N-Q 1 a_putfndgrowthinc.htm PUTNAM FUND FOR GROWTH AND INCOME a_putfndgrowthinc.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, 2016
Date of reporting period: January 31, 2016



Item 1. Schedule of Investments:













The Putnam Fund for Growth and Income

The fund's portfolio
1/31/16 (Unaudited)
COMMON STOCKS (96.7%)(a)
Shares Value
Aerospace and defense (7.7%)
Airbus Group SE (France) 413,368 $25,999,993
Bombardier, Inc. Class B (Canada)(NON)(S) 8,757,462 6,126,285
Embraer SA ADR (Brazil) 311,000 8,950,580
General Dynamics Corp. 341,500 45,682,455
Honeywell International, Inc. 574,900 59,329,680
L-3 Communications Holdings, Inc. 391,600 45,754,544
Northrop Grumman Corp. 425,000 78,650,500
Raytheon Co. 286,200 36,702,288
Rockwell Collins, Inc.(S) 128,500 10,393,080
United Technologies Corp. 277,400 24,325,206
341,914,611
Airlines (0.4%)
American Airlines Group, Inc. 430,800 16,796,892
16,796,892
Automobiles (0.2%)
General Motors Co. 218,400 6,473,376
6,473,376
Banks (11.1%)
Bank of America Corp. 5,260,194 74,379,143
BB&T Corp. 412,100 13,459,186
Citigroup, Inc. 2,349,580 100,045,116
JPMorgan Chase & Co. 2,621,046 155,952,237
PacWest Bancorp 185,500 6,809,705
Regions Financial Corp. 2,618,500 21,262,220
Wells Fargo & Co. 2,395,279 120,314,864
492,222,471
Beverages (0.5%)
Molson Coors Brewing Co. Class B 251,400 22,746,672
22,746,672
Biotechnology (0.9%)
AbbVie, Inc. 333,600 18,314,640
Gilead Sciences, Inc. 234,200 19,438,600
37,753,240
Building products (0.4%)
Fortune Brands Home & Security, Inc. 356,100 17,302,899
17,302,899
Capital markets (4.2%)
AllianceBernstein Holding LP 573,400 10,573,496
Bank of New York Mellon Corp. (The) 242,900 8,797,838
Charles Schwab Corp. (The) 814,600 20,796,738
E*Trade Financial Corp.(NON) 254,600 5,998,376
Goldman Sachs Group, Inc. (The) 236,493 38,207,809
KKR & Co. LP 2,025,896 27,612,962
Morgan Stanley 1,718,800 44,482,544
State Street Corp. 551,800 30,751,814
187,221,577
Chemicals (3.5%)
Axalta Coating Systems, Ltd.(NON) 883,077 21,026,063
Axiall Corp. 297,200 5,328,796
CF Industries Holdings, Inc. 708,500 21,255,000
Dow Chemical Co. (The) 831,000 34,902,000
E.I. du Pont de Nemours & Co. 669,100 35,301,716
Linde AG (Germany) 98,780 13,344,061
Monsanto Co. 195,000 17,667,000
Symrise AG (Germany) 123,142 7,945,316
156,769,952
Commercial services and supplies (0.6%)
Tyco International PLC 699,142 24,043,493
24,043,493
Communications equipment (1.4%)
Cisco Systems, Inc. 2,535,057 60,309,006
60,309,006
Consumer finance (0.4%)
Synchrony Financial(NON) 614,400 17,461,248
17,461,248
Containers and packaging (0.4%)
Packaging Corp. of America 345,000 17,536,350
17,536,350
Diversified consumer services (—%)
ITT Educational Services, Inc.(NON)(S) 616,249 1,670,035
1,670,035
Diversified telecommunication services (1.3%)
AT&T, Inc. 744,700 26,853,882
Verizon Communications, Inc. 649,014 32,431,230
59,285,112
Electric utilities (1.9%)
American Electric Power Co., Inc. 225,400 13,742,638
Edison International 231,700 14,319,060
Exelon Corp. 1,860,200 55,006,114
83,067,812
