| 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, 2017 |
| Date of reporting period: | January 31, 2017 |
Item 1. Schedule of Investments: |
| Putnam Convertible Securities Fund | ||||||
| The fund's portfolio | ||||||
| 1/31/17 (Unaudited) | ||||||
| CONVERTIBLE BONDS AND NOTES (72.1%)(a) | ||||||
| Principal amount | Value | |||||
| Aerospace and defense (0.8%) | ||||||
| Aerojet Rocketdyne Holdings, Inc. 144A cv. sr. unsec. sub. notes 2.25%, 12/15/23 | $5,168,000 | $5,109,860 | ||||
| 5,109,860 | ||||||
| Automotive (1.5%) | ||||||
| Navistar International Corp. cv. sr. unsec. sub. bonds 4.75%, 4/15/19 | 6,436,000 | 6,359,573 | ||||
| Tesla Motors, Inc. cv. sr. unsec. sub. notes 1.25%, 3/1/21 | 4,045,000 | 3,819,997 | ||||
| 10,179,570 | ||||||
| Biotechnology (4.2%) | ||||||
| ARIAD Pharmaceuticals, Inc. 144A cv. sr. unsec. notes 3.625%, 6/15/19 | 789,000 | 2,020,333 | ||||
| BioMarin Pharmaceutical, Inc. cv. sr. unsec. sub. notes 1.50%, 10/15/20 | 5,569,000 | 6,710,645 | ||||
| Emergent BioSolutions, Inc. cv. sr. unsec. unsub. bonds 2.875%, 1/15/21 | 4,725,000 | 5,779,266 | ||||
| Illumina, Inc. cv. sr. unsec. sub. notes zero %, 6/15/19 | 4,335,000 | 4,297,069 | ||||
| Incyte Corp. cv. sr. unsec. notes 1.25%, 11/15/20 | 1,115,000 | 2,680,878 | ||||
| Medicines Co. (The) cv. sr. unsec. notes 2.50%, 1/15/22 | 3,220,000 | 4,033,050 | ||||
| Merrimack Pharmaceuticals, Inc. cv. sr. unsec. unsub. notes 4.50%, 7/15/20 | 2,734,000 | 2,325,609 | ||||
| 27,846,850 | ||||||
| Broadcasting (2.5%) | ||||||
| Liberty Media Corp. cv. sr. unsec. bonds 1.375%, 10/15/23 | 10,576,000 | 11,435,300 | ||||
| Liberty Media Corp. 144A cv. sr. unsec. unsub. bonds 2.25%, 9/30/46 | 5,100,000 | 5,450,625 | ||||
| 16,885,925 | ||||||
| Cable television (2.1%) | ||||||
| DISH Network Corp. 144A cv. sr. unsec. bonds 3.375%, 8/15/26 | 12,182,000 | 14,230,099 | ||||
| 14,230,099 | ||||||
| Capital goods (1.2%) | ||||||
| Dycom Industries, Inc. cv. sr. unsec. notes 0.75%, 9/15/21 | 7,235,000 | 7,868,063 | ||||
| 7,868,063 | ||||||
| Commercial and consumer services (5.3%) | ||||||
| Euronet Worldwide, Inc. cv. sr. unsec. bonds 1.50%, 10/1/44 | 6,134,000 | 6,985,093 | ||||
| Huron Consulting Group, Inc. cv. sr. unsec. unsub. notes 1.25%, 10/1/19 | 4,161,000 | 3,945,148 | ||||
| Macquarie Infrastructure Corp. cv. sr. unsec. unsub. notes 2.00%, 10/1/23 | 8,634,000 | 8,472,113 | ||||
| Priceline Group, Inc. (The) cv. sr. unsec. Bonds 0.90%, 9/15/21 | 2,485,000 | 2,680,694 | ||||
| Priceline Group, Inc. (The) cv. sr. unsec. unsub. notes 1.00%, 3/15/18 | 7,936,000 | 13,332,480 | ||||
| 35,415,528 | ||||||
| Communications equipment (0.5%) | ||||||
| Ciena Corp. 144A cv. sr. unsec. notes 3.75%, 10/15/18 | 2,574,000 | 3,463,639 | ||||
| 3,463,639 | ||||||
| Components (0.7%) | ||||||
| Finisar Corp. cv. sr. unsec. unsub. bonds 0.50%, 12/15/36 | 4,510,000 | 4,541,006 | ||||
| 4,541,006 | ||||||
| Computers (6.0%) | ||||||
| Akamai Technologies, Inc. cv. sr. unsec. bonds zero %, 2/15/19 | 2,944,000 | 3,085,680 | ||||
| Avid Technology, Inc. cv. sr. unsec. notes 2.00%, 6/15/20 | 5,874,000 | 4,163,198 | ||||
