-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IQ+Bvi9AvS9KvrHJNivsNscM6f8LwzsH/YJct+KXEb//xX2Cf6NokZjZgwUTQ8yw wXBQavnUSeeF44VX241o/w== 0000928816-04-000987.txt : 20040928 0000928816-04-000987.hdr.sgml : 20040928 20040928112204 ACCESSION NUMBER: 0000928816-04-000987 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040731 FILED AS OF DATE: 20040928 DATE AS OF CHANGE: 20040928 EFFECTIVENESS DATE: 20040928 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM UTILITIES GROWTH & INCOME FUND CENTRAL INDEX KEY: 0000867824 IRS NUMBER: 046660195 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05989 FILM NUMBER: 041048679 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQUARE CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6172921000 N-Q 1 pug1.txt PUTNAM UTILITIES GROWTH & INCOME FUND Item 1. Schedule of Investments: - -------------------------------- Putnam Utilities Growth and Income Fund QUARTERLY PORTFOLIO HOLDINGS 7-31-04 [LOGO OMITTED: scales]
Putnam Utilities Growth and Income Fund - ----------------------------------------------------------------------------------------------------------- The fund's portfolio July 31, 2004 (Unaudited) Common stocks (90.5%) (a) - ----------------------------------------------------------------------------------------------------------- Number of shares Value - ----------------------------------------------------------------------------------------------------------- Electric Utilities (54.8%) - ----------------------------------------------------------------------------------------------------------- 177,700 Alliant Energy Corp. $4,604,207 181,620 Ameren Corp. 8,116,598 216,637 American Electric Power Co., Inc. (S) 6,739,577 180,800 CMS Energy Corp. (NON) 1,632,624 162,000 Consolidated Edison, Inc. (S) 6,637,140 400,297 Dominion Resources, Inc. 25,402,848 144,139 DTE Energy Co. (S) 5,790,064 720,135 Edison International 19,299,618 12,086 Electrabel SA (Belgium) 3,820,918 650,403 Electricidade de Portugal SA (Portugal) 1,738,305 132,147 Energy East Corp. (S) 3,219,101 444,187 Entergy Corp. 25,540,753 778,902 Exelon Corp. 27,183,680 237,378 FirstEnergy Corp. 9,281,480 262,754 FPL Group, Inc. (S) 17,691,227 84,300 Great Plains Energy, Inc. 2,418,567 47,400 Hawaiian Electric Industries, Inc. (S) 1,210,122 82,193 Iberdrola SA (Spain) 1,682,187 95,730 Korea Electric Power Corp. (South Korea) 1,609,148 101,333 Northeast Utilities (S) 1,894,927 21,600 NSTAR 1,010,880 910,404 PG&E Corp. (NON) 25,982,930 192,005 Pinnacle West Capital Corp. (S) 7,776,203 47,547 PNM Resources, Inc. 990,879 257,700 PPL Corp. 11,944,395 218,113 Progress Energy, Inc. (S) 9,191,282 114,907 Public Service Enterprise Group, Inc. (S) 4,481,373 90,797 Puget Energy, Inc. 1,961,215 138,900 SCANA Corp. (S) 5,086,518 1,772,881 Sierra Pacific Resources (NON) (S) 14,573,082 321,921 Southern Co. (The) (S) 9,425,847 165,043 Teco Energy, Inc. (S) 2,129,055 50,184 Westar Energy, Inc. 1,012,211 188,000 Wisconsin Energy Corp. 6,044,200 29,700 WPS Resources Corp. 1,362,933 313,845 XCEL Energy, Inc. (S) 5,366,750 ------------- 283,852,844 Natural Gas Utilities (6.5%) - ----------------------------------------------------------------------------------------------------------- 612,980 Dynegy, Inc. Class A (NON) (S) 2,574,516 36,400 Energen Corp. 1,723,540 117,097 Equitable Resources, Inc. 6,004,734 39 KeySpan Corp. 1,404 179,250 MDU Resources Group, Inc. 4,382,663 49,344 National Fuel Gas Co. 1,260,246 205,690 NiSource, Inc. 4,257,783 59,235 ONEOK, Inc. (S) 1,243,935 70,600 Questar Corp. 2,893,188 136,700 Sempra Energy 4,887,025 113,162 Southern Union Co. (NON) (S) 2,253,055 97,218 Vectren Corp. (S) 2,406,146 ------------- 33,888,235 Oil & Gas (0.3%) - ----------------------------------------------------------------------------------------------------------- 38,100 Enbridge, Inc. (Canada) (S) 1,441,704 Power Producers (0.5%) - ----------------------------------------------------------------------------------------------------------- 920,070 International Power PLC (United Kingdom) (NON) 2,454,939 Regional Bells (7.1%) - ----------------------------------------------------------------------------------------------------------- 256,144 BellSouth Corp. 6,938,941 485,100 SBC Communications, Inc. (SEG) 12,292,434 457,836 Verizon Communications, Inc. 17,644,999 ------------- 36,876,374 Telecommunications (20.4%) - ----------------------------------------------------------------------------------------------------------- 42,000 ALLTEL Corp. 2,184,000 117,935 AT&T Wireless Services, Inc. (NON) 1,702,981 75,767 CenturyTel, Inc. 2,348,019 5,022,000 China Telecom Corp., Ltd. (China) 1,674,086 509,762 Deutsche Telekom AG (Germany) (NON) 8,530,464 248,832 France Telecom SA (France) (NON) 6,165,127 251,250 Koninklijke (Royal) KPN NV (Netherlands) 1,857,226 87,380 KT Corp. ADR (South Korea) (S) 1,554,490 549,664 mmO2 PLC (United Kingdom) (NON) 894,462 168,700 Nextel Communications, Inc. Class A (NON) 3,839,612 1,247 Nippon Telegraph and Telephone Corp. (NTT) (Japan) 6,209,825 1,796 NTT DoCoMo, Inc. (Japan) 3,126,281 140,752 Portugal Telecom SGPS SA ADR (Portugal) 1,441,300 89,070 SK Telecom Co., Ltd. ADR (South Korea) (S) 1,572,976 278,600 Sprint Corp. (FON Group) (S) 5,204,248 29,100 TDC A/S 144A (Denmark) 947,192 61,400 Tele Norte Leste Participacoes SA ADR (Brazil) 801,884 650,493 Telecom Corp. of New Zealand, Ltd. (New Zealand) 2,521,974 634,063 Telecom Italia Mobile SpA (Italy) 3,374,000 3,069,513 Telecom Italia SpA (Italy) 9,109,128 644,448 Telefonica SA (Spain) 9,395,555 9,486 Telefonos de Mexico SA de CV (Telmex) ADR Class L (Mexico) 292,928 48,400 Telenor ASA (Norway) 329,929 270,737 Telus Corp. (Canada) 4,665,772 12,054,011 Vodafone Group PLC (United Kingdom) 26,135,549 ------------- 105,879,008 Telephone (0.2%) - ----------------------------------------------------------------------------------------------------------- 37,969 Belgacom SA (Belgium) (NON) 1,166,085 Water Utilities (0.7%) - ----------------------------------------------------------------------------------------------------------- 180,937 Aqua America, Inc. (S) 3,519,225 ------------- Total Common stocks (cost $409,566,088) $469,078,414 Corporate bonds and notes (7.8%) (a) - ----------------------------------------------------------------------------------------------------------- Principal amount Value - ----------------------------------------------------------------------------------------------------------- Cable Television (--%) - ----------------------------------------------------------------------------------------------------------- $120,000 Rogers Cable Inc. sec. notes 6 1/4s, 2013 (Canada) $115,601 Electric Utilities (3.4%) - ----------------------------------------------------------------------------------------------------------- 810,000 AEP Texas Central Co. sr. notes Ser. D, 5 1/2s, 2013 818,992 170,000 Appalachian Power Co. notes 3.6s, 2008 166,397 510,000 Arizona Public Services Co. notes 6 1/2s, 2012 549,199 50,000 CenterPoint Energy Houston Electric LLC general ref. mtge. Ser. M2, 5 3/4s, 2014 51,706 95,000 Cleveland Electric Illuminating Co. (The) sec. notes Ser. D, 7.43s, 2009 106,382 430,000 Connecticut Light & Power Co. 1st mtge. Ser. D, 7 7/8s, 2024 526,108 585,000 Consumers Energy Co. 1st mtge. Ser. B, 5 3/8s, 2013 582,103 50,000 Dayton Power & Light Co. (The) 144A 1st mtge. 5 1/8s, 2013 48,387 180,000 Detroit Edison Co. sec. notes 5.2s, 2012 180,271 1,155,000 Dominion Resources, Inc. sr. notes 8 1/8s, 2010 1,344,927 650,000 Duke Capital Corp. sr. notes Ser. A, 6 1/4s, 2005 670,870 275,000 Duquesne Light Co. 1st mtge. Ser. O, 6.7s, 2012 301,256 525,000 Entergy Arkansas Inc. 1st mtge. 5.4s, 2018 503,829 860,000 Exelon Generation Co., LLC sr. notes 6.95s, 2011 949,736 660,000 FirstEnergy Corp. notes Ser. B, 6.45s, 2011 698,104 645,000 