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: July 31, 2021
Date of reporting period: August 1, 2020 — July 31, 2021



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 Ultra
Short Duration
Income Fund


Annual report
7 | 31 | 21

Message from the Trustees 1
About the fund 2
Interview with your fund’s portfolio manager 5
Your fund’s performance 9
Your fund’s expenses 13
Consider these risks before investing 15
Terms and definitions 16
Other information for shareholders 18
Important notice regarding Putnam’s privacy policy 19
Trustee approval of management contract 20
Audited financial statements 24
Report of Independent Registered Public Accounting Firm 25
Federal tax information 71
About the Trustees 72
Officers 74

 


 

Message from the Trustees

September 10, 2021

Dear Fellow Shareholder:

Through the summer months of 2021, financial markets continued to rise. Stocks were powered by new highs in corporate earnings, and bonds appreciated despite an uptick in inflation. Experts at Putnam believe inflation will likely be temporary, caused by an uneven recovery from the Covid-19 pandemic.

Even as the economy returns to a more normal trajectory, the evolving pandemic remains a justifiable concern. During these unsettled times, well-managed companies have tried to be flexible and resilient, adapting to conditions while focusing on their goals.

Putnam’s research teams also remain focused on their objectives. They analyze and debate how businesses are adjusting to these challenges as they work to identify investment opportunities for our portfolios. We believe this active approach is well-suited to this time.

Thank you for investing with Putnam.



 


Putnam Ultra Short Duration Income Fund is designed for investors who seek a conservative risk profile and low volatility, along with income potential. Managed by a team of industry veterans, the fund offers a level of flexibility not necessarily available in other conservative investment options. Because the fund is not a money market fund, the managers can invest in a broader range of sectors and securities that may offer higher yields without taking on significantly more risk.


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A broader range of income opportunities

The fund can invest in a wider range of securities than is available to money market funds.


Investors should be aware of the differences between Putnam Ultra Short Duration Income Fund and money market funds before investing: Both seek to preserve capital and maintain liquidity. Money market funds generally focus on stability of principal, while Putnam Ultra Short Duration Income Fund seeks a balance of stability and income, which may result in increased volatility. Money market funds seek to maintain a net asset value (NAV) of $1.00 per share; the NAV of Putnam Ultra Short Duration Income Fund will fluctuate to reflect the market value of the portfolio. The fund’s fees and expenses differ from money market funds; see the prospectus for details. The fund can invest in more bond sectors than money market funds and, as a result, will be exposed to a larger number of risks. Neither money market funds nor this fund is insured or guaranteed by the FDIC or any other government agency, and investors can lose money in each.

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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 a shareholder may owe on fund distributions or on the redemption of fund shares. See below and pages 9–12 for additional performance information. The fund had expense limitations during the period, without which returns would have been lower.


This comparison shows your fund’s performance in the context of broad market indexes for the 12 months ended 7/31/21. See above and pages 9–12 for additional fund performance information. Index descriptions can be found on page 17.

All Bloomberg indices provided by Bloomberg Index Services Limited.

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How were market conditions during the 12-month reporting period?

Global financial markets proved to be surprisingly resilient during the fiscal 12-month period. Key equity market indexes advanced, driven by a broader rollout of vaccines, fiscal stimulus, low interest rates, and a pick-up in economic activity. Growth in the United States is being fueled largely by federal funding, including President Biden’s multitrillion dollar spending packages, and consumer spending, in our opinion. However, fixed-income securities, stocks, and other risky assets came under pressure periodically due to concerns that rising inflation and a speedy economic recovery could prompt central bankers to pare back easy monetary policies. In July, Covid-19 cases and hospitalizations began to rise, spurred by the Delta variant and some vaccine resistance. Worries about growth and mobility restrictions have resurfaced in financial markets.

In July, the Federal Reserve voted to leave its benchmark interest rate near zero and to continue the government-backed bond purchases. However, Fed officials have started to discuss when and how to start reducing, or tapering, the bond-buying program. The central

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Allocations are shown as a percentage of the fund’s net assets as of 7/31/21. Cash and net other assets, if any, represent the market value weights of cash, derivatives, and other unclassified assets in the portfolio. 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.

The cash and net other assets category may show a negative market value percentage as a result of the timing of trade-date and settlement-date transactions.

bank has said it wants to first see “substantial further progress” toward its goals of maximum employment and stable inflation. The yield on the 10-year Treasury note, which helps set borrowing costs on everything from mortgages to corporate debt, rose to 1.24% at period-end from 0.55% at the end of July 2020. The yield on the 2-year Treasury note advanced to 0.19% from 0.11%.

How did the fund perform? What were the drivers of performance during the period?

The fund outperformed its benchmark, the ICE BofA U.S. Treasury Bill Index, during the period. The fund returned 0.36% versus 0.08% for the benchmark index for the 12 months ended July 31, 2021.

Corporate credit was the largest contributor to the fund’s relative performance over the one-year period. Generally, the fund is primarily invested in investment-grade corporate bonds and commercial paper [CP], so corporate spread movements tend to have the largest impact on the fund’s performance. Spreads tightened on the Bloomberg 1–3 Year U.S. Corporate Bond Index by approximately 27 basis points over the past year. Issuer selection within the financials sector, which is the largest sector allocation within the fund, was particularly strong, especially within high-quality bank issuers. To a lesser extent, the fund’s smaller allocation to the industrials sector contributed as well.

Additionally, the fund’s allocation to securitized sectors, including non-agency residential mortgage-backed securities [RMBS] and asset-backed securities [ABS], contributed to performance. The portfolio management team continues to focus allocations in this area to highly rated securities that are senior in the capital structure. We believe this approach provides diversification benefits to our corporate exposure.

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What is your near-term outlook for fixed-income markets?

We believe the environment for risk assets remains generally supportive. Growth in the United States will be robust, particularly in the second half of 2021, fueled by the lifting of pandemic-related restrictions, pent-up consumer demand, and widespread vaccinations, in our opinion. We are also anticipating further strength in corporate earnings growth. Given expectations for sturdier growth, we believe U.S. Treasury yields could rise further this year. That said, we think the trend toward higher rates will be gradual, as bond investors adjust their growth and inflation outlooks, leading to periods of market volatility.

Near-term inflation expectations are significantly higher than they were prior to the pandemic. While it is possible that higher-than-expected inflation could unnerve policymakers and investors, we think the Fed will view any near-term uptick in domestic inflation as transitory. We believe the Fed will maintain its accommodative policy over the short term as it seeks broader and more inclusive employment gains. While the past year has been a challenging environment for investors focused at the short end of the curve, we believe the Fed’s recent actions are a first step toward unwinding the pandemic-driven liquidity, which in turn may create attractive opportunities.


What are the fund’s strategies going forward?

From a strategy perspective, the portfolio management team is continuing to take a more


Credit qualities are shown as a percentage of the fund’s net assets as of 7/31/21. A bond rated BBB or higher (A-3/SP-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 may vary over time.

Cash and net other assets, if any, represent the market value weights of cash and derivatives and may show a negative market value as a result of the timing of trade versus settlement date transactions. The fund itself has not been rated by an independent rating agency.

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conservative approach, as valuations remain less attractive on the heels of historically tight spreads, in our opinion. In terms of rates, we continue to believe the Fed will tighten policy earlier than market expectations, and we are beginning to see this play out. Within the fund, we have been positioning the portfolio based on this view. We have been shortening the duration of the fund by selling fixed-rate corporates and swapping into floating-rate instruments, specifically investment-grade corporate bonds that have a floating-rate coupon. Typically, when we see the Fed change course, short-term rates trend higher in anticipation of an eventual rate hike. Therefore, we believe owning securities with floating-rate coupons allows the fund to participate in a higher rate environment in the future as floating-rate coupons reset.

Within securitized sectors, we are finding opportunities in high-quality assets, including AAA-rated credit card and prime auto ABS. Although we limit the fund’s allocation to securitized sectors to approximately 10% of the portfolio, this smaller position has provided diversification benefits for the fund, in our opinion. We are also keeping a balance of short-maturity commercial paper for liquidity. CP yields remain low; however, issuers have started to return to the CP market, which may present opportunities going forward.

We continue to structure the portfolio with a barbell approach, emphasizing positions at separate points on the yield curve: lower-tier investment-grade securities [BBB or equivalent] maturing in one year or less and upper-tier investment-grade securities [A or AA rated] maturing in a range of 1 to 3.5 years. Despite ongoing changes in the market environment, preservation remains one of the primary objectives of the fund.

Thank you, Joanne, for your time and insights today.

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.


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.

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Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended July 31, 2021, 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 N, 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 7/31/21

    Annual    Annual    Annual   
  Life of fund  average  5 years  average  3 years  average  1 year 
Class A (10/17/11)               
Net asset value  11.15%  1.09%  7.91%  1.53%  4.98%  1.63%  0.36% 
Class B (10/17/11)               
Net asset value  7.69  0.76  5.95  1.16  3.79  1.25  0.02 
Class C (10/17/11)               
Net asset value  7.69  0.76  5.95  1.16  3.79  1.25  0.02 
Class N (11/1/18)               
Before sales charge  9.69  0.95  7.22  1.40  4.61  1.51  0.21 
After sales charge  8.05  0.79  5.61  1.10  3.04  1.00  –1.29 
Class R (10/17/11)               
Net asset value  6.98  0.69  5.95  1.16  3.79  1.25  0.02 
Class R6 (7/2/12)               
Net asset value  12.51  1.21  8.60  1.66  5.42  1.78  0.57 
Class Y (10/17/11)               
Net asset value  12.34  1.20  8.44  1.63  5.29  1.73  0.46 

 

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Class A, B, C, R, R6, and Y share classes do not carry an initial sales charge or a contingent deferred sales charge. After-sales-charge returns for class N shares reflect the deduction of the maximum 1.50% sales charge, levied at the time of purchase. Performance for class N shares prior to its inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge and the higher operating expenses of class N shares. Performance for class R6 shares prior to its inception is derived from the historical performance of class Y shares.

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.

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Comparative index returns For periods ended 7/31/21

    Annual    Annual    Annual   
  Life of fund  average  5 years  average  3 years  average  1 year 
ICE BofA U.S.               
Treasury Bill Index  6.71%  0.67%  6.08%  1.19%  4.09%  1.34%  0.08% 

 

Index results should be compared with fund performance at net asset value.


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, C, N, R, R6, and Y shares would have been valued at $10,769, $10,769, $10,969 ($10,805 after sales charge), $10,698, $11,251, and $11,234, respectively.

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Fund price and distribution information For the 12-month period ended 7/31/21

Distributions  Class A  Class B  Class C  Class N  Class R  Class R6  Class Y 
Number  12  12  12  12  12  12  12 
Income  $0.036649  $0.001963  $0.001941  $0.021457  $0.001946  $0.047802  $0.046757 
Capital gains               
Total  $0.036649  $0.001963  $0.001941  $0.021457  $0.001946  $0.047802  $0.046757 
  Net  Net  Net  Before  After  Net  Net  Net 
  asset  asset  asset  sales  sales  asset  asset  asset 
Share value  value  value  value  charge  charge  value  value  value 
7/31/20  $10.08  $10.07  $10.07  $10.07  $10.22  $10.07  $10.09  $10.09 
7/31/21  10.08  10.07  10.07  10.07  10.22  10.07  10.10  10.09 
  Net  Net  Net  Before  After  Net  Net  Net 
Current rate  asset  asset  asset  sales  sales  asset  asset  asset 
(end of period)  value  value  value  charge  charge  value  value  value 
Current dividend rate1  0.26%  0.01%  0.01%  0.11%  0.11%  0.01%  0.37%  0.36% 
Current 30-day                 
SEC yield (with                 
expense limitation)2,3  0.07  –0.18  –0.18  N/A  –0.08  –0.18  0.18  0.17 
Current 30-day                 
SEC yield (without                 
expense limitation)3  0.02  –0.37  –0.37  N/A  –0.12  –0.37  0.13  0.12 

 

The classification of distributions, if any, is an estimate. Before-sales-charge share value and current dividend rate for class N 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 (1.50% for class N 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 For the period, the fund had an expense limitation, without which the yield would have been lower.

3 Based only on investment income and calculated using the maximum offering price for each share class, in accordance with SEC guidelines.

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Fund performance as of most recent calendar quarter Total return for periods ended 6/30/21

    Annual    Annual    Annual   
  Life of fund  average  5 years  average  3 years  average  1 year 
Class A (10/17/11)               
Net asset value  11.13%  1.09%  8.07%  1.56%  5.15%  1.69%  0.49% 
Class B (10/17/11)               
Net asset value  7.66  0.76  5.98  1.17  3.94  1.30  0.13 
Class C (10/17/11)               
Net asset value  7.66  0.76  5.98  1.17  3.94  1.30  0.13 
Class N (11/1/18)               
Before sales charge  9.68  0.96  7.38  1.43  4.78  1.57  0.34 
After sales charge  8.04  0.80  5.77  1.13  3.21  1.06  –1.16 
Class R (10/17/11)               
Net asset value  6.98  0.70  5.98  1.17  3.94  1.30  0.13 
Class R6 (7/2/12)               
Net asset value  12.47  1.22  8.65  1.67  5.59  1.83  0.60 
Class Y (10/17/11)               
Net asset value  12.41  1.21  8.71  1.68  5.56  1.82  0.69 

 

See the discussion following the fund performance table on page 9 for information about the calculation of fund performance.

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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. In the most recent six-month period, your fund’s expenses were limited; had expenses not been limited, they would have been higher. 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 N  Class R  Class R6  Class Y 
Net expenses for the fiscal year               
ended 7/31/20*#  0.40%  0.80%  0.80%  0.55%  0.80%  0.29%  0.30% 
Total annual operating expenses for the               
fiscal year ended 7/31/20#  0.47%  0.87%  0.87%  0.62%  0.87%  0.36%  0.37% 
Annualized expense ratio for the               
six-month period ended 7/31/21  0.40%  0.78%  0.78%  0.55%  0.77%  0.29%  0.30% 

 

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.

* Reflects Putnam Management’s contractual obligation to limit certain fund expenses through 11/30/21.

# Restated to reflect current fees.

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.

Reflects a voluntary waiver of certain fund expenses.

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 2/1/21 to 7/31/21. 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 N  Class R  Class R6  Class Y 
Expenses paid per $1,000   $1.98  $3.87  $3.87  $2.73  $3.82  $1.44  $1.49 
Ending value (after expenses)  $1,000.60  $999.10  $999.10  $999.80  $999.10  $1,001.10  $1,001.10 

 

* 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 7/31/21. 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).

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Estimate the expenses you paid

To estimate the ongoing expenses you paid for the six months ended 7/31/21, use the following calculation method. To find the value of your investment on 2/1/21, 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 N  Class R  Class R6  Class Y 
Expenses paid per $1,000*†  $2.01  $3.91  $3.91  $2.76  $3.86  $1.45  $1.51 
Ending value (after expenses)  $1,022.81  $1,020.93  $1,020.93  $1,022.07  $1,020.98  $1,023.36  $1,023.31 

 

* 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 7/31/21. 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).

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Consider these risks before investing

Putnam Ultra Short Duration Income Fund is not a money market fund. The effects of inflation may erode the value of your investment over time. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are also subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise. The fund may have to invest the proceeds from prepaid investments, including mortgage-backed investments, in other investments with less attractive terms and yields.

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.

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. Credit risk is generally greater for debt not backed by the full faith and credit of the U.S. government. 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. Unlike bonds, funds that invest in bonds have fees and expenses.

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.

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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, and are calculated by dividing the net assets of the 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 1.50% maximum sales charge for class N shares.

Net asset value (NAV) is the price, or value, of one share of a mutual fund, without a sales charge. Net asset values fluctuate with market conditions, and are calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

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 5% maximum during the first year to 1% during the sixth year. After the sixth 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 not subject to an initial sales charge or a CDSC, except that a CDSC may apply to certain redemptions of class A shares obtained by exchanging shares from another Putnam fund that were originally purchased without an initial sales charge if the shares are redeemed within nine months of the original purchase. Exchange of your fund’s class A shares into another Putnam fund may involve an initial sales charge.

Class B shares are closed to new investments and are only available by exchange from 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 or a CDSC, except that a CDSC of 1.00% may apply to class C shares obtained in an exchange for class C shares of another Putnam fund if exchanged within one year of the original purchase date.

Class N shares are generally subject to an initial sales charge and no CDSC (except on certain redemptions of shares bought without an initial sales charge). There is a 1.50% maximum sales charge.

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.

Mortgage-backed security (MBS), also known as a mortgage “pass-through,” is a type of asset-backed security that is secured by a mortgage or collection of mortgages. The following are types of MBSs:

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Agency “pass-through” has its principal and interest backed by a U.S. government agency, such as the Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac).

Collateralized mortgage obligation (CMO) represents claims to specific cash flows from pools of home mortgages. The streams of principal and interest payments on the mortgages are distributed to the different classes of CMO interests in “tranches.” Each tranche may have different principal balances, coupon rates, prepayment risks, and maturity dates. A CMO is highly sensitive to changes in interest rates and any resulting change in the rate at which homeowners sell their properties, refinance, or otherwise prepay loans. CMOs are subject to prepayment, market, and liquidity risks.

◦ Interest-only (IO) security is a type of CMO in which the underlying asset is the interest portion of mortgage, Treasury, or bond payments.

Non-agency residential mortgage-backed security (RMBS) is an MBS not backed by Fannie Mae, Ginnie Mae, or Freddie Mac. One type of RMBS is an Alt-A mortgage-backed security.

Commercial mortgage-backed security (CMBS) is secured by the loan on a commercial property.

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. 1–3 Year Corporate Bond Index is an unmanaged index of U.S. investment-grade corporate debt with a remaining term to maturity of less than three years.

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. Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

S&P 500 Index is an unmanaged index of common stock performance.

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.

Ultra Short Duration 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 July 31, 2021, Putnam employees had approximately $569,000,000 and the Trustees had approximately $80,000,000 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.

Liquidity risk management program

Putnam, as the administrator of the fund’s liquidity risk management program (appointed by the Board of Trustees), presented the most recent annual report on the program to the Trustees in April 2021. The report covered the structure of the program, including the program documents and related policies and procedures adopted to comply with Rule 22e-4 under the Investment Company Act of 1940, and reviewed the operation of the program from January 2020 through December 2020. The report included a description of the annual liquidity assessment of the fund that Putnam performed in November 2020. The report noted that there were no material compliance exceptions identified under Rule 22e-4 during the period. The report included a review of the governance of the program and the methodology for classification of the fund’s investments. The report also included a discussion of liquidity monitoring during the period, including during the market liquidity challenges caused by the Covid-19 pandemic, and the impact those challenges had on the liquidity of the fund’s investments. Putnam concluded that the program has been operating effectively and adequately to ensure compliance with Rule 22e-4.

18 Ultra Short Duration 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.

Ultra Short Duration Income Fund 19 

 


 

Trustee approval of management contract

General conclusions

The Board of Trustees of The Putnam Funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of your fund’s management contract with Putnam Investment Management, LLC (“Putnam Management”) and the sub-management contract with respect to your fund between Putnam Management and its affiliate, Putnam Investments Limited (“PIL”). The Board, with the assistance of its Contract Committee, requests and evaluates all information it deems reasonably necessary under the circumstances in connection with its annual contract review. The Contract Committee consists solely of Trustees who are not “interested persons” (as this term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of The Putnam Funds (“Independent Trustees”).

At the outset of the review process, members of the Board’s independent staff and independent legal counsel considered any possible changes to the annual contract review materials furnished to the Contract Committee during the course of the previous year’s review and, as applicable, identified those changes to Putnam Management. Following these discussions and in consultation with the Contract Committee, the Independent Trustees’ independent legal counsel requested that Putnam Management and its affiliates furnish specified information, together with any additional information that Putnam Management considered relevant, to the Contract Committee. Over the course of several months ending in June 2021, the Contract Committee met on a number of occasions with representatives of Putnam Management, and separately in executive session, to consider the information that Putnam Management provided. Throughout this process, the Contract Committee was assisted by the members of the Board’s independent staff and by independent legal counsel for The Putnam Funds and the Independent Trustees.

In May 2021, the Contract Committee met in executive session to discuss and consider its recommendations with respect to the continuance of the contracts. At the Trustees’ June 2021 meeting, the Contract Committee met in executive session with the other Independent Trustees to review a summary of the key financial, performance and other data that the Contract Committee considered in the course of its review. The Contract Committee then presented its written report, which summarized the key factors that the Committee had considered and set forth its recommendations. The Contract Committee recommended, and the Independent Trustees approved, the continuance of your fund’s management and sub-management contracts, effective July 1, 2021. (Because PIL is an affiliate of Putnam Management and Putnam Management remains fully responsible for all services provided by PIL, the Trustees have not attempted to evaluate PIL as a separate entity, and all subsequent references to Putnam Management below should be deemed to include reference to PIL as necessary or appropriate in the context.)

The Independent Trustees’ approval was based on the following conclusions:

• That the fee schedule in effect for your fund represented reasonable compensation in light of the nature and quality of the services being provided to the fund, the fees paid by competitive funds, the costs incurred by Putnam Management in providing services to the fund, and the application of certain reductions and waivers noted below; and

• That the fee schedule in effect for your fund represented an appropriate sharing between fund shareholders and Putnam Management of any economies of scale as may exist in the management of the fund at current asset levels.

These conclusions were based on a comprehensive consideration of all information provided to the Trustees and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the management arrangements for your fund and the other Putnam funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that some aspects of the arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of fee arrangements in previous years. For example, with certain exceptions primarily involving newly launched or repositioned funds, the current

20 Ultra Short Duration Income Fund 

 


 

fee arrangements under the vast majority of the funds’ management contracts were first implemented at the beginning of 2010 following extensive review by the Contract Committee and discussions with representatives of Putnam Management, as well as approval by shareholders.

Management fee schedules and total expenses

The Trustees reviewed the management fee schedules in effect for all Putnam funds, including fee levels and breakpoints. Under its management contract, your fund has the benefit of breakpoints in its management fee schedule that provide shareholders with reduced fee levels as assets under management in the Putnam family of funds increase. The Trustees also reviewed the total expenses of each Putnam fund, recognizing that in most cases management fees represented the major, but not the sole, determinant of total costs to fund shareholders. (Two funds have implemented so-called “all-in” management fees covering substantially all routine fund operating costs.)

In reviewing fees and expenses, the Trustees generally focus their attention on material changes in circumstances — for example, changes in assets under management, changes in a fund’s investment strategy, changes in Putnam Management’s operating costs or profitability, or changes in competitive practices in the mutual fund industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not indicate that changes to the management fee schedule for your fund would be appropriate at this time.

As in the past, the Trustees also focused on the competitiveness of each fund’s total expense ratio. The Trustees and Putnam Management and the funds’ investor servicing agent, Putnam Investor Services, Inc. (“PSERV”), have implemented expense limitations that were in effect during your fund’s fiscal year ending in 2020. These expense limitations were: (i) a contractual expense limitation applicable to specified open-end funds, including your fund, of 25 basis points on investor servicing fees and expenses and (ii) a contractual expense limitation applicable to specified open-end funds, including your fund, of 20 basis points on so-called “other expenses” (i.e., all expenses exclusive of management fees, distribution fees, investor servicing fees, investment-related expenses, interest, taxes, brokerage commissions, acquired fund fees and expenses and extraordinary expenses).

These expense limitations attempt to maintain competitive expense levels for the funds. Most funds, including your fund, had sufficiently low expenses that these expense limitations were not operative during their fiscal years ending in 2020. Putnam Management and PSERV have agreed to maintain these expense limitations until at least November 30, 2022. In addition, Putnam Management contractually agreed to waive fees and/or reimburse expenses of your fund to the extent that expenses of the fund (excluding payments under the fund’s distribution plans, investor servicing fees, brokerage, interest, taxes, investment-related expenses, extraordinary expenses and acquired fund fees and expenses) would exceed an annual rate of 0.24% of its average net assets through at least November 30, 2022. During its fiscal year ending in 2020, your fund’s expenses were reduced as a result of this expense limitation. Putnam Management and PSERV’s commitment to these expense limitation arrangements, which were intended to support an effort to have fund expenses meet competitive standards, was an important factor in the Trustees’ decision to approve the continuance of your fund’s management and sub-management contracts.

The Trustees reviewed comparative fee and expense information for a custom group of competitive funds selected by Broadridge Financial Solutions, Inc. (“Broadridge”). This comparative information included your fund’s percentile ranking for effective management fees and total expenses (excluding any applicable 12b-1 fees), which provides a general indication of your fund’s relative standing. In the custom peer group, your fund ranked in the second quintile in effective management fees (determined for your fund and the other funds in the custom peer group based on fund asset size and the applicable contractual management fee schedule) and in the third quintile in total expenses (excluding any applicable 12b-1 fees) as of December 31, 2020. The first quintile represents the least expensive funds and the fifth quintile the most expensive funds. The fee and expense data reported by Broadridge as of December 31, 2020 reflected the most recent fiscal year-end data available in Broadridge’s database at that time.

In connection with their review of fund management fees and total expenses, the Trustees also reviewed the costs of the services provided and the profits realized by Putnam Management and its affiliates from their contractual relationships with the funds. This information included trends

Ultra Short Duration Income Fund 21 

 


 

in revenues, expenses and profitability of Putnam Management and its affiliates relating to the investment management, investor servicing and distribution services provided to the funds. In this regard, the Trustees also reviewed an analysis of the revenues, expenses and profitability of Putnam Management and its affiliates, allocated on a fund-by-fund basis, with respect to the funds’ management, distribution, and investor servicing contracts. For each fund, the analysis presented information about revenues, expenses and profitability for each of the agreements separately and for the agreements taken together on a combined basis. The Trustees concluded that, at current asset levels, the fee schedules in place for the Putnam funds, including the fee schedule for your fund, represented reasonable compensation for the services being provided and represented an appropriate sharing between fund shareholders and Putnam Management of any economies of scale as may exist in the management of the Putnam funds at that time.

The information examined by the Trustees in connection with their annual contract review for the Putnam funds included information regarding services provided and fees charged by Putnam Management and its affiliates to other clients, including defined benefit pension and profit-sharing plans, sub-advised mutual funds, private funds sponsored by affiliates of Putnam Management, model-only separately managed accounts and Putnam Management’s newly launched exchange-traded funds. This information included, in cases where a product’s investment strategy corresponds with a fund’s strategy, comparisons of those fees with fees charged to the Putnam funds, as well as an assessment of the differences in the services provided to these clients as compared to the services provided to the Putnam funds. The Trustees observed that the differences in fee rates between these clients and the Putnam funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients may reflect, among other things, historical competitive forces operating in separate marketplaces. The Trustees considered the fact that in many cases fee rates across different asset classes are higher on average for mutual funds than for other clients, and the Trustees also considered the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to its other clients. The Trustees did not rely on these comparisons to any significant extent in concluding that the management fees paid by your fund are reasonable.

Investment performance

The quality of the investment process provided by Putnam Management represented a major factor in the Trustees’ evaluation of the quality of services provided by Putnam Management under your fund’s management contract. The Trustees were assisted in their review of Putnam Management’s investment process and performance by the work of the investment oversight committees of the Trustees and the full Board of Trustees, which meet on a regular basis with individual portfolio managers and with senior management of Putnam Management’s Investment Division throughout the year. The Trustees concluded that Putnam Management generally provides a high-quality investment process — based on the experience and skills of the individuals assigned to the management of fund portfolios, the resources made available to them, and in general Putnam Management’s ability to attract and retain high-quality personnel — but also recognized that this does not guarantee favorable investment results for every fund in every time period.

The Trustees considered that, in the aggregate, The Putnam Funds generally performed well in 2020, which Putnam Management characterized as a challenging year with significant volatility and varied market dynamics. On an asset-weighted basis, the Putnam funds ranked in the second quartile of their peers as determined by Lipper Inc. (“Lipper”) for the year ended December 31, 2020 and, on an asset-weighted-basis, delivered a gross return that was 2.3% ahead of their benchmarks in 2020. In addition to the performance of the individual Putnam funds, the Trustees considered, as they had in prior years, the performance of The Putnam Fund complex versus competitor fund complexes. In this regard, the Trustees observed that The Putnam Funds’ relative performance, as reported in the Barron’s/Lipper Fund Families survey, continued to be exceptionally strong over the long term, with The Putnam Funds ranking as the 3rd best performing mutual fund complex out of 44 complexes for the ten-year period, with 2020 marking the fourth consecutive year that The Putnam Funds have ranked in the top ten fund complexes for the ten-year period. The Trustees noted that The Putnam Funds’ performance was solid over the one- and five-year periods, with The Putnam Funds ranking 22nd out of 53 complexes

22 Ultra Short Duration Income Fund 

 


 

and 14th out of 50 complexes, respectively. In addition to the Barron’s/Lipper Fund Families Survey, the Trustees also considered the funds’ ratings assigned by Morningstar Inc., noting that 26 of the funds were four- or five-star rated at the end of 2020 (representing an increase of four funds year-over-year) and that this included seven funds that had achieved a five-star rating (representing an increase of two funds year-over-year). They also noted, however, the disappointing investment performance of some funds for periods ended December 31, 2020 and considered information provided by Putnam Management regarding the factors contributing to the underperformance and actions being taken to improve the performance of these particular funds. The Trustees indicated their intention to continue to monitor closely the performance of those funds and evaluate whether additional actions to address areas of underperformance may be warranted.

