UNITED STATES SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM N-CSR |
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES |
Investment Company Act file number: | (811-07513) |
Exact name of registrant as specified in charter: | Putnam Funds Trust |
Address of principal executive offices: | 100 Federal Street, Boston, Massachusetts 02110 |
Name and address of agent for service: | Stephen Tate, Vice President 100 Federal Street Boston, Massachusetts 02110 |
Copy to: | Bryan Chegwidden, Esq. Ropes & Gray LLP 1211 Avenue of the Americas New York, New York 10036 |
Registrant’s telephone number, including area code: | (617) 292-1000 |
Date of fiscal year end: | February 28, 2022 |
Date of reporting period: | March 1, 2021 – February 28, 2022 |
Item 1. Report to Stockholders: |
The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940: |
Putnam
Floating Rate
Income Fund
Annual report
2 | 28 | 22
Message from the Trustees
April 4, 2022
Dear Fellow Shareholder:
Financial markets have been bumpy in recent months. Investors are weighing the risks of rising inflation, changes in Federal Reserve policy, the latest Covid-19 variants, and the global impact of the Russia-Ukraine conflict.
In times like these, it’s worth remembering the benefits of staying focused on your long-term financial goals. At Putnam, professional, active investors are working for you. They are monitoring risks while looking for strong potential investments for your fund. Learn more in the interview with your fund manager(s) in the following pages.
Thank you for investing with Putnam.
Putnam Floating Rate Income Fund focuses on a special class of bonds known as floating-rate bank loans. These are loans issued by banks to corporations. Interest rates on these loans “float” in that they periodically adjust to reflect changes in short-term rates. When rates rise, floating-rate loans pay a higher yield. With this feature, these loans can benefit from both rising interest rates and strong economic conditions — factors that pose risks to traditional bonds.
2 Floating Rate Income Fund |
Most bank loans are senior-secured debt, meaning that lenders are generally paid before any unsecured debt holders in the event of a liquidation of a company’s assets due to bankruptcy.
Floating-rate loans are typically issued on behalf of companies that lack investment-grade credit ratings. Like high-yield corporate bonds, floating-rate loans are considered to have a greater chance of default and can be illiquid. The advantage for investors is the senior-secured status of the loans, which gives them a higher claim on the company’s assets.
Floating Rate Income Fund 3 |
Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will fluctuate, and you may have a gain or a loss when you sell your shares. Performance of class A shares assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart do not reflect a sales charge of 2.25%; had they, returns would have been lower. See below and pages 10–12 for additional performance information. For a portion of the periods, the fund had expense limitations, without which returns would have been lower. To obtain the most recent month-end performance, visit putnam.com.
Lipper peer group average provided by Lipper, a Refinitiv company.
* Benchmark life of fund return reflects performance from 8/31/04 to the current period as data is only available from the month-end following the fund’s inception (8/4/04).
This comparison shows your fund’s performance in the context of broad market indexes for the 12 months ended 2/28/22. See above and pages 10–12 for additional fund performance information. Index descriptions can be found on pages 16–17.
All Bloomberg indices are provided by Bloomberg Index Services Limited.
4 Floating Rate Income Fund |
Rob, how would you summarize the high-yield bank loan market during the 12-month reporting period ended February 28, 2022?
Loans posted modest gains, predominantly from income returns, for most of the period. The fund’s benchmark, the S&P/LSTA Leveraged Loan Index, rose 3.22%, outpacing high-yield and investment-grade corporate credit.
After advancing strongly in the early months of 2021, the loan market rally paused in March, when loans with higher-quality credit ratings underperformed. The positive trend resumed in April, however, lifted by an improved tone for risk assets, consistent retail fund inflows, and strong origination of CLOs. [CLO stands for “collateralized loan obligation.” These vehicles bundle corporate loans and sell slices of the debt to institutional investors.] Except for a modest pullback in July, loans registered moderate monthly gains through October. Advancing Covid-19 vaccination campaigns, accelerating economic growth, and continued solid demand from CLOs aided the asset class during this period. After declining slightly in November, loans rebounded in December, as
Floating Rate Income Fund 5 |
Credit qualities are shown as a percentage of the fund’s net assets as of 2/28/22. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings and portfolio credit quality will vary over time.
Cash and net other assets, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.
This table shows the fund’s top 10 individual holdings and the percentage of the fund’s net assets that each represented as of 2/28/22. Short-term investments and derivatives, if any, are excluded. Holdings may vary over time.
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concerns about the severity of the Omicron variant of Covid-19 receded.
As the new year began, loans gained in January, despite losses across global fixed income and equity markets. The shift to a more restrictive interest-rate policy by the U.S. Federal Reserve sparked demand for floating-rate debt. Loans turned lower in February, reflecting a retreat from risk assets amid the Russian invasion of Ukraine. It was only the third time in the past 23 months that loans posted negative performance.
Within the fund’s benchmark, every cohort but one generated a gain. Energy [+8%] was the best-performing group, powered by a 45% advance in the price of U.S. crude oil. Other outperformers included services, transportation, technology, and industrials, with each rising 4% to 5%. Conversely, the more-defensive broadcasting [–2%] and utilities [+1%] sectors were the primary laggards. From a credit-rating perspective, lower-quality loans significantly outstripped the benchmark, signaling a comfort level with risk as investors sought higher yields.
The fund trailed the benchmark and the average return of its Lipper peer group during the period. What factors had the greatest impact on relative performance?
Security selection and underweight allocations in the technology, services, and health care sectors hampered performance versus the benchmark during the period.
In terms of individual holdings, greater-than-benchmark positions in TV broadcasting company Sinclair Broadcast Group, weight-loss services provider WW International — formerly Weight Watchers International — and Enterprise Merger worked against relative performance.
On the plus side, avoiding several underperforming index components aided performance versus the benchmark during the period. These included Canadian satellite communications company Telesat, energy partnership Tenaska Power Fund [TPF II], and movie theater operator Cineworld Group.
How did you use derivatives during the period?
Our limited use of derivatives entailed a position in credit default swaps, which we used to increase portfolio liquidity, help hedge the fund’s credit and market risks, and gain exposure to specific issuers.
What is your outlook for the bank loan market over the coming months?
We have a positive outlook for the loan market. Our view is based on what we consider to be strong fundamentals and a favorable overall supply-and-demand backdrop. Our view on valuation is more neutral, given the relative tightness of yield spreads in the market as of period-end. That said, loan spreads widened in February 2022 and, we believe, are more attractive than high-yield bond spreads. [Spreads are the yield advantage loans and credit-sensitive bonds offer over comparable-maturity U.S. Treasuries.] Despite a substantial increase in loan supply, we think the market’s technical environment is favorable. In addition to steady institutional demand from CLOs, headlines about higher interest rates continued to spark demand for loans from individual investors. February 2022 was the fifteenth consecutive month of flows into loan funds [mutual funds and exchange-traded funds]. Given the floating-rate nature of loan coupons, if short-term interest rates continue to rise in 2022, we believe loan coupons will adjust higher. [A coupon is a loan’s stated interest rate.]
Floating Rate Income Fund 7 |
As of period-end, U.S. economic growth expectations had moderated somewhat. However, we believe U.S. gross domestic product will continue to grow at a rate above the longer-term trend in 2022. Following robust corporate earnings growth in 2021, market expectations for 2022 were adjusted down to the low double-digit range. Despite decelerating economic and corporate profit growth, credit metrics and ratings continued to improve for loan issuers, in our view. Moreover, we believe issuers continued to benefit from strong demand for credit risk.
All these factors impacted the U.S. leveraged loan default rate. Including distressed exchanges, the U.S. leveraged loan default rate ended the period at 0.61%. This was well below the long-term average of approximately 3.0%.
In light of our positive outlook, along with expectations for higher interest rates, we have been adding resources to our team. We are positioning the fund’s strategy to target new market opportunities. Adding resources has enabled our team to broaden its issuer coverage and generate new investment ideas.
How was the portfolio positioned as of February 28, 2022?
We continued our efforts to prudently deploy capital by focusing on our research team’s best ideas and on keeping the portfolio well diversified. Our credit analysts are sector specialists and cover the full credit-rating spectrum, from investment-grade to lower-quality, more-speculative issuers. Given this structure, our analysts can quickly recognize the signs of credit deterioration in an issuer.
We had increased the fund’s allocation to mid-tier B-rated securities and modestly reduced exposure to higher-quality areas of the market. Increasing the allocation to B-rated securities boosts the amount of income within the portfolio, while maintaining a risk posture that we believe is consistent with the fund’s objective.
In terms of security selection, we remained focused on issuers with stable or improving credit profiles, while taking a selective approach to smaller issuers.
This chart shows how the fund’s top weightings have changed over the past six months. Allocations are shown as a percentage of the fund’s net assets. Current period summary information may differ from the portfolio schedule included in the financial statements due to the inclusion of derivative securities, any interest accruals, the use of different classifications of securities for presentation purposes, and rounding. Holdings and allocations may vary over time.
8 Floating Rate Income Fund |
We continued to maintain a liquidity allocation in the portfolio. Historically, the fund had used investment-grade and high-yield corporate credit as sources of liquidity. However, given tighter corporate spreads, we began using alternative liquidity sources, such as exposure to the high-yield credit default swap index.
Thanks for your time and for bringing us up to date, Rob.
The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice.
Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.
Floating Rate Income Fund 9 |
Your fund’s performance
This section shows your fund’s performance, price, and distribution information for periods ended February 28, 2022, the end of its most recent fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance information as of the most recent calendar quarter-end and expense information taken from the fund’s current prospectus. Performance should always be considered in light of a fund’s investment strategy. Data represent past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance information does not reflect any deduction for taxes a shareholder may owe on fund distributions or on the redemption of fund shares. For the most recent month-end performance, please visit the Individual Investors section at putnam.com or call Putnam at 1-800-225-1581. Class R, R6, and Y shares are not available to all investors. See the Terms and definitions section in this report for definitions of the share classes offered by your fund.
Fund performance Total return for periods ended 2/28/22
Annual | ||||||||
average | Annual | Annual | Annual | |||||
(life of fund) | 10 years | average | 5 years | average | 3 years | average | 1 year | |
Class A (8/4/04) | ||||||||
Before sales charge | 3.33% | 38.01% | 3.27% | 13.82% | 2.62% | 6.96% | 2.27% | 1.63% |
After sales charge | 3.20 | 34.91 | 3.04 | 11.26 | 2.16 | 4.56 | 1.50 | –0.66 |
Class B (9/7/04) | ||||||||
Before CDSC | 3.10 | 35.65 | 3.10 | 12.54 | 2.39 | 6.19 | 2.02 | 1.30 |
After CDSC | 3.10 | 35.65 | 3.10 | 12.54 | 2.39 | 6.19 | 2.02 | 0.31 |
Class C (9/7/04) | ||||||||
Before CDSC | 2.97 | 29.81 | 2.64 | 9.48 | 1.83 | 4.45 | 1.46 | 0.74 |
After CDSC | 2.97 | 29.81 | 2.64 | 9.48 | 1.83 | 4.45 | 1.46 | –0.24 |
Class R (9/7/04) | ||||||||
Net asset value | 3.07 | 34.43 | 3.00 | 12.26 | 2.34 | 6.03 | 1.97 | 1.25 |
Class R6 (5/22/18) | ||||||||
Net asset value | 3.59 | 41.75 | 3.55 | 15.44 | 2.91 | 7.92 | 2.57 | 1.83 |
Class Y (10/4/05) | ||||||||
Net asset value | 3.58 | 41.52 | 3.53 | 15.26 | 2.88 | 7.77 | 2.53 | 1.88 |
Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. After-sales-charge returns for class A shares reflect the deduction of the maximum 2.25% sales charge levied at the time of purchase. Class B share returns after contingent deferred sales charge (CDSC) reflect the applicable CDSC, which, for class B shares, is 1% in the first year, declining to 0.5% in the second year, and is eliminated thereafter. Class C share returns after CDSC reflect a 1% CDSC for the first year that is eliminated thereafter. Class R, R6 and Y shares have no initial sales charge or CDSC. Performance for class B, C, R, and Y shares before their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares, except for class Y shares, for which 12b-1 fees are not applicable. Performance for class R6 shares prior to their inception is derived from the historical performance of class Y shares and has not been adjusted for the lower investor servicing fees applicable to class R6 shares; had it, returns would have been higher.
For a portion of the periods, the fund had expense limitations, without which returns would have been lower.
Class B and C share performance reflects conversion to class A shares after eight years.
10 Floating Rate Income Fund |
Comparative index returns For periods ended 2/28/22
Annual | ||||||||
average | Annual | Annual | Annual | |||||
(life of fund) | 10 years | average | 5 years | average | 3 years | average | 1 year | |
S&P/LSTA Leveraged | ||||||||
Loan Index* | 4.64% | 53.38% | 4.37% | 21.78% | 4.02% | 12.97% | 4.15% | 3.22% |
Lipper Loan Participation | ||||||||
Funds category average† | 3.53 | 40.25 | 3.42 | 15.58 | 2.93 | 8.52 | 2.75 | 2.28 |
Index and Lipper results should be compared with fund performance before sales charge, before CDSC, or at net asset value.
Lipper peer group average provided by Lipper, a Refinitiv company.
* Benchmark life of fund return reflects performance from 8/31/04 to the current period as data is only available from the month-end following the fund’s inception (8/4/04).
† Over the 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 2/28/22, there were 241, 228, 207, 139, and 26 funds, respectively, in this Lipper category.
Past performance does not indicate future results. At the end of the same time period, a $10,000 investment in the fund’s class B and C shares would have been valued at $13,565 and $12,981, respectively, and no contingent deferred sales charges would apply. A $10,000 investment in the fund’s class R, R6, and Y shares would have been valued at $13,443, $14,175, and $14,152, respectively.
