N-CSRS 1 a_premierinc.htm PUTNAM PREMIER INCOME TRUST a_premierinc.htm


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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES




Investment Company Act file number: (811-05452)
Exact name of registrant as specified in charter: Putnam Premier Income Trust
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: July 31, 2017
Date of reporting period: August 1, 2016 — January 31, 2017



Item 1. Report to Stockholders:

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940:




Putnam
Premier Income
Trust

Semiannual report
1 | 31 | 17

 

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk and the risk that they may increase in value when interest rates decline and decline in value when interest rates rise. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Unlike bonds, funds that invest in bonds have fees and expenses. Bond prices may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions (including perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific sector, issuer or industry. These and other factors may also lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. You can lose money by investing in the fund. The fund’s shares trade on a stock exchange at market prices, which may be lower than the fund’s net asset value.



Message from the Trustees

March 16, 2017

Dear Fellow Shareholder:

In the early weeks of 2017, investor sentiment generally brightened at the prospect of moving beyond the challenges of the past year, when political uncertainty, among other issues, tested global financial markets. As stock markets delivered modest gains, the exuberance that greeted the new year calmed somewhat as investors reconsidered a number of ongoing macroeconomic risks. In addition, many bond investors remained cautious as the potential for inflation increased.

As always, we believe investors should continue to focus on time-tested strategies: maintain a well-diversified portfolio, keep a long-term view, and do not overreact to short-term market fluctuations. To help ensure that your portfolio is aligned with your individual goals, time horizon, and tolerance for risk, we also believe it is a good idea to speak regularly with your financial advisor.

In today’s environment, we favor the investment approach practiced at Putnam — active strategies based on fundamental research. Putnam portfolio managers, backed by a network of global analysts, bring years of experience to navigating changing market conditions and pursuing investment opportunities. In the following pages, you will find an overview of your fund’s performance for the reporting period ended January 31, 2017, as well as an outlook for the coming months.

Thank you for investing with Putnam.








Data are historical. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and net asset value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart are at NAV. See below and pages 11–12 for additional performance information, including fund returns at market price. Index and Lipper results should be compared with fund performance at NAV.

* Returns for the six-month period are not annualized, but cumulative.


This comparison shows your fund’s performance in the context of broad market indexes for the six months ended 1/31/17. See above and pages 11–12 for additional fund performance information. Index descriptions can be found on page 13.

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Bill is Chief Investment Officer of Fixed Income at Putnam. He has an M.B.A. from the University of California, Berkeley, Haas School of Business, and a B.A. from the University of California, San Diego. Bill joined Putnam in 1994 and has been in the investment industry since 1988.

In addition to Bill, your fund’s portfolio managers are Co-Head of Fixed Income Paul D. Scanlon, CFA; Co-Head of Fixed Income Michael V. Salm; Portfolio Manager Michael J. Atkin; Portfolio Manager Robert L. Davis, CFA; and Portfolio Manager Brett S. Kozlowski, CFA.

Bill, what was the fund’s investment environment like during the six-month reporting period ended January 31, 2017?

Despite rising interest rates, the environment was generally favorable. Credit spreads tightened, reflecting investor demand for credit risk amid improving U.S. economic growth and a positive post-election outlook for 2017.

Internationally, the backdrop was less positive. Many economies outside the United States faced ongoing challenges, in contrast with the strengthening U.S. data. The dichotomy was clear in monetary policies. Most foreign central banks continued on a path of easing, while the Federal Reserve remained steadfast in its stated plan to eventually normalize interest rates.

In fact, the Fed increased its target for short-term interest rates by a quarter percentage point at its December 14 meeting. The Fed also indicated that it may raise rates faster than previously indicated if U.S. economic growth shows signs of accelerating in 2017, which sent U.S. Treasury yields to a multiyear high. Despite higher rates and the Fed’s slightly hawkish tone, investor risk appetite remained strong.

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Credit qualities are shown as a percentage of the fund’s net assets as of 1/31/17. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. To-be-announced (TBA) mortgage commitments, if any, are included based on their issuer ratings. Ratings may vary over time.

Cash, derivative instruments, and net other assets are shown in the not-rated category. Payables and receivables for TBA mortgage commitments are included in the not-rated category and may result in negative weights. The fund itself has not been rated by an independent rating agency.


The benchmark 10-year Treasury yield trended gradually higher from early summer through the end of October, then spiked in the week following the U.S. presidential election. It reached a high of 2.57% in mid-December and finished the period slightly below that level at 2.45%.

The U.S. dollar rallied in the weeks following the election of Donald Trump, reaching a 14-year high in early January. The dollar’s rise was partly due to investor expectations that the new administration’s plans for deregulation, lower taxes, and fiscal stimulus would bolster U.S. economic growth. As January progressed, however, the dollar declined and volatility increased, likely driven by statements from administration officials that were interpreted by investors as advocating a weaker dollar.

The fund outpaced its benchmark by a sizable margin during the period. What factors bolstered relative performance?

With respect to relative performance, I think it’s important to point out that the fund’s benchmark comprises U.S. Treasury and government-agency securities. These areas of the market were hampered by rising interest rates and investor preference for securities offering greater potential return in exchange for higher risk. The fund, on the other hand, benefited from a variety of out-of-benchmark holdings, most notably high-yield corporate bonds and mortgage-credit securities.

Please tell us more about specific investments that fueled the fund’s results during the period.

An allocation to high-yield bonds was one of the biggest contributors. Various factors bolstered high-yield corporate credit, including stronger economic growth; expectations that growth

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in 2017 could potentially benefit if the Trump administration launches more-robust fiscal policy; higher oil prices; a minimal 12-month default rate excluding commodity-related sectors; and reduced year-over-year new issuance.

Within mortgage credit, holdings of agency credit risk-transfer securities [CRTs] also provided a major boost to performance. CRTs are backed by a reference pool of agency mortgages. Unlike regular agency pass-throughs, the principal invested in CRTs is not backed by Fannie Mae or Freddie Mac. To compensate investors for this risk, CRTs offer higher yields than conventional pass-through securities. Similar to commercial mortgage-backed securities [CMBS], CRTs are structured into various tranches offering different levels of risk and yield based on the underlying reference pool.

During the period, the combination of relatively high yields and high-quality collateral continued to attract investors to CRTs. Furthermore, CRTs provided investors with a productive alternative to deploy their capital as other parts of the residential mortgage-backed securities [RMBS] market continued to shrink.

Holdings of pay-option adjustable-rate mortgage-backed securities also helped. These positions benefited from the generally favorable risk environment during the period, as well as the fact that there was no new supply of these bonds coming to market.

Positions in more-recently issued mezzanine CMBS were a further contributor. During the second half of 2016, broker/dealers increased the amount of CMBS in their inventories, helping to bolster marketplace liquidity, which in turn aided the performance of newer mezzanine bonds.


This table shows the fund’s top holdings across three key sectors and the percentage of the fund’s net assets that each represented as of 1/31/17. Short-term investments, TBA commitments, and derivatives, if any, are excluded. Holdings may vary over time.

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Which other strategies or holdings helped performance?

Our interest-rate and yield-curve positioning in the United States and overseas aided results. We continued our efforts to de-emphasize interest-rate risk by keeping the portfolio’s duration — a key measure of interest-rate sensitivity — below zero. This strategy was particularly helpful in November when intermediate- and long-term Treasury yields rose sharply in response to the U.S. presidential election outcome and President Trump’s proposed fiscal policy. We also positioned the portfolio to benefit from a potentially steeper U.S. Treasury yield curve, which worked well as the curve steepened in November. Internationally, maintaining negative duration strategies in various countries proved additive as interest rates rose.

Investments in emerging-market debt continued to be a productive part of the portfolio. During the period, positions in Brazil, Russia, Venezuela, and Argentina added the most, helped by higher oil prices and persistent investor demand for high-yielding securities.

Within our prepayment strategies, holdings of agency interest-only collateralized mortgage obligations [IO CMOs] performed well and also helped performance. Rising interest rates provided a tailwind for these investments, helping to keep mortgage prepayment speeds below market expectations. Additionally, mortgage refinancing continued to be hampered by stringent bank-lending standards.

How did you use derivatives during the period?

We used bond futures and interest-rate swaps to take tactical positions at various points along the yield curve, to hedge the risk associated with the fund’s yield-curve positioning, and to gain exposure to rates in various countries. In addition, we employed interest-rate swaps and options to hedge the interest-rate and


This chart shows how the fund’s sector weightings have changed over the past six months. Allocations are shown as a percentage of the fund’s net assets. Cash and net other assets, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Current period summary information may differ from the portfolio schedule included in the financial statements due to the inclusion of derivative securities, any interest accruals, the use of different classifications of securities for presentation purposes, and rounding.

Allocations may not total 100% because the table includes the notional value of certain derivatives (the economic value for purposes of calculating periodic payment obligations), in addition to the market value of securities. Holdings and allocations may vary over time.

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prepayment risks associated with our CMO holdings, and to help manage overall downside risk. Lastly, we utilized currency forward contracts to hedge the foreign exchange risk associated with non-U.S. bonds and to efficiently gain exposure to foreign currencies.


What is your near-term outlook?

We think U.S. economic growth may accelerate in 2017, but the policy priorities of the Trump administration could lead to a struggle of competing forces influencing the economy. On the one hand, we believe President Trump’s policy pronouncements regarding lowering corporate and personal income tax rates, along with increasing spending on infrastructure and defense, could bolster growth. Conversely, the President’s protectionist rhetoric regarding foreign trade, such as imposing substantial tariffs on imports from China and eliminating or weakening existing trade deals, would likely hamper growth, in our view. We will continue to closely monitor developments.

Given this outlook, how do you plan to position the fund?

In our view, the global economic environment may continue to be supportive for the fund’s strategies and general positioning.

In terms of positioning, our non-U.S., quantitatively driven, negative-duration strategies moved the fund’s total duration further below zero during the period. We also extended our strategy of seeking to capitalize on potentially steeper global yield curves. We think this overall positioning could benefit the fund if interest rates continue to trend higher in 2017.

ABOUT DERIVATIVES

Derivatives are an increasingly common type of investment instrument, the performance of which is derived from an underlying security, index, currency, or other area of the capital markets. Derivatives employed by the fund’s managers generally serve one of two main purposes: to implement a strategy that may be difficult or more expensive to invest in through traditional securities, or to hedge unwanted risk associated with a particular position.

For example, the fund’s managers might use currency forward contracts to capitalize on an anticipated change in exchange rates between two currencies. This approach would require a significantly smaller outlay of capital than purchasing traditional bonds denominated in the underlying currencies. In another example, the managers may identify a bond that they believe is undervalued relative to its risk of default, but may seek to reduce the interest-rate risk of that bond by using interest-rate swaps, a derivative through which two parties “swap” payments based on the movement of certain rates.

Like any other investment, derivatives may not appreciate in value and may lose money. Derivatives may amplify traditional investment risks through the creation of leverage and may be less liquid than traditional securities. And because derivatives typically represent contractual agreements between two financial institutions, derivatives entail “counterparty risk,” which is the risk that the other party is unable or unwilling to pay. Putnam monitors the counterparty risks we assume. For example, Putnam often enters into collateral agreements that require the counterparties to post collateral on a regular basis to cover their obligations to the fund. Counterparty risk for exchange-traded futures and centrally cleared swaps is mitigated by the daily exchange of margin and other safeguards against default through their respective clearinghouses.

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We plan to continue seeking opportunities in corporate and mortgage credit that we believe offer relative value. Within those market areas, we continue to have a constructive outlook for high-yield bonds, based on what we think is a generally favorable fundamental and technical backdrop for the asset class. We also plan to continue our efforts to capitalize on expanding opportunities within the agency CRT sector. And we continue to like commercial mortgage-backed securities, given what we consider to be their attractive spreads.

We plan to maintain the fund’s exposure to select emerging-market countries, seeking to benefit from the relatively high income levels available in markets where we believe we’re being properly compensated for risk.

Thanks for your time and for bringing us up to date, Bill.

The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice.

Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk. Statements in the Q&A concerning the fund’s performance or portfolio composition relative to those of the fund’s Lipper peer group may reference information produced by Lipper Inc. or through a third party.

HOW CLOSED-END FUNDS DIFFER FROM OPEN-END FUNDS

Closed-end funds and open-end funds share many common characteristics but also have some key differences that you should understand as you consider your portfolio strategies.

More assets at work Open-end funds are subject to ongoing sales and redemptions that can generate transaction costs for long-term shareholders. Closed-end funds, however, are typically fixed pools of capital that do not need to hold cash in connection with sales and redemptions, allowing the funds to keep more assets actively invested.

Traded like stocks Closed-end fund shares are traded on stock exchanges and, as a result, their prices fluctuate because of the influence of several factors.

They have a market price Like an open-end fund, a closed-end fund has a per-share net asset value (NAV). However, closed-end funds also have a “market price” for their shares — which is how much you pay when you buy shares of the fund, and how much you receive when you sell them. When looking at a closed-end fund’s performance, you will usually see that the NAV and the market price differ. The market price can be influenced by several factors that cause it to vary from the NAV, including fund distributions, changes in supply and demand for the fund’s shares, changing market conditions, and investor perceptions of the fund or its investment manager. A fund’s performance at market price typically differs from its results at NAV.

 
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Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended January 31, 2017, the end of the first half of its current fiscal year. In accordance with regulatory requirements for mutual funds, we also include performance information as of the most recent calendar quarter-end. Performance should always be considered in light of a fund’s investment strategy. Data represent past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return, net asset value, and market price will fluctuate, and you may have a gain or a loss when you sell your shares.

Fund performance Total return for periods ended 1/31/17

  Annual                 
  average                 
  Life of fund                 
  (since    Annual    Annual    Annual     
  2/29/88)  10 years  average  5 years  average  3 years  average  1 year  6 months 

NAV  6.78%  64.45%  5.10%  29.70%  5.34%  9.34%  3.02%  13.14%  8.77% 

Market price  6.82  79.81  6.04  30.38  5.45  17.31  5.47  18.78  15.20 

 

Performance assumes reinvestment of distributions and does not account for taxes.

Performance includes the deduction of management fees and administrative expenses.

Comparative index returns For periods ended 1/31/17

  Annual                 
  average                 
  Life of                 
  fund (since    Annual    Annual    Annual     
  2/29/88)  10 years  average  5 years  average  3 years  average  1 year  6 months 

Bloomberg                   
Barclays                   
Government Bond  5.99%  46.51%  3.89%  6.03%  1.18%  5.79%  1.89%  –0.78%  –4.12% 
Index                   

Lipper General                   
Bond Funds                   
(closed-end)  7.43  110.09  7.28  46.31  7.61  19.19  5.96  17.52  6.19 
category average*                   

 

Index and Lipper results should be compared with fund performance at net asset value.

* Over the 6-month, 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 1/31/17, there were 36, 36, 28, 23, 18, and 3 funds, respectively, in this Lipper category.

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Fund price and distribution information For the six-month period ended 1/31/17

Distributions     

Number  6 

Income  $0.156 

Capital gains   

Total  $0.156 

Share value  NAV  Market price 

7/31/16  $5.28  $4.72 

1/31/17  5.58  5.27 

Current dividend rate*  5.59%  5.92% 

 

The classification of distributions, if any, is an estimate. Final distribution information will appear on your year-end tax forms.

* Most recent distribution, including any return of capital and excluding capital gains, annualized and divided by NAV or market price at end of period.

Fund performance as of most recent calendar quarter Total return for periods ended 12/31/16

  Annual                 
  average                 
  Life of fund                 
  (since    Annual    Annual    Annual     
  2/29/88)  10 years  average  5 years  average  3 years  average  1 year  6 months 

NAV  6.73%  61.12%  4.89%  29.98%  5.38%  6.31%  2.06%  6.27%  8.89% 

Market price  6.61  70.32  5.47  29.66  5.33  9.60  3.10  7.10  9.16 

 

See the discussion following the fund performance table on page 11 for information about the calculation of fund performance.

 

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Terms and definitions

Important terms

Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.

Net asset value (NAV) is the value of all your fund’s assets, minus any liabilities, divided by the number of outstanding shares.

Market price is the current trading price of one share of the fund. Market prices are set by transactions between buyers and sellers on exchanges such as the New York Stock Exchange.

Fixed-income terms

Current rate is the annual rate of return earned from dividends or interest of an investment. Current rate is expressed as a percentage of the price of a security, fund share, or principal investment.

Mortgage-backed security (MBS), also known as a mortgage “pass-through,” is a type of asset-backed security that is secured by a mortgage or collection of mortgages. The following are types of MBSs:

Agency “pass-through” has its principal and interest backed by a U.S. government agency, such as the Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac).

Collateralized mortgage obligation (CMO) represents claims to specific cash flows from pools of home mortgages. The streams of principal and interest payments on the mortgages are distributed to the different classes of CMO interests in “tranches.” Each tranche may have different principal balances, coupon rates, prepayment risks, and maturity dates. A CMO is highly sensitive to changes in interest rates and any resulting change in the rate at which homeowners sell their properties, refinance, or otherwise prepay loans. CMOs are subject to prepayment, market, and liquidity risks.

Interest-only (IO) security is a type of CMO in which the underlying asset is the interest portion of mortgage, Treasury, or bond payments.

Non-agency residential mortgage-backed security (RMBS) is an MBS not backed by Fannie Mae, Ginnie Mae, or Freddie Mac. One type of RMBS is an Alt-A mortgage-backed security.

Commercial mortgage-backed security (CMBS) is secured by the loan on a commercial property.

Yield curve is a graph that plots the yields of bonds with equal credit quality against their differing maturity dates, ranging from shortest to longest. It is used as a benchmark for other debt, such as mortgage or bank lending rates.

Comparative indexes

Bloomberg Barclays Government Bond Index is an unmanaged index of U.S. Treasury and agency securities.

Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities.

BofA Merrill Lynch U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

S&P 500 Index is an unmanaged index of common stock performance.

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

Lipper is a third-party industry-ranking entity that ranks mutual funds. Its rankings do not reflect sales charges. Lipper rankings are based on total return at net asset value relative to

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other funds that have similar current investment styles or objectives as determined by Lipper. Lipper may change a fund’s category assignment at its discretion. Lipper category averages reflect performance trends for funds within a category.

Other information for shareholders

Important notice regarding share repurchase program

In September 2016, the Trustees of your fund approved the renewal of a share repurchase program that had been in effect since 2005. This renewal allows your fund to repurchase, in the 12 months beginning October 8, 2016, up to 10% of the fund’s common shares outstanding as of October 7, 2016.

Important notice regarding delivery of shareholder documents

In accordance with Securities and Exchange Commission (SEC) regulations, Putnam sends a single copy of annual and semiannual shareholder reports, prospectuses, and proxy statements to Putnam shareholders who share the same address, unless a shareholder requests otherwise. If you prefer to receive your own copy of these documents, please call Putnam at 1-800-225-1581, and Putnam will begin sending individual copies within 30 days.

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2016, are available in the Individual Investors section of putnam.com, and on the SEC’s website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain the fund’s Form N-Q on the SEC’s website at www.sec.gov. In addition, the fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC’s website or the operation of the Public Reference Room.

Trustee and employee fund ownership

Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of January 31, 2017, Putnam employees had approximately $465,000,000 and the Trustees had approximately $135,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.

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Summary of Putnam Closed-End Funds’ Amended and Restated Dividend Reinvestment Plans

Putnam High Income Securities Fund, Putnam Managed Municipal Income Trust, Putnam Master Intermediate Income Trust, Putnam Municipal Opportunities Trust and Putnam Premier Income Trust (each, a “Fund” and collectively, the “Funds”) each offer a dividend reinvestment plan (each, a “Plan” and collectively, the “Plans”). If you participate in a Plan, all income dividends and capital gain distributions are automatically reinvested in Fund shares by the Fund’s agent, Putnam Investor Services, Inc. (the “Agent”). If you are not participating in a Plan, every month you will receive all dividends and other distributions in cash, paid by check and mailed directly to you.

Upon a purchase (or, where applicable, upon registration of transfer on the shareholder records of a Fund) of shares of a Fund by a registered shareholder, each such shareholder will be deemed to have elected to participate in that Fund’s Plan. Each such shareholder will have all distributions by a Fund automatically reinvested in additional shares, unless such shareholder elects to terminate participation in a Plan by instructing the Agent to pay future distributions in cash. Shareholders who were not participants in a Plan as of January 31, 2010, will continue to receive distributions in cash but may enroll in a Plan at any time by contacting the Agent.

If you participate in a Fund’s Plan, the Agent will automatically reinvest subsequent distributions, and the Agent will send you a confirmation in the mail telling you how many additional shares were issued to your account.

To change your enrollment status or to request additional information about the Plans, you may contact the Agent either in writing, at P.O. Box 8383, Boston, MA 02266-8383, or by telephone at 1-800-225-1581 during normal East Coast business hours.

How you acquire additional shares through a Plan If the market price per share for your Fund’s shares (plus estimated brokerage commissions) is greater than or equal to their net asset value per share on the payment date for a distribution, you will be issued shares of the Fund at a value equal to the higher of the net asset value per share on that date or 95% of the market price per share on that date.

If the market price per share for your Fund’s shares (plus estimated brokerage commissions) is less than their net asset value per share on the payment date for a distribution, the Agent will buy Fund shares for participating accounts in the open market. The Agent will aggregate open-market purchases on behalf of all participants, and the average price (including brokerage commissions) of all shares purchased by the Agent will be the price per share allocable to each participant. The Agent will generally complete these open-market purchases within five business days following the payment date. If, before the Agent has completed open-market purchases, the market price per share (plus estimated brokerage commissions) rises to exceed the net asset value per share on the payment date, then the purchase price may exceed the net asset value per share, potentially resulting in the acquisition of fewer shares than if the distribution had been paid in newly issued shares.

How to withdraw from a Plan Participants may withdraw from a Fund’s Plan at any time by notifying the Agent, either in writing or by telephone. Such withdrawal will be effective immediately if notice is received by the Agent with sufficient time prior to any distribution record date; otherwise, such withdrawal will be effective with respect to any subsequent distribution following notice of withdrawal. There is no penalty for withdrawing from or not participating in a Plan.

Plan administration The Agent will credit all shares acquired for a participant under a Plan to the account in which the participant’s common shares are held. Each participant will

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be sent reasonably promptly a confirmation by the Agent of each acquisition made for his or her account.

About brokerage fees Each participant pays a proportionate share of any brokerage commissions incurred if the Agent purchases additional shares on the open market, in accordance with the Plans. There are no brokerage charges applied to shares issued directly by the Funds under the Plans.

About taxes and Plan amendments Reinvesting dividend and capital gain distributions in shares of the Funds does not relieve you of tax obligations, which are the same as if you had received cash distributions. The Agent supplies tax information to you and to the IRS annually. Each Fund reserves the right to amend or terminate its Plan upon 30 days’ written notice. However, the Agent may assign its rights, and delegate its duties, to a successor agent with the prior consent of a Fund and without prior notice to Plan participants.

If your shares are held in a broker or nominee name If your shares are held in the name of a broker or nominee offering a dividend reinvestment service, consult your broker or nominee to ensure that an appropriate election is made on your behalf. If the broker or nominee holding your shares does not provide a reinvestment service, you may need to register your shares in your own name in order to participate in a Plan.

In the case of record shareholders such as banks, brokers or nominees that hold shares for others who are the beneficial owners of such shares, the Agent will administer the Plan on the basis of the number of shares certified by the record shareholder as representing the total amount registered in such shareholder’s name and held for the account of beneficial owners who are to participate in the Plan.

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Financial statements

These sections of the report, as well as the accompanying Notes, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal period.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.

Premier Income Trust 17 

 



The fund’s portfolio 1/31/17 (Unaudited)

U.S. GOVERNMENT AND AGENCY  Principal   
MORTGAGE OBLIGATIONS (59.3%)*  amount  Value 

U.S. Government Guaranteed Mortgage Obligations (0.5%)     

Government National Mortgage Association Pass-Through Certificates     
4.50%, TBA, 2/1/47  $3,000,000  $3,218,203 

    3,218,203 

U.S. Government Agency Mortgage Obligations (58.8%)     

Federal Home Loan Mortgage Corporation Pass-Through Certificates     
3.500%, 12/01/25 i   $131,445  $138,293 

Federal National Mortgage Association Pass-Through Certificates     

5.50%, TBA, 2/1/47  5,000,000  5,555,078 

4.50%, TBA, 3/1/47  5,000,000  5,368,164 

4.50%, TBA, 2/1/47  5,000,000  5,376,953 

4.00%, TBA, 3/1/47  2,000,000  2,094,609 

4.00%, TBA, 2/1/47  2,000,000  2,098,594 

3.50%, TBA, 3/1/47  162,000,000  165,221,014 

3.50%, TBA, 2/1/47  162,000,000  165,556,402 

    351,409,107 

Total U.S. government and agency mortgage obligations (cost $354,815,326)  $354,627,310 

 

  Principal   
MORTGAGE-BACKED SECURITIES (48.6%)*  amount  Value 

Agency collateralized mortgage obligations (18.9%)     

Federal Home Loan Mortgage Corporation     

IFB Ser. 3408, Class EK, 22.706%, 4/15/37  $108,094  $168,230 

IFB Ser. 2979, Class AS, 21.46%, 3/15/34  2,351  2,394 

IFB Ser. 3072, Class SM, 20.984%, 11/15/35  210,883  307,990 

Ser. 4122, Class TI, IO, 4.50%, 10/15/42  3,326,877  713,282 

Ser. 4000, Class PI, IO, 4.50%, 1/15/42  1,939,300  365,558 

Ser. 4024, Class PI, IO, 4.50%, 12/15/41  3,207,729  590,636 

Ser. 4546, Class TI, IO, 4.00%, 12/15/45  6,894,531  1,189,307 

Ser. 4462, IO, 4.00%, 4/15/45  3,246,244  632,498 

Ser. 4425, IO, 4.00%, 1/15/45  8,326,456  1,594,100 

Ser. 4452, Class QI, IO, 4.00%, 11/15/44  6,448,802  1,418,092 

Ser. 4193, Class PI, IO, 4.00%, 3/15/43  5,424,302  831,410 

Ser. 4062, Class DI, IO, 4.00%, 9/15/39  7,886,801  955,047 

Ser. 4604, Class QI, IO, 3.50%, 7/15/46  15,024,978  2,521,342 

Ser. 4580, Class ID, IO, 3.50%, 8/15/45  10,362,893  1,758,583 

Ser. 4501, Class BI, IO, 3.50%, 10/15/43  7,483,297  1,055,744 

Ser. 4122, Class AI, IO, 3.50%, 10/15/42  6,219,222  825,652 

Ser. 4122, Class CI, IO, 3.50%, 10/15/42  5,635,298  748,131 

Ser. 4105, Class HI, IO, 3.50%, 7/15/41  2,969,005  359,059 

Ser. 304, Class C37, IO, 3.50%, 12/15/27  3,455,158  394,827 

Ser. 4165, Class TI, IO, 3.00%, 12/15/42  12,739,701  1,360,600 

Ser. 4183, Class MI, IO, 3.00%, 2/15/42  5,861,459  616,625 

Ser. 4210, Class PI, IO, 3.00%, 12/15/41  3,627,765  276,334 

FRB Ser. 57, Class 1AX, IO, 0.374%, 7/25/43  3,223,147  34,404 

Ser. 3326, Class WF, zero %, 10/15/35  2,204  1,684 

Federal National Mortgage Association     

IFB Ser. 06-62, Class PS, 35.273%, 7/25/36  160,366  296,118 

IFB Ser. 07-53, Class SP, 21.373%, 6/25/37  182,698  271,257 

 

18 Premier Income Trust 

 



  Principal   
MORTGAGE-BACKED SECURITIES (48.6%)* cont.  amount  Value 

Agency collateralized mortgage obligations cont.     