| Citrix Systems, Inc. cv. sr. unsec. notes 0.50%, 4/15/19 | 6,215,000 | 7,186,094 | ||||
| Electronics For Imaging, Inc. cv. sr. unsec. unsub. bonds 0.75%, 9/1/19 | 6,885,000 | 7,207,734 | ||||
| Inseego Corp. cv. sr. unsec. sub. notes 5.50%, 6/15/22 | 2,166,000 | 2,167,354 | ||||
| ServiceNow, Inc. cv. sr. unsec. unsub. bonds zero %, 11/1/18 | 5,135,000 | 6,813,503 | ||||
| Synchronoss Technologies, Inc. cv. sr. unsec. notes 0.75%, 8/15/19 | 5,987,000 | 6,245,189 | ||||
| Verint Systems, Inc. cv. sr. unsec. notes 1.50%, 6/1/21 | 3,559,000 | 3,365,479 | ||||
| 40,234,231 | ||||||
| Conglomerates (0.8%) | ||||||
| Siemens Financieringsmaatschappij NV cv. company guaranty sr. unsec. bonds 1.65%, 8/16/19 (Netherlands) | 4,750,000 | 5,504,300 | ||||
| 5,504,300 | ||||||
| Construction (0.5%) | ||||||
| Cemex SAB de CV cv. unsec. sub. notes 3.75%, 3/15/18 (Mexico) | 2,910,000 | 3,466,538 | ||||
| 3,466,538 | ||||||
| Consumer finance (0.4%) | ||||||
| Encore Capital Group, Inc. cv. company guaranty sr. unsec. bonds 3.00%, 7/1/20 | 2,618,000 | 2,505,099 | ||||
| 2,505,099 | ||||||
| Electronics (10.3%) | ||||||
| GT Advanced Technologies, Inc. cv. sr. unsec. sub. notes 3.00%, 12/15/20(F) | 2,944,000 | 294 | ||||
| Inphi Corp. 144A cv. sr. unsec. notes 0.75%, 9/1/21 | 5,325,000 | 5,741,016 | ||||
| Intel Corp. cv. jr. unsec. sub. notes 3.25%, 8/1/39 | 8,075,000 | 14,373,500 | ||||
| Microchip Technology, Inc. cv. sr. unsec. sub. bonds 1.625%, 2/15/25 | 11,697,000 | 15,856,453 | ||||
| Micron Technology, Inc. cv. sr. unsec. bonds 3.00%, 11/15/43 | 6,270,000 | 6,414,994 | ||||
| Micron Technology, Inc. cv. sr. unsec. bonds Ser. E, 1.625%, 2/15/33 | 3,083,000 | 6,855,821 | ||||
| NXP Semiconductors NV cv. sr. unsec. bonds 1.00%, 12/1/19 | 5,854,000 | 6,633,314 | ||||
| ON Semiconductor Corp. cv. company guaranty sr. unsec. unsub. notes 1.00%, 12/1/20 | 8,095,000 | 8,514,928 | ||||
| TTM Technologies, Inc. cv. sr. unsec. notes 1.75%, 12/15/20 | 2,645,000 | 4,301,431 | ||||
| 68,691,751 | ||||||
| Energy (oil field) (0.5%) | ||||||
| SEACOR Holdings, Inc. cv. sr. unsec. unsub. bonds 2.50%, 12/15/27 | 3,108,000 | 3,263,400 | ||||
| 3,263,400 | ||||||
| Entertainment (0.6%) | ||||||
| Live Nation Entertainment, Inc. cv. sr. unsec. bonds 2.50%, 5/15/19 | 3,738,000 | 4,048,721 | ||||
| 4,048,721 | ||||||
| Health-care services (2.0%) | ||||||
| Brookdale Senior Living, Inc. cv. sr. unsec. unsub. notes 2.75%, 6/15/18 | 3,377,000 | 3,326,345 | ||||
| HealthSouth Corp. cv. sr. unsec. sub. notes 2.00%, 12/1/43 | 5,304,000 | 6,023,355 | ||||
| Medidata Solutions, Inc. cv. sr. unsec. notes 1.00%, 8/1/18 | 3,638,000 | 3,913,124 | ||||
| 13,262,824 | ||||||
| Investment banking/Brokerage (0.7%) | ||||||
| Hercules Capital, Inc. 144A cv. sr. unsec. notes 4.375%, 2/1/22 | 4,904,000 | 4,876,415 | ||||
| 4,876,415 | ||||||
| Media (1.6%) | ||||||
| Liberty Interactive, LLC 144A cv. sr. unsec. bonds 1.75%, 9/30/46 | 9,315,000 | 10,450,266 | ||||
| 10,450,266 | ||||||
| Medical technology (2.2%) | ||||||
| China Medical Technologies, Inc. cv. sr. unsec. bonds Ser. CMT, 4.00%, 8/15/17 (China) (In default)(F)(NON) | 3,213,000 | 257,040 | ||||
