0000928816-15-001348.txt : 20150928 0000928816-15-001348.hdr.sgml : 20150928 20150928155649 ACCESSION NUMBER: 0000928816-15-001348 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20150731 FILED AS OF DATE: 20150928 DATE AS OF CHANGE: 20150928 EFFECTIVENESS DATE: 20150928 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: 151127438 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_fundforgrowthincome.htm THE PUTNAM FUND FOR GROWTH AND INCOME a_fundforgrowthincome.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:         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, 2015
Date of reporting period: July 31, 2015



Item 1. Schedule of Investments:














The Putnam Fund for Growth and Income

The fund's portfolio
7/31/15 (Unaudited)
COMMON STOCKS (95.8%)(a)
Shares Value

Aerospace and defense (6.7%)
Airbus Group SE (France) 410,505 $29,127,326
Bombardier, Inc. Class B (Canada) 7,130,162 8,886,466
Embraer SA ADR (Brazil)(S) 227,300 6,330,305
General Dynamics Corp. 298,600 44,524,246
Honeywell International, Inc. 640,200 67,253,010
L-3 Communications Holdings, Inc. 391,600 45,214,136
Northrop Grumman Corp. 476,900 82,508,469
Raytheon Co. 362,900 39,588,761
Rockwell Collins, Inc. 128,500 10,873,670
United Technologies Corp. 264,500 26,531,995

360,838,384
Airlines (0.6%)
American Airlines Group, Inc. 470,300 18,859,030
Spirit Airlines, Inc.(NON) 219,800 13,148,436

32,007,466
Auto components (0.2%)
Johnson Controls, Inc. 265,200 12,082,512

12,082,512
Automobiles (0.3%)
General Motors Co. 447,300 14,094,423

14,094,423
Banks (11.2%)
Bank of America Corp. 4,832,494 86,404,993
Citigroup, Inc. 2,430,580 142,091,707
Fifth Third Bancorp 604,400 12,734,708
JPMorgan Chase & Co. 2,496,346 171,074,591
KeyCorp 1,601,500 23,766,260
PacWest Bancorp(S) 185,500 8,586,795
Regions Financial Corp. 2,392,000 24,852,880
Wells Fargo & Co. 2,250,579 130,241,007

599,752,941
Beverages (0.5%)
Coca-Cola Co. (The) 264,800 10,877,984
PepsiCo, Inc. 148,400 14,298,340

25,176,324
Biotechnology (0.2%)
Baxalta, Inc.(NON) 5 164
Gilead Sciences, Inc. 97,000 11,432,420

11,432,584
Building products (0.4%)
Fortune Brands Home & Security, Inc. 414,600 19,797,150

19,797,150
Capital markets (4.5%)
AllianceBernstein Holding LP (Partnership shares) 441,900 12,138,993
Charles Schwab Corp. (The) 1,164,000 40,600,320
E*Trade Financial Corp.(NON) 372,500 10,586,450
Goldman Sachs Group, Inc. (The) 236,493 48,497,620
KKR & Co. LP 1,128,577 26,972,990
Morgan Stanley 1,614,600 62,711,064
State Street Corp. 551,800 42,245,808

243,753,245
Chemicals (2.9%)
Axiall Corp. 297,200 8,746,596
CF Industries Holdings, Inc. 349,500 20,690,400
Dow Chemical Co. (The) 759,100 35,723,246
E.I. du Pont de Nemours & Co. 512,000 28,549,120
Huntsman Corp. 989,400 18,798,600
Linde AG (Germany) 69,691 13,179,216
Monsanto Co. 195,000 19,868,550
Symrise AG (Germany) 123,142 8,196,332

153,752,060
Commercial services and supplies (0.9%)
ADT Corp. (The)(S) 303,821 10,490,939
Tyco International PLC 993,242 37,733,264

48,224,203
Communications equipment (0.8%)
Cisco Systems, Inc. 1,432,957 40,724,638

40,724,638
Consumer finance (0.6%)
Capital One Financial Corp. 403,938 32,840,159

32,840,159
Containers and packaging (0.8%)
Packaging Corp. of America 401,900 28,450,501
WestRock Co.(NON) 191,802 12,095,034

40,545,535
Diversified consumer services (—%)
ITT Educational Services, Inc.(NON)(S) 616,249 2,267,796

