Company: PIM
Filing Date: 2025-12-01
Form Type: N-CSR
Source: 0001133228-25-012988
Chunk: 157

Company: PUTNAM MASTER INTERMEDIATE INCOME TRUST
Filing Date: 2025-12-01
Form: N-CSR
Chunk 157
---
residential

mortgage-backed

instruments.

Derivatives

are

### financial
instruments

whose

value

depends

upon,

or

is

derived

from,

the

value

of

something

else,

such

as

one

or

more

underlying

investments,

pools

of

investments,

indexes

or

currencies.

We

may

make

use

of

“short”

derivative

positions,

the

values

of

which

typically

move

in

the

opposite

direction

from

the

price

of

Putnam

Master

Intermediate

Income

Trust

Important

Information

to

Shareholders

(unaudited)

64

franklintempleton.com

Annual

Report

the

underlying

investment,

pool

of

investments,

index

or

currency.

We

may

use

derivatives

both

for

hedging

and

non-hedging

purposes

and

to

obtain

leverage.

For

example,

we

may

use

derivatives

to

increase

or

decrease

the

Fund’s

exposure

to

long-

or

short-term

interest

rates

(in

the

United

States

or

abroad),

increase

or

decrease

the

Fund’s

exposure

to

inflation,

adjust

the

term

of

the

Fund’s

U.S.

Treasury

security

exposure,

adjust

the

Fund’s

positioning

on

the

yield

curve

(a

line

that

plots

interest

rates

of

bonds

having

equal

credit

quality

but

differing

maturity

dates)

or

to

take

tactical

positions

along

the

yield

curve

or

to

a

particular

currency

or

group

of

currencies,

or

as

a

substitute

for

a

direct

investment

in

the

securities

of

one

or

more

issuers.

The

Fund

may

also

use

derivatives

to

isolate

prepayment

risk

associated

with

the

Fund’s

holdings

of

collateralized

mortgage

obligations.

However,

we

may

also

choose

not

to

use

deriv