N-Q 1 a_conincgrow.htm PUTNAM CONVERTIBLE INCOME-GROWTH TRUST a_conincgrow.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, 2010   
 
Date of reporting period: July 31, 2010   

 

Item 1. Schedule of Investments:


Putnam Convertible Income-Growth Trust     
The fund's portfolio     
7/31/10 (Unaudited)     
 
 
CONVERTIBLE BONDS AND NOTES (69.6%)(a)     
  Principal amount  Value 
 
Aerospace and defense (1.9%)     
AAR CORP. 144A cv. sr. unsec. notes 2 1/4s, 2016  $4,700,000  $3,695,375 
L-1 Identity Solutions, Inc. cv. sr. unsec. notes     
3 3/4s, 2027  2,200,000  2,134,000 
L-1 Identity Solutions, Inc. 144A cv. sr. unsec. notes     
3 3/4s, 2027  2,370,000  2,298,900 
Triumph Group, Inc. 144A cv. sr. sub. notes 2 5/8s,     
2026  2,700,000  3,928,500 
    12,056,775 
 
Automotive (1.9%)     
Ford Motor Co. cv. sr. unsec. notes 4 1/4s, 2016  3,945,000  6,038,612 
TRW Automotive, Inc. 144A cv. company guaranty sr.     
notes 3 1/2s, 2015  4,400,000  5,973,000 
    12,011,612 
 
Beverage (0.8%)     
Molson Coors Brewing Co. cv. company guaranty sr.     
unsec. unsub. notes 2 1/2s, 2013  4,700,000  5,175,875 
    5,175,875 
 
Biotechnology (4.8%)     
Amgen, Inc. cv. sr. unsec. notes 3/8s, 2013  4,400,000  4,411,000 
Amylin Pharmaceuticals, Inc. cv. sr. unsec. notes 3s,     
2014  5,300,000  4,591,125 
Dendreon Corp. 144A cv. sr. unsec. sub. notes 4 3/4s,     
2014  565,000  1,865,913 
Kendle International, Inc. cv. sr. unsec. notes     
3 3/8s, 2012  3,800,000  3,439,000 
Theravance, Inc. cv. unsec. sub. notes 3s, 2015  5,900,000  5,273,125 
United Therapeutics Corp. cv. sr. unsec. notes 1/2s,     
2011  500,000  669,375 
United Therapeutics Corp. 144A cv. sr. unsec. notes     
1/2s, 2011  3,500,000  4,685,625 
Viropharma, Inc. cv. sr. unsec. notes 2s, 2017  5,000,000  4,606,250 
    29,541,413 
 
Broadcasting (0.7%)     
XM Satellite Radio Holdings, Inc. 144A cv. sr. unsec.     
sub. notes 7s, 2014  4,728,000  4,646,678 
    4,646,678 
 
Cable television (1.4%)     
Virgin Media, Inc. cv. sr. unsec. notes 6 1/2s, 2016  6,400,000  8,888,000 
    8,888,000 
 
Chemicals (0.3%)     
Ferro Corp. cv. sr. unsec. notes 6 1/2s, 2013  1,600,000  1,614,000 
    1,614,000 
 
Coal (1.6%)     
International Coal Group, Inc. cv. company guaranty     
sr. unsec. notes 4s, 2017  3,243,000  3,310,779 
James River Coal Co. 144A cv. sr. unsec. notes 4 1/2s,     
2015  3,249,000  3,169,724 
Peabody Energy Corp. cv. jr. unsec. sub. debs. 4 3/4s,     
2041  3,000,000  3,187,500 
    9,668,003 
 
Commercial and consumer services (3.1%)     
Alliance Data Systems Corp. cv. sr. unsec. notes     
1 3/4s, 2013  4,800,000  4,665,000 
Icahn Enterprises LP 144A cv. sr. unsec. notes FRN 4s,     
2013  5,400,000  4,806,000 
Live Nation, Inc. cv. sr. unsec. notes 2 7/8s, 2027  2,700,000  2,264,625 
Live Nation, Inc. 144A cv. sr. notes 2 7/8s, 2027  4,000,000  3,355,000 
Priceline.com, Inc. 144A cv. sr. unsec. notes 1 1/4s,     
2015  3,919,000  3,997,380 
    19,088,005 
 
Communications equipment (1.6%)     
ARRIS Group, Inc. cv. sr. unsec. notes 2s, 2026  5,000,000  4,787,500 
CIENA Corp. cv. sr. unsec. notes 1/4s, 2013  5,600,000  4,844,000 
    9,631,500 
 
Computers (1.9%)     
EMC Corp. cv. sr. unsec. notes 1 3/4s, 2013  700,000  943,250 
EMC Corp. 144A cv. sr. unsec. notes 1 3/4s, 2013  5,800,000  7,815,500 
TeleCommunication Systems, Inc. 144A cv. sr. unsec.     