Federal National Mortgage Association     

IFB Ser. 08-24, Class SP, 20.456%, 2/25/38  $170,963  $239,928 

IFB Ser. 05-75, Class GS, 17.937%, 8/25/35  140,489  184,890 

IFB Ser. 05-83, Class QP, 15.389%, 11/25/34  205,396  257,205 

Ser. 16-3, Class NI, IO, 6.00%, 2/25/46  6,941,829  1,660,560 

Ser. 374, Class 6, IO, 5.50%, 8/25/36  305,249  68,573 

IFB Ser. 13-18, Class SB, IO, 5.379%, 10/25/41  2,772,164  373,411 

Ser. 378, Class 19, IO, 5.00%, 6/25/35  976,040  181,409 

Ser. 15-16, Class MI, IO, 4.50%, 4/25/45  4,853,785  1,001,093 

Ser. 12-127, Class BI, IO, 4.50%, 11/25/42  1,465,539  349,070 

Ser. 12-30, Class HI, IO, 4.50%, 12/25/40  9,569,348  1,235,135 

Ser. 366, Class 22, IO, 4.50%, 10/25/35  201,877  9,185 

Ser. 15-88, Class QI, IO, 4.00%, 10/25/44  5,471,848  859,085 

Ser. 13-41, Class IP, IO, 4.00%, 5/25/43  3,925,007  666,466 

Ser. 13-44, Class PI, IO, 4.00%, 1/25/43  3,763,967  582,239 

Ser. 13-60, Class IP, IO, 4.00%, 10/25/42  2,988,565  506,923 

Ser. 12-96, Class PI, IO, 4.00%, 7/25/41  2,196,466  347,935 

Ser. 12-145, Class TI, IO, 3.00%, 11/25/42  5,257,094  420,567 

Ser. 13-35, Class IP, IO, 3.00%, 6/25/42  4,969,931  427,911 

Ser. 13-53, Class JI, IO, 3.00%, 12/25/41  4,430,854  492,268 

Ser. 13-23, Class PI, IO, 3.00%, 10/25/41  4,907,515  352,556 

Ser. 99-51, Class N, PO, zero %, 9/17/29  21,204  18,023 

Federal National Mortgage Association Grantor Trust Ser. 00-T6,     
IO, 0.717%, 3/30/30  2,338,143  49,686 

Government National Mortgage Association     

IFB Ser. 13-129, Class SN, IO, 5.373%, 9/20/43  1,994,677  332,632 

Ser. 14-122, Class IC, IO, 5.00%, 8/20/44  2,787,874  515,645 

Ser. 14-76, IO, 5.00%, 5/20/44  3,510,221  721,932 

Ser. 14-25, Class MI, IO, 5.00%, 11/20/43  2,237,275  415,999 

Ser. 15-187, Class KI, IO, 5.00%, 6/20/43  8,329,336  993,856 

Ser. 13-22, Class IE, IO, 5.00%, 2/20/43  5,447,207  1,132,453 

Ser. 13-22, Class OI, IO, 5.00%, 1/20/43  4,855,985  1,004,237 

Ser. 13-3, Class IT, IO, 5.00%, 1/20/43  2,710,675  560,519 

Ser. 13-6, Class IC, IO, 5.00%, 1/20/43  2,485,806  519,484 

Ser. 12-146, IO, 5.00%, 12/20/42  2,424,458  510,833 

Ser. 13-6, Class CI, IO, 5.00%, 12/20/42  1,820,113  347,023 

Ser. 13-130, Class IB, IO, 5.00%, 12/20/40  1,334,805  101,854 

Ser. 13-16, Class IB, IO, 5.00%, 10/20/40  730,298  39,116 

Ser. 11-41, Class BI, IO, 5.00%, 5/20/40  870,348  81,649 

Ser. 10-35, Class UI, IO, 5.00%, 3/20/40  839,424  178,299 

Ser. 10-20, Class UI, IO, 5.00%, 2/20/40  2,533,166  524,669 

Ser. 10-9, Class UI, IO, 5.00%, 1/20/40  11,497,382  2,424,648 

Ser. 09-121, Class UI, IO, 5.00%, 12/20/39  5,896,087  1,243,013 

Ser. 15-79, Class GI, IO, 5.00%, 10/20/39  2,222,367  454,174 

IFB Ser. 14-119, Class SA, IO, 4.823%, 8/20/44  8,049,116  1,227,490 

Ser. 16-37, Class IW, IO, 4.50%, 2/20/46  4,091,993  890,008 

Ser. 16-104, Class GI, IO, 4.50%, 1/20/46  16,498,635  1,892,888 

Ser. 14-147, Class IJ, IO, 4.50%, 2/20/44  4,305,246  705,673 

Ser. 13-182, Class IQ, IO, 4.50%, 12/16/43  5,000,295  1,012,560 

 

Premier Income Trust 19 

 



  Principal   
MORTGAGE-BACKED SECURITIES (48.6%)* cont.  amount  Value 

Agency collateralized mortgage obligations cont.     

Government National Mortgage Association     

Ser. 14-100, Class LI, IO, 4.50%, 10/16/43  $6,754,569  $1,165,704 

Ser. 13-34, Class IH, IO, 4.50%, 3/20/43  4,909,663  1,015,412 

Ser. 14-108, Class IP, IO, 4.50%, 12/20/42  1,147,312  199,931 

Ser. 11-140, Class BI, IO, 4.50%, 12/20/40  479,932  26,515 

Ser. 11-18, Class PI, IO, 4.50%, 8/20/40  300,997  41,128 

Ser. 10-35, Class AI, IO, 4.50%, 3/20/40  5,014,921  958,953 

Ser. 10-35, Class DI, IO, 4.50%, 3/20/40  8,040,708  1,589,005 

Ser. 10-35, Class QI, IO, 4.50%, 3/20/40  4,536,326  869,283 

Ser. 13-151, Class IB, IO, 4.50%, 2/20/40  5,115,867  992,565 

Ser. 10-9, Class QI, IO, 4.50%, 1/20/40  3,048,036  583,107 

Ser. 09-121, Class BI, IO, 4.50%, 12/16/39  2,353,341  550,635 

Ser. 10-168, Class PI, IO, 4.50%, 11/20/39  1,045,881  120,726 

Ser. 10-158, Class IP, IO, 4.50%, 6/20/39  3,040,499  295,020 

Ser. 10-98, Class PI, IO, 4.50%, 10/20/37  492,772  12,664 

Ser. 15-186, Class AI, IO, 4.00%, 12/20/45  11,397,655  2,011,116 

Ser. 15-53, Class MI, IO, 4.00%, 4/16/45  5,770,558  1,261,490 

Ser. 15-187, Class JI, IO, 4.00%, 3/20/45  7,710,877  1,303,131 

Ser. 15-40, IO, 4.00%, 3/20/45  6,499,880  1,337,116 

Ser. 15-64, Class YI, IO, 4.00%, 11/20/44  6,672,235  1,231,227 

Ser. 14-4, Class IC, IO, 4.00%, 1/20/44  2,370,032  462,389 

Ser. 14-100, Class NI, IO, 4.00%, 6/20/43  11,563,080  1,557,894 

Ser. 13-165, Class IL, IO, 4.00%, 3/20/43  2,345,060  401,310 

Ser. 12-56, Class IB, IO, 4.00%, 4/20/42  2,077,074  416,858 

Ser. 12-38, Class MI, IO, 4.00%, 3/20/42  6,486,969  1,260,164 

Ser. 12-47, Class CI, IO, 4.00%, 3/20/42  5,368,576  964,415 

Ser. 16-48, Class MI, IO, 3.50%, 4/16/46  5,089,644  933,471 

Ser. 15-95, Class PI, IO, 3.50%, 7/20/45  7,181,729  1,023,396 

Ser. 15-64, Class PI, IO, 3.50%, 5/20/45  6,013,318  898,029 

Ser. 13-76, IO, 3.50%, 5/20/43  8,608,012  1,490,563 

Ser. 13-28, IO, 3.50%, 2/20/43  2,708,683  406,620 

Ser. 13-54, Class JI, IO, 3.50%, 2/20/43  4,139,876  706,056 

Ser. 13-37, Class JI, IO, 3.50%, 1/20/43  5,783,259  938,449 

Ser. 13-14, IO, 3.50%, 12/20/42  13,330,603  1,879,348 

Ser. 13-27, Class PI, IO, 3.50%, 12/20/42  4,280,230  726,141 

Ser. 12-136, Class BI, IO, 3.50%, 11/20/42  4,995,713  951,683 

Ser. 12-140, Class IC, IO, 3.50%, 11/20/42  6,146,112  1,267,199 

Ser. 12-113, Class ID, IO, 3.50%, 9/20/42  2,904,550  630,203 

Ser. 15-62, Class IL, IO, 3.50%, 2/16/42  9,055,014  1,255,025 

Ser. 15-52, Class KI, IO, 3.50%, 11/20/40  8,971,127  1,284,028 

Ser. 15-96, Class NI, IO, 3.50%, 1/20/39  6,552,068  823,595 

Ser. 15-124, Class DI, IO, 3.50%, 1/20/38  5,223,928  683,598 

Ser. 16-H23, Class NI, IO, 2.829%, 10/20/66  29,944,129  4,359,865 

Ser. 16-H17, Class KI, IO, 2.435%, 7/20/66  5,793,630  724,204 

Ser. 15-H20, Class CI, IO, 2.405%, 8/20/65  11,465,125  1,381,559 

Ser. 15-H15, Class BI, IO, 2.385%, 6/20/65  6,701,638  791,799 

Ser. 15-H24, Class AI, IO, 2.371%, 9/20/65  10,505,656  1,153,521 

Ser. 16-H03, Class AI, IO, 2.327%, 1/20/66  10,278,697  1,169,202 

Ser. 15-H10, Class BI, IO, 2.241%, 4/20/65  7,214,842  824,902 

 

20 Premier Income Trust 

 



  Principal   
MORTGAGE-BACKED SECURITIES (48.6%)* cont.  amount  Value 

Agency collateralized mortgage obligations cont.     

Government National Mortgage Association     

Ser. 16-H16, Class EI, IO, 2.172%, 6/20/66  $8,296,078  $1,059,409 

Ser. 16-H09, Class BI, IO, 2.156%, 4/20/66  13,625,689  1,625,599 

Ser. 16-H03, Class DI, IO, 2.038%, 12/20/65  11,217,169  1,121,717 

Ser. 16-H02, Class HI, IO, 2.003%, 1/20/66  13,325,382  1,396,500 

Ser. 16-H10, Class AI, IO, 1.988%, 4/20/66  23,019,333  2,060,230 

Ser. 15-H25, Class EI, IO, 1.845%, 10/20/65  10,392,672  1,034,071 

Ser. 15-H20, Class AI, IO, 1.837%, 8/20/65  10,392,621  1,053,812 

FRB Ser. 15-H08, Class CI, IO, 1.791%, 3/20/65  7,771,847  735,955 

Ser. 15-H23, Class BI, IO, 1.728%, 9/20/65  11,520,655  1,092,158 

Ser. 16-H06, Class DI, IO, 1.728%, 7/20/65  15,848,666  1,529,396 

Ser. 16-H24, Class CI, IO, 1.703%, 10/20/66  8,662,620  776,929 

Ser. 13-H08, Class CI, IO, 1.673%, 2/20/63  14,513,405  991,266 

Ser. 16-H14, IO, 1.672%, 6/20/66  10,128,491  865,986 

Ser. 16-H06, Class CI, IO, 1.609%, 2/20/66  14,198,908  1,202,647 

Ser. 14-H21, Class BI, IO, 1.546%, 10/20/64  13,195,954  1,018,728 

Ser. 15-H26, Class CI, IO, 0.679%, 8/20/65  33,204,117  753,733 

Ser. 06-36, Class OD, PO, zero %, 7/16/36  6,516  5,454 

    112,657,480 

Commercial mortgage-backed securities (17.5%)     

Banc of America Commercial Mortgage Trust Ser. 06-4, Class AJ,     
5.695%, 7/10/46  422,889  422,106 

Banc of America Commercial Mortgage Trust 144A FRB Ser. 07-5,     
Class XW, IO, 0.332%, 2/10/51  129,179,280  227,058 

Banc of America Merrill Lynch Commercial Mortgage, Inc. FRB     
Ser. 05-5, Class D, 5.407%, 10/10/45  493,999  493,723 

Bear Stearns Commercial Mortgage Securities Trust     

FRB Ser. 07-T26, Class AJ, 5.566%, 1/12/45  2,750,000  2,615,938 

Ser. 05-PWR7, Class D, 5.304%, 2/11/41  1,026,000  997,036 

Ser. 05-PWR7, Class B, 5.214%, 2/11/41  1,443,647  1,445,090 

Bear Stearns Commercial Mortgage Securities Trust 144A     

FRB Ser. 06-PW11, Class B, 5.436%, 3/11/39  1,383,918  1,315,386 

FRB Ser. 06-PW11, Class C, 5.436%, 3/11/39  1,554,000  777,093 

FRB Ser. 06-PW14, Class XW, IO, 0.534%, 12/11/38  6,248,384  23,119 

CD Mortgage Trust 144A     

FRB Ser. 07-CD5, Class E, 6.122%, 11/15/44  2,160,000  2,096,183 

FRB Ser. 07-CD5, Class XS, IO, 0.149%, 11/15/44  43,159,640  12,948 

CFCRE Commercial Mortgage Trust 144A     

FRB Ser. 11-C2, Class E, 5.754%, 12/15/47  1,068,000  1,070,966 

FRB Ser. 11-C2, Class F, 5.25%, 12/15/47  2,275,000  2,049,775 

Citigroup Commercial Mortgage Trust 144A     

FRB Ser. 12-GC8, Class D, 4.876%, 9/10/45  2,053,000  1,943,575 

FRB Ser. 14-GC21, Class D, 4.835%, 5/10/47  951,000  798,840 

COBALT CMBS Commercial Mortgage Trust Ser. 07-C2, Class AJFX,     
5.568%, 4/15/47  1,952,320  1,953,491 

COMM Mortgage Pass-Through Certificates 144A Ser. 12-CR3,     
Class F, 4.75%, 10/15/45  1,755,510  1,222,008 

COMM Mortgage Trust     

FRB Ser. 07-C9, Class F, 5.785%, 12/10/49  1,138,000  1,132,264 

Ser. 06-C8, Class AJ, 5.377%, 12/10/46  1,306,436  1,309,441 

 

Premier Income Trust 21 

 



  Principal   
MORTGAGE-BACKED SECURITIES (48.6%)* cont.  amount  Value 

Commercial mortgage-backed securities cont.     

COMM Mortgage Trust 144A     

FRB Ser. 13-CR9, Class D, 4.256%, 7/10/45  $2,441,000  $2,209,593 

Ser. 13-LC13, Class E, 3.719%, 8/10/46  1,331,000  921,185 

Ser. 14-CR18, Class E, 3.60%, 7/15/47  1,371,000  881,005 

Credit Suisse Commercial Mortgage Trust FRB Ser. 06-C5, Class AX,     
IO, 0.673%, 12/15/39  6,048,589  21,170 

Crest, Ltd. 144A Ser. 03-2A, Class E2, 8.00%, 12/28/38     
(Cayman Islands)  1,336,094  1,338,633 

CSAIL Commercial Mortgage Trust 144A FRB Ser. 15-C1, Class D,     
3.80%, 4/15/50  2,094,000  1,785,202 

GCCFC Commercial Mortgage Trust FRB Ser. 05-GG3, Class E,     
5.087%, 8/10/42  749,646  747,989 

GE Capital Commercial Mortgage Corp. Trust FRB Ser. 06-C1,     
Class AJ, 5.484%, 3/10/44  2,265,718  2,235,130 

GMAC Commercial Mortgage Securities, Inc. Trust Ser. 04-C3,     
Class B, 4.965%, 12/10/41  163,368  163,564 

GS Mortgage Securities Corp. II 144A     

FRB Ser. 13-GC10, Class D, 4.41%, 2/10/46  774,000  730,579 

FRB Ser. 05-GG4, Class XC, IO, 0.917%, 7/10/39  911,544  1,276 

GS Mortgage Securities Trust 144A     

FRB Ser. 13-GC16, Class E, 5.32%, 11/10/46  1,693,000  1,372,346 

Ser. 11-GC3, Class E, 5.00%, 3/10/44  1,347,000  1,251,363 

FRB Ser. 14-GC18, Class D, 4.945%, 1/10/47  1,622,000  1,370,947 

FRB Ser. 14-GC26, Class D, 4.511%, 11/10/47  2,204,000  1,839,899 

FRB Ser. 13-GC12, Class D, 4.476%, 6/10/46  770,000  676,676 

JPMBB Commercial Mortgage Securities Trust FRB Ser. 13-C12,     
Class D, 4.086%, 7/15/45  778,000  670,908 

JPMBB Commercial Mortgage Securities Trust 144A     

FRB Ser. 13-C15, Class D, 5.046%, 11/15/45  2,883,000  2,749,661 

FRB Ser. 14-C18, Class D, 4.814%, 2/15/47  2,236,000  1,951,804 

FRB Ser. 13-C14, Class E, 4.562%, 8/15/46  1,178,000  960,188 

FRB Ser. C14, Class D, 4.562%, 8/15/46  1,063,000  975,057 

FRB Ser. 14-C18, Class E, 4.314%, 2/15/47  914,000  645,193 

FRB Ser. 14-C25, Class D, 3.948%, 11/15/47  2,308,000  1,831,167 

FRB Ser. 14-C26, Class D, 3.926%, 1/15/48  1,349,000  1,119,759 

Ser. 14-C25, Class E, 3.332%, 11/15/47  1,823,000  1,121,874 

JPMorgan Chase Commercial Mortgage Securities Trust     

FRB Ser. 07-CB20, Class AJ, 6.157%, 2/12/51  1,225,830  1,237,966 

FRB Ser. 06-LDP7, Class B, 5.927%, 4/17/45  1,231,000  224,288 

FRB Ser. 06-LDP6, Class B, 5.653%, 4/15/43  132,448  132,448 

Ser. 06-LDP8, Class B, 5.52%, 5/15/45  340,619  344,260 

FRB Ser. 05-LDP2, Class E, 4.981%, 7/15/42  870,000  866,433 

JPMorgan Chase Commercial Mortgage Securities Trust 144A     

FRB Ser. 07-CB20, Class B, 6.257%, 2/12/51  1,087,000  1,019,715 

FRB Ser. 07-CB20, Class C, 6.257%, 2/12/51  1,904,000  1,675,520 

FRB Ser. 11-C3, Class F, 5.619%, 2/15/46  1,113,000  1,141,159 

FRB Ser. 12-C6, Class E, 5.156%, 5/15/45  748,000  706,187 

FRB Ser. 13-C16, Class D, 4.975%, 12/15/46  760,000  730,313 

FRB Ser. 12-C8, Class E, 4.66%, 10/15/45  821,000  757,782 

FRB Ser. 13-C13, Class D, 4.053%, 1/15/46  1,027,000  953,107 

 

22 Premier Income Trust 

 



  Principal   
MORTGAGE-BACKED SECURITIES (48.6%)* cont.  amount  Value 

Commercial mortgage-backed securities cont.     

JPMorgan Chase Commercial Mortgage Securities Trust 144A     

Ser. 13-C13, Class E, 3.986%, 1/15/46  $1,537,000  $1,062,528 

Ser. 13-C10, Class E, 3.50%, 12/15/47  1,865,000  1,368,351 

FRB Ser. 13-LC11, Class E, 3.25%, 4/15/46  1,249,000  846,822 

FRB Ser. 07-CB20, Class X1, IO, 0.348%, 2/12/51  73,422,442  107,351 

LB Commercial Mortgage Trust 144A     

Ser. 99-C1, Class G, 6.41%, 6/15/31  392,558  403,622 

Ser. 98-C4, Class J, 5.60%, 10/15/35  965,000  989,318 

LB-UBS Commercial Mortgage Trust     

Ser. 06-C6, Class D, 5.502%, 9/15/39  3,168,000  699,558 

FRB Ser. 06-C6, Class C, 5.482%, 9/15/39  3,041,000  910,171 

LSTAR Commercial Mortgage Trust 144A FRB Ser. 15-3, Class C,     
3.242%, 4/20/48  977,000  814,574 

Merrill Lynch Mortgage Trust     

FRB Ser. 08-C1, Class AJ, 6.283%, 2/12/51  428,000  438,186 

Ser. 04-KEY2, Class D, 5.046%, 8/12/39  2,083,879  2,065,335 

Merrill Lynch Mortgage Trust 144A FRB Ser. 08-C1, Class D,     
6.283%, 2/12/51  812,000  824,342 

Mezz Cap Commercial Mortgage Trust 144A     

FRB Ser. 04-C1, Class X, IO, 9.321%, 1/15/37  25,544  687 

FRB Ser. 07-C5, Class X, IO, 5.806%, 12/15/49  1,496,046  8,976 

ML-CFC Commercial Mortgage Trust 144A Ser. 06-4, Class AJFX,     
5.147%, 12/12/49  49,741  49,860 

Morgan Stanley Bank of America Merrill Lynch Trust 144A     

Ser. 14-C17, Class D, 4.698%, 8/15/47  2,403,000  2,024,292 

FRB Ser. 12-C6, Class G, 4.50%, 11/15/45  830,000  626,899 

FRB Ser. 13-C10, Class E, 4.084%, 7/15/46  2,426,000  1,996,113 

Ser. 14-C17, Class E, 3.50%, 8/15/47  1,673,000  1,053,823 

Ser. 14-C19, Class D, 3.25%, 12/15/47  1,200,000  941,891 

Morgan Stanley Capital I Trust     

Ser. 07-HQ11, Class C, 5.558%, 2/12/44  2,693,000  1,609,364 

FRB Ser. 06-HQ8, Class C, 5.46%, 3/12/44  1,300,000  1,300,813 

FRB Ser. 06-HQ8, Class D, 5.46%, 3/12/44  2,090,000  834,642 

Ser. 06-HQ10, Class B, 5.448%, 11/12/41  1,600,000  1,621,901 

Morgan Stanley Capital I Trust 144A FRB Ser. 08-T29, Class F,     
6.276%, 1/11/43  798,000  801,431 

Morgan Stanley Capital I, Inc. 144A FRB Ser. 04-RR, Class F7,     
6.00%, 4/28/39  992,546  974,581 

STRIPS CDO 144A Ser. 03-1A, Class N, IO, 5.00%, 3/24/18     
(Cayman Islands)  376,000  9,964 

TIAA Real Estate CDO, Ltd. 144A Ser. 03-1A, Class E,     
8.00%, 12/28/38  1,099,943  82,496 

UBS-Barclays Commercial Mortgage Trust 144A     

Ser. 12-C2, Class F, 4.885%, 5/10/63  1,431,000  1,031,894 

FRB Ser. 13-C6, Class D, 4.345%, 4/10/46  215,000  196,639 

Wachovia Bank Commercial Mortgage Trust     

FRB Ser. 06-C26, Class AJ, 6.107%, 6/15/45  2,810,000  2,093,450 

Ser. 07-C30, Class AJ, 5.413%, 12/15/43  1,237,000  1,244,731 

FRB Ser. 07-C34, IO, 0.289%, 5/15/46  24,501,849  44,103 

 

Premier Income Trust 23 

 



  Principal   
MORTGAGE-BACKED SECURITIES (48.6%)* cont.  amount  Value 

Commercial mortgage-backed securities cont.     

Wachovia Bank Commercial Mortgage Trust 144A FRB Ser. 04-C15,     
Class G, 5.395%, 10/15/41  $1,494,091  $451,753 

Wells Fargo Commercial Mortgage Trust 144A     

Ser. 12-LC5, Class E, 4.777%, 10/15/45  1,094,000  841,614 

FRB Ser. 13-LC12, Class D, 4.296%, 7/15/46  456,000  413,777 

Ser. 14-LC18, Class D, 3.957%, 12/15/47  1,734,000  1,394,378 

WF-RBS Commercial Mortgage Trust 144A     

FRB Ser. 13-C17, Class D, 5.124%, 12/15/46  1,282,000  1,227,614 

Ser. 12-C6, Class E, 5.00%, 4/15/45  1,243,000  985,948 

Ser. 11-C4, Class F, 5.00%, 6/15/44  1,993,000  1,572,876 

FRB Ser. 13-C16, Class D, 4.982%, 9/15/46  981,000  942,152 

FRB Ser. 14-C19, Class E, 4.97%, 3/15/47  2,131,000  1,577,579 

FRB Ser. 13-C15, Class D, 4.48%, 8/15/46  2,686,000  2,403,415 

Ser. 14-C19, Class D, 4.234%, 3/15/47  1,628,000  1,381,485 

Ser. 13-C12, Class E, 3.50%, 3/15/48  1,664,000  1,273,792 

    104,812,477 

Residential mortgage-backed securities (non-agency) (12.2%)     

BCAP, LLC Trust 144A FRB Ser. 12-RR5, Class 4A8, 0.926%, 6/26/35  392,377  377,888 

Bear Stearns Alt-A Trust FRB Ser. 04-3, Class B, 3.696%, 4/25/34  878,348  874,349 

Bear Stearns Asset Backed Securities I Trust FRB Ser. 04-FR3,     
Class M6, 5.646%, 9/25/34  76,336  43,846 

Bellemeade Re Ltd. 144A FRB Ser. 15-1A, Class M2, 5.071%,     
7/25/25 (Bermuda)  1,046,034  1,064,340 

Countrywide Alternative Loan Trust     

FRB Ser. 06-OA7, Class 1A1, 2.228%, 6/25/46  1,248,886  1,182,908 

FRB Ser. 06-OA10, Class 1A1, 1.556%, 8/25/46  815,075  715,030 

FRB Ser. 06-OA7, Class 1A2, 1.536%, 6/25/46  1,364,078  1,194,591 

FRB Ser. 05-38, Class A3, 1.121%, 9/25/35  1,830,424  1,595,045 

FRB Ser. 05-59, Class 1A1, 1.107%, 11/20/35  3,242,155  2,856,734 

FRB Ser. 07-OH1, Class A1D, 0.981%, 4/25/47  1,203,219  957,090 

FRB Ser. 06-OA10, Class 4A1, 0.961%, 8/25/46  7,520,470  6,123,166 

Federal Home Loan Mortgage Corporation     

Structured Agency Credit Risk Debt FRN Ser. 15-DN1, Class B,     
12.271%, 1/25/25  2,346,163  2,922,293 

Structured Agency Credit Risk Debt FRN Ser. 16-DNA2, Class B,     
11.271%, 10/25/28  439,959  514,643 

Structured Agency Credit Risk Debt FRN Ser. 15-HQA2, Class B,     
11.271%, 5/25/28  887,896  1,055,683 

Structured Agency Credit Risk Debt FRN Ser. 16-DNA1, Class B,     
10.771%, 7/25/28  2,035,491  2,338,867 

Structured Agency Credit Risk Debt FRN Ser. 15-DNA3, Class B,     
10.121%, 4/25/28  1,495,721  1,679,027 

Structured Agency Credit Risk Debt FRN Ser. 15-DNA2, Class B,     
8.321%, 12/25/27  1,395,164  1,548,886 

Structured Agency Credit Risk Debt FRN Ser. 16-HQA2, Class M3,     
5.921%, 11/25/28  1,500,000  1,676,405 

Structured Agency Credit Risk Debt FRN Ser. 17-DNA1, Class B1,     
5.729%, 7/25/29  940,000  940,000 

Structured Agency Credit Risk Debt FRN Ser. 16-DNA2, Class M3,     
5.421%, 10/25/28  570,000  615,108 

 

24 Premier Income Trust 

 



  Principal   
MORTGAGE-BACKED SECURITIES (48.6%)* cont.  amount  Value 

Residential mortgage-backed securities (non-agency) cont.     

Federal National Mortgage Association     

Connecticut Avenue Securities FRB Ser. 16-C03, Class 2B,     
13.521%, 10/25/28  $680,000  $883,079 

Connecticut Avenue Securities FRB Ser. 16-C02, Class 1B,     
13.021%, 9/25/28  2,320,000  2,987,202 

Connecticut Avenue Securities FRB Ser. 16-C03, Class 1B,     
12.521%, 10/25/28  1,300,000  1,619,967 

Connecticut Avenue Securities FRB Ser. 16-C01, Class 1B,     
12.521%, 8/25/28  1,820,000  2,282,674 

Connecticut Avenue Securities FRB Ser. 16-C04, Class 1B,     
11.021%, 1/25/29  2,160,000  2,482,424 

Connecticut Avenue Securities FRB Ser. 16-C03, Class 2M2,     
6.671%, 10/25/28  4,505,000  5,078,859 

Connecticut Avenue Securities FRB Ser. 15-C04, Class 1M2,     
6.471%, 4/25/28  5,621,000  6,274,794 

Connecticut Avenue Securities FRB Ser. 15-C04, Class 2M2,     
6.321%, 4/25/28  779,500  858,753 

Connecticut Avenue Securities FRB Ser. 15-C03, Class 1M2,     
5.771%, 7/25/25  5,513,000  6,054,777 

Connecticut Avenue Securities FRB Ser. 15-C03, Class 2M2,     
5.771%, 7/25/25  1,920,000  2,096,194 

Connecticut Avenue Securities FRB Ser. 15-C01, Class 2M2,     
5.321%, 2/25/25  676,698  717,165 

Connecticut Avenue Securities FRB Ser. 16-C06, Class 1M2,     
5.021%, 4/25/29  1,315,000  1,385,616 

Connecticut Avenue Securities FRB Ser. 16-C04, Class 1M2,     
5.021%, 1/25/29  550,000  578,985 

Connecticut Avenue Securities FRB Ser. 15-C02, Class 1M2,     
4.771%, 5/25/25  201,334  212,034 

Connecticut Avenue Securities FRB Ser. 15-C02, Class 2M2,     
4.771%, 5/25/25  307,000  323,297 

MortgageIT Trust FRB Ser. 05-3, Class M2, 1.301%, 8/25/35  532,331  468,033 

Structured Asset Mortgage Investments II Trust FRB Ser. 07-AR1,     
Class 2A1, 0.951%, 1/25/37  1,642,254  1,392,238 

WaMu Mortgage Pass-Through Certificates Trust     

FRB Ser. 05-AR10, Class 1A3, 2.76%, 9/25/35  377,087  367,622 

FRB Ser. 05-AR19, Class A1C3, 1.271%, 12/25/45  1,916,991  1,745,948 

FRB Ser. 05-AR13, Class A1C3, 1.261%, 10/25/45  4,521,430  3,921,759 

FRB Ser. 05-AR19, Class A1C4, 1.171%, 12/25/45  1,092,506  948,186 

    72,955,505 

Total mortgage-backed securities (cost $294,245,459)    $290,425,462 

 

  Principal   
CORPORATE BONDS AND NOTES (32.2%)*  amount  Value 

Basic materials (3.4%)     

A Schulman, Inc. 144A company guaranty sr. unsec. unsub. notes     
6.875%, 6/1/23  $204,000  $215,220 

Allegheny Technologies, Inc. sr. unsec. unsub. notes     
9.375%, 6/1/19  431,000  475,178 

Alpha 3 BV/Alpha US Bidco, Inc. 144A company guaranty sr. unsec.     
notes 6.25%, 2/1/25 (Netherlands)  400,000  400,000 

 

Premier Income Trust 25 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Basic materials cont.     