Floating Rate Income Fund 11 |
Fund price and distribution information For the 12-month period ended 2/28/22
Distributions | Class A | Class B | Class C | Class R | Class R6 | Class Y | |
Number | 12 | 12 | 12 | 12 | 12 | 12 | |
Income | $0.223515 | $0.206888 | $0.161385 | $0.202788 | $0.250343 | $0.244383 | |
Capital gains | — | — | — | — | — | — | |
Total | $0.223515 | $0.206888 | $0.161385 | $0.202788 | $0.250343 | $0.244383 | |
Before | After | Net | Net | Net | Net | Net | |
sales | sales | asset | asset | asset | asset | asset | |
Share value | charge | charge | value | value | value | value | value |
2/28/21 | $8.27 | $8.46 | $8.27 | $8.27 | $8.27 | $8.28 | $8.28 |
2/28/22 | 8.18 | 8.37 | 8.17 | 8.17 | 8.17 | 8.18 | 8.19 |
Before | After | Net | Net | Net | Net | Net | |
Current rate | sales | sales | asset | asset | asset | asset | asset |
(end of period) | charge | charge | value | value | value | value | value |
Current dividend rate1 | 3.37% | 3.30% | 3.16% | 2.55% | 3.10% | 3.72% | 3.65% |
Current 30-day | |||||||
SEC yield2 | N/A | 2.88 | 2.75 | 2.20 | 2.69 | 3.26 | 3.20 |
The classification of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate for class A shares, if applicable, do not take into account any sales charge levied at the time of purchase. After-sales-charge share value, current dividend rate and current 30-day SEC yield, if applicable, are calculated assuming that the maximum sales charge (2.25% for class A shares) was levied at the time of purchase. Final distribution information will appear on your year-end tax forms.
1 Most recent distribution, including any return of capital and excluding capital gains, annualized and divided by share price before or after sales charge at period-end.
2 Based only on investment income and calculated using the maximum offering price for each share class, in accordance with SEC guidelines.
Fund performance as of most recent calendar quarter Total return for periods ended 3/31/22
Annual | ||||||||
average | Annual | Annual | Annual | |||||
(life of fund) | 10 years | average | 5 years | average | 3 years | average | 1 year | |
Class A (8/4/04) | ||||||||
Before sales charge | 3.31% | 36.72% | 3.18% | 13.64% | 2.59% | 7.33% | 2.38% | 1.69% |
After sales charge | 3.17 | 33.65 | 2.94 | 11.08 | 2.12 | 4.91 | 1.61 | –0.60 |
Class B (9/7/04) | ||||||||
Before CDSC | 3.08 | 34.54 | 3.01 | 12.37 | 2.36 | 6.68 | 2.18 | 1.36 |
After CDSC | 3.08 | 34.54 | 3.01 | 12.37 | 2.36 | 6.68 | 2.18 | 0.37 |
Class C (9/7/04) | ||||||||
Before CDSC | 2.95 | 28.89 | 2.57 | 9.31 | 1.80 | 4.93 | 1.62 | 0.93 |
After CDSC | 2.95 | 28.89 | 2.57 | 9.31 | 1.80 | 4.93 | 1.62 | –0.06 |
Class R (9/7/04) | ||||||||
Net asset value | 3.05 | 33.49 | 2.93 | 12.22 | 2.33 | 6.52 | 2.13 | 1.44 |
Class R6 (5/22/18) | ||||||||
Net asset value | 3.57 | 40.76 | 3.48 | 15.41 | 2.91 | 8.42 | 2.73 | 2.02 |
Class Y (10/4/05) | ||||||||
Net asset value | 3.55 | 40.36 | 3.45 | 15.08 | 2.85 | 8.14 | 2.64 | 1.95 |
See the discussion following the fund performance table on page 10 for information about the calculation of fund performance.
12 Floating Rate Income Fund |
Your fund’s expenses
As a mutual fund investor, you pay ongoing expenses, such as management fees, distribution fees (12b-1 fees), and other expenses. Using the following information, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. You may also pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial representative.
Expense ratios
Class A | Class B | Class C | Class R | Class R6 | Class Y | |
Total annual operating expenses for the | ||||||
fiscal year ended 2/28/21 | 1.04% | 1.24% | 1.79% | 1.29% | 0.70% | 0.79% |
Annualized expense ratio for the | ||||||
six-month period ended 2/28/22* | 0.99% | 1.19% | 1.74% | 1.24% | 0.68% | 0.74% |
Fiscal year expense information in this table is taken from the most recent prospectus, is subject to change, and may differ from that shown for the annualized expense ratio and in the financial highlights of this report.
Expenses are shown as a percentage of average net assets.
* Expense ratios for each class are for the fund’s most recent fiscal half year. As a result of this, ratios may differ from expense ratios based on one-year data in the financial highlights.
Expenses per $1,000
The following table shows the expenses you would have paid on a $1,000 investment in each class of the fund from 9/1/21 to 2/28/22. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.
Class A | Class B | Class C | Class R | Class R6 | Class Y | |
Expenses paid per $1,000*† | $4.92 | $5.91 | $8.63 | $6.16 | $3.38 | $3.68 |
Ending value (after expenses) | $1,004.90 | $1,002.70 | $1,001.20 | $1,002.50 | $1,005.30 | $1,006.20 |
* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 2/28/22. The expense ratio may differ for each share class.
† Expenses are calculated by multiplying the expense ratio by the average account value for the period; then multiplying the result by the number of days in the period (181); and then dividing that result by the number of days in the year (365).
Floating Rate Income Fund 13 |
Estimate the expenses you paid
To estimate the ongoing expenses you paid for the six months ended 2/28/22, use the following calculation method. To find the value of your investment on 9/1/21, call Putnam at 1-800-225-1581.
Compare expenses using the SEC’s method
The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the following table shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.
Class A | Class B | Class C | Class R | Class R6 | Class Y | |
Expenses paid per $1,000*† | $4.96 | $5.96 | $8.70 | $6.21 | $3.41 | $3.71 |
Ending value (after expenses) | $1,019.89 | $1,018.89 | $1,016.17 | $1,018.65 | $1,021.42 | $1,021.12 |
* Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of average net assets for the six months ended 2/28/22. The expense ratio may differ for each share class.
† Expenses are calculated by multiplying the expense ratio by the average account value for the six-month period; then multiplying the result by the number of days in the six-month period (181); and then dividing that result by the number of days in the year (365).
14 Floating Rate Income Fund |
Consider these risks before investing
The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings.
Lower-rated bonds may offer higher yields in return for more risk. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Floating-rate loans may reduce, but not eliminate, interest-rate risk. These loans are typically secured by specific collateral or assets of the issuer (so that holders of the loan, such as the fund, have a priority claim on those assets in the event of the issuer’s default or bankruptcy). The value of collateral may be insufficient to meet the issuer’s obligations, and the fund’s access to collateral may be limited by bankruptcy or other insolvency laws.
Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.
Floating Rate Income Fund 15 |
Terms and definitions
Important terms
Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.
Before sales charge, or net asset value, is the price, or value, of one share of a mutual fund, without a sales charge. Before-sales-charge figures fluctuate with market conditions. They are calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.
After sales charge is the price of a mutual fund share plus the maximum sales charge levied at the time of purchase. After-sales-charge performance figures shown here assume the 2.25% maximum sales charge for class A shares.
Contingent deferred sales charge (CDSC) is generally a charge applied at the time of the redemption of class B or C shares and assumes redemption at the end of the period. Your fund’s class B CDSC declines over time from a 1% maximum during the first year to 0.5% during the second year. After the second year, the CDSC no longer applies. The CDSC for class C shares is 1% for one year after purchase.
Share classes
Class A shares are generally subject to an initial sales charge and no CDSC (except on certain redemptions of shares bought without an initial sales charge).
Class B shares are closed to new investments and are only available by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment. They are not subject to an initial sales charge and may be subject to a CDSC.
Class C shares are not subject to an initial sales charge and are subject to a CDSC only if the shares are redeemed during the first year.
Class R shares are not subject to an initial sales charge or CDSC and are only available to employer-sponsored retirement plans.
Class R6 shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to employer-sponsored retirement plans, corporate and institutional clients, and clients in other approved programs.
Class Y shares are not subject to an initial sales charge or CDSC and carry no 12b-1 fee. They are generally only available to corporate and institutional clients and clients in other approved programs.
Fixed income terms
Current rate is the annual rate of return earned from dividends or interest of an investment. Current rate is expressed as a percentage of the price of a security, fund share, or principal investment.
Yield curve is a graph that plots the yields of bonds with equal credit quality against their differing maturity dates, ranging from shortest to longest. It is used as a benchmark for other debt, such as mortgage or bank lending rates.
Comparative indexes
Bloomberg U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.
ICE BofA (Intercontinental Exchange Bank of America) U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.
S&P/LSTA Leveraged Loan Index is an unmanaged index of U.S. leveraged loans.
S&P 500® Index is an unmanaged index of common stock performance.
16 Floating Rate Income Fund |
Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.
BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approve or endorse this material, or guarantee the accuracy or completeness of any information herein, or make any warranty, express or implied, as to the results to be obtained therefrom, and to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
ICE Data Indices, LLC (“ICE BofA”), used with permission. ICE BofA permits use of the ICE BofA indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofA indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.
Lipper, a Refinitiv company, is a third-party industry-ranking entity that ranks mutual funds. Its rankings do not reflect sales charges. Lipper rankings are based on total return at net asset value relative to other funds that have similar current investment styles or objectives as determined by Lipper. Lipper may change a fund’s category assignment at its discretion. Lipper category averages reflect performance trends for funds within a category.
Floating Rate Income Fund 17 |
Other information for shareholders
Proxy voting
Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2021, are available in the Individual Investors section of putnam.com and on the Securities and Exchange Commission (SEC) website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.
Fund portfolio holdings
The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT within 60 days of the end of such fiscal quarter. Shareholders may obtain the fund’s Form N-PORT on the SEC’s website at www.sec.gov.
Prior to its use of Form N-PORT, the fund filed its complete schedule of its portfolio holdings with the SEC on Form N-Q, which is available online at www.sec.gov.
Trustee and employee fund ownership
Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of February 28, 2022, Putnam employees had approximately $526,000,000 and the Trustees had approximately $77,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.
18 Floating Rate Income Fund |
Important notice regarding Putnam’s privacy policy
In order to conduct business with our shareholders, we must obtain certain personal information such as account holders’ names, addresses, Social Security numbers, and dates of birth. Using this information, we are able to maintain accurate records of accounts and transactions.
It is our policy to protect the confidentiality of our shareholder information, whether or not a shareholder currently owns shares of our funds. In particular, it is our policy not to sell information about you or your accounts to outside marketing firms. We have safeguards in place designed to prevent unauthorized access to our computer systems and procedures to protect personal information from unauthorized use.
Under certain circumstances, we must share account information with outside vendors who provide services to us, such as mailings and proxy solicitations. In these cases, the service providers enter into confidentiality agreements with us, and we provide only the information necessary to process transactions and perform other services related to your account. Finally, it is our policy to share account information with your financial representative, if you’ve listed one on your Putnam account.
Floating Rate Income Fund 19 |
Audited financial statements
These sections of the report, as well as the accompanying Notes, preceded by the Report of Independent Registered Public Accounting Firm, constitute the fund’s audited financial statements.
The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.
Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share, which is calculated separately for each class of shares. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)
Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.
Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned.
Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.
20 Floating Rate Income Fund |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Putnam Funds Trust and Shareholders
of Putnam Floating Rate Income Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the fund’s portfolio, of Putnam Floating Rate Income Fund (one of the funds constituting Putnam Funds Trust, referred to hereafter as the “Fund”) as of February 28, 2022, the related statement of operations for the year ended February 28, 2022, the statement of changes in net assets for each of the two years in the period ended February 28, 2022, including the related notes, and the financial highlights for each of the two years in the period ended February 28, 2022 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of February 28, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended February 28, 2022 and the financial highlights for each of the two years in the period ended February 28, 2022 in conformity with accounting principles generally accepted in the United States of America.
The financial statements of the Fund as of and for the year ended February 29, 2020 and the financial highlights for each of the periods ended on or prior to February 29, 2020 (not presented herein, other than the statement of changes in net assets and the financial highlights) were audited by other auditors whose report dated April 8, 2020 expressed an unqualified opinion on those financial statements and financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of February 28, 2022 by correspondence with the custodian, transfer agent, agent banks and brokers; when replies were not received from agent banks and brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
April 4, 2022
We have served as the auditor of one or more investment companies in the Putnam Investments family of funds since at least 1957. We have not been able to determine the specific year we began serving as auditor.
