N-Q 1 a_convertiblesecurities.htm PUTNAM CONVERTIBLE SECURITIES FUND a_convertiblesecurities.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: Robert T. Burns, Vice President
One Post Office Square
Boston, Massachusetts 02109
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: October 31, 2018
Date of reporting period: January 31, 2018



Item 1. Schedule of Investments:













Putnam Convertible Securities Fund

The fund's portfolio
1/31/18 (Unaudited)
CONVERTIBLE BONDS AND NOTES (72.7%)(a)
Principal amount Value
Aerospace and defense (1.6%)
Aerojet Rocketdyne Holdings, Inc. cv. sr. unsec. sub. notes 2.25%, 12/15/23 $4,693,000 $5,886,697
Kaman Corp. 144A cv. sr. unsec. notes 3.25%, 5/1/24 4,800,000 5,494,742
11,381,439
Automotive (1.2%)
Navistar International Corp. cv. sr. unsec. sub. bonds 4.75%, 4/15/19 3,586,000 3,891,197
Tesla, Inc. cv. sr. unsec. sub. notes 1.25%, 3/1/21 4,090,000 4,703,803
8,595,000
Biotechnology (3.3%)
Alder Biopharmaceuticals, Inc. cv. sr. unsec. notes 2.50%, 2/1/25 1,872,000 1,821,297
BioMarin Pharmaceutical, Inc. cv. sr. unsec. sub. notes 1.50%, 10/15/20 5,699,000 6,662,114
Insmed, Inc. cv. sr. unsec. sub. notes 1.75%, 1/15/25 3,585,000 3,418,459
Medicines Co. (The) cv. sr. unsec. notes 2.50%, 1/15/22 6,730,000 7,803,893
Neurocrine Biosciences, Inc. 144A cv. sr. unsec. notes 2.25%, 5/15/24 2,845,000 3,828,576
23,534,339
Broadcasting (2.2%)
Liberty Media Corp. cv. sr. unsec. bonds 1.375%, 10/15/23 9,076,000 11,309,604
Liberty Media Corp. cv. sr. unsec. unsub. bonds 2.25%, 9/30/46 4,430,000 4,653,857
15,963,461
Cable television (2.0%)
DISH Network Corp. cv. sr. unsec. notes 3.375%, 8/15/26 13,887,000 14,746,022
14,746,022
Capital goods (1.1%)
Dycom Industries, Inc. cv. sr. unsec. notes 0.75%, 9/15/21 5,990,000 7,953,139
7,953,139
Commercial and consumer services (4.5%)
Euronet Worldwide, Inc. cv. sr. unsec. bonds 1.50%, 10/1/44 5,404,000 7,142,148
Macquarie Infrastructure Corp. cv. sr. unsec. unsub. notes 2.00%, 10/1/23 6,004,000 5,716,528
Priceline Group, Inc. (The) cv. sr. unsec. bonds 0.90%, 9/15/21 2,485,000 2,980,449
Priceline Group, Inc. (The) cv. sr. unsec. unsub. notes 0.35%, 6/15/20 7,140,000 10,585,079
Square, Inc. 144A cv. sr. unsec. notes 0.375%, 3/1/22 3,021,000 6,331,351
32,755,555
Components (0.6%)
Finisar Corp. cv. sr. unsec. unsub. bonds 0.50%, 12/15/36 4,510,000 4,092,221
4,092,221
Computers (6.5%)
Akamai Technologies, Inc. cv. sr. unsec. bonds zero %, 2/15/19 2,850,000 2,865,875
Avid Technology, Inc. cv. sr. unsec. notes 2.00%, 6/15/20 5,874,000 4,934,160
Citrix Systems, Inc. cv. sr. unsec. notes 0.50%, 4/15/19 3,105,000 4,113,563
HubSpot, Inc. 144A cv. sr. unsec. notes 0.25%, 6/1/22 4,733,000 5,683,789
Nutanix, Inc. 144A cv. sr. unsec. notes zero %, 1/15/23 3,869,000 3,763,725
RealPage, Inc. 144A cv. sr. unsec. notes 1.50%, 11/15/22 7,205,000 9,634,526
ServiceNow, Inc. cv. sr. unsec. unsub. bonds zero %, 11/1/18 3,470,000 6,983,049
Synchronoss Technologies, Inc. cv. sr. unsec. notes 0.75%, 8/15/19 1,834,000 1,613,003
Western Digital Corp. 144A cv. company guaranty sr. unsec. notes 1.50%, 2/1/24 7,260,000 7,409,970
47,001,660
Conglomerates (0.8%)
Siemens Financieringsmaatschappij NV cv. company guaranty sr. unsec. bonds 1.65%, 8/16/19 (Netherlands) 4,750,000 5,754,245
