N-Q 1 a_conincgrwthtrst1.htm PUTNAM CONVERTIBLE INCOME-GROWTH TRUST Putnam Convertible Income-Growth Trust.htm

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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY

Investment Company Act file number: (811- 02280 )

Exact name of registrant as specified in charter: Putnam Convertible Income-Growth Trust

Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109

Name and address of agent for service:  Beth S. Mazor, Vice President 
  One Post Office Square 
  Boston, Massachusetts 02109 
 
Copy to:  John W. Gerstmayr, Esq. 
  Ropes & Gray LLP 
  One International Place 
  Boston, Massachusetts 02110 
 
Registrant’s telephone number, including area code:  (617) 292-1000 

Date of fiscal year end: October 31, 2006

Date of reporting period: January 31, 2006

Item 1. Schedule of Investments:


Putnam Convertible Income-Growth Trust     

The fund's portfolio     
1/31/06 (Unaudited)     
CONVERTIBLE BONDS AND NOTES (64.8%)(a)     
  Principal amount  Value 
Advertising and Marketing Services (0.8%)     
Lamar Advertising Co. cv. sr. notes 2 7/8s, 2010  $4,900,000  $5,200,125 

Aerospace and Defense (2.2%)     
AAR Corp. 144A cv. sr. notes 1 3/4s, 2026  3,500,000  3,545,850 
Armor Holdings, Inc. cv. sr. sub. notes stepped-coupon 2s (zero %, 11/1/11) 2024 (STP)  4,000,000  4,225,000 
DRS Technologies, Inc. 144A cv. unsec. notes 2s, 2026  2,500,000  2,504,688 
United Industrial Corp./New York 144A cv. sr. notes 3 3/4s, 2024  3,800,000  4,911,500 
    15,187,038 

Airlines (1.7%)     
Continental Airlines, Inc. cv. sr. unsub. notes 4 1/2s, 2007  4,300,000  4,154,875 
Pinnacle Airlines Corp. cv. sr. notes 3 1/4s, 2025  9,800,000  7,252,000 
    11,406,875 

Automotive (0.6%)     
United Auto Group, Inc. 144A cv. sr. sub. notes 3 1/2s, 2026  4,000,000  4,005,000 

Biotechnology (2.1%)     
Amylin Pharmaceuticals, Inc. cv. sr. notes 2 1/2s, 2011  1,940,000  2,611,725 
Amylin Pharmaceuticals, Inc. 144A cv. sr. notes 2 1/2s, 2011  2,500,000  3,365,625 
Connetics Corp. 144A cv. sr. notes 2s, 2015  4,000,000  3,155,000 
CV Therapeutics, Inc. cv. notes 3 1/4s, 2013  2,000,000  2,267,500 
MGI Pharma, Inc. 144A cv. sr. sub. notes stepped-coupon 1.682s (zero %, 3/2/11) 2024     
(STP)  5,350,000  3,303,625 
    14,703,475 

Broadcasting (1.0%)     
Sinclair Broadcast Group, Inc. cv. bonds 6s, 2012  8,010,000  6,968,700 

Building Materials (2.1%)     
Masco Corp. cv. sr. notes Ser. B, zero %, 2031  32,300,000  14,656,125 

Cable Television (0.7%)     
Charter Communications, Inc. 144A cv. sr. notes 5 7/8s, 2009  6,600,000  4,636,500 

Communications Equipment (2.3%)     
Andrew Corp. cv. sub. notes 3 1/4s, 2013  6,700,000  7,370,000 
Lucent Technologies, Inc. cv. debs. Ser. A, 2 3/4s, 2023  5,500,000  5,520,625 
SafeNet, Inc. 144A cv. sub. notes 2 1/2s, 2010  3,000,000  2,955,000 
    15,845,625 

Computers (3.4%)     
Anixter International, Inc. cv. Liquid Yield Option Notes (LYON) Ser. * zero %, 2033  18,200,000  12,694,500 
Cray, Inc. cv. sr. sub. notes 3s, 2024  2,000,000  1,502,500 
Cray, Inc. 144A cv. sr. sub. notes 3s, 2024  4,600,000  3,455,750 
Gateway, Inc. 144A cv. sr. notes 2s, 2011  2,400,000  1,665,000 
Gateway, Inc. 144A cv. sr. notes 1 1/2s, 2009  2,500,000  1,821,875 
Open Solutions, Inc. 144A cv. sr. sub. notes stepped-coupon 1.467s (zero %, 2/2/12)     
2035 (STP)  4,000,000  2,280,000 
    23,419,625 

