a_premierincome.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, 2018
Date of reporting period: August 1, 2017 — July 31, 2018



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

Annual report
7 | 31 | 18

Message from the Trustees 1
About the fund 2
Interview with your fund’s portfolio manager 5
Your fund’s performance 11
Terms and definitions 13
Other information for shareholders 15
Important notice regarding Putnam’s privacy policy 16
Summary of dividend reinvestment plans 17
Trustee approval of management contract 19
Financial statements 23
Federal tax information 124
Shareholder meeting results 125
About the Trustees 126
Officers 128

 

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

September 13, 2018

Dear Fellow Shareholder:

During 2018, we have seen conditions for global financial markets become a bit more normal after an extended period of record advances coupled with low volatility. A downturn early in the year pushed stocks into a brief correction, while the subsequent market rally has experienced occasional setbacks. Both stocks and bonds have been somewhat more volatile, due in part to uncertainty surrounding trade policy and U.S. interest rates. Fortunately, navigating a change in market trends is nothing new to Putnam’s experienced investment professionals, who continue to monitor risks and seek opportunities.

We would like to take this opportunity to extend our thanks to Jameson A. Baxter, who retired from her position as Chair of your Board of Trustees on June 30, 2018. It is hard to express in a few words the extent of Jamie’s commitment to protecting the interests of Putnam shareholders like you. In addition to her professional and directorship experience, Jamie brought intelligence, insight, and compassion to a board she served for decades. Jamie began as a Trustee in 1994, served as Vice Chair for six years, and became Chair in 2011. We are also pleased to announce the appointment of Kenneth R. Leibler as your new Board of Trustees Chair. Ken became a Trustee in 2006, has served as Vice Chair since 2016, and now leads the Board in overseeing your fund and protecting your interests.

Thank you for investing with Putnam.





When Putnam Premier Income Trust was launched in 1988, its three-pronged focus on U.S. investment-grade bonds, high-yield corporate bonds, and non-U.S. bonds was considered innovative.

In the more than 25 years since then, the fixed-income landscape has undergone a dramatic transformation, but the spirit of ingenuity that helped launch the fund is still with it today.

A veteran portfolio management team

The fund’s managers strive to build a well-diversified portfolio that carefully balances risk and return, targeting opportunities in interest rates, credit, mortgages, and currencies from across the full spectrum of the global bond markets.


2 Premier Income Trust 

 




Allocations are shown as a percentage of the fund’s net assets as of 7/31/18. 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. 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.

Premier Income Trust 3 

 




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.

Effective January 30, 2018, the ICE BofAML U.S. Treasury Bill Index replaced the Bloomberg Barclays Government Bond Index as the fund’s primary benchmark. In Putnam Management’s opinion, the new index is more appropriate to the fund’s flexible multisector investment approach.

* The fund’s primary benchmark (ICE BofAML U.S. Treasury Bill Index) was introduced on 6/30/92, which post-dates the inception of the fund’s class A shares.


This comparison shows your fund’s performance in the context of broad market indexes for the 12 months ended 7/31/18. See above and pages 11–12 for additional fund performance information. Index descriptions can be found on pages 13–14.

4 Premier Income Trust 

 





Bill is Chief Investment Officer, Fixed Income. He has an M.B.A. from the Haas School of Business, University of California, Berkeley, 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.

Your fund is also managed by Michael J. Atkin; Robert L. Davis, CFA; Brett S. Kozlowski, CFA; Co-Head of Fixed Income Michael V. Salm; and Co-Head of Fixed Income Paul D. Scanlon, CFA.

Bill, how would you summarize the fund’s investment environment during the reporting period?

Despite bouts of volatility, rising interest rates, and increasing uncertainty surrounding global trade policy, I think the environment remained generally favorable for the fund’s multisector investment approach. I’m happy to report that nearly all of our underlying strategies contributed in some way to the fund’s absolute performance this period.

Which investments fueled the fund’s strong gain for the 12-month period?

Our mortgage credit holdings were the biggest contributor, led by an allocation to commercial mortgage-backed securities [CMBS]. Long exposure to the BBB-rated tranche within the CMBX — an index that references a basket of CMBS issued in a particular year — benefited from reduced investor concern that weakness in the retail industry would materially hamper the CMBS market. Our holdings of cash bonds also contributed. We mainly held mezzanine bonds issued between 2011 and 2014. The yield spreads on these securities continued to gradually tighten while spreads widened in

Premier Income Trust 5 

 



Credit qualities are shown as a percentage of the fund’s net assets as of 7/31/18. 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.

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 7/31/18. Short-term investments, TBA commitments, and derivatives, if any, are excluded. Holdings may vary over time.

6 Premier Income Trust 

 



other market sectors during the second half of the period.

Holdings of agency credit-risk transfer securities [CRTs] also bolstered our mortgage credit strategies. CRTs benefited from strong overall demand, as investors continued to embrace the sector’s relatively high yields backed by robust collateral and rising residential real estate prices. Additionally, credit-rating agencies upgraded various CRT tranches, recognizing the improved outlook for their underlying collateral. Our legacy positions in non-agency residential mortgage-backed securities [RMBS], such as pay-option adjustable-rate MBS, provided a further boost within our mortgage-credit strategies. These securities received continued support from a favorable supply-and-demand backdrop.

Elsewhere, strategies targeting prepayment risk also meaningfully contributed. Our holdings of reverse-mortgage interest-only [IO] securities benefited from regulatory changes announced last year by the Department of Housing and Urban Development [HUD]. The regulations have reduced the incentives for owners of reverse mortgages to refinance, helping to strengthen secondary market demand. Additionally, higher intermediate-term Treasury yields helped our positions in agency interest-only collateralized mortgage obligations [IO CMOs]. Refinancing activity was subdued due to rising mortgage rates and a continuing trend of fairly restrictive bank underwriting standards. As a result, prepayment speeds on the mortgages underlying our IO CMO positions stayed relatively low.

How did corporate credit and emerging market [EM] debt influence performance?

Our positions in high-yield corporate bonds aided results, primarily in the first half of the period. During that time, credit spreads tightened amid strength in corporate earnings, improving readings on the U.S. economy, and a low level of issuer defaults. Credit spreads are the yield advantage that bonds with credit risk offer over comparable-maturity U.S. Treasuries. Volatility increased and spreads widened considerably from February through May before tightening once again late in the period.

As for EM debt, our holdings in Argentina, Brazil, and Russia performed well in the first half of the period. However, a substantial portion of these gains evaporated in the period’s second half. During that time, uncertainty surrounding upcoming elections in Brazil hampered the performance of that country’s debt. Bonds issued by the government of Argentina also underperformed as the country’s currency depreciated sharply. Overall, our EM investments modestly contributed.

What impact did the fund’s interest-rate and yield-curve positioning have this period?

Our global “term structure” strategies provided an additional boost to performance. We generally kept the fund’s duration below zero, which enabled the portfolio to benefit when interest rates rose markedly in the United States during the first quarter of 2018. Model-driven global rate strategies — in which we sought to exploit rate differentials and yield-curve structures across various countries — also produced notable gains during the second half of the period. Meanwhile, holdings of Greek government debt rose on improving sentiment, as the country works toward resolution of its bailout agreement with international creditors.

What about detractors?

Against the backdrop of a generally strengthening U.S. dollar, our currency strategies worked against performance this period. Long positions in the Norwegian krone and the Australian dollar, both of which weakened against the U.S. dollar, weighed on our strategy. A short position in the New Zealand dollar also detracted, as this currency strengthened versus the greenback during the time that we had this exposure.

Premier Income Trust 7 

 



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 fund’s interest-rate risk, to isolate the prepayment risk associated with our CMO holdings, and to help manage overall downside risk. We used credit default swaps to hedge the fund’s credit and market risks, and to gain exposure to specific sectors and securities. 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 outlook for the coming months?

Although global growth became less synchronized as the period progressed, we think U.S. economic data continue to provide a supportive backdrop for the market sectors we focus on. U.S. gross domestic product grew at a robust 4.1% annualized rate in the second quarter of 2018, following growth of 2.2% in the first quarter. Meanwhile, consumer prices rose 2.9% over the 12 months ended July 31, 2018, the strongest growth for this measure since 2011. In our view, the rising costs of rent, gasoline, health care, and other consumer products and services indicate that the economy is shifting into a higher gear after years of relatively slow growth. It appears to us that a strong labor market is beginning to push wages up, and accelerating growth is increasingly squeezing slack out of the economy.

Within this environment, the Federal Reserve has been raising its policy rate and has begun to reduce its holdings of U.S. Treasuries and government-agency mortgage-backed securities. We’re encouraged that, so far, the Fed has been carrying out this process without causing


This chart shows how the fund’s security type 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.

8 Premier Income Trust 

 



significant disruption to the U.S. economy or financial markets.

Globally, we are focused on developments in international trade and the performance of emerging-market economies.

After a decade of borrowing by EM governments and companies, we believe that dollar-denominated bonds in developing economies are coming under increasing pressure as U.S. interest rates rise, trade tensions ratchet higher, and the U.S. dollar strengthens. A stronger dollar makes it more difficult for countries with large amounts of dollar-denominated bonds to repay that debt as it matures.

The dilemma now facing policy makers in less-developed countries is whether to try to keep pace with the Fed as it raises interest rates. Higher rates could help stem capital outflows from emerging markets, but could also crimp domestic growth.

Given this outlook, how are you positioning the fund?

We continue to favor mortgage credit, prepayment risk, and corporate credit, but are taking a somewhat more conservative approach than previously. We are doing this partly by purchasing securities with shorter durations. We are also seeking greater credit protection by investing at more senior levels in a deal’s credit structure.

As for emerging markets, we have sought to manage risk by reducing exposure to markets that tend to be more volatile, such as Russia. Beyond that, we plan to continue focusing on select investment opportunities that we believe

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.

Premier Income Trust 9 

 



offer value, rather than establishing broad exposure to the sector.

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.

10 Premier Income Trust 

 



Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended July 31, 2018, the end of its most recent 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 7/31/18

  Annual               
  average               
  Life of               
  fund (since    Annual    Annual    Annual   
  2/29/88)  10 years  average  5 years  average  3 years  average  1 year 
NAV  6.74%  80.07%  6.06%  23.48%  4.31%  15.95%  5.06%  6.31% 
Market price  6.77  92.41  6.76  34.77  6.15  23.61  7.32  3.26 

 

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 7/31/18

  Annual               
  average               
  Life of               
  fund (since    Annual    Annual    Annual   
  2/29/88)  10 years  average  5 years  average  3 years  average  1 year 
ICE BofAML U.S. Treasury                 
Bill Index  *  4.18%  0.41%  2.32%  0.46%  2.19%  0.72%  1.39% 
Bloomberg Barclays                 
Government Bond Index  5.70%  32.13  2.83  7.27  1.41  1.84  0.61  –1.20 
Lipper General Bond Funds                 
(closed-end) category  7.31  143.12  8.58  39.32  6.70  22.76  6.99  4.52 
average                 

 

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

* The fund’s primary benchmark (ICE BofAML U.S. Treasury Bill Index) was introduced on 6/30/92, which post-dates the inception of the fund’s class A shares.

Effective January 30, 2018, the ICE BofAML U.S. Treasury Bill Index replaced the Bloomberg Barclays Government Bond Index as the fund’s primary benchmark. In Putnam Management’s opinion, the new index is more appropriate to the fund’s flexible multisector investment approach.

Over the 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 7/31/18, there were 39, 33, 28, 18, and 3 funds, respectively, in this Lipper category.

Premier Income Trust 11 

 



Fund price and distribution information For the 12-month period ended 7/31/18

Distributions       
Number    12   
Income    $0.312   
Capital gains       
Total    $0.312   
Share value  NAV    Market price 
7/31/17  $5.56    $5.39 
7/31/18  5.59    5.25 
Current dividend rate*  5.58%    5.94% 

 

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 6/30/18

  Annual               
  average               
  Life of               
  fund (since    Annual    Annual    Annual   
  2/29/88)  10 years  average  5 years  average  3 years  average  1 year 
NAV  6.74%  77.43%  5.90%  24.07%  4.41%  15.33%  4.87%  6.70% 
Market price  6.76  90.53  6.66  31.75  5.67  23.17  7.19  2.10 

 

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

 

12 Premier Income Trust 

 



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 credit-risk transfer security (CRT) is backed by a reference pool of agency mortgages. Unlike a regular agency pass-through, the principal invested in a CRT is not backed by a U.S. government agency. To compensate investors for this risk, a CRT typically offers a higher yield than conventional pass-through securities. Similar to a CMBS, a CRT is structured into various tranches for investors, offering different levels of risk and yield based on the underlying reference pool.

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.

Premier Income Trust 13 

 



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

CMBX Index tracks the performance of a basket of CMBS issued in a particular year.

ICE BofAML (Intercontinental Exchange Bank of America Merrill Lynch) U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar-denominated U.S. Treasury bills publicly issued in the U.S. domestic market. Qualifying securities must have a remaining term of at least one month to final maturity and a minimum amount outstanding of $1 billion.

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

ICE Data Indices, LLC (“ICE BofAML”), used with permission. ICE BofAML permits use of the ICE BofAML indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofAML indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.

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 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.

14 Premier Income Trust 

 



Other information for shareholders

Important notice regarding share repurchase program

In September 2017, 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 10, 2017, up to 10% of the fund’s common shares outstanding as of October 9, 2017.

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, 2018, 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 July 31, 2018, Putnam employees had approximately $523,000,000 and the Trustees had approximately $69,000,000 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.

Premier Income Trust 15 

 



Important notice regarding Putnam’s privacy policy

In order to conduct business with our shareholders, we must obtain certain personal information such as account holders’ names, addresses, Social Security numbers, and dates of birth. Using this information, we are able to maintain accurate records of accounts and transactions.

It is our policy to protect the confidentiality of our shareholder information, whether or not a shareholder currently owns shares of our funds. In particular, it is our policy not to sell information about you or your accounts to outside marketing firms. We have safeguards in place designed to prevent unauthorized access to our computer systems and procedures to protect personal information from unauthorized use.

Under certain circumstances, we must share account information with outside vendors who provide services to us, such as mailings and proxy solicitations. In these cases, the service providers enter into confidentiality agreements with us, and we provide only the information necessary to process transactions and perform other services related to your account. Finally, it is our policy to share account information with your financial representative, if you’ve listed one on your Putnam account.

16 Premier Income Trust 

 



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

Premier Income Trust 17 

 



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.

18 Premier Income Trust 

 



Trustee approval of management contract

General conclusions

The Board of Trustees of The Putnam Funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of your fund’s management contract with Putnam Investment Management, LLC (“Putnam Management”) and the sub-management contract with respect to your fund between Putnam Management and its affiliate, Putnam Investments Limited (“PIL”). The Board, with the assistance of its Contract Committee, requests and evaluates all information it deems reasonably necessary under the circumstances in connection with its annual contract review. The Contract Committee consists solely of Trustees who are not “interested persons” (as this term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of The Putnam Funds (“Independent Trustees”).

At the outset of the review process, members of the Board’s independent staff and independent legal counsel discussed with representatives of Putnam Management the annual contract review materials furnished to the Contract Committee during the course of the previous year’s review, identifying possible changes in these materials that might be necessary or desirable for the coming year. Following these discussions and in consultation with the Contract Committee, the Independent Trustees’ independent legal counsel requested that Putnam Management and its affiliates furnish specified information, together with any additional information that Putnam Management considered relevant, to the Contract Committee. Over the course of several months ending in June 2018, the Contract Committee met on a number of occasions with representatives of Putnam Management, and separately in executive session, to consider the information that Putnam Management provided. Throughout this process, the Contract Committee was assisted by the members of the Board’s independent staff and by independent legal counsel for The Putnam Funds and the Independent Trustees.

In May 2018, the Contract Committee met in executive session to discuss and consider its recommendations with respect to the continuance of the contracts. At the Trustees’ June 2018 meeting, the Contract Committee met in executive session with the other Independent Trustees to review a summary of the key financial, performance and other data that the Contract Committee considered in the course of its review. The Contract Committee then presented its written report, which summarized the key factors that the Committee had considered and set forth its recommendations. The Contract Committee recommended, and the Independent Trustees approved, the continuance of your fund’s management and sub-management contracts, effective July 1, 2018. (Because PIL is an affiliate of Putnam Management and Putnam Management remains fully responsible for all services provided by PIL, the Trustees have not attempted to evaluate PIL as a separate entity, and all subsequent references to Putnam Management below should be deemed to include reference to PIL as necessary or appropriate in the context.)

The Independent Trustees’ approval was based on the following conclusions:

• That the fee schedule in effect for your fund represented reasonable compensation in light of the nature and quality of the services being provided to the fund, the fees paid by competitive funds, and the costs incurred by Putnam Management in providing services to the fund; and

• That the fee schedule in effect for your fund represented an appropriate sharing between fund shareholders and Putnam Management of such economies of scale as may exist in the management of the fund at current asset levels.

These conclusions were based on a comprehensive consideration of all information provided to the Trustees and were not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered these factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors. It is also important to recognize that the management arrangements for your fund and the other Putnam funds are the result of many years of review and discussion between the Independent Trustees and Putnam Management, that some aspects of the arrangements may receive greater scrutiny in some years than others, and that the Trustees’ conclusions may be based, in part, on their consideration of fee arrangements in previous years.

Premier Income Trust 19 

 



Management fee schedules and total expenses

The Trustees reviewed the management fee schedules in effect for all Putnam funds, including fee levels and breakpoints. The Trustees also reviewed the total expenses of each Putnam fund, recognizing that in most cases management fees represented the major, but not the sole, determinant of total costs to fund shareholders. (In a few instances, funds have implemented so-called “all-in” management fees covering substantially all routine fund operating costs.)

In reviewing fees and expenses, the Trustees generally focus their attention on material changes in circumstances — for example, changes in assets under management, changes in a fund’s investment strategy, changes in Putnam Management’s operating costs or profitability, or changes in competitive practices in the mutual fund industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not indicate that changes to the management fee structure for your fund would be appropriate at this time.

Under its management contract, your fund has the benefit of breakpoints in its management fee schedule that provide shareholders with economies of scale in the form of reduced fee rates as the fund’s assets under management increase. The Trustees noted, however, that because your fund is a closed-end management investment company, it has relatively stable levels of assets under management and is not expected to be affected significantly by breakpoints in its management fee schedule. The Trustees concluded that the fee schedule in effect for your fund represented an appropriate sharing of economies of scale between fund shareholders and Putnam Management.

The Trustees reviewed comparative fee and expense information for a custom group of competitive funds selected by Broadridge Financial Solutions, Inc. (“Broadridge”). This comparative information included your fund’s percentile ranking for effective management fees and total expenses, which provides a general indication of your fund’s relative standing. In the custom peer group, your fund ranked in the first quintile in effective management fees (determined for your fund and the other funds in the custom peer group based on fund asset size and the applicable contractual management fee schedule) and in the third quintile in total expenses as of December 31, 2017. The first quintile represents the least expensive funds and the fifth quintile the most expensive funds. The fee and expense data reported by Broadridge as of December 31, 2017 reflected the most recent fiscal year-end data available in Broadridge’s database at that time.

In connection with their review of fund management fees and total expenses, the Trustees also reviewed the costs of the services provided and the profits realized by Putnam Management and its affiliates from their contractual relationships with the funds. This information included trends in revenues, expenses and profitability of Putnam Management and its affiliates relating to the investment management, investor servicing and distribution services provided to the funds. In this regard, the Trustees also reviewed an analysis of Putnam Management’s revenues, expenses and profitability, allocated on a fund-by-fund basis, with respect to the funds’ management, distribution, and investor servicing contracts. For each fund, the analysis presented information about revenues, expenses and profitability for each of the agreements separately and for the agreements taken together on a combined basis. The Trustees concluded that, at current asset levels, the fee schedules in place represented reasonable compensation for the services being provided and represented an appropriate sharing between fund shareholders and Putnam Management of such economies of scale as may exist in the management of the Putnam funds at that time.

The information examined by the Trustees in connection with their annual contract review for the Putnam funds included information regarding fees charged by Putnam Management and its affiliates to institutional clients, including defined benefit pension and profit-sharing plans and sub-advised mutual funds. This information included, in cases where an institutional product’s investment strategy corresponds with a fund’s strategy, comparisons of those fees with fees charged to the Putnam funds, as well as an assessment of the differences in the services provided to these different types of clients as compared to the services provided to the Putnam Funds. The Trustees observed that the differences in fee rates between these clients and the Putnam funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients may reflect, among other things, historical competitive forces operating in separate markets. The Trustees

20 Premier Income Trust 

 



considered the fact that in many cases fee rates across different asset classes are higher on average for mutual funds than for institutional clients, as well as the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to its other clients. The Trustees did not rely on these comparisons to any significant extent in concluding that the management fees paid by your fund are reasonable.

Investment performance

The quality of the investment process provided by Putnam Management represented a major factor in the Trustees’ evaluation of the quality of services provided by Putnam Management under your fund’s management contract. The Trustees were assisted in their review of the Putnam funds’ investment process and performance by the work of the investment oversight committees of the Trustees and the full Board of Trustees, which meet on a regular basis with the funds’ portfolio teams and with the Chief Investment Officers and other senior members of Putnam Management’s Investment Division throughout the year. The Trustees concluded that Putnam Management generally provides a high-quality investment process — based on the experience and skills of the individuals assigned to the management of fund portfolios, the resources made available to them, and in general Putnam Management’s ability to attract and retain high-quality personnel — but also recognized that this does not guarantee favorable investment results for every fund in every time period.

The Trustees considered that 2017 was a strong year for the performance of the Putnam funds, with generally favorable results for most asset classes, including U.S. equity, international and global equity, taxable and tax exempt fixed income and global asset allocation Funds. In this regard, the Trustees considered that, for the one-year period ended December 31, 2017, the Putnam open-end Funds’ performance, on an asset-weighted basis, ranked in the 32nd percentile of their Lipper peers (excluding those Putnam funds that are evaluated based on their total returns and/or comparisons of those returns versus selected investment benchmarks or targeted annual returns). The Trustees observed that this strong performance has continued a positive trend that began in mid-year 2016 across most Putnam funds. They noted that the longer-term performance of the Putnam funds continued to be strong, exemplified by the fact that the Putnam funds were ranked by the Barron’s/Lipper Fund Families survey as the 7th-best performing mutual fund complex out of 55 complexes for the five-year period ended December 31, 2017 and the 9th-best performing mutual fund complex out of 50 complexes for the ten-year period ended 2017. In addition, the survey ranked the Putnam funds 7th out of 59 mutual fund complexes for the one-year period ended 2017; the Putnam funds have ranked 1st or 2nd in the survey for the one-year period three times since 2009 (most recently in 2013). They also noted, however, the disappointing investment performance of some funds for periods ended December 31, 2017 and considered information provided by Putnam Management regarding the factors contributing to the underperformance and actions being taken to improve the performance of these particular funds. The Trustees indicated their intention to continue to monitor closely the performance of those funds, including the effectiveness of any efforts Putnam Management has undertaken to address underperformance and whether additional actions to address areas of underperformance are warranted.

For purposes of the Trustees’ evaluation of the Putnam Funds’ investment performance, the Trustees generally focus on a competitive industry ranking of each fund’s total net return over a one-year, three-year and five-year period. For a number of Putnam funds with relatively unique investment mandates for which Putnam Management informed the Trustees that meaningful competitive performance rankings are not considered to be available, the Trustees evaluated performance based on their total gross and net returns and, in most cases, comparisons of those returns with the returns of selected investment benchmarks. In the case of your fund, the Trustees considered that its common share cumulative total return performance at net asset value was in the following quartiles of its Lipper Inc. (“Lipper”) peer group (Lipper General Bond Funds (closed-end)) for the one-year, three-year and five-year periods ended December 31, 2017 (the first quartile representing the best-performing funds and the fourth quartile the worst-performing funds):

One-year period  3rd 
Three-year period  4th 
Five-year period  3rd 

 

Premier Income Trust 21 

 



Over the one-year, three-year and five-year periods ended December 31, 2017, there were 34, 29 and 24 funds, respectively, in your fund’s Lipper peer group. (When considering performance information, shareholders should be mindful that past performance is not a guarantee of future results.)

The Trustees expressed concern about your fund’s fourth quartile performance over the three-year period ended December 31, 2017 and considered the circumstances that may have contributed to this disappointing performance. The Trustees considered Putnam Management’s observation that the fund’s underperformance was largely due to the fund’s overweight exposure to securities with a short duration in an environment of falling interest rates. The Trustees also noted Putnam Management’s view that the fund’s international term structure positioning had detracted from the fund’s performance, particularly in the second quarter of 2015 (Greek debt crisis) and June and July of 2016 (the U.K.’s vote to leave the European Union).

The Trustees considered that Putnam Management remained confident in the fund’s portfolio managers. The Trustees also considered Putnam Management’s continued efforts to support fund performance through the appointment of additional portfolio managers in February 2017 and through initiatives including structuring compensation for portfolio managers and research analysts to enhance accountability for fund performance, emphasizing accountability in the portfolio management process, and affirming its commitment to a fundamental-driven approach to investing. The Trustees noted further that Putnam Management continued to strengthen its fundamental research capabilities by adding new investment personnel.

As a general matter, the Trustees believe that cooperative efforts between the Trustees and Putnam Management represent the most effective way to address investment performance concerns that may arise from time to time. The Trustees noted that investors in the Putnam funds have, in effect, placed their trust in the Putnam organization, under the oversight of the funds’ Trustees, to make appropriate decisions regarding the management of the funds. Based on Putnam Management’s willingness to take appropriate measures to address fund performance issues and Putnam Management’s responsiveness to Trustee concerns about investment performance, the Trustees concluded that it continues to be advisable to seek change within Putnam Management to address performance shortcomings. In the Trustees’ view, the alternative of engaging a new investment adviser for an underperforming fund would entail significant disruptions and would not likely provide any greater assurance of improved investment performance.

Brokerage and soft-dollar allocations; investor servicing

The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contract with your fund. These include benefits related to brokerage allocation and the use of soft dollars, whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research services that are expected to be useful to Putnam Management in managing the assets of the fund and of other clients. Subject to policies established by the Trustees, soft dollars generated by these means are used predominantly to acquire brokerage and research services (including third-party research and market data) that enhance Putnam Management’s investment capabilities and supplement Putnam Management’s internal research efforts. However, the Trustees noted that a portion of available soft dollars continues to be used to pay fund expenses. The Trustees indicated their continued intent to monitor regulatory and industry developments in this area with the assistance of their Brokerage Committee. The Trustees also indicated their continued intent to monitor the allocation of the Putnam funds’ brokerage in order to ensure that the principle of seeking best price and execution remains paramount in the portfolio trading process.

Putnam Management may also receive benefits from payments that the funds make to Putnam Management’s affiliates for investor services. In conjunction with the annual review of your fund’s management and sub-management contracts, the Trustees reviewed your fund’s investor servicing agreement with Putnam Investor Services, Inc. (“PSERV”), which is an affiliate of Putnam Management. The Trustees concluded that the fees payable by the funds to PSERV for such services are fair and reasonable in relation to the nature and quality of such services, the fees paid by competitive funds, and the costs incurred by PSERV in providing such services. Furthermore, the Trustees were of the view that the services provided were required for the operation of the funds, and that they were of a quality at least equal to those provided by other providers.

22 Premier Income Trust 

 



Financial statements

These sections of the report, as well as the accompanying Notes, preceded by the Report of Independent Registered Public Accounting Firm, 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 year.

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.

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 23 

 



Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders
Putnam Premier Income Trust:

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Putnam Premier Income Trust (the “fund”), including the fund’s portfolio, as of July 31, 2018, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the “financial statements”) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the fund as of July 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures included confirmation of securities owned as of July 31, 2018, by correspondence with the custodian and brokers or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.


KPMG has served as the auditor of one or more Putnam investment companies since 1999.

Boston, Massachusetts
September 13, 2018

24 Premier Income Trust 

 



The fund’s portfolio 7/31/18

  Principal   
MORTGAGE-BACKED SECURITIES (42.1%)*  amount  Value 
Agency collateralized mortgage obligations (20.9%)     
Federal Home Loan Mortgage Corporation     
IFB Ser. 3408, Class EK, ((-4.024 x 1 Month US LIBOR) + 25.79%),     
17.457%, 4/15/37  $78,370  $104,693 
IFB Ser. 3072, Class SM, ((-3.667 x 1 Month US LIBOR) + 23.80%),     
16.201%, 11/15/35  164,000  207,854 
Structured Agency Credit Risk Debt FRN Ser. 16-DNA2, Class M3,     
(1 Month US LIBOR + 4.65%), 6.714%, 10/25/28  320,000  368,545 
Ser. 4813, IO, 5.50%, 8/15/48  6,396,000  1,425,638 
Ser. 4077, Class IK, IO, 5.00%, 7/15/42  5,096,462  1,098,405 
IFB Ser. 3852, Class SC, IO, ((-1 x 1 Month US LIBOR) + 6.65%),     
4.578%, 4/15/40  5,127,977  605,050 
Ser. 4122, Class TI, IO, 4.50%, 10/15/42  2,556,492  599,906 
Ser. 4000, Class PI, IO, 4.50%, 1/15/42  1,413,065  291,826 
Ser. 4024, Class PI, IO, 4.50%, 12/15/41  2,310,071  442,496 
IFB Ser. 4678, Class MS, IO, ((-1 x 1 Month US LIBOR) + 6.10%),     
4.028%, 4/15/47  2,577,776  494,598 
Ser. 4546, Class TI, IO, 4.00%, 12/15/45  4,853,185  1,061,634 
Ser. 4425, IO, 4.00%, 1/15/45  5,995,239  1,304,204 
Ser. 4452, Class QI, IO, 4.00%, 11/15/44  5,012,424  1,385,845 
Ser. 4193, Class PI, IO, 4.00%, 3/15/43  3,904,522  603,474 
Ser. 4062, Class DI, IO, 4.00%, 9/15/39  4,830,738  465,249 
Ser. 4604, Class QI, IO, 3.50%, 7/15/46  12,856,026  2,088,590 
Ser. 4580, Class ID, IO, 3.50%, 8/15/45  8,186,897  1,676,447 
Ser. 4560, Class PI, IO, 3.50%, 5/15/45  3,112,588  552,111 
Ser. 4501, Class BI, IO, 3.50%, 10/15/43  5,649,023  945,477 
Ser. 4105, Class HI, IO, 3.50%, 7/15/41  2,223,465  237,784 
Ser. 304, Class C37, IO, 3.50%, 12/15/27  2,321,529  198,169 
Ser. 4165, Class TI, IO, 3.00%, 12/15/42  9,675,912  950,291 
Ser. 4183, Class MI, IO, 3.00%, 2/15/42  4,518,960  399,426 
Ser. 4210, Class PI, IO, 3.00%, 12/15/41  2,634,649  166,800 
Ser. 4510, Class HI, IO, 3.00%, 3/15/40  7,679,102  763,587 
FRB Ser. 57, Class 1AX, IO, 0.365%, 7/25/43 W   2,720,724  29,150 
Ser. 3326, Class WF, zero %, 10/15/35 W   1,984  1,398 
Federal National Mortgage Association     
IFB Ser. 06-62, Class PS, ((-6 x 1 Month US LIBOR) + 39.90%),     
27.518%, 7/25/36  115,200  179,705 
IFB Ser. 07-53, Class SP, ((-3.667 x 1 Month US LIBOR) + 24.20%),     
16.633%, 6/25/37  133,589  171,614 
IFB Ser. 08-24, Class SP, ((-3.667 x 1 Month US LIBOR) + 23.28%),     
15.717%, 2/25/38  106,329  130,790 
IFB Ser. 05-75, Class GS, ((-3 x 1 Month US LIBOR) + 20.25%),     
14.059%, 8/25/35  95,138  110,334 
IFB Ser. 05-83, Class QP, ((-2.6 x 1 Month US LIBOR) + 17.39%),     
12.029%, 11/25/34  139,431  155,935 
Connecticut Avenue Securities FRB Ser. 15-C01, Class 2M2,     
(1 Month US LIBOR + 4.55%), 6.614%, 2/25/25  409,841  443,565 
Connecticut Avenue Securities FRB Ser. 15-C02, Class 2M2,     
(1 Month US LIBOR + 4.00%), 6.064%, 5/25/25  273,155  295,070 
Ser. 16-3, Class NI, IO, 6.00%, 2/25/46  5,160,266  1,256,969 

 

Premier Income Trust 25 

 



  Principal   
MORTGAGE-BACKED SECURITIES (42.1%)* cont.  amount  Value 
Agency collateralized mortgage obligations cont.     
Federal National Mortgage Association     
Ser. 10-99, Class NI, IO, 6.00%, 9/25/40  $5,343,122  $1,157,748 
Ser. 11-59, Class BI, IO, 6.00%, 8/25/40  3,773,460  274,255 
Ser. 374, Class 6, IO, 5.50%, 8/25/36  226,076  43,405 
Ser. 378, Class 19, IO, 5.00%, 6/25/35  700,881  143,738 
Connecticut Avenue Securities FRB Ser. 14-C02, Class 1M2,     
(1 Month US LIBOR + 2.60%), 4.664%, 5/25/24  120,000  127,459 
Ser. 12-127, Class BI, IO, 4.50%, 11/25/42  1,027,662  242,636 
Ser. 12-30, Class HI, IO, 4.50%, 12/25/40  6,261,066  876,023 
Ser. 366, Class 22, IO, 4.50%, 10/25/35  46,854  1,349 
IFB Ser. 12-36, Class SN, IO, ((-1 x 1 Month US LIBOR) + 6.45%),     
4.386%, 4/25/42  2,730,070  462,111 
IFB Ser. 10-35, Class SG, IO, ((-1 x 1 Month US LIBOR) + 6.40%),     
4.336%, 4/25/40  1,950,042  329,070 
IFB Ser. 13-18, Class SB, IO, ((-1 x 1 Month US LIBOR) + 6.15%),     
4.086%, 10/25/41  2,097,965  193,646 
IFB Ser. 16-96, Class ST, IO, ((-1 x 1 Month US LIBOR) + 6.10%),     
4.036%, 12/25/46  7,792,085  1,022,711 
Ser. 17-7, Class JI, IO, 4.00%, 2/25/47  4,161,189  925,865 
Ser. 17-15, Class LI, IO, 4.00%, 6/25/46  3,518,473  581,252 
Ser. 15-88, Class QI, IO, 4.00%, 10/25/44  4,059,789  773,316 
Ser. 13-41, Class IP, IO, 4.00%, 5/25/43  2,925,012  464,112 
Ser. 13-44, Class PI, IO, 4.00%, 1/25/43  2,262,096  344,811 
Ser. 13-60, Class IP, IO, 4.00%, 10/25/42  2,264,103  414,227 
Ser. 13-107, Class SB, IO, ((-1 x 1 Month US LIBOR) + 5.95%),     
3.886%, 2/25/43  4,902,131  833,362 
IFB Ser. 11-101, Class SA, IO, ((-1 x 1 Month US LIBOR) + 5.90%),     
3.836%, 10/25/41  6,243,751  811,688 
Ser. 16-102, Class JI, IO, 3.50%, 2/25/46  5,697,988  1,006,174 
Ser. 12-145, Class TI, IO, 3.00%, 11/25/42  3,565,335  236,906 
Ser. 13-35, Class IP, IO, 3.00%, 6/25/42  3,587,869  276,165 
Ser. 13-53, Class JI, IO, 3.00%, 12/25/41  3,340,861  351,258 
Ser. 13-23, Class PI, IO, 3.00%, 10/25/41  3,251,064  185,473 
Ser. 99-51, Class N, PO, zero %, 9/17/29  15,003  13,690 
Federal National Mortgage Association Grantor Trust Ser. 00-T6,     
IO, 0.717%, 11/25/40 W   1,876,837  39,883 
Government National Mortgage Association     
Ser. 17-38, Class DI, IO, 5.00%, 3/16/47  2,373,127  548,881 
Ser. 16-42, IO, 5.00%, 2/20/46  6,374,386  1,359,657 
Ser. 16-168, Class AI, IO, 5.00%, 7/20/45  2,705,867  304,410 
Ser. 14-122, Class IC, IO, 5.00%, 8/20/44  1,936,380  429,818 
Ser. 14-76, IO, 5.00%, 5/20/44  2,459,415  584,499 
Ser. 14-25, Class MI, IO, 5.00%, 11/20/43  1,553,765  310,333 
Ser. 15-187, Class KI, IO, 5.00%, 6/20/43  4,844,500  524,844 
Ser. 13-22, Class IE, IO, 5.00%, 2/20/43  3,827,282  835,649 
Ser. 13-22, Class OI, IO, 5.00%, 1/20/43  3,454,516  682,467 
Ser. 13-3, Class IT, IO, 5.00%, 1/20/43  1,928,356  423,284 
Ser. 13-6, Class IC, IO, 5.00%, 1/20/43  1,747,333  407,688 
Ser. 12-146, IO, 5.00%, 12/20/42  1,711,266  391,178 
Ser. 13-6, Class CI, IO, 5.00%, 12/20/42  1,257,724  258,035 

 

26 Premier Income Trust 

 



  Principal   
MORTGAGE-BACKED SECURITIES (42.1%)* cont.  amount  Value 
Agency collateralized mortgage obligations cont.     
Government National Mortgage Association     
Ser. 13-130, Class IB, IO, 5.00%, 12/20/40  $487,992  $31,337 
Ser. 13-16, Class IB, IO, 5.00%, 10/20/40  176,524  15,695 
Ser. 11-41, Class BI, IO, 5.00%, 5/20/40  422,044  28,688 
Ser. 10-35, Class UI, IO, 5.00%, 3/20/40  2,550,017  573,681 
Ser. 10-20, Class UI, IO, 5.00%, 2/20/40  1,793,000  409,234 
Ser. 10-9, Class UI, IO, 5.00%, 1/20/40  8,055,569  1,826,028 
Ser. 09-121, Class UI, IO, 5.00%, 12/20/39  4,115,434  947,496 
Ser. 15-79, Class GI, IO, 5.00%, 10/20/39  1,530,798  362,296 
Ser. 16-37, Class IW, IO, 4.50%, 2/20/46  3,228,306  698,121 
Ser. 16-104, Class GI, IO, 4.50%, 1/20/46  8,006,806  1,274,523 
Ser. 15-167, Class BI, IO, 4.50%, 4/16/45  2,316,398  529,691 
Ser. 14-147, Class IJ, IO, 4.50%, 2/20/44  2,941,632  490,076 
Ser. 13-182, Class IQ, IO, 4.50%, 12/16/43  3,517,697  743,113 
Ser. 14-100, Class LI, IO, 4.50%, 10/16/43  4,686,130  823,166 
Ser. 13-34, Class IH, IO, 4.50%, 3/20/43  3,496,368  745,077 
Ser. 14-108, Class IP, IO, 4.50%, 12/20/42  804,237  134,332 
Ser. 17-42, Class IC, IO, 4.50%, 8/20/41  3,156,570  684,169 
Ser. 11-140, Class BI, IO, 4.50%, 12/20/40  114,707  13,019 
Ser. 11-18, Class PI, IO, 4.50%, 8/20/40  195,305  28,175 
Ser. 10-35, Class AI, IO, 4.50%, 3/20/40  3,609,041  775,872 
Ser. 10-35, Class DI, IO, 4.50%, 3/20/40  5,709,158  1,262,694 
Ser. 10-35, Class QI, IO, 4.50%, 3/20/40  3,188,249  697,972 
Ser. 13-151, Class IB, IO, 4.50%, 2/20/40  3,630,626  776,068 
Ser. 10-9, Class QI, IO, 4.50%, 1/20/40  2,191,392  455,128 
Ser. 09-121, Class BI, IO, 4.50%, 12/16/39  1,791,683  414,255 
Ser. 10-168, Class PI, IO, 4.50%, 11/20/39  637,153  64,786 
Ser. 10-158, Class IP, IO, 4.50%, 6/20/39  1,666,021  133,731 
IFB Ser. 13-129, Class SN, IO, ((-1 x 1 Month US LIBOR) + 6.15%),     
4.064%, 9/20/43  1,429,351  206,255 
IFB Ser. 14-20, Class SQ, IO, ((-1 x 1 Month US LIBOR) + 6.10%),     
4.014%, 7/20/43  5,551,175  705,721 
Ser. 17-11, Class PI, IO, 4.00%, 12/20/46  4,100,729  676,620 
Ser. 16-29, IO, 4.00%, 2/16/46  2,981,535  607,488 
Ser. 15-186, Class AI, IO, 4.00%, 12/20/45  8,009,878  1,578,186 
Ser. 15-53, Class MI, IO, 4.00%, 4/16/45  4,607,611  1,026,410 
Ser. 15-187, Class JI, IO, 4.00%, 3/20/45  5,335,579  1,012,379 
Ser. 15-40, IO, 4.00%, 3/20/45  5,080,912  1,059,086 
Ser. 15-64, Class YI, IO, 4.00%, 11/20/44  4,997,145  927,220 
Ser. 17-93, Class TI, IO, 4.00%, 3/20/44  10,144,003  1,648,400 
Ser. 14-4, Class IC, IO, 4.00%, 1/20/44  1,726,828  331,320 
Ser. 14-100, Class NI, IO, 4.00%, 6/20/43  7,916,775  1,125,053 
Ser. 13-165, Class IL, IO, 4.00%, 3/20/43  1,738,395  329,600 
Ser. 12-56, Class IB, IO, 4.00%, 4/20/42  1,503,169  299,085 
Ser. 12-47, Class CI, IO, 4.00%, 3/20/42  3,909,228  763,431 
IFB Ser. 14-119, Class SA, IO, ((-1 x 1 Month US LIBOR) + 5.60%),     
3.514%, 8/20/44  5,910,616  768,380 
Ser. 17-165, Class IM, IO, 3.50%, 11/20/47  4,691,881  920,641 
Ser. 17-118, Class KI, IO, 3.50%, 10/20/46  3,235,711  472,964 

 

Premier Income Trust 27 

 



  Principal   
MORTGAGE-BACKED SECURITIES (42.1%)* cont.  amount  Value 
Agency collateralized mortgage obligations cont.     
Government National Mortgage Association     
Ser. 16-48, Class MI, IO, 3.50%, 4/16/46  $3,982,099  $930,179 
Ser. 15-111, Class IJ, IO, 3.50%, 8/20/45  5,509,246  980,266 
Ser. 15-95, Class PI, IO, 3.50%, 7/20/45  4,765,036  857,707 
Ser. 15-64, Class PI, IO, 3.50%, 5/20/45  3,833,511  660,974 
Ser. 13-76, IO, 3.50%, 5/20/43  6,247,524  1,061,329 
Ser. 13-28, IO, 3.50%, 2/20/43  1,928,148  334,553 
Ser. 13-54, Class JI, IO, 3.50%, 2/20/43  2,994,983  531,250 
Ser. 13-37, Class JI, IO, 3.50%, 1/20/43  4,375,254  750,444 
Ser. 13-14, IO, 3.50%, 12/20/42  9,668,948  1,420,852 
Ser. 13-27, Class PI, IO, 3.50%, 12/20/42  3,072,327  517,626 
Ser. 12-136, Class BI, IO, 3.50%, 11/20/42  3,970,805  814,734 
Ser. 12-140, Class IC, IO, 3.50%, 11/20/42  4,970,861  1,020,956 
Ser. 12-113, Class ID, IO, 3.50%, 9/20/42  2,257,430  487,850 
Ser. 15-62, Class IL, IO, 3.50%, 2/16/42  6,518,488  822,177 
Ser. 15-52, Class KI, IO, 3.50%, 11/20/40  6,692,802  889,507 
Ser. 15-96, Class NI, IO, 3.50%, 1/20/39  4,751,121  485,978 
Ser. 15-124, Class DI, IO, 3.50%, 1/20/38  3,997,112  461,167 
Ser. 14-44, Class IA, IO, 3.50%, 5/20/28  11,428,792  1,146,422 
Ser. 16-H16, Class EI, IO, 3.197%, 6/20/66 W   7,979,739  921,660 
Ser. 17-H16, Class JI, IO, 2.617%, 8/20/67 W   20,859,262  2,998,519 
Ser. 17-H16, Class FI, IO, 2.535%, 8/20/67 W   8,056,743  997,022 
Ser. 15-H15, Class BI, IO, 2.466%, 6/20/65 W   5,778,412  570,624 
Ser. 17-H02, Class BI, IO, 2.36%, 1/20/67 W   6,802,281  884,977 
Ser. 16-H18, Class QI, IO, 2.304%, 6/20/66 W   7,523,130  946,854 
Ser. 16-H17, Class KI, IO, 2.303%, 7/20/66 W   5,431,067  610,995 
Ser. 17-H06, Class BI, IO, 2.282%, 2/20/67 W   10,990,684  1,355,151 
Ser. 17-H16, Class IH, IO, 2.135%, 7/20/67 W   14,461,157  1,367,997 
Ser. 17-H08, Class NI, IO, 2.111%, 3/20/67 W   14,319,356  1,702,571 
Ser. 15-H10, Class BI, IO, 2.068%, 4/20/65 W   6,549,613  590,356 
Ser. 18-H03, Class XI, IO, 2.051%, 2/20/68 W   10,512,112  1,481,157 
Ser. 17-H19, Class MI, IO, 2.031%, 4/20/67 W   5,354,474  631,828 
Ser. 16-H03, Class DI, IO, 2.015%, 12/20/65 W   9,328,593  886,216 
Ser. 16-H09, Class BI, IO, 2.006%, 4/20/66 W   11,631,594  1,166,335 
Ser. 17-H16, Class IG, IO, 1.935%, 7/20/67 W   19,390,945  1,939,094 
Ser. 17-H12, Class QI, IO, 1.923%, 5/20/67 W   9,634,870  1,173,219 
Ser. 16-H06, Class DI, IO, 1.876%, 7/20/65  13,349,775  1,081,679 
Ser. 16-H23, Class NI, IO, 1.864%, 10/20/66 W   29,086,293  3,554,345 
Ser. 15-H25, Class EI, IO, 1.84%, 10/20/65 W   8,058,079  711,528 
Ser. 15-H20, Class AI, IO, 1.819%, 8/20/65 W   8,373,361  764,488 
Ser. 16-H22, Class AI, IO, 1.808%, 10/20/66 W   10,937,532  1,297,848 
Ser. 17-H11, Class DI, IO, 1.794%, 5/20/67 W   9,651,451  1,097,853 
FRB Ser. 15-H08, Class CI, IO, 1.785%, 3/20/65 W   6,802,311  597,733 
Ser. 15-H23, Class BI, IO, 1.721%, 9/20/65 W   9,953,895  843,095 
Ser. 17-H09, IO, 1.705%, 4/20/67 W   13,082,532  1,367,347 
Ser. 16-H24, Class CI, IO, 1.688%, 10/20/66 W   7,206,853  620,279 
Ser. 16-H14, IO, 1.667%, 6/20/66 W   8,500,817  590,246 
Ser. 13-H08, Class CI, IO, 1.664%, 2/20/63 W   12,701,639  694,780 
Ser. 15-H20, Class CI, IO, 1.64%, 8/20/65 W   9,934,879  1,037,152 