| China Medical Technologies, Inc. 144A cv. sr. unsec. notes 6.25%, 12/15/17 (China) (In default)(F)(NON) | 3,544,000 | 248,080 | ||||
| Hologic, Inc. cv. sr. unsec. unsub. notes stepped-coupon 2.00% (zero %, 3/1/18) 3/1/42(STP) | 4,390,000 | 5,997,838 | ||||
| Nevro Corp. cv. sr. unsec. unsub. notes 1.75%, 6/1/21 | 1,968,000 | 2,317,320 | ||||
| Wright Medical Group, Inc. cv. sr. unsec. notes 2.00%, 2/15/20 | 5,606,000 | 6,086,014 | ||||
| 14,906,292 | ||||||
| Oil and gas (3.5%) | ||||||
| Chesapeake Energy Corp. 144A cv. sr. unsec. bonds 5.50%, 9/15/26 | 7,451,000 | 7,939,972 | ||||
| Oasis Petroleum, Inc. cv. sr. unsec. notes 2.625%, 9/15/23 | 3,649,000 | 4,862,293 | ||||
| Stone Energy Corp. cv. company guaranty sr. unsec. sub. notes 1.75%, 3/1/17 (In default)(NON) | 5,345,000 | 3,140,188 | ||||
| Whiting Petroleum Corp. cv. company guaranty sr. unsec. unsub. notes 1.25%, 4/1/20 | 7,667,000 | 6,809,254 | ||||
| 22,751,707 | ||||||
| Pharmaceuticals (4.6%) | ||||||
| Clovis Oncology, Inc. cv. sr. unsec. notes 2.50%, 9/15/21 | 5,015,000 | 6,538,306 | ||||
| Impax Laboratories, Inc. cv. sr. unsec. notes 2.00%, 6/15/22 | 5,405,000 | 4,354,403 | ||||
| Jazz Investments I, Ltd. cv. company guaranty sr. unsec. sub. bonds 1.875%, 8/15/21 (Ireland) | 11,131,000 | 11,179,698 | ||||
| Sucampo Pharmaceuticals, Inc. cv. sr. unsec. notes 3.25%, 12/15/21 | 5,149,000 | 5,010,621 | ||||
| Teligent, Inc. cv. sr. unsec. notes 3.75%, 12/15/19 | 3,620,000 | 3,443,525 | ||||
| 30,526,553 | ||||||
| Real estate (3.3%) | ||||||
| Blackstone Mortgage Trust, Inc. cv. sr. unsec. unsub. notes 5.25%, 12/1/18(R) | 7,500,000 | 8,367,188 | ||||
| Colony Starwood Homes 144A cv. sr. unsec. notes 3.50%, 1/15/22(R) | 4,503,000 | 4,556,473 | ||||
| Starwood Property Trust, Inc. cv. sr. unsec. unsub. notes 4.00%, 1/15/19(R) | 7,815,000 | 8,791,875 | ||||
| 21,715,536 | ||||||
| Retail (0.4%) | ||||||
| GNC Holdings, Inc. 144A cv. company guaranty sr. unsec. notes 1.50%, 8/15/20 | 3,868,000 | 2,388,490 | ||||
| 2,388,490 | ||||||
| Semiconductor (5.3%) | ||||||
| Cypress Semiconductor Corp. 144A cv. sr. unsec. notes 4.50%, 1/15/22 | 4,016,000 | 4,618,400 | ||||
| Integrated Device Technology, Inc. cv. sr. unsec. unsub. notes 0.875%, 11/15/22 | 6,485,000 | 6,890,313 | ||||
| Jazz US Holdings, Inc. cv. company guaranty sr. unsec. notes 8.00%, 12/31/18 | 1,523,000 | 3,263,028 | ||||
| Novellus Systems, Inc. cv. company guaranty sr. unsec. notes 2.625%, 5/15/41 | 3,800,000 | 12,922,375 | ||||
| Teradyne, Inc. 144A cv. sr. unsec. notes 1.25%, 12/15/23 | 6,610,000 | 7,461,038 | ||||
| 35,155,154 | ||||||
| Shipping (0.7%) | ||||||
| Atlas Air Worldwide Holdings, Inc. cv. sr. unsec. bonds 2.25%, 6/1/22 | 1,790,000 | 1,854,888 | ||||
| Scorpio Tankers, Inc. 144A cv. sr. unsec. sub. notes 2.375%, 7/1/19 | 3,171,000 | 2,665,622 | ||||
| 4,520,510 | ||||||
| Software (2.2%) | ||||||
| Nice Systems, Inc. 144A cv. company guaranty sr. unsec. notes 1.25%, 1/15/24 | 4,673,000 | 4,982,586 | ||||
| Red Hat, Inc. cv. sr. unsec. unsub. bonds 0.25%, 10/1/19 | 5,045,000 | 6,079,225 | ||||
| Safeguard Scientifics, Inc. cv. sr. unsec. bonds 5.25%, 5/15/18 | 3,545,000 | 3,571,588 | ||||
