N-Q 1 a_moneymarket.htm PUTNAM MONEY MARKET FUND a_moneymarket.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: (811-02608)
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: 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: September 30, 2017
Date of reporting period: December 31, 2016



Item 1. Schedule of Investments:














Putnam Money Market Fund

The fund's portfolio
12/31/16 (Unaudited)
REPURCHASE AGREEMENTS (37.4%)(a)
Principal amount Value

Interest in $160,000,000 joint tri-party term repurchase agreement dated 12/29/16 with Citigroup Global Markets, Inc. due 1/5/17 - maturity value of $20,002,217 for an effective yield of 0.570% (collateralized by various U.S. Treasury notes with coupon rates ranging from 1.500% to 2.125% and due dates ranging from 12/31/18 to 11/30/23, valued at $163,200,016) $20,000,000 $20,000,000
Interest in $181,326,000 joint tri-party repurchase agreement dated 12/30/16 with Citigroup Global Markets, Inc. due 1/3/17 - maturity value of $109,225,432 for an effective yield of 0.530% (collateralized by various U.S. Treasury notes with coupon rates ranging from 0.875% to 3.625% and due dates ranging from 2/28/19 to 8/15/19, valued at $184,952,531) 109,219,000 109,219,000
Interest in $109,000,000 tri-party repurchase agreement dated 12/30/16 with Goldman, Sachs & Co. due 1/3/17 - maturity value of $109,005,329 for an effective yield of 0.440% (collateralized by various mortgage backed securities with coupon rates ranging from 3.000% to 3.500% and due dates ranging from 9/15/42 to 8/20/46, valued at $111,180,000) 109,000,000 109,000,000
Interest in $218,293,000 joint tri-party repurchase agreement dated 12/30/16 with Merrill Lynch, Pierce, Fenner and Smith Inc. due 1/3/17 - maturity value of $109,006,056 for an effective yield of 0.500% (collateralized by various mortgage backed securities with coupon rates ranging from 3.000% to 3.500% and a due date of 12/1/46, valued at $222,658,861) 109,000,000 109,000,000

Total repurchase agreements (cost $347,219,000) $347,219,000

COMMERCIAL PAPER (23.8%)(a)
Yield (%) Maturity date Principal amount Value

ABN AMRO Funding USA, LLC 144A 0.882 2/2/17 $4,500,000 $4,496,480
Apple, Inc. 0.752 3/31/17 2,550,000 2,545,272
Australia & New Zealand Banking Group, Ltd. (Australia) 0.972 3/22/17 13,500,000 13,470,900
BNP Paribas Fortis SA/New York 0.962 3/14/17 5,800,000 5,788,864
BPCE SA (France) 0.901 2/6/17 9,000,000 8,991,900
Commonwealth Bank of Australia 144A (Australia) 1.244 1/27/17 7,000,000 7,001,845
Commonwealth Bank of Australia 144A (Australia) 1.002 3/14/17 7,000,000 6,986,000
Cooperatieve Rabobank UA/NY (Netherlands) 0.933 3/1/17 7,500,000 7,488,569
Cooperatieve Rabobank UA/NY (Netherlands) 0.903 3/8/17 6,000,000 5,990,100
Danske Corp. (Denmark) 0.892 2/1/17 5,500,000 5,495,785
Danske Corp. 144A Ser. A (Denmark) 0.862 2/14/17 3,750,000 3,746,058
Export Development Canada (Canada) 0.701 2/8/17 10,000,000 9,992,611
Export Development Canada (Canada) 0.600 1/17/17 3,750,000 3,749,000
HSBC Bank PLC 144A (United Kingdom) 1.236 4/17/17 10,000,000 10,000,000
ING US Funding, LLC 0.942 3/3/17 9,000,000 8,985,665
Microsoft Corp. 0.791 2/21/17 6,500,000 6,492,725
Microsoft Corp. 0.732 2/7/17 7,250,000 7,244,560
National Australia Bank, Ltd. 144A (Australia) 1.273 12/12/17 8,500,000 8,500,000
National Australia Bank, Ltd. 144A (Australia) 1.045 5/2/17 5,000,000 4,982,522
National Bank of Canada 144A (Canada) 0.781 2/2/17 9,250,000 9,243,587
Nationwide Building Society (United Kingdom) 0.922 2/22/17 5,000,000 4,993,356
Nordea Bank AB (Sweden) 0.822 3/9/17 2,500,000 2,496,185
Nordea Bank AB 144A (Sweden) 0.832 1/26/17 3,300,000 3,298,098
Simon Property Group LP 0.791 1/17/17 9,000,000 8,996,840
Societe Generale SA (France) 0.878 2/13/17 3,000,000 2,996,859
Societe Generale SA (France) 0.832 2/6/17 5,000,000 4,995,850
Societe Generale SA (France) 0.540 1/3/17 10,000,000 9,999,700
Swedbank AB (Sweden) 0.822 2/17/17 2,420,000 2,417,409
Toronto-Dominion Holdings USA, Inc. 144A (Canada) 1.053 3/20/17 12,000,000 11,972,700
Total Capital Canada, Ltd. (Canada) 0.720 1/17/17 4,000,000 3,998,720
Total Capital Canada, Ltd. (Canada) 0.711 1/26/17 4,750,000 4,747,658
Toyota Motor Credit Corp. 0.883 3/31/17 2,250,000 2,245,105
Toyota Motor Credit Corp. FRN 1.065 4/4/17 7,000,000 7,000,000
Westpac Banking Corp. 144A (Australia) 1.164 11/2/17 1,500,000 1,503,044
Westpac Banking Corp. 144A (Australia) 1.099 3/8/17 5,000,000 5,000,000
Westpac Banking Corp./NY (Australia) 0.751 1/18/17 1,210,000 1,209,571
Westpac Banking Corp./NY (Australia) 0.751 1/13/17 2,172,000 2,171,457