ArcelorMittal SA sr. unsec. unsub. bonds 10.85%, 6/1/19 (France)  $371,000  $434,998 

ArcelorMittal SA sr. unsec. unsub. bonds 6.125%, 6/1/25 (France)  207,000  227,700 

ArcelorMittal SA sr. unsec. unsub. notes 8.00%, 10/15/39 (France)  70,000  77,875 

Axalta Coating Systems, LLC 144A company guaranty sr. unsec.     
unsub. notes 4.875%, 8/15/24  270,000  273,375 

Beacon Roofing Supply, Inc. company guaranty sr. unsec. unsub.     
notes 6.375%, 10/1/23  517,000  554,483 

Blue Cube Spinco, Inc. company guaranty sr. unsec. unsub. notes     
9.75%, 10/15/23  209,000  248,188 

BMC East, LLC 144A company guaranty sr. notes 5.50%, 10/1/24  463,000  473,279 

Boise Cascade Co. 144A company guaranty sr. unsec. notes     
5.625%, 9/1/24  600,000  610,500 

Builders FirstSource, Inc. 144A company guaranty sr. unsec. notes     
10.75%, 8/15/23  866,000  1,003,478 

Builders FirstSource, Inc. 144A company guaranty sr. unsub. notes     
5.625%, 9/1/24  170,000  174,675 

Cemex Finance, LLC 144A company guaranty sr. notes 6.00%,     
4/1/24 (Mexico)  485,000  498,338 

Cemex SAB de CV 144A company guaranty sr. notes 6.50%,     
12/10/19 (Mexico)  420,000  444,150 

Chemours Co. (The) company guaranty sr. unsec. unsub. notes     
7.00%, 5/15/25  178,000  177,377 

Chemours Co. (The) company guaranty sr. unsec. unsub. notes     
6.625%, 5/15/23  445,000  442,775 

Compass Minerals International, Inc. 144A company guaranty sr.     
unsec. notes 4.875%, 7/15/24  240,000  234,000 

Coveris Holdings SA 144A company guaranty sr. unsec. notes     
7.875%, 11/1/19 (Luxembourg)  750,000  753,750 

CPG Merger Sub, LLC 144A company guaranty sr. unsec. notes     
8.00%, 10/1/21  222,000  231,990 

First Quantum Minerals, Ltd. 144A company guaranty sr. unsec.     
notes 7.25%, 5/15/22 (Canada)  463,000  472,260 

First Quantum Minerals, Ltd. 144A company guaranty sr. unsec.     
notes 7.25%, 10/15/19 (Canada)  360,000  371,700 

First Quantum Minerals, Ltd. 144A company guaranty sr. unsec.     
notes 6.75%, 2/15/20 (Canada)  202,000  207,177 

Flex Acquisition Co., Inc. 144A sr. unsec. notes 6.875%, 1/15/25  393,000  399,534 

Freeport-McMoRan, Inc. company guaranty sr. unsec. notes     
3.55%, 3/1/22 (Indonesia)  35,000  32,725 

Freeport-McMoRan, Inc. 144A company guaranty sr. unsec. notes     
6.75%, 2/1/22 (Indonesia)  208,000  216,840 

Freeport-McMoRan, Inc. 144A company guaranty sr. unsec. unsub.     
notes 6.875%, 2/15/23 (Indonesia)  340,000  354,450 

GCP Applied Technologies, Inc. 144A company guaranty sr. unsec.     
notes 9.50%, 2/1/23  760,000  866,400 

Grinding Media, Inc./MC Grinding Media Canada, Inc. 144A sr. sub.     
notes 7.375%, 12/15/23  95,000  100,344 

HudBay Minerals, Inc. 144A company guaranty sr. unsec. notes     
7.625%, 1/15/25 (Canada)  175,000  187,250 

Huntsman International, LLC company guaranty sr. unsec. notes     
5.125%, 11/15/22  100,000  103,313 

 

26 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Basic materials cont.     

Huntsman International, LLC company guaranty sr. unsec. unsub.     
notes 4.875%, 11/15/20  $546,000  $563,745 

Joseph T Ryerson & Son, Inc. 144A sr. notes 11.00%, 5/15/22  315,000  351,036 

Kraton Polymers, LLC/Kraton Polymers Capital Corp. 144A     
company guaranty sr. unsec. notes 10.50%, 4/15/23  208,000  236,600 

Louisiana-Pacific Corp. company guaranty sr. unsec. unsub. notes     
4.875%, 9/15/24  265,000  264,338 

Mercer International, Inc. company guaranty sr. unsec. notes     
7.75%, 12/1/22 (Canada)  515,000  551,050 

Mercer International, Inc. 144A sr. unsec. notes 6.50%,     
2/1/24 (Canada)  85,000  85,000 

New Gold, Inc. 144A company guaranty sr. unsec. unsub. notes     
6.25%, 11/15/22 (Canada)  187,000  187,468 

Norbord, Inc. 144A company guaranty sr. notes 6.25%,     
4/15/23 (Canada)  320,000  333,632 

Novelis Corp. 144A company guaranty sr. unsec. bonds     
5.875%, 9/30/26  53,000  53,795 

Novelis Corp. 144A company guaranty sr. unsec. notes     
6.25%, 8/15/24  935,000  986,425 

Pactiv, LLC sr. unsec. unsub. bonds 8.375%, 4/15/27  45,000  49,163 

Platform Specialty Products Corp. 144A sr. unsec. notes     
10.375%, 5/1/21  57,000  63,270 

PQ Corp. 144A company guaranty sr. notes 6.75%, 11/15/22  105,000  113,663 

Sealed Air Corp. 144A company guaranty sr. unsec. notes     
6.875%, 7/15/33  502,000  527,100 

Sealed Air Corp. 144A company guaranty sr. unsec. notes     
5.25%, 4/1/23  320,000  333,600 

Sealed Air Corp. 144A company guaranty sr. unsec. notes     
5.125%, 12/1/24  140,000  145,075 

Sealed Air Corp. 144A company guaranty sr. unsec. notes     
4.875%, 12/1/22  129,000  133,031 

Smurfit Kappa Acquisitions 144A company guaranty sr. unsec.     
notes 4.875%, 9/15/18 (Ireland)  200,000  206,500 

Smurfit Kappa Treasury Funding, Ltd. company guaranty sr. unsec.     
unsub. notes 7.50%, 11/20/25 (Ireland)  358,000  418,860 

Steel Dynamics, Inc. company guaranty sr. unsec. unsub. notes     
6.375%, 8/15/22  276,000  288,765 

Steel Dynamics, Inc. company guaranty sr. unsec. unsub. notes     
5.50%, 10/1/24  110,000  116,738 

Steel Dynamics, Inc. company guaranty sr. unsec. unsub. notes     
5.25%, 4/15/23  45,000  46,856 

Steel Dynamics, Inc. 144A sr. unsec. bonds 5.00%, 12/15/26  120,000  122,100 

Teck Resources, Ltd. company guaranty sr. unsec. unsub. notes     
4.75%, 1/15/22 (Canada)  148,000  151,700 

Teck Resources, Ltd. company guaranty sr. unsec. unsub. notes     
3.75%, 2/1/23 (Canada)  132,000  128,205 

TMS International Corp. 144A company guaranty sr. unsec. sub.     
notes 7.625%, 10/15/21  535,000  533,663 

Tronox Finance, LLC company guaranty sr. unsec. notes     
6.375%, 8/15/20  265,000  254,731 

 

Premier Income Trust 27 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Basic materials cont.     

U.S. Concrete, Inc. 144A company guaranty sr. unsec. unsub. notes     
6.375%, 6/1/24  $165,000  $174,281 

Univar USA, Inc. 144A company guaranty sr. unsec. notes     
6.75%, 7/15/23  310,000  322,400 

USG Corp. 144A company guaranty sr. unsec. notes 5.50%, 3/1/25  266,000  278,635 

Weekley Homes, LLC/Weekley Finance Corp. sr. unsec. notes     
6.00%, 2/1/23  125,000  118,750 

WR Grace & Co.- Conn. 144A company guaranty sr. unsec. notes     
5.625%, 10/1/24  463,000  487,886 

Zekelman Industries, Inc. 144A company guaranty sr. notes     
9.875%, 6/15/23  489,000  552,570 

    20,443,953 

Capital goods (2.1%)     

Advanced Disposal Services, Inc. 144A sr. unsec. notes     
5.625%, 11/15/24  585,000  595,238 

American Axle & Manufacturing, Inc. company guaranty sr. unsec.     
notes 7.75%, 11/15/19  503,000  555,815 

Amstead Industries, Inc. 144A company guaranty sr. unsec. sub.     
notes 5.375%, 9/15/24  280,000  275,100 

Amstead Industries, Inc. 144A company guaranty sr. unsec. sub.     
notes 5.00%, 3/15/22  367,000  367,918 

Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 144A     
company guaranty sr. unsec. notes 7.25%, 5/15/24 (Ireland)  630,000  674,100 

Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 144A     
company guaranty sr. unsec. notes 6.00%, 2/15/25 (Ireland)  265,000  266,656 

ATS Automation Tooling Systems, Inc. 144A sr. unsec. notes 6.50%,     
6/15/23 (Canada)  419,000  433,141 

Belden, Inc. 144A company guaranty sr. unsec. sub. notes     
5.25%, 7/15/24  524,000  526,620 

Berry Plastics Corp. company guaranty notes 6.00%, 10/15/22  155,000  164,106 

Berry Plastics Corp. company guaranty notes 5.50%, 5/15/22  240,000  249,600 

Berry Plastics Corp. company guaranty unsub. notes     
5.125%, 7/15/23  154,000  157,573 

Bombardier, Inc. 144A sr. unsec. notes 8.75%, 12/1/21 (Canada)  390,000  420,225 

Briggs & Stratton Corp. company guaranty sr. unsec. notes     
6.875%, 12/15/20  553,000  602,770 

Crown Cork & Seal Co., Inc. company guaranty sr. unsec. bonds     
7.375%, 12/15/26  145,000  163,850 

Gates Global, LLC/Gates Global Co. 144A company guaranty sr.     
unsec. notes 6.00%, 7/15/22  818,000  806,753 

KLX, Inc. 144A company guaranty sr. unsec. notes 5.875%, 12/1/22  537,000  562,508 

Legrand France SA sr. unsec. unsub. notes 8.50%, 2/15/25 (France)  158,000  203,277 

Manitowoc Foodservice, Inc. sr. unsec. notes 9.50%, 2/15/24  756,000  869,400 

MasTec, Inc. company guaranty sr. unsec. unsub. notes     
4.875%, 3/15/23  602,000  595,228 

Moog, Inc. 144A company guaranty sr. unsec. notes 5.25%, 12/1/22  369,000  376,380 

Oshkosh Corp. company guaranty sr. unsec. sub. notes     
5.375%, 3/1/25  215,000  222,256 

Oshkosh Corp. company guaranty sr. unsec. sub. notes     
5.375%, 3/1/22  744,000  775,620 

 

28 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Capital goods cont.     

Reynolds Group Issuer, Inc./Reynolds Group Issuer, LLC/Reynolds     
Group Issuer Lu 144A company guaranty sr. unsec. unsub. notes     
7.00%, 7/15/24  $329,000  $350,550 

Tenneco, Inc. company guaranty sr. unsec. unsub. notes     
5.00%, 7/15/26  40,000  39,948 

Terex Corp. company guaranty sr. unsec. notes 6.00%, 5/15/21  86,000  88,399 

TI Group Automotive Systems, LLC 144A sr. unsec. notes     
8.75%, 7/15/23  761,000  818,075 

TransDigm, Inc. company guaranty sr. unsec. unsub. notes     
6.50%, 7/15/24  395,000  395,494 

ZF North America Capital, Inc. 144A company guaranty sr. unsec.     
unsub. notes 4.75%, 4/29/25  540,000  549,018 

ZF North America Capital, Inc. 144A company guaranty sr. unsec.     
unsub. notes 4.50%, 4/29/22  330,000  338,663 

    12,444,281 

Communication services (4.1%)     

Altice Financing SA 144A company guaranty sr. notes 6.625%,     
2/15/23 (Luxembourg)  400,000  419,000 

Altice SA 144A company guaranty sr. unsec. notes 7.75%,     
5/15/22 (Luxembourg)  800,000  849,000 

Altice SA 144A company guaranty sr. unsec. notes 7.625%,     
2/15/25 (Luxembourg)  910,000  963,463 

Cablevision Systems Corp. sr. unsec. unsub. notes 8.00%, 4/15/20  400,000  442,080 

CCO Holdings, LLC/CCO Holdings Capital Corp. company guaranty     
sr. unsec. notes 5.25%, 9/30/22  618,000  639,630 

CCO Holdings, LLC/CCO Holdings Capital Corp. 144A company     
guaranty sr. unsec. bonds 5.50%, 5/1/26  237,000  248,258 

CCO Holdings, LLC/CCO Holdings Capital Corp. 144A company     
guaranty sr. unsec. notes 5.875%, 4/1/24  563,000  602,410 

CCO Holdings, LLC/CCO Holdings Capital Corp. 144A sr. unsec.     
notes 5.75%, 2/15/26  112,000  118,685 

CCO Holdings, LLC/CCO Holdings Capital Corp. 144A sr. unsec.     
unsub. notes 5.125%, 5/1/23  815,000  845,563 

CenturyLink, Inc. sr. unsec. unsub. notes 6.75%, 12/1/23  348,000  358,005 

CenturyLink, Inc. sr. unsec. unsub. notes 5.625%, 4/1/20  95,000  100,225 

Cequel Communications Holdings I, LLC/Cequel Capital Corp.     
144A sr. sub. notes 7.75%, 7/15/25  265,000  293,156 

Cequel Communications Holdings I, LLC/Cequel Capital Corp.     
144A sr. unsec. unsub. notes 5.125%, 12/15/21  469,000  474,863 

Cequel Communications Holdings I, LLC/Cequel Capital Corp.     
144A sr. unsec. unsub. notes 5.125%, 12/15/21  399,000  404,486 

CSC Holdings, LLC sr. unsec. unsub. bonds 5.25%, 6/1/24  646,000  649,230 

CSC Holdings, LLC sr. unsec. unsub. notes 6.75%, 11/15/21  124,000  134,540 

CSC Holdings, LLC 144A sr. unsec. unsub. notes 10.125%, 1/15/23  1,060,000  1,228,943 

Digicel Group, Ltd. 144A sr. unsec. notes 8.25%, 9/30/20 (Jamaica)  480,000  425,400 

Digicel, Ltd. 144A company guaranty sr. unsec. notes 6.75%,     
3/1/23 (Jamaica)  610,000  567,300 

DISH DBS Corp. company guaranty sr. unsec. unsub. notes     
5.875%, 11/15/24  305,000  308,431 

Frontier Communications Corp. sr. unsec. notes 11.00%, 9/15/25  173,000  174,946 

Frontier Communications Corp. sr. unsec. notes 10.50%, 9/15/22  505,000  526,149 

 

Premier Income Trust 29 

 



    Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.    amount  Value 

Communication services cont.       

Frontier Communications Corp. sr. unsec. notes 8.875%, 9/15/20    $142,000  $151,230 

Frontier Communications Corp. sr. unsec. unsub. notes       
7.625%, 4/15/24    100,000  88,125 

Inmarsat Finance PLC company guaranty sr. unsec. unsub. notes       
Ser. REGS, 4.875%, 5/15/22 (United Kingdom)    259,000  253,820 

Intelsat Jackson Holdings SA company guaranty sr. unsec. notes       
7.50%, 4/1/21 (Bermuda)    270,000  209,250 

Intelsat Jackson Holdings SA 144A company guaranty sr. notes       
8.00%, 2/15/24 (Bermuda)    15,000  15,563 

Intelsat Luxembourg SA company guaranty sr. unsec. bonds       
7.75%, 6/1/21 (Luxembourg)    15,000  5,213 

Intelsat Luxembourg SA company guaranty sr. unsec. sub. bonds       
8.125%, 6/1/23 (Luxembourg)    90,000  29,925 

Quebecor Media, Inc. sr. unsec. unsub. notes 5.75%,       
1/15/23 (Canada)    88,000  92,162 

Qwest Corp. sr. unsec. unsub. notes 7.25%, 9/15/25    157,000  168,694 

SFR Group SA 144A company guaranty sr. notes 6.00%,       
5/15/22 (France)    775,000  798,250 

SFR Group SA 144A sr. bonds 6.25%, 5/15/24 (France)    450,000  451,688 

Sprint Capital Corp. company guaranty sr. unsec. unsub. notes       
6.875%, 11/15/28    225,000  231,750 

Sprint Communications, Inc. sr. unsec. notes 7.00%, 8/15/20    238,000  254,660 

Sprint Communications, Inc. sr. unsec. unsub. notes       
8.375%, 8/15/17    695,000  716,719 

Sprint Communications, Inc. 144A company guaranty sr. unsec.       
notes 9.00%, 11/15/18    656,000  718,320 

Sprint Corp. company guaranty sr. unsec. sub. notes       
7.875%, 9/15/23    929,000  1,014,933 

Sprint Corp. company guaranty sr. unsec. sub. notes       
7.25%, 9/15/21    465,000  498,248 

Sprint Spectrum Co., LLC/Sprint Spectrum Co. II, LLC/       
Sprint Spectrum Co. III, LL 144A company guaranty sr. notes       
3.36%, 9/20/21    290,000  290,363 

T-Mobile USA, Inc. company guaranty sr. unsec. notes       
6.625%, 4/1/23    1,098,000  1,166,625 

T-Mobile USA, Inc. company guaranty sr. unsec. notes       
6.375%, 3/1/25    745,000  805,531 

T-Mobile USA, Inc. company guaranty sr. unsec. notes       
6.00%, 3/1/23    291,000  307,733 

T-Mobile USA, Inc. company guaranty sr. unsec. unsub. notes       
6.125%, 1/15/22    455,000  480,594 

Telenet Finance V Luxembourg SCA 144A sr. notes 6.75%,       
8/15/24 (Luxembourg)  EUR  680,000  813,050 

Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH       
company guaranty sr. notes 5.625%, 4/15/23 (Germany)  EUR  115,200  133,382 

Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH       
company guaranty sr. notes Ser. REGS, 5.75%, 1/15/23 (Germany)  EUR  88,290  101,733 

Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 144A       
company guaranty sr. notes 5.125%, 1/21/23 (Germany)  EUR  433,350  494,092 

Videotron, Ltd. company guaranty sr. unsec. unsub. notes 5.00%,       
7/15/22 (Canada)    $662,000  690,135 

 

30 Premier Income Trust 

 



    Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.    amount  Value 

Communication services cont.       

Virgin Media Secured Finance PLC 144A company guaranty sr.       
bonds 5.00%, 4/15/27 (United Kingdom)  GBP  255,000  $317,447 

Virgin Media Secured Finance PLC 144A sr. notes 6.00%, 4/15/21       
(United Kingdom)  GBP  311,273  407,130 

West Corp. 144A company guaranty sr. unsec. sub. notes       
5.375%, 7/15/22    $609,000  586,163 

WideOpenWest Finance, LLC/WideOpenWest Capital Corp.       
company guaranty sr. unsec. sub. notes 10.25%, 7/15/19    396,000  417,534 

Wind Acquisition Finance SA 144A company guaranty sr. notes       
4.00%, 7/15/20 (Luxembourg)  EUR  290,000  318,690 

Windstream Services, LLC company guaranty sr. unsec. notes       
6.375%, 8/1/23    $659,000  589,805 

Ziggo Bond Finance BV 144A sr. unsec. bonds 4.625%,       
1/15/25 (Netherlands)  EUR  115,000  129,976 

      24,522,296 

Consumer cyclicals (5.2%)       

AMC Entertainment Holdings, Inc. 144A sr. unsec. sub. bonds       
5.875%, 11/15/26    $120,000  122,400 

AMC Entertainment, Inc. company guaranty sr. unsec. sub. notes       
5.875%, 2/15/22    159,000  166,155 

AMC Entertainment, Inc. company guaranty sr. unsec. sub. notes       
5.75%, 6/15/25    355,000  366,538 

American Builders & Contractors Supply Co., Inc. 144A sr. unsec.       
notes 5.75%, 12/15/23    377,000  391,138 

American Tire Distributors, Inc. 144A sr. unsec. sub. notes       
10.25%, 3/1/22    503,000  489,168 

Bon-Ton Department Stores, Inc. (The) company guaranty notes       
8.00%, 6/15/21    222,000  106,560 

Boyd Gaming Corp. company guaranty sr. unsec. sub. notes       
6.875%, 5/15/23    344,000  369,387 

Brookfield Residential Properties, Inc. 144A company guaranty sr.       
unsec. notes 6.50%, 12/15/20 (Canada)    535,000  551,050 

Brookfield Residential Properties, Inc./Brookfield Residential       
US Corp. 144A company guaranty sr. unsec. notes 6.125%,       
7/1/22 (Canada)    225,000  230,861 

Caesars Growth Properties Holdings, LLC/Caesars Growth       
Properties Finance, Inc. company guaranty notes 9.375%, 5/1/22    370,000  399,600 

CalAtlantic Group, Inc. company guaranty sr. unsec. sub. notes       
6.25%, 12/15/21    562,000  611,175 

CalAtlantic Group, Inc. company guaranty sr. unsec. sub. notes       
5.875%, 11/15/24    195,000  202,800 

CBS Radio, Inc. 144A company guaranty sr. unsec. notes       
7.25%, 11/1/24    105,000  109,396 

Cedar Fair LP/Canada’s Wonderland Co./Magnum Management       
Corp. company guaranty sr. unsec. notes 5.25%, 3/15/21    235,000  242,150 

Cinemark USA, Inc. company guaranty sr. unsec. notes       
5.125%, 12/15/22    165,000  169,538 

Cinemark USA, Inc. company guaranty sr. unsec. sub. notes       
4.875%, 6/1/23    140,000  141,036 

Clear Channel Worldwide Holdings, Inc. company guaranty sr.       
unsec. sub. notes 7.625%, 3/15/20    298,000  299,118 

 

Premier Income Trust 31 

 



    Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.    amount  Value 

Consumer cyclicals cont.       

Clear Channel Worldwide Holdings, Inc. company guaranty sr.       
unsec. unsub. notes 6.50%, 11/15/22    $865,000  $903,060 

Diamond Resorts International, Inc. 144A sr. notes 7.75%, 9/1/23    520,000  538,200 

Diamond Resorts International, Inc. 144A sr. unsec. notes       
10.75%, 9/1/24    210,000  210,000 

Eldorado Resorts, Inc. company guaranty sr. unsec. unsub. notes       
7.00%, 8/1/23    440,000  468,600 

EMI Music Publishing Group North America Holdings, Inc. 144A sr.       
unsec. notes 7.625%, 6/15/24    315,000  344,138 

Fiat Chryslet Automobiles NV sr. unsec. unsub. notes 5.25%,       
4/15/23 (Italy)    430,000  440,750 

General Motors Co. sr. unsec. notes 5.20%, 4/1/45    80,000  78,688 

General Motors Financial Co., Inc. company guaranty sr. unsec.       
notes 4.00%, 10/6/26    275,000  266,463 

GLP Capital LP/GLP Financing II, Inc. company guaranty sr. unsec.       
sub. notes 4.875%, 11/1/20    400,000  420,000 

GLP Capital LP/GLP Financing II, Inc. company guaranty sr. unsec.       
unsub. notes 5.375%, 4/15/26    165,000  172,013 

Great Canadian Gaming Corp. 144A company guaranty sr. unsec.       
notes 6.625%, 7/25/22 (Canada)  CAD  541,000  433,943 

Grupo Televisa SAB sr. unsec. unsub. bonds 6.625%,       
1/15/40 (Mexico)    $195,000  202,849 

Hanesbrands, Inc. 144A company guaranty sr. unsec. unsub. notes       
4.625%, 5/15/24    320,000  316,800 

Howard Hughes Corp. (The) 144A sr. unsec. notes 6.875%, 10/1/21    364,000  383,565 

iHeartCommunications, Inc. company guaranty sr. notes       
9.00%, 12/15/19    674,000  564,054 

IHO Verwaltungs GmbH 144A sr. notes 4.50%, 9/15/23 (Germany) ‡‡    410,000  405,900 

Isle of Capri Casinos, Inc. company guaranty sr. unsec. notes       
5.875%, 3/15/21    289,000  298,768 

Jack Ohio Finance, LLC/Jack Ohio Finance 1 Corp. 144A company       
guaranty notes 10.25%, 11/15/22    640,000  678,400 

Jack Ohio Finance, LLC/Jack Ohio Finance 1 Corp. 144A company       
guaranty sr. notes 6.75%, 11/15/21    585,000  598,163 

Jacobs Entertainment, Inc. 144A notes 7.875%, 2/1/24    120,000  123,450 

JC Penney Corp., Inc. company guaranty sr. unsec. bonds       
8.125%, 10/1/19    168,000  177,870 

JC Penney Corp., Inc. company guaranty sr. unsec. unsub. notes       
5.65%, 6/1/20    71,000  69,935 

Jo-Ann Stores Holdings, Inc. 144A sr. unsec. notes 9.75%,       
10/15/19 ‡‡    280,000  265,650 

L Brands, Inc. company guaranty sr. unsec. notes 6.625%, 4/1/21    457,000  500,986 

L Brands, Inc. company guaranty sr. unsec. sub. notes       
5.625%, 2/15/22    190,000  199,025 

Lamar Media Corp. company guaranty sr. unsec. sub. notes       
5.875%, 2/1/22    130,000  134,063 

Lamar Media Corp. company guaranty sr. unsec. sub. notes       
5.375%, 1/15/24    307,000  320,048 

Lear Corp. company guaranty sr. unsec. notes 5.25%, 1/15/25    56,000  59,422 

Lear Corp. company guaranty sr. unsec. unsub. notes       
5.375%, 3/15/24    125,000  131,563 

 

32 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Consumer cyclicals cont.     

Lennar Corp. company guaranty sr. unsec. unsub. notes     
4.75%, 11/15/22  $200,000  $205,126 

Lions Gate Entertainment Corp. 144A sr. unsec. unsub. notes     
5.875%, 11/1/24  353,000  358,295 

Live Nation Entertainment, Inc. 144A company guaranty sr. unsec.     
notes 4.875%, 11/1/24  165,000  165,000 

Masonite International Corp. 144A company guaranty sr. unsec.     
notes 5.625%, 3/15/23  126,000  130,410 

Mattamy Group Corp. 144A sr. unsec. notes 6.875%,     
12/15/23 (Canada)  85,000  87,550 

Mattamy Group Corp. 144A sr. unsec. notes 6.50%,     
11/15/20 (Canada)  537,000  549,083 

MGM Resorts International company guaranty sr. unsec. notes     
6.75%, 10/1/20  410,000  454,075 

MGM Resorts International company guaranty sr. unsec. notes     
5.25%, 3/31/20  67,000  70,434 

MGM Resorts International company guaranty sr. unsec. unsub.     
notes 6.625%, 12/15/21  337,000  374,913 

Navistar International Corp. company guaranty sr. unsec. notes     
8.25%, 11/1/21  919,000  928,190 

Neiman Marcus Group, LLC (The) company guaranty sr. notes     
7.125%, 6/1/28  260,000  217,100 

Neiman Marcus Group, Ltd. 144A company guaranty sr. unsec. sub.     
notes 8.75%, 10/15/21 ‡‡  286,000  168,025 

Neiman Marcus Group, Ltd. 144A company guaranty sr. unsec. sub.     
notes 8.00%, 10/15/21  220,000  135,850 

Nexstar Escrow Corp. 144A company guaranty sr. unsec. notes     
5.625%, 8/1/24  350,000  349,563 

Nielsen Co. Luxembourg Sarl (The) 144A company guaranty sr.     
unsec. notes 5.00%, 2/1/25 (Luxembourg)  190,000  188,813 

Nielsen Co. Luxembourg Sarl (The) 144A company guaranty sr.     
unsec. sub. notes 5.50%, 10/1/21 (Luxembourg)  207,000  214,763 

Nielsen Finance, LLC/Nielsen Finance Co. 144A company guaranty     
sr. unsec. sub. notes 5.00%, 4/15/22  246,000  251,228 

Outfront Media Capital, LLC/Outfront Media Capital Corp.     
company guaranty sr. unsec. sub. notes 5.875%, 3/15/25  315,000  329,175 

Outfront Media Capital, LLC/Outfront Media Capital Corp.     
company guaranty sr. unsec. sub. notes 5.625%, 2/15/24  209,000  218,144 

Owens Corning company guaranty sr. unsec. notes 4.20%, 12/1/24  296,000  302,704 

Penn National Gaming, Inc. 144A sr. unsec. notes 5.625%, 1/15/27  240,000  240,305 

Penske Automotive Group, Inc. company guaranty sr. unsec. sub.     
notes 5.75%, 10/1/22  439,000  452,170 

Penske Automotive Group, Inc. company guaranty sr. unsec. sub.     
notes 5.50%, 5/15/26  241,000  239,795 

Penske Automotive Group, Inc. company guaranty sr. unsec. sub.     
notes 5.375%, 12/1/24  290,000  291,450 

PulteGroup, Inc. company guaranty sr. unsec. unsub. notes     
7.875%, 6/15/32  265,000  292,825 

PulteGroup, Inc. company guaranty sr. unsec. unsub. notes     
5.50%, 3/1/26  400,000  409,000 

Regal Entertainment Group sr. unsec. sub. notes 5.75%, 2/1/25  390,000  396,338 

 

Premier Income Trust 33 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Consumer cyclicals cont.     

