N-CSR 1 a_masterinterincome.htm PUTNAM MASTER INTERMEDIATE INCOME 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: | (811-05498)

| Exact name of registrant as specified in charter: | Putnam Master Intermediate Income Trust

| Address of principal executive offices: | One Post Office Square, Boston, Massachusetts 02109

| Name and address of agent for service: | Robert T Burns, Vice President One Post Office Square Boston, Massachusetts 02109

| Copy to: | John W. Gerstmayr, Esq. Ropes & Gray LLP 800 Boylston Street Boston, Massachusetts 02199-3600

| Registrant’s telephone number, including area code: | (617) 292-1000

| Date of fiscal year end: | September 30, 2012

| Date of reporting period: | October 1, 2011 — September 30, 2012

| Item 1. Report to Stockholders: |

| The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940: |

Putnam
Master Intermediate
Income Trust
Annual report
9 | 30 | 12

Message from the Trustees | 1 |
About the fund | 2 |
Performance snapshot | 4 |
Interview with your fund’s portfolio manager | 5 |
Your fund’s performance | 11 |
Terms and definitions | 13 |
Other information for shareholders | 14 |
Trustee approval of management contract | 15 |
Financial statements | 20 |
Federal tax information | 92 |
Shareholder meeting results | 93 |
About the Trustees | 94 |
Officers | 96 |

Consider these risks before investing: International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging-market securities, including illiquidity and volatility. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Bond investments are subject to interest-rate risk, which means the prices of the fund’s bond investments are likely to fall if interest rates rise. Bond investments also are subject to credit risk, which is the risk that the issuer of the bond may default on payment of interest or principal. Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds, which may be considered speculative. Unlike bonds, funds that invest in bonds have ongoing fees and expenses. The fund’s shares trade on a stock exchange at market prices, which may be lower than the fund’s net asset value.

Message from the Trustees

Dear Fellow Shareholder:

Coordinated action by central banks on both sides of the Atlantic helped lift both equity and fixed-income markets this year. Global markets continue to show signs of vulnerability, however, with investors growing more concerned about economic slowdowns in the United States, Europe, and emerging markets, particularly China. The outcome of the U.S. presidential election and the impending “fiscal cliff” are additional sources of potential volatility.

Putnam’s veteran investment team relies on fundamental research and experienced judgment to seek opportunities and manage risk in this environment. In the same way, it is prudent for long-term investors to rely on the expertise of a trusted financial advisor, who can help you work toward your financial goals.

We would like to take this opportunity to announce the arrival of two new Trustees, Liaquat Ahamed and Katinka Domotorffy, CFA, to your fund’s Board of Trustees. Mr. Ahamed, who in 2010 won the Pulitzer Prize for History with his book, Lords of Finance: The Bankers Who Broke the World, also serves on the Board of Aspen Insurance and the Board of the Rohatyn Group, an emerging-market fund complex that manages money for institutional investors.

Ms. Domotorffy, who until year-end 2011 was a Partner, Chief Investment Officer, and Global Head of Quantitative Investment Strategies at Goldman Sachs Asset Management, currently serves as a member of the Anne Ray Charitable Trust’s Investment Committee, Margaret A. Cargill Philanthropies, and director for Reach Out and Read of Greater New York, an organization dedicated to promoting early childhood literacy.

We would also like to extend a welcome to new shareholders of the fund and to thank all of our investors for your continued confidence in Putnam.

About the fund

Seeking broad diversification across bond markets

When Putnam Master Intermediate Income Trust was launched in 1988, its three-pronged focus on U.S. investment-grade bonds, high-yield corporate bonds, and non-U.S. bonds was considered innovative. Lower-rated, higher-yielding corporate bonds were relatively new, having just been established in the late 1970s. In addition, at the time of the fund’s launch, few investors were venturing outside the United States for fixed-income opportunities.

In the two decades since then, the bond investment landscape has undergone a transformation. New sectors such as mortgage- and asset-backed securities now make up a sizable portion of the U.S. investment-grade market. The high-yield corporate bond sector has also grown significantly. Outside the United States, the introduction of the euro fostered the development of a large market of European government bonds. There are also growing opportunities to invest in the debt of emerging-market countries.

The fund’s managers believe that the fund’s multi-strategy approach is well suited to the expanding opportunities in today’s global bond marketplace. To respond to the market’s increasing complexity, Putnam’s Fixed Income group aligns teams of specialists with varied investment opportunities. Working with these teams, the fund managers strive to build a diversified portfolio that carefully balances risk and return.

As different factors drive the performance of the various bond market sectors, the managers use the fund’s flexible strategy to seek opportunities for investors.

How do closed-end funds differ from open-end funds?

More assets at work While open-end funds need to maintain a cash position to meet redemptions, closed-end funds are not subject to redemptions and can keep more of their assets invested in the market.

Traded like stocks Closed-end fund shares are traded on stock exchanges, and their market prices fluctuate in response to supply and demand, among other factors.

Net asset value vs. market price Like an open-end fund’s net asset value (NAV) per share, the NAV of a closed-end fund share is equal to the current value of the fund’s assets, minus its liabilities, divided by the number of shares outstanding. However, when buying or selling closed-end fund shares, the price you pay or receive is the market price. Market price reflects current market supply and demand, and may be higher or lower than the NAV.

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Investment return and net asset value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart are at NAV. See pages 5 and 11–12 for additional performance information, including fund returns at market price. Index and Lipper results should be compared with fund performance at NAV. Lipper calculates performance differently than the closed-end funds it ranks, due to varying methods for determining a fund’s monthly reinvestment NAV. To obtain the most recent month-end performance, visit putnam.com.

4 | Master Intermediate Income Trust

Interview with your fund’s portfolio manager

Bill, what was the bond-market environment like during the 12 months ended September 30, 2012?

The early months of the period were difficult ones for credit-sensitive fixed-income securities, as concerns about Europe’s sovereign debt crisis and a weakening U.S. economic outlook caused investors to move away from risk. In December, however, riskier assets began to reverse course, as investors grew more optimistic about U.S. growth prospects and less pessimistic about the European situation. Investor confidence was buoyed by the European Central Bank’s Long-Term Refinancing Operation, which provided much-needed stability to global credit markets by injecting liquidity into the European banking system, thereby reducing banks’ short-term funding risk.

In the United States, the Federal Reserve remained firm in its resolve to hold its benchmark federal funds rate near zero, announcing that it would do so into 2015, with the dual objectives of promoting growth and maintaining liquidity in the financial system. The Fed’s accommodative stance was further evidenced when it extended “Operation Twist,” under which it helped keep long-term Treasury yields low by selling short-term bonds and buying longer-term ones.

Within this environment, bonds in sectors entailing greater credit or market risk that trade at a yield premium to U.S.

This comparison shows your fund’s performance in the context of broad market indexes for the 12 months ended 9/30/12. See pages 4 and 11–12 for additional fund performance information. Index descriptions can be found on page 13.

Master Intermediate Income Trust | 5

Treasuries — so-called “spread sectors” —rallied broadly from December through March. However, the rally stalled during the April through June period, as global economic data came in below expectations and rising eurozone risk once again dampened investor sentiment.

The final three months of the period were characterized by light trading volumes, interest rates moving higher globally, and yield curves steepening. The benchmark 10-year Treasury yield hit an intra-month high of 1.83% in August, a level not reached since the beginning of May, before ending the period lower at 1.65%. Against this backdrop, fixed-income spread sectors continued to outperform other parts of the market, led by higher-yielding categories, such as non-agency residential mortgage-backed securities [RMBS], high-yield bonds, and emerging-market debt.

In a much-anticipated development, the Fed launched “QE3” in mid September, announcing that it would buy $40 billion of government-agency mortgage-backed securities [agency MBS] every month until the job market improves. The central bank also affirmed that it would continue Operation Twist through December.

Credit qualities are shown as a percentage of net assets as of 9/30/12. A bond rated Baa or higher (Prime-3 or higher, for short-term debt) is considered investment grade. The chart reflects Moody’s ratings; percentages may include bonds or derivatives not rated by Moody’s but rated by Standard & Poor’s (S&P) or, if unrated by S&P, by Fitch, and then included in the closest equivalent Moody’s rating. Ratings will vary over time.

Credit quality represents only the fixed-income portion of the portfolio. Convertible bonds are excluded from the calculation. Derivative instruments, including currency forwards, are only included to the extent of any unrealized gain or loss on such instruments and are shown in the not-rated category. Cash is also shown in the not-rated category. The fund itself has not been rated by an independent rating agency.

A negative percentage reflects the effect of fund strategies that are designed to enhance performance if certain securities decline in value.

6 | Master Intermediate Income Trust

The fund outpaced its benchmark by a considerable margin. What factors drove this solid relative performance?

Our sizable allocations to high-yield bonds and emerging-market debt, both of which were among the best-performing asset classes during the period, drove the fund’s performance versus the index. Investments in non-agency RMBS also meaningfully contributed. Returns for high-yield and emerging-market bonds were bolstered by investor willingness to assume more risk in exchange for higher yields. Non-agency RMBS benefited from nascent signs of strength in the housing market, along with the anticipation of heightened demand for the securities. While not the direct target of Fed purchases, non-agency RMBS may become an attractive alternative for investors should the central bank’s bond buying absorb most of the supply in the agency MBS market. Within our emerging-market debt allocation,

This table shows the fund’s top holdings across three key sectors and the percentage of the fund’s net assets that each represented as of 9/30/12. Short-term holdings, derivatives, and TBA commitments are excluded. Holdings will vary over time.

Master Intermediate Income Trust | 7

positions in Argentina, Russia, Venezuela, and Ukraine performed particularly well. Holdings of investment-grade corporate bonds and commercial mortgage-backed securities also aided the fund’s relative return.

Which strategies detracted from the fund’s performance?

The biggest detractor was our conservative term-structure positioning [meaning the fund’s duration — or interest-rate sensitivity —and yield-curve strategy]. Given the low level of Treasury yields and expectations for modestly improving U.S. economic growth, we took a cautious approach toward interest-rate risk by maintaining minimal duration exposure within the portfolio. However, this positioning, which can be beneficial when rates are rising, dampened performance because interest rates, while volatile during the period, ended the period lower across the yield curve.

Our active currency strategy, which is implemented with long and short positions using currency forward contracts, also proved detrimental. Currency markets were volatile during the period, and our exposure to commodity-linked currencies, such as the Australian and Canadian dollars, as well as tactical trading in the British pound sterling, detracted from performance. Slowing global growth, particularly in China, led to falling commodity prices during much of the period, which weighed on the currencies of major commodity-exporting countries. Conversely, short positions in the euro and the Czech koruna aided performance and partially offset the overall negative outcome of our currency strategy.

How did you use derivatives during the period?

We used bond futures and interest-rate swaps — which allow two parties to exchange one stream of future interest payments for another, based on a specified principal amount — to take tactical positions at various points along the yield curve.

In addition, we employed interest-rate swaps and “swaptions” — which give us the option to enter into a swap contract — to hedge the interest-rate risk associated with our collateralized-mortgage-obligation [CMO] holdings.

This chart shows how the fund’s top weightings have changed over the past six months. Weightings are shown as a percentage of net assets. Summary information may differ from the portfolio schedule included in the financial statements due to the inclusion of derivative securities and the exclusion of as-of trades, if any. Holdings will vary over time. Cash positions may represent collateral used to cover certain derivative contracts.

8 | Master Intermediate Income Trust

Lastly, we used forward currency contracts to hedge the foreign exchange risk associated with non-U.S. bonds, and to efficiently gain exposure to foreign currencies as part of our active strategy involving global currency pairings.

The fund reduced its distribution rate during the period. What led to that decision?

The fund’s per-share distribution rate was lowered to $0.026 from $0.029 in July, due to an overall decline in the amount of interest income earned by the fund — a result of generally lower yields in the marketplace.

What is your outlook for the coming months, and how are you positioning the fund?

The latest data show that the U.S. economy is continuing on a sluggish growth path. We believe third-quarter gross domestic product may come in slightly above 1.5% on an annualized basis, which would be weaker than we expected at the beginning of 2012. With Europe in recession, Japan slowing sharply, and China growing at a rate that is slow by its own standards, the areas of the U.S. economy that are heavily dependent on global trade have weakened. On the other hand, U.S. consumer demand remains reasonably solid, as illustrated by stronger automobile sales. All told, we believe U.S. growth may strengthen in 2013 if the so-called “fiscal cliff” of currently legislated spending cuts and expiring tax reductions looming at year-end can be avoided.

As has been the case for some time, we continue to believe non-government sectors remain the most attractive areas of the bond market. While the “spreads” — or yield advantage — in many sectors of the market have tightened in recent months, they still appear attractive relative to their pre-2008 historical averages.

In our view, investors seem to be slowly returning to employing long-term strategies rather than timing the next risk trade, and

A word about derivatives

Derivatives are an increasingly common type of investment instrument, the performance of which is derived from an underlying security, index, currency, or other area of the capital markets. Derivatives employed by the fund’s managers generally serve one of two main purposes: to implement a strategy that may be difficult or more expensive to invest in through traditional securities, or to hedge unwanted risk associated with a particular position.

For example, the fund’s managers might use forward currency contracts to capitalize on an anticipated change in exchange rates between two currencies. This approach would require a significantly smaller outlay of capital than purchasing traditional bonds denominated in the underlying currencies. In another example, the managers may identify a bond that they believe is undervalued relative to its risk of default, but may seek to reduce the interest-rate risk of that bond by using interest-rate swaps, a derivative through which two parties “swap” payments based on the movement of certain rates.

Like any other investment, derivatives may not appreciate in value and may lose money. Derivatives may amplify traditional fixed-income risks through the creation of leverage and may be less liquid than traditional securities. And because derivatives typically represent contractual agreements between two financial institutions, derivatives entail “counterparty risk,” which is the risk that the other party is unable or unwilling to pay. Putnam monitors the counterparty risks we assume. For some types of derivatives, Putnam also seeks to mitigate the level of ongoing counterparty credit risk by entering into collateral agreements with counterparties that require the counterparties to post collateral on a regular basis to cover their obligations to the fund.

See pages 52–76 for more information on the types of derivatives used.

Master Intermediate Income Trust | 9

we believe that makes for a more supportive investment environment overall, particularly for active managers like Putnam.

In terms of positioning, we continue to prefer credit risk via allocations to corporate bonds and non-agency RMBS, and prepayment risk through certain types of CMOs, over interest-rate risk. While the potential for short-term price volatility still remains high, we believe our actively managed, risk-conscious approach remains a prudent strategy for investing in today’s bond markets.

Thanks for your time and for bringing us up to date, Bill.

The views expressed in this report are exclusively those of Putnam Management and are subject to change. They are not meant as investment advice.

Please note that the holdings discussed in this report may not have been held by the fund for the entire period. Portfolio composition is subject to review in accordance with the fund’s investment strategy and may vary in the future. Current and future portfolio holdings are subject to risk.

Portfolio Manager D. William Kohli is Co-Head of Fixed Income at Putnam. He has an M.B.A. from the Haas School of Business at the University of California, Berkeley, and a B.A. from the University of California, San Diego. Bill joined Putnam in 1994 and has been in the investment industry since 1986.

In addition to Bill, your fund’s portfolio managers are Michael J. Atkin, Kevin F. Murphy, Michael V. Salm, and Paul D. Scanlon, CFA.

Raman Srivastava left the fund in September 2012.

IN THE NEWS

Global economic growth is losing steam, according to the International Monetary Fund (IMF), with the majority of the world’s advanced economies expected to contract in 2012, or expand at anemic rates of less than 2%. Several issues are challenging economic growth, including Europe’s sovereign debt troubles, the impending “fiscal cliff” in the United States, and high unemployment in various economies. Unless leaders take meaningful steps to address these issues, the current global economic expansion may slow to the weakest level since 2009’s Great Recession. These issues are weighing increasingly on the global economy. In July, the IMF predicted that global growth would be 3.5% in 2012, rising to 3.9% in 2013, but now, in its recently released World Economic Outlook, the IMF has revised its growth forecasts downwards, to growth of just 3.3% this year, and 3.6% in 2013.

10 | Master Intermediate Income Trust

Your fund’s performance

This section shows your fund’s performance, price, and distribution information for periods ended September 30, 2012, the end of its most recent fiscal year. Performance should always be considered in light of a fund’s investment strategy. Data represent past performance. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return, net asset value, and market price will fluctuate, and you may have a gain or a loss when you sell your shares.

Fund performance Total return for periods ended 9/30/12

|  |  | NAV | Market price
Annual average |  |  |  |
Life of fund (since 4/29/88) |  |  | 7.16% | 6.64%
10 years |  |  | 101.13 | 88.61
Annual average |  |  | 7.24 | 6.55
5 years |  |  | 27.59 | 35.64
Annual average |  |  | 4.99 | 6.29
3 years |  |  | 26.05 | 19.46
Annual average |  |  | 8.02 | 6.11
1 year |  |  | 8.42 | 9.56

Performance assumes reinvestment of distributions and does not account for taxes.

Comparative index returns For periods ended 9/30/12

|  | Citigroup |  | Lipper Flexible
| Barclays | Non-U.S. World |  | Income Funds
| Government/Credit | Government | JPMorgan Global | (closed-end)
| Bond Index | Bond Index | High Yield Index | category average*
Annual average |  |  |  |
Life of fund (since 4/29/88) | 7.30% | 6.70% | —† | 6.82%
10 years | 69.00 | 101.69 | 182.46% | 98.21
Annual average | 5.39 | 7.27 | 10.94 | 7.06
5 years | 37.87 | 37.38 | 57.69 | 37.31
Annual average | 6.63 | 6.56 | 9.54 | 6.45
3 years | 20.79 | 12.56 | 45.42 | 29.64
Annual average | 6.50 | 4.02 | 13.29 | 9.00
1 year | 5.66 | 3.46 | 19.71 | 12.57

Index and Lipper results should be compared with fund performance at net asset value. Lipper calculates performance differently than the closed-end funds it ranks, due to varying methods for determining a fund’s monthly reinvestment net asset value.

* Over the 1-year, 3-year, 5-year, 10-year, and life-of-fund periods ended 9/30/12, there were 5, 5, 4, 3, and 2 funds, respectively, in this Lipper category.

† The JPMorgan Global High Yield Index was introduced on 12/31/93, which post-dates the fund’s inception.

Master Intermediate Income Trust | 11

Fund price and distribution information For the 12-month period ended 9/30/12

Distributions |  |
Number | 12
Income | $0.089638
Return of capital* | 0.249362
Capital gains | —
Total | $0.339000
Share value | NAV | Market price
9/30/11 | $5.34 | $5.05
9/30/12 | 5.42 | 5.18
Current yield (end of period) | NAV | Market price
Current dividend rate† | 5.76% | 6.02%

The classification of distributions, if any, is an estimate. Final distribution information will appear on your year-end tax forms.

* See page 92.

† Most recent distribution, excluding capital gains, annualized and divided by NAV or market price at end of period.

12 | Master Intermediate Income Trust

Terms and definitions

Important terms

Total return shows how the value of the fund’s shares changed over time, assuming you held the shares through the entire period and reinvested all distributions in the fund.

Net asset value (NAV) is the value of all your fund’s assets, minus any liabilities, divided by the number of outstanding shares.

Market price is the current trading price of one share of the fund. Market prices are set by transactions between buyers and sellers on exchanges such as the New York Stock Exchange.

Fixed-income terms

Current yield is the annual rate of return earned from dividends or interest of an investment. Current yield is expressed as a percentage of the price of a security, fund share, or principal investment.

Mortgage-backed security (MBS), also known as a mortgage “pass-through”, is a type of asset-backed security that is secured by a mortgage or collection of mortgages. The following are types of MBSs:

• Agency “pass-through” has its principal and interest backed by a U.S. government agency, such as the Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac).

• Collateralized mortgage obligation (CMO) represents claims to specific cash flows from pools of home mortgages. The streams of principal and interest payments on the mortgages are distributed to the different classes of CMO interests in “tranches”. Each tranche may have different principal balances, coupon rates, prepayment risks, and maturity dates. A CMO is highly sensitive to changes in interest rates and any resulting change in the rate at which homeowners sell their properties, refinance, or otherwise prepay loans. CMOs are subject to prepayment, market, and liquidity risks.

• Interest-only (IO) security is a type of CMO in which the underlying asset is the interest portion of mortgage, Treasury, or bond payments.

• Non-agency residential mortgage-backed security (RMBS) is an MBS not backed by Fannie Mae, Ginnie Mae, or Freddie Mac. One type of RMBS is an Alt-A mortgage-backed security.

• Commercial mortgage-backed security (CMBS) is secured by the loan on a commercial property.

Yield curve is a graph that plots the yields of bonds with equal credit quality against their differing maturity dates, ranging from shortest to longest. It is used as a benchmark for other debt, such as mortgage or bank lending rates.

Comparative indexes

Barclays Government/Credit Bond Index is an unmanaged index of U.S. Treasuries, agency securities, and investment-grade corporate bonds.

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

BofA (Bank of America) Merrill Lynch U.S. 3-Month Treasury Bill Index is an unmanaged index that seeks to measure the performance of U.S. Treasury bills available in the marketplace.

Citigroup Non-U.S. World Government Bond Index is an unmanaged index generally considered to be representative of the world bond market excluding the United States.

JPMorgan Global High Yield Index is an unmanaged index that is designed to mirror the investable universe of the U.S. dollar global high-yield corporate debt market, including domestic (U.S.) and international (non-U.S.) issues. International issues are composed of both developed and emerging markets.

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

Indexes assume reinvestment of all distributions and do not account for fees. Securities and performance of a fund and an index will differ. You cannot invest directly in an index.

Lipper is a third-party industry-ranking entity that ranks mutual funds. Its rankings do not reflect sales charges. Lipper rankings are based on total return at net asset value relative to other funds that have similar current investment styles or objectives as determined by Lipper. Lipper may change a fund’s category assignment at its discretion. Lipper category averages reflect performance trends for funds within a category.

Master Intermediate Income Trust | 13

Other information for shareholders

Important notice regarding share repurchase program

In September 2012, the Trustees of your fund approved the renewal of a share repurchase program that had been in effect since 2005. This renewal will allow your fund to repurchase, in the 12 months beginning October 8, 2012, up to 10% of the fund’s common shares outstanding as of October 7, 2012.

Important notice regarding Putnam’s privacy policy

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

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

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

Proxy voting

Putnam is committed to managing our mutual funds in the best interests of our shareholders. The Putnam funds’ proxy voting guidelines and procedures, as well as information regarding how your fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2012, are available in the Individual Investors section at putnam.com, and on the Securities and Exchange Commission (SEC) website, www.sec.gov. If you have questions about finding forms on the SEC’s website, you may call the SEC at 1-800-SEC-0330. You may also obtain the Putnam funds’ proxy voting guidelines and procedures at no charge by calling Putnam’s Shareholder Services at 1-800-225-1581.

Fund portfolio holdings

The fund will file a complete schedule of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Shareholders may obtain the fund’s Forms N-Q on the SEC’s website at www.sec.gov. In addition, the fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may call the SEC at 1-800-SEC-0330 for information about the SEC’s website or the operation of the Public Reference Room.

Trustee and employee fund ownership

Putnam employees and members of the Board of Trustees place their faith, confidence, and, most importantly, investment dollars in Putnam mutual funds. As of September 30, 2012, Putnam employees had approximately $342,000,000 and the Trustees had approximately $81,000,000 invested in Putnam mutual funds. These amounts include investments by the Trustees’ and employees’ immediate family members as well as investments through retirement and deferred compensation plans.

14 | Master Intermediate Income Trust

Trustee approval of management contract

General conclusions

The Board of Trustees of the Putnam funds oversees the management of each fund and, as required by law, determines annually whether to approve the continuance of your fund’s management contract with Putnam Investment Management (“Putnam Management”) and the sub-management contract with respect to your fund between Putnam Management and its affiliate, Putnam Investments Limited (“PIL”).

The Board of Trustees, with the assistance of its Contract Committee, requests and evaluates all information it deems reasonably necessary under the circumstances in connection with its annual contract review. The Contract Committee consists solely of Trustees who are not “interested persons” (as this term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the Putnam funds (“Independent Trustees”).

At the outset of the review process, members of the Board’s independent staff and independent legal counsel met with representatives of Putnam Management to review the annual contract review materials furnished to the Contract Committee during the course of the previous year’s review and to discuss possible changes in these materials that might be necessary or desirable for the coming year. Following these discussions and in consultation with the Contract Committee, the Independent Trustees’ independent legal counsel requested that Putnam Management furnish specified information, together with any additional information that Putnam Management considered relevant, to the Contract Committee. Over the course of several months ending in June 2012, the Contract Committee met on a number of occasions with representatives of Putnam Management, and separately in executive session, to consider the information that Putnam Management provided. Throughout this process, the Contract Committee was assisted by the members of the Board’s independent staff and by independent legal counsel for the Putnam funds and the Independent Trustees.

In May 2012, the Contract Committee met in executive session with the other Independent Trustees to discuss the Contract Committee’s preliminary recommendations with respect to the continuance of the contracts. At the Trustees’ June 22, 2012 meeting, the Contract Committee met in executive session with the other Independent Trustees to review a summary of the key financial data that the Contract Committee considered in the course of its review. The Contract Committee then presented its written report, which summarized the key factors that the Committee had considered and set forth its final recommendations. The Contract Committee then recommended, and the Independent Trustees approved, the continuance of your fund’s management and sub-management contracts, effective July 1, 2012. (Because PIL is an affiliate of Putnam Management and Putnam Management remains fully responsible for all services provided by PIL, the Trustees have not evaluated PIL as a separate entity, and all subsequent references to Putnam Management below should be deemed to include reference to PIL as necessary or appropriate in the context.)

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

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

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

Master Intermediate Income Trust | 15

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

Management fee schedules and total expenses

The Trustees reviewed the management fee schedules in effect for all Putnam funds, including fee levels and breakpoints. In reviewing management fees, the Trustees generally focus their attention on material changes in circumstances — for example, changes in assets under management, changes in a fund’s investment style, changes in Putnam Management’s operating costs, or changes in competitive practices in the mutual fund industry — that suggest that consideration of fee changes might be warranted. The Trustees concluded that the circumstances did not warrant changes to the management fee structure of your fund.

Your fund has the benefit of breakpoints in its management fee that provide shareholders with significant economies of scale in the form of reduced fee levels as the fund’s assets under management increase. In recent years, the Trustees have examined the operation of the existing breakpoint structure during periods of both growth and decline in asset levels. The Trustees concluded that the fee schedule in effect for your fund represented an appropriate sharing of economies of scale at that time.

The Trustees reviewed comparative fee and expense information for a custom group of competitive funds selected by Lipper Inc. This comparative information included your fund’s percentile ranking for effective management fees and total expenses, which provides a general indication of your fund’s relative standing. In the custom peer group, your fund ranked in the 5th quintile in effective management fees (determined for your fund and the other funds in the custom peer group based on fund asset size and the applicable contractual management fee schedule) and in the 1st quintile in total expenses as of December 31, 2011 (the first quintile representing the least expensive funds and the fifth quintile the most expensive funds). The fee and expense data reported by Lipper as of December 31, 2011 reflected the most recent fiscal year-end data available in Lipper’s database at that time.

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

16 | Master Intermediate Income Trust

appropriate sharing of such economies of scale as may exist in the management of the funds at that time.

The information examined by the Trustees as part of their annual contract review for the Putnam funds has included for many years information regarding fees charged by Putnam Management and its affiliates to institutional clients such as defined benefit pension plans, college endowments, and the like. This information included comparisons of those fees with fees charged to the funds, as well as an assessment of the differences in the services provided to these different types of clients. The Trustees observed that the differences in fee rates between institutional clients and mutual funds are by no means uniform when examined by individual asset sectors, suggesting that differences in the pricing of investment management services to these types of clients may reflect historical competitive forces operating in separate markets. The Trustees considered the fact that in many cases fee rates across different asset classes are higher on average for mutual funds than for institutional clients, as well as the differences between the services that Putnam Management provides to the Putnam funds and those that it provides to its institutional clients. The Trustees did not rely on these comparisons to any significant extent in concluding that the management fees paid by your fund are reasonable.

Investment performance

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

The Trustees considered the investment performance of each fund over multiple time periods and considered information comparing each fund’s performance with various benchmarks and, where applicable, with the performance of competitive funds or targeted annualized return. They noted that since 2009, when Putnam Management began implementing major changes to strengthen its investment personnel and processes, there has been a steady improvement in the number of Putnam funds showing above-median three-year performance results. They also noted the disappointing investment performance of some funds for periods ended December 31, 2011 and considered information provided by Putnam Management regarding the factors contributing to the underperformance and actions being taken to improve the performance of these particular funds. The Trustees indicated their intention to continue to monitor performance trends to assess the effectiveness of these efforts and to evaluate whether additional actions to address areas of underperformance are warranted.

In the case of your fund, the Trustees considered that its common share cumulative total return performance at net asset value was in the following quartiles of its Lipper Inc. peer group (Lipper Flexible Income Funds (closed-end)) for the one-year, three-year and five-year periods ended December 31, 2011 (the first quartile representing the best-performing funds and the fourth quartile the worst-performing funds):

Master Intermediate Income Trust | 17

One-year period | 4th |
Three-year period | 2nd |
Five-year period | 4th |

Over the one-year, three-year and five-year periods ended December 31, 2011, there were 5, 4 and 4 funds, respectively, in your fund’s Lipper peer group. (When considering performance information, shareholders should be mindful that past performance is not a guarantee of future results.)

The Trustees, while noting that your fund’s investment performance over the three-year period ended December 31, 2011 had been favorable, expressed concern about your fund’s fourth quartile performance over the one- and five-year periods ended December 31, 2011 and considered the circumstances that may have contributed to this disappointing performance. The Trustees considered Putnam Management’s view that the fund’s underperformance over the one-year period was due in significant part to the fund’s relative emphasis on shorter duration investments, which reduced the fund’s sensitivity to interest rate changes but detracted from performance. In addition, performance in 2011 was hurt by the fund’s exposure to high yield, non-Agency residential mortgage-backed securities, and its exposure to emerging markets coupled with currency exposure to the Australian dollar. The Trustees also considered Putnam Management’s observation that the fund’s underperformance over the five-year period was due in significant part to the fund’s investments in commercial and residential mortgage-backed securities, which exhibited significant volatility and under-performed during the economic downturn in 2008.

The Trustees considered that, although the fund had not performed well over the one- and five-year periods ended December 31, 2011, the fund ranked in the second quartile for the three-year period, and that Putnam Management remained confident in the fund’s portfolio managers and their investment process. The Trustees also considered a number of other changes that Putnam Management had made in recent years in efforts to support and improve fund performance generally. In particular, the Trustees recognized that Putnam Management has adjusted the compensation structure for portfolio managers and research analysts so that only those who achieve top-quartile returns over a rolling three-year basis are eligible for full bonuses.

As a general matter, the Trustees believe that cooperative efforts between the Trustees and Putnam Management represent the most effective way to address investment performance problems. The Trustees noted that investors in the Putnam funds have, in effect, placed their trust in the Putnam organization, under the oversight of the funds’ Trustees, to make appropriate decisions regarding the management of the funds. Based on the responsiveness of Putnam Management in the recent past to performance issues, the Trustees concluded that it is preferable to seek change within Putnam Management to address performance shortcomings. In the Trustees’ view, the alternative of engaging a new investment adviser for an underperforming fund would entail significant disruptions and would not provide any greater assurance of improved investment performance.

Brokerage and soft-dollar allocations; investor servicing

The Trustees considered various potential benefits that Putnam Management may receive in connection with the services it provides under the management contract with your fund. These include benefits related to brokerage allocation and the use of soft dollars, whereby a portion of the commissions paid by a fund for brokerage may be used to acquire research services that are expected to be useful to Putnam Management in managing the assets of the fund and of other clients. Subject to policies established by the Trustees, soft-dollar credits acquired through these means are

18 | Master Intermediate Income Trust

used primarily to acquire research services that supplement Putnam Management’s internal research efforts. However, the Trustees noted that a portion of available soft-dollar credits continues to be allocated to the payment of fund expenses. The Trustees indicated their continued intent to monitor regulatory developments in this area with the assistance of their Brokerage Committee and also indicated their continued intent to monitor the potential benefits associated with fund brokerage and soft-dollar allocations and trends in industry practices to ensure that the principle of seeking best price and execution remains paramount in the portfolio trading process.

Putnam Management may also receive benefits from payments that the funds make to Putnam Management’s affiliates for investor services. In conjunction with the annual review of your fund’s management and sub-management contracts, the Trustees reviewed your fund’s investor servicing agreement with Putnam Investor Services, Inc. (“PSERV”), an affiliate of Putnam Management. The Trustees concluded that the fees payable by the funds to PSERV for such services are reasonable in relation to the nature and quality of such services.

Master Intermediate Income Trust | 19

Financial statements

These sections of the report, as well as the accompanying Notes, preceded by the Report of Independent Registered Public Accounting Firm, constitute the fund’s financial statements.

The fund’s portfolio lists all the fund’s investments and their values as of the last day of the reporting period. Holdings are organized by asset type and industry sector, country, or state to show areas of concentration and diversification.

Statement of assets and liabilities shows how the fund’s net assets and share price are determined. All investment and non-investment assets are added together. Any unpaid expenses and other liabilities are subtracted from this total. The result is divided by the number of shares to determine the net asset value per share. (For funds with preferred shares, the amount subtracted from total assets includes the liquidation preference of preferred shares.)

Statement of operations shows the fund’s net investment gain or loss. This is done by first adding up all the fund’s earnings — from dividends and interest income — and subtracting its operating expenses to determine net investment income (or loss). Then, any net gain or loss the fund realized on the sales of its holdings — as well as any unrealized gains or losses over the period — is added to or subtracted from the net investment result to determine the fund’s net gain or loss for the fiscal year.

Statement of changes in net assets shows how the fund’s net assets were affected by the fund’s net investment gain or loss, by distributions to shareholders, and by changes in the number of the fund’s shares. It lists distributions and their sources (net investment income or realized capital gains) over the current reporting period and the most recent fiscal year-end. The distributions listed here may not match the sources listed in the Statement of operations because the distributions are determined on a tax basis and may be paid in a different period from the one in which they were earned.

Financial highlights provide an overview of the fund’s investment results, per-share distributions, expense ratios, net investment income ratios, and portfolio turnover in one summary table, reflecting the five most recent reporting periods. In a semiannual report, the highlights table also includes the current reporting period.