| 14,633,399 | ||||||
| Technology services (5.3%) | ||||||
| Fidelity National Financial, Inc. cv. sr. unsec. unsub. notes 4.25%, 8/15/18 | 2,935,000 | 5,846,153 | ||||
| j2 Global, Inc. cv. sr. unsec. notes 3.25%, 6/15/29 | 6,645,000 | 8,999,822 | ||||
| Proofpoint, Inc. cv. sr. unsec. unsub. notes 0.75%, 6/15/20 | 6,117,000 | 7,313,638 | ||||
| salesforce.com, Inc. cv. sr. unsec. unsub. notes 0.25%, 4/1/18 | 6,985,000 | 8,827,294 | ||||
| Twitter, Inc. cv. sr. unsec. unsub. bonds 1.00%, 9/15/21 | 4,740,000 | 4,322,288 | ||||
| 35,309,195 | ||||||
| Telecommunications (0.5%) | ||||||
| CalAmp Corp. cv. sr. unsec. notes 1.625%, 5/15/20 | 3,800,000 | 3,662,250 | ||||
| Powerwave Technologies, Inc. cv. unsec. sub. notes 3.875%, 10/1/27 (In default)(F)(NON) | 5,121,000 | 512 | ||||
| 3,662,762 | ||||||
| Tobacco (0.7%) | ||||||
| Vector Group, Ltd. cv. sr. unsec. sub. notes 1.75%, 4/15/20 | 4,110,000 | 4,713,656 | ||||
| 4,713,656 | ||||||
| Transportation services (0.6%) | ||||||
| Echo Global Logistics, Inc. cv. sr. unsec. notes 2.50%, 5/1/20 | 4,211,000 | 4,095,198 | ||||
| 4,095,198 | ||||||
| Trucks and parts (0.6%) | ||||||
| Horizon Global Corp. cv. sr. unsec. unsub. notes 2.75%, 7/1/22 | 4,018,000 | 4,201,321 | ||||
| 4,201,321 | ||||||
| Total convertible bonds and notes (cost $446,499,923) | $480,423,858 | |||||
| CONVERTIBLE PREFERRED STOCKS (20.5%)(a) | ||||||
| Shares | Value | |||||
| Banking (2.3%) | ||||||
| Bank of America Corp. Ser. L, 7.25% cv. pfd. | 5,495 | $6,497,838 | ||||
| Wells Fargo & Co. Ser. L, 7.50% cv. pfd. | 6,988 | 8,398,703 | ||||
| 14,896,541 | ||||||
| Electric utilities (2.9%) | ||||||
| DTE Energy Co. $3.25 cv. pfd. | 111,020 | 5,828,550 | ||||
| Exelon Corp. $3.25 cv. pfd. | 150,663 | 7,468,365 | ||||
| NextEra Energy, Inc. $3.06 cv. pfd. | 122,950 | 6,156,107 | ||||
| 19,453,022 | ||||||
| Financial (1.2%) | ||||||
| AMG Capital Trust II $2.575 cv. pfd.(S) | 141,220 | 8,031,888 | ||||
| 8,031,888 | ||||||
| Food (0.8%) | ||||||
| Tyson Foods, Inc. $2.375 cv. pfd. | 81,283 | 5,540,249 | ||||
| 5,540,249 | ||||||
| Health-care services (1.1%) | ||||||
| Anthem, Inc. $2.63 cv. pfd. | 149,899 | 7,261,108 | ||||
| 7,261,108 | ||||||
| Investment banking/Brokerage (0.7%) | ||||||
| Mandatory Exchangeable Trust 144A $5.75 cv. pfd. | 40,044 | 4,943,031 | ||||
| 4,943,031 | ||||||
| Manufacturing (2.2%) | ||||||
| Belden, Inc. $6.75 cv. pfd. | 68,651 | 7,330,554 | ||||
| Rexnord Corp. $2.88 cv. pfd.(NON) | 139,118 | 7,384,383 | ||||
| 14,714,937 | ||||||
| Oil and gas (1.7%) | ||||||
| Hess Corp. $2.00 cv. pfd. | 119,075 | 7,679,147 | ||||
| Southwestern Energy Co. Ser. B, $3.125 cv. pfd. | 163,443 | 3,616,994 | ||||
| 11,296,141 | ||||||
| Pharmaceuticals (1.8%) | ||||||
| Allergan PLC Ser. A, 5.50% cv. pfd. | 15,225 | 12,050,435 | ||||
| 12,050,435 | ||||||
| Power producers (0.3%) | ||||||
| Dynegy, Inc. $7.00 cv. pfd. | 32,928 | 2,220,994 | ||||
| 2,220,994 | ||||||
| Real estate (2.0%) | ||||||
| Alexandria Real Estate Equities, Inc. Ser. D, $1.75 cv. pfd.(R) | 216,757 | 7,383,285 | ||||
| iStar, Inc. $2.25 cv. pfd.(R) | 118,715 | 5,838,404 | ||||
| 13,221,689 | ||||||