2,267,796
Diversified telecommunication services (1.2%)
AT&T, Inc. 627,700 21,806,298
Verizon Communications, Inc. 866,314 40,534,832

62,341,130
Electric utilities (1.7%)
American Electric Power Co., Inc. 225,400 12,750,878
Edison International 320,600 19,239,206
Exelon Corp. 1,323,200 42,461,488
NextEra Energy, Inc. 163,500 17,200,200

91,651,772
Electrical equipment (0.4%)
Eaton Corp PLC 371,700 22,517,586

22,517,586
Electronic equipment, instruments, and components (0.3%)
Corning, Inc. 747,100 13,955,828

13,955,828
Energy equipment and services (1.2%)
Baker Hughes, Inc. 268,400 15,607,460
Ezion Holdings, Ltd. (Singapore)(S) 6,999,920 4,406,462
Halliburton Co. 564,900 23,607,171
Schlumberger, Ltd. 246,939 20,451,488

64,072,581
Food and staples retail (2.4%)
CVS Health Corp. 811,000 91,213,170
Wal-Mart Stores, Inc. 310,200 22,328,196
Walgreens Boots Alliance, Inc. 126,900 12,262,347

125,803,713
Food products (1.5%)
Blue Buffalo Pet Products, Inc.(NON) 133,816 3,738,819
Hershey Co. (The) 234,700 21,801,283
Kraft Heinz Co. (The) 272,700 21,671,469
Mondelez International, Inc. Class A 757,000 34,163,410

81,374,981
Health-care equipment and supplies (3.1%)
Abbott Laboratories 291,000 14,750,790
Baxter International, Inc. 501,000 20,080,080
Boston Scientific Corp.(NON) 862,800 14,960,952
C.R. Bard, Inc. 128,000 25,171,200
Medtronic PLC 865,231 67,825,458
Stryker Corp. 120,600 12,333,762
Zimmer Biomet Holdings, Inc. 123,600 12,863,052

167,985,294
Health-care providers and services (1.5%)
Cardinal Health, Inc. 127,900 10,868,942
Cigna Corp. 172,800 24,893,568
HCA Holdings, Inc.(NON) 238,000 22,136,380
UnitedHealth Group, Inc. 174,800 21,220,720

79,119,610
Hotels, restaurants, and leisure (1.1%)
Hilton Worldwide Holdings, Inc.(NON) 1,410,800 37,879,980
Penn National Gaming, Inc.(NON)(S) 767,336 14,640,771
Vail Resorts, Inc. 83,500 9,159,115

61,679,866
Household durables (0.6%)
PulteGroup, Inc. 928,900 19,246,808
Whirlpool Corp. 81,800 14,538,314

33,785,122
Household products (0.8%)
Kimberly-Clark Corp. 146,800 16,877,596
Procter & Gamble Co. (The) 334,300 25,640,810

42,518,406
Independent power and renewable electricity producers (1.7%)
Calpine Corp.(NON) 2,399,017 43,902,011
NRG Energy, Inc. 2,220,000 49,839,000

93,741,011
Industrial conglomerates (2.0%)
General Electric Co. 2,540,120 66,297,132
Siemens AG (Germany) 401,334 42,964,105

109,261,237
Insurance (5.5%)
ACE, Ltd. 129,100 14,042,207
Allstate Corp. (The) 199,200 13,734,840
American International Group, Inc. 1,309,325 83,953,919
Assured Guaranty, Ltd. 866,780 21,201,439
Chubb Corp. (The) 86,875 10,801,169
Everest Re Group, Ltd. 55,720 10,203,446
Genworth Financial, Inc. Class A(NON) 1,684,400 11,807,644
Hartford Financial Services Group, Inc. (The) 1,251,500 59,508,825
MetLife, Inc. 625,587 34,870,219
Prudential Financial, Inc. 159,300 14,075,748
Prudential PLC (United Kingdom) 979,986 23,056,069

297,255,525
Internet and catalog retail (—%)
FabFurnish GmbH (acquired 8/2/13, cost $52) (Private) (Brazil)(F)(RES)(NON) 39 32
Global Fashion Holding SA (acquired 8/2/13, cost $2,567,154) (Private) (Brazil)(F)(RES)(NON) 60,600 1,551,259
New Bigfoot Other Assets GmbH (acquired 8/2/13, cost $52) (Private) (Brazil)(F)(RES)(NON) 39 32
New Middle East Other Assets GmbH (acquired 8/2/13, cost $21) (Private) (Brazil)(F)(RES)(NON) 16 13