Regal Entertainment Group sr. unsec. sub. notes 5.75%, 6/15/23  $312,000  $322,530 

Ritchie Bros Auctioneers, Inc. 144A company guaranty sr. unsec.     
notes 5.375%, 1/15/25 (Canada)  110,000  112,338 

Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp.     
144A sr. notes 6.125%, 8/15/21  430,000  440,750 

Sabre GLBL, Inc. 144A company guaranty sr. notes 5.375%, 4/15/23  365,000  371,274 

Scientific Games International, Inc. company guaranty sr. unsec.     
notes 10.00%, 12/1/22  1,203,000  1,232,618 

Scientific Games International, Inc. company guaranty sr. unsec.     
sub. notes 6.25%, 9/1/20  115,000  106,950 

Scientific Games International, Inc. 144A company guaranty sr.     
notes 7.00%, 1/1/22  345,000  368,719 

Sinclair Television Group, Inc. 144A company guaranty sr. unsec.     
sub. notes 5.625%, 8/1/24  777,000  790,598 

Sirius XM Radio, Inc. 144A company guaranty sr. unsec. sub. notes     
6.00%, 7/15/24  263,000  279,438 

Six Flags Entertainment Corp. 144A company guaranty sr. unsec.     
unsub. notes 5.25%, 1/15/21  676,000  694,590 

Spectrum Brands, Inc. company guaranty sr. unsec. notes     
5.75%, 7/15/25  240,000  250,800 

Spectrum Brands, Inc. company guaranty sr. unsec. sub. notes     
6.625%, 11/15/22  25,000  26,438 

Standard Industries, Inc. 144A sr. unsec. notes 6.00%, 10/15/25  100,000  105,500 

Standard Industries, Inc. 144A sr. unsec. notes 5.375%, 11/15/24  501,000  516,656 

Standard Industries, Inc./NJ 144A sr. unsec. notes 5.125%, 2/15/21  50,000  52,250 

SugarHouse HSP Gaming Prop. Mezz LP/SugarHouse HSP Gaming     
Finance Corp. 144A sr. notes 6.375%, 6/1/21  417,000  420,215 

Taylor Morrison Communities, Inc./Monarch Communities, Inc.     
144A company guaranty sr. unsec. notes 5.25%, 4/15/21  747,000  767,309 

Taylor Morrison Communities, Inc./Monarch Communities, Inc.     
144A company guaranty sr. unsec. sub. notes 5.625%, 3/1/24  165,000  166,856 

Tempur Sealy International, Inc. company guaranty sr. unsec.     
unsub. bonds 5.50%, 6/15/26  185,000  182,225 

Tribune Media Co. company guaranty sr. unsec. notes     
5.875%, 7/15/22  420,000  424,200 

Univision Communications, Inc. 144A company guaranty sr. notes     
5.125%, 5/15/23  495,000  491,594 

WMG Acquisition Corp. 144A company guaranty sr. notes     
5.00%, 8/1/23  52,000  52,130 

Wolverine World Wide, Inc. 144A company guaranty sr. unsec.     
bonds 5.00%, 9/1/26  229,000  217,550 

    31,088,288 

Consumer staples (1.2%)     

1011778 BC ULC/New Red Finance, Inc. 144A company guaranty     
notes 6.00%, 4/1/22 (Canada)  795,000  828,326 

1011778 BC ULC/New Red Finance, Inc. 144A company guaranty sr.     
notes 4.625%, 1/15/22 (Canada)  170,000  173,825 

Ashtead Capital, Inc. 144A company guaranty notes     
5.625%, 10/1/24  310,000  325,888 

BlueLine Rental Finance Corp. 144A notes 7.00%, 2/1/19  297,000  293,288 

 

34 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Consumer staples cont.     

CEC Entertainment, Inc. company guaranty sr. unsec. sub. notes     
8.00%, 2/15/22  $241,000  $251,845 

Ceridian HCM Holding, Inc. 144A sr. unsec. notes 11.00%, 3/15/21  1,061,000  1,103,440 

Constellation Brands, Inc. company guaranty sr. unsec. notes     
4.25%, 5/1/23  115,000  120,175 

Dean Foods Co. 144A company guaranty sr. unsec. notes     
6.50%, 3/15/23  330,000  346,088 

Fresh Market, Inc. (The) 144A company guaranty sr. notes     
9.75%, 5/1/23  264,000  234,960 

JBS USA Lux SA/JBS USA Finance, Inc. 144A sr. unsec. notes 8.25%,     
2/1/20 (Brazil)  150,000  153,750 

KFC Holding Co./Pizza Hut Holdings, LLC/Taco Bell of America, LLC     
144A company guaranty sr. unsec. notes 5.25%, 6/1/26  295,000  298,440 

KFC Holding Co./Pizza Hut Holdings, LLC/Taco Bell of America, LLC     
144A company guaranty sr. unsec. notes 5.00%, 6/1/24  295,000  300,531 

Lamb Weston Holdings, Inc. 144A company guaranty sr. unsec.     
unsub. notes 4.875%, 11/1/26  350,000  350,438 

Lamb Weston Holdings, Inc. 144A company guaranty sr. unsec.     
unsub. notes 4.625%, 11/1/24  85,000  85,213 

Landry’s, Inc. 144A sr. unsec. notes 6.75%, 10/15/24  215,000  221,450 

Pilgrim’s Pride Corp. 144A company guaranty sr. unsec. notes     
5.75%, 3/15/25  202,000  203,390 

Prestige Brands, Inc. 144A company guaranty sr. unsec. notes     
5.375%, 12/15/21  320,000  329,600 

Revlon Consumer Products Corp. company guaranty sr. unsec.     
notes 6.25%, 8/1/24  161,000  166,635 

Revlon Consumer Products Corp. company guaranty sr. unsec.     
sub. notes 5.75%, 2/15/21  540,000  540,000 

Rite Aid Corp. 144A company guaranty sr. unsec. unsub. notes     
6.125%, 4/1/23  473,000  492,511 

Vander Intermediate Holding II Corp. 144A sr. unsec. notes     
9.75%, 2/1/19 ‡‡  78,880  70,203 

WhiteWave Foods Co. (The) company guaranty sr. unsec. notes     
5.375%, 10/1/22  454,000  493,725 

    7,383,721 

Energy (6.5%)     

Alta Mesa Holdings LP/Alta Mesa Finance Services Corp. 144A     
company guaranty sr. unsec. notes 7.875%, 12/15/24  420,000  451,500 

Antero Resources Corp. company guaranty sr. unsec. notes     
5.625%, 6/1/23  178,000  181,560 

Antero Resources Corp. company guaranty sr. unsec. sub. notes     
5.125%, 12/1/22  238,000  239,785 

Antero Resources Finance Corp. company guaranty sr. unsec. sub.     
notes 5.375%, 11/1/21  324,000  332,505 

Baytex Energy Corp. 144A company guaranty sr. unsec. sub. notes     
5.625%, 6/1/24 (Canada)  295,000  271,400 

Baytex Energy Corp. 144A company guaranty sr. unsec. sub. notes     
5.125%, 6/1/21 (Canada)  41,000  37,771 

California Resources Corp. company guaranty sr. unsec. sub. notes     
5.00%, 1/15/20  199,000  162,683 

 

Premier Income Trust 35 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Energy cont.     

California Resources Corp. 144A company guaranty notes     
8.00%, 12/15/22  $634,000  $564,260 

Cenovus Energy, Inc. sr. unsec. bonds 6.75%, 11/15/39 (Canada)  610,000  685,278 

CHC Helicopter SA company guaranty sr. notes 9.25%, 10/15/20     
(Canada) (In default)   211,500  132,716 

Cheniere Corpus Christi Holdings, LLC 144A company guaranty sr.     
notes 5.875%, 3/31/25  718,000  759,285 

Chesapeake Energy Corp. company guaranty sr. unsec. notes     
5.75%, 3/15/23  58,000  55,680 

Chesapeake Energy Corp. 144A company guaranty notes     
8.00%, 12/15/22  444,000  473,970 

Chesapeake Energy Corp. 144A company guaranty sr. unsec. notes     
8.00%, 1/15/25  148,000  151,608 

Concho Resources, Inc. company guaranty sr. unsec. notes     
5.50%, 4/1/23  559,000  578,565 

Concho Resources, Inc. company guaranty sr. unsec. notes     
4.375%, 1/15/25  180,000  184,050 

Concho Resources, Inc. company guaranty sr. unsec. unsub. notes     
5.50%, 10/1/22  204,000  211,905 

Continental Resources, Inc. company guaranty sr. unsec. notes     
3.80%, 6/1/24  980,000  915,075 

Continental Resources, Inc., OK company guaranty sr. unsec.     
bonds 4.90%, 6/1/44  60,000  52,800 

Denbury Resources, Inc. company guaranty sr. unsec. sub. notes     
6.375%, 8/15/21  81,000  74,115 

Denbury Resources, Inc. 144A company guaranty notes     
9.00%, 5/15/21  417,000  455,573 

Diamondback Energy, Inc. 144A company guaranty sr. unsec.     
notes 5.375%, 5/31/25  520,000  536,900 

Diamondback Energy, Inc. 144A company guaranty sr. unsec.     
notes 4.75%, 11/1/24  140,000  139,825 

Endeavor Energy Resources LP/EER Finance, Inc. 144A sr. unsec.     
notes 8.125%, 9/15/23  411,000  445,935 

EP Energy, LLC/Everest Acquisition Finance, Inc. company     
guaranty sr. unsec. sub. notes 9.375%, 5/1/20  878,000  873,610 

EP Energy, LLC/Everest Acquisition Finance, Inc. 144A company     
guaranty sr. notes 8.00%, 11/29/24  226,000  244,080 

Gazprom OAO Via Gaz Capital SA 144A sr. unsec. unsub. notes     
9.25%, 4/23/19 (Russia)  394,000  446,698 

Halcon Resources Corp. 144A company guaranty notes     
8.625%, 2/1/20  345,000  360,525 

Hess Corp. sr. unsec. unsub. notes 7.30%, 8/15/31  210,000  250,429 

Holly Energy Partners LP/Holly Energy Finance Corp. 144A     
company guaranty sr. unsec. notes 6.00%, 8/1/24  405,000  425,250 

Laredo Petroleum, Inc. company guaranty sr. unsec. notes     
7.375%, 5/1/22  428,000  445,655 

Laredo Petroleum, Inc. company guaranty sr. unsec. sub. notes     
5.625%, 1/15/22  300,000  304,500 

Lukoil International Finance BV 144A company guaranty sr. unsec.     
unsub. bonds 6.656%, 6/7/22 (Russia)  1,080,000  1,201,500 

 

36 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Energy cont.     

MEG Energy Corp. 144A company guaranty sr. unsec. notes 7.00%,     
3/31/24 (Canada)  $156,000  $146,640 

MEG Energy Corp. 144A company guaranty sr. unsec. notes 6.50%,     
3/15/21 (Canada)  208,000  213,554 

MEG Energy Corp. 144A company guaranty sr. unsec. notes     
6.375%, 1/30/23 (Canada)  72,000  66,960 

MEG Energy Corp. 144A notes 6.50%, 1/15/25 (Canada)  110,000  111,100 

Newfield Exploration Co. sr. unsec. unsub. notes 5.75%, 1/30/22  180,000  191,250 

Newfield Exploration Co. sr. unsec. unsub. notes 5.375%, 1/1/26  1,020,000  1,055,700 

Oasis Petroleum, Inc. company guaranty sr. unsec. sub. notes     
6.875%, 1/15/23  196,000  200,655 

Oasis Petroleum, Inc. company guaranty sr. unsec. unsub. notes     
6.875%, 3/15/22  324,000  332,100 

Parsley Energy, LLC/Parsley Finance Corp. 144A company     
guaranty sr. unsec. sub. notes 5.375%, 1/15/25  120,000  123,000 

Pertamina Persero PT 144A sr. unsec. unsub. notes 4.875%,     
5/3/22 (Indonesia)  270,000  279,369 

Pertamina Persero PT 144A sr. unsec. unsub. notes 4.30%,     
5/20/23 (Indonesia)  400,000  402,558 

Petrobras Global Finance BV company guaranty sr. unsec. unsub.     
bonds 7.25%, 3/17/44 (Brazil)  1,278,000  1,198,764 

Petrobras Global Finance BV company guaranty sr. unsec. unsub.     
notes 8.75%, 5/23/26 (Brazil)  656,000  738,918 

Petrobras Global Finance BV company guaranty sr. unsec. unsub.     
notes 6.875%, 1/20/40 (Brazil)  585,000  530,156 

Petrobras Global Finance BV company guaranty sr. unsec. unsub.     
notes 6.25%, 3/17/24 (Brazil)  4,115,000  4,156,101 

Petrobras Global Finance BV company guaranty sr. unsec. unsub.     
notes 6.125%, 1/17/22 (Brazil)  493,000  506,558 

Petrobras Global Finance BV company guaranty sr. unsec. unsub.     
notes 5.375%, 1/27/21 (Brazil)  960,000  966,288 

Petroleos de Venezuela SA company guaranty sr. unsec. bonds     
Ser. REGS, 6.00%, 11/15/26 (Venezuela)  1,255,000  476,461 

Petroleos de Venezuela SA company guaranty sr. unsec. unsub.     
notes 5.375%, 4/12/27 (Venezuela)  1,574,000  596,176 

Petroleos de Venezuela SA 144A company guaranty sr. unsec.     
notes 6.00%, 11/15/26 (Venezuela)  2,345,000  890,279 

Petroleos Mexicanos company guaranty sr. unsec. unsub. bonds     
6.625%, 6/15/35 (Mexico)  340,000  332,588 

Petroleos Mexicanos company guaranty sr. unsec. unsub. bonds     
5.625%, 1/23/46 (Mexico)  525,000  437,981 

Petroleos Mexicanos company guaranty sr. unsec. unsub. notes     
8.00%, 5/3/19 (Mexico)  1,440,000  1,586,520 

Petroleos Mexicanos company guaranty sr. unsec. unsub. notes     
4.50%, 1/23/26 (Mexico)  5,265,000  4,788,518 

Precision Drilling Corp. company guaranty sr. unsec. notes 5.25%,     
11/15/24 (Canada)  14,000  13,755 

Precision Drilling Corp. 144A company guaranty sr. unsec. notes     
7.75%, 12/15/23 (Canada)  130,000  140,400 

Range Resources Corp. 144A company guaranty sr. unsec. sub.     
notes 5.75%, 6/1/21  425,000  445,188 

 

Premier Income Trust 37 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Energy cont.     

Rose Rock Midstream LP/Rose Rock Finance Corp. company     
guaranty sr. unsec. sub. notes 5.625%, 11/15/23  $192,000  $189,840 

Rose Rock Midstream LP/Rose Rock Finance Corp. company     
guaranty sr. unsec. sub. notes 5.625%, 7/15/22  58,000  57,710 

Sabine Pass Liquefaction, LLC sr. notes 5.75%, 5/15/24  295,000  321,181 

Sabine Pass Liquefaction, LLC sr. notes 5.625%, 4/15/23  210,000  227,850 

Sabine Pass Liquefaction, LLC 144A sr. bonds 5.00%, 3/15/27  162,000  169,898 

Samson Investment Co. company guaranty sr. unsec. notes 9.75%,     
2/15/20 (In default)   950,000  69,350 

Seven Generations Energy, Ltd. 144A sr. unsec. sub. notes 8.25%,     
5/15/20 (Canada)  286,000  303,160 

Seventy Seven Energy, Inc. escrow sr. unsec. notes     
6.50%, 7/15/22 F   45,000  5 

SM Energy Co. sr. unsec. notes 6.50%, 11/15/21  459,000  473,344 

SM Energy Co. sr. unsec. sub. notes 5.00%, 1/15/24  208,000  198,120 

SM Energy Co. sr. unsec. unsub. notes 6.50%, 1/1/23  90,000  92,700 

SM Energy Co. sr. unsec. unsub. notes 6.125%, 11/15/22  515,000  531,738 

Targa Resources Partners LP/Targa Resources Partners Finance     
Corp. 144A company guaranty sr. unsec. bonds 5.375%, 2/1/27  210,000  217,613 

Targa Resources Partners LP/Targa Resources Partners Finance     
Corp. 144A company guaranty sr. unsec. notes 5.125%, 2/1/25  105,000  108,675 

Tesoro Logistics LP/Tesoro Logistics Finance Corp. company     
guaranty sr. unsec. notes 5.25%, 1/15/25  120,000  125,100 

Triangle USA Petroleum Corp. 144A company guaranty sr. unsec.     
notes 6.75%, 7/15/22 (In default)   70,000  19,950 

Whiting Petroleum Corp. company guaranty sr. unsec. sub. notes     
6.50%, 10/1/18  265,000  265,000 

Whiting Petroleum Corp. company guaranty sr. unsec. unsub.     
notes 5.75%, 3/15/21  265,000  266,325 

Williams Partners LP/ACMP Finance Corp. company guaranty sr.     
unsec. unsub. notes 6.125%, 7/15/22  134,000  138,356 

Williams Partners LP/ACMP Finance Corp. sr. unsec. unsub. notes     
4.875%, 5/15/23  399,000  411,968 

WPX Energy, Inc. sr. unsec. notes 8.25%, 8/1/23  107,000  121,713 

WPX Energy, Inc. sr. unsec. notes 7.50%, 8/1/20  444,000  481,740 

WPX Energy, Inc. sr. unsec. unsub. notes 6.00%, 1/15/22  604,000  628,160 

    38,994,024 

Financials (4.2%)     

Alliance Data Systems Corp. 144A company guaranty sr. unsec.     
notes 5.375%, 8/1/22  778,000  760,495 

Ally Financial, Inc. company guaranty sr. unsec. notes     
8.00%, 11/1/31  543,000  644,813 

Ally Financial, Inc. sub. unsec. notes 5.75%, 11/20/25  220,000  223,300 

American International Group, Inc. jr. unsec. sub. FRB     
8.175%, 5/15/58  163,000  208,640 

Banco Nacional de Costa Rica 144A sr. unsec. unsub. notes 4.875%,     
11/1/18 (Costa Rica)  250,000  253,875 

Bank of America Corp. jr. unsec. sub. FRN Ser. AA, 6.10%,     
perpetual maturity  148,000  154,105 

Bank of America Corp. jr. unsec. sub. FRN Ser. Z, 6.50%,     
perpetual maturity  185,000  198,413 

 

38 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Financials cont.     

CBRE Services, Inc. company guaranty sr. unsec. notes     
5.25%, 3/15/25  $175,000  $180,670 

CIT Group, Inc. sr. unsec. sub. notes 5.00%, 8/1/23  255,000  265,200 

CIT Group, Inc. sr. unsec. unsub. notes 5.375%, 5/15/20  310,000  329,763 

CIT Group, Inc. sr. unsec. unsub. notes 5.00%, 8/15/22  315,000  329,963 

CIT Group, Inc. 144A sr. unsec. notes 5.50%, 2/15/19  380,000  399,790 

CNO Financial Group, Inc. sr. unsec. unsub. notes 5.25%, 5/30/25  443,000  445,918 

Credit Acceptance Corp. company guaranty sr. unsec. notes     
6.125%, 2/15/21  372,000  377,580 

DFC Finance Corp. 144A company guaranty sr. notes     
10.50%, 6/15/20  273,000  136,500 

Dresdner Funding Trust I jr. unsec. sub. notes 8.151%, 6/30/31  500,000  578,750 

Dresdner Funding Trust I 144A jr. unsec. sub. notes 8.151%, 6/30/31  379,000  438,693 

E*Trade Financial Corp. sr. unsec. unsub. notes 4.625%, 9/15/23  371,000  380,275 

ESH Hospitality, Inc. 144A company guaranty sr. unsec. notes     
5.25%, 5/1/25 R   360,000  361,350 

Hub Holdings, LLC/Hub Holdings Finance, Inc. 144A sr. unsec. sub.     
notes 8.125%, 7/15/19 ‡‡  161,000  161,805 

HUB International, Ltd. 144A sr. unsec. notes 7.875%, 10/1/21  475,000  497,563 

Icahn Enterprises LP/Icahn Enterprises Finance Corp. company     
guaranty sr. unsec. notes 6.00%, 8/1/20  51,000  52,250 

Icahn Enterprises LP/Icahn Enterprises Finance Corp. company     
guaranty sr. unsec. notes 5.875%, 2/1/22  440,000  440,550 

Icahn Enterprises LP/Icahn Enterprises Finance Corp. 144A sr.     
unsec. notes 6.75%, 2/1/24  210,000  209,265 

Icahn Enterprises LP/Icahn Enterprises Finance Corp. 144A sr.     
unsec. notes 6.25%, 2/1/22  205,000  206,538 

Intelsat Connect Finance SA 144A company guaranty sr. unsec.     
sub. notes 12.50%, 4/1/22 (Luxembourg)  18,000  11,385 

International Lease Finance Corp. sr. unsec. unsub. notes     
5.875%, 8/15/22  20,000  22,100 

iStar, Inc. sr. unsec. notes 5.00%, 7/1/19 R   25,000  25,360 

Liberty Mutual Insurance Co. 144A unsec. sub. notes     
7.697%, 10/15/97  670,000  823,640 

Lloyds Banking Group PLC 144A jr. unsec. sub. FRN 6.657%,     
perpetual maturity (United Kingdom)  320,000  348,000 

Nationstar Mortgage, LLC/Nationstar Capital Corp. company     
guaranty sr. unsec. unsub. notes 7.875%, 10/1/20  47,000  48,880 

Nationstar Mortgage, LLC/Nationstar Capital Corp. company     
guaranty sr. unsec. unsub. notes 6.50%, 7/1/21  499,000  508,356 

OneMain Financial Holdings, LLC 144A company guaranty sr.     
unsec. sub. notes 6.75%, 12/15/19  173,000  179,488 

OneMain Financial Holdings, LLC 144A company guaranty sr.     
unsec. unsub. notes 7.25%, 12/15/21  210,000  214,463 

Provident Funding Associates LP/PFG Finance Corp. 144A     
company guaranty sr. unsec. notes 6.75%, 6/15/21  560,000  567,000 

Royal Bank of Scotland Group PLC jr. unsec. sub. FRB 7.50%,     
perpetual maturity (United Kingdom)  410,000  397,700 

Royal Bank of Scotland Group PLC sr. unsec. unsub. notes 3.875%,     
9/12/23 (United Kingdom)  235,000  228,384 

 

Premier Income Trust 39 

 



    Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.    amount  Value 

Financials cont.       

Russian Agricultural Bank OJSC Via RSHB Capital SA 144A sr.       
unsec. unsub. notes 7.75%, 5/29/18 (Russia)    $550,000  $582,098 

Russian Agricultural Bank OJSC Via RSHB Capital SA 144A sr.       
unsec. unsub. notes 5.298%, 12/27/17 (Russia)    600,000  612,000 

Sberbank of Russia Via SB Capital SA 144A sr. unsec. notes 6.125%,       
2/7/22 (Russia)    500,000  543,750 

Springleaf Finance Corp. company guaranty sr. unsec. unsub.       
notes 8.25%, 12/15/20    130,000  139,588 

Springleaf Finance Corp. sr. unsec. unsub. notes 5.25%, 12/15/19    123,000  123,615 

TMX Finance, LLC/TitleMax Finance Corp. 144A company guaranty       
sr. notes 8.50%, 9/15/18    158,000  144,965 

TRI Pointe Group, Inc./TRI Pointe Homes, Inc. company guaranty       
sr. unsec. unsub. notes 5.875%, 6/15/24    344,000  356,040 

UBS AG/Jersey jr. unsec. sub. FRN Ser. EMTN, 7.152%, perpetual       
maturity (Jersey)  EUR  400,000  453,906 

USI, Inc./NY 144A sr. unsec. notes 7.75%, 1/15/21    $456,000  465,690 

Vnesheconombank Via VEB Finance PLC 144A sr. unsec. unsub.       
notes 6.902%, 7/9/20 (Russia)    150,000  163,125 

Vnesheconombank Via VEB Finance PLC 144A sr. unsec. unsub.       
notes 6.80%, 11/22/25 (Russia)    468,000  513,516 

Vnesheconombank Via VEB Finance PLC 144A sr. unsec. unsub.       
notes 5.942%, 11/21/23 (Russia)    200,000  210,626 

VTB Bank OJSC Via VTB Capital SA 144A sr. unsec. notes 6.875%,       
5/29/18 (Russia)    2,486,000  2,606,248 

VTB Bank OJSC Via VTB Capital SA 144A unsec. sub. bonds 6.95%,       
10/17/22 (Russia)    5,600,000  6,062,000 

VTB Bank PJSC via VTB Eurasia DAC 144A unsec. sub. FRN 9.50%,       
perpetual maturity (Russia)    450,000  505,125 

      25,093,112 

Health care (2.2%)       

Acadia Healthcare Co., Inc. company guaranty sr. unsec. sub. notes       
6.125%, 3/15/21    455,000  467,513 

Acadia Healthcare Co., Inc. company guaranty sr. unsec. sub. notes       
5.125%, 7/1/22    195,000  195,488 

AMAG Pharmaceuticals, Inc. 144A company guaranty sr. unsec.       
notes 7.875%, 9/1/23    442,000  427,635 

Centene Corp. sr. unsec. unsub. notes 6.125%, 2/15/24    395,000  419,688 

Centene Corp. sr. unsec. unsub. notes 5.625%, 2/15/21    125,000  131,225 

Centene Corp. sr. unsec. unsub. notes 4.75%, 1/15/25    94,000  92,766 

Centene Corp. sr. unsec. unsub. notes 4.75%, 5/15/22    305,000  309,575 

CHS/Community Health Systems, Inc. company guaranty sr.       
unsec. notes 6.875%, 2/1/22    594,000  432,135 

Concordia International Corp. 144A company guaranty sr. unsec.       
notes 7.00%, 4/15/23 (Canada)    298,000  109,515 

Concordia International Corp. 144A sr. notes 9.00%,       
4/1/22 (Canada)    65,000  55,250 

DPx Holdings BV 144A sr. unsec. sub. notes 7.50%,       
2/1/22 (Netherlands)    489,000  518,340 

Endo Finance, LLC/Endo Finco, Inc. 144A company guaranty sr.       
unsec. unsub. notes 5.375%, 1/15/23    295,000  247,063 

 

40 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Health care cont.     

Endo Limited/Endo Finance LLC/Endo Finco, Inc. 144A company     
guaranty sr. unsec. notes 6.00%, 2/1/25 (Ireland)  $200,000  $162,750 

Endo Limited/Endo Finance LLC/Endo Finco, Inc. 144A company     
guaranty sr. unsec. unsub. notes 6.00%, 7/15/23 (Ireland)  540,000  460,350 

Halyard Health, Inc. company guaranty sr. unsec. unsub. notes     
6.25%, 10/15/22  323,000  333,498 

HCA, Inc. company guaranty sr. bonds 5.25%, 6/15/26  256,000  266,880 

HCA, Inc. company guaranty sr. notes 6.50%, 2/15/20  809,000  883,833 

HCA, Inc. company guaranty sr. unsec. unsub. notes     
7.50%, 2/15/22  128,000  146,240 

HCA, Inc. company guaranty sr. unsec. unsub. notes     
5.375%, 2/1/25  120,000  122,400 

Jaguar Holding Co. II/Pharmaceutical Product Development, LLC     
144A company guaranty sr. unsec. notes 6.375%, 8/1/23  370,000  392,200 

Kinetic Concepts, Inc./KCI USA, Inc. 144A company guaranty sub.     
notes 12.50%, 11/1/21  175,000  195,125 

Kinetic Concepts, Inc./KCI USA, Inc. 144A notes 9.625%, 10/1/21  224,000  240,128 

Mallinckrodt International Finance SA/Mallinckrodt CB,     
LLC 144A company guaranty sr. unsec. unsub. notes 5.50%,     
4/15/25 (Luxembourg)  329,000  282,940 

Molina Healthcare, Inc. company guaranty sr. unsec. notes     
5.375%, 11/15/22  270,000  278,775 

Omega Healthcare Investors, Inc. company guaranty sr. unsec.     
unsub. notes 4.95%, 4/1/24 R   220,000  223,859 

Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics     
SA 144A sr. unsec. notes 6.625%, 5/15/22  563,000  509,515 

Service Corp. International/US sr. unsec. notes 5.375%, 1/15/22  577,000  600,080 

Service Corp. International/US sr. unsec. unsub. notes     
5.375%, 5/15/24  1,075,000  1,126,063 

Sterigenics-Nordion Holdings, LLC 144A sr. unsec. notes     
6.50%, 5/15/23  220,000  223,300 

Tenet Healthcare Corp. company guaranty sr. bonds     
4.375%, 10/1/21  228,000  229,284 

Tenet Healthcare Corp. company guaranty sr. FRN 4.463%, 6/15/20  390,000  394,875 

Tenet Healthcare Corp. company guaranty sr. notes     
6.25%, 11/1/18  833,000  878,815 

Tenet Healthcare Corp. company guaranty sr. notes 4.75%, 6/1/20  80,000  81,200 

Tenet Healthcare Corp. company guaranty sr. sub. notes     
6.00%, 10/1/20  393,000  414,615 

Valeant Pharmaceuticals International, Inc. 144A company     
guaranty sr. unsec. notes 6.125%, 4/15/25  370,000  277,038 

Valeant Pharmaceuticals International, Inc. 144A company     
guaranty sr. unsec. notes 5.875%, 5/15/23  466,000  354,743 

Valeant Pharmaceuticals International, Inc. 144A company     
guaranty sr. unsec. notes 5.625%, 12/1/21  90,000  71,100 

Valeant Pharmaceuticals International, Inc. 144A company     
guaranty sr. unsec. notes 5.50%, 3/1/23  195,000  147,713 

Valeant Pharmaceuticals International, Inc. 144A company     
guaranty sr. unsec. notes 5.375%, 3/15/20  317,000  272,620 

    12,976,132 

 

Premier Income Trust 41 

 



    Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.    amount  Value 

Technology (1.7%)       

Avaya, Inc. 144A company guaranty notes 10.50%, 3/1/21       
(In default)     $126,000  $34,335 

Avaya, Inc. 144A company guaranty sr. notes 7.00%, 4/1/19       
(In default)     1,085,000  897,838 

Black Knight InfoServ, LLC/Black Knight Lending Solutions, Inc.       
company guaranty sr. unsec. notes 5.75%, 4/15/23    374,000  391,298 

CommScope Technologies Finance, LLC 144A sr. unsec. notes       
6.00%, 6/15/25    583,000  621,262 

Diamond 1 Finance Corp./Diamond 2 Finance Corp. 144A       
company guaranty sr. unsec. notes 7.125%, 6/15/24    1,017,000  1,113,492 

Diamond 1 Finance Corp./Diamond 2 Finance Corp. 144A sr. notes       
5.45%, 6/15/23    440,000  472,632 

First Data Corp. 144A company guaranty sr. unsec. unsub. notes       
7.00%, 12/1/23    450,000  477,225 

First Data Corp. 144A notes 5.75%, 1/15/24    435,000  448,594 

First Data Corp. 144A sr. notes 5.375%, 8/15/23    375,000  386,250 

Inception Merger Sub, Inc./Rackspace Hosting, Inc. 144A sr. unsec.       
notes 8.625%, 11/15/24    425,000  440,938 

Infor Software Parent LLC/Infor Software Parent, Inc. 144A       
company guaranty sr. unsec. notes 7.125%, 5/1/21 ‡‡    717,000  736,718 

Infor US, Inc. company guaranty sr. unsec. notes 6.50%, 5/15/22    503,000  516,204 

Infor US, Inc. 144A company guaranty sr. notes 5.75%, 8/15/20    132,000  137,280 

Iron Mountain, Inc. company guaranty sr. unsec. notes       
6.00%, 8/15/23 R     430,000  455,800 

Micron Technology, Inc. company guaranty sr. unsec. unsub. notes       
5.875%, 2/15/22    433,000  450,047 

Micron Technology, Inc. 144A sr. notes 7.50%, 9/15/23    57,000  63,270 

Solera, LLC /Solera Finance, Inc. 144A sr. unsec. notes       
10.50%, 3/1/24    504,000  573,300 

Techem Energy Metering Service GmbH & Co. KG 144A company       
guaranty sr. unsec. sub. notes 7.875%, 10/1/20 (Germany)  EUR  380,000  426,848 

Trionista TopCo GmbH 144A company guaranty sr. unsec. sub.       
notes 6.875%, 4/30/21 (Germany)  EUR  515,000  583,929 

Zebra Technologies Corp. sr. unsec. unsub. bonds 7.25%, 10/15/22    $532,000  573,230 

      9,800,490 

Transportation (0.2%)       

Air Medical Merger Sub Corp. 144A sr. unsec. notes 6.375%, 5/15/23    475,000  454,813 

Watco Cos., LLC/Watco Finance Corp. 144A company guaranty sr.       
unsec. notes 6.375%, 4/1/23    802,000  840,095 

      1,294,908 

Utilities and power (1.4%)       

AES Corp./Virginia (The) sr. unsec. notes 5.50%, 4/15/25    965,000  979,475 

AES Corp./Virginia (The) sr. unsec. notes 4.875%, 5/15/23    160,000  159,200 

AES Corp./Virginia (The) sr. unsec. unsub. notes 7.375%, 7/1/21    310,000  350,300 

Boardwalk Pipelines LP company guaranty sr. unsec. unsub.       
bonds 5.95%, 6/1/26    135,000  149,646 

Calpine Corp. sr. unsec. sub. notes 5.75%, 1/15/25    790,000  772,225 

Calpine Corp. 144A company guaranty sr. notes 6.00%, 1/15/22    110,000  114,950 

Calpine Corp. 144A company guaranty sr. sub. notes       
5.875%, 1/15/24    85,000  89,038 

 

42 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (32.2%)* cont.  amount  Value 

Utilities and power cont.     