| Regional Bells (—%) | ||||||
| Cincinnati Bell, Inc. Ser. B, $3.378 cum. cv. pfd. | 190 | 9,500 | ||||
| 9,500 | ||||||
| Telecommunications (3.5%) | ||||||
| American Tower Corp. $5.50 cv. pfd.(R) | 95,575 | 9,611,261 | ||||
| T-Mobile US, Inc. Ser. A, $2.75 cv. pfd. | 130,236 | 13,280,165 | ||||
| 22,891,426 | ||||||
| Total convertible preferred stocks (cost $127,707,553) | $136,530,961 | |||||
| COMMON STOCKS (3.9%)(a) | ||||||
| Shares | Value | |||||
| Alphabet, Inc. Class C(NON) | 1,740 | $1,386,415 | ||||
| Bank of America Corp. | 143,265 | 3,243,520 | ||||
| Comcast Corp. Class A | 25,785 | 1,944,705 | ||||
| GT Advanced Technologies, Inc.(F) | 476 | 5 | ||||
| JPMorgan Chase & Co. | 37,665 | 3,187,589 | ||||
| Live Nation Entertainment, Inc.(NON) | 97,130 | 2,779,861 | ||||
| NVIDIA Corp.(S) | 95,135 | 10,386,839 | ||||
| Xilinx, Inc. | 56,710 | 3,300,510 | ||||
| Total common stocks (cost $20,212,445) | $26,229,444 | |||||
| WARRANTS (—%)(a)(NON) | ||||||
| Expiration date | Strike Price | Warrants | Value | |||
| GT Advanced Technologies, Inc.(F) | 3/17/19 | $0.00 | 487 | $5 | ||
| GT Advanced Technologies, Inc.(F) | 3/17/19 | 0.00 | 331 | 3 | ||
| Total warrants (cost $91,926) | $8 | |||||
| SHORT-TERM INVESTMENTS (5.4%)(a) | ||||||
| Shares | Value | |||||
| Putnam Cash Collateral Pool, LLC 0.94%(AFF) | 11,761,200 | $11,761,200 | ||||
| Putnam Short Term Investment Fund 0.74%(AFF) | 24,423,667 | 24,423,667 | ||||
| Total short-term investments (cost $36,184,867) | $36,184,867 | |||||
| TOTAL INVESTMENTS | ||||||
| Total investments (cost $630,696,714)(b) | $679,369,138 | |||||
| Notes to the fund's portfolio | ||||||
| Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from November 1, 2016 through January 31, 2017 (the reporting period). Within the following notes to the portfolio, references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures, references to "Putnam Management" represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to "OTC", if any, represent over-the-counter. | ||||||
| (a) | Percentages indicated are based on net assets of $666,530,465. | |||||
| (b) | The aggregate identified cost on a tax basis is $640,423,040, resulting in gross unrealized appreciation and depreciation of $69,818,039 and $30,871,941, respectively, or net unrealized appreciation of $38,946,098. | |||||
| (NON) | This security is non-income-producing. | |||||
| (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. | |||||
| (AFF) | Affiliated company. For investments in Putnam Cash Collateral Pool, LLC and Putnam Short Term Investment Fund, the rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with any company which is under common ownership or control were as follows: | |||||
| Name of affiliate | Fair value at the beginning of the reporting period | Purchase cost | Sale proceeds | Investment income | Fair value at the end of the reporting period | |
| Putnam Cash Collateral Pool, LLC*# | $9,165,600 | $32,992,225 | $30,396,625 | $20,803 | $11,761,200 | |
| Putnam Short Term Investment Fund** | 37,483,736 | 58,425,928 | 71,485,997 | 35,955 | 24,423,667 | |
| Totals | $46,649,336 | $91,418,153 | $101,882,622 | $56,758 | $36,184,867 | |
