ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:
Level 1: Valuations based on quoted prices for identical securities in active markets.
Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.
The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:
|
| | | |
| | Valuation inputs |
| Investments in securities: | Level 1 | Level 2 | Level 3 |
| Asset-backed commercial paper | $— | $66,194,309 | $— |
| Certificates of deposit | — | 222,761,433 | — |
| Commercial paper | — | 326,902,609 | — |
| Repurchase agreements | — | 1,105,671,000 | — |
| Totals by level | $— | $1,721,529,351 | $— |
The accompanying notes are an integral part of these financial statements.
| |
Short Term Investment Fund 11 |
Statement of assets and liabilities 1/31/24 (Unaudited)
| |
| ASSETS | |
| Investment in securities, at value (Note 1): | |
| Unaffiliated issuers (identified cost $615,403,258) | $615,858,351 |
| Repurchase agreements (identified cost $1,105,671,000) | 1,105,671,000 |
| Cash | 156,350 |
| Interest and other receivables | 3,950,473 |
| Receivable for shares of the fund sold | 341 |
| Total assets | 1,725,636,515 |
| |
| LIABILITIES | |
| Payable for investments purchased | 16,531,771 |
| Payable for custodian fees (Note 2) | 8,788 |
| Payable for investor servicing fees (Note 2) | 27,651 |
| Payable for Trustee compensation and expenses (Note 2) | 194,365 |
| Payable for administrative services (Note 2) | 23,097 |
| Distributions payable to shareholders | 7,777,178 |
| Other accrued expenses | 66,254 |
| Total liabilities | 24,629,104 |
| | |
| Net assets | $1,701,007,411 |
| |
| REPRESENTED BY | |
| Paid-in capital (Unlimited shares authorized) (Notes 1 and 4) | $1,700,559,921 |
| Total distributable earnings (Note 1) | 447,490 |
| Total — Representing net assets applicable to capital shares outstanding | $1,701,007,411 |
| |
| COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE | |
| Net asset value, offering price and redemption price per class G share | |
| ($3,975,749 divided by 3,975,694 shares) | $1.00 |
| Net asset value, offering price and redemption price per class P share | |
| ($1,697,031,662 divided by 1,696,584,227 shares) | $1.00 |
The accompanying notes are an integral part of these financial statements.
|
| 12 Short Term Investment Fund |
Statement of operations Six months ended 1/31/24 (Unaudited)
| |
| INVESTMENT INCOME | |
| Interest | $49,175,461 |
| Total investment income | 49,175,461 |
| |
| EXPENSES | |
| Compensation of Manager (Note 2) | 2,213,424 |
| Investor servicing fees (Note 2) | 88,070 |
| Custodian fees (Note 2) | 13,698 |
| Trustee compensation and expenses (Note 2) | 39,716 |
| Administrative services (Note 2) | 34,601 |
| Other | 129,988 |
| Fees waived and reimbursed by Manager (Note 2) | (2,213,424) |
| Total expenses | 306,073 |
| Expense reduction (Note 2) | (11,162) |
| Net expenses | 294,911 |
| | |
| Net investment income | 48,880,550 |
| |
| REALIZED AND UNREALIZED GAIN (LOSS) | |
| Net realized gain (loss) on: | |
| Securities from unaffiliated issuers (Notes 1 and 3) | 3,455 |
| Total net realized gain | 3,455 |
| Change in net unrealized appreciation (depreciation) on: | |
| Securities from unaffiliated issuers | 391,129 |
| Total change in net unrealized appreciation | 391,129 |
| | |
| Net gain on investments | 394,584 |
| |
| Net increase in net assets resulting from operations | $49,275,134 |
The accompanying notes are an integral part of these financial statements.
|
| Short Term Investment Fund 13 |
Statement of changes in net assets
| | |
| INCREASE (DECREASE) IN NET ASSETS | Six months ended 1/31/24* | Year ended 7/31/23 |
| Operations | | |
| Net investment income | $48,880,550 | $82,890,038 |
| Net realized gain on investments | 3,455 | — |
| Change in net unrealized appreciation of investments | 391,129 | 691,512 |
| Net increase in net assets resulting from operations | 49,275,134 | 83,581,550 |
| Distributions to shareholders (Note 1): | | |
| From ordinary income | | |
| Net investment income | | |
| Class G | (103,165) | (137,735) |
| Class P | (48,947,863) | (82,588,323) |
| Increase (decrease) from capital share transactions (Note 4) | (462,965,709) | 74,034,125 |
| Total increase (decrease) in net assets | (462,741,603) | 74,889,617 |
| |
| NET ASSETS | | |
| Beginning of period | 2,163,749,014 | 2,088,859,397 |
| End of period | $1,701,007,411 | $2,163,749,014 |
*Unaudited.
