| 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: | 100 Federal Street, Boston, Massachusetts 02110 |
| Name and address of agent for service: | Robert T. Burns, Vice President 100 Federal Street Boston, Massachusetts 02110 |
| Copy to: | Bryan Chegwidden, Esq. Ropes & Gray LLP 1211 Avenue of the Americas New York, New York 10036 |
| Registrant’s telephone number, including area code: | (617) 292-1000 |
| Date of fiscal year end: | October 31, 2019 |
| Date of reporting period: | January 31, 2019 |
Item 1. Schedule of Investments: |
| Putnam Convertible Securities Fund | ||||||
| The fund's portfolio | ||||||
| 1/31/19 (Unaudited) | ||||||
| CONVERTIBLE BONDS AND NOTES (74.0%)(a) | ||||||
| Principal amount | Value | |||||
| Aerospace and defense (0.6%) | ||||||
| Kaman Corp. cv. sr. unsec. notes 3.25%, 5/1/24 | $3,640,000 | $4,033,327 | ||||
| 4,033,327 | ||||||
| Biotechnology (5.9%) | ||||||
| BioMarin Pharmaceutical, Inc. cv. sr. unsec. sub. notes 0.599%, 8/1/24 | 8,980,000 | 9,552,969 | ||||
| Exact Sciences Corp. cv. sr. unsec. notes 1.00%, 1/15/25 | 5,340,000 | 7,403,275 | ||||
| Illumina, Inc. 144A cv. sr. unsec. notes zero %, 8/15/23 | 8,925,000 | 9,021,551 | ||||
| Ligand Pharmaceuticals, Inc. 144A cv. sr. sub. unsec. notes 0.75%, 5/15/23 | 3,953,000 | 3,354,642 | ||||
| Medicines Co. (The) cv. sr. unsec. notes 2.50%, 1/15/22 | 8,380,000 | 7,676,533 | ||||
| Neurocrine Biosciences, Inc. cv. sr. unsec. notes 2.25%, 5/15/24 | 2,745,000 | 3,721,660 | ||||
| 40,730,630 | ||||||
| Broadcasting (2.1%) | ||||||
| Liberty Media Corp. cv. sr. unsec. bonds 1.375%, 10/15/23 | 7,426,000 | 8,393,608 | ||||
| Liberty Media Corp. cv. sr. unsec. notes 1.00%, 1/30/23 | 5,735,000 | 6,039,368 | ||||
| 14,432,976 | ||||||
| Cable television (1.3%) | ||||||
| DISH Network Corp. cv. sr. unsec. notes 3.375%, 8/15/26 | 10,972,000 | 9,320,714 | ||||
| 9,320,714 | ||||||
| Capital goods (0.7%) | ||||||
| Dycom Industries, Inc. cv. sr. unsec. notes 0.75%, 9/15/21 | 5,320,000 | 5,085,510 | ||||
| 5,085,510 | ||||||
| Commercial and consumer services (3.0%) | ||||||
| Priceline Group, Inc. (The) cv. sr. unsec. unsub. notes 0.35%, 6/15/20 | 8,490,000 | 12,078,282 | ||||
| Square, Inc. 144A cv. sr. unsec. notes 0.50%, 5/15/23 | 7,543,000 | 8,904,383 | ||||
| 20,982,665 | ||||||
| Computers (11.2%) | ||||||
| Akamai Technologies, Inc. 144A cv. sr. unsec. notes 0.125%, 5/1/25 | 8,716,000 | 8,318,437 | ||||
| Avid Technology, Inc. cv. sr. unsec. notes 2.00%, 6/15/20 | 3,294,000 | 2,981,070 | ||||
| Citrix Systems, Inc. cv. sr. unsec. notes 0.50%, 4/15/19 | 1,870,000 | 2,661,945 | ||||
| HubSpot, Inc. cv. sr. unsec. notes 0.25%, 6/1/22 | 4,043,000 | 7,003,923 | ||||
| MongoDB, Inc. 144A cv. sr. unsec. notes 0.75%, 6/15/24 | 1,880,000 | 2,800,433 | ||||
| New Relic, Inc. 144A cv. sr. unsec. notes 0.50%, 5/1/23 | 3,830,000 | 4,376,124 | ||||
| Nuance Communications, Inc. cv. sr. unsec. notes 1.25%, 4/1/25 | 5,460,000 | 5,212,078 | ||||