 

28 Premier Income Trust 

 



  Principal   
MORTGAGE-BACKED SECURITIES (42.1%)* cont.  amount  Value 
Agency collateralized mortgage obligations cont.     
Government National Mortgage Association     
Ser. 14-H21, Class BI, IO, 1.538%, 10/20/64 W   $11,582,792  $808,479 
Ser. 15-H24, Class AI, IO, 1.534%, 9/20/65 W   8,734,351  858,176 
Ser. 16-H03, Class AI, IO, 1.505%, 1/20/66 W   8,825,050  838,380 
Ser. 16-H10, Class AI, IO, 1.441%, 4/20/66 W   19,509,777  1,463,077 
Ser. 16-H02, Class HI, IO, 1.31%, 1/20/66   11,682,451  995,345 
Ser. 16-H06, Class CI, IO, 1.203%, 2/20/66 W   12,500,566  872,014 
Ser. 15-H26, Class CI, IO, 0.873%, 8/20/65 W   25,634,623  340,940 
Ser. 06-36, Class OD, PO, zero %, 7/16/36  4,692  3,788 
    124,639,485 
Commercial mortgage-backed securities (8.9%)     
Banc of America Commercial Mortgage Trust 144A FRB Ser. 07-5,     
Class XW, IO, zero %, 2/10/51 W   26,573,840  266 
Bear Stearns Commercial Mortgage Securities Trust     
FRB Ser. 07-T26, Class AJ, 5.524%, 1/12/45 W   1,339,000  1,238,575 
Ser. 05-PWR7, Class D, 5.304%, 2/11/41 W   1,026,000  1,016,869 
Ser. 05-PWR7, Class B, 5.214%, 2/11/41 W   1,178,148  1,181,094 
Bear Stearns Commercial Mortgage Securities Trust 144A     
FRB Ser. 07-T28, Class D, 5.612%, 9/11/42 W   828,000  736,920 
FRB Ser. 06-PW11, Class B, 5.27%, 3/11/39 W   1,091,922  709,968 
FRB Ser. 06-PW11, Class C, 5.27%, 3/11/39 (In default)  W   1,554,000  155,711 
FRB Ser. 06-PW14, Class XW, IO, 0.322%, 12/11/38 W   1,165,985  6,237 
CD Mortgage Trust 144A FRB Ser. 07-CD5, Class XS, IO,     
zero %, 11/15/44 W   3,940,315  154 
CFCRE Commercial Mortgage Trust 144A     
FRB Ser. 11-C2, Class E, 5.755%, 12/15/47 W   1,068,000  1,033,201 
FRB Ser. 11-C2, Class F, 5.25%, 12/15/47 W   2,275,000  2,019,763 
COBALT CMBS Commercial Mortgage Trust FRB Ser. 07-C3,     
Class AJ, 5.82%, 5/15/46 W   619,366  627,290 
COMM Mortgage Pass-Through Certificates 144A Ser. 12-CR3,     
Class F, 4.75%, 10/15/45 W   1,755,510  1,215,638 
COMM Mortgage Trust 144A     
FRB Ser. 12-CR3, Class E, 4.755%, 10/15/45 W   700,000  590,030 
Ser. 13-LC13, Class E, 3.719%, 8/10/46   1,331,000  904,936 
Credit Suisse Commercial Mortgage Trust FRB Ser. 06-C5, Class AX,     
IO, 0.638%, 12/15/39 W   5,072,264  32,336 
Credit Suisse Commercial Mortgage Trust 144A FRB Ser. 07-C4,     
Class C, 6.035%, 9/15/39 W   463,650  469,868 
Crest, Ltd. 144A Ser. 03-2A, Class E2, 8.00%, 12/28/38     
(Cayman Islands)  442,097  456,244 
CSAIL Commercial Mortgage Trust 144A FRB Ser. 15-C1, Class D,     
3.797%, 4/15/50 W   2,386,000  2,112,006 
GCCFC Commercial Mortgage Trust FRB Ser. 05-GG5, Class B,     
5.429%, 4/10/37 W   77,003  76,560 
GMAC Commercial Mortgage Securities, Inc. Trust Ser. 04-C3,     
Class B, 4.965%, 12/10/41  52,450  53,227 
GS Mortgage Securities Corp. II 144A FRB Ser. 05-GG4, Class XC, IO,     
1.37%, 7/10/39 W   887,995  977 
GS Mortgage Securities Trust 144A Ser. 11-GC3, Class E,     
5.00%, 3/10/44 W   915,000  855,780 

 

Premier Income Trust 29 

 



  Principal   
MORTGAGE-BACKED SECURITIES (42.1%)* cont.  amount  Value 
Commercial mortgage-backed securities cont.     
JPMBB Commercial Mortgage Securities Trust 144A     
FRB Ser. 14-C18, Class D, 4.814%, 2/15/47 W   $2,236,000  $1,955,196 
FRB Ser. 13-C14, Class E, 4.568%, 8/15/46 W   1,178,000  956,779 
FRB Ser. C14, Class D, 4.568%, 8/15/46 W   1,335,000  1,210,386 
FRB Ser. 14-C18, Class E, 4.314%, 2/15/47 W   914,000  655,963 
FRB Ser. 14-C25, Class D, 3.945%, 11/15/47 W   2,523,000  2,016,402 
Ser. 14-C25, Class E, 3.332%, 11/15/47 W   1,823,000  1,105,890 
JPMorgan Chase Commercial Mortgage Securities Trust 144A     
FRB Ser. 07-CB20, Class C, 6.233%, 2/12/51 W   415,447  424,795 
FRB Ser. 07-CB20, Class E, 6.233%, 2/12/51 W   757,000  764,570 
FRB Ser. 11-C3, Class F, 5.676%, 2/15/46 W   1,113,000  1,076,894 
FRB Ser. 12-C6, Class E, 5.141%, 5/15/45 W   1,115,000  982,963 
FRB Ser. 12-C8, Class E, 4.654%, 10/15/45 W   173,000  162,330 
FRB Ser. 12-LC9, Class E, 4.372%, 12/15/47   850,000  776,290 
FRB Ser. 13-LC11, Class E, 3.25%, 4/15/46 W   1,807,000  1,300,424 
FRB Ser. 07-CB20, Class X1, IO, zero %, 2/12/51 W   6,484,735  65 
LB-UBS Commercial Mortgage Trust FRB Ser. 06-C6, Class C,     
5.482%, 9/15/39 (In default)  W   3,041,000  152,050 
LSTAR Commercial Mortgage Trust 144A FRB Ser. 15-3, Class C,     
3.096%, 4/20/48 W   977,000  848,173 
Merrill Lynch Mortgage Trust Ser. 04-KEY2, Class D,     
5.046%, 8/12/39 W   471,423  471,630 
Merrill Lynch Mortgage Trust 144A FRB Ser. 08-C1, Class D,     
6.382%, 2/12/51 W   812,000  813,218 
Mezz Cap Commercial Mortgage Trust 144A FRB Ser. 07-C5, Class X,     
IO, 5.818%, 12/15/49 W   726,759  330 
ML-CFC Commercial Mortgage Trust FRB Ser. 06-4, Class C,     
5.324%, 12/12/49 W   2,239,594  2,203,515 
Morgan Stanley Bank of America Merrill Lynch Trust 144A     
Ser. 14-C17, Class D, 4.703%, 8/15/47 W   2,403,000  2,046,993 
FRB Ser. 12-C6, Class G, 4.50%, 11/15/45 W   830,000  599,475 
FRB Ser. 13-C10, Class E, 4.083%, 7/15/46 W   2,860,000  2,284,096 
FRB Ser. 13-C10, Class F, 4.083%, 7/15/46 W   1,164,000  924,532 
Ser. 14-C17, Class E, 3.50%, 8/15/47  1,025,000  662,691 
Ser. 14-C18, Class D, 3.389%, 10/15/47  958,000  713,109 
Morgan Stanley Capital I Trust     
Ser. 07-HQ11, Class C, 5.558%, 2/12/44 W   995,834  249,158 
Ser. 06-HQ10, Class B, 5.448%, 11/12/41 W   1,600,000  1,514,831 
Morgan Stanley Capital I Trust 144A     
FRB Ser. 08-T29, Class F, 6.166%, 1/11/43 W   798,000  773,661 
FRB Ser. 04-RR, Class F7, 6.00%, 4/28/39 W   525,922  521,767 
STRIPS CDO 144A Ser. 03-1A, Class N, IO, 1.198%, 3/24/19 (Cayman     
Islands) (In default)  W   376,000  3,572 
TIAA Real Estate CDO, Ltd. 144A Ser. 03-1A, Class E,     
8.00%, 12/28/38  1,081,996  90,347 
UBS-Barclays Commercial Mortgage Trust 144A Ser. 12-C2, Class F,     
4.893%, 5/10/63 W   1,476,000  996,526 
Wachovia Bank Commercial Mortgage Trust     
FRB Ser. 06-C26, Class AJ, 6.026%, 6/15/45 W   542,105  508,711 
FRB Ser. 07-C34, IO, 0.156%, 5/15/46 W   5,177,013  2,459 

 

30 Premier Income Trust 

 



  Principal   
MORTGAGE-BACKED SECURITIES (42.1%)* 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 W   $1,500,000  $1,050,000 
Wells Fargo Commercial Mortgage Trust 144A     
FRB Ser. 13-LC12, Class D, 4.288%, 7/15/46 W   456,000  398,623 
Ser. 14-LC16, Class D, 3.938%, 8/15/50  2,734,000  2,222,103 
WF-RBS Commercial Mortgage Trust 144A     
Ser. 11-C4, Class F, 5.00%, 6/15/44 W   2,560,000  1,755,387 
FRB Ser. 14-C19, Class E, 4.956%, 3/15/47 W   1,520,000  1,112,529 
FRB Ser. 12-C10, Class D, 4.444%, 12/15/45 W   700,000  600,906 
Ser. 13-C12, Class E, 3.50%, 3/15/48  1,038,000  766,619 
    53,169,608 
Residential mortgage-backed securities (non-agency) (12.3%)     
BCAP, LLC Trust 144A FRB Ser. 12-RR5, Class 4A8, (1 Month     
US LIBOR + 0.17%), 2.261%, 6/26/35  120,235  119,243 
Bear Stearns Alt-A Trust     
FRB Ser. 04-3, Class B, (1 Month US LIBOR + 2.93%),     
4.989%, 4/25/34  625,254  650,745 
FRB Ser. 05-7, Class 21A1, 4.461%, 9/25/35 W   456,052  431,511 
Chevy Chase Funding LLC Mortgage-Backed Certificates 144A FRB     
Ser. 06-4A, Class A2, (1 Month US LIBOR + 0.18%), 2.244%, 11/25/47  602,765  504,575 
Citigroup Mortgage Loan Trust FRB Ser. 07-AR5, Class 1A1A,     
3.754%, 4/25/37 W   463,947  462,630 
Citigroup Mortgage Loan Trust, Inc. FRB Ser. 07-AMC3, Class A2D,     
(1 Month US LIBOR + 0.35%), 2.414%, 3/25/37  2,777,930  2,406,003 
Countrywide Alternative Loan Trust     
FRB Ser. 06-OA7, Class 1A1, 2.718%, 6/25/46 W   1,640,724  1,456,963 
FRB Ser. 06-OA10, Class 1A1, (1 Month US LIBOR + 0.96%),     
2.614%, 8/25/46  557,593  485,961 
FRB Ser. 06-OA7, Class 1A2, (1 Month US LIBOR + 0.94%),     
2.594%, 6/25/46  980,521  883,753 
FRB Ser. 05-59, Class 1A1, (1 Month US LIBOR + 0.33%),     
2.416%, 11/20/35  2,542,741  2,494,121 
FRB Ser. 05-38, Class A3, (1 Month US LIBOR + 0.35%),     
2.414%, 9/25/35  1,453,454  1,423,664 
FRB Ser. 06-45T1, Class 2A7, (1 Month US LIBOR + 0.34%),     
2.404%, 2/25/37  938,323  589,612 
FRB Ser. 07-OH1, Class A1D, (1 Month US LIBOR + 0.21%),     
2.274%, 4/25/47  957,682  873,717 
FRB Ser. 06-OA10, Class 2A1, (1 Month US LIBOR + 0.19%),     
2.254%, 8/25/46  870,687  735,731 
FRB Ser. 06-OA10, Class 3A1, (1 Month US LIBOR + 0.19%),     
2.254%, 8/25/46  1,164,817  990,094 
FRB Ser. 06-OA10, Class 4A1, (1 Month US LIBOR + 0.19%),     
2.254%, 8/25/46  5,717,632  4,814,761 
Deutsche Alt-A Securities Mortgage Loan Trust FRB Ser. 06-AR4,     
Class A2, (1 Month US LIBOR + 0.19%), 2.254%, 12/25/36  1,035,473  625,829 
Federal Home Loan Mortgage Corporation     
Structured Agency Credit Risk Debt FRN Ser. 15-HQA2, Class B,     
(1 Month US LIBOR + 10.50%), 12.564%, 5/25/28  829,804  1,098,427 
Structured Agency Credit Risk Debt FRN Ser. 16-DNA1, Class B,     
(1 Month US LIBOR + 10.00%), 12.064%, 7/25/28  2,032,625  2,714,034 

 

Premier Income Trust 31 

 



  Principal   
MORTGAGE-BACKED SECURITIES (42.1%)* cont.  amount  Value 
Residential mortgage-backed securities (non-agency) cont.     
Federal Home Loan Mortgage Corporation     
Structured Agency Credit Risk Debt FRN Ser. 15-DNA3, Class B,     
(1 Month US LIBOR + 9.35%), 11.414%, 4/25/28  $1,491,404  $1,942,318 
Structured Agency Credit Risk Debt FRN Ser. 15-DNA2, Class B,     
(1 Month US LIBOR + 7.55%), 9.614%, 12/25/27  1,041,785  1,294,522 
Structured Agency Credit Risk Debt FRN Ser. 16-HQA2, Class M3,     
(1 Month US LIBOR + 5.15%), 7.214%, 11/25/28  1,744,200  2,075,942 
Structured Agency Credit Risk Debt FRN Ser. 17-DNA1, Class B1,     
(1 Month US LIBOR + 4.95%), 7.014%, 7/25/29  570,000  651,633 
Structured Agency Credit Risk Debt FRN Ser. 16-HQA3, Class M3,     
(1 Month US LIBOR + 3.85%), 5.914%, 3/25/29  640,000  719,539 
Federal National Mortgage Association     
Connecticut Avenue Securities FRB Ser. 16-C02, Class 1B,     
(1 Month US LIBOR + 12.25%), 14.314%, 9/25/28  2,315,827  3,430,961 
Connecticut Avenue Securities FRB Ser. 16-C03, Class 1B,     
(1 Month US LIBOR + 11.75%), 13.814%, 10/25/28  1,299,741  1,846,383 
Connecticut Avenue Securities FRB Ser. 16-C01, Class 1B,     
(1 Month US LIBOR + 11.75%), 13.814%, 8/25/28  1,208,934  1,747,216 
Connecticut Avenue Securities FRB Ser. 16-C05, Class 2B,     
(1 Month US LIBOR + 10.75%), 12.814%, 1/25/29  269,630  349,360 
Connecticut Avenue Securities FRB Ser. 16-C03, Class 2M2,     
(1 Month US LIBOR + 5.90%), 7.964%, 10/25/28  4,285,000  4,987,454 
Connecticut Avenue Securities FRB Ser. 15-C04, Class 1M2,     
(1 Month US LIBOR + 5.70%), 7.764%, 4/25/28  4,237,883  4,935,956 
Connecticut Avenue Securities FRB Ser. 15-C04, Class 2M2,     
(1 Month US LIBOR + 5.55%), 7.614%, 4/25/28  633,793  718,848 
Connecticut Avenue Securities FRB Ser. 17-C02, Class 2B1,     
(1 Month US LIBOR + 5.50%), 7.564%, 9/25/29  1,059,000  1,215,143 
Connecticut Avenue Securities FRB Ser. 15-C03, Class 1M2,     
(1 Month US LIBOR + 5.00%), 7.064%, 7/25/25  3,806,818  4,309,719 
Connecticut Avenue Securities FRB Ser. 15-C03, Class 2M2,     
(1 Month US LIBOR + 5.00%), 7.064%, 7/25/25  1,469,369  1,634,488 
Connecticut Avenue Securities FRB Ser. 17-C03, Class 1B1,     
(1 Month US LIBOR + 4.85%), 6.914%, 10/25/29  1,810,000  2,048,416 
Connecticut Avenue Securities FRB Ser. 16-C06, Class 1M2,     
(1 Month US LIBOR + 4.25%), 6.314%, 4/25/29  240,000  274,032 
Connecticut Avenue Securities FRB Ser. 16-C04, Class 1M2,     
(1 Month US LIBOR + 4.25%), 6.314%, 1/25/29  180,000  203,237 
Connecticut Avenue Securities FRB Ser. 15-C02, Class 1M2,     
(1 Month US LIBOR + 4.00%), 6.064%, 5/25/25  144,870  159,092 
Connecticut Avenue Securities FRB Ser. 17-C02, Class 2M2,     
(1 Month US LIBOR + 3.65%), 5.714%, 9/25/29  500,000  547,836 
Connecticut Avenue Securities FRB Ser. 17-C05, Class 1B1,     
(1 Month US LIBOR + 3.60%), 5.664%, 1/25/30  450,000  461,341 
Connecticut Avenue Securities FRB Ser. 17-C01, Class 1M2,     
(1 Month US LIBOR + 3.55%), 5.614%, 7/25/29  370,000  403,882 
Connecticut Avenue Securities FRB Ser. 17-C06, Class 2M2,     
(1 Month US LIBOR + 2.80%), 4.864%, 2/25/30  310,000  323,075 
GSR Mortgage Loan Trust FRB Ser. 07-OA1, Class 2A3A, (1 Month     
US LIBOR + 0.31%), 2.374%, 5/25/37  1,173,888  869,467 

 

32 Premier Income Trust 

 



  Principal   
MORTGAGE-BACKED SECURITIES (42.1%)* cont.  amount  Value 
Residential mortgage-backed securities (non-agency) cont.     
JPMorgan Alternative Loan Trust FRB Ser. 07-A2, Class 12A1, IO,     
(1 Month US LIBOR + 0.20%), 2.264%, 6/25/37  $971,110  $578,660 
MortgageIT Trust FRB Ser. 05-3, Class M2, (1 Month US LIBOR     
+ 0.80%), 2.859%, 8/25/35  359,938  318,192 
Oaktown Re, Ltd. 144A     
FRB Ser. 17-1A, Class B1, (1 Month US LIBOR + 6.00%), 7.814%,     
4/25/27 (Bermuda)  550,000  587,125 
FRB Ser. 18-1A, Class M2, (1 Month US LIBOR + 2.85%), 4.881%,     
7/25/28 (Bermuda)  2,230,000  2,232,788 
Radnor Re, Ltd. 144A FRB Ser. 18-1, Class M2, (1 Month US LIBOR     
+ 2.70%), 4.764%, 3/25/28 (Bermuda)  620,000  623,352 
Structured Asset Mortgage Investments II Trust     
FRB Ser. 06-AR7, Class A1A, (1 Month US LIBOR + 0.21%),     
2.274%, 8/25/36  1,017,459  890,276 
FRB Ser. 07-AR1, Class 2A1, (1 Month US LIBOR + 0.18%),     
2.244%, 1/25/37  1,342,794  1,285,824 
WaMu Mortgage Pass-Through Certificates Trust     
FRB Ser. 05-AR14, Class 1A2, 3.431%, 12/25/35 W   484,693  485,014 
FRB Ser. 05-AR10, Class 1A3, 3.389%, 9/25/35 W   1,142,817  1,145,006 
FRB Ser. 05-AR13, Class A1C3, (1 Month US LIBOR + 0.49%),     
2.554%, 10/25/45  2,075,167  2,096,694 
FRB Ser. 05-AR19, Class A1C4, (1 Month US LIBOR + 0.40%),     
2.464%, 12/25/45  786,874  769,721 
FRB Ser. 05-AR19, Class A1B3, (1 Month US LIBOR + 0.35%),     
2.414%, 12/25/45  534,561  516,918 
Wells Fargo Mortgage Backed Securities Trust     
FRB Ser. 06-AR5, Class 1A1, 4.184%, 4/25/36 W   431,124  433,279 
FRB Ser. 06-AR2, Class 1A1, 3.898%, 3/25/36 W   441,066  442,109 
    73,316,192 
Total mortgage-backed securities (cost $245,590,314)    $251,125,285 
 
  Principal   
CORPORATE BONDS AND NOTES (31.7%)*  amount  Value 
Basic materials (4.1%)     
A Schulman, Inc. company guaranty sr. unsec. unsub. notes     
6.875%, 6/1/23  $161,000  $168,446 
Alcoa Nederland Holding BV 144A company guaranty sr. unsec.     
unsub. notes 6.125%, 5/15/28 (Netherlands)  400,000  412,000 
Allegheny Technologies, Inc. sr. unsec. unsub. notes     
7.875%, 8/15/23  349,000  376,048 
Allegheny Technologies, Inc. sr. unsec. unsub. notes     
5.95%, 1/15/21  85,000  86,245 
Alpha 2 BV 144A sr. unsec. notes 8.75%, 6/1/23 (Netherlands)  ‡‡   260,000  260,650 
Alpha 3 BV/Alpha US Bidco, Inc. 144A company guaranty sr. unsec.     
notes 6.25%, 2/1/25 (Netherlands)  440,000  431,200 
American Woodmark Corp. 144A company guaranty sr. unsec.     
notes 4.875%, 3/15/26  439,000  416,501 
Apergy Corp. 144A sr. unsec. notes 7.875%, 7/15/26  224,000  225,546 
ArcelorMittal SA sr. unsec. unsub. bonds 6.125%, 6/1/25 (France)  207,000  224,078 
ArcelorMittal SA sr. unsec. unsub. notes 7.00%, 10/15/39 (France)  369,000  416,048 

 

Premier Income Trust 33 

 



  Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.  amount  Value 
Basic materials cont.     
Axalta Coating Systems, LLC 144A company guaranty sr. unsec.     
unsub. notes 4.875%, 8/15/24  $420,000  $415,800 
Beacon Escrow Corp. 144A sr. unsec. notes 4.875%, 11/1/25  327,000  304,617 
Beacon Roofing Supply, Inc. company guaranty sr. unsec. unsub.     
notes 6.375%, 10/1/23  332,000  343,620 
Big River Steel, LLC/BRS Finance Corp. 144A company guaranty sr.     
notes 7.25%, 9/1/25  498,000  517,920 
BMC East, LLC 144A company guaranty sr. notes 5.50%, 10/1/24  657,000  643,860 
Boise Cascade Co. 144A company guaranty sr. unsec. notes     
5.625%, 9/1/24  777,000  778,989 
Builders FirstSource, Inc. 144A company guaranty sr. unsub. notes     
5.625%, 9/1/24  525,000  514,500 
BWAY Holding Co. 144A sr. notes 5.50%, 4/15/24  360,000  351,450 
BWAY Holding Co. 144A sr. unsec. notes 7.25%, 4/15/25  950,000  925,656 
Cemex Finance, LLC 144A company guaranty sr. notes 6.00%,     
4/1/24 (Mexico)  485,000  501,587 
Cemex SAB de CV 144A company guaranty sr. sub. notes 5.70%,     
1/11/25 (Mexico)  200,000  203,500 
CF Industries, Inc. company guaranty sr. unsec. bonds     
4.95%, 6/1/43  533,000  450,385 
Chemours Co. (The) company guaranty sr. unsec. notes     
5.375%, 5/15/27  122,000  118,645 
Chemours Co. (The) company guaranty sr. unsec. unsub. notes     
7.00%, 5/15/25  136,000  145,520 
Compass Minerals International, Inc. 144A company guaranty sr.     
unsec. notes 4.875%, 7/15/24  761,000  703,925 
Constellium NV 144A company guaranty sr. unsec. notes 5.875%,     
2/15/26 (Netherlands)  500,000  490,625 
Constellium NV 144A company guaranty sr. unsec. notes 5.75%,     
5/15/24 (Netherlands)  425,000  419,156 
Cornerstone Chemical Co. 144A company guaranty sr. notes     
6.75%, 8/15/24  353,000  345,940 
CPG Merger Sub, LLC 144A company guaranty sr. unsec. notes     
8.00%, 10/1/21  222,000  224,220 
Crown Americas, LLC/Crown Americas Capital Corp. VI 144A     
company guaranty sr. unsec. notes 4.75%, 2/1/26  315,000  296,100 
First Quantum Minerals, Ltd. 144A company guaranty sr. unsec.     
notes 7.50%, 4/1/25 (Canada)  485,000  488,031 
First Quantum Minerals, Ltd. 144A company guaranty sr. unsec.     
notes 7.25%, 5/15/22 (Canada)  200,000  201,000 
First Quantum Minerals, Ltd. 144A company guaranty sr. unsec.     
notes 6.875%, 3/1/26 (Canada)  295,000  287,256 
Flex Acquisition Co., Inc. 144A sr. unsec. notes 6.875%, 1/15/25  242,000  235,345 
Freeport-McMoRan, Inc. company guaranty sr. unsec. notes     
6.875%, 2/15/23 (Indonesia)  340,000  363,800 
Freeport-McMoRan, Inc. company guaranty sr. unsec. unsub.     
notes 5.45%, 3/15/43 (Indonesia)  151,000  134,088 
GCP Applied Technologies, Inc. 144A sr. unsec. notes     
5.50%, 4/15/26  468,000  463,320 
HudBay Minerals, Inc. 144A company guaranty sr. unsec. notes     
7.625%, 1/15/25 (Canada)  320,000  330,400 

 

34 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.  amount  Value 
Basic materials cont.     
Ingevity Corp. 144A sr. unsec. notes 4.50%, 2/1/26  $448,000  $420,000 
James Hardie International Finance DAC 144A sr. unsec. bonds     
5.00%, 1/15/28 (Ireland)  200,000  190,000 
Joseph T Ryerson & Son, Inc. 144A sr. notes 11.00%, 5/15/22  178,000  196,245 
Kraton Polymers, LLC/Kraton Polymers Capital Corp. 144A     
company guaranty sr. unsec. notes 7.00%, 4/15/25  339,000  349,170 
Louisiana-Pacific Corp. company guaranty sr. unsec. unsub. notes     
4.875%, 9/15/24  468,000  463,320 
Mercer International, Inc. company guaranty sr. unsec. notes     
7.75%, 12/1/22 (Canada)  106,000  111,300 
Mercer International, Inc. sr. unsec. notes 6.50%, 2/1/24 (Canada)  214,000  218,815 
Mercer International, Inc. 144A sr. unsec. notes 5.50%,     
1/15/26 (Canada)  160,000  156,000 
New Gold, Inc. 144A company guaranty sr. unsec. unsub. notes     
6.25%, 11/15/22 (Canada)  197,000  185,180 
New Gold, Inc. 144A sr. unsec. notes 6.375%, 5/15/25 (Canada)  90,000  82,350 
NOVA Chemicals Corp. 144A sr. unsec. bonds 5.25%,     
6/1/27 (Canada)  300,000  280,797 
Novelis Corp. 144A company guaranty sr. unsec. bonds     
5.875%, 9/30/26  39,000  37,391 
Novelis Corp. 144A company guaranty sr. unsec. notes     
6.25%, 8/15/24  1,015,000  1,016,269 
Pisces Midco, Inc. 144A sr. notes 8.00%, 4/15/26  304,000  313,120 
PQ Corp. 144A company guaranty sr. unsec. notes 5.75%, 12/15/25  266,000  264,005 
Smurfit Kappa Treasury Funding DAC company guaranty sr. unsec.     
unsub. notes 7.50%, 11/20/25 (Ireland)  403,000  478,059 
Steel Dynamics, Inc. company guaranty sr. unsec. notes     
5.00%, 12/15/26  527,000  525,024 
Steel Dynamics, Inc. company guaranty sr. unsec. notes     
4.125%, 9/15/25  95,000  90,844 
Steel Dynamics, Inc. company guaranty sr. unsec. unsub. notes     
5.50%, 10/1/24  110,000  112,338 
Steel Dynamics, Inc. company guaranty sr. unsec. unsub. notes     
5.25%, 4/15/23  45,000  45,450 
Syngenta Finance NV 144A company guaranty sr. unsec. unsub.     
notes 5.182%, 4/24/28 (Switzerland)  325,000  315,234 
Syngenta Finance NV 144A company guaranty sr. unsec. unsub.     
notes 4.892%, 4/24/25 (Switzerland)  325,000  323,465 
Teck Resources, Ltd. company guaranty sr. unsec. unsub. notes     
4.75%, 1/15/22 (Canada)  148,000  152,440 
Teck Resources, Ltd. company guaranty sr. unsec. unsub. notes     
3.75%, 2/1/23 (Canada)  137,000  135,288 
TMS International Corp. 144A sr. unsec. notes 7.25%, 8/15/25  385,000  391,256 
TopBuild Corp. 144A company guaranty sr. unsec. notes     
5.625%, 5/1/26  410,000  401,800 
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc.     
144A sr. unsec. notes 5.375%, 9/1/25 (Luxembourg)  225,000  221,906 
Tronox Finance PLC 144A company guaranty sr. unsec. notes     
5.75%, 10/1/25 (United Kingdom)  125,000  120,469 
Tronox, Inc. 144A company guaranty sr. unsec. notes     
6.50%, 4/15/26  270,000  267,975 

 

Premier Income Trust 35 

 



  Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.  amount  Value 
Basic materials cont.     
U.S. Concrete, Inc. company guaranty sr. unsec. unsub. notes     
6.375%, 6/1/24  $527,000  $525,024 
Univar USA, Inc. 144A company guaranty sr. unsec. notes     
6.75%, 7/15/23  271,000  279,130 
USG Corp. 144A company guaranty sr. unsec. bonds     
4.875%, 6/1/27  379,000  385,633 
USG Corp. 144A company guaranty sr. unsec. notes 5.50%, 3/1/25  218,000  222,905 
Weekley Homes, LLC/Weekley Finance Corp. sr. unsec. notes     
6.00%, 2/1/23  125,000  120,625 
WR Grace & Co.- Conn. 144A company guaranty sr. unsec. notes     
5.625%, 10/1/24  270,000  283,500 
Zekelman Industries, Inc. 144A company guaranty sr. notes     
9.875%, 6/15/23  489,000  534,233 
    24,432,577 
Capital goods (1.9%)     
Advanced Disposal Services, Inc. 144A sr. unsec. notes     
5.625%, 11/15/24  289,000  285,388 
Allison Transmission, Inc. 144A company guaranty sr. unsec. notes     
4.75%, 10/1/27  332,000  308,760 
ARD Securities Finance SARL 144A sr. notes 8.75% (8.75%), 1/31/23     
(Luxembourg)  ‡‡   200,000  199,750 
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 144A     
company guaranty sr. unsec. notes 7.25%, 5/15/24 (Ireland)  630,000  656,775 
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 144A     
company guaranty sr. unsec. notes 6.00%, 2/15/25 (Ireland)  265,000  258,706 
ATS Automation Tooling Systems, Inc. 144A sr. unsec. notes 6.50%,     
6/15/23 (Canada)  250,000  255,859 
Berry Global, Inc. company guaranty notes 5.50%, 5/15/22  240,000  243,600 
Berry Global, Inc. company guaranty unsub. notes 5.125%, 7/15/23  154,000  152,845 
Berry Global, Inc. 144A notes 4.50%, 2/15/26  120,000  112,800 
Bombardier, Inc. 144A sr. unsec. notes 8.75%, 12/1/21 (Canada)  492,000  544,275 
Bombardier, Inc. 144A sr. unsec. notes 7.50%, 12/1/24 (Canada)  529,000  563,385 
Briggs & Stratton Corp. company guaranty sr. unsec. notes     
6.875%, 12/15/20  553,000  586,180 
Cortes NP Acquisition Corp. 144A sr. unsec. notes 9.25%, 10/15/24  273,000  269,246 
Crown Cork & Seal Co., Inc. company guaranty sr. unsec. bonds     
7.375%, 12/15/26  347,000  374,760 
FXI Holdings, Inc. 144A sr. notes 7.875%, 11/1/24  167,000  162,825 
Gates Global, LLC/Gates Global Co. 144A company guaranty sr.     
unsec. notes 6.00%, 7/15/22  343,000  345,144 
GFL Environmental, Inc. 144A sr. unsec. notes 5.375%,     
3/1/23 (Canada)  190,000  177,175 
Great Lakes Dredge & Dock Corp. company guaranty sr. unsec.     
notes 8.00%, 5/15/22  699,000  718,223 
Hulk Finance Corp. 144A sr. unsec. notes 7.00%, 6/1/26 (Canada)  753,000  709,703 
Oshkosh Corp. company guaranty sr. unsec. sub. notes     
5.375%, 3/1/25  215,000  221,988 
Park-Ohio Industries, Inc. company guaranty sr. unsec. notes     
6.625%, 4/15/27  428,000  432,280 
RBS Global, Inc./Rexnord, LLC 144A sr. unsec. notes     
4.875%, 12/15/25  385,000  369,600 

 

36 Premier Income Trust 

 



    Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.    amount  Value 
Capital goods cont.       
Tennant Co. company guaranty sr. unsec. unsub. notes       
5.625%, 5/1/25    $300,000  $298,500 
Tenneco, Inc. company guaranty sr. unsec. unsub. notes       
5.375%, 12/15/24    220,000  206,525 
Titan Acquisition, Ltd./Titan Co-Borrower, LLC. 144A sr. unsec.       
notes 7.75%, 4/15/26 (Canada)    390,000  348,933 
TransDigm, Inc. company guaranty sr. unsec. sub. notes       
6.50%, 5/15/25    115,000  116,294 
TransDigm, Inc. company guaranty sr. unsec. sub. notes       
6.375%, 6/15/26    382,000  383,910 
TransDigm, Inc. company guaranty sr. unsec. unsub. notes       
6.50%, 7/15/24    395,000  404,381 
Trident Merger Sub, Inc. 144A sr. unsec. notes 6.625%, 11/1/25    518,000  486,920 
Vertiv Intermediate Holding Corp. 144A sr. unsec. notes 12.00%,       
2/15/22  ‡‡     360,000  348,300 
Wabash National Corp. 144A company guaranty sr. unsec. notes       
5.50%, 10/1/25    537,000  508,808 
Wrangler Buyer Corp. 144A sr. unsec. notes 6.00%, 10/1/25    442,000  415,480 
      11,467,318 
Communication services (3.5%)       
Altice Financing SA 144A company guaranty sr. notes 6.625%,       
2/15/23 (Luxembourg)    400,000  403,000 
Altice Financing SA 144A company guaranty sr. unsub. notes       
7.50%, 5/15/26 (Luxembourg)    200,000  194,720 
Altice Luxembourg SA company guaranty sr. unsec. sub. notes       
Ser. REGS, 6.25%, 2/15/25 (Luxembourg)  EUR  200,000  227,439 
Altice Luxembourg SA 144A company guaranty sr. unsec. notes       
7.75%, 5/15/22 (Luxembourg)    $800,000  796,000 
Altice SA 144A company guaranty sr. unsec. notes 7.625%,       
2/15/25 (Luxembourg)    710,000  661,188 
Cablevision Systems Corp. sr. unsec. unsub. notes 8.00%, 4/15/20    400,000  419,620 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A company       
guaranty sr. unsec. bonds 5.50%, 5/1/26    655,000  643,538 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A company       
guaranty sr. unsec. notes 5.875%, 4/1/24    563,000  572,853 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A sr. unsec.       
notes 5.75%, 2/15/26    112,000  111,300 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A sr. unsec.       
unsub. notes 5.125%, 5/1/27    230,000  219,579 
CCO Holdings, LLC/CCO Holdings Capital Corp. 144A sr. unsec.       
unsub. notes 5.125%, 5/1/23    815,000  812,963 
CenturyLink, Inc. sr. unsec. unsub. notes 6.75%, 12/1/23    348,000  356,700 
CenturyLink, Inc. sr. unsec. unsub. notes 5.625%, 4/1/20    95,000  97,138 
Cequel Communications Holdings I, LLC/Cequel Capital Corp.       
144A sr. sub. notes 7.75%, 7/15/25    435,000  457,294 
Cequel Communications Holdings I, LLC/Cequel Capital Corp.       
144A sr. unsec. notes 7.50%, 4/1/28    310,000  319,688 
Cequel Communications Holdings I, LLC/Cequel Capital Corp.       
144A sr. unsec. unsub. notes 5.125%, 12/15/21    469,000  468,644 
Cequel Communications Holdings I, LLC/Cequel Capital Corp.       
144A sr. unsec. unsub. notes 5.125%, 12/15/21    197,000  196,508 

 

Premier Income Trust 37 

 



  Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.  amount  Value 
Communication services cont.     
CommScope Technologies Finance, LLC 144A sr. unsec. notes     
6.00%, 6/15/25  $693,000  $713,790 
CommScope Technologies, LLC 144A company guaranty sr. unsec.     
unsub. notes 5.00%, 3/15/27  308,000  296,065 
CSC Holdings, LLC sr. unsec. unsub. bonds 5.25%, 6/1/24  795,000  765,188 
CSC Holdings, LLC sr. unsec. unsub. notes 6.75%, 11/15/21  124,000  129,425 
CSC Holdings, LLC 144A sr. unsec. unsub. notes 10.125%, 1/15/23  860,000  946,000 
Digicel, Ltd. 144A company guaranty sr. unsec. notes 6.75%,     
3/1/23 (Jamaica)  1,110,000  954,600 
DISH DBS Corp. company guaranty sr. unsec. unsub. notes     
5.875%, 11/15/24  624,000  517,920 
Frontier Communications Corp. sr. unsec. notes 11.00%, 9/15/25  103,000  83,527 
Frontier Communications Corp. sr. unsec. notes 10.50%, 9/15/22  264,000  239,580 
Frontier Communications Corp. 144A company guaranty notes     
8.50%, 4/1/26  520,000  499,200 
Intelsat Connect Finance SA 144A company guaranty sr. unsec.     
sub. notes 12.50%, 4/1/22 (Luxembourg)  18,000  17,978 
Intelsat Jackson Holdings SA company guaranty sr. unsec. notes     
7.50%, 4/1/21 (Bermuda)  65,000  65,244 
Intelsat Jackson Holdings SA 144A company guaranty sr. notes     
8.00%, 2/15/24 (Bermuda)  15,000  15,825 
Intelsat Jackson Holdings SA 144A sr. unsec. notes 9.75%,     
7/15/25 (Bermuda)  663,000  708,581 
Level 3 Financing, Inc. company guaranty sr. unsec. unsub. notes     
5.625%, 2/1/23  175,000  176,313 
Quebecor Media, Inc. sr. unsec. unsub. notes 5.75%,     
1/15/23 (Canada)  88,000  90,530 
SFR Group SA 144A sr. bonds 6.25%, 5/15/24 (France)  450,000  447,188 
Sprint Capital Corp. company guaranty sr. unsec. unsub. notes     
6.875%, 11/15/28  543,000  522,638 
Sprint Communications, Inc. sr. unsec. notes 7.00%, 8/15/20  238,000  248,115 
Sprint Communications, Inc. 144A company guaranty sr. unsec.     
notes 9.00%, 11/15/18  243,000  247,131 
Sprint Corp. company guaranty sr. unsec. sub. notes     
7.875%, 9/15/23  929,000  991,708 
Sprint Corp. company guaranty sr. unsec. sub. notes     
7.25%, 9/15/21  465,000  488,831 
Sprint Spectrum Co., LLC/Sprint Spectrum Co. II, LLC/Sprint     
Spectrum Co. III, LLC 144A company guaranty sr. notes     
3.36%, 9/20/21  235,625  234,447 
T-Mobile USA, Inc. company guaranty sr. unsec. notes     
6.375%, 3/1/25  745,000  776,663 
T-Mobile USA, Inc. company guaranty sr. unsec. notes     
6.00%, 3/1/23  291,000  299,730 
T-Mobile USA, Inc. company guaranty sr. unsec. notes     
5.375%, 4/15/27  180,000  177,525 
T-Mobile USA, Inc. company guaranty sr. unsec. notes     
4.00%, 4/15/22  100,000  98,875 
T-Mobile USA, Inc. company guaranty sr. unsec. unsub. bonds     
4.75%, 2/1/28  295,000  273,524 

 

38 Premier Income Trust 

 



    Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.    amount  Value 
Communication services cont.       
T-Mobile USA, Inc. company guaranty sr. unsec. unsub. notes       
4.50%, 2/1/26    $125,000  $117,500 
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH       
company guaranty sr. bonds Ser. REGS, 6.25%, 1/15/29 (Germany)  EUR  639,000  840,531 
UPC Holding BV 144A sr. notes 5.50%, 1/15/28 (Netherlands)    $200,000  183,500 
Videotron, Ltd. company guaranty sr. unsec. unsub. notes 5.00%,       
7/15/22 (Canada)    662,000  673,585 
Videotron, Ltd./Videotron Ltee. 144A sr. unsec. notes 5.125%,       
4/15/27 (Canada)    170,000  167,025 
Virgin Media Secured Finance PLC company guaranty sr. notes       
Ser. REGS, 5.125%, 1/15/25 (United Kingdom)  GBP  100,000  133,560 
Virgin Media Secured Finance PLC 144A company guaranty sr.       
bonds 5.00%, 4/15/27 (United Kingdom)  GBP  255,000  327,621 
Windstream Services, LLC company guaranty sr. unsec. notes       
6.375%, 8/1/23    $536,000  306,860 
Ziggo Bond Finance BV 144A sr. unsec. bonds 4.625%,       
1/15/25 (Netherlands)  EUR  115,000  133,666 
      20,868,161 
Consumer cyclicals (5.1%)       
AMC Entertainment Holdings, Inc. company guaranty sr. unsec.       
notes 6.125%, 5/15/27    $549,000  532,530 
AMC Entertainment Holdings, Inc. company guaranty sr. unsec.       
sub. notes 5.875%, 11/15/26    120,000  117,000 
AMC Entertainment Holdings, Inc. company guaranty sr. unsec.       
sub. notes 5.875%, 2/15/22    84,000  85,470 
AMC Entertainment Holdings, Inc. company guaranty sr. unsec.       
sub. notes 5.75%, 6/15/25    355,000  350,119 
American Builders & Contractors Supply Co., Inc. 144A company       
guaranty sr. unsec. notes 5.875%, 5/15/26    85,000  84,681 
American Builders & Contractors Supply Co., Inc. 144A sr. unsec.       
notes 5.75%, 12/15/23    377,000  389,253 
Boyd Gaming Corp. company guaranty sr. unsec. sub. notes       
6.875%, 5/15/23    344,000  361,737 
Boyd Gaming Corp. 144A company guaranty sr. unsec. notes       
6.00%, 8/15/26    135,000  135,675 
Boyne USA, Inc. 144A company guaranty notes 7.25%, 5/1/25    125,000  130,625 
Brookfield Residential Properties, Inc./Brookfield Residential       
US Corp. 144A company guaranty sr. unsec. notes 6.125%,       
7/1/22 (Canada)    175,000  175,875 
Carriage Services, Inc. 144A sr. unsec. notes 6.625%, 6/1/26    275,000  281,875 
CBS Radio, Inc. 144A company guaranty sr. unsec. notes       
7.25%, 11/1/24    489,000  459,416 
Cinemark USA, Inc. company guaranty sr. unsec. notes       
5.125%, 12/15/22    165,000  165,825 
Cinemark USA, Inc. company guaranty sr. unsec. sub. notes       
4.875%, 6/1/23    140,000  137,942 
Clear Channel Worldwide Holdings, Inc. company guaranty sr.       
unsec. sub. notes 7.625%, 3/15/20    186,000  186,465 
Clear Channel Worldwide Holdings, Inc. company guaranty sr.       
unsec. unsub. notes 6.50%, 11/15/22    280,000  286,300 

 

Premier Income Trust 39 

 



    Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.    amount  Value 
Consumer cyclicals cont.       
Codere Finance 2 Luxembourg SA company guaranty sr. notes       
Ser. REGS, 6.75%, 11/1/21 (Luxembourg)  EUR  200,000  $225,053 
Constellation Merger Sub, Inc. 144A sr. unsec. notes 8.50%, 9/15/25    $884,000  835,380 
CRC Escrow Issuer, LLC/CRC Finco, Inc. 144A company guaranty sr.       
unsec. notes 5.25%, 10/15/25    465,000  447,563 
Diamond Resorts International, Inc. 144A sr. notes 7.75%, 9/1/23    700,000  729,750 
Diamond Resorts International, Inc. 144A sr. unsec. notes       
10.75%, 9/1/24    210,000  218,925 
Eldorado Resorts, Inc. company guaranty sr. unsec. unsub. notes       
7.00%, 8/1/23    163,000  171,310 
Gartner, Inc. 144A company guaranty sr. unsec. notes       
5.125%, 4/1/25    340,000  343,025 
GLP Capital LP/GLP Financing II, Inc. company guaranty sr. unsec.       
notes 5.25%, 6/1/25    250,000  254,375 
GLP Capital LP/GLP Financing II, Inc. company guaranty sr. unsec.       
unsub. notes 5.375%, 4/15/26    165,000  167,657 
Gray Television, Inc. 144A company guaranty sr. unsec. notes       
5.875%, 7/15/26    250,000  244,375 
Great Canadian Gaming Corp. 144A company guaranty sr. unsec.       
notes 6.625%, 7/25/22 (Canada)  CAD  541,000  425,693 
GW Honos Security Corp. 144A company guaranty sr. unsec. notes       
8.75%, 5/15/25 (Canada)    $253,000  253,316 
Hanesbrands, Inc. 144A company guaranty sr. unsec. unsub. notes       
4.625%, 5/15/24    320,000  311,200 
Hilton Worldwide Finance, LLC/Hilton Worldwide Finance Corp.       
company guaranty sr. unsec. notes 4.875%, 4/1/27    450,000  437,625 
Howard Hughes Corp. (The) 144A sr. unsec. notes 5.375%, 3/15/25    526,000  514,823 
iHeartCommunications, Inc. company guaranty sr. notes 9.00%,       
12/15/19 (In default)      674,000  518,980 
IHS Markit, Ltd. sr. unsec. sub. bonds 4.75%, 8/1/28       
(United Kingdom)    145,000  144,275 
IHS Markit, Ltd. 144A company guaranty notes 4.75%, 2/15/25       
(United Kingdom)    230,000  230,288 
IHS Markit, Ltd. 144A company guaranty sr. unsec. notes 4.00%,       
3/1/26 (United Kingdom)    75,000  71,531 
Jack Ohio Finance, LLC/Jack Ohio Finance 1 Corp. 144A company       
guaranty notes 10.25%, 11/15/22    854,000  925,523 
Jack Ohio Finance, LLC/Jack Ohio Finance 1 Corp. 144A company       
guaranty sr. notes 6.75%, 11/15/21    505,000  521,413 
Jacobs Entertainment, Inc. 144A notes 7.875%, 2/1/24    120,000  125,400 
JC Penney Corp., Inc. company guaranty sr. unsec. unsub. bonds       
7.40%, 4/1/37    235,000  135,125 
Jeld-Wen, Inc. 144A company guaranty sr. unsec. notes       
4.875%, 12/15/27    170,000  158,313 
Jeld-Wen, Inc. 144A company guaranty sr. unsec. notes       
4.625%, 12/15/25    195,000  185,250 
Lennar Corp. company guaranty sr. unsec. sub. notes       
5.875%, 11/15/24    207,000  213,728 
Lions Gate Capital Holdings, LLC 144A company guaranty sr.       
unsec. notes 5.875%, 11/1/24    404,000  413,090 

 

40 Premier Income Trust 

 



    Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.    amount  Value 
Consumer cyclicals cont.       
Live Nation Entertainment, Inc. 144A company guaranty sr. unsec.       
notes 4.875%, 11/1/24    $313,000  $308,696 
Live Nation Entertainment, Inc. 144A company guaranty sr. unsec.       
sub. notes 5.625%, 3/15/26    424,000  422,940 
Masaria Investments SAU sr. notes Ser. REGS, 5.00%,       
9/15/24 (Spain)  EUR  200,000  222,466 
Mattamy Group Corp. 144A sr. unsec. notes 6.875%,       
12/15/23 (Canada)    $85,000  86,896 
Mattamy Group Corp. 144A sr. unsec. notes 6.50%,       
10/1/25 (Canada)    230,000  225,400 
Meredith Corp. 144A sr. unsec. notes 6.875%, 2/1/26    445,000  448,338 
MGM Resorts International company guaranty sr. unsec. unsub.       
notes 6.625%, 12/15/21    337,000  358,484 
Navistar International Corp. 144A sr. unsec. notes 6.625%, 11/1/25    614,000  641,047 
Neiman Marcus Group, LLC (The) company guaranty sr. notes       
7.125%, 6/1/28    159,000  130,380 
Neiman Marcus Group, Ltd. 144A company guaranty sr. unsec. sub.       
notes 8.75%, 10/15/21  ‡‡     313,815  198,488 
Neiman Marcus Group, Ltd. 144A company guaranty sr. unsec. sub.       
notes 8.00%, 10/15/21    220,000  138,600 
Nexstar Broadcasting, Inc. 144A company guaranty sr. unsec.       
notes 5.625%, 8/1/24    832,000  819,520 
Nielsen Co. Luxembourg SARL (The) 144A company guaranty sr.       
unsec. notes 5.00%, 2/1/25 (Luxembourg)    310,000  282,875 
Nielsen Finance, LLC/Nielsen Finance Co. 144A company guaranty       
sr. unsec. sub. notes 5.00%, 4/15/22    476,000  462,613 
Outfront Media Capital, LLC/Outfront Media Capital Corp.       
company guaranty sr. unsec. sub. notes 5.875%, 3/15/25    315,000  317,756 
Outfront Media Capital, LLC/Outfront Media Capital Corp.       
company guaranty sr. unsec. sub. notes 5.625%, 2/15/24    167,000  168,461 
Owens Corning company guaranty sr. unsec. notes 4.20%, 12/1/24    296,000  290,694 
Penn National Gaming, Inc. 144A sr. unsec. notes 5.625%, 1/15/27    240,000  226,505 
Penske Automotive Group, Inc. company guaranty sr. unsec. sub.       
notes 5.75%, 10/1/22    439,000  448,228 
Penske Automotive Group, Inc. company guaranty sr. unsec. sub.       
notes 5.50%, 5/15/26    241,000  234,373 
Penske Automotive Group, Inc. company guaranty sr. unsec. sub.       
notes 5.375%, 12/1/24    290,000  283,475 
PetSmart, Inc. 144A sr. unsec. notes 7.125%, 3/15/23    125,000  84,375 
PulteGroup, Inc. company guaranty sr. unsec. unsub. notes       
7.875%, 6/15/32    290,000  327,613 
PulteGroup, Inc. company guaranty sr. unsec. unsub. notes       
5.50%, 3/1/26    400,000  394,504 
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp.       
144A sr. notes 6.125%, 8/15/21    515,000  509,850 
Sabre GLBL, Inc. 144A company guaranty sr. notes 5.375%, 4/15/23    395,000  397,224 
Scientific Games International, Inc. company guaranty sr. unsec.       
notes 10.00%, 12/1/22    1,063,000  1,134,753 
Sinclair Television Group, Inc. 144A company guaranty sr. unsec.       
sub. notes 5.625%, 8/1/24    729,000  719,888 

 

Premier Income Trust 41 

 



    Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.    amount  Value 
Consumer cyclicals cont.       
Sinclair Television Group, Inc. 144A company guaranty sr. unsec.       
unsub. notes 5.125%, 2/15/27    $228,000  $211,470 
Sirius XM Radio, Inc. 144A company guaranty sr. unsec. sub. notes       
6.00%, 7/15/24    263,000  272,534 
Sirius XM Radio, Inc. 144A sr. unsec. bonds 5.00%, 8/1/27    659,000  625,226 
Six Flags Entertainment Corp. 144A company guaranty sr. unsec.       
bonds 5.50%, 4/15/27    495,000  484,481 
Six Flags Entertainment Corp. 144A company guaranty sr. unsec.       
unsub. notes 4.875%, 7/31/24    600,000  585,750 
Spectrum Brands, Inc. company guaranty sr. unsec. notes       
5.75%, 7/15/25    240,000  239,400 
Spectrum Brands, Inc. company guaranty sr. unsec. sub. notes       
6.625%, 11/15/22    25,000  25,781 
Standard Industries, Inc. 144A sr. unsec. notes 6.00%, 10/15/25    333,000  337,163 
Standard Industries, Inc. 144A sr. unsec. notes 5.375%, 11/15/24    410,000  406,023 
Standard Industries, Inc. 144A sr. unsec. notes 4.75%, 1/15/28    25,000  22,875 
SugarHouse HSP Gaming Prop. Mezz LP/SugarHouse HSP       
Gaming Finance Corp. 144A company guaranty sr. unsub. notes       
5.875%, 5/15/25    275,000  259,531 
Takko Luxembourg 2 SCA company guaranty sr. notes Ser. REGS,       
5.375%, 11/15/23 (Luxembourg)  EUR  200,000  214,332 
TRI Pointe Group, Inc./TRI Pointe Homes, Inc. company guaranty       
sr. unsec. unsub. notes 5.875%, 6/15/24    $314,000  311,645 
Tribune Media Co. company guaranty sr. unsec. notes       
5.875%, 7/15/22    282,000  283,410 
Univision Communications, Inc. 144A company guaranty sr. notes       
5.125%, 5/15/23    495,000  472,725 
Univision Communications, Inc. 144A company guaranty sr. sub.       
notes 5.125%, 2/15/25    216,000  200,340 
Werner FinCo LP/Werner FinCo, Inc. 144A company guaranty sr.       
unsec. notes 8.75%, 7/15/25    443,000  425,280 
WMG Acquisition Corp. 144A company guaranty sr. notes       
5.00%, 8/1/23    52,000  51,220 
WMG Acquisition Corp. 144A company guaranty sr. unsec. notes       
5.50%, 4/15/26    355,000  351,450 
Wolverine World Wide, Inc. 144A company guaranty sr. unsec.       
bonds 5.00%, 9/1/26    229,000  217,550 
Wyndham Destinations, Inc. sr. unsec. unsub. bonds 4.50%, 4/1/27    468,000  457,470 
Wyndham Hotels & Resorts, Inc. 144A company guaranty sr. unsec.       
notes 5.375%, 4/15/26    250,000  248,750 
Wynn Las Vegas, LLC/Wynn Las Vegas Capital Corp. 144A company       
guaranty sr. unsec. sub. notes 5.25%, 5/15/27    612,000  575,347 
      30,667,969 
Consumer staples (1.5%)       
1011778 BC ULC/New Red Finance, Inc. 144A company guaranty       
notes 5.00%, 10/15/25 (Canada)    385,000  369,119 
1011778 BC ULC/New Red Finance, Inc. 144A company guaranty sr.       
notes 4.625%, 1/15/22 (Canada)    170,000  169,575 
1011778 BC ULC/New Red Finance, Inc. 144A company guaranty sr.       
sub. notes 4.25%, 5/15/24 (Canada)    275,000  261,594 
Ascend Learning, LLC 144A sr. unsec. notes 6.875%, 8/1/25    362,000  366,525 

 

42 Premier Income Trust 

 



    Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.    amount  Value 
Consumer staples cont.       
Ashtead Capital, Inc. 144A notes 4.375%, 8/15/27    $300,000  $285,660 
Ashtead Capital, Inc. 144A notes 4.125%, 8/15/25    355,000  337,694 
BlueLine Rental Finance Corp./BlueLine Rental, LLC 144A       
company guaranty sub. notes 9.25%, 3/15/24    585,000  617,906 
Brand Energy & Infrastructure Services, Inc. 144A sr. unsec. notes       
8.50%, 7/15/25    870,000  887,400 
CEC Entertainment, Inc. company guaranty sr. unsec. sub. notes       
8.00%, 2/15/22    241,000  213,285 
Dean Foods Co. 144A company guaranty sr. unsec. notes       
6.50%, 3/15/23    330,000  322,988 
Diamond (BC) BV 144A sr. unsec. notes 5.625%, 8/15/25  EUR  495,000  531,254 
Europcar Groupe SA sr. notes Ser. REGS, 4.125%, 11/15/24 (France)  EUR  200,000  230,584 
Fresh Market, Inc. (The) 144A company guaranty sr. notes       
9.75%, 5/1/23    $264,000  186,120 
Golden Nugget, Inc. 144A company guaranty sr. unsec. sub. notes       
8.75%, 10/1/25    629,000  652,588 
Golden Nugget, Inc. 144A sr. unsec. notes 6.75%, 10/15/24    425,000  423,938 
Itron, Inc. 144A company guaranty sr. unsec. notes 5.00%, 1/15/26    422,000  401,955 
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  289,746 
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  292,050 
KFC Holding Co./Pizza Hut Holdings, LLC/Taco Bell of America, LLC       
144A company guaranty sr. unsec. notes 4.75%, 6/1/27    180,000  170,028 
Lamb Weston Holdings, Inc. 144A company guaranty sr. unsec.       
unsub. notes 4.875%, 11/1/26    350,000  344,313 
Lamb Weston Holdings, Inc. 144A company guaranty sr. unsec.       
unsub. notes 4.625%, 11/1/24    85,000  83,194 
Match Group, Inc. 144A sr. unsec. bonds 5.00%, 12/15/27    315,000  296,297 
Netflix, Inc. 144A sr. unsec. bonds 4.875%, 4/15/28    265,000  250,756 
Netflix, Inc. 144A sr. unsec. unsub. bonds 5.875%, 11/15/28    270,000  270,675 
Revlon Consumer Products Corp. company guaranty sr. unsec.       
notes 6.25%, 8/1/24    80,000  42,400 
Rite Aid Corp. 144A company guaranty sr. unsec. unsub. notes       
6.125%, 4/1/23    439,000  441,195 
      8,738,839 
Energy (7.5%)       
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp. company       
guaranty sr. unsec. notes 7.875%, 12/15/24    989,000  1,028,560 
Antero Resources Corp. company guaranty sr. unsec. notes       
5.625%, 6/1/23    213,000  217,260 
Antero Resources Corp. company guaranty sr. unsec. sub. notes       
5.375%, 11/1/21    324,000  328,455 
Antero Resources Corp. company guaranty sr. unsec. sub. notes       
5.125%, 12/1/22    38,000  38,095 
Apergy Corp. 144A sr. unsec. notes 6.375%, 5/1/26    414,000  421,763 
Ascent Resources Utica Holdings, LLC/ARU Finance Corp. 144A sr.       
unsec. notes 10.00%, 4/1/22    217,000  239,785 
California Resources Corp. company guaranty sr. unsec. sub. notes       
5.00%, 1/15/20    210,000  198,450 

 

Premier Income Trust 43 

 



  Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.  amount  Value 
Energy cont.     
California Resources Corp. 144A company guaranty notes     
8.00%, 12/15/22  $171,000  $153,045 
Cheniere Corpus Christi Holdings, LLC company guaranty sr. notes     
5.875%, 3/31/25  618,000  650,445 
Cheniere Corpus Christi Holdings, LLC company guaranty sr. notes     
5.125%, 6/30/27  370,000  371,110 
Chesapeake Energy Corp. company guaranty sr. unsec. notes     
8.00%, 6/15/27  114,000  116,565 
Chesapeake Energy Corp. company guaranty sr. unsec. notes     
8.00%, 1/15/25  486,000  498,150 
Chesapeake Energy Corp. company guaranty sr. unsec. notes     
5.75%, 3/15/23  58,000  55,970 
Comstock Escrow Corp. 144A sr. unsec. notes 9.75%, 8/15/26  285,000  276,008 
Continental Resources, Inc. company guaranty sr. unsec. bonds     
4.90%, 6/1/44  607,000  600,092 
Continental Resources, Inc. company guaranty sr. unsec. notes     
3.80%, 6/1/24  1,048,000  1,029,468 
Continental Resources, Inc. company guaranty sr. unsec. unsub.     
notes 4.50%, 4/15/23  187,000  190,258 
Covey Park Energy, LLC/Covey Park Finance Corp. 144A company     
guaranty sr. unsec. notes 7.50%, 5/15/25  523,000  530,845 
CrownRock LP/CrownRock Finance, Inc. 144A sr. unsec. notes     
5.625%, 10/15/25  310,000  299,150 
DCP Midstream Operating LP company guaranty sr. unsec. unsub.     
notes 5.375%, 7/15/25  135,000  137,869 
Denbury Resources, Inc. company guaranty sr. unsec. sub. notes     
6.375%, 8/15/21  63,000  59,220 
Denbury Resources, Inc. 144A company guaranty notes     
9.00%, 5/15/21  531,000  564,851 
Diamondback Energy, Inc. company guaranty sr. unsec. unsub.     
notes 5.375%, 5/31/25  637,000  637,000 
Diamondback Energy, Inc. company guaranty sr. unsec. unsub.     
notes 4.75%, 11/1/24  140,000  135,800 
Endeavor Energy Resources LP/EER Finance, Inc. 144A sr. unsec.     
bonds 5.75%, 1/30/28  344,000  336,260 
Endeavor Energy Resources LP/EER Finance, Inc. 144A sr. unsec.     
notes 5.50%, 1/30/26  135,000  131,963 
Energy Transfer Partners LP jr. unsec. sub. FRB Ser. B, 6.625%,     
perpetual maturity  750,000  712,500 
Ensco PLC sr. unsec. notes 7.75%, 2/1/26 (United Kingdom)  238,000  229,670 
EP Energy, LLC/Everest Acquisition Finance, Inc. company     
guaranty sr. unsec. sub. notes 9.375%, 5/1/20  220,000  215,600 
EP Energy, LLC/Everest Acquisition Finance, Inc. 144A company     
guaranty notes 9.375%, 5/1/24  551,000  453,198 
EP Energy, LLC/Everest Acquisition Finance, Inc. 144A company     
guaranty notes 8.00%, 2/15/25  195,000  148,688 
EP Energy, LLC/Everest Acquisition Finance, Inc. 144A company     
guaranty sr. notes 8.00%, 11/29/24  103,000  104,030 
EP Energy, LLC/Everest Acquisition Finance, Inc. 144A company     
guaranty sr. notes 7.75%, 5/15/26  275,000  280,500 
Extraction Oil & Gas, Inc. 144A sr. unsec. notes 5.625%, 2/1/26  142,000  137,740 

 

44 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.  amount  Value 
Energy cont.     
Hess Infrastructure Partners LP/Hess Infrastructure Partners     
Finance Corp. 144A sr. unsec. notes 5.625%, 2/15/26  $473,000  $475,365 
Holly Energy Partners LP/Holly Energy Finance Corp. 144A     
company guaranty sr. unsec. notes 6.00%, 8/1/24  475,000  486,281 
Indigo Natural Resources, LLC 144A sr. unsec. notes     
6.875%, 2/15/26  437,000  422,798 
Jagged Peak Energy, LLC 144A company guaranty sr. unsec. notes     
5.875%, 5/1/26  254,000  249,555 
Jonah Energy, LLC/Jonah Energy Finance Corp. 144A company     
guaranty sr. unsec. notes 7.25%, 10/15/25  144,000  119,160 
MEG Energy Corp. 144A company guaranty sr. unsec. notes 7.00%,     
3/31/24 (Canada)  50,000  45,188 
MEG Energy Corp. 144A company guaranty sr. unsec. notes     
6.375%, 1/30/23 (Canada)  305,000  275,263 
MEG Energy Corp. 144A notes 6.50%, 1/15/25 (Canada)  243,000  239,051 
Nabors Industries, Inc. 144A company guaranty sr. unsec. notes     
5.75%, 2/1/25  410,000  388,475 
Newfield Exploration Co. sr. unsec. unsub. notes 5.75%, 1/30/22  67,000  69,848 
Newfield Exploration Co. sr. unsec. unsub. notes 5.375%, 1/1/26  859,000  878,328 
Noble Holding International, Ltd. company guaranty sr. unsec.     
unsub. notes 7.75%, 1/15/24  150,000  145,500 
Noble Holding International, Ltd. 144A company guaranty sr.     
unsec. notes 7.875%, 2/1/26  120,000  123,300 
Oasis Petroleum, Inc. company guaranty sr. unsec. sub. notes     
6.875%, 1/15/23  196,000  200,410 
Oasis Petroleum, Inc. company guaranty sr. unsec. unsub. notes     
6.875%, 3/15/22  168,000  171,150 
Oasis Petroleum, Inc. 144A sr. unsec. notes 6.25%, 5/1/26  275,000  275,688 
Pertamina Persero PT 144A sr. unsec. unsub. notes 4.875%,     
5/3/22 (Indonesia)  270,000  275,699 
Pertamina Persero PT 144A sr. unsec. unsub. notes 4.30%,     
5/20/23 (Indonesia)  400,000  398,923 
Petrobras Global Finance BV company guaranty sr. unsec. notes     
Ser. REGS, 5.999%, 1/27/28 (Brazil)  491,000  464,584 
Petrobras Global Finance BV company guaranty sr. unsec. notes     
Ser. REGS, 5.299%, 1/27/25 (Brazil)  1,703,000  1,627,813 
Petrobras Global Finance BV company guaranty sr. unsec. unsub.     
bonds 7.375%, 1/17/27 (Brazil)  3,250,000  3,380,000 
Petrobras Global Finance BV company guaranty sr. unsec. unsub.     
notes 6.25%, 3/17/24 (Brazil)  1,720,000  1,752,250 
Petrobras Global Finance BV company guaranty sr. unsec. unsub.     
notes 6.125%, 1/17/22 (Brazil)  3,254,000  3,367,890 
Petrobras Global Finance BV 144A company guaranty sr. unsec.     
notes 5.299%, 1/27/25 (Brazil)  1,020,000  974,967 
Petroleos de Venezuela SA company guaranty sr. unsec. bonds     
Ser. REGS, 6.00%, 11/15/26 (Venezuela) (In default)    1,255,000  272,963 
Petroleos de Venezuela SA company guaranty sr. unsec. unsub.     
notes 5.375%, 4/12/27 (Venezuela)  3,606,000  854,261 
Petroleos de Venezuela SA 144A company guaranty sr. unsec.     
notes 6.00%, 11/15/26 (Venezuela) (In default)    2,345,000  510,038 

 

Premier Income Trust 45 

 



  Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.  amount  Value 
Energy cont.     
Petroleos Mexicanos company guaranty sr. unsec. unsub. notes     
8.00%, 5/3/19 (Mexico)  $1,216,000  $1,257,344 
Petroleos Mexicanos company guaranty sr. unsec. unsub. notes     
5.375%, 3/13/22 (Mexico)  695,000  709,279 
Petroleos Mexicanos company guaranty sr. unsec. unsub. notes     
4.875%, 1/24/22 (Mexico)  2,125,000  2,140,109 
Petroleos Mexicanos company guaranty sr. unsec. unsub. notes     
4.50%, 1/23/26 (Mexico)  5,014,000  4,670,591 
QEP Resources, Inc. sr. unsec. notes 5.625%, 3/1/26  265,000  255,063 
Range Resources Corp. company guaranty sr. unsec. sub. notes     
5.75%, 6/1/21  302,000  308,795 
Regency Energy Partners LP/Regency Energy Finance Corp.     
company guaranty sr. unsec. notes 5.00%, 10/1/22  195,000  201,162 
SemGroup Corp. company guaranty sr. unsec. notes     
6.375%, 3/15/25  150,000  144,000 
SESI, LLC company guaranty sr. unsec. notes 7.75%, 9/15/24  395,000  406,850 
SESI, LLC company guaranty sr. unsec. unsub. notes     
7.125%, 12/15/21  123,000  125,460 
Seven Generations Energy, Ltd. 144A company guaranty sr. unsec.     
notes 5.375%, 9/30/25 (Canada)  230,000  220,800 
Seventy Seven Energy, Inc. escrow sr. unsec. notes     
6.50%, 7/15/22 F   45,000  5 
SM Energy Co. sr. unsec. sub. notes 5.00%, 1/15/24  110,000  105,875 
SM Energy Co. sr. unsec. unsub. notes 6.50%, 1/1/23  65,000  65,975 
SM Energy Co. sr. unsec. unsub. notes 6.125%, 11/15/22  281,000  288,025 
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp. 144A     
company guaranty sr. unsec. bonds 5.50%, 1/15/28  280,000  280,700 
Targa Resources Partners LP/Targa Resources Partners Finance     
Corp. company guaranty sr. unsec. notes 5.375%, 2/1/27  210,000  207,898 
Targa Resources Partners LP/Targa Resources Partners     
Finance Corp. 144A company guaranty sr. unsec. unsub. bonds     
5.00%, 1/15/28  473,000  446,394 
Transocean Pontus, Ltd. 144A company guaranty sr. notes 6.125%,     
8/1/25 (Cayman Islands)  135,000  136,688 
Trinidad Drilling, Ltd. 144A company guaranty sr. unsec. notes     
6.625%, 2/15/25 (Canada)  347,000  335,723 
USA Compression Partners LP/USA Compression Finance Corp.     
144A sr. unsec. notes 6.875%, 4/1/26  250,000  257,188 
Vermilion Energy, Inc. 144A company guaranty sr. unsec. notes     
5.625%, 3/15/25 (Canada)  276,000  272,382 
Weatherford International, LLC 144A company guaranty sr. unsec.     
notes 9.875%, 3/1/25  140,000  141,925 
Weatherford International, Ltd. company guaranty sr. unsec. sub.     
notes 9.875%, 2/15/24  653,000  662,795 
Weatherford International, Ltd. company guaranty sr. unsec.     
unsub. notes 8.25%, 6/15/23  70,000  69,475 
Whiting Petroleum Corp. sr. unsec. notes 6.625%, 1/15/26  190,000  196,769 
Williams Cos., Inc. (The) sr. unsec. unsub. notes 8.75%, 3/15/32  180,000  236,250 
Williams Cos., Inc. (The) sr. unsec. unsub. notes 7.75%, 6/15/31  118,000  143,486 
WPX Energy, Inc. sr. unsec. notes 8.25%, 8/1/23  60,000  67,878 

 

46 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.  amount  Value 
Energy cont.     
WPX Energy, Inc. sr. unsec. notes 5.75%, 6/1/26  $238,000  $238,595 
WPX Energy, Inc. sr. unsec. unsub. notes 6.00%, 1/15/22  65,000  67,438 
    44,634,028 
Financials (3.5%)     
Alliance Data Systems Corp. 144A company guaranty sr. unsec.     
notes 5.375%, 8/1/22  778,000  781,112 
Alliant Holdings Intermediate, LLC 144A sr. unsec. notes     
8.25%, 8/1/23  5,000  5,188 
Ally Financial, Inc. company guaranty sr. unsec. notes     
8.00%, 11/1/31  1,105,000  1,331,525 
Ally Financial, Inc. sub. unsec. notes 5.75%, 11/20/25  369,000  382,376 
American International Group, Inc. jr. unsec. sub. FRB     
8.175%, 5/15/58  163,000  206,603 
Bank of America Corp. jr. unsec. sub. FRN Ser. AA, 6.10%,     
perpetual maturity  148,000  153,920 
Bank of America Corp. jr. unsec. sub. FRN Ser. Z, 6.50%,     
perpetual maturity  185,000  198,413 
CBRE Services, Inc. company guaranty sr. unsec. notes     
5.25%, 3/15/25  175,000  183,461 
CIT Group, Inc. sr. unsec. sub. notes 5.00%, 8/1/23  315,000  320,119 
CIT Group, Inc. sr. unsec. unsub. notes 5.25%, 3/7/25  578,000  591,005 
CIT Group, Inc. sr. unsec. unsub. notes 5.00%, 8/15/22  82,000  83,538 
CNG Holdings, Inc. 144A sr. notes 9.375%, 5/15/20  233,000  232,418 
CNO Financial Group, Inc. sr. unsec. unsub. notes 5.25%, 5/30/25  443,000  434,140 
Credit Acceptance Corp. company guaranty sr. unsec. notes     
6.125%, 2/15/21  332,000  335,735 
Dresdner Funding Trust I jr. unsec. sub. notes 8.151%, 6/30/31  500,000  618,750 
Dresdner Funding Trust I 144A jr. unsec. sub. notes 8.151%, 6/30/31  200,000  247,500 
ESH Hospitality, Inc. 144A company guaranty sr. unsec. notes     
5.25%, 5/1/25 R   360,000  349,236 
Fairfax Financial Holdings, Ltd. 144A sr. unsec. notes 4.85%,     
4/17/28 (Canada)  170,000  168,252 
Freedom Mortgage Corp. 144A sr. unsec. notes 8.25%, 4/15/25  249,000  242,464 
Freedom Mortgage Corp. 144A sr. unsec. notes 8.125%, 11/15/24  346,000  337,350 
goeasy, Ltd. 144A company guaranty sr. unsec. notes 7.875%,     
11/1/22 (Canada)  214,000  224,724 
HUB International, Ltd. 144A sr. unsec. notes 7.00%, 5/1/26  331,000  332,241 
Icahn Enterprises LP/Icahn Enterprises Finance Corp. company     
guaranty sr. unsec. notes 6.75%, 2/1/24  210,000  213,675 
Icahn Enterprises LP/Icahn Enterprises Finance Corp. company     
guaranty sr. unsec. notes 6.25%, 2/1/22  205,000  208,971 
Icahn Enterprises LP/Icahn Enterprises Finance Corp. company     
guaranty sr. unsec. notes 6.00%, 8/1/20  51,000  51,850 
Icahn Enterprises LP/Icahn Enterprises Finance Corp. company     
guaranty sr. unsec. notes 5.875%, 2/1/22  440,000  442,750 
International Lease Finance Corp. sr. unsec. unsub. notes     
5.875%, 8/15/22  20,000  21,284 
Intesa Sanpaolo SpA 144A company guaranty jr. unsec. sub. FRB     
7.70%, perpetual maturity (Italy)  200,000  191,000 
iStar, Inc. sr. unsec. notes 6.00%, 4/1/22 R   360,000  360,900 
iStar, Inc. sr. unsec. unsub. notes 5.25%, 9/15/22 R   125,000  121,875 

 

Premier Income Trust 47 

 



    Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.    amount  Value 
Financials cont.       
Liberty Mutual Insurance Co. 144A unsec. sub. notes       
7.697%, 10/15/97    $670,000  $896,681 
Lloyds Banking Group PLC 144A jr. unsec. sub. FRN 6.657%,       
perpetual maturity (United Kingdom)    242,000  255,915 
LPL Holdings, Inc. 144A company guaranty sr. unsec. notes       
5.75%, 9/15/25    450,000  436,500 
MGM Growth Properties Operating Partnership LP/MGP Finance       
Co-Issuer, Inc. company guaranty sr. unsec. notes 4.50%, 1/15/28     115,000  104,938 
Miller Homes Group Holdings PLC company guaranty sr. notes       
Ser. REGS, 5.50%, 10/15/24 (United Kingdom)  GBP  175,000  229,682 
Nationstar Mortgage, LLC/Nationstar Capital Corp. company       
guaranty sr. unsec. unsub. notes 6.50%, 7/1/21    $284,000  284,710 
Provident Funding Associates LP/PFG Finance Corp. 144A sr.       
unsec. notes 6.375%, 6/15/25    375,000  366,019 
Royal Bank of Scotland Group PLC jr. unsec. sub. FRB 8.00%,       
perpetual maturity (United Kingdom)    200,000  212,424 
Royal Bank of Scotland Group PLC jr. unsec. sub. FRB 7.648%,       
perpetual maturity (United Kingdom)    306,000  381,353 
Royal Bank of Scotland Group PLC jr. unsec. sub. FRB 7.50%,       
perpetual maturity (United Kingdom)    410,000  423,325 
Royal Bank of Scotland Group PLC sr. unsec. unsub. notes 3.875%,       
9/12/23 (United Kingdom)    235,000  230,226 
Springleaf Finance Corp. company guaranty sr. unsec. unsub.       
notes 6.875%, 3/15/25    450,000  456,750 
Springleaf Finance Corp. company guaranty sr. unsec. unsub.       
notes 6.125%, 5/15/22    160,000  163,600 
Springleaf Finance Corp. sr. unsec. unsub. notes 5.25%, 12/15/19    123,000  124,999 
Starwood Property Trust, Inc. 144A sr. unsec. notes       
4.75%, 3/15/25 R     330,000  325,875 
TMX Finance, LLC/TitleMax Finance Corp. 144A sr. notes       
11.125%, 4/1/23    513,000  525,825 
Travelport Corporate Finance PLC 144A company guaranty sr.       
notes 6.00%, 3/15/26 (United Kingdom)    380,000  386,650 
UBS Group AG jr. unsec. sub. FRN 6.875%, perpetual       
maturity (Switzerland)    200,000  204,192 
USIS Merger Sub, Inc. 144A sr. unsec. notes 6.875%, 5/1/25    315,000  311,063 
VTB Bank OJSC Via VTB Capital SA 144A unsec. sub. bonds 6.95%,       
10/17/22 (Russia)    4,200,000  4,326,000 
Wand Merger Corp. 144A sr. unsec. notes 9.125%, 7/15/26    80,000  83,900 
Wand Merger Corp. 144A sr. unsec. notes 8.125%, 7/15/23    255,000  264,563 
WeWork Cos, Inc. 144A company guaranty sr. unsec. notes       
7.875%, 5/1/25    524,000  509,590 
      20,877,155 
Health care (2.3%)       
Air Medical Merger Sub Corp. 144A sr. unsec. notes 6.375%, 5/15/23    475,000  437,000 
ASP AMC Merger Sub, Inc. 144A sr. unsec. notes 8.00%, 5/15/25    300,000  246,000 
Bausch Health Cos., Inc. 144A company guaranty sr. notes       
5.50%, 11/1/25    90,000  90,162 
Bausch Health Cos., Inc. 144A company guaranty sr. unsec. notes       
9.25%, 4/1/26    305,000  324,444 

 

48 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.  amount  Value 
Health care cont.     
Bausch Health Cos., Inc. 144A company guaranty sr. unsec. notes     
9.00%, 12/15/25  $255,000  $270,096 
Bausch Health Cos., Inc. 144A company guaranty sr. unsec. notes     
6.125%, 4/15/25  603,000  565,313 
Bausch Health Cos., Inc. 144A company guaranty sr. unsec. notes     
5.875%, 5/15/23  826,000  793,373 
Bausch Health Cos., Inc. 144A company guaranty sr. unsec. notes     
5.625%, 12/1/21  90,000  89,100 
Bausch Health Cos., Inc. 144A company guaranty sr. unsub. notes     
7.00%, 3/15/24  355,000  376,389 
Bausch Health Cos., Inc. 144A company guaranty sr. unsub. notes     
6.50%, 3/15/22  270,000  281,529 
Bausch Health Cos., Inc. 144A sr. unsec. notes 8.50%, 1/31/27  275,000  282,219 
BioScrip, Inc. company guaranty sr. unsec. notes 8.875%, 2/15/21  410,000  393,088 
Centene Corp. sr. unsec. unsub. notes 6.125%, 2/15/24  395,000  415,738 
Centene Corp. sr. unsec. unsub. notes 4.75%, 5/15/22  305,000  308,431 
Centene Escrow I Corp. 144A sr. unsec. notes 5.375%, 6/1/26  135,000  138,206 
CHS/Community Health Systems, Inc. company guaranty sr. notes     
6.25%, 3/31/23  956,000  889,080 
CHS/Community Health Systems, Inc. company guaranty sr.     
unsec. notes 6.875%, 2/1/22  717,000  351,330 
CHS/Community Health Systems, Inc. 144A company guaranty     
sub. notes 8.125%, 6/30/24  437,000  359,433 
Concordia International Corp. 144A company guaranty sr. unsec.     
notes 7.00%, 4/15/23 (Canada) (In default)    298,000  17,880 
Endo DAC/Endo Finance, LLC/Endo Finco, Inc. 144A company     
guaranty sr. unsec. notes 6.00%, 2/1/25 (Ireland)  200,000  160,500 
Endo Finance, LLC/Endo Finco, Inc. 144A company guaranty sr.     
unsec. unsub. notes 5.375%, 1/15/23  295,000  250,013 
HCA, Inc. company guaranty sr. bonds 5.25%, 6/15/26  256,000  259,840 
HCA, Inc. company guaranty sr. notes 6.50%, 2/15/20  629,000  654,946 
HCA, Inc. company guaranty sr. sub. bonds 5.50%, 6/15/47  575,000  545,388 
HCA, Inc. company guaranty sr. unsec. unsub. notes     
7.50%, 2/15/22  128,000  140,640 
Jaguar Holding Co. II/Pharmaceutical Product Development, LLC     
144A company guaranty sr. unsec. notes 6.375%, 8/1/23  370,000  372,660 
Kinetic Concepts, Inc./KCI USA, Inc. 144A company guaranty sub.     
notes 12.50%, 11/1/21  408,000  446,760 
Mallinckrodt International Finance SA/Mallinckrodt CB,     
LLC 144A company guaranty sr. unsec. unsub. notes 5.50%,     
4/15/25 (Luxembourg)  329,000  263,200 
Molina Healthcare, Inc. company guaranty sr. unsec. notes     
5.375%, 11/15/22  270,000  275,400 
Molina Healthcare, Inc. 144A company guaranty sr. unsec. notes     
4.875%, 6/15/25  70,000  68,338 
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics     
SA 144A sr. unsec. notes 6.625%, 5/15/22  563,000  555,963 
Service Corp. International sr. unsec. notes 4.625%, 12/15/27  100,000  95,000 
Service Corp. International sr. unsec. unsub. notes 5.375%, 5/15/24  1,075,000  1,088,438 
Sotera Health Holdings, LLC 144A sr. unsec. notes 6.50%, 5/15/23  220,000  223,300 

 

Premier Income Trust 49 

 



    Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.    amount  Value 
Health care cont.       
Tenet Healthcare Corp. company guaranty sr. sub. notes       
6.00%, 10/1/20    $393,000  $408,229 
Tenet Healthcare Corp. sr. unsec. notes 8.125%, 4/1/22    257,000  273,705 
Teva Pharmaceutical Finance Netherlands III BV company       
guaranty sr. unsec. notes 6.75%, 3/1/28 (Netherlands)    385,000  410,709 
Teva Pharmaceutical Finance Netherlands III BV company       
guaranty sr. unsec. notes 6.00%, 4/15/24 (Netherlands)    250,000  258,659 
Unilabs Subholding AB company guaranty sr. unsec. notes       
Ser. REGS, 5.75%, 5/15/25 (Sweden)  EUR  200,000  224,808 
WellCare Health Plans, Inc. sr. unsec. notes 5.25%, 4/1/25    $165,000  166,031 
      13,771,338 
Technology (1.3%)       
Avaya, Inc. 144A escrow notes 7.00%, 4/1/19    1,318,000   
Diamond 1 Finance Corp./Diamond 2 Finance Corp. 144A       
company guaranty sr. unsec. notes 7.125%, 6/15/24    1,063,000  1,142,725 
Diamond 1 Finance Corp./Diamond 2 Finance Corp. 144A sr. notes       
5.45%, 6/15/23    440,000  462,403 
Energizer Gamma Acquisition, Inc. 144A company guaranty sr.       
unsec. notes 6.375%, 7/15/26    100,000  102,750 
First Data Corp. 144A company guaranty sr. unsec. unsub. notes       
7.00%, 12/1/23    335,000  350,494 
First Data Corp. 144A notes 5.75%, 1/15/24    581,000  594,189 
First Data Corp. 144A sr. notes 5.375%, 8/15/23    375,000  380,156 
Inception Merger Sub, Inc./Rackspace Hosting, Inc. 144A sr. unsec.       
notes 8.625%, 11/15/24    640,000  646,400 
Infor Software Parent, LLC/Infor Software Parent, Inc. 144A       
company guaranty sr. unsec. notes 7.125%, 5/1/21  ‡‡     557,000  562,570 
Infor US, Inc. company guaranty sr. unsec. notes 6.50%, 5/15/22    503,000  509,288 
Infor US, Inc. 144A company guaranty sr. notes 5.75%, 8/15/20    132,000  133,815 
Iron Mountain, Inc. 144A company guaranty sr. unsec. bonds       
5.25%, 3/15/28 R     140,000  129,500 
Iron Mountain, Inc. 144A company guaranty sr. unsec. notes       
4.875%, 9/15/27 R     481,000  440,716 
Qorvo, Inc. 144A sr. unsec. notes 5.50%, 7/15/26    110,000  112,063 
Solera, LLC/Solera Finance, Inc. 144A sr. unsec. notes       
10.50%, 3/1/24    675,000  746,386 
Tempo Acquisition, LLC/Tempo Acquisition Finance Corp. 144A sr.       
unsec. notes 6.75%, 6/1/25    423,000  408,914 
TTM Technologies, Inc. 144A company guaranty sr. unsec. notes       
5.625%, 10/1/25    597,000  589,538 
Western Digital Corp. company guaranty sr. unsec. notes       
4.75%, 2/15/26    400,000  393,250 
      7,705,157 
Transportation (0.1%)       
Watco Cos., LLC/Watco Finance Corp. 144A company guaranty sr.       
unsec. notes 6.375%, 4/1/23    502,000  511,413 
      511,413 

 

50 Premier Income Trust 

 



  Principal   
CORPORATE BONDS AND NOTES (31.7%)* cont.  amount  Value 
Utilities and power (0.9%)     
AES Corp./Virginia (The) sr. unsec. notes 5.50%, 4/15/25  $965,000  $981,888 
AES Corp./Virginia (The) sr. unsec. notes 4.875%, 5/15/23  160,000  161,000 
AES Corp./Virginia (The) sr. unsec. notes 4.50%, 3/15/23  135,000  134,494 
AES Corp./Virginia (The) sr. unsec. unsub. bonds 5.125%, 9/1/27  364,000  367,640 
Calpine Corp. sr. unsec. sub. notes 5.75%, 1/15/25  584,000  537,280 
Calpine Corp. 144A company guaranty sr. notes 5.25%, 6/1/26  188,000  177,660 
Calpine Corp. 144A company guaranty sr. sub. notes     
5.875%, 1/15/24  85,000  85,425 
Colorado Interstate Gas Co., LLC company guaranty sr. unsec.     
notes 6.85%, 6/15/37  615,000  663,814 
Dynegy, Inc. company guaranty sr. unsec. unsub. notes     
7.625%, 11/1/24  516,000  552,920 
Dynegy, Inc. 144A company guaranty sr. unsec. notes     
8.125%, 1/30/26  169,000  185,900 
Energy Transfer Equity LP sr. sub. notes 5.875%, 1/15/24  356,000  370,240 
Energy Transfer Equity LP sr. sub. notes 5.50%, 6/1/27  139,000  142,475 
GenOn Energy, Inc. sr. unsec. sub. notes 9.875%, 10/15/20     
(In default)    329,000  205,625 
NRG Energy, Inc. company guaranty sr. unsec. notes     
7.25%, 5/15/26  272,000  289,680 
NRG Energy, Inc. company guaranty sr. unsec. notes     
6.625%, 1/15/27  393,000  404,790 
NRG Energy, Inc. 144A company guaranty sr. unsec. bonds     
5.75%, 1/15/28  125,000  123,750 
Texas Competitive Electric Holdings Co., LLC/TCEH Finance, Inc.     
escrow company guaranty sr. notes 11.50%, 10/1/20  205,000  1,538 
    5,386,119 
Total corporate bonds and notes (cost $193,151,667)    $189,060,074 
 
U.S. GOVERNMENT AND AGENCY  Principal   
MORTGAGE OBLIGATIONS (30.3%)*  amount  Value 
U.S. Government Guaranteed Mortgage Obligations (4.5%)     
Government National Mortgage Association Pass-Through Certificates     
4.50%, TBA, 8/1/48  $17,000,000  $17,650,780 
4.00%, TBA, 8/1/48  9,000,000  9,200,390 
    26,851,170 
U.S. Government Agency Mortgage Obligations (25.8%)     
Federal Home Loan Mortgage Corporation Pass-Through Certificates     
2.50%, 6/1/31 i   232,447  242,662 
Federal National Mortgage Association Pass-Through Certificates     
5.50%, TBA, 8/1/48  5,000,000  5,339,453 
4.00%, TBA, 8/1/48  23,000,000  23,362,968 
3.50%, TBA, 9/1/48  63,000,000  62,352,776 
3.50%, TBA, 8/1/48  63,000,000  62,424,142 
2.79%, 6/1/23 i   233,082  231,374 
    153,953,375 
Total U.S. government and agency mortgage obligations (cost $180,955,521)  $180,804,545 

 

Premier Income Trust 51 

 



FOREIGN GOVERNMENT AND AGENCY    Principal amount/   
BONDS AND NOTES (9.1%)*    units  Value 
Argentina (Republic of) sr. unsec. unsub. bonds 6.625%,       
7/6/28 (Argentina)    $460,000  $407,100 
Argentina (Republic of) sr. unsec. unsub. notes 7.50%,       
4/22/26 (Argentina)    1,140,000  1,085,850 
Argentina (Republic of) sr. unsec. unsub. notes 6.875%,       
1/26/27 (Argentina)    3,493,000  3,178,630 
Argentina (Republic of) sr. unsec. unsub. notes 4.625%,       
1/11/23 (Argentina)    650,000  585,325 
Argentina (Republic of) 144A sr. unsec. notes 7.125%,       
8/1/27 (Argentina)    1,675,000  1,368,140 
Brazil (Federal Republic of) sr. unsec. unsub. bonds 4.625%,       
1/13/28 (Brazil)    2,255,000  2,115,244 
Buenos Aires (Province of) sr. unsec. unsub. bonds Ser. REGS,       
7.875%, 6/15/27 (Argentina)    900,000  800,271 
Buenos Aires (Province of) sr. unsec. unsub. notes Ser. REGS,       
6.50%, 2/15/23 (Argentina)    380,000  346,180 
Buenos Aires (Province of) unsec. FRN (Argentina Deposit Rates       
BADLAR + 3.83%), 36.554%, 5/31/22 (Argentina)  ARS  17,110,000  544,329 
Buenos Aires (Province of) 144A sr. unsec. unsub. bonds 7.875%,       
6/15/27 (Argentina)    $1,990,000  1,769,488 
Buenos Aires (Province of) 144A sr. unsec. unsub. notes 10.875%,       
1/26/21 (Argentina)    100,000  103,930 
Buenos Aires (Province of) 144A sr. unsec. unsub. notes 9.125%,       
3/16/24 (Argentina)    2,618,000  2,549,016 
Cordoba (Province of) sr. unsec. unsub. notes Ser. REGS, 7.45%,       
9/1/24 (Argentina)    2,205,000  1,973,475 
Cordoba (Province of) 144A sr. unsec. unsub. notes 7.125%,       
6/10/21 (Argentina)    2,408,000  2,323,744 
Dominican (Republic of) sr. unsec. unsub. notes 7.50%, 5/6/21       
(Dominican Republic)    175,000  184,450 
Dominican (Republic of) sr. unsec. unsub. notes Ser. REGS, 8.625%,       
4/20/27 (Dominican Republic)    445,000  504,519 
Dominican (Republic of) 144A sr. unsec. unsub. bonds 5.50%,       
1/27/25 (Dominican Republic)    1,650,000  1,656,782 
Egypt (Arab Republic of) sr. unsec. notes Ser. REGS, 6.125%,       
1/31/22 (Egypt)    635,000  643,731 
Egypt (Arab Republic of) sr. unsec. notes Ser. REGS, 5.577%,       
2/21/23 (Egypt)    310,000  308,063 
Egypt (Arab Republic of) sr. unsec. unsub. notes Ser. REGS, 5.875%,       
6/11/25 (Egypt)    880,000  852,500 
Egypt (Arab Republic of) 144A sr. unsec. notes 5.577%,       
2/21/23 (Egypt)    1,010,000  1,001,434 
El Salvador (Republic of) sr. unsec. unsub. notes Ser. REGS, 5.875%,       
1/30/25 (El Salvador)    700,000  668,801 
Hellenic (Republic of) sr. unsec. notes 4.375%, 8/1/22 (Greece)  EUR  2,332,000  2,872,051 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.00%, 2/24/20), 2/24/40 (Greece)  ††   EUR  61,000  61,194 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/36 (Greece)  ††   EUR  468,000  475,500 
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  147,319 

