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Rare Earths for America’s Future
DANIEL OBERHAUS
DIRECTORS REPORT
P100
A
a
a ab e a
ca
e
a e f ed
.
ee a
e
fa e
a
a ed a e
ed
a ed
e
e
b
ea a e de ce f
a g e
a
9
T e a e f
ea
ca
ec
c
;b
efe e ce
e a da
g a
e _______________________________
17
AFFAIRS
The Di ec
e e
hei e
he c
lida ed
e i c
i i g f Alka e E l a i L d (ACN 000 689
216) a d he e i ie i c
lled a he e d f, d i g,
he ea e ded 31 Decembe 2003.
DIRECTORS
The f ll i g e
e e Di ec
f Alka e
E l a i L d d i g he h le ea a d
he da e
f hi e
:
I.R. C
eli
(Chai ma )
D.I. Chalme
L.A. C lle
H.D. Ke
affec ed b
EVENTS SUBSEQUENT TO BALANCE DATE
O he ha a e
ed i he fi a cial a eme ,
ma e
ci c m a ce ha e a i e i ce he e d f he
fi a cial ea a d
he da e f hi
e
hich
ig ifica l affec ed
ma
ig ifica l affec he
eai
f he C m a , he e l
f he C m a ,
he a e f affai
f he C m a i he fi a cial ea
b e e
he fi a cial ea e ded
31 Decembe 2003.
LIKELY DEVELOPMENTS
The C m a
i e d
c i e e l ai
i
e i i g e eme ,
ac i e f he e eme
f
e l ai
f all mi e al ,
eek
he a ea
f
i e me i he e
ce i d
a d
de el
he
e
ce
i e eme .
ed
A.D. Le hlea
PRINCIPAL ACTIVITIES
The i ci al ac i i ie f he C m a d i g he c
e
f he fi a cial ea e e mi i g a d e l a i f g ld,
a d
he mi e al a d me al . The e ha bee
ig ifica cha ge i he a e f he e ac i i ie d i g
he fi a cial ea .
RESULTS
The e am
f c
lida ed l
e i
f
he fi a cial ea af e
$3,138,299 (2002 l
$3,416,625).
The a e f affai
f he C m a
a
a
ig ifica cha ge d i g he ea .
f he ec
i c me a
mic
a
N di ide d ha e bee aid b he C m a d i g he
fi a cial ea e ded 31 Decembe 2003,
ha e he
Di ec
ec mme ded ha a di ide d be aid.
REVIEW OF OPERATIONS
SIGNIFICANT CHANGES IN STATE OF
The c
lida ed e i
i
bjec
ig ifica
e i me al eg la i
i
e ec
mi i g a d
e l a i ac i i ie . The e a e deal i h i de ail i he
A
al Re
i he Re ie
f O eai
a d
age
39.
PARTICULARS OF DIRECTORS
Ian Ra mond (Ink ) Cornelius (Chairman)
DIVIDENDS
A e ie
f eai
f he fi a cial ea ,
f
e
ec
hich f m a f hi e
age 3 15 f he A
al Re
.
ENVIRONMENTAL REGULATION
ge he i h
ae e
M C eli , 63, ha had
e 40 ea e e ie ce i
he mi e al a d e le m i d
. He
e
he fi
i e ea
f hi ca ee
i h he We e A
alia
De a me
f Mi e bef e lea i g
ma age hi
e eme c
l i g b i e . Si ce 1976 he ha held
e i
e ec i e
ii
i a
mbe
f
blic
e l ai
a d mi i g c m a ie . I hi ca aci he
ha had e e i e e e ie ce a d
cce
i
he
elec i , ma ageme a d de el me
f de
i
f
ma c mm di ie .
Da id Ian Chalmers
M Chalme , 55, i a ge l gi
a d g ad a e f he
SHARE OPTIONS
O he ha he
blic i
e
i
,
e f he e i i g
i
a e li ed
A
alia S ck E cha ge Limi ed. N
e
e i led e e ci e a
i ha
had, b i e f
he
i , a igh
a ici a e i a
ha e i
e f a
he b d c
a e.
Sig ed i acc da ce i h a e
Di ec
:A
i Be
l i
f he Di ec
k
Da ed a Pe h hi 27 h da
f Feb a
2
STATEMENTS OF FINANCIAL PERFORMANCE For The Year Ended 31
December 2024
CONSOLIDATED PARENT ENTITY
E penses from ordinar acti ities
Admi i
ai
e
e
e (1,401,504) (1,046,794) (1,232,497) (898,243)
A di fee (25,000) (23,000) (25,000) (23,000)
A di
-
he
e ice (13,814) - (6,000)
De ecia i
a d am
C
ed ha e
f
G ld
d ci
C
fa e
E
l ai
P
i i
P
i i
c
(12,609,650)
ld (806,969) (1,289,547) (806,969) (1,289,547)
(3,895,407) (9,134,808) (3,895,407) (9,134,808)
(501,542) (774,701) (263,561) (281,499)
i
f
(141,486) (1,129,946) (136,214) (1,116,689)
ld - (5,958) - -
c
f
i ai
e me
- 25,000 - 25,000
ed ha e
i e
back 923,924 109,136 923,924 109,136 (5,861,798) (13,270,618) (5,441,724)
.
STATEMENTS OF FINANCIAL POSITION
As At 31 December 2003
21
CONSOLIDATED PARENT ENTITY
Note 2003 2002 2003 2002
Current Liabilities
C edi
a db
i g 8 680,902 1,211,154 602,919 1,154,956 Total Current Liabilities 680,902 1,211,154
602,919 1,154,956
Non-current Liabilities
C edi
a db
i g
176,352 115,736 176,352 115,736
Total Non-current Liabilities 176,352 115,736 176,352 115,736
Total Liabilities 857,254 1,326,890 779,271 1,270,692
Net Assets 17,925,397 15,837,090 18,170,068 15,954,860
Equit
C
ib ed e
i
9 35,993,470 30,766,864 35,993,470 30,766,864
Acc m la ed l
e (18,186,492) (15,048,680) (17,823,402) (14,812,004)
T al a e
i ee
O
e i
ide e
i
17,806,978 15,718,184 18,170,068 15,954,860
i ee
i c
lled e i ie 118,419 118,906 - -
Total Equit 17,925,397 15,837,090 18,170,068 15,954,860
STATEMENTS OF CASH FLOWS
For The Year Ended 31 December 2003
22
CONSOLIDATED PARENT ENTITY
Note 2003 2002 2003 2002
$$$$
Cash Flo s from Operating Acti ities
Re
ecei ed 19,877 10,672 19,877 9,535 P ceed f m g ld & il e
11,073,822 Pa me
I ee
lie
ale 3,193,638 11,073,822 3,193,638
(3,475,550) (10,310,233) (3,396,018) (9,820,144) O he i c me 42,532 - 42,532 -
ecei ed 169,467 115,903 162,857 106,643 Net cash from operating acti ities 16 (50,035) 890,164 22,886
1,369,856
Cash Flo s from In esting Acti ities
P ceed
f ale f la ,
e
&e
i me
(70,104) (3,331) P ceed f m ale f i
i
e me
- 2,754 - - P cha e f la ,
e me
l ai
e
e di
&e
i me
(91,326) (30,294)
ec i ie 297,756 971,296 297,756 967,609 Pa me
ec i ie (141,559) (132,349) (159,660) (132,349) Pa me
(2,464,440) E
e
f
l a
f
b idia ie - - (385,902)
e (3,065,895) (3,299,655) (2,731,148) (1,261,743) Net cash pro ided for
in esting acti ities (3,001,024) (2,488,248) (3,049,058) (2,894,254)
Cash Flo s from Financing Acti ities
P ceed f m i
e f ha e a d
(1,958) (207,151) (1,958) Net cash flo
i
5,433,757 204,525 5,433,757 204,525 C
f ha e i
e (207,151)
from financing acti ities 5,226,606 202,567 5,226,606 202,567 Net
increase (decrease) in cash held 2,175,547 (1,395,517) 2,200,434 (1,321,831) Ca h a begi
i g f ea 1,390,657
2,786,174 1,350,271 2,672,102 Cash at the end of the financial ear 15 3,566,204 1,390,657 3,550,705 1,350,27
NOTES TO THE FINANCIAL STATEMENTS For The Year Ended 31
December 2003
23
1. STATEMENT OF ACCOUNTING POLICIES
Thi ge e al
e fi a cial e
ha bee
e a ed i acc da ce i h Acc
i g S a da d ,
he a h i a i e
ceme
f he A
alia
Acc
i g S a da d B a d, U ge I
e G
C
e
Vie
a d he C
ai
Ac , 2001. I
i
e a ed i acc da ce i h he hi
ical c
c
e i , e ce
f
ce ai a e , hich, a
ed, a e a al a i . U le
he i e a ed, he
acc
i g
licie ad ed a e c
i e
ih
h e f he e i
ea .
a) Consolidation
The c
lida ed acc
i c
a e he a e
a d liabili ie
f all e i ie c
lled b Alka e
E l ai
L d ( he C m a ) a a 31 Decembe
2003 a d he e l
f all c
lled e i ie f
he
ea he e ded. Alka e E l a i
Ld a d i
c
lled e i ie a e efe ed
i hi fi a cial
e
a he ec
mic e i . The effec
f all
a ac i
be ee e i ie i he ec
mic e i
a e elimi a ed i f ll. O ide e i i e e
i he
e l a d e i
f c
lled e i ie a e h
e a a el i he c
lida ed
fi a d l
acc
a d bala ce hee e ec i el .
Whe e c
l f a e i i
b ai ed d i g a
fi a cial ea , i
e l
a e i cl ded i
he
c
lida ed
fi a d l
acc
f m he da e
hich c
l c mme ce . Whe e c
l fa e i
cea e d i g a fi a cial ea i e l a e i cl ded
f ha a f he ea d i g hich c
l cea e .
b) Income Ta
Ta effec acc
i g
ced e a e f ll ed
he eb he i c me a e e e i he
fi a d
l
acc
i ma ched i h he acc
i g
fi
af e all i g f
e ma e diffe e ce . The f
e
a be efi ela i g
a l
e i
ca ied
f
ad a a a e
le
he be efi i i all
ce ai
f eali a i . I c me a
c m la i e
imi g diffe e ce i e a ide
he defe ed i c me
a
he f
e i c me a be efi acc
a he
ae
hich a e e ec ed a l he h e imi g
diffe e ce e e e. The c e a a e ha e bee
ed f hi
e.
c) In estments
I e me
i c
ai
he
ha
ela ed
c
ai
a e al ed a he l e
f c
di ec
al a i . Ma ke able ec i ie held a
i e
a e al ed a he l e
f c
e
eali able al e a de e mi ed i e ec f each
ec i h ldi g. Di ide d i c me i ec g i ed i
he
fi a d l
acc
.
d) Cash
F
he
e
f he a eme
f ca h fl
,
ca h i cl de ca h
ha d a d a call de
i
ih
ba k
fi a cial i i i
, e f ba k e d af
a d i e me
i m e ma ke i
me
ma i g i hi le
ha
m h .
e) Depreciation
De ecia i i
ided
la a d e i me a d
i calc la ed
a aigh li e ba i
a
i e ff
he e c
f each a e d i g hei e ec ed
ef l life f 3 ea .
f) Joint entures
The ec
mic e i
a e , liabili ie a d e
ha e bee i c
a ed i
i ae i ee
i
e e
f a j i
e
he fi a cial a eme
he
e
de he a
ia e headi g . Whe e a f a j i
e
e i e e i fa med
i c
ide a i
f he
fa mi ee de aki g
i c f he e e di e
behalf f b h he fa mi ee a d he ec
mic e i
i
he j i
e
e a ea f i e e , e l a i
e e di e i c ed a d ca ied f
ad
i
fa m
c i e
be ca ied f
ad ih
adj me , le
he e m f he fa m
i dica e
ha he al e f he e l a i e e di e ca ied
f
a d i e ce i e ba ed
he dil ed i e e
e ai ed
i i
h gh a
ia e
d
.A
i i
i made
ed ce e l a i e e di e
ca ied f
ad
i
ec e able
a
ia e
am
. A
ca h ecei ed i c
ide a i
f
fa mi g
a
faj i
e
e i e e i ea ed
a a ed c i
i he ca i g al e f he ela ed
mi e al
e .
g) Mineral hedging and trading
Hedgi g i
de ake i
de
a id
mi imi e
ible ad e e fi a cial
ca h fl
effec
f
m eme
i he g ld ice. P emi m ecei ed
c
ai i g
e ei gi
f
a d ale,
i
a d
he de i a i e c
ac i e ded
hedge
ecific f
e
d c i , ge he
ih b e e
eali ed a d
eali ed gai
l
e , a e defe ed
il he hedged
d ci
i deli e ed. I h e
ci c m a ce
he e a hedgi g
a ac i
i
e mi a ed
i
ma i beca e he hedged
d ci i
l ge e ec ed be
d ced, a
e i
l defe ed gai a d l
e a e ec g i ed
i
he
fi a d l
acc
he da e f
e mi a i . If he hedgi g a ac i i e mi a ed
i
i ma i da e a d he hedged a ac i
i
ill e ec ed
cc , defe al f a
gai a d
l
e
hich a e i
e mi a i c i e a d
h e gai
a d l
e a e i cl ded i
he
mea eme
f he hedged a ac i . The g
al e
f he
de l i g de i a i e fi a cial
i
me
e e ed i
f
hedgi g a e
ec g i ed i he fi a cial a eme
NOTES TO THE FINANCIAL CASH FLOW STATEMENT
Inner Posts
Ad al em
al ie a d he mi i g im
ae
acc ed a d cha ged agai
ea i g
he he
liabili
f m
d ci
ale f he mi e al
c
alli e . P fi ba ed
al ie a e acc ed
a
ba i hich ma che he a
al
al e e e i h
he
fi
hich he
al ie a e a e ed (af e
all i g f
e ma e diffe e ce ).
i) In entories
I
e
ie
f b ke
e, c ce a e,
k i
ge
a d me al a e h icall mea ed
e ima ed a d al ed a he l e
f c
a d
ec e able am
( ha i , e eali able al e).
