes 2.70%, 2/1/27   208,000 189,575
Boeing Co. (The) sr. unsec. notes 2.196%, 2/4/26   690,000 643,615
Boeing Co. (The) sr. unsec. unsub. notes 6.125%, 2/15/33   670,000 655,390
Boeing Co. (The) 144A sr. unsec. bonds 6.858%, 5/1/54   371,000 372,005
Boeing Co. (The) 144A sr. unsec. bonds 6.528%, 5/1/34   189,000 190,361
Boeing Co. (The) 144A sr. unsec. notes 6.298%, 5/1/29   81,000 81,322
Boeing Co. (The) 144A sr. unsec. notes 6.259%, 5/1/27   39,000 39,123
Howmet Aerospace, Inc. sr. unsec. unsub. bonds 5.95%, 2/1/37   250,000 249,911
Howmet Aerospace, Inc. sr. unsec. unsub. notes 3.00%, 1/15/29   1,219,000 1,081,113
RTX Corp. sr. unsec. notes 5.15%, 2/27/33   535,000 519,146
RTX Corp. sr. unsec. unsub. bonds 6.40%, 3/15/54   325,000 348,571
Waste Connections, Inc. sr. unsec. bonds 5.00%, 3/1/34   1,220,000 1,166,141
Waste Management, Inc. company guaranty sr. unsec. notes 4.875%, 2/15/29   397,000 392,215
7,394,985
Communication services (2.4%)
American Tower Corp. sr. unsec. bonds 2.70%, 4/15/31 R   490,000 404,749
American Tower Corp. sr. unsec. notes 5.50%, 3/15/28 R   225,000 223,983
American Tower Corp. sr. unsec. notes 3.95%, 3/15/29 R   925,000 857,564
American Tower Corp. sr. unsec. notes 2.90%, 1/15/30 R   535,000 461,340
AT&T, Inc. company guaranty sr. unsec. unsub. notes 2.30%, 6/1/27   372,000 339,267
AT&T, Inc. sr. unsec. notes 4.10%, 2/15/28   430,000 410,493
AT&T, Inc. sr. unsec. unsub. bonds 4.35%, 3/1/29   430,000 410,285
AT&T, Inc. sr. unsec. unsub. bonds 2.55%, 12/1/33   745,000 575,048
AT&T, Inc. sr. unsec. unsub. notes 4.25%, 3/1/27   180,000 174,828
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp. company guaranty sr. sub. bonds 6.484%, 10/23/45   150,000 132,793
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp. company guaranty sr. sub. bonds 4.80%, 3/1/50   65,000 45,478
Charter Communications Operating, LLC/Charter Communications Operating Capital Corp. company guaranty sr. sub. notes 4.908%, 7/23/25   140,000 138,083
Comcast Corp. company guaranty sr. unsec. notes 3.30%, 2/1/27   230,000 218,912
Cox Communications, Inc. 144A sr. unsec. bonds 3.50%, 8/15/27   132,000 123,935
Crown Castle, Inc. sr. unsec. bonds 3.80%, 2/15/28 R   125,000 116,601
Crown Castle, Inc. sr. unsec. bonds 3.65%, 9/1/27 R   505,000 473,279
Equinix, Inc. sr. unsec. sub. notes 3.20%, 11/18/29 R   760,000 670,082


10 Core Bond Fund



CORPORATE BONDS AND NOTES (30.5%)* cont. Principal
amount
Value
Communication services cont.
Rogers Communications, Inc. company guaranty sr. unsec. notes 5.00%, 2/15/29 (Canada)   $740,000 $720,097
Rogers Communications, Inc. company guaranty sr. unsec. unsub. bonds 4.30%, 2/15/48 (Canada)   100,000 76,974
Rogers Communications, Inc. company guaranty sr. unsec. unsub. notes Ser. REGS, 3.80%, 3/15/32 (Canada)   325,000 283,550
Sprint Capital Corp. company guaranty sr. unsec. unsub. notes 6.875%, 11/15/28   265,000 277,504
T-Mobile USA, Inc. company guaranty sr. unsec. bonds 5.75%, 1/15/54   55,000 53,382
T-Mobile USA, Inc. company guaranty sr. unsec. bonds 5.05%, 7/15/33   1,753,000 1,680,061
T-Mobile USA, Inc. company guaranty sr. unsec. notes 5.375%, 4/15/27   526,000 527,037
T-Mobile USA, Inc. company guaranty sr. unsec. notes 3.375%, 4/15/29   460,000 417,433
Time Warner Cable Enterprises, LLC company guaranty sr. unsub. notes 8.375%, 7/15/33   565,000 612,110
Verizon Communications, Inc. sr. unsec. unsub. notes 2.10%, 3/22/28   190,000 168,234
10,593,102
Consumer cyclicals (1.4%)
Alimentation Couche-Tard, Inc. 144A company guaranty sr. unsec. notes 3.55%, 7/26/27 (Canada)   150,000 141,375
Amazon.com, Inc. sr. unsec. unsub. bonds 2.70%, 6/3/60   90,000 51,546
Booking Holdings, Inc. sr. unsec. sub. notes 4.625%, 4/13/30   255,000 245,815
Brunswick Corp/DE sr. unsec. notes 5.85%, 3/18/29   375,000 371,051
Gartner, Inc. 144A company guaranty sr. unsec. bonds 3.75%, 10/1/30   191,000 166,222
Gartner, Inc. 144A company guaranty sr. unsec. notes 3.625%, 6/15/29   44,000 39,371
Global Payments, Inc. sr. unsec. notes 2.15%, 1/15/27   100,000 91,555
Hyatt Hotels Corp. sr. unsec. notes 5.75%, 1/30/27   664,000 667,195
Hyundai Capital America 144A sr. unsec. notes 6.375%, 4/8/30 (South Korea)   60,000 61,615
Hyundai Capital America 144A sr. unsec. notes 5.40%, 1/8/31 (South Korea)   158,000 154,503
Hyundai Capital America 144A sr. unsec. notes 5.35%, 3/19/29 (South Korea)   364,000 357,729
Interpublic Group of Cos., Inc. (The) sr. unsec. unsub. notes 2.40%, 3/1/31   110,000 89,831
Lennar Corp. company guaranty sr. unsec. unsub. notes 4.75%, 11/29/27   209,000 205,239
Moody’s Corp. sr. unsec. notes 3.25%, 1/15/28   135,000 126,439
Netflix, Inc. 144A sr. unsec. bonds 5.375%, 11/15/29   710,000 707,973
Paramount Global sr. unsec. unsub. FRB 4.375%, 3/15/43   295,000 195,427
Paramount Global sr. unsec. unsub. notes 4.20%, 6/1/29   95,000 84,472
Paramount Global sr. unsec. unsub. notes 3.70%, 6/1/28   475,000 424,647
S&P Global, Inc. company guaranty sr. unsec. bonds 2.50%, 12/1/29   200,000 173,442
S&P Global, Inc. company guaranty sr. unsec. notes 1.25%, 8/15/30   100,000 79,025


Core Bond Fund 11



CORPORATE BONDS AND NOTES (30.5%)* cont. Principal
amount
Value
Consumer cyclicals cont.
Stellantis Finance US, Inc. 144A company guaranty sr. unsec. notes 1.711%, 1/29/27   $200,000 $180,177
Tapestry, Inc. company guaranty sr. unsec. notes 7.85%, 11/27/33   191,000 199,518
Toll Brothers Finance Corp. company guaranty sr. unsec. unsub. notes 4.35%, 2/15/28   160,000 152,975
Warnermedia Holdings, Inc. company guaranty sr. unsec. bonds 5.05%, 3/15/42   570,000 456,292
Warnermedia Holdings, Inc. company guaranty sr. unsec. notes 4.279%, 3/15/32   1,020,000 878,614
6,302,048
Consumer staples (1.3%)
Ashtead Capital, Inc. 144A company guaranty sr. unsec. bonds 5.95%, 10/15/33   460,000 452,932
Ashtead Capital, Inc. 144A company guaranty sr. unsec. FRN 5.80%, 4/15/34   375,000 364,962
Ashtead Capital, Inc. 144A notes 4.375%, 8/15/27   305,000 290,205
Campbell Soup Co. sr. unsec. unsub. notes 5.20%, 3/21/29   265,000 261,250
ERAC USA Finance, LLC 144A company guaranty sr. unsec. notes 7.00%, 10/15/37   70,000 76,589
Haleon US Capital, LLC company guaranty sr. unsec. unsub. notes 3.375%, 3/24/27   1,315,000 1,241,976
JBS USA LUX SA/JBS USA Food Co./JBS Luxembourg SARL 144A company guaranty sr. unsec. bonds 6.75%, 3/15/34 (Luxembourg)   905,000 923,307
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc. company guaranty sr. unsec. notes 5.75%, 4/1/33 (Luxembourg)   145,000 138,674
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc. company guaranty sr. unsec. notes 3.00%, 2/2/29 (Luxembourg)   523,000 454,866
Kenvue, Inc. company guaranty sr. unsec. notes Ser. REGS, 4.90%, 3/22/33   1,148,000 1,111,151
Kenvue, Inc. company guaranty sr. unsec. unsub. notes 5.05%, 3/22/28   72,000 71,725
Kenvue, Inc. company guaranty sr. unsec. unsub. notes Ser. REGS, 5.05%, 3/22/53   85,000 78,489
McDonald’s Corp. sr. unsec. unsub. bonds Ser. MTN, 6.30%, 10/15/37   345,000 363,390
5,829,516
Energy (1.3%)
Cheniere Energy Partners LP company guaranty sr. unsec. notes 4.50%, 10/1/29   910,000 851,434
Cheniere Energy Partners LP company guaranty sr. unsec. unsub. notes 3.25%, 1/31/32   180,000 150,384
Columbia Pipelines Operating Co., LLC 144A sr. unsec. bonds 6.544%, 11/15/53   270,000 278,877
Columbia Pipelines Operating Co., LLC 144A sr. unsec. notes 5.927%, 8/15/30   255,000 255,799
Diamondback Energy, Inc. company guaranty sr. unsec. notes 6.25%, 3/15/33   1,090,000 1,125,537
Occidental Petroleum Corp. sr. unsec. sub. notes 7.50%, 5/1/31   910,000 990,865
ONEOK, Inc. company guaranty sr. unsec. sub. bonds 6.05%, 9/1/33   345,000 348,830


12 Core Bond Fund



CORPORATE BONDS AND NOTES (30.5%)* cont. Principal
amount
Value
Energy cont.
ONEOK, Inc. company guaranty sr. unsec. unsub. notes 6.10%, 11/15/32   $200,000 $203,172
Ovintiv, Inc. company guaranty sr. unsec. bonds 6.25%, 7/15/33   71,000 71,565
Ovintiv, Inc. company guaranty sr. unsec. notes 5.65%, 5/15/28   544,000 543,514
Ovintiv, Inc. company guaranty sr. unsec. notes 5.65%, 5/15/25   72,000 71,760
Targa Resources Partners LP/Targa Resources Partners Finance Corp. company guaranty sr. unsec. unsub. notes 4.875%, 2/1/31   540,000 505,371
5,397,108
Financials (11.4%)
AerCap Ireland Capital DAC/AerCap Global Aviation Trust company guaranty sr. unsec. bonds 3.30%, 1/30/32 (Ireland)   430,000 358,984
AerCap Ireland Capital DAC/AerCap Global Aviation Trust company guaranty sr. unsec. notes 5.10%, 1/19/29 (Ireland)   1,435,000 1,399,614
Air Lease Corp. sr. unsec. sub. bonds 4.625%, 10/1/28   385,000 368,334
Air Lease Corp. sr. unsec. sub. notes 5.85%, 12/15/27   805,000 806,929
Air Lease Corp. sr. unsec. sub. notes 3.25%, 10/1/29   450,000 399,299
Aircastle, Ltd. 144A sr. unsec. notes 6.50%, 7/18/28   410,000 412,926
Ally Financial, Inc. company guaranty sr. unsec. notes 8.00%, 11/1/31   540,000 584,643
American Express Co. sr. unsec. unsub. notes 5.098%, 2/16/28   1,000,000 988,744
Ares Capital Corp. sr. unsec. sub. notes 7.00%, 1/15/27   605,000 615,787
Ares Capital Corp. sr. unsec. sub. notes 3.875%, 1/15/26   390,000 375,515
Athene Holding, Ltd. sr. unsec. bonds 6.25%, 4/1/54   340,000 331,266
Athene Holding, Ltd. sr. unsec. bonds 5.875%, 1/15/34   756,000 736,526
Australia and New Zealand Banking Group, Ltd. 144A unsec. sub. FRB 2.57%, 11/25/35 (Australia)   200,000 160,114
Banco Santander SA jr. unsec. sub. FRB 9.625%, 11/21/53 (Spain)   400,000 427,500
Banco Santander SA unsec. sub. bonds 6.921%, 8/8/33 (Spain)   1,400,000 1,422,928
Bank of America Corp. sr. unsec. FRB 5.468%, 1/23/35   100,000 97,247
Bank of America Corp. sr. unsec. FRN Ser. MTN, 2.496%, 2/13/31   2,090,000 1,758,916
Bank of America Corp. sr. unsec. notes 6.204%, 11/10/28   1,020,000 1,041,331
Bank of America Corp. unsec. sub. FRB 3.846%, 3/8/37   1,025,000 882,766
Bank of America Corp. unsec. sub. notes Ser. L, 4.183%, 11/25/27   450,000 430,589
Bank of Nova Scotia (The) sr. unsec. unsub. notes 5.35%, 12/7/26 (Canada)   580,000 577,131
Berkshire Hathaway, Inc. sr. unsec. unsub. notes 3.125%, 3/15/26   200,000 192,688
BPCE SA 144A unsec. sub. notes 4.50%, 3/15/25 (France)   1,300,000 1,280,007
CaixaBank SA 144A sr. unsec. notes 5.673%, 3/15/30 (Spain)   455,000 447,103
Capital One Financial Corp. sr. unsec. unsub. FRN 7.624%, 10/30/31   517,000 556,344
Capital One Financial Corp. unsec. sub. FRB 2.359%, 7/29/32   235,000 178,278
Citigroup, Inc. sub. unsec. bonds 6.174%, 5/25/34   98,000 97,259
Citigroup, Inc. unsec. sub. bonds 4.75%, 5/18/46   100,000 83,985
Citigroup, Inc. unsec. sub. bonds 4.45%, 9/29/27   1,515,000 1,457,996
CNA Financial Corp. sr. unsec. notes 5.125%, 2/15/34   410,000 386,833
Commonwealth Bank of Australia 144A unsec. sub. notes 5.837%, 3/13/34 (Australia)   960,000 934,386
Commonwealth Bank of Australia 144A unsec. sub. notes 2.688%, 3/11/31 (Australia)   200,000 162,335
Corebridge Financial, Inc. sr. unsec. notes 3.85%, 4/5/29   615,000 564,551
Credit Agricole SA 144A unsec. sub. FRN 4.00%, 1/10/33 (France)   250,000 229,657


