497 1 a_ditsrs.htm PUTNAM DIVERSIFIED INCOME TRUST a_ditsrs.htm
  [MHM, June 30, 2014] 
[Translation]   
 
 
 
 
 
 
 
 
 
SEMI-ANNUAL REPORT 
 
(During the Twentieth Term) 
From: October 1, 2013 
To: March 31, 2014 
 
 
 
 
 
 
 
 
 
 
PUTNAM DIVERSIFIED INCOME TRUST 
 
 
 
 
 
 
 
 

 


Name of the document filed:  Semi-annual Report 
 
To:  Director of Kanto Local Finance Bureau 
 
Filing Date:  June 30, 2014 
 
Accounting Period:  During the 20th term (from October 1, 2013 to 
  March 31, 2014) 
 
Name of the Registrant Fund:  PUTNAM DIVERSIFIED INCOME TRUST 
 
Name of the Registrant Issuer:  PUTNAM DIVERSIFIED INCOME TRUST 
 
Name and Official Title  Jonathan S. Horwitz 
of Representative:  Executive Vice President, Principal Executive 
  Officer and Compliance Liaison 
 
Address of Principal Office:  One Post Office Square 
  Boston, Massachusetts 02109 
  U. S. A. 
 
Name and Title of Registration Agent:  Harume Nakano 
  Attorney-at-Law 
 
  Ken Miura 
  Attorney-at-Law 
 
Address or Place of Business  Mori Hamada & Matsumoto 
of Registrant Agent:  Marunouchi Park Building 
  6-1, Marunouchi 2-chome 
  Chiyoda-ku, Tokyo 
 
Name of Liaison Contact:  Harume Nakano 
  Ken Miura 
  Attorneys-at-Law 
 
Place of Liaison Contact:  Mori Hamada & Matsumoto 
  Marunouchi Park Building 
  6-1, Marunouchi 2-chome 
  Chiyoda-ku, Tokyo 
 
Phone Number:  03-6212-8316 
 
Places where a copy of this Semi-annual Report   
is available for Public Inspection:  Not applicable. 

 


I.  STATUS OF INVESTMENT FUND     
 
 
(1)  Diversification of Investment Portfolio     
      (as of the end of April 30, 2014) 
        Investment 
    Name of country where  Total  Ratio 
    security types are     
Types of Assets  issued  U.S. Dollars  (%) 
Mortgage-Backed Securities  United States  2,760,167,567  45.17 
    United Kingdom  15,325,409  0.25 
    Cayman Islands  3,054,550  0.05 
    Ireland  71,713  0.00 
  Sub-total    2,778,619,239  45.47% 
Corporate Bonds and Notes  United States  1,225,719,155  20.06 
    Russia  131,217,075  2.15 
    Venezuela  110,032,802  1.80 
    Luxembourg  77,808,835  1.27 
    Canada  58,239,493  0.95 
    United Kingdom  51,464,934  0.84 
    Germany  29,351,910  0.48 
    France  24,221,830  0.40 
    Indonesia  22,456,476  0.37 
    Ukraine  22,140,825  0.36 
    Mexico  21,314,847  0.35 
    Netherlands  18,074,120  0.30 
    Brazil  13,122,189  0.21 
    Ireland  12,475,264  0.20 
    Jamaica  11,013,256  0.18 
    Belgium  7,088,053  0.12 
    Japan  7,037,550  0.12 
    Australia  6,454,890  0.11 
    Jersey  6,130,184  0.10 
    Sweden  4,966,466  0.08 
    Cayman Islands  4,529,655  0.07 
    New Zealand  4,427,719  0.07 
    Italy  3,582,823  0.06 
    Bermuda  2,927,766  0.05 
    Costa Rica  2,193,361  0.04 
    India  1,717,930  0.03 
    Denmark  1,676,317  0.03 
    Spain  629,340  0.01 
  Sub-total    1,882,015,065  30.80% 

 


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Foreign Government and AgencyGreece  221,284,389  3.62 
  Argentina  140,740,943  2.30 
  Turkey  31,188,692  0.51 
  Venezuela  18,200,594  0.30 
  Ukraine  17,197,953  0.28 
  Brazil  12,444,252  0.20 
  Croatia  11,024,750  0.18 
  Indonesia  10,081,892  0.16 
  Gabon  6,756,750  0.11 
  Ghana  6,205,117  0.10 
  Russia  4,069,278  0.07 
  Hungary  3,854,003  0.06 
  Poland  3,810,625  0.06 
  Supra-Nation  3,388,057  0.06 
  Iraq  2,592,713  0.04 
  Serbia  2,004,406  0.03 
  Bahamas  1,858,965  0.03 
  Costa Rica  1,492,500  0.02 
  Sri Lanka  1,343,745  0.02 
Sub-total    499,539,624  8.18% 
U.S. Government and Agency  United States  442,147,475  7.24% 
Senior Loans  United States  125,885,019  2.06 
  Canada  3,519,847  0.06 
  Germany  1,030,225  0.02 
Sub-total    130,435,091  2.13% 
Purchased Swap Options OutstandinUnited States  11,045,678  0.18% 
Purchased Options Outstanding  United States  10,088,520  0.17% 
Convertible Bonds and Notes  United States  2,975,163  0.05% 
Short-Term Investments  United States  814,439,444  13.33% 
Cash, Deposit and Other       
Assets (After deduction of       
liabilities)    (460,903,451)  -7.54% 
(Net Asset Value)    6,110,401,848  100.00% 
    (JPY 626,988 million)   

 


- 3 - 

 

Note 1: Investment ratio is calculated by dividing each asset at its market value by the total Net Asset Value of the Fund.