For purposes of the Trustees’ evaluation of the Putnam funds’ investment performance, the Trustees generally focus on a competitive industry ranking of each fund’s total net return over a one-year, three-year and five-year period. For a number of Putnam funds with relatively unique investment mandates for which Putnam Management informed the Trustees that meaningful competitive performance rankings are not considered to be available, the Trustees evaluated performance based on their total gross and net returns and comparisons of those returns to the returns of selected investment benchmarks. In the case of your fund, the Trustees considered information about your fund’s total return and its performance relative to its benchmark over the one-year, three-year and five-year periods ended December 31, 2020. Your fund’s class A shares’ return, net of fees and expenses, was positive and exceeded the return of its benchmark over the one-year, three-year and five-year periods ended December 31, 2020. (When considering performance information, shareholders should be mindful that past performance is not a guarantee of future results.)

The Trustees considered Putnam Management’s continued efforts to support fund performance through certain initiatives, including structuring compensation for portfolio managers to enhance accountability for fund performance, emphasizing accountability in the portfolio management process, and affirming its commitment to a fundamental-driven approach to investing. The Trustees noted further that Putnam Management had made selective hires and internal promotions in 2020 to strengthen its investment team.

Brokerage and soft-dollar allocations; investor servicing

The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contract with your fund. These include benefits related to brokerage allocation and the use of soft dollars, whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research services that are expected to be useful to Putnam Management in managing the assets of the fund and of other clients. Subject to policies established by the Trustees, soft dollars generated by these means are used predominantly to acquire brokerage and research services (including third-party research and market data) that enhance Putnam Management’s investment capabilities and supplement Putnam Management’s internal research efforts. The Trustees indicated their continued intent to monitor regulatory and industry developments in this area with the assistance of their Brokerage Committee. In addition, with the assistance of their Brokerage Committee, the Trustees indicated their continued intent to monitor the allocation of the Putnam funds’ brokerage in order to ensure that the principle of seeking best price and execution remains paramount in the portfolio trading process.

Putnam Management may also receive benefits from payments that the funds make to Putnam Management’s affiliates for investor or distribution services. In conjunction with the annual review of your fund’s management and sub-management contracts, the Trustees reviewed your fund’s investor servicing agreement with PSERV and its distributor’s contract and distribution plans with Putnam Retail Management Limited Partnership (“PRM”), both of which are affiliates of Putnam Management. The Trustees concluded that the fees payable by the funds to PSERV and PRM, as applicable, for such services are fair and reasonable in relation to the nature and quality of such services, the fees paid by competitive funds, and the costs incurred by PSERV and PRM, as applicable, in providing such services. Furthermore, the Trustees were of the view that the investor services provided by PSERV were required for the operation of the funds, and that they were of a quality at least equal to those provided by other providers.

Ultra Short Duration Income Fund 23 

 


 

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.

24 Ultra Short Duration Income Fund 

 


 

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Putnam Funds Trust and Shareholders of
Putnam Ultra Short Duration Income Fund:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the fund’s portfolio, of Putnam Ultra Short Duration Income Fund (one of the funds constituting Putnam Funds Trust, referred to hereafter as the “Fund”) as of July 31, 2021, the related statement of operations for the year ended July 31, 2021, the statement of changes in net assets for each of the two years in the period ended July 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (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 July 31, 2021, 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 July 31, 2021 and the financial highlights for each of the periods indicated therein 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 July 31, 2019 and the financial highlights for each of the periods ended on or prior to July 31, 2019 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated September 10, 2019 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 audits. 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 audits 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 audits 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 audits 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 July 31, 2021 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
September 10, 2021

We have served as the auditor of one or more investment companies in the Putnam Investments family of mutual funds since at least 1957. We have not been able to determine the specific year we began serving as auditor.

Ultra Short Duration Income Fund 25 

 


 

The fund’s portfolio 7/31/21
CORPORATE BONDS AND NOTES (53.2%)* Principal
amount
Value
Banking (28.0%)
ABN AMRO Bank NV 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.57%), 0.709%, 8/27/21 (Netherlands)     $77,000,000 $77,027,866
Australia & New Zealand Banking Group, Ltd. 144A sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.87%), 1.02%, 11/23/21 (Australia)     3,000,000 3,007,806
Australia & New Zealand Banking Group, Ltd. 144A sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.49%), 0.639%, 11/21/22 (Australia)     24,180,000 24,329,438
Banco Bilbao Vizcaya Argentaria SA sr. unsec. unsub. notes 0.875%, 9/18/23 (Spain)     28,200,000 28,343,233
Banco Santander SA sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.56%), 1.679%, 4/11/22 (Spain)     19,870,000 20,053,003
Banco Santander SA sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.09%), 1.24%, 2/23/23 (Spain)     8,200,000 8,302,093
Banco Santander SA sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.12%), 1.239%, 4/12/23 (Spain)     36,610,000 37,117,804
Banco Santander SA sr. unsec. unsub. notes 3.50%, 4/11/22 (Spain)     25,349,000 25,908,575
Bank of America Corp. sr. unsec. FRN Ser. GMTN,
(BBA LIBOR USD 3 Month + 0.96%), 1.098%, 7/23/24
    11,340,000 11,503,520
Bank of America Corp. sr. unsec. FRN Ser. MTN, (Bloomberg 3 Month Short Term Bank Yield Index + 0.43%), 0.536%, 5/28/24     71,000,000 71,071,000
Bank of America Corp. sr. unsec. unsub. FRN 3.004%, 12/20/23     16,679,000 17,265,167
Bank of America Corp. sr. unsec. unsub. FRN Ser. MTN, (BBA LIBOR USD 3 Month + 1.16%), 1.294%, 1/20/23     18,815,000 18,909,471
Bank of America Corp. sr. unsec. unsub. FRN Ser. MTN, (BBA LIBOR USD 3 Month + 0.79%), 0.921%, 3/5/24     62,949,000 63,500,902
Bank of Montreal sr. unsec. unsub. FRN Ser. MTN,
(BBA LIBOR USD 3 Month + 0.79%), 0.929%, 8/27/21 (Canada)
    7,500,000 7,504,171
Bank of Montreal sr. unsec. unsub. FRN Ser. MTN, (BBA LIBOR USD 3 Month + 0.57%), 0.716%, 3/26/22 (Canada)     57,966,000 58,187,591
Bank of Montreal sr. unsec. unsub. FRN Ser. MTN, (Secured Overnight Funding Rate + 0.32%), 0.372%, 7/9/24 (Canada)     37,695,000 37,728,549
Bank of Montreal sr. unsec. unsub. FRN Ser. MTN, (Secured Overnight Funding Rate + 0.27%), 0.32%, 4/14/23 (Canada)     28,038,000 28,095,758
Banque Federative du Credit Mutuel SA 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.96%), 1.094%, 7/20/23 (France)     7,635,000 7,761,718
Banque Federative du Credit Mutuel SA 144A sr. unsec. notes 2.125%, 11/21/22 (France)     22,009,000 22,532,113
Banque Federative du Credit Mutuel SA 144A sr. unsec. notes 0.65%, 2/27/24 (France)     35,500,000 35,509,477
Barclays PLC sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.43%), 1.586%, 2/15/23 (United Kingdom)     9,500,000 9,561,559
Barclays PLC sr. unsec. unsub. FRN 4.61%, 2/15/23 (United Kingdom)     63,388,000 64,795,505


26 Ultra Short Duration Income Fund



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Banking cont.
Barclays PLC sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.63%), 1.744%, 1/10/23 (United Kingdom)     $42,803,000 $43,069,206
Barclays PLC sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.38%), 1.536%, 5/16/24 (United Kingdom)     15,271,000 15,538,287
Barclays PLC sr. unsec. unsub. notes 3.20%, 8/10/21 (United Kingdom)     49,385,000 49,413,033
BBVA USA sr. unsec. notes Ser. BKNT, 2.875%, 6/29/22     8,545,000 8,732,793
BNP Paribas SA 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.39%), 0.56%, 8/7/21 (France)     7,526,000 7,526,376
BNP Paribas SA 144A sr. unsec. notes 2.95%, 5/23/22 (France)     21,815,000 22,278,366
BPCE SA 144A company guaranty sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.22%), 1.37%, 5/22/22 (France)     8,035,000 8,100,271
BPCE SA 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.24%), 1.359%, 9/12/23 (France)     61,337,000 62,579,197
BPCE SA 144A sr. unsec. FRN (Secured Overnight Funding Rate + 0.44%), 0.477%, 2/17/22 (France)     46,500,000 46,567,026
BPCE SA 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.30%), 0.433%, 1/14/22 (France)     26,050,000 26,085,194
Canadian Imperial Bank of Commerce sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.80%), 0.85%, 3/17/23 (Canada)     62,781,000 63,407,554
Canadian Imperial Bank of Commerce sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.72%), 0.838%, 6/16/22 (Canada)     6,300,000 6,336,947
Canadian Imperial Bank of Commerce sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.34%), 0.389%, 6/22/23 (Canada)     47,455,000 47,491,066
Canadian Imperial Bank of Commerce sr. unsec. unsub. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.66%), 0.779%, 9/13/23 (Canada)     20,445,000 20,686,409
Capital One Bank USA NA sr. unsec. FRN 2.014%, 1/27/23     19,127,000 19,280,984
Capital One NA sr. unsec. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 1.15%), 1.279%, 1/30/23     8,310,000 8,351,171
Capital One NA sr. unsec. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.82%), 0.982%, 8/8/22     9,900,000 9,965,839
Citigroup, Inc. sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.43%), 1.565%, 9/1/23     23,996,000 24,305,283
Citigroup, Inc. sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.02%), 1.158%, 6/1/24     69,168,000 70,144,147
Citigroup, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.19%), 1.366%, 8/2/21     28,093,000 28,093,000
Citigroup, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.07%), 1.198%, 12/8/21     32,745,000 32,837,691
Citigroup, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.96%), 1.085%, 4/25/22     28,085,000 28,247,742
Citizens Bank NA sr. unsec. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.95%), 1.096%, 3/29/23     8,675,000 8,776,047
Citizens Bank NA sr. unsec. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.81%), 0.951%, 5/26/22     9,960,000 10,021,090


Ultra Short Duration Income Fund 27



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Banking cont.
Citizens Bank NA sr. unsec. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.72%), 0.874%, 2/14/22     $43,000,000 $43,133,215
Cooperatieve Rabobank UA sr. unsec. FRN (Secured Overnight Funding Rate + 0.30%), 0.35%, 1/12/24 (Netherlands)     46,000,000 46,079,459
Cooperatieve Rabobank UA 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.86%), 1.006%, 9/26/23 (Netherlands)     27,341,000 27,716,485
Cooperative Rabobank UA sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.83%), 0.949%, 1/10/22 (Netherlands)     29,100,000 29,206,755
Credit Agricole SA/London 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.02%), 1.145%, 4/24/23 (United Kingdom)     65,372,000 66,293,009
Credit Agricole SA/London 144A sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.43%), 1.549%, 1/10/22 (United Kingdom)     10,818,000 10,882,785
Credit Suisse AG/New York, NY sr. unsec. FRN (Secured Overnight Funding Rate + 0.45%), 0.48%, 2/4/22     51,815,000 51,889,211
Credit Suisse Group AG sr. unsec. FRN (Secured Overnight Funding Rate + 0.39%), 0.44%, 2/2/24     33,500,000 33,488,208
Danske Bank A/S 144A sr. unsec. notes 5.00%, 1/12/22 (Denmark)     9,641,000 9,826,984
DNB Bank ASA 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.62%), 0.751%, 12/2/22 (Norway)     46,725,000 47,037,311
Federation des Caisses Desjardins du Quebec 144A sr. unsec. FRN (Secured Overnight Funding Rate + 0.43%), 0.469%, 5/21/24 (Canada)     41,990,000 42,049,206
ING Bank NV 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.88%), 1.036%, 8/15/21 (Netherlands)     31,679,000 31,689,251
ING Groep NV sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.00%), 1.146%, 10/2/23 (Netherlands)     68,129,000 69,260,351
ING Groep NV sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.15%), 1.296%, 3/29/22 (Netherlands)     34,003,000 34,255,914
ING Groep NV sr. unsec. unsub. notes 3.15%, 3/29/22 (Netherlands)     3,337,000 3,401,435
JPMorgan Chase & Co. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 1.00%), 1.126%, 1/15/23
    13,000,000 13,054,782
JPMorgan Chase & Co. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 0.89%), 1.028%, 7/23/24
    28,880,000 29,281,089
JPMorgan Chase & Co. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 0.90%), 1.025%, 4/25/23
    10,291,000 10,367,069
JPMorgan Chase & Co. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 0.73%), 0.868%, 4/23/24
    60,212,000 60,750,871
JPMorgan Chase & Co. sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.58%), 0.629%, 3/16/24     13,994,000 14,084,453
JPMorgan Chase & Co. sr. unsec. unsub. FRN 2.776%, 4/25/23     11,870,000 12,081,289
JPMorgan Chase & Co. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 1.23%), 1.355%, 10/24/23
    52,951,000 53,657,338
KeyBank NA sr. unsec. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.81%), 0.96%, 11/22/21     9,905,000 9,929,797


28 Ultra Short Duration Income Fund



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Banking cont.
KeyBank NA sr. unsec. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.66%), 0.786%, 2/1/22     $40,000,000 $40,130,002
KeyBank NA sr. unsec. FRN Ser. BKNT, 0.423%, 1/3/24     28,250,000 28,282,088
KeyBank NA sr. unsec. FRN Ser. BKNT, (Secured Overnight Funding Rate + 0.34%), 0.39%, 1/3/24     54,980,000 55,046,599
KeyBank NA sr. unsec. FRN Ser. BKNT, (Secured Overnight Funding Rate + 0.32%), 0.37%, 6/14/24     27,540,000 27,602,722
Lloyds Banking Group PLC sr. unsec. FRN 1.326%, 6/15/23 (United Kingdom)     44,200,000 44,529,507
Lloyds Banking Group PLC sr. unsec. unsub. FRN 2.858%, 3/17/23 (United Kingdom)     30,389,000 30,855,865
Lloyds Banking Group PLC sr. unsec. unsub. FRN 0.695%, 5/11/24 (United Kingdom)     37,392,000 37,535,303
Mitsubishi UFJ Financial Group, Inc. sr. unsec. FRN
(BBA LIBOR USD 3 Month + 0.86%), 0.985%, 7/26/23 (Japan)
    16,000,000 16,204,471
Mitsubishi UFJ Financial Group, Inc. sr. unsec. FRN
(BBA LIBOR USD 3 Month + 0.74%), 0.871%, 3/2/23 (Japan)
    16,300,000 16,445,205
Mitsubishi UFJ Financial Group, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.06%), 1.179%, 9/13/21 (Japan)     53,980,000 54,043,153
Mitsubishi UFJ Financial Group, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.92%), 1.07%, 2/22/22 (Japan)     23,818,000 23,931,711
Mitsubishi UFJ Financial Group, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.79%), 0.915%, 7/25/22 (Japan)     20,138,000 20,273,741
Mizuho Financial Group, Inc. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.99%), 1.109%, 7/10/24 (Japan)     17,800,000 18,076,206
Mizuho Financial Group, Inc. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.94%), 1.075%, 2/28/22 (Japan)     45,569,000 45,798,614
Mizuho Financial Group, Inc. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 1.14%), 1.259%, 9/13/21 (Japan)
    60,305,000 60,379,132
Mizuho Financial Group, Inc. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 0.88%), 1.005%, 9/11/22 (Japan)
    52,440,000 52,896,737
National Australia Bank, Ltd. 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.71%), 0.886%, 11/4/21 (Australia)     27,500,000 27,547,318
National Australia Bank, Ltd. 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.58%), 0.715%, 9/20/21 (Australia)     28,200,000 28,218,089
National Australia Bank, Ltd. 144A sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.41%), 0.529%, 12/13/22 (Australia)     36,650,000 36,833,243
National Bank of Canada company guaranty sr. unsec. FRN 0.90%, 8/15/23 (Canada)     48,000,000 48,220,808
Nationwide Building Society sr. unsec. FRN 3.622%, 4/26/23 (United Kingdom)     68,804,000 70,398,091


Ultra Short Duration Income Fund 29



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Banking cont.
NatWest Group PLC sr. unsec. unsub. FRN 3.498%, 5/15/23 (United Kingdom)     $56,615,000 $57,947,454
NatWest Group PLC sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 1.55%), 1.697%,
6/25/24 (United Kingdom)
    25,070,000 25,614,479
NatWest Group PLC sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 1.47%), 1.626%,
5/15/23 (United Kingdom)
    76,404,000 77,149,237
Nordea Bank ABP 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.94%), 1.075%, 8/30/23 (Finland)     3,187,000 3,234,079
PNC Bank NA sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.43%), 0.553%, 12/9/22     48,700,000 48,767,467
PNC Bank NA sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.33%), 0.475%, 2/24/23     46,065,000 46,132,093
Royal Bank of Canada sr. unsec. FRN Ser. GMTN,
(BBA LIBOR USD 3 Month + 0.36%), 0.494%, 1/17/23 (Canada)
    42,500,000 42,682,944
Royal Bank of Canada sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.36%), 0.41%, 7/29/24 (Canada)     37,500,000 37,565,550
Royal Bank of Canada sr. unsec. unsub. FRN Ser. GMTN, (BBA LIBOR USD 3 Month + 0.47%), 0.60%, 4/29/22 (Canada)     18,200,000 18,256,970
Royal Bank of Canada sr. unsec. unsub. FRN Ser. MTN, (Secured Overnight Funding Rate + 0.45%), 0.50%, 10/26/23 (Canada)     27,919,000 28,139,281
Royal Bank of Canada sr. unsec. unsub. notes (Secured Overnight Funding Rate + 0.40%), 0.43%, 8/5/22 (Canada)     27,800,000 27,870,709
Santander Holdings USA, Inc. sr. unsec. notes 4.45%, 12/3/21     23,191,000 23,423,424
Santander UK Group Holdings PLC company guaranty sr. unsec. unsub. notes 2.875%, 8/5/21 (United Kingdom)     29,043,000 29,047,061
Skandinaviska Enskilda Banken AB 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.65%), 0.764%, 12/12/22 (Sweden)     20,000,000 20,150,763
Skandinaviska Enskilda Banken AB 144A sr. unsec. notes 0.55%, 9/1/23 (Sweden)     23,478,000 23,527,562
Skandinaviska Enskilda Banken AB 144A sr. unsec. notes (BBA LIBOR USD 3 Month + 0.32%), 0.455%, 9/1/23 (Sweden)     47,957,000 48,080,975
Standard Chartered PLC 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.20%), 1.328%, 9/10/22 (United Kingdom)     66,750,000 66,820,860
Sumitomo Mitsui Financial Group, Inc. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.80%), 0.926%, 10/16/23 (Japan)     21,997,000 22,281,354
Sumitomo Mitsui Financial Group, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.14%), 1.274%, 10/19/21 (Japan)     33,620,000 33,700,921


30 Ultra Short Duration Income Fund



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Banking cont.
Sumitomo Mitsui Financial Group, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.97%), 1.089%, 1/11/22 (Japan)     $25,439,000 $25,539,608
Sumitomo Mitsui Financial Group, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.78%), 0.899%, 7/12/22 (Japan)     10,614,000 10,674,142
Sumitomo Mitsui Trust Bank, Ltd. 144A sr. unsec. notes 0.80%, 9/12/23 (Japan)     47,459,000 47,817,033
SunTrust Bank sr. unsec. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.59%), 0.766%, 8/2/22     2,527,000 2,527,000
SunTrust Bank sr. unsec. unsub. FRN Ser. BKNT,
(BBA LIBOR USD 3 Month + 0.59%), 0.746%, 5/17/22
    36,600,000 36,757,402
Svenska Handelsbanken AB 144A sr. unsec. notes 0.625%, 6/30/23 (Sweden)     17,000,000 17,106,346
Swedbank AB 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.70%), 0.819%, 3/14/22 (Sweden)     9,300,000 9,332,736
Swedbank AB 144A sr. unsec. notes 1.30%, 6/2/23 (Sweden)     19,500,000 19,800,710
Swedbank AB 144A sr. unsec. notes 0.60%, 9/25/23 (Sweden)     9,653,000 9,669,989
Synovus Bank sr. unsec. FRN 2.289%, 2/10/23     13,485,000 13,581,337
Toronto-Dominion Bank (The) sr. unsec. unsub. FRN Ser. MTN, (Secured Overnight Funding Rate + 0.48%), 0.53%, 1/27/23 (Canada)     57,295,000 57,570,081
Toronto-Dominion Bank (The) sr. unsec. unsub. FRN Ser. MTN, (BBA LIBOR USD 3 Month + 0.35%), 0.488%, 7/22/22 (Canada)     42,000,000 41,951,070
Toronto-Dominion Bank (The) sr. unsec. unsub. notes Ser. MTN, 0.45%, 9/11/23 (Canada)     11,127,000 11,142,282
Truist Bank sr. unsec. FRN Ser. BKNT, (Secured Overnight Funding Rate + 0.73%), 0.776%, 3/9/23     38,890,000 39,178,696
Truist Financial Corp. sr. unsec. unsub. FRB Ser. MTN, (BBA LIBOR USD 3 Month + 0.65%), 0.795%, 4/1/22     26,180,000 26,272,236
U.S. Bank NA sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.40%), 0.523%, 12/9/22     47,500,000 47,745,195
U.S. Bank NA sr. unsec. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.44%), 0.59%, 5/23/22     47,990,000 48,143,924
U.S. Bank NA sr. unsec. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.38%), 0.536%, 11/16/21     7,210,000 7,216,167
UBS AG/London 144A sr. unsec. FRN (Secured Overnight Funding Rate + 0.36%), 0.391%, 2/9/24 (United Kingdom)     47,500,000 47,626,635
UBS AG/London 144A sr. unsec. notes 1.75%, 4/21/22 (United Kingdom)     9,355,000 9,447,878
UniCredit SpA 144A sr. unsec. notes 6.572%, 1/14/22 (Italy)     28,670,000 29,402,837
UniCredit SpA 144A sr. unsec. unsub. notes 3.75%, 4/12/22 (Italy)     68,691,000 70,147,724
US Bancorp sr. unsec. unsub. FRN Ser. MTN, (BBA LIBOR USD 3 Month + 0.64%), 0.765%, 1/24/22     13,507,000 13,540,818
Wells Fargo & Co. sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.23%), 1.359%, 10/31/23     53,206,000 53,903,193


Ultra Short Duration Income Fund 31



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Banking cont.
Wells Fargo & Co. sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.11%), 1.235%, 1/24/23     $25,159,000 $25,283,635
Wells Fargo & Co. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.90%), 1.056%, 5/17/23     9,100,000 9,174,593
Wells Fargo Bank NA sr. unsec. FRN Ser. BKNT, 2.082%, 9/9/22     24,300,000 24,345,464
Wells Fargo Bank NA sr. unsec. FRN Ser. BKNT,
(BBA LIBOR USD 3 Month + 0.51%), 0.648%, 10/22/21
    35,700,000 35,725,614
Westpac Banking Corp. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.85%), 0.969%, 1/11/22 (Australia)     21,400,000 21,478,043
Westpac Banking Corp. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.39%), 0.519%, 1/13/23 (Australia)     17,300,000 17,388,292
4,388,399,773
Basic materials (0.4%)
FMC Corp. sr. unsec. unsub. notes 3.95%, 2/1/22     11,460,000 11,558,720
Georgia-Pacific, LLC 144A sr. unsec. notes 0.625%, 5/15/24     23,275,000 23,334,540
International Flavors & Fragrances, Inc. 144A sr. unsec. notes 0.697%, 9/15/22     14,000,000 14,021,320
Nutrien, Ltd. sr. unsec. notes 1.90%, 5/13/23 (Canada)     15,600,000 15,973,717
64,888,297
Capital goods (0.9%)
Honeywell International, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.37%), 0.532%, 8/8/22     28,000,000 28,118,322
Honeywell International, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.23%), 0.38%, 8/19/22     17,500,000 17,502,609
L3Harris Technologies, Inc. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 0.75%), 0.878%, 3/10/23
    64,900,000 65,341,539
Otis Worldwide Corp. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.45%), 0.595%, 4/5/23     37,823,000 37,825,645
148,788,115
Communication services (0.7%)
American Tower Corp. sr. unsec. notes 0.60%, 1/15/24 R     21,400,000 21,375,907
AT&T, Inc. sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.64%), 0.69%, 3/25/24     33,300,000 33,376,252
Verizon Communications, Inc. sr. unsec. FRN (Secured Overnight Funding Rate + 0.50%), 0.55%, 3/22/24     30,615,000 30,818,838
Verizon Communications, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.00%), 1.118%, 3/16/22     24,750,000 24,896,515
110,467,512
Conglomerates (0.5%)
Siemens Financieringsmaatschappij NV 144A company guaranty sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.61%), 0.728%, 3/16/22 (Netherlands)     37,850,000 38,005,618
Siemens Financieringsmaatschappij NV 144A company guaranty sr. unsec. FRN (Secured Overnight Funding Rate + 0.43%), 0.48%, 3/11/24 (Netherlands)     42,200,000 42,481,010
80,486,628


32 Ultra Short Duration Income Fund



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Consumer cyclicals (1.6%)
7-Eleven, Inc. 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.45%), 0.612%, 8/10/22     $23,250,000 $23,255,839
BMW US Capital, LLC 144A company guaranty sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.50%), 0.66%, 8/13/21     20,406,000 20,410,161
BMW US Capital, LLC 144A company guaranty sr. unsec. FRN (Secured Overnight Funding Rate + 0.53%), 0.58%, 4/1/24     24,200,000 24,407,007
Interpublic Group of Cos., Inc. (The) sr. unsec. sub. notes 3.75%, 10/1/21     1,730,000 1,739,602
Lennar Corp. company guaranty sr. unsec. unsub. notes 4.125%, 1/15/22     15,560,000 15,669,854
Toyota Motor Credit Corp. sr. unsec. unsub. FRN Ser. MTN, (BBA LIBOR USD 3 Month + 0.29%), 0.428%, 10/7/21     32,100,000 32,114,276
Toyota Motor Credit Corp. sr. unsec. unsub. FRN Ser. MTN, (Secured Overnight Funding Rate + 0.34%), 0.39%, 10/14/22     18,500,000 18,549,395
Toyota Motor Credit Corp. sr. unsec. unsub. FRN Ser. MTN, (Secured Overnight Funding Rate + 0.33%), 0.38%, 1/11/24     55,600,000 55,812,315
Toyota Motor Credit Corp. sr. unsec. unsub. FRN Ser. MTN, (Secured Overnight Funding Rate + 0.32%), 0.37%, 4/6/23     32,700,000 32,788,617
Walt Disney Co. (The) company guaranty sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.25%), 0.385%, 9/1/21     26,000,000 26,006,353
250,753,419
Consumer finance (2.3%)
Air Lease Corp. sr. unsec. FRN Ser. MTN, (BBA LIBOR USD 3 Month + 0.35%), 0.484%, 12/15/22     46,500,000 46,541,260
American Express Co. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.75%), 0.868%, 8/3/23     14,155,000 14,314,223
American Express Co. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.65%), 0.789%, 2/27/23     5,901,000 5,944,799
American Express Co. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.60%), 0.776%, 11/5/21     22,853,000 22,870,882
American Express Co. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.61%), 0.736%, 8/1/22     2,600,000 2,611,914
American Express Co. sr. unsec. notes 2.50%, 8/1/22     9,300,000 9,492,213
American Express Co. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.62%), 0.775%, 5/20/22     61,545,000 61,805,065
American Honda Finance Corp. sr. unsec. FRN Ser. MTN, (BBA LIBOR USD 3 Month + 0.42%), 0.548%, 9/8/23     19,000,000 19,109,773
American Honda Finance Corp. sr. unsec. FRN Ser. MTN, (BBA LIBOR USD 3 Month + 0.37%), 0.532%, 5/10/23     69,262,000 69,526,589
Capital One Financial Corp. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 0.95%), 1.073%, 3/9/22
    4,355,000 4,374,823
Capital One Financial Corp. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 0.72%), 0.849%, 1/30/23
    39,577,000 39,861,638
Capital One Financial Corp. sr. unsec. unsub. notes 3.05%, 3/9/22     7,680,000 7,791,416