Colorado Interstate Gas Co., LLC company guaranty sr. unsec.     
notes 6.85%, 6/15/37  $615,000  $646,089 

Dynegy, Inc. company guaranty sr. unsec. notes 7.375%, 11/1/22  40,000  39,500 

Dynegy, Inc. company guaranty sr. unsec. notes 6.75%, 11/1/19  783,000  803,554 

Dynegy, Inc. company guaranty sr. unsec. unsub. notes     
7.625%, 11/1/24  380,000  361,950 

El Paso Natural Gas Co., LLC company guaranty sr. unsec. notes     
8.625%, 1/15/22  577,000  708,766 

Energy Transfer Equity LP company guaranty sr. notes     
7.50%, 10/15/20  416,000  466,960 

Energy Transfer Equity LP sr. sub. notes 5.875%, 1/15/24  190,000  202,825 

GenOn Energy, Inc. sr. unsec. sub. notes 9.875%, 10/15/20  329,000  243,460 

Hiland Partners Holdings, LLC/Hiland Partners Finance Corp. 144A     
company guaranty sr. unsec. sub. notes 5.50%, 5/15/22  100,000  104,500 

NRG Energy, Inc. company guaranty sr. unsec. sub. notes     
7.875%, 5/15/21  319,000  330,963 

NRG Energy, Inc. 144A company guaranty sr. unsec. bonds     
6.625%, 1/15/27  393,000  390,053 

NRG Energy, Inc. 144A company guaranty sr. unsec. notes     
7.25%, 5/15/26  272,000  284,580 

Regency Energy Partners LP/Regency Energy Finance Corp.     
company guaranty sr. unsec. notes 5.00%, 10/1/22  195,000  209,815 

Regency Energy Partners LP/Regency Energy Finance Corp.     
company guaranty sr. unsec. unsub. notes 5.875%, 3/1/22  396,000  438,425 

Regency Energy Partners LP/Regency Energy Finance Corp.     
company guaranty sr. unsec. unsub. notes 5.50%, 4/15/23  280,000  291,323 

Southern Star Central Corp. 144A sr. unsec. notes 5.125%, 7/15/22  457,000  466,140 

Texas Competitive Electric Holdings Co., LLC/TCEH Finance, Inc.     
escrow company guaranty sr. notes 11.50%, 10/1/20  205,000  513 

    8,604,250 

Total corporate bonds and notes (cost $190,688,955)    $192,645,455 

 

FOREIGN GOVERNMENT AND AGENCY  Principal amount/   
BONDS AND NOTES (7.4%)*  units  Value 

Argentina (Republic of) 144A sr. unsec. bonds 7.125%,     
7/6/36 (Argentina)  $3,012,000  $2,829,632 

Argentina (Republic of) 144A sr. unsec. unsub. bonds 6.625%,     
7/6/28 (Argentina)  460,000  442,060 

Argentina (Republic of) 144A sr. unsec. unsub. notes 6.875%,     
1/26/27 (Argentina)  3,493,000  3,469,028 

Brazil (Federal Republic of) sr. unsec. unsub. notes 6.00%,     
4/7/26 (Brazil)  2,020,000  2,164,430 

Buenos Aires (Province of) 144A sr. unsec. notes 9.125%,     
3/16/24 (Argentina)  2,688,000  2,928,796 

Buenos Aires (Province of) 144A sr. unsec. unsub. notes 10.875%,     
1/26/21 (Argentina)  100,000  114,000 

Cordoba (Province of) 144A sr. unsec. unsub. notes 7.125%,     
6/10/21 (Argentina)  2,408,000  2,468,200 

Costa Rica (Republic of) 144A sr. unsec. unsub. notes 7.00%, 4/4/44     
(Costa Rica)  250,000  240,625 

 

Premier Income Trust 43 

 



FOREIGN GOVERNMENT AND AGENCY    Principal amount/   
BONDS AND NOTES (7.4%)* cont.    units  Value 

Croatia (Republic of) 144A sr. unsec. unsub. notes 6.375%,       
3/24/21 (Croatia)    $620,000  $678,125 

Croatia (Republic of) 144A sr. unsec. unsub. notes 6.25%,       
4/27/17 (Croatia)    65,000  65,646 

Croatia (Republic of) 144A sr. unsec. unsub. notes 6.00%,       
1/26/24 (Croatia)    375,000  410,625 

Dominican (Republic of) 144A sr. unsec. unsub. bonds 5.50%,       
1/27/25 (Dominican Republic)    1,650,000  1,639,688 

Egypt (Government of) 144A sr. unsec. notes 6.125%,       
1/31/22 (Egypt)    500,000  500,771 

Egypt (Government of) 144A sr. unsec. notes 5.875%,       
6/11/25 (Egypt)    437,000  402,324 

Hellenic (Republic of) sr. unsec. notes 3.375%, 7/17/17 (Greece)  EUR  2,371,000  2,452,609 

Hellenic (Republic of) sr. unsec. unsub. bonds 4.75%,       
4/17/19 (Greece)  EUR  910,000  903,187 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI, 3.00%,       
2/24/40 (Greece)  EUR  61,000  38,067 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/38 (Greece) ††  EUR  141,000  88,493 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/36 (Greece) ††  EUR  968,000  620,662 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/33 (Greece) ††  EUR  141,000  94,752 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/32 (Greece) ††  EUR  688,000  470,498 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/30 (Greece) ††  EUR  3,290,211  2,333,876 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/29 (Greece) ††  EUR  3,109,295  2,260,088 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/28 (Greece) ††  EUR  4,305,435  3,215,429 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/27 (Greece) ††  EUR  151,000  117,551 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/26 (Greece) ††  EUR  2,082,000  1,661,411 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/25 (Greece) ††  EUR  44,000  35,580 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/24 (Greece) ††  EUR  459,500  378,268 

Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/23 (Greece) ††  EUR  2,141,865  1,804,720 

Indonesia (Republic of) 144A sr. unsec. notes 4.75%,       
1/8/26 (Indonesia)    $300,000  313,875 

Indonesia (Republic of) 144A sr. unsec. unsub. bonds 6.625%,       
2/17/37 (Indonesia)    1,555,000  1,838,788 

Indonesia (Republic of) 144A sr. unsec. unsub. notes 5.95%,       
1/8/46 (Indonesia)    200,000  225,250 

Indonesia (Republic of) 144A sr. unsec. unsub. notes 3.375%,       
4/15/23 (Indonesia)    1,355,000  1,332,981 

Mexico (Republic of) sr. unsec. notes 5.75%, 10/12/10 (Mexico)    1,030,000  956,708 

Russia (Federation of) 144A sr. unsec. notes 4.50%, 4/4/22 (Russia)    465,000  485,400 

 

44 Premier Income Trust 

 



FOREIGN GOVERNMENT AND AGENCY  Principal amount/   
BONDS AND NOTES (7.4%)* cont.  units  Value 

Russia (Federation of) 144A sr. unsec. unsub. bonds 12.75%,     
6/24/28 (Russia)  $1,281,000  $2,196,915 

Russia (Federation of) 144A sr. unsec. unsub. bonds 5.625%,     
4/4/42 (Russia)  1,400,000  1,515,500 

Ukraine (Government of) 144A unsec. FRN Ser. GDP, zero %,     
5/31/40 (Ukraine)  648,000  191,387 

Ukraine (Government of) 144A unsec. notes 7.75%,     
9/1/27 (Ukraine)  316,000  291,137 

Venezuela (Bolivarian Republic of) sr. unsec. bonds 7.00%,     
3/31/38 (Venezuela)  650,000  293,313 

Total foreign government and agency bonds and notes (cost $46,214,985)  $44,470,395 

 

  Principal   
SENIOR LOANS (2.0%)*c  amount  Value 

Academy, Ltd. bank term loan FRN Ser. B, 5.00%, 7/2/22  $534,868  $470,149 

Asurion, LLC bank term loan FRN 8.50%, 3/3/21  329,000  332,701 

Avaya, Inc. bank term loan FRN Ser. B6, 6.50%, 3/31/18 (In default)   319,198  266,530 

Avaya, Inc. bank term loan FRN Ser. B7, 6.25%, 5/29/20 (In default)   506,468  422,901 

Caesars Entertainment Operating Co., Inc. bank term loan FRN     
Ser. B6, 11.50%, 3/1/17 (In default)   1,152,549  1,300,459 

Caesars Growth Properties Holdings, LLC bank term loan FRN     
6.25%, 5/8/21  878,495  885,084 

Casella Waste Systems, Inc. bank term loan FRN Ser. B,     
4.00%, 10/17/23  975,000  984,750 

Chesapeake Energy Corp. bank term loan FRN 8.50%, 8/23/21  630,000  687,488 

Cortes NP Intermediate Holding II Corp. bank term loan FRN Ser. B,     
6.00%, 11/30/23  175,000  176,914 

CPG International, Inc. bank term loan FRN Ser. B, 4.75%, 9/30/20  81,336  81,895 

DPx Holdings BV bank term loan FRN Ser. B, 4.25%, 3/11/21  277,875  279,496 

Gates Global, LLC/Gates Global Co. bank term loan FRN     
4.25%, 7/6/21  241,382  240,665 

Getty Images, Inc. bank term loan FRN Ser. B, 4.75%, 10/18/19  484,732  417,627 

iHeartCommunications, Inc. bank term loan FRN Ser. D,     
7.52%, 1/30/19  743,000  621,148 

Inception Merger Sub, Inc. bank term loan FRN Ser. B,     
4.50%, 10/26/23  124,000  125,124 

Jeld-Wen, Inc. bank term loan FRN Ser. B, 4.75%, 7/1/22  598,922  603,714 

Kraton Polymers, LLC/Kraton Polymers Capital Corp. bank term     
loan FRN Ser. B, 5.00%, 1/6/22  330,000  333,630 

Krono’s, Inc. bank term loan FRN 9.25%, 11/1/24  220,000  226,772 

Krono’s, Inc. bank term loan FRN 5.00%, 11/1/23  352,000  355,280 

MEG Energy Corp. bank term loan FRN 4.50%, 12/31/23 (Canada)  140,000  140,438 

Navistar, Inc. bank term loan FRN Ser. B, 6.50%, 8/7/20  371,250  375,891 

Neiman Marcus Group, Ltd., Inc. bank term loan FRN     
4.25%, 10/25/20  388,095  321,472 

Ortho-Clinical Diagnostics, Inc. bank term loan FRN Ser. B,     
4.75%, 6/30/21  180,375  178,881 

Revlon Consumer Products Corp. bank term loan FRN Ser. B,     
4.308%, 9/7/23  413,963  417,208 

Reynolds Group Holdings, Inc. bank term loan FRN 4.25%, 2/5/23  324,188  324,931 

Reynolds Group Holdings, Inc. bank term loan FRN 3.00%, 2/5/23  324,188  325,268 

Solenis International LP bank term loan FRN 7.75%, 7/31/22  84,000  82,824 

 

Premier Income Trust 45 

 



  Principal   
SENIOR LOANS (2.0%)*c cont.  amount  Value 

Solenis International LP bank term loan FRN 4.25%, 7/31/21  $384,576  $385,177 

Talbots, Inc. (The) bank term loan FRN 9.50%, 3/19/21  134,913  116,362 

Talbots, Inc. (The) bank term loan FRN 5.50%, 3/19/20  265,160  238,644 

Valeant Pharmaceuticals International, Inc. bank term loan FRN     
Ser. E, 5.25%, 8/5/20  229,829  230,034 

Total senior loans (cost $12,168,027)    $11,949,457 

 

COMMON STOCKS (0.5%)*  Shares  Value 

Brazil Notas do Tesouro Nacional Serie F (Units) (Brazil)  6,750  $2,086,422 

Halcon Resources Corp.   24,782  209,160 

Milagro Oil & Gas, Inc. (Units) F   169  13,689 

SandRidge Energy, Inc.   3,641  74,677 

Seventy Seven Energy, Inc.   71  3,376 

Tervita Corp. Class A (Canada)  449  3,537 

Texas Competitive Electric Holdings Co., Inc. (Rights) F   21,073  27,395 

Tribune Media Co. Class 1C F   92,963  23,241 

Vistra Energy Corp.  21,072  341,577 

Total common stocks (cost $2,939,317)    $2,783,074 

 

PURCHASED SWAP OPTIONS OUTSTANDING (0.4%)*     
Counterparty       
Fixed right % to receive or (pay)/  Expiration  Contract   
Floating rate index/Maturity date  date/strike  amount  Value 

Bank of America N.A.       
2.3125/3 month USD-LIBOR-BBA/Apr-27  Apr-17/2.3125  $54,302,600  $539,767 

1.495/3 month USD-LIBOR-BBA/Jul-18  Jul-17/1.495  81,453,900  105,890 

(1.495)/3 month USD-LIBOR-BBA/Jul-18  Jul-17/1.495  81,453,900  86,341 

Barclays Bank PLC       
1.345/3 month USD-LIBOR-BBA/Feb-18  Feb-17/1.345  81,453,900  62,720 

Citibank, N.A.       
2.274/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.274  40,727,000  168,203 

2.275/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.275  40,727,000  120,145 

1.34/3 month USD-LIBOR-BBA/Apr-18  Apr-17/1.34  81,453,900  52,945 

(1.34)/3 month USD-LIBOR-BBA/Apr-18  Apr-17/1.34  81,453,900  48,058 

Credit Suisse International       
2.31/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.31  40,727,000  217,075 

2.4625/3 month USD-LIBOR-BBA/Feb-37  Feb-17/2.4625  27,151,300  99,374 

Goldman Sachs International       
1.86375/3 month USD-LIBOR-BBA/Apr-18  Apr-17/1.86375  81,453,900  121,366 

2.248/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.248  40,727,000  83,490 

JPMorgan Chase Bank N.A.       
2.3525/3 month USD-LIBOR-BBA/Apr-27  Apr-17/2.3525  27,151,300  314,141 

2.267/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.267  27,151,300  93,400 

2.736/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.736  27,151,300  37,740 

Total purchased swap options outstanding (cost $3,740,256)    $2,150,655 

 

46 Premier Income Trust 

 



  Expiration     
PURCHASED OPTIONS  date/strike  Contract   
OUTSTANDING (0.3%)*  price  amount  Value 

Federal National Mortgage Association 30 yr 2.50% TBA       
commitments (Call)  Feb-17/$95.22  $31,000,000  $39,680 

Federal National Mortgage Association 30 yr 3.00% TBA       
commitments (Call)  Apr-17/98.34  32,000,000  356,160 

Federal National Mortgage Association 30 yr 3.00% TBA       
commitments (Call)  Apr-17/98.53  32,000,000  322,560 

Federal National Mortgage Association 30 yr 3.00% TBA       
commitments (Call)  Feb-17/99.45  142,000,000  247,080 

USD/JPY (Call)  May-17/JPY 118.00  11,667,800  119,595 

USD/MXN (Put)  Apr-17/MXN 21.25  23,759,700  853,733 

Total purchased options outstanding (cost $2,719,646)      $1,938,808 

 

PREFERRED STOCKS (0.1%)*  Shares  Value 

GMAC Capital Trust I Ser. 2, $2.031 cum. ARP  16,265  $418,011 

Total preferred stocks (cost $412,195)    $418,011 

 

  Principal   
CONVERTIBLE BONDS AND NOTES (—%)*  amount  Value 

SandRidge Energy, Inc. cv. company guaranty sr. unsec. sub. notes     
zero %, 10/4/20  $85,843  $93,891 

Total convertible bonds and notes (cost $88,991)    $93,891 

 

  Expiration  Strike     
WARRANTS (—%)*  date  price  Warrants  Value 

Halcon Resources Corp.  9/9/20  $14.04  6,732  $15,012 

Seventy Seven Energy, Inc.  8/1/21  23.82  388  8,924 

Total warrants (cost $1,552)        $23,936 

 

  Principal amount/   
SHORT-TERM INVESTMENTS (10.0%)*    shares  Value 

Putnam Short Term Investment Fund 0.74%   Shares   32,999,798  $32,999,798 

State Street Institutional U.S. Government Money Market Fund,       
Premier Class 0.47% P   Shares   483,000  483,000 

U.S. Treasury Bills 0.472%, 2/23/17 ∆ §    $8,444,000  8,441,585 

U.S. Treasury Bills 0.442%, 2/16/17 ∆ §    6,399,000  6,397,797 

U.S. Treasury Bills 0.445%, 2/9/17 ∆ §    9,034,000  9,033,051 

U.S. Treasury Bills 0.432%, 2/2/17     2,238,000  2,237,971 

U.S. Treasury Bills zero% 02/09/17 i     222,000  221,978 

Total short-term investments (cost $59,815,308)      $59,815,180 

 
TOTAL INVESTMENTS       

Total investments (cost $967,850,017)      $961,341,634 

 

Key to holding’s currency abbreviations

 

AUD  Australian Dollar 
CAD  Canadian Dollar 
CHF  Swiss Franc 
EUR  Euro 
GBP  British Pound 
JPY  Japanese Yen 

 

Premier Income Trust 47 

 



MXN  Mexican Peso 
NOK  Norwegian Krone 
NZD  New Zealand Dollar 
SEK  Swedish Krona 
ZAR  South African Rand 

 

Key to holding’s abbreviations

 

ARP  Adjustable Rate Preferred Stock: the rate shown is the current interest rate at the close of the reporting period 
bp  Basis Points 
EMTN  Euro Medium Term Notes 
FRB  Floating Rate Bonds: the rate shown is the current interest rate at the close of the reporting period 
FRN  Floating Rate Notes: the rate shown is the current interest rate or yield at the close of the reporting period 
IFB  Inverse Floating Rate Bonds, which are securities that pay interest rates that vary inversely to changes in the market interest rates. As interest rates rise, inverse floaters produce less current income. The rate shown is 
  the current interest rate at the close of the reporting period. 
IO  Interest Only 
OAO  Open Joint Stock Company 
OJSC  Open Joint Stock Company 
PJSC  Public Joint Stock Company 
PO  Principal Only 
REGS  Securities sold under Regulation S may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 
  Securities Act of 1933. 
TBA  To Be Announced Commitments 

 

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 August 1, 2016 through January 31, 2017 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to “OTC”, if any, represent over-the-counter.

* Percentages indicated are based on net assets of $598,127,906.

This security is non-income-producing.

†† 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.

‡‡ Income may be received in cash or additional securities at the discretion of the issuer.

This security, in part or in entirety, was pledged and segregated with the custodian for collateral on certain derivative contracts at the close of the reporting period.

§ This security, in part or in entirety, was pledged and segregated with the custodian for collateral on the initial margin on certain centrally cleared derivative contracts at the close of the reporting period.

c Senior loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for senior loans are the current interest rates at the close of the reporting period. Senior loans are also subject to mandatory and/or optional prepayment which cannot be predicted. As a result, the remaining maturity may be substantially less than the stated maturity shown (Notes 1 and 7).

F This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities may be classified as Level 2 or Level 3 for ASC 820 based on the securities’ valuation inputs (Note 1).

i This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts (Note 1).

48 Premier Income Trust 

 



L Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period.

P This security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivative contracts. The rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period (Note 1).

R Real Estate Investment Trust.

At the close of the reporting period, the fund maintained liquid assets totaling $313,621,301 to cover certain derivative contracts and delayed delivery securities.

Unless otherwise noted, the rates quoted in Short-term investments security descriptions represent the weighted average yield to maturity.

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.

See Note 1 to the financial statements regarding TBA commitments.

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  88.7%  Mexico  1.0% 


Russia  1.8  Indonesia  0.5 


Greece  1.7  Luxembourg  0.5 


Brazil  1.3  Other  2.2 


Argentina  1.3  Total  100.0% 

Canada  1.0     

 

FORWARD CURRENCY CONTRACTS at 1/31/17 (aggregate face value $343,711,296) (Unaudited) 

            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type  date  Value  face value  (depreciation) 

Bank of America N.A.           

  Australian Dollar  Buy  4/19/17  $3,362,110  $3,220,686  $141,424 

  Brazilian Real  Buy  4/3/17  2,986,940  2,943,350  43,590 

  British Pound  Buy  3/16/17  558,432  528,390  30,042 

  Canadian Dollar  Buy  4/19/17  3,727,268  3,609,469  117,799 

  Chinese Yuan (Offshore)  Buy  2/16/17  6,112,499  6,024,021  88,478 

  Chinese Yuan (Offshore)  Sell  2/16/17  6,112,499  6,033,439  (79,060) 

  Euro  Buy  3/16/17  3,105,731  3,036,416  69,315 

  Hong Kong Dollar  Sell  2/16/17  3,690,415  3,694,319  3,904 

  Japanese Yen  Buy  2/16/17  6,133,575  5,993,214  140,361 

  Japanese Yen  Sell  2/16/17  6,133,575  6,223,211  89,636 

  Japanese Yen  Buy  5/17/17  3,114,935  3,091,583  23,352 

  New Zealand Dollar  Sell  4/19/17  1,473,822  1,391,783  (82,039) 

  Norwegian Krone  Sell  3/16/17  3,176,336  3,145,408  (30,928) 

  Russian Ruble  Buy  3/16/17  2,899,921  2,934,350  (34,429) 

  Singapore Dollar  Sell  5/17/17  6,045,465  5,984,484  (60,981) 

  Swedish Krona  Buy  3/16/17  3,084,446  2,989,398  95,048 

 

Premier Income Trust 49 

 



FORWARD CURRENCY CONTRACTS at 1/31/17 (aggregate face value $343,711,296) (Unaudited) cont. 

            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type  date  Value  face value  (depreciation) 

Barclays Bank PLC           

  Australian Dollar  Sell  4/19/17  $1,219,977  $1,165,972  $(54,005) 

  British Pound  Sell  3/16/17  2,236,497  2,257,171  20,674 

  Canadian Dollar  Buy  4/19/17  1,487,231  1,439,975  47,256 

  Euro  Sell  3/16/17  2,320,592  2,204,833  (115,759) 

  Hong Kong Dollar  Buy  2/16/17  730,864  731,002  (138) 

  Hong Kong Dollar  Sell  2/16/17  730,864  730,823  (41) 

  Japanese Yen  Buy  2/16/17  416,750  413,938  2,812 

  Japanese Yen  Sell  2/16/17  416,750  450,178  33,428 

  Japanese Yen  Sell  5/17/17  418,450  415,690  (2,760) 

  New Zealand Dollar  Sell  4/19/17  1,554,929  1,446,982  (107,947) 

  Swedish Krona  Buy  3/16/17  3,071,238  2,932,715  138,523 

  Swiss Franc  Buy  3/16/17  18,942  18,671  271 

Citibank, N.A.             

  Australian Dollar  Buy  4/19/17  3,874,249  3,719,917  154,332 

  Brazilian Real  Sell  4/3/17  2,037,274  1,882,742  (154,532) 

  British Pound  Sell  3/16/17  814,290  820,035  5,745 

  Canadian Dollar  Buy  4/19/17  3,135,899  3,036,089  99,810 

  Chinese Yuan (Offshore)  Buy  2/16/17  3,003,762  2,949,361  54,401 

  Chinese Yuan (Offshore)  Sell  2/16/17  3,003,762  2,981,240  (22,522) 

  Euro  Sell  3/16/17  5,315,581  5,172,476  (143,105) 

  Indonesian Rupiah  Buy  5/17/17  2,928,534  2,930,395  (1,861) 

  Japanese Yen  Buy  2/16/17  3,047,466  3,010,954  36,512 

  Japanese Yen  Sell  2/16/17  3,047,466  3,038,846  (8,620) 

  Japanese Yen  Buy  5/17/17  125,593  124,808  785 

  Mexican Peso  Buy  4/19/17  843,937  846,338  (2,401) 

  New Zealand Dollar  Sell  4/19/17  2,699,275  2,547,594  (151,681) 

  South African Rand  Buy  4/19/17  2,981,962  2,968,355  13,607 

Credit Suisse International           

  Canadian Dollar  Sell  4/19/17  29,918  28,964  (954) 

  Hong Kong Dollar  Sell  2/16/17  2,235,763  2,238,285  2,522 

  New Zealand Dollar  Sell  4/19/17  3,062,716  2,999,054  (63,662) 

  Swedish Krona  Buy  3/16/17  3,116,810  2,976,251  140,559 

Goldman Sachs International           

  Australian Dollar  Buy  4/19/17  1,850,670  1,819,575  31,095 

  Canadian Dollar  Buy  4/19/17  5,500,609  5,367,997  132,612 

  Euro  Sell  3/16/17  3,016,402  2,890,121  (126,281) 

  Indian Rupee  Buy  5/17/17  2,955,747  2,981,224  (25,477) 

  Japanese Yen  Buy  2/16/17  6,089,126  5,945,776  143,350 

  Japanese Yen  Sell  2/16/17  6,089,126  6,286,350  197,224 

  Japanese Yen  Sell  5/17/17  2,996,059  2,975,831  (20,228) 

  New Taiwan Dollar  Buy  2/16/17  3,048,738  3,011,376  37,362 

  New Taiwan Dollar  Sell  2/16/17  3,048,738  3,001,952  (46,786) 

  New Zealand Dollar  Sell  4/19/17  7,695,074  7,405,239  (289,835) 

  Norwegian Krone  Sell  3/16/17  549,203  636,330  87,127 

 

50 Premier Income Trust 

 



FORWARD CURRENCY CONTRACTS at 1/31/17 (aggregate face value $343,711,296) (Unaudited) cont. 

            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type  date  Value  face value  (depreciation) 

Goldman Sachs International cont.           

  Russian Ruble  Buy  3/16/17  $6,098,055  $5,905,550  $192,505 

  Russian Ruble  Sell  3/16/17  5,876,425  5,925,200  48,775 

  South Korean Won  Buy  2/16/17  3,050,205  2,998,962  51,243 

  South Korean Won  Sell  2/16/17  3,050,205  3,029,178  (21,027) 

  South Korean Won  Sell  5/17/17  3,054,118  3,012,455  (41,663) 

  Swedish Krona  Buy  3/16/17  3,052,966  2,966,689  86,277 

HSBC Bank USA, National Association           

  Australian Dollar  Buy  4/19/17  124,307  119,037  5,270 

  Canadian Dollar  Buy  4/19/17  3,013,149  2,917,300  95,849 

  Canadian Dollar  Sell  4/19/17  2,999,074  2,938,962  (60,112) 

  Euro  Sell  3/16/17  1,539,888  1,514,696  (25,192) 

  Hong Kong Dollar  Sell  2/16/17  2,955,735  2,959,101  3,366 

JPMorgan Chase Bank N.A.           

  Australian Dollar  Buy  4/19/17  6,683,566  6,447,491  236,075 

  Brazilian Real  Buy  4/3/17  2,981,316  2,908,260  73,056 

  British Pound  Sell  3/16/17  540,300  544,811  4,511 

  Canadian Dollar  Sell  4/19/17  973,926  976,462  2,536 

  Chinese Yuan (Offshore)  Buy  2/16/17  3,003,762  2,952,329  51,433 

  Chinese Yuan (Offshore)  Sell  2/16/17  3,003,762  2,947,385  (56,377) 

  Czech Koruna  Buy  7/19/17  3,063,859  3,042,779  21,080 

  Euro  Sell  3/16/17  4,093,641  4,084,148  (9,493) 

  Euro  Sell  7/19/17  3,043,042  3,018,037  (25,005) 

  Hong Kong Dollar  Sell  2/16/17  3,023,668  3,027,107  3,439 

  Indonesian Rupiah  Buy  5/17/17  2,930,100  2,925,084  5,016 

  Indonesian Rupiah  Sell  5/17/17  2,934,705  2,919,354  (15,351) 

  Japanese Yen  Buy  2/16/17  3,092,651  3,063,216  29,435 

  Japanese Yen  Sell  2/16/17  3,092,651  3,243,048  150,397 

  Japanese Yen  Sell  5/17/17  133,272  132,417  (855) 

  New Taiwan Dollar  Buy  2/16/17  3,048,741  3,008,534  40,207 

  New Taiwan Dollar  Sell  2/16/17  3,048,741  2,984,358  (64,383) 

  New Zealand Dollar  Sell  4/19/17  4,189,274  3,958,284  (230,990) 

  Norwegian Krone  Buy  3/16/17  1,023,707  977,663  46,044 

  South Korean Won  Sell  2/16/17  2,706,557  2,700,492  (6,065) 

  South Korean Won  Sell  5/17/17  3,055,555  3,018,649  (36,906) 

  Swedish Krona  Buy  3/16/17  2,396,640  2,267,123  129,517 

  Swiss Franc  Buy  3/16/17  151,030  146,775  4,255 

Royal Bank of Scotland PLC (The)           

  Australian Dollar  Buy  4/19/17  2,904,779  2,781,249  123,530 

  British Pound  Sell  3/16/17  2,021,435  2,045,255  23,820 

  Canadian Dollar  Buy  4/19/17  2,131,054  2,110,538  20,516 

  Czech Koruna  Buy  7/19/17  3,063,859  3,041,527  22,332 

  Euro  Sell  3/16/17  3,717,511  3,623,433  (94,078) 

  Euro  Sell  7/19/17  3,044,130  3,012,800  (31,330) 

  New Zealand Dollar  Buy  4/19/17  1,559,979  1,492,151  67,828 

 

Premier Income Trust 51 

 



FORWARD CURRENCY CONTRACTS at 1/31/17 (aggregate face value $343,711,296) (Unaudited) cont. 