 


notes 4 1/2s, 2014  3,700,000  3,034,000 
    11,792,750 
 
Conglomerates (0.5%)     
Textron, Inc. cv. sr. unsec. notes Ser. TXT, 4 1/2s,     
2013  1,800,000  3,097,620 
    3,097,620 
 
Consumer (0.7%)     
Stanley Works (The) cv. sr. unsec. unsub. notes FRN     
zero %, 2012  4,231,000  4,564,403 
    4,564,403 
 
Consumer finance (1.0%)     
Dollar Financial Corp. cv. sr. notes 3s, 2028  6,900,000  6,451,500 
    6,451,500 
 
Consumer services (1.4%)     
Avis Budget Group, Inc. 144A cv. sr. notes 3 1/2s, 2014  4,950,000  5,110,875 
Stewart Enterprises, Inc. cv. sr. unsec. notes 3 3/8s,     
2016  3,863,000  3,370,468 
    8,481,343 
 
Containers (1.0%)     
Owens Brockway Glass Container, Inc. 144A cv. company     
guaranty sr. notes 3s, 2015  6,736,000  6,454,435 
    6,454,435 
 
Distribution (0.5%)     
Spartan Stores, Inc. cv. sr. unsec. notes 3 3/8s, 2027  3,297,000  2,880,754 
    2,880,754 
 
Electrical equipment (0.6%)     
WESCO International, Inc. cv. company guaranty sr.     
unsec. notes 6s, 2029  2,484,000  3,687,250 
    3,687,250 
 
Electronics (5.6%)     
Advanced Micro Devices, Inc. cv. sr. unsec. notes 6s,     
2015  3,800,000  3,771,500 
EnerSys cv. sr. unsec. notes stepped-coupon 3 3/8s     
(zero %, 6/1/15) 2038 (STP)  3,617,000  3,422,586 
Intel Corp. 144A cv. jr. sub. notes 3 1/4s, 2039  8,665,000  10,235,526 
Kulicke & Soffa Industries, Inc. cv. unsec. sub. notes     
7/8s, 2012  7,800,000  7,146,750 
Micron Technology, Inc. cv. sr. unsec. unsub. notes     
1 7/8s, 2014  5,000,000  4,368,750 
TTM Technologies, Inc. cv. sr. unsec. notes 3 1/4s,     
2015  6,300,000  5,827,500 
    34,772,612 
 
Energy (oil field) (0.8%)     
Cal Dive International, Inc. cv. sr. unsec. unsub.     
notes 3 1/4s, 2025  3,600,000  3,150,000 
Global Industries, Ltd. 144A cv. unsec. notes 2 3/4s,     
2027  3,000,000  1,807,500 
    4,957,500 
 
Energy (other) (0.5%)     
Covanta Holding Corp. cv. sr. unsec. notes 3 1/4s, 2014  3,000,000  3,206,250 
    3,206,250 
 
Financial (1.3%)     
CapitalSource, Inc. cv. company guaranty sr. unsec.     
sub. notes 7 1/4s, 2037  2,700,000  2,639,250 
Digital Realty Trust LP 144A cv. sr. unsec. notes     
5 1/2s, 2029 (R)  2,300,000  3,552,063 
MGIC Investment Corp. cv. sr. notes 5s, 2017  1,698,000  1,723,640 
    7,914,953 
 
Food (0.8%)     
Tyson Foods, Inc. cv. sr. unsec. notes 3 1/4s, 2013  4,035,000  4,902,525 
    4,902,525 
 
Gaming and lottery (0.7%)     
International Game Technology 144A cv. sr. unsec.     
notes 3 1/4s, 2014  3,970,000  4,409,876 
    4,409,876 
 
Health-care services (2.6%)     
Fisher Scientific International, Inc. cv. company     
guaranty sr. sub. notes 3 1/4s, 2024  2,800,000  3,314,500 
Health Management Associates, Inc. 144A cv. sr. sub.     
notes 3 3/4s, 2028  2,900,000  2,939,875 