The accompanying notes are an integral part of these financial statements.
|
| 14 Short Term Investment Fund |
|
| This page left blank intentionally. |
|
| Short Term Investment Fund 15 |
Financial highlights
(For a common share outstanding throughout the period)
| | | | | | | | | | | | |
| | INVESTMENT OPERATIONS | LESS DISTRIBUTIONS | RATIOS AND SUPPLEMENTAL DATA |
| | | | | | | | | | | | Ratio | |
| | | | Net realized | | | | | | | | of net investment | |
| | Net asset value, | | and unrealized | Total from | From net | | | Total return | Net assets, | Ratio of expenses | income (loss) | |
| | beginning | Net investment | gain (loss) | investment | investment | Total | Net asset value, | at net asset value | end of period | to average | to average | Portfolio |
| Period ended | of period | income (loss) | on investments | operations | income | distributions | end of period | (%)a | (in thousands) | net assets (%)b,c | net assets (%)c | turnover (%) |
| Class G | | | | | | | | | | | | |
| January 31, 2024** | $1.00 | 0.0278 | 0.0001 | 0.0279 | (0.0279) | (0.0279) | $1.00 | 2.83* | $3,976 | .02* | 2.78* | — |
| July 31, 2023 | 1.00 | 0.0423d | —e | 0.0423 | (0.0422) | (0.0422) | 1.00 | 4.31 | 3,436 | .04 | 4.30d | — |
| July 31, 2022 | 1.00 | 0.0040 | —e | 0.0040 | (0.0040) | (0.0040) | 1.00 | .40 | 2,930 | .03 | .43 | — |
| July 31, 2021† | 1.00 | 0.0014 | —e | 0.0014 | (0.0014) | (0.0014) | 1.00 | .14* | 1,799 | .03* | .14* | 25 |
| Class P | | | | | | | | | | | | |
| January 31, 2024** | $1.00 | 0.0278 | 0.0001 | 0.0279 | (0.0279) | (0.0279) | $1.00 | 2.83* | $1,697,032 | .02* | 2.77* | — |
| July 31, 2023 | 1.00 | 0.0423 | —e | 0.0423 | (0.0422) | (0.0422) | 1.00 | 4.31 | 2,160,313 | .04 | 4.18 | — |
| July 31, 2022 | 1.00 | 0.0040 | —e | 0.0040 | (0.0040) | (0.0040) | 1.00 | .40 | 2,085,929 | .03 | .35 | — |
| July 31, 2021 | 1.00 | 0.0014 | —e | 0.0014 | (0.0014) | (0.0014) | 1.00 | .14 | 3,009,268 | .03 | .15 | 25 |
| July 31, 2020 | 1.00 | 0.0143 | —e | 0.0143 | (0.0141) | (0.0141) | 1.00 | 1.42 | 3,749,025 | .03 | 1.40 | 7 |
| July 31, 2019 | 1.00 | 0.0244 | —e | 0.0244 | (0.0246) | (0.0246) | 1.00 | 2.49 | 2,828,270 | .03 | 2.44 | — |
* Not annualized.
** Unaudited.
† For the period August 3, 2020 (commencement of operations) to July 31, 2021.
a Total return assumes dividend reinvestment.
b Includes amounts paid through expense offset arrangements, if any (Note 2). Also excludes acquired fund fees and expenses, if any.
c Reflects an involuntary contractual expense limitation in effect during the period. As a result of such limitation, the expenses of each class reflect a reduction of the following amounts as a percentage of average net assets (Note 2):
| | | | | | | | |
| | 1/31/24 | 7/31/23 | 7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | | |
| Class G | 0.13% | 0.25% | 0.25% | 0.25% | N/A | N/A | | |
| Class P | 0.13 | 0.25 | 0.25 | 0.25 | 0.25% | 0.25% | | |
d The net investment income and per share amount shown for the period ending may not correspond with the expected class differences for the period due to the timing of subscriptions into the class or redemptions out of the class.
e Amount represents less than $0.0001 per share.