 

52 Premier Income Trust 

 



FOREIGN GOVERNMENT AND AGENCY    Principal amount/   
BONDS AND NOTES (9.1%)* cont.    units  Value 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/32 (Greece)  ††   EUR  178,000  $188,123 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/31 (Greece)  ††   EUR  468,000  500,039 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/30 (Greece)  ††   EUR  3,840,211  4,212,675 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/29 (Greece)  ††   EUR  137,295  152,939 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/28 (Greece)  ††   EUR  4,094,435  4,597,751 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/27 (Greece)  ††   EUR  398,000  448,149 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/26 (Greece)  ††   EUR  1,556,500  1,788,569 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/25 (Greece)  ††   EUR  114,000  131,250 
Hellenic (Republic of) sr. unsec. unsub. bonds Ser. PSI,       
stepped-coupon 3.00% (3.65%, 2/24/20), 2/24/23 (Greece)  ††   EUR  1,269,807  1,488,709 
Indonesia (Republic of) sr. unsec. unsub. notes Ser. REGS, 4.125%,       
1/15/25 (Indonesia)    $760,000  754,300 
Indonesia (Republic of) 144A sr. unsec. notes 4.75%,       
1/8/26 (Indonesia)    300,000  308,250 
Indonesia (Republic of) 144A sr. unsec. unsub. bonds 6.625%,       
2/17/37 (Indonesia)    1,555,000  1,852,394 
Indonesia (Republic of) 144A sr. unsec. unsub. notes 5.95%,       
1/8/46 (Indonesia)    200,000  225,500 
Indonesia (Republic of) 144A sr. unsec. unsub. notes 4.35%,       
1/8/27 (Indonesia)    1,265,000  1,267,619 
Indonesia (Republic of) 144A sr. unsec. unsub. notes 3.375%,       
4/15/23 (Indonesia)    1,355,000  1,317,738 
Ivory Coast (Republic of) 144A sr. unsec. bonds 6.125%, 6/15/33       
(Ivory Coast)    1,385,000  1,269,159 
Ivory Coast (Republic of) 144A sr. unsec. notes 5.25%, 3/22/30       
(Ivory Coast)  EUR  760,000  864,533 
Russia (Federation of) 144A sr. unsec. notes 4.50%, 4/4/22 (Russia)    $265,000  270,769 
Russia (Federation of) 144A sr. unsec. notes 4.375%,       
3/21/29 (Russia)    200,000  196,000 
United Mexican States sr. unsec. notes 4.00%, 10/2/23 (Mexico)    1,040,000  1,044,881 
United Mexican States sr. unsec. unsub. notes 4.15%,       
3/28/27 (Mexico)    2,445,000  2,407,582 
Venezuela (Bolivarian Republic of) sr. unsec. bonds 7.00%,       
3/31/38 (Venezuela)    650,000  174,688 
Total foreign government and agency bonds and notes (cost $53,799,666)  $53,988,683 

 

PURCHASED SWAP OPTIONS OUTSTANDING (2.0%)*       
Counterparty    Notional/   
Fixed right % to receive or (pay)/  Expiration  contract   
Floating rate index/Maturity date  date/strike  amount  Value 
Bank of America N.A.       
(1.9325)/3 month USD-LIBOR-BBA/Aug-19  Aug-18/1.9325  $135,756,500  $1,504,182 
(2.2625)/3 month USD-LIBOR-BBA/Aug-22  Aug-21/2.2625  61,090,400  554,701 
2.2625/3 month USD-LIBOR-BBA/Aug-22  Aug-21/2.2625  61,090,400  128,901 
1.9325/3 month USD-LIBOR-BBA/Aug-19  Aug-18/1.9325  135,756,500  136 

 

Premier Income Trust 53 

 



PURCHASED SWAP OPTIONS OUTSTANDING (2.0%)* cont.       
Counterparty      Notional/   
Fixed right % to receive or (pay)/  Expiration    contract   
Floating rate index/Maturity date  date/strike    amount  Value 
Barclays Bank PLC         
(3.02)/3 month USD-LIBOR-BBA/Aug-28  Aug-18/3.02    $84,088,000  $463,325 
2.845/3 month USD-LIBOR-BBA/Aug-28  Aug-18/2.845    84,088,000  58,021 
(3.255)/3 month USD-LIBOR-BBA/Sep-28  Sep-18/3.255    30,849,900  20,978 
2.655/3 month USD-LIBOR-BBA/Sep-28  Sep-18/2.655    30,849,900  4,319 
Citibank, N.A.         
(3.00)/3 month USD-LIBOR-BBA/Aug-28  Aug-18/3.00    84,088,000  424,644 
(3.031)/3 month USD-LIBOR-BBA/Jun-49  Jun-19/3.031    6,710,700  316,544 
2.86/3 month USD-LIBOR-BBA/Aug-28  Aug-18/2.86    84,088,000  21,022 
2.47/3 month USD-LIBOR-BBA/Aug-19  Aug-18/2.47    54,302,600  54 
2.826/3 month USD-LIBOR-BBA/Aug-28  Aug-18/2.826    42,044,000  42 
Credit Suisse International         
3.056/3 month USD-LIBOR-BBA/Sep-20  Sep-18/3.056    74,563,800  117,811 
(3.056)/3 month USD-LIBOR-BBA/Sep-20  Sep-18/3.056    74,563,800  108,863 
(2.895)/3 month USD-LIBOR-BBA/Sep-20  Sep-18/2.895    74,563,800  105,135 
2.895/3 month USD-LIBOR-BBA/Sep-20  Sep-18/2.895    74,563,800  63,379 
2.8475/3 month USD-LIBOR-BBA/Aug-28  Aug-18/2.8475    44,597,800  15,609 
Goldman Sachs International         
(3.005)/3 month USD-LIBOR-BBA/Sep-19  Sep-18/3.005    118,927,300  143,902 
1.673/3 month GBP-LIBOR-BBA/Oct-48  Oct-18/1.673  GBP  6,701,000  142,925 
(3.04375)/3 month USD-LIBOR-BBA/Sep-19  Sep-18/3.04375    $118,927,300  123,684 
1.522/3 month GBP-LIBOR-BBA/Oct-28  Oct-18/1.522  GBP  17,218,000  91,754 
(2.70)/3 month USD-LIBOR-BBA/Sep-19  Sep-18/2.70    $118,927,300  67,789 
3.04375/3 month USD-LIBOR-BBA/Sep-19  Sep-18/3.04375    118,927,300  64,221 
(2.73375)/3 month USD-LIBOR-BBA/Sep-19  Sep-18/2.73375    118,927,300  57,085 
3.005/3 month USD-LIBOR-BBA/Sep-19  Sep-18/3.005    118,927,300  40,435 
2.73375/3 month USD-LIBOR-BBA/Sep-19  Sep-18/2.73375    118,927,300  34,489 
2.70/3 month USD-LIBOR-BBA/Sep-19  Sep-18/2.70    118,927,300  20,218 
2.695/3 month USD-LIBOR-BBA/Oct-23  Oct-18/2.695    11,403,500  4,447 
1.9175/3 month USD-LIBOR-BBA/Oct-19  Oct-18/1.9175    49,415,400  49 
JPMorgan Chase Bank N.A.         
(1.919)/3 month USD-LIBOR-BBA/Aug-19  Aug-18/1.919    135,756,500  1,520,471 
(2.25)/3 month USD-LIBOR-BBA/Aug-22  Aug-21/2.25    61,090,400  560,199 
1.376/6 month EUR-EURIBOR-Reuters/Sep-29  Sep-19/1.376  EUR  17,032,000  555,069 
1.758/6 month EUR-EURIBOR-Reuters/Sep-49  Sep-19/1.758  EUR  6,794,000  504,321 
(2.7575)/3 month USD-LIBOR-BBA/Dec-37  Dec-27/2.7575    $6,980,300  478,849 
(2.795)/3 month USD-LIBOR-BBA/Dec-37  Dec-27/2.795    6,980,300  468,448 
2.795/3 month USD-LIBOR-BBA/Dec-37  Dec-27/2.795    6,980,300  312,578 
2.7575/3 month USD-LIBOR-BBA/Dec-37  Dec-27/2.7575    6,980,300  305,249 
2.25/3 month USD-LIBOR-BBA/Aug-22  Aug-21/2.25    61,090,400  127,068 
(2.895)/3 month USD-LIBOR-BBA/Sep-20  Sep-18/2.895    89,476,500  126,162 
0.882/3 month GBP-LIBOR-BBA/Nov-19  Nov-18/0.882  GBP  46,535,500  6,719 
1.919/3 month USD-LIBOR-BBA/Aug-19  Aug-18/1.919    $135,756,500  136 
Morgan Stanley & Co. International PLC         
3.00/3 month USD-LIBOR-BBA/Apr-72  Apr-47/3.00    6,990,700  726,194 
3.00/3 month USD-LIBOR-BBA/Apr-72  Apr-47/3.00    6,990,700  726,124 
(2.8225)/3 month USD-LIBOR-BBA/Oct-20  Oct-18/2.8225    118,927,300  352,025 
(2.92875)/3 month USD-LIBOR-BBA/Nov-20  Nov-18/2.92875    59,463,700  172,445 

 

54 Premier Income Trust 

 



PURCHASED SWAP OPTIONS OUTSTANDING (2.0%)* cont.     
Counterparty    Notional/   
Fixed right % to receive or (pay)/  Expiration  contract   
Floating rate index/Maturity date  date/strike  amount  Value 
Morgan Stanley & Co. International PLC cont.       
2.89/3 month USD-LIBOR-BBA/Sep-28  Sep-18/2.89  $56,058,700  $147,995 
2.745/3 month USD-LIBOR-BBA/Aug-28  Aug-18/2.745  41,919,900  10,899 
Total purchased swap options outstanding (cost $13,083,232)    $11,799,615 

 

  Principal   
SENIOR LOANS (1.7%)*c  amount  Value 
Academy, Ltd. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month     
+ 4.00%), 6.092%, 7/2/22  $227,903  $187,979 
Air Methods Corp. bank term loan FRN Ser. B, (BBA LIBOR USD     
3 Month + 3.50%), 5.834%, 4/21/24  181,936  167,097 
Avaya, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month     
+ 4.25%), 6.322%, 12/15/24  562,175  564,384 
Brand Industrial Services, Inc. bank term loan FRN (BBA LIBOR     
USD 3 Month + 4.25%), 6.599%, 6/21/24  476,190  478,240 
BWAY Corp. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month     
+ 3.25%), 5.581%, 4/3/24  143,550  143,101 
California Resources Corp. bank term loan FRN (BBA LIBOR USD     
3 Month + 4.75%), 6.831%, 11/17/22  345,000  349,313 
CCC Information Services, Inc. bank term loan FRN (BBA LIBOR     
USD 3 Month + 6.75%), 8.844%, 3/31/25  144,000  144,900 
Chesapeake Energy Corp. bank term loan FRN (BBA LIBOR USD     
3 Month + 7.50%), 9.594%, 8/23/21  380,000  397,100 
CPG International, Inc. bank term loan FRN (BBA LIBOR USD     
3 Month + 3.75%), 6.251%, 5/5/24  195,147  195,228 
Eagleclaw Midstream Ventures, LLC bank term loan FRN (BBA     
LIBOR USD 3 Month + 4.25%), 6.421%, 6/30/24  307,224  296,183 
Forterra Finance, LLC bank term loan FRN (BBA LIBOR USD     
3 Month + 3.00%), 5.094%, 10/25/23  418,556  389,693 
FTS International, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD     
3 Month + 4.75%), 6.844%, 4/16/21  299,822  300,571 
Gates Global, LLC bank term loan FRN Ser. B, (BBA LIBOR USD     
3 Month + 2.75%), 5.084%, 3/31/24  173,160  173,463 
HFOTCO, LLC bank term loan FRN Ser. B1, (BBA LIBOR USD 3 Month     
+ 2.75%), 5.09%, 6/26/25  445,000  444,444 
iHeartCommunications, Inc. bank term loan FRN Ser. D, (BBA     
LIBOR USD 3 Month + 6.75%), 8.844%, 1/30/19 (In default)    743,000  574,586 
Jo-Ann Stores, LLC bank term loan FRN (BBA LIBOR USD 3 Month     
+ 9.25%), 11.604%, 5/21/24  575,000  567,813 
Jo-Ann Stores, LLC bank term loan FRN (BBA LIBOR USD 3 Month     
+ 5.00%), 7.509%, 10/16/23  174,098  174,315 
KCA Deutag Alpha, Ltd. bank term loan FRN Ser. B, (BBA LIBOR USD     
3 Month + 6.75%), 9.021%, 3/21/23  334,168  332,497 
Kronos, Inc./MA bank term loan FRN (BBA LIBOR USD 3 Month     
+ 8.25%), 10.608%, 11/1/24  220,000  226,380 
Murray Energy Corp. bank term loan FRN Ser. B2, (BBA LIBOR USD     
3 Month + 7.25%), 9.344%, 4/17/20  227,388  212,892 
Navistar Financial Corp Owner Trust bank term loan FRN Ser. B,     
(BBA LIBOR USD 3 Month + 3.75%), 6.087%, 7/25/25  85,000  85,106 
Navistar, Inc. bank term loan FRN Ser. B, (BBA LIBOR USD 3 Month     
+ 3.50%), 5.60%, 11/6/24  748,125  751,398 

 

Premier Income Trust 55 

 



  Principal   
SENIOR LOANS (1.7%)*c cont.  amount  Value 
Neiman Marcus Group, Ltd., Inc. bank term loan FRN (BBA LIBOR     
USD 3 Month + 3.25%), 5.336%, 10/25/20  $306,686  $270,114 
Oryx Southern Delaware Holdings, LLC bank term loan FRN Ser. B,     
(BBA LIBOR USD 3 Month + 3.25%), 5.267%, 2/28/25  234,413  228,406 
Rackspace Hosting, Inc. bank term loan FRN (BBA LIBOR USD     
3 Month + 3.00%), 5.363%, 11/3/23  325,912  324,160 
Revlon Consumer Products Corp. bank term loan FRN Ser. B, (BBA     
LIBOR USD 3 Month + 3.50%), 5.594%, 9/7/23  552,385  407,680 
Reynolds Group Holdings, Inc. bank term loan FRN (BBA LIBOR     
USD 3 Month + 3.00%), 4.844%, 2/5/23  319,325  320,273 
Robertshaw Holdings Corp. bank term loan FRN (BBA LIBOR USD     
3 Month + 8.00%), 9.873%, 2/28/26  220,000  214,500 
Robertshaw Holdings Corp. bank term loan FRN (BBA LIBOR USD     
3 Month + 3.50%), 5.373%, 2/28/25  259,350  258,053 
Talbots, Inc. (The) bank term loan FRN (BBA LIBOR USD 3 Month     
+ 8.50%), 10.594%, 3/19/21  150,913  146,008 
Talbots, Inc. (The) bank term loan FRN (BBA LIBOR USD 3 Month     
+ 4.50%), 6.594%, 3/19/20  236,643  232,206 
Titan Acquisition, Ltd. (United Kingdom) bank term loan FRN     
Ser. B, (BBA LIBOR USD 3 Month + 3.00%), 5.202%, 3/28/25  578,550  568,907 
Vertiv Intermediate Holding II Corp. bank term loan FRN Ser. B,     
(BBA LIBOR USD 3 Month + 4.00%), 6.10%, 11/15/23  120,000  119,250 
Werner Finco LP bank term loan FRN Ser. B, (BBA LIBOR USD     
3 Month + 4.00%), 6.092%, 7/24/24  169,148  164,919 
Total senior loans (cost $10,740,169)    $10,411,159 
 
  Principal   
CONVERTIBLE BONDS AND NOTES (1.0%)*  amount  Value 
Basic materials (—%)     
Cemex SAB de CV cv. unsec. sub. notes 3.72%, 3/15/20, (Mexico)  $48,000  $48,832 
Patrick Industries, Inc. 144A cv. sr. unsec. notes 1.00%, 2/1/23  39,000  37,549 
    86,381 
Capital goods (—%)     
Dycom Industries, Inc. cv. sr. unsec. notes 0.75%, 9/15/21  72,000  80,038 
Greenbrier Cos., Inc. (The) cv. sr. unsec. notes 2.875%, 2/1/24  46,000  54,481 
Horizon Global Corp. cv. sr. unsec. unsub. notes 2.75%, 7/1/22  47,000  33,149 
II-VI, Inc. 144A cv. sr. unsec. notes 0.25%, 9/1/22  36,000  38,002 
Kaman Corp. cv. sr. unsec. notes 3.25%, 5/1/24  66,000  76,803 
    282,473 
Communication services (—%)     
DISH Network Corp. cv. sr. unsec. notes 3.375%, 8/15/26  131,000  119,008 
RingCentral, Inc. 144A cv. sr. unsec. notes zero %, 3/15/23  48,000  52,026 
    171,034 
Consumer cyclicals (0.1%)     
Caesars Entertainment Corp. cv. sr. unsec. notes 5.00%, 10/1/24  31,972  57,435 
Euronet Worldwide, Inc. cv. sr. unsec. bonds 1.50%, 10/1/44  48,000  62,092 
Liberty Interactive, LLC 144A cv. sr. unsec. bonds 1.75%, 9/30/46  116,000  125,931 
Liberty Media Corp. cv. sr. unsec. bonds 1.375%, 10/15/23  124,000  156,897 
Liberty Media Corp. cv. sr. unsec. notes 1.00%, 1/30/23  46,000  51,934 
Live Nation Entertainment, Inc. 144A cv. sr. unsec. notes     
2.50%, 3/15/23  59,000  61,978 

 

56 Premier Income Trust 

 



  Principal   
CONVERTIBLE BONDS AND NOTES (1.0%)* cont.  amount  Value 
Consumer cyclicals cont.     
Macquarie Infrastructure Corp. cv. sr. unsec. unsub. notes     
2.00%, 10/1/23  $44,000  $39,013 
Navistar International Corp. cv. sr. unsec. sub. bonds     
4.75%, 4/15/19  36,000  37,202 
Priceline Group, Inc. (The) cv. sr. unsec. unsub. notes     
0.35%, 6/15/20  103,000  159,488 
Square, Inc. cv. sr. unsec. unsub. notes 0.375%, 3/1/22  17,000  47,921 
Square, Inc. 144A cv. sr. unsec. notes 0.50%, 5/15/23  60,000  65,676 
    865,567 
Consumer staples (0.1%)     
Chegg, Inc. 144A cv. sr. unsec. notes 0.25%, 5/15/23  29,000  34,530 
IAC FinanceCo, Inc. 144A cv. company guaranty sr. unsec. notes     
0.875%, 10/1/22  42,000  47,408 
Liberty Expedia Holdings, Inc. cv. sr. unsec. unsub. bonds     
1.00%, 6/30/47  118,000  119,699 
Vector Group, Ltd. cv. sr. unsec. sub. notes 1.75%, 4/15/20  59,000  62,247 
Wayfair, Inc. 144A cv. sr. unsec. sub. notes 0.375%, 9/1/22  44,000  53,531 
    317,415 
Energy (0.1%)     
CHC Group, LLC/CHC Finance Ltd. cv. notes Ser. AI, zero %, 10/1/20,     
(acquired 2/2/17, cost $58,386) (Cayman Islands) ∆∆   84,334  84,334 
Cheniere Energy, Inc. cv. sr. unsec. unsub. notes 4.25%, 3/15/45  19,000  14,858 
Chesapeake Energy Corp. cv. company guaranty sr. unsec. notes     
5.50%, 9/15/26  82,000  81,535 
Oasis Petroleum, Inc. cv. sr. unsec. notes 2.625%, 9/15/23  61,000  76,469 
Whiting Petroleum Corp. cv. company guaranty sr. unsec. unsub.     
notes 1.25%, 4/1/20  97,000  92,555 
    349,751 
Financials (0.1%)     
Blackstone Mortgage Trust, Inc. cv. sr. unsec. notes     
4.75%, 3/15/23 R   41,000  40,064 
Heritage Insurance Holdings, Inc. 144A cv. company guaranty sr.     
unsec. bonds 5.875%, 8/1/37  35,000  44,875 
IH Merger Sub, LLC cv. company guaranty sr. unsec. notes     
3.50%, 1/15/22 R   85,000  93,620 
JPMorgan Chase Financial Co., LLC cv. company guaranty sr.     
unsec. notes 0.25%, 5/1/23  71,000  69,633 
Starwood Property Trust, Inc. cv. sr. unsec. unsub. notes     
4.00%, 1/15/19 R   52,000  59,731 
    307,923 
Health care (0.2%)     
BioMarin Pharmaceutical, Inc. cv. sr. unsec. sub. notes     
0.599%, 8/1/24  98,000  103,411 
Clovis Oncology, Inc. cv. sr. unsec. notes 1.25%, 5/1/25  67,000  60,657 
Exact Sciences Corp. cv. sr. unsec. notes 1.00%, 1/15/25  50,000  51,918 
Insmed, Inc. cv. sr. unsec. sub. notes 1.75%, 1/15/25  45,000  42,178 
Insulet Corp. 144A cv. sr. unsec. notes 1.375%, 11/15/24  37,000  40,266 
Ironwood Pharmaceuticals, Inc. cv. sr. unsec. notes 2.25%, 6/15/22  39,000  52,352 
Jazz Investments I, Ltd. cv. company guaranty sr. unsec. sub.     
bonds 1.875%, 8/15/21, (Ireland)  160,000  172,709 

 

Premier Income Trust 57 

 



  Principal   
CONVERTIBLE BONDS AND NOTES (1.0%)* cont.  amount  Value 
Health care cont.     
Medicines Co. (The) cv. sr. unsec. notes 2.50%, 1/15/22  $109,000  $139,775 
Neurocrine Biosciences, Inc. cv. sr. unsec. notes 2.25%, 5/15/24  36,000  52,758 
Pacira Pharmaceuticals, Inc./Delaware cv. sr. unsec. sub. notes     
2.375%, 4/1/22  69,000  68,077 
Supernus Pharmaceuticals, Inc. 144A cv. sr. unsec. notes     
0.625%, 4/1/23  48,000  54,000 
Teladoc, Inc. 144A cv. sr. unsec. notes 1.375%, 5/15/25  61,000  78,781 
Wright Medical Group, Inc. 144A cv. company guaranty sr. unsec.     
notes 1.625%, 6/15/23  72,000  70,869 
    987,751 
Technology (0.4%)     
Akamai Technologies, Inc. 144A cv. sr. unsec. notes 0.125%, 5/1/25  52,000  52,218 
Carbonite, Inc. cv. sr. unsec. unsub. notes 2.50%, 4/1/22  31,000  45,166 
Citrix Systems, Inc. cv. sr. unsec. notes 0.50%, 4/15/19  29,000  44,110 
Coupa Software, Inc. 144A cv. sr. unsec. notes 0.375%, 1/15/23  55,000  81,015 
Cypress Semiconductor Corp. cv. sr. unsec. notes 4.50%, 1/15/22  58,000  83,813 
Everbridge, Inc. cv. sr. unsec. unsub. notes 1.50%, 11/1/22  36,000  51,567 
HubSpot, Inc. cv. sr. unsec. notes 0.25%, 6/1/22  57,000  80,291 
Inphi Corp. cv. sr. unsec. notes 0.75%, 9/1/21  51,000  47,466 
Integrated Device Technology, Inc. cv. sr. unsec. unsub. notes     
0.875%, 11/15/22  65,000  77,439 
Intel Corp. cv. jr. unsec. sub. notes 3.25%, 8/1/39  61,000  141,342 
J2 Global, Inc. cv. sr. unsec. notes 3.25%, 6/15/29  61,000  80,665 
Microchip Technology, Inc. cv. sr. unsec. sub. notes     
1.625%, 2/15/27  203,000  241,760 
Micron Technology, Inc. cv. sr. unsec. bonds 3.00%, 11/15/43  99,000  178,737 
Nice Systems, Inc. cv. company guaranty sr. unsec. notes     
1.25%, 1/15/24  57,000  78,284 
Novellus Systems, Inc. cv. company guaranty sr. unsec. notes     
2.625%, 5/15/41  24,000  137,198 
Nuance Communications, Inc. cv. sr. unsec. notes 1.25%, 4/1/25  42,000  40,059 
Nutanix, Inc. 144A cv. sr. unsec. notes zero %, 1/15/23  51,000  60,796 
Okta, Inc. 144A cv. sr. unsec. notes 0.25%, 2/15/23  54,000  65,590 
ON Semiconductor Corp. cv. company guaranty sr. unsec. unsub.     
notes 1.625%, 10/15/23  56,000  70,176 
ON Semiconductor Corp. cv. company guaranty sr. unsec. unsub.     
notes 1.00%, 12/1/20  43,000  56,147 
OSI Systems, Inc. cv. sr. unsec. unsub. notes 1.25%, 9/1/22  68,000  65,625 
Palo Alto Networks, Inc. 144A cv. sr. unsec. notes 0.75%, 7/1/23  117,000  114,899 
Proofpoint, Inc. cv. sr. unsec. unsub. notes 0.75%, 6/15/20  63,000  90,631 
RealPage, Inc. cv. sr. unsec. notes 1.50%, 11/15/22  78,000  109,750 
Red Hat, Inc. cv. sr. unsec. unsub. bonds 0.25%, 10/1/19  51,000  97,841 
ServiceNow, Inc. cv. sr. unsec. unsub. notes zero %, 6/1/22  66,000  90,682 
Teradyne, Inc. cv. sr. unsec. notes 1.25%, 12/15/23  55,000  79,975 
TTM Technologies, Inc. cv. sr. unsec. notes 1.75%, 12/15/20  33,000  60,670 
Twitter, Inc. cv. sr. unsec. unsub. bonds 1.00%, 9/15/21  70,000  64,897 
Twitter, Inc. 144A cv. sr. unsec. notes 0.25%, 6/15/24  30,000  27,287 
Vocera Communications, Inc. 144A cv. sr. unsec. notes     
1.50%, 5/15/23  36,000  39,988 

 

58 Premier Income Trust 

 



  Principal   
CONVERTIBLE BONDS AND NOTES (1.0%)* cont.  amount  Value 
Technology cont.     
Western Digital Corp. 144A cv. company guaranty sr. unsec. notes     
1.50%, 2/1/24  $47,000  $45,997 
Wix.com, Ltd. 144A cv. sr. unsec. notes zero %, 7/1/23, (Israel)  35,000  33,388 
Workday, Inc. 144A cv. sr. unsec. notes 0.25%, 10/1/22  59,000  62,223 
    2,697,692 
Transportation (—%)     
Air Transport Services Group, Inc. 144A cv. sr. unsec. notes     
1.125%, 10/15/24  82,000  79,941 
Scorpio Tankers, Inc. 144A cv. sr. unsec. sub. notes 2.375%, 7/1/19  26,000  25,064 
    105,005 
Total convertible bonds and notes (cost $5,718,917)    $6,170,992 
 
  Principal   
ASSET-BACKED SECURITIES (0.1%)*  amount  Value 
Nationstar HECM Loan Trust 144A Ser. 18-1A, Class M5,     
6.00%, 2/25/28 W   $770,000  $748,825 
Total asset-backed securities (cost $749,268)    $748,825 
 
COMMON STOCKS (0.1%)*  Shares  Value 
Avaya Holdings Corp.    13,924  $286,556 
Caesars Entertainment Corp.    8,988  101,564 
CHC Group, LLC (Units) (acquired 3/23/17, cost $23,780)     
(Cayman Islands)  ∆∆   1,640  12,300 
Halcon Resources Corp.    24,782  96,898 
MWO Holdings, LLC (Units)  F   169  13,689 
Nine Point Energy  F   1,515  21,877 
SandRidge Energy, Inc.    8,217  134,101 
Tervita Corp. Class A (Canada)    449  3,452 
Texas Competitive Electric Holdings Co., LLC/TCEH Finance, Inc.     
(Rights)    21,073  11,379 
Tribune Media Co. Class 1C    92,963  32,537 
Total common stocks (cost $926,640)    $714,353 
 
PREFERRED STOCKS (0.1%)*  Shares  Value 
GMAC Capital Trust I Ser. 2, $1.91 cum. ARP  16,265  $432,161 
Total preferred stocks (cost $412,195)    $432,161 

 

PURCHASED OPTIONS  Expiration         
OUTSTANDING (—%)*  date/strike  Notional    Contract   
Counterparty  price  amount    amount  Value 
HSBC Bank USA, National           
Association           
EUR/SEK (Put)  Aug-18/SEK 10.00  $19,706,939  EUR  16,852,900  $79 
JPMorgan Chase Bank N.A.           
Federal National Mortgage           
Association 30 yr 2.50% TBA           
commitments (Call)  Aug-18/$ 93.45  31,000,000    $31,000,000  41,292 
Federal National Mortgage           
Association 30 yr 3.00% TBA           
commitments (Call)  Aug-18/96.78  48,000,000    48,000,000  24,432 

 

Premier Income Trust 59 

 



PURCHASED OPTIONS  Expiration       
OUTSTANDING (—%)*  date/strike  Notional  Contract   
Counterparty cont.  price  amount  amount  Value 
JPMorgan Chase Bank N.A. cont.         
Federal National Mortgage         
Association 30 yr 3.50% TBA         
commitments (Put)  Sep-18/$98.84  $29,000,000  $29,000,000  $78,880 
Federal National Mortgage         
Association 30 yr 3.50% TBA         
commitments (Put)  Sep-18/98.68  29,000,000  29,000,000  61,741 
Federal National Mortgage         
Association 30 yr 3.50% TBA         
commitments (Put)  Sep-18/98.52  29,000,000  29,000,000  47,792 
Total purchased options outstanding (cost $1,013,366)      $254,216 

 

CONVERTIBLE PREFERRED STOCKS (—%)*  Shares  Value 
Nine Point Energy 6.75% cv. pfd.    32  $37,644 
Total convertible preferred stocks (cost $32,000)    $37,644 

 

  Expiration  Strike     
WARRANTS (—%)*   date  price  Warrants  Value 
Halcon Resources Corp.  9/9/20  $14.04  6,732  $741 
Total warrants (cost $—)        $741 

 

  Principal amount/   
SHORT-TERM INVESTMENTS (15.1%)*    shares  Value 
Argentina (Republic of) Central bank letters with effective yields       
ranging from 28.01.% to 29.31%, 8/15/18 (Argentina)  ARS   42,442,000  $1,521,125 
Argentina (Republic of) Treasury bills with effective yields ranging       
from 24.66% to 25.05%, 9/19/18 (Argentina)  ARS   60,565,000  2,070,013 
Putnam Short Term Investment Fund 2.05% L   Shares   58,463,800  58,463,800 
State Street Institutional U.S. Government Money Market Fund,       
Premier Class 1.83% P   Shares   1,054,000  1,054,000 
U.S. Treasury Bills 1.931%, 9/13/18 # ∆ §     $9,450,000  9,428,752 
U.S. Treasury Bills 1.914%, 8/23/18 §     7,000,000  6,991,968 
U.S. Treasury Bills 1.910%, 9/6/18 # ∆ §     6,690,000  6,677,356 
U.S. Treasury Bills 1.880%, 8/9/18 # ∆ §     3,029,000  3,027,748 
U.S. Treasury Bills 1.895%, 8/16/18 # ∆ §     596,000  595,537 
U.S. Treasury Bills 1.894%, 9/20/18 §     248,000  247,348 
Total short-term investments (cost $91,891,892)      $90,077,647 
 
TOTAL INVESTMENTS       
Total investments (cost $798,064,847)      $795,625,940 

 

Key to holding’s currency abbreviations

 

ARS  Argentine Peso 
AUD  Australian Dollar 
BRL  Brazilian Real 
CAD  Canadian Dollar 
CHF  Swiss Franc 
EUR  Euro 
GBP  British Pound 
HKD  Hong Kong Dollar 

 

60 Premier Income Trust 

 



INR  Indian Rupee 
JPY  Japanese Yen 
MXN  Mexican Peso 
MYR  Malaysian Ringgit 
NOK  Norwegian Krone 
NZD  New Zealand Dollar 
SEK  Swedish Krona 
USD/$  United States Dollar 
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 
DAC  Designated Activity Company 
FRB  Floating Rate Bonds: the rate shown is the current interest rate at the close of the reporting period. Rates may 
  be subject to a cap or floor. For certain securities, the rate may represent a fixed rate currently in place 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. 
  Rates may be subject to a cap or floor. For certain securities, the rate may represent a fixed rate currently in 
  place 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. Rates may be subject to a cap or floor. 
IO  Interest Only 
OJSC  Open 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, 2017 through July 31, 2018 (the reporting period). Within the following notes to the portfolio, 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 “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures.

* Percentages indicated are based on net assets of $596,141,802.

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.

∆∆ This security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $96,634, or less than 0.1% of net assets.

‡‡ Income may be received in cash or additional securities at the discretion of the issuer. The rate shown in parenthesis is the rate paid in kind, if applicable.

# This security, in part or in entirety, was pledged and segregated with the broker to cover margin requirements for futures contracts at the close of the reporting period. Collateral at period end totaled $520,188 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 9).

Premier Income Trust 61 

 



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. Collateral at period end totaled $11,714,632 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 9).

§ 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. Collateral at period end totaled $11,712,338 and is included in Investments in securities on the Statement of assets and liabilities (Notes 1 and 9).

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 are classified as 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).

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.

W The rate shown represents the weighted average coupon associated with the underlying mortgage pools. Rates may be subject to a cap or floor.

At the close of the reporting period, the fund maintained liquid assets totaling $140,899,239 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  85.2%  Russia  0.6% 
Argentina  2.6  Bermuda  0.5 
Greece  2.1  United Kingdom  0.5 
Brazil  1.7  Luxembourg  0.5 
Mexico  1.6  Other  2.5 
Canada  1.3  Total  100.0% 
Indonesia  0.9     

 

62 Premier Income Trust 

 



FORWARD CURRENCY CONTRACTS at 7/31/18 (aggregate face value $369,831,556)   
            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type*  date  Value  face value  (depreciation) 
Bank of America N.A.           
  Australian Dollar  Buy  10/17/18  $4,099,643  $4,004,168  $95,475 
  British Pound  Sell  9/19/18  2,463,035  2,460,575  (2,460) 
  Canadian Dollar  Sell  10/17/18  32,099  32,430  331 
  Euro  Sell  9/19/18  3,756,171  3,779,062  22,891 
  Japanese Yen  Sell  8/16/18  2,316,206  2,386,991  70,785 
  New Taiwan Dollar  Buy  8/16/18  2,463,342  2,500,637  (37,295) 
  New Taiwan Dollar  Sell  8/16/18  2,463,342  2,532,163  68,821 
  New Zealand Dollar  Sell  10/17/18  3,909,666  3,869,065  (40,601) 
  Norwegian Krone  Buy  9/19/18  7,234,205  7,237,505  (3,300) 
  Swedish Krona  Sell  9/19/18  1,897,212  1,878,972  (18,240) 
Barclays Bank PLC           
  Australian Dollar  Buy  10/17/18  6,655,315  6,555,768  99,547 
  British Pound  Buy  9/19/18  5,965,441  6,058,154  (92,713) 
  Canadian Dollar  Sell  10/17/18  2,054,541  2,023,563  (30,978) 
  Euro  Sell  9/19/18  620,298  633,652  13,354 
  Hong Kong Dollar  Sell  8/16/18  419,392  419,735  343 
  Japanese Yen  Sell  8/16/18  1,338,290  1,310,460  (27,830) 
  Norwegian Krone  Buy  9/19/18  3,748,742  3,759,772  (11,030) 
  Swedish Krona  Sell  9/19/18  3,546,391  3,574,608  28,217 
Citibank, N.A.             
  Australian Dollar  Buy  10/17/18  5,459,676  5,376,639  83,037 
  British Pound  Sell  9/19/18  3,327,885  3,343,073  15,188 
  Canadian Dollar  Buy  10/17/18  19,090  18,870  220 
  Euro  Sell  9/19/18  42,362  46,784  4,422 
  Japanese Yen  Buy  8/16/18  1,228,181  1,266,729  (38,548) 
  Japanese Yen  Sell  8/16/18  1,228,181  1,237,661  9,480 
  New Zealand Dollar  Buy  10/17/18  88,882  88,592  290 
  Norwegian Krone  Buy  9/19/18  1,294,058  1,295,443  (1,385) 
  Swedish Krona  Sell  9/19/18  3,993,093  4,058,363  65,270 
Credit Suisse International           
  Australian Dollar  Buy  10/17/18  4,645,514  4,544,264  101,250 
  British Pound  Buy  9/19/18  2,272,731  2,255,490  17,241 
  Canadian Dollar  Buy  10/17/18  1,154,933  1,174,475  (19,542) 
  Euro  Sell  9/19/18  6,269,046  6,287,438  18,392 
  Japanese Yen  Buy  8/16/18  2,899,467  2,919,929  (20,462) 
  Japanese Yen  Sell  8/16/18  2,899,467  2,970,907  71,440 
  New Zealand Dollar  Buy  10/17/18  2,445,969  2,449,808  (3,839) 
  Swedish Krona  Sell  9/19/18  5,773,371  5,783,311  9,940 
Goldman Sachs International           
  Australian Dollar  Buy  10/17/18  4,474,582  4,423,133  51,449 
  Brazilian Real  Sell  10/2/18  242,532  241,933  (599) 
  British Pound  Sell  9/19/18  1,975,373  2,011,791  36,418 
  Canadian Dollar  Sell  10/17/18  1,700,225  1,677,834  (22,391) 
  Chinese Yuan (Offshore)  Buy  8/16/18  2,366,615  2,538,332  (171,717) 

 

Premier Income Trust 63 

 



FORWARD CURRENCY CONTRACTS at 7/31/18 (aggregate face value $369,831,556) cont.   
            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type*  date  Value  face value  (depreciation) 
Goldman Sachs International cont.           
  Chinese Yuan (Offshore)  Sell  8/16/18  $2,366,615  $2,476,065  $109,450 
  Euro  Sell  9/19/18  9,063,086  9,050,115  (12,971) 
  Japanese Yen  Buy  8/16/18  1,228,212  1,258,444  (30,232) 
  Japanese Yen  Sell  8/16/18  1,228,212  1,236,761  8,549 
  New Taiwan Dollar  Buy  8/16/18  2,463,346  2,502,301  (38,955) 
  New Taiwan Dollar  Sell  8/16/18  2,463,346  2,510,229  46,883 
  New Zealand Dollar  Sell  10/17/18  6,434,157  6,333,122  (101,035) 
  Norwegian Krone  Buy  9/19/18  25,993,155  26,105,466  (112,311) 
  South African Rand  Buy  10/17/18  363,670  347,770  15,900 
  Swedish Krona  Buy  9/19/18  11,454,494  11,308,793  145,701 
HSBC Bank USA, National Association           
  Australian Dollar  Buy  10/17/18  4,052,377  3,988,803  63,574 
  British Pound  Buy  9/19/18  2,453,565  2,499,102  (45,537) 
  Canadian Dollar  Sell  10/17/18  2,514,159  2,492,183  (21,976) 
  Chinese Yuan (Offshore)  Buy  8/16/18  2,366,615  2,536,671  (170,056) 
  Chinese Yuan (Offshore)  Sell  8/16/18  2,366,615  2,475,191  108,576 
  Japanese Yen  Sell  8/16/18  2,432,535  2,461,206  28,671 
  Mexican Peso  Buy  10/17/18  779,334  736,490  42,844 
  New Zealand Dollar  Sell  10/17/18  2,845,122  2,815,030  (30,092) 
  Swedish Krona  Sell  9/19/18  5,932,376  5,944,949  12,573 
JPMorgan Chase Bank N.A.           
  Australian Dollar  Sell  10/17/18  1,082,378  1,080,825  (1,553) 
  British Pound  Buy  9/19/18  1,232,175  1,248,063  (15,888) 
  Canadian Dollar  Sell  10/17/18  933,476  919,757  (13,719) 
  Euro  Sell  9/19/18  5,844,014  5,853,646  9,632 
  Japanese Yen  Buy  8/16/18  4,943,508  5,033,111  (89,603) 
  Japanese Yen  Sell  8/16/18  4,943,508  5,004,373  60,865 
  New Zealand Dollar  Sell  10/17/18  1,172,375  1,143,968  (28,407) 
  Norwegian Krone  Buy  9/19/18  5,869,199  5,876,838  (7,639) 
  Russian Ruble  Buy  9/19/18  2,479,474  2,489,345  (9,871) 
  Russian Ruble  Sell  9/19/18  2,479,474  2,476,589  (2,885) 
  Swedish Krona  Sell  9/19/18  8,219,928  8,225,369  5,441 
  Swiss Franc  Sell  9/19/18  328,618  331,369  2,751 
NatWest Markets PLC           
  Australian Dollar  Buy  10/17/18  3,745,886  3,722,871  23,015 
  Canadian Dollar  Sell  10/17/18  2,516,622  2,481,972  (34,650) 
  Euro  Buy  9/19/18  4,170,876  4,186,985  (16,109) 
  Euro  Sell  9/19/18  7,258,284  7,265,334  7,050 
  Japanese Yen  Buy  8/16/18  2,442,613  2,478,052  (35,439) 
  Japanese Yen  Sell  8/16/18  2,442,613  2,459,562  16,949 
  Norwegian Krone  Buy  9/19/18  6,989  6,961  28 
  Norwegian Krone  Sell  9/19/18  2,505,204  2,498,315  (6,889) 
  Swedish Krona  Buy  9/19/18  2,533,211  2,478,728  54,483 
  Swedish Krona  Sell  9/19/18  5,255,447  5,265,019  9,572 

 

64 Premier Income Trust 

 



FORWARD CURRENCY CONTRACTS at 7/31/18 (aggregate face value $369,831,556) cont.   
            Unrealized 
    Contract  Delivery    Aggregate  appreciation/ 
Counterparty  Currency  type*  date  Value  face value  (depreciation) 
State Street Bank and Trust Co.           
  Australian Dollar  Buy  10/17/18  $8,491,360  $8,393,665  $97,695 
  British Pound  Sell  9/19/18  1,336,598  1,360,027  23,429 
  Canadian Dollar  Sell  10/17/18  1,235,218  1,185,064  (50,154) 
  Euro  Sell  9/19/18  13,917,510  13,905,349  (12,161) 
  Japanese Yen  Sell  8/16/18  3,807,781  3,771,254  (36,527) 
  New Zealand Dollar  Sell  10/17/18  2,769,463  2,747,896  (21,567) 
  Norwegian Krone  Buy  9/19/18  8,306,146  8,328,492  (22,346) 
  Swedish Krona  Sell  9/19/18  16,600,312  16,725,593  125,281 
UBS AG             
  Australian Dollar  Buy  10/17/18  4,480,081  4,416,816  63,265 
  British Pound  Sell  9/19/18  3,268,703  3,281,686  12,983 
  Canadian Dollar  Sell  10/17/18  14,702  14,429  (273) 
  Euro  Sell  9/19/18  8,761,152  8,773,921  12,769 
  Japanese Yen  Sell  8/16/18  90,152  118,366  28,214 
  New Zealand Dollar  Sell  10/17/18  3,249,387  3,199,473  (49,914) 
  Norwegian Krone  Buy  9/19/18  4,687,557  4,689,010  (1,453) 
  Swedish Krona  Sell  9/19/18  3,121,490  3,179,596  58,106 
WestPac Banking Corp.           
  Australian Dollar  Buy  10/17/18  7,009,890  6,924,441  85,449 
  Euro  Sell  9/19/18  2,507,830  2,507,989  159 
  Japanese Yen  Buy  8/16/18  1,808,808  1,821,504  (12,696) 
  Japanese Yen  Sell  8/16/18  1,808,808  1,853,163  44,355 
Unrealized appreciation          2,208,013 
Unrealized (depreciation)          (1,575,838) 
Total            $632,175 

 

* The exchange currency for all contracts listed is the United States Dollar.

