N-Q 1 a_convertincgwth.htm PUTNAM CONVERTIBLE INCOME-GROWTH TRUST

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY

Investment Company Act file number: (811- 02280 ) 
 
Exact name of registrant as specified in charter:  Putnam Convertible-Income Growth Trust 
 
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109 
 
Name and address of agent for service:  Beth S. Mazor, Vice President 
  One Post Office Square 
  Boston, Massachusetts 02109 
 
Copy to:  John W. Gerstmayr, Esq. 
  Ropes & Gray LLP 
  One International Place 
  Boston, Massachusetts 02110 
 
Registrant’s telephone number, including area code:    (617) 292-1000 

Date of fiscal year end: October 31, 2007

Date of reporting period: January 31, 2007

Item 1. Schedule of Investments:


Putnam Convertible Income-Growth Trust     
The fund's portfolio     
1/31/07 (Unaudited)     
CONVERTIBLE BONDS AND NOTES (65.8%)(a)     
  Principal amount  Value 

Aerospace and Defense (4.3%)     
Armor Holdings, Inc. cv. sr. sub. notes stepped-coupon     
2s (zero %, 11/1/11) 2024 (STP)  $4,400,000  $5,665,000 
Lockheed Martin Corp. cv. sr. notes FRN 5.124s, 2033  11,900,000  16,388,440 
Orbital Sciences Corp. 144A cv. sr. sub. notes 2.438s,     
2027  4,000,000  3,875,000 
Triumph Group, Inc. 144A cv. sr. sub. notes 2 5/8s,     
2026  5,000,000  6,000,000 
    31,928,440 

 
Airlines (0.7%)     
Pinnacle Airlines Corp. cv. sr. notes 3 1/4s, 2025  3,700,000  5,415,875 

 
Automotive (1.2%)     
United Auto Group, Inc. 144A cv. sr. sub. notes     
3 1/2s, 2026  7,800,000  9,057,750 

 
Biotechnology (5.3%)     
Amgen, Inc. 144A cv. sr. notes 3/8s, 2013  10,000,000  9,975,000 
Amylin Pharmaceuticals, Inc. cv. sr. notes 2 1/2s, 2011  740,000  980,500 
Amylin Pharmaceuticals, Inc. 144A cv. sr. notes     
2 1/2s, 2011  2,500,000  3,312,500 
Connetics Corp. 144A cv. sr. notes 2s, 2015  4,000,000  4,010,000 
Cubist Pharmaceuticals, Inc. cv. sub. notes 2 1/4s,     
2013  6,000,000  5,482,500 
Genzyme Corp. (General Division) cv. sr. notes 1 1/4s,     
2023  7,900,000  8,423,375 
MannKind Corp. cv. sr. unsec. notes 3 3/4s, 2013  3,500,000  3,683,750 
MGI Pharma, Inc. 144A cv. sr. sub. notes     
stepped-coupon 1.682s (zero %, 3/2/11) 2024 (STP)  5,350,000  3,591,188 
    39,458,813 

 
Broadcasting (1.0%)     
Sinclair Broadcast Group, Inc. cv. bonds 6s, 2012  8,010,000  7,549,425 

 
Cable Television (0.8%)     
Charter Communications, Inc. cv. sr. notes 5 7/8s, 2009  3,200,000  5,036,000 
Charter Communications, Inc. 144A cv. sr. notes     
5 7/8s, 2009  658,000  1,035,526 
    6,071,526 

 
Coal (0.7%)     
Peabody Energy Corp. cv. jr. sub. debs 4 3/4s, 2066  5,000,000  4,893,750 

 
Commercial and Consumer Services (0.5%)     
Euronet Worldwide, Inc. 144A cv. debs. 3 1/2s, 2025  3,400,000  3,557,250 

 
Communications Equipment (1.4%)     
Andrew Corp. cv. sub. notes 3 1/4s, 2013  6,700,000  6,800,500 
Arris Group, Inc. cv. sr. unsec. notes 2s, 2026  3,000,000  3,380,100 
    10,180,600 

 
Computers (2.7%)     
Anixter International, Inc. cv. Liquid Yield Option     
Notes (LYON) Ser. * zero %, 2033  11,500,000  9,660,000 
Cray, Inc. cv. sr. sub. notes 3s, 2024  2,000,000  1,917,500 
Cray, Inc. 144A cv. sr. sub. notes 3s, 2024  4,600,000  4,410,250 
Gateway, Inc. 144A cv. sr. notes 2s, 2011  2,400,000  1,950,000 
Gateway, Inc. 144A cv. sr. notes 1 1/2s, 2009  2,500,000  2,162,500 
    20,100,250 