Florida Power & Light Co. 1st mtge. 5.95s, 2033 647,165 320,000 Florida Power & Light Co. 1st mtge. 5 5/8s, 2034 306,636 465,000 Florida Power Corp. 1st mtge. 5.9s, 2033 449,116 155,000 Indianapolis Power & Light 144A 1st mtge. 6.3s, 2013 161,131 100,000 Kansas Gas & Electric 1st mtge. 6.2s, 2006 103,001 975,000 Mission Energy Holding Co. sec. notes 13 1/2s, 2008 1,209,000 195,000 Monongahela Power Co. 1st mtge. 5s, 2006 199,328 105,000 Nevada Power Co. 2nd mtge. 9s, 2013 117,075 140,000 New York State Electric & Gas Corp. bonds 5 3/4s, 2023 132,962 740,000 Niagara Mohawk Power Corp. sr. notes Ser. G, 7 3/4s, 2008 834,973 10,000 NiSource Finance Corp. company guaranty 7 7/8s, 2010 11,582 390,000 Oncor Electric Delivery Co. sec. notes 7 1/4s, 2033 439,562 355,000 Oncor Electric Delivery Co. sec. notes 6 3/8s, 2012 383,948 105,000 Pacific Gas & Electric Co. 1st mtge. 6.05s, 2034 100,998 845,000 Pacific Gas & Electric Co. 1st mtge. 4.8s, 2014 809,980 70,000 PacifiCorp Sinking Fund 1st mtge. 5.45s, 2013 71,631 55,000 Panhandle Eastern Pipe Line sr. notes 4.8s, 2008 55,117 470,000 Pepco Holdings, Inc. notes 5 1/2s, 2007 486,452 135,000 Potomac Edison Co. 1st mtge. 8s, 2024 135,825 193,977 Power Receivable Finance LLC 144A sr. notes 6.29s, 2012 198,537 75,000 Powergen U.S. Funding, LLC company guaranty 4 1/2s, 2004 75,379 10,000 PP&L Capital Funding, Inc. company guaranty Ser. D, 8 3/8s, 2007 11,170 655,000 Progress Energy, Inc. sr. notes 6.05s, 2007 691,607 510,000 PSEG Power, LLC company guaranty 6.95s, 2012 557,951 50,000 Public Service Company of New Mexico sr. notes 4.4s, 2008 49,922 240,000 Public Service Electric & Gas Co. 1st mtge. FRN 6 3/8s, 2008 258,045 248,000 Public Services Co. of Colorado sr. notes Ser. A, 6 7/8s, 2009 275,119 150,000 Rochester Gas & Electric notes 6 3/8s, 2033 153,374 55,000 Southern California Edison Co. 1st mtge. 6s, 2034 53,918 120,000 Southern California Edison Co. 1st mtge. 5s, 2014 118,522 275,000 Southern Power Co. sr. notes Ser. D, 4 7/8s, 2015 258,066 260,000 Tampa Electric Co. notes 6 7/8s, 2012 284,705 225,000 Western Resources, Inc. 1st mtge. 7 7/8s, 2007 247,985 195,000 Wisconsin Electric Power notes 4 1/2s, 2013 187,777 ------------- 17,575,826 Natural Gas Utilities (0.2%) - ----------------------------------------------------------------------------------------------------------- 95,000 CenterPoint Energy Resources Corp. debs. 8.9s, 2006 106,520 120,000 CenterPoint Energy Resources Corp. notes 7 3/4s, 2011 136,787 170,000 Duke Energy Field Services, LLC notes 7 7/8s, 2010 195,793 260,000 National Fuel Gas Co. notes 5 1/4s, 2013 258,499 240,000 Texas Eastern Transmission LP sr. notes 7s, 2032 259,941 ------------- 957,540 Oil & Gas (0.2%) - ----------------------------------------------------------------------------------------------------------- 240,000 Canadian Natural Resources, Ltd. sr. notes 5.45s, 2012 (Canada) 245,393 15,000 Kerr-McGee Corp. company guaranty 6 7/8s, 2011 16,295 430,000 MidAmerican Energy Holdings Co. sr. notes 4 5/8s, 2007 436,211 90,000 Motiva Enterprises, LLC 144A sr. notes 5.2s, 2012 90,417 ------------- 788,316 Regional Bells (0.5%) - ----------------------------------------------------------------------------------------------------------- 250,000 Ameritech Capital Funding company guaranty 6 1/4s, 2009 267,444 390,000 Bellsouth Capital Funding notes 7 3/4s, 2010 446,884 25,000 Michigan Bell Telephone Co. debs. 7.85s, 2022 28,704 815,000 Verizon Global Funding Corp. notes 7 1/4s, 2010 917,728 835,000 Verizon New England Inc. sr. notes 6 1/2s, 2011 900,037 ------------- 2,560,797 Telecommunications (2.8%) - ----------------------------------------------------------------------------------------------------------- 160,000 AT&T Wireless Services, Inc. sr. notes 8 3/4s, 2031 199,154 1,740,000 AT&T Wireless Services, Inc. sr. notes 7 7/8s, 2011 1,999,855 840,000 British Telecommunications PLC notes 8 3/8s, 