Equity Income Fund Annual Report - Putnam Investments

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COMMON STOCKS (94.4%)* cont. Shares ValuePharmaceuticals (7.6%)AstraZeneca PLC ADR (United Kingdom) S 530,300 $30,327,857Eli Lilly & Co. 1,947,300 97,793,406Johnson & Johnson 1,164,870 110,266,594Mallinckrodt PLC (Ireland) † S 93,253 4,845,426Merck & Co., Inc. 1,081,800 53,906,094Pfizer, Inc. 2,281,286 72,385,205Zoetis, Inc. 719,014 22,397,286Professional services (1.3%)391,921,868Dun & Bradstreet Corp. (The) S 560,060 65,443,011Real estate investment trusts (REITs) (1.7%)65,443,011American Tower Corp. 393,900 30,633,603Equity Lifestyle Properties, Inc. 406,500 14,430,750Hatteras Financial Corp. 464,400 7,760,124MFA Financial, Inc. 4,883,805 35,602,938Semiconductors and semiconductor equipment (2.7%)88,427,415Fairchild Semiconductor International, Inc. † 1,482,956 18,878,030Intel Corp. S 1,092,200 26,038,048Maxim Integrated Products, Inc. 851,000 24,236,480NXP Semiconductor NV † 807,700 34,327,250Texas Instruments, Inc. S 784,400 33,729,200Software (0.4%)137,209,008Symantec Corp. 814,700 18,322,603Specialty retail (0.6%)18,322,603CST Brands, Inc. 188,222 6,190,622Office Depot, Inc. † 4,098,500 22,295,840Thrifts and mortgage finance (0.3%)28,486,462Radian Group, Inc. S 1,042,100 14,860,346Tobacco (1.5%)14,860,346Altria Group, Inc. 906,500 33,522,370Philip Morris International, Inc. 544,150 46,546,591Trading companies and distributors (0.5%)80,068,961WESCO International, Inc. † S 323,400 27,805,932Wireless telecommunication services (1.7%)27,805,932Vodafone Group PLC ADR (United Kingdom) S 2,355,300 87,358,07487,358,074Total common stocks (cost $3,696,142,128) $4,877,748,379CONVERTIBLE PREFERRED STOCKS (2.4%)* Shares ValueArcelorMittal Ser. MTUS, $1.50 cv. pfd. (France) 183,261 $4,652,997PPL Corp. $4.375 cv. pfd. 1,090,062 57,696,982Stanley Black & Decker, Inc. $6.50 cv. pfd. † 23,762 2,423,724Swift Mandatory Common Exchange Security Trust 144A 6.00% cv. pfd. 3,145,945 59,759,113Total convertible preferred stocks (cost $105,835,256) $124,532,816Equity Income Fund 29
CONVERTIBLE BONDS AND NOTES (0.8%)* Principal amount ValueMGIC Investment Corp. cv. sr. notes 5s, 2017 $18,271,000 $20,383,584WESCO International, Inc. cv. company guaranty sr. unsec.notes 6s, 2029 6,471,000 19,861,926Total convertible bonds and notes (cost $27,745,422) $40,245,510SHORT-TERM INVESTMENTS (8.9%)* Shares ValuePutnam Short Term Investment Fund 0.08% L 87,139,355 $87,139,355Putnam Cash Collateral Pool, LLC 0.16% d 373,383,289 373,383,289Total short-term investments (cost $460,522,644) $460,522,644TOTAL INVESTMENTSTotal investments (cost $4,290,245,450) $5,503,049,349Key to holding’s abbreviationsADR American Depository Receipts: represents ownership of foreign securities on deposit with acustodian bankNotes to the fund’s portfolioUnless noted otherwise, the notes to the fund’s portfolio are for the close of the fund’s reporting period, whichran from December 1, 2012 through November 30, 2013 (the reporting period). Within the following notes to theportfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements andDisclosures and references to “OTC”, if any, represent over-the-counter.* Percentages indicated are based on net assets of $5,168,020,432.† Non-income-producing security.d Affiliated company. See Note 1 to the financial statements regarding securities lending. The rate quoted in thesecurity description is the annualized 7-day yield of the fund at the close of the reporting period.L Affiliated company (Note 5). The rate quoted in the security description is the annualized 7-day yield of the fundat the close of the reporting period.S Security on loan, in part or in entirety, at the close of the reporting period (Note 1).At the close of the reporting period, the fund maintained liquid assets totaling $2,376,200 to cover the settlementof certain securities.Debt obligations are considered secured unless otherwise indicated.144A after the name of an issuer represents securities exempt from registration under Rule 144A under theSecurities Act of 1933, as amended. These securities may be resold in transactions exempt from registration,normally to qualified institutional buyers.The dates shown on debt obligations are the original maturity dates.30 Equity Income Fund
Page 1 and 2: PutnamEquity IncomeFundFUND SYMBOL(
Page 3 and 4: Message from the TrusteesDear Fello
Page 5 and 6: PerformancesnapshotAnnualized total
Page 7 and 8: Can you provide some examples of st
Page 9 and 10: it provides a classic example of wh
Page 11 and 12: Your fund’s performanceThis secti
Page 14 and 15: Your fund’s expensesAs a mutual f
Page 16 and 17: Terms and definitionsImportant term
Page 18 and 19: Important notice regarding Putnam
Page 20 and 21: and Putnam Management of such econo
Page 22 and 23: for mutual funds than for instituti
Page 24 and 25: In considering whether to approve y
Page 26 and 27: Report of Independent Registered Pu
Page 28 and 29: COMMON STOCKS (94.4%)* cont. Shares
Page 32 and 33: ASC 820 establishes a three-level h
Page 34 and 35: Statement of assets and liabilities
Page 36 and 37: Statement of changes in net assetsI
Page 38 and 39: Financial highlights (Continued)* N
Page 40 and 41: investment companies equals the tot
Page 42 and 43: fund’s capital accounts to reflec
Page 44 and 45: For the reporting period, Putnam Re
Page 46 and 47: At the close of the reporting perio
Page 48 and 49: About the TrusteesIndependent Trust
Page 50 and 51: OfficersIn addition to Robert L. Re
Page 52 and 53: Absolute ReturnAbsolute Return 100
Page 54: One Post Office SquareBoston, MA 02

Equity Income Fund Annual Report - Putnam Investments

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