| * No management fees are charged to Putnam Cash Collateral Pool, LLC. | ||||||
| # The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. The risk of borrower default will be borne by the fund's agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. The fund received cash collateral of $11,761,200, which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close of the reporting period. At the close of the reporting period, the value of securities loaned amounted to $11,484,308. | ||||||
| ** Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. | ||||||
| (F) | This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities' valuation inputs. | |||||
| (R) | Real Estate Investment Trust. | |||||
| (S) | This security is on loan, in part or in entirety, at the close of the reporting period. | |||||
| Debt obligations are considered secured unless otherwise indicated. | ||||||
| 144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. | ||||||
| The dates shown on debt obligations are the original maturity dates. | ||||||
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 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. | ||||||
| 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. Short-term securities with remaining maturities of 60 days or less are valued using an independent pricing service approved by the Trustees, and are classified as Level 2 securities. | ||||||
| To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. | ||||||
| To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. 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 | $1,944,705 | $— | $— | |
| Consumer cyclicals | 2,779,861 | — | — | |
| Financials | 6,431,109 | — | — | |
| Technology | 15,073,764 | — | 5 | |
| Total common stocks | 26,229,439 | — | 5 | |
| Convertible bonds and notes | — | 479,917,932 | 505,926 | |
| Convertible preferred stocks | 17,452,248 | 119,078,713 | — | |
| Warrants | — | — | 8 | |
| Short-term investments | 24,423,667 | 11,761,200 | — | |
|
|
|
|
||
| Totals by level | $68,105,354 | $610,757,845 | $505,939 | |
| * Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation. | ||||
| During the reporting period, transfers within the fair value hierarchy, if any (other than certain transfers involving non-U.S. equity securities as described in the Security valuation note above), did not represent, in the aggregate, more than 1% of the fund's net assets measured as of the end of the period. Transfers are accounted for using the end of period pricing valuation method. | ||||
| At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and 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 | $8 | $— | ||
|
|
|
|||
| Total | $8 | $— | ||
| The volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period: | ||||
| Warrants (number of warrants) | 800 | |||
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: March 31, 2017 |
| Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. |
| By (Signature and Title): |
| /s/ Jonathan S. Horwitz Jonathan S. Horwitz Principal Executive Officer Date: March 31, 2017 |
| By (Signature and Title): |