The accompanying notes are an integral part of these financial statements.
| |
| 16 Short Term Investment Fund | Short Term Investment Fund 17 |
Notes to financial statements 1/31/24 (Unaudited)
Unless otherwise noted, the “reporting period” represents the period from August 1, 2023 through January 31, 2024. The following table defines commonly used references within the Notes to financial statements:
| |
| References to | Represent |
| Franklin Templeton | Franklin Resources, Inc. |
| PIL | Putnam Investments Limited, an affiliate of Putnam Management |
| Putnam Management | Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned |
| | subsidiary of Franklin Templeton |
| SEC | Securities and Exchange Commission |
| State Street | State Street Bank and Trust Company |
Putnam Short Term Investment 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 as high a rate of current income as Putnam Management believes is consistent with preservation of capital and maintenance of liquidity. The fund invests in a diversified portfolio of fixed-income securities comprised of short duration, investment-grade money market and other fixed-income securities. The fund’s investments may include obligations of the U.S. government, its agencies and instrumentalities, which are backed by the full faith and credit of the United States (e.g., U.S. Treasury bonds and Ginnie Mae mortgage-backed bonds) or by only the credit of a federal agency or government-sponsored entity (e.g., Fannie Mae or Freddie Mac mortgage-backed bonds), domestic corporate debt obligations, municipal debt securities, securitized debt instruments (such as mortgage- and asset-backed securities), repurchase agreements, certificates of deposit, bankers acceptances, commercial paper (including asset-backed commercial paper), time deposits, Yankee Eurodollar securities and other money market instruments. The fund may also invest in U.S. dollar-denominated foreign securities of these types. Under normal circumstances, the effective duration of the fund’s portfolio will generally not be greater than one year. Effective duration provides a measure of a fund’s interest-rate sensitivity. The longer a fund’s duration, the more sensitive the fund is to shifts in interest rates. The fund will maintain a dollar-weighted average portfolio maturity of three years or less. 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.
The fund offers the following share classes. The expenses for each class of shares may differ based on the distribution and investor servicing fees of each class, which are identified in Note 2.
| | | |
| Share class | Sales charge | Contingent deferred sales charge | Conversion feature |
| Class G* | None | None | None |
| Class P** | None | None | None |
* Only available to other Putnam fund-of-funds accounts.
** Only available to other Putnam funds and other accounts managed by Putnam Management or its affiliates.
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 Trust’s Amended and Restated Agreement and Declaration of Trust, any claims asserted by a shareholder against or on behalf of the Trust (or its series), including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
|
| 18 Short Term Investment Fund |
Note 1: Significant accounting policies
The fund follows the accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (ASC 946) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. 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 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.
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) and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which consider such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2. 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, which has been designated as valuation designee pursuant to Rule 2a–5 under the Investment Company Act of 1940, in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.
Joint trading account Pursuant to an exemptive order from the SEC, the fund may transfer uninvested cash balances into a joint trading account along with the cash of other registered investment companies and certain other accounts managed by Putnam Management. These balances may be invested in issues of short-term investments having maturities of up to 90 days.
|
| Short Term Investment Fund 19 |
Repurchase agreements The fund, or any joint trading account, through its custodian, receives delivery of the underlying securities, the fair value of which at the time of purchase is required to be in an amount at least equal to the resale price, including accrued interest. Collateral for certain tri-party repurchase agreements, which totaled $1,129,400,075 at the end of the reporting period, is held at the counterparty’s custodian in a segregated account for the benefit of the fund and the counterparty. Putnam Management is responsible for determining that the value of these underlying securities is at all times at least equal to the resale price, including accrued interest. In the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings.
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, is recorded on the accrual basis. Amortization and accretion of premiums and discounts on debt securities, if any, is recorded on the accrual basis.
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 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.
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.
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 aggregate identified cost on a tax basis is $1,721,074,258, resulting in gross unrealized appreciation and depreciation of $487,760 and $32,667, respectively, or net unrealized appreciation of $455,093.
Distributions to shareholders Income dividends are recorded daily by the fund and are 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. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year. 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.
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 for management and investment advisory services monthly based on the average net assets of the fund. Such fee is based on the annual rate of 0.25% of the average net assets of the fund. Putnam Management has contractually agreed to waive its management fee from the fund through November 30, 2024. During the reporting period, the fund waived $2,213,424 as a result of this waiver.
|
| 20 Short Term Investment Fund |
PIL 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 0.20% of the average net assets of the portion of the fund managed by PIL.
