N-Q 1 a_convertiblesecurities.htm PUTNAM CONVERTIBLE SECURITIES FUND a_convertiblesecurities.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 Securities Fund
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109
Name and address of agent for service: Robert T. Burns, Vice President
One Post Office Square
Boston, Massachusetts 02109
Copy to:         Bryan Chegwidden, Esq.
Ropes & Gray LLP
1211 Avenue of the Americas
New York, New York 10036
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: October 31, 2014
Date of reporting period: July 31, 2014



Item 1. Schedule of Investments:













Putnam Convertible Securities Fund

The fund's portfolio
7/31/14 (Unaudited)
CONVERTIBLE BONDS AND NOTES (69.4%)(a)
Principal amount Value
Airlines (—%)
Lufthansa Malta Blues LP 144A cv. sr. unsec. notes 0 3/4s, 2017 (Malta) EUR 17,000 $38,061
38,061
Automotive (0.9%)
Navistar International Corp. 144A cv. sr. unsec. unsub. notes 4 3/4s, 2019 $4,786,000 4,998,379
TRW Automotive, Inc. cv. company guaranty sr. unsec. notes 3 1/2s, 2015 1,115,000 3,855,809
8,854,188
Biotechnology (9.3%)
Acorda Therapeutics, Inc. cv. sr. unsec. notes 1 3/4s, 2021 4,801,000 4,659,971
AMAG Pharmaceuticals, Inc. cv. sr. unsec. unsub. notes 2 1/2s, 2019 5,540,000 5,713,125
Auxilium Pharmaceuticals, Inc. cv. sr. unsec. notes 1 1/2s, 2018 2,550,000 2,715,750
BioMarin Pharmaceutical, Inc. cv. sr. unsec. sub. notes 1 1/2s, 2020 6,859,000 7,206,237
Cubist Pharmaceuticals, Inc. cv. sr. unsec. notes 2 1/2s, 2017 2,605,000 5,604,006
Cubist Pharmaceuticals, Inc. 144A cv. sr. unsec. notes 1 1/8s, 2018 4,599,000 4,938,176
Emergent BioSolutions, Inc 144A cv. sr. unsec. unsub. notes 2 7/8s, 2021 5,210,000 5,372,813
Gilead Sciences, Inc. cv. sr. unsec. notes 1 5/8s, 2016 4,853,000 19,512,093
Illumina, Inc. 144A cv. sr. unsec. notes 0 1/2s, 2021 3,760,000 3,748,250
InterMune, Inc. cv. sr. unsec. notes 2 1/2s, 2018 1,935,000 2,906,128
Medicines Co. (The) cv. sr. unsec. bonds 1 3/8s, 2017 6,536,000 7,173,260
Medivation, Inc. cv. sr. unsec. unsub. notes 2 5/8s, 2017 4,064,000 6,258,560
Merrimack Pharmaceuticals, Inc. cv. sr. unsec. unsub. notes 4 1/2s, 2020 3,779,000 4,400,268
PDL BioPharma, Inc. cv. sr. unsec. notes 3 3/4s, 2015 1,788,000 2,765,813
PDL BioPharma, Inc. cv. sr. unsec. unsub. notes 4s, 2018 4,723,000 5,224,819
88,199,269
Broadcasting (1.4%)
Liberty Media Corp. 144A cv. sr. unsec. notes 1 3/8s, 2023 8,421,000 8,620,999
XM Satellite Radio, Inc. 144A cv. company guaranty sr. unsec. sub. notes 7s, 2014 2,378,000 4,403,759
13,024,758
Chemicals (0.2%)
RPM International, Inc. cv. sr. unsec. notes 2 1/4s, 2020 1,307,000 1,505,501
1,505,501
Commercial and consumer services (3.2%)
Carriage Services, Inc. 144A cv. unsec. sub. notes 2 3/4s, 2021 4,615,000 4,672,688