5,754,245
Construction (1.2%)
Cemex SAB de CV cv. unsec. sub. notes 3.72%, 3/15/20 (Mexico) 5,425,000 5,805,607
Patrick Industries, Inc. 144A cv. sr. unsec. notes 1.00%, 2/1/23 2,721,000 2,787,153
8,592,760
Consumer finance (0.6%)
Encore Capital Group, Inc. cv. company guaranty sr. unsec. bonds 3.00%, 7/1/20 3,688,000 4,031,002
4,031,002
Consumer services (2.6%)
IAC FinanceCo, Inc. 144A cv. company guaranty sr. unsec. notes 0.875%, 10/1/22 6,279,000 7,175,101
Liberty Expedia Holdings, Inc. cv. sr. unsec. unsub. bonds 1.00%, 6/30/47 6,976,000 7,048,529
Wayfair, Inc. 144A cv. sr. unsec. sub. notes 0.375%, 9/1/22 3,897,000 4,323,722
18,547,352
Electrical equipment (0.7%)
II-VI, Inc. 144A cv. sr. unsec. notes 0.25%, 9/1/22 4,297,000 4,837,829
4,837,829
Electronics (11.8%)
GT Advanced Technologies, Inc. cv. sr. unsec. sub. notes 3.00%, 12/15/20(F) 2,944,000 294
Inphi Corp. cv. sr. unsec. notes 0.75%, 9/1/21 (acquired various dates from 9/7/16 to 5/9/17, cost $5,289,733)(RES) 5,270,000 4,866,845
Intel Corp. cv. jr. unsec. sub. notes 3.25%, 8/1/39 5,655,000 13,065,312
Microchip Technology, Inc. 144A cv. sr. unsec. sub. notes 1.625%, 2/15/27 20,187,000 24,665,991
Micron Technology, Inc. cv. sr. unsec. bonds 3.00%, 11/15/43 6,690,000 10,191,533
Micron Technology, Inc. cv. sr. unsec. bonds Ser. E, 1.625%, 2/15/33 1,653,000 6,595,890
NXP Semiconductors NV cv. sr. unsec. bonds 1.00%, 12/1/19 4,624,000 5,816,229
ON Semiconductor Corp. cv. company guaranty sr. unsec. unsub. notes 1.00%, 12/1/20 7,385,000 10,557,256
OSI Systems, Inc. 144A cv. sr. unsec. unsub. notes 1.25%, 9/1/22 5,990,000 5,511,639
TTM Technologies, Inc. cv. sr. unsec. notes 1.75%, 12/15/20 2,020,000 3,592,328
84,863,317
Energy (oil field) (0.1%)
Oil States International, Inc. 144A cv. sr. unsec. notes 1.50%, 2/15/23 469,000 479,104
479,104
Entertainment (0.7%)
Live Nation Entertainment, Inc. cv. sr. unsec. bonds 2.50%, 5/15/19 3,738,000 5,019,319
5,019,319
Gaming and lottery (0.9%)
Caesars Entertainment Corp. cv. sr. unsec. notes 5.00%, 10/1/24 2,958,150 6,213,162
6,213,162
Health-care services (0.6%)
Teladoc, Inc. 144A cv. sr. unsec. notes 3.00%, 12/15/22 3,770,000 4,358,403
4,358,403
Insurance (0.5%)
Heritage Insurance Holdings, Inc. 144A cv. company guaranty sr. unsec. bonds 5.875%, 8/1/37 2,775,000 3,556,526
3,556,526
Investment banking/Brokerage (0.5%)
Hercules Capital, Inc. 144A cv. sr. unsec. notes 4.375%, 2/1/22 3,194,000 3,257,880
3,257,880
Manufacturing (0.6%)
Greenbrier Cos., Inc. (The) 144A cv. sr. unsec. notes 2.875%, 2/1/24 4,018,000 4,608,529
4,608,529
Media (1.2%)
Liberty Interactive, LLC 144A cv. sr. unsec. bonds 1.75%, 9/30/46 7,150,000 8,759,622
8,759,622
Medical technology (1.3%)
China Medical Technologies, Inc. cv. sr. unsec. bonds Ser. CMT, 4.00%, 8/15/18 (China) (In default)(NON)(F) 3,213,000 205,632
China Medical Technologies, Inc. 144A cv. sr. unsec. notes 6.25%, 12/17/18 (China) (In default)(NON)(F) 3,544,000 198,464
Nevro Corp. cv. sr. unsec. unsub. notes 1.75%, 6/1/21 3,388,000 3,785,206
Wright Medical Group, Inc. cv. sr. unsec. notes 2.00%, 2/15/20 4,876,000 5,040,565
9,229,867
Oil and gas (2.4%)