Energy equipment and services (2.2%)
Baker Hughes, Inc. 553,100 24,065,381
Ezion Holdings, Ltd. (Singapore)(S) 6,999,920 2,561,585
Halliburton Co. 769,100 24,449,689
Schlumberger, Ltd. 458,939 33,167,522
Weatherford International PLC(NON) 2,145,900 14,463,366
98,707,543
Food and staples retail (2.1%)
CVS Health Corp. 535,000 51,675,650
Wal-Mart Stores, Inc. 609,700 40,459,692
92,135,342
Food products (1.2%)
JM Smucker Co. (The) 127,500 16,360,800
Kraft Heinz Co. (The) 85,300 6,658,518
Mondelez International, Inc. Class A 706,100 30,432,910
53,452,228
Health-care equipment and supplies (2.3%)
Abbott Laboratories 291,000 11,014,350
Baxter International, Inc.(S) 501,000 18,336,600
C.R. Bard, Inc. 134,600 24,668,142
Medtronic PLC 494,431 37,537,202
Zimmer Biomet Holdings, Inc. 123,600 12,268,536
103,824,830
Health-care providers and services (1.4%)
Cardinal Health, Inc. 287,200 23,369,464
Cigna Corp. 191,400 25,571,040
UnitedHealth Group, Inc. 121,900 14,038,004
62,978,508
Hotels, restaurants, and leisure (1.1%)
Hilton Worldwide Holdings, Inc. 1,605,700 28,597,517
Penn National Gaming, Inc.(NON)(S) 1,277,336 18,048,758
46,646,275
Household durables (0.5%)
PulteGroup, Inc. 928,900 15,568,364
Whirlpool Corp. 49,000 6,585,110
22,153,474
Household products (0.3%)
Procter & Gamble Co. (The) 143,100 11,689,839
11,689,839
Independent power and renewable electricity producers (1.6%)
Calpine Corp.(NON) 2,816,017 43,113,220
NRG Energy, Inc. 2,687,300 28,592,872
71,706,092
Industrial conglomerates (1.5%)
General Electric Co.(S) 1,862,220 54,190,602
Siemens AG (Germany) 152,084 14,558,805
68,749,407
Insurance (5.6%)
American International Group, Inc. 1,545,025 87,263,012
Assured Guaranty, Ltd. 1,290,980 30,699,504
Chubb, Ltd. 217,000 24,536,190
Genworth Financial, Inc. Class A(NON) 1,684,400 4,682,632
Hartford Financial Services Group, Inc. (The) 959,800 38,564,764
MetLife, Inc. 751,887 33,571,755
Prudential PLC (United Kingdom) 1,487,020 29,229,292
248,547,149
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 1,530,143
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
1,530,220
Internet software and services (1.3%)
Alphabet, Inc. Class C(NON) 62,180 46,196,631
Yahoo!, Inc.(NON) 320,200 9,449,102
55,645,733
IT Services (0.6%)
Computer Sciences Corp. 784,800 25,168,536
25,168,536
Media (2.9%)
Comcast Corp. Class A 585,800 32,634,918
Discovery Communications, Inc. Class A(NON)(S) 542,300 14,962,057
DISH Network Corp. Class A(NON) 335,500 16,194,585
Liberty Global PLC Ser. C (United Kingdom)(NON) 845,200 28,153,612
Time Warner Cable, Inc. 84,900 15,452,649
Time Warner, Inc. 300,000 21,132,000
128,529,821
Metals and mining (0.7%)
Alcoa, Inc. 1,687,100 12,298,959
BHP Billiton, Ltd. (Australia) 517,112 5,677,599
Newmont Mining Corp. 684,200 13,656,632
31,633,190
Multi-utilities (0.5%)
PG&E Corp. 410,200 22,524,082
22,524,082
Multiline retail (0.2%)
Macy's, Inc. 244,600 9,884,286
9,884,286
Oil, gas, and consumable fuels (11.1%)
Anadarko Petroleum Corp. 1,041,700 40,720,053
Apache Corp. 297,900 12,672,666
