N-Q 1 a_moneymark.htm PUTNAM MONEY MARKET FUND
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: (811-02608)  
 
Exact name of registrant as specified in charter: Putnam Money Market 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
  One International Place
  Boston, Massachusetts 02110
 
Registrant’s telephone number, including area code: (617) 292-1000
 
Date of fiscal year end: September 30 2010    
 
Date of reporting period: June 30, 2010    

 

Item 1. Schedule of Investments



Putnam Money Market Fund         

The fund's portfolio         
6/30/10 (Unaudited)         
 
U.S. GOVERNMENT AGENCY OBLIGATIONS (19.1%)(a)         
  Yield (%)  Maturity date  Principal amount  Value 

Bank of America Corp. FDIC guaranteed notes FRN, MTN  0.566  9/13/10  $28,000,000  $28,000,000 
Citibank N.A. FDIC guaranteed notes FRN  0.583  9/30/10  19,924,000  19,924,000 
Citigroup Funding, Inc. FDIC guaranteed sr. notes FRN,         
MTN, Ser. D  0.438  7/30/10  31,000,000  31,000,000 
Fannie Mae discount notes  0.235  9/1/10  25,300,000  25,289,761 
Fannie Mae discount notes  0.230  8/25/10  10,000,000  9,996,486 
Fannie Mae discount notes  0.215  7/12/10  3,300,000  3,299,783 
Fannie Mae unsec. notes FRN  0.188  7/13/10  40,000,000  39,999,842 
Federal Farm Credit Bank FRB  0.540  8/10/10  15,800,000  15,800,000 
Federal Farm Credit Bank FRB  0.347  11/26/10  24,000,000  24,000,000 
Federal Farm Credit Bank FRB, Ser. 1  0.357  2/28/11  23,000,000  23,000,000 
Federal Home Loan Bank unsec. bonds FRB, Ser. 1  0.290  7/9/10  28,000,000  28,000,000 
Federal Home Loan Bank unsec. bonds FRB, Ser. 1  0.238  11/8/10  20,000,000  20,000,000 
Federal Home Loan Bank unsec. bonds FRB, Ser. 2  0.310  11/19/10  24,300,000  24,298,121 
Freddie Mac discount notes  0.300  9/20/10  17,420,000  17,408,242 
Freddie Mac discount notes  0.245  9/7/10  58,000,000  57,972,961 
Freddie Mac discount notes  0.240  9/15/10  23,000,000  22,988,347 
Freddie Mac unsec. notes FRN  0.508  9/24/10  24,600,000  24,598,857 
Freddie Mac unsec. notes FRN  0.464  8/24/10  12,000,000  12,000,000 
Freddie Mac unsec. notes FRN  0.200  7/14/10  31,000,000  31,000,000 

Total U.S. government agency obligations (cost $458,576,400)        $458,576,400 
 
 
U.S. TREASURY OBLIGATIONS (19.1%)(a)         
  Yield (%)  Maturity date  Principal amount  Value 

U.S. Treasury Bills  0.250  4/7/11  $25,000,000  $24,951,486 
U.S. Treasury Bills  0.200  2/10/11  50,000,000  49,939,333 
U.S. Treasury Bills  0.200  8/26/10  36,100,000  36,088,769 
U.S. Treasury Bills  0.160  9/2/10  25,000,000  24,993,219 
U.S. Treasury Bills  0.150  10/28/10  30,000,000  29,985,472 
U.S. Treasury Bills  0.130  9/23/10  20,000,000  19,994,143 
U.S. Treasury Bills  0.130  8/19/10  43,000,000  42,992,391 
U.S. Treasury Bills  0.100  10/14/10  22,000,000  21,993,583 
U.S. Treasury Bills  0.090  9/30/10  50,000,000  49,988,499 
U.S. Treasury Bills  0.090  9/9/10  50,000,000  49,990,813 
U.S. Treasury Notes (k)  4.875  4/30/11  23,000,000  23,866,672 
U.S. Treasury Notes (k)  0.875  3/31/11  38,000,000  38,165,041 
U.S. Treasury Notes (k)  0.875  2/28/11  44,000,000  44,166,915 

Total U.S. treasury obligations (cost $457,116,336)        $457,116,336 
 
 
CERTIFICATES OF DEPOSIT (15.2%)(a)         
  Interest rate (%)  Maturity date  Principal amount  Value 