Core Bond Fund 13



CORPORATE BONDS AND NOTES (30.5%)* cont. Principal
amount
Value
Financials cont.
Deutsche Bank AG unsec. sub. notes 4.50%, 4/1/25 (Germany)   $761,000 $748,394
Deutsche Bank AG/New York, NY sr. unsec. unsub. FRN 7.146%, 7/13/27 (Germany)   445,000 454,293
EPR Properties company guaranty sr. unsec. unsub. notes 4.50%, 6/1/27 R   144,000 135,713
Extra Space Storage LP company guaranty sr. unsec. notes 5.90%, 1/15/31 R   785,000 788,860
Fairfax Financial Holdings, Ltd. sr. unsec. notes 4.85%, 4/17/28 (Canada)   340,000 330,117
Fidelity National Financial, Inc. sr. unsec. bonds 3.20%, 9/17/51   101,000 61,537
Fifth Third Bancorp sr. unsec. unsub. FRN 6.339%, 7/27/29   365,000 369,160
Ford Motor Co. sr. unsec. unsub. notes 5.80%, 3/5/27   720,000 715,229
Ford Motor Co. sr. unsec. unsub. notes 4.125%, 8/17/27   290,000 272,379
General Motors Financial Co., Inc. sr. unsec. notes 6.40%, 1/9/33   480,000 489,167
GLP Capital LP/GLP Financing II, Inc. company guaranty sr. unsec. sub. notes 6.75%, 12/1/33 R   460,000 471,293
GLP Capital LP/GLP Financing II, Inc. company guaranty sr. unsec. unsub. notes 5.375%, 4/15/26 R   1,037,000 1,023,765
Goldman Sachs Group, Inc. (The) sr. unsec. FRB 4.223%, 5/1/29   665,000 631,003
ING Groep NV sr. unsec. unsub. FRN 6.083%, 9/11/27 (Netherlands)   505,000 507,364
Intercontinental Exchange, Inc. sr. unsec. bonds 2.65%, 9/15/40   225,000 153,268
Intercontinental Exchange, Inc. sr. unsec. bonds 1.85%, 9/15/32   115,000 87,162
Intercontinental Exchange, Inc. sr. unsec. notes 4.35%, 6/15/29   146,000 139,362
Intercontinental Exchange, Inc. sr. unsec. notes 3.65%, 5/23/25   60,000 58,841
Jefferies Financial Group, Inc. sr. unsec. notes 6.20%, 4/14/34   380,000 375,660
Jefferies Financial Group, Inc. sr. unsec. notes 6.05%, 3/12/25   660,000 660,665
JPMorgan Chase & Co. sr. unsec. unsub. FRN 4.323%, 4/26/28   445,000 430,189
JPMorgan Chase & Co. sr. unsec. unsub. notes 6.07%, 10/22/27   505,000 510,938
JPMorgan Chase & Co. unsec. sub. FRB 5.717%, 9/14/33   1,635,000 1,628,831
JPMorgan Chase & Co. unsec. sub. FRB 2.956%, 5/13/31   2,190,000 1,874,181
KKR Group Finance Co. VI, LLC 144A company guaranty sr. unsec. bonds 3.75%, 7/1/29   72,000 65,892
LPL Holdings, Inc. company guaranty sr. unsec. notes 6.75%, 11/17/28   300,000 308,326
Metropolitan Life Global Funding I 144A sr. notes 2.95%, 4/9/30   360,000 312,085
Morgan Stanley sr. unsec. notes 5.123%, 2/1/29   2,085,000 2,051,974
Morgan Stanley sr. unsec. sub. bonds 5.942%, 2/7/39   510,000 490,722
Morgan Stanley unsec. sub. notes Ser. GMTN, 4.35%, 9/8/26   1,270,000 1,235,408
Mutual of Omaha Cos. Global Funding 144A notes 5.80%, 7/27/26   250,000 250,221
Nasdaq, Inc. sr. unsec. sub. bonds 5.55%, 2/15/34   74,000 72,376
NatWest Group PLC sr. unsec. unsub. FRN 5.847%, 3/2/27 (United Kingdom)   230,000 229,817
PNC Financial Services Group, Inc. (The) unsec. sub. FRB 4.626%, 6/6/33   800,000 731,815
Prologis LP sr. unsec. unsub. FRN 5.00%, 3/15/34 R   700,000 669,890
Protective Life Global Funding 144A 5.467%, 12/8/28   595,000 592,328
Royal Bank of Canada sr. unsec. notes Ser. GMTN, 5.20%, 8/1/28 (Canada)   1,005,000 999,259
Societe Generale SA 144A jr. unsec. sub. FRB 10.00%, 11/14/73 (France)   400,000 418,500


14 Core Bond Fund



CORPORATE BONDS AND NOTES (30.5%)* cont. Principal
amount
Value
Financials cont.
Toronto-Dominion Bank (The) jr. sub. unsec. FRB 8.125%, 10/31/82 (Canada)   $465,000 $478,161
Truist Bank unsec. sub. FRN Ser. BKNT, 2.636%, 9/17/29   420,000 404,549
Truist Financial Corp. sr. unsec. unsub. FRB Ser. MTN, 5.711%, 1/24/35   640,000 621,112
UBS Group AG 144A sr. unsec. bonds 5.428%, 2/8/30 (Switzerland)   1,015,000 998,182
UBS Group AG 144A sr. unsec. FRB 6.537%, 8/12/33 (Switzerland)   615,000 629,093
UBS Group AG 144A sr. unsec. FRN 2.193%, 6/5/26 (Switzerland)   420,000 402,928
UBS Group AG 144A sr. unsec. unsub. FRN 1.305%, 2/2/27 (Switzerland)   250,000 230,388
US Bancorp unsec. sub. FRB 2.491%, 11/3/36   360,000 274,421
VICI Properties LP sr. unsec. unsub. notes 4.75%, 2/15/28 R   140,000 134,464
VICI Properties LP/VICI Note Co., Inc. 144A company guaranty sr. unsec. notes 3.75%, 2/15/27 R   1,607,000 1,507,250
Wells Fargo & Co. sr. unsec. unsub. FRN Ser. MTN, 5.574%, 7/25/29   1,380,000 1,375,593
Wells Fargo Bank, NA unsec. sub. notes Ser. BKNT, 6.60%, 1/15/38   330,000 346,711
Westpac Banking Corp. unsec. sub. bonds 4.421%, 7/24/39 (Australia)   120,000 102,486
Westpac Banking Corp. unsec. sub. bonds 2.963%, 11/16/40 (Australia)   145,000 98,366
49,698,199
Health care (3.0%)
AbbVie, Inc. sr. unsec. bonds 5.40%, 3/15/54   539,000 521,844
AbbVie, Inc. sr. unsec. bonds 5.05%, 3/15/34   216,000 210,639
AbbVie, Inc. sr. unsec. notes 4.95%, 3/15/31   755,000 740,556
Amgen, Inc. sr. unsec. unsub. bonds 5.75%, 3/2/63   500,000 477,586
Amgen, Inc. sr. unsec. unsub. bonds 5.65%, 3/2/53   733,000 700,824
Amgen, Inc. sr. unsec. unsub. notes 5.25%, 3/2/30   230,000 228,042
Amgen, Inc. sr. unsec. unsub. notes 4.20%, 3/1/33   1,000,000 905,227
Becton, Dickinson and Co. sr. unsec. notes 3.70%, 6/6/27   936,000 888,734
Biogen, Inc. sr. unsec. sub. notes 2.25%, 5/1/30   450,000 371,576
Bristol-Myers Squibb Co. sr. unsec. notes 5.20%, 2/22/34   1,198,000 1,173,193
Bristol-Myers Squibb Co. sr. unsec. notes 4.90%, 2/22/29   162,000 159,553
DH Europe Finance II SARL company guaranty sr. unsec. notes 2.60%, 11/15/29 (Luxembourg)   250,000 218,219
Eli Lilly and Co. sr. unsec. unsub. bonds 4.875%, 2/27/53   535,000 489,536
GE Healthcare Holding, LLC company guaranty sr. unsec. notes 5.65%, 11/15/27   155,000 155,813
HCA, Inc. company guaranty sr. notes 4.50%, 2/15/27   150,000 145,358
HCA, Inc. company guaranty sr. unsec. bonds 6.00%, 4/1/54   770,000 733,833
HCA, Inc. company guaranty sr. unsec. bonds 5.60%, 4/1/34   585,000 570,817
HCA, Inc. company guaranty sr. unsec. sub. notes 3.625%, 3/15/32   85,000 73,112
Humana, Inc. sr. unsec. unsub. bonds 5.50%, 3/15/53   110,000 100,047
Humana, Inc. sr. unsec. unsub. notes 5.75%, 3/1/28   285,000 286,469
Icon Investments Six DAC company guaranty sr. notes 5.849%, 5/8/29 (Ireland)   200,000 200,000
Icon Investments Six DAC company guaranty sr. notes 5.809%, 5/8/27 (Ireland)   300,000 300,000
Pfizer Investment Enterprises PTE, Ltd. company guaranty sr. unsec. notes 5.30%, 5/19/53 (Singapore)   960,000 895,236


Core Bond Fund 15



CORPORATE BONDS AND NOTES (30.5%)* cont. Principal
amount
Value
Health care cont.
Pfizer Investment Enterprises PTE, Ltd. company guaranty sr. unsec. notes 4.75%, 5/19/33 (Singapore)   $288,000 $274,346
Pfizer Investment Enterprises PTE, Ltd. company guaranty sr. unsec. notes 4.45%, 5/19/28 (Singapore)   234,000 226,948
Pharmacia, LLC company guaranty sr. unsec. notes 6.60%, 12/1/28   295,000 310,447
Service Corp. International sr. unsec. notes 3.375%, 8/15/30   140,000 118,760
Thermo Fisher Scientific, Inc. sr. unsec. notes 4.80%, 11/21/27   180,000 177,772
UnitedHealth Group, Inc. sr. unsec. unsub. bonds 5.875%, 2/15/53   638,000 649,597
UnitedHealth Group, Inc. sr. unsec. unsub. bonds 4.625%, 7/15/35   300,000 281,364
UnitedHealth Group, Inc. sr. unsec. unsub. notes 3.85%, 6/15/28   560,000 531,572
Zoetis, Inc. sr. unsec. sub. notes 2.00%, 5/15/30   118,000 97,216
13,214,236
Technology (2.8%)
Analog Devices, Inc. sr. unsec. notes 5.05%, 4/1/34   580,000 568,850
Apple, Inc. sr. unsec. bonds 3.95%, 8/8/52   203,000 159,920
Apple, Inc. sr. unsec. notes 3.00%, 11/13/27   575,000 538,812
Broadcom Corp./Broadcom Cayman Finance, Ltd. company guaranty sr. unsec. unsub. notes 3.875%, 1/15/27   95,000 91,166
Broadcom, Inc. company guaranty sr. unsec. bonds 4.15%, 11/15/30   320,000 295,266
Broadcom, Inc. 144A sr. unsec. bonds 4.926%, 5/15/37   2,230,000 2,036,478
Cisco Systems, Inc. sr. unsec. bonds 5.30%, 2/26/54   506,000 486,887
Cisco Systems, Inc. sr. unsec. notes 5.05%, 2/26/34   709,000 693,504
Marvell Technology, Inc. sr. unsec. notes 5.95%, 9/15/33   410,000 412,433
Marvell Technology, Inc. sr. unsec. notes 5.75%, 2/15/29   400,000 401,848
Meta Platforms, Inc. sr. unsec. bonds 5.75%, 5/15/63   675,000 672,664
Meta Platforms, Inc. sr. unsec. bonds 5.60%, 5/15/53   388,000 384,794
Meta Platforms, Inc. sr. unsec. notes 4.95%, 5/15/33   1,370,000 1,342,109
Meta Platforms, Inc. sr. unsec. unsub. bonds 4.45%, 8/15/52   170,000 141,531
Meta Platforms, Inc. sr. unsec. unsub. notes 3.50%, 8/15/27   155,000 147,305
Motorola Solutions, Inc. sr. unsec. unsub. bonds 5.40%, 4/15/34   228,000 221,728
MSCI, Inc. 144A company guaranty sr. unsec. notes 3.625%, 9/1/30   1,284,000 1,117,859
Oracle Corp. sr. unsec. bonds 3.95%, 3/25/51   295,000 210,749
Oracle Corp. sr. unsec. bonds 3.65%, 3/25/41   575,000 428,471
Oracle Corp. sr. unsec. notes 2.95%, 4/1/30   620,000 538,508
Oracle Corp. sr. unsec. unsub. bonds 4.30%, 7/8/34   1,025,000 910,328
Oracle Corp. sr. unsec. unsub. bonds 4.00%, 11/15/47   45,000 33,026
salesforce.com, Inc. sr. unsec. bonds 3.05%, 7/15/61   275,000 166,273
salesforce.com, Inc. sr. unsec. bonds 2.90%, 7/15/51   250,000 156,981
Sensata Technologies, Inc. 144A company guaranty sr. unsec. notes 3.75%, 2/15/31   175,000 147,888
12,305,378
Transportation (0.3%)
Penske Truck Leasing Co. LP/PTL Finance Corp. 144A sr. unsec. notes 4.40%, 7/1/27   150,000 144,183
Westinghouse Air Brake Technologies Corp. company guaranty sr. unsec. unsub. bonds 5.611%, 3/11/34   995,000 978,137
1,122,320