| Nutanix, Inc. 144A cv. sr. unsec. notes zero %, 1/15/23 | 3,229,000 | 4,010,638 | ||||
| RealPage, Inc. cv. sr. unsec. notes 1.50%, 11/15/22 | 6,020,000 | 8,651,486 | ||||
| ServiceNow, Inc. cv. sr. unsec. unsub. notes zero %, 6/1/22 | 7,190,000 | 12,022,622 | ||||
| Splunk, Inc. 144A cv. sr. unsec. notes 1.125%, 9/15/25 | 9,496,000 | 10,219,795 | ||||
| Vocera Communications, Inc. 144A cv. sr. unsec. notes 1.50%, 5/15/23 | 3,845,000 | 5,322,922 | ||||
| Western Digital Corp. 144A cv. company guaranty sr. unsec. notes 1.50%, 2/1/24 | 4,680,000 | 4,019,203 | ||||
| 77,600,676 | ||||||
| Construction (1.2%) | ||||||
| Cemex SAB de CV cv. unsec. sub. notes 3.72%, 3/15/20, (Mexico) | 3,160,000 | 3,110,059 | ||||
| Patrick Industries, Inc. 144A cv. sr. unsec. notes 1.00%, 2/1/23 | 6,031,000 | 5,001,961 | ||||
| 8,112,020 | ||||||
| Consumer services (2.9%) | ||||||
| Etsy, Inc. 144A cv. sr. unsec. notes zero %, 3/1/23 | 2,360,000 | 3,833,525 | ||||
| IAC FinanceCo, Inc. 144A cv. company guaranty sr. unsec. notes 0.875%, 10/1/22 | 4,874,000 | 7,220,797 | ||||
| Liberty Expedia Holdings, Inc. cv. sr. unsec. unsub. bonds 1.00%, 6/30/47 | 4,156,000 | 4,026,910 | ||||
| Wayfair, Inc. cv. sr. unsec. sub. notes 0.375%, 9/1/22 | 4,382,000 | 5,316,286 | ||||
| 20,397,518 | ||||||
| Electrical equipment (0.5%) | ||||||
| II-VI, Inc. cv. sr. unsec. notes 0.25%, 9/1/22 | 3,522,000 | 3,718,528 | ||||
| 3,718,528 | ||||||
| Electronics (8.3%) | ||||||
| GT Advanced Technologies, Inc. cv. sr. unsec. sub. notes 3.00%, 12/15/20,(F) | 2,944,000 | 294 | ||||
| Inphi Corp. cv. sr. unsec. notes 0.75%, 9/1/21 | 5,010,000 | 4,929,409 | ||||
| Intel Corp. cv. jr. unsec. sub. notes 3.25%, 8/1/39 | 4,025,000 | 9,229,848 | ||||
| Microchip Technology, Inc. cv. sr. unsec. sub. notes 1.625%, 2/15/27 | 18,907,000 | 20,230,490 | ||||
| Micron Technology, Inc. cv. sr. unsec. bonds 3.00%, 11/15/43 | 3,960,000 | 5,215,138 | ||||
| ON Semiconductor Corp. cv. company guaranty sr. unsec. unsub. notes 1.625%, 10/15/23 | 7,998,000 | 9,666,487 | ||||
| OSI Systems, Inc. cv. sr. unsec. unsub. notes 1.25%, 9/1/22 | 5,235,000 | 5,386,213 | ||||
| TTM Technologies, Inc. cv. sr. unsec. notes 1.75%, 12/15/20 | 2,020,000 | 2,571,713 | ||||
| 57,229,592 | ||||||
| Entertainment (1.1%) | ||||||
| Live Nation Entertainment, Inc. 144A cv. sr. unsec. notes 2.50%, 3/15/23 | 7,390,000 | 7,960,345 | ||||
| 7,960,345 | ||||||
| Gaming and lottery (0.9%) | ||||||
| Caesars Entertainment Corp. cv. sr. unsec. notes 5.00%, 10/1/24 | 4,283,825 | 6,320,608 | ||||
| 6,320,608 | ||||||
| Health-care services (1.7%) | ||||||
| Sarepta Therapeutics, Inc. cv. sr. unsec. notes 1.50%, 11/15/24, (acquired 8/13/18, cost $2,128,659)(RES) | 1,120,000 | 2,296,000 | ||||
| Teladoc, Inc. 144A cv. sr. unsec. notes 1.375%, 5/15/25 | 6,515,000 | 9,137,288 | ||||
| 11,433,288 | ||||||
| Insurance (0.2%) | ||||||
| Heritage Insurance Holdings, Inc. cv. company guaranty sr. unsec. bonds 5.875%, 8/1/37 | 1,054,000 | 1,219,638 | ||||
| 1,219,638 | ||||||