 


LifePoint Hospitals, Inc. cv. sr. sub. notes 3 1/2s,     
2014  3,300,000  3,118,500 
Omnicare, Inc. cv. company guaranty sr. unsec. debs     
Ser. OCR, 3 1/4s, 2035  5,100,000  4,354,125 
Providence Service Corp. (The) cv. sr. unsec. sub.     
notes 6 1/2s, 2014  2,493,000  2,237,468 
    15,964,468 
 
Insurance (0.7%)     
Old Republic International Corp. cv. sr. unsec. unsub.     
notes 8s, 2012  3,700,000  4,514,000 
    4,514,000 
 
Investment banking/Brokerage (0.5%)     
KKR Financial Holdings, LLC cv. sr. unsec. notes     
7 1/2s, 2017  2,600,000  3,090,750 
    3,090,750 
 
Manufacturing (1.2%)     
Griffon Corp. 144A cv. sub. notes 4s, 2017  2,658,000  3,020,551 
Titan International, Inc. 144A cv. sr. sub. notes     
5 5/8s, 2017  3,445,000  4,340,700 
    7,361,251 
 
Media (0.9%)     
Liberty Media, LLC cv. sr. unsec. unsub. notes 3 1/2s,     
2031  10,300,000  5,253,000 
    5,253,000 
 
Medical technology (2.9%)     
China Medical Technologies, Inc. cv. sr. unsec. bonds     
Ser. CMT, 4s, 2013 (China)  2,200,000  1,443,750 
Hologic, Inc. cv. sr. unsec. unsub. notes     
stepped-coupon 2s (zero %, 12/15/13) 2037 (STP)  5,400,000  4,758,750 
Invitrogen Corp. cv. sr. unsec. unsub. notes 1 1/2s,     
2024  5,900,000  6,357,250 
Medtronic, Inc. cv. sr. unsec. notes 1 5/8s, 2013  3,600,000  3,622,500 
Medtronic, Inc. 144A cv. sr. unsec. notes 1 5/8s, 2013  1,900,000  1,911,875 
    18,094,125 
 
Metals (3.0%)     
Goldcorp, Inc. cv. sr. notes 2s, 2014 (Canada)  4,927,000  5,629,098 
Newmont Mining Corp. cv. company guaranty sr. unsub.     
notes 1 5/8s, 2017  3,000,000  4,035,000 
Steel Dynamics, Inc. cv. sr. notes 5 1/8s, 2014  2,450,000  2,774,625 
U.S. Steel Corp. cv. sr. unsec. notes 4s, 2014  2,820,000  4,395,675 
USEC, Inc. cv. sr. unsec. notes 3s, 2014  2,000,000  1,532,500 
    18,366,898 
 
Oil and gas (3.6%)     
Carrizo Oil & Gas, Inc. cv. sr. unsec. unsub. notes     
4 3/8s, 2028  6,200,000  5,401,750 
Chesapeake Energy Corp. cv. sr. unsec. notes company     
guaranty 2 1/2s, 2037  9,400,000  7,567,000 
Penn Virginia Corp. cv. sr. unsec. sub. notes 4 1/2s,     
2012  4,890,000  4,657,725 
St. Mary Land & Exploration Co. cv. sr. unsec. notes     
3 1/2s, 2027  4,500,000  4,764,375 
    22,390,850 
 
Pharmaceuticals (2.4%)     
Biovail Corp. 144A cv. sr. notes 5 3/8s, 2014 (Canada)  3,200,000  5,028,000 
Teva Pharmaceutical Finance, LLC cv. company guaranty     
sr. unsec. debs Ser. C, 1/4s, 2026 (Israel)  8,400,000  9,691,500 
    14,719,500 
 
Real estate (1.6%)     
Alexandria Real Estate Equities, Inc. 144A cv. company     
guaranty sr. unsec. notes 3.7s, 2027 (R)  3,100,000  3,045,750 
Annaly Capital Management, Inc. cv. sr. unsec. unsub.     
notes 4s, 2015 (R)  3,200,000  3,340,000 
General Growth Properties, Inc. 144A cv. sr. notes     
3.98s, 2027 (In default) (NON)(R)  3,600,000  3,762,000 
    10,147,750 
 