16 Core Bond Fund




CORPORATE BONDS AND NOTES (30.5%)* cont. Principal
amount
Value
Utilities and power (3.7%)
AES Corp. (The) sr. unsec. unsub. notes 2.45%, 1/15/31   $235,000 $189,038
Alexander Funding Trust II 144A sr. notes 7.467%, 7/31/28   305,000 318,224
Ameren Corp. sr. unsec. unsub. notes 5.00%, 1/15/29   565,000 551,042
American Electric Power Co., Inc. sr. unsec. unsub. notes Ser. J, 4.30%, 12/1/28   305,000 289,933
American Transmission Systems, Inc. 144A sr. unsec. bonds 2.65%, 1/15/32   265,000 214,259
Constellation Energy Generation, LLC sr. unsec. bonds 6.50%, 10/1/53   620,000 643,491
Constellation Energy Generation, LLC sr. unsec. bonds 6.125%, 1/15/34   255,000 260,933
Constellation Energy Generation, LLC sr. unsec. bonds 5.75%, 3/15/54   500,000 470,470
Duke Energy Ohio, Inc. sr. bonds 5.25%, 4/1/33   1,000,000 975,674
Duke Energy Ohio, Inc. sr. bonds 3.65%, 2/1/29   89,000 82,719
Electricite De France SA 144A sr. unsec. unsub. bonds 4.75%, 10/13/35 (France)   700,000 628,356
Energy Transfer LP jr. unsec. sub. FRN 6.625%, perpetual maturity   501,000 460,205
Enterprise Products Operating, LLC company guaranty sr. unsec. notes 2.80%, 1/31/30   325,000 284,566
Evergy Missouri West, Inc. 144A sr. notes 5.15%, 12/15/27   290,000 285,615
Eversource Energy sr. unsec. unsub. notes 5.45%, 3/1/28   874,000 867,091
Eversource Energy sr. unsec. unsub. notes 5.125%, 5/15/33   355,000 334,789
Exelon Corp. sr. unsec. unsub. bonds 5.45%, 3/15/34   575,000 558,872
Georgia Power Co. sr. unsec. unsub. bonds 5.25%, 3/15/34   725,000 705,318
Georgia Power Co. sr. unsec. unsub. notes 4.95%, 5/17/33   280,000 266,561
Kinder Morgan, Inc. company guaranty sr. unsec. notes Ser. GMTN, 7.75%, 1/15/32   670,000 741,808
Kinder Morgan, Inc. company guaranty sr. unsec. unsub. notes 5.00%, 2/1/29   205,000 200,009
NextEra Energy Capital Holdings, Inc. company guaranty sr. unsec. unsub. notes 6.051%, 3/1/25   495,000 495,980
NextEra Energy Capital Holdings, Inc. company guaranty sr. unsec. unsub. notes 3.55%, 5/1/27   1,194,000 1,128,634
Oncor Electric Delivery Co., LLC sr. FRB 4.95%, 9/15/52   425,000 377,759
Oncor Electric Delivery Co., LLC sr. notes 3.70%, 11/15/28   300,000 280,335
Pacific Gas and Electric Co. sr. bonds 5.90%, 6/15/32   1,363,000 1,346,156
Pacific Gas and Electric Co. sr. bonds 4.95%, 7/1/50   180,000 146,398
Pacific Gas and Electric Co. sr. notes 6.10%, 1/15/29   450,000 453,665
PacifiCorp sr. bonds 2.70%, 9/15/30   210,000 177,303
Puget Sound Energy, Inc. sr. bonds 5.448%, 6/1/53   190,000 179,514
Sempra Energy sr. unsec. unsub. bonds 5.50%, 8/1/33   335,000 325,400
Southern Co. (The) sr. unsec. bonds 5.70%, 3/15/34   660,000 657,990
Southern Co. (The) sr. unsec. notes 5.50%, 3/15/29   70,000 69,785
Vistra Operations Co., LLC 144A company guaranty sr. notes 6.00%, 4/15/34   575,000 558,915
Vistra Operations Co., LLC 144A company guaranty sr. notes 4.30%, 7/15/29   130,000 120,033
Vistra Operations Co., LLC 144A sr. bonds 6.95%, 10/15/33   635,000 661,661
16,308,501
Total corporate bonds and notes (cost $134,851,740) $133,525,964


Core Bond Fund 17



MORTGAGE-BACKED SECURITIES (16.2%)* Principal
amount
Value
Commercial mortgage-backed securities (8.0%)
Arbor Realty Commercial Real Estate CLO, Ltd. 144A FRN Ser. 21-FL2, Class A, (CME Term SOFR 1 Month + 1.21%), 6.535%, 5/15/36 (Cayman Islands)   $984,822 $982,606
AREIT CRE Trust 144A      
FRB Ser. 22-CRE6, Class A, 6.58%, 1/20/37 (Cayman Islands)   533,763 529,096
FRB Ser. 21-CRE5, Class A, 6.521%, 11/17/38 (Cayman Islands)   1,153,486 1,147,305
BANK      
FRB Ser. 17-BNK9, Class XA, IO, 0.896%, 11/15/54 W   36,092,748 776,146
FRB Ser. 18-BN10, Class XA, IO, 0.834%, 2/15/61 W   38,456,350 833,211
Barclays Commercial Mortgage Trust Ser. 19-C5, Class C, 3.71%, 11/15/52   521,000 436,275
Bayview Opportunity Master Fund VII Trust 144A Ser. 23-1A, Class A, 6.93%, 10/28/60   324,192 330,327
BDS, Ltd. 144A      
FRB Ser. 21-FL10, Class A, (CME Term SOFR 1 Month + 1.46%), 6.783%, 12/16/36 (Cayman Islands)   140,709 139,910
FRB Ser. 21-FL9, Class A, (CME Term SOFR 1 Month + 1.18%), 6.503%, 11/16/38 (Cayman Islands)   319,339 316,889
FRB Ser. 21-FL8, Class A, 6.353%, 1/18/36 (Cayman Islands)   880,839 869,829
Cantor Commercial Real Estate Lending FRB Ser. 19-CF3, Class XA, IO, 0.811%, 1/15/53 W   9,019,210 262,033
CD Mortgage Trust Ser. 18-CD7, Class A4, 4.279%, 8/15/51   569,000 528,746
CFCRE Commercial Mortgage Trust      
Ser. 16-C3, Class A3, 3.865%, 1/10/48   289,000 279,440
FRB Ser. 16-C4, Class XA, IO, 1.759%, 5/10/58 W   6,776,720 144,415
Citigroup Commercial Mortgage Trust      
Ser. 14-GC25, Class AS, 4.017%, 10/10/47   346,000 341,090
Ser. 16-P6, Class A5, 3.72%, 12/10/49 W   423,000 392,865
Ser. 16-C3, Class A4, 3.154%, 11/15/49   746,000 694,992
FRB Ser. 14-GC21, Class XA, IO, 1.109%, 5/10/47 W   1,051,253 831
COMM Mortgage Trust      
FRB Ser. 14-CR17, Class C, 4.825%, 5/10/47 W   989,000 899,636
FRB Ser. 15-LC19, Class C, 4.352%, 2/10/48 W   342,000 318,046
Ser. 14-UBS4, Class AM, 3.968%, 8/10/47   1,107,000 1,044,352
FRB Ser. 15-CR22, Class AM, 3.603%, 3/10/48 W   418,000 395,574
FRB Ser. 14-UBS4, Class XA, IO, 1.208%, 8/10/47 W   7,766,095 13,120
FRB Ser. 14-CR20, Class XA, IO, 1.069%, 11/10/47 W   25,336,145 25,336
FRB Ser. 15-CR23, Class XA, IO, 0.981%, 5/10/48 W   17,462,941 86,978
FRB Ser. 15-CR22, Class XA, IO, 0.947%, 3/10/48 W   9,754,526 33,591
FRB Ser. 15-LC21, Class XA, IO, 0.763%, 7/10/48 W   28,059,120 132,854
CSAIL Commercial Mortgage Trust      
Ser. 19-C17, Class C, 3.934%, 9/15/52   213,000 163,016
Ser. 15-C2, Class A4, 3.504%, 6/15/57   278,000 271,110
Ser. 17-CX10, Class A3, 3.398%, 11/15/50   832,611 808,151
Ser. 16-C6, Class AS, 3.346%, 1/15/49   458,000 418,221
Ser. 15-C1, Class XA, IO, 0.944%, 4/15/50 W   17,713,398 39,708
CSMC Trust FRB Ser. 16-NXSR, Class AS, 4.049%, 12/15/49 W   651,000 579,549
DBUBS Mortgage Trust 144A FRB Ser. 11-LC3A, Class D, 5.516%, 8/10/44 W   1,118,225 1,050,002


18 Core Bond Fund



MORTGAGE-BACKED SECURITIES (16.2%)* cont. Principal
amount
Value
Commercial mortgage-backed securities cont.
Federal Home Loan Mortgage Corporation Multifamily Structured Pass Through Certificates FRB Ser. K743, Class X1, IO, 1.022%, 5/25/28 W   $10,224,484 $316,192
FS Rialto Issuer, Ltd. 144A FRB Ser. 21-FL3, Class A, (CME Term SOFR 1 Month + 1.36%), 6.684%, 11/16/36 (Cayman Islands)   959,264 955,588
Government National Mortgage Association      
FRB Ser. 21-17, IO, 1.051%, 1/16/61   5,954,371 429,733
FRB Ser. 20-190, IO, 1.05%, 11/16/62   5,625,491 417,342
GS Mortgage Securities Trust      
Ser. 14-GC24, Class AS, 4.162%, 9/10/47 W   408,000 400,354
Ser. 16-GS2, Class B, 3.759%, 5/10/49 W   544,000 506,764
JPMBB Commercial Mortgage Securities Trust FRB Ser. 14-C24, Class XA, IO, 0.959%, 11/15/47 W   31,056,728 19,625
JPMDB Commercial Mortgage Securities Trust FRB Ser. 18-C8, Class C, 4.899%, 6/15/51 W   358,000 284,182
JPMorgan Chase Commercial Mortgage Securities Trust Ser. 13-LC11, Class AS, 3.216%, 4/15/46   269,309 248,303
JPMorgan Chase Commercial Mortgage Securities Trust 144A FRB Ser. 12-LC9, Class D, 3.715%, 12/15/47 W   327,000 281,417
MF1 Multifamily Housing Mortgage, Ltd. 144A FRB Ser. 21-FL6, Class A, (CME Term SOFR 1 Month + 1.21%), 6.533%, 7/16/36 (Cayman Islands)   1,212,304 1,205,244
Morgan Stanley Bank of America Merrill Lynch Trust      
Ser. 16-C32, Class AS, 3.994%, 12/15/49 W   983,000 896,133
Ser. 15-C26, Class AS, 3.885%, 10/15/48 W   399,000 380,851
Ser. 15-C22, Class B, 3.883%, 4/15/48 W   506,000 478,500
FRB Ser. 15-C26, Class XA, IO, 1.105%, 10/15/48 W   12,568,367 79,497
Morgan Stanley Bank of America Merrill Lynch Trust 144A      
FRB Ser. 12-C5, Class E, 4.79%, 8/15/45 W   319,000 291,575
FRB Ser. 13-C10, Class F, 4.117%, 7/15/46 W   1,661,000 103,172
Morgan Stanley Capital I Trust      
FRB Ser. 18-L1, Class C, 4.941%, 10/15/51 W   1,050,056 885,240
FRB Ser. 16-UB12, Class XA, IO, 0.785%, 12/15/49 W   20,739,529 272,227
PFP, Ltd. 144A      
FRB Ser. 23-10, Class A, 7.681%, 9/16/38   1,229,000 1,238,001
FRB Ser. 21-8, Class A, 6.433%, 8/9/37 (Cayman Islands)   103,351 102,658
Ready Capital Mortgage Financing, LLC 144A      
FRB Ser. 22-FL10, Class AS, 8.387%, 10/25/39   502,000 499,598
FRB Ser. 23-FL12, Class A, 7.652%, 5/25/38   444,144 444,969
Shelter Growth CRE Issuer, Ltd. 144A FRB Ser. 23-FL5, Class A, 8.073%, 5/19/38 (Bermuda)   626,000 626,712
UBS Commercial Mortgage Trust      
Ser. 18-C14, Class A4, 4.448%, 12/15/51   681,000 629,154
Ser. 19-C16, Class B, 4.32%, 4/15/52 W   727,000 630,771
Ser. 18-C10, Class A4, 4.313%, 5/15/51   366,000 338,616
Ser. 17-C3, Class B, 4.092%, 8/15/50 W   313,000 271,723
Ser. 17-C1, Class AS, 3.724%, 6/15/50   472,000 431,188
Ser. 17-C1, Class A4, 3.46%, 6/15/50   724,000 668,576
FRB Ser. 17-C7, Class XA, IO, 1.139%, 12/15/50 W   12,863,604 370,458
FRB Ser. 18-C8, Class XA, IO, 0.965%, 2/15/51 W   13,058,680 339,318