20 | Master Intermediate Income Trust

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders
Putnam Master Intermediate Income Trust:

We have audited the accompanying statement of assets and liabilities of Putnam Master Intermediate Income Trust (the fund), including the fund’s portfolio, as of September 30, 2012, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits 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 and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2012, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Putnam Master Intermediate Income Trust as of September 30, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 14, 2012

Master Intermediate Income Trust | 21

The fund’s portfolio 9/30/12

MORTGAGE-BACKED SECURITIES (45.7%)* | Principal amount | Value
American Home Mortgage Assets Ser. 07-5, Class XP, PO, IO, |  |  |
2.781s, 2047 |  | $9,787,136 | $1,174,455
American Home Mortgage Investment Trust Ser. 07-1, |  |  |
Class GIOP, IO, 2.078s, 2047 |  | 1,265,447 | 177,163
Banc of America Commercial Mortgage, Inc. |  |  |
FRB Ser. 08-1, Class AJ, 6.438s, 2051 |  | 571,000 | 535,313
FRB Ser. 05-5, Class D, 5.405s, 2045 |  | 600,000 | 522,000
Banc of America Commercial Mortgage, Inc. 144A |  |  |
Ser. 01-1, Class J, 6 1/8s, 2036 |  | 163,000 | 128,770
Ser. 01-1, Class K, 6 1/8s, 2036 |  | 346,443 | 47,684
Ser. 07-5, Class XW, IO, 0.555s, 2051 |  | 101,911,055 | 1,328,104
Banc of America Funding Corp. |  |  |
FRB Ser. 06-A, Class 3A1, 2.942s, 2036 |  | 2,028,998 | 1,359,428
FRB Ser. 07-C, Class 07-C, 2.711s, 2036 |  | 2,152,673 | 1,781,336
FRB Ser. 06-G, Class 2A5, 0.499s, 2036 |  | 561,689 | 440,926
Barclays Capital, LLC Trust 144A |  |  |
FRB Ser. 11-RR4, Class 6A4, 15.143s, 2037 |  | 1,141,416 | 850,355
Ser. 09-RR7, Class 1A7, IO, 1.769s, 2046 |  | 18,422,114 | 782,940
Ser. 09-RR7, Class 2A7, IO, 1.589s, 2047 |  | 37,458,482 | 1,558,272
Ser. 09-RR7, Class 2A1, IO, 0 3/4s, 2047 |  | 45,861,145 | 1,169,458
Ser. 09-RR7, Class 1A1, IO, 0 3/4s, 2046 |  | 41,628,402 | 1,061,524
Bear Stearns Adjustable Rate Mortgage Trust |  |  |
FRB Ser. 05-10, Class A3, 2.648s, 2035 |  | 3,535,059 | 3,269,928
FRB Ser. 06-1, Class A1, 2.37s, 2036 |  | 391,128 | 358,860
Bear Stearns Commercial Mortgage Securities, Inc. |  |  |
FRB Ser. 07-PW17, Class AJ, 6.089s, 2050 |  | 1,492,000 | 1,193,600
FRB Ser. 06-PW12, Class AJ, 5.933s, 2038 |  | 718,000 | 648,920
Ser. 05-PWR7, Class D, 5.304s, 2041 |  | 441,000 | 386,292
Ser. 05-PWR7, Class B, 5.214s, 2041 |  | 697,000 | 648,210
Bear Stearns Mortgage Funding Trust |  |  |
Ser. 06-AR2, Class 1X, IO, 0.7s, 2046 |  | 6,838,078 | 179,158
Ser. 07-AR5, Class 1X2, IO, 0 1/2s, 2047 |  | 4,279,329 | 91,150
Ser. 06-AR5, Class 1X, IO, 0 1/2s, 2046 |  | 9,060,665 | 172,153
Ser. 06-AR3, Class 1X, IO, 0.4s, 2036 |  | 4,839,010 | 68,230
Citigroup Commercial Mortgage Trust FRB Ser. 05-C3, |  |  |
Class B, 5.029s, 2043 |  | 1,720,000 | 1,499,840
Citigroup Commercial Mortgage Trust 144A FRB Ser. 04-C1, |  |  |
Class G, 5.534s, 2040 |  | 3,000,000 | 2,889,000
Citigroup Mortgage Loan Trust, Inc. FRB Ser. 06-AR3, |  |  |
Class 1A2A, 5.584s, 2036 |  | 1,394,318 | 1,268,828
Citigroup Mortgage Loan Trust, Inc. 144A |  |  |
FRB Ser. 11-12, Class 2A2, 0.587s, 2035 |  | 900,000 | 587,250
FRB Ser. 12-1, Class 1A2, 0.587s, 2035 |  | 870,000 | 550,274
Citigroup/Deutsche Bank Commercial Mortgage Trust 144A |  |  |
Ser. 07-CD5, Class XS, IO, 0.074s, 2044 |  | 30,013,418 | 115,161
Cornerstone Titan PLC 144A |  |  |
FRB Ser. 05-CT1A, Class D, 1.88s, 2014 (United Kingdom) | GBP | 444,023 | 602,287
FRB Ser. 05-CT2A, Class E, 1.789s, 2014 (United Kingdom) | GBP | 145,267 | 208,774

22 | Master Intermediate Income Trust

MORTGAGE-BACKED SECURITIES (45.7%)* cont. | Principal amount | Value
Countrywide Alternative Loan Trust |  |
Ser. 06-0A19, Class XP, IO, 2.588s, 2047 | $12,411,066 | $961,857
Ser. 07-HY9, Class X, IO, 0.65s, 2047 | 5,657,648 | 229,701
Countrywide Home Loans |  |
Ser. 07-17, Class 1A2, 6s, 2037 | 1,693,251 | 1,627,408
Ser. 07-1, Class A8, 6s, 2037 | 1,733,136 | 1,627,003
Ser. 06-21, Class A1, 6s, 2037 | 824,166 | 725,266
Ser. 06-10, Class 1A16, 6s, 2036 | 1,064,524 | 926,136
Ser. 06-6, Class 06-6, 6s, 2036 | 488,871 | 436,195
Ser. 06-1, Class A2, 6s, 2036 | 931,021 | 821,625
FRB Ser. 05-HY10, Class 3A1B, 2.747s, 2036 | 2,516,068 | 1,761,247
Credit Suisse Mortgage Capital Certificates FRB Ser. 06-C1, |  |
Class AJ, 5.588s, 2039 | 184,000 | 188,361
CS First Boston Mortgage Securities Corp. Ser. 05-C6, |  |
Class AJ, 5.23s, 2040 | 613,000 | 648,211
CS First Boston Mortgage Securities Corp. 144A Ser. 02-CP5, |  |
Class M, 5 1/4s, 2035 | 344,030 | 17,202
DLJ Commercial Mortgage Corp. Ser. 98-CF2, Class B4, 6.04s, 2031 | 286,492 | 283,627
Federal Home Loan Mortgage Corp. |  |
IFB Ser. 3182, Class SP, 27.717s, 2032 | 276,808 | 450,637
IFB Ser. 3408, Class EK, 24.905s, 2037 | 153,993 | 248,441
IFB Ser. 2979, Class AS, 23.464s, 2034 | 76,236 | 102,236
IFB Ser. 3072, Class SM, 22.987s, 2035 | 222,548 | 355,195
IFB Ser. 3072, Class SB, 22.841s, 2035 | 199,365 | 316,961
IFB Ser. 3249, Class PS, 21.547s, 2036 | 173,809 | 266,607
IFB Ser. 3951, Class CS, IO, 6.529s, 2026 | 4,501,320 | 703,106
IFB Ser. 4098, Class MS, IO, 6.479s, 2041 | 4,184,625 | 912,415
IFB Ser. 3727, Class PS, IO, 6.479s, 2038 | 2,111,537 | 189,045
IFB Ser. 3895, Class SM, IO, 6.429s, 2040 | 4,729,470 | 633,601
IFB Ser. 4048, Class GS, IO, 6.429s, 2040 | 1,991,259 | 386,025
IFB Ser. 3940, Class PS, IO, 6.429s, 2040 | 5,693,270 | 901,814
IFB Ser. 3860, Class SP, IO, 6.379s, 2040 | 4,279,935 | 722,196
IFB Ser. 4032, Class SA, IO, 6.279s, 2042 | 5,358,602 | 722,840
IFB Ser. 3708, Class SA, IO, 6.229s, 2040 | 5,322,946 | 693,952
IFB Ser. 3780, Class PS, IO, 6.229s, 2035 | 2,450,190 | 206,256
IFB Ser. 4105, Class LS, IO, 5.9s, 2041 | 2,474,000 | 519,045
IFB Ser. 3922, Class CS, IO, 5.879s, 2041 | 2,069,066 | 315,410
IFB Ser. 3768, Class PS, IO, 5.779s, 2036 | 7,021,407 | 385,005
IFB Ser. 3753, Class S, IO, 5.729s, 2040 | 2,484,391 | 329,182
Ser. 3632, Class CI, IO, 5s, 2038 | 911,835 | 49,795
Ser. 3626, Class DI, IO, 5s, 2037 | 542,767 | 17,846
Ser. 4000, Class PI, IO, 4 1/2s, 2042 | 2,744,984 | 346,691
Ser. 4019, Class GI, IO, 4 1/2s, 2041 | 7,159,031 | 887,004
Ser. 3747, Class HI, IO, 4 1/2s, 2037 | 558,375 | 44,466
Ser. 4090, Class BI, IO, 4s, 2042 | 850,670 | 103,943
Ser. 4098, Class PI, IO, 4s, 2042 | 3,798,635 | 614,163
Ser. 4010, Class NI, IO, 4s, 2041 | 3,825,964 | 525,305
Ser. 3738, Class MI, IO, 4s, 2034 | 5,587,487 | 209,531
Ser. 3748, Class NI, IO, 4s, 2034 | 2,627,861 | 89,768
Ser. 3736, Class QI, IO, 4s, 2034 | 5,981,010 | 163,282
Ser. 3751, Class MI, IO, 4s, 2034 | 6,332,488 | 107,779

Master Intermediate Income Trust | 23

MORTGAGE-BACKED SECURITIES (45.7%)* cont. | Principal amount | Value
Federal Home Loan Mortgage Corp. |  |
Ser. T-57, Class 1AX, IO, 0.418s, 2043 | $2,817,945 | $34,412
Ser. 4077, Class TO, PO, zero %, 2041 | 1,207,144 | 1,031,817
Ser. 3124, Class DO, PO, zero %, 2036 | 3,617 | 3,571
FRB Ser. 3326, Class WF, zero %, 2035 | 9,706 | 8,735
FRB Ser. 3030, Class EF, zero %, 2035 | 3,921 | 3,911
Federal National Mortgage Association |  |
IFB Ser. 06-62, Class PS, 38.601s, 2036 | 327,992 | 603,264
IFB Ser. 07-53, Class SP, 23.406s, 2037 | 193,706 | 314,224
IFB Ser. 08-24, Class SP, 22.489s, 2038 | 174,201 | 273,495
IFB Ser. 05-75, Class GS, 19.601s, 2035 | 208,065 | 307,537
IFB Ser. 05-83, Class QP, 16.831s, 2034 | 230,926 | 325,559
IFB Ser. 10-99, Class NS, IO, 6.384s, 2039 | 4,269,773 | 411,692
IFB Ser. 404, Class S13, IO, 6.184s, 2040 | 4,472,628 | 660,184
IFB Ser. 10-35, Class SG, IO, 6.184s, 2040 | 3,272,515 | 432,037
IFB Ser. 12-113, Class CS, IO, 5.9s, 2041 | 1,816,000 | 363,091
IFB Ser. 12-113, Class SG, IO, 5.85s, 2042 | 1,953,000 | 361,754
IFB Ser. 10-46, Class WS, IO, 5.534s, 2040 | 3,353,514 | 423,951
Ser. 374, Class 6, IO, 5 1/2s, 2036 | 752,527 | 98,303
Ser. 398, Class C5, IO, 5s, 2039 | 566,174 | 54,240
Ser. 10-13, Class EI, IO, 5s, 2038 | 356,910 | 16,061
Ser. 378, Class 19, IO, 5s, 2035 | 1,744,849 | 191,933
Ser. 12-30, Class HI, IO, 4 1/2s, 2040 | 10,146,169 | 1,623,386
Ser. 409, Class 82, IO, 4 1/2s, 2040 | 7,252,034 | 912,033
Ser. 366, Class 22, IO, 4 1/2s, 2035 | 702,521 | 54,326
Ser. 12-75, Class AI, IO, 4 1/2s, 2027 | 2,953,468 | 307,574
Ser. 12-96, Class PI, IO, 4s, 2041 | 2,670,706 | 406,188
Ser. 406, Class 2, IO, 4s, 2041 | 3,187,115 | 355,045
Ser. 406, Class 1, IO, 4s, 2041 | 2,105,900 | 248,707
Ser. 409, Class C16, IO, 4s, 2040 | 4,630,559 | 487,196
Ser. 03-W10, Class 1, IO, 1.408s, 2043 | 660,746 | 30,095
Ser. 99-51, Class N, PO, zero %, 2029 | 27,829 | 26,870
FFCA Secured Lending Corp. 144A Ser. 00-1, Class X, IO, |  |
1.068s, 2020 | 2,669,748 | 56,732
GE Capital Commercial Mortgage Corp. |  |
FRB Ser. 05-C4, Class AJ, 5.483s, 2045 | 305,000 | 253,150
FRB Ser. 05-C1, Class D, 4.949s, 2048 | 1,850,000 | 1,799,310
GMAC Commercial Mortgage Securities, Inc. Ser. 04-C3, |  |
Class B, 4.965s, 2041 | 452,000 | 383,884
GMAC Commercial Mortgage Securities, Inc. 144A Ser. 02-C3, |  |
Class H, 5.944s, 2039 | 450,000 | 445,612
Government National Mortgage Association |  |
IFB Ser. 11-56, Class MS, 6.855s, 2041 | 2,858,504 | 3,132,520
IFB Ser. 10-151, Class SL, IO, 6.482s, 2039 | 2,312,638 | 323,237
IFB Ser. 10-163, Class SI, IO, 6.409s, 2037 | 3,833,061 | 584,542
IFB Ser. 10-120, Class SB, IO, 5.982s, 2035 | 841,095 | 57,245
IFB Ser. 10-20, Class SC, IO, 5.932s, 2040 | 228,653 | 34,753
IFB Ser. 10-116, Class SL, IO, 5.832s, 2039 | 1,344,899 | 180,338
IFB Ser. 10-61, Class SJ, IO, 5.829s, 2040 | 3,665,233 | 674,550
IFB Ser. 11-70, Class SM, IO, 5.669s, 2041 | 2,415,000 | 631,861
IFB Ser. 11-70, Class SH, IO, 5.669s, 2041 | 2,481,000 | 668,059

24 | Master Intermediate Income Trust

MORTGAGE-BACKED SECURITIES (45.7%)* cont. | Principal amount | Value
Government National Mortgage Association |  |
Ser. 11-140, Class BI, IO, 4 1/2s, 2040 | $1,564,381 | $141,045
Ser. 11-18, Class PI, IO, 4 1/2s, 2040 | 403,798 | 60,529
Ser. 10-168, Class PI, IO, 4 1/2s, 2039 | 1,559,449 | 176,545
Ser. 11-73, Class IP, IO, 4 1/2s, 2039 | 4,654,151 | 472,510
Ser. 10-158, Class IP, IO, 4 1/2s, 2039 | 4,752,951 | 533,804
Ser. 10-98, Class PI, IO, 4 1/2s, 2037 | 1,973,166 | 223,599
Ser. 11-116, Class BI, IO, 4s, 2026 | 7,479,368 | 844,944
Ser. 10-H03, Class DI, IO, 2.115s, 2060 | 6,099,918 | 640,491
Ser. 12-H02, Class AI, IO, 1.769s, 2062 | 6,056,878 | 461,837
Ser. 12-H05, Class AI, IO, 1.227s, 2062 | 16,957,698 | 900,963
Ser. 12-H04, Class FI, IO, 0.94s, 2062 | 16,831,995 | 799,520
Ser. 11-70, PO, zero %, 2041 | 5,109,701 | 4,331,288
Ser. 06-36, Class OD, PO, zero %, 2036 | 9,665 | 9,034
Greenpoint Mortgage Funding Trust Ser. 06-AR3, Class 4X, |  |
IO, 1s, 2036 | 4,845,820 | 183,172
Greenwich Capital Commercial Funding Corp. FRB Ser. 05-GG3, |  |
Class D, 4.986s, 2042 | 546,000 | 491,743
GS Mortgage Securities Corp. II Ser. 05-GG4, Class AJ, |  |
4.782s, 2039 | 606,000 | 604,062
GS Mortgage Securities Corp. II 144A Ser. 05-GG4, Class XC, |  |
IO, 0.925s, 2039 | 58,432,022 | 934,912
GSR Mortgage Loan Trust |  |
FRB Ser. 05-AR4, Class 3A5, 2.771s, 2035 | 725,000 | 644,344
FRB Ser. 06-AR1, Class 2A4, 2.705s, 2036 | 750,000 | 552,660
Harborview Mortgage Loan Trust |  |
FRB Ser. 05-9, Class 2A1C, 0.669s, 2035 | 680,727 | 589,170
FRB Ser. 05-8, Class 1A2B, 0.579s, 2035 | 732,440 | 175,786
FRB Ser. 05-8, Class 1A2A, 0.549s, 2035 | 619,245 | 411,798
FRB Ser. 06-7, Class 2A1A, 0.419s, 2046 | 4,092,940 | 2,905,986
IndyMac Index Mortgage Loan Trust FRB Ser. 06-AR39, |  |
Class A1, 0.397s, 2037 | 3,242,554 | 2,059,021
JPMorgan Chase Commercial Mortgage Securities Corp. |  |
Ser. 06-LDP6, Class AJ, 5.565s, 2043 | 443,000 | 412,454
FRB Ser. 05-LDP3, Class AJ, 5.171s, 2042 | 617,000 | 619,702
FRB Ser. 04-CBX, Class E, 5.126s, 2037 | 1,790,000 | 1,534,030
FRB Ser. 04-CBX, Class B, 5.021s, 2037 | 247,000 | 243,415
FRB Ser. 05-LDP2, Class C, 4.911s, 2042 | 350,000 | 311,530
FRB Ser. 05-LDP2, Class B, 4.882s, 2042 | 1,900,000 | 1,890,500
JPMorgan Chase Commercial Mortgage Securities Corp. 144A |  |
Ser. 07-CB20, Class X1, IO, 0.203s, 2051 | 61,461,540 | 608,223
JPMorgan Mortgage Trust FRB Ser. 06-A2, Class 1A3, 2.889s, 2036 | 1,641,273 | 1,311,991
LB Commercial Conduit Mortgage Trust 144A Ser. 99-C1, |  |
Class G, 6.41s, 2031 | 857,101 | 857,101
LB-UBS Commercial Mortgage Trust FRB Ser. 06-C6, Class AJ, |  |
5.452s, 2039 | 1,386,000 | 1,428,960
Merrill Lynch Alternative Note Asset Ser. 07-OAR5, Class X, |  |
PO, IO, 0.8s, 2047 | 3,548,447 | 106,453
Merrill Lynch Mortgage Investors, Inc. Ser. 96-C2, |  |
Class JS, IO, 2.408s, 2028 | 98,467 | 123

Master Intermediate Income Trust | 25

MORTGAGE-BACKED SECURITIES (45.7%)* cont. | Principal amount | Value
Merrill Lynch Mortgage Trust |  |
Ser. 06-C2, Class AJ, 5.802s, 2043 | $1,351,000 | $1,168,614
Ser. 05-LC1, Class AJ, 5.487s, 2044 | 431,000 | 450,934
Ser. 05-CKI1, Class AJ, 5.39s, 2037 | 885,000 | 897,390
Mezz Cap Commercial Mortgage Trust 144A |  |
Ser. 04-C1, Class X, IO, 9.115s, 2037 | 524,196 | 39,315
Ser. 07-C5, Class X, IO, 5.231s, 2049 | 2,034,385 | 150,951
Morgan Stanley Capital I |  |
Ser. 06-HQ9, Class C, 5.842s, 2044 | 1,100,000 | 970,342
FRB Ser. 07-T27, Class AJ, 5.823s, 2042 F | 829,000 | 783,729
Ser. 06-HQ9, Class AJ, 5.793s, 2044 | 1,450,000 | 1,487,261
FRB Ser. 06-HQ8, Class B, 5.678s, 2044 | 1,800,000 | 1,542,600
Ser. 04-IQ8, Class C, 5.3s, 2040 | 1,400,000 | 1,398,600
Morgan Stanley Capital I 144A FRB Ser. 04-RR, Class F7, 6s, 2039 | 1,595,878 | 1,428,310
Morgan Stanley ReREMIC Trust 144A FRB Ser. 10-C30A, |  |
Class A3B, 5.843s, 2043 | 1,215,429 | 1,251,891
Mortgage Capital Funding, Inc. Ser. 97-MC2, Class X, IO, |  |
1.988s, 2012 | 296 | —
Residential Asset Securitization Trust Ser. 07-A1, |  |
Class A1, 6s, 2037 | 460,460 | 359,159
STRIPS 144A Ser. 03-1A, Class N, 5s, 2018 | 193,000 | 193,000
Structured Asset Mortgage Investments Trust Ser. 07-AR6, |  |
Class X2, IO, 0 1/2s, 2047 | 15,900,153 | 324,363
Structured Asset Mortgage Investments, Inc. |  |
Ser. 06-AR6, Class 2X, IO, 1s, 2046 | 9,387,192 | 346,387
Ser. 07-AR1, Class 1X, IO, 0.6s, 2037 | 3,222,094 | 69,275
Ser. 06-AR8, Class X, IO, 0.4s, 2036 | 14,297,871 | 191,591
Structured Asset Securities Corp. IFB Ser. 07-4, Class 1A3, |  |
IO, 6.035s, 2045 | 3,202,374 | 608,451
Wachovia Bank Commercial Mortgage Trust |  |
FRB Ser. 06-C26, Class AJ, 6.199s, 2045 | 1,237,000 | 1,151,646
FRB Ser. 06-C25, Class AJ, 5.922s, 2043 | 528,000 | 512,794
FRB Ser. 05-C20, Class B, 5.42s, 2042 | 1,679,000 | 1,629,972
Ser. 07-C34, IO, 0.53s, 2046 | 16,157,878 | 195,510
WAMU Mortgage Pass-Through Certificates |  |
FRB Ser. 07-HY6, Class 2A1, 4.948s, 2037 | 813,101 | 618,770
FRB Ser. 07-HY1, Class 5A1, 4.866s, 2037 | 2,923,114 | 2,265,413
FRB Ser. 07-HY3, Class 2A1, 4.853s, 2037 | 2,607,767 | 2,070,905
FRB Ser. 07-HY2, Class 1A1, 2.657s, 2036 | 685,776 | 540,371
FRB Ser. 07-HY7, Class 2A1, 2.608s, 2037 | 730,981 | 498,529
FRB Ser. 05-AR12, Class 1A4, 2.488s, 2035 | 490,000 | 423,850
FRB Ser. 06-AR14, Class 1A4, 2.228s, 2036 | 556,994 | 428,885
FRB Ser. 06-AR1, Class 2A1B, 1.218s, 2046 | 414,587 | 352,399
FRB Ser. 06-AR1, Class 2A1C, 1.218s, 2046 | 1,954,482 | 987,014
FRB Ser. 06-AR9, Class 1A, 1.148s, 2046 | 3,356,808 | 2,576,350
FRB Ser. 06-AR15, Class 1A, 0.988s, 2046 | 2,226,000 | 1,691,760
FRB Ser. 06-AR17, Class 1A, 0.968s, 2046 | 2,042,880 | 1,460,658
FRB Ser. 07-OA6, Class 1A, 0.958s, 2047 | 605,699 | 454,274
FRB Ser. 06-AR17, Class 1A1, 0.958s, 2046 | 2,129,702 | 1,016,932
FRB Ser. 07-OA5, Class 1A, 0.898s, 2047 | 3,326,099 | 2,511,205
FRB Ser. 06-AR19, Class 1A, 0.888s, 2047 | 884,581 | 623,364

26 | Master Intermediate Income Trust

MORTGAGE-BACKED SECURITIES (45.7%)* cont. | Principal amount | Value
WAMU Mortgage Pass-Through Certificates |  |  |
FRB Ser. 05-AR11, Class A1C3, 0.727s, 2045 |  | $2,054,192 | $1,386,580
FRB Ser. 05-AR13, Class A1C3, 0.707s, 2045 |  | 3,653,865 | 2,273,617
FRB Ser. 05-AR17, Class A1C3, 0.697s, 2045 |  | 870,718 | 391,823
FRB Ser. 05-AR15, Class A1C3, 0.697s, 2045 |  | 1,009,904 | 373,665
FRB Ser. 05-AR8, Class 2AC2, 0.677s, 2045 |  | 1,332,292 | 1,092,479
FRB Ser. 05-AR11, Class A1C4, 0.657s, 2045 |  | 1,045,316 | 705,588
FRB Ser. 05-AR13, Class A1B2, 0.647s, 2045 |  | 966,782 | 778,260
FRB Ser. 2005-AR17, Class A1B2, 0.627s, 2045 |  | 633,137 | 493,847
FRB Ser. 05-AR11, Class A1B3, 0.617s, 2045 |  | 1,571,904 | 1,343,978
FRB Ser. 05-AR8, Class 2AC3, 0.607s, 2045 |  | 469,469 | 384,964
FRB Ser. 05-AR2, Class 2A1B, 0.587s, 2045 |  | 997,346 | 857,717
FRB Ser. 05-AR1, Class A3, 0.577s, 2045 |  | 529,440 | 452,671
FRB Ser. 05-AR15, Class A1A2, 0.497s, 2045 |  | 2,343,023 | 1,932,994
FRB Ser. 05-AR6, Class 2AB3, 0.487s, 2045 |  | 456,174 | 392,310
Washington Mutual Mortgage Pass-Through Certificates |  |  |
FRB Ser. 07-OA3, Class 5A, 2.366s, 2047 |  | 1,110,764 | 695,338
FRB Ser. 06-AR11, Class 1A, 1.108s, 2046 |  | 2,877,623 | 2,244,546
FRB Ser. 07-OA1, Class A1A, 0.848s, 2047 |  | 3,015,575 | 2,035,513
Wells Fargo Mortgage Backed Securities Trust |  |  |
Ser. 07-8, Class 2A8, 6s, 2037 |  | 3,549,181 | 3,531,436
Ser. 07-12, Class A7, 5 1/2s, 2037 |  | 346,302 | 355,306
FRB Ser. 07-AR3, Class A2, 5.395s, 2037 |  | 409,154 | 360,796
FRB Ser. 06-AR1, Class 2A5, 5.36s, 2036 |  | 890,000 | 872,200
FRB Ser. 05-AR16, Class 4A2, 2.648s, 2035 |  | 1,098,044 | 1,062,357
FRB Ser. 06-AR2, Class 2A1, 2.617s, 2036 |  | 3,070,197 | 2,935,876
FRB Ser. 05-AR15, Class 1A8, 2.617s, 2035 |  | 1,440,000 | 1,292,040
FRB Ser. 06-AR17, Class A1, 2.612s, 2036 |  | 657,268 | 558,678
Total mortgage-backed securities (cost $157,635,260) |  |  | $162,976,596
CORPORATE BONDS AND NOTES (30.4%)* | Principal amount | Value
Basic materials (1.6%) |  |  |
Ashland, Inc. 144A sr. unsec. notes 4 3/4s, 2022 |  | $70,000 | $71,575
Atkore International, Inc. company |  |  |
guaranty sr. notes 9 7/8s, 2018 |  | 302,000 | 293,695
Celanese US Holdings, LLC company guaranty sr. unsec. |  |  |
notes 6 5/8s, 2018 (Germany) |  | 270,000 | 295,650
Celanese US Holdings, LLC sr. notes 5 7/8s, 2021 (Germany) |  | 185,000 | 207,200
Ferro Corp. sr. unsec. notes 7 7/8s, 2018 |  | 283,000 | 273,095
FMG Resources August 2006 Pty, Ltd. 144A sr. notes 8 1/4s, |  |  |
2019 (Australia) |  | 135,000 | 130,950
FMG Resources August 2006 Pty, Ltd. 144A sr. notes 7s, 2015 |  |  |
(Australia) |  | 82,000 | 83,025
FMG Resources August 2006 Pty, Ltd. 144A sr. notes 6 7/8s, |  |  |
2018 (Australia) |  | 180,000 | 169,200
FMG Resources August 2006 Pty, Ltd. 144A sr. unsec. |  |  |
notes 6 7/8s, 2022 (Australia) |  | 110,000 | 100,925
Grohe Holding GmbH 144A company guaranty sr. notes FRN |  |  |
4.252s, 2017 (Germany) | EUR | 313,000 | 384,575
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance, ULC |  |  |
company guaranty sr. notes 8 7/8s, 2018 |  | $160,000 | 164,400

Master Intermediate Income Trust | 27

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Basic materials cont. |  |  |
Huntsman International, LLC company guaranty sr. unsec. |  |  |
sub. notes 8 5/8s, 2021 |  | $287,000 | $328,615
IAMGOLD Corp. 144A company guaranty sr. unsec. |  |  |
notes 6 3/4s, 2020 (Canada) |  | 81,000 | 79,380
INEOS Finance PLC 144A company guaranty sr. notes 9s, 2015 |  |  |
(United Kingdom) |  | 100,000 | 105,750
INEOS Finance PLC 144A company guaranty sr. notes 7 1/2s, |  |  |
2020 (United Kingdom) |  | 70,000 | 70,875
INEOS Group Holdings, Ltd. company guaranty sr. unsec. |  |  |
notes Ser. REGS, 7 7/8s, 2016 (United Kingdom) | EUR | 178,000 | 212,725
LyondellBasell Industries NV sr. unsec. notes 6s, 2021 |  |  |
(Netherlands) |  | $220,000 | 250,800
LyondellBasell Industries NV sr. unsec. unsub. notes 5s, |  |  |
2019 (Netherlands) |  | 415,000 | 440,938
Momentive Performance Materials, Inc. company |  |  |
guaranty notes 9 1/2s, 2021 | EUR | 135,000 | 124,676
Momentive Performance Materials, Inc. 144A company |  |  |
guaranty sr. notes 10s, 2020 |  | $35,000 | 35,263
Novelis, Inc. company guaranty sr. unsec. notes 8 3/4s, 2020 |  | 155,000 | 171,663
Novelis, Inc. company guaranty sr. unsec. notes 7 1/4s, 2015 |  | 243,000 | 244,215
Nufarm Australia Ltd. 144A company |  |  |
guaranty sr. notes 6 3/8s, 2019 (Australia) |  | 75,000 | 75,000
PH Glatfelter Co. 144A sr. notes 5 3/8s, 2020 |  | 30,000 | 30,600
Rockwood Specialties Group, Inc. company |  |  |
guaranty sr. unsec. notes 4 5/8s, 2020 |  | 40,000 | 40,550
Roofing Supply Group, LLC/Roofing Supply Finance, Inc. 144A |  |  |
company guaranty sr. unsec. notes 10s, 2020 |  | 130,000 | 141,700
Ryerson, Inc./Joseph T Ryerson & Son, Inc. 144A company |  |  |
guaranty sr. notes 9s, 2017 |  | 135,000 | 138,375
SGL Carbon SE company guaranty sr. sub. notes FRN |  |  |
Ser. EMTN, 1.599s, 2015 (Germany) | EUR | 152,000 | 191,612
Smurfit Kappa Funding PLC sr. unsec. sub. notes 7 3/4s, |  |  |
2015 (Ireland) |  | $115,000 | 116,288
Steel Dynamics, Inc. 144A company guaranty sr. unsec. |  |  |
notes 6 3/8s, 2022 |  | 30,000 | 30,975
Steel Dynamics, Inc. 144A company guaranty sr. unsec. |  |  |
notes 6 1/8s, 2019 |  | 40,000 | 41,600
TPC Group, LLC company guaranty sr. notes 8 1/4s, 2017 |  | 201,000 | 217,080
Tronox Finance, LLC 144A company guaranty sr. unsec. |  |  |
notes 6 3/8s, 2020 |  | 210,000 | 212,100
Verso Paper Holdings, LLC/Verso Paper, Inc. company |  |  |
guaranty sr. notes 8 3/4s, 2019 |  | 31,000 | 14,880
|  |  | 5,489,950
Capital goods (1.6%) |  |  |
ADS Waste Holdings, Inc. 144A sr. notes 8 1/4s, 2020 |  | 30,000 | 30,600
Altra Holdings, Inc. company guaranty sr. notes 8 1/8s, 2016 |  | 34,000 | 36,423
American Axle & Manufacturing, Inc. company |  |  |
guaranty sr. unsec. notes 7 3/4s, 2019 |  | 344,000 | 377,540
ARD Finance SA sr. notes Ser. REGS, 11 1/8s, 2018 |  |  |
(Luxembourg) ‡‡ | EUR | 105,562 | 135,709

28 | Master Intermediate Income Trust

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Capital goods cont. |  |  |
Ardagh Packaging Finance PLC sr. notes Ser. REGS, 7 3/8s, |  |  |
2017 (Ireland) | EUR | 140,000 | $190,989
B/E Aerospace, Inc. sr. unsec. unsub. notes 6 7/8s, 2020 |  | $298,000 | 330,780
B/E Aerospace, Inc. sr. unsec. unsub. notes 5 1/4s, 2022 |  | 140,000 | 144,900
Ball Corp. company guaranty sr. unsec. notes 5s, 2022 |  | 36,000 | 37,710
Berry Plastics Corp. company guaranty notes 9 1/2s, 2018 |  | 86,000 | 94,385
Berry Plastics Corp. company guaranty unsub. notes |  |  |
9 3/4s, 2021 |  | 24,000 | 27,360
Berry Plastics Holding Corp. company guaranty sr. unsec. |  |  |
sub. notes 10 1/4s, 2016 |  | 170,000 | 176,375
Briggs & Stratton Corp. company guaranty sr. unsec. |  |  |
notes 6 7/8s, 2020 |  | 159,000 | 173,310
Consolidated Container Co. LLC/Consolidated Container |  |  |
Capital, Inc. 144A company guaranty sr. unsec. |  |  |
notes 10 1/8s, 2020 |  | 105,000 | 112,613
Crown Euro Holdings SA 144A sr. notes 7 1/8s, 2018 (France) | EUR | 50,000 | 70,069
Kratos Defense & Security Solutions, Inc. company |  |  |
guaranty sr. notes 10s, 2017 |  | $307,000 | 331,560
Mueller Water Products, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 8 3/4s, 2020 |  | 22,000 | 24,860
Pittsburgh Glass Works, LLC 144A sr. notes 8 1/2s, 2016 |  | 288,000 | 267,840
Polypore International, Inc. company guaranty sr. unsec. |  |  |
notes 7 1/2s, 2017 |  | 115,000 | 123,913
Rexel SA company guaranty sr. unsec. notes 8 1/4s, |  |  |
2016 (France) | EUR | 229,000 | 322,465
Reynolds Group Issuer, Inc. company |  |  |
guaranty sr. notes 7 7/8s, 2019 |  | $100,000 | 107,750
Reynolds Group Issuer, Inc. company |  |  |
guaranty sr. notes 7 1/8s, 2019 |  | 130,000 | 137,150
Reynolds Group Issuer, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 9 7/8s, 2019 |  | 100,000 | 106,000
Reynolds Group Issuer, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 9s, 2019 |  | 100,000 | 102,000
Reynolds Group Issuer, Inc. 144A company |  |  |
guaranty sr. notes 5 3/4s, 2020 |  | 105,000 | 105,000
Reynolds Group Issuer, Inc./Reynolds Group |  |  |
Issuer, LLC/Reynolds Group Issuer Lu company |  |  |
guaranty sr. notes 7 3/4s, 2016 | EUR | 377,000 | 503,842
Ryerson, Inc. company guaranty sr. notes 12s, 2015 |  | $334,000 | 344,855
Tenneco, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 7 3/4s, 2018 |  | 150,000 | 163,125
Tenneco, Inc. company guaranty sr. unsub. notes 6 7/8s, 2020 |  | 140,000 | 153,300
Terex Corp. sr. unsec. sub. notes 8s, 2017 |  | 58,000 | 60,030
Thermadyne Holdings Corp. company guaranty sr. notes |  |  |
9s, 2017 |  | 331,000 | 352,515
Thermon Industries, Inc. company guaranty sr. notes |  |  |
9 1/2s, 2017 |  | 99,000 | 110,261
TransDigm, Inc. company guaranty unsec. sub. notes |  |  |
7 3/4s, 2018 |  | 226,000 | 249,730
|  |  | 5,504,959

Master Intermediate Income Trust | 29

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Communication services (4.0%) |  |  |
Bresnan Broadband Holdings, LLC 144A company |  |  |
guaranty sr. unsec. unsub. notes 8s, 2018 |  | $68,000 | $73,270
Cablevision Systems Corp. sr. unsec. unsub. notes 8 5/8s, 2017 |  | 155,000 | 180,188
Cablevision Systems Corp. sr. unsec. unsub. notes 8s, 2020 |  | 150,000 | 167,250
Cablevision Systems Corp. sr. unsec. unsub. notes 7 3/4s, 2018 |  | 45,000 | 49,838
CCO Holdings, LLC/CCO Holdings Capital Corp. company |  |  |
guaranty sr. unsec. notes 7 7/8s, 2018 |  | 51,000 | 55,208
CCO Holdings, LLC/CCO Holdings Capital Corp. company |  |  |
guaranty sr. unsec. notes 6 1/2s, 2021 |  | 131,000 | 140,498
CCO Holdings, LLC/CCO Holdings Capital Corp. company |  |  |
guaranty sr. unsub. notes 7s, 2019 |  | 121,000 | 131,436
Cequel Communications Holdings I, LLC/Cequel Capital Corp. |  |  |
144A sr. notes 8 5/8s, 2017 |  | 146,000 | 155,855
Cincinnati Bell, Inc. company guaranty sr. unsec. |  |  |
sub. notes 8 3/4s, 2018 |  | 170,000 | 172,975
Cincinnati Bell, Inc. company guaranty sr. unsec. |  |  |
sub. notes 8 1/4s, 2017 |  | 78,000 | 83,265
Clearwire Communications, LLC/Clearwire Finance, Inc. 144A |  |  |
company guaranty sr. notes 12s, 2015 |  | 355,000 | 351,450
Cricket Communications, Inc. company guaranty sr. unsec. |  |  |
notes 7 3/4s, 2020 |  | 233,000 | 227,175
Cricket Communications, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 10s, 2015 |  | 354,000 | 372,585
Cricket Communications, Inc. company |  |  |
guaranty sr. unsub. notes 7 3/4s, 2016 |  | 480,000 | 506,400
Crown Castle International Corp. sr. unsec. notes 7 1/8s, 2019 |  | 70,000 | 75,950
Digicel, Ltd. 144A sr. unsec. notes 8 1/4s, 2017 (Jamaica) |  | 326,000 | 352,080
DISH DBS Corp. company guaranty 6 5/8s, 2014 |  | 517,000 | 560,945
DISH DBS Corp. company guaranty sr. unsec. notes 7 3/4s, 2015 |  | 117,000 | 131,625
DISH DBS Corp. company guaranty sr. unsec. notes 6 3/4s, 2021 |  | 192,000 | 209,280
Equinix, Inc. sr. unsec. notes 7s, 2021 |  | 130,000 | 145,600
Frontier Communications Corp. sr. unsec. notes 9 1/4s, 2021 |  | 65,000 | 75,238
Frontier Communications Corp. sr. unsec. notes 8 1/8s, 2018 |  | 753,000 | 847,125
Hughes Satellite Systems Corp. company |  |  |
guaranty sr. notes 6 1/2s, 2019 |  | 214,000 | 228,980
Hughes Satellite Systems Corp. company guaranty sr. unsec. |  |  |
notes 7 5/8s, 2021 |  | 260,000 | 287,950
Inmarsat Finance PLC 144A company |  |  |
guaranty sr. notes 7 3/8s, 2017 (United Kingdom) |  | 365,000 | 394,200
Intelsat Jackson Holdings SA company guaranty sr. unsec. |  |  |
notes 7 1/2s, 2021 (Bermuda) |  | 140,000 | 151,550
Intelsat Jackson Holdings SA 144A sr. unsec. notes 6 5/8s, |  |  |
2022 (Bermuda) |  | 80,000 | 79,600
Intelsat Luxembourg SA company guaranty sr. unsec. |  |  |
notes 11 1/2s, 2017 (Luxembourg) ‡‡ |  | 948,812 | 1,005,741
Intelsat Luxembourg SA company guaranty sr. unsec. |  |  |
notes 11 1/4s, 2017 (Luxembourg) |  | 253,000 | 267,548
Kabel Deutschland GmbH 144A sr. bonds 6 1/2s, |  |  |
2018 (Germany) | EUR | 105,000 | 143,578