| Investment banking/Brokerage (1.1%) | ||||||
| JPMorgan Chase Financial Co., LLC cv. company guaranty sr. unsec. notes 0.25%, 5/1/23 | 8,160,000 | 7,684,908 | ||||
| 7,684,908 | ||||||
| Media (1.2%) | ||||||
| Liberty Interactive, LLC 144A cv. sr. unsec. bonds 1.75%, 9/30/46 | 7,150,000 | 8,031,559 | ||||
| 8,031,559 | ||||||
| Medical technology (2.8%) | ||||||
| China Medical Technologies, Inc. cv. sr. unsec. bonds Ser. CMT, 4.00%, 8/15/19, (China) (In default)(NON)(F) | 3,213,000 | 205,632 | ||||
| China Medical Technologies, Inc. 144A cv. sr. unsec. notes 6.25%, 12/17/19, (China) (In default)(NON)(F) | 3,544,000 | 198,464 | ||||
| CONMED Corp. 144A cv. sr. unsec. notes 2.625%, 2/1/24 | 5,421,000 | 5,523,793 | ||||
| Insulet Corp. 144A cv. sr. unsec. notes 1.375%, 11/15/24 | 6,130,000 | 6,702,554 | ||||
| Wright Medical Group, Inc. 144A cv. company guaranty sr. unsec. notes 1.625%, 6/15/23 | 6,335,000 | 6,816,878 | ||||
| 19,447,321 | ||||||
| Oil and gas (2.7%) | ||||||
| Cheniere Energy, Inc. cv. sr. unsec. unsub. notes 4.25%, 3/15/45 | 6,517,000 | 4,847,019 | ||||
| Chesapeake Energy Corp. cv. company guaranty sr. unsec. notes 5.50%, 9/15/26 | 9,766,000 | 8,682,843 | ||||
| Oasis Petroleum, Inc. cv. sr. unsec. notes 2.625%, 9/15/23 | 5,079,000 | 4,799,655 | ||||
| 18,329,517 | ||||||
| Pharmaceuticals (4.1%) | ||||||
| Clovis Oncology, Inc. cv. sr. unsec. notes 1.25%, 5/1/25 | 3,615,000 | 2,785,361 | ||||
| DexCom, Inc. 144A cv. sr. unsec. notes 0.75%, 12/1/23 | 6,783,000 | 7,503,694 | ||||
| Jazz Investments I, Ltd. cv. company guaranty sr. unsec. sub. bonds 1.875%, 8/15/21, (Ireland) | 9,221,000 | 9,034,985 | ||||
| Pacira Pharmaceuticals, Inc./Delaware cv. sr. unsec. sub. notes 2.375%, 4/1/22 | 4,481,000 | 4,444,592 | ||||
| Supernus Pharmaceuticals, Inc. 144A cv. sr. unsec. notes 0.625%, 4/1/23 | 4,751,000 | 4,688,643 | ||||
| 28,457,275 | ||||||
| Power producers (1.6%) | ||||||
| NRG Energy, Inc. 144A cv. company guaranty sr. unsec. bonds 2.75%, 6/1/48 | 9,820,000 | 10,935,758 | ||||
| 10,935,758 | ||||||
| Real estate (1.9%) | ||||||
| Blackstone Mortgage Trust, Inc. cv. sr. unsec. notes 4.75%, 3/15/23,(R) | 5,363,000 | 5,305,938 | ||||
| IH Merger Sub, LLC cv. company guaranty sr. unsec. notes 3.50%, 1/15/22,(R) | 6,927,000 | 7,544,196 | ||||
| 12,850,134 | ||||||
| Schools (0.9%) | ||||||
| Chegg, Inc. 144A cv. sr. unsec. notes 0.25%, 5/15/23 | 4,216,000 | 5,990,822 | ||||
| 5,990,822 | ||||||
| Shipping (0.8%) | ||||||
| Air Transport Services Group, Inc. cv. sr. unsec. notes 1.125%, 10/15/24 | 5,693,000 | 5,611,186 | ||||
| 5,611,186 | ||||||
| Software (6.7%) | ||||||
| Alteryx, Inc. 144A cv.sr. unsec. notes 0.50%, 6/1/23 | 3,770,000 | 6,552,848 | ||||
| Coupa Software, Inc. 144A cv. sr. unsec. notes 0.375%, 1/15/23 | 3,098,000 | 6,223,262 | ||||
| Everbridge, Inc. cv. sr. unsec. unsub. notes 1.50%, 11/1/22 | 3,903,000 | 7,472,614 | ||||
| Nice Systems, Inc. cv. company guaranty sr. unsec. notes 1.25%, 1/15/24 | 3,033,000 | 4,215,209 | ||||