Retail (2.2%)     
Charming Shoppes, Inc. cv. sr. unsec. notes 1 1/8s,     
2014  4,100,000  3,244,125 
Iconix Brand Group, Inc. cv. sr. sub. notes 1 7/8s,     
2012  3,200,000  3,068,000 
Pantry, Inc. (The) cv. company guaranty sr. unsec.     
sub. notes 3s, 2012  4,400,000  4,119,500 
Pantry, Inc. (The) 144A cv. sr. sub. notes 3s, 2012  500,000  468,125 
Rite Aid Corp. cv. sr. unsec. unsub. notes 8 1/2s, 2015  3,185,000  2,866,500 
    13,766,250 
 
Semiconductor (1.0%)     

 


Linear Technology Corp. cv. sr. unsec. unsub. notes     
Ser. A, 3s, 2027  6,100,000  6,176,250 
    6,176,250 
 
Software (5.5%)     
Cadence Design Systems, Inc. cv. sr. unsec. notes     
1 1/2s, 2013  500,000  449,063 
Cadence Design Systems, Inc. 144A cv. sr. unsec. notes     
1 1/2s, 2013  3,100,000  2,784,188 
Microsoft Corp. 144A cv. sr. unsec. notes zero %, 2013  3,961,000  4,055,074 
Rovi Corp. 144A cv. sr. unsec. unsub. notes 2 5/8s,     
2040  6,040,000  6,813,875 
Safeguard Scientifics, Inc. cv. sr. unsec. sub. notes     
10 1/8s, 2014  8,600,000  9,718,000 
Symantec Corp. cv. sr. unsec. notes 1s, 2013  5,900,000  5,995,875 
SYNNEX Corp. 144A cv. sr. notes 4s, 2018  4,100,000  4,525,375 
    34,341,450 
 
Technology (1.9%)     
CACI International, Inc. cv. sr. unsec. sub. notes     
2 1/8s, 2014  2,100,000  2,170,875 
CACI International, Inc. 144A cv. sr. unsec. sub.     
notes 2 1/8s, 2014  3,720,000  3,845,550 
ON Semiconductor Corp. cv. company guaranty sr. unsec.     
sub. notes 2 5/8s, 2026  785,000  767,338 
ON Semiconductor Corp. 144A cv. company guaranty sr.     
unsec. sub. notes 2 5/8s, 2026  5,300,000  5,180,750 
    11,964,513 
 
Technology services (1.9%)     
CSG Systems International, Inc. 144A cv. sr. unsec.     
sub. notes 3s, 2017  3,138,000  3,110,543 
Salesforce.com, Inc. 144A cv. sr. unsec. unsub. notes     
3/4s, 2015  3,500,000  4,475,625 
SAVVIS, Inc. cv. sr. unsec. notes 3s, 2012  4,377,000  4,327,759 
    11,913,927 
 
Telecommunications (1.5%)     
Level 3 Communications, Inc. cv. sr. unsec. unsub.     
notes 3 1/2s, 2012  7,675,000  7,089,781 
NII Holdings, Inc. 144A cv. sr. unsec. notes 3 1/8s,     
2012  2,600,000  2,499,250 
    9,589,031 
 
Telephone (0.8%)     
Leap Wireless International, Inc. cv. sr. unsec. notes     
4 1/2s, 2014  5,810,000  5,011,125 
    5,011,125 
Total convertible bonds and notes (cost $399,161,137)    $432,560,770 
 
CONVERTIBLE PREFERRED STOCKS (20.7%)(a)     
  Shares  Value 
 
Automotive (1.0%)     
Ford Motor Co. Capital Trust II $3.25 cum. cv. pfd.  136,200  $6,333,300 
    6,333,300 
 
Banking (4.7%)     
Bank of America Corp. Ser. L, 7.25% cv. pfd.  8,700  7,993,125 
Citigroup, Inc. $7.50 cv. pfd.  69,000  8,397,300 
Huntington Bancshares Ser. A, 8.50% cv. pfd.  3,200  3,161,400 
Seacoast Banking Corp. of Florida 144A 15.00% cv. pfd.  336  336,000 
Wells Fargo & Co. Ser. L, 7.50% cv. pfd.  9,175  8,945,625 
    28,833,450 
 
Combined utilities (1.7%)     
El Paso Corp. 4.99% cv. pfd.  9,600  10,224,000 
    10,224,000 
 