Chesapeake Energy Corp. cv. company guaranty sr. unsec. notes 5.50%, 9/15/26 8,326,000 7,607,325
Oasis Petroleum, Inc. cv. sr. unsec. notes 2.625%, 9/15/23 3,014,000 3,197,604
Whiting Petroleum Corp. cv. company guaranty sr. unsec. unsub. notes 1.25%, 4/1/20 7,347,000 6,832,710
17,637,639
Pharmaceuticals (4.5%)
Clovis Oncology, Inc. cv. sr. unsec. notes 2.50%, 9/15/21 4,430,000 5,581,698
Impax Laboratories, Inc. cv. sr. unsec. notes 2.00%, 6/15/22 5,405,000 5,261,578
Jazz Investments I, Ltd. cv. company guaranty sr. unsec. sub. bonds 1.875%, 8/15/21 (Ireland) 11,131,000 11,520,585
Pacira Pharmaceuticals, Inc. (Delaware) 144A cv. sr. unsec. sub. notes 2.375%, 4/1/22 7,536,000 7,258,585
Teligent, Inc. cv. sr. unsec. notes 3.75%, 12/15/19 2,975,000 2,683,150
32,305,596
Real estate (2.7%)
Colony Starwood Homes 144A cv. sr. unsec. notes 3.50%, 1/15/22(R) 6,927,000 7,818,969
Blackstone Mortgage Trust, Inc. cv. sr. unsec. unsub. notes 5.25%, 12/1/18(R) 5,280,000 5,947,867
Starwood Property Trust, Inc. cv. sr. unsec. unsub. notes 4.00%, 1/15/19(R) 5,630,000 5,954,288
19,721,124
Semiconductor (4.9%)
Cypress Semiconductor Corp. cv. sr. unsec. notes 4.50%, 1/15/22 4,361,000 6,192,437
Integrated Device Technology, Inc. cv. sr. unsec. unsub. notes 0.875%, 11/15/22 5,624,000 6,279,764
Jazz US Holdings, Inc. cv. company guaranty sr. unsec. notes 8.00%, 12/31/18 1,008,000 3,515,911
Novellus Systems, Inc. cv. company guaranty sr. unsec. notes 2.625%, 5/15/41 2,275,000 12,956,043
Teradyne, Inc. cv. sr. unsec. notes 1.25%, 12/15/23 4,125,000 6,304,122
35,248,277
Shipping (1.3%)
Air Transport Services Group, Inc. 144A cv. sr. unsec. notes 1.125%, 10/15/24 6,163,000 6,481,103
Scorpio Tankers, Inc. 144A cv. sr. unsec. sub. notes 2.375%, 7/1/19 3,171,000 2,896,709
9,377,812
Software (4.2%)
Coupa Software, Inc. 144A cv. sr. unsec. notes 0.375%, 1/15/23 5,171,000 5,610,535
Everbridge, Inc. cv. sr. unsec. unsub. notes 1.50%, 11/1/22 5,003,000 5,804,816
Nice Systems, Inc. cv. company guaranty sr. unsec. notes 1.25%, 1/15/24 4,813,000 5,849,282
Red Hat, Inc. cv. sr. unsec. unsub. bonds 0.25%, 10/1/19 2,865,000 5,133,653
Safeguard Scientifics, Inc. cv. sr. unsec. bonds 5.25%, 5/15/18 2,623,000 2,678,739
Workday, Inc. 144A cv. sr. unsec. notes 0.25%, 10/1/22 5,221,000 5,436,398
30,513,423
Technology services (3.8%)
Carbonite, Inc. 144A cv. sr. unsec. unsub. notes 2.50%, 4/1/22 2,600,000 3,182,920
Fidelity National Financial, Inc. cv. sr. unsec. unsub. notes 4.25%, 8/15/18 2,245,000 6,822,173
J2 Cloud Services, LLC cv. sr. unsec. notes 3.25%, 6/15/29 5,110,000 6,584,424
Proofpoint, Inc. cv. sr. unsec. unsub. notes 0.75%, 6/15/20 4,482,000 6,086,592
Twitter, Inc. cv. sr. unsec. unsub. bonds 1.00%, 9/15/21 4,650,000 4,382,002
27,058,111
Telecommunications (0.5%)
CalAmp Corp. cv. sr. unsec. notes 1.625%, 5/15/20 3,005,000 3,297,988
Powerwave Technologies, Inc. cv. unsec. sub. notes 3.875%, 10/1/27 (In default)(NON)(F) 5,121,000 512
3,298,500
Tobacco (0.8%)
Vector Group, Ltd. cv. sr. unsec. sub. notes 1.75%, 4/15/20 5,295,000 5,992,812
5,992,812
Trucks and parts (0.5%)
Horizon Global Corp. cv. sr. unsec. unsub. notes 2.75%, 7/1/22 4,018,000 3,301,611
3,301,611
Total convertible bonds and notes (cost $458,132,988) $522,586,658