            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type  date  Value  face value  (depreciation) 

Royal Bank of Scotland PLC (The) cont.           

  New Zealand Dollar  Sell  4/19/17  $6,016,875  $5,677,758  $(339,117) 

  Norwegian Krone  Buy  3/16/17  3,013,951  2,975,213  38,738 

  Swedish Krona  Buy  3/16/17  3,097,300  2,943,815  153,485 

  Swedish Krona  Sell  3/16/17  3,075,969  3,020,934  (55,035) 

State Street Bank and Trust Co.           

  Australian Dollar  Buy  4/19/17  1,961,123  1,925,191  35,932 

  British Pound  Sell  3/16/17  1,516,517  1,527,983  11,466 

  Canadian Dollar  Buy  4/19/17  3,103,904  3,005,873  98,031 

  Euro  Sell  3/16/17  7,048,184  6,923,961  (124,223) 

  Japanese Yen  Buy  2/16/17  2,730,628  2,843,223  (112,595) 

  Japanese Yen  Sell  2/16/17  2,730,628  2,936,099  205,471 

  Japanese Yen  Buy  5/17/17  163,733  162,678  1,055 

  New Zealand Dollar  Sell  4/19/17  2,827,961  2,668,231  (159,730) 

  Singapore Dollar  Sell  5/17/17  3,025,785  2,981,757  (44,028) 

  Swedish Krona  Buy  3/16/17  3,263,183  3,030,771  232,412 

UBS AG             

  Australian Dollar  Buy  4/19/17  3,006,601  2,994,531  12,070 

  British Pound  Sell  3/16/17  2,246,948  2,262,389  15,441 

  Euro  Sell  3/16/17  6,828,540  6,651,343  (177,197) 

  New Zealand Dollar  Sell  4/19/17  2,896,770  2,733,070  (163,700) 

  Norwegian Krone  Buy  3/16/17  3,045,921  2,959,505  86,416 

  Swedish Krona  Buy  3/16/17  3,030,649  3,001,157  29,492 

WestPac Banking Corp.           

  Australian Dollar  Buy  4/19/17  2,139,937  2,161,310  (21,373) 

  Canadian Dollar  Sell  4/19/17  20,766  20,102  (664) 

  Euro  Sell  3/16/17  3,005,587  2,971,567  (34,020) 

Total            $1,104,736 

 

WRITTEN SWAP OPTIONS OUTSTANDING at 1/31/17 (premiums $7,624,601) (Unaudited)   

Counterparty       
Fixed Obligation % to receive or (pay)/  Expiration  Contract   
Floating rate index/Maturity date  date/strike  amount  Value 

Bank of America N.A.       

2.082/3 month USD-LIBOR-BBA/Jul-20  Jul-17/2.082  $27,151,300  $85,527 

(1.728)/3 month USD-LIBOR-BBA/Jul-20  Jul-17/1.728  27,151,300  96,659 

(2.6475)/3 month USD-LIBOR-BBA/Apr-22  Apr-17/2.6475  54,302,600  250,335 

(2.01)/3 month USD-LIBOR-BBA/Apr-22  Apr-17/2.01  54,302,600  332,874 

Barclays Bank PLC       

(2.111)/3 month USD-LIBOR-BBA/Feb-18  Feb-17/2.111  81,453,900  65,978 

Citibank, N.A.       

2.7415/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.7415  40,727,000  17,105 

2.575/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.575  40,727,000  33,803 

1.942/3 month USD-LIBOR-BBA/Apr-20  Apr-17/1.942  27,151,300  40,184 

(1.652)/3 month USD-LIBOR-BBA/Apr-20  Apr-17/1.652  27,151,300  46,700 

 

52 Premier Income Trust 

 



WRITTEN SWAP OPTIONS OUTSTANDING at 1/31/17 (premiums $7,624,601) (Unaudited) cont.   

Counterparty       
Fixed Obligation % to receive or (pay)/  Expiration  Contract   
Floating rate index/Maturity date  date/strike  amount  Value 

Credit Suisse International       

2.80/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.80  $40,727,000  $9,774 

(2.7275)/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.7275  27,151,300  31,767 

(2.25)/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.25  27,151,300  76,838 

(2.215)/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.215  40,727,000  106,705 

Goldman Sachs International       

2.548/3 month USD-LIBOR-BBA/Feb-27  Feb-17/2.548  40,727,000  38,691 

(1.63875)/3 month USD-LIBOR-BBA/Apr-18  Apr-17/1.63875  81,453,900  42,356 

(1.75125)/3 month USD-LIBOR-BBA/Apr-18  Apr-17/1.75125  81,453,900  75,752 

JPMorgan Chase Bank N.A.       

(2.476)/3 month USD-LIBOR-BBA/Feb-37  Feb-17/2.476  27,151,300  120,552 

(2.69)/3 month USD-LIBOR-BBA/Apr-22  Apr-17/2.69  27,151,300  144,988 

(2.05)/3 month USD-LIBOR-BBA/Apr-22  Apr-17/2.05  27,151,300  193,046 

(6.00 Floor)/3 month USD-LIBOR-BBA/Mar-18  Mar-18/6.00  26,070,000  1,571,500 

Total      $3,381,134 

 

WRITTEN OPTIONS OUTSTANDING at 1/31/17 (premiums $2,177,040) (Unaudited)   

  Expiration  Contract   
  date/strike price  amount  Value 

Federal National Mortgage Association 30 yr 2.50%       
TBA commitments (Put)  Feb-17/$95.22  $31,000,000  $177,630 

Federal National Mortgage Association 30 yr 3.00%       
TBA commitments (Call)  Apr-17/99.08  32,000,000  235,520 

Federal National Mortgage Association 30 yr 3.00%       
TBA commitments (Call)  Apr-17/99.27  32,000,000  209,280 

Federal National Mortgage Association 30 yr 3.00%       
TBA commitments (Call)  Apr-17/99.81  32,000,000  144,000 

Federal National Mortgage Association 30 yr 3.00%       
TBA commitments (Call)  Apr-17/100.00  32,000,000  125,440 

Federal National Mortgage Association 30 yr 3.00%       
TBA commitments (Put)  Feb-17/99.45  142,000,000  901,700 

USD/JPY (Call)  May-17/JPY 125.00  11,667,800  27,303 

USD/MXN (Put)  Apr-17/MXN 20.35  23,759,700  382,982 

Total      $2,203,855 

 

FORWARD PREMIUM SWAP OPTION CONTRACTS OUTSTANDING at 1/31/17 (Unaudited)   

Counterparty         
Fixed right or obligation % to      Premium  Unrealized 
receive or (pay)/ Floating rate  Expiration  Contract  receivable/  appreciation/ 
index/Maturity date  date/strike  amount  (payable)  (depreciation) 

Bank of America N.A.         

2.5925/3 month USD-LIBOR-BBA/         
Jan-27 (Purchased)  Jan-19/2.5925  $8,145,400  $(287,125)  $(5,132) 

(2.5925)/3 month USD-LIBOR-BBA/         
Jan-27 (Purchased)  Jan-19/2.5925  8,145,400  (287,125)  (7,412) 

(2.785)/3 month USD-LIBOR-BBA/         
Jan-47 (Purchased)  Jan-27/2.785  8,145,400  (874,001)  (9,449) 

 

Premier Income Trust 53 

 



FORWARD PREMIUM SWAP OPTION CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont.   

Counterparty           
Fixed right or obligation % to        Premium  Unrealized 
receive or (pay)/ Floating rate  Expiration    Contract  receivable/  appreciation/ 
index/Maturity date  date/strike    amount  (payable)  (depreciation) 

Bank of America N.A. cont.           

2.785/3 month USD-LIBOR-BBA/           
Jan-47 (Purchased)  Jan-27/2.785    $8,145,400  $(874,001)  $(56,040) 

(2.7175)/3 month USD-LIBOR-BBA/           
Jan-47 (Written)  Jan-19/2.7175    8,145,400  735,937  40,157 

2.7175/3 month USD-LIBOR-BBA/           
Jan-47 (Written)  Jan-19/2.7175    8,145,400  735,937  (1,955) 

Barclays Bank PLC           

(0.625)/6 month JPY-LIBOR-BBA/           
Feb-37 (Purchased)  Feb-17/0.625  JPY  1,606,200,000  (14,295,180)  133,008 

(0.66)/6 month JPY-LIBOR-BBA/           
Feb-37 (Purchased)  Feb-17/0.66  JPY  1,606,200,000  (14,295,180)  61,312 

Citibank, N.A.           

2.605/3 month USD-LIBOR-BBA/           
Feb-27 (Written)  Feb-17/2.605    $40,727,000  40,727  16,698 

2.55125/3 month USD-LIBOR-BBA/           
Feb-27 (Written)  Feb-17/2.55125    40,727,000  101,818  13,847 

Credit Suisse International           

2.6075/3 month USD-LIBOR-BBA/           
Feb-27 (Written)  Feb-17/2.6075    40,727,000  50,909  (4,928) 

Goldman Sachs International           

2.61/3 month USD-LIBOR-BBA/           
Feb-27 (Written)  Feb-17/2.61    40,727,000  29,866  11,404 

Wells Fargo Bank, N.A.           

2.82/3 month USD-LIBOR-BBA/           
Jan-30 (Written)  Jan-20/2.82    1,357,600  70,341  6,910 

(2.82)/3 month USD-LIBOR-BBA/           
Jan-30 (Written)  Jan-20/2.82    1,357,600  70,341  (2,620) 

Total        $(29,076,736)  $195,800 

 

TBA SALE COMMITMENTS OUTSTANDING at 1/31/17 (proceeds receivable $250,119,219) (Unaudited) 

  Principal  Settlement   
Agency  amount  date  Value 

Federal National Mortgage Association, 4.50%, 2/1/47  $5,000,000  2/13/17  $5,376,953 

Federal National Mortgage Association, 4.00%, 2/1/47  2,000,000  2/13/17  2,098,594 

Federal National Mortgage Association, 3.50%, 2/1/47  162,000,000  2/13/17  165,556,402 

Federal National Mortgage Association, 3.00%, 2/1/47  75,000,000  2/13/17  74,226,563 

Government National Mortgage Association, 4.50%, 2/1/47  3,000,000  2/21/17  3,218,203 

Total      $250,476,715 

 

54 Premier Income Trust 

 



OTC INTEREST RATE SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited)   

    Upfront    Payments  Payments   
Swap counterparty/  premium  Termination  made by  received by  Unrealized 
Notional amount  received (paid)  date  fund per annum  fund per annum  depreciation 

JPMorgan Chase Bank N.A.           

MXN  84,723,000  $—  1/1/26  1 month MXN-TIIE-  6.16%  $(450,850) 
        BANXICO     

MXN  90,430,000    10/6/21  1 month MXN-TIIE-  5.93%  (272,113) 
        BANXICO     

MXN  36,547,000    10/8/21  1 month MXN-TIIE-  5.895%  (112,650) 
        BANXICO     

MXN  37,884,000    10/26/21  1 month MXN-TIIE-  6.09%  (103,226) 
        BANXICO     

Total    $—        $(938,839) 

 

CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) 

  Upfront    Payments  Payments  Unrealized 
  premium  Termination  made by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  fund per annum  (depreciation) 

$709,700 E  $(24)  4/24/47  3 month USD-  1.92%  $(113,725) 
      LIBOR-BBA     

9,618,000 E  26,271  3/15/27  3 month USD-  2.50%  132,098 
      LIBOR-BBA     

75,923,000 E  47,087  3/15/22  3 month USD-  2.15%  538,309 
      LIBOR-BBA     

8,369,200 E  37,772  3/15/47  3 month USD-  2.704%  151,660 
      LIBOR-BBA     

303,446,600 E  (507,537)  3/15/27  2.4885%  3 month USD-  (3,528,348) 
        LIBOR-BBA   

81,141,300 E  (90,141)  3/15/22  2.132%  3 month USD-  (544,938) 
        LIBOR-BBA   

364,174,100 E  (107,402)  3/15/19  1.6065%  3 month USD-  (495,976) 
        LIBOR-BBA   

27,151,300  (228,431)  1/31/27  3 month USD-  2.4775%  74,256 
      LIBOR-BBA     

20,433,000  (271)  1/5/27  3 month USD-  2.38%  71,139 
      LIBOR-BBA     

17,528,000  (232)  1/5/27  3 month USD-  2.3795%  60,230 
      LIBOR-BBA     

7,178,000  (95)  1/6/27  3 month USD-  2.31%  (21,498) 
      LIBOR-BBA     

18,960,000  (251)  1/6/27  3 month USD-  2.28%  (108,865) 
      LIBOR-BBA     

6,810,000  (90)  1/9/27  3 month USD-  2.2301%  (71,425) 
      LIBOR-BBA     

8,075,000  (107)  1/9/27  3 month USD-  2.221%  (91,424) 
      LIBOR-BBA     

10,641,000  (141)  1/10/27  3 month USD-  2.2075%  (133,979) 
      LIBOR-BBA     

21,908,000  (291)  1/10/27  2.29333%  3 month USD-  103,105 
        LIBOR-BBA   

 

Premier Income Trust 55 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont. 

  Upfront    Payments  Payments  Unrealized 
  premium  Termination  made by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  fund per annum  (depreciation) 

$14,058,000  $(186)  1/10/27  2.294%  3 month USD-  $65,297 
        LIBOR-BBA   

10,438,000  (138)  1/11/27  3 month USD-  2.246%  (95,085) 
      LIBOR-BBA     

8,027,000  (106)  1/12/27  3 month USD-  2.2515%  (69,558) 
      LIBOR-BBA     

7,961,000  (106)  1/13/27  3 month USD-  2.246%  (73,460) 
      LIBOR-BBA     

8,030,000  (106)  1/13/27  3 month USD-  2.249%  (71,893) 
      LIBOR-BBA     

9,779,800  (130)  1/17/27  3 month USD-  2.19%  (142,471) 
      LIBOR-BBA     

9,779,800  (130)  1/17/27  3 month USD-  2.197%  (136,195) 
      LIBOR-BBA     

5,124,000  (68)  1/17/27  2.2955%  3 month USD-  25,035 
        LIBOR-BBA   

12,555,000  (166)  1/17/27  2.30308%  3 month USD-  52,636 
        LIBOR-BBA   

8,523,000  (113)  1/20/27  3 month USD-  2.233%  (91,770) 
      LIBOR-BBA     

14,517,000  (192)  1/23/27  2.35299%  3 month USD-  (593) 
        LIBOR-BBA   

21,233,000  (282)  1/23/27  2.37712%  3 month USD-  (47,757) 
        LIBOR-BBA   

11,584,500  (154)  1/23/27  2.3785%  3 month USD-  (27,519) 
        LIBOR-BBA   

19,549,000  (259)  1/25/27  3 month USD-  2.37%  29,498 
      LIBOR-BBA     

11,584,500  (154)  1/23/27  2.37025%  3 month USD-  (18,775) 
        LIBOR-BBA   

9,921,000  (132)  1/25/27  3 month USD-  2.335%  (16,795) 
      LIBOR-BBA     

11,099,000  (147)  1/25/27  3 month USD-  2.3025%  (51,780) 
      LIBOR-BBA     

18,534,000  (246)  1/26/27  3 month USD-  2.3255%  (48,100) 
      LIBOR-BBA     

19,390,000  (257)  1/27/27  2.3956%  3 month USD-  (73,224) 
        LIBOR-BBA   

19,090,000  (253)  1/27/27  2.4322%  3 month USD-  (135,986) 
        LIBOR-BBA   

15,607,000  (207)  1/30/27  3 month USD-  2.456%  142,777 
      LIBOR-BBA     

7,438,000  (99)  1/30/27  2.4455%  3 month USD-  (61,099) 
        LIBOR-BBA   

9,249,000  (123)  1/31/27  2.416%  3 month USD-  (51,234) 
        LIBOR-BBA   

8,685,600  (115)  1/31/27  2.4055%  3 month USD-  (39,784) 
        LIBOR-BBA   

 

56 Premier Income Trust 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont. 

    Upfront    Payments  Payments  Unrealized 
    premium  Termination  made by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  fund per annum  (depreciation) 

  $10,049,000  $(133)  2/1/27  3 month USD-  2.394%  $33,852 
        LIBOR-BBA     

AUD  35,266,000 E  53,967  3/22/22  2.70%  6 month AUD-  (116,536) 
          BBR-BBSW   

AUD  11,214,000 E  32,698  3/22/27  3.10%  6 month AUD-  (42,305) 
          BBR-BBSW   

CAD  12,965,000 E  (70,723)  3/15/22  3 month CAD-BA-  1.60%  (19,002) 
        CDOR     

CAD  17,820,000 E  (6,421)  3/15/27  2.07%  3 month CAD-BA-  (76,153) 
          CDOR   

CHF  46,000 E  35  3/15/22  6 month CHF-  0.25%  (63) 
        LIBOR-BBA     

CHF  59,000 E  (95)  3/15/27  6 month CHF-  0.25%  92 
        LIBOR-BBA     

EUR  147,331,000 E  196,342  3/15/22  0.20%  6 month EUR-  269,978 
          EURIBOR-   
          REUTERS   

EUR  19,812,000 E  (25,379)  3/15/27  0.82%  6 month EUR-  11,578 
          EURIBOR-   
          REUTERS   

EUR  4,243,000 E  (88)  1/24/32  6 month EUR-  1.665%  (31,340) 
        EURIBOR-REUTERS     

GBP  35,845,000 E  (42,838)  3/15/22  1.06%  6 month GBP-  (59,252) 
          LIBOR-BBA   

GBP  9,834,000 E  68,993  3/15/27  1.50%  6 month GBP-  5,640 
          LIBOR-BBA   

GBP  3,856,000 E  (72)  1/19/32  1.912%  6 month GBP-  19,099 
          LIBOR-BBA   

JPY  384,052,000 E  (113)  2/22/37  6 month JPY-  0.56%  (101,863) 
        LIBOR-BBA     

MXN  30,450,000  (21)  12/3/26  7.715%  1 month MXN-  12,967 
          TIIE-BANXICO   

MXN  21,470,000  (14)  12/24/26  8.12%  1 month MXN-  (21,573) 
          TIIE-BANXICO   

MXN  25,900,000  (17)  1/7/27  8.20%  1 month MXN-  (31,614) 
          TIIE-BANXICO   

NOK  890,000 E  (11)  3/15/22  6 month NOK-  1.65%  114 
        NIBOR-NIBR     

NOK  25,982,000 E  3,605  3/15/27  6 month NOK-  2.05%  1,136 
        NIBOR-NIBR     

NZD  7,717,000 E  (7,245)  3/15/27  3 month NZD-  3.70%  31,624 
        BBR-FRA     

NZD  40,466,000 E  8,663  3/15/22  3 month NZD-  3.18%  75,525 
        BBR-FRA     

SEK  167,122,000 E  6,785  3/15/22  0.35%  3 month SEK-  120,618 
          STIBOR-SIDE   

 

Premier Income Trust 57 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont. 

    Upfront    Payments  Payments  Unrealized 
    premium  Termination  made by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  fund per annum  (depreciation) 

SEK  493,000 E  $376  3/15/27  3 month SEK-  1.25%  $53 
        STIBOR-SIDE     

ZAR  16,652,000  (15)  10/11/26  8.32625%  3 month ZAR-  (9,808) 
          JIBAR-SAFEX   

Total    $(609,473)        $(4,844,449) 

 

E Extended effective date.

 

OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited)   

  Upfront    Payments  Total return  Unrealized 
Swap counterparty/  premium  Termination  received (paid) by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  or paid by fund  (depreciation) 

Barclays Bank PLC           

$738,118  $—  1/12/42  4.00% (1 month  Synthetic TRS Index  $3,791 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

260,379    1/12/40  4.00% (1 month  Synthetic MBX Index  (910) 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

630,679    1/12/39  6.00% (1 month  Synthetic TRS Index  846 
      USD-LIBOR)  6.00% 30 year Fannie   
        Mae pools   

630,131    1/12/40  4.00% (1 month  Synthetic MBX Index  (2,203) 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

80,994    1/12/38  6.50% (1 month  Synthetic TRS Index  104 
      USD-LIBOR)  6.50% 30 year Fannie   
        Mae pools   

338,461    1/12/41  5.00% (1 month  Synthetic MBX Index  (1,963) 
      USD-LIBOR)  5.00% 30 year Ginnie   
        Mae II pools   

1,535,656    1/12/40  4.00% (1 month  Synthetic MBX Index  (5,368) 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

1,241,441    1/12/40  4.50% (1 month  Synthetic MBX Index  (1,117) 
      USD-LIBOR)  4.50% 30 year Fannie   
        Mae pools   

747,509    1/12/39  (6.00%) 1 month  Synthetic MBX Index  (951) 
      USD-LIBOR  6.00% 30 year Fannie   
        Mae pools   

1,019,593    1/12/41  5.00% (1 month  Synthetic TRS Index  4,822 
      USD-LIBOR)  5.00% 30 year Ginnie   
        Mae II pools   

613,777    1/12/41  5.00% (1 month  Synthetic TRS Index  2,903 
      USD-LIBOR)  5.00% 30 year Ginnie   
        Mae II pools   

778,376    1/12/41  5.00% (1 month  Synthetic TRS Index  3,682 
      USD-LIBOR)  5.00% 30 year Ginnie   
        Mae II pools   

 

58 Premier Income Trust 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont.   

    Upfront    Payments  Total return  Unrealized 
Swap counterparty/  premium  Termination  received (paid) by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  or paid by fund  (depreciation) 

Barclays Bank PLC cont.           

  $1,198,982  $—  1/12/38  6.50% (1 month  Synthetic TRS Index  $1,541 
        USD-LIBOR)  6.50% 30 year Fannie   
          Mae pools   

  172,051    1/12/38  6.50% (1 month  Synthetic TRS Index  221 
        USD-LIBOR)  6.50% 30 year Fannie   
          Mae pools   

  2,819,398    1/12/41  (5.00%) 1 month  Synthetic TRS Index  (15,969) 
        USD-LIBOR  5.00% 30 year Fannie   
          Mae pools   

  1,131,186    1/12/43  3.50% (1 month  Synthetic TRS Index  4,636 
        USD-LIBOR)  3.50% 30 year Fannie   
          Mae pools   

  3,907,272    1/12/41  (4.00%) 1 month  Synthetic TRS Index  (21,298) 
        USD-LIBOR  4.00% 30 year Fannie   
          Mae pools   

  2,466,168    1/12/40  5.00% (1 month  Synthetic MBX Index  1,116 
        USD-LIBOR)  5.00% 30 year Fannie   
          Mae pools   

  21,017,654    1/12/41  5.00% (1 month  Synthetic MBX Index  104,706 
        USD-LIBOR)  5.00% 30 year Fannie   
          Mae pools   

  12,379,955    1/12/38  (6.50%) 1 month  Synthetic MBX Index  (24,700) 
        USD-LIBOR  6.50% 30 year Fannie   
          Mae pools   

EUR  6,626,000    9/15/17  (0.4975%)  Eurostat Eurozone  29,183 
          HICP excluding   
          tobacco   

EUR  3,313,000    9/15/17  (0.46%)  Eurostat Eurozone  17,310 
          HICP excluding   
          tobacco   

EUR  4,713,000    9/15/17  (0.435%)  Eurostat Eurozone  27,168 
          HICP excluding   
          tobacco   

GBP  4,694,000    11/3/26  3.4531%  GBP Non-revised UK  (139,536) 
          Retail Price Index   

Citibank, N.A.           

  $1,237,064    1/12/41  5.00% (1 month  Synthetic MBX Index  6,163 
        USD-LIBOR)  5.00% 30 year Fannie   
          Mae pools   

  2,814,707    1/12/41  5.00% (1 month  Synthetic MBX Index  14,022 
        USD-LIBOR)  5.00% 30 year Fannie   
          Mae pools   

  429,947    1/12/41  5.00% (1 month  Synthetic MBX Index  2,142 
        USD-LIBOR)  5.00% 30 year Fannie   
          Mae pools   

 

Premier Income Trust 59 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont.   

  Upfront    Payments  Total return  Unrealized 
Swap counterparty/  premium  Termination  received (paid) by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  or paid by fund  (depreciation) 

Credit Suisse International         

$938,236  $—  1/12/41  5.00% (1 month  Synthetic MBX Index  $4,674 
      USD-LIBOR)  5.00% 30 year Fannie   
        Mae pools   

910,562    1/12/38  (6.50%) 1 month  Synthetic MBX Index  (1,817) 
      USD-LIBOR  6.50% 30 year Fannie   
        Mae pools   

1,627,265    1/12/41  5.00% (1 month  Synthetic TRS Index  7,697 
      USD-LIBOR)  5.00% 30 year Ginnie   
        Mae II pools   

1,726,119    1/12/41  (5.00%) 1 month  Synthetic TRS Index  (9,776) 
      USD-LIBOR  5.00% 30 year Fannie   
        Mae pools   

1,894,533    1/12/41  (5.00%) 1 month  Synthetic TRS Index  (10,730) 
      USD-LIBOR  5.00% 30 year Fannie   
        Mae pools   

1,737,771    1/12/41  5.00% (1 month  Synthetic MBX Index  8,219 
      USD-LIBOR)  5.00% 30 year Ginnie   
        Mae II pools   

1,004,122    1/12/41  4.00% (1 month  Synthetic TRS Index  5,473 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

80,476    1/12/41  4.00% (1 month  Synthetic TRS Index  439 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

79,324    1/12/44  3.50% (1 month  Synthetic TRS Index  300 
      USD-LIBOR)  3.50% 30 year Fannie   
        Mae pools   

696,007    1/12/44  3.50% (1 month  Synthetic TRS Index  2,635 
      USD-LIBOR)  3.50% 30 year Fannie   
        Mae pools   

1,331,467    1/12/43  3.50% (1 month  Synthetic TRS Index  5,457 
      USD-LIBOR)  3.50% 30 year Fannie   
        Mae pools   

366,915    1/12/43  3.50% (1 month  Synthetic TRS Index  1,504 
      USD-LIBOR)  3.50% 30 year Fannie   
        Mae pools   

209,894    1/12/43  3.50% (1 month  Synthetic TRS Index  860 
      USD-LIBOR)  3.50% 30 year Fannie   
        Mae pools   

5,695,179    1/12/45  4.00% (1 month  Synthetic TRS Index  34,608 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

2,042,249    1/12/45  4.00% (1 month  Synthetic TRS Index  12,410 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

 

60 Premier Income Trust 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont.   

  Upfront    Payments  Total return  Unrealized 
Swap counterparty/  premium  Termination  received (paid) by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  or paid by fund  (depreciation) 

Credit Suisse International cont.         

$2,024,321  $—  1/12/45  3.50% (1 month  Synthetic TRS Index  $10,200 
      USD-LIBOR)  3.50% 30 year Fannie   
        Mae pools   

3,497,575    1/12/41  (4.00%) 1 month  Synthetic TRS Index  (19,065) 
      USD-LIBOR  4.00% 30 year Fannie   
        Mae pools   

Deutsche Bank AG           

910,562    1/12/38  (6.50%) 1 month  Synthetic MBX Index  (1,817) 
      USD-LIBOR  6.50% 30 year Fannie   
        Mae pools   

Goldman Sachs International         

920,412    1/12/39  6.00% (1 month  Synthetic TRS Index  1,235 
      USD-LIBOR)  6.00% 30 year Fannie   
        Mae pools   

377,200    1/12/38  6.50% (1 month  Synthetic TRS Index  485 
      USD-LIBOR)  6.50% 30 year Fannie   
        Mae pools   

1,831,394    1/12/42  4.00% (1 month  Synthetic TRS Index  9,407 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

1,831,394    1/12/42  4.00% (1 month  Synthetic TRS Index  9,407 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

576,750    1/12/38  (6.50%) 1 month  Synthetic MBX Index  (1,151) 
      USD-LIBOR  6.50% 30 year Fannie   
        Mae pools   

216,668    1/12/38  (6.50%) 1 month  Synthetic MBX Index  (432) 
      USD-LIBOR  6.50% 30 year Fannie   
        Mae pools   

441,868    1/12/39  6.00% (1 month  Synthetic TRS Index  593 
      USD-LIBOR)  6.00% 30 year Fannie   
        Mae pools   

66,457    1/12/39  6.00% (1 month  Synthetic TRS Index  89 
      USD-LIBOR)  6.00% 30 year Fannie   
        Mae pools   

1,155,326    1/12/40  4.00% (1 month  Synthetic TRS Index  5,224 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

444,564    1/12/39  6.00% (1 month  Synthetic TRS Index  596 
      USD-LIBOR)  6.00% 30 year Fannie   
        Mae pools   

889,083    1/12/39  6.00% (1 month  Synthetic TRS Index  1,193 
      USD-LIBOR)  6.00% 30 year Fannie   
        Mae pools   

27,135    1/12/38  6.50% (1 month  Synthetic TRS Index  35 
      USD-LIBOR)  6.50% 30 year Fannie   
        Mae pools   

 

Premier Income Trust 61 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont.   