 

FUTURES CONTRACTS OUTSTANDING at 7/31/18         
          Unrealized 
  Number of  Notional    Expiration  appreciation/ 
  contracts  amount  Value  date  (depreciation) 
Euro-BTP Italian Government           
Bond (Long)  48  $7,145,196  $7,145,196  Sep-18  $58,760 
Euro-Bund 10 yr (Short)  108  20,405,906  20,405,905  Sep-18  (23,048) 
Euro-OAT 10 yr (Short)  16  2,876,227  2,876,227  Sep-18  (10,337) 
U.S. Treasury Note Ultra 10 yr (Long)  63  8,007,891  8,007,891  Sep-18  25,022 
Unrealized appreciation          83,782 
Unrealized (depreciation)          (33,385) 
Total          $50,397 

 

Premier Income Trust 65 

 



WRITTEN SWAP OPTIONS OUTSTANDING at 7/31/18 (premiums $12,420,720)   
Counterparty      Notional/   
Fixed Obligation % to receive or (pay)/  Expiration    contract   
Floating rate index/Maturity date  date/strike    amount  Value 
Bank of America N.A.         
(2.2625)/3 month USD-LIBOR-BBA/Aug-19  Aug-18/2.2625    $61,090,400  $61 
(1.9325)/3 month USD-LIBOR-BBA/Aug-20  Aug-19/1.9325    135,756,500  17,648 
2.2625/3 month USD-LIBOR-BBA/Aug-19  Aug-18/2.2625    61,090,400  425,800 
1.9325/3 month USD-LIBOR-BBA/Aug-20  Aug-19/1.9325    135,756,500  1,521,830 
Barclays Bank PLC         
(2.9325)/3 month USD-LIBOR-BBA/Aug-28  Aug-18/2.9325    42,044,000  76,520 
2.813/3 month USD-LIBOR-BBA/Jan-21  Jan-19/2.813    60,592,000  333,862 
2.9325/3 month USD-LIBOR-BBA/Aug-28  Aug-18/2.9325    42,044,000  446,928 
Citibank, N.A.         
(2.6325)/3 month USD-LIBOR-BBA/Aug-19  Aug-18/2.6325    54,302,600  54 
3.126/3 month USD-LIBOR-BBA/Aug-28  Aug-18/3.126    42,044,000  6,727 
(2.93)/3 month USD-LIBOR-BBA/Aug-28  Aug-18/2.93    42,044,000  33,635 
3.09/3 month USD-LIBOR-BBA/Jun-24  Jun-19/3.09    29,825,500  295,571 
2.93/3 month USD-LIBOR-BBA/Aug-28  Aug-18/2.93    42,044,000  406,145 
2.663/3 month USD-LIBOR-BBA/Jan-21  Jan-19/2.663    60,592,000  464,741 
Credit Suisse International         
3.3575/3 month USD-LIBOR-BBA/Aug-28  Aug-18/3.3575    44,597,800  1,338 
(2.973)/3 month USD-LIBOR-BBA/Sep-22  Sep-18/2.973    74,563,800  177,462 
2.973/3 month USD-LIBOR-BBA/Sep-22  Sep-18/2.973    74,563,800  211,016 
Goldman Sachs International         
(2.3025)/3 month USD-LIBOR-BBA/Oct-19  Oct-18/2.3025    108,605,200  2,172 
(2.85)/3 month USD-LIBOR-BBA/Sep-20  Sep-18/2.85    118,927,300  54,707 
(2.8875)/3 month USD-LIBOR-BBA/Sep-20  Sep-18/2.8875    118,927,300  91,574 
2.8875/3 month USD-LIBOR-BBA/Sep-20  Sep-18/2.8875    118,927,300  174,823 
2.85/3 month USD-LIBOR-BBA/Sep-20  Sep-18/2.85    118,927,300  206,934 
(1.6975)/3 month GBP-LIBOR-BBA/Oct-38  Oct-18/1.6975  GBP  18,614,000  287,563 
(2.01)/6 month EUR-EURIBOR-Reuters/Dec-37  Dec-27/2.01  EUR  9,307,100  683,361 
2.01/6 month EUR-EURIBOR-Reuters/Dec-37  Dec-27/2.01  EUR  9,307,100  732,334 
JPMorgan Chase Bank N.A.         
(2.25)/3 month USD-LIBOR-BBA/Aug-19  Aug-18/2.25    $61,090,400  61 
(1.919)/3 month USD-LIBOR-BBA/Aug-20  Aug-19/1.919    135,756,500  17,648 
3.055/3 month USD-LIBOR-BBA/Sep-20  Sep-18/3.055    89,476,500  21,474 
2.975/3 month USD-LIBOR-BBA/Sep-20  Sep-18/2.975    89,476,500  59,054 
(1.106)/3 month GBP-LIBOR-BBA/Nov-27  Nov-22/1.106  GBP  10,237,800  163,267 
2.25/3 month USD-LIBOR-BBA/Aug-19  Aug-18/2.25    $61,090,400  432,520 
2.77/3 month USD-LIBOR-BBA/Jan-21  Jan-19/2.77    108,605,200  650,545 
(1.733)/6 month EUR-EURIBOR-Reuters/Sep-39  Sep-19/1.733  EUR  18,614,000  1,004,296 
1.919/3 month USD-LIBOR-BBA/Aug-20  Aug-19/1.919    $135,756,500  1,538,121 
Morgan Stanley & Co. International PLC         
3.255/3 month USD-LIBOR-BBA/Aug-28  Aug-18/3.255    41,919,900  20,122 
3.24/3 month USD-LIBOR-BBA/Sep-28  Sep-18/3.24    28,029,300  49,612 
(2.99)/3 month USD-LIBOR-BBA/Sep-28  Sep-18/2.99    28,029,300  147,154 
2.75/3 month USD-LIBOR-BBA/Aug-20  Aug-18/2.75    59,463,700  184,337 

 

66 Premier Income Trust 

 



WRITTEN SWAP OPTIONS OUTSTANDING at 7/31/18 (premiums $12,420,720) cont.   
Counterparty    Notional/   
Fixed Obligation % to receive or (pay)/  Expiration  contract   
Floating rate index/Maturity date  date/strike  amount  Value 
Morgan Stanley & Co. International PLC cont.       
(3.00)/3 month USD-LIBOR-BBA/Apr-48  Apr-25/3.00  $6,990,700  $619,166 
(3.00)/3 month USD-LIBOR-BBA/Apr-48  Apr-25/3.00  6,990,700  619,865 
Total      $12,180,048 

 

WRITTEN OPTIONS OUTSTANDING at 7/31/18 (premiums $976,719)     
  Expiration  Notional  Contract   
Counterparty  date/strike price  amount  amount  Value 
JPMorgan Chase Bank N.A.         
Federal National Mortgage         
Association 30 yr 2.50% TBA         
commitments (Put)  Aug-18/$93.45  $31,000,000  $31,000,000  $106,671 
Federal National Mortgage         
Association 30 yr 3.00% TBA         
commitments (Put)  Aug-18/96.78  48,000,000  48,000,000  208,128 
Federal National Mortgage         
Association 30 yr 3.50% TBA         
commitments (Put)  Sep-18/98.27  29,000,000  29,000,000  30,653 
Federal National Mortgage         
Association 30 yr 3.50% TBA         
commitments (Put)  Sep-18/98.11  29,000,000  29,000,000  23,200 
Federal National Mortgage         
Association 30 yr 3.50% TBA         
commitments (Put)  Sep-18/97.95  29,000,000  29,000,000  17,429 
Federal National Mortgage         
Association 30 yr 3.50% TBA         
commitments (Put)  Sep-18/97.70  29,000,000  29,000,000  10,585 
Federal National Mortgage         
Association 30 yr 3.50% TBA         
commitments (Put)  Sep-18/97.54  29,000,000  29,000,000  7,685 
Federal National Mortgage         
Association 30 yr 3.50% TBA         
commitments (Put)  Sep-18/97.38  29,000,000  29,000,000  5,510 
Total        $409,861 

 

FORWARD PREMIUM SWAP OPTION CONTRACTS OUTSTANDING at 7/31/18     
Counterparty         
Fixed right or obligation % to receive    Notional/  Premium  Unrealized 
or (pay)/Floating rate index/  Expiration  contract  receivable/  appreciation/ 
Maturity date  date/strike  amount  (payable)  (depreciation) 
Bank of America N.A.         
(2.203)/3 month USD-LIBOR-BBA/         
Jun-24 (Purchased)  Jun-19/2.203  $13,575,700  $(271,514)  $274,636 
(2.647)/3 month USD-LIBOR-BBA/         
Jun-29 (Purchased)  Jun-24/2.647  13,575,700  (530,810)  71,137 
(2.5925)/3 month USD-LIBOR-BBA/         
Jan-27 (Purchased)  Jan-19/2.5925  8,145,400  (287,125)  (1,466) 
(2.785)/3 month USD-LIBOR-BBA/         
Jan-47 (Purchased)  Jan-27/2.785  8,145,400  (874,001)  (2,525) 

 

Premier Income Trust 67 

 



FORWARD PREMIUM SWAP OPTION CONTRACTS OUTSTANDING at 7/31/18 cont.     
Counterparty         
Fixed right or obligation % to receive    Notional/  Premium  Unrealized 
or (pay)/Floating rate index/  Expiration  contract  receivable/  appreciation/ 
Maturity date  date/strike  amount  (payable)  (depreciation) 
Bank of America N.A. cont.         
2.647/3 month USD-LIBOR-BBA/         
Jun-29 (Purchased)  Jun-24/2.647  $13,575,700  $(530,810)  $(180,421) 
2.203/3 month USD-LIBOR-BBA/         
Jun-24 (Purchased)  Jun-19/2.203  13,575,700  (271,514)  (247,078) 
2.5925/3 month USD-LIBOR-BBA/         
Jan-27 (Purchased)  Jan-19/2.5925  8,145,400  (287,125)  (262,363) 
2.785/3 month USD-LIBOR-BBA/         
Jan-47 (Purchased)  Jan-27/2.785  8,145,400  (874,001)  (282,808) 
(2.7175)/3 month USD-LIBOR-BBA/         
Jan-47 (Written)  Jan-19/2.7175  8,145,400  735,937  652,935 
(2.413)/3 month USD-LIBOR-BBA/         
Jun-29 (Written)  Jun-19/2.413  13,575,700  521,986  458,723 
2.7175/3 month USD-LIBOR-BBA/         
Jan-47 (Written)  Jan-19/2.7175  8,145,400  735,937  116,316 
2.413/3 month USD-LIBOR-BBA/         
Jun-29 (Written)  Jun-19/2.413  13,575,700  521,986  (311,019) 
Barclays Bank PLC         
(2.205)/3 month USD-LIBOR-BBA/         
Jun-24 (Purchased)  Jun-19/2.205  13,575,700  (271,514)  273,550 
(2.43)/3 month USD-LIBOR-BBA/         
Feb-22 (Purchased)  Feb-19/2.43  8,145,400  (113,628)  35,432 
2.43/3 month USD-LIBOR-BBA/         
Feb-22 (Purchased)  Feb-19/2.43  8,145,400  (113,628)  (105,972) 
2.205/3 month USD-LIBOR-BBA/         
Jun-24 (Purchased)  Jun-19/2.205  13,575,700  (271,514)  (246,942) 
Citibank, N.A.         
(2.654)/3 month USD-LIBOR-BBA/         
Jun-29 (Purchased)  Jun-24/2.654  13,575,700  (530,810)  68,693 
(2.689)/3 month USD-LIBOR-BBA/         
Nov-49 (Purchased)  Nov-24/2.689  2,064,000  (265,740)  39,505 
(2.34)/3 month USD-LIBOR-BBA/         
Nov-24 (Purchased)  Nov-19/2.34  2,064,000  (38,287)  36,842 
2.96/3 month USD-LIBOR-BBA/         
Sep-28 (Purchased)  Sep-18/2.96  56,058,700  (163,972)  2,803 
(3.12)/3 month USD-LIBOR-BBA/         
Sep-28 (Purchased)  Sep-18/3.12  56,058,700  (164,252)  (10,651) 
2.34/3 month USD-LIBOR-BBA/         
Nov-24 (Purchased)  Nov-19/2.34  2,064,000  (38,287)  (29,164) 
2.689/3 month USD-LIBOR-BBA/         
Nov-49 (Purchased)  Nov-24/2.689  2,064,000  (265,740)  (75,377) 
2.654/3 month USD-LIBOR-BBA/         
Jun-29 (Purchased)  Jun-24/2.654  13,575,700  (530,810)  (179,063) 
(2.42)/3 month USD-LIBOR-BBA/         
Jun-29 (Written)  Jun-19/2.42  13,575,700  522,664  458,451 
(2.615)/3 month USD-LIBOR-BBA/         
Nov-49 (Written)  Nov-19/2.615  2,064,000  165,120  110,775 

 

68 Premier Income Trust 

 



FORWARD PREMIUM SWAP OPTION CONTRACTS OUTSTANDING at 7/31/18 cont.     
Counterparty         
Fixed right or obligation % to receive    Notional/  Premium  Unrealized 
or (pay)/Floating rate index/  Expiration  contract  receivable/  appreciation/ 
Maturity date  date/strike  amount  (payable)  (depreciation) 
Citibank, N.A. cont.         
3.04/3 month USD-LIBOR-BBA/         
Sep-28 (Written)  Sep-18/3.04  $28,029,300  $157,665  $3,924 
(3.04)/3 month USD-LIBOR-BBA/         
Sep-28 (Written)  Sep-18/3.04  28,029,300  157,665  (3,644) 
2.615/3 month USD-LIBOR-BBA/         
Nov-49 (Written)  Nov-19/2.615  2,064,000  165,120  (68,009) 
2.42/3 month USD-LIBOR-BBA/         
Jun-29 (Written)  Jun-19/2.42  13,575,700  519,949  (305,996) 
Goldman Sachs International         
(2.47)/3 month USD-LIBOR-BBA/         
Nov-29 (Purchased)  Nov-19/2.47  3,439,600  (122,106)  87,779 
(2.7725)/3 month USD-LIBOR-BBA/         
Nov-29 (Purchased)  Nov-19/2.7725  3,439,600  (87,710)  56,203 
(2.725)/3 month USD-LIBOR-BBA/         
Nov-39 (Purchased)  Nov-29/2.725  3,439,600  (275,684)  30,475 
(3.005)/3 month USD-LIBOR-BBA/         
Nov-39 (Purchased)  Nov-29/3.005  3,439,600  (238,364)  23,424 
(3.1025)/3 month USD-LIBOR-BBA/         
Aug-28 (Purchased)  Aug-18/3.1025  84,088,000  (210,220)  15,977 
(2.8175)/3 month USD-LIBOR-BBA/         
Mar-47 (Purchased)  Mar-27/2.8175  1,629,100  (205,674)  5,392 
2.9475/3 month USD-LIBOR-BBA/         
Aug-28 (Purchased)  Aug-18/2.9475  84,088,000  (210,220)  (15,136) 
2.8175/3 month USD-LIBOR-BBA/         
Mar-47 (Purchased)  Mar-27/2.8175  1,629,100  (205,674)  (43,725) 
2.725/3 month USD-LIBOR-BBA/         
Nov-39 (Purchased)  Nov-29/2.725  3,439,600  (275,684)  (52,179) 
3.005/3 month USD-LIBOR-BBA/         
Nov-39 (Purchased)  Nov-29/3.005  3,439,600  (313,004)  (52,282) 
2.47/3 month USD-LIBOR-BBA/         
Nov-29 (Purchased)  Nov-19/2.47  3,439,600  (122,106)  (90,496) 
2.7725/3 month USD-LIBOR-BBA/         
Nov-29 (Purchased)  Nov-19/2.7725  3,439,600  (165,101)  (109,276) 
(2.875)/3 month USD-LIBOR-BBA/         
Nov-39 (Written)  Nov-19/2.875  3,439,600  282,391  173,769 
(2.584)/3 month USD-LIBOR-BBA/         
Nov-39 (Written)  Nov-19/2.584  3,439,600  205,860  143,913 
(3.025)/3 month USD-LIBOR-BBA/         
Aug-28 (Written)  Aug-18/3.025  42,044,000  210,220  9,670 
3.025/3 month USD-LIBOR-BBA/         
Aug-28 (Written)  Aug-18/3.025  42,044,000  210,220  (22,283) 
2.875/3 month USD-LIBOR-BBA/         
Nov-39 (Written)  Nov-19/2.875  3,439,600  145,151  (69,377) 
2.584/3 month USD-LIBOR-BBA/         
Nov-39 (Written)  Nov-19/2.584  3,439,600  205,860  (115,158) 

 

Premier Income Trust 69 

 



FORWARD PREMIUM SWAP OPTION CONTRACTS OUTSTANDING at 7/31/18 cont.     
Counterparty         
Fixed right or obligation % to receive    Notional/  Premium  Unrealized 
or (pay)/Floating rate index/  Expiration  contract  receivable/  appreciation/ 
Maturity date  date/strike  amount  (payable)  (depreciation) 
JPMorgan Chase Bank N.A.         
(2.2525)/3 month USD-LIBOR-BBA/         
Nov-29 (Purchased)  Nov-19/2.2525  $3,439,600  $(213,255)  $52,523 
(2.902)/3 month USD-LIBOR-BBA/         
Nov-49 (Purchased)  Nov-24/2.902  2,064,000  (221,467)  37,317 
(2.553)/3 month USD-LIBOR-BBA/         
Nov-24 (Purchased)  Nov-19/2.553  2,064,000  (27,451)  31,435 
(2.50)/3 month USD-LIBOR-BBA/         
Nov-39 (Purchased)  Nov-29/2.50  3,439,600  (357,718)  482 
2.50/3 month USD-LIBOR-BBA/         
Nov-39 (Purchased)  Nov-29/2.50  3,439,600  (198,809)  (14,653) 
2.2525/3 month USD-LIBOR-BBA/         
Nov-29 (Purchased)  Nov-19/2.2525  3,439,600  (41,275)  (22,048) 
2.553/3 month USD-LIBOR-BBA/         
Nov-24 (Purchased)  Nov-19/2.553  2,064,000  (50,568)  (37,235) 
2.902/3 month USD-LIBOR-BBA/         
Nov-49 (Purchased)  Nov-24/2.902  2,064,000  (319,094)  (92,797) 
(2.8325)/3 month USD-LIBOR-BBA/         
Feb-52 (Purchased)  Feb-22/2.8325  8,145,400  (1,137,301)  (139,694) 
2.8325/3 month USD-LIBOR-BBA/         
Feb-52 (Purchased)  Feb-22/2.8325  8,145,400  (1,137,301)  (452,070) 
(2.79)/3 month USD-LIBOR-BBA/         
Feb-49 (Written)  Feb-19/2.79  8,145,400  773,406  642,916 
2.79/3 month USD-LIBOR-BBA/         
Feb-49 (Written)  Feb-19/2.79  8,145,400  773,406  213,084 
(2.826)/3 month USD-LIBOR-BBA/         
Nov-49 (Written)  Nov-19/2.826  2,064,000  227,246  145,471 
(2.36)/3 month USD-LIBOR-BBA/         
Nov-39 (Written)  Nov-19/2.36  3,439,600  56,753  19,950 
2.36/3 month USD-LIBOR-BBA/         
Nov-39 (Written)  Nov-19/2.36  3,439,600  374,916  (45,128) 
2.826/3 month USD-LIBOR-BBA/         
Nov-49 (Written)  Nov-19/2.826  2,064,000  115,790  (54,985) 
Morgan Stanley & Co. International PLC         
(2.155)/3 month USD-LIBOR-BBA/         
Nov-24 (Purchased)  Nov-19/2.155  2,064,000  (51,600)  38,762 
(2.505)/3 month USD-LIBOR-BBA/         
Nov-49 (Purchased)  Nov-24/2.505  2,064,000  (316,205)  34,242 
2.155/3 month USD-LIBOR-BBA/         
Nov-24 (Purchased)  Nov-19/2.155  2,064,000  (27,038)  (20,619) 
2.505/3 month USD-LIBOR-BBA/         
Nov-49 (Purchased)  Nov-24/2.505  2,064,000  (222,086)  (59,196) 
(2.43)/3 month USD-LIBOR-BBA/         
Nov-49 (Written)  Nov-19/2.43  2,064,000  114,758  77,544 
2.43/3 month USD-LIBOR-BBA/         
Nov-49 (Written)  Nov-19/2.43  2,064,000  226,214  (68,937) 
Unrealized appreciation        4,444,050 
Unrealized (depreciation)        (3,889,772) 
Total        $554,278 

 

70 Premier Income Trust 

 



TBA SALE COMMITMENTS OUTSTANDING at 7/31/18 (proceeds receivable $84,293,945)   
  Principal  Settlement   
Agency  amount  date  Value 
Federal National Mortgage Association, 4.50%, 8/1/48  $8,000,000  8/13/18  $8,298,125 
Federal National Mortgage Association, 3.50%, 8/1/48  63,000,000  8/13/18  62,424,142 
Federal National Mortgage Association, 3.00%, 8/1/48  14,000,000  8/13/18  13,493,593 
Total      $84,215,860 

 

OTC INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18     
      Upfront         
      premium  Termina-       
Swap counterparty/    received  tion  Payments  Payments  Unrealized 
Notional amount  Value  (paid)  date  made by fund  received by fund  depreciation 
JPMorgan Chase Bank N.A.           
MYR  8,395,000  $9,438  $—  12/12/22  3.925% —  3 month MYR-  $(10,108) 
          Quarterly  KLIBOR-BNM —   
            Quarterly   
Upfront premium received   —    Unrealized appreciation   — 
Upfront premium (paid)   —    Unrealized (depreciation)  (10,108) 
Total      $—    Total  $(10,108) 

 

CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18   
    Upfront         
    premium        Unrealized 
    received  Termination  Payments  Payments  appreciation/ 
Notional amount  Value  (paid)  date  made by fund  received by fund  (depreciation) 
$10,543,000  $141,382 E  $(76)  10/27/27  3 month USD-  2.74875% —  $(141,458) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
54,302,600  205,753  (39,303)  7/18/20  3 month USD-  2.68% —  163,157 
        LIBOR-BBA —  Quarterly   
        Semiannually     
45,604,800  392,794  (431)  3/21/23  3 month USD-  2.7725% —  (57,669) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
9,011,000  11,480 E  (101)  2/27/28  3 month USD-  3.11% —  11,379 
        LIBOR-BBA —  Semiannually   
        Quarterly     
86,326,300  230,837 E  (108,233)  6/7/20  3 month USD-  2.79375% —  122,603 
        LIBOR-BBA —  Quarterly   
        Semiannually     
86,326,300  139,331 E  73,052  6/7/20  3 month USD-  2.90375% —  (66,279) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
10,713,000  13,381 E  (120)  3/7/28  3 month USD-  3.05125% —  (13,501) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
332,032,300  3,406,319  (601,641)  6/20/23  2.75% —  3 month USD-  2,665,289 
        Semiannually  LIBOR-BBA —   
          Quarterly   
118,927,300  492,240  237,406  7/5/20  3 month USD-  2.655% —  (235,263) 
        LIBOR-BBA —  Semiannually   
        Quarterly     

 

Premier Income Trust 71 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
    Upfront         
    premium        Unrealized 
    received  Termination  Payments  Payments  appreciation/ 
Notional amount  Value  (paid)  date  made by fund  received by fund  (depreciation) 
$81,964,000  $23,032  $(198)  4/25/19  3 month USD-  2.547% —  $496,250 
        LIBOR-BBA —  Semiannually   
        Quarterly     
204,910,000  55,940  (496)  4/26/19  3 month USD-  2.55% —  1,242,697 
        LIBOR-BBA —  Semiannually   
        Quarterly     
40,982,000  17,212  (99)  5/1/19  3 month USD-  2.5371% —  (4,336) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
41,919,900  472,479  271,365  7/3/28  3 month USD-  2.899% —  (185,470) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
12,339,900  92,710  72,950  7/5/28  3 month USD-  2.9425% —  161,067 
        LIBOR-BBA —  Quarterly   
        Semiannually     
83,839,700  611,946  (254,727)  7/11/28  3 month USD-  2.945% —  (843,607) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
41,919,900  3,647  246,772  7/11/28  3 month USD-  3.03% —  229,612 
        LIBOR-BBA —  Quarterly   
        Semiannually     
84,088,000  469,211  (257,583)  7/17/28  3 month USD-  2.965% —  (711,682) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
42,044,000  76,394  243,998  7/17/28  3 month USD-  3.05% —  158,658 
        LIBOR-BBA —  Quarterly   
        Semiannually     
113,453,000  238,251 E  (119,874)  9/19/23  3 month USD-  2.95% —  118,377 
        LIBOR-BBA —  Quarterly   
        Semiannually     
39,618,000  143,893 E  (142,935)  9/19/28  3 month USD-  3.00% —  (286,829) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
449,394,900  532,533 E  153,469  9/19/20  2.875% —  3 month USD-  686,003 
        Semiannually  LIBOR-BBA —   
          Quarterly   
11,390,200  102,910 E  153,708  9/19/48  3.00% —  3 month USD-  256,618 
        Semiannually  LIBOR-BBA —   
          Quarterly   
66,482,200  293,918 E  66,800  9/19/23  3 month USD-  2.90% —  (227,118) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
62,508,200  498,940 E  (58,880)  9/19/28  2.95% —  3 month USD-  440,060 
        Semiannually  LIBOR-BBA —   
          Quarterly   
7,266,000  36,097  (96)  6/26/28  3 month USD-  2.9715% —  32,004 
        LIBOR-BBA —  Quarterly   
        Semiannually     

 

72 Premier Income Trust 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
    Upfront         
    premium        Unrealized 
    received  Termination  Payments  Payments  appreciation/ 
Notional amount  Value  (paid)  date  made by fund  received by fund  (depreciation) 
$18,078,900  $88,424 E  $(256)  8/7/28  3 month USD-  2.976% —  $88,168 
        LIBOR-BBA —  Quarterly   
        Semiannually     
18,723,600  88,675  (265)  7/27/28  3 month USD-  2.975% —  88,298 
        LIBOR-BBA —  Quarterly   
        Semiannually     
3,251,400  13,981  (46)  7/27/28  3 month USD-  2.98% —  13,914 
        LIBOR-BBA —  Quarterly   
        Semiannually     
19,684,000  64,682  (159)  6/27/23  3 month USD-  2.9035% —  55,269 
        LIBOR-BBA —  Quarterly   
        Semiannually     
11,057,000  85,238  (147)  6/28/28  3 month USD-  2.9398% —  79,686 
        LIBOR-BBA —  Quarterly   
        Semiannually     
10,561,000  108,789  (140)  7/2/28  3 month USD-  2.91024% —  104,461 
        LIBOR-BBA —  Quarterly   
        Semiannually     
11,547,000  103,172  (153)  7/3/28  3 month USD-  2.92594% —  98,468 
        LIBOR-BBA —  Quarterly   
        Semiannually     
13,212,000  121,564  (175)  7/3/28  3 month USD-  2.92287% —  116,212 
        LIBOR-BBA —  Quarterly   
        Semiannually     
54,576,300  82,246  (206)  7/5/20  3 month USD-  2.79594% —  67,504 
        LIBOR-BBA —  Quarterly   
        Semiannually     
20,441,000  88,510  (165)  7/5/23  3 month USD-  2.8815% —  (81,967) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
54,576,300  92,343  (206)  7/5/20  3 month USD-  2.78606% —  77,990 
        LIBOR-BBA —  Quarterly   
        Semiannually     
20,441,000  98,669  (165)  7/5/23  3 month USD-  2.87069% —  (92,286) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
54,576,300  87,049  (206)  7/5/20  3 month USD-  2.79125% —  72,492 
        LIBOR-BBA —  Quarterly   
        Semiannually     
20,441,000  91,269  (165)  7/5/23  3 month USD-  2.87857% —  (84,770) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
6,166,500  51,990  (82)  7/25/28  3 month USD-  2.9325% —  51,694 
        LIBOR-BBA —  Quarterly   
        Semiannually     
8,580,500  77,044  (114)  7/16/28  3 month USD-  2.92604% —  (75,618) 
        LIBOR-BBA —  Semiannually   
        Quarterly     

 

Premier Income Trust 73 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
    Upfront         
    premium        Unrealized 
    received  Termination  Payments  Payments  appreciation/ 
Notional amount  Value  (paid)  date  made by fund  received by fund  (depreciation) 
$21,929,000  $20,942  $(83)  7/16/20  3 month USD-  2.82768% —  $17,821 
        LIBOR-BBA —  Quarterly   
        Semiannually     
8,580,500  80,519  (114)  7/16/28  3 month USD-  2.92138% —  (79,109) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
10,991,700  107,389  (146)  7/20/28  3 month USD-  2.91727% —  (106,338) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
10,991,700  104,542  (146)  7/20/28  3 month USD-  2.92025% —  (103,481) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
46,216,000  41,502  (174)  7/20/20  3 month USD-  2.833% —  (37,834) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
8,685,700  83,930  (115)  7/24/28  3 month USD-  2.9185% —  (83,636) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
8,457,000  7,518  (112)  7/25/28  3 month USD-  3.019% —  (7,215) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
58,514,000  24,985  (221)  7/25/20  3 month USD-  2.858% —  23,463 
        LIBOR-BBA —  Quarterly   
        Semiannually     
10,633,000  25,562  (141)  7/25/28  3 month USD-  3.00162% —  (25,212) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
10,089,000  15,093  (134)  7/26/28  3 month USD-  3.01211% —  14,665 
        LIBOR-BBA —  Quarterly   
        Semiannually     
28,225,000  14,508  (106)  7/26/20  3 month USD-  2.85375% —  (14,411) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
7,898,900  13,397  (105)  7/31/28  3 month USD-  3.01% —  13,806 
        LIBOR-BBA —  Quarterly   
        Semiannually     
14,730,000  4,846  (56)  7/30/20  3 month USD-  2.86417% —  (5,644) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
20,678,000  22,146  (274)  7/30/28  3 month USD-  3.01784% —  (23,374) 
        LIBOR-BBA —  Semiannually   
        Quarterly     
10,530,000  4,001  (140)  7/31/28  3 month USD-  3.02507% —  4,547 
        LIBOR-BBA —  Quarterly   
        Semiannually     
13,294,300  492  (176)  7/31/28  3 month USD-  3.029% —  1,181 
        LIBOR-BBA —  Quarterly   
        Semiannually     

 

74 Premier Income Trust 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
      Upfront         
      premium        Unrealized 
      received  Termination  Payments  Payments  appreciation/ 
Notional amount  Value  (paid)  date  made by fund  received by fund  (depreciation) 
AUD  11,872,000  $3,166  $(37)  11/3/22  2.427% —  6 month AUD-  $(2,713) 
          Semiannually  BBR-BBSW —   
            Semiannually   
AUD  11,872,000  7,621  (37)  11/15/22  2.4525% —  6 month AUD-  (15,095) 
          Semiannually  BBR-BBSW —   
            Semiannually   
AUD  13,623,000  93,682 E  (118)  3/7/28  3.395% —  6 month AUD-  (93,800) 
          Semiannually  BBR-BBSW —   
            Semiannually   
AUD  64,369,000  54,662 E  (96,740)  9/19/23  6 month AUD-  2.55% —  (151,402) 
          BBR-BBSW —  Semiannually   
          Semiannually     
AUD  5,949,000  17,913 E  (31,530)  9/19/28  2.90% —  6 month AUD-  (13,616) 
          Semiannually  BBR-BBSW —   
            Semiannually   
BRL  20,713,797  4,034  (57)  1/2/23  Brazil Cetip  0.00% — At  1,209 
          DI Interbank  maturity   
          Deposit Rate —     
          At maturity     
BRL  10,522,963  18,126  (42)  1/2/23  0.00% — At  Brazil Cetip  (16,997) 
          maturity  DI Interbank   
            Deposit Rate —   
            At maturity   
BRL  11,433,703  73,964   —  1/2/23  0.00% — At  Brazil Cetip  76,302 
          maturity  DI Interbank   
            Deposit Rate —   
            At maturity   
CAD  11,645,000  201,828  (37)  11/2/22  3 month CAD-  2.02% —  (195,645) 
          BA-CDOR —  Semiannually   
          Semiannually     
CAD  11,645,000  191,757  (37)  11/14/22  3 month CAD-  2.0525% —  (185,920) 
          BA-CDOR —  Semiannually   
          Semiannually     
CAD  51,552,000  256,561 E  (26,969)  9/19/23  3 month CAD-  2.50% —  (283,530) 
          BA-CDOR —  Semiannually   
          Semiannually     
CAD  12,668,000  137,192 E  (3,929)  9/19/28  2.60% —  3 month CAD-  (141,121) 
          Semiannually  BA-CDOR —   
            Semiannually   
CHF  23,123,000  24,194 E  (12,134)  9/19/23  0.05% plus 6   —  (36,327) 
          month CHF-     
          LIBOR-BBA —     
          Semiannually     
CHF  24,699,000  28,362 E  (97,350)  9/19/28  6 month CHF-  0.50% —  (125,713) 
          LIBOR-BBA —  Annually   
          Semiannually     
EUR  8,503,000  17,022 E  (34)  2/18/20   —  0.124% plus  (17,056) 
            1 Day Euribor   
            rate — Annually   

 

Premier Income Trust 75 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
      Upfront         
      premium        Unrealized 
      received  Termination  Payments  Payments  appreciation/ 
Notional amount  Value  (paid)  date  made by fund  received by fund  (depreciation) 
EUR  8,503,000  $19,041 E  $(34)  2/18/20   —  0.104% plus  $(19,074) 
            1 Day Euribor   
            rate — Annually   
EUR  27,544,000  87,672  (242)  5/4/22  0.21% —  6 month EUR-  (125,771) 
          Annually  EURIBOR-   
            REUTERS —   
            Semiannually   
EUR  7,933,000  76,809 E  (67)  10/27/27  1.61375% —  6 month EUR-  (76,877) 
          Annually  EURIBOR-   
            REUTERS —   
            Semiannually   
EUR  14,264,000  92,939  (140)  1/24/23  6 month  0.378% —  127,511 
          EUR-EURIBOR-  Annually   
          REUTERS —     
          Semiannually     
EUR  3,664,000  33,196  (59)  1/24/28  0.976% —  6 month EUR-  (55,874) 
          Annually  EURIBOR-   
            REUTERS —   
            Semiannually   
EUR  17,710,000  22,097  (81)  1/24/20   —  0.14% plus 6  (7,910) 
            month EUR-   
            EURIBOR-   
            REUTERS —   
            Semiannually   
EUR  17,815,000  26,623  (84)  1/30/20   —  0.1249%  (13,563) 
            plus 6 month   
            EUR-EURIBOR-   
            REUTERS —   
            Semiannually   
EUR  14,334,000  140,444  (144)  1/30/23  6 month  0.4419% —  178,852 
          EUR-EURIBOR-  Annually   
          REUTERS —     
          Semiannually     
EUR  3,673,000  41,851  (61)  1/30/28  0.9987% —  6 month EUR-  (64,157) 
          Annually  EURIBOR-   
            REUTERS —   
            Semiannually   
EUR  36,297,700  445,075  (420)  3/21/23  0.503% —  6 month EUR-  (567,410) 
          Annually  EURIBOR-   
            REUTERS —   
            Semiannually   
EUR  7,207,000  125,047 E  (99)  2/27/28  1.815% —  6 month EUR-  (125,147) 
          Annually  EURIBOR-   
            REUTERS —   
            Semiannually   
EUR  36,145,000  147,213 E  (47,984)  9/19/23  6 month  0.30% —  99,230 
          EUR-EURIBOR-  Semiannually   
          REUTERS —     
          Annually     

 

76 Premier Income Trust 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
      Upfront         
      premium        Unrealized 
      received  Termination  Payments  Payments  appreciation/ 
Notional amount  Value  (paid)  date  made by fund  received by fund  (depreciation) 
EUR  53,065,000  $137,817 E  $80,812  9/19/28  6 month  0.95% —  $(57,004) 
          EUR-EURIBOR-  Annually   
          REUTERS —     
          Semiannually     
GBP  3,856,000  45,930 E  (72)  1/19/32  1.912% —  6 month GBP-  (46,002) 
          Semiannually  LIBOR-BBA —   
            Semiannually   
GBP  17,538,000  55,454  (54)  9/15/19  6 month GBP-  0.766% —  (50,603) 
          LIBOR-BBA —  Semiannually   
          Semiannually     
GBP  3,508,000  14,237 E  (43)  9/22/32  1.863% —  6 month GBP-  (14,280) 
          Semiannually  LIBOR-BBA —   
            Semiannually   
GBP  17,538,000  47,374  21,775  12/20/19  6 month GBP-  0.85% —  (22,996) 
          LIBOR-BBA —  Semiannually   
          Semiannually     
GBP  14,028,000  51,223 E  (210)  9/19/23  6 month GBP-  1.35% —  (51,433) 
          LIBOR-BBA —  Semiannually   
          Semiannually     
GBP  19,391,000  225,553 E  (298,650)  9/19/28  6 month GBP-  1.70% —  (73,097) 
          LIBOR-BBA —  Semiannually   
          Semiannually     
HKD  646,533,000  98,516  (157)  4/23/19  1.955% —  3 month HKD-  100,674 
          Quarterly  HIBOR-HKAB —   
            Quarterly   
HKD  161,879,000  24,109  (50)  4/24/19  1.965% —  3 month HKD-  24,596 
          Quarterly  HIBOR-HKAB —   
            Quarterly   
HKD  647,517,000  95,696  (198)  4/24/19  1.96625% —  3 month HKD-  97,619 
          Quarterly  HIBOR-HKAB —   
            Quarterly   
HKD  808,986,000  119,353  (248)  4/25/19  1.972% —  3 month HKD-  121,553 
          Quarterly  HIBOR-HKAB —   
            Quarterly   
HKD  323,758,000  50,570  (99)  4/27/19  1.96% —  3 month HKD-  51,079 
          Quarterly  HIBOR-HKAB —   
            Quarterly   
INR  141,940,000  30,428   —  12/22/22  6.715% —  INR-FBIL-  29,526 
          Semiannually  MIBOR-OIS-   
            Compound —   
            Semiannually   
JPY  794,000,000  3,941  (28)  12/19/22  6 month JPY-  0.09% —  (3,346) 
          LIBOR-BBA —  Semiannually   
          Semiannually     
JPY  398,000,000  6,261  (26)  12/19/27  0.29% —  6 month JPY-  5,079 
          Semiannually  LIBOR-BBA —   
            Semiannually   
JPY  794,000,000  9,551  (58)  1/15/23  6 month JPY-  0.135% —  9,844 
          LIBOR-BBA —  Semiannually   
          Semiannually     

 

Premier Income Trust 77 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
      Upfront         
      premium        Unrealized 
      received  Termination  Payments  Payments  appreciation/ 
Notional amount  Value  (paid)  date  made by fund  received by fund  (depreciation) 
JPY  398,000,000  $17,626  $(47)  1/15/28  0.365% —  6 month JPY-  $(18,187) 
          Semiannually  LIBOR-BBA —   
            Semiannually   
JPY  794,000,000  13,187  (60)  2/16/23  6 month JPY-  0.148% —  18,143 
          LIBOR-BBA —  Semiannually   
          Semiannually     
JPY  398,000,000  16,804  (49)  2/16/28  0.366% —  6 month JPY-  (22,996) 
          Semiannually  LIBOR-BBA —   
            Semiannually   
MXN  84,723,000  484,870   —  1/1/26  1 month MXN-  6.16% — 28 Days  (486,326) 
          TIIE-BANXICO —     
          28 Days     
MXN  90,430,000  286,238   —  10/6/21  1 month MXN-  5.93% — 28 Days  (290,311) 
          TIIE-BANXICO —     
          28 Days     
MXN  21,470,000  4,891  (14)  12/24/26  8.12% — 28 Days  1 month MXN-  (4,909) 
            TIIE-BANXICO —   
            28 Days   
MXN  25,900,000  12,825  (17)  1/7/27  8.20% — 28 Days  1 month MXN-  (12,936) 
            TIIE-BANXICO —   
            28 Days   
MXN  315,000  50   —  6/16/23  1 month MXN-  8.005% — 28  (49) 
          TIIE-BANXICO —  Days   
          28 Days     
MXN  30,640,000  5,839  (13)  6/16/23  1 month MXN-  8.02% — 28 Days  (5,806) 
          TIIE-BANXICO —     
          28 Days     
MXN  36,645,000  13,337  (16)  6/26/23  1 month MXN-  7.77% — 28 Days  (13,389) 
          TIIE-BANXICO —     
          28 Days     
NOK  158,554,000  137,256 E  17,086  9/19/28  6 month NOK-  2.20% —  (120,169) 
          NIBOR-NIBR —  Annually   
          Semiannually     
NOK  162,133,000  165,042 E  (48,795)  9/19/23  6 month NOK-  1.80% —  116,247 
          NIBOR-NIBR —  Semiannually   
          Annually     
NZD  34,630,000  118,137 E  65,934  9/19/23  3 month NZD-  2.70% —  (52,205) 
          BBR-FRA —  Quarterly   
          Semiannually     
NZD  24,379,000  119,607 E  (28,190)  9/19/28  3 month NZD-  3.15% —  91,415 
          BBR-FRA —  Semiannually   
          Quarterly     
SEK  178,598,000  1,219  (48)  11/10/19   —  0.245% plus  21,952 
            3 month SEK-   
            STIBOR-SIDE —   
            Quarterly   
SEK  36,591,000  6,904  (31)  11/10/27  3 month SEK-  1.125% —  31,921 
          STIBOR-SIDE —  Annually   
          Quarterly     

 

78 Premier Income Trust 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
      Upfront         
      premium        Unrealized 
      received  Termination  Payments  Payments  appreciation/ 
Notional amount  Value  (paid)  date  made by fund  received by fund  (depreciation) 
SEK  178,598,000  $1,483  $(48)  11/10/19   —  0.246% plus  $22,370 
            3 month SEK-   
            STIBOR-SIDE —   
            Quarterly   
SEK  36,591,000  5,044  (31)  11/10/27  3 month SEK-  1.13% —  33,939 
          STIBOR-SIDE —  Annually   
          Quarterly     
SEK  178,598,000  4,570  (48)  11/13/19   —  0.2225% plus  13,028 
            3 month SEK-   
            STIBOR-SIDE —   
            Quarterly   
SEK  36,591,000  5,551  (31)  11/13/27  3 month SEK-  1.16% —  44,903 
          STIBOR-SIDE —  Annually   
          Quarterly     
SEK  36,591,000  4,623  (31)  11/13/27  3 month SEK-  1.1575% —  43,898 
          STIBOR-SIDE —  Annually   
          Quarterly     
SEK  178,598,000  2,600  (48)  11/13/19   —  0.23% plus 3  16,137 
            month SEK-   
            STIBOR-SIDE —   
            Quarterly   
SEK  36,624,000  63,085  (60)  1/24/28  3 month SEK-  1.3325% —  93,208 
          STIBOR-SIDE —  Annually   
          Quarterly     
SEK  141,157,000  132,489  (141)  1/24/23  0.6075% —  3 month SEK-  (186,337) 
          Annually  STIBOR-SIDE —   
            Quarterly   
SEK  174,483,000  31,690  (81)  1/24/20  0.0925% plus   —  23,250 
          3 month SEK-     
          STIBOR-SIDE —     
          Quarterly     
SEK  171,857,000  32,699  (82)  1/30/20  0.085% plus   —  24,378 
          3 month SEK-     
          STIBOR-SIDE —     
          Quarterly     
SEK  139,150,000  172,542  (143)  1/30/23  0.66875% —  3 month SEK-  (228,018) 
          Annually  STIBOR-SIDE —   
            Quarterly   
SEK  36,240,000  78,881  (61)  1/30/28  3 month SEK-  1.3775% —  108,415 
          STIBOR-SIDE —  Annually   
          Quarterly     
SEK  52,475,000  71,978  (54)  2/5/23  0.6975% —  3 month SEK-  (98,242) 
          Annually  STIBOR-SIDE —   
            Quarterly   
SEK  218,813,000  82,668 E  (13,779)  9/19/23  3 month SEK-  0.50% —  68,890 
          STIBOR-SIDE —  Quarterly   
          Annually     
SEK  125,212,000  78,690 E  (200)  9/19/28  3 month SEK-  1.20% —  (78,890) 
          STIBOR-SIDE —  Annually   
          Quarterly     

 

Premier Income Trust 79 

 



CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
      Upfront         
      premium        Unrealized 
      received  Termination  Payments  Payments  appreciation/ 
Notional amount  Value  (paid)  date  made by fund  received by fund  (depreciation) 
ZAR  91,635,000  $28,700  $(15)  10/31/20  3 month ZAR-  7.48% —  $28,796 
          JIBAR-SAFEX —  Quarterly   
          Quarterly     
ZAR  35,250,000  57,664  (18)  10/31/27  8.365% —  3 month ZAR-  (57,789) 
          Quarterly  JIBAR-SAFEX —   
            Quarterly   
ZAR  76,590,000  33,556  (40)  1/25/21  3 month ZAR-  7.06% —  (33,493) 
          JIBAR-SAFEX —  Quarterly   
          Quarterly     
ZAR  29,335,000  19,580  (33)  1/25/28  7.92% —  3 month ZAR-  19,141 
          Quarterly  JIBAR-SAFEX —   
            Quarterly   
Total      $(595,142)        $1,558,880 

 

E Extended effective date.