30 | Master Intermediate Income Trust

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Communication services cont. |  |  |
Level 3 Financing, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 9 3/8s, 2019 |  | $124,000 | $137,640
Level 3 Financing, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 8 5/8s, 2020 |  | 143,000 | 154,440
Level 3 Financing, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 8 1/8s, 2019 |  | 40,000 | 42,500
Level 3 Financing, Inc. 144A company guaranty sr. unsec. |  |  |
unsub. notes 7s, 2020 |  | 17,000 | 17,170
Mediacom, LLC/Mediacom Capital Corp. sr. unsec. |  |  |
notes 9 1/8s, 2019 |  | 59,000 | 65,195
MetroPCS Wireless, Inc. company guaranty sr. unsec. |  |  |
notes 7 7/8s, 2018 |  | 407,000 | 441,595
Nextel Communications, Inc. company guaranty sr. unsec. |  |  |
notes Ser. D, 7 3/8s, 2015 |  | 10,000 | 10,038
NII Capital Corp. company guaranty sr. unsec. |  |  |
unsub. notes 10s, 2016 |  | 360,000 | 354,600
NII Capital Corp. company guaranty sr. unsec. |  |  |
unsub. notes 8 7/8s, 2019 |  | 14,000 | 11,760
NII Capital Corp. company guaranty sr. unsec. |  |  |
unsub. notes 7 5/8s, 2021 |  | 51,000 | 40,800
PAETEC Holding Corp. company guaranty sr. notes 8 7/8s, 2017 |  | 261,000 | 283,185
PAETEC Holding Corp. company guaranty sr. unsec. |  |  |
notes 9 7/8s, 2018 |  | 156,000 | 178,620
Phones4U Finance PLC 144A sr. notes 9 1/2s, 2018 |  |  |
(United Kingdom) | GBP | 180,000 | 292,844
Qwest Corp. sr. unsec. notes 7 1/2s, 2014 |  | $75,000 | 83,668
SBA Telecommunications, Inc. company guaranty sr. unsec. |  |  |
notes 8 1/4s, 2019 |  | 68,000 | 75,990
SBA Telecommunications, Inc. 144A company |  |  |
guaranty sr. unsec. unsub. notes 5 3/4s, 2020 |  | 55,000 | 57,750
Sprint Nextel Corp. sr. notes 8 3/8s, 2017 |  | 801,000 | 891,113
Sprint Nextel Corp. sr. unsec. notes 6s, 2016 |  | 147,000 | 151,410
Sprint Nextel Corp. sr. unsec. unsub. notes 9 1/8s, 2017 |  | 160,000 | 181,200
Sprint Nextel Corp. sr. unsec. unsub. notes 7s, 2020 |  | 122,000 | 126,880
Sprint Nextel Corp. 144A company guaranty sr. unsec. |  |  |
notes 9s, 2018 |  | 418,000 | 500,555
Telenet Finance V Luxembourg SCA 144A bonds 6 3/4s, 2024 |  |  |
(Luxembourg) | EUR | 100,000 | 129,629
Telenet Finance V Luxembourg SCA 144A bonds 6 1/4s, 2022 |  |  |
(Luxembourg) |  | $100,000 | 129,148
TW Telecom Holdings, Inc. 144A company guaranty sr. unsec. |  |  |
notes 5 3/8s, 2022 |  | 50,000 | 50,938
Unitymedia KabelBW GmbH company guaranty sr. unsec. |  |  |
notes Ser. REGS, 9 5/8s, 2019 (Germany) | EUR | 293,000 | 416,645
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH |  |  |
sr. notes 7 1/2s, 2019 (Germany) | EUR | 130,000 | 184,180
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH 144A |  |  |
company guaranty sr. notes 8 1/8s, 2017 (Germany) | EUR | 218,000 | 301,488
UPC Holdings BV bonds 8 3/8s, 2020 (Netherlands) |  | $361,000 | 500,523

Master Intermediate Income Trust | 31

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Communication services cont. |  |  |
Virgin Media Finance PLC company guaranty sr. unsec. |  |  |
bonds 8 7/8s, 2019 (United Kingdom) | GBP | 50,000 | $90,756
Wind Acquisition Finance SA 144A company |  |  |
guaranty sr. notes 7 3/8s, 2018 (Luxembourg) | EUR | 325,000 | 375,192
Windstream Corp. company guaranty sr. unsec. |  |  |
unsub. notes 8 1/8s, 2018 |  | $60,000 | 64,800
Windstream Corp. company guaranty sr. unsec. |  |  |
unsub. notes 7 7/8s, 2017 |  | 247,000 | 276,023
Windstream Corp. company guaranty sr. unsec. |  |  |
unsub. notes 7 3/4s, 2021 |  | 109,000 | 117,448
|  |  | 14,360,106
Consumer cyclicals (5.6%) |  |  |
Academy, Ltd./Academy Finance Corp. 144A company |  |  |
guaranty sr. unsec. notes 9 1/4s, 2019 |  | 25,000 | 27,625
Affinion Group Holdings, Inc. company guaranty sr. unsec. |  |  |
notes 11 5/8s, 2015 |  | 20,000 | 13,600
Affinion Group, Inc. company guaranty sr. unsec. |  |  |
notes 7 7/8s, 2018 |  | 407,000 | 332,723
Affinion Group, Inc. company guaranty sr. unsec. |  |  |
sub. notes 11 1/2s, 2015 |  | 250,000 | 207,500
AMC Entertainment, Inc. company |  |  |
guaranty sr. sub. notes 9 3/4s, 2020 |  | 150,000 | 168,938
American Casino & Entertainment Properties LLC |  |  |
sr. notes 11s, 2014 |  | 225,000 | 234,000
ARAMARK Holdings Corp. 144A sr. unsec. notes 8 5/8s, 2016 ‡‡ |  | 74,000 | 75,851
Ashtead Capital, Inc. 144A company |  |  |
guaranty sr. notes 6 1/2s, 2022 |  | 80,000 | 84,000
Autonation, Inc. company guaranty sr. unsec. notes 6 3/4s, 2018 |  | 255,000 | 286,556
Autonation, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 5 1/2s, 2020 |  | 55,000 | 58,781
Beazer Homes USA, Inc. company guaranty sr. unsec. |  |  |
notes 6 7/8s, 2015 |  | 75,000 | 75,375
Beazer Homes USA, Inc. sr. unsec. notes 9 1/8s, 2019 |  | 71,000 | 71,355
Bon-Ton Department Stores, Inc. (The) 144A company |  |  |
guaranty sr. notes 10 5/8s, 2017 |  | 285,000 | 257,213
Building Materials Corp. 144A company |  |  |
guaranty sr. notes 7 1/2s, 2020 |  | 100,000 | 109,250
Building Materials Corp. 144A sr. notes 6 7/8s, 2018 |  | 75,000 | 80,438
Building Materials Corp. 144A sr. notes 6 3/4s, 2021 |  | 180,000 | 197,100
Burlington Coat Factory Warehouse Corp. company |  |  |
guaranty sr. unsec. notes 10s, 2019 |  | 140,000 | 154,875
Caesars Entertainment Operating Co., Inc. company |  |  |
guaranty sr. notes 10s, 2018 |  | 260,000 | 170,300
Caesars Entertainment Operating Co., Inc. |  |  |
sr. notes 11 1/4s, 2017 |  | 154,000 | 165,550
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management |  |  |
Corp. company guaranty sr. unsec. notes 9 1/8s, 2018 |  | 70,000 | 79,538
Cenveo Corp. company guaranty sr. notes 8 7/8s, 2018 |  | 110,000 | 104,225
Choice Hotels International, Inc. company |  |  |
guaranty sr. unsec. unsub. notes 5 3/4s, 2022 |  | 75,000 | 81,750

32 | Master Intermediate Income Trust

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Consumer cyclicals cont. |  |  |
Chrysler Group, LLC/CG Co-Issuer, Inc. company |  |  |
guaranty notes 8 1/4s, 2021 |  | $305,000 | $324,825
Cinemark USA, Inc. company guaranty sr. unsec. |  |  |
sub. notes 7 3/8s, 2021 |  | 40,000 | 44,500
CityCenter Holdings LLC/CityCenter Finance Corp. company |  |  |
guaranty 10 3/4s, 2017 ‡‡ |  | 319,905 | 341,499
Clear Channel Communications, Inc. company |  |  |
guaranty sr. notes 9s, 2021 |  | 135,000 | 120,150
Clear Channel Worldwide Holdings, Inc. company |  |  |
guaranty sr. unsec. notes 7 5/8s, 2020 |  | 186,000 | 181,815
Clear Channel Worldwide Holdings, Inc. company |  |  |
guaranty sr. unsec. unsub. notes Ser. B, 9 1/4s, 2017 |  | 299,000 | 322,173
Compucom Systems, Inc. 144A sr. sub. notes 12 1/2s, 2015 |  | 155,000 | 160,813
Conti-Gummi Finance B.V. company guaranty bonds Ser. REGS, |  |  |
7 1/8s, 2018 (Netherlands) | EUR | 257,000 | 353,541
Cumulus Media Holdings, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 7 3/4s, 2019 |  | $266,000 | 258,685
DR Horton, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 4 3/8s, 2022 |  | 80,000 | 79,500
FelCor Lodging LP company guaranty sr. notes 6 3/4s, 2019 R |  | 300,000 | 321,750
Ford Motor Credit Co., LLC sr. unsec. notes 5s, 2018 |  | 385,000 | 420,313
Ford Motor Credit Co., LLC sr. unsec. unsub. notes 5 7/8s, 2021 |  | 410,000 | 464,508
Gray Television, Inc. company guaranty sr. notes 10 1/2s, 2015 |  | 210,000 | 227,588
Gray Television, Inc. 144A company guaranty sr. unsec. |  |  |
notes 7 1/2s, 2020 |  | 125,000 | 124,375
Great Canadian Gaming Corp. 144A company |  |  |
guaranty sr. unsec. notes 6 5/8s, 2022 (Canada) | CAD | 260,000 | 272,843
Grupo Televisa, S.A.B sr. unsec. notes 6s, 2018 (Mexico) |  | $226,000 | 268,219
Hanesbrands, Inc. company guaranty sr. unsec. notes |  |  |
6 3/8s, 2020 |  | 175,000 | 189,875
HD Supply, Inc. 144A company guaranty sr. notes 8 1/8s, 2019 |  | 195,000 | 212,550
Host Hotels & Resorts LP company guaranty sr. unsec. |  |  |
unsub. notes 4 3/4s, 2023 R |  | 55,000 | 57,200
Interactive Data Corp. company guaranty sr. unsec. |  |  |
notes 10 1/4s, 2018 |  | 434,000 | 486,080
Isle of Capri Casinos, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 7 3/4s, 2019 |  | 356,000 | 382,700
Isle of Capri Casinos, Inc. 144A company |  |  |
guaranty sr. sub. notes 8 7/8s, 2020 |  | 130,000 | 137,150
ISS Holdings A/S sr. sub. notes Ser. REGS, 8 7/8s, 2016 |  |  |
(Denmark) | EUR | 216,000 | 285,898
Jarden Corp. company guaranty sr. unsec. sub. notes Ser. 1, |  |  |
7 1/2s, 2020 | EUR | 50,000 | 68,946
Jeld-Wen Escrow Corp. 144A sr. notes 12 1/4s, 2017 |  | $310,000 | 352,625
K Hovnanian Enterprises, Inc. 144A company |  |  |
guaranty notes 9 1/8s, 2020 |  | 50,000 | 50,250
K Hovnanian Enterprises, Inc. 144A sr. notes 7 1/4s, 2020 |  | 115,000 | 117,300
KB Home company guaranty sr. unsec. unsub. notes 7 1/2s, 2022 |  | 20,000 | 21,300
Lamar Media Corp. company guaranty sr. notes 9 3/4s, 2014 |  | 100,000 | 112,000

Master Intermediate Income Trust | 33

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Consumer cyclicals cont. |  |  |
Lamar Media Corp. company guaranty sr. sub. notes 5 7/8s, 2022 |  | $55,000 | $58,575
Lender Processing Services, Inc. company |  |  |
guaranty sr. unsec. unsub. notes 8 1/8s, 2016 |  | 795,000 | 830,775
Lender Processing Services, Inc. company |  |  |
guaranty sr. unsec. unsub. notes 5 3/4s, 2023 |  | 200,000 | 200,000
Lennar Corp. 144A company guaranty sr. notes 4 3/4s, 2017 |  | 55,000 | 56,788
Limited Brands, Inc. company guaranty sr. unsec. |  |  |
notes 6 5/8s, 2021 |  | 155,000 | 176,313
Limited Brands, Inc. sr. notes 5 5/8s, 2022 |  | 85,000 | 91,269
Macy’s Retail Holdings, Inc. company guaranty sr. unsec. |  |  |
notes 5.9s, 2016 |  | 195,000 | 227,687
Mashantucket Western Pequot Tribe 144A bonds Ser. A, |  |  |
8 1/2s, 2015 (In default) † |  | 340,000 | 30,600
Masonite International Corp., 144A company |  |  |
guaranty sr. notes 8 1/4s, 2021 (Canada) |  | 123,000 | 129,765
MGM Resorts International company guaranty sr. notes 9s, 2020 |  | 45,000 | 50,231
MGM Resorts International company guaranty sr. unsec. |  |  |
notes 6 7/8s, 2016 |  | 65,000 | 67,925
MGM Resorts International company guaranty sr. unsec. |  |  |
notes 6 5/8s, 2015 |  | 205,000 | 219,350
MGM Resorts International company guaranty sr. unsec. |  |  |
unsub. notes 7 3/4s, 2022 |  | 110,000 | 114,675
MGM Resorts International 144A company guaranty sr. unsec. |  |  |
notes 6 3/4s, 2020 |  | 120,000 | 120,000
MTR Gaming Group, Inc. company guaranty notes 11 1/2s, 2019 ‡‡ |  | 525,213 | 552,787
Navistar International Corp. sr. notes 8 1/4s, 2021 |  | 431,000 | 409,450
Needle Merger Sub Corp. 144A sr. unsec. notes 8 1/8s, 2019 |  | 135,000 | 137,700
Nielsen Finance, LLC/Nielsen Finance Co. company |  |  |
guaranty sr. unsec. notes 7 3/4s, 2018 (Netherlands) |  | 52,000 | 58,630
Nielsen Finance, LLC/Nielsen Finance Co. 144A sr. unsec. |  |  |
notes 4 1/2s, 2020 (Netherlands) |  | 89,000 | 88,333
Nortek, Inc. company guaranty sr. unsec. notes 10s, 2018 |  | 290,000 | 320,450
Nortek, Inc. company guaranty sr. unsec. notes 8 1/2s, 2021 |  | 155,000 | 165,075
Owens Corning company guaranty sr. unsec. notes 9s, 2019 |  | 542,000 | 681,565
Penn National Gaming, Inc. sr. unsec. sub. notes 8 3/4s, 2019 |  | 50,000 | 56,000
Penske Automotive Group, Inc. 144A company |  |  |
guaranty sr. sub. notes 5 3/4s, 2022 |  | 160,000 | 164,000
PETCO Animal Supplies, Inc. 144A company |  |  |
guaranty sr. notes 9 1/4s, 2018 |  | 100,000 | 110,000
Pinnacle Entertainment, Inc. company guaranty sr. unsec. |  |  |
notes 8 5/8s, 2017 |  | 55,000 | 60,088
Polish Television Holding BV sr. notes stepped-coupon |  |  |
Ser. REGS, 11 1/4s (13s, 11/15/14), 2017 (Netherlands) †† | EUR | 380,000 | 509,458
QVC Inc. 144A sr. notes 7 1/2s, 2019 |  | $120,000 | 132,781
Realogy Corp. 144A company guaranty sr. notes 7 7/8s, 2019 |  | 50,000 | 52,500
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh |  |  |
Finance Corp. 144A sr. notes 9 1/2s, 2019 |  | 55,000 | 58,713
Sabre Holdings Corp. sr. unsec. unsub. notes 8.35s, 2016 |  | 152,000 | 154,280
Sabre, Inc. 144A sr. notes 8 1/2s, 2019 |  | 174,000 | 179,655

34 | Master Intermediate Income Trust

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Consumer cyclicals cont. |  |  |
Schaeffler Finance BV 144A company |  |  |
guaranty sr. notes 8 3/4s, 2019 (Germany) | EUR | 310,000 | $450,153
Scotts Miracle-Gro Co. (The) company guaranty sr. unsec. |  |  |
unsub. notes 6 5/8s, 2020 |  | $140,000 | 150,850
Sealy Mattress Co. 144A company guaranty sr. notes |  |  |
10 7/8s, 2016 |  | 87,000 | 95,048
Sears Holdings Corp. company guaranty 6 5/8s, 2018 |  | 139,000 | 129,618
Sinclair Television Group, Inc. 144A sr. notes 6 1/8s, 2022 |  | 70,000 | 70,175
Sirius XM Radio, Inc. 144A sr. unsec. notes 5 1/4s, 2022 |  | 20,000 | 19,850
Spectrum Brands Holdings, Inc. Company |  |  |
guaranty sr. notes 9 1/2s, 2018 |  | 385,000 | 434,088
Spectrum Brands Holdings, Inc. 144A sr. notes 6 3/4s, 2020 |  | 110,000 | 113,575
SugarHouse HSP Gaming Prop. Mezz LP/SugarHouse HSP Gaming |  |  |
Finance Corp. 144A notes 8 5/8s, 2016 |  | 30,000 | 32,175
Toys R Us — Delaware, Inc. 144A company |  |  |
guaranty sr. notes 7 3/8s, 2016 |  | 45,000 | 45,788
Toys R Us Property Co., LLC company guaranty sr. unsec. |  |  |
notes 10 3/4s, 2017 |  | 293,000 | 319,370
Toys R Us, Inc. 144A sr. unsec. notes 10 3/8s, 2017 |  | 55,000 | 56,031
Travelport, LLC company guaranty sr. unsec. |  |  |
sub. notes 11 7/8s, 2016 |  | 127,000 | 47,943
Travelport, LLC company guaranty sr. unsec. |  |  |
unsub. notes 9 7/8s, 2014 |  | 26,000 | 20,800
Travelport, LLC 144A sr. notes 6.362s, 2016 †† |  | 48,000 | 36,480
Travelport, LLC/Travelport, Inc. company |  |  |
guaranty sr. unsec. notes 9s, 2016 |  | 127,000 | 90,805
TRW Automotive, Inc. company guaranty sr. unsec. |  |  |
unsub. notes Ser. REGS, 6 3/8s, 2014 | EUR | 110,000 | 148,864
TRW Automotive, Inc. 144A company |  |  |
guaranty sr. notes 7 1/4s, 2017 |  | $350,000 | 399,875
Univision Communications, Inc. 144A sr. notes 6 7/8s, 2019 |  | 200,000 | 206,000
Wynn Las Vegas, LLC/Wynn Las Vegas Capital Corp. company |  |  |
guaranty 1st mtge. notes 7 3/4s, 2020 |  | 36,000 | 40,050
XM Satellite Radio, Inc. 144A sr. unsec. notes 7 5/8s, 2018 |  | 524,000 | 579,020
YCC Holdings, LLC/Yankee Finance, Inc. sr. unsec. |  |  |
notes 10 1/4s, 2016 ‡‡ |  | 135,000 | 139,725
Yonkers Racing Corp. 144A sr. notes 11 3/8s, 2016 |  | 350,000 | 378,000
|  |  | 20,067,215
Consumer staples (1.9%) |  |  |
Anheuser-Busch InBev Worldwide, Inc. company |  |  |
guaranty sr. unsec. notes 9 3/4s, 2015 | BRL | 1,400,000 | 781,735
Avis Budget Car Rental, LLC company guaranty sr. unsec. |  |  |
unsub. notes 9 5/8s, 2018 |  | $105,000 | 116,550
Avis Budget Car Rental, LLC company guaranty sr. unsec. |  |  |
unsub. notes 8 1/4s, 2019 |  | 50,000 | 54,438
Avis Budget Car Rental, LLC company guaranty sr. unsec. |  |  |
unsub. notes 7 3/4s, 2016 |  | 299,000 | 307,599
Burger King Corp. company guaranty sr. unsec. notes |  |  |
9 7/8s, 2018 |  | 184,000 | 213,440
CKE Holdings, Inc. 144A sr. unsec. notes 10 1/2s, 2016 ‡‡ |  | 111,981 | 122,059

Master Intermediate Income Trust | 35

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Consumer staples cont. |  |  |
Claire’s Stores, Inc. company guaranty sr. notes 8 7/8s, 2019 |  | $124,000 | $114,080
Claire’s Stores, Inc. 144A sr. notes 9s, 2019 |  | 300,000 | 310,500
Constellation Brands, Inc. company guaranty sr. unsec. |  |  |
notes 7 1/4s, 2017 |  | 23,000 | 26,853
Constellation Brands, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 7 1/4s, 2016 |  | 111,000 | 127,095
Constellation Brands, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 6s, 2022 |  | 90,000 | 102,375
Constellation Brands, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 4 5/8s, 2023 |  | 45,000 | 45,675
Corrections Corporation of America company |  |  |
guaranty sr. notes 7 3/4s, 2017 |  | 257,000 | 274,990
Dean Foods Co. company guaranty sr. unsec. unsub. notes 7s, 2016 |  | 118,000 | 127,440
DineEquity, Inc. company guaranty sr. unsec. notes 9 1/2s, 2018 |  | 115,000 | 129,663
Dole Food Co. 144A sr. notes 8s, 2016 |  | 87,000 | 91,024
EC Finance PLC company guaranty sr. bonds Ser. REGS, |  |  |
9 3/4s, 2017 (United Kingdom) | EUR | 161,000 | 218,723
Elizabeth Arden, Inc. sr. unsec. unsub. notes 7 3/8s, 2021 |  | $165,000 | 184,800
Enterprise Inns PLC sr. unsub. mtge. notes 6 1/2s, 2018 |  |  |
(United Kingdom) | GBP | 100,000 | 141,808
Hertz Corp. (The) company guaranty sr. unsec. notes |  |  |
7 1/2s, 2018 |  | $65,000 | 70,200
Hertz Holdings Netherlands BV 144A sr. bonds 8 1/2s, 2015 |  |  |
(Netherlands) | EUR | 156,000 | 216,124
JBS USA, LLC/JBS USA Finance, Inc. 144A sr. unsec. |  |  |
notes 8 1/4s, 2020 |  | $67,000 | 66,833
JBS USA, LLC/JBS USA Finance, Inc. 144A sr. unsec. |  |  |
notes 7 1/4s, 2021 |  | 350,000 | 325,500
Libbey Glass, Inc. 144A company guaranty sr. notes |  |  |
6 7/8s, 2020 |  | 119,000 | 127,925
Post Holdings, Inc. 144A sr. unsec. notes 7 3/8s, 2022 |  | 70,000 | 74,375
Prestige Brands, Inc. company guaranty sr. unsec. |  |  |
notes 8 1/4s, 2018 |  | 215,000 | 236,500
Rite Aid Corp. company guaranty sr. notes 7 1/2s, 2017 |  | 315,000 | 323,663
Rite Aid Corp. company guaranty sr. unsec. |  |  |
unsub. notes 9 1/2s, 2017 |  | 321,000 | 330,229
Rite Aid Corp. company guaranty sr. unsec. |  |  |
unsub. notes 9 1/4s, 2020 |  | 235,000 | 240,875
Rite Aid Corp. company guaranty sr. unsub. notes 8s, 2020 |  | 55,000 | 62,425
Service Corporation International sr. notes 7s, 2019 |  | 80,000 | 88,400
Smithfield Foods, Inc. sr. unsec. unsub. notes 6 5/8s, 2022 |  | 145,000 | 150,438
Stewart Enterprises, Inc. company guaranty sr. unsec. |  |  |
notes 6 1/2s, 2019 |  | 185,000 | 198,875
UR Merger Sub Corp. company guaranty sr. unsec. |  |  |
unsub. notes 9 1/4s, 2019 |  | 565,000 | 637,038
West Corp. company guaranty sr. unsec. notes 8 5/8s, 2018 |  | 6,000 | 6,300
West Corp. company guaranty sr. unsec. notes 7 7/8s, 2019 |  | 191,000 | 196,730
Wok Acquisition Corp. 144A sr. unsec. notes 10 1/4s, 2020 |  | 50,000 | 53,750
|  |  | 6,897,027

36 | Master Intermediate Income Trust

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Energy (6.7%) |  |  |
Access Midstream Partners, LP/ACMP Finance Corp. company |  |  |
guaranty sr. unsec. notes 5 7/8s, 2021 |  | $135,000 | $141,413
Access Midstream Partners, LP/ACMP Finance Corp. company |  |  |
guaranty sr. unsec. unsub. notes 6 1/8s, 2022 |  | 65,000 | 68,738
Alpha Natural Resources, Inc. company guaranty sr. unsec. |  |  |
notes 6 1/4s, 2021 |  | 130,000 | 107,900
Alpha Natural Resources, Inc. company guaranty sr. unsec. |  |  |
notes 6s, 2019 |  | 136,000 | 114,920
AmeriGas Finance, LLC/AmeriGas Finance Corp. company |  |  |
guaranty sr. unsec. notes 7s, 2022 |  | 145,000 | 155,875
Anadarko Petroleum Corp. sr. notes 5.95s, 2016 |  | 283,000 | 329,007
Arch Coal, Inc. company guaranty sr. unsec. notes 7 1/4s, 2020 |  | 48,000 | 40,320
Arch Coal, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 7s, 2019 |  | 166,000 | 139,440
Atlas Pipeline Partners LP / Atlas Pipeline Finance Corp. |  |  |
144A company guaranty sr. notes 6 5/8s, 2020 |  | 60,000 | 61,050
ATP Oil & Gas Corp. company guaranty sr. notes 11 7/8s, |  |  |
2015 (In default) † |  | 65,000 | 12,350
Atwood Oceanics, Inc. sr. unsec. unsub. notes 6 1/2s, 2020 |  | 50,000 | 53,500
Aurora USA Oil & Gas, Inc., 144A sr. notes 9 7/8s, 2017 |  | 155,000 | 165,850
Carrizo Oil & Gas, Inc. company guaranty sr. unsec. |  |  |
notes 8 5/8s, 2018 |  | 347,000 | 372,158
Carrizo Oil & Gas, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 7 1/2s, 2020 |  | 50,000 | 51,125
Chaparral Energy, Inc. company guaranty sr. unsec. |  |  |
notes 9 7/8s, 2020 |  | 140,000 | 158,200
Chesapeake Energy Corp. company guaranty sr. unsec. |  |  |
bonds 6 1/4s, 2017 | EUR | 50,000 | 65,662
Chesapeake Energy Corp. company guaranty sr. unsec. |  |  |
notes 9 1/2s, 2015 |  | $495,000 | 545,119
Chesapeake Energy Corp. company guaranty sr. unsec. |  |  |
unsub. notes 6.775s, 2019 |  | 41,000 | 41,103
Concho Resources, Inc. company guaranty sr. unsec. |  |  |
notes 6 1/2s, 2022 |  | 225,000 | 247,500
Concho Resources, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 5 1/2s, 2023 |  | 55,000 | 57,475
Concho Resources, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 5 1/2s, 2022 |  | 88,000 | 91,740
Connacher Oil and Gas, Ltd. 144A notes 8 3/4s, 2018 (Canada) | CAD | 225,000 | 196,993
Connacher Oil and Gas, Ltd. 144A notes 8 1/2s, 2019 (Canada) |  | $90,000 | 77,400
CONSOL Energy, Inc. company guaranty sr. unsec. |  |  |
notes 8 1/4s, 2020 |  | 125,000 | 130,938
CONSOL Energy, Inc. company guaranty sr. unsec. notes 8s, 2017 |  | 710,000 | 741,950
Continental Resources, Inc. company guaranty sr. unsec. |  |  |
notes 5s, 2022 |  | 185,000 | 192,863
Continental Resources, Inc. 144A company |  |  |
guaranty sr. unsec. unsub. notes 5s, 2022 |  | 160,000 | 167,200
Crosstex Energy LP/Crosstex Energy Finance Corp. company |  |  |
guaranty sr. unsec. notes 8 7/8s, 2018 |  | 365,000 | 390,550

Master Intermediate Income Trust | 37

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Energy cont. |  |  |
Crosstex Energy LP/Crosstex Energy Finance Corp. 144A |  |  |
company guaranty sr. unsec. notes 7 1/8s, 2022 |  | $65,000 | $64,675
Denbury Resources, Inc. company guaranty sr. unsec. |  |  |
sub. notes 8 1/4s, 2020 |  | 118,000 | 132,750
Denbury Resources, Inc. company guaranty sr. unsec. |  |  |
sub. notes 6 3/8s, 2021 |  | 31,000 | 33,635
EXCO Resources, Inc. company guaranty sr. unsec. |  |  |
notes 7 1/2s, 2018 |  | 405,000 | 376,650
Ferrellgas LP/Ferrellgas Finance Corp. sr. unsec. |  |  |
notes 6 1/2s, 2021 |  | 98,000 | 94,815
Forbes Energy Services Ltd. company guaranty sr. unsec. |  |  |
notes 9s, 2019 |  | 150,000 | 145,500
FTS International Services, LLC/FTS International Bonds, Inc. |  |  |
144A company guaranty sr. unsec. unsub. notes 8 1/8s, 2018 |  | 180,000 | 191,700
Gazprom OAO Via Gaz Capital SA 144A sr. unsec. |  |  |
unsub. notes 9 1/4s, 2019 (Russia) |  | 2,055,000 | 2,666,753
Gazprom OAO Via Gaz Capital SA 144A sr. unsec. |  |  |
unsub. notes 8.146s, 2018 (Russia) |  | 176,000 | 215,313
Gazprom Via OAO White Nights Finance BV notes 10 1/2s, |  |  |
2014 (Russia) |  | 230,000 | 257,287
Goodrich Petroleum Corp. company guaranty sr. unsec. |  |  |
unsub. notes 8 7/8s, 2019 |  | 195,000 | 188,663
Hercules Offshore, Inc. 144A company |  |  |
guaranty sr. notes 7 1/8s, 2017 |  | 15,000 | 15,600
Hiland Partners LP / Hiland Partners Finance Corp. 144A |  |  |
company guaranty sr. notes 7 1/4s, 2020 |  | 85,000 | 88,400
Infinis PLC 144A sr. notes 9 1/8s, 2014 (United Kingdom) | GBP | 98,000 | 161,768
Key Energy Services, Inc. company guaranty unsec. |  |  |
unsub. notes 6 3/4s, 2021 |  | $76,000 | 77,140
Key Energy Services, Inc. 144A company guaranty sr. unsec. |  |  |
notes 6 3/4s, 2021 |  | 45,000 | 45,450
Kodiak Oil & Gas Corp. 144A sr. notes 8 1/8s, 2019 |  | 55,000 | 58,300
Laredo Petroleum, Inc. company guaranty sr. unsec. |  |  |
notes 7 3/8s, 2022 |  | 65,000 | 70,200
Laredo Petroleum, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 9 1/2s, 2019 |  | 188,000 | 212,910
Lone Pine Resources Canada, Ltd. 144A company |  |  |
guaranty sr. notes 10 3/8s, 2017 (Canada) |  | 80,000 | 73,600
MEG Energy Corp. 144A company guaranty sr. unsec. |  |  |
notes 6 1/2s, 2021 (Canada) |  | 285,000 | 304,950
MEG Energy Corp. 144A company guaranty sr. unsec. |  |  |
notes 6 3/8s, 2023 (Canada) |  | 65,000 | 69,388
Milagro Oil & Gas, Inc. company guaranty notes 10 1/2s, 2016 |  | 225,000 | 159,750
National JSC Naftogaz of Ukraine govt. guaranty unsec. |  |  |
notes 9 1/2s, 2014 (Ukraine) |  | 275,000 | 277,175
Northern Oil and Gas, Inc. company guaranty sr. unsec. |  |  |
notes 8s, 2020 |  | 160,000 | 164,800
Oasis Petroleum, Inc. company guaranty sr. unsec. |  |  |
notes 6 7/8s, 2023 |  | 110,000 | 116,463

38 | Master Intermediate Income Trust

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Energy cont. |  |
Offshore Group Investment, Ltd. company |  |
guaranty sr. notes 11 1/2s, 2015 (Cayman Islands) | $305,000 | $337,025
PDC Energy, Inc. company guaranty sr. unsec. notes 12s, 2018 | 240,000 | 261,600
Peabody Energy Corp. company guaranty sr. unsec. |  |
notes 7 3/8s, 2016 | 494,000 | 559,455
Peabody Energy Corp. company guaranty sr. unsec. |  |
unsub. notes 6 1/2s, 2020 | 19,000 | 19,428
Pertamina Persero PT 144A sr. unsec. notes 4 7/8s, 2022 |  |
(Indonesia) | 925,000 | 995,531
PetroBakken Energy, Ltd. 144A sr. unsec. notes 8 5/8s, 2020 |  |
(Canada) | 317,000 | 329,680
Petrobras International Finance Co. company |  |
guaranty sr. unsec. notes 7 7/8s, 2019 (Brazil) | 440,000 | 552,429
Petrobras International Finance Co. company |  |
guaranty sr. unsec. notes 5 3/8s, 2021 (Brazil) | 625,000 | 704,232
Petrohawk Energy Corp. company guaranty sr. unsec. |  |
notes 10 1/2s, 2014 | 95,000 | 103,313
Petroleos de Venezuela SA company guaranty sr. unsec. |  |
notes 5 1/4s, 2017 (Venezuela) | 1,500,000 | 1,189,440
Petroleos de Venezuela SA sr. unsec. notes 4.9s, 2014 |  |
(Venezuela) | 620,000 | 560,306
Petroleos de Venezuela SA sr. unsec. sub. bonds 5s, 2015 |  |
(Venezuela) | 1,120,000 | 947,621
Petroleos de Venezuela SA 144A company |  |
guaranty sr. notes 8 1/2s, 2017 (Venezuela) | 1,135,000 | 1,027,175
Petroleos de Venezuela SA 144A company guaranty sr. unsec. |  |
notes 8s, 2013 (Venezuela) | 225,000 | 225,675
Petroleos Mexicanos company guaranty unsec. |  |
unsub. notes 8s, 2019 (Mexico) | 1,855,000 | 2,427,268
Plains Exploration & Production Co. company |  |
guaranty sr. unsec. notes 6 5/8s, 2021 | 140,000 | 142,100
Range Resources Corp. company |  |
guaranty sr. sub. notes 6 3/4s, 2020 | 150,000 | 165,000
Range Resources Corp. company guaranty sr. unsec. |  |
sub. notes 5s, 2022 | 75,000 | 79,125
Rosetta Resources, Inc. company guaranty sr. unsec. |  |
notes 9 1/2s, 2018 | 124,000 | 137,020
Samson Investment Co. 144A sr. unsec. notes 9 3/4s, 2020 | 415,000 | 427,450
SandRidge Energy, Inc. company guaranty sr. unsec. |  |
unsub. notes 7 1/2s, 2021 | 5,000 | 5,150
SandRidge Energy, Inc. 144A company guaranty sr. unsec. |  |
unsub. notes 8s, 2018 | 578,000 | 606,900
SM Energy Co. sr. unsec. notes 6 5/8s, 2019 | 85,000 | 89,675
SM Energy Co. 144A sr. notes 6 1/2s, 2023 | 35,000 | 36,838
Suburban Propane Partners LP/Suburban Energy Finance Corp. |  |
144A sr. unsec. notes 7 3/8s, 2021 | 130,000 | 138,775
Unit Corp. company guaranty sr. sub. notes 6 5/8s, 2021 | 60,000 | 62,100
Unit Corp. 144A company guaranty sr. sub. notes 6 5/8s, 2021 | 110,000 | 113,575
WPX Energy, Inc. sr. unsec. unsub. notes 5 1/4s, 2017 | 480,000 | 518,400
|  | 23,944,260