  Upfront    Payments  Total return  Unrealized 
Swap counterparty/  premium  Termination  received (paid) by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  or paid by fund  (depreciation) 

Goldman Sachs International cont.         

$406,566  $—  1/12/38  (6.50%) 1 month  Synthetic MBX Index  $(811) 
      USD-LIBOR  6.50% 30 year Fannie   
        Mae pools   

790,140    1/12/38  (6.50%) 1 month  Synthetic MBX Index  (1,576) 
      USD-LIBOR  6.50% 30 year Fannie   
        Mae pools   

487,834    1/12/38  (6.50%) 1 month  Synthetic MBX Index  (973) 
      USD-LIBOR  6.50% 30 year Fannie   
        Mae pools   

37,379    1/12/38  (6.50%) 1 month  Synthetic MBX Index  (75) 
      USD-LIBOR  6.50% 30 year Fannie   
        Mae pools   

99,707    1/12/38  (6.50%) 1 month  Synthetic MBX Index  (199) 
      USD-LIBOR  6.50% 30 year Fannie   
        Mae pools   

4,168,549    1/12/42  4.00% (1 month  Synthetic TRS Index  21,412 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

3,607,512    1/12/42  4.00% (1 month  Synthetic TRS Index  18,530 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

2,702,354    1/12/41  (5.00%) 1 month  Synthetic TRS Index  (15,306) 
      USD-LIBOR  5.00% 30 year Fannie   
        Mae pools   

3,363,609    1/12/44  3.50% (1 month  Synthetic TRS Index  12,734 
      USD-LIBOR)  3.50% 30 year Fannie   
        Mae pools   

2,664,403    1/12/44  3.50% (1 month  Synthetic TRS Index  10,087 
      USD-LIBOR)  3.50% 30 year Fannie   
        Mae pools   

1,406,088    1/12/44  3.50% (1 month  Synthetic TRS Index  5,323 
      USD-LIBOR)  3.50% 30 year Fannie   
        Mae pools   

2,026,566    1/12/45  4.00% (1 month  Synthetic TRS Index  12,315 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

2,279,463    1/12/43  (3.50%) 1 month  Synthetic TRS Index  (9,342) 
      USD-LIBOR  3.50% 30 year Fannie   
        Mae pools   

7,099,080    1/12/45  4.00% (1 month  Synthetic TRS Index  43,139 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

2,679,038    1/12/44  (3.00%) 1 month  Synthetic TRS Index  (4,852) 
      USD-LIBOR  3.00% 30 year Fannie   
        Mae pools   

6,168,703    1/12/41  (4.00%) 1 month  Synthetic TRS Index  (33,624) 
      USD-LIBOR  4.00% 30 year Fannie   
        Mae pools   

 

62 Premier Income Trust 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont.   

    Upfront    Payments  Total return  Unrealized 
Swap counterparty/  premium  Termination  received (paid) by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  or paid by fund  (depreciation) 

Goldman Sachs International cont.         

EUR  23,854,000  $—  8/10/17  (0.63%)  Eurostat Eurozone  $11,330 
          HICP excluding   
          tobacco   

EUR  7,876,000    8/11/17  (0.63%)  Eurostat Eurozone  3,741 
          HICP excluding   
          tobacco   

EUR  6,626,000    8/31/17  (0.27%)  Eurostat Eurozone  55,005 
          HICP excluding   
          tobacco   

EUR  6,626,000    9/1/17  (0.37%)  Eurostat Eurozone  47,566 
          HICP excluding   
          tobacco   

EUR  3,884,000    1/26/21  (0.75%)  Eurostat Eurozone  80,179 
          HICP excluding   
          tobacco   

GBP  2,347,000    11/10/26  3.56%  GBP Non-revised UK  (31,179) 
          Retail Price Index   

GBP  2,347,000    11/18/26  3.52%  GBP Non-revised UK  (45,646) 
          Retail Price Index   

JPMorgan Chase Bank N.A.         

  $5,402,612    1/12/41  4.00% (1 month  Synthetic TRS Index  29,449 
        USD-LIBOR)  4.00% 30 year Fannie   
          Mae pools   

  3,134,649    1/12/41  4.00% (1 month  Synthetic TRS Index  17,086 
        USD-LIBOR)  4.00% 30 year Fannie   
          Mae pools   

  1,042,009    1/12/41  4.00% (1 month  Synthetic TRS Index  5,680 
        USD-LIBOR)  4.00% 30 year Fannie   
          Mae pools   

  2,909,682    1/12/41  4.00% (1 month  Synthetic TRS Index  15,860 
        USD-LIBOR)  4.00% 30 year Fannie   
          Mae pools   

  2,702,354    1/12/41  (5.00%) 1 month  Synthetic TRS Index  (15,306) 
        USD-LIBOR  5.00% 30 year Fannie   
          Mae pools   

EUR  3,313,000    9/7/20  (0.85%)  Eurostat Eurozone  32,441 
          HICP excluding   
          tobacco   

EUR  4,155,000    1/27/21  (0.755%)  Eurostat Eurozone  85,895 
          HICP excluding   
          tobacco   

EUR  3,418,000    1/26/21  (0.75%)  Eurostat Eurozone  71,618 
          HICP excluding   
          tobacco   

 

Premier Income Trust 63 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont.   

  Upfront    Payments  Total return  Unrealized 
Swap counterparty/  premium  Termination  received (paid) by  received by  appreciation/ 
Notional amount  received (paid)  date  fund per annum  or paid by fund  (depreciation) 

JPMorgan Securities LLC         

$3,221,825  $—  1/12/44  4.00% (1 month  Synthetic TRS Index  $18,573 
      USD-LIBOR)  4.00% 30 year Fannie   
        Mae pools   

759,999    1/12/43  (3.50%) 1 month  Synthetic TRS Index  (3,115) 
      USD-LIBOR  3.50% 30 year Fannie   
        Mae pools   

12,176,968  (19,027)  1/12/42  (4.00%) 1 month  Synthetic TRS Index  (80,283) 
      USD-LIBOR  4.00% 30 year Fannie   
        Mae pools   

Total  $(19,027)        $443,969 

 

OTC CREDIT DEFAULT CONTRACTS OUTSTANDING at 1/31/17 (Unaudited)     

    Upfront      Payments   
    premium    Termi-  received  Unrealized 
Swap counterparty/    received  Notional  nation  (paid) by fund  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  date  per annum  (depreciation) 

Bank of America N.A.             

CMBX NA BBB– Index  BBB–/P  $9,980  $146,000  5/11/63  300 bp  $998 

CMBX NA BBB– Index  BBB–/P  19,586  325,000  5/11/63  300 bp  (407) 

CMBX NA BBB– Index  BBB–/P  40,127  650,000  5/11/63  300 bp  142 

CMBX NA BBB– Index  BBB–/P  38,247  671,000  5/11/63  300 bp  (3,031) 

Credit Suisse International             

CMBX NA BB Index    (156,621)  1,116,000  1/17/47  (500 bp)  (16,643) 

CMBX NA BB Index    (104,332)  5,911,000  5/11/63  (500 bp)  686,133 

CMBX NA BB Index    (192,855)  1,178,000  1/17/47  (500 bp)  (45,101) 

CMBX NA BB Index    (3,146)  324,000  1/17/47  (500 bp)  37,493 

CMBX NA BBB– Index  BBB–/P  12,042  246,000  5/11/63  300 bp  (3,092) 

CMBX NA BBB– Index  BBB–/P  123,134  2,510,000  5/11/63  300 bp  (31,273) 

CMBX NA BBB– Index  BBB–/P  73,353  928,000  1/17/47  300 bp  25,082 

CMBX NA BBB– Index  BBB–/P  143,170  2,180,000  1/17/47  300 bp  29,774 

CMBX NA BBB– Index  BBB–/P  3,191,200  43,174,000  1/17/47  300 bp  945,433 

Goldman Sachs International           

CMBX NA BB Index    (266,285)  2,603,000  5/11/63  (500 bp)  81,809 

CMBX NA BB Index    (71,729)  474,000  1/17/47  (500 bp)  (12,276) 

CMBX NA BB Index    (19,578)  134,000  5/11/63  (500 bp)  (1,659) 

CMBX NA BB Index    (135,933)  804,000  1/17/47  (500 bp)  (35,089) 

CMBX NA BBB– Index  BBB–/P  31,646  638,000  5/11/63  300 bp  (7,601) 

CMBX NA BBB– Index  BBB–/P  31,103  638,000  5/11/63  300 bp  (8,145) 

CMBX NA BBB– Index  BBB–/P  34,009  652,000  5/11/63  300 bp  (6,100) 

CMBX NA BBB– Index  BBB–/P  69,759  928,000  5/11/63  300 bp  12,671 

CMBX NA BBB– Index  BBB–/P  93,617  1,935,000  5/11/63  300 bp  (25,418) 

CMBX NA BBB– Index    (11,955)  147,000  1/17/47  (300 bp)  (4,308) 

CMBX NA BBB– Index  BBB–/P  3,544  45,000  1/17/47  300 bp  1,203 

CMBX NA BBB– Index  BBB–/P  153,551  2,203,000  1/17/47  300 bp  38,958 

CMBX NA BBB– Index  BBB–/P  537,139  7,267,000  1/17/47  300 bp  159,134 

 

64 Premier Income Trust 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING at 1/31/17 (Unaudited) cont.     

    Upfront      Payments   
    premium    Termi-  received  Unrealized 
Swap counterparty/    received  Notional  nation  (paid) by fund  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  date  per annum  (depreciation) 

JPMorgan Securities LLC             

CMBX NA BB Index    $(186,437)  $1,326,000  5/11/63  (500 bp)  $(9,114) 

CMBX NA BB Index    (108,451)  748,000  5/11/63  (500 bp)  (8,423) 

CMBX NA BB Index    (80,830)  562,000  5/11/63  (500 bp)  (5,675) 

CMBX NA BB Index    (41,215)  310,000  5/11/63  (500 bp)  241 

CMBX NA BBB– Index  BBB–/P  21,774  353,000  5/11/63  300 bp  (147) 

CMBX NA BBB– Index  BBB–/P  19,968  452,000  5/11/63  300 bp  (7,837) 

CMBX NA BBB– Index  BBB–/P  37,564  705,000  5/11/63  300 bp  (6,099) 

CMBX NA BBB– Index  BBB–/P  35,905  705,000  5/11/63  300 bp  (7,758) 

CMBX NA BBB– Index  BBB–/P  92,457  1,704,000  5/11/63  300 bp  (12,367) 

CMBX NA BBB– Index  BBB–/P  117,048  2,116,000  5/11/63  300 bp  (13,122) 

CMBX NA BBB– Index  BBB–/P  238,942  3,047,000  5/11/63  300 bp  51,500 

CMBX NA BBB– Index    (259,640)  2,819,000  1/17/47  (300 bp)  (113,006) 

CMBX NA BBB– Index    (93,842)  1,128,000  1/17/47  (300 bp)  (35,167) 

CMBX NA BBB– Index    (39,631)  501,000  1/17/47  (300 bp)  (13,570) 

CMBX NA BBB– Index    (18,990)  353,000  1/17/47  (300 bp)  (422) 

CMBX NA BBB– Index  BBB–/P  5,306  65,000  1/17/47  300 bp  1,924 

Total    $3,382,701        $1,639,645 

 

* Payments related to the referenced debt are made upon a credit default event.

** Upfront premium is based on the difference between the original spread on issue and the market spread on day of execution.

*** Ratings are presented for credit default contracts in which the fund has sold protection on the underlying referenced debt. Ratings for an underlying index represent the average of the ratings of all the securities included in that index.

The Moody’s, Standard & Poor’s or Fitch ratings are believed to be the most recent ratings available at January 31, 2017. Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications.

Premier Income Trust 65 

 



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*:       

Consumer cyclicals  $—­  $—­  $23,241 

Energy  287,213  3,537  13,689 

Government  —­  2,086,422  —­ 

Utilities and power  341,577  27,395  —­ 

Total common stocks  628,790  2,117,354  36,930 
 
Convertible bonds and notes  —­  93,891  —­ 

Corporate bonds and notes  —­  192,645,450  5 

Foreign government and agency bonds and notes  —­  44,470,395  —­ 

Mortgage-backed securities  —­  290,425,462  —­ 

Preferred stocks  418,011  —­  —­ 

Purchased options outstanding  —­  1,938,808  —­ 

Purchased swap options outstanding  —­  2,150,655  —­ 

Senior loans  —­  11,949,457  —­ 

U.S. government and agency mortgage obligations  —­  354,627,310  —­ 

Warrants  15,012  8,924  —­ 

Short-term investments  33,482,798  26,332,382  —­ 

Totals by level  $34,544,611  $926,760,088  $36,935 
 
    Valuation inputs   

Other financial instruments:  Level 1  Level 2  Level 3 

Forward currency contracts  $—­  $1,104,736  $—­ 

Written options outstanding  —­  (2,203,855)  —­ 

Written swap options outstanding  —­  (3,381,134)  —­ 

Forward premium swap option contracts  —­  195,800  —­ 

TBA sale commitments  —­  (250,476,715)  —­ 

Interest rate swap contracts  —­  (5,173,815)  —­ 

Total return swap contracts  —­  462,996  —­ 

Credit default contracts  —­  (1,743,056)  —­ 

Totals by level  $—­  $(261,215,043)  $—­ 

 

* 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.

The accompanying notes are an integral part of these financial statements.

66 Premier Income Trust 

 



Statement of assets and liabilities 1/31/17 (Unaudited)

ASSETS   

Investment in securities, at value (Note 1):   
Unaffiliated issuers (identified cost $934,850,219)  $928,341,836 
Affiliated issuers (identified cost $32,999,798) (Notes 1 and 5)  32,999,798 

Cash  100,987 

Foreign currency (cost $733,650) (Note 1)  737,012 

Dividends, interest and other receivables  7,619,570 

Receivable for investments sold  4,227,816 

Receivable for sales of delayed delivery securities (Note 1)  208,183,839 

Receivable for variation margin (Note 1)  1,541,497 

Unrealized appreciation on forward premium swap option contracts (Note 1)  283,336 

Unrealized appreciation on forward currency contracts (Note 1)  4,681,277 

Unrealized appreciation on OTC swap contracts (Note 1)  3,017,554 

Premium paid on OTC swap contracts (Note 1)  1,810,497 

Total assets  1,193,545,019 

 
LIABILITIES   

Payable for investments purchased  7,882,330 

Payable for purchases of delayed delivery securities (Note 1)  312,874,984 

Payable for compensation of Manager (Note 2)  1,076,110 

Payable for custodian fees (Note 2)  92,095 

Payable for investor servicing fees (Note 2)  49,407 

Payable for Trustee compensation and expenses (Note 2)  287,000 

Payable for administrative services (Note 2)  6,096 

Payable for variation margin (Note 1)  2,569,904 

Distributions payable to shareholders  2,788,771 

Unrealized depreciation on OTC swap contracts (Note 1)  1,872,779 

Premium received on OTC swap contracts (Note 1)  5,174,171 

Unrealized depreciation on forward currency contracts (Note 1)  3,576,541 

Unrealized depreciation on forward premium swap option contracts (Note 1)  87,536 

Written options outstanding, at value (premiums $9,801,641) (Notes 1 and 3)  5,584,989 

TBA sale commitments, at value (proceeds receivable $250,119,219) (Note 1)  250,476,715 

Collateral on certain derivative contracts, at value (Note 1)  843,271 

Other accrued expenses  174,414 

Total liabilities  595,417,113 
 
Net assets  $598,127,906 

 
REPRESENTED BY   

Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)  $861,608,408 

Undistributed net investment income (Note 1)  903,630 

Accumulated net realized loss on investments and foreign currency transactions (Note 1)  (259,323,900) 

Net unrealized depreciation of investments and assets and liabilities in foreign currencies  (5,060,232) 

Total — Representing net assets applicable to capital shares outstanding  $598,127,906 

 
COMPUTATION OF NET ASSET VALUE   

Net asset value per share   
($598,127,906 divided by 107,254,321 shares)  $5.58 

 

The accompanying notes are an integral part of these financial statements.

Premier Income Trust 67 

 



Statement of operations Six months ended 1/31/17 (Unaudited)

INVESTMENT INCOME   

Interest (including interest income of $39,368 from investments in affiliated issuers) (Note 5)  $19,126,448 

Dividends  62,337 

Total investment income  19,188,785 

 
EXPENSES   

Compensation of Manager (Note 2)  2,180,892 

Investor servicing fees (Note 2)  146,903 

Custodian fees (Note 2)  64,087 

Trustee compensation and expenses (Note 2)  14,428 

Administrative services (Note 2)  10,499 

Other  231,507 

Total expenses  2,648,316 
 
Expense reduction (Note 2)  (474) 

Net expenses  2,647,842 
 
Net investment income  16,540,943 

 
Net realized loss on investments (Notes 1 and 3)  (13,404,307) 

Net realized gain on swap contracts (Note 1)  24,598,860 

Net realized gain on futures contracts (Note 1)  1,747,842 

Net realized gain on foreign currency transactions (Note 1)  4,332,258 

Net realized loss on written options (Notes 1 and 3)  (5,368,872) 

Net unrealized depreciation of assets and liabilities in foreign currencies during the period  (1,586,395) 

Net unrealized appreciation of investments, futures contracts, swap contracts, written options,   
and TBA sale commitments during the period  21,559,950 

Net gain on investments  31,879,336 
 
Net increase in net assets resulting from operations  $48,420,279 

 

The accompanying notes are an integral part of these financial statements.

68 Premier Income Trust 

 



Statement of changes in net assets

INCREASE (DECREASE) IN NET ASSETS  Six months ended 1/31/17*  Year ended 7/31/16 

Operations     

Net investment income  $16,540,943  $34,826,419 

Net realized gain (loss) on investments     
and foreign currency transactions  11,905,781  (51,865,294) 

Net unrealized appreciation (depreciation) of investments     
and assets and liabilities in foreign currencies  19,973,555  (2,825,597) 

Net increase (decrease) in net assets resulting     
from operations  48,420,279  (19,864,472) 

Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income  (16,920,125)  (35,145,808) 

Decrease from shares repurchased (Note 4)  (10,608,061)  (37,648,101) 

Total increase (decrease) in net assets  20,829,093  (92,658,381) 

 
NET ASSETS     

Beginning of period  577,235,813  669,894,194 

End of period (including undistributed net investment     
income of $903,630 and $1,282,812, respectively)  $598,127,906  $577,235,813 
 
NUMBER OF FUND SHARES     

Shares outstanding at beginning of period  109,420,660  117,160,420 

Shares repurchased (Note 4)  (2,166,339)  (7,739,760) 

Shares outstanding at end of period  107,254,321  109,420,660 

 

* Unaudited.

The accompanying notes are an integral part of these financial statements.

Premier Income Trust 69 

 



Financial highlights (For a common share outstanding throughout the period)

PER-SHARE OPERATING PERFORMANCE           
             
  Six months      Year ended     
ended** 
  1/31/17  7/31/16  7/31/15  7/31/14  7/31/13  7/31/12 

Net asset value, beginning of period  $5.28  $5.72  $6.20  $5.96  $5.76  $6.17 

Investment operations:             
Net investment income a  .15  .31  .28  .32  .32  .27 

Net realized and unrealized             
gain (loss) on investments  .30  (.48)  (.49)  .17  .19  (.28) 

Total from investment operations  .45  (.17)  (.21)  .49  .51  (.01) 
 
Less distributions:             
From net investment income  (.16)  (.31)  (.31)  (.31)  (.33)  (.34) 

From return of capital            (.06) 

Total distributions  (.16)  (.31)  (.31)  (.31)  (.33)  (.40) 

Increase from shares repurchased  .01  .04  .04  .06  .02   

Net asset value, end of period  $5.58  $5.28  $5.72  $6.20  $5.96  $5.76 

Market price, end of period  $5.27­  $4.72  $5.10  $5.47  $5.25  $5.63 

Total return at market price (%) b  15.20*  (1.31)  (1.14)  10.29  (1.06)  (0.63) 
 
RATIOS AND SUPPLEMENTAL DATA             

Net assets, end of period             
(in thousands)  $598,128  $577,236  $669,894  $775,817  $825,433  $818,077 

Ratio of expenses to average             
net assets (%) c  .45*  .91  .87  .90  .86  .88 

Ratio of net investment income             
to average net assets (%)  2.81*  5.75  4.74  5.23  5.49  4.80 

Portfolio turnover (%)  472*d  808d  654d  189e  215e  153e 

 

* Not annualized.

** Unaudited.

a Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period.

b Total return assumes dividend reinvestment.

c Includes amounts paid through expense offset arrangements, if any (Note 2).

d Portfolio turnover includes TBA purchase and sale commitments.

e Portfolio turnover excludes TBA purchase and sales commitments. Including TBA purchase and sale commitments to conform with current year presentation, the portfolio turnover would have been the following:

  Portfolio turnover % 

July 31, 2014  485% 

July 31, 2013  586 

July 31, 2012  458 

 

The accompanying notes are an integral part of these financial statements.

70 Premier Income Trust 

 



Notes to financial statements 1/31/17 (Unaudited)

Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission, 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. Unless otherwise noted, the “reporting period” represents the period from August 1, 2016 through January 31, 2017.

Putnam Premier Income Trust (the fund) is a Massachusetts business trust, which is registered under the Investment Company Act of 1940, as amended, as a non-diversified closed-end management investment company. The fund is currently operating as a diversified fund. In the future, the fund may operate as a non-diversified fund to the extent permitted by applicable law. Under current law, shareholder approval would be required before the fund could operate as a non-diversified fund. The goal of the fund is to seek high current income consistent with the preservation of capital by allocating its investments among the U.S. government sector, high yield sector and international sector of the fixed-income securities market.

The fund’s shares trade on a stock exchange at market prices, which may be lower than the fund’s net asset value.

In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.

The fund has entered into contractual arrangements with an investment adviser, administrator, transfer agent and custodian, who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.

Under the fund’s Declaration of Trust, any claims asserted against or on behalf of the Putnam Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.

Note 1: Significant accounting policies

The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.

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 Accounting Standards Codification 820 Fair Value Measurements and Disclosures (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

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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. Certain securities may be valued on the basis of a price provided by a single source. 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.

Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis.

Interest income, net of any applicable withholding taxes, is recorded on the accrual basis. Dividend income, net of any applicable withholding taxes, is recognized on the ex-dividend date except that certain dividends from foreign securities, if any, are recognized as soon as the fund is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair value of the securities received. Dividends representing a return of capital or capital gains, if any, are reflected as a reduction of cost and/or as a realized gain. All premiums/discounts are amortized/accreted on a yield-to-maturity basis.

The fund earned certain fees in connection with its senior loan purchasing activities. These fees are treated as market discount and are amortized into income in the Statement of operations.

Securities purchased or sold on a delayed delivery basis may be settled at a future date beyond customary settlement time; interest income is accrued based on the terms of the securities. Losses may arise due to changes in the fair value of the underlying securities or if the counterparty does not perform under the contract.

Stripped securities The fund may invest in stripped securities which represent a participation in securities that may be structured in classes with rights to receive different portions of the interest and principal. Interest-only securities receive all of the interest and principal-only securities receive all of the principal. If the interest-only securities experience greater than anticipated prepayments of principal, the fund may fail to recoup fully its initial investment in these securities. Conversely, principal-only securities increase in value if prepayments are greater than anticipated and decline if prepayments are slower than anticipated. The fair value of these securities is highly sensitive to changes in interest rates.

Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The fair value of foreign securities, currency holdings, and other assets and liabilities is recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when earned or incurred. The fund does not isolate that portion of realized or unrealized gains or losses

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resulting from changes in the foreign exchange rate on investments from fluctuations arising from changes in the market prices of the securities. Such gains and losses are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net realized exchange gains or losses on closed forward currency contracts, disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions and the difference between the amount of investment income and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign currencies arise from changes in the value of open forward currency contracts and assets and liabilities other than investments at the period end, resulting from changes in the exchange rate.

Options contracts The fund uses options contracts for hedging duration and convexity, to isolate prepayment risk, and to manage downside risks.

The potential risk to the fund is that the change in value of options contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.

Exchange-traded options are valued at the last sale price or, if no sales are reported, the last bid price for purchased options and the last ask price for written options. OTC traded options are valued using prices supplied by dealers.

Options on swaps are similar to options on securities except that the premium paid or received is to buy or grant the right to enter into a previously agreed upon interest rate or credit default contract. Forward premium swap option contracts include premiums that have extended settlement dates. The delayed settlement of the premiums is factored into the daily valuation of the option contracts. In the case of interest rate cap and floor contracts, in return for a premium, ongoing payments between two parties are based on interest rates exceeding a specified rate, in the case of a cap contract, or falling below a specified rate in the case of a floor contract.

Written option contracts outstanding at period end, if any, are listed after the fund’s portfolio.

Futures contracts The fund uses futures contracts for hedging treasury term structure risk and for yield curve positioning.

The potential risk to the fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. With futures, there is minimal counterparty credit risk to the fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin.”

Futures contracts outstanding at period end, if any, are listed after the fund’s portfolio.

Forward currency contracts The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts are used for hedging currency exposures and for gaining exposure to currencies.

The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The fair value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in fair value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position. Risks may exceed amounts recognized on the Statement of assets and liabilities.

Forward currency contracts outstanding at period end, if any, are listed after the fund’s portfolio.

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Interest rate swap contracts The fund entered into OTC and/or centrally cleared interest rate swap contracts, which are arrangements between two parties to exchange cash flows based on a notional principal amount, for hedging term structure risk, for yield curve positioning, and for gaining exposure to rates in various countries.

An OTC and centrally cleared interest rate swap can be purchased or sold with an upfront premium. For OTC interest rate swap contracts, an upfront payment received by the fund is recorded as a liability on the fund’s books. An upfront payment made by the fund is recorded as an asset on the fund’s books. OTC and centrally cleared interest rate swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers. Any change is recorded as an unrealized gain or loss on OTC interest rate swaps. Daily fluctuations in the value of centrally cleared interest rate swaps are settled through a central clearing agent and are recorded in variation margin on the Statement of assets and liabilities and recorded as unrealized gain or loss. Payments, including upfront premiums, received or made are recorded as realized gains or losses at the reset date or the closing of the contract. Certain OTC and centrally cleared interest rate swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract.

The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or if the counterparty defaults, in the case of OTC interest rate contracts, or the central clearing agency or a clearing member defaults, in the case of centrally cleared interest rate swap contracts, on its respective obligation to perform under the contract. The fund’s maximum risk of loss from counterparty risk or central clearing risk is the fair value of the contract. This risk may be mitigated for OTC interest rate swap contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared interest rate swap contracts through the daily exchange of variation margin. There is minimal counterparty risk with respect to centrally cleared interest rate swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

OTC and centrally cleared interest rate swap contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.

Total return swap contracts The fund entered into OTC total return swap contracts, which are arrangements to exchange a market-linked return for a periodic payment, both based on a notional principal amount, for hedging sector exposure, for gaining exposure to specific sectors, for hedging inflation, and for gaining exposure to inflation.

To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. OTC total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain OTC total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

OTC total return swap contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.

Credit default contracts The fund entered into OTC and/or centrally cleared credit default contracts for hedging credit risk, for gaining liquid exposure to individual names, for hedging market risk, and for gaining exposure to specific sectors.

In OTC and centrally cleared credit default contracts, the protection buyer typically makes a periodic stream of payments to a counterparty, the protection seller, in exchange for the right to receive a contingent payment upon the occurrence of a credit event on the reference obligation or all other equally ranked obligations of the reference entity. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring and obligation acceleration. For OTC credit default contracts, an upfront payment received by the fund is recorded as a liability on the fund’s books. An upfront payment made by the fund is recorded as an asset on the fund’s books. Centrally cleared credit default contracts provide the same rights to the protection buyer and seller except the payments between parties, including upfront premiums, are settled through a central clearing agent through variation margin payments. Upfront and periodic payments received or paid by the fund for OTC and centrally

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cleared credit default contracts are recorded as realized gains or losses at the reset date or close of the contract. The OTC and centrally cleared credit default contracts are marked to market daily based upon quotations from an independent pricing service or market makers. Any change in value of OTC credit default contracts is recorded as an unrealized gain or loss. Daily fluctuations in the value of centrally cleared credit default contracts are recorded in variation margin on the Statement of assets and liabilities and recorded as unrealized gain or loss. Upon the occurrence of a credit event, the difference between the par value and fair value of the reference obligation, net of any proportional amount of the upfront payment, is recorded as a realized gain or loss.

In addition to bearing the risk that the credit event will occur, the fund could be exposed to market risk due to unfavorable changes in interest rates or in the price of the underlying security or index or the possibility that the fund may be unable to close out its position at the same time or at the same price as if it had purchased the underlying reference obligations. In certain circumstances, the fund may enter into offsetting OTC and centrally cleared credit default contracts which would mitigate its risk of loss. Risks of loss may exceed amounts recognized on the Statement of assets and liabilities. The fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk may be mitigated for OTC credit default contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared credit default contracts through the daily exchange of variation margin. Counterparty risk is further mitigated with respect to centrally cleared credit default swap contracts due to the clearinghouse guarantee fund and other resources that are available in the event of a clearing member default. Where the fund is a seller of protection, the maximum potential amount of future payments the fund may be required to make is equal to the notional amount.

OTC and centrally cleared credit default contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.

TBA commitments The fund may enter into TBA (to be announced) commitments to purchase securities for a fixed unit price at a future date beyond customary settlement time. Although the unit price and par amount have been established, the actual securities have not been specified. However, it is anticipated that the amount of the commitments will not significantly differ from the principal amount. The fund holds, and maintains until settlement date, cash or high-grade debt obligations in an amount sufficient to meet the purchase price, or the fund may enter into offsetting contracts for the forward sale of other securities it owns. Income on the securities will not be earned until settlement date.