Total commercial paper (cost $221,234,995) $221,234,995

CERTIFICATES OF DEPOSIT (17.3%)(a)
Yield (%) Maturity date Principal amount Value

Bank of America, NA 0.880 3/3/17 $13,500,000 $13,500,000
Bank of Montreal/Chicago, IL FRN (Canada) 1.186 4/17/17 6,500,000 6,500,000
Bank of Nova Scotia/Houston FRN 1.301 4/4/17 5,000,000 5,000,000
Bank of Nova Scotia/Houston FRN 1.102 9/7/17 8,500,000 8,500,000
Canadian Imperial Bank of Commerce/New York, NY 1.226 4/17/17 5,000,000 5,000,000
Canadian Imperial Bank of Commerce/New York, NY FRN 1.321 2/3/17 8,500,000 8,500,000
Citibank, NA 0.900 2/13/17 8,000,000 8,000,000
Citibank, NA 0.880 2/21/17 5,750,000 5,750,000
DnB Bank ASA/New York (Norway) 1.206 4/25/17 4,000,000 4,000,000
DnB Bank ASA/New York FRN (Norway) 1.080 4/17/17 9,500,000 9,500,000
Lloyds Bank PLC/New York, NY FRN (United Kingdom) 1.214 6/20/17 11,300,000 11,300,000
Nordea Bank Finland PLC/New York 0.950 3/16/17 2,000,000 2,000,978
Nordea Bank Finland PLC/New York 0.870 2/27/17 6,000,000 6,002,151
Royal Bank of Canada/New York, NY FRN (Canada) 1.281 10/13/17 10,000,000 10,000,000
Royal Bank of Canada/New York, NY FRN (Canada) 1.251 12/8/17 3,000,000 3,000,000
Skandinaviska Enskilda Banken AB/New York, NY FRN 1.207 2/6/17 6,500,000 6,500,000
Skandinaviska Enskilda Banken AB/New York, NY FRN 1.196 4/26/17 7,250,000 7,250,000
Sumitomo Mitsui Banking Corp./New York (Japan) 1.256 4/28/17 10,000,000 10,000,000
Svenska Handelsbanken/New York, NY (Sweden) 0.830 3/1/17 5,000,000 5,003,252
Svenska Handelsbanken/New York, NY FRN (Sweden) 1.244 5/15/17 9,000,000 9,000,000
Swedbank AB/New York 1.089 5/22/17 11,250,000 11,250,000
Toronto-Dominion Bank/NY FRN (Canada) 1.221 2/1/17 1,825,000 1,825,288
Wells Fargo Bank, NA 1.226 4/25/17 3,000,000 3,000,000

Total certificates of deposit (cost $160,381,669) $160,381,669

ASSET-BACKED COMMERCIAL PAPER (16.4%)(a)
Yield (%) Maturity date Principal amount Value

Alpine Securitization, Ltd. (Cayman Islands) 1.154 3/31/17 $9,000,000 $8,974,413
Atlantic Asset Securitization, LLC 0.901 2/21/17 9,000,000 8,988,525
CAFCO, LLC 0.902 3/1/17 1,750,000 1,747,419
CAFCO, LLC 144A 0.932 3/6/17 7,500,000 7,487,600
CHARTA, LLC 0.943 2/24/17 9,000,000 8,987,310
Collateralized Commercial Paper Co., LLC 1.003 3/9/17 5,000,000 4,990,694
Collateralized Commercial Paper II Co., LLC 144A 1.174 5/15/17 9,000,000 9,000,000
CRC Funding, LLC 0.943 3/13/17 9,250,000 9,232,852
Fairway Finance Co., LLC 144A (Canada) 1.045 4/14/17 7,250,000 7,250,000
Gotham Funding Corp. (Japan) 0.500 1/3/17 10,000,000 9,999,722
Manhattan Asset Funding Co., LLC (Japan) 0.881 2/8/17 3,500,000 3,496,749
MetLife Short Term Funding, LLC 1.054 4/19/17 8,000,000 7,974,800
MetLife Short Term Funding, LLC 0.882 1/17/17 5,000,000 4,998,044
Old Line Funding, LLC 144A 1.116 2/17/17 13,250,000 13,250,000
Regency Markets No. 1, LLC 0.800 1/6/17 4,000,000 3,999,556
Thunder Bay Funding, LLC 1.053 3/13/17 1,500,000 1,496,894
Thunder Bay Funding, LLC 0.862 2/15/17 5,000,000 4,994,625
Thunder Bay Funding, LLC 0.852 1/25/17 2,500,000 2,498,583
Thunder Bay Funding, LLC 0.731 1/23/17 5,000,000 4,997,769
Victory Receivables Corp. (Japan) 1.003 3/7/17 9,750,000 9,732,396
Victory Receivables Corp. (Japan) 0.882 1/30/17 4,000,000 3,997,164
Victory Receivables Corp. (Japan) 0.500 1/3/17 13,750,000 13,749,618