Bank of Nova Scotia (Canada)  0.370  8/10/10  $24,000,000  $23,997,864 
Bank of Tokyo-Mitsubishi UFJ, Ltd. (Japan)  0.300  7/12/10  25,200,000  25,200,000 
BNP Paribas/New York, NY (France)  0.300  8/16/10  31,600,000  31,600,000 
Credit Agricole Corporate and Investment Bank/New York         
FRN (France)  0.390  7/2/10  27,800,000  27,800,071 
DnB NOR Bank ASA/New York FRN (Norway)  0.354  10/19/10  26,000,000  26,000,000 
ING Bank NV/London (Netherlands)  0.320  8/9/10  18,500,000  18,500,000 
ING Bank NV/London (Netherlands)  0.280  7/8/10  33,300,000  33,300,000 
Lloyds TSB Bank PLC/New York, NY FRN (United Kingdom)  0.851  5/6/11  15,500,000  15,500,000 
National Australia Bank, Ltd. (Australia)  0.340  7/30/10  23,000,000  23,000,093 
Rabobank Nederland NV/NY (Netherlands)  0.300  9/10/10  20,500,000  20,500,000 
Royal Bank of Canada/New York, NY FRN (Canada)  0.351  11/4/10  25,450,000  25,450,000 
Societe Generale/New York (France)  0.320  8/12/10  22,000,000  21,998,973 
Toronto Dominion Bank/NY FRN (Canada)  0.351  2/4/11  25,700,000  25,700,000 
Toronto Dominion Bank/NY FRN (Canada)  0.347  10/29/10  26,215,000  26,215,000 
Westpac Banking Corp./NY FRN (Australia)  0.408  10/21/10  19,000,000  19,000,000 

Total certificates of deposit (cost $363,762,001)        $363,762,001 
 
 
REPURCHASE AGREEMENTS (12.4%)(a)         
      Principal amount  Value 

Interest in $325,000,000 joint tri-party repurchase         
agreement dated June 30, 2010 with Bank of America         
Securities, LLC due July 1, 2010 -- maturity value         
of $119,400,166 for an effective yield of 0.05%         
(collateralized by various Ginnie Mae mortgage backed         
securities with coupon rates ranging from 4.50% to         
6.00% and due dates ranging from March 15, 2038 to         
June 15, 2040, valued at $331,500,001)      $119,400,000  $119,400,000 
Interest in $100,000,000 joint tri-party repurchase         
agreement dated June 30, 2010 with Citigroup Global         
Markets, Inc. due July 1, 2010 -- maturity value         
of $40,700,294 for an effective yield of 0.26%         
(collateralized by various corporate bonds and notes         
with coupon rates ranging from zero % to 8.60% and due         
dates ranging from September 15, 2010 to         
March 1, 2040, valued at $105,000,000)      40,700,000  40,700,000 
Interest in $300,000,000 joint tri-party repurchase         
agreement dated June 30, 2010 with Citigroup Global         
Markets, Inc. due July 1, 2010 -- maturity value         
of $71,000,158 for an effective yield of 0.08%         
(collateralized by various mortgage backed securities         
with coupon rates ranging from 2.668% to 6.68% and due         
dates ranging from February 15, 2024 to         
October 15, 2040, valued at $306,000,000)      71,000,000  71,000,000 
Interest in $55,000,000 joint tri-party repurchase         

 



agreement dated June 30, 2010 with Deutsche Bank         
Securities, Inc. due July 1, 2010 -- maturity value         
of $22,000,128 for an effective yield of 0.21%         
(collateralized by various corporate bonds and notes         
with coupon rates ranging from 1.015% to 8.50% and due         
dates ranging from March 20, 2012 to May 15, 2014,         
valued at $57,750,001)      22,000,000  22,000,000 
Interest in $80,000,000 joint tri-party repurchase         
agreement dated June 30, 2010 with JPMorgan         
Securities, Inc. due July 1, 2010 -- maturity value         
of $45,000,325 for an effective yield of 0.26%         
(collateralized by various corporate bonds and notes         
with coupon rates ranging from 1.207% to 3.25% and due         
dates ranging from July 8, 2010 to June 22, 2012,         
valued at $81,600,309)      45,000,000  45,000,000 