Cabot Oil & Gas Corp. 1,556,100 32,289,075
Concho Resources, Inc.(NON) 220,500 20,976,165
ConocoPhillips 1,118,300 43,703,164
CONSOL Energy, Inc.(S) 585,200 4,646,488
Devon Energy Corp. 791,400 22,080,060
Diamondback Energy, Inc.(NON) 283,375 21,408,981
Energen Corp. 304,600 10,743,242
EOG Resources, Inc. 207,000 14,701,140
Exxon Mobil Corp. 448,692 34,930,672
Gulfport Energy Corp.(NON) 953,400 28,172,970
Marathon Oil Corp. 1,094,000 10,644,620
MPLX LP 276,410 8,505,136
Nordic American Tankers, Ltd. (Norway)(S) 660,200 8,391,142
Pioneer Natural Resources Co. 304,300 37,717,985
Royal Dutch Shell PLC ADR Class A (United Kingdom) 1,799,281 79,042,414
Scorpio Tankers, Inc. 2,473,900 15,090,790
Suncor Energy, Inc. (Canada) 725,944 17,193,820
Total SA ADR (France)(S) 458,199 20,307,380
Whiting Petroleum Corp.(NON) 1,504,585 11,058,700
494,996,663
Paper and forest products (0.3%)
Louisiana-Pacific Corp.(NON)(S) 918,300 14,435,676
14,435,676
Personal products (1.1%)
Avon Products, Inc.(S) 3,553,298 12,045,680
Coty, Inc. Class A 673,345 16,571,020
Edgewell Personal Care Co. 299,368 22,156,226
50,772,926
Pharmaceuticals (10.9%)
Allergan PLC(NON) 139,300 39,621,099
AstraZeneca PLC ADR (United Kingdom)(S) 1,393,900 44,911,458
Bristol-Myers Squibb Co. 551,200 34,262,592
Eli Lilly & Co. 474,300 37,517,130
Johnson & Johnson 759,700 79,343,068
Merck & Co., Inc. 1,511,391 76,582,182
Perrigo Co. PLC(S) 82,800 11,971,224
Pfizer, Inc. 2,643,134 80,589,156
Sanofi ADR (France) 505,800 21,061,512
Teva Pharmaceutical Industries, Ltd. ADR (Israel) 630,100 38,738,548
Zoetis, Inc. 444,938 19,154,581
483,752,550
Real estate investment trusts (REITs) (0.9%)
American Tower Corp. 141,400 13,339,676
Gaming and Leisure Properties, Inc. 979,000 25,532,320
38,871,996
Road and rail (0.5%)
Union Pacific Corp. 329,700 23,738,400
23,738,400
Semiconductors and semiconductor equipment (1.5%)
Intel Corp. 1,137,200 35,275,944
Lam Research Corp. 170,950 12,272,501
Micron Technology, Inc.(NON) 1,820,300 20,077,909
67,626,354
Software (2.5%)
Microsoft Corp. 1,555,500 85,692,495
Oracle Corp. 386,800 14,044,708
TiVo, Inc.(NON) 1,315,800 10,500,084
110,237,287
Specialty retail (2.0%)
Advance Auto Parts, Inc. 122,200 18,580,510
Bed Bath & Beyond, Inc.(NON)(S) 209,300 9,035,481
Gap, Inc. (The)(S) 904,000 22,346,880
Home Depot, Inc. (The) 158,200 19,895,232
Michaels Cos., Inc. (The)(NON)(S) 423,900 9,241,020
Tile Shop Holdings, Inc.(NON)(S) 723,300 10,929,063
90,028,186
Technology hardware, storage, and peripherals (2.8%)
Apple, Inc. 496,800 48,358,512
EMC Corp. 1,065,000 26,380,050
Hewlett Packard Enterprise Co. 856,700 11,788,192
HP, Inc. 880,900 8,553,539
Samsung Electronics Co., Ltd. (South Korea) 30,934 29,860,939
124,941,232
Thrifts and mortgage finance (0.6%)
Radian Group, Inc. 2,699,655 27,158,529
27,158,529
Tobacco (0.9%)
Philip Morris International, Inc. 435,400 39,190,354
39,190,354
Wireless telecommunication services (0.7%)
Vodafone Group PLC ADR (United Kingdom)(S) 988,222 31,820,747
31,820,747
Total common stocks (cost $4,325,183,148) $4,295,652,201