Total asset-backed commercial paper (cost $151,844,733) $151,844,733

TIME DEPOSITS (2.5%)(a)
Yield (%) Maturity date Principal amount Value

Australia & New Zealand Banking Group, Ltd./Cayman Islands (Cayman Islands) 0.550 1/3/17 $13,750,000 $13,750,000
Credit Agricole Corporate & Investment Bank SA (France) 0.520 1/3/17 9,250,000 9,250,000

Total time deposits (cost $23,000,000) $23,000,000

CORPORATE BONDS AND NOTES (1.5%)(a)
Interest rate (%) Maturity date Principal amount Value

Lloyds Bank PLC company guaranty sr. unsec. unsub. notes (United Kingdom) 4.200 3/28/17 $2,500,000 $2,517,307
Wells Fargo Bank, NA sr. unsec. FRN Ser. MTN 1.133 2/14/17 11,000,000 11,000,000

Total corporate bonds and notes (cost $13,517,307) $13,517,307

U.S. TREASURY OBLIGATIONS (1.3%)(a)
Yield (%) Maturity date Principal amount Value

U.S. Treasury FRN 0.640 1/31/17 $12,500,000 $12,499,979

Total U.S. treasury obligations (cost $12,499,979) $12,499,979

TOTAL INVESTMENTS

Total investments (cost $929,697,683)(b) $929,697,683














Key to holding's abbreviations
FRN Floating Rate Notes: the rate shown is the current interest rate or yield at the close of the reporting period
MTN Medium Term 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, 2016 through December 31, 2016 (the reporting period). Within the following notes to the portfolio, references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures, references to "Putnam Management" represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC and references to "OTC", if any, represent over-the-counter.
(a) Percentages indicated are based on net assets of $928,194,640.
(b) The aggregate identified cost on a financial reporting and tax basis is the same.
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 dates shown on debt obligations are the original maturity dates.

DIVERSIFICATION BY COUNTRY
Distribution of investments by country of risk at the close of the reporting period, excluding collateral received, if any (as a percentage of Portfolio Value):
United States 65.5%
Canada 7.8
Japan 5.5
Australia 5.5
France 3.9
United Kingdom 3.1
Cayman Islands 2.4
Sweden 2.4
Norway 1.5
Netherlands 1.4
Denmark 1.0

Total 100.0%

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.
The valuation of the fund's portfolio instruments is determined by means of the amortized cost method (which approximates fair 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 fair 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.













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 $— $151,844,733 $—
Certificates of deposit 160,381,669
Commercial paper 221,234,995
Corporate bonds and notes 13,517,307
Repurchase agreements 347,219,000
    Time deposits 23,000,000
U.S. treasury obligations 12,499,979



Totals by level $— $929,697,683 $—


During the reporting period, transfers within the fair value hierarchy, if any, 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.
   
  The following table summarizes any derivatives, repurchase agreements and reverse repurchase agreements, at the end of the reporting period, that are subject to an enforceable master netting agreement or similar agreement. For securities lending transactions, if applicable, see note "(d)" above, and for borrowing transactions associated with securities sold short, if applicable, see the "Short sales of securities" note above.
   
      Citigroup Global Markets, Inc. Goldman, Sachs & Co. Merrill Lynch, Pierce,
Fenner and Smith, Inc.
  Total
               
  Assets:            
  Repurchase agreements   $129,219,000 $109,000,000 $109,000,000   $347,219,000
               
  Total Assets   $129,219,000 $109,000,000 $109,000,000   $347,219,000
               
  Liabilities:            
  Total Liabilities   $— $— $—   $—
               
  Total Financial and Derivative Net Assets   $129,219,000 $109,000,000 $109,000,000   $347,219,000
  Total collateral received (pledged)##†   $129,219,000 $109,000,000 $109,000,000    
  Net amount   $— $— $—    
               
 Additional collateral may be required from certain brokers based on individual agreements.
               
## Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.

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: February 28, 2017

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: February 28, 2017

By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer
Date: February 28, 2017