Floating Rate Income Fund 21 |
The fund’s portfolio 2/28/22 | ||
SENIOR LOANS (89.9%)*c | Principal amount | Value | |
Advertising and marketing services (2.0%) | |||
Clear Channel Outdoor Holdings, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 3.799%, 8/21/26 | $3,298,834 | $3,233,319 | |
Dotdash Meredith, Inc. bank term loan FRN Ser. B, (SOFR + 4.00%), 4.50%, 11/23/28 | 3,000,000 | 2,979,390 | |
Terrier Media Buyer, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.50%), 3.709%, 12/17/26 | 3,182,790 | 3,139,472 | |
9,352,181 | |||
Aerospace and defense (0.2%) | |||
Epicor Software Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 7.75%), 8.75%, 7/30/28 | 855,000 | 870,390 | |
870,390 | |||
Automotive (0.8%) | |||
American Trailer World Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 3.75%), 4.50%, 3/3/28 | 1,995,000 | 1,959,469 | |
Rough Country, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 3.50%), 4.25%, 7/26/28 | 1,975,000 | 1,962,755 | |
3,922,224 | |||
Basic materials (8.9%) | |||
Alpha 3 BV bank term loan FRN (BBA LIBOR USD 3 Month + 2.50%), 3.00%, 3/5/28 | 2,348,200 | 2,336,459 | |
ARC Falcon I, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.25%, 9/22/28 | 1,308,917 | 1,283,289 | |
ARC Falcon I, Inc. bank term loan FRN Ser. DD, (1 Month US LIBOR + 3.75%), 4.25%, 9/22/28 U | 191,083 | 187,341 | |
Core & Main LP bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.50%), 2.709%, 6/10/28 | 1,491,253 | 1,471,375 | |
CP Atlas Buyer, Inc. bank term loan FRN Ser. B1, (BBA LIBOR USD 3 Month + 3.75%), 4.25%, 11/23/27 | 2,156,871 | 2,114,122 | |
Diamond BC BV bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.50%, 9/14/28 | 3,000,000 | 2,955,780 | |
Ecovyst, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.50%), 4.25%, 4/30/28 | 1,000,000 | 992,500 | |
GEON Performance Solutions, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.75%), 5.50%, 8/20/28 | 997,500 | 991,894 | |
Herens US Holdco Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.00%), 4.75%, 4/30/28 | 2,666,600 | 2,647,427 | |
Ineos US Petrochem, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 3.25%, 1/29/26 | 995,000 | 983,189 | |
Klockner-Pentaplast of America, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 4.75%), 5.554%, 2/4/26 | 2,116,519 | 1,978,945 | |
Messer Industries USA, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.50%), 2.724%, 3/1/26 | 2,483,453 | 2,454,222 | |
Olympus Water US Holding Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.25%, 9/21/28 | 3,000,000 | 2,956,500 | |
PMHC II, Inc. bank term loan FRN (CME TERM SOFR 3 Month PLUS CSA + 4.25%), 4.75%, 2/2/29 | 1,500,000 | 1,476,255 | |
Pregis TopCo, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 4.00%), 4.50%, 8/1/26 | 1,496,250 | 1,488,769 | |
Quikrete Holdings, Inc. bank term loan FRN Ser. B, (1 Month US LIBOR + 2.63%), 3.081%, 6/11/28 | 1,000,000 | 989,840 |
22 Floating Rate Income Fund |
SENIOR LOANS (89.9%)*c cont. | Principal amount | Value | |
Basic materials cont. | |||
Quikrete Holdings, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.50%), 2.709%, 2/1/27 | $2,538,445 | $2,491,382 | |
SCIH Salt Holdings, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.00%), 4.75%, 3/16/27 | 2,159,136 | 2,124,050 | |
Starfruit US Holdco, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.209%, 10/1/25 | 1,654,421 | 1,632,500 | |
Sylvamo Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 4.50%), 5.00%, 8/20/28 | 1,366,667 | 1,356,417 | |
TAMKO Building Products, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.255%, 5/3/26 | 3,562,468 | 3,528,339 | |
TMS International Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 3.75%, 8/14/24 | 708,078 | 700,997 | |
TMS International Corp./DE bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 3.75%, 8/14/24 | 188,100 | 186,219 | |
Trinseo Materials Operating SCA bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.50%), 2.709%, 3/18/28 | 1,990,000 | 1,963,135 | |
WR Grace Holdings, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.25%, 8/12/28 | 3,000,000 | 2,983,740 | |
44,274,686 | |||
Broadcasting (2.0%) | |||
Banijay Group US Holding, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 3.857%, 3/4/25 | 2,535,741 | 2,510,384 | |
Diamond Sports Group, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.25%), 5.50%, 8/24/26 | 1,443,921 | 535,695 | |
Entercom Media Corp. bank term loan FRN Ser. B1, (BBA LIBOR USD 3 Month + 2.50%), 2.709%, 11/17/24 | 1,210,716 | 1,190,667 | |
iHeartCommunications, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 5/1/26 | 976,302 | 968,570 | |
iHeartCommunications, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.209%, 5/1/26 | 1,472,582 | 1,454,704 | |
Nexstar Broadcasting, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 2.731%, 6/19/26 | 2,347,551 | 2,333,536 | |
Sinclair Broadcasting bank term loan FRN Ser. B2B, (BBA LIBOR USD 3 Month + 2.50%), 2.71%, 7/18/26 | 1,046,967 | 1,000,722 | |
9,994,278 | |||
Building materials (4.6%) | |||
AppleCaramel Buyer, LLC bank term loan FRN (CME TERM SOFR 3 Month PLUS CSA + 3.75%), 4.25%, 10/19/27 | 2,875,704 | 2,845,595 | |
Chariot Buyer, LLC bank term loan FRN (1 Month US LIBOR + 3.50%), 4.00%, 10/22/28 | 3,000,000 | 2,970,000 | |
Cornerstone Building Brands, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 4/12/28 | 2,917,452 | 2,844,515 | |
CPG International, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 2.50%), 3.25%, 5/5/24 | 1,735,513 | 1,727,703 | |
Hunter Douglas, Inc. bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 3.50%), 4.00%, 2/9/29 | 2,000,000 | 1,968,760 | |
LBM Acquisition, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.50%, 12/17/27 | 2,816,257 | 2,768,746 | |
Robertshaw Holdings Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 8.00%), 9.00%, 2/28/26 | 1,935,000 | 1,489,950 |
Floating Rate Income Fund 23 |
SENIOR LOANS (89.9%)*c cont. | Principal amount | Value | |
Building materials cont. | |||
Robertshaw Holdings Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 3.50%), 4.50%, 2/28/25 | $880,812 | $803,300 | |
Watlow Electric Manufacturing, Co. bank term loan FRN (BBA LIBOR USD 3 Month + 3.75%), 4.25%, 3/2/28 | 2,992,462 | 2,957,540 | |
Werner Finco LP bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.00%), 5.00%, 7/24/24 | 2,611,143 | 2,601,351 | |
22,977,460 | |||
Capital goods (10.4%) | |||
Adient US, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.459%, 4/1/28 | 3,124,698 | 3,106,731 | |
American Axle and Manufacturing, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 2.25%), 3.00%, 4/6/24 | 750,733 | 744,007 | |
BWAY Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.481%, 4/3/24 | 3,051,893 | 2,997,050 | |
Clarios Global LP bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.459%, 4/30/26 | 3,579,175 | 3,538,910 | |
Filtration Group Corp. bank term loan FRN (1 Month US LIBOR + 3.50%), 4.00%, 10/19/28 | 997,500 | 989,021 | |
Filtration Group Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.187%, 3/27/25 | 2,407,854 | 2,378,261 | |
GFL Environmental, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.00%), 3.50%, 5/31/25 | 1,442,856 | 1,436,637 | |
Graham Packaging Co., Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.00%), 3.75%, 8/4/27 | 1,652,933 | 1,634,800 | |
Granite US Holdings Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 4.00%), 4.224%, 9/30/26 | 1,426,584 | 1,412,318 | |
Harsco Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.25%), 2.75%, 3/5/28 | 1,990,000 | 1,961,802 | |
II-VI, Inc. bank term loan FRN Ser. B, (1 Month US LIBOR + 2.75%), 3.25%, 12/8/28 | 1,000,000 | 989,380 | |
LSF11 A5 HoldCo, LLC bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 3.75%), 4.25%, 9/30/28 | 24,000 | 23,700 | |
Madison IAQ, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 6/15/28 | 2,985,000 | 2,934,165 | |
MajorDrive Holdings IV, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 4.00%), 4.563%, 6/1/28 | 2,646,700 | 2,624,653 | |
OT Merger Corp. bank term loan FRN (1 Month US LIBOR + 4.00%), 4.50%, 10/7/28 | 3,000,000 | 2,986,260 | |
Patriot Container Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.75%, 3/20/25 | 489,822 | 469,004 | |
Pro Mach Group, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.00%), 5.00%, 8/13/28 | 2,664,804 | 2,658,142 | |
Pro Mach Group, Inc. bank term loan FRN Ser. DD, (BBA LIBOR USD 3 Month + 4.00%), 4.00%, 8/13/28 U | 335,196 | 334,358 | |
Reynolds Group Holdings, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.25%), 3.459%, 2/5/26 | 1,574,100 | 1,547,545 | |
Reynolds Group Holdings, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 4.00%, 9/20/28 | 498,750 | 492,236 | |
Staples, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 5.00%), 5.317%, 4/9/26 | 2,450,693 | 2,321,272 |
24 Floating Rate Income Fund |
SENIOR LOANS (89.9%)*c cont. | Principal amount | Value | |
Capital goods cont. | |||
Tenneco, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.00%), 3.209%, 10/1/25 | $992,327 | $984,885 | |
TI Group Automotive Systems, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 12/16/26 | 992,500 | 986,922 | |
Titan Acquisition, Ltd. (United Kingdom) bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.354%, 3/28/25 | 2,822,274 | 2,763,486 | |
TK Elevator US Newco, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.50%), 4.00%, 7/31/27 | 3,676,238 | 3,647,343 | |
TransDigm, Inc. bank term loan FRN Ser. E, (BBA LIBOR USD 3 Month + 2.25%), 2.459%, 5/30/25 | 1,568,343 | 1,539,846 | |
TransDigm, Inc. bank term loan FRN Ser. F, (BBA LIBOR USD 3 Month + 2.25%), 2.459%, 12/9/25 | 1,473,268 | 1,446,926 | |
Vertiv Group Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 2.857%, 3/2/27 | 2,720,750 | 2,628,925 | |
51,578,585 | |||
Commercial and consumer services (2.7%) | |||
Allied Universal Holdco, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.25%, 5/5/28 | 997,500 | 983,206 | |
API Group DE, Inc. bank term loan FRN (1 Month US LIBOR + 2.75%), 2.959%, 10/7/28 | 2,000,000 | 1,986,780 | |
Garda World Security Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.25%), 4.43%, 10/30/26 | 2,614,604 | 2,584,640 | |
Iron Mountain, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 1.75%), 1.959%, 1/2/26 | 1,769,806 | 1,738,834 | |
Pitney Bowes, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.00%), 4.084%, 3/12/28 | 1,985,000 | 1,962,669 | |
Prime Security Services Borrower, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 3.50%, 9/23/26 | 2,268,669 | 2,241,581 | |
Signal Parent, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 4.25%, 4/3/28 | 1,990,000 | 1,856,929 | |
13,354,639 | |||
Communication services (4.3%) | |||
Altice France SA (France) bank term loan FRN Ser. B12, (BBA LIBOR USD 3 Month + 3.69%), 3.927%, 1/31/26 | 1,646,997 | 1,617,154 | |
Asurion, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 5.25%), 5.459%, 1/30/29 | 1,320,000 | 1,303,500 | |
Asurion, LLC bank term loan FRN Ser. B8, (BBA LIBOR USD 3 Month + 3.25%), 3.459%, 12/23/26 | 2,428,722 | 2,383,936 | |
Asurion, LLC bank term loan FRN Ser. B9, (BBA LIBOR USD 3 Month + 3.25%), 3.459%, 7/31/27 | 497,494 | 487,857 | |
Cogeco Financing 2 LP bank term loan FRN (BBA LIBOR USD 3 Month + 2.50%), 3.00%, 7/28/28 | 2,500,000 | 2,473,650 | |
CSC Holdings, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.25%), 2.441%, 7/17/25 | 2,136,114 | 2,069,018 | |
DIRECTV Financing, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 5.00%), 5.75%, 7/22/27 | 3,421,250 | 3,409,720 | |
Frontier Communications Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.50%, 10/8/27 | 2,289,234 | 2,268,493 | |
Intelsat Jackson Holdings SA bank term loan FRN Ser. B4, (BBA LIBOR USD 3 Month + 4.50%), 8.75%, 1/2/24 | 6,882 | 6,777 |
Floating Rate Income Fund 25 |
SENIOR LOANS (89.9%)*c cont. | Principal amount | Value | |
Communication services cont. | |||
Level 3 Parent, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 1.75%), 1.959%, 3/1/27 | $965,432 | $941,644 | |
SFR Group SA bank term loan FRN Ser. B11, (BBA LIBOR USD 3 Month + 2.75%), 2.75%, 7/31/25 | 1,573,661 | 1,537,074 | |
Zayo Group Holdings, Inc. bank term loan FRN (1 Month US LIBOR + 3.00%), 3.209%, 3/9/27 | 2,895,066 | 2,827,871 | |
21,326,694 | |||
Communications equipment (0.8%) | |||
CommScope, Inc. bank term loan FRN Ser. B2, (BBA LIBOR USD 3 Month + 3.25%), 3.459%, 2/7/26 | 1,514,023 | 1,475,233 | |
Plantronics, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.50%), 2.709%, 7/2/25 | 2,651,966 | 2,571,585 | |
4,046,818 | |||
Computers (5.3%) | |||
Atlas CC Acquisition Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.25%), 5.00%, 4/29/28 | 1,653,662 | 1,644,616 | |
Atlas CC Acquisition Corp. bank term loan FRN Ser. C, (BBA LIBOR USD 3 Month + 4.25%), 5.00%, 4/29/28 | 336,338 | 334,498 | |
Condor Merger Sub, Inc. bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 4.00%), 4.50%, 2/2/29 | 2,500,000 | 2,462,500 | |
ConnectWise, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 4.00%, 9/30/28 | 1,000,000 | 990,540 | |
Ivanti Software, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.75%), 5.75%, 12/1/27 | 1,990,000 | 1,959,832 | |
Liftoff Mobile, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.25%, 9/30/28 | 1,995,000 | 1,976,307 | |
Mitchell International, Inc. bank term loan FRN Ser. B, (1 Month US LIBOR + 3.75%), 4.25%, 10/1/28 | 3,430,000 | 3,380,505 | |
Rackspace Technology Global, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 3.50%, 2/3/28 | 2,793,888 | 2,705,321 | |
RealPage, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 2/18/28 | 3,760,575 | 3,716,163 | |
Sovos Compliance, LLC bank term loan FRN (1 Month US LIBOR + 4.50%), 5.00%, 8/12/28 | 2,413,253 | 2,409,223 | |
Sovos Compliance, LLC bank term loan FRN (1 Month US LIBOR + 4.50%), 4.50%, 8/12/28 U | 416,747 | 416,051 | |