CONVERTIBLE PREFERRED STOCKS (21.3%)(a)
Shares Value
Banking (1.9%)
Bank of America Corp. Ser. L, 7.25% cv. pfd. 5,335 $6,732,770
Wells Fargo & Co. Ser. L, 7.50% cv. pfd. 5,588 7,152,640
13,885,410
Computers (0.6%)
NCR Corp. Ser. A, 5.50% cv. pfd.(PIK) 3,070 4,384,739
4,384,739
Consumer (1.3%)
Stanley Black & Decker, Inc. $5.375 cv. pfd.(S) 75,882 9,039,936
9,039,936
Electric utilities (2.6%)
DTE Energy Co. $3.25 cv. pfd. 155,415 8,241,114
NextEra Energy, Inc. $3.06 cv. pfd.(S) 186,740 10,584,890
18,826,004
Financial (1.2%)
AMG Capital Trust II $2.575 cv. pfd.(S) 141,220 8,853,294
8,853,294
Health-care services (1.3%)
Anthem, Inc. $2.63 cv. pfd. 149,899 9,064,393
9,064,393
Manufacturing (2.0%)
Belden, Inc. $6.75 cv. pfd. 59,316 6,627,525
Rexnord Corp. Ser. A, $2.88 cv. pfd. 133,553 8,168,101
14,795,626
Medical technology (2.1%)
Becton Dickinson and Co. Ser. A, $3.063 cv. pfd.(S) 238,385 14,951,507
14,951,507
Oil and gas (1.4%)
Hess Corp. $4.00 cv. pfd. 164,495 9,848,316
9,848,316
Pharmaceuticals (1.6%)
Allergan PLC Ser. A, 5.50% cv. pfd. 17,865 11,571,161
11,571,161
Power producers (0.4%)
Dynegy, Inc. $7.00 cv. pfd. 32,928 2,728,062
2,728,062
Real estate (1.6%)
Alexandria Real Estate Equities, Inc. Ser. D, $1.75 cv. pfd.(R) 145,767 5,376,557
iStar, Inc. Ser. J, $2.25 cv. pfd.(R) 132,360 6,212,211
11,588,768
Regional Bells (—%)
Cincinnati Bell, Inc. Ser. B, $3.378 cum. cv. pfd. 190 9,323
9,323
Technology services (1.5%)
Mandatory Exchangeable Trust 144A $5.75 cv. pfd. 45,699 10,503,764
10,503,764
Telecommunications (1.8%)
Crown Castle International Corp. Ser. A, 6.875% cv. pfd.(S) 11,548 12,984,237
12,984,237
Total convertible preferred stocks (cost $138,777,194) $153,034,540

