N-Q 1 a_convertiblesec.htm PUTNAM CONVERTIBLE SECURITIES FUND a_convertiblesec.htm


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 Securities Fund
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
800 Boylston Street
Boston, Massachusetts 02199-3600
Registrant’s telephone number, including area code: (617) 292-1000
Date of fiscal year end: October 31, 2011
Date of reporting period: July 31, 2011



Item 1. Schedule of Investments:













Putnam Convertible Securities Fund

The fund's portfolio
7/31/11 (Unaudited)
CONVERTIBLE BONDS AND NOTES (68.1%)(a)
Principal amount Value
Aerospace and defense (1.7%)
AAR Corp. 144A cv. sr. unsec. notes 2 1/4s, 2016 $4,490,000 $4,697,663
Kaman Corp. 144A cv. sr. unsec. notes 3 1/4s, 2017 3,225,000 3,986,906
Triumph Group, Inc. 144A cv. sr. sub. notes 2 5/8s, 2026 2,030,000 4,014,325
12,698,894
Airlines (0.6%)
Continental Airlines, Inc. cv. sr. unsec. unsub. notes 4 1/2s, 2015 3,430,000 4,188,888
4,188,888
Automotive (1.3%)
Ford Motor Co. cv. sr. unsec. notes 4 1/4s, 2016 3,905,000 6,106,444
TRW Automotive, Inc. 144A cv. company guaranty sr. notes 3 1/2s, 2015 2,055,000 3,791,475
9,897,919
Biotechnology (4.8%)
Amylin Pharmaceuticals, Inc. cv. sr. unsec. notes 3s, 2014 3,235,000 3,004,506
BioMarin Pharmaceuticals, Inc. cv. sr. sub. notes 1 7/8s, 2017 3,270,000 5,301,488
Cubist Pharmaceuticals, Inc. cv. sr. unsec. notes 2 1/2s, 2017 5,905,000 7,883,175
Dendreon Corp. 144A cv. sr. unsec. sub. notes 4 3/4s, 2014 565,000 2,087,675
Gilead Sciences, Inc. 144A cv. sr. notes 1 5/8s, 2016 7,120,000 8,348,200
Human Genome Sciences, Inc. cv. sr. unsec. sub. notes 2 1/4s, 2012 3,500,000 4,497,500
United Therapeutics Corp. cv. sr. unsec. notes 1/2s, 2011 500,000 761,875
United Therapeutics Corp. 144A cv. sr. unsec. notes 1/2s, 2011 2,205,000 3,359,869
35,244,288
Broadcasting (0.6%)
XM Satellite Radio, Inc. 144A cv. company guaranty sr. unsec. sub. notes 7s, 2014 3,248,000 4,648,700
4,648,700
Cable television (1.1%)
Virgin Media, Inc. cv. sr. unsec. notes 6 1/2s, 2016 (United Kingdom) 5,095,000 8,260,269
8,260,269
Coal (2.0%)
Alpha Natural Resources, Inc. cv. sr. unsec. notes 2 3/8s, 2015 4,865,000 5,606,913
James River Coal Co. 144A cv. sr. unsec. notes 3 1/8s, 2018 3,962,000 3,887,911
Peabody Energy Corp. cv. jr. unsec. sub. debs. 4 3/4s, 2041 4,220,000 5,153,675
14,648,499
Commercial and consumer services (1.9%)
Alliance Data Systems Corp. cv. sr. unsec. notes 1 3/4s, 2013 5,045,000 6,640,481
CBIZ, Inc. 144A cv. sr. sub. notes 4 7/8s, 2015 3,220,000 3,960,600
Priceline.com, Inc. 144A cv. sr. unsec. notes 1 1/4s, 2015 1,829,000 3,379,078
13,980,159
Communications equipment (0.6%)
Powerwave Technologies, Inc. cv. sr. unsec. sub. notes 3 7/8s, 2027 5,121,000 4,532,085
4,532,085
Computers (3.0%)
EMC Corp. cv. sr. unsec. notes 1 3/4s, 2013 2,550,000 4,248,938
EMC Corp. 144A cv. sr. unsec. notes 1 3/4s, 2013 5,800,000 9,664,250
Quantum Corp. 144A cv. sr. unsec. sub. notes 3 1/2s, 2015 2,941,000 2,909,237
TeleCommunication Systems, Inc. 144A cv. sr. unsec. notes 4 1/2s, 2014 5,205,000 4,996,800
21,819,225
Consumer finance (1.1%)
Dollar Financial Corp. cv. sr. notes 3s, 2028 6,035,000 7,717,256
7,717,256
Consumer services (1.5%)
Avis Budget Group, Inc. cv. sr. notes 3 1/2s, 2014 4,595,000 5,439,331
Hertz Global Holdings, Inc. cv. sr. unsec. notes 5 1/4s, 2014 2,970,000 5,438,813
10,878,144
Containers (0.6%)