Xperi Holding Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 3.50%), 3.709%, 6/8/28 | 1,950,000 | 1,934,166 | |
ZoomInfo, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 3.00%), 3.209%, 2/2/26 | 2,315,000 | 2,297,638 | |
26,227,360 | |||
Consumer (—%) | |||
Reynolds Consumer Products, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 1.75%), 1.959%, 1/29/27 | 4,957 | 4,880 | |
4,880 | |||
Consumer staples (5.3%) | |||
AG Group Holdings, Inc. bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 4.25%), 4.75%, 12/29/28 | 1,000,000 | 992,080 | |
Ascend Learning, LLC bank term loan FRN (1 Month US LIBOR + 5.75%), 6.25%, 11/18/29 | 1,220,000 | 1,215,425 |
26 Floating Rate Income Fund |
SENIOR LOANS (89.9%)*c cont. | Principal amount | Value | |
Consumer staples cont. | |||
Ascend Learning, LLC bank term loan FRN (1 Month US LIBOR + 3.50%), 4.00%, 11/18/28 | $3,000,000 | $2,958,270 | |
Bengal Debt Merger Sub, LLC bank term loan FRN (CME TERM SOFR 3 Month PLUS CSA + 6.00%), 6.50%, 1/24/30 | 500,000 | 501,565 | |
Brand Industrial Services, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 4.25%), 5.25%, 6/21/24 | 2,381,783 | 2,271,245 | |
Hertz Corp. (The) bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 6/30/28 | 1,674,434 | 1,665,861 | |
Hertz Corp. (The) bank term loan FRN Ser. C, (1 Month US LIBOR + 3.25%), 3.75%, 6/30/28 | 317,152 | 315,528 | |
IRB Holding Corp. bank term loan FRN (CME TERM SOFR 3 Month PLUS CSA + 3.00%), 3.75%, 12/15/27 | 1,222,750 | 1,209,911 | |
IRB Holding Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 3.75%, 2/5/25 | 2,133,226 | 2,112,192 | |
Journey Personal Care Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 4.25%), 5.00%, 2/19/28 | 1,990,000 | 1,890,500 | |
PECF USS Intermediate Holding III Corp. bank term loan FRN Ser. B, (1 Month US LIBOR + 4.25%), 4.75%, 12/17/28 | 3,685,000 | 3,662,558 | |
Univision Communications, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.25%), 4.00%, 3/24/26 | 3,058,160 | 3,033,939 | |
VM Consolidated, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.25%), 3.417%, 3/19/28 | 2,985,000 | 2,964,105 | |
WW International bank term loan FRN (BBA LIBOR USD 3 Month + 3.50%), 4.00%, 4/13/28 | 1,890,000 | 1,679,265 | |
26,472,444 | |||
Electronics (0.7%) | |||
Mirion Technologies US, Inc. bank term loan FRN (1 Month US LIBOR + 2.75%), 3.25%, 10/5/28 | 1,996,000 | 1,969,174 | |
TTM Technologies, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 2.50%), 2.731%, 9/28/24 | 1,309,237 | 1,305,152 | |
3,274,326 | |||
Energy (3.6%) | |||
Apergy Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.50%), 2.75%, 5/9/25 | 674,699 | 668,795 | |
BCP Renaissance Parent, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 3.50%), 3.969%, 10/31/24 | 897,226 | 895,880 | |
BCP Renaissance Parent, LLC bank term loan FRN Ser. B3, (CME TERM SOFR 3 Month PLUS CSA + 3.50%), 4.50%, 10/31/26 | 3,000,000 | 2,981,250 | |
Centurion Pipeline Co., LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.459%, 9/26/25 | 992,327 | 980,916 | |
ChampionX Holding, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 5.00%), 6.00%, 6/3/27 | 698,375 | 703,906 | |
CQP Holdco LP bank term loan FRN (BBA LIBOR USD 3 Month + 3.75%), 4.25%, 6/4/28 | 2,970,075 | 2,951,512 | |
GIP II Blue Holding LP bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.50%), 5.50%, 9/22/28 | 2,493,750 | 2,478,937 | |
Oryx Midstream Services Permian Basin, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 9/29/28 | 2,500,000 | 2,476,350 |
Floating Rate Income Fund 27 |
SENIOR LOANS (89.9%)*c cont. | Principal amount | Value | |
Energy cont. | |||
Prairie ECI Acquiror LP bank term loan FRN (BBA LIBOR USD 3 Month + 4.75%), 4.959%, 3/11/26 | $2,000,000 | $1,935,940 | |
Southwestern Energy Co. bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 2.50%), 3.00%, 6/8/27 | 2,000,000 | 1,988,760 | |
18,062,246 | |||
Entertainment (1.5%) | |||
Allen Media, LLC bank term loan FRN Ser. B, (1 Month US LIBOR + 5.50%), 5.724%, 2/10/27 | 1,494,439 | 1,485,413 | |
AMC Entertainment Holdings, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.125%, 4/22/26 | 3,140,135 | 2,841,225 | |
Constellation Merger Sub, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 2.97%, 9/18/24 | 2,852,229 | 2,723,422 | |
7,050,060 | |||
Financials (5.4%) | |||
Acrisure, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.25%, 2/15/27 | 997,500 | 984,413 | |
Acrisure, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 3.724%, 2/15/27 | 1,895,178 | 1,862,808 | |
Advisor Group Holdings, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.50%), 4.709%, 7/31/26 | 2,719,190 | 2,705,947 | |
Alliant Holdings I, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.459%, 4/27/25 | 2,872,910 | 2,838,435 | |
AmWINS Group, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.25%), 3.00%, 2/19/28 | 1,492,467 | 1,467,513 | |
Apollo Commercial Real Estate Finance, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 4.00%, 3/11/28 | 1,439,125 | 1,424,734 | |
Aretec Group, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 4.25%), 4.459%, 10/1/25 | 2,421,279 | 2,410,698 | |
BCPE Rover Merger Sub, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.25%), 4.459%, 11/28/25 | 2,917,500 | 2,888,325 | |
First Opportunity Fund, Ltd. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 4.00%, 5/27/28 | 1,995,000 | 1,981,294 | |
Forest City Enterprises LP bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 3.709%, 12/7/25 | 1,894,643 | 1,870,619 | |
Greystone Select Financial, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 5.00%), 5.75%, 5/6/28 | 1,486,154 | 1,471,292 | |
HUB International, Ltd. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 3.017%, 4/25/25 | 2,430,241 | 2,398,988 | |
USI, Inc./NY bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.224%, 5/16/24 | 2,675,285 | 2,649,361 | |
26,954,427 | |||
Gaming and lottery (2.8%) | |||
Bally’s Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 8/6/28 | 2,500,000 | 2,481,250 | |
Fertitta Entertainment, LLC/NV bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 0.00%), 4.50%, 1/12/29 | 2,253,538 | 2,241,504 | |
Golden Nugget, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 12.00%), 13.00%, 10/4/23 | 190,000 | 201,400 | |
Raptor Acquisition Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 4.00%), 4.75%, 11/1/26 | 1,500,000 | 1,494,375 |
28 Floating Rate Income Fund |
SENIOR LOANS (89.9%)*c cont. | Principal amount | Value | |
Gaming and lottery cont. | |||
Scientific Games Holdings LP bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 3.50%), 4.00%, 2/4/29 | $3,000,000 | $2,978,760 | |
Scientific Games International, Inc. bank term loan FRN Ser. B5, (BBA LIBOR USD 3 Month + 2.75%), 2.959%, 8/14/24 | 2,790,812 | 2,770,243 | |
Stars Group Holdings BV bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.25%), 2.474%, 7/29/25 | 1,925,731 | 1,904,278 | |
14,071,810 | |||
Health care (9.4%) | |||
Air Methods Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 4.50%, 4/12/24 | 1,388,290 | 1,284,168 | |
Athenahealth, Inc. bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 3.50%), 4.00%, 1/27/29 | 1,710,145 | 1,692,513 | |
Athenahealth, Inc. bank term loan FRN Ser. DD, (CME TERM SOFR 3 Month PLUS CSA + 3.50%), 4.00%, 1/27/29 U | 289,855 | 286,884 | |
Azalea TopCo, Inc. bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 3.75%), 4.50%, 7/25/26 | 500,000 | 496,875 | |
Azalea TopCo, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 3.55%, 7/24/26 | 1,500,000 | 1,473,120 | |
Bausch Health Cos., Inc. bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 5.25%), 5.75%, 1/27/27 | 2,000,000 | 1,976,660 | |
Bausch Health Cos., Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.209%, 5/17/25 | 1,999,449 | 1,978,215 | |
Elanco Animal Health, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 1.75%), 1.856%, 2/4/27 | 1,936,666 | 1,891,890 | |
Endo Luxembourg Finance Co. I Sarl bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 5.00%), 5.75%, 3/11/28 | 1,488,750 | 1,436,301 | |
Enterprise Merger Sub, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.75%), 3.959%, 10/10/25 | 2,902,670 | 2,104,668 | |
Global Medical Response, Inc. bank term loan FRN (1 Month US LIBOR + 4.25%), 5.25%, 10/2/25 | 2,559,150 | 2,543,795 | |
Grifols Worldwide Operations USA, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.00%), 2.209%, 11/15/27 | 2,300,151 | 2,246,305 | |
Icon Luxembourg Sarl bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.25%), 2.75%, 6/16/28 | 1,306,735 | 1,290,871 | |
Indigo Merger Sub, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.25%), 2.75%, 6/16/28 | 325,574 | 321,621 | |
Insulet Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 5/4/28 | 1,990,000 | 1,976,329 | |
Jazz Financing Lux Sarl bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 4.00%, 5/31/28 | 2,835,750 | 2,822,989 | |
Mozart Borrower LP bank term loan FRN (1 Month US LIBOR + 3.25%), 3.75%, 9/30/28 | 3,000,000 | 2,968,590 | |
One Call Corp. bank term loan FRN Ser. B, (1 Month US LIBOR + 5.50%), 6.25%, 4/22/27 | 2,805,900 | 2,782,387 | |
Organon & Co. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.50%, 4/8/28 | 2,892,500 | 2,877,141 | |
Ortho-Clinical Diagnostics, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.00%), 3.278%, 6/30/25 | 2,297,017 | 2,283,143 | |
Pediatric Associates Holding Co., LLC bank term loan FRN Ser. B, (1 Month US LIBOR + 3.25%), 3.75%, 2/8/29 | 1,736,842 | 1,721,645 |
Floating Rate Income Fund 29 |
SENIOR LOANS (89.9%)*c cont. | Principal amount | Value | |
Health care cont. | |||
Pediatric Associates Holding Co., LLC bank term loan FRN Ser. DD, (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 2/8/29 U | $263,158 | $260,855 | |
Phoenix Newco, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.50%), 4.00%, 8/11/28 | 3,000,000 | 2,973,750 | |
Physician Partners, LLC bank term loan FRN (CME TERM SOFR 3 Month PLUS CSA + 0.00%), 4.50%, 2/1/29 | 500,000 | 496,250 | |
Quorum Health Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 7.75%), 8.748%, 4/29/25 | 1,393,135 | 1,274,718 | |
Sotera Health Holdings, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.75%), 3.25%, 12/13/26 | 667,000 | 657,275 | |
Surgery Center Holdings, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.75%), 4.50%, 8/31/26 | 2,416,435 | 2,392,271 | |
46,511,229 | |||
Household furniture and appliances (0.4%) | |||
Osmosis Debt Merger Sub, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 4.00%), 4.50%, 6/17/28 | 1,866,667 | 1,854,477 | |
Osmosis Debt Merger Sub, Inc. bank term loan FRN Ser. DD, (1 Month US LIBOR + 4.00%), 4.50%, 6/17/28 | 133,333 | 132,463 | |
1,986,940 | |||
Leisure (0.2%) | |||
Hayward Industries, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.50%), 3.00%, 5/14/28 | 995,000 | 984,224 | |
984,224 | |||
Lodging/Tourism (1.6%) | |||
Caesars Resort Collection, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 2.75%), 2.959%, 9/28/24 | 3,830,303 | 3,787,212 | |
Carnival Corp. bank term loan FRN (1 Month US LIBOR + 3.25%), 4.00%, 10/8/28 | 2,000,000 | 1,975,000 | |
Hilton Grand Vacations Borrower, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 3.50%, 6/30/28 | 1,995,000 | 1,979,319 | |
7,741,531 | |||
Media (0.4%) | |||
Lions Gate Capital Holdings, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.25%), 2.459%, 3/24/25 | 1,769,175 | 1,736,003 | |
1,736,003 | |||
Publishing (1.2%) | |||
Cengage Learning, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.75%), 5.75%, 6/29/26 | 3,182,025 | 3,174,070 | |
Mav Acquisition Corp. bank term loan FRN (BBA LIBOR USD 3 Month + 4.75%), 5.553%, 7/30/28 | 2,992,500 | 2,962,575 | |
6,136,645 | |||
Retail (2.1%) | |||
Bass Pro Group, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.25%), 4.474%, 2/26/28 | 2,475,047 | 2,460,197 | |
Crocs, Inc. bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 3.50%), 4.20%, 1/27/29 | 2,500,000 | 2,468,750 | |
Park River Holdings, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.25%), 4.00%, 12/28/27 | 992,497 | 975,664 |
30 Floating Rate Income Fund |
SENIOR LOANS (89.9%)*c cont. | Principal amount | Value | |
Retail cont. | |||
Petco Health & Wellness Co., Inc. bank term loan FRN (1 Month US LIBOR + 3.25%), 4.00%, 3/4/28 | $1,985,000 | $1,969,378 | |
PetSmart, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.049%, 1/29/28 | 2,587,000 | 2,572,461 | |
10,446,450 | |||
Semiconductor (0.7%) | |||
Altar Bidco, Inc. bank term loan FRN (SOFR + 5.60%), 6.10%, 11/17/29 | 1,500,000 | 1,498,755 | |
Altar Bidco, Inc. bank term loan FRN (SOFR + 3.35%), 3.85%, 11/17/28 | 2,000,000 | 1,978,000 | |
3,476,755 | |||
Software (5.3%) | |||
AppLovin Corp. bank term loan FRN (1 Month US LIBOR + 3.00%), 3.50%, 10/21/28 | 2,294,250 | 2,271,308 | |
Boxer Parent Co., Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 3.974%, 10/2/25 | 3,394,472 | 3,352,042 | |
Ceridian HCM Holding, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 2.50%), 2.709%, 4/30/25 | 2,019,401 | 1,987,858 | |
Epicor Software Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 4.00%, 7/30/27 | 2,576,928 | 2,549,999 | |
Greeneden US Holdings II, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 4.00%), 4.75%, 12/1/27 | 2,524,500 | 2,519,098 | |
IGT Holding IV AB bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 4.00%, 3/22/28 | 3,027,125 | 3,002,545 | |
NortonLifeLock, Inc. bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 2.00%), 2.50%, 1/28/29 | 2,000,000 | 1,974,160 | |
Polaris Newco, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 4.00%), 4.50%, 6/3/28 | 3,281,775 | 3,259,032 | |
Quasar Intermediate Holdings, Ltd. bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 4.25%), 4.75%, 1/20/29 | 1,000,000 | 984,380 | |