Conglomerates (1.6%)     
Tyco International Group SA cv. company guaranty Ser. A, 2 3/4s, 2018 (Luxembourg)  600,000  689,250 
Tyco International Group SA 144A cv. company guaranty Ser. A, 2 3/4s, 2018     
(Luxembourg)  8,900,000  10,223,875 
    10,913,125 

Consumer Services (0.6%)     
FTI Consulting, Inc. 144A cv. sr. sub. notes 3 3/4s, 2012  3,600,000  3,969,000 

Electric Utilities (1.0%)     
CenterPoint Energy, Inc. cv. unsec. sub notes FRN 2s, 2029  204,900  6,823,170 

Electrical Equipment (1.1%)     


WESCO International, Inc. 144A cv. debs. Ser. B, 2 5/8s, 2025  5,800,000  7,532,750 

 
Electronics (6.3%)     
Agere Systems, Inc. cv. sub. notes 6 1/2s, 2009  7,300,000  7,208,750 
Flextronics International, Ltd. cv. sub. notes 1s, 2010 (Singapore)  6,800,000  6,264,500 
Intel Corp. 144A cv. sub. bonds 2.95s, 2035  10,700,000  9,723,625 
Liberty Media Corp. cv. sr. notes 3 1/2s, 2031  12,100,000  12,523,500 
Vishay Intertechnology, Inc. 144A cv. sub. notes 3 5/8s, 2023  7,300,000  7,509,875 
    43,230,250 

Energy (3.4%)     
Cal Dive International, Inc. 144A cv. sr. notes 3 1/4s, 2025  5,000,000  7,656,250 
Halliburton Co. cv. sr. notes 3 1/8s, 2023  4,000,000  8,645,000 
Pride International, Inc. cv. sr. notes 3 1/4s, 2033  4,700,000  6,885,500 
    23,186,750 

Entertainment (1.4%)     
Lions Gate Entertainment Corp. 144A cv. sr. bonds 3 5/8s, 2025 (Canada)  5,800,000  5,154,750 
Regal Entertainment Group 144A cv. notes 3 3/4s, 2008  3,800,000  4,574,250 
    9,729,000 

Financial (1.0%)     
PMI Group, Inc. (The) cv. debs. 2 1/2s, 2021  6,800,000  7,097,500 

Gaming & Lottery (0.8%)     
Scientific Games Corp. 144A cv. company guaranty 0.75s, 2024  4,400,000  5,274,500 

Health Care Services (3.9%)     
Manor Care, Inc. cv. sr. notes stepped-coupon 2 1/8s (1 7/8s, 8/10/10) 2035 (STP)  8,000,000  8,140,000 
Omnicare, Inc. cv. debs. Ser. OCR, 3 1/4s, 2035  7,000,000  6,501,250 
Per-Se Technologies, Inc. 144A cv. notes 3 1/4s, 2024  3,500,000  5,254,375 
Universal Health Services, Inc. cv. debs. 0.426s, 2020  12,400,000  7,006,000 
    26,901,625 

Lodging/Tourism (1.3%)     
Hilton Hotels Corp. 144A cv. notes 3 3/8s, 2023  7,500,000  9,234,375 

Manufacturing (1.0%)     
Titan International, Inc. 144A cv. sr. notes 5 1/4s, 2009  4,600,000  6,790,750 

Media (1.0%)     
Walt Disney Co. (The) cv. sr. notes 2 1/8s, 2023  6,800,000  6,953,000 

Medical Technology (2.8%)     
Atherogenics, Inc. 144A cv. sr. notes 1 1/2s, 2012  3,720,000  3,357,300 
Cytyc Corp. 144A cv. sr. notes 2 1/4s, 2024  3,650,000  4,156,438 
EPIX Medical, Inc. cv. sr. notes 3s, 2024  3,300,000  2,046,000 
EPIX Medical, Inc. 144A cv. sr. notes 3s, 2024  4,300,000  2,666,000 
Medtronic, Inc. cv. debs. Ser. B, 1 1/4s, 2021  6,700,000  6,758,625 
    18,984,363 