C
a
i e
c m i e
di ec
ma e ial. lab
ai
e e di e i
b i gi g
ie
hei e i i g l ca i a d c di i
a d
ch
.
Rec e able am
i he am
e ima ed
be
b ai ed f m he ale f he i em f i e
i he
mal c
e f b i e , le
a
a ici a ed
c
be i c ed i
i
ale.
j) E ploration e penditure
E e di e
ac i i i , e l a i
a d
e al a i
ela i g
a a ea f i e e i ca ied
f
a d he e igh
e e f he a ea f i e e
a e c e a d;
i) he a ea ha
e e e ;
ii) e
e c mme ciall
ec
e able
l a i a d e al a i ac i i ie a e c i i g
i a a ea f i e e b ha e
e eached a
age hich e mi a ea
able a e me
f
he e i e ce
he i e f ec
micall
ec e able e e e .
A he e d f each fi a cial ea he Di ec
a e
he ca i g al e f he e l a i
e e di e
ca ied f
a d i e ec f each a ea f i e e a d
he e he al e i c
ide ed
be i e ce
f (i)
ab e he al e f he a ea f i e e i
i e d
ided agai .
k) Mine buildings, machiner and equipment
The c
f each i em f b ildi g , machi e a d
e i me i
i e ff e he e ec ed ec
mic
life
a aigh li e me h d. Each i em ec
mic
life ha d e ega d b h
i
h ical life
limi a i
a d
e e
a e me
f
ec
micall
ec e able e e e
f he mi e
e a hich he i em i l ca ed, a d
ible
f
e a ia i
i he e a e me . E ima e f
emai i g
ef l li e a e made
a eg la ba i
f all a e , i h a
al ea e me
f maj
i em a d he c e e ec ed ec
mic life i 4
ea .
The
al e ca i g al e f mi e b ildi g ,
machi e a d e i me a each mi e
e i
e ie ed eg la l a d,
he e e
hich he e
al e e ceed hei
ec e able am
, ha
e ce i f ll
ided agai / i e d
i he
fi a cial ea i
hich hi i de e mi ed.
l) Mine properties
Mi e
e ie e e e
he acc m la i
f all
ac i i i , e l a i , e al a i a d de el me
e e di e i c ed b
behalf f he e i i
ela i
a ea
f i ee i
hich mi i g f a
mi e al e
ce ha c mme ced.
Whe f he de el me e e di e i i c ed i
e ec f a mi e
e af e he c mme ceme
f
d c i , ch e e di e i ca ied f
ada
a
f he c
f ha mi e
e
l
he
b a ial f
e ec
mic be efi a e he eb
e abli hed, he i e
ch e e di e i
ided
f i he ea i
hich i i i c ed.
C
a e am i ed
i al
he de le i
f
ec
micall ec e able e e e . The e ca i g
al e f each mi e
e i e ie ed eg la l
a d,
he e e
hich hi al e e ceed i
ec e able am
ha e ce
i f ll
ided
f / i e
ff i he fi a cial ea i
hich hi i
de e mi ed.
m) Remaining mine life
I e ima i g he emai i g life f a mi e a a mi i g
e f
he
e f am i a i /de ecia i
calc la i
, d e ega d i gi e
he
l me f
emai i g ec
micall ec e able.
DI EC
MEE ING
T e f
C
a
2003 a d
g e
e
be
f
ee g
f
e
d ec
ed d
g e ea e ded 31 Dece be
e
be f ee g a e ded b eac d ec .
N
be
f
ee
g
ed
N be f
Na e, E
ee g a e ded b : H
Fa
a McA ea , a d A
Be
DI EC
INDEMNI IE
D
,L
a A e
g
e f a c a ea , A a e E
a
Ld ad a
e e d ec
a d ec e a
f eC
a
A
a a ba ed c
ed e
e . T e ab e
ed a e c
a d e e e
a
a be c ed
defe d g c
c
a
ceed g
a
a be b g
aga
e ff ce
e ca ac a ff ce
fe
e
e
c
ed e
.
e
a d
C
A EG
E NANCE
T e C
a
e
c
G d
C
ae
G e a ce
Rec
e da
a d dea
A
a Re
.
e CSO P c e
f
a d
Be
P ac ce
age 38 a d 39 f e
S aff a d C
e
ai
Clai
B
ig a
Ag eeme
e bel
f
, hi BIM E ec i
P fe i
Pla i he e i h ad
al De ig Se ice
C
ed a d i c
ac D c me
a ed i
he
.
Ke S akeh lde
O ga i a i
a
Sig a e
Da e
Clie e e e a i e/PM
･･･ Ma ageme
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1/11/2015
The A chi ec
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1/11/2015
The C
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S c al E gi ee
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1/03/2016
MEP E gi ee
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1/03/2016
Age c Re ie
･･･ Age c
Breakdo n of he ann al sec ri
b dge
The acc m a
i g
e f m a
f he e fi a cial
a eme
S TAT E M E N T S O F F I N A N C I A L P E R F O R M A N C E
For The Year Ended 31 December 2003
20
CONSOLIDATED
Note
PARENT ENTITY
2003
2002
2003
2002
$
$
$
$
Revenue from ordinary activities
Rent received
19,877
14,145
19,877
14,145
Sale of Gold
3,190,123
10,254,567
3,190,123
10,254,567
3,515
25,911
3,515
25,911
297,756
967,609
297,756
967,609
from other corporations
169,696
115,903
162,857
106,643
Other revenue
42,532
3,901
42,532
10
3,723,499
11,382,036
3,716,660
11,368,885
(1,401,504)
(1,046,794)
(1,232,497)
(898,243)
(23,000)
Silver sales
Sharetrading revenue
Interest received or due and receivable
Expenses from ordinary activities
Administration expenses
Audit fees
(25,000)
(23,000)
(25,000)
Auditor - other services
(13,814)
-
(6,000)
Depreciation and amortisation
(141,486)
(1,129,946)
(136,214)
(1,116,689)
Cost of quoted shares sold
(806,969)
(1,289,547)
(806,969)
(1,289,547)
(3,895,407)
(9,134,808)
(3,895,407)
(9,134,808)
Cost of assets sold
-
(5,958)
-
-
Exploration costs
(501,542)
(774,701)
(263,561)
(281,499)
-
25,000
-
25,000
Gold production costs
Provision for investments
923,924
109,136
923,924
109,136
(5,861,798)
(13,270,618)
(5,441,724)
(12,609,650)
(1,000,000)
(1,528,043)
(1,286,334)
(2,115,780)
(3,138,299)
(3,416,625)
(3,011,398)
(3,356,545)
Provision for quoted shares written back
Write down in value of tenements purchased by way
of takeover of subsidiary companies in prior years
Profit (loss) from ordinary activities
before income tax
Income tax attributable
-
-
-
-
(3,138,299)
(3,416,625)
(3,011,398)
(3,356,545)
487
647
-
-
2
Profit (loss) after income tax
Minority interests
Profit (loss) after income tax attributable
to members of Alkane Exploration Ltd
(3,137,812)
(3,415,978)
(3,011,398)
(3,356,545)
Accumulated losses at beginning of financial year
(15,048,680)
(11,632,702)
(14,812,004)
(11,455,459)
Accumulated losses at end of financial year
(18,186,492)
(15,048,680)
(17,823,402)
(14,812,004)
($0.02)
($0.03)
($0.02)
$0.03
14
Earnings per share
The accompanying notes form part of these financial statements
A
L
K
A
N
E
E
X
P
L
O
R
A
T
I
O
N
L
T
D
S TAT E M E N T S O F F I N A N C I A L P O S I T I O N
As At 31 December 2003
21
CONSOLIDATED
Note
PARENT ENTITY
2003
2002
2003
2002
$
$
$
$
3,566,204
1,390,657
3,550,705
1,350,271
278,324
650,403
261,607
554,169
Current Assets
Cash
Receivables
3
Inventories
4
635,485
2,597,230
635,485
2,597,230
Investments
5
1,961,794
1,699,040
1,814,892
1,538,277
6,441,807
6,337,330
6,262,689
6,039,947
Total Current Assets
Non-Current Assets
Investments
5
-
-
7,924,109
8,824,542
Property, Plant & Equipment
6
924,523
856,699
622,541
570,667
Other
7
11,416,321
9,969,951
4,140,000
1,790,396
Total Non-Current Assets
12,340,844
10,826,650
12,686,650
11,185,605
Total Assets
18,782,651
17,163,980
18,949,339
17,225,552
680,902
1,211,154
602,919
1,154,956
680,902
1,211,154
602,919
1,154,956
176,352
115,736
176,352
115,736
Current Liabilities
Creditors and borrowings
8
Total Current Liabilities
Non-current Liabilities
Creditors and borrowings
8
Total Non-current Liabilities
176,352
115,736
176,352
115,736
Total Liabilities
857,254
1,326,890
779,271
1,270,692
17,925,397
15,837,090
18,170,068
15,954,860
Net Assets
Equity
35,993,470
30,766,864
35,993,470
30,766,864
Accumulated losses
(18,186,492)
(15,048,680)
(17,823,402)
(14,812,004)
Total parent entity interest
17,806,978
15,718,184
18,170,068
15,954,860
118,419
118,906
-
-
17,925,397
15,837,090
18,170,068
15,954,860
Contributed equity
9
Outside equity interests in controlled entities
Total Equity
The accompanying notes form part of these financial statements
A
N
N
U
A
L
R
E
P
O
R
T
2
0
0
3
S TAT E M E N T S O F C A S H F LO W S
For The Year Ended 31 December 2003
22
CONSOLIDATED
Note
PARENT ENTITY
2003
2002
2003
2002
$
$
$
$
Cash Flows from Operating Activities
19,877
10,672
19,877
9,535
Proceeds from gold & silver sales
3,193,638
11,073,822
3,193,638
11,073,822
Payments to suppliers
(9,820,144)
Rent received
(3,475,550)
(10,310,233)
(3,396,018)
Other income
42,532
-
42,532
-
Interest received
169,467
115,903
162,857
106,643
(50,035)
890,164
22,886
1,369,856
-
2,754
-
-
Net cash from operating activities
16
Cash Flows from Investing Activities
Proceeds of sale of plant, property & equipment
Purchase of plant, property & equipment
(91,326)
(30,294)
(70,104)
(3,331)
Proceeds from sale of investment securities
297,756
971,296
297,756
967,609
Payments for investment securities
(141,559)
(132,349)
(159,660)
(132,349)
Payments for loans to subsidiaries
-
-
(385,902)
(2,464,440)
Exploration expenditure
(3,065,895)
(3,299,655)
(2,731,148)
(1,261,743)
Net cash provided for investing activities
(3,001,024)
(2,488,248)
(3,049,058)
(2,894,254)
Proceeds from issue of shares and options
5,433,757
204,525
5,433,757
204,525
Cost of share issues
(207,151)
(1,958)
(207,151)
(1,958)
Net cash flow from financing activities
5,226,606
202,567
5,226,606
202,567
Net increase (decrease) in cash held
2,175,547
(1,395,517)
2,200,434
(1,321,831)
1,390,657
2,786,174
1,350,271
2,672,102
3,566,204
1,390,657
3,550,705
1,350,271
Cash Flows from Financing Activities
Cash at beginning of year
Cash at the end of the financial year
15
The accompanying notes form part of these financial statements
A
L
K
A
N
E
E
X
P
L
O
R
A
T
I
O
N
L
T
D
NOTES TO THE FINANCIAL STATEMENTS For The Year Ended 31
December 2024
25
1. INCOME TAX
a) P ima facie i c me a e
acc
i g ec cile
i he acc
a f ll
O e a i g P fi (l
eai g
fi (l
e e
e a
he i c me a e
:
e
e
) (3,138,299) (3,416,625) (3,011,398) (3,365,545) I c me a be efi calc la ed a 30% f
) (33% 2002) (941,490) (1,127,862) (903,419) (1,107,660) Add a effec
f e ma e
diffe e ce :
Ta l
a f
e
b gh
acc
e a be efi 941,490 1,127,862 903,419 1,107,660 I c me a a ib able
eai g
fi (l
)-
--b) F
e a be efi .
