0000928816-13-001493.txt : 20130927 0000928816-13-001493.hdr.sgml : 20130927 20130927111303 ACCESSION NUMBER: 0000928816-13-001493 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20130731 FILED AS OF DATE: 20130927 DATE AS OF CHANGE: 20130927 EFFECTIVENESS DATE: 20130927 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM FUND FOR GROWTH & INCOME CENTRAL INDEX KEY: 0000081260 IRS NUMBER: 046013678 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-00781 FILM NUMBER: 131118508 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQ STREET 2: MAIKLSTOP A 14 CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6172921000 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM GROWTH FUND DATE OF NAME CHANGE: 19841025 0000081260 S000005660 PUTNAM FUND FOR GROWTH & INCOME C000015486 Class A Shares PGRWX C000015487 Class B Shares PGIBX C000015488 Class C Shares PGRIX C000015489 Class M Shares PGRMX C000015490 Class R Shares PGCRX C000015491 Class Y Shares PGIYX C000118081 Class R5 C000118082 Class R6 N-Q 1 a_putfundforgwthincome.htm THE PUTNAM FUND FOR GROWTH AND INCOME a_putfundforgwthincome.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: (811-00781)
Exact name of registrant as specified in charter: The Putnam Fund for Growth and Income
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:         John W. Gerstmayr, Esq.
Ropes & Gray LLP
800 Boylston Street
Boston, Massachusetts 02199-3600
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: October 31, 2013
Date of reporting period: July 31, 2013



Item 1. Schedule of Investments:













The Putnam Fund for Growth and Income

The fund's portfolio
7/31/13 (Unaudited)
COMMON STOCKS (97.5%)(a)
Shares Value
Aerospace and defense (5.5%)
Embraer SA ADR (Brazil)(S) 275,700 $9,365,529
European Aeronautic Defence and Space Co. NV (France) 416,789 24,972,360
General Dynamics Corp. 247,800 21,147,252
Honeywell International, Inc. 744,800 61,803,504
L-3 Communications Holdings, Inc. 402,900 37,530,135
Northrop Grumman Corp. 513,000 47,226,780
Raytheon Co. 407,900 29,303,536
United Technologies Corp. 527,200 55,656,504
287,005,600
Airlines (0.8%)
Delta Air Lines, Inc.(NON)(S) 1,258,800 26,724,324
Japan Airlines Co., Ltd. (Japan) 291,000 15,455,010
42,179,334
Auto components (0.9%)
Johnson Controls, Inc. 560,500 22,537,705
TRW Automotive Holdings Corp.(NON) 149,700 10,974,507
Valeo SA (France) 144,057 11,406,259
44,918,471
Automobiles (1.0%)
Ford Motor Co. 1,229,400 20,752,272
General Motors Co.(NON)(S) 836,000 29,987,320
50,739,592
Beverages (1.0%)
Beam, Inc. 117,200 7,616,828
Coca-Cola Enterprises, Inc. 621,000 23,312,340
Dr. Pepper Snapple Group, Inc. 403,900 18,878,286
49,807,454
Capital markets (4.3%)
Blackstone Group LP (The) 461,200 10,400,060
Charles Schwab Corp. (The) 1,435,000 31,699,150
Goldman Sachs Group, Inc. (The) 249,293 40,891,531
Greenhill & Co., Inc. 158,400 7,973,856
KKR & Co. LP 1,212,977 24,805,380
Morgan Stanley 2,009,800 54,686,658
State Street Corp. 780,500 54,377,435
224,834,070
Chemicals (2.5%)
Celanese Corp. Ser. A 273,400 13,139,604
Dow Chemical Co. (The) 988,400 34,633,536
HB Fuller Co. 250,026 10,038,544
Huntsman Corp. 269,000 4,847,380
LyondellBasell Industries NV Class A 745,600 51,230,176
Tronox, Ltd. Class A(S) 693,065 15,046,441
128,935,681
Commercial banks (3.3%)
Barclays PLC (United Kingdom) 2,072,863 9,082,159
Fifth Third Bancorp 544,200 10,464,966
Investors Bancorp, Inc. 527,400 11,708,280
KeyCorp 1,148,900 14,119,981
U.S. Bancorp 475,500 17,745,660
Wells Fargo & Co. 2,229,679 96,991,037
Zions Bancorp.(S) 337,500 10,003,500
170,115,583
Commercial services and supplies (0.9%)
ADT Corp. (The)(NON)(S) 305,421 12,241,274
Pitney Bowes, Inc.(S) 602,800 9,952,228
Tyco International, Ltd. 664,142 23,118,783
45,312,285
Communications equipment (2.7%)
Arris Group, Inc.(NON) 91,472 1,375,739
Cisco Systems, Inc. 3,844,957 98,238,651
Polycom, Inc.(NON) 2,164,900 20,696,444
Qualcomm, Inc. 334,700 21,604,885
141,915,719
Computers and peripherals (2.3%)
Apple, Inc. 149,900 67,829,750
Hewlett-Packard Co.(S) 1,189,400 30,543,792
NetApp, Inc. 313,600 12,895,232
SanDisk Corp.(NON) 172,500 9,508,200
120,776,974
Construction and engineering (0.3%)
KBR, Inc. 457,100 14,298,088
14,298,088
Consumer finance (0.6%)
Capital One Financial Corp. 448,038 30,923,583
30,923,583
Containers and packaging (0.2%)
MeadWestvaco Corp. 263,400 9,732,630
9,732,630
Diversified consumer services (0.2%)
ITT Educational Services, Inc.(NON)(S) 485,900 12,745,157
12,745,157
Diversified financial services (8.6%)
Bank of America Corp. 6,328,194 92,391,632
Citigroup, Inc. 2,618,380 136,522,333
CME Group, Inc. 358,400 26,514,432
JPMorgan Chase & Co. 3,411,682 190,133,038
445,561,435
Diversified telecommunication services (1.1%)
AT&T, Inc. 626,800 22,107,236
Verizon Communications, Inc. 672,959 33,298,011
55,405,247
Electric utilities (1.3%)
Edison International 378,000 18,843,300
FirstEnergy Corp.(S) 728,300 27,726,381
NextEra Energy, Inc. 150,000 12,991,500
PPL Corp. 254,800 8,094,996
67,656,177
Electrical equipment (0.8%)
Eaton Corp PLC 198,800 13,707,260