Ultra Short Duration Income Fund 33



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Consumer finance cont.
Discover Financial Services sr. unsec. unsub. notes 5.20%, 4/27/22     $10,064,000 $10,416,128
Synchrony Financial sr. unsec. notes 2.85%, 7/25/22     38,670,000 39,513,752
354,174,475
Consumer staples (1.0%)
Constellation Brands, Inc. company guaranty sr. unsec. notes 3.20%, 2/15/23     2,480,000 2,581,970
ERAC USA Finance, LLC 144A company guaranty sr. unsec. notes 4.50%, 8/16/21     2,825,000 2,829,213
General Mills, Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.01%), 1.144%, 10/17/23     11,535,000 11,690,530
Keurig Dr Pepper, Inc. company guaranty sr. unsec. notes 0.75%, 3/15/24     13,974,000 13,984,914
McDonald’s Corp. sr. unsec. FRN Ser. MTN, (BBA LIBOR USD 3 Month + 0.43%), 0.562%, 10/28/21     53,080,000 53,133,202
Mondelez International Holdings Netherlands BV 144A company guaranty sr. unsec. notes 2.125%, 9/19/22 (Netherlands)     6,790,000 6,925,707
Mondelez International Holdings Netherlands BV 144A company guaranty sr. unsec. unsub. notes 2.00%, 10/28/21 (Netherlands)     26,318,000 26,388,795
Mondelez International, Inc. company guaranty sr. unsec. sub. notes 0.625%, 7/1/22     25,500,000 25,601,627
Nestle Holdings, Inc. 144A company guaranty sr. unsec. notes 0.375%, 1/15/24     13,931,000 13,892,790
157,028,748
Energy (0.9%)
Chevron USA, Inc. company guaranty sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.20%), 0.36%, 8/11/23     42,293,000 42,398,150
Chevron USA, Inc. company guaranty sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.11%), 0.278%, 8/12/22     28,196,000 28,230,135
Plains All American Pipeline LP/PAA Finance Corp. sr. unsec. unsub. notes 3.65%, 6/1/22     26,001,000 26,463,293
Williams Cos Inc/The sr. unsec. notes 4.00%, 11/15/21     16,388,000 16,407,909
Williams Cos., Inc. (The) sr. unsec. unsub. notes 7.875%, 9/1/21     16,923,000 17,021,357
Williams Partners LP sr. unsec. sub. notes 3.60%, 3/15/22     3,723,000 3,776,394
134,297,238
Financial (4.2%)
Bank of Nova Scotia (The) sr. unsec. FRN (Secured Overnight Funding Rate + 0.45%), 0.495%, 4/15/24 (Canada)     74,000,000 74,332,792
Bank of Nova Scotia (The) sr. unsec. notes 1.625%, 5/1/23 (Canada)     5,040,000 5,156,827
Bank of Nova Scotia (The) sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.38%), 0.43%, 7/31/24 (Canada)     46,700,000 46,700,234
Bank of Nova Scotia (The) sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.28%), 0.33%, 6/23/23 (Canada)     25,700,000 25,718,504


34 Ultra Short Duration Income Fund



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Financial cont.
Bank of Nova Scotia (The) sr. unsec. unsub. FRN Ser. BKNT, (BBA LIBOR USD 3 Month + 0.62%), 0.755%, 9/19/22 (Canada)     $5,096,000 $5,129,500
Credit Suisse Group AG 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.24%), 1.359%, 6/12/24 (Switzerland)     56,565,000 57,445,884
Intercontinental Exchange, Inc. sr. unsec. FRN
(BBA LIBOR USD 3 Month + 0.65%), 0.769%, 6/15/23
    65,500,000 65,419,304
Macquarie Bank, Ltd. 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.45%), 0.60%, 11/24/21 (Australia)     33,250,000 33,290,362
Macquarie Group, Ltd. 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.35%), 1.496%, 3/27/24 (Australia)     28,323,000 28,795,286
Macquarie Group, Ltd. 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.02%), 1.155%, 11/28/23 (Australia)     6,582,000 6,641,227
Nasdaq, Inc. sr. unsec. notes 0.445%, 12/21/22     14,000,000 14,006,010
Secured Forward-Backed Note 2021-05 144A sr. FRN (BBA LIBOR USD 3 Month + 0.35%), 0.496%, 6/28/22     82,500,000 82,524,750
Secured Forward-Backed Note 2021-05 144A sr. FRN (BBA LIBOR USD 3 Month + 0.30%), 0.446%, 12/28/21     52,500,000 52,510,500
Secured Forward-Backed Note 2021-05 144A sr. unsub. FRN (BBA LIBOR USD 3 Month + 0.37%), 0.516%, 9/28/22     30,000,000 30,012,000
UBS Group AG 144A sr. unsec. FRN 2.859%, 8/15/23 (Switzerland)     46,684,000 47,831,061
UBS Group AG 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.22%), 1.37%, 5/23/23 (Switzerland)     15,030,000 15,164,065
UBS Group AG 144A sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.95%), 1.106%, 8/15/23 (Switzerland)     50,313,000 50,737,987
UBS Group Funding (Switzerland) AG 144A company guaranty sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.53%), 1.656%, 2/1/22 (Switzerland)     20,587,000 20,745,426
662,161,719
Health care (2.4%)
AbbVie, Inc. sr. unsec. FRN 0.799%, 11/21/22     22,961,000 23,107,293
AbbVie, Inc. sr. unsec. FRN 0.61%, 11/19/21     37,000,000 37,042,397
AbbVie, Inc. sr. unsec. notes 3.375%, 11/14/21     9,250,000 9,325,258
AbbVie, Inc. sr. unsec. sub. notes 5.00%, 12/15/21     20,984,000 21,103,918
AbbVie, Inc. sr. unsec. sub. notes 2.15%, 11/19/21     15,817,000 15,909,273
AstraZeneca PLC sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.67%), 0.821%, 8/17/23 (United Kingdom)     36,320,000 36,666,652
Becton Dickinson and Co. sr. unsec. FRN (BBA LIBOR USD 3 Month + 1.03%), 1.161%, 6/6/22     45,451,000 45,799,966
Bristol-Myers Squibb Co. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.38%), 0.536%, 5/16/22     9,300,000 9,326,571
Cigna Corp. company guaranty sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.89%), 1.016%, 7/15/23     64,462,000 65,289,901
Gilead Sciences, Inc. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.15%), 0.275%, 9/17/21     19,000,000 19,002,762
Gilead Sciences, Inc. sr. unsec. notes 0.75%, 9/29/23     28,000,000 28,016,128
Stryker Corp. sr. unsec. notes 0.60%, 12/1/23     14,000,000 14,001,638
Zoetis, Inc. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.44%), 0.595%, 8/20/21     60,480,000 60,492,371
385,084,128


Ultra Short Duration Income Fund 35



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Insurance (4.1%)
AIG Global Funding 144A sr. unsub. FRN (Secured Overnight Funding Rate + 0.38%), 0.427%, 12/15/23     $37,000,000 $37,037,078
Jackson National Life Global Funding 144A FRN (Secured Overnight Funding Rate + 0.60%), 0.65%, 1/6/23     46,750,000 46,994,950
Jackson National Life Global Funding 144A sr. FRN
(BBA LIBOR USD 3 Month + 0.73%), 0.876%, 6/27/22
    33,784,000 33,970,164
MassMutual Global Funding II 144A FRN (Secured Overnight Funding Rate + 0.36%), 0.41%, 4/12/24     74,780,000 74,992,792
MassMutual Global Funding II 144A notes 2.25%, 7/1/22     7,440,000 7,581,457
MET Tower Global Funding 144A FRN (Secured Overnight Funding Rate + 0.55%), 0.60%, 1/17/23     13,300,000 13,384,867
MET Tower Global Funding 144A notes 0.55%, 7/13/22     23,000,000 23,055,346
Metropolitan Life Global Funding I 144A FRN (Secured Overnight Funding Rate + 0.57%), 0.62%, 1/13/23     31,350,000 31,551,894
Metropolitan Life Global Funding I 144A FRN (Secured Overnight Funding Rate + 0.32%), 0.37%, 1/7/24     27,300,000 27,362,927
Metropolitan Life Global Funding I 144A notes 2.40%, 6/17/22     7,400,000 7,538,824
New York Life Global Funding 144A FRN (BBA LIBOR USD 3 Month + 0.52%), 0.648%, 6/10/22     47,550,000 47,765,867
New York Life Global Funding 144A FRN (Secured Overnight Funding Rate + 0.36%), 0.41%, 10/21/23     9,500,000 9,530,571
New York Life Global Funding 144A FRN (Secured Overnight Funding Rate + 0.22%), 0.27%, 2/2/23     27,255,000 27,268,682
New York Life Global Funding 144A sr. FRN (BBA LIBOR USD 3 Month + 0.28%), 0.414%, 1/21/22     42,000,000 42,066,119
New York Life Global Funding 144A sr. notes (BBA LIBOR USD 3 Month + 0.28%), 0.399%, 1/10/23     56,750,000 56,907,839
Northwestern Mutual Global Funding 144A FRN (Secured Overnight Funding Rate + 0.33%), 0.38%, 3/25/24     27,995,000 28,045,263
Pacific Life Global Funding II 144A company guaranty sr. notes 0.50%, 9/23/23     28,215,000 28,332,525
Pacific Life Global Funding II 144A unsec. FRN (Secured Overnight Funding Rate + 0.38%), 0.43%, 4/12/24     47,055,000 47,106,422
Principal Life Global Funding II 144A FRN (Secured Overnight Funding Rate + 0.45%), 0.50%, 4/12/24     28,000,000 28,088,928
Protective Life Global Funding 144A notes 0.631%, 10/13/23     11,851,000 11,901,737
Trinity Acquisition PLC company guaranty sr. unsec. unsub. notes 3.50%, 9/15/21 (United Kingdom)     12,818,000 12,831,644
643,315,896
Investment banking/Brokerage (3.6%)
Ares Capital Corp. sr. unsec. notes 3.625%, 1/19/22     13,057,000 13,197,042
Charles Schwab Corp. (The) sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.50%), 0.55%, 3/18/24     60,160,000 60,627,117
Deutsche Bank AG sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 1.23%), 1.369%, 2/27/23 (Germany)     19,725,000 19,915,105
Deutsche Bank AG sr. unsec. unsub. notes 4.25%, 10/14/21 (Germany)     88,985,000 89,658,616


36 Ultra Short Duration Income Fund



CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Investment banking/Brokerage cont.
Goldman Sachs Group, Inc. (The) sr. unsec. FRN
(BBA LIBOR USD 3 Month + 1.05%), 1.181%, 6/5/23
    $7,263,000 $7,313,610
Goldman Sachs Group, Inc. (The) sr. unsec. FRN (Secured Overnight Funding Rate + 0.58%), 0.624%, 3/8/24     37,850,000 37,975,822
Goldman Sachs Group, Inc. (The) sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.78%), 0.909%, 10/31/22     533,000 533,852
Goldman Sachs Group, Inc. (The) sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.75%), 0.90%, 2/23/23     63,153,000 63,694,349
Goldman Sachs Group, Inc. (The) sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.00%), 0.575%, 11/17/23     19,200,000 19,251,884
Goldman Sachs Group, Inc. (The) sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.50%), 0.547%, 9/10/24     37,185,000 37,203,730
Goldman Sachs Group, Inc. (The) sr. unsec. unsub. notes 0.481%, 1/27/23     16,920,000 16,900,711
Morgan Stanley sr. unsec. FRN Ser. GMTN, (Secured Overnight Funding Rate + 0.70%), 0.75%, 1/20/23     29,940,000 30,020,268
Morgan Stanley sr. unsec. FRN Ser. MTN, 0.56%, 11/10/23     18,500,000 18,531,553
Morgan Stanley sr. unsec. FRN Ser. MTN, 0.529%, 1/25/24     23,000,000 23,006,404
Morgan Stanley sr. unsec. unsub. FRN Ser. GMTN,
(BBA LIBOR USD 3 Month + 1.22%), 1.382%, 5/8/24
    62,439,000 63,535,799
TD Ameritrade Holding Corp. sr. unsec. FRN (BBA LIBOR USD 3 Month + 0.43%), 0.556%, 11/1/21     70,400,000 70,447,899
571,813,761
Real estate (0.2%)
Public Storage sr. unsec. FRN (Secured Overnight Funding Rate + 0.47%), 0.52%, 4/23/24     28,100,000 28,143,049
28,143,049
Technology (0.1%)
Fidelity National Information Services, Inc. sr. unsec. notes 0.375%, 3/1/23     14,000,000 14,004,191
VMware, Inc. sr. unsec. notes 2.95%, 8/21/22     3,856,000 3,948,938
17,953,129
Utilities and power (2.3%)
American Electric Power Co., Inc. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.48%), 0.606%, 11/1/23     18,500,000 18,512,808
American Electric Power Co., Inc. sr. unsec. unsub. notes 0.75%, 11/1/23     9,500,000 9,507,113
Atmos Energy Corp. sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.38%), 0.503%, 3/9/23     18,700,000 18,704,842
Dominion Energy, Inc. jr. unsec. sub. notes 2.715%, 8/15/21     10,451,000 10,455,494
Dominion Energy, Inc. sr. unsec. unsub. FRN Ser. D,
(BBA LIBOR USD 3 Month + 0.53%), 0.649%, 9/15/23
    20,688,000 20,699,498
Duke Energy Corp. sr. unsec. FRN (Secured Overnight Funding Rate + 0.25%), 0.296%, 6/10/23     18,629,000 18,631,939
Duke Energy Corp. sr. unsec. unsub. notes (BBA LIBOR USD 3 Month + 0.65%), 0.775%, 3/11/22     28,667,000 28,767,573


Ultra Short Duration Income Fund 37




CORPORATE BONDS AND NOTES (53.2%)* cont. Principal
amount
Value
Utilities and power cont.
Duke Energy Florida, LLC sr. unsec. FRN Ser. A,
(BBA LIBOR USD 3 Month + 0.25%), 0.391%, 11/26/21
    $14,825,000 $14,833,497
Duke Energy Progress, LLC sr. unsec. unsub. FRN Ser. A, (BBA LIBOR USD 3 Month + 0.18%), 0.335%, 2/18/22     19,200,000 19,200,347
Enbridge, Inc. company guaranty sr. unsec. FRN (Secured Overnight Funding Rate + 0.40%), 0.435%, 2/17/23 (Canada)     18,620,000 18,662,100
Florida Power & Light Co. sr. unsec. unsub. FRN
(BBA LIBOR USD 3 Month + 0.38%), 0.512%, 7/28/23
    28,390,000 28,391,280
NextEra Energy Capital Holdings, Inc. company guaranty sr. unsec. unsub. FRN (Secured Overnight Funding Rate + 0.54%), 0.581%, 3/1/23     18,700,000 18,789,498
NextEra Energy Capital Holdings, Inc. company guaranty sr. unsec. unsub. FRN (BBA LIBOR USD 3 Month + 0.27%), 0.42%, 2/22/23     60,000,000 60,007,502
ONEOK Partners LP company guaranty sr. unsec. unsub. notes 3.375%, 10/1/22     6,520,000 6,688,913
Pacific Gas and Electric Co. notes 1.75%, 6/16/22     19,282,000 19,255,533
PPL Electric Utilities Corp. sr. FRN (Secured Overnight Funding Rate + 0.33%), 0.381%, 6/24/24     7,765,000 7,768,572
PPL Electric Utilities Corp. sr. unsub. FRN (BBA LIBOR USD 3 Month + 0.25%), 0.396%, 9/28/23     9,000,000 9,001,723
Public Service Enterprise Group, Inc. sr. unsec. unsub. notes 2.00%, 11/15/21     32,058,000 32,171,210
Xcel Energy, Inc. sr. unsec. notes 0.50%, 10/15/23     9,189,000 9,199,915
369,249,357
Total corporate bonds and notes (cost $8,349,060,518) $8,367,005,244

COMMERCIAL PAPER (26.2%)* Yield (%) Maturity
date
Principal
amount
Value
Alexandria Real Estate Equities, Inc. 0.150 8/4/21 $77,000,000 $76,998,182
Amcor Flexibles North America, Inc. 0.180 8/20/21 50,000,000 49,995,829
Amcor Flexibles North America, Inc. 0.180 8/16/21 21,000,000 20,998,483
Amcor Flexibles North America, Inc. 0.160 8/19/21 23,000,000 22,998,134
American Electric Power Co., Inc. 0.200 8/11/21 20,000,000 19,999,087
American Electric Power Co., Inc. 0.200 8/9/21 25,000,000 24,999,063
American Honda Finance Corp. 0.200 9/23/21 19,300,000 19,294,309
American Honda Finance Corp. 0.180 10/13/21 25,000,000 24,989,583
American Honda Finance Corp. 0.150 8/18/21 15,110,000 15,108,939
Arrow Electronics, Inc. 0.268 8/11/21 44,000,000 43,995,087
AT&T, Inc. 0.432 12/14/21 23,250,000 23,234,870
AT&T, Inc. 0.414 12/15/21 32,500,000 32,478,572
AT&T, Inc. 0.402 12/16/21 46,500,000 46,468,939
AT&T, Inc. 0.381 11/18/21 46,500,000 46,477,490
Aviation Capital Group, LLC 0.330 8/30/21 9,000,000 8,999,070
Aviation Capital Group, LLC 0.256 8/18/21 33,500,000 33,498,179
Aviation Capital Group, LLC 0.250 8/13/21 15,000,000 14,999,481
Aviation Capital Group, LLC 0.250 8/9/21 27,000,000 26,999,370
Aviation Capital Group, LLC 0.237 8/3/21 27,500,000 27,499,756


38 Ultra Short Duration Income Fund



COMMERCIAL PAPER (26.2%)* cont. Yield (%) Maturity
date
Principal
amount
Value
Baker Hughes Holdings, LLC 0.200 9/7/21 $70,000,000 $69,989,383
Banco Santander SA (Spain) 0.573 8/16/21 15,250,000 15,249,417
Banco Santander SA (Spain) 0.533 8/23/21 9,400,000 9,399,461
Cabot Corp. 0.300 8/31/21 51,015,000 51,008,153
Cabot Corp. 0.280 8/9/21 49,000,000 48,998,176
Cabot Corp. 0.280 8/4/21 12,000,000 11,999,782
Cabot Corp. 0.230 8/5/21 44,985,000 44,984,010
Cigna Corp. 0.401 9/23/21 5,000,000 4,998,373
Conagra Brands, Inc. 0.300 10/8/21 30,000,000 29,982,675
Conagra Brands, Inc. 0.260 8/27/21 37,000,000 36,991,683
Conagra Brands, Inc. 0.210 8/10/21 23,875,000 23,872,921
Conagra Brands, Inc. 0.210 8/2/21 22,000,000 21,999,479
Conagra Brands, Inc. 0.200 8/11/21 24,500,000 24,497,681
Crown Castle International Corp. 0.280 8/11/21 113,500,000 113,487,325
Crown Castle International Corp. 0.270 8/4/21 48,000,000 47,997,953
Dominion Energy South Carolina 0.240 8/4/21 28,000,000 27,999,421
Dominion Energy, Inc. 0.210 8/23/21 14,000,000 13,998,637
Eaton Capital Unlimited Co. (Ireland) 0.200 8/6/21 49,500,000 49,498,729
Eaton Capital Unlimited Co. (Ireland) 0.200 8/5/21 28,000,000 27,999,384
Eaton Capital Unlimited Co. (Ireland) 0.200 8/4/21 8,000,000 7,999,854
Eaton Corp. 0.180 8/2/21 64,950,000 64,949,291
Enbridge US, Inc. 0.200 8/9/21 24,000,000 23,999,100
Enbridge US, Inc. 0.210 8/12/21 26,000,000 25,998,704
Enbridge US, Inc. 0.192 8/20/21 43,500,000 43,496,346
Enbridge US, Inc. 0.190 8/25/21 15,000,000 14,998,407
Enbridge US, Inc. 0.190 8/23/21 31,000,000 30,996,983
Enel Finance America, LLC 0.300 1/28/22 23,150,000 23,121,794
Enel Finance America, LLC 0.290 1/12/22 44,000,000 43,952,321
Energy Transfer LP 0.350 8/2/21 93,000,000 92,997,644
Eni Finance USA, Inc. 0.260 8/3/21 14,250,000 14,249,842
Eni Finance USA, Inc. 0.219 8/13/21 29,000,000 28,998,872
Eni Finance USA, Inc. 0.240 8/9/21 12,317,000 12,316,658
ERP Operating LP 0.200 9/7/21 71,750,000 71,737,874
Fidelity National Information Services, Inc. 0.235 8/19/21 41,000,000 40,996,766
Fidelity National Information Services, Inc. 0.220 8/23/21 25,000,000 24,997,583
Fidelity National Information Services, Inc. 0.160 8/16/21 17,275,000 17,273,858
Fidelity National Information Services, Inc. 0.160 8/5/21 40,000,000 39,999,120
FMC Corp. 0.500 8/26/21 28,000,000 27,990,592
FMC Corp. 0.476 8/16/21 49,500,000 49,489,692
FMC Corp. 0.450 8/20/21 23,500,000 23,493,914
FMC Corp. 0.450 8/13/21 23,500,000 23,495,988
FMC Corp. 0.350 8/2/21 20,000,000 19,999,263
General Motors Financial Co., Inc. 0.420 8/19/21 9,500,000 9,498,074
General Motors Financial Co., Inc. 0.380 9/13/21 6,000,000 5,996,888
General Motors Financial Co., Inc. 0.309 8/12/21 19,500,000 19,497,697
General Motors Financial Co., Inc. 0.360 8/9/21 14,250,000 14,248,836
General Motors Financial Co., Inc. 0.360 8/2/21 8,250,000 8,249,825
General Motors Financial Co., Inc. 0.340 10/26/21 13,000,000 12,983,348
General Motors Financial Co., Inc. 0.340 10/13/21 15,000,000 14,984,844
General Motors Financial Co., Inc. 0.320 9/14/21 24,000,000 23,987,212


Ultra Short Duration Income Fund 39



COMMERCIAL PAPER (26.2%)* cont. Yield (%) Maturity
date
Principal
amount
Value
General Motors Financial Co., Inc. 0.320 8/30/21 $9,500,000 $9,496,720
General Motors Financial Co., Inc. 0.311 8/11/21 27,500,000 27,497,103
General Motors Financial Co., Inc. 0.280 8/4/21 8,000,000 7,999,714
Glencore Funding, LLC 0.270 10/6/21 24,500,000 24,486,441
Glencore Funding, LLC 0.250 9/8/21 21,200,000 21,193,334
Glencore Funding, LLC 0.244 10/12/21 64,500,000 64,460,888
Glencore Funding, LLC 0.240 10/7/21 46,500,000 46,473,887
Healthpeak Properties, Inc. 0.190 8/12/21 52,000,000 51,995,719
Healthpeak Properties, Inc. 0.190 8/5/21 31,000,000 30,999,318
Healthpeak Properties, Inc. 0.170 8/4/21 38,000,000 37,999,309
HSBC USA, Inc. 0.370 3/24/22 48,000,000 48,057,072
HSBC USA, Inc. 0.330 7/8/22 46,750,000 46,799,789
Humana, Inc. 0.260 10/21/21 21,500,000 21,484,237
Humana, Inc. 0.260 10/19/21 28,000,000 27,980,029
Humana, Inc. 0.260 8/26/21 5,000,000 4,998,894
Humana, Inc. 0.260 8/24/21 46,000,000 45,990,704
Humana, Inc. 0.260 8/19/21 19,500,000 19,496,913
Humana, Inc. 0.230 8/17/21 8,000,000 7,998,852
Humana, Inc. 0.230 8/16/21 32,000,000 31,995,648
Hyundai Capital America (South Korea) 0.210 10/1/21 23,500,000 23,493,749
Hyundai Capital America (South Korea) 0.160 8/11/21 45,000,000 44,998,395
Intesa Sanpaolo Funding, LLC (Spain) 0.240 11/26/21 20,000,000 19,965,688
Intesa Sanpaolo Funding, LLC (Spain) 0.240 11/23/21 45,000,000 44,925,035
Intesa Sanpaolo Funding, LLC (Spain) 0.240 11/22/21 17,000,000 16,971,924
Mid-America Apartments LP 0.150 8/5/21 20,000,000 19,999,560
Mid-America Apartments LP 0.150 8/4/21 20,000,000 19,999,636
National Grid North America, Inc. 0.160 8/16/21 46,000,000 45,996,937
National Grid PLC (United Kingdom) 0.170 8/26/21 35,000,000 34,996,141
Plains Midstream Canada ULC (Canada) 0.350 8/4/21 39,000,000 38,998,429
Plains Midstream Canada ULC (Canada) 0.330 8/3/21 32,000,000 31,998,969
Plains Midstream Canada ULC (Canada) 0.319 8/2/21 60,000,000 59,998,550
PPG Industries, Inc. 0.421 8/2/21 70,750,000 70,749,227
PPG Industries, Inc. 0.210 9/9/21 39,750,000 39,742,892
PPG Industries, Inc. 0.170 8/23/21 22,000,000 21,997,873
Realty Income Corp. 0.180 8/27/21 23,500,000 23,497,076
Rogers Communications, Inc. (Canada) 0.210 8/25/21 23,500,000 23,497,505
Schlumberger Holdings Corp. 0.472 8/13/21 23,750,000 23,749,169
Sempra Energy 0.170 8/11/21 18,750,000 18,749,144
Sempra Energy 0.170 8/9/21 13,000,000 12,999,513
Societe Generale SA (France) 0.248 12/10/21 18,000,000 18,008,244
Societe Generale SA (France) 0.229 12/3/21 46,500,000 46,516,740
Suncor Energy, Inc. (Canada) 0.240 8/26/21 9,500,000 9,498,946
Suncor Energy, Inc. (Canada) 0.230 10/4/21 14,500,000 14,495,109
Suncor Energy, Inc. (Canada) 0.210 8/9/21 10,000,000 9,999,625
Suncor Energy, Inc. (Canada) 0.200 8/17/21 14,250,000 14,248,988
Suncor Energy, Inc. (Canada) 0.200 8/16/21 15,750,000 15,748,951
Suncor Energy, Inc. (Canada) 0.200 8/6/21 8,000,000 7,999,795
TransCanada PipeLines, Ltd. (Canada) 0.200 9/20/21 19,000,000 18,995,362
TransCanada PipeLines, Ltd. (Canada) 0.190 8/10/21 24,500,000 24,498,982
UDR, Inc. 0.180 8/17/21 42,000,000 41,997,018


40 Ultra Short Duration Income Fund




COMMERCIAL PAPER (26.2%)* cont. Yield (%) Maturity
date
Principal
amount
Value
UDR, Inc. 0.180 8/13/21 $97,488,000 $97,482,730
UDR, Inc. 0.180 8/9/21 9,000,000 8,999,663
Viatris, Inc. 0.400 9/21/21 23,500,000 23,486,403
Viatris, Inc. 0.380 9/27/21 23,500,000 23,484,633
Viatris, Inc. 0.370 8/16/21 31,000,000 30,994,833
VW Credit, Inc. 0.200 8/25/21 24,550,000 24,547,394
VW Credit, Inc. 0.200 8/24/21 38,425,000 38,421,078
VW Credit, Inc. 0.170 9/9/21 22,000,000 21,996,066
VW Credit, Inc. 0.170 8/17/21 25,000,000 24,998,225
Waste Management, Inc. 0.452 9/10/21 47,000,000 46,991,336
Welltower, Inc. 0.160 8/18/21 32,500,000 32,497,581
Welltower, Inc. 0.150 8/17/21 37,000,000 36,997,410
Welltower, Inc. 0.150 8/3/21 25,000,000 24,999,636
Westpac Banking Corp. (Australia) 0.170 11/24/21 46,500,000 46,503,163
Westpac Banking Corp. (Australia) 0.170 11/24/21 16,000,000 16,001,088
Westpac Banking Corp. (Australia) 0.165 3/11/22 46,750,000 46,758,910
Total commercial paper (cost $4,113,672,997) $4,113,880,148