| Okta, Inc. 144A cv. sr. unsec. notes 0.25%, 2/15/23 | 4,783,000 | 8,635,085 | ||||
| Red Hat, Inc. cv. sr. unsec. unsub. bonds 0.25%, 10/1/19 | 1,200,000 | 2,895,908 | ||||
| Workday, Inc. cv. sr. unsec. notes 0.25%, 10/1/22 | 7,906,000 | 10,686,714 | ||||
| 46,681,640 | ||||||
| Technology services (6.0%) | ||||||
| Carbonite, Inc. cv. sr. unsec. unsub. notes 2.50%, 4/1/22 | 3,565,000 | 4,590,540 | ||||
| DocuSign, Inc. 144A cv. sr. unsec. notes 0.50%, 9/15/23 | 7,879,000 | 7,898,698 | ||||
| J2 Global, Inc. cv. sr. unsec. notes 3.25%, 6/15/29 | 4,450,000 | 5,331,300 | ||||
| Palo Alto Networks, Inc. 144A cv. sr. unsec. notes 0.75%, 7/1/23 | 10,325,000 | 10,739,621 | ||||
| Twitter, Inc. cv. sr. unsec. unsub. bonds 1.00%, 9/15/21 | 7,780,000 | 7,253,870 | ||||
| Wix.com, Ltd. 144A cv. sr. unsec. notes zero %, 7/1/23, (Israel) | 5,383,000 | 5,586,381 | ||||
| 41,400,410 | ||||||
| Telecommunications (1.9%) | ||||||
| Powerwave Technologies, Inc. cv. unsec. sub. notes 3.875%, 10/1/27, (In default)(NON)(F) | 5,121,000 | 512 | ||||
| RingCentral, Inc. 144A cv. sr. unsec. notes zero %, 3/15/23 | 6,203,000 | 7,947,538 | ||||
| Twilio, Inc. 144A cv. sr. unsec. notes 0.25%, 6/1/23 | 2,980,000 | 5,045,438 | ||||
| 12,993,488 | ||||||
| Telephone (0.3%) | ||||||
| GCI Liberty, Inc. 144A cv. sr. unsec. bonds 1.75%, 9/30/46 | 2,060,000 | 2,196,388 | ||||
| 2,196,388 | ||||||
| Trucks and parts (0.4%) | ||||||
| Horizon Global Corp. cv. sr. unsec. unsub. notes 2.75%, 7/1/22 | 4,018,000 | 2,443,036 | ||||
| 2,443,036 | ||||||
| Total convertible bonds and notes (cost $488,457,358) | $511,631,477 | |||||
| CONVERTIBLE PREFERRED STOCKS (17.6%)(a) | ||||||
| Shares | Value | |||||
| Banking (3.3%) | ||||||
| Bank of America Corp. Ser. L, 7.25% cv. pfd.(S) | 11,940 | $15,474,539 | ||||
| Wells Fargo & Co. Ser. L, 7.50% cv. pfd. | 5,588 | 7,202,234 | ||||
| 22,676,773 | ||||||
| Chemicals (1.4%) | ||||||
| International Flavors & Fragrances, Inc. $3.00 cv. pfd. | 176,480 | 9,436,386 | ||||
| 9,436,386 | ||||||
| Electric utilities (3.6%) | ||||||
| DTE Energy Co. $3.25 cv. pfd. | 87,755 | 4,740,604 | ||||
| NextEra Energy, Inc. $3.06 cv. pfd.(S) | 141,415 | 8,387,324 | ||||
| Sempra Energy Ser. A, $6.00 cv. pfd. | 115,655 | 11,756,886 | ||||
| 24,884,814 | ||||||
| Electrical equipment (1.5%) | ||||||
| Fortive Corp. Ser. A, 5.00% cv. pfd. | 10,880 | 10,625,883 | ||||
| 10,625,883 | ||||||
| Financial (0.7%) | ||||||
| AMG Capital Trust II $2.575 cv. pfd. | 102,985 | 5,058,273 | ||||
| 5,058,273 | ||||||
| Manufacturing (0.5%) | ||||||
| Rexnord Corp. Ser. A, $2.88 cv. pfd. | 63,703 | 3,523,413 | ||||
| 3,523,413 | ||||||
| Medical technology (2.3%) | ||||||
| Becton Dickinson and Co. (BD) Ser. A, $3.063 cv. pfd. | 253,325 | 15,718,310 | ||||
| 15,718,310 | ||||||
| Power producers (0.5%) | ||||||
| Vistra Energy Corp. $7.00 cv. pfd. | 32,928 | 3,179,689 | ||||
| 3,179,689 | ||||||
| Real estate (1.8%) | ||||||
| Alexandria Real Estate Equities, Inc. Ser. D, $1.75 cv. pfd.(R) | 145,767 | 5,135,794 | ||||