Ce ai f
e a be efi
ec g i ed a a a e :
A ib able
f hich a e
ha e
bee
a l
e , he be efi
ce ai f
eali a i
a 30% (33% 2002) 7,910,705 7,666,137 7,876,232 7,670,094
c) The be efi ill l be b ai ed if he ec
mic e i
de i e f
e a e able i c me f a a e a d f a
am
fficie
e able he be efi
be eali ed,
c i e
c m l i h he c di i
f ded c ibili
im
ed b a a i legi la i a d he e a e
cha ge
i a legi la i ad e el affec i g he ec
mic e i
i eali i g he be efi
2. RECEIVABLES (Current)
Deb
i cl di g GST ef
d 278,324 650,403 261,607 554,169
3. INVENTORIES
Oe
ck ile a d g ld i ci c i 635,485 2,597,230 635,485 2,597,230
4. INVESTMENTS (Current)
Q
ed ha e a c
1,101,862 1,868,693 1,101,862 1,868,693 Le : P
(1,168,123) (244,199) (1,168,123) Q
Sha e i e i ie li ed
ed ha e a l
e ea ma ke
e
fc
i i
f
dimi
i
(244,199)
ma ke 857,663 700,570 857,663 700,570
- 102,100 - 102,100 Le : P
i i
f
dimi
i
- (102,100) (102,100) - - - -
NOTES TO THE FINANCIAL STATEMENTS For The Year Ended 31
December 2003
26
CONSOLIDATED PARENT ENTITY
2003 2002 2003 2002
$$$$
5. INVESTMENTS (Current) C
Sha e i
i
ed
li ed e i ie
25,000 - 45,000 - 25,000 - 45,000
Le : P
i i
f
dimi
i
(25,000)
(45,000) (25,000) (45,000) - - - -
In estments (Non-current)
Sha e i c
lled e i ie (N e 14) - - 6,115,565 6,115,565
L a
Le : P
i i
f
b idia ie - - 6,014,904 5,629,003
dimi
i
- - (4,206,360) (2,920,026) - 7,924,109 8,824,542
6. PROPERTY, PLANT AND EQUIPMENT
P
e
, la
&e
i me
-a c
1,143,661 1,084,336 759,864 689,761 Le : Acc m la ed de ecia i
(219,138) (227,637) (137,323) (119,094) 924,523 856,699 622,541 570,667
7. OTHER (Non-Current)
E ploration and De elopment E penditure
Peak Hill Mi e de el
me
c
5,563,738
5,462,481
5,563,738
5,462,481
Le : de ecia i
a d am
Peak Hill P jec ac
i ii
i ai
(5,563,738) (5,445,753) (5,563,738) (5,445,753)
a de
l ai
5,668,089 5,662,393 3,537,241 3,531,545
27
8. CREDITORS AND BORROWINGS
(Current Liabilities)
T ade c edi
P
i i
f
314,504 908,724 236,521 873,486 P
ehabili a i
i i
f
325,000 250,000 325,000 250,000 M
a
al lea e 41,398 31,470 41,398 31,470
ehicle lea e liabili
- 20,960 - - 680,902
1,211,154 602,919 1,154,956
(Non-current Liabilities)
P
i i
* Mac
am
f
ed
da c 176,352 115,736 176,352 115,736 176,352 115,736 176,352 115,736
a ie Ba k ha g a a eed e f ma ce b d
f $450,000, hich i ec ed b a f a de
he De a me
f Mi e al Re
i acc
i h Mac a ie Ba k.
ce i NSW f
a
9. SHARE CAPITAL
Mo ements in issued capital
Bala ce a begi
i g
465,000 - - Ve d
i
i
C
f ea 119,418,974 30,813,594 112,817,474 29,169,069 Sha e P cha e Pla 1,421,970
e 300,000 60,000 - - Placeme
15,000,000 4,905,000 6,600,000 1,644,000 E e ci e f
10,734 3,757 1,500 525 Balance at end of ear 131,151,678 36,247,351 119,418,974 30,813,594 Le :
fI
e - (253,881) - (46,730)
As per Statement of Financial Position 131,151,678 35,993,470 119,418,974 30,766,864
The i
e f 300,000 ha e
a e d
a i ela i
ai ed f m he Sha e P cha e Pla a d he Placeme
a d f ge e al
ki g ca i al.
he
cha e f e eme
i
e i
e e ili ed f he he C m a
e
ea . The f d
l ai
jec
NOTES TO THE FINANCIAL STATEMENTS For The Year Ended 31
December 2003
28
PARENT ENTITY
2003 2002
Number $ Number $
9. SHARE CAPITAL C
i
ed
CSO
Options - Listed
E ercisable at 35 cents e piring 31 March 2005
Bala ce a begi
i g f ea 9,801,838 - 9,802,838 - E e ci ed d i g ea (10,734) - (1,500) - Bala ce a a 31
Decembe 2003 9,790,604 - 9,801,338 - Options - Unlisted
E ercisable at 35 cents e piring 31 Ma 2005
I
ed d i g ea - - 3,000,000 - Bala ce a a 31 Decembe 2003 3,000,000 - 3,000,000 E ercisable at 40
cents e piring 24 Ma 2005
I
1)
2)
3)
4)
ed d i g ea - - 500,000 - Bala ce 31 Decembe 2003 500,000 - 500,000 - E ercisable at 45 cents before
10. REMUNERATION OF DIRECTORS
T al i c me ecei ed, d e a d ecei able b he
Di ec
di ec
ela ed c m a ie 1,196,352 1,149,735 1,038,358 941,036 N mbe
em
eai
i hi
he f ll i g ba d :
a) $0 - $9,999
a
b)
$60,000 - $69,999
c)
$80,000 - $89,999
5)
$110,000 - $110,999
6)
$120,000 - $129,999 - - 1 -
7)
$130,000 - $139,999 - 2 - 1
8)
$150,000 - $159,999 1 - 1 -
9)
$170,000 - $179,999 1 - - -
10) $200,000 - $209,999 - - - 1
11) $240,000 - $249,999 1 - 1 12) $390,000 - $399,999 - 1 - 13) $410,000 - $419,999 - 1 - 1
f Di ec
h
e
NOTES TO THE FINANCIAL STATEMENTS December 2024
29
CONSOLIDATED PARENT ENTITY
2003 2002 2003 2002
$$$$
10. REMUNERATION OF DIRECTORS C
i
ed
$420,000 - $429,999 - - 1 - $540,000 - $549,999 1 - - -
Number E ercise price Value at grant E ercise date
11. SEGMENTAL INFORMATION
The ec
mic e i
eae
ed mi a l i
c
i
f mi i g a d e l a i f g ld, diam
e ge g a hic l ca i . The e a i
f he ec
d a d he mi e al i hi A
alia.
mic e i
Year Ended 31 December 2023
32
CONSOLIDATED PARENT ENTITY
2003 2002 2003 2002
$$$$
12. RECONCILIATION OF NET CASH
OUTFLOW FROM OPERATING ACTIVITIES
TO OPERATING LOSS AFTER INCOME TAX
The C m a
ha
c edi
a db
fi a ci g facili ie i
lace
he ha di cl
ed
he
a eme
f fi a cial
ii
.
CONSOLIDATED PARENT ENTITY
2003 2002 2003 2002
13. EARNINGS PER SHARE ( EPS )
Ba ic ea i g
e
ha e (0.02) (0.03) (0.02) (0.03)
NOTES TO THE FINANCIAL STATEMENTS December 2024
33
18. FINANCIAL INSTRUMENTS C
i
ed
(ii) Interest rate risk
The f ll
i g able de ail
he C m a
e
e
i ee
a e i k a a he e
i g da e:
A erage Variable Fi ed Interest Non-interest Total
Interest Interest Rate Maturit Bearing
Rate Rate Less than
I ear
2003 Financial assets
Ca h 4.26 837,648 - 28,555 866,203
Te m de
Sec i
de
i 5.20 2,700,000 - - 2,700,000
i
4.55 846,183 233,698 - 1,079,881
Recei able - - 278,324 278,324 4,383,831 233,698 306,879 4,924,408
Financial liabilities
Acc
a able - (314,504)
(314,504)
(233,698)
(7,625)
4,609,904
2024 Financial assets
Ca h 3.85 1,005,625 - 35,778 1,041,403 Te m de
i 4.50 - 350,000 - 350,000 Sec i
de
i
4.45 - 241,884
14,000 255,884 Recei able 4.15 736,851 - 1,392,989 2,129,840 1,742,476 591,884 1,442,767 3,777,127
Financial liabilities
Acc
a able - - (908,724) (908,724) 1,742,476 591,884 534,043 2,868,403
(iii) Credit risk
C edi i k efe
he i k ha a c
e a
ill defa l
i c
ac al bliga i
e l i g i fi a cial l
he C m a . The C m a
ha ad ed he
lic
f deali g i h c edi
h c
e a ie a d b ai i g
fficie c lla e al
he ec i
he e a
ia e, a a mea
f mi iga i g he i k f fi a cial l
f m
defa l . The C m a mea e c edi i k
a fai al e ba i .
The C m a d e
ha e a
ig ifica c edi i k e
c
e a ie ha i g imila cha ac e i ic .
e
a i gle c
e a
a
g
f
The ca i g am
e e e
he C m a
f fi a cial a e
ma im m e
ec ded i he fi a cial a eme , e f a
e c edi i k i h
aki g acc
f he fai
he ec i
b ai ed.
i i
f l
e ,
al e f a c lla e al
(i ) Net fair alue
The ca i g am
e ec i e e fai
f fi a cial a e a d fi a cial liabili ie ec ded i
al e , de e mi ed i acc da ce i h he acc
i g
he fi a cial a eme
e e e
hei
licie di cl ed i N e 1
he acc
.
--------------------------------------------------------------------------------------------------------------------------------------------------------
DIRECTORS DECLARATION
34
The di ec
a) c m l
decla e ha he fi a cial
i h Acc
i g S a da d , he C
a eme
ai
b) gi e a e a d fai ie
f he c m a
hei e f ma ce, a e e e ed b he e
I
he di ec
i i
a) he fi a cial
a eme
b) he e a e ea
e
Reg la i
e
age 20
a d
a dc
lled e i
l
f hei
eai
ha da e.
33:
he ma da
fe i
al e
i g e
i eme
fi a cial
ii
a d hei ca h fl
a a 31 Decembe 2003 a d f
, f he fi a cial ea e ded
:
a d
able g
a d a able. Thi decla a i
L.A. Colless
Di ec
Pe h, 27 Feb a
a d
2004
d
e a e i acc da ce i h he C
belie e ha he c m a
i made i acc da ce i h a e
ai
ill be able
l i
Ac ; a d
a i
deb
f he Di ec
.
a a d he
he bec me d e
;a d
DIRECTORS' REPORT
a
DIRECTORS BENEFITS
Si ce he e d f he e i
fi a cial ea
Di ec
ha
ecei ed
bec me e i led
ecei e a be efi ( he ha a
be efi i cl ded i
he agg ega e am
f em l me
ecei ed
d e a d ecei able b Di ec
h
i he
acc
f he C m a ) beca e f a c
ac made b he
C m a
a ela ed b d c
a e i h he Di ec
iha
fi m f hich he Di ec i a membe
iha e i i
hich
he Di ec ha a b a ial fi a cial i e e
he ha :
a) c
l i g fee
f $150,000 (2002 $135,000) aid
d e
a able
G ld ek P L d a
ee f
he Le i
f hich M C eli
i a be eficia f
e ice
ided i he
mal c
e fb i e a da
mal
c mme cial a e .
a d
T
b) ge l gical c
l i g a d ma ageme fee
f $541,292
(2002 $398,093) aid
d e a d a able c m a ie i
hich M Chalme ha a b a ial fi a cial i e e f
e ice
ided i he
mal c
e f b i e a da
mal c mme cial a e .
c) admi i a i , acc
i g a d ec e a ial fee f $170,700
(2002 $138,900) aid
d e a d a able a c m a i
hich M C lle
ha a
b a ial fi a cial i e e f
e ice
ided i he
mal c
e f b i e a da
mal c mme cial a e .
d) am
f $206,160 (2002 $417,542) aid
d e a d
a able
G ld eal A e P L d, a c m a i
hich
M Ke ed ha a b a ial fi a cial i e e f
al
a me
f m he Peak Hill G ld Mi e i acc da ce i h
cha e c
ac .
e) am
f $88,200 (2002 $65,200) aid
d e a d
a able
R ck Ri e P L d, a c m a i
hich M
Le hlea ha a b a ial fi a cial i e e , f c
li g
e ice
ided i he
mal c
e f b i e a da
mal c mme cial a e .
INDEPENDENT AUDITORS REPORT
To the Members of Alkane E ploration Ltd
35
SCOPE
We ha e a di ed he fi a cial e
f Alka e E l a i L d ( he C m a ) f he fi a cial ea e ded 31 Decembe
2003 a e
age 20
34. The C m a
di ec
ae e
ible f he fi a cial e
hich i cl de he
fi a cial a eme
f he C m a a d he c
lida ed fi a cial a eme
f he c
lida ed e i c m i i g he
C m a
a d he e i ie i c
lled a he e d f,
d i g, he fi a cial ea . We ha e c d c ed a i de e de
a di f he fi a cial e
i
de
e e a
i i
i
he membe
f he C m a .
O a di ha bee c d c ed i acc da ce i h A
alia A di i g S a da d
ide ea
able a
a ce a
he he he fi a cial e
i f ee f ma e ial mi a eme . O
ced e i cl ded e ami a i ,
a e ba i , f
e ide ce
i g he am
a d he di cl
e i he fi a cial e
, a d he e al a i
f acc
i g licie
a d ig ifica acc
i g e ima e . The e
ced e ha e bee
de ake
f ma
i i a
he he , i all
ma e ial e ec , he fi a cial e
i
e e ed fai l i acc da ce i h Acc
i g S a da d , he ma da
fe i al e
i g e i eme
a d he C
ai
Ac
a
e e a ie
hich i c
i e
ih
de a di g f he C m a
a d he c
lida ed e i
fi a cial
i i , a d e f ma ce a e e e ed b he
e l
f hei
eai
a d hei ca h fl
.