Master Intermediate Income Trust | 39

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Financials (3.6%) |  |  |
ACE Cash Express, Inc. 144A sr. notes 11s, 2019 |  | $119,000 | $111,860
Air Lease Corp. 144A sr. notes 5 5/8s, 2017 |  | 165,000 | 168,713
Ally Financial, Inc. company guaranty sr. notes 6 1/4s, 2017 |  | 140,000 | 151,422
Ally Financial, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 8.3s, 2015 |  | 65,000 | 71,988
Ally Financial, Inc. company guaranty sr. unsec. |  |  |
unsub. notes 7 1/2s, 2020 |  | 565,000 | 648,338
Ally Financial, Inc. company guaranty sr. unsec. |  |  |
unsub. notes FRN 2.618s, 2014 |  | 39,000 | 38,513
Banco do Brasil SA 144A sr. unsec. notes 9 3/4s, 2017 |  |  |
(Brazil) | BRL | 436,000 | 246,255
Banco do Brasil SA 144A unsec. sub. notes 5 7/8s, 2023 |  |  |
(Brazil) |  | $150,000 | 162,000
Banco do Brasil SA 144A unsec. sub. notes 5 7/8s, 2022 |  |  |
(Brazil) |  | 790,000 | 837,638
CB Richard Ellis Services, Inc. company guaranty sr. unsec. |  |  |
notes 6 5/8s, 2020 |  | 56,000 | 61,180
CIT Group, Inc. sr. unsec. notes 5s, 2022 |  | 170,000 | 176,869
CIT Group, Inc. sr. unsec. unsub. notes 5 3/8s, 2020 |  | 135,000 | 146,138
CIT Group, Inc. sr. unsec. unsub. notes 5s, 2017 |  | 110,000 | 117,425
CIT Group, Inc. 144A company guaranty notes 6 5/8s, 2018 |  | 205,000 | 232,675
CIT Group, Inc. 144A company guaranty notes 5 1/2s, 2019 |  | 165,000 | 178,613
CNO Financial Group, Inc. 144A company |  |  |
guaranty sr. notes 9s, 2018 |  | 55,000 | 64,213
Community Choice Financial, Inc. 144A sr. notes 10 3/4s, 2019 |  | 170,000 | 165,750
Hub International Ltd. 144A company |  |  |
guaranty sr. notes 8 1/8s, 2018 |  | 65,000 | 66,300
Icahn Enterprises LP/Icahn Enterprises Finance Corp. |  |  |
company guaranty sr. unsec. notes 8s, 2018 |  | 385,000 | 412,912
International Lease Finance Corp. sr. unsec. notes 6 1/4s, 2019 |  | 51,000 | 54,953
International Lease Finance Corp. sr. unsec. |  |  |
unsub. notes 5 7/8s, 2022 |  | 200,000 | 206,500
International Lease Finance Corp. sr. unsec. |  |  |
unsub. notes 4 7/8s, 2015 |  | 76,000 | 78,660
JPMorgan Chase & Co. 144A sr. unsec. notes FRN 6.46s, 2017 |  | 1,000,000 | 1,269,300
MPT Operating Partnership LP/MPT Finance Corp. company |  |  |
guaranty sr. unsec. notes 6 7/8s, 2021 R |  | 75,000 | 81,750
MPT Operating Partnership LP/MPT Finance Corp. company |  |  |
guaranty sr. unsec. unsub. notes 6 3/8s, 2022 R |  | 110,000 | 118,250
National Money Mart Co. company guaranty sr. unsec. |  |  |
unsub. notes 10 3/8s, 2016 (Canada) |  | 75,000 | 83,813
Nuveen Investments, Inc. 144A sr. unsec. notes 9 1/2s, 2020 |  | 45,000 | 44,775
Nuveen Investments, Inc. 144A sr. unsec. notes 9 1/8s, 2017 |  | 100,000 | 99,250
PHH Corp. sr. unsec. unsub. notes 9 1/4s, 2016 |  | 100,000 | 114,750
PHH Corp. sr. unsec. unsub. notes 7 3/8s, 2019 |  | 130,000 | 139,263
Russian Agricultural Bank OJSC Via RSHB Capital SA 144A |  |  |
sr. unsec. notes 5.298s, 2017 (Russia) |  | 2,750,000 | 2,899,782
Sberbank of Russia Via SB Capital SA 144A sr. notes 6 1/8s, |  |  |
2022 (Luxembourg) |  | 325,000 | 357,089

40 | Master Intermediate Income Trust

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Financials cont. |  |  |
Sberbank of Russia Via SB Capital SA 144A sr. notes 4.95s, |  |  |
2017 (Luxembourg) |  | $500,000 | $525,000
State Bank of India/London 144A sr. unsec. notes 4 1/2s, |  |  |
2015 (India) |  | 155,000 | 161,115
Ukreximbank Via Biz Finance PLC sr. unsec. |  |  |
unsub. bonds 8 3/8s, 2015 (United Kingdom) |  | 200,000 | 192,790
VTB Bank OJSC Via VTB Capital SA 144A sr. unsec. |  |  |
notes 6 7/8s, 2018 (Russia) |  | 1,385,000 | 1,490,675
VTB Bank OJSC Via VTB Capital SA 144A sr. unsec. |  |  |
notes 6 1/4s, 2035 (Russia) |  | 130,000 | 138,177
VTB Bank OJSC Via VTB Capital SA 144A sr. unsec. |  |  |
unsub. notes 6.609s, 2012 (Russia) |  | 472,000 | 473,704
|  |  | 12,588,398
Health care (1.8%) |  |  |
Aviv Healthcare Properties LP company guaranty sr. unsec. |  |  |
notes 7 3/4s, 2019 |  | 139,000 | 147,340
Biomet, Inc. 144A sr. unsec. notes 6 1/2s, 2020 |  | 220,000 | 227,975
Capella Healthcare, Inc. company guaranty sr. unsec. |  |  |
notes 9 1/4s, 2017 |  | 160,000 | 170,600
Capsugel FinanceCo SCA 144A company guaranty sr. unsec. |  |  |
notes 9 7/8s, 2019 | EUR | 220,000 | 317,309
CDRT Holding Corp. 144A sr. unsec. notes 9 1/4s, 2017 ‡‡ |  | $205,000 | 197,825
CHS/Community Health Systems, Inc. company |  |  |
guaranty sr. notes 5 1/8s, 2018 |  | 160,000 | 166,000
CHS/Community Health Systems, Inc. company |  |  |
guaranty sr. unsec. unsub. notes 8s, 2019 |  | 220,000 | 241,450
CHS/Community Health Systems, Inc. company |  |  |
guaranty sr. unsec. unsub. notes 7 1/8s, 2020 |  | 110,000 | 117,150
ConvaTec Healthcare E SA 144A sr. notes 7 3/8s, 2017 |  |  |
(Luxembourg) | EUR | 100,000 | 138,632
ConvaTec Healthcare E SA 144A sr. unsec. notes 10 1/2s, |  |  |
2018 (Luxembourg) |  | $428,000 | 464,380
Emergency Medical Services Corp. company |  |  |
guaranty sr. unsec. notes 8 1/8s, 2019 |  | 220,000 | 233,200
Endo Health Solutions, Inc. company guaranty sr. unsec. |  |  |
notes 7s, 2019 |  | 130,000 | 140,075
Fresenius Medical Care US Finance II, Inc. 144A company |  |  |
guaranty sr. unsec. notes 5 5/8s, 2019 |  | 165,000 | 175,725
Grifols, Inc. company guaranty sr. unsec. notes 8 1/4s, 2018 |  | 226,000 | 249,730
HCA, Inc. sr. notes 6 1/2s, 2020 |  | 633,000 | 702,630
HCA, Inc. sr. unsec. notes 7 1/2s, 2022 |  | 55,000 | 62,150
Health Net, Inc. sr. unsec. bonds 6 3/8s, 2017 |  | 325,000 | 339,625
Hologic, Inc. 144A company guaranty sr. unsec. |  |  |
notes 6 1/4s, 2020 |  | 50,000 | 53,000
IASIS Healthcare, LLC/IASIS Capital Corp. company |  |  |
guaranty sr. unsec. notes 8 3/8s, 2019 |  | 334,000 | 318,970
Kinetics Concept/KCI USA 144A company guaranty sr. unsec. |  |  |
notes 12 1/2s, 2019 |  | 195,000 | 183,300
Multiplan, Inc. 144A company guaranty sr. notes 9 7/8s, 2018 |  | 150,000 | 165,750

Master Intermediate Income Trust | 41

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Health care cont. |  |
Omega Healthcare Investors, Inc. company |  |
guaranty sr. unsec. notes 6 3/4s, 2022 R | $85,000 | $93,925
Sky Growth Acquisition Corp. 144A company |  |
guaranty sr. unsec. notes 7 3/8s, 2020 | 50,000 | 50,250
Surgical Care Affiliates, Inc. 144A sr. sub. notes 10s, 2017 | 310,000 | 319,300
Surgical Care Affiliates, Inc. 144A sr. unsec. |  |
notes 8 7/8s, 2015 | 120,841 | 121,445
Teleflex, Inc. company guaranty sr. unsec. |  |
sub. notes 6 7/8s, 2019 | 160,000 | 172,000
Tenet Healthcare Corp. company guaranty sr. notes 10s, 2018 | 119,000 | 137,445
Tenet Healthcare Corp. company guaranty sr. notes 6 1/4s, 2018 | 200,000 | 220,000
Tenet Healthcare Corp. sr. notes 8 7/8s, 2019 | 198,000 | 223,740
Valeant Pharmaceuticals International 144A company |  |
guaranty sr. notes 7s, 2020 | 30,000 | 31,575
Valeant Pharmaceuticals International 144A company |  |
guaranty sr. unsec. notes 6 7/8s, 2018 | 75,000 | 78,938
Valeant Pharmaceuticals International 144A |  |
sr. notes 6 3/4s, 2017 | 30,000 | 31,950
Vanguard Health Systems, Inc. sr. unsec. notes zero %, 2016 | 7,000 | 4,900
VPI Escrow Corp. 144A sr. unsec. notes 6 3/8s, 2020 (Canada) | 30,000 | 30,600
|  | 6,328,884
Technology (1.4%) |  |
Advanced Micro Devices, Inc. sr. unsec. notes 7 3/4s, 2020 | 261,000 | 264,915
Advanced Micro Devices, Inc. 144A sr. unsec. notes 7 1/2s, 2022 | 30,000 | 28,950
Avaya, Inc. company guaranty sr. unsec. notes 9 3/4s, 2015 | 107,000 | 94,963
Avaya, Inc. 144A company guaranty sr. notes 7s, 2019 | 241,000 | 224,130
Ceridian Corp. company guaranty sr. unsec. notes 12 1/4s, 2015 ‡‡ | 129,000 | 128,355
Ceridian Corp. sr. unsec. notes 11 1/4s, 2015 | 283,000 | 278,755
Epicor Software Corp. company guaranty sr. unsec. |  |
notes 8 5/8s, 2019 | 80,000 | 84,400
Fidelity National Information Services, Inc. company |  |
guaranty sr. unsec. notes 7 7/8s, 2020 | 111,000 | 124,043
Fidelity National Information Services, Inc. company |  |
guaranty sr. unsec. notes 7 5/8s, 2017 | 76,000 | 83,220
First Data Corp. company guaranty sr. unsec. notes 12 5/8s, 2021 | 346,000 | 358,543
First Data Corp. company guaranty sr. unsec. notes 10.55s, 2015 | 314,401 | 321,868
First Data Corp. company guaranty sr. unsec. |  |
sub. notes 11 1/4s, 2016 | 97,000 | 94,090
First Data Corp. 144A company guaranty notes 8 1/4s, 2021 | 231,000 | 230,423
First Data Corp. 144A company guaranty sr. notes 8 7/8s, 2020 | 75,000 | 81,750
First Data Corp. 144A company guaranty sr. notes 7 3/8s, 2019 | 105,000 | 108,281
Freescale Semiconductor, Inc. company guaranty sr. unsec. |  |
notes 10 3/4s, 2020 | 43,000 | 46,548
Freescale Semiconductor, Inc. 144A company |  |
guaranty sr. notes 10 1/8s, 2018 | 368,000 | 404,800
Infor (US), Inc. 144A sr. notes 9 3/8s, 2019 | 55,000 | 61,050
Iron Mountain, Inc. company guaranty sr. unsec. |  |
sub. notes 8s, 2020 | 470,000 | 499,375

42 | Master Intermediate Income Trust

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Technology cont. |  |  |
NXP BV/NXP Funding, LLC 144A company |  |  |
guaranty sr. notes 9 3/4s, 2018 (Netherlands) |  | $314,000 | $361,100
Seagate HDD Cayman company guaranty sr. unsec. |  |  |
unsub. notes 7 3/4s, 2018 (Cayman Islands) |  | 186,000 | 205,530
SunGard Data Systems, Inc. company guaranty sr. unsec. |  |  |
sub. notes 10 1/4s, 2015 |  | 351,000 | 359,775
SunGard Data Systems, Inc. 144A sr. unsec. notes 7 5/8s, 2020 |  | 149,000 | 161,665
Syniverse Holdings, Inc. company guaranty sr. unsec. |  |  |
notes 9 1/8s, 2019 |  | 188,000 | 202,100
Techem Energy Metering Service GmbH 144A |  |  |
sr. sub. bonds 7 7/8s, 2020 (Germany) |  | 200,000 | 268,092
|  |  | 5,076,721
Transportation (0.3%) |  |  |
Aguila 3 SA company guaranty sr. notes Ser. REGS, 7 7/8s, |  |  |
2018 (Luxembourg) | CHF | 528,000 | 592,281
Air Medical Group Holdings, Inc. company |  |  |
guaranty sr. notes 9 1/4s, 2018 |  | $198,000 | 217,305
Swift Services Holdings, Inc. company |  |  |
guaranty sr. notes 10s, 2018 |  | 240,000 | 259,800
Western Express, Inc. 144A sr. notes 12 1/2s, 2015 |  | 111,000 | 74,370
|  |  | 1,143,756
Utilities and power (1.9%) |  |  |
AES Corp. (The) sr. unsec. unsub. notes 7 3/8s, 2021 |  | 135,000 | 153,900
AES Corp. (The) sr. unsec. unsub. notes 8s, 2017 |  | 475,000 | 548,625
Calpine Corp. 144A company guaranty sr. notes 7 7/8s, 2020 |  | 165,000 | 181,500
Calpine Corp. 144A sr. notes 7 1/4s, 2017 |  | 425,000 | 453,688
Dynegy Holdings, LLC sr. unsec. notes 7 3/4s, |  |  |
2019 (In default) † |  | 401,000 | 226,565
Edison Mission Energy sr. unsec. notes 7 3/4s, 2016 |  | 151,000 | 78,520
Edison Mission Energy sr. unsec. notes 7 1/2s, 2013 |  | 69,000 | 37,950
Edison Mission Energy sr. unsec. notes 7.2s, 2019 |  | 147,000 | 75,705
Edison Mission Energy sr. unsec. notes 7s, 2017 |  | 23,000 | 11,903
El Paso Natural Gas Co. debs. 8 5/8s, 2022 |  | 247,000 | 332,847
Energy Future Holdings Corp. company |  |  |
guaranty sr. notes 10s, 2020 |  | 595,000 | 655,988
Energy Future Intermediate Holding Co., LLC/EFIH |  |  |
Finance, Inc. sr. notes 10s, 2020 |  | 296,000 | 333,000
Energy Transfer Equity LP company guaranty sr. unsec. |  |  |
notes 7 1/2s, 2020 |  | 300,000 | 340,500
EP Energy, LLC/EP Energy Finance, Inc. 144A |  |  |
sr. notes 6 7/8s, 2019 |  | 75,000 | 80,250
EP Energy, LLC/EP Energy Finance, Inc. 144A sr. unsec. |  |  |
notes 9 3/8s, 2020 |  | 260,000 | 283,400
EP Energy, LLC/Everest Acquisition Finance, Inc. 144A |  |  |
company guaranty sr. unsec. notes 7 3/4s, 2022 |  | 50,000 | 51,000
GenOn Energy, Inc. sr. unsec. notes 9 7/8s, 2020 |  | 278,000 | 308,580
GenOn Energy, Inc. sr. unsec. notes 9 1/2s, 2018 |  | 45,000 | 51,075
Ipalco Enterprises, Inc. 144A sr. notes 7 1/4s, 2016 |  | 115,000 | 127,938
Majapahit Holding BV 144A company guaranty sr. unsec. |  |  |
notes 8s, 2019 (Indonesia) |  | 400,000 | 505,000

Master Intermediate Income Trust | 43

CORPORATE BONDS AND NOTES (30.4%)* cont. | Principal amount | Value
Utilities and power cont. |  |  |
Majapahit Holding BV 144A company guaranty sr. unsec. |  |  |
notes 7 3/4s, 2020 (Indonesia) |  | $785,000 | $983,173
NGPL PipeCo, LLC 144A sr. notes 9 5/8s, 2019 |  | 75,000 | 85,500
NRG Energy, Inc. company guaranty sr. unsec. notes |  |  |
7 7/8s, 2021 |  | 595,000 | 647,063
NV Energy, Inc. sr. unsec. notes 6 1/4s, 2020 |  | 110,000 | 127,111
Regency Energy Partners company guaranty sr. unsec. |  |  |
unsub. notes 5 1/2s, 2023 |  | 120,000 | 120,900
Texas Competitive/Texas Competitive Electric Holdings Co., |  |  |
LLC 144A company guaranty sr. notes 11 1/2s, 2020 |  | 90,000 | 70,425
|  |  | 6,872,106
Total corporate bonds and notes (cost $103,795,991) |  |  | $108,273,382
U.S. GOVERNMENT AND AGENCY |  |  |
MORTGAGE OBLIGATIONS (17.7%)* | Principal amount | Value
U.S. Government Guaranteed Mortgage Obligations (0.8%) |  |  |
Government National Mortgage Association |  |  |
Pass-Through Certificates |  |  |
6 1/2s, November 20, 2038 |  | $715,368 | $810,322
3s, TBA, November 1, 2042 |  | 1,000,000 | 1,068,476
3s, TBA, October 1, 2042 |  | 1,000,000 | 1,071,250
|  |  | 2,950,048
U.S. Government Agency Mortgage Obligations (16.9%) |  |  |
Federal Home Loan Mortgage Corporation Pass-Through |  |  |
Certificates 3s, TBA, October 1, 2042 |  | 7,000,000 | 7,379,532
Federal National Mortgage Association |  |  |
Pass-Through Certificates |  |  |
3s, TBA, November 1, 2042 |  | 18,000,000 | 18,952,031
3s, TBA, October 1, 2042 |  | 32,000,000 | 33,777,501
|  |  | 60,109,064
Total U.S. government and agency mortgage obligations (cost $61,645,807) | $63,059,112
FOREIGN GOVERNMENT AND AGENCY |  |  |
BONDS AND NOTES (8.0%)* | Principal amount | Value
Argentina (Republic of) sr. unsec. bonds 7s, 2017 |  | $1,520,000 | $1,292,000
Argentina (Republic of) sr. unsec. bonds Ser. VII, 7s, 2013 |  | 197,000 | 196,015
Argentina (Republic of) sr. unsec. bonds FRB 0.739s, 2013 |  | 1,431,000 | 174,582
Argentina (Republic of) sr. unsec. unsub. bonds 7s, 2015 |  | 5,501,000 | 5,019,662
Brazil (Federal Republic of) unsec. notes 10s, 2017 | BRL | 1,500 | 782,857
Brazil (Federal Republic of) unsub. notes 10s, 2014 | BRL | 990 | 512,313
Chile (Republic of) notes 5 1/2s, 2020 | CLP | 170,000,000 | 382,057
Croatia (Republic of) 144A sr. unsec. unsub. notes |  |  |
6 3/8s, 2021 |  | $265,000 | 293,925
Croatia (Republic of) 144A unsec. notes 6 1/4s, 2017 |  | 225,000 | 242,518
Export-Import Bank of Korea 144A sr. unsec. |  |  |
unsub. notes 5.1s, 2013 | INR | 22,600,000 | 415,147
Ghana (Republic of) 144A unsec. notes 8 1/2s, 2017 |  | $690,000 | 808,232
Indonesia (Republic of) 144A sr. unsec. |  |  |
unsub. bonds 6 3/4s, 2014 |  | 1,590,000 | 1,703,160

44 | Master Intermediate Income Trust

FOREIGN GOVERNMENT AND AGENCY |  |  |
BONDS AND NOTES (8.0%)* cont. | Principal amount | Value
International Bank for Reconstruction & Development |  |  |
sr. disc. unsec. unsub. notes Ser. GDIF, 5 1/4s, 2014 | RUB | 9,750,000 | $303,783
Ireland (Republic of) unsec. bonds 5 1/2s, 2017 | EUR | 443,000 | 613,772
Portugal (Republic of) sr. unsec. bonds 4.35s, 2017 | EUR | 443,000 | 504,522
Russia (Federation of) 144A unsec. notes 3 1/4s, 2017 |  | $2,600,000 | 2,723,734
Russia (Federation of) 144A unsec. unsub. bonds 7 1/2s, 2030 |  | 1,964,200 | 2,460,161
Spain (Kingdom of) sr. unsec. bonds 5 1/2s, 2017 | EUR | 443,000 | 582,581
Sri Lanka (Republic of) 144A notes 7.4s, 2015 |  | $200,000 | 218,374
Turkey (Republic of) sr. unsec. notes 7 1/2s, 2017 |  | 1,205,000 | 1,447,808
Ukraine (Government of ) Financing of Infrastructural |  |  |
Projects State Enterprise 144A govt. |  |  |
guaranty notes 8 3/8s, 2017 |  | 175,000 | 161,000
Ukraine (Government of) 144A bonds 7 3/4s, 2020 |  | 385,000 | 380,653
Ukraine (Government of) 144A notes 9 1/4s, 2017 |  | 1,340,000 | 1,404,491
Ukraine (Government of) 144A sr. unsec. bonds 7.95s, 2014 |  | 300,000 | 300,736
Ukraine (Government of) 144A sr. unsec. notes 7.95s, 2021 |  | 360,000 | 358,967
Ukraine (Government of) 144A sr. unsec. unsub. notes 7.65s, 2013 |  | 1,715,000 | 1,726,148
Venezuela (Republic of) unsec. notes 10 3/4s, 2013 |  | 1,985,000 | 2,044,867
Venezuela (Republic of) 144A unsec. bonds 13 5/8s, 2018 |  | 1,285,000 | 1,373,768
Total foreign government and agency bonds and notes (cost $27,181,034) |  | $28,427,833

PURCHASED OPTIONS | Expiration date/ | Contract |
OUTSTANDING (5.8%)* | strike price | amount | Value
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to pay a fixed rate of 2.28% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
October 2022. | Oct-12/2.28 | $800,000 | $8
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of 1.82% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
November 2022. | Nov-12/1.82 | 2,578,000 | 35,370
Option on an interest rate swap with Bank of America, |  |  |
N.A. for the right to receive a fixed rate of 2.085% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
October 2022. | Oct-12/2.085 | 2,633,000 | 92,366
Option on an interest rate swap with Credit Suisse |  |  |
International for the right to receive a fixed rate of |  |  |
2.193% versus the three month USD-LIBOR-BBA |  |  |
maturing October 2022. | Oct-12/2.193 | 6,702,000 | 303,198
Option on an interest rate swap with Deutsche |  |  |
Bank AG for the right to receive a fixed rate of |  |  |
2.225% versus the three month USD-LIBOR-BBA |  |  |
maturing October 2022. | Oct-12/2.225 | 4,714,000 | 225,329
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of 2.28% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
October 2022. | Oct-12/2.28 | 800,000 | 42,376

Master Intermediate Income Trust | 45

PURCHASED OPTIONS | Expiration date/ | Contract |
OUTSTANDING (5.8%)* cont. | strike price | amount | Value
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
2.3175% versus the three month USD-LIBOR-BBA |  |  |
maturing October 2022. | Oct-12/2.3175 | $4,714,000 | $266,341
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to pay a fixed rate of 2.305% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
November 2022. | Nov-12/2.305 | 800,000 | 360
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of 1.835% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
November 2022. | Nov-12/1.835 | 2,578,000 | 39,315
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
1.845% versus the three month USD-LIBOR-BBA |  |  |
maturing December 2022. | Dec-12/1.845 | 2,578,000 | 42,949
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
1.855% versus the three month USD-LIBOR-BBA |  |  |
maturing December 2022. | Dec-12/1.855 | 2,578,000 | 46,275
Option on an interest rate swap with Deutsche Bank |  |  |
AG for the right to receive a fixed rate of 2.1125% versus |  |  |
the three month USD-LIBOR-BBA maturing |  |  |
November 2022. | Nov-12/2.1125 | 2,633,000 | 95,288
Option on an interest rate swap with Deutsche Bank |  |  |
AG for the right to receive a fixed rate of 2.2475% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
November 2022. | Nov-12/2.2475 | 4,714,000 | 227,309
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
2.305% versus the three month USD-LIBOR-BBA |  |  |
maturing November 2022. | Nov-12/2.305 | 800,000 | 42,544
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
2.34375% versus the three month USD-LIBOR-BBA |  |  |
maturing November 2022. | Nov-12/2.34375 | 4,714,000 | 268,792
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to pay a fixed rate of 2.325% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
December 2022. | Dec-12/2.325 | 800,000 | 1,232
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
1.8625% versus the three month USD-LIBOR-BBA |  |  |
maturing January 2023. | Jan-13/1.8625 | 2,578,000 | 48,338
Option on an interest rate swap with Deutsche |  |  |
Bank AG for the right to receive a fixed rate of |  |  |
2.13375% versus the three month USD-LIBOR-BBA |  |  |
maturing December 2022. | Dec-12/2.13375 | 2,633,000 | 99,317
Option on an interest rate swap with Deutsche Bank |  |  |
AG for the right to receive a fixed rate of 2.27% versus |  |  |
the three month USD-LIBOR-BBA maturing |  |  |
December 2022. | Dec-12/2.27 | 4,714,000 | 231,175

46 | Master Intermediate Income Trust

PURCHASED OPTIONS | Expiration date/ | Contract |
OUTSTANDING (5.8%)* cont. | strike price | amount | Value
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
2.325% versus the three month USD-LIBOR-BBA |  |  |
maturing December 2022. | Dec-12/2.325 | $800,000 | $43,080
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
2.3675% versus the three month USD-LIBOR-BBA |  |  |
maturing December 2022. | Dec-12/2.3675 | 4,714,000 | 271,479
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to pay a fixed rate of |  |  |
2.8825% versus the three month USD-LIBOR-BBA |  |  |
maturing December 2042. | Dec-12/2.8825 | 2,260,000 | 28,702
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
2.8825% versus the three month USD-LIBOR-BBA |  |  |
maturing December 2042. | Dec-12/2.8825 | 2,260,000 | 150,765
Option on an interest rate swap with Barclay’s Bank, |  |  |
PLC for the right to pay a fixed rate of 1.75% versus |  |  |
the three month USD-LIBOR-BBA maturing |  |  |
December 2022. | Dec-12/1.75 | 11,763,000 | 160,918
Option on an interest rate swap with Barclay’s Bank, |  |  |
PLC for the right to receive a fixed rate of 1.75% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
December 2022. | Dec-12/1.75 | 11,763,000 | 141,627
Option on an interest rate swap with Credit Suisse |  |  |
International for the right to pay a fixed rate of 4.28% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
August 2026. E | Aug-16/4.28 | 24,236,000 | 586,463
Option on an interest rate swap with Credit Suisse |  |  |
International for the right to pay a fixed rate of 4.67% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
July 2026. E | Jul-16/4.67 | 19,702,000 | 378,515
Option on an interest rate swap with Citibank, N.A. |  |  |
for the right to pay a fixed rate of 4.74% versus the |  |  |
three month USD-LIBOR-BBA maturing July 2026. E | Jul-16/4.74 | 12,253,944 | 223,438
Option on an interest rate swap with Credit Suisse |  |  |
International for the right to receive a fixed rate of |  |  |
4.28% versus the three month USD-LIBOR-BBA |  |  |
maturing August 2026. E | Aug-16/4.28 | 24,236,000 | 3,584,504
Option on an interest rate swap with Credit Suisse |  |  |
International for the right to receive a fixed rate of |  |  |
4.67% versus the three month USD-LIBOR-BBA |  |  |
maturing July 2026. E | Jul-16/4.67 | 19,702,000 | 3,479,373
Option on an interest rate swap with Citibank, N.A. |  |  |
for the right to receive a fixed rate of 4.74% versus |  |  |
the three month USD-LIBOR-BBA maturing July 2026. E | Jul-16/4.74 | 12,253,944 | 2,225,586
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to pay a fixed rate of 4.17% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
August 2021. E | Aug-16/4.17 | 5,316,000 | 59,343
Option on an interest rate swap with JPMorgan Chase |  |  |
Bank NA for the right to pay a fixed rate of 4.17% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
August 2021. E | Aug-16/4.17 | 5,316,000 | 59,343

Master Intermediate Income Trust | 47

PURCHASED OPTIONS | Expiration date/ | Contract |
OUTSTANDING (5.8%)* cont. | strike price | amount | Value
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to pay a fixed rate of 4.705% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
May 2021. E | May-16/4.705 | $14,853,000 | $113,150
Option on an interest rate swap with JPMorgan Chase |  |  |
Bank NA for the right to pay a fixed rate of 4.705% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
May 2021. E | May-16/4.705 | 14,853,000 | 113,150
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to pay a fixed rate of 4.72% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
May 2021. E | May-16/4.72 | 15,808,000 | 121,010
Option on an interest rate swap with JPMorgan Chase |  |  |
Bank NA for the right to pay a fixed rate of 5.11% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
May 2021. E | May-16/5.11 | 10,549,000 | 68,600
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
4.17% versus the three month USD-LIBOR-BBA |  |  |
maturing August 2021. E | Aug-16/4.17 | 5,316,000 | 511,532
Option on an interest rate swap with JPMorgan |  |  |
Chase Bank NA for the right to receive a fixed rate |  |  |
of 4.17% versus the three month USD-LIBOR-BBA |  |  |
maturing August 2021. E | Aug-16/4.17 | 5,316,000 | 511,532
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
4.705% versus the three month USD-LIBOR-BBA |  |  |
maturing May 2021. E | May-16/4.705 | 14,853,000 | 1,809,363
Option on an interest rate swap with JPMorgan Chase |  |  |
Bank NA for the right to receive a fixed rate of 4.705% |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |
May 2021. E | May-16/4.705 | 14,853,000 | 1,809,363
Option on an interest rate swap with Goldman Sachs |  |  |
International for the right to receive a fixed rate of |  |  |
4.72% versus the three month USD-LIBOR-BBA |  |  |
maturing May 2021. E | May-16/4.72 | 15,808,000 | 1,930,837
Total purchased options outstanding (cost $20,566,862) |  | $20,489,555

SENIOR LOANS (2.0%)* c | Principal amount | Value
Ardent Health Services bank term loan FRN Ser. B, |  |
6 1/2s, 2015 | $219,390 | $219,390
Burlington Coat Factory Warehouse Corp. bank term loan FRN |  |
Ser. B1, 5 1/2s, 2017 | 26,025 | 26,299
Caesars Entertainment Operating Co., Inc. bank term loan |  |
FRN Ser. B6, 5.467s, 2018 | 722,663 | 655,559
Charter Communications Operating, LLC bank term loan FRN |  |
Ser. C, 3.49s, 2016 | 621,091 | 621,091
Chesapeake Energy Corp. bank term loan FRN 8 1/2s, 2017 | 160,000 | 160,400
Clear Channel Communications, Inc. bank term loan FRN |  |
Ser. B, 3.882s, 2016 | 429,181 | 350,118
Compucom Systems, Inc. bank term loan FRN 3.74s, 2014 | 79,332 | 78,936
Del Monte Corp. bank term loan FRN Ser. B, 4 1/2s, 2018 | 110,257 | 109,936

48 | Master Intermediate Income Trust

SENIOR LOANS (2.0%)* c cont. | Principal amount | Value
Emergency Medical Services Corp. bank term loan FRN Ser. B, |  |  |
5 1/4s, 2018 |  | $156,644 | $157,101
Frac Tech International, LLC bank term loan FRN Ser. B, |  |  |
6 1/4s, 2016 |  | 140,497 | 134,745
Golden Nugget, Inc. bank term loan FRN Ser. B, 3.24s, 2014 ‡‡ |  | 101,338 | 96,575
Golden Nugget, Inc. bank term loan FRN Ser. DD, 3.24s, 2014 ‡‡ |  | 57,684 | 54,973
Goodman Global, Inc. bank term loan FRN 9s, 2017 |  | 114,545 | 115,405
Goodman Global, Inc. bank term loan FRN 5 3/4s, 2016 |  | 177,585 | 177,712
HUB International Holdings, Inc. bank term loan FRN 6 3/4s, 2017 |  | 70,997 | 71,618
Intelsat SA bank term loan FRN 3.221s, 2014 (Luxembourg) |  | 460,000 | 455,745
Landry’s, Inc. bank term loan FRN Ser. B, 6 1/2s, 2017 |  | 354,438 | 358,868
Momentive Performance Materials, Inc. bank term loan FRN |  |  |
Ser. B1, 3 3/4s, 2015 |  | 69,764 | 67,148
Motor City bank term loan FRN 6s, 2017 |  | 232,325 | 233,777
Multiplan, Inc. bank term loan FRN Ser. B, 4 3/4s, 2017 |  | 123,918 | 124,073
National Bedding Company, LLC bank term loan FRN Ser. B, |  |  |
4s, 2013 |  | 71,374 | 71,240
Navistar, Inc. bank term loan FRN Ser. B, 7s, 2017 |  | 75,000 | 76,031
Neiman Marcus Group, Inc. (The) bank term loan FRN 4 3/4s, 2018 |  | 160,000 | 160,673
Nexeo Solutions, LLC bank term loan FRN Ser. B, 5s, 2017 |  | 88,650 | 87,874
Quintiles Transnational Corp. bank term loan FRN 7 1/2s, 2017 ‡‡ |  | 60,000 | 60,450
R.H. Donnelley, Inc. bank term loan FRN Ser. B, 9s, 2014 |  | 457,343 | 273,099
Realogy Corp. bank term loan FRN Ser. B, 4.478s, 2016 |  | 422,232 | 416,338
Revlon Consumer Products Corp. bank term loan FRN 4 3/4s, 2017 |  | 242,550 | 243,193
Rite Aid Corp. bank term loan FRN Ser. B, 1.98s, 2014 |  | 94,027 | 93,074
Servicemaster Co. bank term loan FRN 4.48s, 2017 |  | 67,438 | 67,649
Springleaf Financial bank term loan FRN Ser. B, 5 1/2s, 2017 |  | 170,000 | 166,303
SRAM Corp. bank term loan FRN 8 1/2s, 2018 |  | 60,000 | 60,900
Texas Competitive Electric Holdings Co., LLC bank term loan |  |  |
FRN 4.757s, 2017 |  | 640,516 | 439,654
Thomson Learning bank term loan FRN Ser. B, 2 1/2s, 2014 |  | 210,104 | 199,190
Tribune Co. bank term loan FRN Ser. B, 5 1/4s, 2014 (In default) † |  | 289,000 | 218,031
Univision Communications, Inc. bank term loan FRN 4.482s, 2017 |  | 97,824 | 96,764
West Corp. bank term loan FRN Ser. B5, 5 1/2s, 2016 |  | 55,560 | 55,907
Total senior loans (cost $7,468,401) |  |  | $7,055,839
ASSET-BACKED SECURITIES (0.6%)* | Principal amount | Value
Bear Stearns Asset Backed Securities, Inc. FRB Ser. 04-FR3, |  |  |
Class M6, 5.092s, 2034 |  | $44,609 | $15,569
Citigroup Mortgage Loan Trust, Inc. Ser. 2005-WF2, |  |  |
Class AF4, 4.964s, 2035 |  | 384,448 | 365,226
Crest, Ltd. 144A Ser. 03-2A, Class E2, 8s, 2038 |  | 504,985 | 20,704
Granite Mortgages PLC |  |  |
FRB Ser. 03-2, Class 2C1, 3.01s, 2043 | EUR | 1,028,000 | 1,117,592
FRB Ser. 03-2, Class 3C, 3.333, 2043 | GBP | 384,009 | 524,603
Guggenheim Structured Real Estate Funding, Ltd. 144A FRB |  |  |
Ser. 05-2A, Class E, 2.217s, 2030 (Cayman Islands) |  | $405,145 | 202,572

Master Intermediate Income Trust | 49

ASSET-BACKED SECURITIES (0.6%)* cont. |  | Principal amount | Value
Morgan Stanley Capital, Inc. FRB Ser. 04-HE8, Class B3, |  |  |
3.417s, 2034 |  |  | $44,320 | $15,640
TIAA Real Estate CDO, Ltd. Ser. 03-1A, Class E, 8s, 2038 |  | 530,378 | 53,038
Total asset-backed securities (cost $2,378,119) |  |  |  | $2,314,944
CONVERTIBLE BONDS AND NOTES (0.1%)* |  | Principal amount | Value
Ford Motor Co. cv. sr. unsec. notes 4 1/4s, 2016 |  |  | $157,000 | $217,445
Navistar International Corp. cv. sr. unsec. sub. notes 3s, 2014 |  | 70,000 | 62,081
Steel Dynamics, Inc. cv. sr. notes 5 1/8s, 2014 |  |  | 155,000 | 162,072
Total convertible bonds and notes (cost $374,488) |  |  |  | $441,598
CONVERTIBLE PREFERRED STOCKS (0.1%)* |  |  | Shares | Value
General Motors Co. Ser. B, $2.375 cv. pfd. |  |  | 3,856 | $144,720
Lucent Technologies Capital Trust I 7.75% cv. pfd. |  |  | 176 | 101,640
United Technologies Corp. $3.75 cv. pfd. † |  |  | 2,100 | 117,810
Total convertible preferred stocks (cost $470,500) |  |  |  | $364,170
PREFERRED STOCKS (0.1%)* |  |  | Shares | Value
Ally Financial, Inc. 144A 7.00% cum. pfd. |  |  | 198 | $185,223
M/I Homes, Inc. $2.438 pfd. † |  |  | 4,410 | 90,008
Total preferred stocks (cost $148,711) |  |  |  | $275,231
WARRANTS (—%)* † | Expiration | Strike |  |
| date | price | Warrants | Value
Charter Communications, Inc. |  |  |  |
Class A | 11/30/14 | $0.01 | 20 | $585
Smurfit Kappa Group PLC 144A |  |  |  |
(Ireland) F | 10/1/13 | EUR 1.00 | 508 | 26,594
Total warrants (cost $19,277) |  |  |  | $27,179
COMMON STOCKS (—%)* |  |  | Shares | Value
HealthSouth Corp. † |  |  | 224 | $5,389
Magellan Health Services, Inc. † |  |  | 158 | 8,154
Trump Entertainment Resorts, Inc. † |  |  | 94 | 376
Vertis Holdings, Inc. † F |  |  | 734 | 7
Total common stocks (cost $17,619) |  |  |  | $13,926
SHORT-TERM INVESTMENTS (14.9%)* |  | Principal amount/shares | Value
Putnam Money Market Liquidity Fund 0.14% L |  |  | 6,987,387 | $6,987,387
SSgA Prime Money Market Fund 0.14% # P |  |  | 1,625,020 | 1,625,020
Straight-A Funding, LLC with an effective yield of 0.178%, |  |  |
December 18, 2012 |  | $8,000,000 | 7,996,880
U.S. Treasury Bills with an effective yield of 0.104% , |  |  |  |
December 13, 2012 # ## |  |  | 5,000,000 | 4,999,165
U.S. Treasury Bills with effective yields ranging from |  |  |  |
0.084% to 0.102%, November 15, 2012 # ## |  |  | 5,534,000 | 5,533,364
U.S. Treasury Bills with an effective yield of 0.087%, |  |  |  |
October 18, 2012 # ## |  | 26,095,000 | 26,093,916
Total short-term investments (cost $53,235,513) |  |  |  | $53,235,732
TOTAL INVESTMENTS |  |  |  |
Total investments (cost $434,937,582) |  |  |  | $446,955,097

50 | Master Intermediate Income Trust

Key to holding’s currency abbreviations
AUD | Australian Dollar
BRL | Brazilian Real
CAD | Canadian Dollar
CHF | Swiss Franc
CLP | Chilean Peso
EUR | Euro
GBP | British Pound
INR | Indian Rupee
JPY | Japanese Yen
KRW | South Korean Won
MXN | Mexican Peso
MYR | Malaysian Ringgit
RUB | Russian Ruble
SEK | Swedish Krona

Key to holding’s abbreviations
EMTN | Euro Medium Term Notes
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
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
JSC | Joint Stock Company
OAO | Open Joint Stock Company
OJSC | Open Joint Stock Company
PO | Principal Only
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, 2011 through September 30, 2012 (the reporting period). Within the following notes to the portfolio, references to “ASC 820” represent Accounting Standards Codification ASC 820 Fair Value Measurements and Disclosures.