Note 2: Dollar amount is translated for convenience at the rate of $1.00 = ¥102.61(the mean of the exchange rate quotations by The Bank of Tokyo-Mitsubishi UFJ, Ltd. for buying and selling spot dollars by telegraphic transfer against yen on 30th April, 2014). The same applies hereinafter.

Note 3: In this document, money amounts and percentages ending in the numeral 5 or higher have been rounded up to 10 and otherwise rounded down. Therefore, there are cases in which the amount for the "total” column is not equal to the aggregate amount. Also, conversion into other currencies is done by simply multiplying the corresponding amount by the conversion rate specified and rounding the resulting number up to 10 if the amount ends in the numeral 5 or higher and otherwise rounding down when necessary. As a result, in this document, there are cases in which Japanese yen figures for the same information differ from each other.


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(2) Results of Past Operations

(a) Record of Changes in Net Assets

Record of changes in net assets at the end of each month within one-year period until and at the end of April 2014 is as follows:

Class C Shares

  Total Net Asset Value  Net Asset Value per Share 
  Dollar  Yen         
  (thousands)  (millions)  Dollar    Yen   
2013 end of May  660,304  67,754  7.80  (7.83)  800  (804) 
June  669,080  68,654  7.69  (7.72)  789  (792) 
July  695,427  71,358  7.72  (7.75)  792  (795) 
August  724,660  74,357  7.72  (7.75)  792  (795) 
September  749,897  76,947  7.62  (7.65)  782  (785) 
October  778,878  79,921  7.69  (7.72)  789  (792) 
November  807,852  82,894  7.69  (7.72)  789  (792) 
December  845,914  86,799  7.80  (7.83)  800  (804) 
2014 end of January  871,499  89,425  7.71  (7.74)  791  (794) 
February  905,861  92,950  7.80  (7.83)  800  (804) 
March  949,347  97,412  7.88  (7.88)  809  (809) 
April  973,440  99,885  7.84  (7.87)  804  (808) 

 

(Note ) The amount of NAV per share with dividend is set forth in the parentheses. The amount of NAV per share with dividend as of the end of each month represents NAV per share as of the end of the relevant month with the amount of dividend paid during the relevant month.

Class M Shares

  Total Net Asset Value  Net Asset Value per Share 
  Dollar  Yen         
  (thousands)  (millions)  Dollar    Yen   
2013 end of May  244,736  25,112  7.81  (7.85)  801  (805) 
June  239,580  24,583  7.69  (7.73)  789  (793) 
July  239,181  24,542  7.72  (7.76)  792  (796) 
August  237,845  24,405  7.72  (7.76)  792  (796) 
September  233,513  23,961  7.62  (7.66)  782  (786) 
October  234,055  24,016  7.69  (7.73)  789  (793) 
November  231,964  23,802  7.70  (7.74)  790  (794) 
December  232,288  23,835  7.80  (7.84)  800  (804) 
2014 end of January  228,585  23,455  7.71  (7.75)  791  (795) 
February  230,502  23,652  7.80  (7.84)  800  (804) 
March  231,505  23,755  7.88  (7.88)  809  (809) 
April  227,981  23,393  7.85  (7.89)  805  (809) 

 

(Note) The amount of NAV per share with dividend is set forth in the parentheses. The amount of NAV per share with dividend as of the end of each month represents NAV per share as of the end of the relevant month with the amount of dividend paid during the relevant month.

 


- 5 - 

 

(b) Record of Distributions Paid

Record of distributions paid from May 2013 to April 2014 are as follows:

Class C Shares

  Dividend  NAV on the ex-dividend date 
 
Month/Year  Dollar  Yen  Dollar 
2013 end of May  0.033  3.39  7.80 
June  0.032  3.28  7.70 
July  0.032  3.28  7.69 
August  0.032  3.28  7.73 
September  0.032  3.28  7.72 
October  0.032  3.28  7.70 
November  0.032  3.28  7.68 
December  0.032  3.28  7.72 
2014 end of January  0.032  3.28  7.79 
February  0.032  3.28  7.73 
March  0.032  3.28  7.77 
April  0.032  3.28  7.82 

 

Class M Shares

 

  Dividend  NAV on the ex-dividend date 
 
Month/Year  Dollar  Yen  Dollar 
2013 end of May  0.036  3.69  7.80 
June  0.035  3.59  7.70 
July  0.035  3.59  7.70 
August  0.035  3.59  7.73 
September  0.035  3.59  7.72 
October  0.035  3.59  7.71 
November  0.035  3.59  7.68 
December  0.035  3.59  7.73 
2014 end of January  0.035  3.59  7.79 
February  0.035  3.59  7.74 
March  0.035  3.59  7.77 
April  0.035  3.59  7.82 

 


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(c) Record of Changes in Annual Return

Class C Shares

  Annual Return 
5/1/13-4/30/14  5.77% 

 

(Note) Annual Return (%) ={[ [ Ending NAV * A] ] / Beginning NAV] –1}*100

“A” shall be obtained by multiplying together all the amounts of such dividend as distributed during the period divided by the net asset value per share on the ex-dividend day of the relevant distribution plus 1.