Core Bond Fund 19



MORTGAGE-BACKED SECURITIES (16.2%)* cont. Principal
amount
Value
Commercial mortgage-backed securities cont.
Wachovia Bank Commercial Mortgage Trust FRB Ser. 06-C29, IO, 0.488%, 11/15/48 W   $82,500 $276
Wells Fargo Commercial Mortgage Trust      
Ser. 15-C31, Class AS, 4.049%, 11/15/48   640,000 614,792
Ser. 17-C39, Class B, 4.025%, 9/15/50   1,077,000 957,103
Ser. 19-C50, Class AS, 4.021%, 5/15/52   427,000 388,401
Ser. 17-RC1, Class AS, 3.844%, 1/15/60   762,000 712,941
Ser. 16-NXS6, Class A4, 2.918%, 11/15/49   300,000 281,391
Ser. 19-C52, Class A5, 2.892%, 8/15/52   261,000 227,108
FRB Ser. 14-LC16, Class XA, IO, 1.104%, 8/15/50 W   4,707,236 109
FRB Ser. 18-C43, Class XA, IO, 0.736%, 3/15/51 W   17,604,090 341,597
WF-RBS Commercial Mortgage Trust Ser. 14-C23, Class A5, 3.917%, 10/15/57   335,000 330,107
WF-RBS Commercial Mortgage Trust 144A Ser. 11-C4, Class D, 5.144%, 6/15/44 W   893,000 757,335
34,940,091
Residential mortgage-backed securities (non-agency) (8.2%)
A&D Mortgage Trust 144A      
Ser. 23-NQM5, Class A1, 7.049%, 11/25/68   741,417 749,468
Ser. 23-NQM3, Class A1, 6.733%, 7/25/68   1,827,977 1,827,809
Ser. 23-NQM2, Class A1, 6.132%, 5/25/68   1,475,611 1,458,347
Arroyo Mortgage Trust 144A Ser. 19-1, Class A3, 4.208%, 1/25/49 W   155,630 144,334
BRAVO Residential Funding Trust 144A      
Ser. 23-NQM6, Class A1, 6.602%, 9/25/63   833,132 830,797
Ser. 23-NQM5, Class A1, 6.505%, 6/25/63   240,886 241,225
Ser. 24-NQM2, Class A1, stepped-coupon 6.285% (7.285%, 2/1/28), 2/25/64 ††   1,861,567 1,856,672
Ser. 21-C, Class A1, 1.62%, 3/1/61   343,872 326,943
CIM Trust 144A Ser. 23-R4, Class A1, 5.00%, 5/25/62 W   480,237 460,452
Countrywide Alternative Loan Trust FRB Ser. 06-OA7, Class 1A1, 3.463%, 6/25/46 W   360,213 319,456
Federal Home Loan Mortgage Corporation      
Structured Agency Credit Risk Debt FRN Ser. 15-DNA1, Class B, (US 30 Day Average SOFR + 9.31%), 14.645%, 10/25/27   986,447 1,050,781
Structured Agency Credit Risk Debt FRN Ser. 17-HQA1, Class M2, (US 30 Day Average SOFR + 3.66%), 8.995%, 8/25/29   475,025 496,401
Structured Agency Credit Risk Debt FRN Ser. 17-DNA3, Class M2B, (US 30 Day Average SOFR + 2.61%), 7.945%, 3/25/30   361,000 372,636
Federal Home Loan Mortgage Corporation 144A      
Structured Agency Credit Risk Debt FRN Ser. 22-DNA5, Class M1A, (US 30 Day Average SOFR + 2.95%), 8.28%, 6/25/42   378,298 388,898
Structured Agency Credit Risk Debt FRN Ser. 22-HQA2, Class M1A, (US 30 Day Average SOFR + 2.65%), 7.98%, 7/25/42   684,412 701,094
Structured Agency Credit Risk Debt FRN Ser. 21-DNA2, Class M2, (US 30 Day Average SOFR + 2.30%), 7.63%, 8/25/33   732,077 749,073
Structured Agency Credit Risk Trust REMICs FRB Ser. 22-HQA3, Class M1A, (US 30 Day Average SOFR + 2.30%), 7.63%, 8/25/42   1,119,675 1,142,630
Structured Agency Credit Risk Trust REMICs FRB Ser. 22-DNA4, Class M1A, (US 30 Day Average SOFR + 2.20%), 7.53%, 5/25/42   69,916 71,008


20 Core Bond Fund



MORTGAGE-BACKED SECURITIES (16.2%)* cont. Principal
amount
Value
Residential mortgage-backed securities (non-agency) cont.
Federal Home Loan Mortgage Corporation 144A      
Structured Agency Credit Risk Trust REMICs FRB Ser. 22-DNA6, Class M1A, (US 30 Day Average SOFR + 2.15%), 7.48%, 9/25/42   $834,105 $844,010
Structured Agency Credit Risk Debt FRN Ser. 23-HQA2, Class M1A, (US 30 Day Average SOFR + 2.00%), 7.33%, 6/25/43   220,429 222,220
Structured Agency Credit Risk Trust REMICs FRB Ser. 23-HQA3, Class A1, (US 30 Day Average SOFR + 1.85%), 7.18%, 11/25/43   201,382 203,984
Structured Agency Credit Risk Trust REMICs FRB Ser. 22-DNA1, Class M1B, (US 30 Day Average SOFR + 1.85%), 7.18%, 1/25/42   347,000 349,831
Structured Agency Credit Risk Trust REMICs FRB Ser. 21-DNA1, Class M2, (US 30 Day Average SOFR + 1.80%), 7.13%, 1/25/51   18,002 18,189
Structured Agency Credit Risk Debt FRN Ser. 21-DNA7, Class M2, (US 30 Day Average SOFR + 1.80%), 7.13%, 11/25/41   253,000 254,605
Structured Agency Credit Risk Trust REMICs FRB Ser. 21-DNA5, Class M2, (US 30 Day Average SOFR + 1.65%), 6.98%, 1/25/34   79,602 80,062
Structured Agency Credit Risk Trust REMICs FRB Ser. 24-DNA1, Class A1, (US 30 Day Average SOFR + 1.35%), 6.68%, 2/25/44   238,119 238,416
Structured Agency Credit Risk Debt FRN Ser. 22-DNA2, Class M1A, (US 30 Day Average SOFR + 1.30%), 6.63%, 2/25/42   20,139 20,196
Structured Agency Credit Risk Trust REMICs FRB Ser. 22-DNA1, Class M1A, (US 30 Day Average SOFR + 1.00%), 6.33%, 1/25/42   387,148 387,148
Structured Agency Credit Risk Debt FRN Ser. 21-DNA7, Class M1, (US 30 Day Average SOFR + 0.85%), 6.18%, 11/25/41   163,008 163,007
Structured Agency Credit Risk Trust REMICs FRB Ser. 21-HQA3, Class M1, (US 30 Day Average SOFR + 0.85%), 6.18%, 9/25/41   233,668 232,424
Federal National Mortgage Association      
Connecticut Avenue Securities FRB Ser. 16-C01, Class 2M2, (US 30 Day Average SOFR + 7.06%), 12.395%, 8/25/28   13,022 13,764
Connecticut Avenue Securities FRB Ser. 16-C01, Class 1M2, (US 30 Day Average SOFR + 6.86%), 12.195%, 8/25/28   4,185 4,449
Connecticut Avenue Securities FRB Ser. 16-C02, Class 1M2, (US 30 Day Average SOFR + 6.11%), 11.445%, 9/25/28   39,796 41,605
Connecticut Avenue Securities FRB Ser. 16-C03, Class 2M2, (US 30 Day Average SOFR + 6.01%), 11.345%, 10/25/28   45,826 48,346
Connecticut Avenue Securities FRB Ser. 15-C04, Class 1M2, (US 30 Day Average SOFR + 5.81%), 11.145%, 4/25/28   558,983 588,964
Connecticut Avenue Securities FRB Ser. 17-C02, Class 2M2C, (US 30 Day Average SOFR + 3.76%), 9.095%, 9/25/29   135,000 141,750
Connecticut Avenue Securities Trust FRB Ser. 17-C06, Class 2M2C, (US 30 Day Average SOFR + 2.91%), 8.245%, 2/25/30   61,000 63,371
Connecticut Avenue Securities FRB Ser. 17-C06, Class 1M2B, (US 30 Day Average SOFR + 2.76%), 8.095%, 2/25/30   75,847 76,634
Connecticut Avenue Securities Trust FRB Ser. 18-C05, Class 1M2, (US 30 Day Average SOFR + 2.46%), 7.795%, 1/25/31   495,971 507,130
Connecticut Avenue Securities FRB Ser. 18-C02, Class 2M2, (US 30 Day Average SOFR + 2.31%), 7.645%, 8/25/30   22,953 23,491
Federal National Mortgage Association 144A      
Connecticut Avenue Securities Trust FRB Ser. 22-R02, Class 2M2, (US 30 Day Average SOFR + 3.00%), 8.33%, 1/25/42   1,300,000 1,334,125
Connecticut Avenue Securities Trust FRB Ser. 22-R07, Class 1M1, (US 30 Day Average SOFR + 2.95%), 8.28%, 6/25/42   1,742,000 1,794,521


Core Bond Fund 21




MORTGAGE-BACKED SECURITIES (16.2%)* cont. Principal
amount
Value
Residential mortgage-backed securities (non-agency) cont.
Federal National Mortgage Association 144A      
Connecticut Avenue Securities Trust FRB Ser. 22-R06, Class 1M1, (US 30 Day Average SOFR + 2.75%), 8.08%, 5/25/42   $1,622,151 $1,667,232
Connecticut Avenue Securities Trust FRB Ser. 22-R08, Class 1M1, (US 30 Day Average SOFR + 2.55%), 7.88%, 7/25/42   1,021,923 1,050,026
Connecticut Avenue Securities Trust FRB Ser. 22-R09, Class 2M1, (US 30 Day Average SOFR + 2.50%), 7.83%, 9/25/42   83,570 85,035
Connecticut Avenue Securities Trust FRB Ser. 22-R03, Class 1M1, (US 30 Day Average SOFR + 2.10%), 7.43%, 3/25/42   461,303 468,079
Connecticut Avenue Securities Trust FRB Ser. 22-R04, Class 1M1, (US 30 Day Average SOFR + 2.00%), 7.33%, 3/25/42   377,010 381,826
Connecticut Avenue Securities Trust FRB Ser. 23-R07, Class 2M1, (US 30 Day Average SOFR + 1.95%), 7.28%, 9/25/43   90,598 91,224
Connecticut Avenue Securities Trust FRB Ser. 22-R05, Class 2M1, (US 30 Day Average SOFR + 1.90%), 7.23%, 4/25/42   1,124,504 1,130,126
Connecticut Avenue Securities Trust FRB Ser. 22-R01, Class 1M2, (US 30 Day Average SOFR + 1.90%), 7.23%, 12/25/41   275,000 277,675
Connecticut Avenue Securities Trust FRB Ser. 23-R06, Class 1M1, (US 30 Day Average SOFR + 1.70%), 7.03%, 7/25/43   214,873 215,956
Connecticut Avenue Securities Trust FRB Ser. 21-R03, Class 1M2, (US 30 Day Average SOFR + 1.65%), 6.98%, 12/25/41   114,000 114,481
Connecticut Avenue Securities Trust FRB Ser. 22-R02, Class 2M1, (US 30 Day Average SOFR + 1.10%), 6.53%, 1/25/42   235,291 236,094
Connecticut Avenue Securities Trust FRB Ser. 24-R03, Class 2M1, (US 30 Day Average SOFR + 1.15%), 6.48%, 3/25/44   100,358 100,483
Connecticut Avenue Securities FRB Ser. 24-R02, Class 1M1, (US 30 Day Average SOFR + 1.10%), 6.43%, 2/25/44   20,988 20,988
GCAT Trust 144A Ser. 20-NQM2, Class A3, 2.935%, 4/25/65   197,332 184,512
Homeward Opportunities Fund I Trust 144A Ser. 20-2, Class A3, 3.196%, 5/25/65 W   647,000 611,403
Invitation Homes Trust 144A FRB Ser. 18-SFR4, Class A, (CME Term SOFR 1 Month + 1.21%), 6.535%, 1/17/38   600,789 600,977
JPMorgan Mortgage Trust 144A FRB Ser. 23-HE1, Class A1, (US 30 Day Average SOFR + 1.75%), 7.08%, 11/25/53   294,335 295,929
MFRA Trust 144A Ser. 23-INV2, Class A1, 6.775%, 10/25/58   1,148,829 1,159,128
Mill City Mortgage Loan Trust 144A      
Ser. 23-NQM2, Class A1, 6.24%, 12/25/67   607,535 613,534
Ser. 23-NQM1, Class A1, 6.05%, 10/25/67   385,686 381,953
OBX Trust 144A Ser. 23-NQM7, Class A1, 6.844%, 4/25/63   340,301 340,557
PRKCM Trust 144A Ser. 23-AFC2, Class A1, 6.482%, 6/25/58   1,894,237 1,918,813
Residential Accredit Loans, Inc. FRB Ser. 06-QO5, Class 1A1, (CME Term SOFR 1 Month + 0.54%), 5.861%, 5/25/46   580,309 501,967
Residential Mortgage Loan Trust 144A Ser. 20-2, Class A3, 2.911%, 5/25/60 W   381,000 342,415
ROC Mortgage Trust 144A Ser. 21-RTL1, Class A1, 3.487%, 8/25/26 W   493,665 482,558
Verus Securitization Trust 144A Ser. 23-INV2, Class A1, 6.443%, 8/25/68   1,778,419 1,795,061
35,908,298
Total mortgage-backed securities (cost $72,540,673) $70,848,389