* Percentages indicated are based on net assets of $356,295,984.

† Non-income-producing security.

†† The interest or dividend rate and date shown parenthetically represent the new interest or dividend rate to be paid and the date the fund will begin accruing interest or dividend income at this rate.

‡‡ 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.

## 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.

c Senior loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for senior loans are the current interest rates at the close of the reporting period. Senior loans are also subject to mandatory and/or optional prepayment which cannot be predicted. As a result, the remaining maturity may be substantially less than the stated maturity shown (Notes 1 and 7).

E Extended settlement date on premium.

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.

Master Intermediate Income Trust | 51

L Affiliated company (Note 6). 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.

At the close of the reporting period, the fund maintained liquid assets totaling $121,828,532 to cover certain derivatives contracts.

Debt obligations are considered secured unless otherwise indicated.

The dates shown on debt obligations are the original maturity dates.

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.

DIVERSIFICATION BY COUNTRY

Distribution of investments by country of risk at the close of the reporting period, excluding collateral received, if any (as a percentage of Portfolio Value):

United States | 85.3% |  | Brazil | 0.9%
Russia | 3.0 |  | Mexico | 0.6
Venezuela | 1.7 |  | United Kingdom | 0.6
Argentina | 1.5 |  | Netherlands | 0.6
Ukraine | 1.0 |  | Germany | 0.6
Luxembourg | 1.0 |  | Other | 2.3
Indonesia | 0.9 |  | Total | 100.0%

FORWARD CURRENCY CONTRACTS at 9/30/12 (aggregate face value $237,188,477) |
|  |  |  |  |  | Unrealized
|  | Contract | Delivery |  | Aggregate | appreciation/
Counterparty | Currency | type | date | Value | face value | (depreciation)
Bank of America, N.A. |  |  |  |  |
| Euro | Buy | 10/17/12 | $1,163,269 | $1,140,352 | $22,917
| Euro | Sell | 10/17/12 | 1,163,269 | 1,180,612 | 17,343
| Swedish Krona | Buy | 10/17/12 | 974 | 951 | 23
| Swedish Krona | Sell | 10/17/12 | 974 | 973 | (1)
| Swiss Franc | Buy | 10/17/12 | 1,377,409 | 1,354,268 | 23,141
Barclays Bank PLC |  |  |  |  |
| Australian Dollar | Buy | 10/17/12 | 2,106,740 | 2,042,525 | 64,215
| Brazilian Real | Buy | 10/17/12 | 1,156,017 | 1,144,633 | 11,384
| Brazilian Real | Sell | 10/17/12 | 1,156,017 | 1,153,222 | (2,795)
| British Pound | Sell | 10/17/12 | 613,918 | 599,779 | (14,139)
| Canadian Dollar | Sell | 10/17/12 | 2,964,318 | 2,959,257 | (5,061)
| Chilean Peso | Sell | 10/17/12 | 162,230 | 172,771 | 10,541
| Czech Koruna | Buy | 10/17/12 | 1,706,840 | 1,734,643 | (27,803)
| Czech Koruna | Sell | 10/17/12 | 1,706,840 | 1,695,655 | (11,185)
| Euro | Sell | 10/17/12 | 2,998,846 | 2,815,873 | (182,973)
| Hungarian Forint | Buy | 10/17/12 | 2,376 | 2,405 | (29)
| Hungarian Forint | Sell | 10/17/12 | 2,376 | 2,316 | (60)
| Japanese Yen | Sell | 10/17/12 | 786,383 | 784,133 | (2,250)
| Malaysian Ringgit | Buy | 10/17/12 | 546,711 | 543,151 | 3,560

52 | Master Intermediate Income Trust

FORWARD CURRENCY CONTRACTS at 9/30/12 (aggregate face value $237,188,477) cont. |
|  |  |  |  |  | Unrealized
|  | Contract | Delivery |  | Aggregate | appreciation/
Counterparty | Currency | type | date | Value | face value | (depreciation)
Barclays Bank PLC cont. |  |  |  |  |
| Malaysian Ringgit | Sell | 10/17/12 | $547,071 | $537,659 | $(9,412)
| Mexican Peso | Buy | 10/17/12 | 543,989 | 549,328 | (5,339)
| Mexican Peso | Sell | 10/17/12 | 543,989 | 540,600 | (3,389)
| New Zealand Dollar | Sell | 10/17/12 | 779,056 | 751,943 | (27,113)
| Norwegian Krone | Sell | 10/17/12 | 894,513 | 907,911 | 13,398
| Polish Zloty | Buy | 10/17/12 | 230,903 | 294,168 | (63,265)
| Singapore Dollar | Sell | 10/17/12 | 489,968 | 477,650 | (12,318)
| South African Rand | Sell | 10/17/12 | 282,164 | 283,382 | 1,218
| South Korean Won | Buy | 10/17/12 | 193,097 | 182,030 | 11,067
| Swedish Krona | Buy | 10/17/12 | 1,840,047 | 1,803,893 | 36,154
| Swedish Krona | Sell | 10/17/12 | 1,840,047 | 1,791,689 | (48,358)
| Swiss Franc | Buy | 10/17/12 | 1,204,475 | 1,205,716 | (1,241)
| Swiss Franc | Sell | 10/17/12 | 1,204,475 | 1,185,025 | (19,450)
| Taiwan Dollar | Buy | 10/17/12 | 1,683,082 | 1,674,599 | 8,483
| Taiwan Dollar | Sell | 10/17/12 | 1,683,083 | 1,656,112 | (26,971)
| Turkish Lira | Buy | 10/17/12 | 1,300,864 | 1,287,157 | 13,707
Citibank, N.A. |  |  |  |  |  |
| Australian Dollar | Buy | 10/17/12 | 2,356,316 | 2,307,387 | 48,929
| Brazilian Real | Sell | 10/17/12 | 543,522 | 544,591 | 1,069
| British Pound | Sell | 10/17/12 | 3,471,178 | 3,413,923 | (57,255)
| Canadian Dollar | Buy | 10/17/12 | 1,431,418 | 1,421,518 | 9,900
| Czech Koruna | Buy | 10/17/12 | 1,061,272 | 1,073,613 | (12,341)
| Czech Koruna | Sell | 10/17/12 | 1,061,272 | 1,064,330 | 3,058
| Euro | Sell | 10/17/12 | 4,577,763 | 4,490,157 | (87,606)
| Japanese Yen | Sell | 10/17/12 | 2,339,153 | 2,329,462 | (9,691)
| Mexican Peso | Buy | 10/17/12 | 25,941 | 25,445 | 496
| Mexican Peso | Sell | 10/17/12 | 25,941 | 25,813 | (128)
| Singapore Dollar | Buy | 10/17/12 | 1,057,508 | 1,054,750 | 2,758
| Singapore Dollar | Sell | 10/17/12 | 1,057,508 | 1,041,284 | (16,224)
| South Korean Won | Buy | 10/17/12 | 105,834 | 96,393 | 9,441
| Swiss Franc | Buy | 10/17/12 | 792,986 | 773,184 | 19,802
| Taiwan Dollar | Sell | 10/17/12 | 442,176 | 427,366 | (14,810)
| Turkish Lira | Buy | 10/17/12 | 1,146,910 | 1,130,813 | 16,097
Credit Suisse AG |  |  |  |  |
| Australian Dollar | Buy | 10/17/12 | 3,239,833 | 3,135,440 | 104,393
| Brazilian Real | Sell | 10/17/12 | 318,285 | 324,431 | 6,146
| British Pound | Sell | 10/17/12 | 2,200,711 | 2,169,986 | (30,725)
| Canadian Dollar | Buy | 10/17/12 | 5,547,418 | 5,563,694 | (16,276)
| Canadian Dollar | Sell | 10/17/12 | 5,548,588 | 5,560,306 | 11,718
| Chilean Peso | Sell | 10/17/12 | 225,488 | 229,111 | 3,623
| Czech Koruna | Buy | 10/17/12 | 1,782,936 | 1,809,814 | (26,878)
| Czech Koruna | Sell | 10/17/12 | 1,782,935 | 1,786,052 | 3,117
| Euro | Sell | 10/17/12 | 2,174,237 | 2,060,355 | (113,882)
| Hungarian Forint | Buy | 10/17/12 | 549,409 | 541,757 | 7,652

Master Intermediate Income Trust | 53

FORWARD CURRENCY CONTRACTS at 9/30/12 (aggregate face value $237,188,477) cont. |
|  |  |  |  |  | Unrealized
|  | Contract | Delivery |  | Aggregate | appreciation/
Counterparty | Currency | type | date | Value | face value | (depreciation)
Credit Suisse AG cont. |  |  |  |  |
| Hungarian Forint | Sell | 10/17/12 | $549,406 | $535,950 | $(13,456)
| Japanese Yen | Buy | 10/17/12 | 1,713,109 | 1,706,383 | 6,726
| Malaysian Ringgit | Buy | 10/17/12 | 411,742 | 403,517 | 8,225
| Malaysian Ringgit | Sell | 10/17/12 | 411,741 | 410,591 | (1,150)
| Mexican Peso | Buy | 10/17/12 | 548,636 | 553,873 | (5,237)
| New Zealand Dollar | Sell | 10/17/12 | 831,717 | 802,455 | (29,262)
| Norwegian Krone | Sell | 10/17/12 | 466,953 | 495,590 | 28,637
| Philippines Peso | Buy | 10/17/12 | 818,224 | 812,794 | 5,430
| Polish Zloty | Buy | 10/17/12 | 534,492 | 552,220 | (17,728)
| Singapore Dollar | Buy | 10/17/12 | 1,316,956 | 1,312,310 | 4,646
| Singapore Dollar | Sell | 10/17/12 | 1,316,956 | 1,298,983 | (17,973)
| South African Rand | Buy | 10/17/12 | 591,725 | 585,789 | 5,936
| South African Rand | Sell | 10/17/12 | 591,724 | 598,128 | 6,404
| South Korean Won | Buy | 10/17/12 | 659,319 | 636,248 | 23,071
| Swedish Krona | Buy | 10/17/12 | 3,743,793 | 3,733,970 | 9,823
| Swedish Krona | Sell | 10/17/12 | 3,743,792 | 3,716,094 | (27,698)
| Swiss Franc | Buy | 10/17/12 | 1,914 | 1,884 | 30
| Swiss Franc | Sell | 10/17/12 | 1,914 | 1,916 | 2
| Taiwan Dollar | Sell | 10/17/12 | 374,529 | 360,465 | (14,064)
| Turkish Lira | Buy | 10/17/12 | 862,764 | 851,295 | 11,469
Deutsche Bank AG |  |  |  |  |
| Australian Dollar | Buy | 10/17/12 | 805,607 | 759,057 | 46,550
| Brazilian Real | Sell | 10/17/12 | 273,435 | 280,644 | 7,209
| British Pound | Sell | 10/17/12 | 1,828,517 | 1,796,817 | (31,700)
| Canadian Dollar | Buy | 10/17/12 | 484,732 | 473,099 | 11,633
| Czech Koruna | Buy | 10/17/12 | 1,072,355 | 1,099,207 | (26,852)
| Czech Koruna | Sell | 10/17/12 | 1,072,355 | 1,069,231 | (3,124)
| Euro | Sell | 10/17/12 | 2,777,143 | 2,688,499 | (88,644)
| Japanese Yen | Buy | 10/17/12 | 549,272 | 556,399 | (7,127)
| Mexican Peso | Buy | 10/17/12 | 230,015 | 223,078 | 6,937
| Norwegian Krone | Buy | 10/17/12 | 911,574 | 890,445 | 21,129
| Polish Zloty | Buy | 10/17/12 | 469,437 | 514,689 | (45,252)
| Singapore Dollar | Sell | 10/17/12 | 230,683 | 219,867 | (10,816)
| South Korean Won | Buy | 10/17/12 | 168,851 | 159,990 | 8,861
| Swedish Krona | Buy | 10/17/12 | 1,814,924 | 1,775,148 | 39,776
| Swedish Krona | Sell | 10/17/12 | 1,814,924 | 1,775,668 | (39,256)
| Swiss Franc | Buy | 10/17/12 | 14,996 | 15,011 | (15)
| Swiss Franc | Sell | 10/17/12 | 14,996 | 14,754 | (242)
| Turkish Lira | Buy | 10/17/12 | 1,157,958 | 1,142,080 | 15,878
| Turkish Lira | Sell | 10/17/12 | 1,157,958 | 1,147,180 | (10,778)
Goldman Sachs International |  |  |  |  |
| British Pound | Buy | 10/17/12 | 275,957 | 271,268 | 4,689
| British Pound | Sell | 10/17/12 | 275,957 | 277,765 | 1,808
| Czech Koruna | Buy | 10/17/12 | 25,503 | 25,889 | (386)

54 | Master Intermediate Income Trust

FORWARD CURRENCY CONTRACTS at 9/30/12 (aggregate face value $237,188,477) cont. |
|  |  |  |  |  | Unrealized
|  | Contract | Delivery |  | Aggregate | appreciation/
Counterparty | Currency | type | date | Value | face value | (depreciation)
Goldman Sachs International cont. |  |  |  |  |
| Czech Koruna | Sell | 10/17/12 | $25,503 | $25,387 | $(116)
| Euro | Buy | 10/17/12 | 27,504 | 21,374 | 6,130
| Norwegian Krone | Buy | 10/17/12 | 135,955 | 134,137 | 1,818
| Norwegian Krone | Sell | 10/17/12 | 135,955 | 135,361 | (594)
| Singapore Dollar | Sell | 10/17/12 | 239,157 | 225,493 | (13,664)
| South Korean Won | Buy | 10/17/12 | 21,188 | 20,662 | 526
| Swedish Krona | Buy | 10/17/12 | 5,798 | 5,664 | 134
| Swedish Krona | Sell | 10/17/12 | 5,798 | 5,795 | (3)
| Turkish Lira | Buy | 10/17/12 | 183,823 | 181,256 | 2,567
| Turkish Lira | Sell | 10/17/12 | 183,823 | 184,755 | 932
HSBC Bank USA, National Association |  |  |  |
| Australian Dollar | Buy | 10/17/12 | 14 | 5,061 | (5,047)
| British Pound | Sell | 10/17/12 | 1,011,861 | 986,225 | (25,636)
| Canadian Dollar | Buy | 10/17/12 | 1,794,942 | 1,803,193 | (8,251)
| Canadian Dollar | Sell | 10/17/12 | 1,794,942 | 1,799,951 | 5,009
| Czech Koruna | Buy | 10/17/12 | 1,061,293 | 1,073,623 | (12,330)
| Czech Koruna | Sell | 10/17/12 | 1,061,293 | 1,066,331 | 5,038
| Euro | Sell | 10/17/12 | 2,032,862 | 1,918,471 | (114,391)
| Indian Rupee | Buy | 10/17/12 | 29,523 | 64,654 | (35,131)
| Japanese Yen | Buy | 10/17/12 | 1,376,408 | 1,367,727 | 8,681
| Norwegian Krone | Buy | 10/17/12 | 479,322 | 475,280 | 4,042
| Norwegian Krone | Sell | 10/17/12 | 479,322 | 473,299 | (6,023)
| Russian Ruble | Buy | 10/17/12 | 540,108 | 551,820 | (11,712)
| Singapore Dollar | Buy | 10/17/12 | 1,057,508 | 1,054,682 | 2,826
| Singapore Dollar | Sell | 10/17/12 | 1,057,508 | 1,041,367 | (16,141)
| South Korean Won | Buy | 10/17/12 | 323,908 | 313,803 | 10,105
| Turkish Lira | Buy | 10/17/12 | 1,019,661 | 992,689 | 26,972
JPMorgan Chase Bank, N.A. |  |  |  |  |
| Australian Dollar | Buy | 10/17/12 | 2,939,491 | 2,894,571 | 44,920
| Australian Dollar | Sell | 10/17/12 | 2,939,491 | 2,946,870 | 7,379
| Brazilian Real | Sell | 10/17/12 | 173,690 | 177,360 | 3,670
| British Pound | Sell | 10/17/12 | 447,441 | 430,564 | (16,877)
| Canadian Dollar | Buy | 10/17/12 | 1,874,663 | 1,882,886 | (8,223)
| Canadian Dollar | Sell | 10/17/12 | 1,874,663 | 1,890,834 | 16,171
| Chilean Peso | Buy | 10/17/12 | 100,088 | 92,724 | 7,364
| Czech Koruna | Buy | 10/17/12 | 2,249,834 | 2,285,808 | (35,974)
| Czech Koruna | Sell | 10/17/12 | 2,249,834 | 2,237,477 | (12,357)
| Euro | Sell | 10/17/12 | 736,185 | 642,903 | (93,282)
| Hungarian Forint | Buy | 10/17/12 | 549,408 | 537,723 | 11,685
| Hungarian Forint | Sell | 10/17/12 | 549,408 | 536,010 | (13,398)
| Japanese Yen | Sell | 10/17/12 | 1,588,814 | 1,584,747 | (4,067)
| Mexican Peso | Buy | 10/17/12 | 352,691 | 354,517 | (1,826)
| Mexican Peso | Sell | 10/17/12 | 352,691 | 346,044 | (6,647)

Master Intermediate Income Trust | 55

FORWARD CURRENCY CONTRACTS at 9/30/12 (aggregate face value $237,188,477) cont. |
|  |  |  |  |  | Unrealized
|  | Contract | Delivery |  | Aggregate | appreciation/
Counterparty | Currency | type | date | Value | face value | (depreciation)
JPMorgan Chase Bank, N.A. cont. |  |  |  |  |
| New Zealand Dollar | Sell | 10/17/12 | $819,463 | $812,105 | $(7,358)
| Norwegian Krone | Buy | 10/17/12 | 2,095,616 | 2,062,895 | 32,721
| Polish Zloty | Buy | 10/17/12 | 246,138 | 274,253 | (28,115)
| Russian Ruble | Buy | 10/17/12 | 220,904 | 244,416 | (23,512)
| Singapore Dollar | Sell | 10/17/12 | 85,070 | 71,769 | (13,301)
| South African Rand | Sell | 10/17/12 | 120,249 | 117,085 | (3,164)
| South Korean Won | Buy | 10/17/12 | 236,887 | 224,461 | 12,426
| Swedish Krona | Buy | 10/17/12 | 1,597,659 | 1,561,617 | 36,042
| Taiwan Dollar | Sell | 10/17/12 | 471,603 | 452,152 | (19,451)
| Turkish Lira | Buy | 10/17/12 | 68,343 | 58,006 | 10,337
Royal Bank of Scotland PLC (The) |  |  |  |  |
| Australian Dollar | Buy | 10/17/12 | 1,968 | 1,962 | 6
| Australian Dollar | Sell | 10/17/12 | 1,968 | 1,937 | (31)
| Brazilian Real | Buy | 10/17/12 | 32,985 | 32,693 | 292
| Brazilian Real | Sell | 10/17/12 | 32,985 | 32,990 | 5
| British Pound | Buy | 10/17/12 | 158,405 | 155,675 | 2,730
| British Pound | Sell | 10/17/12 | 158,405 | 159,443 | 1,038
| Czech Koruna | Buy | 10/17/12 | 11,461 | 11,415 | 46
| Czech Koruna | Sell | 10/17/12 | 11,461 | 11,670 | 209
| Euro | Buy | 10/17/12 | 52,695 | 51,575 | 1,120
| Japanese Yen | Sell | 10/17/12 | 82,951 | 82,556 | (395)
| Mexican Peso | Buy | 10/17/12 | 26,298 | 26,379 | (81)
| Mexican Peso | Sell | 10/17/12 | 26,298 | 25,795 | (503)
| Norwegian Krone | Buy | 10/17/12 | 657,146 | 647,947 | 9,199
| Norwegian Krone | Sell | 10/17/12 | 657,146 | 654,293 | (2,853)
| Singapore Dollar | Buy | 10/17/12 | 807,350 | 808,892 | (1,542)
| Singapore Dollar | Sell | 10/17/12 | 807,350 | 794,853 | (12,497)
| South Korean Won | Buy | 10/17/12 | 16,059 | 15,675 | 384
| Swiss Franc | Buy | 10/17/12 | 782,031 | 769,062 | 12,969
| Swiss Franc | Sell | 10/17/12 | 782,031 | 782,834 | 803
| Taiwan Dollar | Buy | 10/17/12 | 204,622 | 203,671 | 951
| Taiwan Dollar | Sell | 10/17/12 | 204,622 | 200,874 | (3,748)
| Turkish Lira | Buy | 10/17/12 | 75,838 | 72,147 | 3,691
State Street Bank and Trust Co. |  |  |  |  |
| Australian Dollar | Buy | 10/17/12 | 1,811,994 | 1,792,358 | 19,636
| Australian Dollar | Sell | 10/17/12 | 1,811,994 | 1,808,759 | (3,235)
| Brazilian Real | Sell | 10/17/12 | 1,089,701 | 1,085,817 | (3,884)
| British Pound | Buy | 10/17/12 | 3,621,994 | 3,612,105 | 9,889
| British Pound | Sell | 10/17/12 | 3,621,994 | 3,627,969 | 5,975
| Canadian Dollar | Sell | 10/17/12 | 1,216,151 | 1,220,161 | 4,010
| Chilean Peso | Buy | 10/17/12 | 22,743 | 20,412 | 2,331
| Czech Koruna | Buy | 10/17/12 | 1,289,352 | 1,321,597 | (32,245)
| Czech Koruna | Sell | 10/17/12 | 1,289,352 | 1,282,936 | (6,416)
| Euro | Sell | 10/17/12 | 3,228,134 | 3,146,823 | (81,311)

56 | Master Intermediate Income Trust

FORWARD CURRENCY CONTRACTS at 9/30/12 (aggregate face value $237,188,477) cont. |
|  |  |  |  |  | Unrealized
|  | Contract | Delivery |  | Aggregate | appreciation/
Counterparty | Currency | type | date | Value | face value | (depreciation)
State Street Bank and Trust Co. cont. |  |  |  |  |
| Hungarian Forint | Buy | 10/17/12 | $572,565 | $558,476 | $14,089
| Hungarian Forint | Sell | 10/17/12 | 572,565 | 559,418 | (13,147)
| Japanese Yen | Sell | 10/17/12 | 1,255,780 | 1,253,147 | (2,633)
| Mexican Peso | Buy | 10/17/12 | 122,420 | 134,087 | (11,667)
| New Zealand Dollar | Sell | 10/17/12 | 552,932 | 530,267 | (22,665)
| Norwegian Krone | Buy | 10/17/12 | 1,583,584 | 1,554,312 | 29,272
| Polish Zloty | Buy | 10/17/12 | 141,233 | 189,458 | (48,225)
| Singapore Dollar | Sell | 10/17/12 | 372,548 | 362,173 | (10,375)
| South African Rand | Sell | 10/17/12 | 400,338 | 405,673 | 5,335
| South Korean Won | Buy | 10/17/12 | 110,717 | 98,619 | 12,098
| Swedish Krona | Buy | 10/17/12 | 234,841 | 235,616 | (775)
| Swiss Franc | Buy | 10/17/12 | 1,439,414 | 1,416,490 | 22,924
| Taiwan Dollar | Sell | 10/17/12 | 549,701 | 530,922 | (18,779)
| Thai Baht | Buy | 10/17/12 | 812,069 | 799,770 | 12,299
| Turkish Lira | Buy | 10/17/12 | 1,152,017 | 1,138,649 | 13,368
| Turkish Lira | Sell | 10/17/12 | 1,152,017 | 1,150,939 | (1,078)
UBS AG |  |  |  |  |  |
| Australian Dollar | Buy | 10/17/12 | 2,705,143 | 2,650,661 | 54,482
| British Pound | Sell | 10/17/12 | 409,818 | 392,627 | (17,191)
| Canadian Dollar | Buy | 10/17/12 | 2,780,675 | 2,779,766 | 909
| Canadian Dollar | Sell | 10/17/12 | 2,780,675 | 2,771,084 | (9,591)
| Czech Koruna | Buy | 10/17/12 | 1,061,293 | 1,073,653 | (12,360)
| Czech Koruna | Sell | 10/17/12 | 1,061,293 | 1,063,337 | 2,044
| Euro | Sell | 10/17/12 | 1,776,328 | 1,693,600 | (82,728)
| Hungarian Forint | Buy | 10/17/12 | 537,403 | 524,198 | 13,205
| Hungarian Forint | Sell | 10/17/12 | 537,403 | 541,104 | 3,701
| Indian Rupee | Sell | 10/17/12 | 409,110 | 351,627 | (57,483)
| Japanese Yen | Sell | 10/17/12 | 3,009,163 | 2,999,020 | (10,143)
| Mexican Peso | Buy | 10/17/12 | 274,853 | 282,897 | (8,044)
| New Zealand Dollar | Sell | 10/17/12 | 819,545 | 812,192 | (7,353)
| Norwegian Krone | Buy | 10/17/12 | 4,063,740 | 4,016,433 | 47,307
| Philippines Peso | Buy | 10/17/12 | 818,224 | 813,065 | 5,159
| Russian Ruble | Buy | 10/17/12 | 540,108 | 551,838 | (11,730)
| Singapore Dollar | Sell | 10/17/12 | 785,594 | 765,962 | (19,632)
| South African Rand | Sell | 10/17/12 | 184,839 | 199,707 | 14,868
| Swedish Krona | Buy | 10/17/12 | 1,348,057 | 1,346,811 | 1,246
| Swedish Krona | Sell | 10/17/12 | 1,348,057 | 1,343,798 | (4,259)
| Swiss Franc | Sell | 10/17/12 | 3,809,333 | 3,736,069 | (73,264)
| Taiwan Dollar | Buy | 10/17/12 | 1,683,078 | 1,674,166 | 8,912
| Taiwan Dollar | Sell | 10/17/12 | 1,683,078 | 1,653,506 | (29,572)
| Thai Baht | Buy | 10/17/12 | 812,066 | 799,677 | 12,389
| Turkish Lira | Buy | 10/17/12 | 611,208 | 596,747 | 14,461

Master Intermediate Income Trust | 57

FORWARD CURRENCY CONTRACTS at 9/30/12 (aggregate face value $237,188,477) cont. |
|  |  |  |  |  | Unrealized
|  | Contract | Delivery |  | Aggregate | appreciation/
Counterparty | Currency | type | date | Value | face value | (depreciation)
WestPac Banking Corp. |  |  |  |  |
| Australian Dollar | Buy | 10/17/12 | $652,587 | $637,924 | $14,663
| British Pound | Buy | 10/17/12 | 1,545,293 | 1,520,224 | 25,069
| Canadian Dollar | Buy | 10/17/12 | 1,879,442 | 1,897,587 | (18,145)
| Canadian Dollar | Sell | 10/17/12 | 1,879,442 | 1,891,478 | 12,036
| Euro | Sell | 10/17/12 | 573,217 | 509,724 | (63,493)
| Japanese Yen | Buy | 10/17/12 | 1,298,896 | 1,293,763 | 5,133
| Mexican Peso | Buy | 10/17/12 | 295,038 | 299,834 | (4,796)
| Norwegian Krone | Buy | 10/17/12 | 658,140 | 649,256 | 8,884
| Norwegian Krone | Sell | 10/17/12 | 658,140 | 652,608 | (5,532)
| Swedish Krona | Sell | 10/17/12 | 992,608 | 969,790 | (22,818)
Total |  |  |  |  |  | $(1,065,687)

FUTURES CONTRACTS OUTSTANDING at 9/30/12 |  |  |  |
|  |  |  |  | Unrealized
| Number of |  |  | Expiration | appreciation/
| contracts | Value |  | date | (depreciation)
Australian Government Treasury |  |  |  |  |
Bond 3 yr (Short) | 46 | $5,273,238 |  | Dec-12 | $(28,526)
Australian Government Treasury |  |  |  |  |
Bond 10 yr (Long) | 3 | 394,876 |  | Dec-12 | 6,686
Canadian Government Bond |  |  |  |  |
10 yr (Long) | 26 | 3,630,638 |  | Dec-12 | 31,882
Euro-Bobl 5 yr (Short) | 83 | 13,405,986 |  | Dec-12 | 17,803
Euro-Bund 10 yr (Short) | 159 | 28,966,859 |  | Dec-12 | 94,506
Euro-Swiss Franc 3 Month (Short) | 38 | 10,102,020 |  | Dec-12 | (146,956)
Japanese Government Bond |  |  |  |  |
10 yr (Short) | 12 | 22,171,707 |  | Dec-12 | (78,491)
Japanese Government Bond |  |  |  |  |
10 yr Mini (Long) | 4 | 739,313 |  | Dec-12 | 3,004
U.K. Gilt 10 yr (Short) | 4 | 779,108 |  | Dec-12 | 1,023
Total |  |  |  |  | $(99,069)

WRITTEN OPTIONS OUTSTANDING at 9/30/12 (premiums $18,902,333) |  |  |
| Contract |  | Expiration date/ |
| amount |  | strike price | Value
Option on an interest rate swap with Goldman Sachs |  |  |  |
International for the obligation to receive a fixed rate |  |  |  |
of 1.75% versus the three month USD-LIBOR-BBA |  |  |  |
maturing October 2022. | $7,802,000 |  | Oct-12/1.75 | $35,967
Option on an interest rate swap with Goldman Sachs |  |  |  |
International for the obligation to pay a fixed rate |  |  |  |
of 1.75% versus the three month USD-LIBOR-BBA |  |  |  |
maturing October 2022. | 7,802,000 |  | Oct-12/1.75 | 58,905
Option on an interest rate swap with Goldman Sachs |  |  |  |
International for the obligation to receive a fixed rate |  |  |  |
of 3.49% versus the three month USD-LIBOR-BBA |  |  |  |
maturing September 2026. E | 526,562 |  | Sep-16/3.49 | 21,357