ASSET-BACKED SECURITIES (9.9%)* Principal
amount
Value
1Sharpe Mortgage Trust 144A FRB Ser. 20-1, Class NOTE, (BBA LIBOR USD 3 Month + 2.90%), 3.025%, 7/25/24     $36,188,000 $36,209,713
Bank of The West Auto Trust 144A        
Ser. 18-1, Class A3, 3.43%, 12/15/22     538,210 538,941
Ser. 19-1, Class A3, 2.43%, 4/15/24     13,040,885 13,187,947
BMW Vehicle Owner Trust Ser. 20-A, Class A2, 0.39%, 2/27/23     2,129,153 2,130,060
Canadian Pacer Auto Receivables Trust 144A Ser. 20-1A, Class A2A, 1.77%, 11/21/22 (Canada)     3,210,635 3,217,372
Capital One Multi-Asset Execution Trust FRB Ser. 17-A2, Class A2, (1 Month US LIBOR + 0.41%), 0.503%, 1/15/25     14,850,000 14,886,565
CarMax Auto Owner Trust        
Ser. 18-4, Class A3, 3.36%, 9/15/23     13,385,338 13,559,000
Ser. 18-1, Class A3, 2.48%, 11/15/22     593,286 593,868
Ser. 19-3, Class A3, 2.18%, 8/15/24     14,011,787 14,202,682
Ser. 20-1, Class A2, 1.87%, 4/17/23     2,941,620 2,948,933
Ser. 20-3, Class A3, 0.62%, 3/17/25     19,000,000 19,110,789
Ser. 21-1, Class A2A, 0.22%, 2/15/24     2,981,493 2,982,417
Carvana Auto Receivables Trust Ser. 20-P1, Class A2, 0.28%, 11/8/23     6,666,906 6,669,599
Cascade Funding Mortgage Trust 144A Ser. 21-HB6, Class A, 0.898%, 6/25/36 W     8,621,216 8,621,216
Cascade Funding Mortgage Trust, LLC 144A Ser. 21-HB5, Class A, 0.801%, 2/25/31 W     17,375,632 17,203,179
Discover Card Execution Note Trust Ser. 17-A2, Class A2, 2.39%, 7/15/24     15,481,000 15,639,092
Finance of America HECM Buyout 144A Ser. 21-HB1, Class A, 0.875%, 2/25/31 W     8,074,503 8,074,503
Ford Credit Auto Owner Trust        
Ser. 18-A, Class A4, 3.16%, 10/15/23     3,375,000 3,415,391
Ser. 19-B, Class A3, 2.23%, 10/15/23     9,617,114 9,706,216


Ultra Short Duration Income Fund 41



ASSET-BACKED SECURITIES (9.9%)* cont. Principal
amount
Value
Ford Credit Auto Owner Trust        
Ser. 20-A, Class A3, 1.04%, 8/15/24     $36,000,000 $36,241,920
Ser. 20-B, Class A2, 0.50%, 2/15/23     4,318,281 4,321,023
Ser. 21-A, Class A2, 0.17%, 10/15/23     24,558,033 24,558,607
Ford Credit Floorplan Master Owner Trust        
Ser. 18-3, Class A1, 3.52%, 10/15/23     39,385,000 39,657,603
Ser. 20-1, Class A1, 0.70%, 9/15/25     31,000,000 31,182,900
General Motors Financial Floorplan Owner Revolving Trust 144A        
Ser. 18-4, Class A1, 3.50%, 9/15/23     445,000 446,787
Ser. 20-1, Class A, 0.68%, 8/15/25     26,500,000 26,664,539
GM Financial Automobile Leasing Trust        
Ser. 20-3, Class A3, 0.45%, 8/21/23     20,870,000 20,916,799
Ser. 20-3, Class A2A, 0.35%, 11/21/22     10,856,558 10,855,798
GM Financial Consumer Automobile Receivables Trust        
Ser. 18-4, Class A3, 3.21%, 10/16/23     10,969,086 11,085,743
Ser. 18-3, Class A3, 3.02%, 5/16/23     2,247,980 2,264,001
Ser. 20-4, Class A3, 0.38%, 8/18/25     3,000,000 3,010,206
Ser. 20-3, Class A2, 0.35%, 7/17/23     4,300,485 4,302,104
Ser. 21-1, Class A2, 0.23%, 11/16/23     17,090,437 17,095,181
Golden Credit Card Trust 144A        
Ser. 18-4A, Class A, 3.44%, 8/15/25     1,250,000 1,328,698
FRB Ser. 17-4A, Class A, (1 Month US LIBOR + 0.52%), 0.613%, 7/15/24     22,680,000 22,789,036
Honda Auto Receivables Owner Trust        
Ser. 18-3, Class A3, 2.95%, 8/22/22     1,173,881 1,178,945
Ser. 19-4, Class A2, 1.86%, 6/20/22     153,855 153,970
Ser. 19-4, Class A3, 1.83%, 1/18/24     8,328,000 8,417,100
Ser. 20-2, Class A3, 0.82%, 7/15/24     12,500,000 12,576,525
Ser. 20-3, Class A3, 0.37%, 10/18/24     12,500,000 12,523,753
Ser. 21-2, Class A2, 0.17%, 11/15/23     10,000,000 10,000,019
Ser. 21-1, Class A2, 0.16%, 7/21/23     20,500,000 20,500,371
Hyundai Auto Lease Securitization Trust 144A Ser. 20-B, Class A2, 0.36%, 1/17/23     12,484,326 12,492,228
Hyundai Auto Receivables Trust Ser. 20-B, Class A2, 0.38%, 3/15/23     6,992,664 6,997,629
Mello Warehouse Securitization Trust 144A        
FRB Ser. 20-1, Class A, (1 Month US LIBOR + 0.90%), 0.989%, 10/25/53     15,023,000 15,023,000
FRB Ser. 20-2, Class A, (1 Month US LIBOR + 0.80%), 0.889%, 11/25/53     8,972,000 8,972,000
FRB Ser. 21-2, Class A, (1 Month US LIBOR + 0.75%), 0.839%, 4/25/55     30,633,000 30,633,000
FRB Ser. 21-1, Class A, (1 Month US LIBOR + 0.70%), 0.792%, 2/25/55     26,582,000 26,582,000
Mercedes-Benz Auto Receivables Trust        
Ser. 18-1, Class A3, 3.03%, 1/17/23     961,518 965,902
Ser. 19-1, Class A3, 1.94%, 3/15/24     28,575,604 28,865,807
Mortgage Repurchase Agreement Financing Trust FRB Ser. 20-4, Class A1, (1 Month US LIBOR + 1.35%), 1.45%, 4/23/23     19,742,000 19,749,670


42 Ultra Short Duration Income Fund



ASSET-BACKED SECURITIES (9.9%)* cont. Principal
amount
Value
Mortgage Repurchase Agreement Financing Trust 144A FRB Ser. 20-5, Class A1, (1 Month US LIBOR + 1.00%), 1.10%, 8/10/23     $27,573,000 $27,581,876
MRA Issuance Trust 144A        
FRB Ser. 21-EBO1, Class A1X, (1 Month US LIBOR + 1.75%), 1.85%, 10/8/21     45,251,000 45,251,000
FRB Ser. 21-EBO4, Class A1X, (1 Month US LIBOR + 1.75%), 1.842%, 2/16/22     49,013,000 49,013,000
FRB Ser. 20-11, Class A1X, (1 Month US LIBOR + 1.70%), 1.793%, 4/22/22     51,544,000 51,544,000
FRB Ser. 21-NA1, Class A1X, (1 Month US LIBOR + 1.50%), 1.591%, 3/8/22     50,895,000 50,895,000
FRB Ser. 20-2, Class A2, (1 Month US LIBOR + 1.45%), 1.30%, 8/15/22     45,609,000 45,609,000
FRB Ser. 21-8, Class A1X, (1 Month US LIBOR + 1.15%), 1.25%, 10/15/21     45,586,000 45,586,000
FRB Ser. 21-14, Class A1X, (1 Month US LIBOR + 1.25%), 1.243%, 2/15/22     47,539,000 47,539,000
FRB Ser. 21-11, Class A1X, (1 Month US LIBOR + 1.15%), 1.243%, 1/25/22     32,045,000 32,045,000
MSG III Securitization Trust 144A FRB Ser. 21-1, Class A, (1 Month US LIBOR + 0.75%), 0.841%, 6/25/54     11,886,000 11,886,000
NewRez Warehouse Securitization Trust 144A FRB Ser. 21-1, Class A, (1 Month US LIBOR + 0.75%), 0.839%, 5/25/55     17,008,000 17,037,424
Nissan Auto Lease Trust Ser. 20-B, Class A2, 0.34%, 12/15/22     16,935,923 16,948,575
Nissan Auto Receivables Owner Trust        
Ser. 19-A, Class A3, 2.90%, 10/16/23     7,841,488 7,930,569
Ser. 19-B, Class A3, 2.50%, 11/15/23     16,499,620 16,714,501
Ser. 17-B, Class A4, 1.95%, 10/16/23     3,876,419 3,879,073
Ser. 19-C, Class A3, 1.93%, 7/15/24     19,921,108 20,132,392
Santander Consumer Auto Receivables Trust 144A        
Ser. 20-BA, Class A4, 0.54%, 4/15/25     8,925,000 8,952,078
Ser. 20-BA, Class A2, 0.38%, 2/15/23     3,751,666 3,752,818
Ser. 21-AA, Class A2, 0.23%, 11/15/23     7,298,220 7,300,039
Santander Retail Auto Lease Trust 144A Ser. 20-B, Class A2, 0.42%, 11/20/23     6,269,458 6,280,476
Securitized Term Auto Receivables Trust 144A Ser. 19-1A, Class A3, 2.986%, 2/27/23 (Canada)     3,013,296 3,037,940
Station Place Securitization Trust 144A        
FRB Ser. 20-15, Class A, (1 Month US LIBOR + 1.37%), 1.459%, 12/10/21     49,539,000 49,539,000
FRB Ser. 21-6, Class A, (1 Month US LIBOR + 0.80%), 0.889%, 4/25/22     51,131,000 51,131,000
FRB Ser. 21-10, Class A, (1 Month US LIBOR + 0.75%), 0.854%, 8/8/22     48,657,000 48,657,000
FRB Ser. 21-WL2, Class A, (1 Month US LIBOR + 0.70%), 0.789%, 3/25/54     31,964,000 31,964,000
FRB Ser. 21-WL1, Class A, (1 Month US LIBOR + 0.65%), 0.742%, 1/26/54     31,964,000 31,964,000


Ultra Short Duration Income Fund 43




ASSET-BACKED SECURITIES (9.9%)* cont. Principal
amount
Value
Towd Point Asset Trust 144A FRB Ser. 18-SL1, Class A, (1 Month US LIBOR + 0.60%), 0.689%, 1/25/46     $1,292,628 $1,286,269
Toyota Auto Receivables Owner Trust        
Ser. 18-D, Class A4, 3.30%, 2/15/24     2,200,000 2,264,910
Ser. 18-C, Class A4, 3.13%, 2/15/24     6,852,000 7,007,727
Ser. 18-C, Class A3, 3.02%, 12/15/22     5,733,488 5,768,866
Ser. 19-B, Class A3, 2.57%, 8/15/23     1,240,473 1,254,137
Ser. 17-D, Class A4, 2.12%, 2/15/23     2,685,701 2,693,838
Ser. 17-C, Class A4, 1.98%, 12/15/22     442,582 442,915
Ser. 20-B, Class A3, 1.36%, 8/15/24     35,000,000 35,375,760
Ser. 20-C, Class A2, 0.36%, 2/15/23     7,073,073 7,076,068
Ser. 21-A, Class A2, 0.16%, 7/17/23     14,979,339 14,979,609
UNIFY Auto Receivables Trust 144A Ser. 21-1A, Class A2, 0.39%, 2/15/24     22,908,347 22,919,801
Volkswagen Auto Loan Enhanced Trust Ser. 20-1, Class A3, 0.98%, 11/20/24     10,000,000 10,068,869
World Omni Auto Receivables Trust        
Ser. 18-C, Class A3, 3.13%, 11/15/23     12,334,523 12,456,669
Ser. 18-A, Class A, 2.50%, 4/17/23     910,703 915,147
Ser. 21-A, Class A2, 0.17%, 2/15/24     27,428,345 27,428,715
Total asset-backed securities (cost $1,550,077,365) $1,549,360,408

MORTGAGE-BACKED SECURITIES (4.9%)* Principal
amount
Value
Agency collateralized mortgage obligations (—%)
Federal Home Loan Mortgage Corporation        
REMICs Ser. 1619, Class PZ, 6.50%, 11/15/23     $14,204 $14,853
REMICs Ser. 3724, Class CM, 5.50%, 6/15/37     81,926 94,231
REMICs Ser. 3316, Class CD, 5.50%, 5/15/37     29,347 33,978
REMICs Ser. 3539, Class PM, 4.50%, 5/15/37     8,861 9,619
REMICs Ser. 3611, PO, zero %, 7/15/34     26,814 25,305
Federal National Mortgage Association        
REMICs Ser. 11-60, Class PA, 4.00%, 10/25/39     6,337 6,895
REMICs Ser. 03-43, Class YA, 4.00%, 3/25/33     5,778 5,783
REMICs Ser. 10-81, Class AP, 2.50%, 7/25/40     27,392 27,865
REMICs FRB Ser. 10-90, Class GF, (1 Month US LIBOR + 0.50%), 0.589%, 8/25/40     278,370 278,796
REMICs FRB Ser. 06-74, Class FL, (1 Month US LIBOR + 0.35%), 0.439%, 8/25/36     169,338 169,987
REMICs FRB Ser. 05-63, Class FC, (1 Month US LIBOR + 0.25%), 0.339%, 10/25/31     379,257 380,491
Government National Mortgage Association Ser. 09-32, Class AB, 4.00%, 5/16/39     7,514 8,109
1,055,912
Residential mortgage-backed securities (non-agency) (4.9%)
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates        
FRB Ser. 04-R5, Class M1, (1 Month US LIBOR + 0.87%), 0.959%, 7/25/34     606,744 606,744
FRB Ser. 05-R7, Class M2, (1 Month US LIBOR + 0.75%), 0.839%, 9/25/35     554,058 554,008


44 Ultra Short Duration Income Fund



MORTGAGE-BACKED SECURITIES (4.9%)* cont. Principal
amount
Value
Residential mortgage-backed securities (non-agency) cont.
Ameriquest Mortgage Securities, Inc. Asset-Backed Pass-Through Certificates        
FRB Ser. 05-R11, Class M2, (1 Month US LIBOR + 0.71%), 0.794%, 1/25/36     $7,525,352 $7,514,718
Angel Oak Mortgage Trust I, LLC 144A        
Ser. 19-1, Class A1, 3.92%, 11/25/48 W     5,449,666 5,524,327
FRB Ser. 18-3, Class A1, 3.649%, 9/25/48 W     4,278,934 4,304,442
Ser. 19-4, Class A1, 2.993%, 7/26/49 W     12,885,165 12,992,112
Angel Oak Mortgage Trust LLC 144A Ser. 20-3, Class A1, 1.691%, 4/25/65 W     24,926,501 25,175,766
Arroyo Mortgage Trust 144A        
Ser. 19-2, Class A1, 3.347%, 4/25/49 W     8,353,197 8,510,050
Ser. 19-3, Class A1, 2.962%, 10/25/48 W     10,705,339 10,874,505
Bear Stearns Asset Backed Securities I Trust FRB Ser. 07-HE7, Class 1A1, (1 Month US LIBOR + 1.00%), 1.089%, 10/25/37     2,891,891 2,892,617
Bellemeade Re, Ltd. 144A FRB Ser. 18-1A, Class M1B, (1 Month US LIBOR + 1.60%), 1.689%, 4/25/28 (Bermuda)     6,347,194 6,392,554
BRAVO Residential Funding Trust 144A        
Ser. 19-1, Class A1C, 3.50%, 3/25/58     4,480,471 4,583,364
Ser. 19-NQM2, Class A1, 2.748%, 11/25/59 W     12,640,006 12,833,398
Ser. 19-NQM1, Class A1, 2.666%, 7/25/59 W     7,776,130 7,835,762
Ser. 20-NQM1, Class A1, 1.449%, 5/25/60 W     11,535,975 11,647,090
Ser. 21-NQM1, Class A1, 0.941%, 2/25/49 W     7,584,218 7,594,889
FRB Ser. 21-HE1, Class A1, (US 30 Day Average SOFR + 0.75%), 0.80%, 1/25/70     16,498,395 16,764,861
Carrington Mortgage Loan Trust FRB Ser. 06-RFC1, Class A4, (1 Month US LIBOR + 0.48%), 0.569%, 3/25/36     3,597,608 3,582,327
CIT Mortgage Loan Trust 144A FRB Ser. 07-1, Class 2A3, (1 Month US LIBOR + 1.45%), 1.539%, 10/25/37     1,201,356 1,206,716
Citigroup Mortgage Loan Trust 144A Ser. 19-IMC1, Class A1, 2.72%, 7/25/49 W     1,458,871 1,466,930
Citigroup Mortgage Loan Trust, Inc. FRB Ser. 06-WFH1, Class M4, (1 Month US LIBOR + 0.75%), 0.839%, 1/25/36     2,179,333 2,177,928
COLT Funding, LLC 144A        
Ser. 19-4, Class A1, 2.579%, 11/25/49 W     11,967,158 12,001,378
Ser. 21-3R, Class A1, 1.051%, 12/25/64 W     7,044,725 7,044,725
COLT Mortgage Loan Trust 144A        
FRB Ser. 20-1, Class A1, 2.488%, 2/25/50 W     6,233,906 6,269,652
Ser. 20-1R, Class A1, 1.255%, 9/25/65 W     5,545,443 5,567,625
Countrywide Asset-Backed Certificates        
FRB Ser. 05-BC3, Class M4, (1 Month US LIBOR + 1.50%), 1.589%, 6/25/35     1,766,295 1,771,034
FRB Ser. 05-BC5, Class M3, (1 Month US LIBOR + 0.75%), 0.839%, 1/25/36     1,257,807 1,258,001
Countrywide Asset-Backed Certificates Trust FRB Ser. 05-BC4, Class M6, (1 Month US LIBOR + 1.05%), 1.139%, 8/25/35     258,741 258,612
Credit Suisse Mortgage Capital Certificates 144A FRB Ser. 20-SPT1, Class A1, 1.616%, 4/25/65     7,920,418 7,955,901


Ultra Short Duration Income Fund 45



MORTGAGE-BACKED SECURITIES (4.9%)* cont. Principal
amount
Value
Residential mortgage-backed securities (non-agency) cont.
Credit Suisse Mortgage Trust 144A Ser. 20-AFC1, Class A1, 2.24%, 2/25/50 W     $6,010,376 $6,094,346
Credit-Based Asset Servicing and Securitization, LLC FRB Ser. 05-CB7, Class M1, (1 Month US LIBOR + 0.62%), 0.704%, 11/25/35     1,720,537 1,712,364
CSMC Trust 144A        
Ser. 19-NQM1, Class A1, 2.656%, 10/25/59     11,999,936 12,191,351
Ser. 15-2R, Class 7A3, 2.458%, 8/27/36 W     2,209,449 2,225,559
CWABS Asset-Backed Certificates Trust        
FRB Ser. 04-10, Class MV3, (1 Month US LIBOR + 1.13%), 1.214%, 12/25/34     3,698,045 3,679,388
FRB Ser. 05-3, Class MV5, (1 Month US LIBOR + 1.01%), 1.094%, 8/25/35     1,420,935 1,419,489
FRB Ser. 05-4, Class MV4, (1 Month US LIBOR + 0.96%), 1.049%, 10/25/35     673,069 673,617
FRB Ser. 04-AB2, Class M2, (1 Month US LIBOR + 0.86%), 0.944%, 5/25/36     607,908 607,908
Deephaven Residential Mortgage Trust 144A Ser. 19-4A, Class A1, 2.791%, 10/25/59 W     2,767,996 2,785,434
Ellington Financial Mortgage Trust 144A        
Ser. 19-2, Class A1, 2.739%, 11/25/59 W     7,821,754 7,967,238
Ser. 20-2, Class A1, 1.178%, 10/25/65 W     3,790,025 3,807,080
Encore Credit receivables Trust        
FRB Ser. 05-3, Class M3, (1 Month US LIBOR + 0.77%), 0.854%, 10/25/35     2,057,317 2,052,380
FRB Ser. 05-4, Class M3, (1 Month US LIBOR + 0.71%), 0.794%, 1/25/36     6,275,994 6,280,956
EquiFirst Mortgage Loan Trust FRB Ser. 05-1, Class M3, (1 Month US LIBOR + 0.48%), 0.809%, 4/25/35     1,510,627 1,510,143
Federal Home Loan Mortgage Corporation        
Structured Agency Credit Risk Debt FRN Ser. 14-HQ3, Class M3, (1 Month US LIBOR + 4.75%), 4.842%, 10/25/24     1,105,881 1,115,596
Structured Agency Credit Risk Debt FRN Ser. 14-HQ1, Class M3, (1 Month US LIBOR + 4.10%), 4.189%, 8/25/24     1,058,801 1,065,419
Structured Agency Credit Risk Debt FRN Ser. 16-DNA4, Class M3, (1 Month US LIBOR + 3.80%), 3.889%, 3/25/29     3,967,744 4,109,392
Structured Agency Credit Risk Debt FRN Ser. 17-DNA1, Class M2, (1 Month US LIBOR + 3.25%), 3.339%, 7/25/29     24,951,787 25,629,442
Structured Agency Credit Risk Debt FRN Ser. 17-HQA3, Class M2, (1 Month US LIBOR + 2.35%), 2.439%, 4/25/30     4,362,065 4,461,825
Structured Agency Credit Risk Debt FRN Ser. 16-HQA3, Class M2, (1 Month US LIBOR + 1.35%), 1.439%, 3/25/29     42,552 42,539
Structured Agency Credit Risk Debt FRN Ser. 17-HQA2, Class M2AS, (1 Month US LIBOR + 1.05%), 1.139%, 12/25/29     23,750,907 23,735,944


46 Ultra Short Duration Income Fund



MORTGAGE-BACKED SECURITIES (4.9%)* cont. Principal
amount
Value
Residential mortgage-backed securities (non-agency) cont.
Federal Home Loan Mortgage Corporation        
Structured Agency Credit Risk Debt FRN Ser. 17-DNA3, Class M1, (1 Month US LIBOR + 0.75%), 0.839%, 3/25/30     $151,420 $151,420
Structured Agency Credit Risk Debt FRN Ser. 17-DNA3, Class M2AR, (1 Month US LIBOR + 0.75%), 0.839%, 3/25/30     13,169,500 13,003,281
Federal Home Loan Mortgage Corporation 144A        
Structured Agency Credit Risk Trust FRB Ser. 18-HRP2, Class M2, (1 Month US LIBOR + 1.25%), 1.339%, 2/25/47     5,134,207 5,140,022
Structured Agency Credit Risk Trust FRB Ser. 18-HRP2, Class M3AS, (1 Month US LIBOR + 1.00%), 1.089%, 2/25/47     14,000,000 13,985,366
Structured Agency Credit Risk Trust FRB Ser. 18-DNA2, Class M1, (1 Month US LIBOR + 0.80%), 0.889%, 12/25/30     187,187 187,187
Structured Agency Credit Risk Trust FRB Ser. 18-HQA2, Class M1, (1 Month US LIBOR + 0.75%), 0.839%, 10/25/48     49,225 49,225
Structured Agency Credit Risk Trust FRB Ser. 18-DNA3, Class M1, (1 Month US LIBOR + 0.75%), 0.839%, 9/25/48     4,263 4,262
Federal National Mortgage Association        
Connecticut Avenue Securities FRB Ser. 16-C01, Class 1M2, (1 Month US LIBOR + 6.75%), 6.839%, 8/25/28     9,711,738 10,279,844
Connecticut Avenue Securities FRB Ser. 16-C02, Class 1M2, (1 Month US LIBOR + 6.00%), 6.089%, 9/25/28     10,798,708 11,341,042
Connecticut Avenue Securities FRB Ser. 15-C03, Class 2M2, (1 Month US LIBOR + 5.00%), 5.089%, 7/25/25     1,407,082 1,425,771
Connecticut Avenue Securities FRB Ser. 15-C01, Class 2M2, (1 Month US LIBOR + 4.55%), 4.639%, 2/25/25     705,540 708,034
Connecticut Avenue Securities FRB Ser. 16-C04, Class 1M2, (1 Month US LIBOR + 4.25%), 4.339%, 1/25/29     2,879,123 3,004,576
Connecticut Avenue Securities FRB Ser. 16-C04, Class 1M2A, (1 Month US LIBOR + 4.25%), 4.339%, 1/25/29     1,123,775 1,130,133
Connecticut Avenue Securities FRB Ser. 15-C02, Class 2M2, (1 Month US LIBOR + 4.00%), 4.089%, 5/25/25     1,968,425 1,984,234
Connecticut Avenue Securities FRB Ser. 14-C03, Class 2M2, (1 Month US LIBOR + 2.90%), 2.989%, 7/25/24     3,435,679 3,503,911
Connecticut Avenue Securities FRB Ser. 14-C02, Class 2M2, (1 Month US LIBOR + 2.60%), 2.689%, 5/25/24     1,060,095 1,070,153


Ultra Short Duration Income Fund 47



MORTGAGE-BACKED SECURITIES (4.9%)* cont. Principal
amount
Value
Residential mortgage-backed securities (non-agency) cont.
First Franklin Mortgage Loan Trust        
FRB Ser. 04-FF7, Class M1, (1 Month US LIBOR + 0.87%), 0.959%, 9/25/34     $689,049 $685,673
FRB Ser. 05-FFH4, Class M1, (1 Month US LIBOR + 0.72%), 0.809%, 12/25/35     1,224,360 1,224,360
FRB Ser. 05-FF9, Class A4, (1 Month US LIBOR + 0.72%), 0.809%, 10/25/35     1,016,240 1,016,050
FRB Ser. 05-FF12, Class M1, (1 Month US LIBOR + 0.68%), 0.764%, 11/25/36     442,773 441,317
FRB Ser. 06-FF3, Class A2C, (1 Month US LIBOR + 0.58%), 0.669%, 2/25/36     6,693,643 6,697,643
FRB Ser. 06-FF7, Class 1A, (1 Month US LIBOR + 0.28%), 0.369%, 5/25/36     7,607,066 7,545,724
FWD Securitization Trust 144A        
Ser. 19-INV1, Class A1, 2.81%, 6/25/49 W     6,947,080 7,135,770
FRB Ser. 20-INV1, Class A1, 2.24%, 1/25/50 W     4,523,183 4,610,028
Galton Funding Mortgage Trust 144A        
Ser. 18-2, Class A41, 4.50%, 10/25/58 W     686,476 687,573
Ser. 19-2, Class A22, 3.50%, 6/25/59 W     8,262,223 8,376,229
Ser. 18-1, Class A43, 3.50%, 11/25/57 W     79,662 79,463
Ser. 19-H1, Class A1, 2.657%, 10/25/59 W     2,159,848 2,206,326
GCAT Trust 144A        
Ser. 19-NQM2, Class A1, 2.855%, 9/25/59     10,643,774 10,700,748
Ser. 19-NQM3, Class A1, 2.686%, 11/25/59 W     5,427,978 5,565,645
GCAT, LLC 144A Ser. 19-NQM1, Class A1, 2.985%, 2/25/59     9,912,114 9,960,007
GS Mortgage-Backed Securities Trust 144A Ser. 20-NQM1, Class A1, 1.382%, 9/27/60 W     3,628,709 3,641,410
GSAA Home Equity Trust        
FRB Ser. 05-8, Class A3, (1 Month US LIBOR + 0.86%), 0.949%, 6/25/35     2,503,334 2,503,334
FRB Ser. 06-2, Class 2A4, (1 Month US LIBOR + 0.62%), 0.709%, 12/25/35     5,051,046 5,055,622
GSAMP Trust FRB Ser. 06-HE7, Class A2D, (1 Month US LIBOR + 0.23%), 0.319%, 10/25/46     577,339 553,784
Home Equity Asset Trust        
FRB Ser. 06-1, Class M2, (1 Month US LIBOR + 0.46%), 0.779%, 4/25/36     6,898,230 6,894,786
FRB Ser. 06-4, Class 1A1, (1 Month US LIBOR + 0.16%), 0.409%, 8/25/36     4,408,789 4,393,744
Home Re, Ltd. 144A FRB Ser. 18-1, Class M1, (1 Month US LIBOR + 1.60%), 1.689%, 10/25/28 (Bermuda)     2,462,849 2,467,836
HomeBanc Mortgage Trust FRB Ser. 05-4, Class A1, (1 Month US LIBOR + 0.54%), 0.629%, 10/25/35     3,756,784 3,750,793
Homeward Opportunities Fund I Trust 144A        
Ser. 18-2, Class A1, 3.985%, 11/25/58 W     4,257,507 4,330,691
Ser. 19-2, Class A1, 2.702%, 9/25/59 W     6,481,101 6,518,691
Ser. 19-3, Class A1, 2.675%, 11/25/59 W     9,675,451 9,767,895
Ser. 20-2, Class A1, 1.657%, 5/25/65 W     6,724,134 6,761,285
JPMorgan Mortgage Acquisition Corp. FRB Ser. 05-OPT2, Class M2, (1 Month US LIBOR + 0.68%), 0.764%, 12/25/35     975,871 975,710