On January 1, 2024, a subsidiary of Franklin Templeton acquired Putnam U.S. Holdings I, LLC (“Putnam Holdings”), the parent company of Putnam Management and PIL, in a stock and cash transaction (the “Transaction”). As a result of the Transaction, Putnam Management and PIL became indirect, wholly-owned subsidiaries of Franklin Templeton. The Transaction also resulted in the automatic termination of the investment management contract between the fund and Putnam Management and the sub-management contract for the fund between Putnam Management and PIL that were in place for the fund before the Transaction. However, Putnam Management and PIL continue to provide uninterrupted services with respect to the fund pursuant to new investment management and sub-management contracts that were approved by fund shareholders at a shareholder meeting held in connection with the Transaction and that took effect on January 1, 2024. The terms of the new investment management and sub-management contracts are substantially similar to those of the previous investment management and sub-management contracts, and the fee rates payable under the new investment management and sub-management contracts are the same as the fee rates under the previous investment management and sub-management contracts.
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. was paid a monthly fee for investor servicing at an annual rate of 0.01% of the fund’s average net assets.
During the reporting period, the expenses for each class of shares related to investor servicing fees were as follows:
| | |
| Class G | $186 | |
| Class P | 87,884 | |
| Total | $88,070 | |
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 $11,162 under the expense offset arrangements.
Each Independent Trustee of the fund receives an annual Trustee fee, of which $1,383, 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 from July 1, 1995 through December 31, 2023. 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.
The fund has not adopted a distribution plan pursuant to Rule 12b–1 under the Investment Company Act of 1940.
|
| Short Term Investment Fund 21 |
Note 3: Purchases and sales of securities
During the reporting period, the cost of purchases and the proceeds from sales (including maturities) of investment securities (all short-term obligations) aggregated $128,451,850,412 and $128,906,869,000, respectively. 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:
| | | | |
| | SIX MONTHS ENDED 1/31/24 | YEAR ENDED 7/31/23 |
| Class G | Shares | Amount | Shares | Amount |
| Shares sold | 1,175,437 | $1,175,437 | 1,313,471 | $1,313,471 |
| Shares issued in connection with | | | | |
| reinvestment of distributions | 103,165 | 103,165 | 137,735 | 137,735 |
| | 1,278,602 | 1,278,602 | 1,451,206 | 1,451,206 |
| Shares repurchased | (740,140) | (740,140) | (946,216) | (946,216) |
| Net increase | 538,462 | $538,462 | 504,990 | $504,990 |
| |
| | SIX MONTHS ENDED 1/31/24 | YEAR ENDED 7/31/23 |
| Class P | Shares | Amount | Shares | Amount |
| Shares sold | 6,772,842,798 | $6,772,842,798 | 13,601,624,881 | $13,601,624,881 |
| Shares issued in connection with | | | | |
| reinvestment of distributions | — | — | — | — |
| | 6,772,842,798 | 6,772,842,798 | 13,601,624,881 | 13,601,624,881 |
| Shares repurchased | (7,236,346,969) | (7,236,346,969) | (13,528,095,746) | (13,528,095,746) |
| Net increase (decrease) | (463,504,171) | $(463,504,171) | 73,529,135 | $73,529,135 |
Note 5: 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.
|
| 22 Short Term Investment Fund |
|
| This page left blank intentionally. |
|
| Short Term Investment Fund 23 |
Note 6: 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. | BofA
Securities,
Inc. | BNP Paribas
Securities
Corp. | Citigroup
Global
Markets, Inc. | Goldman
Sachs & Co.,
LLC | HSBC
Securities
(USA), Inc. | JPMorgan
Securities,
LLC | RBC Capital
Markets, LLC | Royal Bank
of Canada | Total |
| Assets: | | | | | | | | | | |
| Repurchase agreements** | $135,000,000 | $41,061,000 | $25,000,000 | $231,049,000 | $177,100,000 | $51,200,000 | $317,561,000 | $25,000,000 | $102,700,000 | $1,105,671,000 |
| Total Assets | $135,000,000 | $41,061,000 | $25,000,000 | $231,049,000 | $177,100,000 | $51,200,000 | $317,561,000 | $25,000,000 | $102,700,000 | $1,105,671,000 |
| Liabilities: | | | | | | | | | | |
| Total Liabilities | $— | $— | $— | $— | $— | $— | $— | $— | $— | $— |
| Total Financial and Derivative | | | | | | | | | | |
| Net Assets | $135,000,000 | $41,061,000 | $25,000,000 | $231,049,000 | $177,100,000 | $51,200,000 | $317,561,000 | $25,000,000 | $102,700,000 | $1,105,671,000 |
| Total collateral received (pledged)†## | $135,000,000 | $41,061,000 | $25,000,000 | $231,049,000 | $177,100,000 | $51,200,000 | $317,561,000 | $25,000,000 | $102,700,000 | |
| Net amount | $— | $— | $— | $— | $— | $— | $— | $— | $— | |
| Controlled collateral received (including | | | | | | | | | | |
| TBA commitments)** | $— | $— | $— | $— | $— | $— | $— | $— | $— | $— |
| Uncontrolled collateral received | $137,711,671 | $41,882,220 | $26,267,250 | $235,680,999 | $180,642,001 | $52,231,703 | $323,960,016 | $26,254,759 | $104,769,456 | $1,129,400,075 |
| 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.
##Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.
| |
| 24 Short Term Investment Fund | Short Term Investment Fund 25 |
Shareholder meeting results (Unaudited)
October 20, 2023 special meeting
At the meeting, a new Management Contract for your fund with Putnam Investment Management, LLC was approved, as follows:
| | |
| Votes for | Votes against | Abstentions/Votes withheld |
| 2,357,596,725 | — | — |
At the meeting, a new Sub-Management Contract for your fund between Putnam Investment Management, LLC and Putnam Investments Limited was approved, as follows:
| | |
| Votes for | Votes against | Abstentions/Votes withheld |
| 2,357,596,725 | — | — |
All tabulations are rounded to the nearest whole number.
|
| 26 Short Term Investment Fund |
Fund information
| | |
| Investment Manager | Trustees | Jonathan S. Horwitz |
| Putnam Investment | Kenneth R. Leibler, Chair | Executive Vice President, |
| Management, LLC | Barbara M. Baumann, Vice Chair | Principal Executive Officer, |
| 100 Federal Street | Liaquat Ahamed | and Compliance Liaison |
| Boston, MA 02110 | Katinka Domotorffy | |
| | Catharine Bond Hill | Kelley Hunt |
| Investment Sub-Advisor | Jennifer Williams Murphy | AML Compliance Officer |
| Putnam Investments Limited | Marie Pillai | |
| 16 St James’s Street | George Putnam III | Martin Lemaire |
| London, England SW1A 1ER | Robert L. Reynolds | Vice President and |
| Manoj P. Singh | Derivatives Risk Manager |
| Marketing Services | Mona K. Sutphen | |
| Putnam Retail Management | Jane E. Trust | Alan G. McCormack |
| Limited Partnership | | Vice President and |
| 100 Federal Street | Officers | Derivatives Risk Manager |
| Boston, MA 02110 | Robert L. Reynolds | |
| President, The Putnam Funds | Denere P. Poulack |
| Custodian | | Assistant Vice President, |
| State Street Bank | Kevin R. Blatchford | Assistant Clerk, and |
| and Trust Company | Vice President and | Assistant Treasurer |
| Assistant Treasurer | |
| Legal Counsel | | Janet C. Smith |
| Ropes & Gray LLP | James F. Clark | Vice President, |
| Vice President and | Principal Financial Officer, |
| | Chief Compliance Officer | Principal Accounting Officer, |
| | | and Assistant Treasurer |
| | Michael J. Higgins | |
| | Vice President, Treasurer, | Stephen J. Tate |
| | and Clerk | Vice President and |
| | | Chief Legal Officer |
This report is for the information of shareholders of Putnam Short Term Investment Fund. It may also be used as sales literature when preceded or accompanied by the current prospectus, the most recent copy of the fund’s Quarterly Performance Summary, and the fund’s Quarterly Ranking Summary. For more recent performance, please visit putnam.com or franklintempleton.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.
|
| This page left blank intentionally. |
|
| This page left blank intentionally. |
| |
| Item 3. Audit Committee Financial Expert: |
| |
| Item 4. Principal Accountant Fees and Services: |
| |
| Item 5. Audit Committee of Listed Registrants |
| |
| 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: |
| |
| Item 8. Portfolio Managers of Closed-End Investment Companies |
| |
| Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers: |
| |
| Item 10. Submission of Matters to a Vote of Security Holders: |
| |
| 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 Investment Companies: |
| |
| Item 13. Recovery of Erroneously Awarded Compensation. |
| |
| 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. |
| |
| By (Signature and Title): |
| |
| /s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
|
| |
| 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
|
| |
| By (Signature and Title): |
| |
| /s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer
|