Oil & Gas (2.5%)     
Devon Energy Corp. cv. debs. 4.9s, 2008  11,900,000  13,997,375 
McMoran Exploration Co. 144A cv. notes 6s, 2008  2,300,000  3,464,375 
    17,461,750 

Pharmaceuticals (1.9%)     
Alza Corp. cv. sub. debs. zero %, 2020  8,000,000  6,320,000 
Watson Pharmaceuticals, Inc. cv. debs. 1 3/4s, 2023  7,000,000  6,763,750 
    13,083,750 

Publishing (0.7%)     
Playboy Enterprises, Inc. 144A cv. sr. sub. notes 3s, 2025  4,700,000  4,917,375 

Railroads (1.3%)     
CSX Corp. cv. sr. unsub. debs. zero %, 2021  9,300,000  9,148,875 

Restaurants (0.4%)     
CKE Restaurants, Inc. 144A cv. sub. notes 4s, 2023  2,000,000  3,680,000 

Retail (4.2%)


Dick's Sporting Goods, Inc. cv. sr. notes stepped-coupon 1.606s (zero %, 2/18/09) 2024     
(STP)  7,600,000  5,586,000 
Men's Wearhouse, Inc. (The) cv. sr. notes 3 1/8s, 2023  5,000,000  6,412,500 
Nash Finch Co. cv. sr. sub. notes stepped-coupon 1.631s (zero %, 3/15/13) 2035 (STP)  10,085,000  3,996,181 
Nash Finch Co. 144A cv. sr. sub. notes stepped-coupon 1.631s (zero %, 3/15/13) 2035     
(STP)  8,500,000  3,368,125 
Pantry, Inc. (The) 144A cv. sub. notes 3s, 2012  3,700,000  4,837,750 
TJX Companies, Inc. (The) cv. LYON zero %, 2021  3,700,000  3,163,500 
TJX Companies, Inc. (The) 144A cv. LYON zero %, 2021  2,900,000  2,479,500 
    29,843,556 

Semiconductor Production Equipment (0.9%)     
Kulicke & Soffa Industries, Inc. cv. sub. notes 1/2s, 2008  7,300,000  6,241,500 

Technology (1.0%)     
ON Semiconductor Corp. cv. sr. sub. notes zero %, 2024  7,500,000  6,881,250 

Technology Services (4.6%)     
DST Systems, Inc. 144A cv. sr. notes Ser. A, 4 1/8s, 2023  7,300,000  9,280,125 
Euronet Services, Inc. 144A cv. debs. 3 1/2s, 2025  3,400,000  3,578,500 
Fair Isaac Corp. 144A cv. sr. notes 1 1/2s, 2023  7,500,000  8,353,125 
Mercury Computer Systems, Inc. 144A cv. sr. notes 2s, 2024  3,000,000  2,722,500 
Safeguard Scientifics, Inc. 144A cv. sr. notes 2 5/8s, 2024  10,500,000  7,993,125 
    31,927,375 

Telecommunications (3.2%)     
American Tower Corp. cv. sr. notes 3s, 2012  4,300,000  6,890,750 
Dobson Communications Corp. 144A cv. sr. notes 1 1/2s, 2025  7,000,000  6,510,000 
NII Holdings, Inc. cv. sr. notes 2 7/8s, 2034  600,000  1,157,250 
NII Holdings, Inc. 144A cv. sr. notes 2 7/8s, 2034  4,000,000  7,715,000 
    22,273,000 

Total convertible bonds and notes (cost $420,107,208)    $448,107,677 
CONVERTIBLE PREFERRED STOCKS (33.3%)(a)     
  Shares  Value 
Advertising and Marketing Services (0.4%)     
Interpublic Group of Companies, Inc. 144A Ser. B, 5.25% cum. cv. pfd  3,349  $3,219,226 

Aerospace and Defense (2.2%)     
Northrop Grumman Corp. Ser. B, $7.00 cum. cv. pfd.  113,700  15,051,038 

Automotive (0.8%)     
Ford Motor Company Capital Trust II $3.25 cum. cv. pfd.  165,000  5,280,000 