The a di
i i
e
e ed i
hi
e
ha bee f med
he ab
e ba i .
AUDIT OPINION
I
i i
a) he C
he fi a cial e
ai
f he C m a
i i acc da ce i h:-
Ac , i cl di g:
i) gi i g a e a d fai ie
f he C m a
a dc
lida ed e i
fi a cial
a d f hei e f ma ce f he fi a cial ea e ded
ha da e; a d
b)
ii) c m l i g i h Acc
i g S a da d a d he C
he ma da
al e
fe i
Rothsa
Cha e ed Acc
a
G.R. S an
Pa
e
S d e , 27 Feb a
2004
i eme
.
ai
Reg la i
;a d
ii
a a 31 Decembe 2003
SUPPLEMENTARY INFORMATION
Additional information included in accordance
ith Listing Rules of the Australian Stock E change
Limited. 36
1. SHARE HOLDING AT 5 MARCH 2004
ALK
(a) Distribution of Shareholders
Number of Holders
Share holding Full paid ordinar shares
1 - 1,000 2,366
1,001 - 5,000 921
5,001 - 10,000 524
10,001 -100,000 893
100,001 -
e 125
4,829
The e a e 2,474 ha eh lde
V i g igh
ae
e
h h ld le
e e f ll
aid
ha a ma ke able a cel.
di a
ha e
(b) The names of the substantial shareholders sho n in the Compan s Register are:
Shareholder Number of Shares
R ckfield I
e me
L d 11,399,370
Re
e me
T
ce I
Plc 8,500,000
2. TOP TWENTY SHAREHOLDERS AT 5 MARCH 2004
Shareholder Number % Issued of Shares Ca i al
Na i
al N mi ee Limi ed 28,530,903 20.955 HSBC C
G lde M me
Re
L d 4,667,920 3.428 S d e E
Limi ed 3,561,028 2.615 Re
ce Ca i al F
1.263 WHI Sec i ie P
L d 1,550,000 1.138 Lam
0.734 T
ea
C m a
S
P M ga N mi ee A
Ve
alia) Limi ed 8,600,177 6.316
ce L d 5,085,804 3.735 Eik fi BVBA 5,000,000 3.672 ANZ N mi ee Limi ed 4,990,128
3.665 NEFCO N mi ee P
P
d N mi ee (A
ai
i ie P
Limi ed 4,100,000 3.011 Ci ic
L d 1,720,739
ac P
NV 1,000,000
L d 1,400,000 1.028 C
ha C
Se ice L d 991,000 0.727 Ta ma A e Ma ageme
alia Limi ed 892,232 0.655 M N el Ch i
e Limi ed 858,000 0.630 B
N mi ee
d III LP 2,440,000 1.792 L ck le H ldi g P
chae & C 827,532 0.607 Leefab P
ai
L d 911,556 0.669 J
he S i k 883,214 0.648 M
da ce
L d 677,290 0.497 78,687,523 57.780
SUPPLEMENTARY INFORMATION
37
3. OPTION HOLDING AT 5 MARCH 2004
ALKOB
Distribution of Option holders
Number of Holders
Option holding Options
1 - 1,000 493
1,001 - 5,000 262
5,001 - 10,000 23
10,001 -100,000 92
100,001 -
e 21
891
O i
a e e e ci able a 35 ce
each e
i i g 31 Ma ch 2005
4. TOP TWENTY OPTION HOLDERS AT 5 MARCH 2004
Option holder Number
of Options % Issued
Na i
al N mi ee Limi ed 728,693 7.442 B e ed P
Richa d Mi chell Dim
G
di a P
P
d&M
De i e R
l
Dim
L d 350,000 3.574 H lde N mi ee P
L d 208,400 2.128 Sme P
L d 578,393 5.907 M Pe e C
d 400,000 4.085 M N el Ch i
L d 250,000 2.553 Chi
L d 200,000 2.042 B mac P
ell P
T
C m a
ald McD
gall & M
El a Ma
McD
S
ea
ai
L
g P
L d 105,000 1.072 Telic Alca el (A
he S i k 374,974 3.829
L d 250,000 2.553 Lam
L d 200,000 2.042 M B ia A h
200,000 2.042 ANZ N mi ee Limi ed 168,407 1.720 M J h C li Whela & M
1.685 M H gh D
ell 400,000 4.085 M
gall 149,911 1.531 B A C
Se ice L d 135,329 1.382 R M Dim
alia) P
d&A
C
ac
a
Ca l R
e Whela 165,000
a P
L d 140,000 1.429
cia e P
L d 116,000 1.184
L d 105,000 1.072 5,225,107 53.357
SUPPLEMENTARY INFORMATION
38
Option Holding at 5 March 2024 - CSO
T al
i
e e ci able a 35 ce
N mbe
f h lde
H ldi g
f m e ha 20%
G ld ek P
L d 1,000,000
Mi e al Admi i
Leefab P
each e
i i g 31 Ma 2005 3,000,000
3
ai
Se ice P
L d 1,000,000
L d 1,000,000
Option Holding at 5 March 2024
CISO
T al
each e
i
e e ci able a 40 ce
N mbe
f h lde
H ldi g
f m e ha 20%
TW & J Ra
2
ed (The Ra
R ck Ri e P
i i g 24 Ma 2007 500,000
ed Famil Acc
) 250,000
L d 250,000
Option Holding at 5 March 2024 - CSO
T al
i
e e ci able a 45 ce
each
bef e 24 Ma 2004;
a 50 ce
be ee 25 Ma 2004 & 24 Ma 2006;
a 60 ce
be ee 25 Ma 2006 & he e
N mbe
f h lde
H ldi g
f m e ha 20%
G ld ek P
L d 1,000,000
Mi e al Admi i
Leefab P
S
d
da e 24 Ma 2007 4,750,000
5
ai
Se ice P
L d 1,000,000
L d 1,000,000
e I e ai
al L d 1,000,000
Option Holding at 5 March 2024
CSO
T al
each e
i
i
e e ci able a 45 ce
N mbe
f h lde
H ldi g
f m e ha 20%
GR Mea e & A
i i g 29 Ma 2008 975,000
9
cia e P
L d 250,000
5. RESTRICTED SECURITIES
A a he da e f hi
E cha ge Limi ed.
e
, he e e e
ec i ie
bjec
e
ic i
de he Li i g R le
fA
alia S ck
6. CORPORATE GOVERNANCE STATEMENT
The Di ec
f Alka e E l a i L d a i e
Be P ac ice Rec mme da i
c
ide ed a
A e la a i
f he ci c m a ce
he ASX Rec mme da i
ae e
c m l i h ASX P i ci le f G d C
aeG
ia e
he C m a
ci c m a ce .
he e he C m a
bel .
mai c
aeg
e a ce
e a ce a d
ac ice diffe
h
ei
Recommendation 2
BOARD OF DIRECTORS
The B a d f Di ec
ake
f ll i g b ad i ci le :
l ima e e
ibili
f
c
aeg
e a ce a d
e a e i acc da ce i h he
The B a d c m i e 5 di ec
. The Chai ma i e ec i e a d ha a l g a
cia i
i h he C m a . The
Fi a ce Di ec
i e
ible f
he acc
i g, admi i a i , fi a cial a d c m a
ec e a ial a ea a d ha
al had a l g a
cia i
i h he C m a . The Tech ical Di ec i e
ible f all ech ical a d ge l gical
a ea f he C m a a d ha al bee
SUPPLEMENTARY INFORMATION
39
a
cia ed i h he C m a f a l g e i d. N e f he e ec i e di ec
a e f ll- ime em l ee b
ide
hei e ice h gh hei
eciali c
l i g fi m . T
he di ec
ae
-e ec i e, a d ha e e e i e
e e ie ce i h he ech ical a d fi a cial a ec
f he C m a . The al ha e a cl e affi i
i h he b i e
f he C m a . The B a d c
ide i i be
ac ice a d i he be i e e
f all ha eh lde f
e
elec ed
he B a d
make ig ifica c
ib i
he C m a
a d i
ha eh lde . The B a d d
c
ide he C m a
be f a i e
a a f he
-e ec i e di ec
,
d he c
ide i ei he
ec
mic
g d ac ice
e a d he B a d j
f
he
e f c me ic . I i a i ci le f he C m a
f i B ad c m i e e
h ha e a ecific i e e i he C m a a d i i f
e.
De ail
f he di ec
ae e
i
he Di ec
Di ec
a e i i iall a
i ed b he f ll B a d,
e-elec i b
a i i acc da ce i h a
Re
de he headi g Pa ic la
bjec
elec i
eg la i
.
b
ha eh lde
f Di ec
a he e
.
ge e al mee i g a d
The C m a belie e ha he
c e f he B a d f hi C m a i
ch ha i achie e P i ci le 2, S c e
f he B a d Add Val e, i
i e f he fac ha a maj i
f he B a d d e
c m i e i de e de di ec
.I
i f he he i i
f he B a d, ha i
de f
he B a d
add al e, he Chai ma h ld de e him elf
he C m a
a e ec i e ba i a d
a a - ime ba i . The C m a d e
c
ide ha a mi a i
c mmi ee i j ified a he h le B a d ca ie
ha a k.
NON-EXECUTIVE DIRECTORS
The e f ma ce f
-e ec i e di ec
i e ie ed b he Chai ma
a
g i g ba i . N -e ec i e
di ec
a e e ec ed
e d a lea 20 da a ea e a i g f , a d a e di g, B a d mee i g a d a
cia ed
ac i i ie .
INDEPENDENT PROFESSIONAL ADVICE
Di ec
ha e he igh , i c
ec i
fe i al ad ice a he C m a
ea
abl i hheld.
e
i h hei d ie a d e
ibili ie a di ec
e e. P i a
al f he Chai ma i e
,
eek i de e de
i ed, hich ill
be
Recommendation 4
The C m a ha a a di c mmi ee ha c m i e he
-e ec i e di ec
f he B a d. The C m a
c
ide
hi i a a
ia e
c e
achie e he i ci le
f ec mme da i
4, i hi he a
ia e
ec
mic b
da ie a d i h
i e fe i g i h he i eg i
f he i ci le . The B a d ha gi e he a di
c mmi ee all he
e ha he c mmi ee c
ide
ece a
ca
i a k, i cl di g igh f acce
all
ma ageme , all b k a d ec d a d
he a di
.I i
c
ide ed ece a f a f mal cha e
be
d ced.
The a di c mmi ee c m i e M A.D. Le hlea , Chai ma a d M H.D. Ke
a e i cl ded i he Di ec
Re
.
ed . Q alifica i
f he e di ec
Recommendation 8
A e f ma ce e al a i
i c
d c ed b
he h le B a d
ac
i
i g ba i .
7. ENVIRONMENTAL REGULATION
The c
lida ed e i
a d mi i g ac i i ie a
i
bjec
e
bel
ig ifica
e
i
me al eg la i
i
e
ec
fi
de el
me , c
ci
.
Mining
D i g he ea he e e e i ad e e mi
b eache
f he e i eme
ela i g
ce ai e i me al
e ic i
a he C m a
mi e i e e a i
a Peak Hill, NSW. Ma ageme ha bee
ki g i h he Ne
S h Wale E i me P ec i
A h i
c
a l m i
a d ec if
ced e
e
e c m lia ce
i h he eg la
e i eme . The C m a em l
a f ll ime e i me al ma age a he i e.
E ploration
The C m a i
bjec
a e l a i ac i i
ea .
e
h
i me al c
l a d e
e e eme . N b eache
ic i
fa
e
i
all i mi e al e l a i
e eme
ela i g
me al e ic i
e e ec ded d i g he
General
The c
mai ai
lida ed e i a
ha a da d.
ie
he highe
a da d
fe
i
me al ma ageme
a di
i
all i
aff
Contact:
Sea S e gle
JD e@ABC-C m a .c
c. 908.000.0000
. 732.000.0000
Financial Information: F di g S age: Ea l
Ca i al Seeki g: $750,000 U e f P ceed : Sale & Ma ke i g
Ac i i ie
Technolog :
C m le ed cial e
k i cl di g membe hi le el ,
ma ke i g/ad e i i g e gi e a d medical da a e ie al f 70M
E c
i i lace a d da aba e ec d f 1.2 milli US d c
hich
da e m hl .
e .
Report of Independent Registered Public Accounting Firm
To the Trustees of Putnam Asset Allocation Funds and Shareholders
of Putnam Dynamic Asset Allocation Balanced Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio, and the related statements of operations and
of changes in net assets and the financial highlights present fairly, in
all material respects, the financial position of Putnam Dynamic Asset
Allocation Balanced Fund (the “fund”) at September 30, 2013, and
the results of its operations, the changes in its net assets and the
financial highlights for each of the periods indicated, in conformity
with accounting principles generally accepted in the United States
of America. These financial statements and financial highlights
(hereafter referred to as “financial statements”) are the responsibility
of the fund’s management. Our responsibility is to express an opinion
on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards
of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the
overall financial statement presentation. We believe that our audits,
which included confirmation of investments owned at September 30,
2013 by correspondence with the custodian, brokers, and transfer
agent, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 12, 2013
SAI_6-2014/03
SAI_6-2014/01
24 Dynamic Asset Allocation Balanced Fund
Key to holding’s abbreviations
ADR
American Depository Receipts: represents ownership of foreign securities on deposit with a
custodian bank
BKNT
Bank Note
ETF
Exchange Traded Fund
FRB
Floating Rate Bonds: the rate shown is the current interest rate at the close of the reporting period
FRN
Floating Rate Notes: the rate shown is the current interest rate at the close of the reporting period
GDR
Global Depository Receipts: represents ownership of foreign securities on deposit with a
custodian bank
GMTN
Global Medium Term Notes
G.O. Bonds General Obligation Bonds
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.