Consumer finance (--%)     
Federal National Mortgage Association Ser. 04-1,     
5.375% cv. pfd.  100  275,000 
    275,000 
 
Electric utilities (2.2%)     
Great Plains Energy, Inc. $6.00 cv. pfd.  95,439  5,836,095 
PPL Corp. $4.75 cv. pfd. (NON)  135,500  7,505,345 
    13,341,440 
 
Food (1.6%)     
Bunge, Ltd. 5.125% cum. cv. pfd.  9,300  4,654,743 
Dole Food Automatic Exchange 144A 7.00% cv. pfd. (NON)  510,505  5,452,193 
    10,106,936 
 
Health-care services (0.4%)     

 


Omnicare Capital Trust II Ser. B, $2.00 cv. pfd.  74,200  2,736,125 
    2,736,125 
 
Insurance (2.3%)     
Assured Guaranty, Ltd. $4.25 cv. pfd. (Bermuda)  51,500  3,461,315 
Hartford Financial Services Group, Inc. (The) $1.182     
cv. pfd.  245,423  6,012,864 
XL Group, Ltd. $2.688 cv. pfd.  171,600  4,547,400 
    14,021,579 
 
Investment banking/Brokerage (--%)     
Lehman Brothers Holdings, Inc. Ser. P, 7.25% cv. pfd.     
(In default) (NON)  13,400  20,100 
    20,100 
 
Media (1.2%)     
Interpublic Group of Companies, Inc. (The) Ser. B,     
5.25% cv. pfd.  8,400  7,686,000 
    7,686,000 
 
Metals (1.0%)     
Vale Capital II $3.375 cv. pfd. (Cayman Islands)  81,200  6,460,475 
    6,460,475 
 
Oil and gas (2.0%)     
Apache Corp. Ser. D, $3.00 cv. pfd.  123,546  6,732,022 
Whiting Petroleum Corp. $6.25 cum. cv. pfd  26,600  5,669,125 
    12,401,147 
 
Power producers (0.4%)     
AES Trust III $3.375 cv. pfd.  59,600  2,749,050 
    2,749,050 
 
Real estate (0.8%)     
Entertainment Properties Trust Ser. C, $1.438 cv. pfd.  257,700  4,719,466 
    4,719,466 
 
Telecommunications (1.4%)     
Crown Castle International Corp. $3.125 cum. cv. pfd.  150,000  8,663,250 
    8,663,250 
Total convertible preferred stocks (cost $137,191,086)    $128,571,318 
 
COMMON STOCKS (5.7%)(a)     
  Shares  Value 
 
Banking (0.7%)     
Bank of America Corp.  145,000  $2,035,800 
Wells Fargo & Co.  78,700  2,182,351 
    4,218,151 
 
Biotechnology (0.6%)     
Amgen, Inc. (NON)  56,700  3,091,851 
Dendreon Corp. (NON)  21,300  700,983 
    3,792,834 
 
Cable television (0.5%)     
DIRECTV Class A (NON)  81,500  3,028,540 
    3,028,540 
 
Chemicals (0.2%)     
Celanese Corp. Ser. A  54,924  1,542,815 
    1,542,815 
 
Energy (other) (--%)     
Brazil Ethanol, Inc. 144A (Unit) (NON)  312,500  3,125 
    3,125 
 
Insurance (0.6%)     
Aflac, Inc.  69,900  3,438,381 
    3,438,381 
 
Investment banking/Brokerage (0.3%)     
Goldman Sachs Group, Inc. (The)  13,900  2,096,398 
    2,096,398 
 
Medical technology (0.7%)     
Medtronic, Inc.  122,900  4,543,613 
    4,543,613 

 


Metals (0.5%)         
Freeport-McMoRan Copper & Gold, Inc. Class B      46,778  3,346,498 
        3,346,498 
 
Regional Bells (0.6%)         
Qwest Communications International, Inc.      607,400  3,437,884 
        3,437,884 
 
Telecommunications (1.0%)         
NII Holdings, Inc. (NON)      85,600  3,206,576 
Sprint Nextel Corp. (NON)      638,500  2,917,945 
        6,124,521 
Total common stocks (cost $37,378,427)        $35,572,760 
 