Owens-Brockway Glass Container, Inc. 144A cv. company guaranty sr. unsec. notes 3s, 2015 4,931,000 4,727,596
4,727,596
Electrical equipment (0.4%)
WESCO International, Inc. cv. company guaranty sr. unsec. notes 6s, 2029 1,624,000 3,209,430
3,209,430
Electronics (4.9%)
Advanced Micro Devices, Inc. cv. sr. unsec. notes 6s, 2015 3,761,000 3,826,818
Intel Corp. cv. jr. sub. notes 3 1/4s, 2039 8,715,000 10,327,275
Micron Technology, Inc. 144A cv. sr. notes Ser. A, 1 1/2s, 2031 2,000,000 1,937,500
Micron Technology, Inc. 144A cv. sr. unsec. notes Ser. B, 1 7/8s, 2031 1,600,000 1,538,000
PMC - Sierra, Inc. cv. sr. unsec. unsub. notes 2 1/4s, 2025 3,430,000 3,592,925
SanDisk Corp. cv. sr. unsec. notes 1 1/2s, 2017 8,255,000 8,894,763
TTM Technologies, Inc. cv. sr. unsec. notes 3 1/4s, 2015 5,490,000 6,444,162
36,561,443
Energy (oil field) (0.3%)
Global Industries, Ltd. 144A cv. unsec. notes 2 3/4s, 2027 3,000,000 2,141,400
2,141,400
Energy (other) (0.7%)
Covanta Holding Corp. cv. sr. unsec. notes 3 1/4s, 2014 4,205,000 4,946,131
4,946,131
Financial (0.9%)
MF Global Holdings Ltd. cv. sr. unsec. unsub. notes 1 7/8s, 2016 6,454,000 6,300,718
6,300,718
Health-care services (3.1%)
Brookdale Senior Living, Inc. cv. sr. unsec. unsub. notes 2 3/4s, 2018 5,522,000 5,318,376
Health Management Associates, Inc. 144A cv. sr. sub. notes 3 3/4s, 2028 4,600,000 5,451,000
LifePoint Hospitals, Inc. cv. sr. sub. notes 3 1/2s, 2014 4,675,000 4,902,906
Lincare Holdings, Inc. cv. sr. unsec. unsub. notes Ser. B, 2 3/4s, 2037 4,630,000 5,052,488
Providence Service Corp. (The) cv. sr. unsec. sub. notes 6 1/2s, 2014 2,493,000 2,455,605
23,180,375
Homebuilding (0.9%)
Lennar Corp. 144A cv. sr. notes 2 3/4s, 2020 6,117,000 6,491,666
6,491,666
Investment banking/Brokerage (1.2%)
Ares Capital Corp. 144A cv. sr. unsec. notes 5 3/4s, 2016 5,016,000 5,266,800
KKR Financial Holdings, LLC cv. sr. unsec. notes 7 1/2s, 2017 2,600,000 3,669,250
8,936,050
Lodging/Tourism (2.1%)
Gaylord Entertainment Co. 144A cv. company guaranty sr. unsec. notes 3 3/4s, 2014 4,350,000 5,459,250
Host Hotels & Resorts LP 144A cv. company guaranty sr. unsec. notes 2 1/2s, 2029(R) 2,465,000 3,189,094
MGM Resorts International Co. cv. company guaranty sr. unsec. notes 4 1/4s, 2015 5,920,000 6,726,600
15,374,944
Manufacturing (3.0%)
General Cable Corp. cv. unsec. sub. notes stepped-coupon 4 1/2s (2 1/4s, 11/15/19) 2029(STP) 6,580,000 8,619,800
Teleflex, Inc. cv. sr. unsec. sub. notes 3 7/8s, 2017 7,111,000 8,186,539
Trinity Industries, Inc. cv. unsec. sub. notes 3 7/8s, 2036 5,555,000 5,499,450
22,305,789
Media (1.0%)
Liberty Media, LLC cv. sr. unsec. unsub. notes 3 1/2s, 2031 6,930,000 3,794,175
MasTec, Inc. cv. company guaranty sr. unsec. unsub. notes 4 1/4s, 2014 2,390,000 3,704,500
7,498,675
Medical technology (2.2%)
China Medical Technologies, Inc. cv. sr. unsec. bonds Ser. CMT, 4s, 2013 (China) 4,100,000 2,854,625
China Medical Technologies, Inc. 144A cv. sr. unsec. notes 6 1/4s, 2016 (China) 3,544,000 2,321,320
Hologic, Inc. cv. sr. unsec. notes stepped-coupon 2s (zero %, 12/15/16) 2037(STP) 5,070,000 5,653,050
Invitrogen Corp. cv. sr. unsec. unsub. notes 1 1/2s, 2024 5,115,000 5,428,294
16,257,289
Metals (4.9%)
Clearwire Communications, LLC/Clearwire Finance, Inc. 144A cv. company guaranty sr. unsec. notes 8 1/4s, 2040 7,438,000 5,003,543
Goldcorp, Inc. cv. sr. notes 2s, 2014 (Canada) 6,617,000 8,312,937
Molycorp, Inc. 144A cv. sr. unsec. notes 3 1/4s, 2016 1,601,000 1,932,567