2010 (United Kingdom) 990,780 450,000 Cingular Wireless, LLC sr. notes 5 5/8s, 2006 471,201 410,000 Deutsche Telekom International Finance BV bonds 8 1/2s, 2010 (Netherlands) 483,577 1,625,000 Deutsche Telekom International Finance BV company guaranty 8 3/4s, 2030 (Netherlands) 2,012,091 195,000 Deutsche Telekom International Finance BV notes 5 1/4s, 2013 (Netherlands) 193,129 490,000 France Telecom notes 9 1/2s, 2031 (France) 623,888 995,000 France Telecom notes 7 3/4s, 2011 (France) 1,160,934 105,000 Koninklijke (Royal) KPN NV sr. unsub. notes 8 3/8s, 2030 (Netherlands) 129,204 380,000 Koninklijke (Royal) KPN NV sr. unsub. notes 8s, 2010 (Netherlands) 442,022 1,805,000 Sprint Capital Corp. company guaranty 7 5/8s, 2011 2,026,995 720,000 Sprint Capital Corp. company guaranty 6 7/8s, 2028 716,531 425,000 Sprint Capital Corp. company guaranty 6 1/8s, 2008 450,209 45,000 Sprint Capital Corp. notes 8 3/8s, 2012 52,724 150,000 Telecom Italia Capital 144A company guaranty 6 3/8s, 2033 (Luxembourg) 147,636 70,000 Telecom Italia Capital 144A company guaranty 5 1/4s, 2013 (Luxembourg) 68,643 230,000 Telecom Italia Capital 144A company guaranty 4s, 2008 (Luxembourg) 227,307 105,000 United States Cellular Corp. notes 6.7s, 2033 100,645 570,000 Verizon Wireless, Inc. notes 5 3/8s, 2006 597,370 75,000 Vodafone Group PLC notes 7 7/8s, 2030 (United Kingdom) 90,063 1,085,000 Vodafone Group PLC notes 7 3/4s, 2010 (United Kingdom) 1,251,231 ------------- 14,435,189 Telephone (0.7%) - ----------------------------------------------------------------------------------------------------------- 2,305,000 New England Telephone & Telegraph Co. debs. 7 7/8s, 2029 2,677,912 950,000 Telefonica Europe BV company guaranty 7 3/4s, 2010 (Netherlands) 1,097,662 ------------- 3,775,574 ------------- Total Corporate bonds and notes (cost $38,893,428) $40,208,843 Warrants (0.1%) (a) (NON) (cost $707,972) - ----------------------------------------------------------------------------------------------------------- Number of warrants Expiration date Value - ----------------------------------------------------------------------------------------------------------- 5,011 SK Telecom 144A 7/15/2005 $681,565 Short-term investments (11.8%) (a) - ----------------------------------------------------------------------------------------------------------- Principal amount Value - ----------------------------------------------------------------------------------------------------------- $52,149,122 Short-term investments held as collateral for loaned securities with yields ranging from 1.28% to 1.52% and due dates ranging from August 2, 2004 to August 23, 2004 (d) $52,130,390 8,818,759 Putnam Prime Money Market Fund (e) 8,818,759 ------------- Total Short-term investments (cost $60,949,149) $60,949,149 - ----------------------------------------------------------------------------------------------------------- Total Investments (cost $510,116,637) (b) $570,917,971 - ----------------------------------------------------------------------------------------------------------- Forward currency contracts to buy at July 31, 2004 (Unaudited) (aggregate face value $8,387,033) Unrealized Aggregate Delivery appreciation/ Value face value date (depreciation) - ----------------------------------------------------------------------------------------- Australian Dollar $185,342 $185,209 9/15/04 $133 Danish Krone 316,041 320,611 9/15/04 (4,570) Hong Kong Dollar 2,347,250 2,349,765 9/15/04 (2,515) Japanese Yen 1,433,664 1,422,638 9/15/04 11,026 Norwegian Krone 614,119 644,128 9/15/04 (30,009) Swedish Krona 2,000,324 2,060,213 9/15/04 (59,889) Swiss Franc 1,398,767 1,404,469 9/15/04 (5,702) - ----------------------------------------------------------------------------------------- $(91,526) - ----------------------------------------------------------------------------------------- Forward currency contracts to sell at July 31, 2004 (Unaudited) (aggregate face value $19,214,240) Unrealized Aggregate Delivery appreciation/ Value face value date (depreciation) - ----------------------------------------------------------------------------------------- British Pound $981,749 $1,004,376 9/15/04 $22,627 Canadian Dollar 3,896,144 3,802,062 9/15/04 (94,082) Euro 12,436,231 12,493,734 9/15/04 57,503 Mexican Peso 25,545 25,004 9/15/04 (541) New Zealand Dollar 1,908,918 1,889,064 9/15/04 (19,854) - ----------------------------------------------------------------------------------------- $(34,347) - ----------------------------------------------------------------------------------------- Futures contracts outstanding at July 31, 2004 (Unaudited) Unrealized Aggregate Expiration appreciation/ Value face value date (depreciation) - ----------------------------------------------------------------------------------------- U.S. Treasury Bond (Long) $2,597,250 $2,505,889 Sep-04 $91,361 U.S. Treasury Note 5 yr (Short) 4,161,000 4,117,479 Sep-04 (43,521) - ----------------------------------------------------------------------------------------- $47,840 - ----------------------------------------------------------------------------------------- Credit default contracts outstanding at July 31, 2004 (Unaudited) (premiums received $1,946) Notional amount Value - ----------------------------------------------------------------------------------------- Agreement with Merrill Lynch International effective July 01, 2004, maturing on July 1, 2007, to receive a premium equal to 1.4413% times the notional amount. Upon a credit default event of Consolidated Natural Gas, 6.625%, December 12, 2008, the fund makes a payment of the proportional notional amount times the difference between the par value and the then-market value of Consolidated Natural Gas, 6.625%, December 12, 2008. $135,000 $1,899 - -----------------------------------------------------------------------------------------
NOTES (a) Percentages indicated are based on net assets of $518,313,483. (b) The aggregate identified cost on a tax basis is $515,123,631, resulting in gross unrealized appreciation and depreciation of $72,719,419 and $16,925,079, respectively, or net unrealized appreciation of $55,794,340. (NON) Non-income-producing security. (SEG) A portion of this security was pledged and segregated with the custodian to cover margin requirements for futures contracts at July 31, 2004. (S) Securities on loan, in part or in entirety, at July 31, 2004. (d) The fund may lend securities, through its agents, to qualified borrowers in order to earn additional income. The loans are collateralized by cash and/or securities in an amount at least equal to the market value of the securities loaned. The market value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The risk of borrower default will be borne by the fund's agents; the fund will bear the risk of loss with respect to the investment of the cash collateral. Income from securities lending is included in investment income on the statement of operations. At July 31, 2004, the value of securities loaned amounted to $49,585,188. The fund received cash collateral of $52,130,390 which is pooled with collateral of other Putnam funds into 29 issuers of high grade short-term investments. (e) The fund invests in the Putnam Prime Money Market Fund, an open-end management investment company managed by Putnam Investment Management, LLC ("Putnam Management"), the fund's manager, an indirect wholly-owned subsidiary of Putnam, LLC. Management fees paid by the fund are reduced by an amount equal to the management fees paid by Putnam Prime Money Market Fund with respect to assets invested by the fund in Putnam Prime Money Market Fund. Income distributions earned by the fund totaled $23,724 for the period ended July, 31, 2004. 