48 Ultra Short Duration Income Fund



MORTGAGE-BACKED SECURITIES (4.9%)* cont. Principal
amount
Value
Residential mortgage-backed securities (non-agency) cont.
JPMorgan Mortgage Acquisition Trust        
FRB Ser. 07-CH2, Class MV1, (1 Month US LIBOR + 0.28%), 0.369%, 1/25/37     $6,660,000 $6,625,728
FRB Ser. 07-CH4, Class A4, (1 Month US LIBOR + 0.16%), 0.249%, 1/25/36     7,675 7,673
JPMorgan Resecuritization Trust 144A Ser. 14-1, Class 7A1, 3.00%, 6/26/35     2,653,618 2,664,164
Long Beach Mortgage Loan Trust FRB Ser. 04-1, Class M1, (1 Month US LIBOR + 0.75%), 0.839%, 2/25/34     423,127 422,390
MASTR Asset-Backed Securities Trust FRB Ser. 06-FRE1, Class A4, (1 Month US LIBOR + 0.58%), 0.669%, 12/25/35     709,969 698,131
Merrill Lynch Mortgage Investors Trust FRB Ser. 05-AR1, Class M1, (1 Month US LIBOR + 0.75%), 0.839%, 6/25/36     375,084 374,955
MFA Trust 144A Ser. 21-NQM1, Class A1, 1.153%, 4/25/65 W     16,690,945 16,675,694
MFRA Trust 144A Ser. 20-NQM1, Class A1, 1.479%, 3/25/65 W     3,576,635 3,604,576
Morgan Stanley ABS Capital I, Inc. Trust FRB Ser. 06-NC1, Class M1, (1 Month US LIBOR + 0.57%), 0.659%, 12/25/35     8,242,140 8,246,185
Nationstar Home Equity Loan Trust FRB Ser. 07-B, Class 2AV4, (1 Month US LIBOR + 0.32%), 0.409%, 4/25/37     4,165,025 4,121,390
New Century Home Equity Loan Trust FRB Ser. 05-C, Class A2D, (1 Month US LIBOR + 0.68%), 0.769%, 12/25/35     1,339,172 1,339,460
New Residential Mortgage Loan Trust 144A        
Ser. 19-NQM4, Class A1, 2.492%, 9/25/59 W     5,144,795 5,211,678
Ser. 20-NQM1, Class A1, 2.464%, 1/26/60 W     2,911,324 2,951,501
FRB Ser. 18-4A, Class 4A, (1 Month US LIBOR + 0.75%), 0.839%, 1/25/48     6,670,520 6,679,731
Nomura Home Equity Loan, Inc./Home Equity Loan Trust FRB Ser. 05-FM1, Class M2, (1 Month US LIBOR + 0.74%), 0.824%, 5/25/35     766,099 763,358
Nomura Resecuritization Trust 144A FRB Ser. 15-8R, Class 4A1, (1 Month US LIBOR + 2.00%), 2.116%, 11/25/47     62,759 62,603
Onslow Bay Financial, LLC Trust 144A FRB Ser. 20-EXP3, Class 2A1, (1 Month US LIBOR + 0.90%), 0.989%, 1/25/60     1,214,726 1,218,552
Park Place Securities, Inc. Asset-Backed Pass-Through Certificates Asset Backed Pass-Through Certificates FRB Ser. 04-MHQ1, Class M3, (1 Month US LIBOR + 1.28%), 1.364%, 12/25/34     2,984,821 2,989,849
Radnor Re, Ltd. 144A FRB Ser. 19-1, Class M1B, (1 Month US LIBOR + 1.95%), 2.039%, 2/25/29 (Bermuda)     3,851,475 3,863,835
RASC Series Trust FRB Ser. 06-KS6, Class A4, (1 Month US LIBOR + 0.25%), 0.339%, 8/25/36     4,563,322 4,521,455
Residential Asset Mortgage Products Trust        
FRB Ser. 05-RS2, Class M4, (1 Month US LIBOR + 1.08%), 1.169%, 2/25/35     2,118,523 2,128,121
FRB Ser. 05-RS6, Class M4, (1 Month US LIBOR + 0.98%), 1.064%, 6/25/35     1,861,939 1,880,558


Ultra Short Duration Income Fund 49



MORTGAGE-BACKED SECURITIES (4.9%)* cont. Principal
amount
Value
Residential mortgage-backed securities (non-agency) cont.
Residential Asset Securities Corp., Trust        
FRB Ser. 05-KS1, Class M2, (1 Month US LIBOR + 0.75%), 1.214%, 2/25/35     $1,697,423 $1,681,438
FRB Ser. 04-KS10, Class M1, (1 Month US LIBOR + 0.90%), 0.989%, 11/25/34     2,987,621 2,978,146
FRB Ser. 06-KS3, Class M1, (1 Month US LIBOR + 0.33%), 0.584%, 4/25/36     3,113,804 3,113,804
FRB Ser. 06-KS7, Class A4, (1 Month US LIBOR + 0.24%), 0.329%, 9/25/36     488,003 485,585
Residential Mortgage Loan Trust 144A        
Ser. 19-2, Class A1, 2.913%, 5/25/59 W     1,388,707 1,402,594
Ser. 19-3, Class A1, 2.633%, 9/25/59 W     7,230,681 7,318,119
Securitized Asset Backed Receivables, LLC Trust FRB Ser. 06-CB1, Class AV1, (1 Month US LIBOR + 0.48%), 0.569%, 1/25/36     6,599,609 6,556,125
SG Residential Mortgage Trust 144A Ser. 19-3, Class A1, 2.703%, 9/25/59 W     769,760 773,249
Soundview Home Loan Trust        
FRB Ser. 05-OPT3, Class M1, (1 Month US LIBOR + 0.47%), 0.794%, 11/25/35     6,822,563 6,827,184
FRB Ser. 06-OPT1, Class 2A4, (1 Month US LIBOR + 0.27%), 0.359%, 3/25/36     2,457,653 2,455,997
Spruce Hill Mortgage Loan Trust 144A Ser. 19-SH1, Class A1, 3.395%, 4/29/49 W     5,309,510 5,357,296
Starwood Mortgage Residential Trust 144A        
FRB Ser. 18-IMC2, Class A1, 4.121%, 10/25/48 W     7,216,081 7,282,252
FRB Ser. 20-2, Class A1, 2.718%, 4/25/60 W     15,508,398 15,684,738
Ser. 19-INV1, Class A1, 2.61%, 9/27/49 W     6,100,453 6,175,495
Starwood Residential Mortgage Trust 144A Ser. 21-1, Class A1, 1.219%, 5/25/65 W     12,663,683 12,698,224
Structured Asset Investment Loan Trust        
FRB Ser. 04-7, Class A7, (1 Month US LIBOR + 0.84%), 0.929%, 8/25/34     769,693 767,698
FRB Ser. 05-HE3, Class M1, (1 Month US LIBOR + 0.72%), 0.809%, 9/25/35     5,232,290 5,218,073
Structured Asset Investment Loan Trust 144A FRB Ser. 05-1, Class M2, (1 Month US LIBOR + 0.72%), 0.809%, 2/25/35     875,888 873,620
Structured Asset Securities Corp Mortgage Loan Trust FRB Ser. 06-OPT1, Class A5, (1 Month US LIBOR + 0.26%), 0.349%, 4/25/36     1,047,299 1,041,307
Structured Asset Securities Corp. FRB Ser. 05-WF1, Class M1, (1 Month US LIBOR + 0.66%), 0.749%, 2/25/35     2,373,704 2,374,441
Structured Asset Securities Corp. Mortgage Loan Trust        
FRB Ser. 05-NC2, Class M5, (1 Month US LIBOR + 0.93%), 1.019%, 5/25/35     2,900,000 2,903,795
FRB Ser. 05-NC2, Class M4, (1 Month US LIBOR + 0.71%), 0.794%, 5/25/35     1,739,618 1,741,004
FRB Ser. 06-WF1, Class M4, (1 Month US LIBOR + 0.65%), 0.734%, 2/25/36     1,953,000 1,955,953


50 Ultra Short Duration Income Fund




MORTGAGE-BACKED SECURITIES (4.9%)* cont. Principal
amount
Value
Residential mortgage-backed securities (non-agency) cont.
Structured Asset Securities Corp. Mortgage Loan Trust 144A FRB Ser. 06-GEL3, Class A3, (1 Month US LIBOR + 0.60%), 0.689%, 7/25/36     $458,909 $458,517
Towd Point HE Trust 144A        
FRB Ser. 19-HE1, Class A1, (1 Month US LIBOR + 0.90%), 0.989%, 4/25/48     3,925,498 3,926,944
Ser. 21-HE1, Class A1, 0.918%, 2/25/63 W     2,839,609 2,879,136
Towd Point Mortgage Trust 144A        
Ser. 15-2, Class 2M1, 3.75%, 11/25/57 W     3,500,000 3,557,372
Ser. 18-1, Class A1, 3.00%, 1/25/58 W     7,853,316 8,060,383
Ser. 17-3, Class A1, 2.75%, 7/25/57 W     6,430,559 6,550,865
FRB Ser. 19-HY1, Class A1, (1 Month US LIBOR + 1.00%), 1.092%, 10/25/48     8,568,265 8,621,603
FRB Ser. 19-HY2, Class A1, (1 Month US LIBOR + 1.00%), 1.089%, 5/25/58     1,042,747 1,049,696
Verus Securitization Trust 144A        
Ser. 19-INV2, Class A1, 2.913%, 7/25/59 W     16,225,426 16,429,969
Ser. 19-3, Class A1, 2.784%, 7/25/59     5,647,402 5,715,965
Ser. 19-INV3, Class A1, 2.692%, 11/25/59 W     5,672,910 5,772,240
Ser. 19-4, Class A1, 2.642%, 11/25/59     15,332,708 15,620,598
Ser. 20-1, Class A1, 2.417%, 1/25/60     3,794,114 3,849,065
Ser. 20-5, Class A1, 1.218%, 5/25/65     11,981,484 12,010,029
Wells Fargo Home Equity Asset-Backed Securities Trust FRB Ser. 05-3, Class M6, (1 Month US LIBOR + 1.01%), 1.094%, 11/25/35     1,585,000 1,582,154
772,648,304
Total mortgage-backed securities (cost $772,302,008) $773,704,216

CERTIFICATES OF DEPOSIT (3.8%)* Yield (%) Maturity
date
Principal
amount
Value
Bank of Montreal/Chicago, IL FRN (Canada) 0.174 3/4/22 $34,500,000 $34,502,352
Bank of Montreal/Chicago, IL FRN (Canada) 0.168 3/16/22 20,000,000 20,002,598
Bank of Nova Scotia/Houston FRN 0.260 12/9/21 23,300,000 23,311,595
Canadian Imperial Bank of Commerce/New York, NY FRN 0.248 1/3/22 46,500,000 46,521,564
Cooperatieve Rabobank UA/NY FRN (Netherlands) 0.434 9/24/21 28,500,000 28,513,427
Credit Suisse AG/New York, NY FRN 0.300 7/19/22 23,250,000 23,208,498
Deutsche Bank AG/New York, NY FRN (Germany) 0.770 2/16/22 46,500,000 46,624,172
Morgan Stanley Bank, NA FRN 0.343 12/2/21 47,000,000 47,030,503
Natixis SA/New York, NY FRN (France) 0.300 12/10/21 32,500,000 32,520,964
Nordea Bank ABP/New York, NY FRN 0.470 11/19/21 57,000,000 57,056,074
Nordea Bank ABP/New York, NY FRN 0.362 1/28/22 20,585,000 20,608,060
Standard Chartered Bank/New York FRN 0.237 4/25/22 25,000,000 25,003,501
Standard Chartered Bank/New York FRN 0.222 3/18/22 49,000,000 49,000,104
Sumitomo Mitsui Banking Corp./New York FRN (Japan) 0.546 11/5/21 38,000,000 38,035,975
Svenska Handelsbanken/New York, NY FRN (Sweden) 0.398 1/6/22 47,000,000 47,052,466
Toronto-Dominion Bank/NY FRN (Canada) 0.250 5/24/22 51,000,000 51,025,042
Total certificates of deposit (cost $589,660,130) $590,016,895


Ultra Short Duration Income Fund 51




ASSET-BACKED COMMERCIAL PAPER (0.9%)* Yield (%) Maturity
date
Principal
amount
Value
Arabella Finance, LLC 0.366 8/6/21 $29,000,000 $28,998,365
Arabella Finance, LLC 0.320 10/15/21 5,000,000 4,996,621
Arabella Finance, LLC 0.320 10/4/21 760,000 759,565
Arabella Finance, LLC 0.300 8/18/21 16,000,000 15,997,526
Arabella Finance, LLC 0.300 8/10/21 15,000,000 14,998,671
Arabella Finance, LLC 0.300 8/4/21 2,750,000 2,749,889
Arabella Finance, LLC 0.280 10/6/21 4,000,000 3,997,635
Romulus Funding Corp. 0.270 8/25/21 31,000,000 30,987,753
Romulus Funding Corp. 0.270 8/12/21 30,000,000 29,994,150
Romulus Funding Corp. 0.260 8/18/21 14,000,000 13,995,988
Total asset-backed commercial paper (cost $147,489,739) $147,476,163

REPURCHASE AGREEMENTS (0.6%)* Principal
amount
Value
Interest in $75,000,000 tri-party term repurchase agreement dated 7/30/2021 with BNP Paribas, 0.250% (collateralized by Corporate Debt Securities with coupon rates ranging from 2.625% to 6.900% and due dates ranging from 3/2/2027 to 3/23/2055, valued at $78,751,763) (France) Ŧ EG $75,000,000 $75,000,000
Interest in $25,000,000 tri-party term repurchase agreement dated 7/30/2021 with Royal Bank of Canada, 0.30% (collateralized by Corporate Debt Securities and U.S. Treasuries (including strips) with coupon rates ranging from 0.000% to 7.500% and due dates ranging from 10/30/2025 to 2/2/2065, valued at $26,249,918) (Canada) Ŧ EG 25,000,000 25,000,000
Total repurchase agreements (cost $100,000,000) $100,000,000

U.S. GOVERNMENT AGENCY OBLIGATIONS (0.6%)* Yield (%) Maturity
date
Principal
amount
Value
Federal Farm Credit Banks Funding Corporation unsec. FRB 0.470 11/7/22 $93,000,000 $93,461,120
Total U.S. government agency obligations (cost $93,000,000) $93,461,120

U.S. GOVERNMENT AND AGENCY
MORTGAGE OBLIGATIONS (—%)*
Principal
amount
Value
U.S. Government Agency Mortgage Obligations (—%)
Federal National Mortgage Association Pass-Through Certificates        
6.00%, 5/1/23     $311 $316
5.50%, 11/1/23     9 9
Total U.S. government and agency mortgage obligations (cost $346) $325

TOTAL INVESTMENTS
Total investments (cost $15,715,263,103) $15,734,904,519
Key to holding’s abbreviations
BKNT Bank Note
FRB Floating Rate Bonds: the rate shown is the current interest rate 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.
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.


52 Ultra Short Duration Income Fund




GMTN Global Medium Term Notes
MTN Medium Term Notes
PO Principal Only

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 August 1, 2020 through July 31, 2021 (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 $15,718,194,562.
R Real Estate Investment Trust.
W The rate shown represents the weighted average coupon associated with the underlying mortgage pools. Rates may be subject to a cap or floor.
Ŧ Repurchase agreements with a maturity of more than seven days are considered to be illiquid investments.
EG Maturity date of the repurchase agreement is thirty-five days from the purchase date unless both parties agree to roll the transaction. Maturity value of the repurchase agreement will equal the principal amount of the repurchase agreement plus interest.
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.

DIVERSIFICATION BY COUNTRY
Distribution of investments by country of risk at the close of the reporting period, excluding collateral received, if any (as a percentage of Portfolio Value):
United States 69.1% Sweden 1.2%
Canada 7.8 Switzerland 1.2
United Kingdom 5.3 Germany 1.0
Japan 3.1 Italy 0.6
Netherlands 2.9 Ireland 0.5
France 2.6 Other 1.2
Australia 2.1 Total 100.0%
Spain 1.4



Ultra Short Duration Income Fund 53



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 $— $147,476,163 $—
Asset-backed securities 1,151,766,695 397,593,713
Certificates of deposit 590,016,895
Commercial paper 4,113,880,148
Corporate bonds and notes 8,367,005,244
Mortgage-backed securities 773,704,216
Repurchase agreements 100,000,000
U.S. government agency obligations 93,461,120
U.S. government and agency mortgage obligations 325
Totals by level $— $15,337,310,806 $397,593,713
The following is a reconciliation of Level 3 assets as of the close of the reporting period:
Investments in securities: Balance
as of
7/31/20
Accrued discounts/premiums Realized gain/(loss) Change in net
unrealized
appreciation/
(depreciation)#
Cost of purchases Proceeds from sales Total
transfers
into
Level 3†
Total
transfers
out of
Level 3†
Balance
as of
7/31/21
Asset-backed securities $— $— $— $(112) $361,384,112 $— $36,209,713 $— $397,593,713
Totals $— $— $— $(112) $361,384,112 $— $36,209,713 $— $397,593,713
† Transfers during the reporting period include valuations provided by a single broker quote. .
# Includes $(112) related to Level 3 securities still held at period end. Total change in unrealized appreciation/(depreciation) for securities (including Level 1 and Level 2) can be found in the Statement of operations.


The accompanying notes are an integral part of these financial statements.


54 Ultra Short Duration Income Fund



Statement of assets and liabilities 7/31/21

ASSETS   
Investment in securities, at value (Note 1):   
Unaffiliated issuers (identified cost $15,715,263,103)  $15,734,904,519 
Cash  115,844 
Interest and other receivables  21,116,275 
Receivable for shares of the fund sold  65,932,890 
Receivable for investments sold  56,505,399 
Prepaid assets  302,256 
Total assets  15,878,877,183 
 
LIABILITIES   
Payable for investments purchased  115,935,747 
Payable for shares of the fund repurchased  39,279,056 
Payable for compensation of Manager (Note 2)  1,576,042 
Payable for custodian fees (Note 2)  97,305 
Payable for investor servicing fees (Note 2)  1,575,357 
Payable for Trustee compensation and expenses (Note 2)  488,039 
Payable for administrative services (Note 2)  49,986 
Payable for distribution fees (Note 2)  578,917 
Distributions payable to shareholders  400,209 
Other accrued expenses  701,963 
Total liabilities  160,682,621 
 
Net assets  $15,718,194,562 
 
REPRESENTED BY   
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)  $15,718,638,010 
Total distributable earnings (Note 1)  (443,448) 
Total — Representing net assets applicable to capital shares outstanding  $15,718,194,562 
 
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE   
Net asset value, offering price and redemption price per class A share   
($6,611,459,108 divided by 655,692,754 shares)  $10.08 
Net asset value and offering price per class B share ($326,235 divided by 32,386 shares)*  $10.07 
Net asset value and offering price per class C share ($22,030,785 divided by 2,187,296 shares)*  $10.07 
Net asset value and redemption price per class N share ($14,369,418 divided by 1,426,555 shares)  $10.07 
Offering price per class N share (100/98.50 of $10.07)**  $10.22 
Net asset value, offering price and redemption price per class R share   
($4,206,696 divided by 417,773 shares)  $10.07 
Net asset value, offering price and redemption price per class R6 share   
($121,669,178 divided by 12,050,447 shares)  $10.10 
Net asset value, offering price and redemption price per class Y share   
($8,944,133,142 divided by 886,101,163 shares)  $10.09 

 

* Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

** On single retail sales of less than $50,000. On sales of more than $50,000 the offering price is reduced.

The accompanying notes are an integral part of these financial statements.

Ultra Short Duration Income Fund 55 

 


 

Statement of operations Year ended 7/31/21

INVESTMENT INCOME   
Interest (including interest income of $343,887 from investments in affiliated issuers) (Note 5)  $128,939,509 
Total investment income  128,939,509 
 
EXPENSES   
Compensation of Manager (Note 2)  46,112,816 
Investor servicing fees (Note 2)  10,011,903 
Custodian fees (Note 2)  169,613 
Trustee compensation and expenses (Note 2)  734,466 
Distribution fees (Note 2)  7,531,622 
Administrative services (Note 2)  439,680 
Other  2,957,714 
Fees waived and reimbursed by Manager (Note 2)  (9,760,247) 
Total expenses  58,197,567 
Expense reduction (Note 2)  (73,730) 
Net expenses  58,123,837 
 
Net investment income  70,815,672 
 
REALIZED AND UNREALIZED GAIN (LOSS)   
Net realized gain on:   
Securities from unaffiliated issuers (Notes 1 and 3)  11,328,393 
Total net realized gain  11,328,393 
Change in net unrealized depreciation on:   
Securities from unaffiliated issuers  (3,076,142) 
Total change in net unrealized depreciation  (3,076,142) 
 
Net gain on investments  8,252,251 
 
Net increase in net assets resulting from operations  $79,067,923 

 

The accompanying notes are an integral part of these financial statements.

56 Ultra Short Duration Income Fund 

 


 

Statement of changes in net assets

DECREASE IN NET ASSETS  Year ended 7/31/21  Year ended 7/31/20 
Operations     
Net investment income  $70,815,672  $297,228,905 
Net realized gain (loss) on investments  11,328,393  (30,651,897) 
Change in net unrealized appreciation (depreciation)     
of investments  (3,076,142)  13,528,394 
Net increase in net assets resulting from operations  79,067,923  280,105,402 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income     
Class A  (26,949,735)  (146,658,777) 
Class B  (60)  (2,458) 
Class C  (5,433)  (320,368) 
Class M    (21,536) 
Class N  (42,991)  (271,300) 
Class R  (1,003)  (69,003) 
Class R6  (509,506)  (1,634,148) 
Class Y  (43,702,486)  (149,079,410) 
Decrease from capital share transactions (Note 4)  (666,017,332)  (54,611,578) 
Total decrease in net assets  (658,160,623)  (72,563,176) 
 
NET ASSETS     
Beginning of year  16,376,355,185  16,448,918,361 
End of year  $15,718,194,562  $16,376,355,185 

 

The accompanying notes are an integral part of these financial statements.

Ultra Short Duration Income Fund 57 

 


 

Financial highlights (For a common share outstanding throughout the period)

  INVESTMENT OPERATIONS LESS DISTRIBUTIONS RATIOS AND SUPPLEMENTAL DATA
                      Ratio  Ratio of net   
  Net asset    Net realized                of expenses  investment   
  value,    and unrealized  Total from  From net  From net    Net asset  Total return  Net assets,  to average  income (loss)  Portfolio 
  beginning  Net investment  gain (loss)  investment  investment  realized gain  Total  value, end  at net asset  end of period  net assets  to average  turnover 
Period ended­  of period­  income (loss)a  on investments­  operations­  income­  on investments­  distributions  of period­  value (%)b  (in thousands)  (%)c,d  net assets (%)d  (%) 
Class A                           
July 31, 2021­  $10.08­  .04­  —­e  .04­  (.04)  —­  (.04)  $10.08­  .36­  $6,611,459­  .40­  .37­  63­ 
July 31, 2020  10.05­  .17­  .03­  .20­  (.17)  —­  (.17)  10.08­  2.01­  7,373,343­  .40­  1.73­  53­ 
July 31, 2019  10.05­  .25­  —­e  .25­  (.25)  —­e  (.25)  10.05­  2.53­  8,257,742­  .40­  2.50­  27­ 
July 31, 2018  10.06­  .17­  (.01)  .16­  (.17)  —­e  (.17)  10.05­  1.61­  6,002,162­  .40­  1.71­  36­ 
July 31, 2017  10.04­  .10­  .02­  .12­  (.10)  —­  (.10)  10.06­  1.17­  3,843,494­  .40­  .99­  45­ 
Class B                           
July 31, 2021­  $10.07­  —­e  —­e  —­e  —­e  —­  —­e  $10.07­  .02­  $326­  .74­f  .02­f ­  63­ 
July 31, 2020  10.04­  .13­  .03­  .16­  (.13)  —­  (.13)  10.07­  1.61­  258­  .80­  1.21­  53­ 
July 31, 2019  10.04­  .21­  —­e  .21­  (.21)  —­e  (.21)  10.04­  2.13­  68­  .80­  2.10­  27­ 
July 31, 2018  10.04­  .13­  —­e  .13­  (.13)  —­e  (.13)  10.04­  1.31­  1,529­  .80­  1.27­  36­ 
July 31, 2017  10.02­  .06­  .02­  .08­  (.06)  —­  (.06)  10.04­  .76­  1,751­  .80­  .55­  45­ 
Class C                           
July 31, 2021­  $10.07­  —­e  —­e  —­e  —­e  —­  —­e  $10.07­  .02­  $22,031­  .75­f ­  .02­f ­  63­ 
July 31, 2020  10.04­  .13­  .03­  .16­  (.13)  —­  (.13)  10.07­  1.61­  27,790­  .80­  1.24­  53­ 
July 31, 2019  10.04­  .21­  —­e  .21­  (.21)  —­e  (.21)  10.04­  2.13­  19,754­  .80­  2.10­  27­ 
July 31, 2018  10.04­  .13­  —­e  .13­  (.13)  —­e  (.13)  10.04­  1.31­  15,434­  .80­  1.21­  36­ 
July 31, 2017  10.02­  .06­  .02­  .08­  (.06)  —­  (.06)  10.04­  .76­  24,162­  .80­  .57­  45­ 
Class N                           
July 31, 2021­  $10.07­  .02­  —­e  .02­  (.02)  —­  (.02)  $10.07­  .21­  $14,369­  .55­  .22­  63­ 
July 31, 2020  10.04­  .15­  .03­  .18­  (.15)  —­  (.15)  10.07­  1.86­  19,303­  .55­  1.48­  53­ 
July 31, 2019 ­  10.03­  .18­  .01­  .19­  (.18)  —­e  (.18)  10.04­  1.94*  13,070­  .42*  1.81*  27­ 
Class R                           
July 31, 2021­  $10.07­  —­e  —­e  —­e  —­e  —­  —­e  $10.07­  .02­  $4,207­  .75­f ­  .02­f ­  63­ 
July 31, 2020  10.04­  .13­  .03­  .16­  (.13)  —­  (.13)  10.07­  1.61­  5,118­  .80­  1.30­  53­ 
July 31, 2019  10.04­  .21­  —­e  .21­  (.21)  —­e  (.21)  10.04­  2.13­  5,411­  .80­  2.09­  27­ 
July 31, 2018  10.05­  .13­  (.01)  .12­  (.13)  —­e  (.13)  10.04­  1.21­  5,019­  .80­  1.26­  36­ 
July 31, 2017  10.02­  .06­  .03­  .09­  (.06)  —­  (.06)  10.05­  .86­  4,178­  .80­  .58­  45­ 
Class R6                           
July 31, 2021­  $10.09­  .05­  .01­  .06­  (.05)  —­  (.05)  $10.10­  .57­  $121,669­  .29­  .46­  63­ 
July 31, 2020  10.06­  .18­  .03­  .21­  (.18)  —­  (.18)  10.09­  2.12­  92,676­  .29­  1.80­  53­ 
July 31, 2019  10.06­  .26­  —­e  .26­  (.26)  —­e  (.26)  10.06­  2.64­  97,971­  .29­  2.68­  27­ 
July 31, 2018  10.07­  .18­  (.01)  .17­  (.18)  —­e  (.18)  10.06­  1.72­  3,680­  .29­  1.75­  36­ 
July 31, 2017  10.05­  .11­  .02­  .13­  (.11)  —­  (.11)  10.07­  1.27­  3,151­  .29­  1.08­  45­ 
Class Y                           
July 31, 2021­  $10.09­  .05­  —­e  .05­  (.05)  —­  (.05)  $10.09­  .46­  $8,944,133­  .30­  .46­  63­ 
July 31, 2020  10.06­  .18­  .03­  .21­  (.18)  —­  (.18)  10.09­  2.11­  8,857,867­  .30­  1.79­  53­ 
July 31, 2019  10.06­  .26­  —­e  .26­  (.26)  —­e  (.26)  10.06­  2.63­  8,052,123­  .30­  2.61­  27­ 
July 31, 2018  10.07­  .18­  (.01)  .17­  (.18)  —­e  (.18)  10.06­  1.71­  4,952,524­  .30­  1.82­  36­ 
July 31, 2017  10.05­  .11­  .02­  .13­  (.11)  —­  (.11)  10.07­  1.27­  2,925,780­  .30­  1.09­  45­ 

 

See notes to financial highlights at the end of this section.