COMMON STOCKS (3.8%)(a)
Shares Value
Alphabet, Inc. Class C(NON) 1,890 $2,211,187
Bank of America Corp. 112,520 3,600,640
Citigroup, Inc. 28,780 2,258,654
Danaher Corp. 20,025 2,028,132
GT Advanced Technologies, Inc.(F) 476 5
Live Nation Entertainment, Inc.(NON)(S) 67,405 3,037,269
salesforce.com, Inc.(NON) 89,140 10,153,937
Stone Energy Corp.(NON)(S) 32,868 1,187,850
T-Mobile US, Inc.(NON) 45,136 2,938,354
Total common stocks (cost $20,660,104) $27,416,028

CORPORATE BONDS AND NOTES (0.2%)(a)
Principal amount Value
Stone Energy Corp. company guaranty notes 7.50%, 5/31/22 $1,088,508 $1,096,672
Total corporate bonds and notes (cost $1,227,085) $1,096,672

WARRANTS (—%)(a)(NON)
Expiration date Strike Price Warrants Value
GT Advanced Technologies, Inc.(F) 3/17/19 $0.00 487 $5
GT Advanced Technologies, Inc.(F) 3/17/19 0.00 331 3
Total warrants (cost $91,926) $8

SHORT-TERM INVESTMENTS (3.4%)(a)
Shares Value
Putnam Short Term Investment Fund 1.45%(AFF) 14,275,747 $14,275,747
Putnam Cash Collateral Pool, LLC 1.57%(AFF) 10,023,725 10,023,725
Total short-term investments (cost $24,299,472) $24,299,472

TOTAL INVESTMENTS
Total investments (cost $643,188,769) $728,433,378













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, 2017 through January 31, 2018 (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, references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to "OTC", if any, represent over-the-counter.
(a) Percentages indicated are based on net assets of $718,688,447.
(NON) This security is non-income-producing.
(RES) This security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $4,866,845, or 0.7% of net assets.
(PIK) Income may be received in cash or additional securities at the discretion of the issuer. The rate shown in parenthesis is the rate paid in kind, if applicable.
(AFF) Affiliated company. For investments in Putnam Cash Collateral Pool, LLC and Putnam Short Term Investment Fund, the rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with any company which is under common ownership or control were as follows:
Name of affiliate Fair value as of 10/31/17 Purchase cost Sale proceeds Investment income Shares outstanding and fair value as of 1/31/18
Short-term investments
Putnam Cash Collateral Pool, LLC*# $18,807,175 $27,704,072 $36,487,522 $53,852 $10,023,725
Putnam Short Term Investment Fund** 20,689,743 55,620,095 62,034,091 92,944 14,275,747
Total Short-term investments $39,496,918 $83,324,167 $98,521,613 $146,796 $24,299,472
* No management fees are charged to Putnam Cash Collateral Pool, LLC. There were no realized or unrealized gains or losses during the period.
# 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 fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. 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. The fund received cash collateral of $10,023,725, which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC. The rate quoted in the security description is the annualized 7-day yield at the close of the reporting period. At the close of the reporting period, the value of securities loaned amounted to $9,777,995.
** 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.

(F) This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities are classified as Level 3 for ASC 820 based on the securities' valuation inputs.
(R) Real Estate Investment Trust.
(S) This security is 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 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.

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.
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 under ASC 820. If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security.
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.
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.
Many securities markets and exchanges outside the U.S. close prior to the scheduled 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 scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value certain 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. The foreign equity securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. 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 in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.
To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.












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 $2,938,354 $— $—
    Conglomerates 2,028,132 — —
    Consumer cyclicals 3,037,269 — —
    Energy 1,187,850 — —
    Financials 5,859,294 — —
    Technology 12,365,124 — 5
Total common stocks 27,416,023 — 5
Convertible bonds and notes — 522,181,756 404,902
Convertible preferred stocks 9,848,316 143,186,224 —
Corporate bonds and notes — 1,096,672 —
Warrants — — 8
Short-term investments 14,275,747 10,023,725 —
Totals by level $51,540,086 $676,488,377 $404,915
* Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.

During the reporting period, transfers within the fair value hierarchy, if any (other than certain transfers involving non-U.S. equity securities as described in Note 1), did not represent, in the aggregate, more than 1% of the fund's net assets measured as of the end of the period. Transfers are accounted for using the end of period pricing valuation method.
At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio.

Fair Value 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 Fair value Fair value
Equity contracts $8 $—
Total $8 $—

The volume of activity for the reporting period for any derivative type that was held at the close of the period is listed below and was based on an average of the holdings of that derivative at the end of each fiscal quarter in the reporting period:
Warrants (number of warrants) 800

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: Not applicable
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: March 28, 2018

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: March 28, 2018

By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer
Date: March 28, 2018