The fund may also enter into TBA sale commitments to hedge its portfolio positions, to sell mortgage-backed securities it owns under delayed delivery arrangements or to take a short position in mortgage-backed securities. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, either equivalent deliverable securities or an offsetting TBA purchase commitment deliverable on or before the sale commitment date are held as “cover” for the transaction, or other liquid assets in an amount equal to the notional value of the TBA sale commitment are segregated. If the TBA sale commitment is closed through the acquisition of an offsetting TBA purchase commitment, the fund realizes a gain or loss. If the fund delivers securities under the commitment, the fund realizes a gain or a loss from the sale of the securities based upon the unit price established at the date the commitment was entered into.

TBA commitments, which are accounted for as purchase and sale transactions, may be considered securities themselves, and involve a risk of loss due to changes in the value of the security prior to the settlement date as well as the risk that the counterparty to the transaction will not perform its obligations. Counterparty risk is mitigated by having a master agreement between the fund and the counterparty.

Unsettled TBA commitments are valued at their fair value according to the procedures described under “Security valuation” above. The contract is marked to market daily and the change in fair value is recorded by the fund as an unrealized gain or loss. Based on market circumstances, Putnam Management will determine whether to take delivery of the underlying securities or to dispose of the TBA commitments prior to settlement.

TBA purchase commitments outstanding at period end, if any, are listed within the fund’s portfolio and TBA sale commitments outstanding at period end, if any, are listed after the fund’s portfolio.

Master agreements The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements that govern OTC derivative and foreign exchange contracts and Master Securities Forward Transaction Agreements that govern transactions involving mortgage-backed and other asset-backed securities that may result in delayed delivery (Master Agreements) with certain counterparties entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is

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held in a segregated account by the fund’s custodian and, with respect to those amounts which can be sold or repledged, are presented in the fund’s portfolio. Collateral posted to the fund which cannot be sold or repledged totaled $1,182,944 at the close of the reporting period.

Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.

With respect to ISDA Master Agreements, termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term or short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund’s future derivative activity.

At the close of the reporting period, the fund had a net liability position of $4,229,955 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $3,996,388 and may include amounts related to unsettled agreements.

Interfund lending The fund, along with other Putnam funds, may participate in an interfund lending program pursuant to an exemptive order issued by the SEC. This program allows the fund to lend to other Putnam funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. Interest earned or paid on the interfund lending transaction will be based on the average of certain current market rates. During the reporting period, the fund did not utilize the program.

Federal taxes It is the policy of the fund to distribute all of its taxable income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.

The fund is subject to the provisions of Accounting Standards Codification 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

The fund may also be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. In some cases, the fund may be entitled to reclaim all or a portion of such taxes, and such reclaim amounts, if any, are reflected as an asset on the fund’s books. In many cases, however, the fund may not receive such amounts for an extended period of time, depending on the country of investment.

At July 31, 2016, the fund had a capital loss carryover of $234,727,957 available to the extent allowed by the Code to offset future net capital gain, if any. For any carryover, the amount of the carryover and that carryover’s expiration date is:

Loss carryover 

Short-term  Long-term  Total  Expiration 

$68,585,963  $20,864,254  $89,450,217  * 

58,742,308  N/A  58,742,308  July 31, 2017 

86,535,432  N/A  86,535,432  July 31, 2018 

 

* Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

 

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Pursuant to federal income tax regulations applicable to regulated investment companies, the Fund has elected to defer certain capital losses of $18,809,232 recognized during the period between November 1, 2015 and July 31, 2016 to its fiscal year ending July 31, 2017.

The aggregate identified cost on a tax basis is $985,279,764, resulting in gross unrealized appreciation and depreciation of $11,462,985 and $35,401,115, respectively, or net unrealized depreciation of $23,938,130.

Distributions to shareholders Distributions to shareholders from net investment income are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Dividend sources are estimated at the time of declaration. Actual results may vary. Any non-taxable return of capital cannot be determined until final tax calculations are completed after the end of the fund’s fiscal year. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations.

Note 2: Management fee, administrative services and other transactions

The fund pays Putnam Management for management and investment advisory services quarterly based on the average net assets (including assets, but excluding liabilities, attributable to leverage for investment purposes) of the fund. The fee is based on the following annual rates:

0.750%  of the first $500 million of average  0.480%  of the next $5 billion of average 
  net assets,    net assets, 


0.650%  of the next $500 million of average  0.470%  of the next $5 billion of average 
  net assets,    net assets, 


0.600%  of the next $500 million of average  0.460%  of the next $5 billion of average 
  net assets,    net assets, 


0.550%  of the next $5 billion of average  0.450%  of the next $5 billion of average 
  net assets,    net assets, 


0.525%  of the next $5 billion of average  0.440%  of the next $5 billion of average 
  net assets,    net assets, 


0.505%  of the next $5 billion of average  0.430%  of the next $8.5 billion of average net 
  net assets,    assets and 


0.490%  of the next $5 billion of average  0.420%  of any excess thereafter. 
  net assets,     


 

For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.371% of the fund’s average net assets.

Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. PIL did not manage any portion of the assets of the fund during the reporting period. If Putnam Management were to engage the services of PIL, Putnam Management would pay a quarterly sub-management fee to PIL for its services at an annual rate of 0.40% of the average net assets (including assets, but excluding liabilities, attributable to leverage for investment purposes) of the portion of the fund managed by PIL.

The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees.

Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.

Putnam Investor Services, Inc., an affiliate of Putnam Management, provides investor servicing agent functions to the fund. Putnam Investor Services, Inc. was paid a monthly fee for investor servicing at an annual rate of 0.05% of the fund’s average daily net assets. The amounts incurred for investor servicing agent functions during the reporting period are included in Investor servicing fees in the Statement of operations.

The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. For the reporting period, the fund’s expenses were reduced by $474 under the expense offset arrangements.

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Each Independent Trustee of the fund receives an annual Trustee fee, of which $459, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.

The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable on or after July 1, 1995. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.

The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.

Note 3: Purchases and sales of securities

During the reporting period, the cost of purchases and the proceeds from sales, excluding short-term investments, were as follows:

  Cost of purchases  Proceeds from sales 

Investments in securities, including TBA commitments (Long-term)  $3,452,563,047  $3,583,571,164 

U.S. government securities (Long-term)     

Total  $3,452,563,047  $3,583,571,164 

 

The fund may purchase or sell investments from or to other Putnam funds in the ordinary course of business, which can reduce the fund’s transaction costs, at prices determined in accordance with SEC requirements and policies approved by the Trustees. During the reporting period, purchases or sales of long-term securities from or to other Putnam funds, if any, did not represent more than 5% of the fund’s total cost of purchases and/or total proceeds from sales.

Written option transactions during the reporting period are summarized as follows:

  Written swap       
  option contract  Written swap  Written option  Written option 
  amounts  option premiums  contract amounts  premiums 

Written options outstanding at the         
beginning of the reporting period  $501,226,900  $6,027,051  $409,000,000  $1,369,453 

Options opened  2,962,518,700  10,028,963  1,406,095,300  6,964,066 

Options exercised  (149,332,200)  (725,429)     

Options expired  (933,823,200)  (1,902,762)     

Options closed  (1,371,642,600)  (5,803,222)  (1,478,667,800)  (6,156,479) 

Written options outstanding at the         
end of the reporting period  $1,008,947,600  $7,624,601  $336,427,500  $2,177,040 

 

Note 4: Shares repurchased

In September 2016, the Trustees approved the renewal of the repurchase program to allow the fund to repurchase up to 10% of its outstanding common shares over the 12-month period ending October 7, 2017 (based on shares outstanding as of October 7, 2016). Prior to this renewal, the Trustees had approved a repurchase program to allow the fund to repurchase up to 10% of its outstanding common shares over the 12-month period ending October 7, 2016 (based on shares outstanding as of October 7, 2015). Repurchases are made when the fund’s shares are trading at less than net asset value and in accordance with procedures approved by the fund’s Trustees.

For the reporting period, the fund repurchased 2,166,339 common shares for an aggregate purchase price of $10,608,061, which reflects a weighted-average discount from net asset value per share of 9.82%. The weighted-average discount reflects the payment of commissions by the fund to execute repurchase trades.

78 Premier Income Trust 

 



For the previous reporting period, the fund repurchased 7,739,760 common shares for an aggregate purchase price of $37,648,101, which reflected a weighted-average discount from net asset value per share of 10.24%. The weighted-average discount reflected the payment of commissions by the fund to execute repurchase trades.

Note 5: Affiliated transactions

Transactions during the reporting period with any company which is under common ownership or control were as follows:

  Fair value at the        Fair value at the 
  beginning of the      Investment  end of the 
Name of affiliate  reporting period  Purchase cost  Sale proceeds  income  reporting period 

Putnam Short Term           
Investment Fund*  $10,615,872  $135,166,734  $112,782,808  $39,368  $32,999,798 

Totals  $10,615,872  $135,166,734  $112,782,808  $39,368  $32,999,798 

 

* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management.

Note 6: Market, credit and other risks

In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default. Investments in foreign securities involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations. The fund may invest in higher-yielding, lower-rated bonds that may have a higher rate of default. The fund may invest a significant portion of its assets in securitized debt instruments, including mortgage-backed and asset-backed investments. The yields and values of these investments are sensitive to changes in interest rates, the rate of principal payments on the underlying assets and the market’s perception of the issuers. The market for these investments may be volatile and limited, which may make them difficult to buy or sell.

Note 7: Senior loan commitments

Senior loans are purchased or sold on a when-issued or delayed delivery basis and may be settled a month or more after the trade date, which from time to time can delay the actual investment of available cash balances; interest income is accrued based on the terms of the securities. Senior loans can be acquired through an agent, by assignment from another holder of the loan, or as a participation interest in another holder’s portion of the loan. When the fund invests in a loan or participation, the fund is subject to the risk that an intermediate participant between the fund and the borrower will fail to meet its obligations to the fund, in addition to the risk that the borrower under the loan may default on its obligations.

Premier Income Trust 79 

 



Note 8: Summary of derivative activity

The volume of activity for the reporting period for any derivative type that was held during the period is listed below and was based on an average of the holdings at the end of each fiscal quarter:

Purchased TBA commitment option contracts (contract amount)  $260,700,000 

Purchased currency options (contract amount)  $15,200,000 

Purchased swap option contracts (contract amount)  $444,400,000 

Written TBA commitment option contracts (contract amount) (Note 3)  $354,100,000 

Written currency options (contract amount) (Note 3)  $15,200,000 

Written swap option contracts (contract amount) (Note 3)  $737,000,000 

Futures contracts (number of contracts)  200 

Forward currency contracts (contract amount)  $491,200,000 

OTC interest rate swap contracts (notional)  $13,000,000 

Centrally cleared interest rate swap contracts (notional)  $1,401,600,000 

OTC total return swap contracts (notional)  $264,300,000 

OTC credit default contracts (notional)  $88,900,000 

Warrants (number of warrants)  6,000 

 

The following is a summary of the fair value of derivative instruments as of the close of the reporting period:

 

Fair value of derivative instruments as of the close of the reporting period   

  ASSET DERIVATIVES  LIABILITY DERIVATIVES 

Derivatives not         
accounted for as  Statement of    Statement of   
hedging instruments  assets and    assets and   
under ASC 815  liabilities location  Fair value  liabilities location  Fair value 

Credit contracts  Receivables  $2,296,693  Payables  $4,039,749 

Foreign exchange  Investments,       
contracts  Receivables  5,654,605  Payables  3,986,826 

Equity contracts  Investments  23,936  Payables   

  Investments,       
  Receivables, Net       
  assets — Unrealized    Payables, Net assets  —   
Interest rate contracts  appreciation  6,357,885*  Unrealized depreciation  12,931,473* 

Total    $14,333,119    $20,958,048 

 

* Includes cumulative appreciation/depreciation of centrally cleared swaps as reported in the fund’s portfolio.

Only current day’s variation margin is reported within the Statement of assets and liabilities.

80 Premier Income Trust 

 



The following is a summary of realized and change in unrealized gains or losses of derivative instruments in the Statement of operations for the reporting period (Note 1):

Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments   

Derivatives not accounted      Forward     
for as hedging instruments      currency     
under ASC 815  Options  Futures  contracts  Swaps  Total 

Credit contracts  $—  $—  $—  $(830,008)  $(830,008) 

Foreign exchange contracts  167,630    4,310,517    $4,478,147 

Interest rate contracts  (9,911,094)  1,747,842    25,428,868  $17,265,616 

Total  $(9,743,464)  $1,747,842  $4,310,517  $24,598,860  $20,913,755 

 

Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss) 
on investments             

Derivatives not accounted        Forward     
for as hedging instruments        currency     
under ASC 815  Warrants  Options  Futures  contracts  Swaps  Total 

Credit contracts  $—  $—  $—  $—  $2,376,255  $2,376,255 

Foreign exchange contracts    20,437    (1,576,388)    $(1,555,951) 

Equity contracts  22,384          $22,384 

Interest rate contracts    (344,090)  442,300    (4,476,419)  $(4,378,209) 

Total  $22,384  $(323,653)  $442,300  $(1,576,388)  $(2,100,164)  $(3,535,521) 

 

Premier Income Trust 81 

 



Note 9: Offsetting of financial and derivative assets and liabilities

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 or borrowing transactions associated with securities sold short, if any, see Note 1. For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to the master netting agreements in the Statement of assets and liabilities.

  Bank of America N.A. Barclays Bank PLC Barclays Capital Inc. (clearing broker) Citibank, N.A. Credit Suisse International Deutsche Bank AG Goldman
Sachs
International
HSBC Bank USA, National Association JPMorgan Chase Bank N.A. JPMorgan Securities LLC Royal Bank of Scotland PLC (The) State Street Bank and Trust Co. UBS AG Wells Fargo Bank, N.A. WestPac Banking Corp. Total
Assets:                                 

OTC Interest rate swap contracts*#  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $— 

Centrally cleared interest rate                                 
swap contracts§      1,541,497                          1,541,497 

OTC Total return swap contracts*#    202,029    22,327  94,476    349,625    258,029  18,573            945,059 

OTC Credit default contracts*#          1,118,836    533,957      643,900            2,296,693 

Forward currency contracts #  842,949  242,964    365,192  143,081    1,007,570  104,485  797,001    450,249  584,367  143,419      4,681,277 

Forward premium swap                                 
option contracts #  40,157  194,320    30,545      11,404              6,910    283,336 

Purchased swap options **#  731,998  62,720    389,351  316,449    204,856    445,281              2,150,655 

Purchased options **#              853,733    1,085,075              1,938,808 

Total Assets  $1,615,104  $702,033  $1,541,497  $807,415  $1,672,842  $—  $2,961,145  $104,485  $2,585,386  $662,473  $450,249  $584,367  $143,419  $6,910  $—  $13,837,325 

Liabilities:                                 

OTC Interest rate swap contracts*#                  938,839              938,839 

Centrally cleared interest rate                                 
swap contracts§      2,569,904                          2,569,904 

OTC Total return swap contracts*#    214,015      41,388  1,817  145,166    15,306  64,371            482,063 

OTC Credit default contracts*#  110,238        2,576,975    789,666      562,870            4,039,749 

Forward currency contracts #  287,437  280,650    484,722  64,616    571,297  85,304  445,425    519,560  440,576  340,897    56,057  3,576,541 

Forward premium swap                                 
option contracts #  79,988        4,928                  2,620    87,536 

Written swap options #  765,395  65,978    137,792  225,084    156,799    2,030,086              3,381,134 

Written options #              382,982    1,820,873              2,203,855 

Total Liabilities  $1,243,058  $560,643  $2,569,904  $622,514  $2,912,991  $1,817  $2,045,910  $85,304  $5,250,529  $627,241  $519,560  $440,576  $340,897  $2,620  $56,057  $17,279,621 

Total Financial and Derivative  $372,046  $141,390  $(1,028,407)  $184,901  $(1,240,149)  $(1,817)  $915,235  $19,181  $(2,665,143)  $35,232  $(69,311)  $143,791  $(197,478)  $4,290  $(56,057)  $(3,442,296) 
Net Assets                                 

Total collateral                                 
received (pledged)†##  $360,271  $—  $—  $(129,987)  $(790,882)  $—  $915,235  $—  $(2,665,143)  $35,232  $—  $143,791  $(109,989)  $—  $—   

Net amount  $11,775  $141,390  $(1,028,407)  $314,888  $(449,267)  $(1,817)  $—  $19,181  $—  $—  $(69,311)  $—  $(87,489)  $4,290  $(56,057)   

 

* Excludes premiums, if any. Included in unrealized appreciation and depreciation on OTC swap contracts on the Statement of assets and liabilities.

** Included with Investments in securities on the Statement of assets and liabilities.

Additional collateral may be required from certain brokers based on individual agreements.

# Covered by master netting agreement (Note 1).

##Any over-collateralization of total financial and derivative net assets is not shown. Collateral may include amounts related to unsettled agreements.

§ Includes current day’s variation margin only as reported on the Statement of assets and liabilities, which is not collateralized. Cumulative appreciation/(depreciation) for futures contracts and centrally cleared swap contracts is represented in the tables listed after the fund’s portfolio.

82 Premier Income Trust  Premier Income Trust 83 

 



Note 10: New pronouncements

In October 2016, the SEC adopted amendments to rules under the Investment Company Act of 1940 (“final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. The final rules amend Regulation S-X and require funds to provide standardized, enhanced derivative disclosure in fund financial statements in a format designed for individual investors. The amendments to Regulation S-X also update the disclosures for other investments and investments in and advances to affiliates and amend the rules regarding the general form and content of fund financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017. Putnam Management is currently evaluating the amendments and their impact, if any, on the fund’s financial statements.

84 Premier Income Trust 

 



Fund information

Founded over 75 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage over 100 funds across income, value, blend, growth, asset allocation, absolute return, and global sector categories.

Investment Manager  Trustees  James F. Clark 
Putnam Investment  Jameson A. Baxter, Chair  Vice President and 
Management, LLC  Kenneth R. Leibler, Vice Chair  Chief Compliance Officer 
One Post Office Square  Liaquat Ahamed   
Boston, MA 02109  Ravi Akhoury  Michael J. Higgins 
  Barbara M. Baumann  Vice President, Treasurer, 
Investment Sub-Advisor  Robert J. Darretta  and Clerk 
Putnam Investments Limited  Katinka Domotorffy   
57–59 St James’s Street  Catharine Hill  Janet C. Smith 
London, England SW1A 1LD  John A. Hill  Vice President, 
  Paul L. Joskow  Principal Financial Officer, 
Marketing Services  Robert E. Patterson  Principal Accounting Officer, 
Putnam Retail Management  George Putnam, III  and Assistant Treasurer 
One Post Office Square  Robert L. Reynolds   
Boston, MA 02109  Manoj Singh  Susan G. Malloy 
  W. Thomas Stephens  Vice President and 
Custodian    Assistant Treasurer 
State Street Bank  Officers   
and Trust Company  Robert L. Reynolds  Mark C. Trenchard 
  President  Vice President and 
Legal Counsel    BSA Compliance Officer 
Ropes & Gray LLP  Jonathan S. Horwitz   
  Executive Vice President,  Nancy E. Florek 
  Principal Executive Officer,  Vice President, Director of 
  and Compliance Liaison  Proxy Voting and Corporate 
    Governance, Assistant Clerk, 
  Robert T. Burns  and Associate Treasurer 
  Vice President and   
  Chief Legal Officer   

 

Call 1-800-225-1581 Monday through Friday between 8:00 a.m. and 8:00 p.m. Eastern Time, or visit putnam.com anytime for up-to-date information about the fund’s NAV.




Item 2. Code of Ethics:
Not Applicable
Item 3. Audit Committee Financial Expert:
Not Applicable
Item 4. Principal Accountant Fees and Services:
Not Applicable
Item 5. Audit Committee
Not Applicable
Item 6. Schedule of Investments:
The registrant's schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.
Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:
Not applicable
Item 8. Portfolio Managers of Closed-End Management Investment Companies
(a) Not applicable
(a)(1) Portfolio Managers. Effective February 28, 2017, Robert Davis and Brett Koslowski were added as portfolio managers of the fund.


Portfolio managers Joined Fund Employer Positions Over Past Five Years

Robert Davis 2017 Putnam Management 1999-Present Portfolio Manager Previously, Analyst
Brett Kozlowski 2017 Putnam Management 2008-Present Portfolio Manager Previously, Structured Credit Specialist

(a)(2) Other Accounts Managed by the Fund's Portfolio Managers.
The following table shows the number and approximate assets of other investment accounts (or portions of investment accounts) that Robert Davis and Brett Kozlowski managed as of the fund's most recent fiscal year-end. Unless noted, none of the other accounts pays a fee based on the account's performance.


Portfolio Leader or Member Other SEC-registered open-end and closed-end funds Other accounts that pool assets from more than one client Other accounts (including separate accounts, managed account programs and single-sponsor defined contribution plan offerings)

Number of accounts Assets Number of accounts Assets Number of accounts Assets
Brett Kozlowski 12 $3,025,800,000 15 $4,157,100,000 11 $2,821,600,000
Robert Davis 7 ($7,900,000) 7 $1,200,000 4 ($355,300,000)

Potential conflicts of interest in managing multiple accounts. Like other investment professionals with multiple clients, the fund's Portfolio Managers may face certain potential conflicts of interest in connection with managing both the fund and the other accounts listed under “Other Accounts Managed by the Fund's Portfolio Managers” at the same time. The paragraphs below describe some of these potential conflicts, which Putnam Management believes are faced by investment professionals at most major financial firms. As described below, Putnam Management and the Trustees of the Putnam funds have adopted compliance policies and procedures that attempt to address certain of these potential conflicts.

The management of accounts with different advisory fee rates and/or fee structures, including accounts that pay advisory fees based on account performance (“performance fee accounts”), may raise potential conflicts of interest by creating an incentive to favor higher-fee accounts. These potential conflicts may include, among others:


The most attractive investments could be allocated to higher-fee accounts or performance fee accounts.

The trading of higher-fee accounts could be favored as to timing and/or execution price. For example, higher-fee accounts could be permitted to sell securities earlier than other accounts when a prompt sale is desirable or to buy securities at an earlier and more opportune time.

The trading of other accounts could be used to benefit higher-fee accounts (front- running).

The investment management team could focus their time and efforts primarily on higher-fee accounts due to a personal stake in compensation.
Putnam Management attempts to address these potential conflicts of interest relating to higher-fee accounts through various compliance policies that are generally intended to place all accounts, regardless of fee structure, on the same footing for investment management purposes. For example, under Putnam Management's policies:


Performance fee accounts must be included in all standard trading and allocation procedures with all other accounts.

All accounts must be allocated to a specific category of account and trade in parallel with allocations of similar accounts based on the procedures generally applicable to all accounts in those groups (e.g., based on relative risk budgets of accounts).

All trading must be effected through Putnam's trading desks and normal queues and procedures must be followed (i.e., no special treatment is permitted for performance fee accounts or higher-fee accounts based on account fee structure).

Front running is strictly prohibited.

The fund's Portfolio Manager(s) may not be guaranteed or specifically allocated any portion of a performance fee.
As part of these policies, Putnam Management has also implemented trade oversight and review procedures in order to monitor whether particular accounts (including higher-fee accounts or performance fee accounts) are being favored over time.

Potential conflicts of interest may also arise when the Portfolio Manager(s) have personal investments in other accounts that may create an incentive to favor those accounts. As a general matter and subject to limited exceptions, Putnam Management's investment professionals do not have the opportunity to invest in client accounts, other than the Putnam funds. However, in the ordinary course of business, Putnam Management or related persons may from time to time establish “pilot” or “incubator” funds for the purpose of testing proposed investment strategies and products prior to offering them to clients. These pilot accounts may be in the form of registered investment companies, private funds such as partnerships or separate accounts established by Putnam Management or an affiliate. Putnam Management or an affiliate supplies the funding for these accounts. Putnam employees, including the fund's Portfolio Manager(s), may also invest in certain pilot accounts. Putnam Management, and to the extent applicable, the Portfolio Manager(s) will benefit from the favorable investment performance of those funds and accounts. Pilot funds and accounts may, and frequently do, invest in the same securities as the client accounts. Putnam Management's policy is to treat pilot accounts in the same manner as client accounts for purposes of trading allocation — neither favoring nor disfavoring them except as is legally required. For example, pilot accounts are normally included in Putnam Management's daily block trades to the same extent as client accounts (except that pilot accounts do not participate in initial public offerings).

A potential conflict of interest may arise when the fund and other accounts purchase or sell the same securities. On occasions when the Portfolio Manager(s) consider the purchase or sale of a security to be in the best interests of the fund as well as other accounts, Putnam Management's trading desk may, to the extent permitted by applicable laws and regulations, aggregate the securities to be sold or purchased in order to obtain the best execution and lower brokerage commissions, if any. Aggregation of trades may create the potential for unfairness to the fund or another account if one account is favored over another in allocating the securities purchased or sold — for example, by allocating a disproportionate amount of a security that is likely to increase in value to a favored account. Putnam Management's trade allocation policies generally provide that each day's transactions in securities that are purchased or sold by multiple accounts are, insofar as possible, averaged as to price and allocated between such accounts (including the fund) in a manner which in Putnam Management's opinion is equitable to each account and in accordance with the amount being purchased or sold by each account. Certain exceptions exist for specialty, regional or sector accounts. Trade allocations are reviewed on a periodic basis as part of Putnam Management's trade oversight procedures in an attempt to ensure fairness over time across accounts.

“Cross trades,” in which one Putnam account sells a particular security to another account (potentially saving transaction costs for both accounts), may also pose a potential conflict of interest. Cross trades may be seen to involve a potential conflict of interest if, for example, one account is permitted to sell a security to another account at a higher price than an independent third party would pay, or if such trades result in more attractive investments being allocated to higher-fee accounts. Putnam Management and the fund's Trustees have adopted compliance procedures that provide that any transactions between the fund and another Putnam-advised account are to be made at an independent current market price, as required by law.

Another potential conflict of interest may arise based on the different investment objectives and strategies of the fund and other accounts. For example, another account may have a shorter-term investment horizon or different investment objectives, policies or restrictions than the fund. Depending on another account's objectives or other factors, the Portfolio Manager(s) may give advice and make decisions that may differ from advice given, or the timing or nature of decisions made, with respect to the fund. In addition, investment decisions are the product of many factors in addition to basic suitability for the particular account involved. Thus, a particular security may be bought or sold for certain accounts even though it could have been bought or sold for other accounts at the same time. More rarely, a particular security may be bought for one or more accounts managed by the Portfolio Manager(s) when one or more other accounts are selling the security (including short sales). There may be circumstances when purchases or sales of portfolio securities for one or more accounts may have an adverse effect on other accounts. As noted above, Putnam Management has implemented trade oversight and review procedures to monitor whether any account is systematically favored over time.

The fund's Portfolio Manager(s) may also face other potential conflicts of interest in managing the fund, and the description above is not a complete description of every conflict that could be deemed to exist in managing both the fund and other accounts.

(a)(3) Compensation of portfolio managers. Putnam's goal for our products and investors is to deliver strong performance versus peers or performance ahead of the applicable benchmark, depending on the product, over a rolling 3-year period. Portfolio managers are evaluated and compensated, in part, based on their performance relative to this goal across the products they manage. In addition to their individual performance, evaluations take into account the performance of their group and a subjective component.

Each portfolio manager is assigned an industry competitive incentive compensation target consistent with this goal and evaluation framework. Actual incentive compensation may be higher or lower than the target, based on individual, group, and subjective performance, and may also reflect the performance of Putnam as a firm. Typically, performance is measured over the lesser of three years or the length of time a portfolio manager has managed a product.

Incentive compensation includes a cash bonus and may also include grants of deferred cash, stock or options. In addition to incentive compensation, portfolio managers receive fixed annual salaries typically based on level of responsibility and experience.

For this fund, the peer group Putnam compares fund performance against is its broad investment category as determined by Lipper Inc. and identified in the shareholder report included in Item 1.

(a)(4) Fund ownership. The following table shows the dollar ranges of shares of the fund owned by the professionals listed above at January 31, 2017, including investments by their immediate family members and amounts invested through retirement and deferred compensation plans.


*   : Assets in the fund
Period ended$0$0-$10,000$10,001-$50,000$50,001-$100,000$100,001-$500,000$500,001-$1,000,000$1,000,001 and over

Robert Davis2017*
Brett Kozlowski2017*
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:


Registrant Purchase of Equity Securities
Maximum
Total Number Number (or
of Shares Approximate
Purchased Dollar Value)
as Part of Shares
of Publicly that May Yet Be
Total Number Average Announced Purchased
of Shares Price Paid Plans or under the Plans
Period Purchased per Share Programs* or Programs**

August 1 — August 31, 2016 101,700 $4.89 101,700 5,703,582
September 1 — September 30, 2016 146,722 $4.84 146,722 5,556,860
October 1 — October 7, 2016 5,556,860
October 8 — October 31, 2016 426,876 $4.88 426,876 10,490,348
November 1 — November 30, 2016 718,421 $4.83 718,421 9,771,927
December 1 — December 31, 2016 659,569 $4.97 659,569 9,112,358
January 1 — January 31, 2017 113,051 $5.05 113,051 8,999,307


*   In October 2005, the Board of Trustees of the Putnam Funds initiated the closed-end fund share repurchase program, which, as subsequently amended, authorized the fund to repurchase of up to 10% of its fund's outstanding common shares over the two-years ending October 5, 2007. The Trustees have subsequently renewed the program on an annual basis. The program renewed by the Board in September 2015, which was in effect between October 8, 2015 and October 7, 2016, allowed the fund to repurchase up to 11,512,820 of its shares. The program renewed by the Board in September 2016, which is in effect between October 8, 2016 and October 7, 2017, allows the fund to repurchase up to 10,917,224 of its shares.

** 

Information prior to October 7, 2016 is based on the total number of shares eligible for repurchase under the program, as amended through September 2015. Information from October 8, 2016 forward is based on the total number of shares eligible for repurchase under the program, as amended through September 2016.

Item 10. Submission of Matters to a Vote of Security Holders:
Not applicable
Item 11. 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 12. Exhibits:
(a)(1) Not applicable
(a)(2) 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.

(b) The certifications required by Rule 30a-2(b) 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 Premier Income Trust
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer

Date: March 31, 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: March 31, 2017
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer

Date: March 31, 2017