 
Conglomerates (1.6%)     
Tyco International Group SA cv. unsub. sr. company     
guaranty Ser. B, 3 1/8s, 2023 (Luxembourg)  8,100,000  11,988,000 

 
Consumer Services (0.6%)     
FTI Consulting, Inc. 144A cv. sr. sub. notes 3 3/4s,     
2012  3,600,000  4,095,000 

 
Electric Utilities (1.1%)     
CenterPoint Energy, Inc. cv. unsec. sub. notes FRN 2s,     
2029  204,900  8,009,541 

 
Electrical Equipment (0.7%)     
WESCO International, Inc. cv. sr. debs. Ser. *,     
2 5/8s, 2025  400,000  629,500 
WESCO International, Inc. 144A cv. sr. debs. 2 5/8s,     
2025  2,900,000  4,563,875 
    5,193,375 

 
Electronics (6.1%)     
Diodes, Inc. cv. sr. notes 2 1/4s, 2026  3,000,000  2,868,750 
Flextronics International, Ltd. cv. sub. notes 1s,     
2010 (Singapore)  6,800,000  6,706,500 
General Cable Corp. cv. company guaranty 7/8s, 2013  4,000,000  4,200,000 
Intel Corp. 144A cv. sub. bonds 2.95s, 2035  10,700,000  9,790,500 
Itron, Inc. cv. sr. sub. notes 2 1/2s, 2026  2,500,000  2,812,500 
KEMET Corp. 144A cv. sr. notes 2 1/4s, 2026  4,000,000  4,060,000 
Liberty Media Corp. cv. sr. notes 3 1/2s, 2031  6,900,000  5,879,835 
LSI Logic Corp. cv. sub. notes 4s, 2010  8,800,000  9,152,000 
    45,470,085 



Energy (2.1%)     
Cal Dive International, Inc. 144A cv. sr. notes     
3 1/4s, 2025  3,800,000  4,849,750 
Pride International, Inc. cv. sr. notes 3 1/4s, 2033  4,700,000  5,769,250 
SESI, LLC 144A cv. company guaranty stepped-coupon     
1 1/2s (1 1/4s, 12/1/11) 2026 (STP)  5,000,000  4,781,250 
    15,400,250 

 
Energy (Other) (0.5%)     
Covanta Holding Corp. cv. sr. debs. 1s, 2027  3,700,000  3,796,041 

 
Entertainment (1.4%)     
Lions Gate Entertainment Corp. cv. sr. sub. bonds     
stepped-coupon 3 5/8s (3 1/8s, 3/15/12), 2025 (Canada)     
(STP)  1,300,000  1,319,500 
Lions Gate Entertainment Corp. 144A cv. sr. sub. bonds     
3 5/8s, 2025 (Canada)  5,800,000  5,887,000 
Macrovision Corp. 144A cv. sr. notes 2 5/8s, 2011  3,000,000  3,371,250 
    10,577,750 

 
Gaming & Lottery (0.7%)     
Scientific Games Corp. 144A cv. company guaranty 3/4s,     
2024  4,400,000  5,109,500 

 
Health Care Services (1.4%)     
Manor Care, Inc. cv. sr. notes stepped-coupon 2 1/8s     
(1 7/8s, 8/10/10) 2035 (STP)  5,700,000  7,082,250 
United Therapeutics Corp. 144A cv. sr. notes 1/2s, 2011  3,500,000  3,294,375 
    10,376,625 

 
Insurance (0.9%)     
Prudential Financial, Inc. cv. unsec. sub notes FRN     
2.614s, 2035  6,600,000  6,796,746 

 
Lodging/Tourism (1.3%)     
Carnival Corp. cv. debs. 2s, 2021 (Panama)  7,000,000  9,336,250 

 
Manufacturing (1.0%)     
Trinity Industries, Inc. cv. sub. notes 3 7/8s, 2036  7,000,000  7,218,750 

 
Media (1.2%)     
Walt Disney Co. (The) cv. sr. notes 2 1/8s, 2023  6,800,000  8,457,500 