CBIZ, Inc. 144A cv. sr. sub. notes 4 7/8s, 2015 3,660,000 4,449,188
Live Nation Entertainment, Inc. 144A cv. sr. unsec. notes 2 1/2s, 2019 6,898,000 7,079,073
Priceline Group, Inc. (The) cv. sr. unsec. unsub. notes 1s, 2018 9,236,000 13,322,930
29,523,879
Communications equipment (1.0%)
Ciena Corp. 144A cv. sr. unsec. notes 3 3/4s, 2018 4,804,000 6,203,165
Outerwall, Inc. cv. sr. unsec. unsub. notes 4s, 2014 2,300,000 3,140,938
9,344,103
Computers (5.4%)
Akamai Technologies, Inc. 144A cv. sr. unsec. notes zero %, 2019 4,739,000 4,801,199
Bottomline Technologies (DE), Inc. cv. sr. unsec. unsub. notes 1 1/2s, 2017 5,264,000 6,007,540
Dealertrack Technologies, Inc. cv. company guaranty sr. unsec. notes 1 1/2s, 2017 5,498,000 6,583,855
Infinera Corp. 144A cv. sr. unsec. unsub. bonds 1 3/4s, 2018 5,602,000 5,868,095
SanDisk Corp. cv. sr. unsec. notes 1 1/2s, 2017 4,226,000 7,709,809
SanDisk Corp. 144A cv. sr. unsec. notes 0 1/2s, 2020 8,381,000 9,748,151
ServiceNow, Inc. 144A cv. sr. unsec. unsub. notes zero %, 2018 6,659,000 7,150,101
Verint Systems, Inc. cv. sr. unsec. notes 1 1/2s, 2021 2,254,000 2,287,810
50,156,560
Conglomerates (1.5%)
Siemens Financieringsmaatschappij N.V. cv. company guaranty sr. unsec. bonds 1.65s, 2019 (Netherlands) 12,000,000 13,510,800
13,510,800
Construction (0.9%)
Cemex SAB de CV cv. unsec. sub. notes 3 3/4s, 2018 (Mexico) 6,130,000 8,854,019
8,854,019
Consumer (0.8%)
Jarden Corp. cv. company guaranty sr. unsec. sub. bonds 1 7/8s, 2018 3,036,000 4,011,315
Jarden Corp. 144A cv. company guaranty sr. unsec. sub. notes 1 1/8s, 2034 3,039,000 3,001,013
7,012,328
Consumer finance (1.1%)
Encore Capital Group, Inc. cv. company guaranty sr. unsec. bonds 3s, 2020 5,263,000 5,861,929
Portfolio Recovery Associates, Inc. 144A cv. sr. unsec. unsub. notes 3s, 2020 3,944,000 4,634,200
10,496,129
Electronics (8.8%)
GT Advanced Technologies, Inc. cv. sr. unsec. notes 3s, 2020 5,989,000 8,339,683
Intel Corp. cv. jr. sub. notes 3 1/4s, 2039 5,755,000 9,535,316
InvenSense, Inc. 144A cv. sr. unsec. notes 1 3/4s, 2018 2,744,000 3,285,940
Jazz Technologies, Inc. 144A cv. unsec. notes 8s, 2018 2,467,000 2,787,710
Mentor Graphics Corp. cv. sub. unsec. notes 4s, 2031 6,530,000 7,576,759
Micron Technology, Inc. cv. sr. unsec. bonds Ser. E, 1 5/8s, 2033 10,343,000 28,979,793
SunEdison, Inc. 144A cv. sr. unsec. notes 0 1/4s, 2020 4,506,000 4,525,714
Vishay Intertechnology, Inc. 144A cv. sr. unsec. notes 2 1/4s, 2041 6,180,000 5,809,200
Xilinx, Inc. cv. sr. unsec. notes 2 5/8s, 2017 8,485,000 12,472,950
83,313,065
Energy (oil field) (1.2%)
Hornbeck Offshore Services, Inc. cv. company guaranty sr. unsec. notes 1 1/2s, 2019 3,239,000 3,763,313
SEACOR Holdings, Inc. cv. sr. unsec. unsub. bonds 2 1/2s, 2027 2,968,000 3,248,105