Total repurchase agreements (cost $298,100,000)        $298,100,000 
 
 
SHORT-TERM INVESTMENT FUND (9.8%)(a)         
      Shares  Value 

Putnam Money Market Liquidity Fund 0.11% (e)      234,199,241  $234,199,241 

Total short-term investment fund (cost $234,199,241)        $234,199,241 
 
 
CORPORATE BONDS AND NOTES (9.7%)(a)         
  Interest rate (%)  Maturity date  Principal amount  Value 

Commonwealth Bank of Australia 144A sr. unsec. notes         
FRN (Australia)  0.321  6/28/11  $25,400,000  $25,400,000 
JPMorgan Chase & Co. sr. unsec. notes FRN, MTN, Ser. C  0.858  9/24/10  23,000,000  23,015,456 
JPMorgan Chase Bank NA sr. notes FRN  0.348  6/21/11  30,800,000  30,800,000 
National Australia Bank, Ltd. 144A sr. unsec. notes         
FRN (Australia)  0.377  1/27/11  26,000,000  26,000,000 
Nordea Bank AB 144A FRN (Sweden)  0.475  6/20/11  26,100,000  26,100,000 
Rabobank Nederland NV 144A sr. unsec. unsub. notes FRN         
(Netherlands) (M)  0.436  8/16/14  12,000,000  12,000,000 
Royal Bank of Canada 144A sr. unsec. notes FRN         
(Canada) (M)  0.790  5/15/14  27,375,000  27,375,000 
Svenska Handelsbanken AB 144A FRN (Sweden)  0.333  2/11/11  27,000,000  27,000,000 
Westpac Banking Corp. 144A sr. unsec. notes FRN         
(Australia)  0.401  7/1/11  16,000,000  16,000,000 
Westpac Banking Corp. sr. unsec. notes FRN, MTN         
(Australia)  0.324  5/27/11  18,000,000  18,000,000 

Total corporate bonds and notes (cost $231,690,456)        $231,690,456 
 
 
ASSET-BACKED COMMERCIAL PAPER (5.2%)(a)         
  Yield (%)  Maturity date  Principal amount  Value 

Royal Park Investments Funding Corp. (Belgium)  0.300  7/9/10  $18,400,000  $18,398,773 
Royal Park Investments Funding Corp. (Belgium)  0.290  7/7/10  10,000,000  9,999,517 
Sheffield Receivables (United Kingdom)  0.270  8/11/10  26,000,000  25,992,005 
Straight-A Funding, LLC  0.420  8/24/10  20,000,000  19,987,400 
Windmill Funding Corp. (United Kingdom)  0.330  7/19/10  16,500,000  16,497,278 
Windmill Funding Corp. (United Kingdom)  0.300  7/6/10  23,000,000  22,999,042 
Windmill Funding Corp. (United Kingdom)  0.270  7/7/10  11,500,000  11,499,483 

Total asset-backed commercial paper (cost $125,373,498)        $125,373,498 
 
 
COMMERCIAL PAPER (5.2%)(a)         
  Yield (%)  Maturity date  Principal amount  Value 

Australia & New Zealand Banking Group, Ltd. 144A         
(Australia)  0.397  11/23/10  $30,000,000  $30,000,000 
Banco Bilbao Vizcaya Argentaria SA/London (Spain)  0.310  7/16/10  23,000,000  22,997,029 
DnB NOR Bank ASA 144A FRN (Norway)  0.441  3/1/11  24,300,000  24,300,000 
International Bank for Reconstruction and Development         
(Supra-Nation)  0.250  7/1/10  4,000,000  4,000,000 
Nationwide Building Society (United Kingdom)  0.330  7/15/10  24,000,000  23,996,920 
Nordea North America, Inc. (Sweden)  0.280  7/16/10  20,000,000  19,997,667 

Total commercial paper (cost $125,291,616)        $125,291,616 
 
 
MUNICIPAL BONDS AND NOTES (4.5%)(a)         
  Yield (%)  Maturity date  Principal amount  Value 

 
Colorado (0.9%)         
Colorado Housing & Finance Authority VRDN Class I,         
Ser. AA-1 (Fannie Mae (LOC)), (Freddie Mac (LOC)) (M)  0.320  5/1/41  $17,185,000  $17,185,000 
Colorado Housing & Finance Authority VRDN (Single         
Family) Class I, Ser. C-2 (Fannie Mae (LOC)), (Freddie         
Mac (LOC)) (M)  0.320  11/1/35  4,475,000  4,475,000 
        21,660,000 