| iStar, Inc. Ser. J, $2.25 cv. pfd.(R) | 61,040 | 2,671,696 | ||||
| QTS Realty Trust, Inc. Ser. B, $6.50 cv. pfd. | 47,109 | 4,874,764 | ||||
| 12,682,254 | ||||||
| Regional Bells (—%) | ||||||
| Cincinnati Bell, Inc. Ser. B, $3.378 cum. cv. pfd. | 190 | 7,085 | ||||
| 7,085 | ||||||
| Technology services (0.4%) | ||||||
| Mandatory Exchangeable Trust Securities 144A $5.75 cv. pfd. | 15,279 | 2,888,495 | ||||
| 2,888,495 | ||||||
| Telecommunications (1.6%) | ||||||
| Crown Castle International Corp. Ser. A, 6.875% cv. pfd. | 9,728 | 10,646,432 | ||||
| 10,646,432 | ||||||
| Total convertible preferred stocks (cost $110,499,998) | $121,327,807 | |||||
| COMMON STOCKS (4.0%)(a) | ||||||
| Shares | Value | |||||
| Bank of America Corp. | 114,975 | $3,273,338 | ||||
| Danaher Corp. | 58,765 | 6,518,214 | ||||
| GT Advanced Technologies, Inc.(NON)(F) | 476 | 5 | ||||
| Hess Corp. | 137,790 | 7,440,637 | ||||
| Lam Research Corp. | 12,085 | 2,049,374 | ||||
| Stanley Black & Decker, Inc. | 38,260 | 4,837,594 | ||||
| T-Mobile US, Inc.(NON) | 29,411 | 2,047,594 | ||||
| World Wrestling Entertainment, Inc. Class A | 20,815 | 1,713,904 | ||||
| Total common stocks (cost $26,709,051) | $27,880,660 | |||||
| CORPORATE BONDS AND NOTES (0.3%)(a) | ||||||
| Principal amount | Value | |||||
| Talos Production, LLC/Talos Production Finance, Inc. company guaranty notes 11.00%, 4/3/22 (acquired various dates from 5/8/18 to 6/6/18, cost $1,870,030)(RES) | $1,788,508 | $1,846,635 | ||||
| Total corporate bonds and notes (cost $1,864,683) | $1,846,635 | |||||
| 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 (5.6%)(a) | ||||||
| Shares | Value | |||||
| Putnam Short Term Investment Fund 2.65%(AFF) | 22,006,450 | $22,006,450 | ||||
| Putnam Cash Collateral Pool, LLC 2.65%(AFF) | 16,521,392 | 16,521,392 | ||||
| Total short-term investments (cost $38,527,842) | $38,527,842 | |||||
| TOTAL INVESTMENTS | ||||||
| Total investments (cost $666,150,858) | $701,214,429 | |||||
| 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, 2018 January 31, 2019 (the reporting period). Within the following notes to the portfolio, references to "Putnam Management" represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC, references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to "OTC", if any, represent over-the-counter. | ||||||
| (a) | Percentages indicated are based on net assets of $690,969,646. | |||||
| (NON) | This security is non-income-producing. | |||||
| (RES) | This security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $4,142,635, or 0.6% of net assets. | |||||
| (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 as of 10/31/18 |
Purchase cost |
Sale proceeds |
Investment income |
Shares outstanding and fair value as of 1/31/19 |
|
| Short-term investments | ||||||
| Putnam Cash Collateral Pool, LLC*# | $13,768,880 | $57,150,601 | $54,398,089 | $108,669 | $16,521,392 | |
| Putnam Short Term Investment Fund** | 49,444,063 | 43,726,753 | 71,164,366 | 186,036 | 22,006,450 | |