SEACOR Holdings, Inc. 144A cv. sr. unsec. notes 3s, 2028 4,102,000 3,937,920
10,949,338
Entertainment (0.5%)
TiVo, Inc. 144A cv. sr. unsec. notes 4s, 2016 3,453,000 4,648,601
4,648,601
Financial (0.7%)
Radian Group, Inc. cv. sr. unsec. unsub. notes 3s, 2017 4,820,000 6,238,888
6,238,888
Health-care services (3.9%)
Allscripts Healthcare Solutions, Inc. 144A cv. sr. unsec. notes 1 1/4s, 2020 6,492,000 7,384,650
Brookdale Senior Living, Inc. cv. sr. unsec. unsub. notes 2 3/4s, 2018 7,172,000 9,780,815
HealthSouth Corp. cv. sr. unsec. sub. notes 2s, 2043 2,919,000 3,320,363
Medidata Solutions, Inc. 144A cv. sr. unsec. notes 1s, 2018 6,673,000 7,286,082
WellPoint, Inc. cv. sr. unsec. bonds 2 3/4s, 2042 6,035,000 9,448,547
37,220,457
Homebuilding (1.3%)
Forestar Group, Inc. cv. sr. unsec. unsub. notes 3 3/4s, 2020 491,000 528,132
Lennar Corp. 144A cv. sr. notes 2 3/4s, 2020 1,934,000 3,222,528
M/I Homes, Inc. cv. company guaranty sr. sub. notes 3s, 2018 3,946,000 4,126,036
Standard Pacific Corp. cv. company guaranty sr. unsec. unsub. notes 1 1/4s, 2032 3,985,000 4,625,091
12,501,787
Insurance (0.8%)
Fidelity National Financial, Inc. cv. sr. unsec. unsub. notes 4 1/4s, 2018 4,790,000 7,780,756
7,780,756
Investment banking/Brokerage (1.6%)
Ares Capital Corp. cv. sr. unsec. notes 5 3/4s, 2016 8,538,000 9,098,306
Cowen Group, Inc. 144A cv. sr. unsec. notes 3s, 2019 5,664,000 5,894,100
14,992,406
Lodging/Tourism (2.3%)
Host Hotels & Resorts LP 144A cv. company guaranty sr. unsec. notes 2 1/2s, 2029(R) 5,940,000 9,951,876
MGM Resorts International Co. cv. company guaranty sr. unsec. notes 4 1/4s, 2015 7,820,000 11,622,475
21,574,351
Manufacturing (0.5%)
Trinity Industries, Inc. cv. unsec. sub. notes 3 7/8s, 2036 2,580,000 4,784,288
4,784,288
Media (2.3%)
Liberty Interactive, LLC cv. sr. unsec. unsub. bonds 0 3/4s, 2043 7,629,000 10,623,383
Liberty Interactive, LLC cv. sr. unsec. unsub. notes 3 1/2s, 2031 10,960,000 6,171,850
Liberty Interactive, LLC 144A cv. sr. unsec. notes 1s, 2043 5,195,000 5,318,381
22,113,614
Medical technology (2.3%)
Cepheid, Inc. 144A cv. sr. unsec. notes 1 1/4s, 2021 5,143,000 4,840,849
China Medical Technologies, Inc. cv. sr. unsec. bonds Ser. CMT, 4s, 2016 (China) (In default)(F)(NON) 3,213,000 257,040
China Medical Technologies, Inc. 144A cv. sr. unsec. notes 6 1/4s, 2016 (China) (In default)(F)(NON) 3,544,000 248,080
Hologic, Inc. cv. sr. unsec. unsub. notes stepped-coupon 2s (0s, 3/1/18) 2042(STP) 5,185,000 5,693,778
Spectranetics Corp. (The) cv. sr. unsec. notes 2 5/8s, 2034 4,457,000 4,994,626
Wright Medical Group, Inc. cv. sr. unsec. unsub. notes 2s, 2017 4,535,000 6,159,097
22,193,470
Metals (1.3%)
AK Steel Corp. cv. company guaranty sr. unsec. unsub. notes 5s, 2019 4,120,000 7,645,175