22 Core Bond Fund



COLLATERALIZED LOAN OBLIGATIONS (3.6%)* Principal
amount
Value
AIMCO CLO 17, Ltd. 144A FRB Ser. 22-17A, Class A, (CME Term SOFR 3 Month + 1.52%), 6.845%, 7/20/35 (Jersey)   $400,000 $400,373
Ares LXIV CLO, Ltd. 144A FRB Ser. 22-64A, Class A1, (CME Term SOFR 3 Month + 1.44%), 6.769%, 4/15/35 (Cayman Islands)   500,000 500,043
Balboa Bay Loan Funding, Ltd. 144A FRB Ser. 21-1A, Class B, (CME Term SOFR 3 Month + 1.91%), 7.236%, 7/20/34   500,000 497,163
Birch Grove CLO 4, Ltd. 144A FRB Ser. 22-4A, Class B1, (CME Term SOFR 3 Month + 2.10%), 7.429%, 4/15/34 (Cayman Islands)   500,000 501,230
Birch Grove CLO 8, Ltd. 144A FRB Ser. 24-8A, Class A1, (CME Term SOFR 3 Month + 1.63%), 6.928%, 4/20/37 (Jersey)   500,000 503,261
Black Diamond CLO, Ltd. 144A FRB Ser. 21-1A, Class A1A, (CME Term SOFR 3 Month + 1.51%), 6.836%, 11/22/34 (Cayman Islands)   250,000 249,487
BlueMountain CLO XXXII, Ltd. 144A FRB Ser. 21-32A, Class A, (CME Term SOFR 3 Month + 1.43%), 6.76%, 10/15/34 (Cayman Islands)   369,000 369,195
CIFC Funding, Ltd. 144A FRB Ser. 21-1A, Class BRR, (CME Term SOFR 3 Month + 1.96%), 7.279%, 10/21/31   800,000 800,946
Crown Point CLO 10, Ltd. 144A FRB Ser. 21-10A, Class A, (CME Term SOFR 3 Month + 1.43%), 6.756%, 7/20/34 (Cayman Islands)   500,000 500,343
Elevation CLO, Ltd. 144A FRB Ser. 21-13A, Class A1, (CME Term SOFR 3 Month + 1.45%), 6.78%, 7/15/34 (Cayman Islands)   500,000 500,003
Hayfin US XII, Ltd. 144A FRB Ser. 18-9A, Class BR, (CME Term SOFR 3 Month + 2.06%), 7.386%, 4/28/31 (Cayman Islands)   650,000 650,064
Hayfin US XIV, Ltd. 144A FRB Ser. 21-14A, Class A1, (CME Term SOFR 3 Month + 1.49%), 6.816%, 7/20/34 (Cayman Islands)   450,000 450,192
ICG US CLO, Ltd. 144A FRB Ser. 21-1A, Class ARR, (CME Term SOFR 3 Month + 1.43%), 6.756%, 7/28/34   600,000 600,296
Jamestown CLO IX, Ltd. 144A FRB Ser. 21-9A, Class A1RR, (CME Term SOFR 3 Month + 1.50%), 6.825%, 7/25/34 (Cayman Islands)   400,000 400,277
Jamestown CLO IX, Ltd. 144A FRB Ser. 21-9A, Class A2RR, (CME Term SOFR 3 Month + 2.11%), 7.435%, 7/25/34 (Cayman Islands)   500,000 500,500
Magnetite XXXVII, Ltd. 144A FRB Ser. 23-37A, Class A, (CME Term SOFR 3 Month + 1.65%), 6.975%, 10/20/36 (Cayman Islands)   750,000 754,809
Nassau, Ltd. 144A FRB Ser. 21-1A, Class A1, (CME Term SOFR 3 Month + 1.51%), 6.84%, 8/26/34 (Cayman Islands)   1,000,000 999,498
Nassau, Ltd. 144A FRB Ser. 21-1A, Class A1R, (CME Term SOFR 3 Month + 1.55%), 6.88%, 1/15/35 (Cayman Islands)   250,000 249,122
Palmer Square CLO, Ltd. 144A FRB Ser. 21-2A, Class A, (CME Term SOFR 3 Month + 1.41%), 6.74%, 7/15/34 (Cayman Islands)   500,000 500,630
Park Avenue Institutional Advisers CLO, Ltd. 144A FRB Ser. 21-1A, Class A1A, (CME Term SOFR 3 Month + 1.65%), 6.976%, 1/20/34 (Cayman Islands)   850,000 852,384
Rockford Tower CLO, Ltd. 144A FRB Ser. 21-2A, Class A1, (CME Term SOFR 3 Month + 1.42%), 6.746%, 7/20/34 (Cayman Islands)   400,000 400,520
Rockland Park CLO, Ltd. 144A FRB Ser. 21-1A, Class B, (CME Term SOFR 3 Month + 1.91%), 7.236%, 4/20/34 (Cayman Islands)   650,000 651,021
RRX 3, Ltd. 144A FRB Ser. 21-3A, Class A1, (CME Term SOFR 3 Month + 1.58%), 6.91%, 4/15/34 (Cayman Islands)   500,000 500,859
Shackleton XIV CLO, Ltd. 144A FRB Ser. 21-14A, Class BR, (CME Term SOFR 3 Month + 2.06%), 7.386%, 7/20/34 (Cayman Islands)   500,000 500,887
Sound Point CLO XXVI, Ltd. 144A FRB Ser. 21-1A, Class AR, (CME Term SOFR 3 Month + 1.43%), 6.756%, 7/20/34 (Cayman Islands)   724,000 724,167
TCW CLO, Ltd. 144A FRB Ser. 21-2A, Class AS, (CME Term SOFR 3 Month + 1.44%), 6.765%, 7/25/34 (Cayman Islands)   300,000 300,527


Core Bond Fund 23




COLLATERALIZED LOAN OBLIGATIONS (3.6%)* cont. Principal
amount
Value
Venture 37 CLO, Ltd. 144A FRB Ser. 21-37A, Class A1R, (CME Term SOFR 3 Month + 1.41%), 6.74%, 7/15/32 (Cayman Islands)   $200,000 $200,348
Venture CLO XV, Ltd. 144A FRB Ser. 21-15A, Class AR3, (CME Term SOFR 3 Month + 1.44%), 6.77%, 7/15/32 (Cayman Islands)   500,000 500,233
Venture XXVII CLO, Ltd. 144A FRB Ser. 21-27A, Class BR, (CME Term SOFR 3 Month + 1.86%), 7.186%, 7/20/30 (Cayman Islands)   350,000 349,646
Warwick Capital CLO 3, Ltd. 144A FRB Ser. 24-3A, Class A1, (CME Term SOFR 3 Month + 1.65%), 6.973%, 4/20/37 (Jersey)   450,000 450,382
Zais CLO 16, Ltd. 144A FRB Ser. 21-16A, Class A1R, (CME Term SOFR 3 Month + 1.68%), 7.006%, 10/20/34   500,000 500,251
Total collateralized loan obligations (cost $15,735,587) $15,858,657

ASSET-BACKED SECURITIES (3.4%)* Principal
amount
Value
American Express Credit Account Master Trust Ser. 22-3, Class A, 3.75%, 8/15/27   $1,496,000 $1,463,667
BMW Vehicle Owner Trust Ser. 23-A, Class A3, 5.47%, 2/25/28   500,000 499,968
Capital One Multi-Asset Execution Trust      
Ser. 23-A1, Class A, 4.42%, 5/15/28   500,000 491,337
Ser. 22-A2, Class A, 3.49%, 5/15/27   523,000 511,996
Chase Auto Owner Trust 144A Ser. 22-AA, Class A4, 3.99%, 3/27/28   180,000 173,859
Citizens Auto Receivables Trust 144A Ser. 24-1, Class A3, 5.11%, 4/17/28   1,998,000 1,986,428
Discover Card Execution Note Trust Ser. 22-A3, Class A3, 3.56%, 7/15/27   483,000 471,819
GM Financial Consumer Automobile Receivables Trust Ser. 23-3, Class A3, 5.45%, 6/16/28   2,000,000 2,000,444
Golden Credit Card Trust 144A Ser. 22-4A, Class A, 4.31%, 9/15/27   1,444,000 1,419,024
Harley-Davidson Motorcycle Trust      
Ser. 23-B, Class A3, 5.69%, 8/15/28   900,000 903,068
Ser. 22-A, Class A3, 3.06%, 2/15/27   241,365 237,349
Honda Auto Receivables Owner Trust Ser. 23-3, Class A3, 5.41%, 2/18/28   1,727,000 1,733,243
Hyundai Auto Receivables Trust Ser. 23-B, Class A3, 5.48%, 4/17/28   1,000,000 998,963
Station Place Securitization Trust 144A FRB Ser. 23-2, Class A1, (CME Term SOFR 1 Month + 0.95%), 6.266%, 6/29/24   825,000 824,864
Toyota Auto Receivables Owner Trust Ser. 23-C, Class A3, 5.16%, 4/17/28   546,000 542,839
World Omni Auto Receivables Trust Ser. 24-A, Class A3, 4.86%, 3/15/29   505,000 500,148
Total asset-backed securities (cost $14,761,131) $14,759,016

SHORT-TERM INVESTMENTS (4.0%)* Shares Value
Putnam Short Term Investment Fund Class P 5.48% L 17,345,636 $17,345,636
Total short-term investments (cost $17,345,636) $17,345,636

TOTAL INVESTMENTS
Total investments (cost $520,844,850) $506,972,947


24 Core Bond Fund




Key to holding’s abbreviations
BKNT Bank Note
CME Chicago Mercantile Exchange
DAC Designated Activity Company
FRB Floating Rate Bonds: The rate shown is the current interest rate at the close of the reporting period. Rates may be subject to a cap or floor. For certain securities, the rate may represent a fixed rate currently in place 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. Rates may be subject to a cap or floor. For certain securities, the rate may represent a fixed rate currently in place at the close of the reporting period.
GMTN Global Medium Term Notes
IO Interest Only
MTN Medium Term Notes
REGS Securities sold under Regulation S may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.
REMICs Real Estate Mortgage Investment Conduits
SOFR Secured Overnight Financing Rate
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, 2023 through April 30, 2024 (the reporting period). Within the following notes to the portfolio, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Franklin Resources, Inc., and references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures.
* Percentages indicated are based on net assets of $437,716,062.
†† The interest rate and date shown parenthetically represent the new interest rate to be paid and the date the fund will begin accruing interest at this rate.
Φ This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain TBA commitments at the close of the reporting period. Collateral at period end totaled $1,331,726 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 8).
L Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
R Real Estate Investment Trust.
W The rate shown represents the weighted average coupon associated with the underlying mortgage pools. Rates may be subject to a cap or floor.
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.
See Note 1 to the financial statements regarding TBA commitments.
The dates shown on debt obligations are the original maturity dates.


Core Bond Fund 25



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 $— $14,759,016 $—
Collateralized loan obligations 15,858,657
Corporate bonds and notes 133,525,964
Mortgage-backed securities 70,848,389
U.S. government and agency mortgage obligations 143,234,553
U.S. treasury obligations 111,400,732
Short-term investments 17,345,636
Totals by level $— $506,972,947 $—


The accompanying notes are an integral part of these financial statements.


26 Core Bond Fund



Statement of assets and liabilities 4/30/24 (Unaudited)

ASSETS   
Investment in securities, at value (Note 1):   
Unaffiliated issuers (identified cost $503,499,214)  $489,627,311 
Affiliated issuers (identified cost $17,345,636) (Note 5)  17,345,636 
Interest and other receivables  3,501,639 
Receivable for shares of the fund sold  2,791,482 
Receivable for investments sold  375,288 
Receivable for sales of delayed delivery securities (Note 1)  1,918,011 
Total assets  515,559,367 
 
LIABILITIES   
Payable for investments purchased  1,946,178 
Payable for purchases of TBA securities (Note 1)  74,823,672 
Payable for shares of the fund repurchased  742,152 
Payable for compensation of Manager (Note 2)  194,941 
Payable for Trustee compensation and expenses (Note 2)  102,843 
Payable for distribution fees (Note 2)  32,123 
Other accrued expenses  1,396 
Total liabilities  77,843,305 
 
Net assets  $437,716,062 
 
REPRESENTED BY   
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)  $642,499,602 
Total distributable earnings (Note 1)  (204,783,540) 
Total — Representing net assets applicable to capital shares outstanding  $437,716,062 
 
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE   
Net asset value and redemption price per class A share   
($129,241,448 divided by 16,327,441 shares)  $7.92 
Offering price per class A share (100/96.00 of $7.92)*  $8.25 
Net asset value and offering price per class B share ($105,750 divided by 13,387 shares)**  $7.90 
Net asset value and offering price per class C share ($6,029,308 divided by 764,439 shares)**  $7.89 
Net asset value, offering price and redemption price per class R share   
($649,716 divided by 81,478 shares)  $7.97 
Net asset value, offering price and redemption price per class R6 share   
($1,802,938 divided by 226,982 shares)  $7.94 
Net asset value, offering price and redemption price per class Y share   
($299,886,902 divided by 37,885,278 shares)  $7.92 

 

*On single retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.