| /s/ Janet C. Smith Janet C. Smith Principal Financial Officer Date: March 31, 2017 |
| Certifications | |
| I, Jonathan S. Horwitz, the Principal Executive Officer of the funds listed on Attachment A, certify that: | |
1. I have reviewed each report on Form N-Q of the funds listed on Attachment A: | |
2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report; | |
3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; | |
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have: | |
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared; | |
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and | |
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. The registrant's other certifying officer and I have disclosed to each registrant's auditors and the audit committee of each registrant's board of directors (or persons performing the equivalent functions): | |
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant's ability to record, process, summarize, and report financial information; and | |
b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant's internal control over financial reporting. | |
/s/ Jonathan S. Horwitz | |
| _____________________________ | |
Date: March 30, 2017 | |
| Jonathan S. Horwitz | |
| Principal Executive Officer | |
Certifications | |
| I, Janet C. Smith, the Principal Financial Officer of the funds listed on Attachment A, certify that: | |
1. I have reviewed each report on Form N-Q of the funds listed on Attachment A: | |
2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report; | |
3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; | |
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have: | |
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared; | |
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and | |
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |
5. The registrant's other certifying officer and I have disclosed to each registrant's auditors and the audit committee of each registrant's board of directors (or persons performing the equivalent functions): | |
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant's ability to record, process, summarize, and report financial information; and | |
b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant's internal control over financial reporting. | |
/s/ Janet C. Smith | |
| _______________________________ | |
Date: March 30, 2017 | |
| Janet C. Smith | |
| Principal Financial Officer | |
Attachment A | |
NQ | |
Period (s) ended January 31, 2017 | |
| Putnam Managed Municipal Income Trust | |
| Putnam Municipal Opportunities Trust | |
| Putnam Multi-Cap Value Fund | |
| The Putnam Fund for Growth and Income | |
| Putnam Capital Opportunities Fund | |
| Putnam Income Fund | |
| Putnam Global Income Trust | |
| Putnam Global Equity Fund | |
| Putnam Convertible Securities Fund | |
| Putnam Absolute Return 100 Fund | |
| Putnam Absolute Return 300 Fund | |
| Putnam Absolute Return 500 Fund | |
| Putnam Absolute Return 700 Fund | |
| Putnam Capital Spectrum Fund | |
| Putnam Equity Spectrum Fund | |
| Putnam Asia Pacific Equity Fund | |
| Putnam Global Sector Fund | |
| Putnam Multi-Cap Core Fund |