Newmont Mining Corp. cv. company guaranty sr. unsub. notes 1 5/8s, 2017 3,915,000 4,184,156
11,829,331
Oil and gas (1.4%)
Cobalt International Energy, Inc. cv. sr. unsec. unsub. notes 2 5/8s, 2019 7,862,000 6,987,353
Goodrich Petroleum Corp. cv. company guaranty sr. unsub. notes 5s, 2032 2,043,000 2,298,375
Vantage Drilling Co. cv. sr. unsec. unsub. notes 7 7/8s, 2042 3,601,000 4,064,629
13,350,357
Pharmaceuticals (1.5%)
Endo Health Solutions, Inc. cv. sr. unsec. sub. notes 1 3/4s, 2015 3,048,000 6,995,160
Salix Pharmaceuticals, Ltd. cv. sr. unsec. notes 1 1/2s, 2019 3,380,000 6,983,925
13,979,085
Real estate (3.6%)
Blackstone Mortgage Trust, Inc. cv. sr. unsec. unsub. notes 5 1/4s, 2018(R) 4,105,000 4,382,088
Forest City Enterprises, Inc. cv. sr. unsec. notes 4 1/4s, 2018 8,735,000 9,728,606
iStar Financial, Inc. cv. sr. unsec. unsub. notes 3s, 2016(R) 5,576,000 7,423,050
Spirit Realty Capital, Inc. cv. sr. unsec. notes 2 7/8s, 2019(R) 4,581,000 4,595,316
Starwood Property Trust, Inc. cv. sr. unsec. unsub. notes 4s, 2019(R) 7,205,000 8,155,159
34,284,219
Retail (0.2%)
Restoration Hardware Holdings, Inc. 144A cv. sr. unsec. unsub. notes zero %, 2019 1,938,000 1,876,226
1,876,226
Semiconductor (1.5%)
Novellus Systems, Inc. cv. sr. unsec. notes 2 5/8s, 2041 4,950,000 10,227,938
Photronics, Inc. cv. sr. unsec. notes 3 1/4s, 2016 4,193,000 4,405,271
14,633,209
Shipping (0.6%)
Scorpio Tankers, Inc. 144A cv. sr. unsec. notes 2 3/8s, 2019 5,950,000 6,016,938
6,016,938
Software (1.3%)
Concur Technologies, Inc. 144A cv. sr. unsec. unsub. bonds 0 1/2s, 2018 5,635,000 6,226,675
Safeguard Scientifics, Inc. cv. sr. unsec. bonds 5 1/4s, 2018 4,945,000 6,304,875
12,531,550
Technology (0.7%)
ON Semiconductor Corp. cv. company guaranty sr. unsec. sub. notes Ser. B, 2 5/8s, 2026 6,107,000 6,931,445
6,931,445
Technology services (2.1%)
j2 Global, Inc. cv. sr. unsec. notes 3 1/4s, 2029 6,190,000 6,182,263
Salesforce.com, Inc. cv. sr. unsec. unsub. notes 0 1/4s, 2018 6,810,000 7,542,075
Web.com Group, Inc. cv. sr. unsec. unsub. notes 1s, 2018 6,045,000 6,222,572
19,946,910
Telecommunications (1.9%)
Finisar Corp. 144A cv. sr. unsec. notes 0 1/2s, 2033 5,897,000 5,760,632
Level 3 Communications, Inc. cv. sr. unsec. unsub. notes Ser. B, 7s, 2015 3,695,000 6,124,463
Powerwave Technologies, Inc. cv. sr. unsec. sub. notes 3 7/8s, 2027 (In default)(F)(NON) 5,121,000 512
SBA Communications Corp. cv. sr. unsec. notes 4s, 2014 1,797,000 6,304,101
18,189,708
Tobacco (0.8%)
Vector Group, Ltd. cv. sr. unsec. FRN notes 2 1/2s, 2019 5,715,000 7,605,979
7,605,979
Transportation services (0.6%)
XPO Logistics, Inc. cv. sr. unsec. unsub. notes 4 1/2s, 2017 2,800,000 5,547,500
5,547,500
Total convertible bonds and notes (cost $579,284,012) $655,553,073