Newmont Mining Corp. cv. company guaranty sr. unsub. notes 1 5/8s, 2017 4,900,000 6,749,750
Steel Dynamics, Inc. cv. sr. notes 5 1/8s, 2014 4,260,000 5,026,800
U.S. Steel Corp. cv. sr. unsec. notes 4s, 2014 5,475,000 7,829,250
USEC, Inc. cv. sr. unsec. notes 3s, 2014 2,000,000 1,432,500
36,287,347
Oil and gas (1.8%)
Chesapeake Energy Corp. cv. sr. unsec. notes company guaranty 2 1/4s, 2038 4,550,000 4,237,188
Endeavour International Corp. 144A cv. company guaranty sr. unsec. notes 5 1/2s, 2016 3,768,000 3,631,410
St. Mary Land & Exploration Co. cv. sr. unsec. notes 3 1/2s, 2027 4,055,000 5,803,719
13,672,317
Pharmaceuticals (2.0%)
Akorn, Inc. 144A cv. sr. notes 3 1/2s, 2016 3,208,000 3,456,620
Endo Pharmaceuticals Holdings, Inc. cv. sr. unsec. sub. notes 1 3/4s, 2015 3,910,000 5,361,588
Teva Pharmaceutical Finance, LLC cv. company guaranty sr. unsec. debs Ser. C, 1/4s, 2026 (Israel) 5,400,000 5,899,500
14,717,708
Real estate (1.9%)
Digital Realty Trust LP 144A cv. sr. unsec. notes 5 1/2s, 2029(R) 2,950,000 4,432,375
iStar Financial, Inc. cv. sr. unsec. unsub. notes FRN 0.746s, 2012(R) 5,450,000 5,003,645
Morgans Hotel Group Co. cv. sr. sub. notes 2 3/8s, 2014 5,145,000 4,469,719
13,905,739
Retail (1.4%)
Iconix Brand Group, Inc. 144A cv. sr. unsec. sub. notes 2 1/2s, 2016 6,038,000 6,264,425
Sonic Automotive, Inc. cv. sr. unsec. notes 5s, 2029 3,045,000 4,171,650
10,436,075
Semiconductor (3.0%)
Lam Research Corp. 144A cv. sr. unsec. notes 1 1/4s, 2018 5,888,000 5,645,120
Linear Technology Corp. cv. sr. unsec. unsub. notes Ser. A, 3s, 2027 7,615,000 7,900,563
Novellus Systems, Inc. 144A cv. sr. notes 2 5/8s, 2041 5,460,000 5,222,490
Photronics, Inc. 144A cv. sr. notes 3 1/4s, 2016 3,169,000 3,340,126
22,108,299
Shipping (0.4%)
Genco Shipping & Trading, Ltd. cv. sr. unsec. notes 5s, 2015 4,400,000 3,113,000
3,113,000
Software (3.0%)
Microsoft Corp. 144A cv. sr. unsec. notes zero %, 2013 3,961,000 4,094,684
Safeguard Scientifics, Inc. cv. sr. unsec. sub. notes 10 1/8s, 2014 8,600,000 12,297,991
SYNNEX Corp. cv. sr. notes 4s, 2018 4,925,000 5,596,031
21,988,706
Technology (1.5%)
CACI International, Inc. cv. sr. unsec. sub. notes 2 1/8s, 2014 2,100,000 2,535,750
CACI International, Inc. 144A cv. sr. unsec. sub. notes 2 1/8s, 2014 1,585,000 1,913,888
ON Semiconductor Corp. cv. company guaranty sr. unsec. sub. notes 2 5/8s, 2026 785,000 870,369
ON Semiconductor Corp. 144A cv. company guaranty sr. unsec. sub. notes 2 5/8s, 2026 5,300,000 5,876,375
11,196,382
Technology services (1.7%)
CSG Systems International, Inc. 144A cv. sr. unsec. sub. notes 3s, 2017 3,138,000 3,126,233
DST Systems, Inc. cv. sr. unsec. unsub. bonds FRB Ser. C, 4 1/8s, 2023 4,565,000 5,432,350
Salesforce.com, Inc. cv. sr. unsec. unsub. notes 3/4s, 2015 2,100,000 3,714,375
12,272,958
Telecommunications (3.4%)
Equinix, Inc. cv. sr. unsec. sub. notes 4 3/4s, 2016 7,060,000 10,210,525
Level 3 Communications, Inc. cv. sr. unsec. unsub. notes 6 1/2s, 2016 3,235,000 6,239,506
SBA Communications Corp. cv. sr. unsec. notes 1 7/8s, 2013 8,120,000 8,891,400
25,341,431
Telephone (0.8%)
Leap Wireless International, Inc. cv. sr. unsec. notes 4 1/2s, 2014 6,255,000 5,942,250
5,942,250
Trucks and parts (0.8%)
Meritor, Inc. cv. company guaranty sr. unsec. notes stepped-coupon 4 5/8s (zero %, 3/1/16) 2026(STP) 6,095,000 6,110,238
6,110,238
Total convertible bonds and notes (cost $463,783,688) $503,538,282