**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

The accompanying notes are an integral part of these financial statements.

Core Bond Fund 27 

 



Statement of operations Six months ended 4/30/24 (Unaudited)

INVESTMENT INCOME   
Interest (including interest income of $556,813 from investments in affiliated issuers) (Note 5)  $10,877,971 
Total investment income  10,877,971 
 
EXPENSES   
Compensation of Manager (Note 2)  792,472 
Distribution fees (Note 2)  188,927 
Other  2,729 
Total expenses  984,128 
Expense reduction (Note 2)  (4,543) 
Net expenses  979,585 
 
Net investment income  9,898,386 
 
REALIZED AND UNREALIZED GAIN (LOSS)   
Net realized gain (loss) on:   
Securities from unaffiliated issuers (Notes 1 and 3)  1,150,132 
Swap contracts (Note 1)  (27,982) 
Total net realized gain  1,122,150 
Change in net unrealized appreciation (depreciation) on:   
Securities from unaffiliated issuers and TBA sale commitments  7,302,455 
Total change in net unrealized appreciation  7,302,455 
 
Net gain on investments  8,424,605 
 
Net increase in net assets resulting from operations  $18,322,991 

 

The accompanying notes are an integral part of these financial statements.

28 Core Bond Fund 

 



Statement of changes in net assets

INCREASE (DECREASE) IN NET ASSETS  Six months ended 4/30/24*  Year ended 10/31/23 
Operations     
Net investment income  $9,898,386  $14,016,443 
Net realized gain (loss) on investments     
and foreign currency transactions  1,122,150  (10,048,511) 
Change in net unrealized appreciation (depreciation)     
of investments and assets and liabilities     
in foreign currencies  7,302,455  (9,123,675) 
Net increase (decrease) in net assets resulting     
from operations  18,322,991  (5,155,743) 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (3,097,137)  (6,581,412) 
Class B  (3,440)  (16,796) 
Class C  (121,891)  (262,824) 
Class P    (5,615,485) 
Class R  (14,862)  (25,395) 
Class R6  (71,681)  (101,392) 
Class Y  (6,996,025)  (6,211,194) 
Increase from capital share transactions (Note 4)  87,589,285  6,371,869 
Total increase (decrease) in net assets  95,607,240  (17,598,372) 
 
NET ASSETS     
Beginning of period  342,108,822  359,707,194 
End of period  $437,716,062  $342,108,822 

 

*Unaudited.

The accompanying notes are an integral part of these financial statements.

Core Bond Fund 29 

 



Financial highlights
(For a common share outstanding throughout the period)

  INVESTMENT OPERATIONS  LESS DISTRIBUTIONS  RATIOS AND SUPPLEMENTAL DATA 
                        Ratio of net   
  Net asset    Net realized                Ratio  investment   
  value,    and unrealized  Total from  From net      Net asset  Total return  Net assets,  of expenses  income (loss)  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  From  Total  value, end  at net asset  end of period  to average  to average  turnover 
Period ended­  of period­  income (loss)a  on investments­  operations­  income­  return of capital­  distributions  of period­  value (%)b  (in thousands)  net assets (%)c  net assets (%)  (%)d 
Class A­                           
April 30, 2024**  $7.68­  .19­  .25­  .44­  (.20)  —­  (.20)  $7.92­  5.68*  $129,241­  .32*  2.34*  208* 
October 31, 2023­  8.30­  .39­  (.49)  (.10)  (.52)  —­  (.52)  7.68­  (1.51)  115,240­  .66­  4.79­  967­ 
October 31, 2022  9.04­  .37­  (.68)  (.31)  (.43)  —­  (.43)  8.30­  (3.51)  105,223­  .71­  4.30­  997­ 
October 31, 2021  9.40­  .32­  (.38)  (.06)  (.30)  —­  (.30)  9.04­  (.73)  133,135­  .77­  3.42­  908­ 
October 31, 2020  9.83­  .29­  (.36)  (.07)  (.23)  (.13)  (.36)  9.40­  (.67)  139,880­  .78­  3.05­  844­ 
October 31, 2019  9.73­  .34­  .22­  .56­  (.46)  —­  (.46)  9.83­  5.93­  151,339­  .86­  3.49­  632­ 
Class B                           
April 30, 2024**   $7.67­  .18­  .24­  .42­  (.19)  —­  (.19)  $7.90­  5.45*  $106­  .42*  2.24*  208* 
October 31, 2023­  8.28­  .40­e  (.51)  (.11)  (.50)  —­  (.50)  7.67­  (1.60)  156­  .86­  4.85­e  967­ 
October 31, 2022  9.01­  .36­  (.68)  (.32)  (.41)  —­  (.41)  8.28­  (3.64)  362­  .91­  4.14­  997­ 
October 31, 2021  9.37­  .31­  (.39)  (.08)  (.28)  —­  (.28)  9.01­  (.97)  616­  .97­  3.24­  908­ 
October 31, 2020  9.80­  .28­  (.37)  (.09)  (.22)  (.12)  (.34)  9.37­  (.91)  1,033­  .98­  2.97­  844­ 
October 31, 2019  9.70­  .32­  .21­  .53­  (.43)  —­  (.43)  9.80­  5.69­  1,699­  1.06­  3.37­  632­ 
Class C                           
April 30, 2024**   $7.66­  .16­  .24­  .40­  (.17)  —­  (.17)  $7.89­  5.19 *  $6,029­  .69*  1.97*  208* 
October 31, 2023­  8.27­  .32­e  (.48)  (.16)  (.45)  —­  (.45)  7.66­  (2.14)  4,580­  1.41­  3.90­e  967­ 
October 31, 2022  9.00­  .29­e  (.65)  (.36)  (.37)  —­  (.37)  8.27­  (4.16)  5,097­  1.46­  3.38­e  997­ 
October 31, 2021  9.36­  .24­  (.37)  (.13)  (.23)  —­  (.23)  9.00­  (1.52)  9,014­  1.52­  2.53­  908­ 
October 31, 2020  9.79­  .22­  (.36)  (.14)  (.19)  (.10)  (.29)  9.36­  (1.44)  24,205­  1.53­  2.37­  844­ 
October 31, 2019  9.70­  .27­  .20­  .47­  (.38)  —­  (.38)  9.79­  5.04­  40,918­  1.61­  2.76­  632­ 
Class R                           
April 30, 2024**   $7.74­  .18­  .24­  .42­  (.19)  —­  (.19)  $7.97­  5.35*  $650­  .44*  2.22*  208* 
October 31, 2023­  8.35­  .37­  (.49)  (.12)  (.49)  —­  (.49)  7.74­  (1.66)  607­  .91­  4.52­  967­ 
October 31, 2022  9.09­  .36­  (.69)  (.33)  (.41)  —­  (.41)  8.35­  (3.76)  392­  .96­  4.12­  997­ 
October 31, 2021  9.45­  .30­  (.38)  (.08)  (.28)  —­  (.28)  9.09­  (.97)  334­  1.02­  3.15­  908­ 
October 31, 2020  9.88­  .26­  (.35)  (.09)  (.22)  (.12)  (.34)  9.45­  (.91)  355­  1.03­  2.77­  844­ 
October 31, 2019  9.78­  .31­  .22­  .53­  (.43)  —­  (.43)  9.88­  5.64­  388­  1.11­  3.20­  632­ 
Class R6                           
April 30, 2024**   $7.71­  .20­  .24­  .44­  (.21)  —­  (.21)  $7.94­  5.69*  $1,803­  .19*  2.47*  208* 
October 31, 2023­  8.33­  .41­  (.49)  (.08)  (.54)  —­  (.54)  7.71­  (1.22)  2,896­  .41­  5.01­  967­ 
October 31, 2022  9.07­  .40­  (.68)  (.28)  (.46)  —­  (.46)  8.33­  (3.24)  1,214­  .46­  4.59­  997­ 
October 31, 2021  9.43­  .35­  (.39)  (.04)  (.32)  —­  (.32)  9.07­  (.47)  1,509­  .52­  3.66­  908­ 
October 31, 2020  9.86­  .31­  (.35)  (.04)  (.25)  (.14)  (.39)  9.43­  (.42)  10,989­  .53­  3.29­  844­ 
October 31, 2019  9.76­  .36­  .22­  .58­  (.48)  —­  (.48)  9.86­  6.17­  9,865­  .61­  3.74­  632­ 

 

See notes to financial highlights at the end of this section.

The accompanying notes are an integral part of these financial statements.

30 Core Bond Fund  Core Bond Fund 31 

 



Financial highlights cont.

  INVESTMENT OPERATIONS  LESS DISTRIBUTIONS  RATIOS AND SUPPLEMENTAL DATA 
                        Ratio of net   
  Net asset    Net realized                Ratio  investment   
  value,    and unrealized  Total from  From net      Net asset  Total return  Net assets,  of expenses  income (loss)  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  From  Total  value, end  at net asset  end of period  to average  to average  turnover 
Period ended­  of period­  income (loss)a  on investments­  operations­  income­  return of capital­  distributions  of period­  value (%)b  (in thousands)  net assets (%)c  net assets (%)  (%)d 
Class Y                           
April 30, 2024**   $7.68­  .20­  .25­  .45­  (.21)  —­  (.21)  $7.92­  5.84*  $299,887­  .19*  2.47*  208* 
October 31, 2023­  8.30­  .41­  (.49)  (.08)  (.54)  —­  (.54)  7.68­  (1.22)  218,629­  .41­  5.01­  967­ 
October 31, 2022  9.04­  .40­  (.68)  (.28)  (.46)  —­  (.46)  8.30­  (3.25)  67,037­  .46­  4.59­  997­ 
October 31, 2021  9.40­  .35­  (.39)  (.04)  (.32)  —­  (.32)  9.04­  (.48)  101,933­  .52­  3.70­  908­ 
October 31, 2020  9.83­  .32­  (.36)  (.04)  (.25)  (.14)  (.39)  9.40­  (.42)  143,770­  .53­  3.38­  844­ 
October 31, 2019  9.74­  .37­  .20­  .57­  (.48)  —­  (.48)  9.83­  6.08­  194,904­  .61­  3.77­  632­ 

 

Before February 28, 2023, the fund was managed with a materially different investment strategy and may have achieved materially different performance results under its current investment strategy from that shown for periods before this date.

* Not annualized.

** Unaudited.

a Per share net investment income (loss) has been determined on the basis of the weighted average number of shares outstanding during the period.

b Total return assumes dividend reinvestment and does not reflect the effect of sales charges.

c Includes amounts paid through expense offset and/or brokerage/service arrangements, if any (Note 2). Also excludes acquired fund fees and expenses, if any.

d Portfolio turnover includes TBA purchase and sale commitments.

e The net investment income ratio and per share amount shown for the period ending may not correspond with the expected class differences for the period due to the timing of subscriptions into the class or redemptions out of the class.

The accompanying notes are an integral part of these financial statements.

32 Core Bond Fund  Core Bond Fund 33 

 



Notes to financial statements 4/30/24 (Unaudited)

Unless otherwise noted, the “reporting period” represents the period from November 1, 2023 through April 30, 2024. The following table defines commonly used references within the Notes to financial statements:

References to  Represent 
Franklin Templeton  Franklin Resources, Inc. 
JPMorgan  JPMorgan Chase Bank, N.A. 
OTC  Over-the-counter 
PAC  The Putnam Advisory Company, LLC, an affiliate of Putnam Management 
PIL  Putnam Investments Limited, an affiliate of Putnam Management 
Putnam Management  Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned 
  subsidiary of Franklin Templeton 
SEC  Securities and Exchange Commission 
State Street  State Street Bank and Trust Company 

 

Putnam Core Bond Fund (the fund) is a diversified series of Putnam Funds Trust (the Trust), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The goal of the fund is to seek high current income consistent with what Putnam Management believes to be prudent risk. The fund invests mainly in a diversified portfolio of fixed-income securities of governments and private companies that are investment-grade in quality with intermediate- to long-term maturities (three years or longer). Investment-grade securities are rated at least BBB or its equivalent at the time of purchase by a nationally recognized securities rating organization, or are unrated investments that Putnam Management believes are of comparable quality. The fund may invest in below-investment-grade investments, however, the fund will not invest in securities that are rated lower than B or its equivalent by each rating agency that is rating the investment, or that are unrated securities that Putnam Management believes are of comparable quality. The fund will not necessarily sell an investment if its rating is reduced (or increased) after purchase. Putnam Management may consider, among other factors, a company’s or issuer’s credit, interest rate, liquidity and prepayment risks, as well as general market conditions, when deciding whether to buy or sell investments. Under normal circumstances, Putnam Management will invest at least 80% of the fund’s net assets in bonds (bonds include any debt instrument, and may be represented by other investment instruments, including derivatives). This policy may be changed only after 60 days’ notice to shareholders. In addition to bonds, the fund may also invest in other fixed-income instruments. The fund may also use derivatives, such as futures, options, certain foreign currency transactions and swap contracts, for both hedging and non-hedging purposes.