1,551,336
Internet software and services (1.0%)
Google, Inc. Class C(NON) 72,480 45,344,213
Yahoo!, Inc.(NON) 256,400 9,402,188

54,746,401
Media (3.4%)
CBS Corp. Class B (non-voting shares) 196,400 10,501,508
Comcast Corp. Class A 604,600 37,733,086
Discovery Communications, Inc. Class A(NON) 426,300 14,076,426
DISH Network Corp. Class A(NON) 335,500 21,676,655
Liberty Global PLC Ser. C (United Kingdom)(NON) 825,500 40,565,070
Time Warner Cable, Inc. 94,100 17,879,941
Time Warner, Inc. 447,200 39,371,488

181,804,174
Metals and mining (0.7%)
Alcoa, Inc. 869,300 8,579,991
Barrick Gold Corp. (Canada) 674,000 4,758,440
BHP Billiton, Ltd. (Australia) 466,636 8,974,075
Freeport-McMoRan, Inc. (Indonesia) 898,938 10,562,522
Goldcorp, Inc. (Canada) 167,800 2,228,384
Newmont Mining Corp. 222,000 3,811,740

38,915,152
Multi-utilities (0.6%)
Ameren Corp. 354,800 14,575,184
PG&E Corp. 328,000 17,223,280

31,798,464
Multiline retail (0.3%)
Macy's, Inc. 244,600 16,892,076

16,892,076
Oil, gas, and consumable fuels (9.6%)
Anadarko Petroleum Corp. 557,900 41,479,865
Cabot Oil & Gas Corp. 875,900 22,913,544
Chevron Corp. 457,900 40,514,992
CONSOL Energy, Inc.(S) 585,200 9,667,504
Devon Energy Corp. 217,000 10,724,140
EnCana Corp. (Canada) 905,552 6,882,431
Energen Corp. 147,400 8,136,480
EOG Resources, Inc. 176,700 13,639,473
EP Energy Corp. Class A(NON)(S) 1,260,110 10,547,121
Exxon Mobil Corp. 930,992 73,743,876
Gaztransport Et Technigaz SA (France) 136,463 8,329,448
Gulfport Energy Corp.(NON) 688,200 22,545,432
Marathon Oil Corp. 1,173,600 24,657,336
MPLX LP 143,300 7,980,377
Noble Energy, Inc. 172,900 6,091,267
Nordic American Tankers, Ltd. (Norway)(S) 660,200 9,916,204
Occidental Petroleum Corp. 224,814 15,781,943
Pioneer Natural Resources Co. 58,500 7,416,045
QEP Resources, Inc. 1,315,900 18,264,692
Royal Dutch Shell PLC ADR Class A (United Kingdom) 945,928 54,371,941
Scorpio Tankers, Inc. 1,454,800 15,624,552
Southwestern Energy Co.(NON)(S) 671,200 12,484,320
Suncor Energy, Inc. (Canada) 725,944 20,448,658
Total SA ADR (France) 696,400 34,325,556
Whiting Petroleum Corp.(NON) 880,585 18,043,187

514,530,384
Paper and forest products (0.3%)
Louisiana-Pacific Corp.(NON)(S) 976,800 14,398,032

14,398,032
Personal products (1.1%)
Avon Products, Inc.(S) 1,907,298 10,814,380
Coty, Inc. Class A(NON) 939,473 25,112,113
Edgewell Personal Care Co. 216,233 20,695,660

56,622,153
Pharmaceuticals (11.5%)
AbbVie, Inc. 260,700 18,251,607
Allergan PLC(NON) 158,700 52,553,505
AstraZeneca PLC ADR (United Kingdom)(S) 1,457,800 49,259,062
Bristol-Myers Squibb Co. 745,700 48,947,748
Eli Lilly & Co. 668,500 56,494,935
Johnson & Johnson(S) 759,700 76,129,537
Merck & Co., Inc. 1,553,091 91,570,245
Mylan NV(NON) 133,000 7,446,670
Perrigo Co. PLC 57,100 10,974,620
Pfizer, Inc. 2,887,734 104,131,688
Sanofi ADR (France) 505,800 27,308,142
Teva Pharmaceutical Industries, Ltd. ADR (Israel) 504,700 34,834,394
Zoetis, Inc. 809,838 39,665,865

