| | | | | | |
| INVESTMENT COMPANIES (99.5%)(a) |
| | | | | Shares | Value |
| Ares Capital Corp. | | | | 575,219 | $12,045,086 |
| Bain Capital Specialty Finance, Inc. | | | | 277,793 | 4,655,811 |
| Barings BDC, Inc. | | | | 272,695 | 2,737,858 |
| Blackstone Secured Lending Fund | | | | 321,224 | 9,848,728 |
| Blue Owl Rock Capital Corp. | | | | 720,887 | 11,188,166 |
| Capital Southwest Corp. | | | | 132,658 | 3,405,331 |
| Carlyle Secured Lending, Inc. | | | | 95,224 | 1,681,656 |
| CION Investment Corp. | | | | 349,175 | 4,280,886 |
| Crescent Capital BDC, Inc. | | | | 209,552 | 3,968,915 |
| Fidus Investment Corp. | | | | 94,011 | 1,839,795 |
| FS KKR Capital Corp. | | | | 348,971 | 7,066,663 |
| Golub Capital BDC, Inc. | | | | 400,947 | 6,126,470 |
| Hercules Capital, Inc. | | | | 329,561 | 7,105,335 |
| Kayne Anderson BDC, Inc. | | | | 59,020 | 962,616 |
| Main Street Capital Corp. | | | | 198,442 | 10,156,262 |
| MidCap Financial Investment Corp. | | | | 350,469 | 4,976,660 |
| Palmer Square Capital BDC, Inc. | | | | 35,198 | 587,103 |
| Runway Growth Finance Corp. | | | | 139,080 | 1,646,707 |
| Sixth Street Specialty Lending, Inc. | | | | 271,967 | 5,675,951 |
| Trinity Capital, Inc. | | | | 169,134 | 2,471,046 |
| | | | | |
|
| Total investment companies (cost $93,468,007) | $102,427,045 |
| | | | | | |
| Key to holding's abbreviations |
| BDC | Business Development Company |
| 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 May 1, 2024 through July 31, 2024 (the reporting period). Within the following notes to the portfolio, references to "Putnam Management" represent Putnam Investment Management, LLC, the fund's investment manager, an indirect wholly-owned subsidiary of Franklin Resources, Inc., references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to "OTC", if any, represent over-the-counter. |
| (a) | Percentages indicated are based on net assets of $102,927,733. |
| (AFF) | Affiliated company. For investments in Putnam Government Money Market Fund, the rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with any company which is under common ownership or control were as follows: |
| Name of affiliate | Fair value
as of
4/30/24 | Purchase
cost | Sale
proceeds | Investment
income | Shares outstanding
and fair
value as of
7/31/24 |
| Short-term investments | | | | | |
| Putnam Government Money Market Fund Class P† | $351,125 | $5,127,753 | $5,124,809 | $6,143 | $354,069 |
| |
|
|
|
|
|
| Total Short-term investments | $351,125 | $5,127,753 | $5,124,809 | $6,143 | $354,069 |
| † Management fees paid by the fund are reduced by an amount equal to the management fees paid by Putnam Government Money Market Fund with respect to assets invested by the fund in Putnam Government Money Market Fund. There were no realized or unrealized gains or losses during the period. |
| Security valuation: Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees (Trustees). The Trustees have formed a Pricing Committee to oversee the implementation of these procedures. Under compliance policies and procedures approved by the Trustees, the Trustees have designated the fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC). The VC is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Trustees. |
| 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 the average of the last reported bid and ask prices, the“mid 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. |
| 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. Short-term securities with remaining maturities of 60 days or less are valued using an independent pricing service approved by the Trustees, and are classified as Level 2 securities. |
| To the extent a pricing service or dealer is unable to value a security or provides a valuation that the fund's investment manager does not believe accurately reflects the security's fair value, the security will be valued at fair value by the fund's investment manager, which has been designated as valuation designee pursuant to Rule 2a-5 under the Investment Company Act of 1940, in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. |
| To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount. |
| | | | |
| ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund's investments. The three levels are defined as follows: |
| Level 1: Valuations based on quoted prices for identical securities in active markets. |
| Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. |
| | | | |
| Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement. |
| The following is a summary of the inputs used to value the fund's net assets as of the close of the reporting period: |
| | Valuation inputs |
| Investments in securities: | Level 1 | Level 2 | Level 3 |
| Investment companies | $102,427,045 | $— | $— |
| Short-term investments | 354,069 | — | — |
| |
|
|
|
| Totals by level | $102,781,114 | $— | $— |
| For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnam.com |