 
Medical Technology (4.5%)     
Atherogenics, Inc. 144A cv. sr. notes 1 1/2s, 2012  3,720,000  2,948,100 
Beckman Coulter, Inc. 144A cv. sr. notes 2 1/2s, 2036  5,000,000  5,312,500 
China Medical Technologies, Inc. 144A cv. sr. sub.     
notes 3 1/2s, 2011 (China)  3,500,000  3,552,500 
Cytyc Corp. 144A cv. sr. notes 2 1/4s, 2024  3,650,000  4,019,563 
EPIX Medical, Inc. cv. sr. notes 3s, 2024  3,300,000  2,743,125 
EPIX Medical, Inc. 144A cv. sr. notes 3s, 2024  4,300,000  3,574,375 
Medtronic, Inc. cv. sr. notes 1 5/8s, 2013  2,200,000  2,343,000 
Medtronic, Inc. 144A cv. sr. notes 1 5/8s, 2013  8,500,000  9,052,500 
    33,545,663 

 
Oil & Gas (1.6%)     
Devon Energy Corp. cv. debs. 4.9s, 2008  7,000,000  9,633,750 
McMoran Exploration Co. 144A cv. notes 6s, 2008  2,300,000  2,535,750 
    12,169,500 

 
Pharmaceuticals (5.2%)     
Alza Corp. cv. sub. debs. zero %, 2020  11,400,000  10,459,500 
CV Therapeutics, Inc. cv. sub. notes 3 1/4s, 2013  4,200,000  3,717,000 
New River Pharmaceuticals, Inc. 144A cv. sub. notes     
3 1/2s, 2013  3,100,000  5,653,625 
Watson Pharmaceuticals, Inc. cv. debs. 1 3/4s, 2023  9,100,000  8,474,375 
Wyeth cv. sr. notes FRN 4.877s, 2024  9,700,000  10,372,210 
    38,676,710 

 
Real Estate (2.0%)     
Alexandria Real Estate Equities, Inc. 144A cv. sr.     
notes 3.7s, 2027 (R)  4,000,000  4,185,000 
Corporate Office Properties LP 144A cv. company     
guaranty 3 1/2s, 2026 (R)  3,400,000  3,706,000 
Forest City Enterprises, Inc. cv. notes 3 5/8s, 2011     
(R)  3,100,000  3,375,125 
Forest City Enterprises, Inc. 144A cv. notes 3 5/8s,     
2011 (R)  3,500,000  3,795,750 
    15,061,875 

 
Retail (1.8%)     
Nash Finch Co. cv. sr. sub. notes stepped-coupon     
1.631s (zero %, 3/15/13) 2035 (STP)  10,085,000  4,223,094 
Nash Finch Co. 144A cv. sr. sub. notes stepped-coupon     
1.631s (zero %, 3/15/13) 2035 (STP)  8,500,000  3,559,375 
Pantry, Inc. (The) cv. sr. sub. notes 3s, 2012  2,000,000  2,440,000 
Pantry, Inc. (The) 144A cv. sub. notes 3s, 2012  2,600,000  3,172,000 
    13,394,469 

 
Semiconductor Production Equipment (0.9%)     
Kulicke & Soffa Industries, Inc. cv. sub. notes 1/2s,     
2008  7,300,000  6,560,875 

 
Software (1.9%)     
Cadence Design Systems, Inc. 144A cv. sr. notes     
1 1/2s, 2013  3,500,000  3,705,625 
EMC Corp. 144A cv. sr. notes 1 3/4s, 2013  10,000,000  10,612,500 
    14,318,125 



Technology (1.5%)     
Acquicor Technology, Inc. 144A cv. notes 8s, 2011  3,422,000  3,490,440 
ON Semiconductor Corp. 144A cv. sr. sub. notes 2 5/8s,     
2026  7,000,000  7,437,500 
    10,927,940 

 
Technology Services (2.2%)     
DST Systems, Inc. 144A cv. sr. notes Ser. A, 4 1/8s,     
2023  5,000,000  7,668,750 
Safeguard Scientifics, Inc. 144A cv. sr. notes 2 5/8s,     
2024  10,500,000  8,820,000 
    16,488,750 

 
Telecommunications (4.0%)     
American Tower Corp. cv. sr. notes 3s, 2012  4,300,000  8,686,000 
Dobson Communications Corp. 144A cv. sr. notes 1 1/2s,     
2025  7,000,000  8,067,500 
Level 3 Communications, Inc. cv. sr. notes 3 1/2s, 2012  3,000,000  4,005,000 
NII Holdings, Inc. 144A cv. sr. unsec. notes 2 3/4s,     
2025  5,500,000  8,813,750 
    29,572,250 