Banking (1.7%)     
State Street Escrow zero % cv. pfd.  36,700  787,986 
Washington Mutual Capital Trust I $2.688 cum. cv. pfd.  210,500  11,219,650 
    12,007,636 

Beverage (0.6%)     
Constellation Brands, Inc. Ser. A, $1.438 cv. pfd.  100,500  4,020,000 

Broadcasting (0.5%)     
Emmis Communications Corp. Ser. A, $3.125 cum. cv. pfd.  88,000  3,586,000 

Building Materials (0.7%)     
TXI Capital Trust I $2.75 cv. pfd.  89,400  4,849,950 

Chemicals (1.0%)     
Huntsman Corp. $2.50 cv. pfd.  151,375  6,982,172 

Electric Utilities (3.2%)     
Entergy Corp. $3.813 cv. pfd. (S)  125,000  6,187,500 
FPL Group, Inc. $4.00 units cv. pfd.  130,000  8,092,500 
Great Plains Energy, Inc. $2.00 cum. cv. pfd. (S)  300,000  7,500,000 
    21,780,000 

Financial (2.1%)     
Fannie Mae Ser. 04-1, 5.375% cv. pfd. (S)  148  14,244,741 

Forest Products and Packaging (1.1%)     


Smurfit-Stone Container Corp. Ser. A, $1.75 cum. cv. pfd.  326,900  7,477,838 

Health Care Services (0.4%)     
Omnicare Capital Trust II Ser. B, $2.00 cv. pfd.  40,200  2,638,125 

Insurance (8.1%)     
Chubb Corp. (The) $1.75 cv. pfd. (S)  407,600  13,705,550 
Citigroup Funding, Inc. FRN Ser. GNW, 5.18% cv. pfd.  352,520  10,959,847 
Conseco, Inc. $1.38 cum. cv. pfd.  267,500  7,857,813 
IPC Holdings, Ltd. 7.25% cv. pfd. (Bermuda)  124,300  3,387,175 
MetLife, Inc. Ser. B, $1.594 cv. pfd.  244,700  6,729,250 
Platinum Underwriters Holdings, Ltd. Ser. A, 6.00% cv. pfd. (Bermuda)  226,400  6,990,100 
Travelers Property Casualty Corp. $1.125 cv. pfd.  263,500  6,666,550 
    56,296,285 

Investment Banking/Brokerage (0.6%)     
Merrill Lynch & Co. Ser. JNC, 6.75% cv. pfd.  102,940  4,378,862 

Metals (1.5%)     
Freeport-McMoRan Copper & Gold, Inc. 5.50% cv. pfd.  1,400  1,896,125 
Freeport-McMoRan Copper & Gold, Inc. 144A 5.50% cv. pfd.  6,400  8,668,000 
    10,564,125 

Natural Gas Utilities (2.2%)     
El Paso Corp. 144A 4.99% cv. pfd.  6,550  7,794,500 
Southern Union Co. $2.875 cv. pfd.  54,290  4,126,040 
Southern Union Co. $2.50 cv. pfd.  61,700  3,146,700 
    15,067,240 

Oil & Gas (2.0%)     
Amerada Hess Corp. $3.50 cv. pfd.  51,300  6,701,063 
Chesapeake Energy Corp. $5.00 cum. cv. pfd.  13,700  2,063,563 
Chesapeake Energy Corp. 144A $5.00 cum. cv. pfd.  32,400  5,017,655 
    13,782,281 

Pharmaceuticals (1.4%)     
Schering-Plough Corp. $3.00 cv. pfd.  184,300  9,422,338 

Photography/Imaging (1.4%)     
Xerox Corp. $6.25 cv. pfd.  81,140  9,696,230 

Power Producers (1.0%)     
NRG Energy, Inc. 5.75% cv. pfd.  26,900  6,731,725 

Retail (0.4%)     
Rite Aid Corp. $1.375 cum. cv. pfd.  142,200  2,960,746 

Total convertible preferred stocks (cost $214,330,731)    $230,036,558 
SHORT-TERM INVESTMENTS (2.6%)(a)     
  Principal   
  amount/shares  Value 
Interest in $450,000,000 joint tri-party repurchase agreement dated January 31, 2006     
with Bank of America Securities, LLC due February 1, 2006 with respect to various U.S.     
Government obligations -- maturity value of $7,865,968 for an effective yield of 4.43%     
(collateralized by Fannie Mae and Freddie Mac with yields ranging from 5.00% to 5.50%     
and due dates ranging from May 1, 2019 to December 1, 2035, valued at $459,000,000)  $7,865,000  $7,865,000 
Putnam Prime Money Market Fund (e)  1,557,291  1,557,291 