 

OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18     
    Upfront         
    premium  Termina-  Payments  Total return  Unrealized 
Swap counterparty/    received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
Barclays Bank PLC             
$129,722  $130,441  $—  1/12/42  4.00% (1 month  Synthetic TRS  $1,786 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
204,614  203,866   —  1/12/40  4.00% (1 month  Synthetic MBX  (562) 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
112,071  106,311   —  1/12/39  6.00% (1 month  Synthetic TRS  (4,515) 
        USD-LIBOR) —  Index 6.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
144,544  144,015   —  1/12/40  4.00% (1 month  Synthetic MBX  (397) 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
15,416  14,773   —  1/12/38  6.50% (1 month  Synthetic TRS  (470) 
        USD-LIBOR) —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
256,771  256,658   —  1/12/41  5.00% (1 month  Synthetic MBX Index  226 
        USD-LIBOR) —  5.00% 30 year Ginnie   
        Monthly  Mae II pools —   
          Monthly   
1,206,767  1,202,354   —  1/12/40  4.00% (1 month  Synthetic MBX  (3,314) 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   

 

80 Premier Income Trust 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.     
    Upfront         
    premium  Termina-  Payments  Total return  Unrealized 
Swap counterparty/    received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
Barclays Bank PLC cont.           
$963,953  $960,936   $—  1/12/40  4.50% (1 month  Synthetic MBX  $(1,940) 
        USD-LIBOR) —  Index 4.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
572,604  569,552   —  1/12/39  (6.00%) 1 month  Synthetic MBX  2,082 
        USD-LIBOR —  Index 6.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
172,016  171,903   —  1/12/41  5.00% (1 month  Synthetic TRS Index  1,596 
        USD-LIBOR) —  5.00% 30 year Ginnie   
        Monthly  Mae II pools —   
          Monthly   
103,550  103,482   —  1/12/41  5.00% (1 month  Synthetic TRS Index  961 
        USD-LIBOR) —  5.00% 30 year Ginnie   
        Monthly  Mae II pools —   
          Monthly   
131,320  131,234   —  1/12/41  5.00% (1 month  Synthetic TRS Index  1,218 
        USD-LIBOR) —  5.00% 30 year Ginnie   
        Monthly  Mae II pools —   
          Monthly   
228,212  218,681   —  1/12/38  6.50% (1 month  Synthetic TRS  (6,965) 
        USD-LIBOR) —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
32,748  31,380   —  1/12/38  6.50% (1 month  Synthetic TRS  (999) 
        USD-LIBOR) —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
484,159  488,890   —  1/12/41  (5.00%) 1 month  Synthetic TRS  (9,502) 
        USD-LIBOR —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
192,527  190,666   —  1/12/43  3.50% (1 month  Synthetic TRS  (390) 
        USD-LIBOR) —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
675,666  673,756   —  1/12/41  (4.00%) 1 month  Synthetic TRS  (3,766) 
        USD-LIBOR —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
1,896,317  1,892,440   —  1/12/40  5.00% (1 month  Synthetic MBX  (1,377) 
        USD-LIBOR) —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   

 

Premier Income Trust 81 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.     
    Upfront         
    premium  Termina-  Payments  Total return  Unrealized 
Swap counterparty/    received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
Barclays Bank PLC cont.           
$16,132,236  $16,096,967   $—  1/12/41  5.00% (1 month  Synthetic MBX  $(14,079) 
        USD-LIBOR) —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
9,751,288  9,715,384   —  1/12/38  (6.50%) 1 month  Synthetic MBX  17,903 
        USD-LIBOR —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
Citibank, N.A.             
949,516  947,440   —  1/12/41  5.00% (1 month  Synthetic MBX  (829) 
        USD-LIBOR) —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
2,160,447  2,155,723   —  1/12/41  5.00% (1 month  Synthetic MBX  (1,886) 
        USD-LIBOR) —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
330,008  329,287   —  1/12/41  5.00% (1 month  Synthetic MBX  (288) 
        USD-LIBOR) —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
Credit Suisse International           
720,149  718,574   —  1/12/41  5.00% (1 month  Synthetic MBX  (629) 
        USD-LIBOR) —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
717,220  714,579   —  1/12/38  (6.50%) 1 month  Synthetic MBX  1,317 
        USD-LIBOR —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
274,536  274,356   —  1/12/41  5.00% (1 month  Synthetic TRS Index  2,547 
        USD-LIBOR) —  5.00% 30 year Ginnie   
        Monthly  Mae II pools —   
          Monthly   
296,416  299,313   —  1/12/41  (5.00%) 1 month  Synthetic TRS  (5,818) 
        USD-LIBOR —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
325,337  328,516   —  1/12/41  (5.00%) 1 month  Synthetic TRS  (6,385) 
        USD-LIBOR —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
293,179  292,987   —  1/12/41  5.00% (1 month  Synthetic MBX Index  2,720 
        USD-LIBOR) —  5.00% 30 year Ginnie   
        Monthly  Mae II pools —   
          Monthly   

 

82 Premier Income Trust 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.     
    Upfront         
    premium  Termina-  Payments  Total return  Unrealized 
Swap counterparty/    received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
Credit Suisse International cont.           
$173,638  $173,147   $—  1/12/41  4.00% (1 month  Synthetic TRS  $968 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
13,916  13,877   —  1/12/41  4.00% (1 month  Synthetic TRS  78 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
13,596  13,516   —  1/12/44  3.50% (1 month  Synthetic TRS  23 
        USD-LIBOR) —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
119,295  118,593   —  1/12/44  3.50% (1 month  Synthetic TRS  198 
        USD-LIBOR) —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
226,615  224,425   —  1/12/43  3.50% (1 month  Synthetic TRS  (459) 
        USD-LIBOR) —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
62,449  61,845   —  1/12/43  3.50% (1 month  Synthetic TRS  (126) 
        USD-LIBOR) —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
35,724  35,379   —  1/12/43  3.50% (1 month  Synthetic TRS  (72) 
        USD-LIBOR) —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
972,550  963,890   —  1/12/45  4.00% (1 month  Synthetic TRS  (776) 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
348,749  345,644   —  1/12/45  4.00% (1 month  Synthetic TRS  (278) 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
340,327  340,327   —  1/12/45  3.50% (1 month  Synthetic TRS  2,567 
        USD-LIBOR) —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
604,819  603,110   —  1/12/41  (4.00%) 1 month  Synthetic TRS  (3,371) 
        USD-LIBOR —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
Deutsche Bank AG             
717,220  714,579   —  1/12/38  (6.50%) 1 month  Synthetic MBX  1,317 
        USD-LIBOR —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   

 

Premier Income Trust 83 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.     
    Upfront         
    premium  Termina-  Payments  Total return  Unrealized 
Swap counterparty/    received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
Goldman Sachs International           
$163,556  $155,151   $—  1/12/39  6.00% (1 month  Synthetic TRS  $(6,589) 
        USD-LIBOR) —  Index 6.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
71,795  68,797   —  1/12/38  6.50% (1 month  Synthetic TRS  (2,191) 
        USD-LIBOR) —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
321,861  323,646   —  1/12/42  4.00% (1 month  Synthetic TRS  4,432 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
321,861  323,646   —  1/12/42  4.00% (1 month  Synthetic TRS  4,432 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
454,287  452,615   —  1/12/38  (6.50%) 1 month  Synthetic MBX  834 
        USD-LIBOR —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
170,663  170,034   —  1/12/38  (6.50%) 1 month  Synthetic MBX  313 
        USD-LIBOR —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
78,519  74,484   —  1/12/39  6.00% (1 month  Synthetic TRS  (3,163) 
        USD-LIBOR) —  Index 6.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
11,809  11,202   —  1/12/39  6.00% (1 month  Synthetic TRS  (476) 
        USD-LIBOR) —  Index 6.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
186,890  186,475   —  1/12/40  4.00% (1 month  Synthetic TRS  1,240 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
78,998  74,939   —  1/12/39  6.00% (1 month  Synthetic TRS  (3,182) 
        USD-LIBOR) —  Index 6.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
157,989  149,870   —  1/12/39  6.00% (1 month  Synthetic TRS  (6,365) 
        USD-LIBOR) —  Index 6.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
5,165  4,949   —  1/12/38  6.50% (1 month  Synthetic TRS  (158) 
        USD-LIBOR) —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   

 

84 Premier Income Trust 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.     
    Upfront         
    premium  Termina-  Payments  Total return  Unrealized 
Swap counterparty/    received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
Goldman Sachs International cont.         
$320,239  $319,060   $—  1/12/38  (6.50%) 1 month  Synthetic MBX  $588 
        USD-LIBOR —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
622,368  620,076   —  1/12/38  (6.50%) 1 month  Synthetic MBX  1,143 
        USD-LIBOR —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
384,251  382,836   —  1/12/38  (6.50%) 1 month  Synthetic MBX  705 
        USD-LIBOR —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
29,442  29,333   —  1/12/38  (6.50%) 1 month  Synthetic MBX  54 
        USD-LIBOR —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
78,536  78,246   —  1/12/38  (6.50%) 1 month  Synthetic MBX  144 
        USD-LIBOR —  Index 6.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
732,607  736,672   —  1/12/42  4.00% (1 month  Synthetic TRS  10,088 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
634,007  637,525   —  1/12/42  4.00% (1 month  Synthetic TRS  8,730 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
464,059  468,594   —  1/12/41  (5.00%) 1 month  Synthetic TRS  (9,108) 
        USD-LIBOR —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
576,517  573,128   —  1/12/44  3.50% (1 month  Synthetic TRS  957 
        USD-LIBOR) —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
456,674  453,990   —  1/12/44  3.50% (1 month  Synthetic TRS  758 
        USD-LIBOR) —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
241,001  239,585   —  1/12/44  3.50% (1 month  Synthetic TRS  400 
        USD-LIBOR) —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
346,071  342,990   —  1/12/45  4.00% (1 month  Synthetic TRS  (276) 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   

 

Premier Income Trust 85 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.     
    Upfront         
    premium  Termina-  Payments  Total return  Unrealized 
Swap counterparty/    received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
Goldman Sachs International cont.         
$387,964  $384,214   $—  1/12/43  (3.50%) 1 month  Synthetic TRS  $785 
        USD-LIBOR —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
1,212,290  1,201,496   —  1/12/45  4.00% (1 month  Synthetic TRS  (967) 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
440,547  413,210   —  1/12/44  (3.00%) 1 month  Synthetic TRS  24,291 
        USD-LIBOR —  Index 3.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
1,066,725  1,063,709   —  1/12/41  (4.00%) 1 month  Synthetic TRS  (5,945) 
        USD-LIBOR —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
JPMorgan Chase Bank N.A.           
934,248  931,607   —  1/12/41  4.00% (1 month  Synthetic TRS  5,207 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
542,060  540,528   —  1/12/41  4.00% (1 month  Synthetic TRS  3,021 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
180,190  179,680   —  1/12/41  4.00% (1 month  Synthetic TRS  1,004 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
503,158  501,735   —  1/12/41  4.00% (1 month  Synthetic TRS  2,804 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
464,059  468,594   —  1/12/41  (5.00%) 1 month  Synthetic TRS  (9,108) 
        USD-LIBOR —  Index 5.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
JPMorgan Securities LLC           
560,539  555,929   —  1/12/44  4.00% (1 month  Synthetic TRS  (63) 
        USD-LIBOR) —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
129,351  128,101   —  1/12/43  (3.50%) 1 month  Synthetic TRS  262 
        USD-LIBOR —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   

 

86 Premier Income Trust 

 



OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.     
    Upfront         
    premium  Termina-  Payments  Total return  Unrealized 
Swap counterparty/    received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
JPMorgan Securities LLC cont.           
$2,140,058  $2,151,930  $ —  1/12/42  (4.00%) 1 month  Synthetic TRS  $(29,468) 
        USD-LIBOR —  Index 4.00% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
634,938  634,521   —  1/12/41  (5.00%) 1 month  Synthetic MBX Index  (5,891) 
        USD-LIBOR —  5.00% 30 year Ginnie   
        Monthly  Mae II pools —   
          Monthly   
1,407,083  1,398,812   —  1/12/44  (3.50%) 1 month  Synthetic TRS  (2,336) 
        USD-LIBOR —  Index 3.50% 30 year   
        Monthly  Fannie Mae pools —   
          Monthly   
Upfront premium received   —    Unrealized appreciation  109,699 
Upfront premium (paid)   —    Unrealized (depreciation)  (154,479) 
Total    $—    Total  $(44,780) 

 

CENTRALLY CLEARED TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18   
      Upfront         
      premium  Termina-  Payments  Total return  Unrealized 
      received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
EUR  17,671,000  $332,250  $—  7/15/27  (1.40%) — At  Eurostat Eurozone  $332,250 
          maturity  HICP excluding   
            tobacco — At   
            maturity   
EUR  17,671,000  387,897   —  7/15/37  1.71% — At  Eurostat Eurozone  (387,897) 
          maturity  HICP excluding   
            tobacco — At   
            maturity   
EUR  6,627,000  125,755  (86)  8/15/27  (1.42%) — At  Eurostat Eurozone  125,669 
          maturity  HICP excluding   
            tobacco — At   
            maturity   
EUR  6,627,000  165,416  (160)  8/15/37  1.71% — At  Eurostat Eurozone  (165,576) 
          maturity  HICP excluding   
            tobacco — At   
            maturity   
EUR  11,045,000  199,247  (142)  8/15/27  (1.4275%) — At  Eurostat Eurozone  199,105 
          maturity  HICP excluding   
            tobacco — At   
            maturity   
EUR  11,045,000  265,310  (267)  8/15/37  1.7138% — At  Eurostat Eurozone  (265,576) 
          maturity  HICP excluding   
            tobacco — At   
            maturity   
EUR  8,836,000  145,821  (114)  9/15/27  (1.4475%) — At  Eurostat Eurozone  145,707 
          maturity  HICP excluding   
            tobacco — At   
            maturity   

 

Premier Income Trust 87 

 



CENTRALLY CLEARED TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
      Upfront         
      premium  Termina-  Payments  Total return  Unrealized 
      received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
EUR  8,836,000  $176,436  $(214)  9/15/37  1.735% — At  Eurostat Eurozone  $(176,649) 
          maturity  HICP excluding   
            tobacco — At   
            maturity   
GBP  5,308,000  1,338  (74)  2/15/23  (3.19%) — At  GBP Non-revised UK  (1,412) 
          maturity  Retail Price Index —   
            At maturity   
GBP  5,308,000  25,520  (124)  2/15/28  3.34% — At  GBP Non-revised UK  25,396 
          maturity  Retail Price Index —   
            At maturity   
GBP  6,900,000  29,742  (115)  3/15/23  (3.325%) — At  GBP Non-revised UK  (29,857) 
          maturity  Retail Price Index —   
            At maturity   
GBP  6,900,000  57,854  (160)  3/15/28  3.4025% — At  GBP Non-revised UK  57,694 
          maturity  Retail Price Index —   
            At maturity   
GBP  2,477,000  5,390  (35)  3/15/23  (3.295%) — At  GBP Non-revised UK  (5,425) 
          maturity  Retail Price Index —   
            At maturity   
GBP  2,477,000  14,929  (58)  3/15/28  3.3875% — At  GBP Non-revised UK  14,872 
          maturity  Retail Price Index —   
            At maturity   
GBP  4,954,000  6,808  (70)  3/15/23  (3.245%) — At  GBP Non-revised UK  6,738 
          maturity  Retail Price Index —   
            At maturity   
GBP  4,954,000  5,052  (70)  3/15/23  (3.25%) — At  GBP Non-revised UK  4,982 
          maturity  Retail Price Index —   
            At maturity   
GBP  9,908,000  14,006  (232)  3/15/28  3.34% — At  GBP Non-revised UK  (14,240) 
          maturity  Retail Price Index —   
            At maturity   
  $7,142,000  146,311   —  7/3/22  (1.9225%) — At  USA Non Revised  146,311 
          maturity  Consumer Price   
            Index-Urban   
            (CPI-U) — At   
            maturity   
  7,142,000  212,060   —  7/3/27  2.085% — At  USA Non Revised  (212,060) 
          maturity  Consumer Price   
            Index-Urban   
            (CPI-U) — At   
            maturity   
  8,217,000  182,278   —  7/5/22  (1.89%) — At  USA Non Revised  182,278 
          maturity  Consumer Price   
            Index-Urban   
            (CPI-U) — At   
            maturity   

 

88 Premier Income Trust 

 



CENTRALLY CLEARED TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 7/31/18 cont.   
    Upfront         
    premium  Termina-  Payments  Total return  Unrealized 
    received  tion  received (paid)  received by  appreciation/ 
Notional amount  Value  (paid)  date  by fund  or paid by fund  (depreciation) 
$8,217,000  $272,188   —  7/5/27  2.05% — At  USA Non Revised  $(272,188) 
        maturity  Consumer Price   
          Index-Urban   
          (CPI-U) — At   
          maturity   
7,952,000  108,982  (49)  12/21/22  (2.068%) — At  USA Non Revised  108,934 
        maturity  Consumer Price   
          Index-Urban   
          (CPI-U) — At   
          maturity   
7,952,000  156,153  (86)  12/21/27  2.1939% — At  USA Non Revised  (156,239) 
        maturity  Consumer Price   
          Index-Urban   
          (CPI-U) — At   
          maturity   
7,952,000  112,441  (49)  12/6/22  (2.05%) — At  USA Non Revised  112,393 
        maturity  Consumer Price   
          Index-Urban   
          (CPI-U) — At   
          maturity   
7,952,000  155,684  (86)  12/6/27  2.19% — At  USA Non Revised  (155,773) 
        maturity  Consumer Price   
          Index-Urban   
          (CPI-U) — At   
          maturity   
Total    $(2,191)        $(380,563) 

 

OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 7/31/18   
    Upfront           
    premium      Termi-  Payments  Unrealized 
Swap counterparty/    received  Notional    nation  received  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  by fund  (depreciation) 
Bank of America N.A.             
CMBX NA BBB–.6  BBB–/P  $9,980  $146,000  $16,089  5/11/63  300 bp —  $(6,024) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  19,586  325,000  35,815  5/11/63  300 bp —  (16,040) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  40,127  650,000  71,630  5/11/63  300 bp —  (31,123) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  38,247  671,000  73,944  5/11/63  300 bp —  (35,306) 
Index            Monthly   
Citigroup Global Markets, Inc.             
CMBX NA BBB–.6  BBB–/P  1,141  8,000  882  5/11/63  300 bp —  264 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  9,654  68,000  7,494  5/11/63  300 bp —  2,200 
Index            Monthly   
CMBX NA BB.6  BB/P  175,851  928,000  181,888  5/11/63  500 bp —  (5,135) 
Index            Monthly   

 

Premier Income Trust 89 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 7/31/18 cont.   
    Upfront           
    premium      Termi-  Payments  Unrealized 
Swap counterparty/    received  Notional    nation  received  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  by fund  (depreciation) 
Citigroup Global Markets, Inc. cont.           
CMBX NA BB.6  BB/P  $317,017  $1,288,000  $252,448  5/11/63  500 bp —  $65,821 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  2,251  21,000  2,314  5/11/63  300 bp —  (51) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  2,230  21,000  2,314  5/11/63  300 bp —  (72) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  10,023  105,000  11,571  5/11/63  300 bp —  (1,486) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  18,408  184,000  20,277  5/11/63  300 bp —  (1,761) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  18,263  185,000  20,387  5/11/63  300 bp —  (2,016) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  42,459  398,000  43,860  5/11/63  300 bp —  (1,169) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  41,716  422,000  46,504  5/11/63  300 bp —  (4,542) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  43,346  454,000  50,031  5/11/63  300 bp —  (6,420) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  55,967  542,000  59,728  5/11/63  300 bp —  (3,445) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  56,002  551,000  60,720  5/11/63  300 bp —  (4,397) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  218,669  1,489,000  164,088  5/11/63  300 bp —  55,450 
Index            Monthly   
Credit Suisse International             
CMBX NA BBB–.6  BBB–/P  58,297  376,000  41,435  5/11/63  300 bp —  17,081 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  81,330  582,000  64,136  5/11/63  300 bp —  17,533 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  85,335  585,000  64,467  5/11/63  300 bp —  21,209 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  170,816  1,171,000  129,044  5/11/63  300 bp —  42,455 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  8,504  85,000  9,367  5/11/63  300 bp —  (813) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  9,537  90,000  9,918  5/11/63  300 bp —  (328) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  10,314  106,000  11,681  5/11/63  300 bp —  (1,305) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  14,440  143,000  15,759  5/11/63  300 bp —  (1,236) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  35,881  212,000  23,362  5/11/63  300 bp —  12,643 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  21,056  222,000  24,464  5/11/63  300 bp —  (3,279) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  27,946  285,000  31,407  5/11/63  300 bp —  (3,295) 
Index            Monthly   

 

90 Premier Income Trust 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 7/31/18 cont.   
    Upfront           
    premium      Termi-  Payments  Unrealized 
Swap counterparty/    received  Notional    nation  received  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  by fund  (depreciation) 
Credit Suisse International cont.           
CMBX NA BBB–.6  BBB–/P  $27,616  $291,000  $32,068  5/11/63  300 bp —  $(4,282) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  32,187  336,000  37,027  5/11/63  300 bp —  (4,644) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  142,278  943,000  103,919  5/11/63  300 bp —  38,910 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  124,926  1,090,000  120,118  5/11/63  300 bp —  5,444 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  151,088  1,317,000  145,133  5/11/63  300 bp —  6,722 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  143,661  1,359,000  149,762  5/11/63  300 bp —  (5,308) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  185,042  1,710,000  188,442  5/11/63  300 bp —  (2,403) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  355,922  2,359,000  259,962  5/11/63  300 bp —  97,337 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  468,136  4,304,000  474,301  5/11/63  300 bp —  (3,654) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  775,069  7,249,000  798,840  5/11/63  300 bp —  (19,543) 
Index            Monthly   
CMBX NA BBB–.7  BBB–/P  27,745  351,000  23,026  1/17/47  300 bp —  4,924 
Index            Monthly   
CMBX NA BBB–.7  BBB–/P  143,170  2,180,000  143,008  1/17/47  300 bp —  1,434 
Index            Monthly   
CMBX NA BBB–.7  BBB–/P  1,039,021  14,057,000  922,139  1/17/47  300 bp —  125,082 
Index            Monthly   
Goldman Sachs International             
CMBX NA BBB–.6  BBB–/P  14,630  88,000  9,698  5/11/63  300 bp —  4,984 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  21,361  203,000  22,371  5/11/63  300 bp —  (891) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  17,848  206,000  22,701  5/11/63  300 bp —  (4,733) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  24,541  223,000  24,575  5/11/63  300 bp —  96 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  17,962  227,000  25,015  5/11/63  300 bp —  (6,921) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  27,421  245,000  26,999  5/11/63  300 bp —  565 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  24,979  296,000  32,619  5/11/63  300 bp —  (7,468) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  58,232  389,000  42,868  5/11/63  300 bp —  15,591 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  57,641  392,000  43,198  5/11/63  300 bp —  14,671 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  44,904  403,000  44,411  5/11/63  300 bp —  728 
Index            Monthly   

 

Premier Income Trust 91 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 7/31/18 cont.   
    Upfront           
    premium      Termi-  Payments  Unrealized 
Swap counterparty/    received  Notional    nation  received  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  by fund  (depreciation) 
Goldman Sachs International cont.           
CMBX NA BBB–.6  BBB–/P  $34,559  $417,000  $45,953  5/11/63  300 bp —  $(11,151) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  45,403  418,000  46,064  5/11/63  300 bp —  (416) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  45,228  418,000  46,064  5/11/63  300 bp —  (592) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  37,046  439,000  48,378  5/11/63  300 bp —  (11,076) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  30,861  453,000  49,921  5/11/63  300 bp —  (18,795) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  51,553  462,000  50,912  5/11/63  300 bp —  910 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  51,553  462,000  50,912  5/11/63  300 bp —  910 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  73,722  531,000  58,516  5/11/63  300 bp —  15,516 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  48,875  566,000  62,373  5/11/63  300 bp —  (13,168) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  86,808  576,000  63,475  5/11/63  300 bp —  23,669 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  59,933  597,000  65,789  5/11/63  300 bp —  (5,508) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  31,646  638,000  70,308  5/11/63  300 bp —  (38,289) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  31,103  638,000  70,308  5/11/63  300 bp —  (38,833) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  34,009  652,000  71,850  5/11/63  300 bp —  (37,461) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  84,497  694,000  76,479  5/11/63  300 bp —  8,423 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  76,544  707,000  77,911  5/11/63  300 bp —  (955) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  69,759  928,000  102,266  5/11/63  300 bp —  (31,965) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  134,739  961,000  105,902  5/11/63  300 bp —  29,398 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  124,607  1,193,000  131,469  5/11/63  300 bp —  (6,165) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  155,880  1,414,000  155,823  5/11/63  300 bp —  882 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  184,707  1,551,000  170,920  5/11/63  300 bp —  14,691 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  93,617  1,935,000  213,237  5/11/63  300 bp —  (118,492) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  320,704  2,144,000  236,269  5/11/63  300 bp —  85,686 
Index            Monthly   

 

92 Premier Income Trust 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 7/31/18 cont.   
    Upfront           
    premium      Termi-  Payments  Unrealized 
Swap counterparty/    received  Notional    nation  received  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  by fund  (depreciation) 
Goldman Sachs International cont.           
CMBX NA BBB–.7  BBB–/P  $104,272  $1,496,000  $98,138  1/17/47  300 bp —  $7,007 
Index            Monthly   
CMBX NA BBB–.7  BBB–/P  143,321  1,939,000  127,198  1/17/47  300 bp —  17,254 
Index            Monthly   
JPMorgan Securities LLC             
CMBX NA BB.6  BB/P  79,440  375,000  73,500  5/11/63  500 bp —  6,304 
Index            Monthly   
CMBX NA BB.6  BB/P  86,142  407,000  79,772  5/11/63  500 bp —  6,765 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  85,236  585,000  64,467  5/11/63  300 bp —  21,111 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  173,296  1,168,000  128,714  5/11/63  300 bp —  45,263 
Index            Monthly   
CMBX NA BB.6  BB/P  109,255  519,000  101,724  5/11/63  500 bp —  8,035 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  7,279  46,000  5,069  5/11/63  300 bp —  2,237 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  7,312  46,000  5,069  5/11/63  300 bp —  2,270 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  14,477  92,000  10,138  5/11/63  300 bp —  4,393 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  8,910  93,000  10,249  5/11/63  300 bp —  (1,284) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  9,394  95,000  10,469  5/11/63  300 bp —  (1,019) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  10,677  106,000  11,681  5/11/63  300 bp —  (942) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  15,040  132,000  14,546  5/11/63  300 bp —  571 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  13,702  134,000  14,767  5/11/63  300 bp —  (986) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  20,772  139,000  15,318  5/11/63  300 bp —  5,535 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  17,004  172,000  18,954  5/11/63  300 bp —  (1,850) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  18,219  189,000  20,828  5/11/63  300 bp —  (2,499) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  21,139  224,000  24,685  5/11/63  300 bp —  (3,415) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  32,007  298,000  32,840  5/11/63  300 bp —  (783) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  36,031  323,000  35,595  5/11/63  300 bp —  625 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  36,027  329,000  36,256  5/11/63  300 bp —  (37) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  33,844  336,000  37,027  5/11/63  300 bp —  (2,987) 
Index            Monthly   

 

Premier Income Trust 93 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 7/31/18 cont.   
    Upfront           
    premium      Termi-  Payments  Unrealized 
Swap counterparty/    received  Notional    nation  received  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  by fund  (depreciation) 
JPMorgan Securities LLC cont.             
CMBX NA BBB–.6  BBB–/P  $55,360  $374,000  $41,215  5/11/63  300 bp —  $14,363 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  58,890  379,000  41,766  5/11/63  300 bp —  17,345 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  60,685  411,000  45,292  5/11/63  300 bp —  15,632 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  56,672  432,000  47,606  5/11/63  300 bp —  9,318 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  58,915  456,000  50,251  5/11/63  300 bp —  8,930 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  60,399  464,000  51,133  5/11/63  300 bp —  9,537 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  82,992  484,000  53,337  5/11/63  300 bp —  29,938 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  82,311  484,000  53,337  5/11/63  300 bp —  29,256 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  81,912  555,000  61,161  5/11/63  300 bp —  21,075 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  77,243  645,000  71,079  5/11/63  300 bp —  6,541 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  71,979  646,000  71,189  5/11/63  300 bp —  1,166 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  71,792  646,000  71,189  5/11/63  300 bp —  979 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  79,783  703,000  77,471  5/11/63  300 bp —  2,722 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  78,962  704,000  77,581  5/11/63  300 bp —  1,792 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  102,206  725,000  79,895  5/11/63  300 bp —  22,734 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  120,499  757,000  83,421  5/11/63  300 bp —  37,519 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  85,520  795,000  87,609  5/11/63  300 bp —  (1,625) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  85,520  795,000  87,609  5/11/63  300 bp —  (1,625) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  98,087  830,000  91,466  5/11/63  300 bp —  7,105 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  99,018  892,000  98,298  5/11/63  300 bp —  1,240 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  121,754  927,000  102,155  5/11/63  300 bp —  20,140 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  156,038  1,029,000  113,396  5/11/63  300 bp —  43,242 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  110,130  1,047,000  115,379  5/11/63  300 bp —  (4,639) 
Index            Monthly   

 

94 Premier Income Trust 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 7/31/18 cont.   
    Upfront           
    premium      Termi-  Payments  Unrealized 
Swap counterparty/    received  Notional    nation  received  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  by fund  (depreciation) 
JPMorgan Securities LLC cont.             
CMBX NA BBB–.6  BBB–/P  $116,769  $1,061,000  $116,922  5/11/63  300 bp —  $466 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  125,112  1,193,000  131,469  5/11/63  300 bp —  (5,660) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  142,215  1,291,000  142,268  5/11/63  300 bp —  700 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  146,906  1,331,000  146,676  5/11/63  300 bp —  1,006 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  160,795  1,696,000  186,899  5/11/63  300 bp —  (25,115) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  268,987  1,771,000  195,164  5/11/63  300 bp —  74,855 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  188,751  1,794,000  197,699  5/11/63  300 bp —  (7,902) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  265,627  1,917,000  211,253  5/11/63  300 bp —  55,492 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  312,079  2,063,000  227,343  5/11/63  300 bp —  85,940 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  525,740  5,013,000  552,433  5/11/63  300 bp —  (23,769) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  563,900  5,381,000  592,986  5/11/63  300 bp —  (25,947) 
Index            Monthly   
Merrill Lynch International             
CMBX NA BBB–.6  BBB–/P  15,475  142,000  15,648  5/11/63  300 bp —  (174) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  15,475  142,000  15,648  5/11/63  300 bp —  (174) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  38,344  369,000  40,664  5/11/63  300 bp —  (2,104) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  134,029  914,000  100,723  5/11/63  300 bp —  33,840 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  102,241  919,000  101,274  5/11/63  300 bp —  1,503 
Index            Monthly   
Morgan Stanley & Co. International PLC           
CMBX NA BBB–.6  BBB–/P  32,411  230,000  25,346  5/11/63  300 bp —  7,199 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  86,440  584,000  64,357  5/11/63  300 bp —  22,424 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  86,313  584,000  64,357  5/11/63  300 bp —  22,297 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  85,231  585,000  64,467  5/11/63  300 bp —  21,105 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  172,880  1,168,000  128,714  5/11/63  300 bp —  44,848 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  173,042  1,168,000  128,714  5/11/63  300 bp —  45,010 
Index            Monthly   

 

Premier Income Trust 95 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION SOLD at 7/31/18 cont.   
    Upfront           
    premium      Termi-  Payments  Unrealized 
Swap counterparty/    received  Notional    nation  received  appreciation/ 
Referenced debt*  Rating***  (paid)**  amount  Value  date  by fund  (depreciation) 
Morgan Stanley & Co. International PLC cont.           
CMBX NA BBB–.6  BBB–/P  $171,233  $1,171,000  $129,044  5/11/63  300 bp —  $42,872 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  212,053  1,533,000  168,937  5/11/63  300 bp —  44,010 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  258,148  1,753,000  193,181  5/11/63  300 bp —  65,990 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  255,855  1,756,000  193,511  5/11/63  300 bp —  63,368 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  344,982  2,337,000  257,537  5/11/63  300 bp —  88,808 
Index            Monthly   
CMBX NA A.6  A/P  61  6,000  68  5/11/63  200 bp —  (5) 
Index            Monthly   
CMBX NA BB.6  BB/P  101,667  414,000  81,144  5/11/63  500 bp —  20,925 
Index            Monthly   
CMBX NA BB.6  BB/P  204,028  828,000  162,288  5/11/63  500 bp —  42,545 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  620  5,000  551  5/11/63  300 bp —  72 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  1,175  11,000  1,212  5/11/63  300 bp —  (30) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  2,117  20,000  2,204  5/11/63  300 bp —  (76) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  3,029  25,000  2,755  5/11/63  300 bp —  289 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  4,605  38,000  4,188  5/11/63  300 bp —  439 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  9,936  104,000  11,461  5/11/63  300 bp —  (1,464) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  19,918  204,000  22,481  5/11/63  300 bp —  (2,444) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  49,325  291,000  32,068  5/11/63  300 bp —  17,426 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  64,507  433,000  47,717  5/11/63  300 bp —  17,043 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  41,997  449,000  49,480  5/11/63  300 bp —  (7,221) 
Index            Monthly   
CMBX NA BBB–.6  BBB–/P  134,748  1,112,000  122,542  5/11/63  300 bp —  12,854 
Index            Monthly   
CMBX NA BBB–.7  BBB–/P  41,260  620,000  40,672  1/17/47  300 bp —  949 
Index            Monthly   
Upfront premium received  16,196,615      Unrealized appreciation  1,993,448 
Upfront premium (paid)   —      Unrealized (depreciation)  (647,732) 
Total     $16,196,615    Total  $1,345,716 

 

96 Premier Income Trust 

 



* 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 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 July 31, 2018. Securities rated by Putnam are indicated by “/P.” The Putnam rating categories are comparable to the Standard & Poor’s classifications.

OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION PURCHASED at 7/31/18   
  Upfront           
  premium      Termi-  Payments  Unrealized 
Swap counterparty/  received  Notional    nation  (paid)  appreciation/ 
Referenced debt*  (paid)**  amount  Value  date  by fund  (depreciation) 
Citigroup Global Markets, Inc.             
CMBX NA A.6 Index  $(56)  $6,000  $68  5/11/63  (200 bp) —  $10 
          Monthly   
CMBX NA BB.7 Index  (67,812)  336,000  44,117  1/17/47  (500 bp) —  (24,022) 
          Monthly   
CMBX NA BB.7 Index  (43,761)  268,000  35,188  1/17/47  (500 bp) —  (8,834) 
          Monthly   
CMBX NA BB.7 Index  (42,091)  268,000  35,188  1/17/47  (500 bp) —  (7,163) 
          Monthly   
CMBX NA BB.9 Index  (97,972)  636,000  100,424  9/17/58  (500 bp) —  1,834 
          Monthly   
CMBX NA BB.9 Index  (98,414)  636,000  100,424  9/17/58  (500 bp) —  1,392 
          Monthly   
CMBX NA BB.9 Index  (49,471)  316,000  49,896  9/17/58  (500 bp) —  119 
          Monthly   
CMBX NA BB.9 Index  (17,878)  112,000  17,685  9/17/58  (500 bp) —  (302) 
          Monthly   
Credit Suisse International             
CMBX NA BB.7 Index  (43,155)  2,445,000  479,220  5/11/63  (500 bp) —  433,687 
          Monthly   
CMBX NA BB.7 Index  (346,903)  2,109,000  276,912  1/17/47  (500 bp) —  (72,042) 
          Monthly   
CMBX NA BB.7 Index  (99,427)  539,000  70,771  1/17/47  (500 bp) —  (29,180) 
          Monthly   
CMBX NA BB.9 Index  (156,273)  979,000  154,584  9/17/58  (500 bp) —  (2,641) 
          Monthly   
CMBX NA BB.9 Index  (27,140)  174,000  27,475  9/17/58  (500 bp) —  165 
          Monthly   
CMBX NA BB.9 Index  (27,140)  174,000  27,475  9/17/58  (500 bp) —  165 
          Monthly   
Goldman Sachs International             
CMBX NA BB.6 Index  (104,038)  1,017,000  199,332  5/11/63  (500 bp) —  94,305 
          Monthly   
CMBX NA BB.7 Index  (71,729)  474,000  62,236  1/17/47  (500 bp) —  (9,954) 
          Monthly   
CMBX NA BB.6 Index  (19,578)  134,000  26,264  5/11/63  (500 bp) —  6,555 
          Monthly   
CMBX NA BB.7 Index  (135,933)  804,000  105,565  1/17/47  (500 bp) —  (31,149) 
          Monthly   

 

Premier Income Trust 97 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION PURCHASED at 7/31/18 cont. 
  Upfront           
  premium      Termi-  Payments  Unrealized 
Swap counterparty/  received  Notional    nation  (paid)  appreciation/ 
Referenced debt*  (paid)**  amount  Value  date  by fund  (depreciation) 
Goldman Sachs International cont.           
CMBX NA BB.7 Index  $(84,052)  $513,000  $67,357  1/17/47  (500 bp) —  $(17,194) 
          Monthly   
CMBX NA BB.7 Index  (57,666)  284,000  37,289  1/17/47  (500 bp) —  (20,653) 
          Monthly   
CMBX NA BB.7 Index  (31,765)  174,000  22,846  1/17/47  (500 bp) —  (9,088) 
          Monthly   
CMBX NA BB.9 Index  (18,626)  117,000  18,474  9/17/58  (500 bp) —  (265) 
          Monthly   
CMBX NA BB.9 Index  (8,945)  56,000  8,842  9/17/58  (500 bp) —  (157) 
          Monthly   
CMBX NA BB.9 Index  (8,847)  56,000  8,842  9/17/58  (500 bp) —  (59) 
          Monthly   
JPMorgan Securities LLC             
CMBX NA BB.7 Index  (65,000)  407,000  53,439  1/17/47  (500 bp) —  (11,957) 
          Monthly   
CMBX NA BB.7 Index  (59,948)  375,000  49,238  1/17/47  (500 bp) —  (11,075) 
          Monthly   
CMBX NA BB.7 Index  (34,507)  178,000  23,371  1/17/47  (500 bp) —  (11,309) 
          Monthly   
CMBX NA BB.6 Index  (84,642)  602,000  117,992  5/11/63  (500 bp) —  32,765 
          Monthly   
CMBX NA BB.6 Index  (64,085)  442,000  86,632  5/11/63  (500 bp) —  22,117 
          Monthly   
CMBX NA BB.6 Index  (26,464)  184,000  36,064  5/11/63  (500 bp) —  9,421 
          Monthly   
CMBX NA BB.6 Index  (133)  1,000  196  5/11/63  (500 bp) —  62 
          Monthly   
CMBX NA BB.7 Index  (216,992)  1,389,000  182,376  1/17/47  (500 bp) —  (35,967) 
          Monthly   
CMBX NA BB.7 Index  (153,231)  932,000  122,372  1/17/47  (500 bp) —  (31,765) 
          Monthly   
CMBX NA BB.7 Index  (146,528)  917,000  120,402  1/17/47  (500 bp) —  (27,017) 
          Monthly   
CMBX NA BB.7 Index  (117,583)  724,000  95,061  1/17/47  (500 bp) —  (23,225) 
          Monthly   
CMBX NA BB.7 Index  (73,546)  378,000  49,631  1/17/47  (500 bp) —  (24,283) 
          Monthly   
CMBX NA BB.7 Index  (55,615)  309,000  40,572  1/17/47  (500 bp) —  (15,344) 
          Monthly   
CMBX NA BB.7 Index  (42,091)  268,000  35,188  1/17/47  (500 bp) —  (7,163) 
          Monthly   
CMBX NA BB.7 Index  (45,479)  229,000  30,068  1/17/47  (500 bp) —  (15,634) 
          Monthly   
CMBX NA BB.7 Index  (34,479)  227,000  29,805  1/17/47  (500 bp) —  (4,894) 
          Monthly   
CMBX NA BB.7 Index  (34,907)  223,000  29,280  1/17/47  (500 bp) —  (5,844) 
          Monthly   

 

98 Premier Income Trust 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION PURCHASED at 7/31/18 cont. 
  Upfront           
  premium      Termi-  Payments  Unrealized 
Swap counterparty/  received  Notional    nation  (paid)  appreciation/ 
Referenced debt*  (paid)**  amount  Value  date  by fund  (depreciation) 
JPMorgan Securities LLC cont.             
CMBX NA BB.7 Index  $(32,108)  $174,000  $22,846  1/17/47  (500 bp) —  $(9,431) 
          Monthly   
CMBX NA BB.7 Index  (27,140)  138,000  18,119  1/17/47  (500 bp) —  (9,154) 
          Monthly   
CMBX NA BB.9 Index  (26,674)  169,000  26,685  9/17/58  (500 bp) —  (130) 
          Monthly   
CMBX NA BB.9 Index  (13,261)  85,000  13,422  9/17/58  (500 bp) —  90 
          Monthly   
CMBX NA BBB–.7 Index  (123,050)  1,336,000  87,642  1/17/47  (300 bp) —  (36,188) 
          Monthly   
CMBX NA BBB–.7 Index  (93,842)  1,128,000  73,997  1/17/47  (300 bp) —  (20,503) 
          Monthly   
CMBX NA BBB–.7 Index  (58,493)  795,000  52,152  1/17/47  (300 bp) —  (6,805) 
          Monthly   
CMBX NA BBB–.7 Index  (58,493)  795,000  52,152  1/17/47  (300 bp) —  (6,805) 
          Monthly   
CMBX NA BBB–.7 Index  (80,904)  725,000  47,560  1/17/47  (300 bp) —  (33,767) 
          Monthly   
CMBX NA BBB–.7 Index  (39,631)  501,000  32,866  1/17/47  (300 bp) —  (7,057) 
          Monthly   
CMBX NA BBB–.7 Index  (39,487)  437,000  28,667  1/17/47  (300 bp) —  (11,075) 
          Monthly   
CMBX NA BBB–.7 Index  (39,703)  379,000  24,862  1/17/47  (300 bp) —  (15,061) 
          Monthly   
CMBX NA BBB–.7 Index  (15,493)  288,000  18,893  1/17/47  (300 bp) —  3,231 
          Monthly   
Merrill Lynch International             
CMBX NA BB.7 Index  (331,175)  1,909,000  250,652  1/17/47  (500 bp) —  (82,379) 
          Monthly   
CMBX NA BB.9 Index  (48,998)  318,000  50,212  9/17/58  (500 bp) —  905 
          Monthly   
CMBX NA BB.9 Index  (49,440)  318,000  50,212  9/17/58  (500 bp) —  463 
          Monthly   
CMBX NA BB.9 Index  (16,726)  107,000  16,895  9/17/58  (500 bp) —  65 
          Monthly   
CMBX NA BB.9 Index  (10,749)  67,000  10,579  9/17/58  (500 bp) —  (235) 
          Monthly   
CMBX NA BBB–.7 Index  (75,310)  919,000  60,286  1/17/47  (300 bp) —  (15,560) 
          Monthly   
Morgan Stanley & Co. International PLC           
CMBX NA BBB–.7 Index  (34,235)  336,000  22,042  1/17/47  (300 bp) —  (12,389) 
          Monthly   
CMBX NA BB.7 Index  (166,515)  828,000  108,716  1/17/47  (500 bp) —  (58,604) 
          Monthly   
CMBX NA BB.7 Index  (142,886)  741,000  97,293  1/17/47  (500 bp) —  (46,313) 
          Monthly   

 

Premier Income Trust 99 

 



OTC CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION PURCHASED at 7/31/18 cont. 
  Upfront           
  premium      Termi-  Payments  Unrealized 
Swap counterparty/  received  Notional    nation  (paid)  appreciation/ 
Referenced debt*  (paid)**  amount  Value  date  by fund  (depreciation) 
Morgan Stanley & Co. International PLC cont.           
CMBX NA BB.7 Index  $(131,385)  $651,000  $85,476  1/17/47  (500 bp) —  $(46,542) 
          Monthly   
CMBX NA BB.7 Index  (57,259)  306,000  40,178  1/17/47  (500 bp) —  (17,377) 
          Monthly   
CMBX NA BB.9 Index  (15,720)  101,000  15,948  9/17/58  (500 bp) —  131 
          Monthly   
Upfront premium received   —      Unrealized appreciation  607,482 
Upfront premium (paid)  (4,642,579)      Unrealized (depreciation)  (893,555) 
Total  $(4,642,579)    Total  $(286,073) 

 

* 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.

CENTRALLY CLEARED CREDIT DEFAULT CONTRACTS OUTSTANDING — PROTECTION PURCHASED at 7/31/18 
  Upfront           
  premium      Termi-  Payments   
Referenced  received  Notional    nation  (paid)  Unrealized 
debt*  (paid)**  amount  Value  date  by fund  depreciation 
NA HY Series 30  $1,043,311  $16,720,000  $1,179,529  6/20/23  (500 bp) —  $(233,751) 
Index          Quarterly   
Total  $1,043,311          $(233,751) 

 

* 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.

100 Premier Income Trust 

 



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  $101,564  $32,537  $—­ 
Energy  230,999  15,752  35,566 
Technology  286,556  —­  —­ 
Utilities and power  —­  11,379  —­ 
Total common stocks  619,119  59,668  35,566 
Asset-backed securities  —­  748,825  —­ 
Convertible bonds and notes  —­  6,170,992  —­ 
Convertible preferred stocks  —­  37,644  —­ 
Corporate bonds and notes  —­  189,060,069  5 
Foreign government and agency bonds and notes  —­  53,988,683  —­ 
Mortgage-backed securities  —­  251,125,285  —­ 
Preferred stocks  432,161  —­  —­ 
Purchased options outstanding  —­  254,216  —­ 
Purchased swap options outstanding  —­  11,799,615  —­ 
Senior loans  —­  10,411,159  —­ 
U.S. government and agency mortgage obligations  —­  180,804,545  —­ 
Warrants  741  —­  —­ 
Short-term investments  59,517,800  30,559,847  —­ 
Totals by level  $60,569,821  $735,020,548  $35,571 
 
      Valuation inputs  
Other financial instruments:  Level 1  Level 2  Level 3 
Forward currency contracts  $—­  $632,175  $—­ 
Futures contracts  50,397  —­  —­ 
Written options outstanding  —­  (409,861)  —­ 
Written swap options outstanding  —­  (12,180,048)  —­ 
Forward premium swap option contracts  —­  554,278  —­ 
TBA sale commitments  —­  (84,215,860)  —­ 
Interest rate swap contracts  —­  2,143,914  —­ 
Total return swap contracts  —­  (423,152)  —­ 
Credit default contracts  —­  (11,771,455)  —­ 
Totals by level  $50,397  $(105,670,009)  $—­ 

 

* 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.