| Total Short-term investments | $63,212,943 | $100,877,354 | $125,562,455 | $294,705 | $38,527,842 | |
| * No management fees are charged to Putnam Cash Collateral Pool, LLC. There were no realized or unrealized gains or losses during the period. | ||||||
| # 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 $16,521,392, 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 $16,338,665. | ||||||
| ** Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period. | ||||||
| (F) | This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities are classified as 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. | ||||||
| Market quotations are not considered to be readily available for certain debt obligations (including short-term investments with remaining maturities of 60 days or less) and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2. | ||||||
| Many securities markets and exchanges outside the U.S. close prior to the scheduled close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value certain foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. The foreign equity securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. | ||||||
| To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management 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 | $2,047,594 | $— | $— | |
| Conglomerates | 6,518,214 | — | — | |
| Consumer cyclicals | 6,551,498 | — | — | |
| Energy | 7,440,637 | — | — | |
| Financials | 3,273,338 | — | — | |
| Technology | 2,049,374 | — | 5 | |
| Total common stocks | 27,880,655 | — | 5 | |
| Convertible bonds and notes | — | 511,226,575 | 404,902 | |
| Convertible preferred stocks | — | 121,327,807 | — | |
| Corporate bonds and notes | — | 1,846,635 | — | |
| Warrants | — | — | 8 | |
| Short-term investments | 22,006,450 | 16,521,392 | — | |
| Totals by level | $49,887,105 | $650,922,409 | $404,915 | |
| * 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 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 28, 2019 |
| 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 28, 2019 |
| By (Signature and Title): |
| /s/ Janet C. Smith Janet C. Smith Principal Financial Officer Date: March 28, 2019 |
| 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 28, 2019 | |
| 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 28, 2019 | |
| Janet C. Smith | |
| Principal Financial Officer | |
Attachment A | |
NQ | |
Period (s) ended January 31, 2019 | |
Putnam Capital Spectrum Fund | |
| Putnam Convertible Securities Fund | |
| Putnam Equity Spectrum Fund | |
| Putnam Fixed Income Absolute Return Fund | |
| Putnam Global Equity Fund | |
| Putnam Global Income Trust | |
| Putnam Global Sector Fund | |
| Putnam Income Fund | |
| Putnam Managed Municipal Income Trust | |
| Putnam Multi-Asset Absolute Return Fund | |
| Putnam Multi-Cap Core Fund | |
| Putnam Municipal Opportunities Trust | |
| Putnam Short Duration Bond Fund | |
| Putnam Sustainable Future Fund |