Short-term investments held as collateral for loaned securities with yields ranging from
 
   
4.33% to 4.65% and due dates ranging from February 1, 2006 to March 24, 2006 (d)  $ 8,401,268  8,397,245 

Total short-term investments (cost $17,819,536)    $17,819,536 
TOTAL INVESTMENTS     
Total investments (cost $652,257,475)(b)    $695,963,771 


NOTES

(a) Percentages indicated are based on net assets of $691,558,778.

(b) The aggregate identified cost on a tax basis is $652,257,475, resulting in gross unrealized appreciation and depreciation of $73,872,590 and $30,166,294, respectively, or net unrealized appreciation of $43,706,296.

(S) Securities on loan, in part or in entirety, at January 31, 2006.

(STP) The interest rate and date shown parenthetically represent the new interest rate to be paid and the date the fund will begin accruing interest at this rate.

(d) The fund may lend securities, through its agents, to qualified borrowers in order to earn additional income. The loans are collateralized by cash and/or securities in an amount at least equal to the market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agents; the fund will bear the risk of loss with respect to the investment of the cash collateral. Income from securities lending is included in investment income on the statement of operations. At January 31, 2006, the value of securities loaned amounted to $8,156,111. The fund received cash collateral of $8,397,245 which is pooled with collateral of other Putnam funds into 22 issues of high-grade, short-term investments.

(e) Pursuant to an exemptive order from the Securities and Exchange Commission, the fund invests in Putnam Prime Money Market Fund, an open-end management investment company managed by Putnam Investment Management, LLC ("Putnam Management"), the fund's manager, an indirect wholly-owned subsidiary of Putnam, LLC. Management fees paid by the fund are reduced by an amount equal to the management and administrative fees paid by Putnam Prime Money Market Fund with respect to assets invested by the fund in Putnam Prime Money Market Fund. Income distributions earned by the fund totaled $13,713 for the period ended January 31, 2006. During the period ended January 31, 2006, cost of purchases and cost of sales of investments in Putnam Prime Money Market Fund aggregated $27,913,373 and $30,327,633, respectively.

144A after the name of a security represents those exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

The rates shown on Floating Rate Notes (FRN) are the current interest rates at January 31, 2006.

Security valuation 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. If no sales are reported -- as in the case of some securities traded over-the-counter -- a security is valued at its last reported bid price. Market quotations are not considered to be readily available for certain debt obligations; such investments are valued at fair value on the basis of valuations furnished by an independent pricing service or dealers, approved by the Trustees. 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. Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors, including movements in the U.S. securities markets. 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.

Other investments, including certain restricted securities, are valued at fair value following procedures approved by the Trustees. Such valuations and procedures are reviewed periodically by the Trustees.

Repurchase agreements The fund, or any joint trading account, through its custodian, receives delivery of the underlying securities, the market value of which at the time of purchase is required to be an amount at least equal to the resale price, including accrued interest. Collateral for certain tri-party repurchase agreements is held at the counterparty’s custodian in a segregated account for the benefit of the fund and the counterparty. Putnam Management is responsible for determining that the value of these underlying securities is at all times at least equal to the resale price, including accrued interest.

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com


Item 2. Controls and Procedures:

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

(b) Changes in internal control over financial reporting:

Not applicable

Item 3. Exhibits:

Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam Convertible Income-Growth Fund

By (Signature and Title):

/s/ Michael T. Healy
Michael T. Healy
Principal Accounting Officer

Date: March 29, 2006

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/ Charles E. Porter

Charles E. Porter
Principal Executive Officer

Date: March 29, 2006


By (Signature and Title):


/s/ Steven D. Krichmar

Steven D. Krichmar
Principal Financial Officer

Date: March 29, 2006