 
Indiana (0.4%)         
Indiana State Finance Authority VRDN (Lease         
appropriation) Ser. A-2 (M)  0.140  2/1/37  10,200,000  10,200,000 
        10,200,000 

 
Maryland (0.9%)         
Johns Hopkins University Commercial Paper Ser. A  0.290  9/8/10  8,641,000  8,641,000 
Johns Hopkins University Commercial Paper Ser. C  0.250  7/21/10  12,500,000  12,500,000 
        21,141,000 

 
Massachusetts (0.9%)         
Massachusetts Health & Educational Facility         
Authorities Commercial Paper (Harvard University) Ser.         
EE  0.250  8/12/10  8,000,000  8,000,000 
Massachusetts Health & Educational Facility         
Authorities Commercial Paper (Harvard University) Ser.         

 



EE  0.250  8/4/10  12,668,000  12,668,000 
        20,668,000 

 
Oklahoma (0.4%)         
Oklahoma State Turnpike Authority VRDN, Ser. F (M)  0.140  1/1/28  10,300,000  10,300,000 
        10,300,000 

 
Texas (1.0%)         
Tarrant County, Cultural Education Facilities Finance         
Corp. VRDN (Texas Health Resources), Ser. D (M)  0.130  11/15/19  10,000,000  10,000,000 
University of Texas System Board of Regents Revenue         
Financing System Commercial Paper Ser. A  0.250  8/3/10  5,500,000  5,500,000 
University of Texas System Board of Regents Revenue         
Financing System Commercial Paper Ser. A  0.250  8/3/10  8,400,000  8,400,000 
        23,900,000 

Total municipal bonds and notes (cost $107,869,000)        $107,869,000 
 
 
TOTAL INVESTMENTS         

Total investments (cost $2,401,978,548) (b)        $2,401,978,548 

 



Key to holding's abbreviations

FDIC Guaranteed  Federal Deposit Insurance Corp. Guaranteed 
FRB  Floating Rate Bonds 
FRN  Floating Rate Notes 
LOC  Letter of Credit 
MTN  Medium Term Notes 
VRDN  Variable Rate Demand 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 October 1, 2009 through June 30, 2010 (the reporting period).

(a) Percentages indicated are based on net assets of $2,396,812,855.

(b) The aggregate identified cost on a financial reporting and tax basis is the same.

(e) The fund invested in Putnam Money Market Liquidity 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 Investments, LLC. 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 $103,418 for the reporting period. During the reporting period, cost of purchases and proceeds of sales of investments in Putnam Money Market Liquidity Fund aggregated $1,431,204,902 and $1,255,849,098, 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.

(k) The rates shown are the current interest rates at the close of the reporting period.

(M) The security's effective maturity date is less than one year.

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, FRN and VRDN are the current interest rates at the close of the reporting period.

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 (as a percentage of Portfolio Value):

United States  67.8% 
Australia  6.6 
Canada  5.4 
United Kingdom  4.8 
Netherlands  3.5 
France  3.4 
Sweden  3.0 
Norway  2.1 
Belgium  1.2 
Japan  1.0 
Spain  1.0 
Supra-Nation  0.2 

Total  100.0% 

 

Security valuation: The valuation of the fund’s portfolio instruments is determined by means of the amortized cost method (which approximates market value) as set forth in Rule 2a-7 under the Investment Company Act of 1940. The amortized cost of an instrument is determined by valuing it at its original cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity and is generally categorized as a Level 2 security.

Repurchase agreements: The fund, or any joint trading account, through its custodian, receives delivery of the underlying securities, the market value of which at the time of purchase is required to be in an amount at least equal to the resale price, including accrued interest. Collateral for certain tri-party repurchase agreements 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.



Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures (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  $--  $125,373,498  $-- 

Certificates of deposit  --  363,762,001  -- 

Commercial paper  --  125,291,616  -- 

Corporate bonds and notes  --  231,690,456  -- 

Municipal bonds and notes  --  107,869,000  -- 

Repurchase agreements  --  298,100,000  -- 

Short-term investment fund  234,199,241  --  -- 

U.S. government agency obligations  --  458,576,400  -- 

U.S. treasury obligations  --  457,116,336  -- 

Totals by level  $234,199,241  $2,167,779,307  $-- 

 

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 Money Market Fund

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: August 27, 2010

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: August 27, 2010

By (Signature and Title):

/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: August 27, 2010