The fund offers the following share classes. The expenses for each class of shares may differ based on the distribution and investor servicing fees of each class, which are identified in Note 2.

Share class  Sales charge  Contingent deferred sales charge  Conversion feature 
    1.00% on certain redemptions of shares   
Class A  Up to 4.00%  bought with no initial sales charge  None 
      Converts to class A shares 
Class B*  None  1.00% phased out over two years  after 8 years 
      Converts to class A shares 
Class C  None  1.00% eliminated after one year  after 8 years 
Class R  None  None  None 
Class R6  None  None  None 
Class Y  None  None  None 

 

* Purchases of class B shares are closed to new and existing investors except by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment.

Not available to all investors.

34 Core Bond Fund 

 



In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.

The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.

Under the Trust’s Agreement and Declaration of Trust, any claims asserted by a shareholder against or on behalf of the Trust (or its series), including claims against Trustees and Officers, must be brought in courts located within the Commonwealth of Massachusetts.

Note 1: Significant accounting policies

The fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.

Investment income, realized and unrealized gains and losses and expenses of the fund are borne pro-rata based on the relative net assets of each class to the total net assets of the fund, except that each class bears expenses unique to that class (including the distribution fees applicable to such classes). Each class votes as a class only with respect to its own distribution plan or other matters on which a class vote is required by law or determined by the Trustees. If the fund were liquidated, shares of each class would receive their pro-rata share of the net assets of the fund. In addition, the Trustees declare separate dividends on each class of shares.

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.

Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under Accounting Standards Codification 820 Fair Value Measurements and Disclosures (ASC 820). If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security.

Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.

Market quotations are not considered to be readily available for certain debt obligations (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.

Core Bond Fund 35 

 



Many securities markets and exchanges outside the U.S. close prior to the scheduled close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value certain foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. The foreign equity securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate.

To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security’s fair value, the security will be valued at fair value by Putnam Management, which has been designated as valuation designee pursuant to Rule 2a–5 under the Investment Company Act of 1940, 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.

Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.

Interest income, net of any applicable withholding taxes, if any, is recorded on the accrual basis. Amortization and accretion of premiums and discounts on debt securities, if any, is recorded on the accrual basis.

Dividend income, net of any applicable withholding taxes, is recognized on the ex-dividend date except that certain dividends from foreign securities, if any, are recognized as soon as the fund is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Dividends representing a return of capital or capital gains, if any, are reflected as a reduction of cost and/or as a realized gain.

Securities purchased or sold on a delayed delivery basis may be settled at a future date beyond customary settlement time; interest income is accrued based on the terms of the securities. Losses may arise due to changes in the fair value of the underlying securities or if the counterparty does not perform under the contract.

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.

Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The fair value of foreign securities, currency holdings, and other assets and liabilities is recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when earned or incurred. The fund does not isolate that portion of realized or unrealized gains or losses resulting from changes in the foreign exchange rate on investments from fluctuations arising from changes in the market prices of the securities. Such gains and losses are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net realized exchange

36 Core Bond Fund 

 



gains or losses on disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions and the difference between the amount of investment income and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign currencies arise from changes in the value of assets and liabilities other than investments at the period end, resulting from changes in the exchange rate.

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.

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 in variation margin on the Statement of assets and liabilities and 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. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

OTC and centrally cleared interest rate swap contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.

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.

Core Bond Fund 37 

 



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.

TBA purchase commitments outstanding at period end, if any, are listed within the fund’s portfolio and TBA sale commitments outstanding at period end, if any, are listed after the fund’s portfolio.

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 pledged 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 did not have a net liability position on open derivative contracts subject to the Master Agreements.

Interfund lending The fund, along with other Putnam funds, may participate in an interfund lending program pursuant to an exemptive order issued by the SEC. This program allows the fund to borrow from or lend to other Putnam funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. Interest earned or paid on the interfund lending transaction will be based on the average of certain current market rates. During the reporting period, the fund did not utilize the program.

Lines of credit The fund participates, along with other Putnam funds, in a $320 million syndicated unsecured committed line of credit, provided by State Street ($160 million) and JPMorgan ($160 million), and a $235.5 million unsecured uncommitted line of credit, provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund’s borrowing at a rate equal to 1.25% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the committed line of credit and 1.30% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the uncommitted line of credit. A closing fee equal to 0.04% of the committed line of credit and 0.04% of the uncommitted line of credit has been paid by the participating funds and a $75,000 fee has been paid by the participating funds to State Street as agent of the syndicated committed line of credit. In addition, a commitment fee of 0.21% per annum on any unutilized portion of the committed line of credit is allocated to the participating funds based on their relative net assets and paid quarterly. During the reporting period, the fund had no borrowings against these arrangements.

Federal taxes It is the policy of the fund to distribute all of its taxable income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.

The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains

38 Core Bond Fund 

 



or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

The fund may also be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. In some cases, the fund may be entitled to reclaim all or a portion of such taxes, and such reclaim amounts, if any, are reflected as an asset on the fund’s books. In many cases, however, the fund may not receive such amounts for an extended period of time, depending on the country of investment.

Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred for an unlimited period and the carry forwards will retain their character as either short-term or long-term capital losses. At October 31, 2023, the fund had the following capital loss carryovers available, to the extent allowed by the Code, to offset future net capital gain, if any:

  Loss carryover   
Short-term  Long-term  Total 
$96,402,972  $95,184,916  $191,587,888 

 

Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The aggregate identified cost on a tax basis is $521,886,127, resulting in gross unrealized appreciation and depreciation of $1,054,524 and $15,967,704, respectively, or net unrealized depreciation of $14,913,180.

Distributions to shareholders Distributions to shareholders from net investment income, if any, are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.

Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund.

Note 2: Management fee, administrative services and other transactions

The fund pays Putnam Management a monthly base fee equal to 0.39% of the monthly average of the fund’s net asset value. In return for this fee, Putnam Management provides investment management and investor servicing and bears the fund’s organizational and operating expenses, excluding performance fee adjustments, payments under the fund’s distribution plan, brokerage, interest, taxes, investment related expenses, extraordinary expenses and acquired fund fees and expenses.

For the period March 1, 2023 through August 31, 2024, fund’s management fee will be the lesser of (i) the monthly fee of 0.39% of the monthly average of the fund’s net asset value and (ii) the fee that the fund would have paid under the previous management contract after giving effect to any performance adjustment.

Prior to March 1, 2023, under the previous management contract, the fund paid Putnam Management a monthly base fee equal to 0.60% of the monthly average of the fund’s net asset value. This fee was also increased or decreased each month by an amount based on the performance of the fund. The amount of the increase or decrease was calculated monthly based on a performance adjustment rate that was equal to 0.04 multiplied by the difference between the fund’s annualized performance (measured by the fund’s class A shares) and the annualized performance of the ICE BofA U.S. Treasury Bill Index plus 3.00% over the thirty-six month period then ended (the performance period). The maximum annualized performance adjustment rate was +/- 0.12%. Each month, the performance adjustment rate was multiplied by the fund’s average net assets over the performance period and the result was divided by twelve. The resulting dollar amount was added to, or subtracted from, the base fee for that month. The monthly base fee was determined based on the fund’s average net assets for the month, while the performance adjustment was determined based on the fund’s average net assets over the

Core Bond Fund 39 

 



thirty-six month performance period. This means it was possible that, if the fund underperformed significantly over the performance period, and the fund’s assets had declined significantly over that period, the negative performance adjustment may have exceeded the base fee. In this event, Putnam Management would have made a payment to the fund.

Because the performance adjustment is based on the fund’s performance relative to its applicable benchmark index, and not its absolute performance, the performance adjustment could increase Putnam Management’s fee even if the fund’s shares lose value during the performance period provided that the fund outperformed its benchmark index, and could decrease Putnam Management’s fee even if the fund’s shares increase in value during the performance period provided that the fund underperformed its benchmark index.

For the reporting period, the management fee represented an effective rate (excluding the impact of any expense waiver in effect) of 0.194% of the fund’s average net assets and no adjustment based on performance.

PIL is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.20% of the average net assets of the portion of the fund managed by PIL.

PAC is authorized by the Trustees to manage a separate portion of the assets of the fund, as designated from time to time by Putnam Management or PIL. PAC did not manage any portion of the assets of the fund during the reporting period. If Putnam Management or PIL were to engage the services of PAC, Putnam Management or PIL, as applicable, would pay a quarterly sub-advisory fee to PAC for its services at the annual rate of 0.20% of the average net assets of the portion of the fund’s assets for which PAC is engaged as sub-adviser.

On January 1, 2024, a subsidiary of Franklin Templeton acquired Putnam U.S. Holdings I, LLC (“Putnam Holdings”), the parent company of Putnam Management, PIL and PAC, in a stock and cash transaction (the “Transaction”). As a result of the Transaction, Putnam Management, PIL and PAC became indirect, wholly-owned subsidiaries of Franklin Templeton. The Transaction also resulted in the automatic termination of the investment management contract between the fund and Putnam Management, the sub-management contract for the fund between Putnam Management and PIL, and the sub-advisory contract for the fund among Putnam Management, PIL and PAC that were in place for the fund before the Transaction (together, the “Previous Advisory Contracts”). However, for the period from January 1, 2024 until January 31, 2024, Putnam Management, PIL and PAC continued to provide uninterrupted services with respect to the fund pursuant to interim investment management, sub-management and sub-advisory contracts (together, the “Interim Advisory Contracts”) that were approved by the Board of Trustees. The terms of the Interim Advisory Contracts were identical to those of the Previous Advisory Contracts, except for the term of the contracts and those provisions required by regulation. On January 31, 2024, new investment management, sub-management and sub-advisory contracts were approved by fund shareholders at a shareholder meeting held in connection with the Transaction (together, the “New Advisory Contracts”). The New Advisory Contracts took effect on January 31, 2024 and replaced the Interim Advisory Contracts. The terms of the New Advisory Contracts are substantially similar to those of the Previous Advisory Contracts, and the fee rates payable under the New Advisory Contracts are the same as the fee rates under the Previous Advisory Contracts.

Effective June 1, 2024, under an agreement with Putnam Management, Franklin Templeton Services, LLC, a wholly-owned subsidiary of Franklin Templeton and an affiliate of Putnam Management, will provide certain administrative services to the fund. The fee for those services will be paid by Putnam Management based on the fund’s average daily net assets, and is not an additional expense of the fund.

The aggregate amount of all reimbursements for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund is determined annually by the Trustees. These fees are being paid by Putnam Management as part of the management contract.

Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes. These fees are being paid by Putnam Management as part of the management contract.

Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. received fees for investor servicing for class A, class B, class C, class R and class Y shares that included (1) a per account fee for each direct and underlying non-defined contribution account (retail account) of the fund; (2) a specified rate of the fund’s assets attributable to defined contribution plan accounts; and (3) a specified rate based on the average net assets in retail accounts. Putnam Investor Services,

40 Core Bond Fund 

 



Inc. has agreed that the aggregate investor servicing fees for each fund’s retail and defined contribution accounts for these share classes will not exceed an annual rate of 0.25% of the fund’s average assets attributable to such accounts. Class R6 shares paid a monthly fee based on the average net assets of class R6 shares at an annual rate of 0.05%. These fees are being paid by Putnam Management as part of the management contract.

The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. For the reporting period, the fund’s expenses were reduced by $4,543 under the expense offset arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $345, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees. These fees are being paid by Putnam Management as part of the management contract.

The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable from July 1, 1995 through December 31, 2023. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.

The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003. These fees are being paid by Putnam Management as part of the management contract.

The fund has adopted distribution plans (the Plans) with respect to the following share classes pursuant to Rule 12b–1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Retail Management Limited Partnership, an indirect wholly-owned subsidiary of Franklin Templeton, for services provided and expenses incurred in distributing shares of the fund. The Plans provide payments by the fund to Putnam Retail Management Limited Partnership at an annual rate of up to the following amounts (Maximum %) of the average net assets attributable to each class. The Trustees have approved payment by the fund at the following annual rate (Approved %) of the average net assets attributable to each class. During the reporting period, the class-specific expenses related to distribution fees were as follows:

  Maximum %  Approved %  Amount 
Class A  0.35%  0.25%  $157,784 
Class B  1.00%  0.45%  329 
Class C  1.00%  1.00%  29,199 
Class R  1.00%  0.50%  1,615 
Total      $188,927 

 

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $11,758 from the sale of class A shares and received no monies and $360 in contingent deferred sales charges from redemptions of class B and class C shares, respectively.

A deferred sales charge of up to 1.00% is assessed on certain redemptions of class A shares. For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received $1,539 on class A redemptions.

Note 3: Purchases and sales of securities

During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments, were as follows:

  Cost of purchases  Proceeds from sales 
Investments in securities, including TBA commitments (Long-term)  $985,869,048  $898,534,366 
U.S. government securities (Long-term)  61,822,828  56,517,234 
Total  $1,047,691,876  $955,051,600 

 

Core Bond Fund 41 

 



The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales of long-term securities from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.