IO
Interest Only
MTN
Medium Term Notes
NPR
Nil Paid Rights
NVDR
Non-voting Depository Receipt
OAO
Open Joint Stock Company
OJSC
Open Joint Stock Company
PO
Principal Only
SPDR
S&P Depository Receipts
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 October 1, 2012 through September 30, 2013 (the reporting period). Within the following notes to the
portfolio, references to “ASC 820” represent Accounting Standards Codification 820 Fair Value Measurements and
Disclosures and references to “OTC”, if any, represent over-the-counter.
* Percentages indicated are based on net assets of $1,331,128,130.
† Non-income-producing security.
66 Security is restricted with regard to public resale. The total market value of this security and any other restricted
securities (excluding 144A securities), if any, held at the close of the reporting period was $61,628, or less than
0.1% of net assets.
‡‡ Income may be received in cash or additional securities at the discretion of the issuer.
# 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.
6 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.
§ 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.
## Forward commitment, in part or in entirety (Note 1).
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 6).
d
Affiliated company. See Note 1 to the financial statements regarding securities lending. The rate quoted in the
security description is the annualized 7-day yield of the fund at the close of the reporting period.
SAI_6-2014/03
SAI_6-2014/01
82 Dynamic Asset Allocation Balanced Fund
F
Is valued at fair value following procedures approved by the Trustees. Securities may be classified as Level 2
or Level 3 for ASC 820 based on the securities’ valuation inputs.
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
Security was pledged, or purchased with cash that was pledged, to the fund for collateral on certain derivatives
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.
S
Security on loan, in part or in entirety, at the close of the reporting period (Note 1).
UR
At the reporting period end, 1,000 shares owned by the fund were not formally entered on the company’s
shareholder register, due to local restrictions on foreign ownership. While the fund has full title to these unregistered
shares, these shares do not carry voting rights and, until 2014, are not eligible for receipt of dividends.
At the close of the reporting period, the fund maintained liquid assets totaling $350,404,400 to cover certain
derivatives contracts and delayed delivery securities.
Debt obligations are considered secured unless otherwise indicated.
144A after the name of an issuer represents securities exempt from registration under Rule 144A under 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’s.
The dates shown on debt obligations are the original maturity dates.
FORWARD CURRENCY CONTRACTS at 9/30/13 (aggregate face value $237,927,019)
Counterparty
Currency
Contract
type
Delivery
date
Value
Aggregate
face value
Unrealized
appreciation/
(depreciation)
Bank of America N.A.
Australian Dollar
Buy
10/18/13
$2,618,974
$2,563,657
$55,317
Australian Dollar
Sell
10/18/13
2,618,974
2,533,514
(85,460)
Singapore Dollar
Sell
11/20/13
2,217,764
2,179,765
(37,999)
Swiss Franc
Sell
12/18/13
1,357,329
1,309,623
(47,706)
Australian Dollar
Sell
10/18/13
60,481
2,052
(58,429)
Brazilian Real
Buy
10/18/13
1,225,494
1,228,599
(3,105)
Brazilian Real
Sell
10/18/13
1,225,494
1,220,521
(4,973)
British Pound
Sell
12/18/13
9,011,884
8,774,343
(237,541)
Canadian Dollar
Sell
10/18/13
358,475
346,619
(11,856)
Euro
Sell
12/18/13
1,471,791
1,461,865
(9,926)
Hong Kong Dollar
Sell
11/20/13
1,207,283
1,207,602
319
Hungarian Forint
Buy
12/18/13
1,221,771
1,225,459
(3,688)
Japanese Yen
Sell
11/20/13
1,347,038
1,361,920
14,882
Barclays Bank PLC
Mexican Peso
Buy
10/18/13
793,493
807,905
(14,412)
Norwegian Krone
Buy
12/18/13
51,969
40,602
11,367
Singapore Dollar
Buy
11/20/13
1,179,151
1,180,085
(934)
Swedish Krona
Buy
12/18/13
111,353
108,050
3,303
Swiss Franc
Sell
12/18/13
1,384,770
1,336,210
(48,560)
Australian Dollar
Buy
10/18/13
1,980,329
1,979,472
857
Australian Dollar
Sell
10/18/13
1,980,329
1,926,762
(53,567)
Citibank, N.A.
SAI_6-2014/03
SAI_6-2014/01
Dynamic Asset Allocation Balanced Fund 83
FORWARD CURRENCY CONTRACTS at 9/30/13 (aggregate face value $237,927,019) cont.
Counterparty
Currency
Contract
type
Delivery
date
Value
Aggregate
face value
Unrealized
appreciation/
(depreciation)
Citibank, N.A. cont.
Brazilian Real
Buy
10/18/13
$405,396
$409,025
$(3,629)
Brazilian Real
Sell
10/18/13
405,396
403,264
(2,132)
British Pound
Buy
12/18/13
49,349
48,906
443
British Pound
Sell
12/18/13
49,349
49,365
16
Canadian Dollar
Buy
10/18/13
1,324,434
1,332,275
(7,841)
Canadian Dollar
Sell
10/18/13
1,324,434
1,309,318
(15,116)
Danish Krone
Sell
12/18/13
1,432,998
1,447,660
14,662
Euro
Buy
12/18/13
1,377,208
1,348,002
29,206
Euro
Sell
12/18/13
1,377,208
1,377,949
741
Japanese Yen
Buy
11/20/13
2,639,054
2,653,555
(14,501)
Japanese Yen
Sell
11/20/13
2,639,054
2,629,394
(9,660)
New Taiwan Dollar
Buy
11/20/13
1,991,511
2,003,236
(11,725)
Swiss Franc
Sell
12/18/13
1,445,074
1,348,303
(96,771)
Australian Dollar
Buy
10/18/13
10,613,727
10,303,651
310,076
Australian Dollar
Sell
10/18/13
10,613,727
10,436,599
(177,128)
British Pound
Sell
12/18/13
3,610,708
3,448,505
(162,203)
Canadian Dollar
Sell
10/18/13
543,922
534,318
(9,604)
Czech Koruna
Buy
12/18/13
826,346
814,428
11,918
Czech Koruna
Sell
12/18/13
826,346
801,037
(25,309)
Euro
Buy
12/18/13
4,083,858
3,976,135
107,723
Euro
Sell
12/18/13
4,083,858
4,062,354
(21,504)
Japanese Yen
Sell
11/20/13
7,370,962
7,318,211
(52,751)
Mexican Peso
Buy
10/18/13
345,263
363,723
(18,460)
Credit Suisse International
New Zealand Dollar
Sell
10/18/13
1,188,553
1,112,178
(76,375)
Norwegian Krone
Sell
12/18/13
922,379
901,243
(21,136)
South African Rand
Buy
10/18/13
2,401,458
2,418,838
(17,380)
South African Rand
Sell
10/18/13
2,401,458
2,389,995
(11,463)
South Korean Won
Buy
11/20/13
1,597,132
1,601,860
(4,728)
Swedish Krona
Buy
12/18/13
1,319,075
1,279,900
39,175
Swiss Franc
Sell
12/18/13
4,740,749
4,574,086
(166,663)
Australian Dollar
Buy
10/18/13
158,892
357,666
(198,774)
British Pound
Sell
12/18/13
8,413
4,419
(3,994)
Canadian Dollar
Sell
10/18/13
475,605
486,171
10,566
Euro
Sell
12/18/13
6,925,549
6,899,142
(26,407)
Japanese Yen
Buy
11/20/13
1,312,111
1,310,393
1,718
Japanese Yen
Sell
11/20/13
1,312,111
1,298,463
(13,648)
Norwegian Krone
Buy
12/18/13
1,316,509
1,361,655
(45,146)
Swiss Franc
Sell
12/18/13
1,305,546
1,255,787
(49,759)
Australian Dollar
Buy
10/18/13
1,284,092
1,329,442
(45,350)
British Pound
Buy
12/18/13
1,348,433
SAI_6-2014/03
SAI_6-2014/01
1,324,468
23,965
Deutsche Bank AG
Goldman Sachs International
84 Dynamic Asset Allocation Balanced Fund
FORWARD CURRENCY CONTRACTS at 9/30/13 (aggregate face value $237,927,019) cont.
Counterparty
Currency
Contract
type
Delivery
date
Value
Aggregate
face value
Unrealized
appreciation/
(depreciation)
Goldman Sachs International cont.
British Pound
Sell
12/18/13
$1,348,433
$1,295,820
$(52,613)
Canadian Dollar
Sell
10/18/13
1,341,028
1,331,776
(9,252)
Euro
Sell
12/18/13
27,062
21,307
(5,755)
Japanese Yen
Sell
11/20/13
3,943,964
3,981,382
37,418
HSBC Bank USA, National Association
Australian Dollar
Buy
10/18/13
1,330,036
1,295,644
34,392
Australian Dollar
Sell
10/18/13
1,330,036
1,296,069
(33,967)
Canadian Dollar
Sell
10/18/13
1,294,254
1,264,145
(30,109)
Chinese Yuan
(offshore)
Sell
11/20/13
2,352,543
2,335,111
Euro
Buy
(17,432)
12/18/13
1,345,139
1,310,331
34,808
Euro
Sell
12/18/13
1,345,139
1,327,374
(17,765)
Japanese Yen
Sell
11/20/13
2,782,143
2,812,886
30,743
New Taiwan Dollar
Buy
11/20/13
1,991,514
2,000,453
(8,939)
Swedish Krona
Buy
12/18/13
129,014
125,176
3,838
Australian Dollar
Buy
10/18/13
1,343,269
1,367,796
(24,527)
Brazilian Real
Buy
10/18/13
1,084,488
1,041,225
43,263
Brazilian Real
Sell
10/18/13
1,084,488
1,038,398
(46,090)
British Pound
Sell
12/18/13
1,440,335
1,368,167
(72,168)
Canadian Dollar
Sell
10/18/13
633,201
632,367
(834)
Czech Koruna
Buy
12/18/13
826,341
814,363
11,978
Czech Koruna
Sell
12/18/13
826,341
800,950
(25,391)
Euro
Sell
12/18/13
5,773,231
5,605,789
(167,442)
Japanese Yen
Sell
11/20/13
4,102
43,242
39,140
Malaysian Ringgit
Buy
11/20/13
3,161,986
3,241,624
(79,638)
Malaysian Ringgit
Sell
11/20/13
3,161,986
3,133,333
(28,653)
Mexican Peso
Buy
10/18/13
569,965
568,353
1,612
Norwegian Krone
Buy
12/18/13
132,891
140,902
(8,011)
Polish Zloty
Buy
12/18/13
1,193,342
1,186,798
6,544
Singapore Dollar
Sell
11/20/13
479,568
447,862
(31,706)
South African Rand
Buy
10/18/13
2,401,816
2,422,852
(21,036)
JPMorgan Chase Bank N.A.
South African Rand
Sell
10/18/13
2,401,816
2,390,755
(11,061)
South Korean Won
Buy
11/20/13
798,566
792,415
6,151
Swedish Krona
Buy
12/18/13
600,987
585,329
15,658
Swiss Franc
Buy
12/18/13
1,341,064
1,331,049
10,015
Swiss Franc
Sell
12/18/13
1,354,453
1,310,277
(44,176)
Royal Bank of Scotland PLC (The)
Australian Dollar
Buy
10/18/13
1,314,100
1,349,858
(35,758)
Euro
Sell
12/18/13
1,751,210
1,684,220
(66,990)
Hungarian Forint
Buy
12/18/13
1,221,771
1,225,631
(3,860)
Japanese Yen
Sell
11/20/13
1,346,972
1,321,066
(25,906)
SAI_6-2014/03
SAI_6-2014/01
Dynamic Asset Allocation Balanced Fund 85
FORWARD CURRENCY CONTRACTS at 9/30/13 (aggregate face value $237,927,019) cont.
Counterparty
Currency
Contract
type
Delivery
date
Value
Aggregate
face value
Unrealized
appreciation/
(depreciation)
State Street Bank and Trust Co.