 
Waste Management (1.0%)     
Waste Connections, Inc. cv. sr. notes 3 3/4s, 2026  4,900,000  5,310,375 
Waste Connections, Inc. 144A cv. sr. notes 3 3/4s, 2026  2,000,000  2,167,500 
    7,477,875 

 
Total convertible bonds and notes (cost $442,721,643)    $488,233,124 
 
CONVERTIBLE PREFERRED STOCKS (28.3%)(a)     
  Shares  Value 
 
Agriculture (1.0%)     
Bunge, Ltd. 4.875% cv. pfd.  68,954  $7,498,748 

 
Automotive (1.0%)     
Ford Motor Co. Capital Trust II $3.25 cum. cv. pfd.  203,600  7,507,750 

 
Banking (2.7%)     
Marshall & Ilsley Corp. $1.625 cv. pfd.  322,900  8,521,331 
Washington Mutual Capital Trust I $2.688 cum. cv. pfd.  210,500  11,775,370 
    20,296,701 

 
Chemicals (1.0%)     
Huntsman Corp. $2.50 cv. pfd.  173,575  7,658,997 

 
Electric Utilities (1.0%)     
Entergy Corp. $3.813 cv. pfd.  125,000  7,343,750 

 
Financial (2.0%)     
Fannie Mae Ser. 04-1, 5.375% cv. pfd.  148  14,832,930 

 
Forest Products and Packaging (0.8%)     
Smurfit-Stone Container Corp. Ser. A, $1.75 cum. cv.     
pfd. (S)  241,613  5,798,712 

 
Insurance (4.7%)     
Alleghany Corp. 5.75% cv. pfd.  24,023  7,939,602 
Citigroup Funding, Inc. FRN, Ser. GNW, 5.02% cv. pfd.  418,900  13,572,360 
Conseco, Inc. $1.375 cum. cv. pfd.  267,500  6,587,188 
Platinum Underwriters Holdings, Ltd. Ser. A, 6.00% cv.     
pfd. (Bermuda) (S)  226,400  6,703,704 
    34,802,854 

 
Investment Banking/Brokerage (3.1%)     
Affiliated Managers Group, Inc. 144A $2.55 cv. pfd.  138,000  7,503,750 
E*Trade Financial Corp. $1.531 cum. cv. pfd.  355,000  10,783,125 
Merrill Lynch & Co., Inc. Ser. JNC, 6.75% cv. pfd. (S)  102,940  4,529,360 
    22,816,235 

 
Metals (1.4%)     
Freeport-McMoRan Copper & Gold, Inc. 5.50% cv. pfd.  7,800  10,309,650 

 
Natural Gas Utilities (2.1%)     
El Paso Corp. 144A 4.99% cv. pfd.  6,550  8,790,919 
Southern Union Co. $2.50 cv. pfd.  124,700  6,640,275 
    15,431,194 

 
Oil & Gas (2.3%)     
Chesapeake Energy Corp. 6.25% cv. pfd.  40,215  10,244,771 
Edge Petroleum Corp. Ser. A, $2.875 cum. cv. pfd.  117,560  6,699,744 
    16,944,515 

 
Power Producers (1.1%)     
NRG Energy, Inc. 5.75% cv. pfd.  29,500  8,370,625 

 
Real Estate (2.2%)     
Entertainment Properties Trust Ser. C, $1.437 cum. cv.     
pfd.  205,900  5,260,745 
Simon Property Group, Inc. $3.00 cv. pfd.  122,200  11,150,750 
    16,411,495 

 
Retail (0.8%)     
Retail Ventures, Inc. $3.312 cv. pfd.  79,940  5,625,778 



Tobacco (1.1%)     
Universal Corp. 6.75% cv. pfd.  6,888  8,360,310 

Total convertible preferred stocks (cost $192,630,085)    $210,010,244 
COMMON STOCKS (3.1%)(a)     
  Shares  Value 

CSX Corp.  210,200  $7,733,258 
FutureFuel Corp. (NON)  200,000  1,650,000 
Information Services Group, Inc. (Unit) (NON)  343,750  2,750,000 
Transforma Acquisition Group, Inc. (Unit) (NON)  312,500  2,665,625 
U.S. Bancorp (S)  220,600  7,853,360 

Total common stocks (cost $20,343,546)    $22,652,243 
UNITS (1.1%)(a) (cost $6,491,598)     
  Units  Value 