58 | Master Intermediate Income Trust

WRITTEN OPTIONS OUTSTANDING at 9/30/12 (premiums $18,902,333) cont. |  |  |
| Contract |  | Expiration date/ |
| amount |  | strike price | Value
Option on an interest rate swap with Bank of America, |  |  |  |
N.A. for the obligation to receive a fixed rate of 4.28% |  |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |  |
August 2026. E | $11,059,894 |  | Aug-16/4.28 | $267,627
Option on an interest rate swap with Barclay’s Bank, |  |  |  |
PLC for the obligation to receive a fixed rate of 4.67% |  |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |  |
July 2026. E | 6,554,860 |  | Jul-16/4.67 | 125,932
Option on an interest rate swap with JPMorgan Chase |  |  |  |
Bank NA for the obligation to receive a fixed rate |  |  |  |
of 4.74% versus the three month USD-LIBOR-BBA |  |  |  |
maturing July 2026. E | 6,572,614 |  | Jul-16/4.74 | 119,845
Option on an interest rate swap with JPMorgan Chase |  |  |  |
Bank NA for the obligation to receive a fixed rate |  |  |  |
of 4.79% versus the three month USD-LIBOR-BBA |  |  |  |
maturing July 2026. E | 3,686,784 |  | Jul-16/4.79 | 65,628
Option on an interest rate swap with Barclay’s Bank, |  |  |  |
PLC for the obligation to receive a fixed rate of 4.80% |  |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |  |
July 2026. E | 2,621,944 |  | Jul-16/4.80 | 46,526
Option on an interest rate swap with Citibank, N.A. for |  |  |  |
the obligation to receive a fixed rate of 5.86% versus the |  |  |  |
three month USD-LIBOR-BBA maturing June 2026. E | 3,945,779 |  | Jun-16/5.86 | 38,353
Option on an interest rate swap with Goldman Sachs |  |  |  |
International for the obligation to pay a fixed rate |  |  |  |
of 3.49% versus the three month USD-LIBOR-BBA |  |  |  |
maturing September 2026. E | 526,562 |  | Sep-16/3.49 | 49,843
Option on an interest rate swap with Bank of America, |  |  |  |
N.A. for the obligation to pay a fixed rate of 4.28% |  |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |  |
August 2026. E | 11,059,894 |  | Aug-16/4.28 | 1,625,063
Option on an interest rate swap with Bank of America, |  |  |  |
N.A. for the obligation to pay a fixed rate of 4.35% |  |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |  |
August 2026. E | 26,715,351 |  | Aug-16/4.35 | 4,074,278
Option on an interest rate swap with Barclay’s Bank, |  |  |  |
PLC for the obligation to pay a fixed rate of 4.67% versus |  |  |  |
the three month USD-LIBOR-BBA maturing July 2026. E | 6,554,860 |  | Jul-16/4.67 | 1,203,761
Option on an interest rate swap with JPMorgan Chase |  |  |  |
Bank NA for the obligation to pay a fixed rate of 4.74% |  |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |  |
July 2026. E | 6,572,614 |  | Jul-16/4.74 | 1,193,731
Option on an interest rate swap with JPMorgan Chase |  |  |  |
Bank NA for the obligation to pay a fixed rate of 4.79% |  |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |  |
July 2026. E | 3,686,784 |  | Jul-16/4.79 | 682,730
Option on an interest rate swap with Barclay’s Bank, |  |  |  |
PLC for the obligation to pay a fixed rate of 4.80% versus |  |  |  |
the three month USD-LIBOR-BBA maturing July 2026. E | 2,621,944 |  | Jul-16/4.80 | 508,911
Option on an interest rate swap with Citibank, N.A. for |  |  |  |
the obligation to pay a fixed rate of 4.86% versus the |  |  |  |
three month USD-LIBOR-BBA maturing June 2026. E | 3,945,779 |  | Jun-16/4.86 | 756,189

Master Intermediate Income Trust | 59

WRITTEN OPTIONS OUTSTANDING at 9/30/12 (premiums $18,902,333) cont. |  |  |
| Contract |  | Expiration date/ |
| amount |  | strike price | Value
Option on an interest rate swap with JPMorgan Chase |  |  |  |
Bank NA for the obligation to receive a fixed rate of |  |  |  |
4.575% versus the three month USD-LIBOR-BBA |  |  |  |
maturing June 2021. E | $544,291 |  | Jun-16/4.575 | $4,562
Option on an interest rate swap with Deutsche Bank AG |  |  |  |
for the obligation to receive a fixed rate of 4.60% versus |  |  |  |
the three month USD-LIBOR-BBA maturing May 2021. E | 10,187,746 |  | May-16/4.60 | 83,590
Option on an interest rate swap with Citibank, N.A. for |  |  |  |
the obligation to receive a fixed rate of 4.61% versus the |  |  |  |
three month USD-LIBOR-BBA maturing June 2021. E | 1,659,222 |  | Jun-16/4.61 | 14,070
Option on an interest rate swap with Citibank, N.A. for |  |  |  |
the obligation to receive a fixed rate of 4.705% versus |  |  |  |
the three month USD-LIBOR-BBA maturing May 2021. E | 24,507,428 |  | May-16/4.705 | 186,698
Option on an interest rate swap with Deutsche Bank |  |  |  |
AG for the obligation to receive a fixed rate of 4.765% |  |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |  |
May 2021. E | 3,106,561 |  | May-16/4.765 | 23,274
Option on an interest rate swap with Goldman Sachs |  |  |  |
International for the obligation to receive a fixed rate |  |  |  |
of 4.86% versus the three month USD-LIBOR-BBA |  |  |  |
maturing May 2021. E | 10,238,704 |  | May-16/4.86 | 74,466
Option on an interest rate swap with Barclay’s Bank, |  |  |  |
PLC for the obligation to receive a fixed rate of 4.89% |  |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |  |
June 2021. E | 547,769 |  | Jun-16/4.89 | 3,968
Option on an interest rate swap with Citibank, N.A. for |  |  |  |
the obligation to receive a fixed rate of 5.11% versus the |  |  |  |
three month USD-LIBOR-BBA maturing May 2021. E | 10,072,118 |  | May-16/5.11 | 65,499
Option on an interest rate swap with Citibank, N.A. for |  |  |  |
the obligation to receive a fixed rate of 5.12% versus the |  |  |  |
three month USD-LIBOR-BBA maturing June 2021. E | 556,661 |  | Jun-16/5.12 | 3,639
Option on an interest rate swap with Citibank, N.A. for |  |  |  |
the obligation to pay a fixed rate of 4.11% versus the |  |  |  |
three month USD-LIBOR-BBA maturing May 2021. E | 10,072,118 |  | May-16/4.11 | 970,026
Option on an interest rate swap with Citibank, N.A. for |  |  |  |
the obligation to pay a fixed rate of 4.12% versus the |  |  |  |
three month USD-LIBOR-BBA maturing June 2021. E | 556,661 |  | Jun-16/4.12 | 53,750
Option on an interest rate swap with Goldman Sachs |  |  |  |
International for the obligation to pay a fixed rate |  |  |  |
of 4.36% versus the three month USD-LIBOR-BBA |  |  |  |
maturing May 2021. E | 10,238,704 |  | May-16/4.36 | 1,091,712
Option on an interest rate swap with Barclay’s Bank, |  |  |  |
PLC for the obligation to pay a fixed rate of 4.39% versus |  |  |  |
the three month USD-LIBOR-BBA maturing June 2021. E | 547,769 |  | Jun-16/4.39 | 60,789
Option on an interest rate swap with JPMorgan Chase |  |  |  |
Bank NA for the obligation to pay a fixed rate of 4.575% |  |  |  |
versus the three month USD-LIBOR-BBA maturing |  |  |  |
June 2021. E | 544,291 |  | Jun-16/4.575 | 62,850
Option on an interest rate swap with Deutsche Bank AG |  |  |  |
for the obligation to pay a fixed rate of 4.60% versus the |  |  |  |
three month USD-LIBOR-BBA maturing May 2021. E | 10,187,746 |  | May-16/4.60 | 1,188,892

60 | Master Intermediate Income Trust

WRITTEN OPTIONS OUTSTANDING at 9/30/12 (premiums $18,902,333) cont. |  |  |
| Contract |  | Expiration date/ |
| amount |  | strike price | Value
Option on an interest rate swap with Citibank, N.A. for |  |  |  |
the obligation to pay a fixed rate of 4.61% versus the |  |  |  |
three month USD-LIBOR-BBA maturing June 2021. E | $1,659,222 |  | Jun-16/4.61 | $192,677
Option on an interest rate swap with Citibank, N.A. for |  |  |  |
the obligation to pay a fixed rate of 4.705% versus the |  |  |  |
three month USD-LIBOR-BBA maturing May 2021. E | 24,507,428 |  | May-16/4.705 | 2,985,446
Option on an interest rate swap with Deutsche Bank AG |  |  |  |
for the obligation to pay a fixed rate of 4.765% versus |  |  |  |
the three month USD-LIBOR-BBA maturing May 2021. E | 3,106,561 |  | May-16/4.765 | 385,701
Total |  |  |  | $18,326,255

E Extended settlement date on premium.

TBA SALE COMMITMENTS OUTSTANDING at 9/30/12 (proceeds receivable $28,018,125) |
| Principal |  | Settlement |
Agency | amount |  | date | Value
Federal National Mortgage Association, 3s, |  |  |  |
October 1, 2042 | $26,000,000 |  | 10/11/12 | $27,444,219
Government National Mortgage Association, 3s, |  |  |  |
October 1, 2042 | 1,000,000 |  | 10/18/12 | 1,071,250
Total |  |  |  | $28,515,469

INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/12 |  |
|  | Upfront |  |  | Payments | Payments | Unrealized
Swap counterparty / | premium | Termination |  | made by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | fund per annum | (depreciation)
Bank of America N.A. |  |  |  |  |  |
| $14,758,000 | $— | 5/14/17 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 1.0925% | $321,649
| 2,105,000 | — | 5/14/42 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 2.795% | 106,900
| 2,633,000 | (53,779) | 8/13/22 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 2.042% | 39,237
| 2,633,000 | (58,189) | 9/12/22 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 2.064% | 34,745
| 1,212,000 | 32,170 | 6/20/22 |  | 2.183% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (33,132)
CAD | 2,928,000 | — | 6/13/14 |  | 1.285% | 3 month CAD- |
|  |  |  |  |  | BA-CDOR | 1,319
CAD | 4,995,000 | — | 6/13/17 |  | 1.5875% | 3 month CAD- |
|  |  |  |  |  | BA-CDOR | (10,164)
CAD | 1,253,000 | — | 6/13/22 |  | 2.2% | 3 month CAD- |
|  |  |  |  |  | BA-CDOR | (10,946)
Barclay’s Bank, PLC |  |  |  |  |  |
| $2,248,000 | 1,349 | 12/19/14 |  | 0.45% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (1,708)
| 1,809,000 E | 375 | 12/19/17 |  | 0.90% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (5,324)
| 11,330,000 E | (9,334) | 12/19/14 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 0.45% | 6,075
| 234,000 E | (18,650) | 12/19/42 |  | 2.40% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (6,943)

Master Intermediate Income Trust | 61

INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
|  | Upfront |  |  | Payments | Payments | Unrealized
Swap counterparty / | premium | Termination |  | made by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | fund per annum | (depreciation)
Barclay’s Bank, PLC cont. |  |  |  |  |
| $2,886,000 E | $172,678 | 12/19/42 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 2.40% | $28,292
| 22,877,000 E | 249,538 | 12/19/22 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 1.75% | 212,249
| 20,539,000 E | (69,505) | 12/19/22 |  | 1.75% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (36,026)
AUD | 7,876,000 | — | 9/25/22 |  | 6 month AUD- |  |
|  |  |  |  | BBR-BBSW | 3.78687% | 56,786
AUD | 13,437,000 | — | 9/17/22 |  | 3.88% | 6 month AUD- |
|  |  |  |  |  | BBR-BBSW | (197,881)
EUR | 1,115,000 | — | 10/2/22 |  | 6 month EUR- |  |
|  |  |  |  | EURIBOR- |  |
|  |  |  |  | REUTERS | 1.724% | (3,707)
EUR | 41,668,000 E | — | 8/3/17 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 1.41727% | 18,741
EUR | 1,957,000 | — | 8/16/22 |  | 1.862% | 6 month EUR- |
|  |  |  |  |  | EURIBOR- |
|  |  |  |  |  | REUTERS | (32,066)
EUR | 2,484,000 | — | 9/10/22 |  | 6 month EUR- |  |
|  |  |  |  | EURIBOR- |  |
|  |  |  |  | REUTERS | 1.8325% | 28,037
GBP | 1,646,000 | — | 9/30/22 |  | 6 month GBP- |  |
|  |  |  |  | LIBOR-BBA | 1.865% | (6,999)
GBP | 2,735,000 | — | 8/15/31 |  | 3.6% | 6 month GBP- |
|  |  |  |  |  | LIBOR-BBA | (655,363)
GBP | 1,801,000 | — | 7/25/42 |  | 6 month GBP- |  |
|  |  |  |  | LIBOR-BBA | 2.8425% | (61,593)
GBP | 3,199,000 | — | 7/25/22 |  | 1.885% | 6 month GBP- |
|  |  |  |  |  | LIBOR-BBA | (15,122)
GBP | 990,000 | — | 8/2/22 |  | 6 month GBP- |  |
|  |  |  |  | LIBOR-BBA | 1.93% | 10,878
GBP | 2,686,000 | — | 9/17/22 |  | 6 month GBP- |  |
|  |  |  |  | LIBOR-BBA | 2.048% | 65,504
GBP | 6,613,500 | — | 9/21/22 |  | 1.9425% | 6 month GBP- |
|  |  |  |  |  | LIBOR-BBA | (54,837)
SEK | 14,274,000 | — | 7/11/22 |  | 2.1275% | 3 month SEK- |
|  |  |  |  |  | STIBOR-SIDE | (4,803)
Citibank, N.A. |  |  |  |  |  |
| $893,000 E | — | 10/7/21 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 3.0625% | 27,576
| 11,702,000 E | (13,481) | 12/19/17 |  | 0.90% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (50,342)
| 3,390,000 E | (805) | 12/19/14 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 0.45% | 3,805
| 1,201,000 E | (9,368) | 12/19/22 |  | 1.75% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (7,411)

62 | Master Intermediate Income Trust

INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
|  | Upfront |  |  | Payments | Payments | Unrealized
Swap counterparty / | premium | Termination |  | made by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | fund per annum | (depreciation)
Citibank, N.A. cont. |  |  |  |  |  |
| $610,000 E | $25,869 | 12/19/42 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 2.40% | $(4,649)
EUR | 3,702,000 | — | 8/2/22 |  | 6 month EUR- |  |
|  |  |  |  | EURIBOR- |  |
|  |  |  |  | REUTERS | 1.8% | 36,062
GBP | 2,391,000 | — | 8/8/22 |  | 6 month GBP- |  |
|  |  |  |  | LIBOR-BBA | 1.97% | 39,609
GBP | 3,119,000 | — | 9/24/22 |  | 1.9175% | 6 month GBP- |
|  |  |  |  |  | LIBOR-BBA | (12,654)
SEK | 18,934,000 | — | 8/2/22 |  | 3 month SEK- |  |
|  |  |  |  | STIBOR-SIDE | 2.285% | 46,319
Credit Suisse International |  |  |  |  |
| $2,185,000 | — | 9/27/22 |  | 1.7325% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (6,494)
| 226,914,000 E | (265,319) | 12/19/14 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 0.45% | 43,283
| 29,180,000 E | 60,332 | 12/19/17 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 0.90% | 152,249
| 4,233,000 E | 334,806 | 12/19/42 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 2.40% | 123,030
| 87,537,000 E | 88,143 | 12/19/14 |  | 0.45% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (30,907)
| 42,270,000 E | 22,567 | 12/19/17 |  | 0.90% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (110,584)
| 12,814,000 E | (843,275) | 12/19/42 |  | 2.40% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (202,190)
| 28,912,000 E | 388,622 | 12/19/22 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 1.75% | 341,493
| 24,701,000 E | (375,027) | 12/19/22 |  | 1.75% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (334,764)
AUD | 3,284,000 | — | 9/21/22 |  | 6 month AUD- |  |
|  |  |  |  | BBR-BBSW | 3.8275% | 54,345
AUD | 2,533,000 | — | 7/17/22 |  | 3.77125% | 6 month AUD- |
|  |  |  |  |  | BBR-BBSW | (32,358)
AUD | 3,556,000 | — | 7/24/22 |  | 6 month AUD- |  |
|  |  |  |  | BBR-BBSW | 3.665% | 10,296
AUD | 2,691,000 | — | 9/18/22 |  | 4.05% | 6 month AUD- |
|  |  |  |  |  | BBR-BBSW | (79,881)
CAD | 4,794,000 | — | 9/20/22 |  | 3 month CAD- |  |
|  |  |  |  | BA-CDOR | 2.24125% | 37,822
CAD | 4,379,000 | — | 9/27/22 |  | 2.17% | 3 month CAD- |
|  |  |  |  |  | BA-CDOR | (4,126)
CAD | 22,006,000 | — | 6/13/14 |  | 1.28797% | 3 month CAD- |
|  |  |  |  |  | BA-CDOR | 8,594
CAD | 792,000 | — | 6/13/17 |  | 3 month CAD- |  |
|  |  |  |  | BA-CDOR | 1.57927% | 354
CAD | 7,540,000 | — | 8/8/22 |  | 3 month CAD- |  |
|  |  |  |  | BA-CDOR | 2.273% | 97,345

Master Intermediate Income Trust | 63

INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
|  | Upfront |  |  | Payments | Payments | Unrealized
Swap counterparty / | premium | Termination |  | made by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | fund per annum | (depreciation)
Credit Suisse International cont. |  |  |  |  |
CAD | 5,462,000 | $— | 8/9/22 |  | 3 month CAD- |  |
|  |  |  |  | BA-CDOR | 2.26125% | $64,275
CAD | 3,940,000 | — | 9/12/22 |  | 2.3175% | 3 month CAD- |
|  |  |  |  |  | BA-CDOR | (60,496)
CAD | 3,536,000 | — | 9/17/22 |  | 2.38% | 3 month CAD- |
|  |  |  |  |  | BA-CDOR | (73,799)
CHF | 3,234,000 | — | 9/25/22 |  | 6 month CHF- |  |
|  |  |  |  | LIBOR-BBA | 0.945% | 8,878
CHF | 3,282,000 | — | 9/26/22 |  | 6 month CHF- |  |
|  |  |  |  | LIBOR-BBA | 0.9175% | (363)
CHF | 3,279,000 | — | 9/27/22 |  | 6 month CHF- |  |
|  |  |  |  | LIBOR-BBA | 0.96% | 13,839
CHF | 2,158,000 | — | 10/2/22 |  | 6 month CHF- |  |
|  |  |  |  | LIBOR-BBA | 0.92% | (571)
CHF | 626,000 | — | 5/11/22 |  | 6 month CHF- |  |
|  |  |  |  | LIBOR-BBA | 0.975% | 7,821
CHF | 5,256,000 | — | 5/14/22 |  | 1.0125% | 6 month CHF- |
|  |  |  |  |  | LIBOR-BBA | (85,017)
CHF | 5,502,000 | — | 6/19/22 |  | 0.94% | 6 month CHF- |
|  |  |  |  |  | LIBOR-BBA | (38,709)
CHF | 5,763,000 | — | 7/5/22 |  | 1.015% | 6 month CHF- |
|  |  |  |  |  | LIBOR-BBA | (80,550)
CHF | 3,617,000 | — | 7/25/22 |  | 0.9225% | 6 month CHF- |
|  |  |  |  |  | LIBOR-BBA | (12,573)
CHF | 1,924,000 | — | 8/6/22 |  | 0.9075% | 6 month CHF- |
|  |  |  |  |  | LIBOR-BBA | (998)
EUR | 3,234,000 | — | 9/25/22 |  | 1.545% | 1 month EUR- |
|  |  |  |  |  | EONIA-OIS- |
|  |  |  |  |  | COMPOUND | (38,278)
EUR | 3,240,000 | — | 9/26/22 |  | 1.5225% | 1 month EUR- |
|  |  |  |  |  | EONIA-OIS- |
|  |  |  |  |  | COMPOUND | (29,174)
EUR | 1,722,000 | — | 9/27/22 |  | 1.5275% | 1 month EUR- |
|  |  |  |  |  | EONIA-OIS- |
|  |  |  |  |  | COMPOUND | (16,403)
EUR | 13,940,000 | — | 6/28/14 |  | 0.85% | 6 month EUR- |
|  |  |  |  |  | EURIBOR- |
|  |  |  |  |  | REUTERS | (106,659)
EUR | 9,610,000 | — | 8/1/22 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 1.45% | 47,803
EUR | 2,419,000 | — | 8/10/22 |  | 1.87% | 6 month EUR- |
|  |  |  |  |  | EURIBOR- |
|  |  |  |  |  | REUTERS | (42,805)
EUR | 5,217,000 | — | 8/30/22 |  | 1.375% | 1 month EUR- |
|  |  |  |  |  | EONIA-OIS- |
|  |  |  |  |  | COMPOUND | 35,659

64 | Master Intermediate Income Trust

INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
|  | Upfront |  |  | Payments | Payments | Unrealized
Swap counterparty / | premium | Termination |  | made by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | fund per annum | (depreciation)
Credit Suisse International cont. |  |  |  |  |
EUR | 5,799,000 | $— | 9/6/22 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 1.37% | $(46,864)
EUR | 2,533,000 | — | 9/7/22 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 1.386% | (15,647)
EUR | 1,874,000 | — | 9/19/22 |  | 6 month EUR- |  |
|  |  |  |  | EURIBOR- |  |
|  |  |  |  | REUTERS | 1.913% | 38,509
GBP | 6,284,000 | — | 8/2/22 |  | 6 month GBP- |  |
|  |  |  |  | LIBOR-BBA | 1.9125% | 52,319
GBP | 4,043,000 | — | 9/11/22 |  | 1.93% | 6 month GBP- |
|  |  |  |  |  | LIBOR-BBA | (28,634)
GBP | 2,137,000 | — | 9/13/22 |  | 1.985% | 6 month GBP- |
|  |  |  |  |  | LIBOR-BBA | (32,756)
MXN | 33,670,000 | — | 7/21/20 |  | 1 month MXN- |  |
|  |  |  |  | TIIE-BANXICO | 6.895% | 213,338
SEK | 20,923,000 | — | 9/27/22 |  | 3 month SEK- |  |
|  |  |  |  | STIBOR-SIDE | 2.13625% | 7,678
SEK | 91,740,000 | — | 5/16/22 |  | 2.205% | 3 month SEK- |
|  |  |  |  |  | STIBOR-SIDE | (206,316)
SEK | 10,173,000 | — | 6/19/22 |  | 3 month SEK- |  |
|  |  |  |  | STIBOR-SIDE | 2.38% | 47,929
SEK | 9,997,000 | — | 7/2/22 |  | 3 month SEK- |  |
|  |  |  |  | STIBOR-SIDE | 2.325% | 31,038
SEK | 8,697,000 | — | 7/25/22 |  | 2.06% | 3 month SEK- |
|  |  |  |  |  | STIBOR-SIDE | 5,498
SEK | 10,708,000 | — | 9/7/22 |  | 3 month SEK- |  |
|  |  |  |  | STIBOR-SIDE | 2.1725% | 9,007
Deutsche Bank AG |  |  |  |  |  |
| $452,000 E | — | 10/7/21 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 3.0475% | 13,646
| 464,073,000 E | 453,925 | 12/19/14 |  | 0.45% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (177,213)
| 39,822,000 E | 12,353 | 12/19/17 |  | 0.90% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (113,087)
| 13,435,000 E | (126,398) | 12/19/22 |  | 1.75% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (104,499)
KRW | 4,220,000,000 | — | 4/24/17 |  | 3.54% | 3 month KRW- |
|  |  |  |  |  | CD-KSDA- |
|  |  |  |  |  | BLOOMBERG | (126,229)
MXN | 33,670,000 | — | 7/17/20 |  | 1 month MXN- |  |
|  |  |  |  | TIIE-BANXICO | 6.95% | 223,199
MYR | 11,381,000 | — | 7/23/17 |  | 3 month MYR- |  |
|  |  |  |  | KLIBOR-BNM | 2.98% | (56,273)

Master Intermediate Income Trust | 65

INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
|  | Upfront |  |  | Payments | Payments | Unrealized
Swap counterparty / | premium | Termination |  | made by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | fund per annum | (depreciation)
Goldman Sachs International |  |  |  |  |
| $1,748,000 | $— | 9/27/22 |  | 1.76% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | $(9,728)
| 62,161,000 E | (42,823) | 12/19/14 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 0.45% | 41,716
| 11,185,000 E | (21,384) | 12/19/17 |  | 0.90% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (56,616)
| 5,085,000 E | (80,029) | 12/19/22 |  | 1.75% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (71,740)
| 11,759,000 E | 835,727 | 12/19/42 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 2.40% | 247,425
AUD | 10,978,000 | — | 9/17/22 |  | 3.88% | 6 month AUD- |
|  |  |  |  |  | BBR-BBSW | (176,837)
AUD | 3,284,000 | — | 9/21/22 |  | 6 month AUD- |  |
|  |  |  |  | BBR-BBSW | 3.825% | 38,070
AUD | 6,568,000 | — | 9/24/22 |  | 6 month AUD- |  |
|  |  |  |  | BBR-BBSW | 3.82% | 71,913
CHF | 3,282,000 | — | 9/26/22 |  | 6 month CHF- |  |
|  |  |  |  | LIBOR-BBA | 0.93% | 1,423
CHF | 3,279,000 | — | 9/27/22 |  | 6 month CHF- |  |
|  |  |  |  | LIBOR-BBA | 0.945% | 8,778
CHF | 2,186,000 | — | 9/27/22 |  | 6 month CHF- |  |
|  |  |  |  | LIBOR-BBA | 0.972% | 11,925
CHF | 8,477,000 | — | 6/29/22 |  | 0.985% | 6 month CHF- |
|  |  |  |  |  | LIBOR-BBA | (94,976)
CHF | 2,900,000 | — | 8/7/22 |  | 0.93% | 6 month CHF- |
|  |  |  |  |  | LIBOR-BBA | (10,596)
CHF | 5,176,000 | — | 8/30/22 |  | 0.9402% | 6 month CHF- |
|  |  |  |  |  | LIBOR-BBA | (18,928)
EUR | 1,722,000 | — | 9/27/22 |  | 1.505% | 1 month EUR- |
|  |  |  |  |  | EONIA-OIS- |
|  |  |  |  |  | COMPOUND | (11,617)
EUR | 75,760,000 E | — | 8/1/17 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 1.425% | 43,810
EUR | 8,958,000 | — | 8/3/22 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 1.43% | 25,481
EUR | 37,880,000 E | — | 8/9/17 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 1.4775% | 41,376
EUR | 37,880,000 E | — | 8/9/17 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 1.497% | 50,625
EUR | 4,763,000 | — | 8/29/22 |  | 1.4017% | 1 month EUR- |
|  |  |  |  |  | EONIA-OIS- |
|  |  |  |  |  | COMPOUND | 16,404
EUR | 43,654,000 | — | 8/30/14 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 0.11% | (5,432)

66 | Master Intermediate Income Trust

INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
|  | Upfront |  |  | Payments | Payments | Unrealized
Swap counterparty / | premium | Termination |  | made by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | fund per annum | (depreciation)
Goldman Sachs International cont. |  |  |  |  |
EUR | 43,654,000 | $— | 8/30/14 |  | 0.309% | 3 month EUR- |
|  |  |  |  |  | EURIBOR- |
|  |  |  |  |  | REUTERS | $(45,264)
EUR | 43,654,000 | — | 8/31/14 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 0.11% | (5,438)
EUR | 43,654,000 | — | 8/31/14 |  | 0.314% | 3 month EUR- |
|  |  |  |  |  | EURIBOR- |
|  |  |  |  |  | REUTERS | (51,183)
EUR | 29,004,000 E | — | 8/31/17 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 1.38% | (16,772)
EUR | 43,654,000 | — | 9/3/14 |  | 1 month EUR- |  |
|  |  |  |  | EONIA-OIS- |  |
|  |  |  |  | COMPOUND | 0.086% | (39,922)
EUR | 43,654,000 | — | 9/3/14 |  | 0.283% | 3 month EUR- |
|  |  |  |  |  | EURIBOR- |
|  |  |  |  |  | REUTERS | (15,146)
EUR | 5,511,000 | — | 9/25/22 |  | 1.824% | 6 month EUR- |
|  |  |  |  |  | EURIBOR- |
|  |  |  |  |  | REUTERS | (51,690)
GBP | 2,735,000 | — | 9/23/31 |  | 6 month GBP- |  |
|  |  |  |  | LIBOR-BBA | 3.1175% | 308,197
GBP | 6,970,000 | — | 8/2/22 |  | 6 month GBP- |  |
|  |  |  |  | LIBOR-BBA | 1.91% | 55,396
GBP | 2,203,000 | — | 8/7/22 |  | 1.9775% | 6 month GBP- |
|  |  |  |  |  | LIBOR-BBA | (39,024)
GBP | 4,243,000 | — | 8/28/22 |  | 1.9225% | 6 month GBP- |
|  |  |  |  |  | LIBOR-BBA | (30,987)
SEK | 9,775,000 | — | 5/16/22 |  | 3 month SEK- |  |
|  |  |  |  | STIBOR-SIDE | 2.205% | 21,983
SEK | 25,550,000 | — | 5/29/22 |  | 3 month SEK- |  |
|  |  |  |  | STIBOR-SIDE | 2.215% | 60,839
SEK | 21,805,000 | — | 6/11/22 |  | 2.28% | 3 month SEK- |
|  |  |  |  |  | STIBOR-SIDE | (72,251)
SEK | 19,446,000 | — | 8/1/22 |  | 3 month SEK- |  |
|  |  |  |  | STIBOR-SIDE | 2.3% | 51,736
SEK | 27,635,000 | — | 8/13/22 |  | 2.325% | 3 month SEK- |
|  |  |  |  |  | STIBOR-SIDE | (81,964)
SEK | 13,580,000 | — | 8/15/22 |  | 3 month SEK- |  |
|  |  |  |  | STIBOR-SIDE | 2.26% | 28,087
SEK | 7,571,000 | — | 8/30/22 |  | 2.2102% | 3 month SEK- |
|  |  |  |  |  | STIBOR-SIDE | (10,694)
JPMorgan Chase Bank NA |  |  |  |  |
| $2,484,000 E | (4,530) | 12/19/17 |  | 0.90% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (12,355)
| 47,825,000 E | (787,892) | 12/19/22 |  | 1.75% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | (709,938)

Master Intermediate Income Trust | 67

INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
|  | Upfront |  |  | Payments | Payments | Unrealized
Swap counterparty / | premium | Termination |  | made by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | fund per annum | (depreciation)
JPMorgan Chase Bank NA cont. |  |  |  |  |
| $2,785,000 E | $50,074 | 12/19/22 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 1.75% | $45,535
| 3,109,000 E | 313,932 | 12/19/42 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 2.40% | 158,389
| 22,456,000 | — | 9/7/22 |  | 1.678% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | 17,169
| 4,922,000 | — | 9/26/22 |  | 3 month USD- |  |
|  |  |  |  | LIBOR-BBA | 1.73875% | 17,771
CAD | 3,470,000 | — | 9/21/21 |  | 2.3911% | 3 month CAD- |
|  |  |  |  |  | BA-CDOR | (97,423)
CAD | 7,265,000 | — | 5/2/15 |  | 3 month CAD- |  |
|  |  |  |  | BA-CDOR | 1.6575% | 62,548
CAD | 25,317,000 | — | 6/13/14 |  | 3 month CAD- |  |
|  |  |  |  | BA-CDOR | 1.2825% | (12,622)
CAD | 4,193,000 | — | 6/13/17 |  | 3 month CAD- |  |
|  |  |  |  | BA-CDOR | 1.56% | (2,082)
CAD | 5,864,000 | — | 8/8/22 |  | 2.25% | 3 month CAD- |
|  |  |  |  |  | BA-CDOR | (63,157)
CAD | 3,539,000 | — | 8/27/22 |  | 2.2275% | 3 month CAD- |
|  |  |  |  |  | BA-CDOR | (27,332)
EUR | 1,893,000 | — | 7/30/22 |  | 6 month EUR- |  |
|  |  |  |  | EURIBOR- |  |
|  |  |  |  | REUTERS | 1.803% | 19,398
GBP | 800,000 | — | 8/2/22 |  | 6 month GBP- |  |
|  |  |  |  | LIBOR-BBA | 1.92% | 7,581
JPY | 2,402,400,000 | — | 2/19/15 |  | 6 month JPY- |  |
|  |  |  |  | LIBOR-BBA | 0.705% | 326,472
JPY | 511,900,000 | — | 2/19/20 |  | 6 month JPY- |  |
|  |  |  |  | LIBOR-BBA | 1.3975% | 427,538
JPY | 225,883,000 | — | 9/19/22 |  | 0.80% | 6 month JPY- |
|  |  |  |  |  | LIBOR-BBA | (8,175)
MXN | 19,054,000 | — | 9/11/20 |  | 6.82% | 1 month MXN- |
|  |  |  |  |  | TIIE-BANXICO | (114,236)
MXN | 24,639,000 | — | 9/14/20 |  | 6.82% | 1 month MXN- |
|  |  |  |  |  | TIIE-BANXICO | (147,412)
MXN | 4,810,000 | — | 7/16/20 |  | 1 month MXN- |  |
|  |  |  |  | TIIE-BANXICO | 6.99% | 32,872
MXN | 24,320,000 | — | 7/30/20 |  | 6.3833% | 1 month MXN- |
|  |  |  |  |  | TIIE-BANXICO | (93,040)
MXN | 66,197,000 | — | 7/30/20 |  | 6.3833% | 1 month MXN- |
|  |  |  |  |  | TIIE-BANXICO | (253,248)
MXN | 24,320,000 | — | 8/19/20 |  | 1 month MXN- |  |
|  |  |  |  | TIIE-BANXICO | 6.615% | 119,810
MXN | 37,740,000 | — | 11/4/20 |  | 1 month MXN- |  |
|  |  |  |  | TIIE-BANXICO | 6.75% | 213,562

68 | Master Intermediate Income Trust

INTEREST RATE SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
|  | Upfront |  |  | Payments | Payments | Unrealized
Swap counterparty / | premium | Termination |  | made by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | fund per annum | (depreciation)
The Royal Bank of Scotland PLC |  |  |  |  |
| $2,254,000 E | $(28,325) | 12/19/22 |  | 1.75% | 3 month USD- |
|  |  |  |  |  | LIBOR-BBA | $(24,651)
UBS AG |  |  |  |  |  |
CHF | 28,420,000 | — | 5/23/13 |  | 0.7625% | 6 month CHF- |
|  |  |  |  |  | LIBOR-BBA | (181,895)
Total |  |  |  |  |  | $(824,399)
E Extended effective date. |  |  |  |
TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/12 |  |
|  | Upfront |  |  | Fixed payments | Total return | Unrealized
Swap counterparty / | premium | Termination |  | received (paid) by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | or paid by fund | (depreciation)
Barclay’s Bank, PLC |  |  |  |  |  |
| $544,122 | $— | 1/12/40 |  | 5.00% (1 month | Synthetic MBX | $1,959
|  |  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 986,583 | — | 1/12/40 |  | 5.00% (1 month | Synthetic MBX | 3,551
|  |  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 805,770 | — | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | 2,900
|  |  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 3,791,874 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (8,934)
|  |  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 399,133 | — | 1/12/40 |  | 4.00% (1 month | Synthetic MBX | (81)
|  |  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 1,266,448 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (34,552)
|  |  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 41,974 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (1,145)
|  |  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 695,228 | — | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | 2,502
|  |  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 3,311,625 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (7,803)
|  |  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |

Master Intermediate Income Trust | 69

TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
| Upfront |  |  | Fixed payments | Total return | Unrealized
Swap counterparty / | premium | Termination |  | received (paid) by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | or paid by fund | (depreciation)
Barclay’s Bank, PLC cont. |  |  |  |  |
$2,651,601 | $— | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | $9,542
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
949,274 | — | 1/12/40 |  | 4.00% (1 month | Synthetic MBX | (194)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
110,739 | — | 1/12/40 |  | 4.00% (1 month | Synthetic TRS | (2,433)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
153,093 | — | 1/12/38 |  | 6.50% (1 month | Synthetic TRS | (722)
|  |  |  | USD-LIBOR) | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
839,493 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (1,978)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
5,320,000 | — | 4/7/16 |  | (2.63%) | USA Non Revised | (123,727)
|  |  |  |  | Consumer Price |
|  |  |  |  | Index-Urban (CPI-U)
1,859,392 | — | 1/12/41 |  | 3.50% (1 month | Synthetic MBX | 3,781
|  |  |  | USD-LIBOR) | Index 3.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
862,834 | — | 1/12/41 |  | 3.50% (1 month | Synthetic MBX | 1,754
|  |  |  | USD-LIBOR) | Index 3.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
3,473,687 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (94,772)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
468,824 | — | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | 735
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Ginnie Mae II
|  |  |  |  | pools |
2,085,685 | — | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | 7,505
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
2,763,427 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (6,511)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |

70 | Master Intermediate Income Trust

TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
| Upfront |  |  | Fixed payments | Total return | Unrealized
Swap counterparty / | premium | Termination |  | received (paid) by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | or paid by fund | (depreciation)
Barclay’s Bank, PLC cont. |  |  |  |  |
$2,368,744 | $— | 1/12/40 |  | 4.00% (1 month | Synthetic MBX | $(484)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
1,397,757 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (3,293)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
958,882 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (26,161)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
2,496,713 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (68,118)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
909,598 | — | 1/12/40 |  | (4.00%) 1 month | Synthetic TRS | 19,982
|  |  |  | USD-LIBOR | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
421,392 | — | 1/12/40 |  | 5.00% (1 month | Synthetic MBX | 1,517
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
1,616,712 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (44,109)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
3,581,769 | — | 1/12/40 |  | 4.50% (1 month | Synthetic MBX | (5,948)
|  |  |  | USD-LIBOR) | Index 4.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
11,428,858 | — | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | 41,126
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
795,973 | — | 1/12/41 |  | 3.50% (1 month | Synthetic MBX | 1,618
|  |  |  | USD-LIBOR) | Index 3.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
2,495,174 | — | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | 8,979
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
476,699 | — | 1/12/40 |  | 5.00% (1 month | Synthetic MBX | 1,716
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |

Master Intermediate Income Trust | 71

TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
| Upfront |  |  | Fixed payments | Total return | Unrealized
Swap counterparty / | premium | Termination |  | received (paid) by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | or paid by fund | (depreciation)
Barclay’s Bank, PLC cont. |  |  |  |  |
$1,545,453 | $— | 1/12/40 |  | 5.00% (1 month | Synthetic MBX | $5,563
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
1,120,375 | — | 1/12/40 |  | 5.00% (1 month | Synthetic MBX | 4,033
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
Citibank, N.A. |  |  |  |  |  |
1,621,968 | — | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | 5,837
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
3,476,141 | — | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | 12,509
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
3,034,671 | — | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | 10,920
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
Credit Suisse International |  |  |  |  |
1,390,457 | — | 1/12/41 |  | 5.00% (1 month | Synthetic MBX | 5,003
|  |  |  | USD-LIBOR) | Index 5.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
19,252,985 | (48,132) | 1/12/41 |  | 3.50% (1 month | Synthetic MBX | (31,658)
|  |  |  | USD-LIBOR) | Index 3.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
4,813,246 | (11,281) | 1/12/41 |  | 3.50% (1 month | Synthetic MBX | (7,162)
|  |  |  | USD-LIBOR) | Index 3.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
924,869 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (25,233)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
1,543,620 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (42,114)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
1,677,728 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (3,953)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
3,091,557 | — | 1/12/41 |  | 3.50% (1 month | Synthetic MBX | 6,286
|  |  |  | USD-LIBOR) | Index 3.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |

72 | Master Intermediate Income Trust

TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
| Upfront |  |  | Fixed payments | Total return | Unrealized
Swap counterparty / | premium | Termination |  | received (paid) by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | or paid by fund | (depreciation)
Deutsche Bank AG |  |  |  |  |  |
$1,677,728 | $— | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | $(3,953)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
Goldman Sachs International |  |  |  |  |
629,606 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (17,177)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
3,040,000 | — | 3/1/16 |  | 2.47% | USA Non Revised | 39,611
|  |  |  |  | Consumer Price |
|  |  |  |  | Index-Urban (CPI-U)
2,280,000 | — | 3/3/16 |  | 2.45% | USA Non Revised | 28,147
|  |  |  |  | Consumer Price |
|  |  |  |  | Index-Urban (CPI-U)
756,865 | — | 1/12/38 |  | 6.50% (1 month | Synthetic TRS | (3,569)
|  |  |  | USD-LIBOR) | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
1,152,809 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (2,716)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
433,063 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (1,020)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
1,864,936 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (50,881)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
57,462 | — | 1/12/38 |  | 6.50% (1 month | Synthetic TRS | (271)
|  |  |  | USD-LIBOR) | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
10,518,759 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (286,985)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
3,503,358 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (95,582)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
718,619 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (19,606)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |

Master Intermediate Income Trust | 73

TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
| Upfront |  |  | Fixed payments | Total return | Unrealized
Swap counterparty / | premium | Termination |  | received (paid) by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | or paid by fund | (depreciation)
Goldman Sachs International cont. |  |  |  |  |
$813,698 | $— | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | $(1,917)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
3,916,582 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (106,856)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
1,651,449 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (45,056)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
3,662,569 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (99,925)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
1,579,161 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (3,721)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
976,228 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (2,300)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
28,941 | — | 1/12/38 |  | 6.50% (1 month | Synthetic TRS | (136)
|  |  |  | USD-LIBOR) | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
75,078 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (177)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
200,069 | — | 1/12/38 |  | (6.50%) 1 month | Synthetic MBX | (471)
|  |  |  | USD-LIBOR | Index 6.50% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
3,431,000 | — | 4/3/17 |  | 2.3225% | USA Non Revised | 25,115
|  |  |  |  | Consumer Price |
|  |  |  |  | Index- Urban (CPI-U)
3,431,000 | — | 4/4/17 |  | 2.35% | USA Non Revised | 30,193
|  |  |  |  | Consumer Price |
|  |  |  |  | Index- Urban (CPI-U)
2,711,647 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (73,982)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |
1,768,686 | 21,832 | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (27,591)
|  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  | 30 year Fannie Mae |
|  |  |  |  | pools |

74 | Master Intermediate Income Trust

TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 9/30/12 cont. |  |
|  | Upfront |  |  | Fixed payments | Total return | Unrealized
Swap counterparty / | premium | Termination |  | received (paid) by | received by | appreciation/
Notional amount | received (paid) | date |  | fund per annum | or paid by fund | (depreciation)
Goldman Sachs International cont. |  |  |  |  |
| $3,389,016 | $46,599 | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | $(48,102)
|  |  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 2,418,555 | 48,371 | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (19,745)
|  |  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 5,037,570 | 130,662 | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (11,770)
|  |  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 3,431,000 | — | 4/5/17 |  | 2.355% | USA Non Revised | 31,153
|  |  |  |  |  | Consumer Price |
|  |  |  |  |  | Index-Urban (CPI-U)
| 3,431,000 | — | 4/5/22 |  | 2.66% | USA Non Revised | 33,620
|  |  |  |  |  | Consumer Price |
|  |  |  |  |  | Index-Urban (CPI-U)
GBP | 2,141,000 | — | 3/30/17 |  | (3.0925%) | GBP Non-revised | (99,501)
|  |  |  |  |  | UK Retail Price |
|  |  |  |  |  | Index |
GBP | 2,141,000 | — | 4/2/17 |  | (3.085%) | GBP Non-revised | (109,216)
|  |  |  |  |  | UK Retail Price |
|  |  |  |  |  | Index |
GBP | 4,282,000 | — | 9/20/17 |  | 2.6625% | GBP Non-revised | 21,421
|  |  |  |  |  | UK Retail Price |
|  |  |  |  |  | Index |
GBP | 2,141,000 | — | 9/21/17 |  | 2.66% | GBP Non-revised | 10,244
|  |  |  |  |  | UK Retail Price |
|  |  |  |  |  | Index |
GBP | 2,141,000 | — | 4/3/17 |  | (3.09%) | GBP Non-revised | (110,149)
|  |  |  |  |  | UK Retail Price |
|  |  |  |  |  | Index |
GBP | 2,141,000 | — | 4/3/22 |  | (3.21%) | GBP Non-revised | (217,187)
|  |  |  |  |  | UK Retail Price |
|  |  |  |  |  | Index |
JPMorgan Chase Bank NA |  |  |  |  |
| $3,721,911 | — | 1/12/41 |  | 4.00% (1 month | Synthetic TRS | (101,544)
|  |  |  |  | USD-LIBOR) | Index 4.00% |
|  |  |  |  |  | 30 year Fannie Mae |
|  |  |  |  |  | pools |
| 3,125,000 | — | 9/14/14 |  | (2.10%) | USA Non Revised | (11,491)
|  |  |  |  |  | Consumer Price |
|  |  |  |  |  | Index-Urban (CPI-U)
GBP | 1,941,000 | — | 9/12/14 |  | 2.825% | GBP Non-revised | 9,904
|  |  |  |  |  | UK Retail Price |
|  |  |  |  |  | Index |
Total |  |  |  |  |  |  | $(1,724,956)

Master Intermediate Income Trust | 75

CREDIT DEFAULT CONTRACTS OUTSTANDING at 9/30/12 |  |  |  |
|  | Upfront |  |  |  | Fixed payments |
|  | premium |  |  | Termi- | received | Unrealized
Swap counterparty / |  | received | Notional |  | nation | (paid) by fund | appreciation/
Referenced debt* | Rating*** | (paid)** | amount |  | date | per annum | (depreciation)
Barclay’s Bank, PLC |  |  |  |  |  |  |
Irish Gov’t, 4.50%, |  |  |  |  |  |  |
4/18/2020 | — | $(35,493) | $443,000 |  | 9/20/17 | (100 bp) | $7,054
Obrigacoes Do |  |  |  |  |  |  |
Tesouro, 5.45%, |  |  |  |  |  |  |
9/23/13 | — | (72,281) | 443,000 |  | 9/20/17 | (100 bp) | (53)
Credit Suisse International |  |  |  |  |  |
Bonos Y Oblig Del |  |  |  |  |  |  |
Estado, 5 1/2%, |  |  |  |  |  |  |
7/30/17 | — | (18,605) | 2,090,000 |  | 12/20/19 | (100 bp) | 334,455
Spain Gov’t, 5.50%, |  |  |  |  |  |  |
7/30/2017 | — | (52,226) | 443,000 |  | 9/20/17 | (100 bp) | 1,481
Deutsche Bank AG |  |  |  |  |  |  |
Republic of |  |  |  |  |  |  |
Argentina, 8.28%, |  |  |  |  |  |  |
12/31/33 | B3 | 82,441 | 705,000 |  | 3/20/17 | 500 bp | (26,839)
Smurfit Kappa |  |  |  |  |  |  |
Funding, 7 3/4%, |  |  |  |  |  |  |
4/1/15 | B1 | — | EUR 425,000 |  | 9/20/13 | 715 bp | 37,472
Virgin Media |  |  |  |  |  |  |
Finance PLC, |  |  |  |  |  |  |
8 3/4%, 4/15/14 | BB– | — | EUR 400,000 |  | 9/20/13 | 477 bp | 22,364
Virgin Media |  |  |  |  |  |  |
Finance PLC, |  |  |  |  |  |  |
8 3/4%, 4/15/14 | BB– | — | EUR 400,000 |  | 9/20/13 | 535 bp | 25,391
JPMorgan Chase Bank NA |  |  |  |  |  |  |
DJ CDX NA HY Series |  |  |  |  |  |  |
18 Index | B+/P | 67,778 | $2,556,180 |  | 6/20/17 | 500 bp | 85,256
Morgan Stanley Capital Services LLC |  |  |  |  |
Republic of |  |  |  |  |  |  |
Venezuela, 9 1/4%, |  |  |  |  |  |  |
9/15/27 | B2 | — | 510,000 |  | 10/20/12 | 339 bp | 7,749
Total |  |  |  |  |  |  | $494,330

* 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, 2012. Securities rated by Putnam are indicated by “/P.” Securities rated by Fitch are indicated by “/F.”

76 | Master Intermediate Income Trust

ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:

Level 1: Valuations based on quoted prices for identical securities in active markets.

Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement.

The following is a summary of the inputs used to value the fund’s net assets as of the close of the reporting period:

|  | Valuation inputs |
Investments in securities: | Level 1 | Level 2 | Level 3
Common stocks: |  |  |
Consumer cyclicals | $— | $376 | $7
| 13,543 | — | —
Total common stocks | 13,543 | 376 | 7
Asset-backed securities | $— | $2,314,944 | $—
Convertible bonds and notes | — | 441,598 | —
Convertible preferred stocks | 117,810 | 246,360 | —
Corporate bonds and notes | — | 108,273,382 | —
Foreign government bonds and notes | — | 28,427,833 | —
Mortgage-backed securities | — | 162,976,596 | —
Preferred stocks | 90,008 | 185,223 | —
Purchased options outstanding | — | 20,489,555 | —
Senior loans | — | 7,055,839 | —
U.S. Government and Agency Mortgage Obligations | — | 63,059,112 | —
Warrants | — | 585 | 26,594
Short-term investments | 8,612,407 | 44,623,325 | —
Totals by level | $8,833,768 | $438,094,728 | $26,601
|  | Valuation inputs |
Other financial instruments: | Level 1 | Level 2 | Level 3
Forward currency contracts | — | (1,065,687) | —
Futures contracts | (99,069) | — | —
Written options | — | (18,326,255) | —
TBA sale commitments | — | (28,515,469) | —
Interest rate swap contracts | — | (1,058,746) | —
Total return swap contracts | — | (1,913,007) | —
Credit default contracts | — | 522,716 | —
Totals by level | $(99,069) | $(50,356,448) | $—

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.

Master Intermediate Income Trust | 77

Statement of assets and liabilities 9/30/12

ASSETS |
Investment in securities, at value (Note 1): |
Unaffiliated issuers (identified cost $427,950,195) | $439,967,710
Affiliated issuers (identified cost $6,987,387) (Note 6) | 6,987,387
Cash | 428,510
Foreign currency (cost $259,979) (Note 1) | 259,878
Dividends, interest and other receivables | 4,308,908
Receivable for investments sold | 22,349,205
Receivable for sales of delayed delivery securities (Note 1) | 28,114,628
Unrealized appreciation on swap contracts (Note 1) | 6,256,807
Unrealized appreciation on forward currency contracts (Note 1) | 1,446,851
Premium paid on swap contracts (Note 1) | 3,046,131
Total assets | 513,166,015
LIABILITIES |
Payable for variation margin (Note 1) | 62,685
Distributions payable to shareholders | 1,647,059
Payable for investments purchased | 30,351,857
Payable for purchases of delayed delivery securities (Note 1) | 61,017,451
Payable for compensation of Manager (Note 2) | 669,249
Payable for investor servicing fees (Note 2) | 29,560
Payable for custodian fees (Note 2) | 54,596
Payable for Trustee compensation and expenses (Note 2) | 138,777
Payable for administrative services (Note 2) | 1,596
Written options outstanding, at value (premiums $18,902,333) (Notes 1 and 3) | 18,326,255
Premium received on swap contracts (Note 1) | 3,440,143
Unrealized depreciation on forward currency contracts (Note 1) | 2,512,538
Unrealized depreciation on swap contracts (Note 1) | 8,311,832
TBA sale commitments, at value (proceeds receivable $28,018,125) (Note 1) | 28,515,469
Collateral on certain derivative contracts, at value (Note 1) | 1,625,020
Other accrued expenses | 165,944
Total liabilities | 156,870,031
Net assets | $356,295,984
REPRESENTED BY |
Paid-in capital (Unlimited shares authorized) (Note 1) | $496,993,586
Distributions in excess of net investment income (Note 1) | (268,167)
Accumulated net realized loss on investments and foreign currency transactions (Note 1) | (149,260,861)
Net unrealized appreciation of investments and assets and liabilities in foreign currencies | 8,831,426
Total — Representing net assets applicable to capital shares outstanding | $356,295,984
COMPUTATION OF NET ASSET VALUE |
Net asset value per share ($356,295,984 divided by 65,690,624 shares) | $5.42

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

78 | Master Intermediate Income Trust

Statement of operations Year ended 9/30/12

INVESTMENT INCOME |
Interest (net of foreign tax of $13,239) (including interest income of $24,162 |
from investments in affiliated issuers) (Note 6) | $20,843,010
Dividends | 36,658
Total investment income | 20,879,668
EXPENSES |
Compensation of Manager (Note 2) | 2,646,710
Investor servicing fees (Note 2) | 176,375
Custodian fees (Note 2) | 132,852
Trustee compensation and expenses (Note 2) | 30,928
Administrative services (Note 2) | 10,765
Other | 404,757
Total expenses | 3,402,387
Expense reduction (Note 2) | (478)
Net expenses | 3,401,909
Net investment income | 17,477,759
Net realized loss on investments (Notes 1 and 3) | (10,039,555)
Net realized loss on swap contracts (Note 1) | (34,837,885)
Net realized gain on futures contracts (Note 1) | 1,584,446
Net realized loss on foreign currency transactions (Note 1) | (2,046,142)
Net realized loss on written options (Notes 1 and 3) | (10,446,913)
Net unrealized depreciation of assets and liabilities in foreign currencies during the year | (4,837,099)
Net unrealized appreciation of investments, futures contracts, swap contracts, written options, |
and TBA sale commitments during the year | 70,682,551
Net gain on investments | 10,059,403
Net increase in net assets resulting from operations | $27,537,162

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

Master Intermediate Income Trust | 79

Statement of changes in net assets

INCREASE (DECREASE) IN NET ASSETS | Year ended 9/30/12 | Year ended 9/30/11
Operations: |  |
Net investment income | $17,477,759 | $22,867,685
Net realized gain (loss) on investments |  |
and foreign currency transactions | (55,786,049) | 30,365,452
Net unrealized appreciation or depreciation of investments |  |
and assets and liabilities in foreign currencies | 65,845,452 | (55,098,101)
Net increase (decrease) in net assets resulting |  |
from operations | 27,537,162 | (1,864,964)
Distributions to shareholders (Note 1): |  |
From ordinary income |  |
Net investment income | (5,888,390) | (30,037,712)
From return of capital | (16,380,731) | —
Increase in capital share transactions from reinvestment |  |
of distributions | — | 1,575,240
Total increase (decrease) in net assets | 5,268,041 | (30,327,436)
NET ASSETS |  |
Beginning of year | 351,027,943 | 381,355,379
End of year (including distributions in excess of net |  |
investment income of $268,167 and $5,637,321, respectively) | $356,295,984 | $351,027,943
NUMBER OF FUND SHARES |  |
Shares outstanding at beginning of year | 65,690,624 | 65,424,306
Shares issued in connection with reinvestment of distributions | — | 266,318
Shares outstanding at end of year | 65,690,624 | 65,690,624

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

80 | Master Intermediate Income Trust

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

PER-SHARE OPERATING PERFORMANCE |  |  |  |
|  |  | Year ended |  |
| 9/30/12 | 9/30/11 | 9/30/10 | 9/30/09 | 9/30/08
Net asset value, beginning of period | $5.34 | $5.83 | $5.94 | $5.88 | $7.13
Investment operations: |  |  |  |  |
Net investment income a | .27 | .35 | .58 | .34 | .49 f
Net realized and unrealized |  |  |  |  |
gain (loss) on investments | .15 | (.38) | .39 | .24 | (1.28)
Total from investment operations | .42 | (.03) | .97 | .58 | (.79)
Less distributions: |  |  |  |  |
From net investment income | (0.09) | (.46) | (1.08) | (.54) | (.49)
From return of capital | (0.25) | — | — | — | —
Total distributions | (.34) | (.46) | (1.08) | (.54) | (.49)
Increase from shares repurchased | — | — | — | .02 | .03
Net asset value, end of period | $5.42 | $5.34 | $5.83 | $5.94 | $5.88
Market value, end of period | $5.18 | $5.05 | $6.28 | $5.99 | $5.39
Total return at market value (%)b | 9.56 | (13.01) | 25.33 | 24.66 | (8.92)
RATIOS AND SUPPLEMENTAL DATA |  |  |  |  |
Net assets, end of period |  |  |  |  |
(in thousands) | $356,296 | $351,028 | $381,355 | $383,388 | $391,973
Ratio of expenses to average |  |  |  |  |
net assets (%)c | .96 | .94 | .94 d | 1.02 d | .96 f
Ratio of expenses to average |  |  |  |  |
net assets excluding interest |  |  |  |  |
expense (%)c | .96 | .94 | .94 | .98 | .96 f
Ratio of net investment income |  |  |  |  |
to average net assets (%) | 4.94 | 5.97 | 9.82 d | 7.05 d | 7.29 f
Portfolio turnover (%)e | 157 | 171 | 88 | 223 | 159

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

b Total return assumes dividend reinvestment.

c Includes amounts paid through expense offset arrangements (Note 2).

d Includes interest accrued in connection with certain terminated derivative contracts, which amounted to less than 0.01% and 0.04% of average net assets as of September 30, 2010 and September 30, 2009, respectively.

e Portfolio turnover excludes TBA roll transactions.

f Reflects waivers of certain fund expenses in connection with investments in Putnam Prime Money Market Fund during the period. As a result of such waivers, the expenses of the fund reflect a reduction of the following amounts:

| Percentage of
| average net assets
September 30, 2008 | 0.01%

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

Master Intermediate Income Trust | 81

Notes to financial statements 9/30/12

Within the following Notes to financial statements, references to “State Street” represent State Street Bank and Trust Company, references to “the SEC” represent the Securities and Exchange Commission and references to “Putnam Management” represent Putnam Investment Management, LLC, the fund’s manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC. Unless otherwise noted, the “reporting period” represents the period from October 1, 2011 through September 30, 2012.

Putnam Master Intermediate Income Trust (the fund) is a Massachusetts business trust, which is registered under the Investment Company Act of 1940, as amended, as a closed-end management investment company and is authorized to issue an unlimited number of shares. The investment objective of the fund is to seek, with equal emphasis, high current income and relative stability of net asset value, by allocating its investments among the U.S. investment grade sector, high-yield sector and international sector.

In the normal course of business, the fund enters into contracts that may include agreements to indemnify another party under given circumstances. The fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be, but have not yet been, made against the fund. However, the fund’s management team expects the risk of material loss to be remote.

Note 1: Significant accounting policies

The following is a summary of significant accounting policies consistently followed by the fund in the preparation of its financial statements. The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations. Actual results could differ from those estimates. Subsequent events after the Statement of assets and liabilities date through the date that the financial statements were issued have been evaluated in the preparation of the financial statements.

Security valuation Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities. If no sales are reported, as in the case of some securities traded over-the-counter, a security is valued at its last reported bid price and is generally categorized as a Level 2 security.

Investments in other open-end investment companies (excluding exchange traded funds), which are classified as Level 1 securities, are based on their net asset value. The net asset value of an investment company equals the total value of its assets less its liabilities and divided by the number of its outstanding shares. Shares are only valued as of the close of regular trading on the New York Stock Exchange each day that the exchange is open.

Market quotations are not considered to be readily available for certain debt obligations and other investments; such investments are valued on the basis of valuations furnished by an independent pricing service approved by the Trustees or dealers selected by Putnam Management. Such services or dealers determine valuations for normal institutional-size trading units of such securities using methods based on market transactions for comparable securities and various relationships, generally recognized by institutional traders, between securities (which considers such factors as security prices, yields, maturities and ratings). These securities will generally be categorized as Level 2.

Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange-traded funds and futures contracts. These securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate.

To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security’s fair value, the security will be valued at fair value by Putnam Management. Certain investments, including certain restricted and illiquid securities and derivatives, are

82 Master Intermediate Income Trust

also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures and recovery rates. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs.

Such valuations and procedures are reviewed periodically by the Trustees. Certain securities may be valued on the basis of a price provided by a single source. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.

Security transactions and related investment income Security transactions are recorded on the trade date (the date the order to buy or sell is executed). Gains or losses on securities sold are determined on the identified cost basis. Interest income, net of any applicable withholding taxes, is recorded on the accrual basis. Dividend income, net of any applicable withholding taxes, is recognized on the ex-dividend date except that certain dividends from foreign securities, if any, are recognized as soon as the fund is informed of the ex-dividend date. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Dividends representing a return of capital or capital gains, if any, are reflected as a reduction of cost and/or as a realized gain. All premiums/discounts are amortized/accreted on a yield-to-maturity basis.

Securities purchased or sold on a delayed delivery basis may be settled a month or more after the trade date; interest income is accrued based on the terms of the securities. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract. The fund earned certain fees in connection with its senior loan purchasing activities. These fees are treated as market discount and are amortized into income in the Statement of operations.

Stripped securities The fund may invest in stripped securities which represent a participation in securities that may be structured in classes with rights to receive different portions of the interest and principal. Interest-only securities receive all of the interest and principal-only securities receive all of the principal. If the interest-only securities experience greater than anticipated prepayments of principal, the fund may fail to recoup fully its initial investment in these securities. Conversely, principal-only securities increase in value if prepayments are greater than anticipated and decline if prepayments are slower than anticipated. The market value of these securities is highly sensitive to changes in interest rates.

Foreign currency translation The accounting records of the fund are maintained in U.S. dollars. The market value of foreign securities, currency holdings, and other assets and liabilities is recorded in the books and records of the fund after translation to U.S. dollars based on the exchange rates on that day. The cost of each security is determined using historical exchange rates. Income and withholding taxes are translated at prevailing exchange rates when earned or incurred. The fund does not isolate that portion of realized or unrealized gains or losses resulting from changes in the foreign exchange rate on investments from fluctuations arising from changes in the market prices of the securities. Such gains and losses are included with the net realized and unrealized gain or loss on investments. Net realized gains and losses on foreign currency transactions represent net realized exchange gains or losses on closed forward currency contracts, disposition of foreign currencies, currency gains and losses realized between the trade and settlement dates on securities transactions and the difference between the amount of investment income and foreign withholding taxes recorded on the fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized appreciation and depreciation of assets and liabilities in foreign currencies arise from changes in the value of open forward currency contracts and assets and liabilities other than investments at the period end, resulting from changes in the exchange rate.

Options contracts The fund uses options contracts to hedge duration and convexity and to isolate prepayment risk.

The potential risk to the fund is that the change in value of options contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.

Master Intermediate Income Trust 83

Exchange traded options are valued at the last sale price or, if no sales are reported, the last bid price for purchased options and the last ask price for written options. Options traded over-the-counter are valued using prices supplied by dealers. Certain options contracts include premiums that do not settle until the expiration date of the contract.

Written option contracts outstanding at period end, if any, are listed after the fund’s portfolio. See Note 3 for the volume of written options contracts activity for the reporting period. The fund had an average contract amount of approximately 764,500,000 on purchased options contracts for the reporting period.

Futures contracts The fund uses futures contracts to gain exposure to interest rates.

The potential risk to the fund is that the change in value of futures contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments if there is an illiquid secondary market for the contracts, if interest or exchange rates move unexpectedly or if the counterparty to the contract is unable to perform. With futures, there is minimal counterparty credit risk to the fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Risks may exceed amounts recognized on the Statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin.”

Futures contracts outstanding at period end, if any, are listed after the fund’s portfolio. Outstanding contracts on futures contracts at the close of the reporting period are indicative of the volume of activity during the reporting period.

Forward currency contracts The fund buys and sells forward currency contracts, which are agreements between two parties to buy and sell currencies at a set price on a future date. These contracts are used to hedge foreign exchange risk and to gain exposure on currency.

The U.S. dollar value of forward currency contracts is determined using current forward currency exchange rates supplied by a quotation service. The market value of the contract will fluctuate with changes in currency exchange rates. The contract is marked to market daily and the change in market value is recorded as an unrealized gain or loss. The fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed when the contract matures or by delivery of the currency. The fund could be exposed to risk if the value of the currency changes unfavorably, if the counterparties to the contracts are unable to meet the terms of their contracts or if the fund is unable to enter into a closing position. Risks may exceed amounts recognized on the Statement of assets and liabilities.

Forward currency contracts outstanding at period end, if any, are listed after the fund’s portfolio. Outstanding forward currency contracts at the close of the reporting period are indicative of the volume of activity during the reporting period.

Total return swap contracts The fund entered into total return swap contracts, which are arrangements to exchange a market linked return for a periodic payment, both based on a notional principal amount, to hedge sector exposure, to manage exposure to specific sectors or industries, to gain exposure to specific sectors or industries, and to gain exposure to rates of inflation in specific regions or countries.

To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. Total return swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain total return swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform. The fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

84 Master Intermediate Income Trust

Total return swap contracts outstanding at period end, if any, are listed after the fund’s portfolio. The fund had an average notional amount of approximately $157,100,000 on total return swap contracts for the reporting period.

Interest rate swap contracts The fund entered into interest rate swap contracts, which are arrangements between two parties to exchange cash flows based on a notional principal amount, to hedge interest rate risk.

An interest rate swap can be purchased or sold with an upfront premium. An upfront payment received by the fund is recorded as a liability on the fund’s books. An upfront payment made by the fund is recorded as an asset on the fund’s books. Upfront payments are recorded as realized gains and losses at the closing of the contract. Interest rate swap contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as realized gains or losses. Certain interest rate swap contracts may include extended effective dates. Payments related to these swap contracts are accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or if the counterparty defaults on its obligation to perform. The fund’s maximum risk of loss from counterparty risk is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty. Risk of loss may exceed amounts recognized on the Statement of assets and liabilities.

Interest rate swap contracts outstanding at period end, if any, are listed after the fund’s portfolio. The fund had an average notional amount of approximately $3,045,900,000 on interest rate swap contracts for the reporting period.

Credit default contracts The fund entered into credit default contracts to hedge credit risk and to gain exposure on individual names and/or baskets of securities.

In a credit default contract, the protection buyer typically makes an up front payment and a periodic stream of payments to a counterparty, the protection seller, in exchange for the right to receive a contingent payment upon the occurrence of a credit event on the reference obligation or all other equally ranked obligations of the reference entity. Credit events are contract specific but may include bankruptcy, failure to pay, restructuring and obligation acceleration. An upfront payment received by the fund is recorded as a liability on the fund’s books. An upfront payment made by the fund is recorded as an asset on the fund’s books. Periodic payments received or paid by the fund are recorded as realized gains or losses. The credit default contracts are marked to market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as an unrealized gain or loss. Upon the occurrence of a credit event, the difference between the par value and market value of the reference obligation, net of any proportional amount of the upfront payment, is recorded as a realized gain or loss.

In addition to bearing the risk that the credit event will occur, the fund could be exposed to market risk due to unfavorable changes in interest rates or in the price of the underlying security or index or the possibility that the fund may be unable to close out its position at the same time or at the same price as if it had purchased the underlying reference obligations. In certain circumstances, the fund may enter into offsetting credit default contracts which would mitigate its risk of loss. Risks of loss may exceed amounts recognized on the Statement of assets and liabilities. The fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the contract. This risk may be mitigated by having a master netting arrangement between the fund and the counterparty. Where the fund is a seller of protection, the maximum potential amount of future payments the fund may be required to make is equal to the notional amount of the relevant credit default contract.

Credit default contracts outstanding, including their respective notional amounts at period end, if any, are listed after the fund’s portfolio. The fund had an average notional amount of approximately $11,200,000 on credit default swap contracts for the reporting period.

Master agreements The fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern over-the-counter derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the fund is held in a segregated account by the fund’s custodian and with respect to those amounts which can be sold or repledged, are presented in the fund’s portfolio. Collateral posted to the fund which cannot be sold or repledged totaled $8,173,621 at the close of the reporting period.

Collateral pledged by the fund is segregated by the fund’s custodian and identified in the fund’s portfolio. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities

Master Intermediate Income Trust 85

as agreed to by the fund and the applicable counterparty. Collateral requirements are determined based on the fund’s net position with each counterparty.

Termination events applicable to the fund may occur upon a decline in the fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the fund’s counterparties to elect early termination could impact the fund’s future derivative activity.

At the close of the reporting period, the fund had a net liability position of $2,794,348 on open derivative contracts subject to the Master Agreements. Collateral posted by the fund totaled $14,547,763.

TBA purchase commitments The fund may enter into TBA (to be announced) commitments to purchase securities for a fixed unit price at a future date beyond customary settlement time. Although the unit price has been established, the principal value has not been finalized. However, it is anticipated that the amount of the commitments will not significantly differ from the principal amount. The fund holds, and maintains until settlement date, cash or high-grade debt obligations in an amount sufficient to meet the purchase price, or the fund may enter into offsetting contracts for the forward sale of other securities it owns. Income on the securities will not be earned until settlement date. TBA purchase commitments may be considered securities themselves, and involve a risk of loss if the value of the security to be purchased declines prior to the settlement date, which risk is in addition to the risk of decline in the value of the fund’s other assets. Unsettled TBA purchase commitments are valued at fair value of the underlying securities, according to the procedures described under “Security valuation” above. The contract is marked to market daily and the change in market value is recorded by the fund as an unrealized gain or loss.

Although the fund will generally enter into TBA purchase commitments with the intention of acquiring securities for its portfolio or for delivery pursuant to options contracts it has entered into, the fund may dispose of a commitment prior to settlement if Putnam Management deems it appropriate to do so.

TBA sale commitments The fund may enter into TBA sale commitments to hedge its portfolio positions or to sell mortgage-backed securities it owns under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, equivalent deliverable securities, or an offsetting TBA purchase commitment deliverable on or before the sale commitment date, are held as “cover” for the transaction.

Unsettled TBA sale commitments are valued at the fair value of the underlying securities, generally according to the procedures described under “Security valuation” above. The contract is marked to market daily and the change in market value is recorded by the fund as an unrealized gain or loss. If the TBA sale commitment is closed through the acquisition of an offsetting TBA purchase commitment, the fund realizes a gain or loss. If the fund delivers securities under the commitment, the fund realizes a gain or a loss from the sale of the securities based upon the unit price established at the date the commitment was entered into. TBA sale commitments outstanding at period end, if any, are listed after the fund’s portfolio.

Interfund lending The fund, along with other Putnam funds, may participate in an interfund lending program pursuant to an exemptive order issued by the SEC. This program allows the fund to lend to other Putnam funds that permit such transactions. Interfund lending transactions are subject to each fund’s investment policies and borrowing and lending limits. Interest earned or paid on the interfund lending transaction will be based on the average of certain current market rates. During the reporting period, the fund did not utilize the program.

Federal taxes It is the policy of the fund to distribute all of its taxable income within the prescribed time period and otherwise comply with the provisions of the Internal Revenue Code of 1986, as amended (the Code), applicable to regulated investment companies. It is also the intention of the fund to distribute an amount sufficient to avoid imposition of any excise tax under Section 4982 of the Code.

The fund is subject to the provisions of Accounting Standards Codification ASC 740 Income Taxes (ASC 740). ASC 740 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The fund did not have a liability to record for any unrecognized tax benefits in the accompanying financial statements. No provision has been made for federal taxes on income, capital gains or unrealized appreciation on securities held nor for excise tax on income and capital gains. Each of the fund’s federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

86 Master Intermediate Income Trust

The fund may also be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. In some cases, the fund may be entitled to reclaim all or a portion of such taxes, and such reclaim amounts, if any, are reflected as an asset on the fund’s books. In many cases, however, the fund may not receive such amounts for an extended period of time, depending on the country of investment.

At September 30, 2012, the fund had a capital loss carryover of $95,760,219 available to the extent allowed by the Code to offset future net capital gain, if any. The amounts of the carryovers and the expiration dates are:

Loss carryover
Short-term | Long-term | Total | Expiration
$1,369,084 | $1,272,753 | $2,641,837 | *
7,342,291 | N/A | 7,342,291 | September 30, 2015
11,586,218 | N/A | 11,586,218 | September 30, 2016
28,970,279 | N/A | 28,970,279 | September 30, 2017
45,219,594 | N/A | 45,219,594 | September 30, 2018

* Under the Regulated Investment Company Modernization Act of 2010, the fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

Pursuant to federal income tax regulations applicable to regulated investment companies, the fund has elected to defer certain capital losses of $46,268,746 recognized during the period between November 1, 2011 and September 30, 2012 to its fiscal year ending September 30, 2013.

Distributions to shareholders Distributions to shareholders from net investment income are recorded by the fund on the ex-dividend date. Distributions from capital gains, if any, are recorded on the ex-dividend date and paid at least annually. The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences include temporary and/or permanent differences of foreign currency gains and losses, late year loss deferrals, dividends payable, realized gains and losses on certain futures contracts, income on swap contracts, and interest only securities. Reclassifications are made to the fund’s capital accounts to reflect income and gains available for distribution (or available capital loss carryovers) under income tax regulations. For the reporting period ended, the fund reclassified $6,220,215 to increase distribution in excess of net investment income, $59,892 to increase paid-in-capital and $6,160,323 to decrease accumulated net realized losses.

The tax basis components of distributable earnings and the federal tax cost as of the close of the reporting period were as follows:

Unrealized appreciation | $12,346,848
Unrealized depreciation | (7,808,463)
Net unrealized appreciation | 4,538,385
Capital loss carryforward | (95,760,219)
Post-October capital loss deferral | (46,268,746)
Cost for federal income tax purposes | $442,416,712

Note 2: Management fee, administrative services and other transactions

The fund pays Putnam Management for management and investment advisory services quarterly based on the average net assets (including assets, but excluding liabilities, attributable to leverage for investment purposes) of the fund. The fee is based on the following annual rates:

Master Intermediate Income Trust | 87

0.75% of the first $500 million of average net assets,
0.65% of the next $500 million of average net assets,
0.60% of the next $500 million of average net assets,
0.55% of the next $5 billion of average net assets,
0.525% of the next $5 billion of average net assets,
0.505% of the next $5 billion of average net assets,
0.49% of the next $5 billion of average net assets,
0.48% of the next $5 billion of average net assets,
0.47% of the next $5 billion of average net assets,
0.46% of the next $5 billion of average net assets,
0.45% of the next $5 billion of average net assets,
0.44% of the next $5 billion of average net assets,
0.43% of the next $8.5 billion of average net assets and
0.42% of any excess thereafter.

Putnam Investments Limited (PIL), an affiliate of Putnam Management, is authorized by the Trustees to manage a separate portion of the assets of the fund as determined by Putnam Management from time to time. Putnam Management pays a quarterly sub-management fee to PIL for its services at an annual rate of 0.40% of the average net assets (including assets, but excluding liabilities, attributable to leverage for investment purposes) of the portion of the fund managed by PIL.