CONVERTIBLE PREFERRED STOCKS (21.0%)(a)
Shares Value
Aerospace and defense (1.5%)
United Technologies Corp. $3.75 cv. pfd. 221,775 $13,155,693
13,155,693
Airlines (0.7%)
Continental Financial Trust II $3.00 cv. pfd. 123,410 6,035,514
6,035,514
Banking (2.5%)
Bank of America Corp. Ser. L, 7.25% cv. pfd. 8,210 9,482,550
OFG Bancorp Ser. C, 8.75% cv. pfd. (Puerto Rico)(NON) 2,637 4,093,778
Wells Fargo & Co. Ser. L, 7.50% cv. pfd. 7,840 9,486,400
23,062,728
Consumer (0.8%)
Stanley Black & Decker, Inc. $6.25 cv. pfd. 68,260 7,740,684
7,740,684
Electric utilities (2.7%)
Dominion Resources, Inc. Ser. A, $3.063 cv. pfd. 133,595 7,401,163
Dominion Resources, Inc./VA $3.188 cv. pfd.(NON) 64,368 3,263,458
Exelon Corp. $3.25 cv. pfd.(NON) 123,803 6,078,727
NextEra Energy, Inc. $2.799 cv. pfd. 147,105 9,117,568
25,860,916
Energy (oil field) (0.5%)
McDermott International, Inc. $1.563 cv. pfd. 167,996 4,270,458
4,270,458
Financial (1.2%)
AMG Capital Trust II $2.575 cv. pfd. 187,160 11,791,080
11,791,080
Food (1.4%)
Post Holdings, Inc. $5.25 cv. pfd.(NON) 28,820 2,809,662
Post Holdings, Inc. 144A $3.75 cv. pfd. 47,289 5,073,164
Tyson Foods, Inc. $2.375 cv. pfd.(NON) 103,682 5,121,891
13,004,717
Forest products and packaging (1.0%)
Weyerhaeuser Co. Ser. A, $3.188 cv. pfd.(R) 172,469 9,475,447
9,475,447
Health-care services (0.5%)
AmSurg Corp. Ser. A-1, $5.25 cv. pfd.(NON) 42,443 4,432,747
4,432,747
Insurance (1.1%)
Maiden Holdings, Ltd. Ser. B, $3.625 cv. pfd. (Bermuda) 127,032 5,970,504
MetLife, Inc. $1.25 cv. pfd. 153,258 4,637,587
10,608,091
Natural gas utilities (0.5%)
Laclede Group, Inc. $3.375 cv. pfd.(NON) 93,483 5,057,430
5,057,430
Oil and gas (2.2%)
Chesapeake Energy Corp. 144A 5.75% cv. pfd. 14,068 16,494,730
Halcon Resources Corp. Ser. A, 5.75% cv. pfd. 4,354 4,488,974
20,983,704
Railroads (0.9%)
Genesee & Wyoming, Inc. $5.00 cv. pfd. 67,903 8,861,342
8,861,342
Real estate (1.0%)
Alexandria Real Estate Equities, Inc. Ser. D, $1.75 cv. pfd.(R) 360,112 9,903,080
9,903,080
Telecommunications (2.5%)
American Tower Corp. Ser. A, $5.25 cv. pfd.(NON)(R) 74,975 8,275,366
Crown Castle International Corp. Ser. A, $4.50 cv. pfd.(R) 101,082 10,133,471
Iridium Communications, Inc. Ser. B, 6.75% cv. pfd.(NON) 5,147 1,661,915
Iridium Communications, Inc. 144A $7.00 cv. pfd. 33,766 3,684,715
23,755,467
Total convertible preferred stocks (cost $183,331,556) $197,999,098