Provided that Beginning NAV means net asset value per share on April 30, 2013 and Ending NAV means net asset value per share on April 30, 2014.

Class M Shares

  Annual Return 
5/1/13-4/30/14  6.25% 

 

(Note) Annual Return (%) ={[ [ Ending NAV * A] ] / Beginning NAV] –1}*100

“A” shall be obtained by multiplying together all the amounts of such dividend as distributed during the period divided by the net asset value per share on the ex-dividend day of the relevant distribution plus 1.

Provided that Beginning NAV means net asset value per share on April 30, 2013 and Ending NAV means net asset value per share on April 30, 2014.


- 7 - 

 

II. RECORD OF SALES AND REPURCHASES

Record of sales and repurchases during the following period and number of outstanding shares of the Fund as of the end of April 2014 are as follows:

Class C Shares

  Number of  Number of Shares  Number of 
  Shares Sold  Repurchased  Outstanding Shares 
From: May 1, 2013  58,377,381  18,135,849  124,085,070 
To: April 30, 2014  (0)  (152,230)  (1,313,070) 

 

Class M Shares

 

  Number of  Number of Shares  Number of 
  Shares Sold  Repurchased  Outstanding Shares 
From: May 1, 2013  1,057,246  3,840,073  29,042,552 
To: April 30, 2014  (0)  (3,190,660)  (26,141,758) 

 

Note: The numbers of Shares sold, repurchased and outstanding in the parentheses "( )" represent those sold, repurchased and outstanding in Japan.

III. OUTLINE OF THE FINANCIAL STATUS OF THE FUND

[Omitted, in Japanese version, unaudited semi-annual accounts of the Fund and Japanese translation thereof are incorporated here.]


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IV. OUTLINE OF THE MANAGEMENT COMPANY

1. Fund

(1) Amount of Capital Stock

Not applicable (as of the end of April, 2014).

(2) Description of Business and Outline of Operation

The Fund may carry out any administrative and managerial act, including the purchase, sale, subscription and exchange of any securities, and the exercise of all rights directly or indirectly pertaining to the Fund's assets. The Fund has retained Putnam Investment Management, LLC, the investment adviser, to render investment advisory services, State Street Bank and Trust Company, to hold the assets of the Fund in custody and Putnam Investor Services, Inc., to act as Investor Servicing Agent.

Putnam Investment Management LLC has retained its affiliate, Putnam Investments Limited, to manage a separate portion of the assets of the Fund subject to its supervision.

(3) Miscellaneous

Not applicable.

2. Putnam Investment Management, LLC. (Investment Management Company)

(1) Amount of Capital Stock

1. Amount of member’s equity of the Investment Management Company (as of the end of April, 2014):

$32,885,071* **

2. Amount of member’s equity for the past five years:

Year    Member’s Equity 
End of 2009  $69,079,977 
End of 2010  $82,851,104 
End of 2011  $135,510,826 
End of 2012  $21,073,034* 
End of 2013  $34,533,038* 

 

* Consists of all components of equity and Parent Company relationship.

** This figure is unaudited.

(2) Description of Business and Outline of Operation

Investment Management Company is engaged in the business of providing investment management and investment advisory services to mutual funds. As of the end of April, 2014, Investment Management Company managed, advised, and/or administered the following 116 funds and fund portfolios (having an aggregate net asset value of over $81billion):


- 9 - 

 

    (As of the end of April, 2014) 
Country where  Principal Characteristic  Number of Funds  Net Asset Value 
Funds are      (million dollars) 
established or       
managed       
  Closed End Type Bond Fund  6  $4,447.39 
 
  Open End Type Balanced Fund  11  $14,270.42 
U.S.A. 
  Open End Type Bond Fund  35  $18,647.95 
 
  Open End Type Equity Fund  64*  $43,668.43 
  Total  116  $81,034.19 

 

*May include one or more funds whose portfolios become more conservative over time by increasing their bond allocations.

(3) Miscellaneous

Not applicable.

V. OUTLINE OF THE FINANCIAL STATUS OF THE MANAGEMENT COMPANY

1. Fund [the same as III. OUTLINE OF THE FINANCIAL STATUS OF THE FUND.]

2. Putnam Investment Management, LLC. (Investment Management Company)

[Omitted, in Japanese version, audited annual accounts of the Investment Management Company and Japanese translations thereof are incorporated here.]