Premier Income Trust 101 

 



Statement of assets and liabilities 7/31/18

ASSETS   
Investment in securities, at value (Notes 1 and 9):   
Unaffiliated issuers (identified cost $739,601,047)  $737,162,140 
Affiliated issuers (identified cost $58,463,800) (Notes 1 and 5)  58,463,800 
Cash  504,320 
Foreign currency (cost $126,045) (Note 1)  127,254 
Dividends, interest and other receivables  7,156,594 
Receivable for investments sold  3,031,268 
Receivable for sales of delayed delivery securities (Note 1)  22,004,089 
Receivable for variation margin on futures contracts (Note 1)  19,511 
Receivable for variation margin on centrally cleared swap contracts (Note 1)  1,134,604 
Unrealized appreciation on forward premium swap option contracts (Note 1)  4,444,050 
Unrealized appreciation on forward currency contracts (Note 1)  2,208,013 
Unrealized appreciation on OTC swap contracts (Note 1)  2,710,629 
Premium paid on OTC swap contracts (Note 1)  4,642,579 
Prepaid assets  43,480 
Total assets  843,652,331 
 
LIABILITIES   
Payable for investments purchased  2,011,556 
Payable for purchases of delayed delivery securities (Note 1)  118,341,462 
Payable for compensation of Manager (Note 2)  1,124,137 
Payable for custodian fees (Note 2)  63,915 
Payable for investor servicing fees (Note 2)  74,833 
Payable for Trustee compensation and expenses (Note 2)  276,026 
Payable for administrative services (Note 2)  1,157 
Payable for variation margin on centrally cleared swap contracts (Note 1)  875,090 
Distributions payable to shareholders  2,773,068 
Unrealized depreciation on OTC swap contracts (Note 1)  1,705,874 
Premium received on OTC swap contracts (Note 1)  16,196,615 
Unrealized depreciation on forward currency contracts (Note 1)  1,575,838 
Unrealized depreciation on forward premium swap option contracts (Note 1)  3,889,772 
Written options outstanding, at value (premiums $13,397,439) (Note 1)  12,589,909 
TBA sale commitments, at value (proceeds receivable $84,293,945) (Note 1)  84,215,860 
Collateral on certain derivative contracts, at value (Notes 1 and 9)  1,528,036 
Other accrued expenses  267,381 
Total liabilities  247,510,529 
 
Net assets  $596,141,802 

 

(Continued on next page)

 

102 Premier Income Trust 

 



Statement of assets and liabilities cont.

REPRESENTED BY   
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)  $713,291,666 
Undistributed net investment income (Note 1)  9,486,864 
Accumulated net realized loss on investments and foreign currency transactions (Note 1)  (128,263,529) 
Net unrealized appreciation of investments and assets and liabilities in foreign currencies  1,626,801 
Total — Representing net assets applicable to capital shares outstanding  $596,141,802 
 
COMPUTATION OF NET ASSET VALUE   
Net asset value per share   
($596,141,802 divided by 106,664,383 shares)  $5.59 

 

The accompanying notes are an integral part of these financial statements.

 

Premier Income Trust 103 

 



Statement of operations Year ended 7/31/18

INVESTMENT INCOME   
Interest (net of foreign tax of $5,007) (including interest income of $632,227 from investments   
in affiliated issuers) (Note 5)  $38,556,989 
Dividends  31,043 
Total investment income  38,588,032 
 
EXPENSES   
Compensation of Manager (Note 2)  4,390,362 
Investor servicing fees (Note 2)  299,335 
Custodian fees (Note 2)  175,318 
Trustee compensation and expenses (Note 2)  22,068 
Administrative services (Note 2)  17,406 
Other  598,860 
Total expenses  5,503,349 
Expense reduction (Note 2)  (3,286) 
Net expenses  5,500,063 
 
Net investment income  33,087,969 
 
REALIZED AND UNREALIZED GAIN (LOSS)   
Net realized gain (loss) on:   
Securities from unaffiliated issuers (Notes 1 and 3)  (36,247,077) 
Foreign currency transactions (Note 1)  (44,826) 
Forward currency contracts (Note 1)  (4,770,629) 
Futures contracts (Note 1)  (614,738) 
Swap contracts (Note 1)  22,787,535 
Written options (Note 1)  28,196,804 
Net increase from payments by affiliates (Note 2)  22,014 
Total net realized gain  9,329,083 
Change in net unrealized appreciation (depreciation) on:   
Securities from unaffiliated issuers and TBA sale commitments  (5,662,012) 
Assets and liabilities in foreign currencies  (23,856) 
Forward currency contracts  344,576 
Futures contracts  13,814 
Swap contracts  3,359,682 
Written options  (4,508,587) 
Total change in net unrealized depreciation  (6,476,383) 
 
Net gain on investments  2,852,700 
 
Net increase in net assets resulting from operations  35,940,669 

 

The accompanying notes are an integral part of these financial statements.

 

104 Premier Income Trust 

 



Statement of changes in net assets

INCREASE (DECREASE) IN NET ASSETS  Year ended 7/31/18  Year ended 7/31/17 
Operations     
Net investment income  $33,087,969  $30,753,119 
Net realized gain (loss) on investments     
and foreign currency transactions  9,329,083  (225,054) 
Net unrealized appreciation (depreciation) of investments     
and assets and liabilities in foreign currencies  (6,476,383)  33,136,971 
Net increase in net assets resulting from operations  35,940,669  63,665,036 
Distributions to shareholders (Note 1):     
From ordinary income     
Net investment income  (33,366,624)  (33,651,799) 
Decrease from capital share transactions (Note 4)  (3,073,232)  (10,608,061) 
Total increase (decrease) in net assets  (499,187)  19,405,176 
 
NET ASSETS     
Beginning of year  596,640,989  577,235,813 
End of year (including undistributed net investment     
income of $9,486,864 and $11,565,277, respectively)  $596,141,802  $596,640,989 
 
NUMBER OF FUND SHARES     
Shares outstanding at beginning of year  107,254,321  109,420,660 
Shares repurchased (Note 4)  (589,938)  (2,166,339) 
Shares outstanding at end of year  106,664,383  107,254,321 

 

The accompanying notes are an integral part of these financial statements.

Premier Income Trust 105 

 



Financial highlights (For a common share outstanding throughout the period)

PER-SHARE OPERATING PERFORMANCE           
      Year ended      
  7/31/18  7/31/17  7/31/16  7/31/15  7/31/14 
Net asset value, beginning of period  $5.56  $5.28  $5.72  $6.20  $5.96 
Investment operations:           
Net investment incomea  .31  .28  .31  .28  .32 
Net realized and unrealized           
gain (loss) on investments  .03  .30  (.48)  (.49)  .17 
Total from investment operations  .34  .58  (.17)  (.21)  .49 
Less distributions:           
From net investment income  (.31)  (.31)  (.31)  (.31)  (.31) 
From return of capital           
Total distributions  (.31)  (.31)  (.31)  (.31)  (.31) 
Increase from shares repurchased  b  .01  .04  .04  .06 
Net asset value, end of period  $5.59  $5.56  $5.28  $5.72  $6.20 
Market price, end of period  $5.25  $5.39  $4.72  $5.10  $5.47 
Total return at market price (%)c  3.26  21.30  (1.31)  (1.14)  10.29 
 
RATIOS AND SUPPLEMENTAL DATA           
Net assets, end of period           
(in thousands)  $596,142  $596,641  $577,236  $669,894  $775,817 
Ratio of expenses to average           
net assets (%)d  .92  .92  .91  .87  .90 
Ratio of net investment income           
to average net assets (%)  5.53  5.20  5.75  4.74  5.23 
Portfolio turnover (%)  785e  1,055e  808e  654e  189f 

 

a Per share net investment income has been determined on the basis of the weighted average number of shares outstanding during the period.

b Amount represents less than $0.01 per share.

c Total return assumes dividend reinvestment.

d Includes amounts paid through expense offset arrangements, if any (Note 2).

e Portfolio turnover includes TBA purchase and sale commitments.

f 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% 

 

The accompanying notes are an integral part of these financial statements.

 

106 Premier Income Trust 

 



Notes to financial statements 7/31/18

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, 2017 through July 31, 2018.

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 Agreement and 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

Premier Income Trust 107 

 



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

108 Premier Income Trust 

 



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 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 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 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

Premier Income Trust 109 

 



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.

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 and/or centrally cleared 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 and/or centrally cleared total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market maker. Any change is recorded as an unrealized gain or loss on OTC total return swaps. Daily fluctuations in the value of centrally cleared total return 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 received or made are recorded as realized gains or losses. Certain OTC and/or centrally cleared 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 or central clearing risk is the fair value of the contract. This risk may be mitigated for OTC total return swap contracts by having a master netting arrangement between the fund and the counterparty and for centrally cleared total return swap contracts through the daily exchange of variation margin. There is minimal counterparty risk with respect to centrally cleared total return 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/or centrally cleared total return swap contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio.

110 Premier Income Trust 

 



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 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.

Premier Income Trust 111 

 



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 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 $383,053 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 $12,003,524 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund at period end for these agreements totaled $11,714,632 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.

112 Premier Income Trust 

 



Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred for an unlimited period and the carry forwards will retain their character as either short-term or long-term capital losses. At July 31, 2018, the fund had the following capital loss carryovers available, to the extent allowed by the Code, to offset future net capital gain, if any:

  Loss carryover   
Short-term  Long-term  Total 
$73,628,669  $31,787,106  $105,415,775 

 

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. These differences include temporary and/or permanent differences from foreign currency gains and losses, from the expiration of a capital loss carryover, from dividends payable, from income on swap contracts, from interest-only securities and from real estate mortgage investment conduits. 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. At the close of the reporting period, the fund reclassified $1,799,758 to decrease undistributed net investment income, $86,518,726 to decrease paid-in capital and $88,318,484 to decrease accumulated net realized loss.

Tax cost of investments includes adjustments to net unrealized appreciation (depreciation) which may not necessarily be final tax cost basis adjustments, but closely approximate the tax basis unrealized gains and losses that may be realized and distributed to shareholders. The tax basis components of distributable earnings and the federal tax cost as of the close of the reporting period were as follows:

Unrealized appreciation  $30,952,279 
Unrealized depreciation  (55,652,130) 
Net unrealized depreciation  (24,699,851) 
Undistributed ordinary income  16,253,279 
Capital loss carryforward  (105,415,775) 
Cost for federal income tax purposes  $714,660,484 

 

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:

  of the first $500 million of average    of the next $5 billion of average 
0.750%  net assets,  0.480%  net assets, 
  of the next $500 million of average    of the next $5 billion of average 
0.650%  net assets,  0.470%  net assets, 
  of the next $500 million of average    of the next $5 billion of average 
0.600%  net assets,  0.460%  net assets, 
  of the next $5 billion of average    of the next $5 billion of average 
0.550%  net assets,  0.450%  net assets, 
  of the next $5 billion of average    of the next $5 billion of average 
0.525%  net assets,  0.440%  net assets, 
  of the next $5 billion of average    of the next $8.5 billion of average net 
0.505%  net assets,  0.430%  assets and 
  of the next $5 billion of average  0.420%  of any excess thereafter. 
0.490%  net assets,     

 

For the reporting period, the management fee represented an effective rate (excluding the impact from any expense waivers in effect) of 0.733% of the fund’s average net assets.

 

Premier Income Trust 113 

 



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.

Putnam Management voluntarily reimbursed the fund $22,014 for a trading error which occurred during the reporting period. The effect of the loss incurred and the reimbursement by Putnam Management of such amounts had no material impact on total return.

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 $3,286 under the expense offset arrangements.

Each Independent Trustee of the fund receives an annual Trustee fee, of which $437, 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)  $4,924,185,841  $4,928,166,424 
U.S. government securities (Long-term)     
Total  $4,924,185,841  $4,928,166,424 

 

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.

 

114 Premier Income Trust 

 



Note 4: Shares repurchased

In September 2017, 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, 2018 (based on shares outstanding as of October 9, 2017). 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 9, 2017 (based on shares outstanding as of October 7, 2016). 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 589,938 common shares for an aggregate purchase price of $3,073,232, which reflects a weighted-average discount from net asset value per share of 7.41%. The weighted-average discount reflects the payment of commissions by the fund to execute repurchase trades.

For the previous fiscal year, the fund repurchased 2,166,339 common shares for an aggregate purchase price of $10,608,061, which reflected a weighted-average discount from net asset value per share of 9.82%. The weighted-average discount reflected the payment of commissions by the fund to execute repurchase trades.

At the close of the reporting period, Putnam Investments, LLC owned approximately 3,070 shares of the fund (less than 0.01% of the fund’s shares outstanding), valued at $17,161 based on net asset value.

Note 5: Affiliated transactions

Transactions during the reporting period with any company which is under common ownership or control were as follows:

          Shares 
          outstanding 
          and fair 
  Fair value as  Purchase  Sale  Investment  value as 
Name of affiliate  of 7/31/17  cost  proceeds  income  of 7/31/18 
Short-term investments           
Putnam Short Term           
Investment Fund*  $23,582,059  $239,635,584  $204,753,843  $632,227  $58,463,800 
Total Short-term           
investments  $23,582,059  $239,635,584  $204,753,843  $632,227  $58,463,800 

 

* Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.

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 115 

 



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)  $290,400,000 
Purchased currency options (contract amount)  $36,700,000 
Purchased swap option contracts (contract amount)  $3,556,800,000 
Written TBA commitment option contracts (contract amount)  $451,200,000 
Written currency options (contract amount)  $32,200,000 
Written swap option contracts (contract amount)  $2,979,200,000 
Futures contracts (number of contracts)  200 
Forward currency contracts (contract amount)  $594,900,000 
OTC interest rate swap contracts (notional)  $1,500,000 
Centrally cleared interest rate swap contracts (notional)  $3,551,800,000 
OTC total return swap contracts (notional)  $77,600,000 
Centrally cleared total return swap contracts (notional)  $185,600,000 
OTC credit default contracts (notional)  $156,200,000 
Centrally cleared credit default contracts (notional)  $22,400,000 
Warrants (number of warrants)  7,000 

 

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 
      Payables, Net assets —   
Credit contracts  Receivables  $4,356,506  Unrealized depreciation  $16,127,961* 
Foreign exchange  Investments,       
contracts  Receivables  2,208,092  Payables  1,575,838 
Equity contracts  Investments  741  Payables   
  Investments,       
  Receivables, Net       
  assets — Unrealized    Payables, Net assets —   
Interest rate contracts  appreciation  28,218,477*  Unrealized depreciation  26,429,197* 
Total    $34,783,816    $44,132,996 

 

* Includes cumulative appreciation/depreciation of futures contracts and/or 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.

 

116 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  $—  $—  $—  $1,422,861  $1,422,861 
Foreign exchange contracts  (80,686)    (4,770,629)    $(4,851,315) 
Interest rate contracts  (4,085,739)  (614,738)    21,364,674  $16,664,197 
Total  $(4,166,425)  $(614,738)  $(4,770,629)  $22,787,535  $13,235,743 

 

Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss) 
on investments             
Derivatives not             
accounted for as             
hedging        Forward     
instruments under        currency     
ASC 815  Warrants  Options  Futures  contracts  Swaps  Total 
Credit contracts  $—  $—  $—  $—  $1,340,673  $1,340,673 
Foreign exchange             
contracts    (22,348)    344,576    $322,228 
Equity contracts  (3,971)          $(3,971) 
Interest rate             
contracts    (5,608,348)  13,814    2,019,009  $(3,575,525) 
Total  $(3,971)  $(5,630,696)  $13,814  $344,576  $3,359,682  $(1,916,595) 

 

Premier Income Trust 117 

 



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. Citigroup
Global
Markets, Inc.
Credit Suisse International Credit Suisse Securities (USA), LLC (clearing
broker)
Deutsche
Bank AG
Goldman
Sachs
International
HSBC Bank USA, National Association JPMorgan
Chase Bank N.A.
JPMorgan
Securities LLC
Merrill Lynch International Merrill Lynch, Pierce, Fenner & Smith, Inc. Morgan
Stanley & Co. International
PLC
NatWest
Markets PLC
State Street Bank and
Trust Co.
UBS AG WestPac
Banking Corp.
Total
Assets:                                         
OTC Interest                                         
rate swap                                         
contracts*#  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $— 
Centrally cleared                                         
interest rate                                         
swap contracts§      1,101,585        16,895                          1,118,480 
OTC Total                                         
return swap                                         
contracts*#    25,772        10,418    1,317  59,894    12,036  262                109,699 
Centrally cleared                                         
total return                                         
swap contracts§      16,124                                  16,124 
OTC Credit                                         
default                                         
contracts —                                         
protection                                         
sold*#                                         
OTC Credit                                         
default                                         
contracts —                                         
protection                                         
purchased*#          380,489  1,030,192      553,520      1,589,742  435,657    366,906          4,356,506 
Centrally cleared                                         
credit default                                         
contracts§                                         
Futures                                         
contracts§                            19,511            19,511 
Forward                                         
currency                                         
contracts#  258,303  141,461    177,907    218,263      414,350  256,238  78,689          111,097  246,405  175,337  129,963  2,208,013 
Forward                                         
premium                                         
swap option                                         
contracts#  1,573,747  308,982    720,993          546,602    1,143,178        150,548          4,444,050 
Purchased swap                                         
options**#  2,187,920  546,643    762,306    410,797      790,998    4,965,269        2,135,682          11,799,615 
Purchased                                         
options**#                    79  254,137                  254,216 
Total Assets  $4,019,970  $1,022,858  $1,117,709  $1,661,206  $380,489  $1,669,670  $16,895  $1,317  $2,365,364  $256,317  $6,453,309  $1,590,004  $435,657  $19,511  $2,653,136  $111,097  $246,405  $175,337  $129,963  $24,326,214 

 

118 Premier Income Trust  Premier Income Trust 119 

 



  Bank of America N.A. Barclays Bank PLC Barclays
Capital, Inc. (clearing
broker)
Citibank, N.A. Citigroup
Global
Markets, Inc.
Credit Suisse International Credit Suisse Securities (USA), LLC (clearing
broker)
Deutsche
Bank AG
Goldman
Sachs
International
HSBC Bank USA, National Association JPMorgan
Chase Bank N.A.
JPMorgan
Securities LLC
Merrill Lynch International Merrill Lynch, Pierce, Fenner & Smith, Inc. Morgan
Stanley & Co. International
PLC
NatWest
Markets PLC
State Street Bank and
Trust Co.
UBS AG WestPac
Banking Corp.
Total
Liabilities:                                         
OTC Interest                                         
rate swap                                         
contracts*#  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $10,108  $—  $—  $—  $—  $—  $—  $—  $—  $10,108 
Centrally cleared                                         
interest rate                                         
swap contracts§      827,037        16,635                          843,672 
OTC Total                                         
return swap                                         
contracts*#    48,276    3,003    17,914      38,420    9,108  37,758                154,479 
Centrally cleared                                         
total return                                         
swap contracts§      8,476                                  8,476 
OTC Credit                                         
default                                         
contracts —                                         
protection                                         
sold*#  196,433        919,756  3,798,633      2,576,363      5,098,693  272,673    1,988,348          14,850,899 
OTC Credit                                         
default                                         
contracts —                                         
protection                                         
purchased*#                                         
Centrally cleared                                         
credit default                                         
contracts§      22,942                                  22,942 
Futures                                         
contracts§                                         
Forward                                         
currency                                         
contracts#  101,896  162,551    39,933    43,843      490,211  267,661  169,565          93,087  142,755  51,640  12,696  1,575,838 
Forward                                         
premium                                         
swap option                                         
contracts#  1,287,680  352,914    671,904          569,912    858,610        148,752          3,889,772 
Written swap                                         
options#  1,965,339  857,310    1,206,873    389,816      2,233,468    3,886,986        1,640,256          12,180,048 
Written options#                      409,861                  409,861 
Total Liabilities  $3,551,348  $1,421,051  $858,455  $1,921,713  $919,756  $4,250,206  $16,635  $—  $5,908,374  $267,661  $5,344,238  $5,136,451  $272,673  $—  $3,777,356  $93,087  $142,755  $51,640  $12,696  $33,946,095 
Total Financial                                         
and Derivative                                         
Net Assets  $468,622  $(398,193)  $259,254  $(260,507)  $(539,267)  $(2,580,536)  $260  $1,317  $(3,543,010)  $(11,344)  $1,109,071  $(3,546,447)  $162,984  $19,511  $(1,124,220)  $18,010  $103,650  $123,697  $117,267  $(9,619,881) 
Total collateral                                         
received                                         
(pledged)†##  $468,622  $(390,214)  $—  $(214,535)  $(440,045)  $(2,580,536)  $—  $—  $(3,432,537)  $—  $1,054,000  $(3,507,976)  $162,984  $—  $(1,124,220)  $—  $—  $90,463  $—   
Net amount  $—  $(7,979)  $259,254  $(45,972)  $(99,222)  $—  $260  $1,317  $(110,473)  $(11,344)  $55,071  $(38,471)  $—  $19,511  $—  $18,010  $103,650  $33,234  $117,267   

 

120 Premier Income Trust  Premier Income Trust 121 

 



  Bank of America N.A. Barclays Bank PLC Barclays
Capital, Inc. (clearing
broker)
Citibank, N.A. Citigroup
Global
Markets, Inc.
Credit Suisse International Credit Suisse Securities (USA), LLC (clearing
broker)
Deutsche
Bank AG
Goldman
Sachs
International
HSBC Bank USA, National Association JPMorgan
Chase Bank N.A.
JPMorgan
Securities LLC
Merrill Lynch International Merrill Lynch, Pierce, Fenner & Smith, Inc. Morgan
Stanley & Co. International
PLC
NatWest
Markets PLC
State Street Bank and Trust Co. UBS AG WestPac
Banking Corp.
Total
Controlled                                         
collateral                                         
received                                         
(including TBA                                         
commitments)**  $474,036  $—  $—  $—  $—  $—  $—  $—  $—  $—  $1,054,000  $—  $—  $—  $—  $—  $—  $—  $—  $1,528,036 
Uncontrolled                                         
collateral                                         
received  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $—  $292,590  $—  $—  $—  $—  $90,463  $—  $383,053 
Collateral                                         
(pledged)                                         
(including TBA                                         
commitments)**  $—  $(390,214)  $—  $(214,535)  $(440,045)  $(2,588,301)  $—  $—  $(3,432,537)  $—  $—  $(3,507,976)  $—  $—  $(1,141,024)  $—  $—  $—  $—  $(11,714,632) 

 

* 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. Collateral pledged for initial margin on futures contracts and centrally cleared swap contracts, which is not included in the table above, amounted to $520,188 and $11,712,338, respectively.

Note 10: New accounting pronouncements

In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017–08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310–20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities held at a premium, to be amortized to the earliest call date. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management is currently evaluating the impact, if any, of applying this provision.

122 Premier Income Trust  Premier Income Trust 123 

 



Federal tax information (Unaudited)

For the reporting period, pursuant to §871(k) of the Internal Revenue Code, the fund hereby designates $25,134,289 of distributions paid as qualifying to be taxed as interest-related dividends, and no monies to be taxed as short-term capital gain dividends for nonresident alien shareholders.

The Form 1099 that will be mailed to you in January 2019 will show the tax status of all distributions paid to your account in calendar 2018.

124 Premier Income Trust 

 



Shareholder meeting results (Unaudited)

April 27, 2018 annual meeting

At the meeting, a proposal to fix the number of Trustees at 12 was approved as follows:

Votes for  Votes against  Abstentions 
90,037,021  1,948,373  1,351,293 

 

At the meeting, each of the nominees for Trustees was elected as follows:

 

  Votes for  Votes withheld 
Liaquat Ahamed  90,313,230  3,023,463 
Ravi Akhoury  90,082,871  3,253,821 
Barbara M. Baumann  90,272,770  3,063,922 
Jameson A. Baxter  89,828,227  3,508,465 
Katinka Domotorffy  90,348,049  2,988,643 
Catherine Bond Hill  90,153,606  3,183,087 
Paul L. Joskow  89,859,264  3,477,428 
Kenneth R. Leibler  90,052,741  3,283,952 
Robert E. Patterson  89,923,248  3,413,445 
George Putnam, III  90,067,397  3,269,296 
Robert L. Reynolds  90,365,913  2,970,780 
Manoj Singh  90,037,087  3,299,605 

 

All tabulations are rounded to the nearest whole number.

 

Premier Income Trust 125 

 




126 Premier Income Trust 

 



* Mr. Reynolds is an “interested person” (as defined in the Investment Company Act of 1940) of the fund and Putnam Investments. He is President and Chief Executive Officer of Putnam Investments, as well as the President of your fund and each of the other Putnam funds.

The address of each Trustee is One Post Office Square, Boston, MA 02109.

As of July 31, 2018, there were 101 Putnam funds. All Trustees serve as Trustees of all Putnam funds.

Each Trustee serves for an indefinite term, until his or her resignation, retirement at age 75, removal, or death.

Premier Income Trust 127 

 



Officers

In addition to Robert L. Reynolds, the other officers of the fund are shown below:

Jonathan S. Horwitz (Born 1955)  Susan G. Malloy (Born 1957) 
Executive Vice President, Principal Executive Officer,  Vice President and Assistant Treasurer 
and Compliance Liaison  Since 2007 
Since 2004  Head of Accounting, Middle Office, & Control Services, 
  Putnam Investments and Putnam Management 
Robert T. Burns (Born 1961) 
Vice President and Chief Legal Officer  Mark C. Trenchard (Born 1962) 
Since 2011  Vice President and BSA Compliance Officer 
General Counsel, Putnam Investments,  Since 2002 
Putnam Management, and Putnam Retail Management  Director of Operational Compliance, Putnam 
  Investments and Putnam Retail Management 
James F. Clark (Born 1974) 
Vice President and Chief Compliance Officer  Nancy E. Florek (Born 1957) 
Since 2016  Vice President, Director of Proxy Voting and Corporate 
Chief Compliance Officer, Putnam Investments  Governance, Assistant Clerk, and Assistant Treasurer 
and Putnam Management  Since 2000 
 
Michael J. Higgins (Born 1976)  Denere P. Poulack (Born 1968) 
Vice President, Treasurer, and Clerk  Assistant Vice President, Assistant Clerk, 
Since 2010  and Assistant Treasurer 
  Since 2004 
Janet C. Smith (Born 1965)   
Vice President, Principal Financial Officer, Principal   
Accounting Officer, and Assistant Treasurer   
Since 2007   
Head of Fund Administration Services,   
Putnam Investments and Putnam Management   

 

The principal occupations of the officers for the past five years have been with the employers as shown above, although in some cases they have held different positions with such employers. The address of each officer is One Post Office Square, Boston, MA 02109.

 

128 Premier Income Trust 

 



Putnam family of funds

The following is a list of Putnam’s open-end mutual funds offered to the public. Investors should carefully consider the investment objective, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, contact your financial advisor or call Putnam Investor Services at 1-800-225-1581. Please read the prospectus carefully before investing.

Blend  Value 
Capital Spectrum Fund  Convertible Securities Fund 
Emerging Markets Equity Fund  Equity Income Fund 
Equity Spectrum Fund  International Value Fund 
Europe Equity Fund  Small Cap Value Fund 
Global Equity Fund 
International Capital Opportunities Fund  Income 
International Equity Fund  Diversified Income Trust 
Multi-Cap Core Fund  Emerging Markets Income Fund 
Research Fund  Floating Rate Income Fund 
Global Income Trust 
Global Sector  Government Money Market Fund* 
Global Consumer Fund  High Yield Fund 
Global Financials Fund  Income Fund 
Global Health Care Fund  Money Market Fund 
Global Industrials Fund  Mortgage Securities Fund 
Global Natural Resources Fund  Short Duration Bond Fund 
Global Sector Fund  Short Duration Income Fund 
Global Technology Fund 
Global Telecommunications Fund  Tax-free Income 
Global Utilities Fund  AMT-Free Municipal Fund 
Intermediate-Term Municipal Income Fund 
Growth  Short-Term Municipal Income Fund 
Growth Opportunities Fund  Tax Exempt Income Fund 
International Growth Fund  Tax-Free High Yield Fund 
Small Cap Growth Fund   
Sustainable Future Fund  State tax-free income funds: 
Sustainable Leaders Fund  California, Massachusetts, Minnesota, 
New Jersey, New York, Ohio, and Pennsylvania. 

 

Premier Income Trust 129 

 



Absolute Return  Asset Allocation 
Fixed Income Absolute Return Fund  Dynamic Risk Allocation Fund 
Multi-Asset Absolute Return Fund  George Putnam Balanced Fund 
 
Putnam PanAgora**  Dynamic Asset Allocation Balanced Fund 
Putnam PanAgora Managed Futures Strategy  Dynamic Asset Allocation Conservative Fund 
Putnam PanAgora Market Neutral Fund  Dynamic Asset Allocation Growth Fund 
Putnam PanAgora Risk Parity Fund   
Retirement Income Fund Lifestyle 1 
 
  RetirementReady® 2060 Fund 
  RetirementReady® 2055 Fund 
  RetirementReady® 2050 Fund 
  RetirementReady® 2045 Fund 
  RetirementReady® 2040 Fund 
  RetirementReady® 2035 Fund 
  RetirementReady® 2030 Fund 
  RetirementReady® 2025 Fund 
  RetirementReady® 2020 Fund 

 

* You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Not available in all states.

** Sub-advised by PanAgora Asset Management.

Check your account balances and the most recent month-end performance in the Individual Investors section at putnam.com.

130 Premier Income Trust 

 



Fund information

Founded over 80 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  Michael J. Higgins 
Putnam Investment  Kenneth R. Leibler, Chair  Vice President, Treasurer, 
Management, LLC  Liaquat Ahamed  and Clerk 
One Post Office Square  Ravi Akhoury   
Boston, MA 02109  Barbara M. Baumann  Janet C. Smith 
  Katinka Domotorffy  Vice President, 
Investment Sub-Advisor  Catharine Bond Hill  Principal Financial Officer, 
Putnam Investments Limited  Paul L. Joskow  Principal Accounting Officer, 
16 St James’s Street  Robert E. Patterson  and Assistant Treasurer 
London, England SW1A 1ER  George Putnam, III 
  Robert L. Reynolds  Susan G. Malloy 
Marketing Services  Manoj P. Singh  Vice President and 
Putnam Retail Management  Assistant Treasurer 
One Post Office Square  Officers   
Boston, MA 02109  Robert L. Reynolds  Mark C. Trenchard 
  President  Vice President and 
Custodian    BSA Compliance Officer 
State Street Bank  Jonathan S. Horwitz   
and Trust Company  Executive Vice President,  Nancy E. Florek 
  Principal Executive Officer,  Vice President, Director of 
Independent Registered Public  and Compliance Liaison  Proxy Voting and Corporate 
Accounting Firm    Governance, Assistant Clerk, 
KPMG LLP  Robert T. Burns  and Assistant Treasurer 
  Vice President and 
  Chief Legal Officer  Denere P. Poulack 
    Assistant Vice President, Assistant 
  James F. Clark  Clerk, and Assistant Treasurer 
  Vice President and   
  Chief Compliance Officer   

 

Premier Income Trust 131 

 



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.

132 Premier Income Trust 

 






Item 2. Code of Ethics:
(a) The Fund's principal executive, financial and accounting officers are employees of Putnam Investment Management, LLC, the Fund's investment manager. As such they are subject to a comprehensive Code of Ethics adopted and administered by Putnam Investments which is designed to protect the interests of the firm and its clients. The Fund has adopted a Code of Ethics which incorporates the Code of Ethics of Putnam Investments with respect to all of its officers and Trustees who are employees of Putnam Investment Management, LLC. For this reason, the Fund has not adopted a separate code of ethics governing its principal executive, financial and accounting officers.

Item 3. Audit Committee Financial Expert:
The Funds' Audit, Compliance and Distributions Committee is comprised solely of Trustees who are “independent” (as such term has been defined by the Securities and Exchange Commission (“SEC”) in regulations implementing Section 407 of the Sarbanes-Oxley Act (the “Regulations”)). The Trustees believe that each of the members of the Audit, Compliance and Distributions Committee also possess a combination of knowledge and experience with respect to financial accounting matters, as well as other attributes, that qualify them for service on the Committee. In addition, the Trustees have determined that each of Mr. Patterson, Ms. Baumann and Mr. Singh qualifies as an “audit committee financial expert” (as such term has been defined by the Regulations) based on their review of his or her pertinent experience and education. The SEC has stated, and the funds' amended and restated agreement and Declaration of Trust provides, that the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the Audit, Compliance and Distribution Committee and the Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services:
The following table presents fees billed in each of the last two fiscal years for services rendered to the fund by the fund's independent auditor:


Fiscal year ended Audit Fees Audit-Related Fees Tax Fees All Other Fees

July 31, 2018 $193,330 $ — $7,405 $ —
July 31, 2017 $182,621 $ — $7,188 $ —

For the fiscal years ended July 31, 2018 and July 31, 2017, the fund's independent auditor billed aggregate non-audit fees in the amounts of $7,405 and $7,188 respectively, to the fund, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the fund.

Audit Fees represent fees billed for the fund's last two fiscal years relating to the audit and review of the financial statements included in annual reports and registration statements, and other services that are normally provided in connection with statutory and regulatory filings or engagements.

Audit-Related Fees represent fees billed in the fund's last two fiscal years for services traditionally performed by the fund's auditor, including accounting consultation for proposed transactions or concerning financial accounting and reporting standards and other audit or attest services not required by statute or regulation.

Tax Fees represent fees billed in the fund's last two fiscal years for tax compliance, tax planning and tax advice services. Tax planning and tax advice services include assistance with tax audits, employee benefit plans and requests for rulings or technical advice from taxing authorities.

Pre-Approval Policies of the Audit, Compliance and Distributions Committee. The Audit, Compliance and Distributions Committee of the Putnam funds has determined that, as a matter of policy, all work performed for the funds by the funds' independent auditors will be pre-approved by the Committee itself and thus will generally not be subject to pre-approval procedures.

The Audit, Compliance and Distributions Committee also has adopted a policy to pre-approve the engagement by Putnam Management and certain of its affiliates of the funds' independent auditors, even in circumstances where pre-approval is not required by applicable law. Any such requests by Putnam Management or certain of its affiliates are typically submitted in writing to the Committee and explain, among other things, the nature of the proposed engagement, the estimated fees, and why this work should be performed by that particular audit firm as opposed to another one. In reviewing such requests, the Committee considers, among other things, whether the provision of such services by the audit firm are compatible with the independence of the audit firm.

The following table presents fees billed by the fund's independent auditor for services required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.


Fiscal year ended Audit-Related Fees Tax Fees All Other Fees Total Non-Audit Fees

July 31, 2018 $ — $ — $ — $ —
July 31, 2017 $ — $ — $ — $ —

Item 5. Audit Committee of Listed Registrants
(a) The fund has a separately-designated Audit, Compliance and Distributions Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended. The Audit, Compliance and Distribution Committee of the fund's Board of Trustees is composed of the following persons:

Ravi Akhoury
Robert E. Patterson
Barbara M. Baumann
Katinka Domotorffy
Manoj P. Singh
(b) 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:

Proxy voting guidelines of The Putnam Funds

The proxy voting guidelines below summarize the funds' positions on various issues of concern to investors, and give a general indication of how fund portfolio securities will be voted on proposals dealing with particular issues. The funds' proxy voting service is instructed to vote all proxies relating to fund portfolio securities in accordance with these guidelines, except as otherwise instructed by the Director of Proxy Voting and Corporate Governance (“Proxy Voting Director”), a member of the Office of the Trustees who is appointed to assist in the coordination and voting of the funds' proxies.

The proxy voting guidelines are just that — guidelines. The guidelines are not exhaustive and do not address all potential voting issues. Because the circumstances of individual companies are so varied, there may be instances when the funds do not vote in strict adherence to these guidelines. For example, the proxy voting service is expected to bring to the Proxy Voting Director's attention proxy questions that are company-specific and of a non-routine nature and that, even if covered by the guidelines, may be more appropriately handled on a case-by-case basis. In addition, in interpreting the funds' proxy voting guidelines, the Trustees of The Putnam Funds are mindful of emerging best practices in the areas of corporate governance, environmental stewardship and sustainability, and social responsibility. Recognizing that these matters may, in some instances, bear on investment performance, they may from time to time be considerations in the funds' voting decisions.

Similarly, Putnam Management's investment professionals, as part of their ongoing review and analysis of all fund portfolio holdings, are responsible for monitoring significant corporate developments, including proxy proposals submitted to shareholders, and notifying the Proxy Voting Director of circumstances where the interests of fund shareholders may warrant a vote contrary to these guidelines. In such instances, the investment professionals submit a written recommendation to the Proxy Voting Director and the person or persons designated by Putnam Management's Legal and Compliance Department to assist in processing referral items under the funds' “Proxy Voting Procedures.” The Proxy Voting Director, in consultation with a senior member of the Office of the Trustees and/or the Chair of the Board Policy and Nominating Committee, as appropriate, will determine how the funds' proxies will be voted. When indicated, the Chair of the Board Policy and Nominating Committee may consult with other members of the Committee or the full Board of Trustees.

The following guidelines are grouped according to the types of proposals generally presented to shareholders. Part I deals with proposals submitted by management and approved and recommended by a company's board of directors. Part II deals with proposals submitted by shareholders. Part III addresses unique considerations pertaining to non-U.S. issuers.

The Trustees of The Putnam Funds are committed to promoting strong corporate governance practices and encouraging corporate actions that enhance shareholder value through the judicious voting of the funds' proxies. It is the funds' policy to vote their proxies at all shareholder meetings where it is practicable to do so. In furtherance of this, the funds' have requested that their securities lending agent recall each domestic issuer's voting securities that are on loan, in advance of the record date for the issuer's shareholder meetings, so that the funds may vote at the meetings.

The Putnam funds will disclose their proxy votes not later than August 31 of each year for the most recent 12-month period ended June 30, in accordance with the timetable established by SEC rules.

I.  BOARD-APPROVED PROPOSALS1
The vast majority of matters presented to shareholders for a vote involve proposals made by a company itself (sometimes referred to as “management proposals”), which have been approved and recommended by its board of directors. In view of the enhanced corporate governance practices currently being implemented in public companies and of the funds' intent to hold corporate boards accountable for their actions in promoting shareholder interests, the funds' proxies generally will be voted for the decisions reached by majority independent boards of directors, except as otherwise indicated in these guidelines. Accordingly, the funds' proxies will be voted for board-approved proposals, except as follows:

---------------------
1The guidelines in this section apply to proposals at U.S. companies. Please refer to Section III, Voting Shares of Non-U.S. Issuers, for additional guidelines applicable to proposals at non-U.S. companies.

Matters relating to the Board of Directors

Uncontested Election of Directors

The funds' proxies will be voted for the election of a company's nominees for the board of directors, except as follows:


The funds will withhold votes from the entire board of directors if

the board does not have a majority of independent directors,

the board has not established independent nominating, audit, and compensation committees,

the board has more than 19 members or fewer than five members, absent special circumstances,

the board has not acted to implement a policy requested in a shareholder proposal that received the support of a majority of the shares of the company cast at its previous two annual meetings, or

the board has adopted or renewed a shareholder rights plan (commonly referred to as a “poison pill”) without shareholder approval during the current or prior calendar year.

The funds will on a case-by-case basis withhold votes from the entire board of directors, or from particular directors as may be appropriate, if the board has approved compensation arrangements for one or more company executives that the funds determine are unreasonably excessive relative to the company's performance or has otherwise failed to observe good corporate governance practices.

The funds will withhold votes from any nominee for director:

who is considered an independent director by the company and who has received compensation within the last three years from the company other than for service as a director (e.g., investment banking, consulting, legal, or financial advisory fees),

who attends less than 75% of board and committee meetings without valid reasons for the absences (e.g., illness, personal emergency, etc.),

of a public company (Company A) who is employed as a senior executive of another company (Company B), if a director of Company B serves as a senior executive of Company A (commonly referred to as an “interlocking directorate”),

who serves on more than five unaffiliated public company boards (for the purpose of this guideline, boards of affiliated registered investment companies will count as one board),

who serves as an executive officer of any company (“home company”) while serving on more than two other public company boards (votes for the nominee withheld at each company where the funds are shareholders; in addition, if the funds are shareholders of the executive's home company, the funds will withhold votes from members of the home company's governance committee), or

who is a member of the governance or other responsible committee, if the company has adopted without shareholder approval a bylaw provision shifting legal fees and costs to unsuccessful plaintiffs in intra-corporate litigation.

Commentary:

Board independence: Unless otherwise indicated, for the purposes of determining whether a board has a majority of independent directors and independent nominating, audit, and compensation committees, an “independent director” is a director who (1) meets all requirements to serve as an independent director of a company under the NYSE Corporate Governance Rules (e.g., no material business relationships with the company and no present or recent employment relationship with the company including employment of an immediate family member as an executive officer), and (2) has not within the last three years accepted directly or indirectly any consulting, advisory, or other compensatory fee from the company other than in his or her capacity as a member of the board of directors or any board committee. The funds' Trustees believe that the recent (i.e., within the last three years) receipt of any amount of compensation for services other than service as a director raises significant independence issues.

Board size: The funds' Trustees believe that the size of the board of directors can have a direct impact on the ability of the board to govern effectively. Boards that have too many members can be unwieldy and ultimately inhibit their ability to oversee management performance. Boards that have too few members can stifle innovation and lead to excessive influence by management.

Time commitment: Being a director of a company requires a significant time commitment to adequately prepare for and attend the company's board and committee meetings. Directors must be able to commit the time and attention necessary to perform their fiduciary duties in proper fashion, particularly in times of crisis. The funds' Trustees are concerned about over-committed directors. In some cases, directors may serve on too many boards to make a meaningful contribution. This may be particularly true for senior executives of public companies (or other directors with substantially full-time employment) who serve on more than a few outside boards. Generally, the funds withhold support from directors serving on more than five unaffiliated public company boards, although an exception may be made in the case of a director who represents an investing firm with the sole purpose of managing a portfolio of investments that includes the company. The funds also withhold support from directors who serve as executive officers at a company and on the boards of more than two unaffiliated public companies (votes withheld at outside boards only). The funds may also withhold votes from such directors on a case-by-case basis where it appears that they may be unable to discharge their duties properly because of excessive commitments.

Interlocking directorships: The funds' Trustees believe that interlocking directorships are inconsistent with the degree of independence required for outside directors of public companies.

Corporate governance practices: Board independence depends not only on its members' individual relationships, but also on the board's overall attitude toward management and shareholders. Independent boards are committed to good corporate governance practices and, by providing objective independent judgment, enhancing shareholder value. The funds may withhold votes on a case-by-case basis from some or all directors who, through their lack of independence or otherwise, have failed to observe good corporate governance practices or, through specific corporate action, have demonstrated a disregard for the interests of shareholders. Such instances may include cases where a board of directors has approved compensation arrangements for one or more members of management that, in the judgment of the funds' Trustees, are excessive by reasonable corporate standards relative to the company's record of performance. It may also represent a disregard for the interests of shareholders if a board of directors fails to register an appropriate response when a director who fails to win the support of a majority of shareholders in an election (sometimes referred to as a “rejected director”) continues to serve on the board, or if a board of directors permits an executive to serve on an excessive number of public company boards. While the Trustees recognize that it may in some circumstances be appropriate for a rejected director to continue his or her service on the board, steps should be taken to address the concerns reflected by the shareholders' lack of support for the rejected director. Adopting a fee-shifting bylaw provision without shareholder approval, which may discourage legitimate shareholders lawsuits as well as frivolous ones, is another example of disregard for shareholder interests.

Contested Elections of Directors

The funds will vote on a case-by-case basis in contested elections of directors.

Classified Boards

The funds will vote against proposals to classify a board, absent special circumstances indicating that shareholder interests would be better served by this structure.

Commentary:  Under a typical classified board structure, the directors are divided into three classes, with each class serving a three-year term. The classified board structure results in directors serving staggered terms, with usually only a third of the directors up for re-election at any given annual meeting. The funds' Trustees generally believe that it is appropriate for directors to stand for election each year, but recognize that, in special circumstances, shareholder interests may be better served under a classified board structure.

Other Board-Related Proposals
The funds will generally vote for proposals that have been approved by a majority independent board, and on a case-by-case basis on proposals that have been approved by a board that fails to meet the guidelines' basic independence standards (i.e., majority of independent directors and independent nominating, audit, and compensation committees).

Executive Compensation

The funds generally favor compensation programs that relate executive compensation to a company's long-term performance. The funds will vote on a case-by-case basis on board-approved proposals relating to executive compensation, except as follows:


Except where the funds are otherwise withholding votes for the entire board of directors, the funds will vote for stock option and restricted stock plans that will result in an average annual dilution of 1.67% or less (based on the disclosed term of the plan and including all equity-based plans).

The funds will vote against stock option and restricted stock plans that will result in an average annual dilution of greater than 1.67% (based on the disclosed term of the plan and including all equity-based plans).

The funds will vote against any stock option or restricted stock plan where the company's actual grants of stock options and restricted stock under all equity-based compensation plans during the prior three (3) fiscal years have resulted in an average annual dilution of greater than 1.67%.

The funds will vote against stock option plans that permit the replacing or repricing of underwater options (and against any proposal to authorize a replacement or repricing of underwater options).

The funds will vote against stock option plans that permit issuance of options with an exercise price below the stock's current market price.

Except where the funds are otherwise withholding votes for the entire board of directors, the funds will vote for an employee stock purchase plan that has the following features: (1) the shares purchased under the plan are acquired for no less than 85% of their market value; (2) the offering period under the plan is 27 months or less; and (3) dilution is 10% or less.

The funds will vote for proposals to approve a company's executive compensation program (i.e., “say on pay” proposals in which the company's board proposes that shareholders indicate their support for the company's compensation philosophy, policies, and practices), except that the funds will vote against the proposal if the company is assigned to the lowest category, through independent third party benchmarking performed by the funds' proxy voting service, for the correlation of the company's executive compensation program with its performance.

The funds will vote for bonus plans under which payments are treated as performance-based compensation that is deductible under Section 162(m) of the Internal Revenue Code of 1986, as amended, except that the funds will vote on a case-by-case basis if any of the following circumstances exist:

         the amount per employee under the plan is unlimited, or

         the plan's performance criteria is undisclosed, or

         the company is assigned to the lowest category, through independent third party benchmarking performed
         by the funds' proxy voting service, for the correlation of the company's executive compensation program
         with its performance.

Commentary:  Companies should have compensation programs that are reasonable and that align shareholder and management interests over the longer term. Further, disclosure of compensation programs should provide absolute transparency to shareholders regarding the sources and amounts of, and the factors influencing, executive compensation. Appropriately designed equity-based compensation plans can be an effective way to align the interests of long-term shareholders with the interests of management. However, the funds may vote against these or other executive compensation proposals on a case-by-case basis where compensation is excessive by reasonable corporate standards, where a company fails to provide transparent disclosure of executive compensation, or, in some instances, where independent third-party benchmarking indicates that compensation is inadequately correlated with performance, relative to peer companies. (Examples of excessive executive compensation may include, but are not limited to, equity incentive plans that exceed the dilution criteria noted above, excessive perquisites, performance-based compensation programs that do not properly correlate reward and performance, “golden parachutes” or other severance arrangements that present conflicts between management's interests and the interests of shareholders, and “golden coffins” or unearned death benefits.) In voting on a proposal relating to executive compensation, the funds will consider whether the proposal has been approved by an independent compensation committee of the board.