Note 4: Capital shares

At the close of the reporting period, there were an unlimited number of shares of beneficial interest authorized. Transactions, including, if applicable, direct exchanges pursuant to share conversions, in capital shares were as follows:

  SIX MONTHS ENDED 4/30/24  YEAR ENDED 10/31/23 
Class A  Shares  Amount  Shares  Amount 
Shares sold  5,463,525  $44,241,613  6,212,487  $50,771,973 
Shares issued in connection with         
reinvestment of distributions  372,651  3,003,917  771,982  6,327,699 
  5,836,176  47,245,530  6,984,469  57,099,672 
Shares repurchased  (4,510,144)  (36,414,545)  (4,664,109)  (38,130,231) 
Net increase  1,326,032  $10,830,985  2,320,360  $18,969,441 
 
  SIX MONTHS ENDED 4/30/24  YEAR ENDED 10/31/23 
Class B  Shares  Amount  Shares  Amount 
Shares sold    $—  630  $5,252 
Shares issued in connection with         
reinvestment of distributions  427  3,440  2,043  16,796 
  427  3,440  2,673  22,048 
Shares repurchased  (7,426)  (59,792)  (25,966)  (213,255) 
Net decrease  (6,999)  $(56,352)  (23,293)  $(191,207) 
 
  SIX MONTHS ENDED 4/30/24  YEAR ENDED 10/31/23 
Class C  Shares  Amount  Shares  Amount 
Shares sold  265,183  $2,128,846  295,378  $2,401,713 
Shares issued in connection with         
reinvestment of distributions  15,028  120,829  31,409  257,230 
  280,211  2,249,675  326,787  2,658,943 
Shares repurchased  (114,067)  (918,550)  (344,808)  (2,821,198) 
Net increase (decrease)  166,144  $1,331,125  (18,021)  $(162,255) 
 
      YEAR ENDED 10/31/23* 
Class P      Shares  Amount 
Shares sold      2,627,642  $21,955,593 
Shares issued in connection with reinvestment of distributions    673,897  5,615,485 
      3,301,539  27,571,078 
Shares repurchased      (24,962,526)  (206,924,486) 
Net decrease      (21,660,987)  $(179,353,408) 

 

42 Core Bond Fund 

 



  SIX MONTHS ENDED 4/30/24  YEAR ENDED 10/31/23 
Class R  Shares  Amount  Shares  Amount 
Shares sold  12,911  $105,693  48,489  $401,325 
Shares issued in connection with         
reinvestment of distributions  1,830  14,862  3,086  25,395 
  14,741  120,555  51,575  426,720 
Shares repurchased  (11,775)  (96,360)  (20,033)  (165,473) 
Net increase  2,966  $24,195  31,542  $261,247 
 
  SIX MONTHS ENDED 4/30/24  YEAR ENDED 10/31/23 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  128,951  $1,041,206  251,381  $2,050,816 
Shares issued in connection with         
reinvestment of distributions  8,845  71,681  12,394  101,392 
  137,796  1,112,887  263,775  2,152,208 
Shares repurchased  (286,368)  (2,319,487)  (33,973)  (279,480) 
Net increase (decrease)  (148,572)  $(1,206,600)  229,802  $1,872,728 
 
  SIX MONTHS ENDED 4/30/24  YEAR ENDED 10/31/23 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  16,850,583  $136,535,960  27,107,513  $219,382,921 
Shares issued in connection with         
reinvestment of distributions  866,404  6,984,089  759,974  6,174,383 
  17,716,987  143,520,049  27,867,487  225,557,304 
Shares repurchased  (8,285,258)  (66,854,117)  (7,488,996)  (60,581,981) 
Net increase  9,431,729  $76,665,932  20,378,491  $164,975,323 

 

* Effective March 24, 2023, the fund terminated its class P shares.

Note 5: Affiliated transactions

Transactions during the reporting period with any company which is under common ownership or control were as follows:

          Shares 
          outstanding 
          and fair 
  Fair value as  Purchase  Sale  Investment  value as 
Name of affiliate  of 10/31/23  cost  proceeds  income  of 4/30/24 
Short-term investments           
Putnam Short Term           
Investment Fund           
Class P  $28,863,712  $112,408,469  $123,926,545  $556,813  $17,345,636 
Total Short-term           
investments  $28,863,712  $112,408,469  $123,926,545  $556,813  $17,345,636 

 

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.

Core Bond Fund 43 

 



Note 6: Market, credit and other risks

In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. Investments in foreign securities involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations. The fund may invest in higher-yielding, lower-rated bonds that may have a higher rate of default. The fund may invest a significant portion of its assets in securitized debt instruments, including mortgage-backed and asset-backed investments. The yields and values of these investments are sensitive to changes in interest rates, the rate of principal payments on the underlying assets and the market’s perception of the issuers. The market for these investments may be volatile and limited, which may make them difficult to buy or sell.

Note 7: Summary of derivative activity

The volume of activity for the reporting period for any derivative type that was held during the period is listed below and was based on an average of the holdings at the end of each fiscal quarter:

Centrally cleared interest rate swap contracts (notional)  $—* 

 

* For the reporting period, there were no holdings at the end of each fiscal quarter and the transactions were considered minimal.

As of the close of the reporting period, the fund did not hold any derivative instruments.

The following is a summary of realized gains or losses of derivative instruments on the Statement of operations for the reporting period (Note 1) (there were no unrealized gains or losses on derivative instruments):

Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments   
Derivatives not accounted for as     
hedging instruments under ASC 815  Swaps  Total 
Interest rate contracts  $(27,982)  $(27,982) 
Total  $(27,982)  $(27,982) 

 

44 Core Bond Fund 

 



Note 8: Offsetting of financial and derivative assets and liabilities

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 or borrowing transactions associated with securities sold short, if any, see Note 1. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.

    Citigroup Global  JPMorgan   
  BofA Securities, Inc.  Markets, Inc.  Securities LLC  Total 
Assets:         
Total Assets  $—  $—  $—  $— 
Liabilities:         
Total Liabilities  $—  $—  $—  $— 
Total Financial and Derivative  $—  $—  $—  $— 
Net Assets         
Total collateral received  $—  $—  $—   
(pledged)†##         
Net amount  $—  $—  $—   
Controlled collateral received         
(including TBA commitments)**  $—  $—  $—  $— 
Uncontrolled collateral received  $—  $—  $—  $— 
Collateral (pledged) (including         
TBA commitments)**  $(144,575)  $(830,931)  $(356,220)  $(1,331,726) 

 

** Included with Investments in securities on the Statement of assets and liabilities.

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.

Core Bond Fund 45 

 



Shareholder meeting results (Unaudited)

January 31, 2024 special meeting

At the meeting, a new Management Contract for your fund with Putnam Investment Management, LLC was approved, as follows:

Votes for  Votes against  Abstentions/Votes withheld 
14,754,135  526,341  2,866,756 

 

At the meeting, a new Sub-Management Contract for your fund between Putnam Investment Management, LLC and Putnam Investments Limited was approved, as follows:

Votes for  Votes against  Abstentions/Votes withheld 
14,655,191  553,497  2,938,543 

 

At the meeting, a new Sub-Advisory Contract for your fund between Putnam Investment Management, LLC, Putnam Investments Limited and The Putnam Advisory Company, LLC was approved, as follows:

Votes for  Votes against  Abstentions/Votes withheld 
14,630,593  547,686  2,968,952 

 

All tabulations are rounded to the nearest whole number.

46 Core Bond Fund 

 



Fund information

Investment Manager  Trustees  Michael J. Higgins 
Putnam Investment  Kenneth R. Leibler, Chair  Vice President, Treasurer, 
Management, LLC  Barbara M. Baumann, Vice Chair  and Clerk 
100 Federal Street  Liaquat Ahamed   
Boston, MA 02110  Katinka Domotorffy  Jonathan S. Horwitz 
  Catharine Bond Hill  Executive Vice President, 
Investment Sub-Advisors  Gregory G. McGreevey  Principal Executive Officer, 
Putnam Investments Limited  Jennifer Williams Murphy  and Compliance Liaison 
Cannon Place, 78 Cannon Street  Marie Pillai 
London, England EC4N 6HL  George Putnam III  Kelley Hunt 
Robert L. Reynolds  AML Compliance Officer 
The Putnam Advisory Company, LLC  Manoj P. Singh   
100 Federal Street  Mona K. Sutphen  Martin Lemaire 
Boston, MA 02110  Jane E. Trust  Vice President and 
  Derivatives Risk Manager 
Marketing Services  Officers   
Putnam Retail Management  Robert L. Reynolds  Denere P. Poulack 
Limited Partnership  President, The Putnam Funds  Assistant Vice President, 
100 Federal Street  Assistant Clerk, and 
Boston, MA 02110  Kevin R. Blatchford  Assistant Treasurer 
Vice President and   
Custodian  Assistant Treasurer  Janet C. Smith 
State Street Bank  Vice President, 
and Trust Company  James F. Clark  Principal Financial Officer, 
Vice President and  Principal Accounting Officer, 
Legal Counsel  Chief Compliance Officer  and Assistant Treasurer 
Ropes & Gray LLP   
  Stephen J. Tate 
    Vice President and 
    Chief Legal Officer 

 

This report is for the information of shareholders of Putnam Core Bond Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of the fund’s Quarterly Performance Summary, and the fund’s Quarterly Ranking Summary. For more recent performance, please visit putnam.com or franklintempleton.com. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund, which are described in its prospectus. For this and other information or to request a prospectus or summary prospectus, call 1-800-225-1581 toll free. Please read the prospectus carefully before investing. The fund’s Statement of Additional Information contains additional information about the fund’s Trustees and is available without charge upon request by calling 1-800-225-1581.



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Item 2. Code of Ethics:
Not applicable

Item 3. Audit Committee Financial Expert:
Not applicable

Item 4. Principal Accountant Fees and Services:
Not applicable

Item 5. Audit Committee of Listed Registrants
Not applicable

Item 6. Schedule of Investments:
The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.

Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:
Not applicable

Item 8. Portfolio Managers of Closed-End Investment Companies
Not Applicable

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:
Not applicable

Item 10. Submission of Matters to a Vote of Security Holders:
Not applicable

Item 11. 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 12. Disclosures of Securities Lending Activities for Closed-End Investment Companies:
Not Applicable

Item 13. Recovery of Erroneously Awarded Compensation.
Not Applicable

Item 14. Exhibits:
(a)(1) Not applicable

(a)(2) Not applicable

(a)(3) 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.

(b) The certifications required by Rule 30a-2(b) 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 26, 2024
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 26, 2024
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer

Date: June 26, 2024
EX-99.CERT 2 b_ec3certifications.htm CERTIFICATIONS b_ec3certifications.htm

Certifications

I, Jonathan S. Horwitz, the Principal Executive Officer of the funds listed on Attachment A, certify that:

1. I have reviewed each report on Form N-CSR 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 financial statements, and other financial information included in each report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in each report;

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 registrant 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 each 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 period covered by the registrant’s report 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.

Date: June 26, 2024

/s/ Jonathan S. Horwitz
_______________________
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-CSR 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 financial statements, and other financial information included in each report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in each report;

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 registrant 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 each 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 period covered by the registrant’s report 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.

Date: June 26, 2024

/s/ Janet C. Smith
_______________________
Janet C. Smith
Principal Financial Officer















Attachment A

Period (s) ended April 30, 2024

               Putnam BDC Income ETF
               Putnam BioRevolution ETF
               Putnam Convertible Securities Fund
               Putnam Core Equity Fund
               Putnam Core Bond Fund
               Putnam Emerging Markets ex-China ETF
               Putnam ESG Core Bond ETF
               Putnam ESG High Yield ETF
               Putnam ESG Ultra Short ETF
               Putnam Focused International Equity Fund
               Putnam Global Income Trust
               Putnam Income Fund
               Putnam Large Cap Value Fund
               Putnam Managed Municipal Income Trust
               Putnam Municipal Opportunities Trust
               Putnam PanAgora ESG Emerging Markets Equity ETF
               Putnam PanAgora ESG International Equity ETF
               Putnam Short Duration Bond Fund
               Putnam Sustainable Future Fund
EX-99.906 CERT 3 c_ec3noscertification.htm 906 CERTIFICATIONS c_ec3noscertification.htm

Section 906 Certifications

I, Jonathan S. Horwitz, the Principal Executive Officer of the Funds listed on Attachment A, certify that, to my knowledge:

1. The form N-CSR of the Funds listed on Attachment A for the period ended April 30, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Form N-CSR of the Funds listed on Attachment A for the period ended April 30, 2024 fairly presents, in all material respects, the financial condition and results of operations of the Funds listed on Attachment A.

Date: June 26, 2024

/s/ Jonathan S. Horwitz
______________________
Jonathan S. Horwitz
Principal Executive Officer














Section 906 Certifications

I, Janet C. Smith, the Principal Financial Officer of the Funds listed on Attachment A, certify that, to my knowledge:

1. The form N-CSR of the Funds listed on Attachment A for the period ended April 30, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Form N-CSR of the Funds listed on Attachment A for the period ended April 30, 2024 fairly presents, in all material respects, the financial condition and results of operations of the Funds listed on Attachment A.

Date: June 26, 2024

/s/ Janet C. Smith
______________________
Janet C. Smith
Principal Financial Officer















Attachment A

Period (s) ended April 30, 2024

               Putnam BDC Income ETF
               Putnam BioRevolution ETF
               Putnam Convertible Securities Fund
               Putnam Core Equity Fund
               Putnam Core Bond Fund
               Putnam Emerging Markets ex-China ETF
               Putnam ESG Core Bond ETF
               Putnam ESG High Yield ETF
               Putnam ESG Ultra Short ETF
               Putnam Focused International Equity Fund
               Putnam Global Income Trust
               Putnam Income Fund
               Putnam Large Cap Value Fund
               Putnam Managed Municipal Income Trust
               Putnam Municipal Opportunities Trust
               Putnam PanAgora ESG Emerging Markets Equity ETF
               Putnam PanAgora ESG International Equity ETF
               Putnam Short Duration Bond Fund
               Putnam Sustainable Future Fund
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