Elf Special Financing, Ltd. 144A cv. units FRN Ser. B,     
5.71s, 2009 (Cayman Islands)  65  $8,380,450 

 
 
WARRANTS (0.1%)(a)(NON) (cost $66,000)     
  Warrants  Value 

FutureFuel Corp.  200,000  $700,000 

 
 
SHORT-TERM INVESTMENTS (2.7%)(a)     
  Principal amount/
shares
 
Value 

Putnam Prime Money Market Fund (e)  13,164,499  $13,164,499 
Short-term investments held as collateral for loaned     
securities with yields ranging from 5.27% to 5.46% and     
due dates ranging from February 1, 2007 to     
March 23, 2007 (d)  $7,171,042  7,159,360 

Total short-term investments (cost $20,323,859)    $20,323,859 
TOTAL INVESTMENTS     
Total investments (cost $682,576,731)(b)    $750,299,920 


NOTES

(a) Percentages indicated are based on net assets of $741,879,627.

(b) The aggregate identified cost on a tax basis is $682,576,731, resulting in gross unrealized appreciation and depreciation of $78,640,383 and $10,917,194, respectively, or net unrealized appreciation of $67,723,189.

(NON) Non-income-producing security.

(STP) The interest rate and date shown parenthetically represent the new interest rate to be paid and the date the fund will begin accruing interest at this rate.

(d) The fund may lend securities, through its agents, to qualified borrowers in order to earn additional income. The loans are collateralized by cash and/or securities in an amount at least equal to the market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund’s agents; the fund will bear the risk of loss with respect to the investment of the cash collateral. At January 31, 2007, the value of securities loaned amounted to $6,895,936. The fund received cash collateral of $7,159,360 which is pooled with collateral of other Putnam funds into 36 issues of high-grade, short-term investments.

(e) The fund invests in Putnam Prime Money Market Fund, an open-end management investment company managed by Putnam Investment Management, LLC ("Putnam Management"), the fund's manager, an indirect wholly-owned subsidiary of Putnam, LLC. Investments in Putnam Prime Money Market Fund are valued at its closing net asset value each business day. Management fees paid by the fund are reduced by an amount equal to the management and administrative fees paid by Putnam Prime Money Market Fund with respect to assets invested by the fund in Putnam Prime Money Market Fund. Income distributions earned by the fund totaled $112,878 for the period ended January 31, 2007. During the period ended January 31, 2007, cost of purchases and proceeds of sales of investments in Putnam Prime Money Market Fund aggregated $55,153,431 and $68,852,247, respectively.

(R) Real Estate Investment Trust.

(S) Securities on loan, in part or in entirety, at January 31, 2007.

At January 31, 2007, liquid assets totaling $2,750,000 have been designated as collateral for open forward commitments

144A after the name of an issuer represents securities exempt from registration under Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

The rates shown on Floating Rate Notes (FRN) are the current interest rates at January 31, 2007.

The dates shown on debt obligations are the original maturity dates.

Security valuation Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets. If no sales are reported -- as in the case of some securities traded over-the-counter -- a security is valued at its last reported bid price. Market quotations are not considered to be readily available for certain debt obligations; such investments are valued at fair value on the basis of valuations furnished by an independent pricing service or dealers, approved by the Trustees. 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. Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors, including movements in the U.S. securities markets. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent.

Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. Certain investments, including certain restricted securities, are also valued at fair value following procedures approved by the Trustees. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and does not reflect an actual market price, which may be different by a material amount.

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com


Item 2. Controls and Procedures:

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

(b) Changes in internal control over financial reporting:
Effective January 1, 2007, the fund retained State Street Bank and Trust Company ("State Street") as its custodian. Putnam Fiduciary Trust Company, the fund's previous custodian, is managing the transfer of the fund's assets to State Street. This transfer is expected to be completed for all Putnam funds during the first half of 2007, with PFTC remaining as custodian with respect to fund assets until the assets are transferred. Also effective January 1, 2007, the fund's investment manager, Putnam Investment Management, LLC entered into a Master Sub-Accounting Services Agreement with State Street, under which the investment manager has delegated to State Street responsibility for providing certain administrative, pricing, and bookkeeping services for the fund.

Item 3. Exhibits:

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

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam Convertible-Income Growth Trust

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: March 28, 2007

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/ Charles E. Porter
Charles E. Porter


Principal Executive Officer
Date: March 28, 2007

By (Signature and Title):

/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: March 28, 2007