Capitalization

Many proxy proposals involve changes in a company's capitalization, including the authorization of additional stock, the issuance of stock, the repurchase of outstanding stock, or the approval of a stock split. The management of a company's capital structure involves a number of important issues, including cash flow, financing needs, and market conditions that are unique to the circumstances of the company. As a result, the funds will vote on a case-by-case basis on board-approved proposals involving changes to a company's capitalization, except that where the funds are not otherwise withholding votes from the entire board of directors:


The funds will vote for proposals relating to the authorization and issuance of additional common stock (except where such proposals relate to a specific transaction).

The funds will vote for proposals to effect stock splits (excluding reverse stock splits).

The funds will vote for proposals authorizing share repurchase programs.

Commentary:  A company may decide to authorize additional shares of common stock for reasons relating to executive compensation or for routine business purposes. For the most part, these decisions are best left to the board of directors and senior management. The funds will vote on a case-by-case basis, however, on other proposals to change a company's capitalization, including the authorization of common stock with special voting rights, the authorization or issuance of common stock in connection with a specific transaction (e.g., an acquisition, merger or reorganization), or the authorization or issuance of preferred stock. Actions such as these involve a number of considerations that may affect a shareholder's investment and that warrant a case-by-case determination.

Acquisitions, Mergers, Reincorporations, Reorganizations and Other Transactions

Shareholders may be confronted with a number of different types of transactions, including acquisitions, mergers, reorganizations involving business combinations, liquidations, and the sale of all or substantially all of a company's assets, which may require their consent. Voting on such proposals involves considerations unique to each transaction. As a result, the funds will vote on a case-by-case basis on board-approved proposals to effect these types of transactions, except as follows:


The funds will vote for mergers and reorganizations involving business combinations designed solely to reincorporate a company in Delaware.

Commentary:  A company may reincorporate into another state through a merger or reorganization by setting up a “shell” company in a different state and then merging the company into the new company. While reincorporation into states with extensive and established corporate laws — notably Delaware — provides companies and shareholders with a more well-defined legal framework, shareholders must carefully consider the reasons for a reincorporation into another jurisdiction, including especially an offshore jurisdiction.

Anti-Takeover Measures

Some proxy proposals involve efforts by management to make it more difficult for an outside party to take control of the company without the approval of the company's board of directors. These include the adoption of a shareholder rights plan, requiring supermajority voting on particular issues, the adoption of fair price provisions, the issuance of blank check preferred stock, and the creation of a separate class of stock with disparate voting rights. Such proposals may adversely affect shareholder rights, lead to management entrenchment, or create conflicts of interest. As a result, the funds will vote against board-approved proposals to adopt such anti-takeover measures, except as follows:


The funds will vote on a case-by-case basis on proposals to ratify or approve shareholder rights plans; and

The funds will vote on a case-by-case basis on proposals to adopt fair price provisions.

Commentary:  The funds' Trustees recognize that poison pills and fair price provisions may enhance or protect shareholder value under certain circumstances. For instance, where a company has incurred significant operating losses, a shareholder rights plan may be appropriately tailored to protect shareholder value by preserving a company's net operating losses. Thus, the funds will consider proposals to approve such matters on a case-by-case basis.

Other Business Matters

Many proxies involve approval of routine business matters, such as changing a company's name, ratifying the appointment of auditors, and procedural matters relating to the shareholder meeting. For the most part, these routine matters do not materially affect shareholder interests and are best left to the board of directors and senior management of the company. The funds will vote for board-approved proposals approving such matters, except as follows:


The funds will vote on a case-by-case basis on proposals to amend a company's charter or bylaws (except for charter amendments necessary to effect stock splits, to change a company's name or to authorize additional shares of common stock).

The funds will vote against authorization to transact other unidentified, substantive business at the meeting.

The funds will vote on a case-by-case basis on proposals to ratify the selection of independent auditors if there is evidence that the audit firm's independence or the integrity of an audit is compromised.

The funds will vote on a case-by-case basis on other business matters where the funds are otherwise withholding votes for the entire board of directors.

Commentary:  Charter and bylaw amendments (for example, amendments implementing proxy access proposals) and the transaction of other unidentified, substantive business at a shareholder meeting may directly affect shareholder rights and have a significant impact on shareholder value. As a result, the funds do not view these items as routine business matters. Putnam Management's investment professionals and the funds' proxy voting service may also bring to the Proxy Voting Director's attention company-specific items that they believe to be non-routine and warranting special consideration. Under these circumstances, the funds will vote on a case-by-case basis.

The fund's proxy voting service may identify circumstances that call into question an audit firm's independence or the integrity of an audit. These circumstances may include recent material restatements of financials, unusual audit fees, egregious contractual relationships, and aggressive accounting policies. The funds will consider proposals to ratify the selection of auditors in these circumstances on a case-by-case basis. In all other cases, given the existence of rules that enhance the independence of audit committees and auditors by, for example, prohibiting auditors from performing a range of non-audit services for audit clients, the funds will vote for the ratification of independent auditors.

II.  SHAREHOLDER PROPOSALS

SEC regulations permit shareholders to submit proposals for inclusion in a company's proxy statement. These proposals generally seek to change some aspect of the company's corporate governance structure or to change some aspect of its business operations. The funds generally will vote in accordance with the recommendation of the company's board of directors on all shareholder proposals, except as follows:


The funds will vote on a case-by-case basis on shareholder proposals requiring that the chairman's position be filled by someone other than the chief executive officer.

The funds will vote for shareholder proposals asking that director nominees receive support from holders of a majority of votes cast or a majority of shares outstanding in order to be (re)elected.

The funds will vote for shareholder proposals to declassify a board, absent special circumstances which would indicate that shareholder interests are better served by a classified board structure.

The funds will vote for shareholder proposals to eliminate supermajority vote requirements in the company's charter documents.

The funds will vote for shareholder proposals to require shareholder approval of shareholder rights plans.

The funds will vote for shareholder proposals to amend a company's charter documents to permit shareholders to call special meetings, but only if both of the following conditions are met:

the proposed amendment limits the right to call special meetings to shareholders holding at least 15% of the company's outstanding shares, and

applicable state law does not otherwise provide shareholders with the right to call special meetings.

The funds will vote on a case-by-case basis on shareholder proposals relating to proxy access.

The funds will vote for shareholder proposals requiring companies to make cash payments under management severance agreements only if both of the following conditions are met:

the company undergoes a change in control, and

the change in control results in the termination of employment for the person receiving the severance payment.

The funds will vote for shareholder proposals requiring companies to accelerate vesting of equity awards under management severance agreements only if both of the following conditions are met:

the company undergoes a change in control, and

the change in control results in the termination of employment for the person receiving the severance payment.

The funds will vote on a case-by-case basis on shareholder proposals to limit a company's ability to make excise tax gross-up payments under management severance agreements.

The funds will vote on a case-by-case basis on shareholder proposals requesting that the board adopt a policy to recoup, in the event of a significant restatement of financial results or significant extraordinary write-off, to the fullest extent practicable, for the benefit of the company, all performance-based bonuses or awards that were paid to senior executives based on the company having met or exceeded specific performance targets to the extent that the specific performance targets were not, in fact, met.

The funds will vote for shareholder proposals calling for the company to obtain shareholder approval for any future golden coffins or unearned death benefits (payments or awards of unearned salary or bonus, accelerated vesting or the continuation of unvested equity awards, perquisites or other payments or awards in respect of an executive following his or her death), and for shareholder proposals calling for the company to cease providing golden coffins or unearned death benefits.

The funds will vote for shareholder proposals requiring a company to report on its executive retirement benefits (e.g., deferred compensation, split-dollar life insurance, SERPs and pension benefits).

The funds will vote for shareholder proposals requiring a company to disclose its relationships with executive compensation consultants (e.g., whether the company, the board or the compensation committee retained the consultant, the types of services provided by the consultant over the past five years, and a list of the consultant's clients on which any of the company's executives serve as a director).

The funds will vote for shareholder proposals that are consistent with the funds' proxy voting guidelines for board-approved proposals.

The funds will vote on a case-by-case basis on other shareholder proposals where the funds are otherwise withholding votes for the entire board of directors.

Commentary:  The funds' Trustees believe that effective corporate reforms should be promoted by holding boards of directors — and in particular their independent directors — accountable for their actions, rather than by imposing additional legal restrictions on board governance through piecemeal proposals. As stated above, the funds' Trustees believe that boards of directors and management are responsible for ensuring that their businesses are operating in accordance with high legal and ethical standards and should be held accountable for resulting corporate behavior. Accordingly, the funds will generally support the recommendations of boards that meet the basic independence and governance standards established in these guidelines. Where boards fail to meet these standards, the funds will generally evaluate shareholder proposals on a case-by-case basis. The funds will also consider proposals requiring that the chairman's position be filled by someone other than the company's chief executive officer on a case-by-case basis, recognizing that in some cases this separation may advance the company's corporate governance while in other cases it may be less necessary to the sound governance of the company. The funds will take into account the level of independent leadership on a company's board in evaluating these proposals.

However, the funds generally support shareholder proposals to implement majority voting for directors, observing that majority voting is an emerging standard intended to encourage directors to be attentive to shareholders' interests. The funds also generally support shareholder proposals to declassify a board, to eliminate supermajority vote requirements, or to require shareholder approval of shareholder rights plans. The funds' Trustees believe that these shareholder proposals further the goals of reducing management entrenchment and conflicts of interest, and aligning management's interests with shareholders' interests in evaluating proposed acquisitions of the company. The Trustees also believe that shareholder proposals to limit severance payments may further these goals in some instances. In general, the funds favor arrangements in which severance payments are made to an executive only when there is a change in control and the executive loses his or her job as a result. Arrangements in which an executive receives a payment upon a change of control even if the executive retains employment introduce potential conflicts of interest and may distract management focus from the long term success of the company.

In evaluating shareholder proposals that address severance payments, the funds distinguish between cash and equity payments. The funds generally do not favor cash payments to executives upon a change in control transaction if the executive retains employment. However, the funds recognize that accelerated vesting of equity incentives, even without termination of employment, may help to align management and shareholder interests in some instances, and will evaluate shareholder proposals addressing accelerated vesting of equity incentive payments on a case-by-case basis.

When severance payments exceed a certain amount based on the executive's previous compensation, the payments may be subject to an excise tax. Some compensation arrangements provide for full excise tax gross-ups, which means that the company pays the executive sufficient additional amounts to cover the cost of the excise tax. The funds are concerned that the benefits of providing full excise tax gross-ups to executives may be outweighed by the cost to the company of the gross-up payments. Accordingly, the funds will vote on a case-by-case basis on shareholder proposals to curtail excise tax gross-up payments. The funds generally favor arrangements in which severance payments do not trigger an excise tax or in which the company's obligations with respect to gross-up payments are limited in a reasonable manner.

The funds' Trustees believe that performance-based compensation can be an effective tool for aligning management and shareholder interests. However, to fulfill its purpose, performance compensation should only be paid to executives if the performance targets are actually met. A significant restatement of financial results or a significant extraordinary write-off may reveal that executives who were previously paid performance compensation did not actually deliver the required business performance to earn that compensation. In these circumstances, it may be appropriate for the company to recoup this performance compensation. The funds will consider on a case-by-case basis shareholder proposals requesting that the board adopt a policy to recoup, in the event of a significant restatement of financial results or significant extraordinary write-off, performance-based bonuses or awards paid to senior executives based on the company having met or exceeded specific performance targets to the extent that the specific performance targets were not, in fact, met. The funds do not believe that such a policy should necessarily disadvantage a company in recruiting executives, as executives should understand that they are only entitled to performance compensation based on the actual performance they deliver.

The funds' Trustees disfavor golden coffins or unearned death benefits, and the funds will generally support shareholder proposals to restrict or terminate these practices. The Trustees will also consider whether a company's overall compensation arrangements, taking all of the pertinent circumstances into account, constitute excessive compensation or otherwise reflect poorly on the corporate governance practices of the company. As the Trustees evaluate these matters, they will be mindful of evolving practices and legislation relevant to executive compensation and corporate governance.

The funds' Trustees also believe that shareholder proposals that are intended to increase transparency, particularly with respect to executive compensation, without establishing rigid restrictions upon a company's ability to attract and motivate talented executives, are generally beneficial to sound corporate governance without imposing undue burdens. The funds will generally support shareholder proposals calling for reasonable disclosure.

III.  VOTING SHARES OF NON-U.S. ISSUERS

Many of the Putnam funds invest on a global basis, and, as a result, they may hold, and have an opportunity to vote, shares in non-U.S. issuers — i.e., issuers that are incorporated under the laws of foreign jurisdictions and whose shares are not listed on a U.S. securities exchange or the NASDAQ stock market.

In many non-U.S. markets, shareholders who vote proxies of a non-U.S. issuer are not able to trade in that company's stock on or around the shareholder meeting date. This practice is known as “share blocking.” In countries where share blocking is practiced, the funds will vote proxies only with direction from Putnam Management's investment professionals.

In addition, some non-U.S. markets require that a company's shares be re-registered out of the name of the local custodian or nominee into the name of the shareholder for the shareholder to be able to vote at the meeting. This practice is known as “share re-registration.” As a result, shareholders, including the funds, are not able to trade in that company's stock until the shares are re-registered back in the name of the local custodian or nominee following the meeting. In countries where share re-registration is practiced, the funds will generally not vote proxies.

Protection for shareholders of non-U.S. issuers may vary significantly from jurisdiction to jurisdiction. Laws governing non-U.S. issuers may, in some cases, provide substantially less protection for shareholders than do U.S. laws. As a result, the guidelines applicable to U.S. issuers, which are premised on the existence of a sound corporate governance and disclosure framework, may not be appropriate under some circumstances for non-U.S. issuers. However, the funds will vote proxies of non-U.S. issuers in accordance with the guidelines applicable to U.S. issuers except as follows:

Uncontested Board Elections

China, India, Indonesia, Philippines, Taiwan and Thailand

The funds will withhold votes from the entire board of directors if

fewer than one-third of the directors are independent directors, or

the board has not established audit, compensation and nominating committees each composed of a majority of independent directors.

Commentary:  Whether a director is considered “independent” or not will be determined by reference to local corporate law or listing standards.

Europe ex-United Kingdom

The funds will withhold votes from the entire board of directors if

the board has not established audit and compensation committees each composed of a majority of independent, non-executive directors, or

the board has not established a nominating committee composed of a majority of independent directors.

Commentary:  An “independent director” under the European Commission's guidelines is one who is free of any business, family or other relationship, with the company, its controlling shareholder or the management of either, that creates a conflict of interest such as to impair his judgment. A “non-executive director” is one who is not engaged in the daily management of the company.

Germany

For companies subject to “co-determination,” the funds will vote for the election of nominees to the supervisory board, except that the funds will vote on a case-by-case basis for any nominee who is either an employee of the company or who is otherwise affiliated with the company (as determined by the funds' proxy voting service).

The funds will withhold votes for the election of a former member of the company's managerial board to chair of the supervisory board.

Commentary:  German corporate governance is characterized by a two-tier board system — a managerial board composed of the company's executive officers, and a supervisory board. The supervisory board appoints the members of the managerial board. Shareholders elect members of the supervisory board, except that in the case of companies with a large number of employees, company employees are allowed to elect some of the supervisory board members (one-half of supervisory board members are elected by company employees at companies with more than 2,000 employees; one-third of the supervisory board members are elected by company employees at companies with more than 500 employees but fewer than 2,000). This “co-determination” practice may increase the chances that the supervisory board of a large German company does not contain a majority of independent members. In this situation, under the Fund's proxy voting guidelines applicable to U.S. issuers, the funds would vote against all nominees. However, in the case of companies subject to “co-determination” and with the goal of supporting independent nominees, the Funds will vote for supervisory board members who are neither employees of the company nor otherwise affiliated with the company.

Consistent with the funds' belief that the interests of shareholders are best protected by boards with strong, independent leadership, the funds will withhold votes for the election of former chairs of the managerial board to chair of the supervisory board.

Hong Kong

The funds will withhold votes from the entire board of directors if

fewer than one-third of the directors are independent directors, or

the board has not established audit, compensation and nominating committees each with at least a majority of its members being independent directors, or

the chair of the audit, compensation or nominating committee is not an independent director.

Commentary. For purposes of these guidelines, an “independent director” is a director that has no material, financial or other current relationships with the company. In determining whether a director is independent, the funds will apply the standards included in the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited Section 3.13.

Italy

The funds will withhold votes from any director not identified in the proxy materials.

Commentary:  In Italy, companies have the right to nominate co-opted directors2 for election to the board at the next annual general meeting, but do not have to indicate, until the day of the annual meeting, whether or not they are nominating a co-opted director for election. When a company does not explicitly state in its proxy materials that co-opted directors are standing for election, shareholders will not know for sure who the board nominees are until the actual meeting occurs. The funds will withhold support from any such co-opted director on the grounds that there was insufficient information for evaluation before the meeting.


-------------
2  A co-opted director is an individual appointed to the board by incumbent directors to replace a director who was elected by directors but who leaves the board (through resignation or death) before the end of his or her term.

Japan

For companies that have established a U.S.-style corporate governance structure, the funds will withhold votes from the entire board of directors if

the board does not have a majority of outside directors,

the board has not established nominating and compensation committees composed of a majority of outside directors, or

the board has not established an audit committee composed of a majority of independent directors.

The funds will withhold votes for the appointment of members of a company's board of statutory auditors if a majority of the members of the board of statutory auditors is not independent.

Commentary:

Board structure: Recent amendments to the Japanese Commercial Code give companies the option to adopt a U.S.-style corporate governance structure (i.e., a board of directors and audit, nominating, and compensation committees). The funds will vote for proposals to amend a company's articles of incorporation to adopt the U.S.-style corporate structure.

Definition of outside director and independent director: Corporate governance principles in Japan focus on the distinction between outside directors and independent directors. Under these principles, an outside director is a director who is not and has never been a director, executive, or employee of the company or its parent company, subsidiaries or affiliates. An outside director is “independent” if that person can make decisions completely independent from the managers of the company, its parent, subsidiaries, or affiliates and does not have a material relationship with the company (i.e., major client, trading partner, or other business relationship; familial relationship with current director or executive; etc.). The guidelines have incorporated these definitions in applying the board independence standards above.

Korea

The funds will withhold votes from the entire board of directors if

fewer than half of the directors are outside directors,

the board has not established a nominating committee with at least half of the members being outside directors, or

the board has not established an audit committee composed of at least three members and in which at least two-thirds of its members are outside directors.

The funds will vote withhold votes from nominees to the audit committee if the board has not established an audit committee composed of (or proposed to be composed of) at least three members, and of which at least two-thirds of its members are (or will be) outside directors.

Commentary:  For purposes of these guidelines, an “outside director” is a director that is independent from the management or controlling shareholders of the company, and holds no interests that might impair the performance his or her duties impartially with respect to the company, management or controlling shareholder. In determining whether a director is an outside director, the funds will also apply the standards included in Article 415-2(2) of the Korean Commercial Code (i.e., no employment relationship with the company for a period of two years before serving on the committee, no director or employment relationship with the company's largest shareholder, etc.) and may consider other business relationships that would affect the independence of an outside director.

Malaysia

The funds will withhold votes from the entire board of directors if

in the case of a board with an independent director serving as chair, fewer than one-third of the directors are independent directors; or, in the case of a board not chaired by an independent director, less than a majority of the directors are independent directors,

the board has not established audit and nominating committees with at least a majority of the members being independent directors and all of the members being non-executive directors, or

the board has not established a compensation committee with at least a majority of the members being non-executive directors.

Commentary. For purposes of these guidelines, an “independent director” is a director who has no material, financial or other current relationships with the company. In determining whether a director is independent, the funds will apply the standards included in the Malaysia Code of Corporate Governance, Commentary to Recommendation 3.1. A “non-executive director” is a director who does not take on primary responsibility for leadership of the company.

Russia

The funds will vote on a case-by-case basis for the election of nominees to the board of directors.

Commentary:  In Russia, director elections are typically handled through a cumulative voting process. Cumulative voting allows shareholders to cast all of their votes for a single nominee for the board of directors, or to allocate their votes among nominees in any other way. In contrast, in “regular” voting, shareholders may not give more than one vote per share to any single nominee. Cumulative voting can help to strengthen the ability of minority shareholders to elect a director.

In Russia, as in some other emerging markets, standards of corporate governance are usually behind those in developed markets. Rather than vote against the entire board of directors, as the funds generally would in the case of a company whose board fails to meet the funds' standards for independence, the funds may, on a case by case basis, cast all of their votes for one or more independent director nominees. The funds believe that it is important to increase the number of independent directors on the boards of Russian companies to mitigate the risks associated with dominant shareholders.

Singapore

The funds will withhold votes from the entire board of directors if

in the case of a board with an independent director serving as chair, fewer than one-third of the directors are independent directors; or, in the case of a board not chaired by an independent director, fewer than half of the directors are independent directors,

the board has not established audit and compensation committees, each with an independent director serving as chair, with at least a majority of the members being independent directors, and with all of the directors being non-executive directors, or

the board has not established a nominating committee, with an independent director serving as chair, and with at least a majority of the members being independent directors.

Commentary:  For purposes of these guidelines, an “independent director” is a director that has no material, financial or other current relationships with the company. In determining whether a director is independent, the funds will apply the standards included in the Singapore Code of Corporate Governance, Guideline 2.3. A “non-executive director” is a director who is not employed with the company.

United Kingdom

The funds will withhold votes from the entire board of directors if

fewer than half of the directors are independent non-executive directors,

the board has not established a nomination committee composed of a majority of independent non-executive directors, or

the board has not established compensation and audit committees composed of (1) at least three directors (in the case of smaller companies, two directors) and (2) solely independent non-executive directors, provided that, to the extent permitted under the United Kingdom's Combined Code on Corporate Governance, the company chairman may serve on (but not serve as chairman of) the compensation and audit committees if the chairman was considered independent upon his or her appointment as chairman.

The funds will withhold votes from any nominee for director who is considered an independent director by the company and who has received compensation within the last three years from the company other than for service as a director, such as investment banking, consulting, legal, or financial advisory fees.

The funds will vote for proposals to amend a company's articles of association to authorize boards to approve situations that might be interpreted to present potential conflicts of interest affecting a director.

Commentary:

Application of guidelines: Although the United Kingdom's Combined Code on Corporate Governance (“Combined Code”) has adopted the “comply and explain” approach to corporate governance, the funds' Trustees believe that the guidelines discussed above with respect to board independence standards are integral to the protection of investors in U.K. companies. As a result, these guidelines will generally be applied in a prescriptive manner.

Definition of independence: For the purposes of these guidelines, a non-executive director shall be considered independent if the director meets the independence standards in section A.3.1 of the Combined Code (i.e., no material business or employment relationships with the company, no remuneration from the company for non-board services, no close family ties with senior employees or directors of the company, etc.), except that the funds do not view service on the board for more than nine years as affecting a director's independence. Company chairmen in the U.K. are generally considered affiliated upon appointment as chairman due to the nature of the position of chairman. Consistent with the Combined Code, a company chairman who was considered independent upon appointment as chairman: may serve as a member of, but not as the chairman of, the compensation (remuneration) committee; and, in the case of smaller companies, may serve as a member of, but not as the chairman of, the audit committee.

Smaller companies: A smaller company is one that is below the FTSE 350 throughout the year immediately prior to the reporting year.

Conflicts of interest: The Companies Act 2006 requires a director to avoid a situation in which he or she has, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company. This broadly written requirement could be construed to prevent a director from becoming a trustee or director of another organization. Provided there are reasonable safeguards, such as the exclusion of the relevant director from deliberations, the funds believe that the board may approve this type of potential conflict of interest in its discretion.

All other jurisdictions

The funds will vote for supervisory board nominees when the supervisory board meets the funds' independence standards, otherwise the funds will vote against supervisory board nominees.

Commentary:  Companies in many jurisdictions operate under the oversight of supervisory boards. In the absence of jurisdiction-specific guidelines, the funds will generally hold supervisory boards to the same standards of independence as it applies to boards of directors in the United States.

Contested Board Elections
Italy

The funds will vote for the management- or board-sponsored slate of nominees if the board meets the funds' independence standards, and against the management- or board-sponsored slate of nominees if the board does not meet the funds' independence standards; the funds will not vote on shareholder-proposed slates of nominees.

Commentary:  Contested elections in Italy may involve a variety of competing slates of nominees. In these circumstances, the funds will focus their analysis on the board- or management-sponsored slate.

Corporate Governance

The funds will vote for proposals to change the size of a board if the board meets the funds' independence standards, and against proposals to change the size of a board if the board does not meet the funds' independence standards.

The funds will vote for shareholder proposals calling for a majority of a company's directors to be independent of management.

The funds will vote for shareholder proposals seeking to increase the independence of board nominating, audit, and compensation committees.

The funds will vote for shareholder proposals that implement corporate governance standards similar to those established under U.S. federal law and the listing requirements of U.S. stock exchanges, and that do not otherwise violate the laws of the jurisdiction under which the company is incorporated.

Australia

The funds will vote on a case-by-case basis on board spill resolutions.

Commentary:  The Corporations Amendment (Improving Accountability on Director and Executive Compensation) Bill 2011 provides that, if a company's remuneration report receives a “no” vote of 25% or more of all votes cast at two consecutive annual general meetings, at the second annual general meeting, a spill resolution must be proposed. If the spill resolution is approved (by simple majority), then a further meeting to elect a new board (excluding the managing director) must be held within 90 days. The funds will consider board spill resolutions on a case-by-case basis.

Europe

The funds will vote for proposals to ratify board acts, except that the funds will consider these proposals on a case-by-case basis if the funds' proxy voting service has recommended a vote against the proposal.

Taiwan

The funds will vote against proposals to release directors from their non-competition obligations (their obligations not to engage in any business that is competitive with the company), unless the proposal is narrowly drafted to permit directors to engage in a business that is competitive with the company only on behalf of a wholly-owned subsidiary of the company.

Compensation

The funds will vote for proposals to approve annual directors' fees, except that the funds will consider these proposals on a case-by-case basis in each case in which the funds' proxy voting service has recommended a vote against such a proposal.

The funds will vote for non-binding proposals to approve remuneration reports, except that the funds will vote against proposals to approve remuneration reports that indicate that awards under a long-term incentive plan are not linked to performance targets.

Commentary:  Since proposals relating to directors' fees for non-U.S. issuers generally address relatively modest fees paid to non-executive directors, the funds generally support these proposals, provided that the fees are consistent with directors' fees paid by the company's peers and do not otherwise appear unwarranted. Consistent with the approach taken for U.S. issuers, the funds generally favor compensation programs that relate executive compensation to a company's long-term performance and will support non-binding remuneration reports unless such a correlation is not made.

Europe and Asia ex-Japan

In the case of proposals that do not include sufficient information for determining average annual dilution, the funds will will vote for stock option and restricted stock plans that will result in an average gross potential dilution of 5% or less.

Commentary:  Asia ex-Japan means China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. In these markets, companies may not disclose the life of the plan and there may not be a specific number of shares requested; therefore, it may not be possible to determine the average annual dilution related to the plan and apply the funds' standard dilution test.

France

The funds will vote for an employee stock purchase plan or share save scheme that has the following features: (1) the shares purchased under the plan are acquired for no less than 70% of their market value; (2) the vesting period is greater than or equal to 10 years; (3) the offering period under the plan is 27 months or less; and (4) dilution is 10% or less.

Commentary:  To conform to local market practice, the funds support plans or schemes at French issuers that permit the purchase of shares at up to a 30% discount (i.e., shares may be purchased for no less than 70% of their market value). By comparison, for U.S. issuers, the funds do not support employee stock purchase plans that permit shares to be acquired at more than a 15% discount (i.e., for less than 85% of their market value); in the United Kingdom, up to a 20% discount is permitted.

United Kingdom

The funds will vote for an employee stock purchase plan or share save scheme that has the following features: (1) the shares purchased under the plan are acquired for no less than 80% of their market value; (2) the offering period under the plan is 27 months or less; and (3) dilution is 10% or less.

Commentary:  These are the same features that the funds require of employee stock purchase plans proposed by U.S. issuers, except that, to conform to local market practice, the funds support plans or schemes at United Kingdom issuers that permit the purchase of shares at up to a 20% discount (i.e., shares may be purchased for no less than 80% of their market value). By comparison, for U.S. issuers, the funds do not support employee stock purchase plans that permit shares to be acquired at more than a 15% discount (i.e., for less than 85% of their market value).

Capitalization

Unless a proposal is directly addressed by a country-specific guideline:

The funds will vote for proposals

to issue additional common stock representing up to 20% of the company's outstanding common stock, where shareholders do not have preemptive rights, or

to issue additional common stock representing up to 100% of the company's outstanding common stock, where shareholders do have preemptive rights.

The funds will vote for proposals to authorize share repurchase programs that are recommended for approval by the funds' proxy voting service; otherwise, the funds will vote against such proposals.

Australia

The funds will vote for proposals to carve out, from the general cap on non-pro rata share issues of 15% of total equity in a rolling 12-month period, a particular proposed issue of shares or a particular issue of shares made previously within the 12-month period, if the company's board meets the funds' independence standards; if the company's board does not meet the funds' independence standards, then the funds will vote against these proposals.

The funds will vote for proposals to approve the grant of equity awards to directors, except that the funds will consider these proposals on a case-by-case basis if the funds' proxy voting service has recommended a vote against the proposal.

China

The funds will vote for proposals to issue and/or to trade in non-convertible, convertible and/or exchangeable debt obligations, except that the funds will consider these proposals on a case-by-case basis if the funds' proxy voting service has recommended a vote against the proposal.

Hong Kong

The funds will vote for proposals to approve a general mandate permitting the company to engage in non-pro rata share issues of up to 20% of total equity in a year if the company's board meets the funds' independence standards; if the company's board does not meet the funds' independence standards, then the funds will vote against these proposals.

The funds will for proposals to approve the reissuance of shares acquired by the company under a share repurchase program, provided that: (1) the funds supported (or would have supported, in accordance with these guidelines) the share repurchase program, (2) the reissued shares represent no more than 10% of the company's outstanding shares (measured immediately before the reissuance), and (3) the reissued shares are sold for no less than 85% of current market value.

France

The funds will vote for proposals to increase authorized shares, except that the funds will consider these proposals on a case-by-case basis if the funds' proxy voting service has recommended a vote against the proposal.

The funds will vote against proposals to authorize the issuance of common stock or convertible debt instruments and against proposals to authorize the repurchase and/or reissuance of shares where those authorizations may be used, without further shareholder approval, as anti-takeover measures.

New Zealand

The funds will vote for proposals to approve the grant of equity awards to directors, except that the funds will consider these proposals on a case-by-case basis if the funds' proxy voting service has recommended a vote against the proposal.

Commentary:  In light of the prevalence of certain types of capitalization proposals in Australia, China, Hong Kong, France and New Zealand, the funds have adopted guidelines specific to those jurisdictions.

Other Business Matters

The funds will vote for proposals permitting companies to deliver reports and other materials electronically (e.g., via website posting).

The funds will vote for proposals permitting companies to issue regulatory reports in English.

The funds will vote against proposals to shorten shareholder meeting notice periods to fourteen days.

Commentary:  Under Directive 2007/36/EC of the European Parliament and the Council of the European Union, companies have the option to request shareholder approval to set the notice period for special meetings at 14 days provided that certain electronic voting and communication requirements are met. The funds believe that the 14 day notice period is too short to provide overseas shareholders with sufficient time to analyze proposals and to participate meaningfully at special meetings and, as a result, have determined to vote against such proposals.


The funds will vote for proposals to amend a company's charter or bylaws, except that the funds will consider these proposals on a case-by-case basis if the funds' proxy voting service has recommended a vote against the proposal.

Commentary:  If the substance of any proposed amendment is covered by a specific guideline included herein, then that guideline will govern.

France

The funds will vote for proposals to approve a company's related party transactions, except that the funds will consider these proposals on a case-by-case basis if the funds' proxy voting service has recommended a vote against the proposal.

If a company has not proposed an opt-out clause in its articles of association and the implementation of double-voting rights has not been approved by shareholders, the funds will vote against the ratification of board acts for the previous fiscal year, will withhold votes from the re-election of members of the board's governance committee (or in the absence of a governance committee, against the chair of the board or the next session board member up for re-election) and, if there is no opportunity to vote against ratification of board acts or to withhold votes from directors, will vote against the approval of the company's accounts and reports.

Commentary:  In France, shareholders are generally requested to approve any agreement between the company and: (i) its directors, chair of the board, CEO and deputy CEOs; (ii) the members of the supervisory board and management board, for companies with a dual structure; and (iii) a shareholder who directly or indirectly owns at least 10% of the company's voting rights. This includes agreements under which compensation may be paid to executive officers after the end of their employment, such as severance payments, supplementary retirement plans and non-competition agreements. The funds will generally support these proposals unless the funds' proxy voting service recommends a vote against, in which case the funds will consider the proposal on a case-by-case basis.

Under French law, shareholders of French companies with shares held in registered form under the same name for at least two years will automatically be granted double-voting rights, unless a company has amended its articles of association to opt out of the double-voting rights regime. Awarding double-voting rights in this manner is likely to disadvantage non-French institutional shareholders. Accordingly, the funds will take actions to signal disapproval of double-voting rights at companies that have not opted-out from the double-voting rights regime and that have not obtained shareholder approval of the double-voting rights regime.

Germany

The funds will vote in accordance with the recommendation of the company's board of directors on shareholder countermotions added to a company's meeting agenda, unless the countermotion is directly addressed by one of the funds' other guidelines.

Commentary:  In Germany, shareholders are able to add both proposals and countermotions to a meeting agenda. Countermotions, which must correspond to a proposal on the agenda, generally call for shareholders to oppose the existing proposal, although they may also propose separate voting decisions. Countermotions may be proposed by any shareholder and they are typically added throughout the period between the publication of the meeting agenda and the meeting date. This guideline reflects the funds' intention to focus on the original proposal, which is expected to be presented a reasonable period of time before the shareholder meeting so that the funds will have an appropriate opportunity to evaluate it.


The funds will vote for proposals to approve profit-and-loss transfer agreements between a controlling company and its subsidiaries.

Commentary:  These agreements are customary in Germany and are typically entered into for tax purposes. In light of this and the prevalence of these proposals, the funds have adopted a guideline to vote for this type of proposal.

Taiwan

The funds will vote for proposals to amend a Taiwanese company's procedural rules.

Commentary:  Since procedural rules, which address such matters as a company's policies with respect to capital loans, endorsements and guarantees, and acquisitions and disposal of assets, are generally adopted or amended to conform to changes in local regulations governing these transactions, the funds have adopted a guideline to vote for these transactions.

As adopted January 26, 2018

Proxy voting procedures of The Putnam Funds

The proxy voting procedures below explain the role of the funds' Trustees, proxy voting service and Director of Proxy Voting and Corporate Governance (“Proxy Voting Director”), as well as how the process works when a proxy question needs to be handled on a case-by-case basis, or when there may be a conflict of interest.

The role of the funds' Trustees

The Trustees of The Putnam Funds exercise control of voting proxies through their Board Policy and Nominating Committee, which is composed entirely of independent Trustees. The Board Policy and Nominating Committee oversees the proxy voting process and participates, as needed, in the resolution of issues that need to be handled on a case-by-case basis. The Committee annually reviews and recommends, for Trustee approval, guidelines governing the funds' proxy votes, including how the funds vote on specific proposals and which matters are to be considered on a case-by-case basis. The Trustees are assisted in this process by their independent administrative staff (“Office of the Trustees”), independent legal counsel, and an independent proxy voting service. The Trustees also receive assistance from Putnam Investment Management, LLC (“Putnam Management”), the funds' investment adviser, on matters involving investment judgments. In all cases, the ultimate decision on voting proxies rests with the Trustees, acting as fiduciaries on behalf of the shareholders of the funds.

The role of the proxy voting service

The funds have engaged an independent proxy voting service to assist in the voting of proxies. The proxy voting service is responsible for coordinating with the funds' custodian(s) to ensure that all proxy materials received by the custodians relating to the funds' portfolio securities are processed in a timely fashion. To the extent applicable, the proxy voting service votes all proxies in accordance with the proxy voting guidelines established by the Trustees. The proxy voting service will refer proxy questions to the Proxy Voting Director for instructions under circumstances where: (1) the application of the proxy voting guidelines is unclear; (2) a particular proxy question is not covered by the guidelines; or (3) the guidelines call for specific instructions on a case-by-case basis. The proxy voting service is also requested to call to the attention of the Proxy Voting Director specific proxy questions that, while governed by a guideline, appear to involve unusual or controversial issues. The funds also utilize research services relating to proxy questions provided by the proxy voting service and by other firms.

The role of the Proxy Voting Director

The Proxy Voting Director, a member of the Office of the Trustees, assists in the coordination and voting of the funds' proxies. The Proxy Voting Director deals directly with the proxy voting service and, in the case of proxy questions referred by the proxy voting service, solicits voting recommendations and instructions from the Office of the Trustees, the Chair of the Board Policy and Nominating Committee, and Putnam Management's investment professionals, as appropriate. The Proxy Voting Director is responsible for ensuring that these questions and referrals are responded to in a timely fashion and for transmitting appropriate voting instructions to the proxy voting service. In addition, the Proxy Voting Director is the contact person for receiving recommendations from Putnam Management's investment professionals with respect to any proxy question in circumstances where the investment professional believes that the interests of fund shareholders warrant a vote contrary to the fund's proxy voting guidelines.

On occasion, representatives of a company in which the funds have an investment may wish to meet with the company's shareholders in advance of the company's shareholder meeting, typically to explain and to provide the company's perspective on the proposals up for consideration at the meeting. As a general matter, the Proxy Voting Director will participate in meetings with these company representatives.

The Proxy Voting Director is also responsible for ensuring that the funds file the required annual reports of their proxy voting records with the Securities and Exchange Commission. The Proxy Voting Director coordinates with the funds' proxy voting service to prepare and file on Form N‑PX, by August 31 of each year, the funds' proxy voting record for the most recent twelve-month period ended June 30. In addition, the Proxy Voting Director is responsible for coordinating with Putnam Management to arrange for the funds' proxy voting record for the most recent twelve-month period ended June 30 to be available on the funds' website.

Voting procedures for referral items

As discussed above, the proxy voting service will refer proxy questions to the Proxy Voting Director under certain circumstances. Unless the referred proxy question involves investment considerations (i.e., the proxy question might be seen as having a bearing on the economic interests of a shareholder in the company) and is referred to Putnam Management's investment professionals for a voting recommendation as described below, the Proxy Voting Director will assist in interpreting the guidelines and, if necessary, consult with a senior staff member of the Office of the Trustees and/or the Chair of the Board Policy and Nominating Committee on how the funds' shares will be voted.

The Proxy Voting Director will refer proxy questions that involve investment considerations, through an electronic request form, to Putnam Management's investment professionals for a voting recommendation. These referrals will be made in cooperation with the person or persons designated by Putnam Management's Legal and Compliance Department to assist in processing referral items. In connection with each item referred to Putnam Management's investment professionals, the Legal and Compliance Department will conduct a conflicts of interest review, as described below under “Conflicts of interest,” and provide electronically a conflicts of interest report (the “Conflicts Report”) to the Proxy Voting Director describing the results of the review. After receiving a referral item from the Proxy Voting Director, Putnam Management's investment professionals will provide a recommendation electronically to the Proxy Voting Director and the person or persons designated by the Legal and Compliance Department to assist in processing referral items. The recommendation will set forth (1) how the proxies should be voted; and (2) any contacts the investment professionals have had with respect to the referral item with non-investment personnel of Putnam Management or with outside parties (except for routine communications from proxy solicitors). The Proxy Voting Director will review the recommendation of Putnam Management's investment professionals (and the related Conflicts Report) in determining how to vote the funds' proxies. The Proxy Voting Director will maintain a record of all proxy questions that have been referred to Putnam Management's investment professionals, the voting recommendation, and the Conflicts Report. An exception to this referral process is that the Proxy Voting Director will not refer proxy questions in respect of portfolio securities that are held only in funds sub-advised by PanAgora Asset Management, Inc.

In some situations, the Proxy Voting Director may determine that a particular proxy question raises policy issues requiring consultation with the Chair of the Board Policy and Nominating Committee, who, in turn, may decide to bring the particular proxy question to the Committee or the full Board of Trustees for consideration.

Conflicts of interest

Occasions may arise where a person or organization involved in the proxy voting process may have a conflict of interest. A conflict of interest may exist, for example, if Putnam Management has a business relationship with (or is actively soliciting business from) either the company soliciting the proxy or a third party that has a material interest in the outcome of a proxy vote or that is actively lobbying for a particular outcome of a proxy vote. Any individual with knowledge of a personal conflict of interest (e.g., familial relationship with company management or a significant personal investment in the company) relating to a particular referral item shall disclose that conflict to the Proxy Voting Director and the Legal and Compliance Department and may be asked to remove himself or herself from the proxy voting process. The Legal and Compliance Department will review each item referred to Putnam Management's investment professionals to determine if a conflict of interest exists and will provide the Proxy Voting Director with a Conflicts Report for each referral item that: (1) describes any conflict of interest; (2) discusses the procedures used to address such conflict of interest; and (3) discloses any contacts from parties outside Putnam Management (other than routine communications from proxy solicitors) with respect to the referral item not otherwise reported in an investment professional's recommendation. The Conflicts Report will also include written confirmation that any recommendation from an investment professional provided under circumstances where a conflict of interest exists was made solely on the investment merits and without regard to any other consideration.

As adopted March 11, 2005 and revised June 12, 2009, January 24, 2014 and June 23, 2017.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

(a)(1) Portfolio Managers. The officers of Putnam Management identified below are primarily responsible for the day-to-day management of the fund's portfolio as of the filing date of this report.


Portfolio managers Joined Fund Employer Positions Over Past Five Years

D. William Kohli 2002 Putnam Management 1994-Present Co-Head of Fixed Income Previously, Team Leader, Portfolio Construction
Michael Atkin 2007 Putnam Management 1997-Present Portfolio Manager Previously, Director of Sovereign Research
Robert Davis 2017 Putnam Management 1999-Present Portfolio Manager Previously, Analyst
Brett Kozlowski 2017 Putnam Management 2008-Present Portfolio Manager
Michael Salm 2011 Putnam Management 1997-Present Co-Head of Fixed Income Previously, Team Leader, Liquid Markets and Mortgage Specialist
Paul Scanlon 2005 Putnam Management 1999-Present Co-Head of Fixed Income Previously, Team Leader, U.S. High Yield

(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 the fund's Portfolio Managers 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
William Kohli 15* $7,269,800,000 20** $3,652,100,000 11*** $9,665,800,000
Michael Salm 22**** $22,246,900,000 34** $9,133,700,000 25*** $5,718,600,000
Michael Atkin 5 $5,148,500,000 7 $2,102,000,000 11*** $2,418,200,000
Paul Scanlon 22*** $11,347,600,000 31** $8,599,700,000 27 $13,212,000,000
Brett Kozlowski 20***** $9,687,700,000 19 $5,157,900,000 16 $3,367,100,000
Robert Davis 12****** $5,622,800,000 12 $2,054,500,000 15*** $2,229,100,000


*   3 accounts, with total assets of $1,072,500,000, pay an advisory fee based on account performance.

**   1 accounts, with total assets of $92,400,000 pay an advisory fee based on account performance.

***   1 accounts, with total assets of $485,300,000 pay an advisory fee based on account performance.

****   2 accounts, with total assets of $930,300,000 pay an advisory fee based on account performance.

*****   2 accounts, with total assets of $534,000,000 pay an advisory fee based on account performance

******   1 accounts, with total assets of $391,800,000 pay an advisory fee based on account performance
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 the end of the fund's last two fiscal years, including investments by their immediate family members and amounts invested through retirement and deferred compensation plans.


*   : Assets in the fund
Year$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
William Kohli2018x
2017x
Michael Atkin2018x
2017x
Robert Davis2018x
2017x
Brett Kozlowski2018x
2017x
Michael Salm2018x
2017x
Paul Scanlon2018x
2017x
(b) Not applicable
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, 2017 8,999,307
September 1 — September 30, 2017 8,999,307
October 1 — October 9, 2017 8,999,307
October 10 — October 31, 2017 10,725,432
November 1 — November 30, 2017 10,725,432
December 1 — December 31, 2017 90,258 $5.23 90,258 10,635,174
January 1 — January 31, 2018 289,197 $5.21 289,197 10,345,977
February 1 — February 28, 2018 210,483 $5.21 210,483 10,135,494
March 1 — March 31, 2018 10,135,494
April 1 — April 30, 2018 10,135,494
May 1 — May 31, 2018 10,135,494
June 1 — June 30, 2018 10,135,494
July 1 — July 31, 2018 10,135,494


*   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 2016, which was in effect between October 8, 2016 and October 7, 2017, allowed the fund to repurchase up to 10,917,224 of its shares. The program renewed by the Board in September 2017, which is in effect between October 10, 2017 and October 9, 2018, allows the fund to repurchase up to 10,725,432 of its shares.
**   Information prior to October 9, 2017 is based on the total number of shares eligible for repurchase under the program, as amended through September 2016. Information from October 10, 2017 forward is based on the total number of shares eligible for repurchase under the program, as amended through September 2017.

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. Disclosures of Securities Lending Activities for Closed-End Management Investment Companies:
Not Applicable

Item 13. Exhibits:
(a)(1) The Code of Ethics of The Putnam Funds, which incorporates the Code of Ethics of Putnam Investments, is filed herewith.
(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: September 27, 2018
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: September 27, 2018
By (Signature and Title):
/s/ Janet C. Smith
Janet C. Smith
Principal Financial Officer

Date: September 27, 2018