144A after the name of a security represents those exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. ADR after the name of a foreign holding stands for American Depositary Receipts, representing ownership of foreign securities on deposit with a custodian bank. The rates shown on Floating Rate Notes (FRN) are the current interest rates at July 31, 2004. Security valuation Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets. If no sales are reported -- as in the case of some securities traded over-the-counter-- a security is valued at its last reported bid price. Market quotations are not considered to be readily available for certain debt obligations; such investments are valued at fair value on the basis of valuations furnished by an independent pricing service or dealers, approved by the Trustees. 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. Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign securities taking into account multiple factors, including movements in the U.S. securities markets. 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 are translated into U.S. dollars at the current exchange rate. Short-term investments having remaining maturities of 60 days or less are valued at amortized cost, which approximates fair value. Other investments, including restricted securities, are valued at fair value following procedures approved by the Trustees. Such valuations and procedures are reviewed periodically by the Trustees. Forward currency contracts The fund may buy and sell 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 to protect against a decline in value relative to the U.S. dollar of the currencies in which its portfolio securities are denominated or quoted (or an increase in the value of a currency in which securities a fund intends to buy are denominated, when a fund holds cash reserves and short term investments). The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in market value is recorded as an unrealized gain or loss. 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. 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. Futures and options contracts The fund may use futures and options contracts to hedge against changes in the values of securities the fund owns or expects to purchase. The fund may also write options on securities it owns or in which it may invest to increase its current returns. The potential risk to the fund is that the change in value of futures and 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, or if the counterparty to the contract is unable to perform. 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. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. 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." 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. Options traded over-the-counter are valued using prices supplied by dealers. Futures and written option contracts outstanding at period end, if any, are listed after the fund's portfolio. Credit default contracts The fund may enter into credit default contracts where one party, the protection buyer, makes an upfront payment to a counter party, the protection seller, in exchange for the right to receive a contingent payment. The maximum amount of the payment may equal the notional amount, at par, of the underlying index or security as a result of a related credit event. An upfront payment received by the fund, as the protection seller, is recorded as a liability on the fund's books. An upfront payment made by the fund, as the protection buyer, is recorded as an asset on the fund's books. The credit default contracts are marked to market daily based upon quotations from market makers and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses. 