· 2017-09-29investment company act file number: (811- 02280) exact name of registrant as...
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0000928816-07-001865.txt : 200712280000928816-07-001865.hdr.sgml : 2007122820071228150610ACCESSION NUMBER:0000928816-07-001865CONFORMED SUBMISSION TYPE:N-CSRPUBLIC DOCUMENT COUNT:22CONFORMED PERIOD OF REPORT:20071031FILED AS OF DATE:20071228DATE AS OF CHANGE:20071228EFFECTIVENESS DATE:20071228
FILER:
COMPANY DATA:COMPANY CONFORMED NAME:PUTNAM CONVERTIBLE INCOME GROWTH TRUSTCENTRAL INDEX KEY:0000081247IRS NUMBER:042493360STATE OF INCORPORATION:MAFISCAL YEAR END:1031
FILING VALUES:FORM TYPE:N-CSRSEC ACT:1940 ActSEC FILE NUMBER:811-02280FILM NUMBER:071331707
BUSINESS ADDRESS:STREET 1:ONE POST OFFICE SQSTREET 2:MAILSTOP A 14CITY:BOSTONSTATE:MAZIP:02109BUSINESS PHONE:6172921000
FORMER COMPANY:FORMER CONFORMED NAME:PUTNAM CONVERTIBLE FUNDDATE OF NAME CHANGE:19841212
FORMER COMPANY:FORMER CONFORMED NAME:PUTNAM CONVERTIBLE FUND INC /PRED/DATE OF NAME CHANGE:19821109
0000081247S000005511PUTNAM CONVERTIBLE INCOME GROWTH TRUST
C000015003Class C Shares
C000015004Class A SharesPCONX
C000015005Class B SharesPCNBX
C000015006Class M SharesPCNMX
C000015007Class R SharesPCVRX
C000015008Class Y SharesPCGYX
N-CSR1a_convincgrwth.htmPUTNAM CONVERTIBLE INCOME-GROWTH TRUST
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- 02280)
Exact name of registrant as specified in charter: Putnam Convertible Income-Growth Trust
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109
Name and address of agent for service: Beth S. Mazor, Vice President
One Post Office Square
Boston, Massachusetts 02109
Copy to: John W. Gerstmayr, Esq.
Ropes & Gray LLP
One International Place
Boston, Massachusetts 02110
Registrants telephone number, including area code: (617) 292-1000
Date of fiscal year end: October 31, 2007
Date of reporting period: November 1, 2006 October 31, 2007
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:
What makes Putnam different?
A time-honored tradition in money management
Since 1937, our values have been rooted in a profound sense of responsibility for the money entrusted to us.
A prudent approach to investing
We use a research-driven team approach to seek consistent, dependable, superior investment results over time, although there is no guarantee a fund will meet its objectives.
Funds for every investment goal
We offer a broad range of mutual funds and other financial products so investors and their financial representatives can build diversified portfolios.
A commitment to doing whats right for investors
With a focus on investment performance, below-average expenses, and in-depth information about our funds, we put the interests of investors first and seek to set the standard for integrityand service.
Industry-leading service
We help investors, along with their financial representatives, make informed investment decisions with confidence.
In 1830, Massachusetts Supreme Judicial Court Justice Samuel Putnam established The Prudent Man Rule, a legal foundation for responsible money management.
THE PRUDENT MAN RULE
All that can be required of a trustee to invest is that he shall conduct himself faithfully and exercise a sound discretion. He is to observe how men of prudence, discretion, andintelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety of the capital to be invested.
Putnam
Convertible
Income-Growth
Trust
10| 31| 07
Annual Report
Message from the Trustees 1
About the fund 2
Performance and portfolio snapshots 4
Report from the fund managers 5
Performance in depth 10
Expenses 13
Portfolio turnover 15
Risk 15
Your funds management 16
Terms and definitions 17
Trustee approval of management contract 18
Other information for shareholders 22
Financial statements 23
Federal tax information 40
Brokerage commissions 40
Shareholder meeting results 41
About the Trustees 42
Officers 46
Cover photograph: White-Packert Photography
Message from the Trustees
Dear Fellow Shareholder:
In November, Putnam Investments celebrated its 70th anniversary. From modest beginnings in Boston, Massachusetts, Putnam has grown into a global asset manager that serves millions ofinvestors worldwide. Coincident with this anniversary, we are pleased to announce that Great-West Lifeco Inc. recently completed its purchase of Putnam Investments from Marsh & McLennan Companies, Inc. Great-West Lifeco is a financial servicesholding company with operations in Canada, the United States, and Europe, and is a member of the Power Financial Corporation group of companies. With this change, Putnam becomes part of a successful organization with a long-standing commitment tohigh-quality investment management and financial services. The change in ownership is not expected to affect the Putnam funds, the way Putnam manages money, or the funds management teams.
We would also like to take this opportunity to announce that Putnam President and Chief Executive Officer Ed Haldeman, one of your funds Trustees since 2004, was named President ofthe Funds, assuming this role from George Putnam, III. This change, together with the completion of the transaction with Great-West Lifeco, has enabled George Putnam to become an independent Trustee of the funds. Both George and Ed will continueserving on the Board of Trustees in our collective role of overseeing the Putnam funds on your behalf.
Lastly, we are pleased to announce that a new independent Trustee, Robert J. Darretta, has joined your funds Board of Trustees. Mr. Darretta brings extensive leadership experience incorporate finance and accounting. He is a former Vice Chairman of the Board of Directors of Johnson & Johnson, one of the leading U.S. health-care and consumer products companies, where he also served as Chief Financial Officer, Executive VicePresident, and Treasurer.
Although the mutual fund industry has undergone many changes since George Putnam introduced his innovative balanced fund in 1937, Putnams guiding principles have not. As we celebratePutnams 70-year milestone, we look forward to Putnam continuing its long tradition of prudent money management and to the new chapter opened by its recent change in ownership. As always, we thank you for your support of the Putnamfunds.
Putnam Convertible Income-Growth Trust:
seeking opportunities in bond/stock hybrids
The differences between bonds and stocks seem fairly clear-cut. Stocks provide an ownership stake in a company; bonds provide a claim on the interest paid by a company or other entity on its debt. Stocks are traded on markets, and their value rises and falls with such factors as investor sentiment, company news, and economic conditions; bonds are issued by a government, agency, company, or public utility that typically promises to pay the bearer a fixed rate of interest at specified intervals and to return a set amount of money at a specified end date (the maturity date). A bonds yield is often influenced by interest-rate levels.
A third type of security, however, is a hybrid of a stock and a bond. A convertible security offers a set rate of interest, like a bond; but unlike a bond, it has a built-in option that, under certain circumstances, allows the investor to exchange (or convert) the security for a fixed number of shares of stock. This feature offers the potential for capital appreciation, since the pre-set conversion price does not change as the underlying stocks price increases or decreases.
Convertibles are issued by companies and can offer greater returns than high-quality bonds but they also carry a greater potential for risk, such as the risk of corporate default or periodic illiquidity. Issuers range from large, well-known S&P 500 corporations, to small, rapidly growing companies, to companies in cyclically depressed industries such as airlines, autos, and utilities.
Constructing a portfolio that maintains an appropriate balance of risk and return potential requires intensive research and analysis. Putnams global equity and credit research analysts conduct rigorous fundamental and quantitative research, seeking to determine the true worth of the issuing companys business.
Putnam Convertible Income-Growth Trusts management team then constructs a portfolio that it believes offers the best return potentia