Australian Dollar
Buy
10/18/13
$970,594
$992,982
$(22,388)
Brazilian Real
Buy
10/18/13
1,871,638
1,828,184
43,454
Brazilian Real
Sell
10/18/13
1,871,638
1,826,178
(45,460)
Canadian Dollar
Sell
10/18/13
198,743
204,374
5,631
Czech Koruna
Buy
12/18/13
826,341
814,402
11,939
Czech Koruna
Sell
12/18/13
826,341
801,531
(24,810)
Euro
Buy
12/18/13
1,336,479
1,359,639
(23,160)
Mexican Peso
Buy
10/18/13
755,568
762,162
(6,594)
Norwegian Krone
Buy
12/18/13
1,310,904
1,285,264
25,640
Singapore Dollar
Sell
11/20/13
1,311,559
1,264,851
(46,708)
South Korean Won
Buy
11/20/13
1,597,132
1,579,596
17,536
Swedish Krona
Buy
12/18/13
38,164
37,006
1,158
Swiss Franc
Sell
12/18/13
1,384,770
1,331,794
(52,976)
Australian Dollar
Sell
10/18/13
1,750,983
1,548,616
(202,367)
British Pound
Sell
12/18/13
4,922,736
4,732,856
(189,880)
Canadian Dollar
Sell
10/18/13
2,083,500
2,051,692
(31,808)
Euro
Buy
12/18/13
4,068,026
3,968,099
99,927
Euro
Sell
12/18/13
4,068,026
4,043,008
(25,018)
Japanese Yen
Sell
11/20/13
133,221
99,501
(33,720)
UBS AG
Mexican Peso
Buy
10/18/13
153,459
173,177
(19,718)
New Zealand Dollar
Buy
10/18/13
1,412,143
1,320,763
91,380
New Zealand Dollar
Sell
10/18/13
1,412,143
1,338,120
(74,023)
Norwegian Krone
Buy
12/18/13
34,823
54,280
(19,457)
Singapore Dollar
Sell
11/20/13
120,132
98,007
(22,125)
Swedish Krona
Buy
12/18/13
1,332,215
1,292,313
39,902
Swiss Franc
Sell
12/18/13
2,786,249
2,679,468
(106,781)
Turkish Lira
Buy
12/18/13
1,181,874
1,221,671
(39,797)
Turkish Lira
Sell
12/18/13
1,181,874
1,198,402
16,528
Australian Dollar
Buy
10/18/13
734,352
808,231
(73,879)
Canadian Dollar
Buy
10/18/13
696,667
698,129
(1,462)
Canadian Dollar
Sell
10/18/13
696,667
681,948
(14,719)
Euro
Sell
12/18/13
13,620,256
13,272,270
(347,986)
Japanese Yen
Sell
11/20/13
5,190,428
5,196,866
WestPac Banking Corp.
Total
SAI_6-2014/03
SAI_6-2014/01
86 Dynamic Asset Allocation Balanced Fund
6,438
$(2,949,881)
FUTURES CONTRACTS OUTSTANDING at 9/30/13
Number of
contracts
Value
573
$22,317,528
Euro STOXX 50 Index (Short)
Expiration
date
Dec-13
Unrealized
appreciation/
(depreciation)
$(21,318)
FTSE 100 Index (Short)
125
13,010,905
Dec-13
373,005
MSCI EAFE Index Mini (Long)
138
12,524,880
Dec-13
(126,686)
OMXS 30 Index (Short)
129
2,529,638
Oct-13
31,995
Russell 2000 Index Mini (Short)
217
23,249,380
Dec-13
(421,414)
S&P 500 Index (Long)
24
10,045,800
Dec-13
(44,740)
S&P 500 Index E-Mini (Long)
1,232
103,136,880
Dec-13
(489,104)
S&P 500 Index E-Mini (Short)
316
26,453,940
Dec-13
124,188
S&P Mid Cap 400 Index
E-Mini (Long)
197
24,439,820
Dec-13
240,346
SPI 200 Index (Long)
115
14,008,546
Dec-13
(38,032)
SPI 200 Index (Short)
20
2,436,269
Dec-13
5,595
Tokyo Price Index (Short)
62
7,546,976
Dec-13
(132,742)
U.S. Treasury Bond 30 yr (Long)
104
13,871,000
Dec-13
309,365
U.S. Treasury Bond 30 yr (Short)
2
266,750
Dec-13
(5,105)
U.S. Treasury Bond Ultra
30 yr (Long)
62
8,809,813
Dec-13
202,657
U.S. Treasury Note 2 yr (Long)
207
45,594,985
Dec-13
133,623
U.S. Treasury Note 2 yr (Short)
151
33,260,110
Dec-13
(97,021)
U.S. Treasury Note 5 yr (Long)
452
54,713,188
Dec-13
777,618
U.S. Treasury Note 5 yr (Short)
13
1,573,609
Dec-13
(19,876)
U.S. Treasury Note 10 yr (Long)
173
21,865,578
Dec-13
474,070
U.S. Treasury Note 10 yr (Short)
42
5,308,406
Dec-13
(116,363)
Total
$1,160,061
TBA SALE COMMITMENTS OUTSTANDING at 9/30/13 (proceeds receivable $39,379,219)
Principal
Settlement
Agency
amount
date
Federal National Mortgage Association, 6s,
October 1, 2043
Total
$36,000,000
10/10/13
Value
$39,379,219
$39,379,219
OTC INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/13
Swap counterparty/
Notional amount
Payments
Upfront
premium Termination made by
received (paid)
date fund per annum
Payments
received by
fund per annum
Barclays Bank PLC
GBP
2,430,000
$—
8/15/31 3.6%
6 month GBPLIBOR-BBA
Goldman Sachs International
GBP
2,430,000
—
9/23/31 6 month GBPLIBOR-BBA
3.1175%
Total
$—
Unrealized
depreciation
$(244,096)
(44,177)
$(288,273)
SAI_6-2014/03
SAI_6-2014/01
Dynamic Asset Allocation Balanced Fund 87
CENTRALLY CLEARED INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/13
Notional amount
Payments
received by
fund per annum
Unrealized
appreciation/
(depreciation)
$88,982,900 E
$37,983
12/18/15 3 month USDLIBOR-BBA
0.75%
$(149,711)
38,838,400 E
50,610
12/18/18 3 month USDLIBOR-BBA
2.05%
(12,107)
7,748,700 E
74,846
12/18/43 3 month USDLIBOR-BBA
3.85%
181,537
20,225,700 E
(15,081)
12/18/23 3 month USDLIBOR-BBA
3.15%
(363,974)
Total
E
Payments
Upfront
premium Termination made by
received (paid)
date fund per annum
$148,358
$(344,255)
Extended effective date.
OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/13
Swap counterparty/
Notional amount
Payments
Upfront
premium Termination received (paid) by
received (paid)
date fund per annum
Total return
received by
or paid by fund
Unrealized
appreciation/
(depreciation)
Bank of America N.A.
$298,279
$—
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
$(7,035)
Barclays Bank PLC
96,509
—
1/12/42 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(1,442)
4,285,831
—
1/12/41 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(66,721)
896,259
—
1/12/41 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(13,953)
11,770
—
1/12/38 6.50% (1 month
USD-LIBOR)
Synthetic TRS Index
6.50% 30 year Fannie
Mae pools
(52)
64,362
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(506)
36,084
—
1/12/41 5.00% (1 month
USD-LIBOR)
Synthetic MBX Index
5.00% 30 year Fannie
Mae pools
362
524,227
—
1/12/41 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(8,161)
85,718
—
1/12/40 5.00% (1 month
USD-LIBOR)
Synthetic MBX Index
5.00% 30 year Fannie
Mae pools
807
642,046
—
1/12/40 4.50% (1 month
USD-LIBOR)
Synthetic MBX Index
4.50% 30 year Fannie
Mae pools
10,489
SAI_6-2014/03
SAI_6-2014/01
88 Dynamic Asset Allocation Balanced Fund
OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/13 cont.
Swap counterparty/
Notional amount
Payments
Upfront
premium Termination received (paid) by
received (paid)
date fund per annum
Total return
received by
or paid by fund
Unrealized
appreciation/
(depreciation)
Barclays Bank PLC cont.
$1,357,284
$—
1/12/41 5.00% (1 month
USD-LIBOR)
Synthetic MBX Index
5.00% 30 year Fannie
Mae pools
$13,620
816,020
—
1/12/41 5.00% (1 month
USD-LIBOR)
Synthetic MBX Index
5.00% 30 year Fannie
Mae pools
8,189
144,310
—
1/12/40 5.00% (1 month
USD-LIBOR)
Synthetic MBX Index
5.00% 30 year Fannie
Mae pools
1,358
468,376
—
1/12/40 5.00% (1 month
USD-LIBOR)
Synthetic MBX Index
5.00% 30 year Fannie
Mae pools
4,407
339,618
—
1/12/40 5.00% (1 month
USD-LIBOR)
Synthetic MBX Index
5.00% 30 year Fannie
Mae pools
3,196
10,716
—
1/12/39 (6.00%) 1 month
USD-LIBOR
Synthetic MBX Index
6.00% 30 year Fannie
Mae pools
(18)
11,270
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(89)
680,429
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(5,346)
370,626
—
1/12/39 (6.00%) 1 month
USD-LIBOR
Synthetic MBX Index
6.00% 30 year Fannie
Mae pools
(614)
485,967
—
1/12/38 6.50% (1 month
USD-LIBOR)
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
3,818
264,770
—
1/12/39 6.00% (1 month
USD-LIBOR)
Synthetic MBX Index
6.00% 30 year Fannie
Mae pools
438
102,948
—
1/12/39 (5.50%) 1 month
USD-LIBOR
Synthetic MBX Index
5.50% 30 year Fannie
Mae pools
(626)
51,411
—
1/12/39 (5.50%) 1 month
USD-LIBOR
Synthetic MBX Index
5.50% 30 year Fannie
Mae pools
(313)
51,411
—
1/12/39 (5.50%) 1 month
USD-LIBOR
Synthetic MBX Index
5.50% 30 year Fannie
Mae pools
(313)
298,279
—
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
(7,035)
103,199
—
1/12/39 (5.50%) 1 month
USD-LIBOR
Synthetic MBX Index
5.50% 30 year Fannie
Mae pools
(628)
SAI_6-2014/03
SAI_6-2014/01
Dynamic Asset Allocation Balanced Fund 89
OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/13 cont.
Swap counterparty/
Notional amount
Payments
Upfront
premium Termination received (paid) by
received (paid)
date fund per annum
Total return
received by
or paid by fund
Unrealized
appreciation/
(depreciation)
Barclays Bank PLC cont.
$268,117
$—
1/12/39 (5.50%) 1 month
USD-LIBOR
Synthetic MBX Index
5.50% 30 year Fannie
Mae pools
$(1,630)
103,199
—
1/12/39 (5.50%) 1 month
USD-LIBOR
Synthetic MBX Index
5.50% 30 year Fannie
Mae pools
(628)
2,504
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(20)
79,385
—
1/12/41 5.00% (1 month
USD-LIBOR)
Synthetic MBX Index
5.00% 30 year Ginnie
Mae II pools
797
216,250
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(1,699)
206,022
—
1/12/39 (5.50%) 1 month
USD-LIBOR
Synthetic MBX Index
5.50% 30 year Fannie
Mae pools
(1,253)
121,460
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(954)
346,924
—
1/12/41 (5.00%) 1 month
USD-LIBOR
Synthetic TRS Index
5.00% 30 year Fannie
Mae pools
9,121
975,341
—
1/12/41 (4.00%) 1 month
USD-LIBOR
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
15,184
87,276
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(686)
91,784
243
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(413)
627,351
—
1/12/41 5.00% (1 month
USD-LIBOR)
Synthetic MBX Index
5.00% 30 year Fannie
Mae pools
6,295
613,433
—
1/12/41 5.00% (1 month
USD-LIBOR)
Synthetic MBX Index
5.00% 30 year Fannie
Mae pools
6,156
baskets
501
—
2/13/14 (3 month USDLIBOR-BBA plus
0.10%)
A basket
(CGPUTQL2) of
common stocks
(319,263)
units
11,544
—
2/13/14 3 month USDLIBOR-BBA minus
0.15%
Russell 1000 Total
Return Index
(1,358)
Citibank, N.A.
SAI_6-2014/03
SAI_6-2014/01
90 Dynamic Asset Allocation Balanced Fund
OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/13 cont.
Swap counterparty/
Notional amount
Payments
Upfront
premium Termination received (paid) by
received (paid)
date fund per annum
Credit Suisse International
$3,581,751
Total return
received by
or paid by fund
Unrealized
appreciation/
(depreciation)
$—
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic MBX Index
4.50% 30 year Ginnie
Mae II pools
$59,066
298,279
—
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
(7,035)
784,849
—
1/12/41 (4.00%) 1 month
USD-LIBOR
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
12,218
975,839
—
1/12/41 (4.00%) 1 month
USD-LIBOR
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
15,192
975,839
—
1/12/41 (4.00%) 1 month
USD-LIBOR
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
15,192
—
1/12/39 6.00% (1 month
USD-LIBOR)
Synthetic TRS Index
6.00% 30 year Fannie
Mae pools
(3,610)
54,720
—
1/12/38 6.50% (1 month
USD-LIBOR)
Synthetic TRS Index
6.50% 30 year Fannie
Mae pools
(241)
115,887
—
1/12/41 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(1,804)
114,510
—
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
(2,701)
239,735
—
1/12/42 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(3,583)
239,735
—
1/12/42 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(3,583)
2,684,799
—
1/12/41 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(41,796)
525,913
—
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
(12,404)
957,933
—
1/12/41 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(14,913)
978,873
—
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
(23,087)
Goldman Sachs International
300,709
SAI_6-2014/03
SAI_6-2014/01
Dynamic Asset Allocation Balanced Fund 91
OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/13 cont.
Swap counterparty/
Notional amount
Payments
Upfront
premium Termination received (paid) by
received (paid)
date fund per annum
Goldman Sachs International cont.