UKG, Inc. bank term loan FRN (1 Month US LIBOR + 5.25%), 5.75%, 5/3/27 | 995,000 | 989,866 | |
UKG, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.75%), 3.959%, 4/5/26 | 1,955,000 | 1,939,204 | |
UKG, Inc. bank term loan FRN (1 Month US LIBOR + 3.25%), 3.75%, 5/3/26 | 1,361,276 | 1,351,066 | |
26,180,558 | |||
Technology services (4.0%) | |||
Ahead DB Holdings, LLC bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.41%, 10/16/27 | 2,286,792 | 2,269,275 | |
Arches Buyer, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 3.25%), 3.75%, 12/6/27 | 4,045,022 | 3,973,754 | |
Ingram Micro, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 4.00%, 4/1/28 | 1,990,000 | 1,977,563 | |
MH Sub I, LLC bank term loan FRN (1 Month US LIBOR + 3.75%), 4.75%, 9/15/24 | 2,094,684 | 2,078,094 | |
Proofpoint, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.758%, 6/9/28 | 3,915,000 | 3,867,550 | |
Star Merger Sub, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.25%), 3.459%, 2/1/26 | 2,857,846 | 2,824,495 |
Floating Rate Income Fund 31 |
SENIOR LOANS (89.9%)*c cont. | Principal amount | Value | |
Technology services cont. | |||
Tempo Acquisition, LLC bank term loan FRN Ser. B, (CME TERM SOFR 3 Month PLUS CSA + 3.00%), 3.50%, 8/31/28 | $2,588,344 | $2,559,225 | |
Tenable, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 2.75%), 3.269%, 7/7/28 | 500,000 | 493,125 | |
20,043,081 | |||
Transportation (2.0%) | |||
Air Canada bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.50%), 4.25%, 7/27/28 | 500,000 | 496,430 | |
American Airlines, Inc. bank term loan FRN (BBA LIBOR USD 3 Month + 4.75%), 5.50%, 4/20/28 | 3,295,000 | 3,349,928 | |
Einstein Merger Sub, Inc. bank term loan FRN (1 Month US LIBOR + 3.75%), 4.25%, 11/4/28 | 1,500,000 | 1,483,875 | |
KKR Apple Bidco, LLC bank term loan FRN (BBA LIBOR USD 3 Month + 5.75%), 6.25%, 7/13/29 | 750,000 | 751,253 | |
Skymiles IP, Ltd. bank term loan FRN (BBA LIBOR USD 3 Month + 3.75%), 4.75%, 9/16/27 | 1,000,000 | 1,044,250 | |
United Airlines, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month + 3.75%), 4.50%, 4/21/28 | 2,838,550 | 2,819,617 | |
9,945,353 | |||
Utilities and power (1.3%) | |||
Buckeye Partners LP bank term loan FRN (BBA LIBOR USD 3 Month + 2.25%), 2.481%, 11/1/26 | 1,965,150 | 1,941,686 | |
Calpine Construction Finance Co. LP bank term loan FRN (BBA LIBOR USD 3 Month + 2.00%), 2.209%, 1/15/25 | 1,548,576 | 1,519,153 | |
Pacific Gas & Electric Co. bank term loan FRN (BBA LIBOR USD 3 Month + 3.00%), 3.50%, 6/23/25 | 1,477,500 | 1,447,581 | |
Vistra Operations Co., LLC bank term loan FRN Ser. B3, (BBA LIBOR USD 3 Month + 1.75%), 1.941%, 12/1/25 | 1,626,917 | 1,596,249 | |
6,504,669 | |||
Total senior loans (cost $450,354,182) | $445,508,946 | ||
CORPORATE BONDS AND NOTES (2.6%)* | Principal amount | Value | |
Beasley Mezzanine Holdings, LLC 144A company guaranty sr. notes 8.625%, 2/1/26 | $750,000 | $727,500 | |
Callon Petroleum Co. 144A company guaranty notes 9.00%, 4/1/25 | 1,000,000 | 1,072,500 | |
DISH DBS Corp. company guaranty sr. unsec. notes 7.75%, 7/1/26 | 660,000 | 668,375 | |
First Quantum Minerals, Ltd. 144A company guaranty sr. unsec. notes 6.875%, 3/1/26 (Canada) | 1,100,000 | 1,130,250 | |
Fresh Market, Inc. (The) 144A company guaranty sr. notes 9.75%, 5/1/23 | 1,000,000 | 1,010,000 | |
General Electric Co. jr. unsec. sub. FRN (BBA LIBOR USD 3 Month + 3.33%), 3.533%, perpetual maturity | 1,000,000 | 945,950 | |
iStar, Inc. sr. unsec. notes 5.50%, 2/15/26 R | 1,200,000 | 1,226,568 | |
MGM Resorts International company guaranty sr. unsec. notes 6.00%, 3/15/23 | 770,000 | 793,293 | |
Millennium Escrow Corp. 144A sr. notes 6.625%, 8/1/26 | 540,000 | 522,450 | |
Northriver Midstream Finance LP 144A sr. notes 5.625%, 2/15/26 (Canada) | 502,000 | 503,255 | |
Pacific Gas and Electric Co. FRN (BBA LIBOR USD 3 Month + 1.48%), 1.691%, 6/16/22 | 1,000,000 | 1,000,167 |
32 Floating Rate Income Fund |
CORPORATE BONDS AND NOTES (2.6%)* cont. | Principal amount | Value | |
Royal Caribbean Cruises, Ltd. 144A company guaranty sr. unsec. notes 9.125%, 6/15/23 | $1,000,000 | $1,045,680 | |
Spanish Broadcasting System, Inc. 144A sr. notes 9.75%, 3/1/26 | 900,000 | 918,000 | |
Staples, Inc. 144A sr. notes 7.50%, 4/15/26 | 766,000 | 757,344 | |
Tenet Healthcare Corp. company guaranty sr. notes 4.625%, 7/15/24 | 371,000 | 372,146 | |
Total corporate bonds and notes (cost $12,613,385) | $12,693,478 | ||
COMMON STOCKS (—%)* | Shares | Value |
Texas Competitive Electric Holdings Co., LLC/TCEH Finance, Inc. (Rights) | 113,884 | $148,049 |
Tribune Media Co. Class 1C | 591,290 | 5,913 |
Total common stocks (cost $142,355) | $153,962 | |
SHORT-TERM INVESTMENTS (10.9%)* | Principal amount/ shares | Value | |
Putnam Short Term Investment Fund Class P 0.12% L | Shares | 52,367,133 | $52,367,133 |
U.S. Treasury Bills 0.036%, 4/21/22 § | $700,000 | 699,822 | |
U.S. Treasury Bills 0.042%, 3/3/22 § | 600,000 | 600,000 | |
U.S. Treasury Cash Management Bills 0.185%, 5/3/22 § | 300,000 | 299,879 | |
Total short-term investments (cost $53,967,001) | $53,966,834 | ||
TOTAL INVESTMENTS | ||
Total investments (cost $517,076,923) | $512,323,220 | |
Key to holding’s abbreviations | |||
bp | Basis Points | ||
FRN | Floating Rate Notes: The rate shown is the current interest rate or yield at the close of the reporting period. Rates may be subject to a cap or floor. For certain securities, the rate may represent a fixed rate currently in place at the close of the reporting period. | ||
LIBOR | London Interbank Offered Rate | ||
SOFR | Secured Overnight Financing Rate | ||
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 March 1, 2021 through February 28, 2022 (the reporting period). Within the following notes to the portfolio, references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures. | |||
* | Percentages indicated are based on net assets of $495,754,881. | ||
§ | This security, in part or in entirety, was pledged and segregated with the custodian for collateral on the initial margin on certain centrally cleared derivative contracts at the close of the reporting period. Collateral at period end totaled $1,506,740 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 10). | ||
c | Senior loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for senior loans are the current interest rates at the close of the reporting period. Senior loans are also subject to mandatory and/or optional prepayment which cannot be predicted. As a result, the remaining maturity may be substantially less than the stated maturity shown (Notes 1 and 7). | ||
L | Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. | ||
R | Real Estate Investment Trust. | ||
U | This security, in part or entirety, represents an unfunded loan commitment (Note 8). |
Floating Rate Income Fund 33 |
At the close of the reporting period, the fund maintained liquid assets totaling $18,300,000 to cover certain derivative contracts. | |||
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. | |||
144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. | |||
The dates shown on debt obligations are the original maturity dates. | |||
CENTRALLY CLEARED CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 2/28/22 | ||||||||
Referenced debt* | Rating*** | Upfront premium received (paid)** | Notional amount | Value | Termi- nation date | Payments received by fund | Unrealized appreciation/ (depreciation) | |
NA HY Series 37 Index | BB−/P | $(1,661,063) | $18,300,000 | $1,031,937 | 12/20/26 | 500 bp — Quarterly | $(468,223) | |
Total | $(1,661,063) | $(468,223) | ||||||
* Payments related to the referenced debt are made upon a credit default event. | ||||||||
** Upfront premium is based on the difference between the original spread on issue and the market spread on day of execution. | ||||||||
*** Ratings for an underlying index represent the average of the ratings of all the securities included in that index. The Moody’s, Standard & Poor’s or Fitch ratings are believed to be the most recent ratings available at February 28, 2022. Securities rated by Fitch are indicated by “/F.” Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications. | ||||||||
34 Floating Rate Income Fund |
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.
Valuation inputs | |||
Investments in securities: | Level 1 | Level 2 | Level 3 |
Common stocks*: | |||
Consumer cyclicals | $— | $5,913 | $— |
Utilities and power | — | 148,049 | — |
Total common stocks | — | 153,962 | — |
Corporate bonds and notes | — | 12,693,478 | — |
Senior loans | — | 445,508,946 | — |
Short-term investments | — | 53,966,834 | — |
Totals by level | $— | $512,323,220 | $— |
Valuation inputs | |||
Other financial instruments: | Level 1 | Level 2 | Level 3 |
Credit default contracts | $— | $1,192,840 | $— |
Totals by level | $— | $1,192,840 | $— |
* Common stock classifications are presented at the sector level, which may differ from the fund’s portfolio presentation. |
The accompanying notes are an integral part of these financial statements.
Floating Rate Income Fund 35 |
Statement of assets and liabilities 2/28/22
ASSETS | |
Investment in securities, at value (Note 1): | |
Unaffiliated issuers (identified cost $464,709,790) | $459,956,087 |
Affiliated issuers (identified cost $52,367,133) (Note 5) | 52,367,133 |
Cash | 880,534 |
Interest and other receivables | 1,564,140 |
Receivable for shares of the fund sold | 868,648 |
Receivable for investments sold | 10,999 |
Prepaid assets | 41,372 |
Total assets | 515,688,913 |
LIABILITIES | |
Payable for investments purchased | 17,255,069 |
Payable for purchases of delayed delivery securities (Note 1) | 288,406 |
Payable for shares of the fund repurchased | 510,452 |
Payable for compensation of Manager (Note 2) | 208,585 |
Payable for custodian fees (Note 2) | 4,990 |
Payable for investor servicing fees (Note 2) | 89,239 |
Payable for Trustee compensation and expenses (Note 2) | 117,029 |
Payable for administrative services (Note 2) | 1,240 |
Payable for distribution fees (Note 2) | 125,473 |
Payable for variation margin on centrally cleared swap contracts (Note 1) | 44,542 |
Distributions payable to shareholders | 95,073 |
Other liabilities | 1,193,934 |
Total liabilities | 19,934,032 |
Net assets | $495,754,881 |
REPRESENTED BY | |
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4) | $566,722,741 |
Total distributable earnings (Note 1) | (70,967,860) |
Total — Representing net assets applicable to capital shares outstanding | $495,754,881 |
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE | |
Net asset value and redemption price per class A share | |
($268,620,619 divided by 32,846,252 shares) | $8.18 |
Offering price per class A share (100/97.75 of $8.18)* | $8.37 |
Net asset value and offering price per class B share ($1,534,221 divided by 187,703 shares)** | $8.17 |
Net asset value and offering price per class C share ($24,485,151 divided by 2,997,123 shares)** | $8.17 |
Net asset value, offering price and redemption price per class R share | |
($553,529 divided by 67,715 shares) | $8.17 |
Net asset value, offering price and redemption price per class R6 share | |
($7,020,665 divided by 857,804 shares) | $8.18 |
Net asset value, offering price and redemption price per class Y share | |
($193,540,696 divided by 23,643,758 shares) | $8.19 |
*On single retail sales of less than $100,000. On sales of $100,000 or more the offering price is reduced.
**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
36 Floating Rate Income Fund |
Statement of operations Year ended 2/28/22
INVESTMENT INCOME | |
Interest (including interest income of $55,009 from investments in affiliated issuers) (Note 5) | $15,902,507 |
Total investment income | 15,902,507 |
EXPENSES | |
Compensation of Manager (Note 2) | 2,367,196 |
Investor servicing fees (Note 2) | 504,528 |
Custodian fees (Note 2) | 16,366 |
Trustee compensation and expenses (Note 2) | 16,832 |
Distribution fees (Note 2) | 892,176 |
Administrative services (Note 2) | 10,975 |
Other | 304,344 |
Total expenses | 4,112,417 |
Expense reduction (Note 2) | (806) |
Net expenses | 4,111,611 |
Net investment income | 11,790,896 |
REALIZED AND UNREALIZED GAIN (LOSS) | |
Net realized gain (loss) on: | |
Securities from unaffiliated issuers (Notes 1 and 3) | (542,444) |
Swap contracts (Note 1) | 483,103 |
Total net realized loss | (59,341) |
Change in net unrealized appreciation (depreciation) on: | |
Securities from unaffiliated issuers | (4,968,067) |
Swap contracts | (468,223) |
Total change in net unrealized depreciation | (5,436,290) |
Net loss on investments | (5,495,631) |
Net increase in net assets resulting from operations | $6,295,265 |
The accompanying notes are an integral part of these financial statements.
Floating Rate Income Fund 37 |
Statement of changes in net assets
INCREASE (DECREASE) IN NET ASSETS | Year ended 2/28/22 | Year ended 2/28/21 |
Operations | ||
Net investment income | $11,790,896 | $9,891,551 |
Net realized loss on investments | (59,341) | (16,265,792) |
Change in net unrealized appreciation (depreciation) | ||
of investments | (5,436,290) | 10,307,844 |
Net increase in net assets resulting from operations | 6,295,265 | 3,933,603 |
Distributions to shareholders (Note 1): | ||
From ordinary income | ||
Net investment income | ||
Class A | (6,783,073) | (5,905,734) |
Class B | (53,732) | (128,248) |
Class C | (493,516) | (867,557) |
Class R | (15,536) | (17,912) |
Class R6 | (200,209) | (161,373) |
Class Y | (4,367,311) | (2,809,682) |
Increase (decrease) from capital share transactions (Note 4) | 146,947,708 | (39,618,322) |
Total increase (decrease) in net assets | 141,329,596 | (45,575,225) |
NET ASSETS | ||
Beginning of year | 354,425,285 | 400,000,510 |
End of year | $495,754,881 | $354,425,285 |
The accompanying notes are an integral part of these financial statements.