617,568,018
Real estate investment trusts (REITs) (0.8%)
Altisource Residential Corp. 489,934 8,064,314
American Tower Corp. 171,800 16,339,898
Equity Lifestyle Properties, Inc. 318,000 18,405,840

42,810,052
Road and rail (0.5%)
Union Pacific Corp. 249,800 24,377,982

24,377,982
Semiconductors and semiconductor equipment (2.2%)
Analog Devices, Inc. 184,900 10,785,217
Applied Materials, Inc. 365,500 6,345,080
Broadcom Corp. Class A 325,800 16,488,738
Canadian Solar, Inc. (Canada)(NON) 370,300 9,944,407
Intel Corp. 1,137,200 32,921,940
Lam Research Corp. 227,350 17,476,395
Micron Technology, Inc.(NON) 731,900 13,547,469
ON Semiconductor Corp.(NON) 911,300 9,678,006

117,187,252
Software (1.7%)
Microsoft Corp. 1,164,400 54,377,480
Oracle Corp. 609,600 24,347,424
TiVo, Inc.(NON) 1,315,800 13,105,368

91,830,272
Specialty retail (1.7%)
Bed Bath & Beyond, Inc.(NON) 176,000 11,480,480
Gap, Inc. (The)(S) 526,100 19,192,128
Home Depot, Inc. (The) 158,200 18,514,146
Michaels Cos., Inc. (The)(NON) 423,900 10,741,626
Sally Beauty Holdings, Inc.(NON) 347,300 10,346,067
Tiffany & Co. 64,900 6,210,930
Tile Shop Holdings, Inc.(NON)(S) 1,188,500 16,971,780

93,457,157
Technology hardware, storage, and peripherals (2.5%)
Apple, Inc. 416,300 50,497,190
Hewlett-Packard Co. 889,400 27,144,488
QLogic Corp.(NON) 962,600 8,538,262
Samsung Electronics Co., Ltd. (South Korea) 24,719 24,836,044
SanDisk Corp. 169,800 10,237,242
Western Digital Corp. 171,700 14,776,502

136,029,728
Textiles, apparel, and luxury goods (0.1%)
Michael Kors Holdings, Ltd.(NON) 174,300 7,318,857

7,318,857
Thrifts and mortgage finance (0.7%)
Radian Group, Inc.(S) 2,089,055 38,563,955

38,563,955
Tobacco (0.7%)
Philip Morris International, Inc. 467,900 40,019,487

40,019,487
Wireless telecommunication services (0.8%)
Vodafone Group PLC ADR (United Kingdom)(S) 1,101,022 41,596,610

41,596,610

Total common stocks (cost $4,451,642,455) $5,146,370,624

CONVERTIBLE PREFERRED STOCKS (0.4%)(a)
Shares Value

Allergan PLC Ser. A, 5.50% cv. pfd. 12,217 $13,586,892
Frontier Communications Corp. Ser. A, $11.25 cum. cv. pfd.(NON) 56,775 5,464,594

Total convertible preferred stocks (cost $17,894,500) $19,051,486

SHORT-TERM INVESTMENTS (6.4%)(a)
Principal amount/shares Value

Putnam Cash Collateral Pool, LLC 0.25%(d) Shares 121,182,756 $121,182,756
Putnam Short Term Investment Fund 0.11%(AFF) Shares 213,035,294 213,035,294
U.S. Treasury Bills 0.01%, November 5, 2015(SEGSF) $4,160,000 4,159,064
U.S. Treasury Bills 0.01%, October 22, 2015(SEGSF) 450,000 449,937
U.S. Treasury Bills 0.02%, October 8, 2015(SEGSF) 280,000 279,973
U.S. Treasury Bills 0.01%, September 17, 2015 51,000 51,000
U.S. Treasury Bills 0.02%, September 10, 2015(SEGSF) 1,691,000 1,690,972
U.S. Treasury Bills 0.01%, August 20, 2015 1,110,000 1,109,993