COMMON STOCKS (3.9%)(a)
Shares Value
Actavis PLC(NON) 10,405 $2,229,375
Apple, Inc. 24,635 2,354,367
Brazil Ethanol, Inc. 144A (Unit)(F)(NON) 312,500 31
Celgene Corp.(NON) 25,940 2,260,671
Delta Air Lines, Inc. 60,930 2,282,438
DISH Network Corp. Class A(NON) 35,855 2,217,990
Exxon Mobil Corp. 22,805 2,256,327
Ford Motor Co. 126,610 2,154,902
General Motors Co. 61,387 2,076,108
Goodyear Tire & Rubber Co. (The) 84,526 2,127,519
Hartford Financial Services Group, Inc. (The) 134,000 4,577,440
Intel Corp. 86,185 2,920,810
Jazz Pharmaceuticals PLC(NON) 17,580 2,456,453
Priceline Group, Inc. (The)(NON) 3,810 4,733,735
PulteGroup, Inc. 114,395 2,019,059
Total common stocks (cost $34,400,097) $36,667,225

CORPORATE BONDS AND NOTES (0.1%)(a)
Principal amount Value
First Data Holdings, Inc. 144A sr. unsec. notes 14 1/2s, 2019(PIK) $1,084,608 $1,225,607
Total corporate bonds and notes (cost $1,061,735) $1,225,607

WARRANTS (—%)(a)(NON)
Expiration date Strike Price Warrants Value
Tower Semiconductor, Ltd. 144A (Israel)(F) 6/30/15 $1.70 1,085,630 $—
Total warrants (cost $217,126) $—

SHORT-TERM INVESTMENTS (5.1%)(a)
Shares Value
Putnam Short Term Investment Fund 0.05%(AFF) 48,173,274 $48,173,274
Total short-term investments (cost $48,173,274) $48,173,274

TOTAL INVESTMENTS
Total investments (cost $846,467,800) $939,618,277













Key to holding's currency abbreviations
EUR Euro
USD / $ United States Dollar
Key to holding's abbreviations
FRN Floating Rate Notes: the rate shown is the current interest rate at the close of the reporting period
Notes to the fund's portfolio
Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from November 1, 2013 through July 31, 2014 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “OTC”, if any, represent over-the-counter.
(a) Percentages indicated are based on net assets of $944,729,846.
(b) The aggregate identified cost on a tax basis is $846,303,901, resulting in gross unrealized appreciation and depreciation of $118,961,883 and $25,647,507, respectively, or net unrealized appreciation of $93,314,376.
(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.
(PIK) Income may be received in cash or additional securities at the discretion of the issuer.
(AFF) Affiliated company. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with Putnam Short Term Investment Fund, which is under common ownership and control, were as follows:
Name of affiliate Fair value at the beginning of the reporting period Purchase cost Sale proceeds Investment income Fair value at the end of the reporting period
Putnam Short Term Investment Fund * $26,804,657 $290,201,315 $268,832,698 $15,343 $48,173,274
* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management.
(F) Security is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities' valuation inputs.
(R) Real Estate Investment Trust.
At the close of the reporting period, the fund maintained liquid assets totaling $1,721,750 to cover the settlement of certain securities.
Debt obligations are considered secured unless otherwise indicated.
144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
The dates shown on debt obligations are the original maturity dates.
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 under 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 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. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value and are classified as Level 2 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, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These 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 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 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*:
    Communication services $2,217,990 $— $—
    Consumer cyclicals 13,111,323 — —
    Energy 2,256,327 — 31
    Financials 4,577,440 — —
    Health care 6,946,499 — —
    Technology 5,275,177 — —
    Transportation 2,282,438 — —
Total common stocks 36,667,194 — 31
Convertible bonds and notes — 655,047,441 505,632
Convertible preferred stocks 27,619,769 170,379,329 —
Corporate bonds and notes — 1,225,607 —
Warrants — — —
Short-term investments 48,173,274 — —
Totals by level $112,460,237 $826,652,377 $505,663


* Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.
At the start and close of the reporting period, Level 3 investments in securities were not considered a significant portion of the fund's portfolio.

Fair Value of Derivative Instruments as of the close of the reporting period
Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Fair value Fair value
Equity contracts $— $—
Total $— $—


The volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was as follows based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period:
Warrants (number of warrants)1,100,000

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 Securities Fund
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: September 26, 2014

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 26, 2014

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: September 26 2014