CONVERTIBLE PREFERRED STOCKS (0.1%)(a)
Shares Value
Frontier Communications Corp. Ser. A, $11.125 cum. cv. pfd. 56,775 $5,070,717
Total convertible preferred stocks (cost $5,677,500) $5,070,717

SHORT-TERM INVESTMENTS (8.3%)(a)
Principal amount/shares Value
Putnam Cash Collateral Pool, LLC 0.53%(d) Shares 191,024,917 $191,024,917
Putnam Short Term Investment Fund 0.39%(AFF) Shares 167,812,463 167,812,463
SSgA Prime Money Market Fund Class N 0.31%(P) Shares 4,590,000 4,590,000
U.S. Treasury Bills 0.17%, February 18, 2016(SEGSF) $238,000 237,976
U.S. Treasury Bills 0.16%, February 11, 2016(SEGSF) 4,211,000 4,210,756
Total short-term investments (cost $367,876,181) $367,876,112

TOTAL INVESTMENTS
Total investments (cost $4,698,736,829)(b) $4,668,599,030













FORWARD CURRENCY CONTRACTS at 1/31/16 (aggregate face value $138,409,634) (Unaudited)


Unrealized
Contract Delivery Aggregate appreciation/
Counterparty Currency type date Value face value (depreciation)
Credit Suisse International
British Pound Sell 3/16/16 $85,967,238 $90,988,047 $5,020,809
Euro Sell 3/16/16 17,484,619 17,177,879 (306,740)
JPMorgan Chase Bank N.A.
Euro Sell 3/16/16 31,037,652 30,243,708 (793,944)
Total $3,920,125












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, 2015 through January 31, 2016 (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 $4,443,098,495.
(b) The aggregate identified cost on a tax basis is $4,742,078,150, resulting in gross unrealized appreciation and depreciation of $534,135,487 and $607,614,607, respectively, or net unrealized depreciation of $73,479,120.
(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 $1,530,220, 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 Short Term Investment Fund, which is under common ownership and control, were as follows:
Name of affiliate Fair value at the beginning of the reporting period Purchase cost Sale proceeds Investment income Fair value at the end of the reporting period
Putnam Short Term Investment Fund* $217,802,220 $163,558,575 $213,548,332 $147,899 $167,812,463
* Management fees charged to 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 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 $191,024,917, 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 $191,587,402.
(F) This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities' valuation inputs. At the close of the reporting period, fair value pricing was also used for certain foreign securities in the portfolio.
(P) This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative 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) 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 $758,264 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 $793,944 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $910,909 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 $305,385,453 $— $1,530,220
    Consumer staples 269,987,361 — —
    Energy 591,142,621 2,561,585 —
    Financials 982,253,678 29,229,292 —
    Health care 688,309,128 — —
    Industrials 451,986,904 40,558,798 —
    Information technology 414,067,209 29,860,939 —
    Materials 193,408,192 26,966,976 —
    Telecommunication services 91,105,859 — —
    Utilities 177,297,986 — —
Total common stocks 4,164,944,391 129,177,590 1,530,220
Convertible preferred stocks — 5,070,717 —
Short-term investments 172,402,463 195,473,649 —
Totals by level $4,337,346,854 $329,721,956 $1,530,220



Valuation inputs
Other financial instruments: Level 1 Level 2 Level 3
Forward currency contracts $— $3,920,125 $—
Totals by level $— $3,920,125 $—


* Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.
During the reporting period, transfers within the fair value hierarchy, if any, (other than certain transfers involving non-U.S. equity securities as described in the Security valuation note above) did not represent, in the aggregate, more than 1% of the fund's net assets measured as of the end of the period. Transfers are accounted for using the end of period pricing valuation method.
At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio.

Fair Value of Derivative Instruments as of the close of the reporting period
Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Fair value Fair value
Foreign exchange contracts $5,020,809 $1,100,684
Total $5,020,809 $1,100,684


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:
Forward currency contracts (contract amount)$176,700,000
   
  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.   Total
             
  Assets:          
  Forward currency contracts#    $5,020,809  $—    5,020,809
             
  Total Assets    $5,020,809 $—    $5,020,809
             
  Liabilities:          
  Forward currency contracts#    306,740  793,944    1,100,684
             
  Total Liabilities    $306,740  $793,944    $1,100,684
             
  Total Financial and Derivative Net Assets    $4,714,069  $(793,944)    $3,920,125
  Total collateral received (pledged)##†    $4,590,000  $(793,944)    
  Net amount    $124,069 $—    
             
†  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: March 25, 2016

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 25, 2016

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: March 25, 2016