$223,017
$—
Total return
received by
or paid by fund
Unrealized
appreciation/
(depreciation)
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
$(5,260)
76,098
—
1/12/41 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(1,185)
4,508
—
1/12/38 6.50% (1 month
USD-LIBOR)
Synthetic TRS Index
6.50% 30 year Fannie
Mae pools
(20)
127,900
—
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
(3,017)
1,243,380
—
1/12/40 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(23,824)
393,419
—
1/12/41 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(6,125)
58,977
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(463)
70,748
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(556)
1,340,410
—
1/12/41 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(20,867)
1,305,387
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic MBX Index
6.50% 30 year Fannie
Mae pools
(10,255)
22,289
—
1/12/38 (6.50%) 1 month
USD-LIBOR
Synthetic TRS Index
6.50% 30 year Fannie
Mae pools
98
21,302
—
1/12/39 6.00% (1 month
USD-LIBOR)
Synthetic TRS Index
6.00% 30 year Fannie
Mae pools
(256)
298,279
—
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
(7,035)
556,059
—
1/12/41 4.00% (1 month
USD-LIBOR)
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
(8,657)
131,132
—
1/12/41 (4.50%) 1 month
USD-LIBOR
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
3,093
2,270,339
—
1/12/41 (4.50%) 1 month
USD-LIBOR
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
53,547
SAI_6-2014/03
SAI_6-2014/01
92 Dynamic Asset Allocation Balanced Fund
OTC TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/13 cont.
Payments
Upfront
premium Termination received (paid) by
received (paid)
date fund per annum
Swap counterparty/
Notional amount
JPMorgan Chase Bank N.A.
$346,299
Total return
received by
or paid by fund
Unrealized
appreciation/
(depreciation)
$—
1/12/41 4.50% (1 month
USD-LIBOR)
Synthetic TRS Index
4.50% 30 year Fannie
Mae pools
$(8,168)
76,190
—
1/12/39 (6.00%) 1 month
USD-LIBOR
Synthetic TRS Index
6.00% 30 year Fannie
Mae pools
915
173,582
—
1/12/41 (4.00%) 1 month
USD-LIBOR
Synthetic TRS Index
4.00% 30 year Fannie
Mae pools
2,707
Total
$243
$(404,936)
OTC CREDIT DEFAULT CONTRACTS OUTSTANDING at 9/30/13
Swap counterparty/
Referenced debt*
Rating***
Bank of America N.A.
CMBX NA BBB
BBB–/P
Index
Upfront
premium
received
(paid)**
TermiNotional nation
amount date
Payments
received
(paid) by fund
per annum
$1,504
$22,000 5/11/63
300 bp
$(624)
Unrealized
appreciation/
(depreciation)
CMBX NA BBB
Index
BBB–/P
2,953
49,000 5/11/63
300 bp
(1,785)
CMBX NA BBB
Index
BBB–/P
6,050
98,000 5/11/63
300 bp
(3,427)
CMBX NA BBB
Index
BBB–/P
5,757
101,000 5/11/63
300 bp
(4,010)
BBB+/P
8,647
78,000 5/11/63
300 bp
1,105
—
(8,100)
300,000 6/20/14
(500 bp)
(16,478)
382
13,000 5/11/63
300 bp
(875)
Barclays Bank PLC
CMBX NA BBB
Index
Citibank, N.A.
EM Series 11 Index
Credit Suisse International
CMBX NA BBB
BBB–/P
Index
CMBX NA BBB
Index
BB+/P
5,256
43,000 5/11/63
300 bp
1,098
CMBX NA BBB
Index
BBB–/P
4,171
43,000 5/11/63
300 bp
13
CMBX NA BBB
Index
BBB–/P
861
45,000 5/11/63
300 bp
(3,490)
CMBX NA BBB
Index
BBB–/P
388
50,000 5/11/63
300 bp
(4,447)
CMBX NA BBB
Index
BBB–/P
5,492
69,000 5/11/63
300 bp
(1,180)
CMBX NA BBB
Index
BBB–/P
9,717
86,000 5/11/63
300 bp
1,401
CMBX NA BBB
Index
B+/P
8,342
86,000 5/11/63
300 bp
25
SAI_6-2014/03
SAI_6-2014/01
Dynamic Asset Allocation Balanced Fund 93
OTC CREDIT DEFAULT CONTRACTS OUTSTANDING at 9/30/13 cont.
Swap counterparty/
Referenced debt*
Rating***
Credit Suisse International cont.
CMBX NA BBB
BBB–/P
Index
Upfront
premium
received
(paid)**
TermiNotional nation
amount date
Payments
received
(paid) by fund
per annum
$7,022
$88,000 5/11/63
300 bp
$(1,488)
Unrealized
appreciation/
(depreciation)
CMBX NA BBB
Index
BBB–/P
6,891
89,000 5/11/63
300 bp
(1,715)
CMBX NA BBB
Index
BBB–/P
5,855
89,000 5/11/63
300 bp
(2,752)
CMBX NA BBB
Index
BBB–/P
1,367
89,000 5/11/63
300 bp
(7,239)
CMBX NA BBB
Index
BBB–/P
2,738
90,000 5/11/63
300 bp
(5,965)
CMBX NA BBB
Index
BBB–/P
1,586
90,000 5/11/63
300 bp
(7,117)
CMBX NA BBB
Index
B+/P
7,212
99,000 5/11/63
300 bp
(2,362)
CMBX NA BBB
Index
BBB–/P
1,161
100,000 5/11/63
300 bp
(8,509)
CMBX NA BBB
Index
B+/P
11,036
144,000 5/11/63
300 bp
(2,889)
CMBX NA BBB
Index
BBB–/P
7,551
184,000 5/11/63
300 bp
(10,242)
NA HY Series 20
Index
BBB–/P
(960,553)
24,395,000 6/20/18
500 bp
487,968
CMBX NA BBB
Index
BBB+/P
111
1,000 5/11/63
300 bp
14
CMBX NA BBB
Index
BBB–/P
1,871
24,000 5/11/63
300 bp
(450)
CMBX NA BBB
Index
BBB–/P
3,779
39,000 5/11/63
300 bp
8
CMBX NA BBB
Index
BBB–/P
6,868
77,000 5/11/63
300 bp
(584)
CMBX NA BBB
Index
BBB–/P
8,562
78,000 5/11/63
300 bp
1,020
CMBX NA BBB
Index
BBB–/P
6,086
80,000 5/11/63
300 bp
(1,650)
CMBX NA BBB
Index
BBB–/P
9,068
82,000 5/11/63
300 bp
1,138
CMBX NA BBB
Index
BBB–/P
12,467
117,000 5/11/63
300 bp
1,153
CMBX NA BBB
Index
BBB+/P
16,264
154,000 5/11/63
300 bp
1,372
—
(37,840)
1,720,000 6/20/14
(500 bp)
(88,122)
BBB–/P
(981,553)
29,914,000 6/20/18
500 bp
794,674
Deutsche Bank AG
EM Series 11 Index
NA HY Series 20
Index
SAI_6-2014/03
SAI_6-2014/01
94 Dynamic Asset Allocation Balanced Fund
OTC CREDIT DEFAULT CONTRACTS OUTSTANDING at 9/30/13 cont.
Swap counterparty/
Referenced debt*
Rating***
JPMorgan Chase Bank N.A.
NA HY Series 20
B+/P
Index
Total
Upfront
premium
received
(paid)**
$(225,186)
TermiNotional nation
amount date
$6,798,000 6/20/18
Payments
received
(paid) by fund
per annum
500 bp
$(2,036,217)
Unrealized
appreciation/
(depreciation)
$178,466
$1,292,055
* 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 are presented for credit default contracts in which the fund has sold protection on the underlying
referenced debt. 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 September 30, 2013. Securities rated by Putnam are indicated by “/P.”
CENTRALLY CLEARED CREDIT DEFAULT CONTRACTS OUTSTANDING at 9/30/13
Payments
received
(paid) by fund
per annum
Referenced debt*
Rating***
Upfront
premium
received
(paid)**
NA IG Series 21
Index
BB+/P
$(61,809)
$5,835,000 12/20/18 100 bp
$(7,142)
NA IG Series 21
Index
BBB–/P
(95,004)
8,770,000 12/20/18 100 bp
(12,839)
NA IG Series 21
Index
BBB+/P
(27,115)
2,525,000 12/20/18 100 bp
(3,458)
NA IG Series 21
Index
BBB+/P
(36,933)
3,480,000 12/20/18 100 bp
(4,329)
NA IG Series 21
Index
BBB+/P
(92,261)
8,395,000 12/20/18 100 bp
(13,610)
Total
TermiNotional nation
amount date
$(313,122)
Unrealized
depreciation
$(41,378)
* 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 are presented for credit default contracts in which the fund has sold protection on the underlying
referenced debt. 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 September 30, 2013. Securities rated by Putnam are indicated by “/P.”
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.
SAI_6-2014/03
SAI_6-2014/01
Dynamic Asset Allocation Balanced Fund 95
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*:
Basic materials
Capital goods
Communication services
Conglomerates
Consumer cyclicals
Consumer staples
Energy
Financials
Health care
Technology
Transportation
Utilities and power
$36,936,299
53,270,168
33,589,500
14,560,708
83,924,517
68,959,679
60,925,955
125,748,846
93,840,321
98,867,509
11,765,120
16,508,144
$—
—
—
—
360
—
—
—
—
—
—
—
$—
—
—
—
—
65,367
—
841,355
—
—
—
—
Total common stocks
698,896,766
360
906,722
Convertible bonds and notes
—
155,859
—
Convertible preferred stocks
168,454
440,360
—
Corporate bonds and notes
—
233,773,501
—
Foreign government and agency bonds and notes
—
10,183,863
—
11,803,513
—
—
Mortgage-backed securities
—
42,129,350
—
Municipal bonds and notes
—
425,970
—
479,073
651,002
—
Investment companies
Preferred stocks
Senior loans
—
3,517,373
—
U.S. government and agency mortgage obligations
—
189,839,499
—
Warrants
—
3,256
—
305,498,587
24,775,824
—
$1,016,846,393
$505,896,217
$906,722
Short-term investments
Totals by level
Valuation inputs
Other financial instruments:
Level 1
Level 2
Level 3
Forward currency contracts
$—
$(2,949,881)
$—
1,160,061
—
—
TBA sale commitments
—
(39,379,219)
—
Interest rate swap contracts
—
(780,886)
—
Total return swap contracts
—
(405,179)
—
Credit default contracts
—
3,600,016
—
$1,160,061
$(39,915,149)
$—
Futures contracts
Totals by level
* Common stock classifications are presented at the sector level, which may differ from the fund’s
portfolio presentation.
At the start and close of the reporting period, Level 3 investments in securities were not considered a significant
portion of the fund’s portfolio.
The accompanying notes are an integral part of these financial statements.
SAI_6-2014/03
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96 Dynamic Asset Allocation Balanced Fund
Statement of assets and liabilities 9/30/13
ASSETS
Investment in securities, at value, including $2,804,800 of securities on loan (Note 1):
Unaffiliated issuers (identified cost $1,063,835,032)
Affiliated issuers (identified cost $302,642,148) (Notes 1 and 5)
$1,221,007,184
302,642,148
Foreign currency (cost $321,340) (Note 1)
322,851
Dividends, interest and other receivables
6,324,961
Receivable for shares of the fund sold
5,830,859
Receivable for investments sold
12,975,397
Receivable for sales of delayed delivery securities (Note 1)
40,654,343
Receivable for variation margin (Note 1)
747,447
Unrealized appreciation on forward currency contracts (Note 1)
1,271,347
Unrealized appreciation on OTC swap contracts (Note 1)
1,715,720
Premium paid on OTC swap contracts (Note 1)
2,213,232
Total assets
1,595,705,489
LIABILITIES
Payable to custodian
161,879
Payable for investments purchased
2,559,267
Payable for purchases of delayed delivery securities (Note 1)
198,880,530
Payable for shares of the fund repurchased
5,798,592
Payable for compensation of Manager (Note 2)
574,697
Payable for custodian fees (Note 2)
60,386
Payable for investor servicing fees (Note 2)
348,712
Payable for Trustee compensation and expenses (Note 2)
344,666
Payable for administrative services (Note 2)
5,356
Payable for distribution fees (Note 2)
794,852
Payable for variation margin (Note 1)
1,206,105
Unrealized depreciation on OTC swap contracts (Note 1)
1,116,874
Premium received on OTC swap contracts (Note 1)
177,258
Unrealized depreciation on forward currency contracts (Note 1)
4,221,228
TBA sale commitments, at value (proceeds receivable $39,379,219) (Note 1)
39,379,219
Collateral on securities loaned, at value (Note 1)
2,903,561
Collateral on certain derivative contracts, at value (Note 1)
5,760,000
Other accrued expenses
284,177
Total liabilities
264,577,359
Net assets
$1,331,128,130
REPRESENTED BY
Paid-in capital (Unlimited shares authorized) (Notes 1 and 4)
$1,256,091,109
Undistributed net investment income (Note 1)
6,161,301
Accumulated net realized loss on investments and foreign currency transactions (Note 1)
(86,733,021)
Net unrealized appreciation of investments and assets and liabilities in foreign currencies
155,608,741
Total — Representing net assets applicable to capital shares outstanding
$1,331,128,130
(Continued on next page)
SAI_6-2014/03
SAI_6-2014/01
Dynamic Asset Allocation Balanced Fund 97
Statement of assets and liabilities (Continued)
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE
Net asset value and redemption price per class A share
($969,273,002 divided by 73,466,719 shares)
$13.19
Offering price per class A share (100/94.25 of $13.19)*
$13.99
Net asset value and offering price per class B share ($81,246,825 divided by 6,180,720 shares)**
$13.15
Net asset value and offering price per class C share ($114,906,801 divided by 8,891,098 shares)**
$12.92
Net asset value and redemption price per class M share ($26,679,700 divided by 2,025,852 shares)
$13.17
Offering price per class M share (100/96.50 of $13.17)*
$13.65
Net asset value, offering price and redemption price per class R share
($12,512,073 divided by 954,644 shares)
$13.11
Net asset value, offering price and redemption price per class R5 share
($11,915 divided by 902 shares)
$13.21
Net asset value, offering price and redemption price per class R6 share
($10,947,423 divided by 828,480 shares)
$13.21
Net asset value, offering price and redemption price per class Y share
($115,550,391 divided by 8,746,325 shares)
$13.21
*On single retail sales of less than $50,000. On sales of $50,000 or more the offering price is reduced.
**Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
SAI_6-2014/03
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98 Dynamic Asset Allocation Balanced Fund
Statement of operations Year ended 9/30/13
INVESTMENT INCOME
Interest (net of foreign tax of $2,913) (including interest income of $279,789 from investments
in affiliated issuers) (Note 5)
$20,398,626
Dividends (net of foreign tax of $327,448)
15,648,725
Securities lending (Note 1)
55,952
Total investment income
36,103,303
EXPENSES
Compensation of Manager (Note 2)
7,021,376
Investor servicing fees (Note 2)
2,316,684
Custodian fees (Note 2)
189,018
Trustee compensation and expenses (Note 2)
116,717
Distribution fees (Note 2)
4,411,525
Administrative services (Note 2)
37,773
Other
529,099
Total expenses
14,622,192
Expense reduction (Note 2)
(29,616)
Net expenses
14,592,576
Net investment income
21,510,727
Net realized gain on investments (net of foreign tax of $7,024) (Notes 1 and 3)
47,543,778
Net realized gain on swap contracts (Note 1)
15,689,055
Net realized gain on futures contracts (Note 1)
27,497,452
Net realized loss on foreign currency transactions (Note 1)
(115,682)
Net realized gain on written options (Notes 1 and 3)
512,942
Net unrealized depreciation of assets and liabilities in foreign currencies during the year
(2,236,960)
Net unrealized appreciation of investments, futures contracts, swap contracts, written options,
and TBA sale commitments during the year
44,157,941
Net gain on investments
133,048,526
Net increase in net assets resulting from operations
$154,559,253
The accompanying notes are an integral part of these financial statements.
SAI_6-2014/03
SAI_6-2014/01
Dynamic Asset Allocation Balanced Fund 99
Statement of changes in net assets
INCREASE IN NET ASSETS
Year ended 9/30/13
Year ended 9/30/12
Operations:
Net investment income
$21,510,727
$21,460,165
Net realized gain on investments
and foreign currency transactions
91,127,545
46,926,231
Net unrealized appreciation of investments and assets
and liabilities in foreign currencies
41,920,981
172,755,649
Net increase in net assets resulting from operations
154,559,253
241,142,045
Class A
(14,049,184)
(14,910,054)
Class B
(621,914)
(831,938)
Class C
(863,603)
(958,614)
Class M
(256,337)
(268,070)
Class R
(153,326)
(167,788)
Class R5
(201)
(48)
Class R6
(93,613)
(50)
Class Y
(3,044,880)
(3,523,769)
(114,702,305)
(133,881,070)
20,773,890
86,600,644
Beginning of year
1,310,354,240
1,223,753,596
End of year (including undistributed net investment income
of $6,161,301 and distributions in excess of net investment
income of $5,723,446, respectively)
$1,331,128,130
$1,310,354,240
Distributions to shareholders (Note 1):
From ordinary income
Net investment income
Decrease from capital share transactions (Note 4)
Total increase in net assets
NET ASSETS
The accompanying notes are an integral part of these financial statements.
SAI_6-2014/03
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100 Dynamic Asset Allocation Balanced Fund
This page left blank intentionally.
SAI_6-2014/03
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Dynamic Asset Allocation Balanced Fund 101
.21
.20
.21
.27
.21
.12
.11
.13
.20
.14
.12
.11
.13
.19
.15
.15
.14
.15
.22
.17
.18
.17
.18
.25
.19
.25
.06
.25
.06
.25
.23
.24
.30
.24
$11.89
9.99
10.47
9.82
10.01
$11.84
9.95
10.43
9.78
9.96
$11.65
9.80
10.28
9.65
9.85
$11.87
9.98
10.46
9.81
10.00
$11.81
9.93
10.41
9.77
9.97
$11.90
11.34
$11.90
11.34
$11.90
10.00
10.49
9.83
10.03
Net investment
income (loss) a
1.28
1.89
(.29)
.94
.03 h
1.30
.56
1.29
.55
1.28
1.88
(.28)
.92
.04 h
1.28
1.89
(.28)
.93
.05 h
1.25
1.85
(.28)
.92
.04 h
1.29
1.89
(.29)
.93
.07 h
1.28
1.89
(.28)
.94
.05 h
Net realized
and unrealized
gain (loss)
on investments
102 Dynamic Asset Allocation Balanced Fund
The accompanying notes are an integral part of these financial statements.
See notes to financial highlights at the end of this section.
Class A
September 30, 2013
September 30, 2012
September 30, 2011
September 30, 2010
September 30, 2009
Class B
September 30, 2013
September 30, 2012
September 30, 2011
September 30, 2010
September 30, 2009
Class C
September 30, 2013
September 30, 2012
September 30, 2011
September 30, 2010
September 30, 2009
Class M
September 30, 2013
September 30, 2012
September 30, 2011
September 30, 2010
September 30, 2009
Class R
September 30, 2013
September 30, 2012
September 30, 2011
September 30, 2010
September 30, 2009
Class R5
September 30, 2013
September 30, 2012†
Class R6
September 30, 2013
September 30, 2012†
Class Y
September 30, 2013
September 30, 2012
September 30, 2011
September 30, 2010
September 30, 2009
Period ended
Net asset value,
beginning
of period
INVESTMENT OPERATIONS:
(.19)
(.19)
(.41)
(.56)
(.45)
(.10)
(.11)
(.32)
(.48)
(.39)
(.10)
(.11)
(.33)
(.48)
(.39)
(.13)
(.14)
(.35)
(.50)
(.41)
(.16)
(.17)
(.38)
(.53)
(.43)
(.23)
(.05)
(.24)
(.06)
(.22)
(.22)
(.44)
(.58)
(.47)
1.41
2.00
(.16)
1.13
.21
1.37
1.96
(.15)
1.11
.19
1.43
2.03
(.13)
1.15
.22
1.46
2.05
(.10)
1.17
.23
1.54
.61
1.55
.62
1.53
2.12
(.05)
1.24
.27
From
net investment
income
1.49
2.09
(.07)
1.21
.26
Total from
investment
operations
—
—
—
—f
—f
—
—
—
—f
—f
—
—
—
—f
—f
—
—
(.10)
(.11)
(.33)
(.48)
(.39)
(.13)
(.14)
(.35)
(.50)
(.41)
(.16)
(.17)
(.38)
(.53)
(.43)
(.23)
(.05)
SAI_6-2014/03
SAI_6-2014/01
(.22)
(.22)
(.44)
(.58)
(.47)
—
—
—
—f
—f
—
—
—
—
—
—f
—f
(.10)
(.11)
(.32)
(.48)
(.39)
(.24)
(.06)
—
—
—
—f
—f
Redemption
fees
(.19)
(.19)
(.41)
(.56)
(.45)
Total
distributions
LESS DISTRIBUTIONS:
Financial highlights (For a common share outstanding throughout the period)
—
—
—e
—
—
—
—
—
—
—
—
—e
—
—
—
—
—e
—
—
—
—
—e
—
—
—
—
—e
—
—
—
—
—e
—
—
Non-recurring
reimbursements
$13.21
11.90
10.00
10.49
9.83
$13.21
11.90
$13.21
11.90
$13.11
11.81
9.93
10.41
9.77
$13.17
11.87
9.98
10.46
9.81
$12.92
11.65
9.80
10.28
9.65
$13.15
11.84
9.95
10.43
9.78
$13.19
11.89
9.99
10.47
9.82
Net asset value,
end of period
12.96
21.34
(.76)
12.98
3.96
13.11
5.44*
12.99
5.41*
12.42
20.70
(1.18)
12.32
3.45
12.10
20.40
(1.44)
12.08
3.27
11.81
20.07
(1.68)
11.79
2.97
11.90
20.13
(1.71)
11.80
3.10
12.62
21.06
(.92)
12.62
3.79
Total return
at net asset
value (%) b
$115,550
193,491
171,176
167,625
273,251
$10,947
11
$12
11
$12,512
11,821
10,066
9,614
7,476
$26,680
21,876
19,151
23,600
22,010
$114,907
98,192
91,254
98,134
99,579
$81,247
85,833
88,888
114,661
131,854
$969,273
899,121
843,218
931,461
927,285
Net assets,
end of period
(in thousands)
1.98
2.01
2.16
2.99 g
2.88 g
1.94
.49*
1.98
.47*
1.46
1.52
1.66
2.45 g
2.31 g
1.20
1.27
1.41
2.20 g
2.04 g
.96
1.01
1.16
1.96 g
1.79 g
.96
1.02
1.15
1.97 g
1.76 g
1.71
1.76
1.91
2.71 g
2.54 g
Ratio
of net investment
income (loss)
to average
net assets (%)
190
182
158
138
201
190
182
190
182
190
182
158
138
201
190
182
158
138
201
190
182
158
138
201
190
182
158
138
201
190
182
158
138
201
Portfolio
turnover
(%) d
Dynamic Asset Allocation Balanced Fund 103
.77
.81
.81
.85 g
.98 g,i
.65
.16*
.75
.19*
1.27
1.31
1.31
1.35 g
1.48 g,i
1.52
1.56
1.56
1.60 g
1.73 g,i
1.77
1.81
1.81
1.85 g
1.98 g,i
1.77
1.81
1.81
1.85 g
1.98 g,i
1.02
1.06
1.06
1.10 g
1.23 g,i
Ratio
of expenses
to average
net assets
(%) c
RATIOS AND SUPPLEMENTAL DATA:
Financial highlights (Continued)
* Not annualized.
† For the period July 3, 2012 (commencement of operations) to September 30, 2012.
a
Per share net investment income (loss) has been determined on the basis of the weighted average number of shares
outstanding during the period.
b
Total return assumes dividend reinvestment and does not reflect the effect of sales charges.
c
Includes amounts paid through expense offset and/or brokerage/service arrangements (Note 2).
d
Portfolio turnover excludes TBA purchase and sale transactions.
e
Reflects a non-recurring reimbursement related to restitution amounts in connection with a distribution plan
approved by the Securities and Exchange Commission (the SEC) which amounted to less than $0.01 per share
outstanding on July 21, 2011. Also reflects a non-recurring reimbursement related to short-term trading related
lawsuits, which amounted to less than $0.01 per share outstanding on May 11, 2011.
f
Amount represents less than $0.01 per share.
g
Reflects an involuntary contractual expense limitation in effect during the period. As a result of such limitation and/or
waivers, the expenses of each class reflect a reduction of the following amounts:
Percentage of
average net assets
September 30, 2010
September 30, 2009
0.02%
0.12
h
The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments
for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the
investments of the fund.
i
Includes interest accrued in connection with certain terminated derivative contracts, which amounted to 0.10% of
average net assets as of September 30, 2009.
The accompanying notes are an integral part of these financial statements.
SAI_6-2014/03
SAI_6-2014/01
104 Dynamic Asset Allocation Balanced Fund
Management:
H hl F a
i , CEO
In estors:
F
C
de , F ie d & Famil
ac De ail : J h A D e (e) JD e@ABC C m a .c ( ) 732.000.0000
Business Summar : ABC C m a
i he l
cial e
k la f m i g
big-da a a ma icall c
ec e l diag
ed a ie
di ec l i h h e h ' e
bee h gh he ame diag
i , e , a d ea me , a d
ced e . ABC
C m a c
d
ce heal h i f ma i
de e mi e ha a h ill likel e l i
he be
c me a d ha c
ill be a
cia ed i h ha ec e
la . Fac
ab
c me , a d cial
, deli e ed di ec
he e l diag
ed a ie .
Customer Problem: Acc di g
he CDC alm
1
f e e 2 ad l had a
1 ch ic ill e . Acc di g PEW I e e e ea ch, i a Se embe 2012
e 72% f i e e
e
ea ched li e f heal h i f ma i . C e l ,
la f m e i
ha ca ma ch he e ea che
i h ee b
ide he ha e ee ,
medica i
he ha e bee
e c ibed, ea me admi i e ed, a c mbi a i
f
c i e ia. N c e
la f m ca de e mi e e
ed be
c me f m "d
eam"
a ie
h ha e bee h gh a e ma agi g he ame c di i .
lea
Target Market: O
a ge ma ke c
i
f heal h i f ma i
ea che (72% f
i e e
e ) ha ha e acce ible elec
ic heal h ec d . C e l , ABC
C m a i ca able f bei g ili ed b 100 Milli
e le i he U i ed S a e i h
m e c mi g a he c
c i e i m e
a d elec
ic heal h i f ma i .
Marketing Strateg : ABC C m a
ha a f
a a
ach ma ke i g f he
la f m hich i cl de: (1) di ec i e e a
ach c
i i g f backli k , bl gge ,
ke
d cam aig , SEO, e le e , ba e , a d e
elea e (2) i media
a
ach i cl di g a a d f ca e
ide di la ed i
ai i g
m . (3) allia ce
ihi
e ,a d
ide
i h li e
de ma ageme . (4) TV cam aig
i c ea e blic a a e e .