Schneider Electric SA (France) 335,071 26,619,706
40,326,966
Electronic equipment, instruments, and components (0.2%)
Corning, Inc. 852,500 12,949,475
12,949,475
Energy equipment and services (3.8%)
Cameron International Corp.(NON) 216,100 12,814,730
Halliburton Co. 1,350,700 61,038,133
McDermott International, Inc.(NON)(S) 1,944,500 16,819,925
Nabors Industries, Ltd. 1,249,800 19,234,422
Oil States International, Inc.(NON) 141,100 13,719,153
Petrofac, Ltd. (United Kingdom) 528,787 10,595,482
Schlumberger, Ltd. 263,839 21,458,026
Transocean, Ltd. (Switzerland)(S) 262,900 12,398,364
Weatherford International, Ltd.(NON) 2,170,200 30,295,992
198,374,227
Food and staples retail (1.5%)
CVS Caremark Corp. 757,300 46,566,377
Kroger Co. (The) 485,700 19,073,439
Walgreen Co. 260,800 13,105,200
78,745,016
Food products (0.9%)
Hillshire Brands Co. 438,620 15,443,810
Kellogg Co.(S) 113,400 7,511,616
Mondelez International, Inc. Class A 760,900 23,793,343
46,748,769
Health-care equipment and supplies (1.9%)
Baxter International, Inc. 578,600 42,260,944
Covidien PLC 595,272 36,686,613
St. Jude Medical, Inc.(S) 332,200 17,403,958
96,351,515
Health-care providers and services (3.4%)
Aetna, Inc. 691,400 44,367,138
Catamaran Corp.(NON) 205,100 10,829,280
CIGNA Corp. 132,800 10,335,824
Emeritus Corp.(NON) 285,700 6,625,383
Humana, Inc.(S) 347,800 31,740,228
UnitedHealth Group, Inc. 963,600 70,198,260
174,096,113
Household durables (0.5%)
PulteGroup, Inc.(NON) 617,000 10,260,710
Whirlpool Corp. 120,800 16,179,952
26,440,662
Household products (0.4%)
Procter & Gamble Co. (The) 281,900 22,636,570
22,636,570
Independent power producers and energy traders (1.0%)
Calpine Corp.(NON) 1,543,117 30,877,771
NRG Energy, Inc. 789,500 21,174,390
52,052,161
Industrial conglomerates (1.5%)
General Electric Co. 2,104,320 51,282,278
Siemens AG (Germany) 222,173 24,335,217
75,617,495
Insurance (6.2%)
ACE, Ltd. 217,800 19,902,564
Allstate Corp. (The) 749,800 38,224,804
American International Group, Inc.(NON) 883,725 40,218,325
Assured Guaranty, Ltd. 590,980 12,788,807
Chubb Corp. (The) 87,275 7,549,288
Everest Re Group, Ltd. 94,320 12,594,550
Hartford Financial Services Group, Inc. (The) 1,312,100 40,491,406
Lincoln National Corp. 606,400 25,268,688
MetLife, Inc. 1,540,587 74,595,223
Prudential Financial, Inc.(S) 244,900 19,339,753
Prudential PLC (United Kingdom) 984,988 17,427,518
XL Group PLC 307,300 9,633,855
318,034,781
Internet software and services (0.3%)
Yahoo!, Inc.(NON) 579,900 16,289,391
16,289,391
IT Services (0.5%)
Computer Sciences Corp. 443,900 21,156,274
Fidelity National Information Services, Inc. 150,500 6,495,580
27,651,854
Leisure equipment and products (0.2%)
Hasbro, Inc.(S) 262,800 12,088,800
12,088,800
Machinery (0.9%)
Ingersoll-Rand PLC 225,400 13,760,670
Joy Global, Inc.(S) 436,600 21,611,700
Stanley Black & Decker, Inc. 118,700 10,044,394
TriMas Corp.(NON) 94,931 3,515,295
48,932,059
Marine (0.2%)
Kirby Corp.(NON)(S) 120,300 10,160,538
10,160,538
Media (4.0%)
CBS Corp. Class B 742,800 39,249,552
Comcast Corp. Class A 663,400 29,906,072
DISH Network Corp. Class A 531,700 23,740,405
Liberty Global PLC Ser. C (United Kingdom)(NON) 304,400 23,487,504
Time Warner Cable, Inc. 180,380 20,575,947
Time Warner, Inc. 334,600 20,832,196
Viacom, Inc. Class B 458,600 33,372,322
Walt Disney Co. (The)(S) 233,600 15,102,240
206,266,238
Metals and mining (1.6%)
Barrick Gold Corp. (Canada) 781,500 13,262,055
Freeport-McMoRan Copper & Gold, Inc. Class B (Indonesia) 1,257,038 35,549,035
Goldcorp, Inc. (Canada) 168,700 4,762,401