Total short-term investments (cost $341,959,929) $341,958,989

TOTAL INVESTMENTS

Total investments (cost $4,811,496,884)(b) $5,507,381,099














FORWARD CURRENCY CONTRACTS at 7/31/15 (aggregate face value $212,043,169) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)

Credit Suisse International
British Pound Sell 9/16/15 $115,829,964 $113,097,253 $(2,732,711)
Euro Sell 9/16/15 37,309,952 37,284,824 (25,128)
JPMorgan Chase Bank N.A.
Euro Sell 9/16/15 42,884,160 42,870,771 (13,389)
State Street Bank and Trust Co.
Japanese Yen Buy 8/19/15 9,333,198 9,374,795 (41,597)
Japanese Yen Sell 8/19/15 9,333,198 9,415,526 82,328

Total $(2,730,497)













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, 2014 through July 31, 2015 (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 $5,371,985,257.
(b) The aggregate identified cost on a tax basis is $4,859,625,392, resulting in gross unrealized appreciation and depreciation of $1,013,954,103 and $366,198,396, respectively, or net unrealized appreciation of $647,755,707.
(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 $1,551,336, or less than 0.1% of net assets.
(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 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 Money Market Liquidity Fund* $5,482,224 $— $5,482,224 $62 $—
Putnam Short Term Investment Fund* 324,163,340 458,516,775 569,644,821 163,136 213,035,294
Totals $329,645,564 $458,516,775 $575,127,045 $163,198 $213,035,294
* Management fees charged to Putnam Money Market Liquidity Fund and Putnam Short Term Investment Fund have been waived by Putnam Management.

(SEGSF) This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period.
(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 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 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 $121,182,756, 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 $117,666,986.
(F) This security is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities' valuation inputs. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio.
(S) This security is 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 $3,887,477 to cover certain derivative contracts and the settlement of certain securities.
Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.
Debt obligations are considered secured unless otherwise indicated.
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 and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value, and are classified as Level 2 securities.
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. 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 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.
Forward currency contracts: The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts were used to hedge foreign exchange risk.
The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position.
For the fund's average contract amount on forward currency 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, is 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 $2,771,228 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $3,079,442 and may include amounts related to unsettled 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 $423,381,983 $— $1,551,336
    Consumer staples 371,515,064
    Energy 565,867,055 12,735,910
    Financials 1,231,919,808 23,056,069
    Health care 876,105,506
    Industrials 544,932,577 72,091,431
    Information technology 429,638,075 24,836,044
    Materials 217,261,156 30,349,623
    Telecommunication services 103,937,740
    Utilities 217,191,247
Total common stocks 4,981,750,211 163,069,077 1,551,336
Convertible preferred stocks 19,051,486
Short-term investments 213,035,294 128,923,695



Totals by level $5,194,785,505 $311,044,258 $1,551,336



Valuation inputs

Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $(2,730,497) $—



Totals by level $— $(2,730,497) $—


* 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.
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
Foreign exchange contracts $82,328 $2,812,825


Total $82,328 $2,812,825


The volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was as follows based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period:
Forward currency contracts (contract amount)$136,100,000
   
  The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions, if applicable, see note "(d)" above, and for borrowing transactions associated with securities sold short, if applicable, see the "Short sales of securities" note above.
   
      Credit Suisse International JPMorgan Chase Bank N.A. State Street Bank and Trust Co.   Total
               
  Assets:            
  Forward currency contracts#    $—  $—  $82,328    82,328
               
  Total Assets $— $—  $82,328  $82,328
               
  Liabilities:            
  Forward currency contracts#    2,757,839  13,389  41,597    2,812,825
               
  Total Liabilities  $2,757,839  $13,389  $41,597  $2,812,825
               
  Total Financial and Derivative Net Assets    $(2,757,839)  $(13,389)  $40,731    $(2,730,497)
  Total collateral received (pledged)##†    $(2,757,839)  $(13,389) $—    
  Net amount   $— $—  $40,731    
               
 Additional collateral may be required from certain brokers based on individual agreements.
               
# Covered by master netting agreement.
               
## Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.

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 28, 2015

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

By (Signature and Title):
/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer
Date: September 28, 2015

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: September 28, 2015

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 25, 2015
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 25, 2015
Steven D. Krichmar
Principal Financial Officer















Attachment A

NQ

Period (s) ended July 31, 2015
               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