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, 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 comparable publicly traded securities or that the counterparty may default on its obligation to perform. The risk of loss may exceed the fair value of these contracts recognized on the statement of assets and liabilities. Credit default contracts outstanding at period end, if any, are listed after the fund's portfolio. For additional information regarding the fund please see the fund's most recent annual or semi-annual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov., or visit Putnam Individual Investor Website at www.putnaminvestments.com. Item 2. Controls and Procedures: - -------------------------------- (a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms. (b) Changes in internal control over financial reporting: Not applicable Item 3. Exhibits: - ------------------ A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 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. NAME OF REGISTRANT By (Signature and Title): /s/ Michael T. Healy -------------------------- Michael T. Healy Principal Accounting Officer Date: September 28, 2004 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/ Charles E. Porter --------------------------- Charles E. Porter Principal Executive Officer Date: September 28, 2004 By (Signature and Title): /s/ Steven D. Krichmar --------------------------- Steven D. Krichmar Principal Financial Officer Date: September 28, 2004 EX-99.CERT 2 nqexnn2.txt EX-99.CERT Certifications - -------------- I, Charles E. Porter, the Principal Executive Officer of the funds listed on Attachment A, certify that: 1. I have reviewed each report on Form N-Q of the funds listed on Attachment A: 2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report; 3. Based on my knowledge, the schedule of investments included in each report fairly presents in all material respects the investments of the registrant as of the end of the fiscal quarter for which each report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act) for the registrants and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to each registrant's auditors and the audit committee of each registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect each registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant's internal controls. /s/ Charles E. Porter Date: September 27, 2004 - ---------------------- ------------------------ Charles E. Porter, Principal Executive Officer Certifications - -------------- I, Steven D. Krichmar, the Principal Financial Officer of the funds listed on Attachment A, certify that: 1. I have reviewed each report on Form N-Q of the funds listed on Attachment A: 2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report; 3. Based on my knowledge, the schedule of investments included in each report fairly presents in all material respects the investments of the registrant as of the end of the fiscal quarter for which each report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act) for the registrants and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to each registrant's auditors and the audit committee of each registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect each registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant's internal controls. /s/ Steven D. Krichmar Date: September 27, 2004 - ---------------------- ------------------------ Steven D. Krichmar, Principal Financial Officer Attachment A N-Q July 31, 2004 Funds - ------------------------------------ Quarterly Portfolios 2OV Putnam Mid-Cap Value Fund 002 Putnam Fund for Growth and Income 2II Putnam Capital Opportunities Fund 840 Putnam Utilities Growth and Income Fund 005 Putnam Global Equity Fund 008 Putnam Convertible Income-Growth Trust 2IE Putnam Growth Fund 052 Putnam Managed Municipal Income Trust 183 Putnam Municipal Bond Fund 582 Putnam Municipal Opportunities Trust 004 Putnam Income Fund 072 Putnam Master Income Trust 184 Putnam California Investment Grade Municipal Trust 185 Putnam New York Investment Grade Municipal Trust 2MI Putnam Tax Smart Equity Fund 041 Putnam Global Income Trust -----END PRIVACY-ENHANCED MESSAGE-----