Newmont Mining Corp.(S) 106,000 3,180,000
Nucor Corp.(S) 200,300 9,370,034
Rio Tinto PLC (United Kingdom) 158,742 7,164,493
ThyssenKrupp AG (Germany)(NON) 441,756 9,607,098
82,895,116
Multi-utilities (1.2%)
Ameren Corp. 736,000 26,356,160
CMS Energy Corp.(S) 271,100 7,588,089
National Grid PLC (United Kingdom) 784,916 9,409,460
PG&E Corp. 413,400 18,970,926
62,324,635
Multiline retail (1.0%)
Macy's, Inc. 495,800 23,966,972
Target Corp.(S) 377,800 26,918,250
50,885,222
Office electronics (0.3%)
Xerox Corp. 1,506,300 14,611,110
14,611,110
Oil, gas, and consumable fuels (10.9%)
Anadarko Petroleum Corp. 199,400 17,650,888
Cabot Oil & Gas Corp. 360,800 27,355,856
Cameco Corp. (Canada) 354,700 7,203,819
Chevron Corp. 741,500 93,347,435
CONSOL Energy, Inc. 210,400 6,528,712
Energen Corp. 131,500 7,875,535
Energy Transfer Equity L.P. 165,000 11,012,100
Exxon Mobil Corp. 533,092 49,977,375
Gulfport Energy Corp.(NON) 312,200 16,609,040
HRT Participacoes em Petroleo SA (Brazil)(NON) 1,107,000 820,054
Kodiak Oil & Gas Corp.(NON) 1,101,900 10,699,449
Marathon Oil Corp. 1,636,700 59,510,412
Nordic American Tankers, Ltd. (Norway)(S) 609,800 5,780,904
Occidental Petroleum Corp. 702,414 62,549,967
QEP Resources, Inc. 683,900 20,852,111
Royal Dutch Shell PLC ADR (United Kingdom) 1,415,386 96,741,633
Southwestern Energy Co.(NON) 891,400 34,577,406
Suncor Energy, Inc. (Canada) 548,964 17,349,208
Total SA ADR (France) 308,600 16,371,230
562,813,134
Paper and forest products (0.5%)
International Paper Co. 544,000 26,280,640
26,280,640
Personal products (0.4%)
Coty, Inc. Class A(NON) 571,945 9,831,735
Herbalife, Ltd.(S) 127,600 8,357,800
18,189,535
Pharmaceuticals (8.4%)
AbbVie, Inc. 443,900 20,188,572
Actavis, Inc.(NON) 142,000 19,066,340
AstraZeneca PLC ADR (United Kingdom)(S) 665,000 33,728,800
Eli Lilly & Co. 577,000 30,644,470
Johnson & Johnson 1,099,900 102,840,650
Merck & Co., Inc. 1,668,391 80,366,394
Pfizer, Inc. 2,947,334 86,150,573
Sanofi ADR (France) 207,300 10,671,804
Shire PLC ADR (United Kingdom) 130,700 14,292,045
Teva Pharmaceutical Industries, Ltd. ADR (Israel) 258,800 10,274,360
Zoetis, Inc. 813,938 24,263,492
432,487,500
Real estate investment trusts (REITs) (0.1%)
Equity Lifestyle Properties, Inc. 132,200 5,088,378
5,088,378
Semiconductors and semiconductor equipment (2.0%)
Fairchild Semiconductor International, Inc.(NON) 1,216,000 15,345,920
Intel Corp.(S) 909,500 21,191,350
Lam Research Corp.(NON) 388,550 19,124,431
Micron Technology, Inc.(NON) 1,251,800 16,586,350
Samsung Electronics Co., Ltd. (South Korea) 13,833 15,760,945
SK Hynix, Inc. (South Korea)(NON) 204,480 4,950,803
Xilinx, Inc.(S) 192,200 8,973,818
101,933,617
Software (1.0%)
Microsoft Corp. 991,600 31,562,628
Oracle Corp. 560,900 18,145,115
49,707,743
Specialty retail (2.1%)
American Eagle Outfitters, Inc. 614,100 12,060,924
Bed Bath & Beyond, Inc.(NON)(S) 390,100 29,830,947
Best Buy Co., Inc.(S) 269,600 8,112,264
Lowe's Cos., Inc. 671,000 29,913,180
Office Depot, Inc.(NON) 6,120,600 26,502,198
106,419,513
Thrifts and mortgage finance (0.2%)
Radian Group, Inc.(S) 587,900 8,259,995
8,259,995
Tobacco (1.3%)
Altria Group, Inc. 831,300 29,145,378
Philip Morris International, Inc. 410,500 36,608,390
65,753,768
Trading companies and distributors (0.4%)
Rexel SA (France) 206,479 5,008,584
WESCO International, Inc.(NON)(S) 181,900 13,784,382
18,792,966
Wireless telecommunication services (0.4%)
Vodafone Group PLC ADR (United Kingdom) 693,700 20,776,311
20,776,311
Total common stocks (cost $4,138,776,014) $5,033,844,893