38 Floating Rate Income Fund |
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Floating Rate Income Fund 39 |
Financial highlights (For a common share outstanding throughout the period)
INVESTMENT OPERATIONS | LESS DISTRIBUTIONS | RATIOS AND SUPPLEMENTAL DATA | |||||||||||
Ratio of net | |||||||||||||
Net asset | Net realized | Ratio | investment | ||||||||||
value, | and unrealized | Total from | From net | Net asset | Total return | Net assets, | of expenses | income (loss) | Portfolio | ||||
beginning | Net investment | gain (loss) | investment | investment | From | Total | value, end | at net asset | end of period | to average | to average | turnover | |
Period ended | of period | income (loss)a | on investments | operations | income | return of capital | distributions | of period | value (%)b | (in thousands) | net assets (%)c | net assets (%) | (%) |
Class A | |||||||||||||
February 28, 2022 | $8.27 | .22 | (.09) | .13 | (.22) | — | (.22) | $8.18 | 1.63 | $268,621 | 1.00 | 2.70 | 42 |
February 28, 2021 | 8.28 | .24 | (.02) | .22 | (.23) | — | (.23) | 8.27 | 2.87 | 220,335 | 1.04 | 2.96 | 32 |
February 29, 2020 | 8.46 | .36 | (.16) | .20 | (.37) | (.01) | (.38) | 8.28 | 2.31 | 226,047 | 1.03 | 4.28 | 33 |
February 28, 2019 | 8.62 | .36 | (.14) | .22 | (.38) | — | (.38) | 8.46 | 2.60 | 281,109 | 1.03 | 4.22 | 40 |
February 28, 2018 | 8.63 | .33 | (.02) | .31 | (.32) | — | (.32) | 8.62 | 3.71 | 356,807 | 1.02 | 3.79 | 60 |
Class B | |||||||||||||
February 28, 2022 | $8.27 | .20 | (.09) | .11 | (.21) | — | (.21) | $8.17 | 1.30 | $1,534 | 1.20 | 2.45 | 42 |
February 28, 2021 | 8.27 | .22 | —d | .22 | (.22) | — | (.22) | 8.27 | 2.79 | 3,514 | 1.24 | 2.80 | 32 |
February 29, 2020 | 8.46 | .35 | (.18) | .17 | (.35) | (.01) | (.36) | 8.27 | 1.98 | 6,429 | 1.23 | 4.10 | 33 |
February 28, 2019 | 8.61 | .34 | (.13) | .21 | (.36) | — | (.36) | 8.46 | 2.51 | 9,318 | 1.23 | 4.03 | 40 |
February 28, 2018 | 8.63 | .31 | (.02) | .29 | (.31) | — | (.31) | 8.61 | 3.39 | 12,666 | 1.22 | 3.60 | 60 |
Class C | |||||||||||||
February 28, 2022 | $8.27 | .16 | (.10) | .06 | (.16) | — | (.16) | $8.17 | .74 | $24,485 | 1.75 | 1.94 | 42 |
February 28, 2021 | 8.27 | .18 | (.01) | .17 | (.17) | — | (.17) | 8.27 | 2.22 | 34,828 | 1.79 | 2.24 | 32 |
February 29, 2020 | 8.46 | .30 | (.18) | .12 | (.30) | (.01) | (.31) | 8.27 | 1.42 | 51,058 | 1.78 | 3.54 | 33 |
February 28, 2019 | 8.61 | .30 | (.14) | .16 | (.31) | — | (.31) | 8.46 | 1.95 | 71,231 | 1.78 | 3.46 | 40 |
February 28, 2018 | 8.63 | .26 | (.02) | .24 | (.26) | — | (.26) | 8.61 | 2.82 | 90,475 | 1.77 | 3.05 | 60 |
Class R | |||||||||||||
February 28, 2022 | $8.27 | .20 | (.10) | .10 | (.20) | — | (.20) | $8.17 | 1.25 | $554 | 1.25 | 2.44 | 42 |
February 28, 2021 | 8.28 | .22 | (.02) | .20 | (.21) | — | (.21) | 8.27 | 2.61 | 650 | 1.29 | 2.70 | 32 |
February 29, 2020 | 8.46 | .34 | (.16) | .18 | (.35) | (.01) | (.36) | 8.28 | 2.05 | 687 | 1.28 | 3.99 | 33 |
February 28, 2019 | 8.61 | .34 | (.13) | .21 | (.36) | — | (.36) | 8.46 | 2.46 | 713 | 1.28 | 3.97 | 40 |
February 28, 2018 | 8.63 | .30 | (.02) | .28 | (.30) | — | (.30) | 8.61 | 3.33 | 510 | 1.27 | 3.55 | 60 |
Class R6 | |||||||||||||
February 28, 2022 | $8.28 | .25 | (.10) | .15 | (.25) | — | (.25) | $8.18 | 1.83 | $7,021 | .68 | 3.02 | 42 |
February 28, 2021 | 8.29 | .26 | (.01) | .25 | (.26) | — | (.26) | 8.28 | 3.23 | 4,994 | .70 | 3.30 | 32 |
February 29, 2020 | 8.47 | .39 | (.16) | .23 | (.40) | (.01) | (.41) | 8.29 | 2.66 | 5,700 | .70 | 4.61 | 33 |
February 28, 2019 † | 8.62 | .31 | (.14) | .17 | (.32) | — | (.32) | 8.47 | 2.05* | 6,537 | .53* | 3.61* | 40 |
Class Y | |||||||||||||
February 28, 2022 | $8.28 | .25 | (.10) | .15 | (.24) | — | (.24) | $8.19 | 1.88 | $193,541 | .75 | 2.97 | 42 |
February 28, 2021 | 8.29 | .26 | (.02) | .24 | (.25) | — | (.25) | 8.28 | 3.13 | 90,104 | .79 | 3.23 | 32 |
February 29, 2020 | 8.47 | .39 | (.17) | .22 | (.39) | (.01) | (.40) | 8.29 | 2.57 | 110,079 | .78 | 4.57 | 33 |
February 28, 2019 | 8.63 | .39 | (.15) | .24 | (.40) | — | (.40) | 8.47 | 2.86 | 181,733 | .78 | 4.51 | 40 |
February 28, 2018 | 8.64 | .35 | (.01) | .34 | (.35) | — | (.35) | 8.63 | 3.97 | 303,597 | .77 | 4.06 | 60 |
* Not annualized.
† For the period May 22, 2018 (commencement of operations) to February 28, 2019.
a Per share net investment income (loss) has been determined on the basis of the weighted average number of shares outstanding during the period.
b Total return assumes dividend reinvestment and does not reflect the effect of sales charges.
c Includes amounts paid through expense offset and/or brokerage service arrangements, if any (Note 2). Also excludes acquired fund fees and expenses, if any.
d Amount represents less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
40 Floating Rate Income Fund | Floating Rate Income Fund 41 |
Notes to financial statements 2/28/22
Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission, 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. Unless otherwise noted, the “reporting period” represents the period from March 1, 2021 through February 28, 2022.
Putnam Floating Rate Income Fund (the fund) is a diversified series of Putnam Funds Trust (the Trust), a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The goal of the fund is to seek high current income. Preservation of capital is a secondary goal. The fund invests mainly in corporate loans and debt securities that have floating rates of interest and other corporate debt securities. Under normal circumstances, the fund will invest at least 80% of its net assets in income-producing floating rate loans and other floating rate debt securities. This policy may be changed only after 60 days’ notice to shareholders. The fund invests mainly in obligations of U.S. issuers that are below- investment-grade in quality (having credit characteristics similar to “junk bonds”). Putnam Management may consider, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy or sell investments. Putnam Management may also use derivatives, such as futures, options, warrants and swap contracts, for both hedging and non-hedging purposes.
The fund offers class A, class B, class C, class R, class R6 and class Y shares. Purchases of class B shares are closed to new and existing investors except by exchange from class B shares of another Putnam fund or through dividend and/or capital gains reinvestment. Class A shares are sold with a maximum front-end sales charge of 2.25%. Class A shares generally are not subject to a contingent deferred sales charge, and class R, class R6 and class Y shares are not subject to a contingent deferred sales charge. Class B shares, which convert to class A shares after approximately eight years, are not subject to a front-end sales charge and are subject to a contingent deferred sales charge if those shares are redeemed within two years of purchase. Class C shares are subject to a one-year 1.00% contingent deferred sales charge and generally convert to class A shares after approximately eight years. Class R shares, which are not available to all investors, are sold at net asset value. The expenses for class A, class B, class C and class R shares may differ based on the distribution fee of each class, which is identified in Note 2. Class R6 and class Y shares, which are sold at net asset value, are generally subject to the same expenses as class A, class B, class C and class R shares, but do not bear a distribution fee, and in the case of class R6 shares, bear a lower investor servicing fee, which is identified in Note 2. Class R6 and class Y shares are not available to all investors.
In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.
The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.
Under the fund’s Amended and Restated Agreement and Declaration of Trust, any claims asserted against or on behalf of the Putnam Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
Note 1: Significant accounting policies
The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.
Investment income, realized and unrealized gains and losses and expenses of the fund are borne pro-rata based on the relative net assets of each class to the total net assets of the fund, except that each class bears expenses
42 Floating Rate Income Fund |
unique to that class (including the distribution fees applicable to such classes). Each class votes as a class only with respect to its own distribution plan or other matters on which a class vote is required by law or determined by the Trustees. If the fund were liquidated, shares of each class would receive their pro-rata share of the net assets of the fund. In addition, the Trustees declare separate dividends on each class of shares.
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.
Senior loans are valued at fair value on the basis of valuations provided by an independent pricing service, approved by the Trustees. Such services use information with respect to transactions in senior loans, quotations from senior loan dealers, market transactions in comparable securities and various relationships between securities in determining value. These securities will generally be categorized as Level 2.
Market quotations are not considered to be readily available for certain debt obligations (including short-term investments with remaining maturities of 60 days or less); 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.
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, 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 at a given point in time and does not reflect an actual market price, which may be different by a material amount.
Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.
Interest income, net of any applicable withholding taxes, if any, and including amortization and accretion of premiums and discounts on debt securities, is recorded on the accrual basis.
The fund may have earned certain fees in connection with its senior loan purchasing activities. These fees, if any, are treated as market discount and are amortized into income in the Statement of operations.
Securities purchased or sold on a delayed delivery basis may be settled at a future date beyond customary settlement time; interest income is accrued based on the terms of the securities. Losses may arise due to changes in the fair value of the underlying securities or if the counterparty does not perform under the contract.
Credit default contracts The fund entered into OTC and/or centrally cleared credit default contracts to hedge credit risk, for gaining liquid exposure to individual names and to hedge market risk.
In OTC and centrally cleared credit default contracts, the protection buyer typically makes a periodic stream of payments to a counterparty, the protection seller, in exchange for the right to receive a contingent payment upon the occurrence of a credit event on the reference obligation or all other equally ranked obligations of the
Floating Rate Income Fund 43 |
reference entity. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring and obligation acceleration. For OTC credit default contracts, an upfront payment received by the fund is recorded as a liability on the fund’s books. An upfront payment made by the fund is recorded as an asset on the fund’s books. Centrally cleared credit default contracts provide the same rights to the protection buyer and seller except the payments between parties, including upfront premiums, are settled through a central clearing agent through variation margin payments. Upfront and periodic payments received or paid by the fund for OTC and centrally cleared credit default contracts are recorded as realized gains or losses at the reset date or close of the contract. The OTC and centrally cleared credit default contracts are marked to market daily based upon quotations from an independent pricing service or market makers. Any change in value of OTC credit default contracts is recorded as an unrealized gain or loss. Daily fluctuations in the value of centrally cleared credit default contracts are recorded in variation margin on the Statement of assets and liabilities and recorded as unrealized gain or loss. Upon the occurrence of a credit event, the difference between the par value and fair value of the reference obligation, net of any proportional amount of the upfront payment, is recorded as a realized gain or loss.
In addition to bearing the risk that the credit event will occur, the fund could be exposed to market risk due to unfavorable changes in interest rates or in the price of the underlying security or index or the possibility that the fund may be unable to close out its position at the same time or at the same price as if it had purchased the underlying reference obligations. In certain circumstances, the fund may enter into offsetting OTC and centrally cleared credit default contracts which would mitigate its risk of loss. Risks of loss may exceed amounts recognized on the Statement of assets and liabilities. The fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk may be mitigated for OTC credit default contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared credit default contracts through the daily exchange of variation margin. Counterparty risk is further mitigated with respect to centrally cleared credit default swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Where the fund is a seller of protection, the maximum potential amount of future payments the fund may be required to make is equal to the notional amount.
OTC and centrally cleared credit default contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.
Interfund lending The fund, along with other Putnam funds, may participate in an interfund lending program pursuant to an exemptive order issued by the SEC. This program allows the fund to borrow from or lend to other Putnam funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. Interest earned or paid on the interfund lending transaction will be based on the average of certain current market rates. During the reporting period, the fund did not utilize the program.
Lines of credit The fund participates, along with other Putnam funds, in a $317.5 million unsecured committed line of credit and a $235.5 million unsecured uncommitted line of credit, both provided by State Street. Borrowings may be made for temporary or emergency purposes, including the funding of shareholder redemption requests and trade settlements. Interest is charged to the fund based on the fund’s borrowing at a rate equal to 1.25% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the committed line of credit and 1.30% plus the higher of (1) the Federal Funds rate and (2) the Overnight Bank Funding Rate for the uncommitted line of credit. A closing fee equal to 0.04% of the committed line of credit and 0.04% of the uncommitted line of credit has been paid by the participating funds. In addition, a commitment fee of 0.21% per annum on any unutilized portion of the committed line of credit is allocated to the participating funds based on their relative net assets and paid quarterly. During the reporting period, the fund had no borrowings against these arrangements.
Federal taxes It is the policy of the fund to distribute all of its taxable income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.
The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.
44 Floating Rate Income Fund |
Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred for an unlimited period and the carry forwards will retain their character as either short-term or long-term capital losses. At February 28, 2022, the fund had the following capital loss carryovers available, to the extent allowed by the Code, to offset future net capital gain, if any:
Loss carryover | ||
Short-term | Long-term | Total |
$9,134,048 | $56,929,183 | $66,063,231 |
Pursuant to federal income tax regulations applicable to regulated investment companies, the Fund has elected to defer $54,382 to its fiscal year ending February 28, 2023 late year ordinary losses ((i) ordinary losses recognized between January 1, 2022 and February 28, 2022, and (ii) specified ordinary and currency losses recognized between November 1 and February 28, 2022).