CONVERTIBLE PREFERRED STOCKS (24.9%)(a)
Shares Value
Automotive (1.1%)
General Motors Co. Ser. B, $2.375 cv. pfd. 184,725 $8,555,077
8,555,077
Banking (4.5%)
Bank of America Corp. Ser. L, 7.25% cv. pfd. 8,520 8,285,700
Citigroup, Inc. $7.50 cv. pfd. 105,555 11,837,991
Huntington Bancshares Ser. A, 8.50% cv. pfd. 3,480 3,967,200
Wells Fargo & Co. Ser. L, 7.50% cv. pfd. 8,875 9,397,649
33,488,540
Communications equipment (0.8%)
Lucent Technologies Capital Trust I 7.75% cv. pfd. 6,505 6,350,506
6,350,506
Consumer (1.0%)
Stanley Black & Decker, Inc. $4.75 cv. pfd. 64,486 7,311,100
7,311,100
Electric utilities (2.5%)
Great Plains Energy, Inc. $6.00 cv. pfd. 134,787 8,595,367
PPL Corp. $4.75 cv. pfd. 23,164 1,310,619
PPL Corp. $4.375 cv. pfd. 150,271 8,251,381
18,157,367
Financial (1.0%)
AMG Capital Trust II $2.575 cv. pfd. 171,955 7,329,582
7,329,582
Food (0.6%)
Bunge, Ltd. $4.875 cv. pfd. 43,885 4,404,957
4,404,957
Insurance (3.1%)
Assured Guaranty, Ltd. $4.25 cv. pfd. (Bermuda) 62,685 3,711,579
Hartford Financial Services Group, Inc. (The) $1.182 cv. pfd.(S) 162,848 3,928,708
MetLife, Inc. $3.75 cv. pfd. 119,838 9,340,174
XL Group PLC $2.688 cv. pfd. 214,410 5,827,664
22,808,125
Media (2.4%)
Interpublic Group of Cos, Inc. (The) Ser. B, 5.25% cv. pfd. 8,165 8,777,375
Nielsen Holdings NV $3.125 cv. pfd. 147,150 8,709,441
17,486,816
Metals (1.0%)
Vale Capital II $3.375 cv. pfd. (Cayman Islands) 81,200 7,257,250
7,257,250
Natural gas utilities (—%)
El Paso Energy Capital Trust I $2.375 cv. pfd. 6,056 276,305
276,305
Oil and gas (2.2%)
Apache Corp. Ser. D, $3.00 cv. pfd. 172,936 11,262,457
Chesapeake Energy Corp. 144A 5.75% cv. pfd. 3,694 5,097,720
16,360,177
Real estate (2.8%)
Alexandria Real Estate Equities, Inc. Ser. D, $1.75 cv. pfd. 170,550 4,580,973
Entertainment Properties Trust Ser. C, $1.438 cum. cv. pfd. 388,350 7,767,000
Health Care REIT, Inc. Ser. I, $3.25 cv. pfd. 160,935 8,318,328
20,666,301
Shipping (0.5%)
Swift Mandatory Common Exchange Security Trust 144A 6.00% cv. pfd. 319,935 3,655,641
3,655,641
Technology services (0.4%)
Unisys Corp. Ser. A, 6.25% cv. pfd. 39,451 2,672,805
2,672,805
Telecommunications (1.0%)
Crown Castle International Corp. $3.125 cum. cv. pfd. 126,241 7,685,552
7,685,552
Total convertible preferred stocks (cost $174,278,882) $184,466,101