The accompanying notes are an integral part of these financial statements.

58 Ultra Short Duration Income Fund  Ultra Short Duration Income Fund 59 

 


 

Financial highlights cont.

* Not annualized.

For the period November 1, 2018 (commencement of operations) to July 31, 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 arrangements, if any (Note 2). Also excludes acquired fund fees and expenses, if any.

d 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 net assets (Note 2):

  7/31/21  7/31/20  7/31/19  7/31/18  7/31/17 
Class A  0.06%  0.09%  0.14%  0.14%  0.15% 
Class B  0.06  0.09  0.14  0.14  0.15 
Class C  0.06  0.09  0.14  0.14  0.15 
Class N  0.06  0.09  0.10  N/A  N/A 
Class R  0.06  0.09  0.14  0.14  0.15 
Class R6  0.06  0.09  0.14  0.14  0.15 
Class Y  0.06  0.09  0.14  0.14  0.15 

 

e Amount represents less than $0.01 per share.

f Reflects a voluntary waiver of certain fund expenses in effect during the period relating to the enhancement of certain annualized net yields for the fund. As a result of such waiver, the expenses reflect a reduction of the following amounts as a percentage of average net assets (Note 2):

  7/31/21 
Class B  0.06% 
Class C  0.05 
Class R  0.05 

 

The accompanying notes are an integral part of these financial statements.

60 Ultra Short Duration Income Fund 

 


 

Notes to financial statements 7/31/21

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 August 1, 2020 through July 31, 2021.

Putnam Ultra Short Duration 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 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, taxable 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. Under normal circumstances, the dollar-weighted average portfolio maturity of the fund is not expected to exceed three and one-half years. 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 may also use derivatives, such as futures, options and swap contracts, for both hedging and non-hedging purposes.

The fund offers class A, class B (only in exchange for class B shares of another Putnam fund), class C, class N, class R, class R6 and class Y shares. Class A, B, C, R, R6, and Y share classes are sold without a front-end sales charge. Class N shares are sold with an initial sales charge of up to 1.50%. Class A, class N, class R, class R6 and class Y shares also are generally not subject to a contingent deferred sales charge. Class B shares convert to class A shares after approximately eight years after the original purchase date and are subject to a contingent deferred sales charge on certain redemptions. 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. Prior to March 1, 2021, class C shares generally converted to class A shares after approximately ten years. Class R shares are not available to all investors. The expenses for class A, class B, class C, class N and class R shares may differ based on each class’ distribution fee, which is identified in Note 2. Class R6 and class Y shares are generally subject to the same expenses as class A, class B, class C, class N and class R shares, but do not bear a distribution fee. 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.

Ultra Short Duration Income Fund 61 

 


 

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 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.

Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares.

To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security’s fair value, the security will be valued at fair value by Putnam Management in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.

To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. Certain securities may be valued on the basis of a price provided by a single source. 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.

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

62 Ultra Short Duration Income Fund 

 


 

to the resale price, including accrued interest. Collateral for certain tri-party repurchase agreements, which totaled $105,001,681 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, and including amortization and accretion of premiums and discounts on debt securities, is recorded on the accrual basis.

Stripped securities The fund may invest in stripped securities which represent a participation in securities that may be structured in classes with rights to receive different portions of the interest and principal. Interest-only securities receive all of the interest and principal-only securities receive all of the principal. If the interest-only securities experience greater than anticipated prepayments of principal, the fund may fail to recoup fully its initial investment in these securities. Conversely, principal-only securities increase in value if prepayments are greater than anticipated and decline if prepayments are slower than anticipated. The fair value of these securities is highly sensitive to changes in interest rates.

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.

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 July 31, 2021, 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 
$19,380,085  $296,623  $19,676,708 

 

Ultra Short Duration Income Fund 63 

 


 

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. For the reporting period, there were no material temporary or permanent differences. 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 $485,897 to decrease distributions in excess of net investment income and $485,897 to decrease paid-in capital.

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  $28,167,019 
Unrealized depreciation  (8,533,552) 
Net unrealized appreciation  19,633,467 
Capital loss carryforward  (19,676,708) 
Cost for federal income tax purposes  $15,715,271,052 

 

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:

0.440%  of the first $5 billion,  0.240%  of the next $50 billion, 
0.390%  of the next $5 billion,  0.220%  of the next $50 billion, 
0.340%  of the next $10 billion,  0.210%  of the next $100 billion and 
0.290%  of the next $10 billion,  0.205%  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 0.273% of the fund’s average net assets.

Putnam Management has contractually agreed, through November 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 Management has also contractually agreed to waive fees (and, to the extent necessary, bear other expenses) of the fund through November 30, 2022, to the extent that total expenses of the fund (excluding brokerage, interest, taxes, investment-related expenses, payments under distribution plans, extraordinary expenses, payments under the fund’s investor servicing contract and acquired fund fees and expenses, but including payments under the fund’s investment management contract) would exceed an annual rate of 0.24% of the fund’s average net assets. During the reporting period, the fund’s expenses were reduced by $9,744,349 as a result of this limit.

Putnam Management may from time to time voluntarily undertake to waive fees and/or reimburse certain fund expenses in order to enhance the annualized net yield for the fund. Any such waiver or reimbursement would be voluntary and may be modified or discontinued by Putnam Management at any time without notice. During the

64 Ultra Short Duration Income Fund 

 


 

reporting period, the fund’s expenses were reduced by $15,898 as a result of this limit. This includes the following amounts per class of class specific distribution fees from the fund:

  Distribution fee waived 
Class B  $187 
Class C  13,338 
Class R  2,373 
Total  $15,898 

 

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 0.25% 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 N, 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  $4,356,686  Class R  2,796 
Class B  197  Class R6  54,402 
Class C  15,814  Class Y  5,570,477 
Class N  11,531  Total  $10,011,903 

 

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 $73,730 under the expense offset arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $10,312, 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.

Ultra Short Duration Income Fund 65 

 


 

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%  0.10%  $7,325,070 
Class B  0.75%  0.50%  1,663 
Class C  1.00%  0.50%  132,935 
Class N  1.00%  0.25%  48,454 
Class R  1.00%  0.50%  23,500 
Total      $7,531,622 

 

For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received net commissions of $264 from the sale of class N shares and received no monies and $40 in contingent deferred sales charges from redemptions of class B and class C shares purchased by exchange from another Putnam fund, respectively.

A deferred sales charge of up to 1.00% for class A shares may be assessed on certain redemptions. For the reporting period, Putnam Retail Management Limited Partnership, acting as underwriter, received $65 in contingent deferred sales charges from redemptions of class A shares purchased by exchange from another Putnam fund.

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)  $6,821,470,705  $6,598,393,996 
U.S. government securities (Long-term)     
Total  $6,821,470,705  $6,598,393,996 

 

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 7/31/21  YEAR ENDED 7/31/20 
Class A  Shares  Amount  Shares  Amount 
Shares sold  399,194,704  $4,026,832,544  753,578,499  $7,571,828,404 
Shares issued in connection with         
reinvestment of distributions  2,646,112  26,689,388  14,565,154  146,148,394 
  401,840,816  4,053,521,932  768,143,653  7,717,976,798 
Shares repurchased  (477,737,205)  (4,818,972,338)  (858,188,077)  (8,584,097,825) 
Net decrease  (75,896,389)  $(765,450,406)  (90,044,424)  $(866,121,027) 

 

66 Ultra Short Duration Income Fund 

 


 

  YEAR ENDED 7/31/21  YEAR ENDED 7/31/20 
Class B  Shares  Amount  Shares  Amount 
Shares sold  26,094  $263,012  32,369  $323,987 
Shares issued in connection with         
reinvestment of distributions  5  55  244  2,441 
  26,099  263,067  32,613  326,428 
Shares repurchased  (19,321)  (194,671)  (13,812)  (138,487) 
Net increase  6,778  $68,396  18,801  $187,941 
 
  YEAR ENDED 7/31/21  YEAR ENDED 7/31/20 
Class C  Shares  Amount  Shares  Amount 
Shares sold  1,019,066  $10,269,451  1,933,117  $19,377,511 
Shares issued in connection with         
reinvestment of distributions  512  5,161  31,677  317,419 
  1,019,578  10,274,612  1,964,794  19,694,930 
Shares repurchased  (1,592,760)  (16,049,463)  (1,172,141)  (11,734,358) 
Net increase (decrease)  (573,182)  $(5,774,851)  792,653  $7,960,572 
 
      YEAR ENDED 7/31/20* 
Class M      Shares  Amount 
Shares sold      118,437  $1,189,109 
Shares issued in connection with reinvestment of distributions    1,625  16,313 
      120,062  1,205,422 
Shares repurchased      (396,889)  (3,984,763) 
Net decrease      (276,827)  $(2,779,341) 
 
  YEAR ENDED 7/31/21  YEAR ENDED 7/31/20 
Class N  Shares  Amount  Shares  Amount 
Shares sold  531,438  $5,354,413  2,045,617  $20,401,196 
Shares issued in connection with         
reinvestment of distributions  4,241  42,738  27,073  271,298 
  535,679  5,397,151  2,072,690  20,672,494 
Shares repurchased  (1,026,317)  (10,342,502)  (1,457,204)  (14,534,292) 
Net increase (decrease)  (490,638)  $(4,945,351)  615,486  $6,138,202 
 
  YEAR ENDED 7/31/21  YEAR ENDED 7/31/20 
Class R  Shares  Amount  Shares  Amount 
Shares sold  315,832  $3,181,477  219,393  $2,200,621 
Shares issued in connection with         
reinvestment of distributions  96  969  6,718  67,328 
  315,928  3,182,446  226,111  2,267,949 
Shares repurchased  (406,603)  (4,096,872)  (256,662)  (2,554,382) 
Net decrease  (90,675)  $(914,426)  (30,551)  $(286,433) 

 

Ultra Short Duration Income Fund 67 

 


 

  YEAR ENDED 7/31/21  YEAR ENDED 7/31/20 
Class R6  Shares  Amount  Shares  Amount 
Shares sold  7,728,408  $78,066,540  4,736,113  $47,571,268 
Shares issued in connection with         
reinvestment of distributions  50,261  507,799  162,942  1,637,353 
  7,778,669  78,574,339  4,899,055  49,208,621 
Shares repurchased  (4,910,390)  (49,605,627)  (5,451,428)  (54,707,359) 
Net increase (decrease)  2,868,279  $28,968,712  (552,373)  $(5,498,738) 
 
  YEAR ENDED 7/31/21  YEAR ENDED 7/31/20 
Class Y  Shares  Amount  Shares  Amount 
Shares sold  819,260,036  $8,272,859,782  1,036,435,643  $10,414,654,047 
Shares issued in connection with         
reinvestment of distributions  3,496,348  35,307,960  12,669,457  127,253,934 
  822,756,384  8,308,167,742  1,049,105,100  10,541,907,981 
Shares repurchased  (814,605,090)  (8,226,137,148)  (971,505,141)  (9,736,120,735) 
Net increase  8,151,294  $82,030,594  77,599,959  $805,787,246 

 

* Effective November 25, 2019, the fund converted all of its class M shares to class A shares and class M shares were no longer able to be purchased.

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 7/31/20  cost  proceeds  income  of 7/31/21 
Short-term investments           
Putnam Short Term           
Investment Fund*  $365,382,337  $2,462,886,324  $2,828,268,661  $343,887  $— 
Total Short-term           
investments  $365,382,337  $2,462,886,324  $2,828,268,661  $343,887  $— 

 

* 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 fluctuation. The fund may invest a significant portion of its assets in securitized debt instruments, including mortgage-backed and asset-backed investments. The yields and values of these investments are sensitive to changes in interest rates, the rate of principal payments on the underlying assets and the market’s perception of the issuers. The market for these investments may be volatile and limited, which may make them difficult to buy or sell.

68 Ultra Short Duration Income Fund 

 


 

On July 27, 2017, the United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. On March 5, 2021, the FCA and LIBOR’s administrator, ICE Benchmark Administration, announced that most LIBOR settings will no longer be published after the end of 2021 and a majority of U.S. dollar LIBOR settings will no longer be published after June 30, 2023. 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. The transition process might lead to increased volatility and illiquidity in markets that currently 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 new hedges placed against existing LIBOR-based investments. 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 prior to the date on which the applicable rate ceases to be published.

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: 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.

    Royal Bank of   
  BNP Paribas  Canada  Total 
Assets:       
Repurchase agreements **  $75,000,000  $25,000,000  $100,000,000 
Total Assets  $75,000,000  $25,000,000  $100,000,000 
Liabilities:       
Total Liabilities  $—  $—  $— 
Total Financial and Derivative Net Assets  $75,000,000  $25,000,000  $100,000,000 
Total collateral received (pledged)†##  $75,000,000  $25,000,000   
Net amount  $—  $—   
Controlled collateral received (including       
TBA commitments)**  $—  $—  $— 
Uncontrolled collateral received  $78,751,763  $26,249,918  $105,001,681 
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.

Ultra Short Duration Income Fund 69 

 


 

Note 8: 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 is currently evaluating the impact, if any, of applying this provision.

70 Ultra Short Duration Income Fund 

 


 

Federal tax information (Unaudited)

The Form 1099 that will be mailed to you in January 2022 will show the tax status of all distributions paid to your account in calendar 2021.

Ultra Short Duration Income Fund 71 

 


 


72 Ultra Short Duration Income Fund 

 


 


* 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 July 31, 2021, 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.

Ultra Short Duration Income Fund 73 

 


 

Officers

In addition to Robert L. Reynolds, the other officers of the fund are shown below:

James F. Clark (Born 1974)  Susan G. Malloy (Born 1957) 
Vice President and Chief Compliance Officer  Vice President and Assistant Treasurer 
Since 2016  Since 2007 
Chief Compliance Officer and Chief Risk Officer,  Head of Accounting and Middle Office Services, 
Putnam Investments and Chief Compliance Officer,  Putnam Investments and Putnam Management 
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 
  Director of Operational Compliance, Putnam 
  Investments and Putnam Retail 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.

74 Ultra Short Duration Income Fund 

 


 

Putnam family of funds

The following is a list of Putnam’s open-end mutual funds offered to the public. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, contact your financial advisor or call Putnam Investor Services at 1-800-225-1581. Please read the prospectus carefully before investing.

Blend  Income 
Emerging Markets Equity Fund  Convertible Securities Fund 
Focused Equity Fund  Diversified Income Trust 
Focused International Equity Fund  Floating Rate Income Fund 
International Capital Opportunities Fund  Global Income Trust 
International Equity Fund  Government Money Market Fund* 
Multi-Cap Core Fund  High Yield Fund 
Research Fund  Income Fund 
Money Market Fund 
Global Sector  Mortgage Opportunities Fund 
Global Health Care Fund  Mortgage Securities Fund 
Global Technology Fund  Short Duration Bond Fund 
  Ultra Short Duration Income Fund 
Growth 
Growth Opportunities Fund  Tax-free Income 
Small Cap Growth Fund  Intermediate-Term Municipal Income Fund 
Sustainable Future Fund  Short-Term Municipal Income Fund 
Sustainable Leaders Fund  Strategic Intermediate Municipal Fund 
  Tax Exempt Income Fund 
Value  Tax-Free High Yield Fund 
International Value Fund 
Large Cap Value Fund  State tax-free income funds: 
Small Cap Value Fund  California, Massachusetts, Minnesota, 
  New Jersey, New York, Ohio, and Pennsylvania. 

 

Ultra Short Duration Income Fund 75 

 


 

Absolute Return  Asset Allocation (cont.) 
Fixed Income Absolute Return Fund  Putnam Retirement Advantage Maturity Fund 
Multi-Asset Absolute Return Fund  Putnam Retirement Advantage 2065 Fund 
Putnam Retirement Advantage 2060 Fund 
Putnam PanAgora§  Putnam Retirement Advantage 2055 Fund 
Putnam PanAgora Risk Parity Fund  Putnam Retirement Advantage 2050 Fund 
  Putnam Retirement Advantage 2045 Fund 
Asset Allocation  Putnam Retirement Advantage 2040 Fund 
Dynamic Risk Allocation Fund  Putnam Retirement Advantage 2035 Fund 
George Putnam Balanced Fund  Putnam Retirement Advantage 2035 Fund 
  Putnam Retirement Advantage 2030 Fund 
Dynamic Asset Allocation Balanced Fund  Putnam Retirement Advantage 2025 Fund 
Dynamic Asset Allocation Conservative Fund 
Dynamic Asset Allocation Growth Fund  RetirementReady® Maturity Fund 
  RetirementReady® 2065 Fund 
  RetirementReady® 2060 Fund 
  RetirementReady® 2055 Fund 
  RetirementReady® 2050 Fund 
  RetirementReady® 2045 Fund 
  RetirementReady® 2040 Fund 
  RetirementReady® 2035 Fund 
  RetirementReady® 2030 Fund 
  RetirementReady® 2025 Fund 

 

* You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Not available in all states.

§ Sub-advised by PanAgora Asset Management.

Check your account balances and the most recent month-end performance in the Individual Investors section at putnam.com.

76 Ultra Short Duration 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  Jonathan S. Horwitz 
Putnam Investment  Kenneth R. Leibler, Chair  Executive Vice President, 
Management, LLC  Liaquat Ahamed  Principal Executive Officer, 
100 Federal Street  Ravi Akhoury  and Compliance Liaison 
Boston, MA 02110  Barbara M. Baumann   
  Katinka Domotorffy  Richard T. Kircher 
Investment Sub-Advisor  Catharine Bond Hill  Vice President and BSA 
Putnam Investments Limited  Paul L. Joskow  Compliance Officer 
16 St James’s Street  George Putnam, III 
London, England SW1A 1ER  Robert L. Reynolds  Susan G. Malloy 
Manoj P. Singh Vice President and
Marketing Services  Mona K. Sutphen  Assistant Treasurer 
Putnam Retail Management   
100 Federal Street  Officers  Denere P. Poulack 
Boston, MA 02110  Robert L. Reynolds  Assistant Vice President, 
President  Assistant Clerk, and 
Custodian  Assistant Treasurer 
State Street Bank  James F. Clark 
and Trust Company  Vice President, Chief Compliance  Janet C. Smith 
  Officer, and Chief Risk Officer Vice President,
Legal Counsel  Principal Financial Officer, 
Ropes & Gray LLP  Nancy E. Florek  Principal Accounting Officer, 
  Vice President, Director of  and Assistant Treasurer 
Independent Registered  Proxy Voting and Corporate   
Public Accounting Firm  Governance, Assistant Clerk,  Stephen J. Tate 
PricewaterhouseCoopers LLP  and Assistant Treasurer  Vice President and 
  Chief Legal Officer 
  Michael J. Higgins   
  Vice President, Treasurer,  Mark C. Trenchard 
  and Clerk  Vice President 
   

 

This report is for the information of shareholders of Putnam Ultra Short Duration 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.

(c) In April 2021, the Code of Ethics of Putnam Investments was amended. The key changes to the Code of Ethics are as follows: (i) Employees may invest in the Putnam Exchange Traded Funds (ETFs) with preclearing requirements for certain individuals (ii) All employees must hold Putnam ETFs in an approved Putnam broker (iii) All access persons must report Putnam ETF trades or holdings in the quarterly transaction report or annual holdings report.

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

July 31, 2021 $175,199 $ — $7,132 $ —
July 31, 2020 $282,728 $ — $7,132 $ —

For the fiscal years ended July 31, 2021 and July 31, 2020, the fund's independent auditor billed aggregate non-audit fees in the amounts of $316,432 and $352,974 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

July 31, 2021 $ — $309,300 $ — $ —
July 31, 2020 $ — $345,842 $ — $ —

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 180 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.

(a)(2) Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

(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: September 28, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):
/s/ Jonathan S. Horwitz
Jonathan S. Horwitz
Principal Executive Officer

Date: September 28, 2021
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer

Date: September 28, 2021

b_lu7certifications.htm

Certifications

I, Jonathan S. Horwitz, the Principal Executive Officer of the funds listed on Attachment A, certify that:

1. I have reviewed each report on Form N-CSR of the funds listed on Attachment A:

2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report;

3. Based on my knowledge, the financial statements, and other financial information included in each report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in each report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 180 days prior to the filing date of each report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to each registrant's auditors and the audit committee of each registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant's ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant's internal control over financial reporting.

Date: September 28, 2021

/s/ Jonathan S. Horwitz
_______________________
Jonathan S. Horwitz
Principal Executive Officer













Certifications

I, Janet C. Smith, the Principal Financial Officer of the funds listed on Attachment A, certify that:

1. I have reviewed each report on Form N-CSR of the funds listed on Attachment A:

2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report;

3. Based on my knowledge, the financial statements, and other financial information included in each report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in each report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 180 days prior to the filing date of each report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to each registrant's auditors and the audit committee of each registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant's ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant's internal control over financial reporting.

Date: September 28, 2021

/s/ Janet C. Smith
_______________________
Janet C. Smith
Principal Financial Officer















Attachment A

Period (s) ended July 31, 2021

               George Putnam Balanced Fund
               Putnam Growth Opportunities Fund
               Putnam Premier Income Trust
               Putnam Research Fund
               Putnam Ultra Short Duration Income Fund
               Putnam Short Term Investment Fund
               Putnam Strategic Intermediate Municipal Fund
               Putnam Tax-Free High Yield Fund

               Putnam RetirementReady — Funds:
               Putnam RetirementReady — 2065
               Putnam RetirementReady — 2060
               Putnam RetirementReady — 2055
               Putnam RetirementReady — 2050
               Putnam RetirementReady — 2045
               Putnam RetirementReady — 2040
               Putnam RetirementReady — 2035
               Putnam RetirementReady — 2030
               Putnam RetirementReady — 2025
               Putnam RetirementReady Maturity Fund

c_lu7noscertification.htm

Section 906 Certifications

I, Jonathan S. Horwitz, the Principal Executive Officer of the Funds listed on Attachment A, certify that, to my knowledge:

1. The form N-CSR of the Funds listed on Attachment A for the period ended July 31, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Form N-CSR of the Funds listed on Attachment A for the period ended July 31, 2021 fairly presents, in all material respects, the financial condition and results of operations of the Funds listed on Attachment A.

Date: September 28, 2021

/s/ Jonathan S. Horwitz
______________________
Jonathan S. Horwitz
Principal Executive Officer














Section 906 Certifications

I, Janet C. Smith, the Principal Financial Officer of the Funds listed on Attachment A, certify that, to my knowledge:

1. The form N-CSR of the Funds listed on Attachment A for the period ended July 31, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Form N-CSR of the Funds listed on Attachment A for the period ended July 31, 2021 fairly presents, in all material respects, the financial condition and results of operations of the Funds listed on Attachment A.

Date: September 28, 2021

/s/ Janet C. Smith
______________________
Janet C. Smith
Principal Financial Officer















Attachment A

Period (s) ended July 31, 2021

               George Putnam Balanced Fund
               Putnam Growth Opportunities Fund
               Putnam Premier Income Trust
               Putnam Research Fund
               Putnam Ultra Short Duration Income Fund
               Putnam Short Term Investment Fund
               Putnam Strategic Intermediate Municipal Fund
               Putnam Tax-Free High Yield Fund

               Putnam RetirementReady — Funds:
               Putnam RetirementReady — 2065
               Putnam RetirementReady — 2060
               Putnam RetirementReady — 2055
               Putnam RetirementReady — 2050
               Putnam RetirementReady — 2045
               Putnam RetirementReady — 2040
               Putnam RetirementReady — 2035
               Putnam RetirementReady — 2030
               Putnam RetirementReady — 2025
               Putnam RetirementReady Maturity Fund

a_picoemod4.htm

 

 

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working@PUTNAM 

 

 

 

 

Putnam’s Code of Ethics

May 2021

 
 

 

Putnam Investments Code of Ethics

Putnam Investments is required by law to adopt a Code of Ethics (the “Code”). The objective of the Code is that Putnam’s employees comply with all applicable laws and avoid any actual, apparent, or potential conflict of interest that could be perceived to interfere with the fiduciary duty Putnam owes to its clients or with Putnam’s interests. It is the duty of Putnam’s employees ethically to handle all actual, apparent, and potential conflicts of interest that may arise. This Code of Ethics is designed to strengthen the trust and confidence our clients place in us and to demonstrate that our clients’ interests come first.

Adherence to the Code is a fundamental condition of employment at Putnam. Every employee is expected to adhere to the requirements of the Code. Any employee failing to do so may be subject to disciplinary action, including financial penalties and termination of employment, as determined by the Code of Ethics Oversight Committee.

 
 

 

Definitions

Access Person Putnam has identified certain employees as Access Persons due to their position or access to investment information. Access Persons are held to a higher standard under the Code than other employees. Please ask the Code of Ethics Officer if you have any question whether you are an Access Person. The following employees are Access Persons:

·All employees of Putnam’s Investment Management Division
·All employees of the Global Investment Strategies Group/Division
·All employees of the International RFP Group
·Employees of the Operations Division within the following specific groups and departments:
·Fund Administration Group
·Investment Services and Operations Group
·Any employee in the following groups or divisions who reports directly to a member of the Operating Committee:
·Investor Services Group
·Accounting and Middle Offices Services Group
·Marketing and Corporate Communications Division
·Defined Contribution Investment Only Group
·Global Distribution Division (including Putnam Retail Management, Putnam Global Institutional Management, and Japan businesses)
·All members of Putnam’s Operating Committee
·All employees of Putnam Investments Limited (PIL) and all other Putnam employees based in Europe
·All directors and officers of a registered investment advisor affiliate, e.g., Putnam Investment Management, LLC (PIM), or The Putnam Advisory Company, LLC (PAC)
·All employees who have access to My Putnam (unless access is limited to the Wall Street Journal, Factiva, or other systems that do not allow access to non-public information about Putnam products, as determined by the Code of Ethics Officer) Employees who have systems access or other access to non-public information about any client’s purchase or sale of securities or to information regarding portfolio holdings or recommendations with respect to such purchases or sales
·Others as determined by the Code of Ethics Officer, including certain employees in rotational programs

Business or financial relationship refers to any type of existing or prospective arrangement between Putnam, on the one hand, and another entity or person, on the other hand, in which Putnam provides or receives financial consideration, goods, services, or advice. It also includes any investment by Putnam for itself or its clients. This means that there is a business or financial relationship between Putnam and each portfolio company.

Closed-end fund means a fund that has a fixed number of shares outstanding and does not redeem its shares. Closed-end funds typically trade like stocks on an exchange.

The Code of Ethics Officer and the Deputy Code of Ethics Officer are responsible for enforcing and interpreting the Code. The following are the current members of the Code of Ethics staff, each of whom can answer employee questions and provide other assistance regarding the Code:

 
 

 

 

Code of Ethics Officer: James Clark (617) 760-8939
Deputy Code of Ethics Officer: Akiko Lindholm (617) 760-2177
Sr. Compliance Specialist: Dana Scribner-Shea (617) 760-7182

 

Code of Ethics Oversight Committee has oversight responsibility for administering the Code of Ethics. Members include the Code of Ethics Officer and other members of Putnam’s senior management appointed by the Chief Executive Officer of Putnam. The Committee reviews and approves Code revisions, violations, and sanctions. In certain instances, requests for exemptions may require the approval of the Committee. The Committee meets on a quarterly basis or as otherwise necessary.

Exchange-traded fund (ETF) means a fund (other than a closed-end fund) that can be traded on an exchange throughout the day like a stock. ETFs often track an index. Examples include (but are not limited to) SPDRs, WEBs, QQQQs, iShares, and HLDRs.

Immediate Family means the Putnam employee’s spouse, domestic partner, fiancé(e), or other family members who are living in the same household or financially dependent on the Putnam employee. Financial dependence, for this purpose, means substantial and regular reliance by the family member on the Putnam employee to meet the family member’s financial obligations, including, for example, the costs of housing or educational expenses. Immediate Family also includes any other family members, including in-laws, for whom the Putnam employee can exercise investment discretion, regardless of whether or not they live in the same household.

Private placement means any offering of a security not offered to the public and not requiring registration with the relevant securities authorities, including but not limited to, equity or debt issued by a privately held company, private funds, hedge funds, or other privately offered securities.

Putnam means any or all of Putnam Investments, LLC and its subsidiaries (other than PanAgora Asset Management, Inc. and any of its subsidiaries), any one of which shall be a Putnam company.