Distributions to shareholders The fund declares a distribution each day based upon the projected net investment income, for a specified period, calculated as if earned pro rata throughout the period on a daily basis. Such distributions are recorded daily and paid monthly. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences include temporary and/or permanent differences from income on swap contracts. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations. At the close of the reporting period, the fund reclassified $454,083 to decrease distributions in excess of net investment income and $454,083 to increase accumulated net realized loss.
Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The tax basis components of distributable earnings and the federal tax cost as of the close of the reporting period were as follows:
Unrealized appreciation | $2,541,604 |
Unrealized depreciation | (7,296,775) |
Net unrealized depreciation | (4,755,171) |
Capital loss carryforward | (66,063,231) |
Late year ordinary loss deferral | (54,382) |
Cost for federal income tax purposes | $518,271,231�� |
Expenses of the Trust Expenses directly charged or attributable to any fund will be paid from the assets of that fund. Generally, expenses of the Trust will be allocated among and charged to the assets of each fund on a basis that the Trustees deem fair and equitable, which may be based on the relative assets of each fund or the nature of the services performed and relative applicability to each fund.
Note 2: Management fee, administrative services and other transactions
The fund pays Putnam Management a management fee (based on the fund’s average net assets and computed and paid monthly) at annual rates that may vary based on the average of the aggregate net assets of all open-end mutual funds sponsored by Putnam Management (excluding net assets of funds that are invested in, or that are invested in by, other Putnam funds to the extent necessary to avoid “double counting” of those assets). Such annual rates may vary as follows:
0.720% | of the first $5 billion, | 0.520% | of the next $50 billion, | |
0.670% | of the next $5 billion, | 0.500% | of the next $50 billion, | |
0.620% | of the next $10 billion, | 0.490% | of the next $100 billion and | |
0.570% | of the next $10 billion, | 0.485% | of any excess thereafter. |
For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.552% of the fund’s average net assets.
Floating Rate Income Fund 45 |
Putnam Management has contractually agreed, through June 30, 2022, to waive fees and/or reimburse the fund’s expenses to the extent necessary to limit the cumulative expenses of the fund, exclusive of brokerage, interest, taxes, investment-related expenses, extraordinary expenses, acquired fund fees and expenses and payments under the fund’s investor servicing contract, investment management contract and distribution plans, on a fiscal year-to-date basis to an annual rate of 0.20% of the fund’s average net assets over such fiscal year-to-date period. During the reporting period, the fund’s expenses were not reduced as a result of this limit.
Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.40% of the average net assets of the portion of the fund managed by PIL.
The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees.
Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.
Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. received fees for investor servicing for class A, class B, class C, class R and class Y shares that included (1) a per account fee for each direct and underlying non-defined contribution account (retail account) of the fund; (2) a specified rate of the fund’s assets attributable to defined contribution plan accounts; and (3) a specified rate based on the average net assets in retail accounts. Putnam Investor Services, Inc. has agreed that the aggregate investor servicing fees for each fund’s retail and defined contribution accounts for these share classes will not exceed an annual rate of 0.25% of the fund’s average assets attributable to such accounts.
Class R6 shares paid a monthly fee based on the average net assets of class R6 shares at an annual rate of 0.05%.
During the reporting period, the expenses for each class of shares related to investor servicing fees were as follows:
Class A | $296,753 | Class R6 | 3,288 | |
Class B | 2,661 | Class Y | 170,762 | |
Class C | 30,310 | Total | $504,528 | |
Class R | 754 |
The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. For the reporting period, the fund’s expenses were reduced by $806 under the expense offset arrangements.
Each Independent Trustee of the fund receives an annual Trustee fee, of which $319, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.
The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable on or after July 1, 1995. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.
The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.
46 Floating Rate Income Fund |
The fund has adopted distribution plans (the Plans) with respect to the following share classes pursuant to Rule 12b–1 under the Investment Company Act of 1940. The purpose of the Plans is to compensate Putnam Retail Management Limited Partnership, an indirect wholly-owned subsidiary of Putnam Investments, LLC, for services provided and expenses incurred in distributing shares of the fund. The Plans provide payments by the fund to Putnam Retail Management Limited Partnership at an annual rate of up to the following amounts (Maximum %) of the average net assets attributable to each class. The Trustees have approved payment by the fund at the following annual rate (Approved %) of the average net assets attributable to each class. During the reporting period, the class-specific expenses related to distribution fees were as follows:
Maximum % | Approved % | Amount | |
Class A | 0.35% | 0.25% | $625,081 |
Class B | 1.00% | 0.45% | 9,928 |
Class C | 1.00% | 1.00% | 253,998 |
Class R | 1.00% | 0.50% | 3,169 |
Total | $892,176 |
For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $14,081 from the sale of class A shares and received no monies and $830 in contingent deferred sales charges from redemptions of class B and class C shares, respectively.
A deferred sales charge of up to 1.00% is assessed on certain redemptions of class A shares. For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received $68 on class A redemptions.
Note 3: Purchases and sales of securities
During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments, were as follows:
Cost of purchases | Proceeds from sales | |
Investments in securities (Long-term) | $292,256,233 | $167,448,823 |
U.S. government securities (Long-term) | — | — |
Total | $292,256,233 | $167,448,823 |
The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales of long-term securities from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.
Note 4: Capital shares
At the close of the reporting period, there were an unlimited number of shares of beneficial interest authorized. Transactions, including, if applicable, direct exchanges pursuant to share conversions, in capital shares were as follows:
YEAR ENDED 2/28/22 | YEAR ENDED 2/28/21 | |||
Class A | Shares | Amount | Shares | Amount |
Shares sold | 13,969,371 | $115,380,805 | 9,337,935 | $75,329,741 |
Shares issued in connection with | ||||
reinvestment of distributions | 768,995 | 6,344,694 | 679,067 | 5,390,509 |
14,738,366 | 121,725,499 | 10,017,002 | 80,720,250 | |
Shares repurchased | (8,520,684) | (70,365,497) | (10,691,191) | (83,447,981) |
Net increase (decrease) | 6,217,682 | $51,360,002 | (674,189) | $(2,727,731) |
Floating Rate Income Fund 47 |
YEAR ENDED 2/28/22 | YEAR ENDED 2/28/21 | |||
Class B | Shares | Amount | Shares | Amount |
Shares sold | 38,088 | $314,407 | 7,803 | $63,061 |
Shares issued in connection with | ||||
reinvestment of distributions | 6,381 | 52,643 | 15,598 | 123,016 |
44,469 | 367,050 | 23,401 | 186,077 | |
Shares repurchased | (281,650) | (2,326,026) | (375,556) | (2,977,506) |
Net decrease | (237,181) | $(1,958,976) | (352,155) | $(2,791,429) |
YEAR ENDED 2/28/22 | YEAR ENDED 2/28/21 | |||
Class C | Shares | Amount | Shares | Amount |
Shares sold | 917,438 | $7,569,422 | 438,155 | $3,491,006 |
Shares issued in connection with | ||||
reinvestment of distributions | 55,933 | 460,981 | 99,855 | 788,100 |
973,371 | 8,030,403 | 538,010 | 4,279,106 | |
Shares repurchased | (2,189,038) | (18,071,328) | (2,497,443) | (19,346,308) |
Net decrease | (1,215,667) | $(10,040,925) | (1,959,433) | $(15,067,202) |
YEAR ENDED 2/28/22 | YEAR ENDED 2/28/21 | |||
Class R | Shares | Amount | Shares | Amount |
Shares sold | 6,095 | $50,312 | 3,158 | $25,053 |
Shares issued in connection with | ||||
reinvestment of distributions | 1,883 | 15,533 | 2,082 | 16,513 |
7,978 | 65,845 | 5,240 | 41,566 | |
Shares repurchased | (18,882) | (155,916) | (9,690) | (79,294) |
Net decrease | (10,904) | $(90,071) | (4,450) | $(37,728) |
YEAR ENDED 2/28/22 | YEAR ENDED 2/28/21 | |||
Class R6 | Shares | Amount | Shares | Amount |
Shares sold | 590,627 | $4,882,418 | 322,422 | $2,589,880 |
Shares issued in connection with | ||||
reinvestment of distributions | 24,238 | 200,176 | 20,414 | 161,373 |
614,865 | 5,082,594 | 342,836 | 2,751,253 | |
Shares repurchased | (360,157) | (2,966,146) | (427,637) | (3,373,119) |
Net increase (decrease) | 254,708 | $2,116,448 | (84,801) | $(621,866) |
YEAR ENDED 2/28/22 | YEAR ENDED 2/28/21 | |||
Class Y | Shares | Amount | Shares | Amount |
Shares sold | 17,296,599 | $143,036,859 | 3,771,257 | $30,074,128 |
Shares issued in connection with | ||||
reinvestment of distributions | 462,325 | 3,817,355 | 306,193 | 2,424,233 |
17,758,924 | 146,854,214 | 4,077,450 | 32,498,361 | |
Shares repurchased | (4,994,908) | (41,292,984) | (6,481,769) | (50,870,727) |
Net increase (decrease) | 12,764,016 | $105,561,230 | (2,404,319) | $(18,372,366) |
48 Floating Rate Income Fund |
Note 5: Affiliated transactions
Transactions during the reporting period with any company which is under common ownership or control were as follows:
Shares | |||||
outstanding | |||||
and fair | |||||
Fair value as | Purchase | Sale | Investment | value as | |
Name of affiliate | of 2/28/21 | cost | proceeds | income | of 2/28/22 |
Short-term investments | |||||
Putnam Short Term | |||||
Investment Fund* | $29,535,600 | $224,515,471 | $201,683,938 | $55,009 | $52,367,133 |
Total Short-term | |||||
investments | $29,535,600 | $224,515,471 | $201,683,938 | $55,009 | $52,367,133 |
* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.
Note 6: Market, credit and other risks
In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. Investments in foreign securities involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations.
On July 27, 2017, the United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, announced its intention to cease compelling banks to provide the quotations needed to sustain LIBOR after 2021. ICE Benchmark Administration, the administrator of LIBOR, ceased publication of most LIBOR settings on a representative basis at the end of 2021 and is expected to cease publication of a majority of U.S. dollar LIBOR settings on a representative basis after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. LIBOR has historically been a common benchmark interest rate index used to make adjustments to variable-rate loans. It is used throughout global banking and financial industries to determine interest rates for a variety of financial instruments and borrowing arrangements. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies. Various financial industry groups have been planning for the transition away from LIBOR, but there are obstacles to converting certain longer-term securities and transactions to new reference rates. Markets are developing slowly and questions around liquidity in these rates and how to appropriately adjust these rates to mitigate any economic value transfer at the time of transition remain a significant concern. Neither the effect of the transition process nor its ultimate success can yet be known. The transition process might lead to increased volatility and illiquidity in markets that rely on LIBOR to determine interest rates. It could also lead to a reduction in the value of some LIBOR-based investments and reduce the effectiveness of related transactions, such as hedges. While some LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate-setting methodology, not all may have such provisions and there may be significant uncertainty regarding the effectiveness of any such alternative methodologies. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur at any time.
Beginning in January 2020, global financial markets have experienced, and may continue to experience, significant volatility resulting from the spread of a virus known as Covid–19. The outbreak of Covid–19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand, and general market uncertainty. The effects of Covid–19 have adversely affected, and may continue to adversely affect, the global economy, the economies of certain nations, and individual issuers, all of which may negatively impact the fund’s performance.
Note 7: Senior loan commitments
Senior loans are purchased or sold on a when-issued or delayed delivery basis and may be settled a month or more after the trade date, which from time to time can delay the actual investment of available cash balances; interest income is accrued based on the terms of the securities. Senior loans can be acquired through an agent, by assignment from another holder of the loan, or as a participation interest in another holder’s portion of the
Floating Rate Income Fund 49 |
loan. When the fund invests in a loan or participation, the fund is subject to the risk that an intermediate participant between the fund and the borrower will fail to meet its obligations to the fund, in addition to the risk that the borrower under the loan may default on its obligations.
Note 8: Unfunded loan commitments
As of the close of the reporting period, the fund had unfunded loan commitments of $1,353,580, which could be extended at the option of the borrower, pursuant to the following loan agreements with the following borrowers:
Borrower | Unfunded Commitments |
ARC Falcon I, Inc. | $191,083 |
Athenahealth, Inc. | 289,855 |
Pediatric Associates Holding Co., LLC | 263,158 |
Pro Mach Group, Inc. | 192,737 |
Sovos Compliance, LLC | 416,747 |
Totals | $1,353,580 |
Note 9: Summary of derivative activity
The volume of activity for the reporting period for any derivative type that was held during the period is listed below and was based on an average of the holdings at the end of each fiscal quarter:
Centrally cleared credit default contracts (notional) | $13,800,000 |
The following is a summary of the fair value of derivative instruments as of the close of the reporting period:
Fair value of derivative instruments as of the close of the reporting period | ||||
ASSET DERIVATIVES | LIABILITY DERIVATIVES | |||
Derivatives not | ||||
accounted for as | Statement of | Statement of | ||
hedging instruments | assets and | assets and | ||
under ASC 815 | liabilities location | Fair value | liabilities location | Fair value |
Receivables, Net | ||||
assets — Unrealized | Payables, Net assets — | |||
Credit contracts | appreciation | $1,192,840* | Unrealized depreciation | $— |
Total | $1,192,840 | $— |
* Includes cumulative appreciation of centrally cleared swaps as reported in the fund’s portfolio. Only current day’s variation margin is reported within the Statement of assets and liabilities.
The following is a summary of realized and change in unrealized gains or losses of derivative instruments in the Statement of operations for the reporting period (Note 1):
Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments | ||
Derivatives not accounted for as | ||
hedging instruments under ASC 815 | Swaps | Total |
Credit contracts | $483,103 | $483,103 |
Total | $483,103 | $483,103 |
Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss) | ||
on investments | ||
Derivatives not accounted for as | ||
hedging instruments under ASC 815 | Swaps | Total |
Credit contracts | $(468,223) | $(468,223) |
Total | $(468,223) | $(468,223) |
50 Floating Rate Income Fund |
Note 10: Offsetting of financial and derivative assets and liabilities
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 or borrowing transactions associated with securities sold short, if any, see Note 1. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.