COMMON STOCKS (3.1%)(a)
Shares Value
Bed Bath & Beyond, Inc.(NON) 64,090 $3,748,624
Brazil Ethanol, Inc. 144A (Unit)(NON) 312,500 31,250
Comcast Corp. Class A 158,280 3,801,886
Dendreon Corp.(NON) 15,400 568,260
Hess Corp. 27,030 1,853,177
National Oilwell Varco, Inc. 45,930 3,700,580
Newfield Exploration Co.(NON) 28,790 1,941,022
NII Holdings, Inc.(NON) 78,000 3,303,300
Wells Fargo & Co. 136,840 3,823,310
Total common stocks (cost $22,565,886) $22,771,409

CORPORATE BONDS AND NOTES (1.4%)(a)
Principal amount Value
Affinion Group Holdings, Inc. 144A company guaranty sr. notes 11 5/8s, 2015 $1,346,000 $1,349,365
Affinion Group, Inc. company guaranty sr. unsec. sub. notes 11 1/2s, 2015 179,000 183,923
Clearwire Communications, LLC/Clearwire Finance, Inc. 144A company guaranty sr. notes 12s, 2015 1,290,000 1,317,413
Intelsat Luxembourg SA company guaranty sr. unsec. notes 11 1/4s, 2017 (Luxembourg) 1,265,000 1,353,550
Jazz Technologies, Inc. company guaranty sr. unsec. notes 8s, 2015(F) 2,857,000 2,814,145
Provident Funding Associates LP/PFG Finance Corp. 144A sr. notes 10 1/8s, 2019 1,840,000 1,874,500
Surgical Care Affiliates, Inc. 144A sr. sub. notes 10s, 2017 1,320,000 1,353,000
Total corporate bonds and notes (cost $9,805,894) $10,245,896