Putnam employee, or employee, means any employee of Putnam and, for purposes of all rules in Sections 1, 2, and 3, also includes the following:

·Members of the Immediate Family of a Putnam employee;
·Any trust in which a Putnam employee or Immediate Family member is a trustee with investment discretion;
·Any account for a partnership in which a Putnam employee or Immediate Family member is a general partner or a partner with investment discretion;
·Any closely held entity (such as a partnership, limited liability company, or corporation) in which a Putnam employee or Immediate Family member holds a controlling interest and with respect to which he or she has investment discretion;
·Any account (including any retirement, pension, deferred compensation, or similar account) in which a Putnam employee or Immediate Family member has a substantial economic interest and over which the Putnam employee or Immediate Family member exercises investment discretion;
 
 
·Any account other than a Putnam client account that receives investment advice of any sort from the employee or Immediate Family member, or as to which the employee or Immediate Family member has investment discretion.

Putnam ETF means any exchange-traded fund managed and/or sponsored by Putnam Investments and its investment adviser subsidiaries other than PanAgora Asset Management, Inc.

 

Security The instruments required to be pre-cleared under Section 1.1 are considered to be securities for purposes of this Code and are also required to be reported by Access Persons under Section 4. In addition, transactions in exchange-traded funds (ETFs), exchange-traded notes (ETNs), exchange-traded commodities (ETCs), options, futures, and other derivative securities are required to be reported by Access Persons under Section 4, even for those instruments that are not required to be pre-cleared pursuant to Section 1.1(c).

Section 1 — Personal Securities Rules for All Employees

Putnam maintains the Code of Ethics PTA system to assist employees in fulfilling their obligations under the Code of Ethics. This system can be accessed by selecting the Code of Ethics PTA link, which appears on Putnam’s intranet page in the Secure Information section under My Essentials. This system allows the automated pre-clearance of publicly traded equities and other securities trading on major U.S. and other exchanges. To pre-clear an options contract for a publicly traded security, pre-clear the underlying security in the Code of Ethics PTA system. To request clearance to trade bonds or other securities, you must contact the Code of Ethics staff. Pre-clearance hours are 9:00 a.m. to 4:00 p.m. Eastern Time.

1.1. Pre-clearance Requirements

The pre-clearance requirements under this section apply to employees who are Access Persons.

1.1(a) Employees must pre-clear all trades in the following securities:

·Stocks of companies
·Bonds and other debt instruments, including new offerings (including preferred stock, corporate, municipal, high-yield, and convertible bonds)
·Options, warrants, and all other derivatives of any underlying securities that themselves require pre-clearancee
·Closed-end funds, including Putnam closed-end funds

Employees must also pre-clear the following transactions:

·Private placements and purchases of hedge funds or other private investment funds, which must receive pre-approval from the Code of Ethics Oversight Committee (sales of private placements, hedge funds, or other private investment funds do not need to be pre-cleared; however, they must be reported)
·Donating or gifting of securities
·Shares purchased by subscription or by mail (if purchasing directly from a company’s transfer agent by check, you must pre-clear the day the check is to be mailed)
·Tendering securities from your personal account
·Loans, or guarantees of obligations, being made to non-family members with whom Putnam has a business or financial relationship
 
 

 

·Exercising rights to purchase shares of a company’s stock (other than involuntary exercises)
·Exercising options or warrants to acquire shares of a company’s stock (other than involuntary exercises as set forth under Section 1.1(c)

1.1(b) Provisions Applicable to Pre-clearances

A pre-clearance is only valid for trading on the day it is obtained. However, trades by employees in Putnam’s Asian or European offices, or trades by any employees in securities listed on Asian or European stock exchanges, may be executed within one business day after pre-clearance is obtained. If the Code of Ethics system does not recognize a security, if an employee is unable to use the system, or if he or she has any questions with respect to the system or pre-clearance, the employee must contact the Code of Ethics staff.

1.1(c) Exceptions from Pre-clearance Requirements

Pre-clearance is not required for certain transactions. (Please note that reporting may still be required for Access Persons even when pre-clearance is not required. See Sections 4 and 5 for reporting requirements.) Pre-clearance is not required for:

·Open-end mutual funds
·Currencies and currency forwards, including cryptocurrencies
·Commodities
·Treasury securities and other U.S. and other sovereign government debt (Please note that agency securities, such as securities issued by Fannie Mae and Freddie Mac, require pre-clearance.)
·Certificates of deposit (CDs), commercial paper, repurchase agreements, bankers’ acceptances, and other money market instruments
·Options and futures and all other derivatives based on an index of securities
·Exchange-traded funds (ETFs), exchange-traded notes (ETNs), and exchange-traded commodities (ETCs)
·Putnam ETFs (however, certain investment professionals need to preclear trades in Putnam ETFs—see Section 1.1(d) below)
·Trades in approved discretionary accounts (see Section 4.2 for additional information)
·Transactions that are involuntary (i.e., not initiated by the employee or an Immediate Family member covered under the Code), including dividend reinvestments under an automatic program of a publicly traded issuer and broker actions not initiated by the employee, such as option assignments or sales out of the brokerage account to cover fees or margin calls (provided the employee may not have withdrawn funds from the margin account in the prior 10 days

1.1(d) Putnam ETFs Preclearance Rule for Certain Investment Professionals

Personnel in the Equity Trading and Capital Markets groups, Portfolio Managers of any Putnam ETF, and any other Putnam personnel designated by the Code of Ethics Officer must preclear personal trades in Putnam ETFs by contacting the Code of Ethics Staff. To enable timely processing, requests should be placed with the Code of Ethics Staff by 12:00 p.m. on the day of the trade; requests are good only for the trading day on which they are submitted.

 

 
 

 

1.2. Restricted List

The Restricted List rule under this section applies to employees who are Access Persons.

Employees may not trade in securities that are on Putnam’s Restricted List, except as set forth below under “Large-/Mid-Cap Exemption.” There are a number of reasons why a security may appear on the Restricted List, and securities are placed on the Restricted List under criteria, and in specific circumstances, as determined by the Code of Ethics Officer or the Code of Ethics Oversight Committee. If a security is not on the Restricted List, other classes of securities of the same issuer (e.g., preferred or convertible preferred stock) may be on the Restricted List. It is the employee’s responsibility to identify with particularity the class of securities being pre-cleared. Bonds are generally restricted at the issuer level.

Large-/Mid-Cap Exemption An employee may trade up to $25,000 in principal amount of the shares of a security appearing on the Restricted List if it is an equity security of an issuer with a market capitalization greater than $2 billion. However, these transactions must still be pre-cleared. Market capitalization is defined as outstanding shares multiplied by current price per share.

 

1.3. Prohibited Transactions

The following transactions and activities are prohibited for all employees:

Good-until-canceled orders (GTC). Any order not executed on the day of pre-clearance must be resubmitted for pre-clearance before being executed on a subsequent day.

Short sales of any security that is subject to pre-clearance requirements. However, short sales against the box are permitted. In addition, opening an option position that would result in a short position in the underlying security upon assignment or expiration is also prohibited (i.e., buying a put option or selling a call option without owning a number of shares at least equal to the delivery obligation under the contract, is prohibited). Purchasing a put option or selling a call option would not be considered acceptable if the only position covering such option would be another option position, such as purchasing a call option or selling a put option, to avoid a violation.

Purchasing equity securities in an initial public offering (IPO). Although exceptions from this prohibition will rarely be granted, employees may request an exemption from the Code of Ethics Officer, who may grant exceptions in unusual cases such as when an Immediate Family member’s association or employment with the issuer warrants consideration or when the employee has had a pre-existing status for at least two years as a policyholder or depositor in connection with a bank or insurance company conversion from mutual or cooperative form to stock form.

Trading with material non-public information (see Section 7)

Personal trading with Putnam client portfolios. Putnam employees may not buy or sell securities when the employee knows a Putnam client account is on the other side of the trade.

Participating in an investment club

Spread betting. PIL employees may not enter into any spread betting contracts on financial instruments.

Opening a discretionary account (see Section 4.2) and trading securities requiring pre-clearance, without obtaining proper advance approval for that account as required

Investing in a public digital coin/token offering

 
 

1.4. Policy Regarding Frequency of Personal Trading

Putnam employees are not limited to a pre-determined number of trades in securities during a specified time frame. However, excessive trading by an employee can divert the employee’s attention from his or her responsibilities as an employee and increases the possibility of engaging in transactions that are in actual or apparent conflict with Putnam’s client accounts. In addition, excessive short-term trading by an employee in shares of a Putnam-managed fund can also create actual or apparent conflicts with other shareholders of such fund and may have other detrimental effects as described in the prospectus or other disclosure document for such fund. Putnam reserves the right to monitor the number of trades (including for these purposes trades in securities that are required to be pre-cleared under Section 1.1(a), shares of Putnam-managed funds, and other securities that are required to be reported under Section 5.1 or 5.2, such as ETFs, ETNs, ETCs, options, futures, and other derivative securities) executed by an employee and members of his or her Immediate Family and may review any such activity that appears to be excessive with the employee’s manager(s) and/or the Code of Ethics Oversight Committee, as deemed appropriate by the Code of Ethics Officer. The Code of Ethics Oversight Committee shall have the authority to address any circumstances of excessive trading in securities or excessive short-term trading in shares of a Putnam-managed fund in accordance with Section 8 of this Code.

Section 2 — Putnam Mutual Funds, Closed-End Funds and Exchange-Traded Funds

2.1. Holding Putnam Mutual Fund Shares at Putnam

Putnam employees must hold shares of Putnam open-end U.S. mutual funds through accounts maintained at Putnam, with Putnam Retail Management (PRM) listed as the dealer of record. All transactions must be executed through Putnam and not through an outside broker or other intermediary.

These requirements also apply to:

·Self-directed IRA accounts holding Putnam fund shares;
·Variable annuities and variable insurance contracts, such as Putnam/Hartford Capital Manager and Allstate Advisor, which invest in Putnam Variable Trusts (must list PRM as dealer but may be held at the insurer)

In limited circumstances, retirement, pension, deferred compensation, health savings, and similar accounts (and variable insurance arrangements) that cannot be legally transferred to Putnam may be allowed to hold Putnam funds upon approval of the Code of Ethics Officer. For example, a spouse of a Putnam employee may have a 401(k)/Profit Sharing Plan with his or her employer that invests in Putnam funds. The employee must notify the Code of Ethics Officer in writing, provide the reason why the account cannot be transferred to Putnam, and arrange for all account statements and confirmations to be sent to the Code of Ethics staff, if approved.

2.2. Putnam Mutual Funds — Linked Accounts

All employees are required to ensure that their Immediate Family members’ accounts holding Putnam mutual funds are linked to comply with the requirements stated above and to permit monitoring for excessive short-term trading in accordance with Section 1.4. To ensure these accounts are linked, log on to Putnam’s intranet home page at http://intranet/home/index.shtml, and select My Essentials/Linked mutual fund accounts.

2.3. Putnam Closed-End Funds

 
 

 

2.3(a) Pre-clearance and Reporting

Putnam closed-end fund shares are subject to the same pre-clearance and reporting requirements as other stocks. A list of the Putnam closed-end funds can be obtained from the Code of Ethics staff.

2.3(b) Special Rules Applicable to Portfolio Managers to Putnam Closed-End Funds, Group Heads in the Investment Division, Operating Committee members, and officers of the Putnam Funds

Portfolio Managers to Putnam closed-end funds, Group Heads in Putnam’s Investment Division, Putnam Operating Committee members, and officers of the Putnam Funds will not receive clearance to engage in any combination of purchase and sale, or sale and purchase, of the shares of a given closed-end fund within six months of each other. Therefore, purchases should be made only if you intend to hold the shares more than six months, and sales should not be made if you plan to purchase more shares of that fund within six months.

2.4. Putnam Exchange-Traded Funds

Putnam employees may invest in Putnam ETFs, subject to the preclearance requirement set forth in Section 1.1(d) for certain investment professionals. However, Putnam employees must hold shares of Putnam ETFs in accounts maintained by an approved broker-dealer—see Section 4.4 below.

Section 3 — Additional Rules for Access Persons and Certain Investment Professionals

3.1. 60-Day Short-Term Rule — All Access Persons

Access Persons may not sell a security at a price higher than any price paid for that security within the past 60 calendar days, or buy a security at a price below which he or she sold the same security within the past 60 days. This rule applies to transactions across all accounts of the employee. All trades for the previous 60 days in all accounts will be compared to the trade date for the transaction in question to determine whether a violation has occurred. Thus, if within a 60-day period, an employee buys a security for $10, buys it again for $15, and then sells shares of this security for $12, this will be considered a violation even though some shares of the security in question were bought for a higher price. To further illustrate the rule, if an employee buys a security for $15 on one day, buys it again for $10 a year later, and then less than 60 days after the second purchase sells shares of this security for $12, this will be considered a violation even though some shares of the security in question were bought for a higher price more than 60 days earlier. Access Persons may also not open an option transaction for a contract that expires in 60 days or less. The holding period for securities acquired upon exercise of a purchased call option shall be calculated using the date of acquisition of the option (rather than the date of exercise of the option) as the starting point for the 60-day holding period. Further, this rule also applies to common stock and option exercise transactions. For example, an employee may purchase calls/call spreads, and he or she may buy/sell a common stock of the same security (because transactions in options and common stock shares are treated differently); however, if the employee plans to exercise the option, he or she needs to ensure that it is not in the opposite direction of the common stock transaction (at a profit) that he or she traded within the past 60 days. Although portfolio managers and analysts may sell securities at a profit within 60 days of purchase in order to comply with the requirements of the 7-Day Pre-Trade and 7-Day Post-Trade Rules (see Sections 3.2 and 3.3), any profit must be disgorged and paid to charity.

This 60-Day Short Term Rule will not apply to trades in ETFs, including Putnam ETFs.

3.2. 7-Day Pre-Trade Rule (Portfolio Managers and Analysts)

 
 

 

3.2(a) Portfolio Managers

(i) Before a portfolio manager places an order to buy a security for any Putnam client portfolio that he manages, he must sell that security or related derivative security if he has purchased it in his personal account within the preceding seven calendar days; or (ii) upon entering an order to sell a security for any Putnam client portfolio that he manages, he must disgorge to charity any losses avoided if he sold the security in his personal account within the preceding seven calendar days. Disgorgements will be measured by the difference between the selling price for the personal account and the selling price for the client account, multiplied by the number of shares sold for the personal account. For certain designated sleeved funds or portfolios, if a portfolio manager (but not the Chief Investment Officer of Equities and Director of Equity Research , who are not eligible for this exception) does not actually manage the sleeves of the funds or portfolios, but rather is a named portfolio manager for the overall fund(s), and if the portfolio manager does not have any actual knowledge of day-to-day trade activities and upcoming changes in ratings of securities in the sleeves of the funds or portfolios, the Code of Ethics Officer, the Deputy Code of Ethics Officer or their designee may override this rule.

3.2(b) Analysts

(i) Before an analyst makes an initial purchase or outperform recommendation (including an initial recommendation change) for a security (including designation of a security for inclusion in the portfolio of Putnam Research Fund), he must sell that security or related derivative security if he has purchased it in his personal account within the preceding seven calendar days; or (ii) upon making an initial sell or an underperform recommendation (including an initial recommendation change) for a security (including designation of a security for sale from the portfolio of Putnam Research Fund), he must disgorge to charity any losses avoided if he sold the security in his personal account within the preceding seven calendar days. Disgorgements will be measured by the difference between the selling price for the personal account and the price at the time that the recommendation is made, multiplied by the number of shares sold for the personal account.

For certain designated sleeved funds or portfolios, if an analyst (but not the Chief Investment Officer of Equities and Director of Equity Research , who are not eligible for this exception) does not actually manage the sleeves of the funds or portfolios, but rather is a named portfolio manager for the overall fund(s), and if the analyst does not have any actual knowledge of day-to-day trade activities and upcoming changes in ratings of securities in the sleeves of the funds or portfolios, the Code of Ethics Officer, the Deputy Code of Ethics Officer, or their designee may override this rule.

3.3. 7-Day Post-Trade Rule (Portfolio Managers and Analysts)

3.3(a) Portfolio Managers

No portfolio manager shall: (i) sell any security or related derivative security for her personal account until seven calendar days have elapsed after the date of the most recent purchase of that security or related derivative security by any Putnam client portfolio she manages or co-manages; or (ii) purchase any security or related derivative security for her personal account until seven calendar days have elapsed after the date of the most recent sale of that security or related derivative security from any Putnam client portfolio that she manages or co-manages. For certain designated sleeved funds or portfolios, if a portfolio manager (but not the Chief Investment Officer of Equities and Director of Equity Research , who are not eligible for this exception) does not actually manage the sleeves of the funds or portfolios, but rather is a named portfolio manager for the overall fund(s), and if the portfolio manager does not have any actual knowledge of day-to-day trade activities and upcoming changes in ratings of securities in the sleeves of the funds or portfolios, the Code of Ethics Officer, the Deputy Code of Ethics Officer or their designee may override this rule.

 
 

3.3(b) Analysts

No analyst shall: (i) sell any security or related derivative security for his personal account until seven calendar days have elapsed after the date of his initial buy or outperform recommendation (including an initial recommendation change) for that security or related derivative security (including designation of a security for inclusion in the portfolio of Putnam Research Fund); or (ii) purchase any security or related derivative security for his personal account until seven calendar days have elapsed after the date of his initial sell or underperform recommendation (including an initial recommendation change) for that security or related derivative security (including the removal of a security from the portfolio of Putnam Research Fund). For certain designated sleeved funds or portfolios, if an analyst (but not the Chief Investment Officer of Equities and Director of Equity Research , who are not eligible for this exception) does not actually manage the sleeves of the funds or portfolios, but rather is a named portfolio manager for the overall fund(s), and if the analyst does not have any actual knowledge of day-to-day trade activities and upcoming changes in ratings of securities in the sleeves of the funds or portfolios, the Code of Ethics Officer, the Deputy Code of Ethics Officer or their designee may override this rule.

3.4. Contra-Trading Rule (Portfolio Managers)

No portfolio manager shall, without prior clearance and written approval (which may be satisfied by email) from the Chief Investment Officer and Code of Ethics Officer, sell in his personal account any securities or related derivative securities that are held in any Putnam client portfolio that he manages or co-manages. Contact the Code of Ethics Officer for a copy of the Contra-Trading Rule Clearance Form. For certain designated sleeved funds or portfolios, the Code of Ethics Officer, the Deputy Code of Ethics Officer or their designee may permit a sale in the portfolio manager’s personal account without obtaining written approval from the Chief Investment Officer and Code of Ethics Officer, if the portfolio manager (but not the Chief Investment Officer of Equities and Director of Equity Research , who are not eligible for this exception) does not actually manage the sleeves of the funds or portfolios, but rather is a named portfolio manager for the overall fund(s), and if the portfolio manager does not have any actual knowledge of day-to-day trade activities and upcoming changes in ratings of securities in the sleeves of the funds or portfolios.

3.5. No Personal Benefit (Portfolio Managers and Analysts)

No portfolio manager shall cause, and no analyst shall recommend, an action that would cause a Putnam client to take action for the portfolio manager’s or analyst’s own personal benefit. A portfolio manager who trades in, or an analyst who recommends, particular securities for a Putnam client account in order to support the price of securities in his personal account, or who “front runs” a Putnam client order, is in violation of this Rule.

Section 4 — Reporting Requirements

4.1. Brokerage/Securities Accounts — Initial and Annual Requirements

All employees (on their own behalf and on behalf of their Immediate Family members (see Definitions)) are required to report the existence of any accounts that have the capability of purchasing any securities. This Rule includes all brokerage accounts, accounts held directly at an issuer’s transfer agent, and securities held in physical certificate form by an employee or any Immediate Family member of the employee, or any other accounts in which reportable securities can be traded and/or held. The only investment accounts excluded from this rule are accounts that are only permitted to hold open-end mutual funds (other than Putnam open-end funds) and no other investments, and TreasuryDirect accounts, which can only purchase Treasury securities.

 
 

 

To satisfy this requirement, a new employee must complete the Code of Ethics and Broker Account Certification, and Access Persons must also complete Initial Holdings Certification in the Code of Ethics PTA system, and supply the Code of Ethics Department with a copy of the most recent statement for each account, within the required time frame below:

·Access Persons — within 10 days of hire
·Non-access Persons — within 30 days of hire

In addition, a new employee must obtain written approval from the Code of Ethics staff to maintain his/her reportable accounts within 30 days of hire.

All current U.S. employees must contact the Code of Ethics staff and obtain written approval from the Code of Ethics staff prior to opening any new accounts outside of Putnam (including accounts being opened for Immediate Family members), and disclose them. This Rule includes all brokerage accounts (including a self-directed brokerage account in the Putnam 401(k) plan), accounts held directly at an issuer’s transfer agent, and securities held in physical certificate form by an employee or any Immediate Family member of the employee, or any other accounts in which reportable securities can be traded and/or held.

Non-U.S. current employees opening a new account (including accounts being opened for Immediate Family members) must disclose them to the Code of Ethics Department prior to opening, or immediately after opening, the account in advance of the first personal securities transaction in the account.

All employees will be required to certify annually that all accounts requiring disclosure are accurately listed in the Code of Ethics PTA system.

4.2. Separate Provisions for Brokerage/Securities Accounts That Are Professionally Managed (Discretionary) Accounts — Initial and Annual Requirements

If you wish to establish a professionally managed or discretionary account (including professionally managed or discretionary accounts being opened for Immediate Family members), where you completely turn over decision-making authority to a professional money manager who is not subject to this Code and you have no direct or indirect influence or control over the discretionary account, you must disclose the existence of the account and receive approval from the Code of Ethics staff in advance of the first personal securities transaction (new employees have 30 days to obtain the appropriate approval). You do not need to pre-clear or report securities transactions in these accounts. Please note that a discretionary account may not purchase an IPO or hold Putnam open-end mutual funds. The broker or advisor maintaining discretion over the account must be an independent third party, not affiliated with or related to a family member of the Putnam employee in any way.

 

In order for the account to be considered discretionary, the employee must:

Complete an initial certification in which both the employee and the broker/advisor certify that the Putnam employee or Immediate Family member does not participate in investment decisions on the account;

Complete an annual certification in which the employee certifies that the Putnam employee or Immediate Family member does not participate in investment decisions on the account, and does not have direct or indirect influence or control over the account;

Respond, and arrange for the employee’s broker/advisor to respond, to such inquiries as deemed advisable by the Code of Ethics staff in their assessment of whether the account is discretionary; and

 
 

Ensure that copies of broker statements are delivered to Putnam investments.

4.3. Account Confirmations and Statements

All employees are required to ensure that copies of all confirmations and statements are delivered to Putnam for all accounts described in Section 4.1, and to ensure that copies of all statements (but not confirmations) are delivered to Putnam for all discretionary accounts described in Section 4.2. When the employee discloses the account as required, the Code of Ethics staff will issue a 407 letter, or other communication to the entity where the employee’s account is held, requesting that confirmations and statements be sent to Putnam on the employee’s behalf. However, it is ultimately the employee’s responsibility to ensure that his or her broker has complied with this request. Employees in non-U.S. offices may be subject to different requirements with respect to the frequency of providing account confirmations and statements. Any such different requirements will be communicated to the employees by the Code of Ethics staff.

If it is discovered that these reports are not being delivered to Putnam, the Code of Ethics staff will bring this issue to the employee’s attention and request he or she assist in rectifying the issue. If it is determined that a broker has failed to comply with requests to deliver these reports, Putnam reserves the right to require the employee to close the account within 30 days by transferring the account to another dealer willing to comply with this requirement (any trades as a result of a transfer must be pre-cleared). In cases where Putnam has an electronic reporting relationship established with a firm, Putnam may rely on this electronic reporting for monitoring and record keeping in lieu of receiving trade confirmations and statements via mail.

4.4. Approved Brokers — U.S. Employees Only

U.S. employees of Putnam are required to hold each of their personal accounts (including any retirement, pension, deferred compensation, or similar accounts) at a Putnam-approved broker that provides Putnam with an electronic broker feed. The list of approved brokers is posted to the Putnam Compliance intranet homepage and the Code of Ethics PTA system. In limited circumstances, employees may be allowed to hold personal accounts at a non-Putnam-approved broker (examples include retirement accounts at current employers of Immediate Family members and accounts that cannot legally be transferred to Putnam-approved brokers). In such a case, the employee must notify the Code of Ethics Officer in writing and provide the reason why the account cannot be transferred to a Putnam-approved broker or why the employee otherwise requests an exception be granted by the Code of Ethics Officer or Deputy Code of Ethics Officer. In the event an exception is granted, the employee must arrange for trade confirmations and account statements (quarterly) to be sent to the Code of Ethics staff.

Section 5 — Additional Reporting, Certification, and Training Requirements

5.1. Initial/Annual Holdings Report — Access Persons Only

Access Persons must disclose and certify their securities holdings, including all holdings for Immediate Family member accounts, within 10 days of hire (or within 10 days of becoming an Access Person) and then on an annual basis thereafter (within 45 days after the end of the year). The report of securities holdings must include all securities that require pre-clearance under Section 1.1, as well as holdings in non-U.S. sovereign government debt, ETFs, ETNs, ETCs, options, futures, and other derivative securities, and holdings of Putnam open-end U.S. mutual funds not held through a Putnam account and U.S. registered mutual funds to which Putnam acts as advisor or sub-advisor (see Section 4). Each of the initial and annual holdings reports must contain the following information:

Initial holdings report:

·The title, number of shares, and principal amount of each security in which the Access Person had any direct or indirect beneficial ownership when the person became an Access Person,
 
 
·The name of any broker, dealer, or bank with whom the Access Person maintained an account in which any securities could be held for the direct or indirect benefit of the Access Person as of the date the person became an Access Person; and
·The date that the report is submitted by the Access Person.

Annual holdings report:

·The title, number of shares, and principal amount of each security in which the Access Person had any direct or indirect beneficial ownership,
·The name of any broker, dealer, or bank with whom the Access Person maintained an account in which any securities could be held for the direct or indirect benefit of the Access Person; and
·The date that the report is submitted by the Access Person.

5.2. Quarterly Transaction Report — Access Persons Only

Access Persons must disclose and certify all of their personal securities transactions, including transactions for Immediate Family member accounts, within 20 calendar days following the end of each quarter. If the 20th of a month after the end of a quarter falls on a holiday or weekend, the Code of Ethics Officer may extend the deadline. In addition to the securities requiring pre-clearance under Section 1.1, Access Persons are also required to disclose and certify all personal transac- tions in non-U.S. sovereign government debt, as well as ETFs, ETNs, ETCs, options, futures, and other derivative securities, and not just those requiring pre-clearance. The quarterly transaction report must contain the following information:

·The date of the transaction, the title, the interest rate and maturity date (if applicable), the number of shares, and
the principal amount of each transaction involved,
·The nature of the transaction (i.e., purchase, sale, or any other type of acquisition or disposition),
·The price of the security at which the transaction was effected,
·The name of the broker, dealer, or bank with or through which the transaction was effected, and
·The date that the report is submitted by the Access Person

5.3. Annual Certification — All Employees

Each calendar year, all employees will be required to certify that they have reviewed and understand the rules and requirements of the Code and that the list of brokerage accounts (for the employee and all Immediate Family members) disclosed in the Code of Ethics PTA system is accurate. An email notification will be sent informing employees of their requirement and the due date.

5.4. Training Requirements — All Employees

As deemed necessary by the Code of Ethics staff, employees will be required to complete training on Putnam’s Code of Ethics. Email notifications will be sent notifying employees of the requirements and the due date.

5.5. Maintenance and Distribution of the Code of Ethics

When revisions are made to the Code of Ethics, all employees will receive a revised version of the Code. The Code will be available to all employees on Putnam’s intranet site. Hard copies may be requested by contacting the Code of Ethics staff.

 
 

5.6. Procedures and Timeliness

Most certifications and reports required by the Code are completed in the Code of Ethics PTA system. There are strict deadlines for these filings. Planned absences, vacations, and business trips are not valid excuses for failing to meet a deadline. Employees will receive instructions regarding these submissions and the due dates. Please contact the Code of Ethics staff for assistance.

Section 6 — General Ethics Rules for All Employees

Putnam employees are expected to act ethically at all times in connection with their employment. In addition to complying with the specific provisions of this section, employees should contact the Code of Ethics staff or the Ombudsman if they are not sure how to proceed in any circumstances involving ethical issues or questions.