CORPORATE BONDS AND NOTES (2.3%)(a)         
      Principal amount  Value 
Clearwire Communications, LLC/Clearwire Finance, Inc.         
144A company guaranty sr. notes 12s, 2015      $1,290,000  $1,348,050 
Harrahs Operating Corp., Inc. 144A sr. notes 12 3/4s,         
2018      1,310,000  1,273,975 
Integra Telecom Holdings, Inc. 144A sr. notes 10 3/4s,         
2016      1,310,000  1,316,550 
Intelsat Bermuda, Ltd. company guaranty sr. unsec.         
notes 11 1/4s, 2017 (Luxembourg)      1,265,000  1,340,900 
Jazz Technologies, Inc. 144A notes 8s, 2015 (F)      4,020,000  3,296,400 
Provident Funding Associates 144A sr. notes 10 1/4s,         
2017      1,305,000  1,331,100 
Surgical Care Affiliates, Inc. 144A sr. sub. notes         
10s, 2017      1,320,000  1,323,300 
Unisys Corp. 144A company guaranty sr. sub. notes         
14 1/4s, 2015      2,900,000  3,364,000 
Total corporate bonds and notes (cost $14,486,131)        $14,594,275 
 
 
WARRANTS (--%)(a)(NON)         
  Expiration date  Strike Price  Warrants  Value 
Tower Semiconductor, Ltd. 144A (Israel) (F)  6/30/15  $0.01  1,085,630  $217,126 
Total warrants (cost $217,126)        $217,126 
 
 
SHORT-TERM INVESTMENTS (1.4%)(a)         
      Shares  Value 
Putnam Money Market Liquidity Fund 0.12% (e)      8,469,800  $8,469,800 
Total short-term investments (cost $8,469,800)        $8,469,800 
 
TOTAL INVESTMENTS         
Total investments (cost $596,903,707) (b)        $619,986,049 

 


Key to holding's abbreviations

FRN Floating Rate Notes

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, 2009 through July 31, 2010 (the reporting period).

(a) Percentages indicated are based on net assets of $621,313,609.

(b) The aggregate identified cost on a tax basis is $598,206,252, resulting in gross unrealized appreciation and depreciation of $64,019,572 and $42,239,775, respectively, or net unrealized appreciation of $21,779,797.

(NON) Non-income-producing security.

(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.

(e) The fund invested in Putnam Money Market Liquidity 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 Investments, LLC. Investments in Putnam Money Market Liquidity Fund are valued at its closing net asset value each business day. Income distributions earned by the fund are recorded as interest income and totaled $13,307 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $179,395,309 and $180,244,914, respectively. Management fees charged to Putnam Money Market Liquidity Fund have been waived by Putnam Management. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.

(F) Is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures (ASC 820) based on the securities valuation inputs.

(R) Real Estate Investment Trust.

Debt obligations are considered secured unless otherwise indicated.

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

The rates shown on FRN are the current interest rates at the close of the reporting period.

The dates shown on debt obligations are the original maturity dates.

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 and are classified as Level 1 securities. 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 and is generally categorized as a Level 2 security. Market quotations are not considered to be readily available for certain debt obligations; 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 considers such factors as security prices, yields, maturities and ratings) . 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, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which will generally represent a transfer from a Level 1 to a Level 2 security, will be classified as Level 2. 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. 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 and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.


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 
Common stocks:         
  Basic materials  $4,889,313  $--  $-- 
  Communication services  12,590,945  --  -- 
  Energy  --  3,125  -- 
  Financial  9,752,930  --  -- 
  Health care  8,336,447  --  -- 
Total common stocks    35,569,635  3,125  -- 
Convertible bonds and notes    --  432,560,770  -- 
Convertible preferred stocks    --  128,571,318  -- 
Corporate bonds and notes    --  11,297,875  3,296,400 
Warrants    --  --  217,126 
Short-term investments    8,469,800  --  -- 
Totals by level    $44,039,435  $572,433,088  $3,513,526 

 

At the start and/or close of the reporting period, Level 3 investments in securities were not considered a significant portion of the fund's portfolio.

Market Values of Derivative Instruments as of the close of the reporting period     
 
  Asset derivatives  Liability derivatives 
 
Derivatives not accounted for as hedging instruments under ASC 815  Market value  Market value 
Equity contracts  $217,126  $-- 
Total  $217,126  $-- 

 

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 Trust

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: September 28, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):

/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: September 28, 2010

By (Signature and Title):

/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: September 28, 2010