WARRANTS (—%)(a)(NON)
Expiration date Strike Price Warrants Value
Tower Semiconductor, Ltd. 144A (Israel)(F) 6/30/15 $0.01 1,085,630 $260,551
Total warrants (cost $217,126) $260,551

SHORT-TERM INVESTMENTS (2.3%)(a)
Shares Value
Putnam Cash Collateral Pool, LLC 0.17%(d) 3,530,800 $3,530,800
Putnam Money Market Liquidity Fund 0.05%(e) 13,504,474 13,504,474
Total short-term investments (cost $17,035,274) $17,035,274

TOTAL INVESTMENTS
Total investments (cost $687,686,750)(b) $738,317,513













Key to holding's abbreviations
FRB Floating Rate Bonds
FRN Floating Rate Notes
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 November 1, 2010 through July 31, 2011 (the reporting period).
(a) Percentages indicated are based on net assets of $739,740,251.
(b) The aggregate identified cost on a tax basis is $687,744,791, resulting in gross unrealized appreciation and depreciation of $75,996,395 and $25,423,673, respectively, or net unrealized appreciation of $50,572,722.
(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 agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash 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 agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. At the close of the reporting period, the value of securities loaned amounted to $3,465,280. The fund received cash collateral of $3,530,800 which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Investment Management, LLC (Putnam Management), the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged by Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close fo the reporting period.
(e) The fund invested in Putnam Money Market Liquidity Fund, an open-end management investment company managed by Putnam Management. Investments in Putnam Money Market Liquidity Fund are valued at its closing net asset value each business day. Income distributions earned by the fund are recorded as interest income and totaled $10,473 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $228,625,600 and $216,952,335, respectively. Management fees charged to Putnam Money Market Liquidity Fund have been waived by Putnam Management. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.
(F) Is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures (ASC 820) based on the securities' valuation inputs.
(R) Real Estate Investment Trust.
(S) Security on loan, in part or in entirety, at the close of the reporting period.
Debt obligations are considered secured unless otherwise indicated.
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 FRB and FRN are the current interest rates at the close of the reporting period.
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, and are classified as Level 1 securities. 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 and is generally categorized as a Level 2 security.
Market quotations are not considered to be readily available for certain debt obligations 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 considers such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2.
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, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which will generally represent a transfer from a Level 1 to a Level 2 security, will be classified as Level 2. 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.
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. 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 and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.












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
Common stocks:
    Communication services $7,105,186 $— $—
    Consumer cyclicals 3,748,624 — —
    Energy 7,494,779 31,250 —
    Financials 3,823,310 — —
    Health care 568,260 — —
Total common stocks 22,740,159 31,250 —
Convertible bonds and notes — 503,538,282 —
Convertible preferred stocks — 184,466,101 —
Corporate bonds and notes — 7,431,751 2,814,145
Warrants — — 260,551
Short-term investments 13,504,474 3,530,800 —
Totals by level $36,244,633 $698,998,184 $3,074,696


At the start and/or close of the reporting period, Level 3 investments in securities were not considered a significant portion of the fund's portfolio.
Market Values of Derivative Instruments as of the close of the reporting period
Asset derivatives Liability derivatives
Derivatives not accounted for as hedging instruments under ASC 815 Market value Market value
Equity contracts $260,551 $—
Total $260,551 $—


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: During the period, State Street Bank and Trust Company, which provides certain administrative, pricing and bookkeeping services for the Putnam funds pursuant to an agreement with Putnam Investment Management, LLC, began utilizing different accounting systems and systems support in providing 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 Securities Fund
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: September 29, 2011

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 29, 2011

By (Signature and Title):
/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: September 29, 2011