6.1. Conflicts of Interest

Your obligation to act ethically at all times includes the ethical handling of actual, apparent, and potential conflicts of interest between personal and business affairs. Please note that when this Section 6.1 refers to a “conflict of interest,” it is referring to actual, apparent, and potential conflicts of interest. Conflicts of interest may arise in various circumstances, some of which are covered in the specific situations set forth in the other portions of this Section 6. However, it is not possible to set forth each specific situation under which a conflict of interest may arise.

A conflict of interest arises when a person’s personal affairs interfere with the interests of Putnam or Putnam’s clients. A conflict of interest can also arise when an employee or a member of his or her Immediate Family takes an action or has an interest that may make it difficult to perform his or her work objectively and effectively. Conflicts of interest may arise when an employee or a member of his or her Immediate Family receives or grants improper personal benefits as a result of his or her position or in the event that an employee or a member of his or her Immediate Family enters into transactions or agreements with any entity or person with whom Putnam has a business or financial relationship. Putnam employees must recognize (including through their personal trading and conduct) that the firm’s clients always come first, that the employees and the firm must avoid any actual or potential abuse of our positions of trust and responsibility, and that the employees and the firm must never take inappropriate advantage of our positions.

Given that actual, apparent, and potential conflicts of interest may often not be clear-cut, if you have any question or doubt whatsoever, you should consult the Code of Ethics Officer or Deputy Code of Ethics Officer prior to engaging in the activity in question. Any employee who becomes aware of a conflict, potential conflict, or the appearance of a conflict is strongly encouraged to bring it to the attention of the Code of Ethics Officer or Deputy Code of Ethics Officer.

6.2. Outside Business Activities

No Putnam employee shall serve as employee, officer, director, trustee, or general partner of a corporation or entity other than Putnam, without prior written approval of the Code of Ethics Officer, who may also confirm that the employee’s manager has approved such outside position. Requests for a role at a publicly traded company are especially disfavored and are closely reviewed. Permission will be granted only in extenuating circumstances.

All employees must provide a written request seeking approval from the Code of Ethics Officer by entering the details of the proposed position in the Code of Ethics PTA system. Employees may not engage in any outside employment activity until they receive an email approving their request. Employees hired at Putnam with an outside position must disclose the position upon hire in the system and may be required to resign such position if the position presents conflicts of interest or other issues.

 
 

 

FINRA-licensed employees under PRM also have an obligation to disclose outside positions to, and receive approval from, the PRM Compliance Department. Employees must also keep this information accurate by updating their profile in the Code of Ethics system and updating the PRM Compliance Department if they change or terminate a position previously approved.

6.3. Charitable or Non-profit Roles/Role as Trustee or Fiduciary Outside Putnam Investments

6.3(a) An employee may serve as a volunteer, officer, director, or trustee of a charitable or not-for-profit institution, provided that the employee abides by the Code of Ethics with respect to any investment activity for which she has any discretion or input as a volunteer, officer, director, or trustee. The pre-clearance and reporting requirements of the Code of Ethics do not apply to the trading activities of such charitable or not-for-profit institutions for which an employee serves as a volunteer, officer, director, or trustee unless the employee has discretion for the account. You must contact the Code of Ethics staff if you are asked to serve in a role in which you may have discretion, investment, or financial authority for a charitable or not-for- profit institution to discuss whether such position is permissible and whether you must perform any additional actions prior to serving in such role.

6.3(b) Except as stated below, no Putnam employee shall serve as a trustee, an executor, a custodian, or any other fiduciary, or as an investment advisor or a counselor for any account outside Putnam. Putnam employees may serve as a fiduciary with respect to a religious or charitable trust or foundation, provided that the employee abides by the Code of Ethics with respect to any investment activity for which she has any discretion or input. The pre-clearance and reporting requirements of the Code of Ethics apply to the trading activities of such a religious or charitable trust or foundation if the employee has discretion for the account.

6.3(c) Family Trust or Estate Exception

Putnam employees may serve as a fiduciary with respect to a family trust or estate, as long as the employee abides by all of the Rules of the Code of Ethics with respect to any investment activity over which he has any discretion.

6.4. Service As a Public Official

An employee seeking to serve in an official capacity (elected or unelected, with or without compensation) for any government, government agency, or instrumentality must contact the Code of Ethics Officer prior to serving in such capacity. The Code of Ethics Officer shall review such prospective service to determine whether the service could create any potential conflicts of interest for Putnam (e.g., service of a government body that can select investment managers for a public pension plan) and to determine any appropriate steps to address conflicts.

6.5. Family Members’ Conflict Policy

No employee or member of an employee’s Immediate Family shall have any direct or indirect personal financial interests in companies that do business with Putnam, unless such interest is disclosed and approved by the Code of Ethics Officer.

6.5(a) Corporate Purchase of Goods and Services

Putnam will not acquire goods and services from any firm in which a member of an employee’s Immediate Family serves as a sales representative or in a senior management capacity, or has an ownership interest (excluding normal investment holdings in public companies), unless permission is obtained from the Chief Financial Officer and the Code of Ethics Officer. Any employee who is aware of a proposal to purchase goods and services from a firm with which a member of the employee’s Immediate Family has one of these associations must notify the Chief Financial Officer and the Code of Ethics Officer.

 
 

6.5(b) Portfolio Trading

Putnam will not allocate any client trades to any firm that employs a member of an employee’s Immediate Family as a sales representative to Putnam (in a primary, secondary, or backup role). Any Putnam employee who is aware that an Immediate Family member serves as a broker-dealer’s sales representative to Putnam should inform the Code of Ethics Officer.

6.5(c) Definition of Immediate Family (specific to this rule)

“Immediate Family” of an employee means (1) spouse, fiancé(e), or domestic partner of the employee, (2) any child, sibling, or parent of an employee and any person married to a child, sibling, or parent of an employee, and (3) any other person who lives in the same household as the employee

6.6. CFA Institute Code of Ethics and Standards of Professional Conduct

All members of the Investment Division and any other CFA institute Members or Candidates must follow and abide by the spirit of the Code of Ethics and the Standards of Professional Conduct of the CFA Institute as in effect from time to time (see the Appendix for a copy of the version in force as of the date of the Putnam Investments Code). The text of the CFA Institute Code of Ethics and Standards of Professional Conduct can be found on the Putnam Compliance Department intranet home page, which is accessible from the Putnam intranet home page. The terms of Putnam’s Code of Ethics shall govern in any case where there is a conflict between the terms of this Code and the CFA Institute Code of Ethics and Standards of Professional Conduct. Please contact the Code of Ethics Officer with any questions.

6.7. Business Ethics, Ombuds, and Hotlines

6.7(a) If a Putnam employee suspects that fraudulent, illegal, or other irregular activity (including violations of the Code of Ethics) might be occurring at Putnam, the activity should be reported immediately to Putnam’s Controller, Chief Compliance Officer, or Code of Ethics Officer through the Ombuds or hotlines described below or through Putnam’s Human Resources department

6.7(b) Putnam has established the office of the corporate ombuds as a resource to help employees address legal or ethical issues in the workplace and to allow employees to voice concerns or seek clarity on issues. The Ombuds provides a confidential, independent, and impartial source to employees to discuss potential violations of law or of company standards without fear of retribution, and serves as a neutral party with no vested interest in a particular outcome.

6.7(c)An employee who does not feel comfortable reporting activity in the manner described in 6.6(a) may instead contact any of the following on an anonymous basis:

·The Putnam Ethics hotline at 1-888-475-4210,
·The Putnam Funds Trustees’ hotline at 1-866-858-4155, or
·Putnam’s Ombuds at 1-866-ombuds7 (866-662-8377).

 

6.7(d) Employees will not be retaliated against for reporting information in good faith and in accordance with this Code. Putnam will not terminate employment, demote, transfer to an undesirable assignment, or otherwise discriminate against or harass an employee for calling attention to suspected unethical or illegal acts. It is a violation of this Code to intimidate or impose any other form of retaliation on an employee who reports any actual or suspected illegal or unethical conduct. Putnam takes claims of retaliation very seriously and will promptly investigate allegations of retaliation, subjecting anyone found responsible for retaliating against an employee who reported unethical or

 
 

illegal conduct to disciplinary action up to and including termination of employment. However, an employee who knowingly makes a false report may be subject to discipline.

Section 7 — Material, Non-Public Information and Insider Trading

7.1. Material, Non-Public Information and Insider Trading

Antifraud provisions of the U.S. securities laws as well as the laws of other countries generally prohibit persons who possess material, non-public information from trading on or communicating that information to others. Putnam’s policies, including the Insider Trading Policy that is disclosed along with other compliance policies on the Chief Compliance Officer’s Intranet page, call for strict compliance with such laws. Unlawful trading while in possession of material, non-public information is a very serious matter and can be a crime punishable by imprisonment. There is also significant monetary liability for an inside trader, which can include liability to private plaintiffs and/or the Securities and Exchange Commission, which can seek a court order requiring a violator to pay back profits, as well as penalties substantially greater than those profits. In certain cases, controlling persons of inside traders, including supervisors of inside traders or Putnam itself, can be liable for penalties.

Employees found to have conducted this activity will be immediately referred to the Code of Ethics Oversight Committee or Putnam’s Chief Executive Officer to determine the appropriate sanction, up to and including termination.

While employees in the Investment Division are most likely to come into contact with material, non-public information, the rules (and sanctions) in this area apply to all Putnam employees (see Section 7.2 for information on what to do if you believe you may have material, non-public information).

7.2. Reporting and Restrictions

Any employee who believes he or she is (or may be) in possession of material, non-public information must immediately contact Putnam’s Chief Compliance Officer or an attorney in Putnam’s Legal Department, and provide details on the information received and the source. The employee must also take precautions to maintain the confidentiality of the infor- mation in question, and not share this information with anyone outside of Putnam’s Legal and Compliance Division. This provision does not, however, prevent any employee who suspects possible violations of law or regulation from providing such information to Putnam’s Controller, Chief Compliance Officer, or Code of Ethics Officer through the Ombudsman or hotlines or through Putnam’s Human Resources department as described in Section 6.6 or to any governmental agency or entity, or self-regulatory authority, including but not limited to the Securities and Exchange Commission or the Financial Industry Regulatory Authority, or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation.

After reviewing the facts and circumstances, Putnam’s Chief Compliance Officer or Putnam’s Legal Department will make a determination as to whether possession of the information warrants restricting trading activity in the issuer’s securities for client accounts as well as personal securities transactions for employees or whether other steps are appropriate, such as the establishment of an information barrier or other trading restrictions.

7.3. Special Provisions Applicable to Putnam Affiliates

Any employee wishing to place a trade in the securities of Great-West Lifeco Inc., Power Financial Corporation, Power Corporation of Canada, or IGM Financial Inc. must contact the Code of Ethics Officer or the Deputy Code of Ethics Officer to request manual approval of the pre-clearance request. An employee requesting such approval must certify that he or she is not in possession of any material, non-public information regarding the company in which he or she is seeking to place a trade. The decision whether or not to grant the pre-clearance request is in the sole discretion of the

 
 

Code of Ethics Officer and the Deputy Code of Ethics Officer. The Code of Ethics Officer and Deputy Code of Ethics Officer will reject any such request for pre-clearance made by (i) directors of a Putnam-branded subsidiary of Putnam Investments, LLC; and (ii) persons who hold the office of chief executive officer, chief operating officer, chief financial officer, president, vice-president, secretary, assistant secretary, treasurer, or assistant treasurer of Putnam or its Putnam-branded subsidiaries, and any other person who performs functions similar to those normally performed by a person holding such office (as determined by the Legal and Compliance Department) during the period beginning five weeks before and ending two full trading days after the issue of a press release announcing quarterly or annual financial results of Great-West Lifeco Inc.

7.4. Putnam Equity Plan, TH Lee Funds, and Putnam Hedge Funds

Great-West Lifeco Inc. stock shares owned by Putnam Investments, LLC Equity Incentive Plan (or any successor plan) shareholders are administered by the Putnam HR department; therefore, holdings of such shares do not need to be reported under this Code. In addition, the exercise of rights under the Putnam Investment, LLC Equity Incentive Plan to acquire Great-West Lifeco Inc. stock and the sale of such stock during specified window periods does not need to be pre-cleared under this Code, and such transaction does not need to be reported on the quarterly transaction report for Access Persons. However, if an employee holds Great-West Lifeco Inc. stock shares outside of the Putnam Investments, LLC Equity Incentive Plan (for example, in a brokerage account), such brokerage account and the holding must be reported under this Code.

Investments in Putnam hedge funds and in certain TH Lee private funds by employees are administered by the Putnam HR department. Therefore, employees do not need to pre-clear or report such funds under this Code.

7.5. PIL Employees

For PIL employees, certain topics are covered by the Market Abuse rules of the U.K. Financial Conduct Authority. PIL employees receive information on this topic in their annual instructor-led code of ethics and compliance training.

Section 8 — Sanctions

The Code of Ethics Oversight Committee reviews violations of the Code by employees and approves sanctions that it believes fit the circumstances. These sanctions include written warnings, trading bans, suspension or termination of employment and disgorgement of profits (or payment of losses avoided) from impermissible trading. Sanctions will apply even if the exception results from inadvertence rather than intentional behaviors, although the Committee’s belief that an employee has violated the Code of Ethics intentionally may result in more severe sanctions. Sanctions for subsequent violations (based on a rolling three-year measurement period) may be more severe than for an employee’s initial violation. Sanctions are communicated to the employee and the employee’s manager. All violations concerning the use of material, non-public information, failure to report inside information, or insider trading will be presented to the Code of Ethics Oversight Committee to determine the appropriate sanction, up to and including termination. Severe criminal penalties may also be imposed.

 
 

Section 9 — Procedures for Determinations and Exemptions

No perceived ambiguity in the Code of Ethics shall excuse any violation. Any employee who has a question concerning the applicability of the Code or believes the Code to be ambiguous in a particular situation should request a determination from the Code of Ethics Officer in advance of the conduct. Employees may also request an exemption from the Code of Ethics if they do so in advance of the conduct or transaction sought to be exempted.

Any employee seeking a determination or exemption shall provide the Code of Ethics Officer with such information as the Code of Ethics Officer deems necessary to render the determination or make a decision on the exemption.

 

 

 
 

Appendix

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CODE OF ETHICS AND STANDARDS OF PROFESSIONAL CONDUCT

PREAMBLE

The CFA Institute Code of Ethics and Standards of Professional Conduct are fundamental to the values of CFA Institute and essential to achieving its mission to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. High ethical standards are critical to maintaining the public’s trust in financial markets and in the investment profession. Since their creation in the 1960s, the Code and Standards have promoted the integrity of CFA Institute members and served as a model for measuring the ethics of investment professionals globally, regardless of job function, cultural differences, or local laws and regulations. All CFA Institute members (including holders of the Chartered Financial Analyst® [CFA®] designation) and CFA candidates must abide by the Code and Standards and are encouraged to notify their employer of this responsibility. Violations may result in disciplinary sanctions by CFA Institute. Sanctions can include revocation of membership, revocation of candidacy in the CFA Program, and revocation of the right to use the CFA designation.

THE CODE OF ETHICS

Members of CFA Institute (including CFA charterholders) and candidates for the CFA designation (“Members and Candidates”) must:

• Act with integrity, competence, diligence, respect and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.

• Place the integrity of the investment profession and the interests of clients above their own personal interests.

• Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.

• Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.

• Promote the integrity and viability of the global capital markets for the ultimate benefit of society.

• Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.

STANDARDS OF PROFESSIONAL CONDUCT

I. PROFESSIONALISM

A. Knowledge of the Law. Members and Candidates must under-stand and comply with all applicable laws, rules, and regulations (including the CFA Institute Code of Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of conflict, Members and Candidates must comply with the more strict law, rule, or regulation. Members and Candidates must not knowingly participate or assist in and must dissociate from any violation of such laws, rules, or regulations.

B. Independence and Objectivity. Members and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to compromise their own or another’s independence and objectivity.

C. Misrepresentation. Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.

D. Misconduct. Members and Candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, or competence.

II. INTEGRITY OF CAPITAL MARKETS

A. Material Nonpublic Information. Members and Candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information.

B. Market Manipulation. Members and Candidates must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants.

 
 

III. DUTIES TO CLIENTS

A. Loyalty, Prudence, and Care. Members and Candidates have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgment. Members and Candidates must act for the benefit of their clients and place their clients’ interests before their employer’s or their own interests.

B. Fair Dealing. Members and Candidates must deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking investment action, or engaging in other professional activities.

C. Suitability.

1. When Members and Candidates are in an advisory relationship with a client, they must:

a. Make a reasonable inquiry into a client’s or prospective client’s investment experience, risk and return objectives, and financial constraints prior to making any investment recommendation or taking investment action and must reassess and update this information regularly.

b. Determine that an investment is suitable to the client’s financial situation and consistent with the client’s written objectives, mandates, and constraints before making an investment recommendation or taking investment action.

c. Judge the suitability of investments in the context of the client’s total portfolio.

2. When Members and Candidates are responsible for managing a portfolio to a specific mandate, strategy, or style, they must make only investment recommendations or take only investment actions that are consistent with the stated objectives and constraints of the portfolio.

D. Performance Presentation. When communicating investment performance information, Members and Candidates must make reasonable efforts to ensure that it is fair, accurate, and complete.

E. Preservation of Confidentiality. Members and Candidates must keep information about current, former, and prospective clients confidential unless:

1. The information concerns illegal activities on the part of the client or prospective client,

2. Disclosure is required by law, or

3. The client or prospective client permits disclosure of the information.

IV. DUTIES TO EMPLOYERS

A. Loyalty. In matters related to their employment, Members and Candidates must act for the benefit of their employer and not deprive their employer of the advantage of their skills and abilities, divulge confidential information, or otherwise cause harm to their employer.

B. Additional Compensation Arrangements. Members and Candidates must not accept gifts, benefits, compensation, or consideration that competes with or might reasonably be expected to create a conflict of interest with their employer’s interest unless they obtain written consent from all parties involved.

C. Responsibilities of Supervisors. Members and Candidates must make reasonable efforts to ensure that anyone subject to their supervision or authority complies with applicable laws, rules, regulations, and the Code and Standards.

V. INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS

A. Diligence and Reasonable Basis. Members and Candidates must:

1. Exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment actions.

2. Have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation, or action.

B. Communication with Clients and Prospective Clients. Members and Candidates must:

1. Disclose to clients and prospective clients the basic format and general principles of the investment processes they use to analyze investments, select securities, and construct port-folios and must promptly disclose any changes that might materially affect those processes.

2. Disclose to clients and prospective clients significant limitations and risks associated with the investment process.

3. Use reasonable judgment in identifying which factors are important to their investment analyses, recommendations, or actions and include those factors in communications with clients and prospective clients.

4. Distinguish between fact and opinion in the presentation of investment analysis and recommendations.

C. Record Retention. Members and Candidates must develop and maintain appropriate records to support their investment analyses, recommendations, actions, and other investment-related communications with clients and prospective clients.

 
 

VI. CONFLICTS OF INTEREST

A. Disclosure of Conflicts. Members and Candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer. Members and Candidates must ensure that such disclosures are prominent, are delivered in plain language, and communicate the relevant information effectively.

B. Priority of Transactions. Investment transactions for clients and employers must have priority over investment transactions in which a Member or Candidate is the beneficial owner.

C. Referral Fees. Members and Candidates must disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received from or paid to others for the recommendation of products or services.

VII. RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE

A. Conduct as Participants in CFA Institute Programs. Members and Candidates must not engage in any conduct that compromises the reputation or integrity of CFA Institute or the CFA designation or the integrity, validity, or security of the CFA Institute programs.

B. Reference to CFA Institute, the CFA Designation, and the CFA Program. When referring to CFA Institute, CFA Institute membership, the CFA designation, or candidacy in the CFA Program, Members and Candidates must not misrepresent or exaggerate the meaning or implications of membership in CFA Institute, holding the CFA designation, or candidacy in the CFA program.

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www.cfainstitute.org

Putnam Investments | 100 Federal Street | Boston, MA02110 | putnam.com  HR104 318763 10/19 

 


THE PUTNAM FUNDS

Code of Ethics

Each of The Putnam Funds (the “Funds”) has determined to adopt this Code of Ethics with respect to certain activities by officers and Trustees of the Funds which might be deemed to create possible conflicts of interest and to establish reporting requirements and enforcement procedures with respect to such activities.

I.Rules Applicable to Officers and Trustees Affiliated with Putnam Investments Trust or Its Subsidiaries
A.Incorporation of Adviser’s Code of Ethics. The provisions of the Code of Ethics for employees of Putnam Investments Trust and its subsidiaries (the “Putnam Investments Code of Ethics”), which is attached as Appendix A hereto, are hereby incorporated herein as the Funds’ Code of Ethics applicable to officers and Trustees of the Funds who are employees of the Funds or officers, directors or employees of Putnam Investments Trust or its subsidiaries. A violation of the Putnam Investments’ Code of Ethics shall constitute a violation of the Funds’ Code.
B.Reports. Officers and Trustees of each of the Funds who are made subject to the Putnam Investments’ Code of Ethics pursuant to the preceding paragraph shall file the reports required by the Putnam Investments’ Code of Ethics with the Code of Ethics Officer designated therein. A report filed with the Code of Ethics Officer shall be deemed to be filed with each of the Funds of which the reporting individual is an officer or Trustee.
C.Review and Reporting.
(1)The Code of Ethics Officer shall cause the reported personal securities transactions to be compared with completed and contemplated portfolio transactions of each of the Funds to determine whether a violation of this Code may have occurred. Before making any determination that a violation has been committed by any person, the Code of Ethics Officer shall give such person an opportunity to supply additional explanatory material.
(2)If the Code of Ethics Officer determines that a violation of any provision of this Code has or may have occurred, he shall submit his written determination, together with any additional explanatory material, to the Audit, Compliance and Risk Committee of the Funds at its next meeting when Code of Ethics matters are discussed.
D.Sanctions. In addition to reporting violations of this Code to the Audit, Compliance and Risk Committee of the Funds as provided in Section I-C(2), the Code of Ethics Officer shall also report to such Committee any sanctions imposed with respect to such violations.
 
 
II.Rules Applicable to Unaffiliated Trustees
A.Definitions.
(1)“Beneficial ownership” shall be interpreted in the same manner as it would be in determining whether a person is subject to the provisions of Section 16 of the Securities Exchange Act of 1934 and the rules and regulations thereunder.
(2)“Control” means the power to exercise a controlling influence over the management or policies of a company, unless such power is solely the result of an official position with such company.
(3)“Covered Person” means an affiliated person of the Fund, who is not made subject to the Putnam Investments Code of Ethics pursuant to Part I hereof.
(4)“Interested Trustee” means a Trustee of a Fund who is an “interested person” of the Fund within the meaning of the Investment Company Act of 1940, as amended (the “Investment Company Act”).
(5)“Purchase or sale of a security” includes, among other things, the writing of an option to purchase or sell a security.
(6)“Security” shall have the same meaning as that set forth in Section 2(a)(36) of the Investment Company Act (in effect, all securities) except that it shall not include securities issued by the Government of the United States or an agency thereof, bankers’ acceptances, bank certificates of deposit, commercial paper and high-quality short-term debt investments, including repurchase agreements, and shares of registered open-end investment companies, but shall include any security convertible into or exchangeable for a security.
(7)“Security Held or to be Acquired by a Fund” means: (i) any security, as defined herein, which, within the most recent 15 days: (A) is or has been held by the Fund, or (B) is being or has been considered by the Fund or Putnam Investments for purchase by the Fund, and (ii) any option to purchase or sell, and any security convertible into or exchangeable for, a security described in (i) above.
(8)“Unaffiliated Trustee” means a Trustee who is not made subject to the Putnam Investments Code of Ethics pursuant to Part I hereof.
B.Prohibited Actions. No Covered Person, in connection with the purchase or sale, directly or indirectly, by such Covered Person of a security held or to be acquired by the Fund, shall:
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(1)Employ any device, scheme or artifice to defraud the Fund;
(2)Make any untrue statement of a material fact to the Fund or omit to state a material fact necessary in order to make the statements made to the Fund, in light of the circumstances under which they are made, not misleading;
(3)Engage in any act, practice or course of business that operates or would operate as a fraud or deceit on the Fund; or
(4)Engage in any manipulative practice with respect to the Fund.
C.Reporting.
(1)Every Unaffiliated Trustee of a Fund shall file with the Funds’ Compliance Liaison a report containing the information described in Section II-C(2) of this Code with respect to purchases or sales of any security in which such Unaffiliated Trustee has, or by reason of such transaction acquires, any direct or indirect beneficial ownership, if such Trustee, at the time of that transaction, knew or, in the ordinary course of fulfilling his or her official duties as a Trustee of the Fund, should have known that, during the 15-day period immediately preceding or after the date of the transaction by the Trustee:
(a)such security was or is to be purchased or sold by the Fund or
(b)such security was or is being considered for purchase or sale by the Fund;

provided, however, that an Unaffiliated Trustee shall not be required to make a report with respect to transactions effected for any account over which such person does not have any direct or indirect influence or control.

(2)Every report shall be made not later than 10 days after the end of the calendar quarter in which the transaction to which the report relates was effected, and shall contain the following information:
(a)The date of the transaction, the title, the number of shares, the interest rate and maturity date (if applicable) and the principal amount of each security involved;
(b)The nature of the transaction (i.e., purchase, sale or any other type of acquisition or disposition);
(c)The price at which the transaction was effected;
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(d)The name of the broker, dealer or bank with or through whom the transaction was effected; and
(e)The date that the report is submitted by each Unaffiliated Trustee.
(3)Any such report may contain a statement that the report shall not be construed as an admission by the person making such report that he has any direct or indirect beneficial ownership in the security to which the report relates.
(4)Notwithstanding anything to the contrary contained herein, an Unaffiliated Trustee who is an “interested person” of the Funds shall file the reports required by Rule 17j-1(d)(1) under the Investment Company Act with the Code of Ethics Officer of Putnam Investments. Such reports shall be reviewed by such Officer as provided in Section I-C(1) and any related violations shall be reported by him to the Audit, Compliance and Risk Committee as provided in Section I-C(2).
D.Review and Reporting.
(1)The Compliance Liaison of the Funds, in consultation with the Code of Ethics Officer of Putnam Investments, shall cause the reported personal securities transactions that he receives pursuant to Section II-C(1) to be compared with completed and contemplated portfolio transactions of the Funds to determine whether any prohibited action listed in Section II-B may have occurred.
(2)Before making any determination that a violation of this Code has occurred, the Compliance Liaison shall give the person involved an opportunity to supply additional information regarding the transaction in question.
E.Sanctions. If the Compliance Liaison determines that a violation of this Code has occurred, he shall so advise the Funds’ Audit, Compliance and Risk Committee, and provide the Committee with a report of the matter, including any additional information supplied by such person. The Committee may impose such sanctions as it deems appropriate.
III.Miscellaneous
A.Amendments to the Putnam Investments’ Code of Ethics. Any amendment to the Putnam Investments’ Code of Ethics shall be deemed an amendment to Section 1-A of this Code effective 30 days after written notice of such amendment shall have been received by the Chair of the Funds, unless the Trustees of the Funds expressly determine that such amendment shall become effective at an earlier or later date or shall not be adopted.
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B.Records. The Funds shall maintain records in the manner and to the extent set forth below, which records may be maintained on microfilm under the conditions described in Rule 31a-2(f)(1) under the Investment Company Act and shall be available for examination by representatives of the Securities and Exchange Commission.
(1)A copy of this Code and any other code which is, or at any time within the past five years has been, in effect shall be preserved in an easily accessible place;
(2)A record of any violation of this Code and of any action taken as a result of such violation shall be preserved in an easily accessible place for a period of not less than five years following the end of the fiscal year in which the violation occurs;
(3)A copy of each report made by an officer or Trustee pursuant to this Code shall be preserved for a period of not less than five years from the end of the fiscal year in which it is made, the first two years in an easily accessible place;
(4)A list of all persons who are, or within the past five years have been, required to make reports pursuant to this Code shall be maintained in an easily accessible place; and
(5)To the extent any record required to be kept by this section is also required to be kept by Putnam Investments pursuant to the Putnam Investments’ Code of Ethics, Putnam Investments shall maintain such record on behalf of the Funds as well.
C.Confidentiality. All reports of securities transactions and any other information filed with any Fund pursuant to this Code shall be treated as confidential, but are subject to review as provided herein and by personnel of the Securities and Exchange Commission.
D.Interpretation of Provisions. The Trustees may from time to time adopt such interpretations of this Code as they deem appropriate.
E.Delegation by Chair. The Chair of the Funds may from time to time delegate any or all of his or her responsibilities under this Code, either generally or as to specific instances, to such officer or Trustee of the Funds as he or she may designate.

 

As revised June 25, 2021.

 

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