Barclays Capital, Inc. | ||
(clearing broker) | Total | |
Assets: | ||
Centrally cleared credit default contracts§ | $— | $— |
Total Assets | $— | $— |
Liabilities: | ||
Centrally cleared credit default contracts§ | 44,542 | 44,542 |
Total Liabilities | $44,542 | $44,542 |
Total Financial and Derivative Net Assets | $(44,542) | $(44,542) |
Total collateral received (pledged)†## | $— | |
Net amount | $(44,542) | |
Controlled collateral received (including TBA | ||
commitments)** | $— | $— |
Uncontrolled collateral received | $— | $— |
Collateral (pledged) (including TBA commitments)** | $— | $— |
**Included with Investments in securities on the Statement of assets and liabilities.
† Additional collateral may be required from certain brokers based on individual agreements.
§ Includes current day’s variation margin only as reported on the Statement of assets and liabilities, which is not collateralized. Cumulative appreciation/(depreciation) for centrally cleared swap contracts is represented in the tables listed after the fund’s portfolio. Collateral pledged for initial margin on centrally cleared swap contracts, which is not included in the table above, amounted to $1,506,740.
Note 11: New accounting pronouncements
In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020–04, Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in ASU 2020–04 provide optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of LIBOR and other interbank-offered based reference rates as of the end of 2021. The discontinuation of LIBOR was subsequently extended to June 30, 2023.ASU 2020–04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management expects that the adoption of the guidance will not have a material impact on the fund’s financial statements.
Floating Rate Income Fund 51 |
Federal tax information (Unaudited)
The Form 1099 that will be mailed to you in January 2023 will show the tax status of all distributions paid to your account in calendar 2022.
52 Floating Rate Income Fund |
Floating Rate Income Fund 53 |
* Mr. Reynolds is an “interested person” (as defined in the Investment Company Act of 1940) of the fund and Putnam Investments. He is President and Chief Executive Officer of Putnam Investments, as well as the President of your fund and each of the other Putnam funds.
The address of each Trustee is 100 Federal Street, Boston, MA 02110.
As of February 28, 2022, there were 100 Putnam funds. All Trustees serve as Trustees of all Putnam funds.
Each Trustee serves for an indefinite term, until his or her resignation, retirement at age 75, removal, or death.
54 Floating Rate Income Fund |
Officers
In addition to Robert L. Reynolds, the other officers of the fund are shown below:
James F. Clark (Born 1974) | Alan G. McCormack (Born 1964) |
Vice President and Chief Compliance Officer | Vice President and Derivatives Risk Manager |
Since 2016 | Since 2022 |
Chief Compliance Officer and Chief Risk Officer, | Head of Quantitative Equities and Risk, |
Putnam Investments, and Chief Compliance Officer, | Putnam Investments |
Putnam Management | |
Denere P. Poulack (Born 1968) | |
Nancy E. Florek (Born 1957) | Assistant Vice President, Assistant Clerk, |
Vice President, Director of Proxy Voting and Corporate | and Assistant Treasurer |
Governance, Assistant Clerk, and Assistant Treasurer | Since 2004 |
Since 2000 | |
Janet C. Smith (Born 1965) | |
Michael J. Higgins (Born 1976) | Vice President, Principal Financial Officer, Principal |
Vice President, Treasurer, and Clerk | Accounting Officer, and Assistant Treasurer |
Since 2010 | Since 2007 |
Head of Fund Administration Services, | |
Jonathan S. Horwitz (Born 1955) | Putnam Investments and Putnam Management |
Executive Vice President, Principal Executive Officer, | |
and Compliance Liaison | Stephen J. Tate (Born 1974) |
Since 2004 | Vice President and Chief Legal Officer |
Since 2021 | |
Richard T. Kircher (Born 1962) | General Counsel, Putnam Investments, |
Vice President and BSA Compliance Officer | Putnam Management, and Putnam Retail Management |
Since 2019 | |
Assistant Director, Operational Compliance, Putnam | Mark C. Trenchard (Born 1962) |
Investments and Putnam Retail Management | Vice President |
Since 2002 | |
Martin Lemaire (Born 1984) | Director of Operational Compliance, Putnam |
Vice President and Derivatives Risk Manager | Investments and Putnam Retail Management |
Since 2022 | |
Risk Manager and Risk Analyst, Putnam Investments | |
Susan G. Malloy (Born 1957) | |
Vice President and Assistant Treasurer | |
Since 2007 | |
Head of Accounting and Middle Office Services, | |
Putnam Investments and Putnam Management |
The principal occupations of the officers for the past five years have been with the employers as shown above, although in some cases they have held different positions with such employers. The address of each officer is 100 Federal Street, Boston, MA 02110.
Floating Rate Income Fund 55 |
Services for shareholders
Investor services
Systematic investment plan Tell us how much you wish to invest regularly — weekly, semimonthly, or monthly — and the amount you choose will be transferred automatically from your checking or savings account. There’s no additional fee for this service, and you can suspend it at any time. This plan may be a great way to save for college expenses or to plan for your retirement.
Please note that regular investing does not guarantee a profit or protect against loss in a declining market. Before arranging a systematic investment plan, consider your financial ability to continue making purchases in periods when prices are low.
Systematic exchange You can make regular transfers from one Putnam fund to another Putnam fund. There are no additional fees for this service, and you can cancel or change your options at any time.
Dividends PLUS You can choose to have the dividend distributions from one of your Putnam funds automatically reinvested in another Putnam fund at no additional charge.
Free exchange privilege You can exchange money between Putnam funds free of charge, as long as they are the same class of shares. A signature guarantee is required if you are exchanging more than $500,000. The fund reserves the right to revise or terminate the exchange privilege.
Reinstatement privilege If you’ve sold Putnam shares or received a check for a dividend or capital gain, you may reinvest the proceeds with Putnam within 90 days of the transaction and they will be reinvested at the fund’s current net asset value — with no sales charge. However, reinstatement of class B shares may have special tax consequences. Ask your financial or tax representative for details.
Check-writing service You have ready access to many Putnam accounts. It’s as simple as writing a check, and there are no special fees or service charges. For more information about the check-writing service, call Putnam or visit our website.
Dollar cost averaging When you’re investing for long-term goals, it’s time, not timing, that counts. Investing on a systematic basis is a better strategy than trying to figure out when the markets will go up or down. This means investing the same amount of money regularly over a long period. This method of investing is called dollar cost averaging. When a fund’s share price declines, your investment dollars buy more shares at lower prices. When it increases, they buy fewer shares. Over time, you will pay a lower average price per share.
For more information
Visit the Individual Investors section at putnam.com A secure section of our website contains complete information on your account, including balances and transactions, updated daily. You may also conduct transactions, such as exchanges, additional investments, and address changes. Log on today to get your password.
Call us toll free at 1-800-225-1581 Ask a helpful Putnam representative or your financial advisor for details about any of these or other services, or see your prospectus.
56 Floating Rate Income Fund |
Fund information
Founded over 80 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage funds across income, value, blend, growth, sustainable, asset allocation, absolute return, and global sector categories.
Investment Manager | Trustees | Richard T. Kircher |
Putnam Investment | Kenneth R. Leibler, Chair | Vice President and BSA |
Management, LLC | Liaquat Ahamed | Compliance Officer |
100 Federal Street | Ravi Akhoury | |
Boston, MA 02110 | Barbara M. Baumann | Martin Lemaire |
Katinka Domotorffy | Vice President and | |
Investment Sub-Advisor | Catharine Bond Hill | Derivatives Risk Manager |
Putnam Investments Limited | Paul L. Joskow | |
16 St James’s Street | George Putnam, III | Susan G. Malloy |
London, England SW1A 1ER | Robert L. Reynolds | Vice President and |
Manoj P. Singh | Assistant Treasurer | |
Marketing Services | Mona K. Sutphen | |
Putnam Retail Management | Alan G. McCormack | |
Limited Partnership | Officers | Vice President and |
100 Federal Street | Robert L. Reynolds | Derivatives Risk Manager |
Boston, MA 02110 | President | |
Denere P. Poulack | ||
Custodian | James F. Clark | Assistant Vice President, |
State Street Bank | Vice President, Chief Compliance | Assistant Clerk, and |
and Trust Company | Officer, and Chief Risk Officer | Assistant Treasurer |
Legal Counsel | Nancy E. Florek | Janet C. Smith |
Ropes & Gray LLP | Vice President, Director of | Vice President, |
Proxy Voting and Corporate | Principal Financial Officer, | |
Independent Registered | Governance, Assistant Clerk, | Principal Accounting Officer, |
Public Accounting Firm | and Assistant Treasurer | and Assistant Treasurer |
PricewaterhouseCoopers LLP | ||
Michael J. Higgins | Stephen J. Tate | |
Vice President, Treasurer, | Vice President and | |
and Clerk | Chief Legal Officer | |
Jonathan S. Horwitz | Mark C. Trenchard | |
Executive Vice President, | Vice President | |
Principal Executive Officer, | ||
and Compliance Liaison |
This report is for the information of shareholders of Putnam Floating Rate Income Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of Putnam’s Quarterly Performance Summary, and Putnam’s Quarterly Ranking Summary. For more recent performance, please visit putnam.com. Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund, which are described in its prospectus. For this and other information or to request a prospectus or summary prospectus, call 1-800-225-1581 toll free. Please read the prospectus carefully before investing. The fund’s Statement of Additional Information contains additional information about the fund’s Trustees and is available without charge upon request by calling 1-800-225-1581.
Item 2. Code of Ethics: |
(a) The fund’s principal executive, financial and accounting officers are employees of Putnam Investment Management, LLC, the Fund’s investment manager. As such they are subject to a comprehensive Code of Ethics adopted and administered by Putnam Investments which is designed to protect the interests of the firm and its clients. The Fund has adopted a Code of Ethics which incorporates the Code of Ethics of Putnam Investments with respect to all of its officers and Trustees who are employees of Putnam Investment Management, LLC. For this reason, the Fund has not adopted a separate code of ethics governing its principal executive, financial and accounting officers. |
Item 3. Audit Committee Financial Expert: |
The Funds’ Audit, Compliance and Risk Committee is comprised solely of Trustees who are “independent” (as such term has been defined by the Securities and Exchange Commission (“SEC”) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the “Regulations”)). The Trustees believe that each member of the Audit, Compliance and Risk Committee also possesses a combination of knowledge and experience with respect to financial accounting matters, as well as other attributes, that qualifies him or her for service on the Committee. In addition, the Trustees have determined that each of Dr. Hill, Dr. Joskow, and Mr. Singh qualifies as an “audit committee financial expert” (as such term has been defined by the Regulations) based on their review of his or her pertinent experience and education; in the case of Dr. Joskow, including his experience serving on the audit committees of several public companies and institutions and his education and experience as an economist who studies companies and industries, routinely using public company financial statements in his research. The SEC has stated, and the funds’ amended and restated agreement and Declaration of Trust provides, that the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the Audit, Compliance and Risk Committee and the Board of Trustees in the absence of such designation or identification. |
Item 4. Principal Accountant Fees and Services: |
The following table presents fees billed in each of the last two fiscal years for services rendered to the fund by the fund’s independent auditor: |
Fiscal year ended | Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
February 28, 2022 | $82,062 | $ — | $8,899 | $ — | |
February 28, 2021 | $76,350 | $ — | $8,899 | $ — |
For the fiscal years ended February 28, 2022 and February 28, 2021, the fund’s independent auditor billed aggregate non-audit fees in the amounts of $302,319 and $622,593 respectively, to the fund, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the fund. |
Audit Fees represent fees billed for the fund’s last two fiscal years relating to the audit and review of the financial statements included in annual reports and registration statements, and other services that are normally provided in connection with statutory and regulatory filings or engagements. |
Audit-Related Fees represent fees billed in the fund’s last two fiscal years for services traditionally performed by the fund’s auditor, including accounting consultation for proposed transactions or concerning financial accounting and reporting standards and other audit or attest services not required by statute or regulation. |
Tax Fees represent fees billed in the fund’s last two fiscal years for tax compliance, tax planning and tax advice services. Tax planning and tax advice services include assistance with tax audits, employee benefit plans and requests for rulings or technical advice from taxing authorities. |
Pre-Approval Policies of the Audit, Compliance and Risk Committee. The Audit, Compliance and Risk Committee of the Putnam funds has determined that, as a matter of policy, all work performed for the funds by the funds’ independent auditors will be pre-approved by the Committee itself and thus will generally not be subject to pre-approval procedures. |
The Audit, Compliance and Risk Committee also has adopted a policy to pre-approve the engagement by Putnam Management and certain of its affiliates of the funds’ independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by Putnam Management or certain of its affiliates are typically submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees, and why this work should be performed by that particular audit firm as opposed to another one. In reviewing such requests, the Committee considers, among other things, whether the provision of such services by the audit firm are compatible with the independence of the audit firm. |
The following table presents fees billed by the fund’s independent auditor for services required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2–01 of Regulation S-X. |
Fiscal year ended | Audit-Related Fees | Tax Fees | All Other Fees | Total Non-Audit Fees | |
February 28, 2022 | $ — | $293,420 | $ — | $ — | |
February 28, 2021 | $ — | $613,694 | $ — | $ — |
Item 5. Audit Committee of Listed Registrants |
Not applicable |
Item 6. Schedule of Investments: |
The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above. |
Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies: |
Not applicable |
Item 8. Portfolio Managers of Closed-End Investment Companies |
Not Applicable |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers: |
Not applicable |
Item 10. Submission of Matters to a Vote of Security Holders: |
Not applicable |
Item 11. 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 12. Disclosures of Securities Lending Activities for Closed-End Management Investment Companies: |
Not Applicable |
Item 13. Exhibits: |
(a)(1) The Code of Ethics of The Putnam Funds, which incorporates the Code of Ethics of Putnam Investments, is filed herewith |
(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith. |
SIGNATURES |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
Putnam Funds Trust |
By (Signature and Title): |
/s/ Janet C. Smith Janet C. Smith Principal Accounting Officer |
Date: April 28, 2022 |
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: April 28, 2022 |
By (Signature and Title): |
/s/ Janet C. Smith Janet C. Smith Principal Financial Officer |
Date: April 28, 2022 |