WARRANTS (0.0%)(a)(NON)
Expiration date Strike Price Warrants Value
HRT Participacoes em Petroleo SA 144A (Brazil) 4/4/16 $0.00001 2,098,210 $1,553,003
Total warrants (cost $4,199,669) $1,553,003

SHORT-TERM INVESTMENTS (7.9%)(a)
Principal amount/shares Value
Putnam Cash Collateral Pool, LLC 0.13%(d) 287,696,352 $287,696,352
Putnam Short Term Investment Fund 0.02%(AFF) 115,206,563 115,206,563
SSgA Prime Money Market Fund 0.02%(P) 1,320,000 1,320,000
U.S. Treasury Bills with an effective yield of 0.13%, May 29, 2014 $1,141,000 1,140,285
U.S. Treasury Bills with effective yields ranging from 0.10% to 0.11%, April 3, 2014 958,000 957,544
U.S. Treasury Bills with an effective yield of 0.13%, January 9, 2014 260,000 259,924
U.S. Treasury Bills with effective yields ranging from 0.16% to 0.18%, October 17, 2013 1,668,000 1,667,912
Total short-term investments (cost $408,247,223) $408,248,580

TOTAL INVESTMENTS
Total investments (cost $4,551,222,906)(b) $5,443,646,476









OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/13 (Unaudited)
Upfront     Fixed payments Total return Unrealized
Swap counterparty/ premium     Termination received (paid) by received by appreciation/
Notional amount received (paid)     date fund per annum or paid by fund (depreciation)
Bank of America N.A.
$67,134 $—      5/6/14 (3 month USD-LIBOR-BBA plus 0.48%) BofA MLTR GOLD Index $(117,845)
59,546 —      5/6/14 (3 month USD-LIBOR-BBA plus 0.48%) BofA MLTR GOLD Index 109,742
Total $(8,103)










Key to holding's abbreviations
ADR American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank
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, 2012 through July 31, 2013 (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 $5,163,248,824.
(b) The aggregate identified cost on a tax basis is $4,620,524,443, resulting in gross unrealized appreciation and depreciation of $949,396,138 and $126,274,105, respectively, or net unrealized appreciation of $823,122,033.
(NON) Non-income-producing security.
(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 Money Market Liquidity Fund and Putnam Short Term Investment Fund, which are under common ownership and control, were as follows:
Name of affiliate Market value at the beginning of the reporting period Purchase cost Sale proceeds Investment income Market value at the end of the reporting period
Putnam Money Market Liquidity Fund * $44,421,874 $231,125,028 $275,546,902 $24,517 $—
Putnam Short Term Investment Fund * — 465,020,772 349,814,209 18,277 115,206,563
Totals $44,421,874 $696,145,800 $625,361,111 $42,794 $115,206,563
* Management fees charged to Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund have been waived by Putnam Management.
(d) Affiliated company. 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 market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. At the close of the reporting period, the value of securities loaned amounted to $282,001,871.
The fund received cash collateral of $287,696,352, 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.
(P) Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivatives contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
(S) Security on loan, in part or in entirety, at the close of the reporting period.
At the close of the reporting period, the fund maintained liquid assets totaling $83,928 to cover certain derivatives contracts.
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.
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.
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. At the close of the reporting period, fair value pricing was used for certain foreign securities in the portfolio. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate.
To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.
Total return swap contracts: The fund entered into OTC total return swap contracts, which are arrangements to exchange a market linked return for a periodic payment, both based on a notional principal amount, to hedge risk in a security it owns.
To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty.
For the fund's average notional amount on OTC total return swap contracts, see the appropriate table at the end of these footnotes.
Master agreements: The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the fund’s portfolio.
Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.
Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund's future derivative activity.
At the close of the reporting period, the fund had a net liability position of $8,103 on open derivative contracts subject to the Master Agreements. There was no collateral posted by the fund for these agreements.












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 *:
    Consumer discretionary $499,097,396 $11,406,259 $—
    Consumer staples 281,881,112 — —
    Energy 750,591,879 10,595,482 —
    Financials 1,176,308,148 26,509,677 —
    Health care 702,935,128 — —
    Industrials 501,689,464 80,935,867 —
    Information technology 485,835,883 — —
    Materials 231,072,476 16,771,591 —
    Telecommunication services 76,181,558 — —
    Utilities 172,623,513 9,409,460 —
Total common stocks 4,878,216,557 155,628,336 —
Warrants — 1,553,003 —
Short-term investments 116,526,563 291,722,017 —
Totals by level $4,994,743,120 $448,903,356 $—



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Total return swap contracts $— $(8,103) $—
Totals by level $— $(8,103) $—


Market Values of Derivative Instruments as of the close of the reporting period
Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Market value Market value
Equity contracts $1,662,745 $117,845
Total $1,662,745 $117,845


The average 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:
OTC total return swap contracts (notional) $33,700,000
Warrants (number of warrants) 1,200,000

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.

The Putnam Fund for Growth and Income
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: September 27, 2013

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 27, 2013

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: September 27, 2013

EX-99.CERT 2 b_002certifications.htm EX-99.CERT b_002certifications.htm

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: September 26, 2013
Jonathan S. Horwitz
Principal Executive Officer













Certifications

I, Steven D. Krichmar, 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/ Steven D. Krichmar
_______________________________

Date: September 26, 2013
Steven D. Krichmar
Principal Financial Officer














Attachment A

Period (s) ended July 31, 2013
               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