The fund reimburses Putnam Management an allocated amount for the compensation and related expenses of certain officers of the fund and their staff who provide administrative services to the fund. The aggregate amount of all such reimbursements is determined annually by the Trustees.

Custodial functions for the fund’s assets are provided by State Street. Custody fees are based on the fund’s asset level, the number of its security holdings and transaction volumes.

Putnam Investor Services, Inc., an affiliate of Putnam Management, provided investor servicing agent functions to the fund. Putnam Investor Services, Inc. was paid a monthly fee for investor servicing at an annual rate of 0.05% of the fund’s average net assets. The amounts incurred for investor servicing agent functions during the reporting period are included in Investor servicing fees in the Statement of operations.

The fund has entered into expense offset arrangements with Putnam Investor Services, Inc. and State Street whereby Putnam Investor Services, Inc.’s and State Street’s fees are reduced by credits allowed on cash balances. For the reporting period, the fund’s expenses were reduced by $478 under the expense offset arrangements.

Each independent Trustee of the fund receives an annual Trustee fee, of which $276, as a quarterly retainer, has been allocated to the fund, and an additional fee for each Trustees meeting attended. Trustees also are reimbursed for expenses they incur relating to their services as Trustees.

The fund has adopted a Trustee Fee Deferral Plan (the Deferral Plan) which allows the Trustees to defer the receipt of all or a portion of Trustees fees payable on or after July 1, 1995. The deferred fees remain invested in certain Putnam funds until distribution in accordance with the Deferral Plan.

The fund has adopted an unfunded noncontributory defined benefit pension plan (the Pension Plan) covering all Trustees of the fund who have served as a Trustee for at least five years and were first elected prior to 2004. Benefits under the Pension Plan are equal to 50% of the Trustee’s average annual attendance and retainer fees for the three years ended December 31, 2005. The retirement benefit is payable during a Trustee’s lifetime, beginning the year following retirement, for the number of years of service through December 31, 2006. Pension expense for the fund is included in Trustee compensation and expenses in the Statement of operations. Accrued pension liability is included in Payable for Trustee compensation and expenses in the Statement of assets and liabilities. The Trustees have terminated the Pension Plan with respect to any Trustee first elected after 2003.

Note 3: Purchases and sales of securities

During the reporting period, cost of purchases and proceeds from sales of investment securities other than short-term investments and TBA transactions aggregated $522,869,230 and $458,044,048, respectively. These figures include the cost of purchases and proceeds from sales of long-term U.S. government securities of $3,970,313 and $3,973,945, respectively.

88 Master Intermediate Income Trust

Written option transactions during the reporting period are summarized as follows:

|  | Written swap option | Written swap option
|  | contract amounts | premiums
Written options outstanding at the | USD | 770,739,002 | $36,194,686
beginning of the reporting period | CHF | 15,780,000 | 21,184
Options opened | USD | 558,904,889 | 27,836,988
Options exercised | USD | (283,024,080) | (6,952,379)
Options closed | USD | (811,522,586) | (38,176,962)
| CHF | (15,780,000) | (21,184)
Written options outstanding at the |  |  |
end of the reporting period | USD | 235,097,225 | $18,902,333

Note 4: Summary of derivative activity

The following is a summary of the market values of derivative instruments as of the close of the reporting period:

Market values of derivative instruments as of the close of the reporting period

| Asset derivatives | Liability derivatives
Derivatives not |  |  |  |
accounted for as | Statement of |  | Statement of |
hedging instruments | assets and |  | assets and |
under ASC 815 | liabilities location | Market value | liabilities location | Market value
Credit contracts | Receivables | $631,996 | Payables | $109,280
Foreign exchange |  |  |  |
contracts | Receivables | 1,446,851 | Payables | 2,512,538
| Investments, |  |  |
| Receivables, Net |  |  |
| assets — Unrealized |  | Payables, Net assets — |
Equity contracts | appreciation | 27,179 | Unrealized depreciation | —
| Investments, |  |  |
| Receivables, Net |  |  |
| assets — Unrealized |  | Payables, Net assets — |
Interest rate contracts | appreciation | 26,454,448* | Unrealized depreciation | 27,361,970*
Total |  | $28,560,474 |  | $29,983,788

* Includes cumulative appreciation/depreciation of futures contracts as reported in the fund’s portfolio. Only current day’s variation margin is reported within the Statement of assets and liabilities.

The following is a summary of realized and change in unrealized gains or losses of derivative instruments on the Statement of operations for the reporting period (see Note 1):

Amount of realized gain or (loss) on derivatives recognized in net gain or (loss) on investments

Derivatives not accounted |  |  | Forward |  |
for as hedging instruments |  |  | currency |  |
under ASC 815 | Options | Futures | contracts | Swaps | Total
Credit contracts | $— | $— | $— | $(192,198) | $(192,198)
Foreign exchange |  |  |  |  |
contracts | — | — | (1,966,368) | — | $(1,966,368)
Interest rate contracts | (21,475,582) | 1,584,446 | — | (34,645,687) | $(54,536,823)
Total | $(21,475,582) | $1,584,446 | $(1,966,368) | $(34,837,885) | $(56,695,389)

Master Intermediate Income Trust 89

Change in unrealized appreciation or (depreciation) on derivatives recognized in net gain or (loss) on investments

Derivatives not |  |  |  |  |  |
accounted for as |  |  |  | Forward |  |
hedging instruments |  |  |  | currency |  |
under ASC 815 | Options | Warrants† | Futures | contracts | Swaps | Total
Credit contracts | $— | $— | $— | $— | $747,995 | $747,995
Foreign exchange |  |  |  |  |  |
contracts | — | — | — | (4,781,859) | — | $(4,781,859)
Equity contracts | — | 11,060 | — | — | — | $11,060
Interest rate contracts | 7,619,642 | — | (332,694) | — | 36,094,284 | $43,381,232
Total | $7,619,642 | $11,060 | $(332,694) | $(4,781,859) | $36,842,279 | $39,358,428

† For the reporting period, the transaction volume for warrants was minimal.

Note 5: Shares repurchased

In September 2012, the Trustees approved the renewal of the repurchase program to allow the fund to repurchase up to 10% of its outstanding common shares over the 12-month period ending October 7, 2013 (based on shares outstanding as of October 7, 2012). Prior to this renewal, the Trustees had approved a repurchase program to allow the fund to repurchase up to 10% of its outstanding common shares over the 12-month period ending October 7, 2012 (based on shares outstanding as of October 7, 2011). Repurchases are made when the fund’s shares are trading at less than net asset value and in accordance with procedures approved by the fund’s Trustees. For the reporting period, the fund did not repurchase any of its outstanding common shares.

At the close of the reporting period, Putnam Investments, LLC owned approximately 720 shares of the fund (0.001% of the fund’s shares outstanding), valued at $3,902 based on net asset value.

Note 6: Transactions with affiliated issuer

Transactions during the reporting period with Putnam Money Market Liquidity Fund, which is under common ownership and control, were as follows:

| Market |  |  |  | Market
| value at the |  |  |  | value at
| beginning |  |  |  | end of
| of reporting | Purchase | Sales | Investment | reporting
Name of affiliate | period | cost | proceeds | income | period
Putnam Money Market |  |  |  |  |
Liquidity Fund * | $66,991,032 | $250,323,987 | $310,327,632 | $24,162 | $6,987,387

* Management fees charged to Putnam Money Market Liquidity Fund have been waived by Putnam Management.

Note 7: Senior loan commitments

Senior loans are purchased or sold on a when-issued or delayed delivery basis and may be settled a month or more after the trade date, which from time to time can delay the actual investment of available cash balances; interest income is accrued based on the terms of the securities. Senior loans can be acquired through an agent, by assignment from another holder of the loan, or as a participation interest in another holder’s portion of the loan. When the fund invests in a loan or participation, the fund is subject to the risk that an intermediate participant between the fund and the borrower will fail to meet its obligations to the fund, in addition to the risk that the borrower under the loan may default on its obligations.

90 Master Intermediate Income Trust

Note 8: Market, credit and other risks

In the normal course of business, the fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the contracting party to the transaction to perform (credit risk). The fund may be exposed to additional credit risk that an institution or other entity with which the fund has unsettled or open transactions will default.

Investments in foreign securities involve certain risks, including those related to economic instability, unfavorable political developments, and currency fluctuations. The fund may invest in higher yielding, lower rated bonds that may have a higher rate of default. The fund may invest a significant portion of its assets in securitized debt instruments, including mortgage-backed and asset-backed investments. The yields and values of these investments are sensitive to changes in interest rates, the rate of principal payments on the underlying assets and the market’s perception of the issuers. The market for these investments may be volatile and limited, which may make them difficult to buy or sell.

Note 9: New accounting pronouncements

In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011–04 “Fair Value Measurements and Disclosures (Topic 820) — Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS”. ASU 2011–04 amends FASB Topic 820 “Fair Value Measurement” and seeks to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP. ASU 2011–04 is effective for fiscal years and interim periods beginning after December 15, 2011. The application of ASU 2011–04 did not have a material impact on the fund’s financial statements.

In December 2011, the FASB issued ASU No. 2011–11 “Disclosures about Offsetting Assets and Liabilities”. The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of assets and liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods. Putnam Management is currently evaluating the application of ASU 2011–11 and its impact, if any, on the fund’s financial statements.

Master Intermediate Income Trust | 91

Federal tax information (Unaudited)

The Form 1099 that will be mailed to you in January 2013 will show the tax status of all distributions paid to your account in calendar 2012.

For the reporting period, a portion of the fund’s distribution represents a return of capital and is therefore not taxable to shareholders. The return of capital is primarily due to foreign currency losses.

For the reporting period ended, pursuant to §871(k) of the Internal Revenue Code, the fund hereby designates $4,065,214 of distributions paid as qualifying to be taxed as interest-related dividends.

92 Master Intermediate Income Trust

Shareholder meeting results (Unaudited)

January 26, 2012 annual meeting

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

| Votes for | Votes withheld
Ravi Akhoury | 55,803,089 | 2,625,353
Barbara M. Baumann | 55,877,078 | 2,551,364
Jameson A. Baxter | 55,884,677 | 2,543,765
Charles B. Curtis | 55,829,318 | 2,599,124
Robert J. Darretta | 55,873,904 | 2,554,539
John A. Hill | 55,864,724 | 2,563,719
Paul L. Joskow | 55,873,610 | 2,554,833
Elizabeth T. Kennan | 55,727,408 | 2,701,034
Kenneth R. Leibler | 55,882,389 | 2,546,054
Robert E. Patterson | 55,883,295 | 2,545,148
George Putnam, III | 55,511,455 | 2,916,988
Robert L. Reynolds | 55,899,064 | 2,529,378
W. Thomas Stephens | 55,891,592 | 2,536,851

All tabulations are rounded to the nearest whole number.

Master Intermediate Income Trust 93

About the Trustees

Independent Trustees

94 Master Intermediate Income Trust

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

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

As of September 30, 2012, there were 109 Putnam funds. All Trustees serve as Trustees of all Putnam funds.

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

Master Intermediate Income Trust 95

Officers

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

Jonathan S. Horwitz (Born 1955) | Janet C. Smith (Born 1965)
Executive Vice President, Principal Executive | Vice President, Principal Accounting Officer,
Officer, and Compliance Liaison | and Assistant Treasurer
Since 2004 | Since 2007
| Director of Fund Administration Services,
Steven D. Krichmar (Born 1958) | Putnam Investments and Putnam Management
Vice President and Principal Financial Officer |
Since 2002 | Susan G. Malloy (Born 1957)
Chief of Operations, Putnam Investments and | Vice President and Assistant Treasurer
Putnam Management | Since 2007
| Director of Accounting & Control Services,
Robert T. Burns (Born 1961) | Putnam Management
Vice President and Chief Legal Officer |
Since 2011 | James P. Pappas (Born 1953)
General Counsel, Putnam Investments and | Vice President
Putnam Management | Since 2004
| Director of Trustee Relations,
Robert R. Leveille (Born 1969) | Putnam Investments and Putnam Management
Vice President and Chief Compliance Officer |
Since 2007 | Mark C. Trenchard (Born 1962)
Chief Compliance Officer, Putnam Investments, | Vice President and BSA Compliance Officer
Putnam Management, and Putnam Retail | Since 2002
Management | Director of Operational Compliance,
| Putnam Investments and Putnam
Michael J. Higgins (Born 1976) | Retail Management
Vice President and Treasurer |
Since 2010 | Judith Cohen (Born 1945)
Manager of Finance, Dunkin’ Brands (2008– | Vice President, Clerk, and Associate Treasurer
2010); Senior Financial Analyst, Old Mutual Asset | Since 1993
Management (2007–2008); Senior Financial |
Analyst, Putnam Investments (1999–2007) | Nancy E. Florek (Born 1957)
| Vice President, Proxy Manager, Assistant Clerk,
| and Associate Treasurer
| Since 2000

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

96 Master Intermediate Income Trust

Fund information

Founded 75 years ago, Putnam Investments was built around the concept that a balance between risk and reward is the hallmark of a well-rounded financial program. We manage over 100 funds across income, value, blend, growth, asset allocation, absolute return, and global sector categories.

Investment Manager | Trustees | Robert R. Leveille
Putnam Investment | Jameson A. Baxter, Chair | Vice President and
Management, LLC | Liaquat Ahamed | Chief Compliance Officer
One Post Office Square | Ravi Akhoury |
Boston, MA 02109 | Barbara M. Baumann | Michael J. Higgins
| Charles B. Curtis | Vice President and Treasurer
Investment Sub-Manager | Robert J. Darretta |
Putnam Investments Limited | Katinka Domotorffy | Janet C. Smith
57–59 St James’s Street | John A. Hill | Vice President,
London, England SW1A 1LD | Paul L. Joskow | Principal Accounting Officer,
| Elizabeth T. Kennan | and Assistant Treasurer
Marketing Services | Kenneth R. Leibler |
Putnam Retail Management | Robert E. Patterson | Susan G. Malloy
One Post Office Square | George Putnam, III | Vice President and
Boston, MA 02109 | Robert L. Reynolds | Assistant Treasurer
| W. Thomas Stephens |
Custodian |  | James P. Pappas
State Street Bank | Officers | Vice President
and Trust Company | Robert L. Reynolds |
| President | Mark C. Trenchard
Legal Counsel |  | Vice President and
Ropes & Gray LLP | Jonathan S. Horwitz | BSA Compliance Officer
| Executive Vice President, |
Independent Registered | Principal Executive Officer, and | Judith Cohen
Public Accounting Firm | Compliance Liaison | Vice President, Clerk, and
KPMG LLP |  | Associate Treasurer
| Steven D. Krichmar |
| Vice President and | Nancy E. Florek
| Principal Financial Officer | Vice President, Proxy
|  | Manager, Assistant Clerk, and
| Robert T. Burns | Associate Treasurer
| Vice President and |
| Chief Legal Officer |

Call 1-800-225-1581 Monday through Friday between 8:00 a.m. and 8:00 p.m. Eastern Time, or visit putnam.com anytime for up-to-date information about the fund’s NAV.

Item 2. Code of Ethics:

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

(c) In May 2008, the Code of Ethics of Putnam Investment Management, LLC was updated in its entirety to include the amendments adopted in August 2007 as well as a several additional technical, administrative and non-substantive changes. In May of 2009, the Code of Ethics of Putnam Investment Management, LLC was amended to reflect that all employees will now be subject to a 90-day blackout restriction on holding Putnam open-end funds, except for portfolio managers and their supervisors (and each of their immediate family members), who will be subject to a one-year blackout restriction on the funds that they manage or supervise. In June 2010, the Code of Ethics of Putnam Investments was updated in its entirety to include the amendments adopted in May of 2009 and to change certain rules and limits contained in the Code of Ethics. In addition, the updated Code of Ethics included numerous technical, administrative and non-substantive changes, which were intended primarily to make the document easier to navigate and understand. In July 2011, the Code of Ethics of Putnam Investments was updated to reflect several technical, administrative and non-substantive changes resulting from changes in employee titles.

Item 3. Audit Committee Financial Expert:

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

Item 4. Principal Accountant Fees and Services:

The following table presents fees billed in each of the last two fiscal years for services rendered to the fund by the fund’s independent auditor:

Fiscal year ended | Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees
September 30, 2012 | $136,019 | $-- | $6,300 | $-
September 30, 2011 | $92,504 | $-- | $6,100 | $-

For the fiscal years ended September 30, 2012 and September 30, 2011, the fund’s independent auditor billed aggregate non-audit fees in the amounts of $6,300 and $6,100 respectively, to the fund, Putnam Management and any entity controlling, controlled by or under common control with Putnam Management that provides ongoing services to the fund.

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

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

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

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

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

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

Fiscal year ended | Audit- Related Fees | Tax Fees | All Other Fees | Total Non-Audit Fees
September 30, 2012 | $ - | $ - | $ - | $ -
September 30, 2011 | $ - | $ - | $ - | $ -

Item 5. Audit Committee of Listed Registrants

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

Kenneth R. Leibler (Chairperson)

Robert J. Darretta

John A. Hill

Barbara M. Baumann

Charles B. Curtis

(b) Not applicable

Item 6. Schedule of Investments:

The registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders in Item 1 above.

Item 7. Disclosure of Proxy Voting Policies and Procedures For Closed-End Management Investment Companies:

Proxy voting guidelines of the Putnam funds

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

The proxy voting guidelines are just that – guidelines. The guidelines are not exhaustive and do not address all potential voting issues. Because the circumstances of individual companies are so varied, there may be instances when the funds do not vote in strict adherence to these guidelines. For example, the proxy voting service is expected to bring to the Proxy Manager’s attention proxy questions that are company-specific and of a non-routine nature and that, even if covered by the guidelines, may be more appropriately handled on a case-by-case basis.

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

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

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

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

I. BOARD-APPROVED PROPOSALS

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

Matters relating to the Board of Directors

Uncontested Election of Directors

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

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

| • | the board does not have a majority of independent directors,

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

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

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

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

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

| ► | The funds will withhold votes from any nominee for director:

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

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

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

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

Commentary:

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

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

Time commitment: Being a director of a company requires a significant time commitment to adequately prepare for and attend the company’s board and committee meetings. Directors must be able to commit the time and attention necessary to perform their fiduciary duties in proper fashion, particularly in times of crisis. The funds’ Trustees are concerned about over-committed directors. In some cases, directors may serve on too many boards to make a meaningful contribution. This may be particularly true for senior executives of public companies (or other directors with substantially full-time employment) who serve on more than a few outside boards. The funds may withhold votes from such directors on a case-by-case basis where it appears that they may be unable to discharge their duties properly because of excessive commitments.

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

Corporate governance practices: Board independence depends not only on its members’ individual relationships, but also on the board’s overall attitude toward management. Independent boards are committed to good corporate governance practices and, by providing objective independent judgment, enhancing shareholder value. The funds may withhold votes on a case-by-case basis from some or all directors who, through their lack of independence or otherwise, have failed to observe good corporate governance practices or, through specific corporate action, have demonstrated a disregard for the interests of shareholders. Such instances may include cases where a board of directors has approved compensation arrangements for one or more members of management that, in the judgment of the funds’ Trustees, are excessive by reasonable corporate standards relative to the company’s record of performance. It may also represent a disregard for the interests of shareholders if a board of directors fails to register an appropriate response when a director who fails to win the support of a majority of shareholders in an election (sometimes referred to as a “rejected director”) continues to serve on the board. While the Trustees recognize that it may in some circumstances be appropriate for a rejected director to continue his or her service on the board, steps should be taken to address the concerns reflected by the shareholders’ lack of support for the rejected director.

Contested Elections of Directors

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

Classified Boards

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

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

Other Board-Related Proposals

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

Executive Compensation

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

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

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

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

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

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

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

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

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

the award pool or amount per employee under the plan is unlimited, or

the plan’s performance criteria is undisclosed, or

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

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

Capitalization

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

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

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

| ► | The funds will vote for proposals authorizing share repurchase programs.

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

Acquisitions, Mergers, Reincorporations, Reorganizations and Other Transactions

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

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

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

Anti-Takeover Measures

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

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

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

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

Other Business Matters

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

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

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

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

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

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

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

II. SHAREHOLDER PROPOSALS

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

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

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

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

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

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

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

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

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

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

| • | the company undergoes a change in control, and

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

| ► | The funds will vote on a case-by-case basis on shareholder proposals requiring companies to accelerate vesting of equity awards under management severance agreements only if both of the following conditions are met:

| • | the company undergoes a change in control, and

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

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

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

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

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

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

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

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

Commentary: In light of the substantial reforms in corporate governance that are currently underway, the funds’ Trustees believe that effective corporate reforms should be promoted by holding boards of directors – and in particular their independent directors – accountable for their actions, rather than by imposing additional legal restrictions on board governance through piecemeal proposals. Generally speaking, shareholder proposals relating to business operations are often motivated primarily by political or social concerns, rather than the interests of shareholders as investors in an economic enterprise. As stated above, the funds’ Trustees believe that boards of directors and management are responsible for ensuring that their businesses are operating in accordance with high legal and ethical standards and should be held accountable for resulting corporate behavior. Accordingly, the funds will generally support the recommendations of boards that meet the basic independence and governance standards established in these guidelines. Where boards fail to meet these standards, the funds will generally evaluate shareholder proposals on a case-by-case basis. The funds will also consider proposals requiring that the chairman’s position be filled by someone other than the company’s chief executive officer on a case-by-case basis, recognizing that in some cases this separation may advance the company’s corporate governance while in other cases it may be less necessary to the sound governance of the company. The funds will take into account the level of independent leadership on a company’s board in evaluating these proposals.

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

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

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

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

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

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

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

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

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

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

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

Uncontested Board Elections

Germany

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

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

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

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

Japan

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

| • | the board does not have a majority of outside directors,

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

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

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

Commentary:

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

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

Korea

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

| • | fewer than half of the directors are outside directors,

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

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

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

Russia

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

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

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

United Kingdom

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

| • | the board does not have at least a majority of independent non-executive directors,

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

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

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

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

Commentary:

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

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

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

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

All other jurisdictions

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

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

Contested Board Elections

Italy

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

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

Corporate Governance

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

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

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

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

Taiwan

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

Compensation

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

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

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

Capitalization

| ► | The funds will vote for proposals

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

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

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

Australia

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

Hong Kong

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

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

Other Business Matters

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

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

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

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

France

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

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

Germany

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

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

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

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

Taiwan

| ► | The funds will vote for proposals to amend a Taiwanese company’s procedural rules.

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

As adopted December 9, 2011

Proxy voting procedures of the Putnam funds

The proxy voting procedures below explain the role of the funds’ Trustees, the proxy voting service and the Proxy Manager, as well as how the process will work when a proxy question needs to be handled on a case-by-case basis, or when there may be a conflict of interest.

The role of the funds’ Trustees

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

The role of the proxy voting service

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

The role of the Proxy Manager

Each year, a member of the Office of the Trustees is appointed Proxy Manager to assist in the coordination and voting of the funds’ proxies. The Proxy Manager will deal directly with the proxy voting service and, in the case of proxy questions referred by the proxy voting service, will solicit voting recommendations and instructions from the Office of the Trustees, the Chair of the Board Policy and Nominating Committee, and Putnam Management’s investment professionals, as appropriate. The Proxy Manager is responsible for ensuring that these questions and referrals are responded to in a timely fashion and for transmitting appropriate voting instructions to the proxy voting service.

Voting procedures for referral items

As discussed above, the proxy voting service will refer proxy questions to the Proxy Manager under certain circumstances. When the application of the proxy voting guidelines is unclear or a particular proxy question is not covered by the guidelines (and does not involve investment considerations), the Proxy Manager will assist in interpreting the guidelines and, as appropriate, consult with one or more senior staff members of the Office of the Trustees and the Chair of the Board Policy and Nominating Committee on how the funds’ shares will be voted.

For proxy questions that require a case-by-case analysis pursuant to the guidelines or that are not covered by the guidelines but involve investment considerations, the Proxy Manager will refer such questions, through an electronic request form, to Putnam Management’s investment professionals for a voting recommendation. Such referrals will be made in cooperation with the person or persons designated by Putnam Management’s Legal and Compliance Department to assist in processing such referral items. In connection with each referral item, the Legal and Compliance Department will conduct a conflicts of interest review, as described below under “Conflicts of interest,” and provide electronically a conflicts of interest report (the “Conflicts Report”) to the Proxy Manager describing the results of such review. After receiving a referral item from the Proxy Manager, Putnam Management’s investment professionals will provide a recommendation electronically to the Proxy Manager and the person or persons designated by the Legal and Compliance Department to assist in processing referral items. Such recommendation will set forth (1) how the proxies should be voted; (2) the basis and rationale for such recommendation; and (3) any contacts the investment professionals have had with respect to the referral item with non-investment personnel of Putnam Management or with outside parties (except for routine communications from proxy solicitors). The Proxy Manager will then review the investment professionals’ recommendation and the Conflicts Report with one or more senior staff members of the Office of the Trustees in determining how to vote the funds’ proxies. The Proxy Manager will maintain a record of all proxy questions that have been referred to Putnam Management’s investment professionals, the voting recommendation, and the Conflicts Report.

In some situations, the Proxy Manager and/or one or more senior staff members of the Office of the Trustees may determine that a particular proxy question raises policy issues requiring consultation with the Chair of the Board Policy and Nominating Committee, who, in turn, may decide to bring the particular proxy question to the Committee or the full Board of Trustees for consideration.

Conflicts of interest

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

As adopted March 11, 2005 and revised June 12, 2009

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

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

Portfolio Managers | Joined Fund | Employer | Positions Over Past Five Years
D. William Kohli | 2002 | Putnam Management 1994 – Present | Co-Head Fixed Income, Previously, Team Leader, Portfolio Construction and Global Strategy and Director, Global Core
Michael Atkin | 2007 | Putnam Management 1997 – Present | Portfolio Manager, Previously Director of Sovereign Research, Previously, Senior Economist and Team Leader Country Analysis
Kevin Murphy | 2007 | Putnam Management 1999 – Present | Portfolio Manager, Previously, Team Leader, High Grade Credit
Michael Salm | 2011 | Putnam Management 1997 – Present | Co-Head Fixed Income, Previously, Team Leader, Liquid Markets and Mortgage Specialist
Paul Scanlon | 2005 | Putnam Management 1999 – Present | Co-Head Fixed Income, Team Leader, U.S. High Yield

(a)(2) Other Accounts Managed by the Fund’s Portfolio Managers.

The following table shows the number and approximate assets of other investment accounts (or portions of investment accounts) that the fund’s Portfolio Managers managed as of the fund’s most recent fiscal year-end. Unless noted, none of the other accounts pays a fee based on the account’s performance.

Portfolio Leader or Member | Other SEC-registered open-end and closed-end funds | Other accounts that pool assets from more than one client | Other accounts (including separate accounts, managed account programs and single-sponsor defined contribution plan offerings)
| Number of accounts | Assets | Number of accounts | Assets | Number of accounts | Assets
William Kohli | 15* | $7,336,700,000 | 18** | $3,359,100,000 | 14*** | $12,439,000,000
Michael Salm | 29* | $12,816,100,000 | 28 # | $9,547,300,000 | 18## | $8,873,300,000
Michael Atkin | 6 | $4,963,600,000 | 8 | $2,354,300,000 | 9*** | $4,914,600,000
Paul Scanlon | 26* | $11,041,000,000 | 25### | $6,781,400,000 | 9 | $2,227,700,000
Kevin Murphy | 25* | $10,373,500,000 | 22# | $5,843,800,000 | 14*** | $8,089,600,000

* 4 accounts, with total assets of $1,620,600,000 pay an advisory fee based on account performance.

** 1 account, with total assets of $100,500,000 pay an advisory fee based on account performance

*** 1 account, with total assets of $479,900,000 pay an advisory fee based on account performance.

# 2 accounts, with total assets of $176,300,000 pay an advisory fee based on account performance

## 2 accounts, with total assets of $732,800,000 pay an advisory fee based on account performance

### 3 accounts, with total assets of $307,500,000 an advisory fee based on account performance

Potential conflicts of interest in managing multiple accounts. Like other investment professionals with multiple clients, the fund’s Portfolio Managers may face certain potential conflicts of interest in connection with managing both the fund and the other accounts listed under “Other Accounts Managed by the Fund’s Portfolio Managers” at the same time. The paragraphs below describe some of these potential conflicts, which Putnam Management believes are faced by investment professionals at most major financial firms. As described below, Putnam Management and the Trustees of the Putnam funds have adopted compliance policies and procedures that attempt to address certain of these potential conflicts.

The management of accounts with different advisory fee rates and/or fee structures, including accounts that pay advisory fees based on account performance (“performance fee accounts”), may raise potential conflicts of interest by creating an incentive to favor higher-fee accounts. These potential conflicts may include, among others:

• The most attractive investments could be allocated to higher-fee accounts or performance fee accounts.

• The trading of higher-fee accounts could be favored as to timing and/or execution price. For example, higher-fee accounts could be permitted to sell securities earlier than other accounts when a prompt sale is desirable or to buy securities at an earlier and more opportune time.

• The trading of other accounts could be used to benefit higher-fee accounts (front- running).

• The investment management team could focus their time and efforts primarily on higher-fee accounts due to a personal stake in compensation.

Putnam Management attempts to address these potential conflicts of interest relating to higher-fee accounts through various compliance policies that are generally intended to place all accounts, regardless of fee structure, on the same footing for investment management purposes. For example, under Putnam Management’s policies:

• Performance fee accounts must be included in all standard trading and allocation procedures with all other accounts.

• All accounts must be allocated to a specific category of account and trade in parallel with allocations of similar accounts based on the procedures generally applicable to all accounts in those groups (e.g., based on relative risk budgets of accounts).

• All trading must be effected through Putnam’s trading desks and normal queues and procedures must be followed (i.e., no special treatment is permitted for performance fee accounts or higher-fee accounts based on account fee structure).

• Front running is strictly prohibited.

• The fund’s Portfolio Manager(s) may not be guaranteed or specifically allocated any portion of a performance fee.

As part of these policies, Putnam Management has also implemented trade oversight and review procedures in order to monitor whether particular accounts (including higher-fee accounts or performance fee accounts) are being favored over time.

Potential conflicts of interest may also arise when the Portfolio Manager(s) have personal investments in other accounts that may create an incentive to favor those accounts. As a general matter and subject to limited exceptions, Putnam Management’s investment professionals do not have the opportunity to invest in client accounts, other than the Putnam funds. However, in the ordinary course of business, Putnam Management or related persons may from time to time establish “pilot” or “incubator” funds for the purpose of testing proposed investment strategies and products prior to offering them to clients. These pilot accounts may be in the form of registered investment companies, private funds such as partnerships or separate accounts established by Putnam Management or an affiliate. Putnam Management or an affiliate supplies the funding for these accounts. Putnam employees, including the fund’s Portfolio Manager(s), may also invest in certain pilot accounts. Putnam Management, and to the extent applicable, the Portfolio Manager(s) will benefit from the favorable investment performance of those funds and accounts. Pilot funds and accounts may, and frequently do, invest in the same securities as the client accounts. Putnam Management’s policy is to treat pilot accounts in the same manner as client accounts for purposes of trading allocation – neither favoring nor disfavoring them except as is legally required. For example, pilot accounts are normally included in Putnam Management’s daily block trades to the same extent as client accounts (except that pilot accounts do not participate in initial public offerings).

A potential conflict of interest may arise when the fund and other accounts purchase or sell the same securities. On occasions when the Portfolio Manager(s) consider the purchase or sale of a security to be in the best interests of the fund as well as other accounts, Putnam Management’s trading desk may, to the extent permitted by applicable laws and regulations, aggregate the securities to be sold or purchased in order to obtain the best execution and lower brokerage commissions, if any. Aggregation of trades may create the potential for unfairness to the fund or another account if one account is favored over another in allocating the securities purchased or sold – for example, by allocating a disproportionate amount of a security that is likely to increase in value to a favored account. Putnam Management’s trade allocation policies generally provide that each day’s transactions in securities that are purchased or sold by multiple accounts are, insofar as possible, averaged as to price and allocated between such accounts (including the fund) in a manner which in Putnam Management’s opinion is equitable to each account and in accordance with the amount being purchased or sold by each account. Certain exceptions exist for specialty, regional or sector accounts. Trade allocations are reviewed on a periodic basis as part of Putnam Management’s trade oversight procedures in an attempt to ensure fairness over time across accounts.

“Cross trades,” in which one Putnam account sells a particular security to another account (potentially saving transaction costs for both accounts), may also pose a potential conflict of interest. Cross trades may be seen to involve a potential conflict of interest if, for example, one account is permitted to sell a security to another account at a higher price than an independent third party would pay, or if such trades result in more attractive investments being allocated to higher-fee accounts. Putnam Management and the fund’s Trustees have adopted compliance procedures that provide that any transactions between the fund and another Putnam-advised account are to be made at an independent current market price, as required by law.

Another potential conflict of interest may arise based on the different investment objectives and strategies of the fund and other accounts. For example, another account may have a shorter-term investment horizon or different investment objectives, policies or restrictions than the fund. Depending on another account’s objectives or other factors, the Portfolio Manager(s) may give advice and make decisions that may differ from advice given, or the timing or nature of decisions made, with respect to the fund. In addition, investment decisions are the product of many factors in addition to basic suitability for the particular account involved. Thus, a particular security may be bought or sold for certain accounts even though it could have been bought or sold for other accounts at the same time. More rarely, a particular security may be bought for one or more accounts managed by the Portfolio Manager(s) when one or more other accounts are selling the security (including short sales). There may be circumstances when purchases or sales of portfolio securities for one or more accounts may have an adverse effect on other accounts. As noted above, Putnam Management has implemented trade oversight and review procedures to monitor whether any account is systematically favored over time.

The fund’s Portfolio Manager(s) may also face other potential conflicts of interest in managing the fund, and the description above is not a complete description of every conflict that could be deemed to exist in managing both the fund and other accounts.

(a)(3) Compensation of portfolio managers. Putnam’s goal for our products and investors is to deliver strong performance versus peers or performance ahead of benchmark, depending on the product, over a rolling 3-year period. Portfolio managers are evaluated and compensated, in part, based on their performance relative to this goal across the products they manage. In addition to their individual performance, evaluations take into account the performance of their group and a subjective component.

Each portfolio manager is assigned an industry competitive incentive compensation target consistent with this goal and evaluation framework. Actual incentive compensation may be higher or lower than the target, based on individual, group, and subjective performance, and may also reflect the performance of Putnam as a firm. Typically, performance is measured over the lesser of three years or the length of time a portfolio manager has managed a product.
Incentive compensation includes a cash bonus and may also include grants of deferred cash, stock or options. In addition to incentive compensation, portfolio managers receive fixed annual salaries typically based on level of responsibility and experience.
For this fund, the peer group Putnam compares fund performance against is its broad investment category as determined by Lipper Inc. and identified in the shareholder report included in Item 1.

(a)(4) Fund ownership. The following table shows the dollar ranges of shares of the fund owned by the professionals listed above at the end of the fund’s last two fiscal years, including investments by their immediate family members and amounts invested through retirement and deferred compensation plans.

F* - Assets in the fund |

|  |  |  |  |  | $0 |  |  | $1-$10,000 |  | $10,001-$50,000 |  |  | $50,001-$100,000 |  |  | $100,001-$500,000 |  |  | $500,001-$1,000,000 |  |  |  | $1,000,001 and Over

Name |  |  |  | F* |  |  |  |  | F* |  |  |  | F* |  |  |  |  |  | F* |  |  |  |  |  | F* |  |  |  |  | F* |  |  |  |  |  |  | F* |  |
Atkin, Michael J. |  | | |  | F* |  |  |  |  | | |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  |  | | |  |  |  |
Kohli, D. William |  | | |  | F* |  |  |  |  | | |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  |  | | |  |  |
Murphy, Kevin F. |  | | |  | F* |  |  |  |  | | |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  |  | | |  |  |
Salm, Michael V. |  | | |  | F* |  |  |  |  | | |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  |  | | |  |  |  |
Scanlon, Paul D. |  | | |  | F* |  |  |  |  | | |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  | | |  |  |  |  |  |  | | |  |  |  |

(b) Not applicable

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers:

Registrant Purchase of Equity Securities |  |
|  |  |  | Maximum
|  |  | Total Number | Number (or
|  |  | of Shares | Approximate
|  |  | Purchased | Dollar Value )
|  |  | as Part | of Shares
|  |  | of Publicly | that May Yet Be
| Total Number | Average | Announced | Purchased
| of Shares | Price Paid | Plans or | under the Plans
Period | Purchased | per Share | Programs* | or Programs**
October 1 - October 7, 2011 | - | - | - | 6,542,431
October 8 - October 31, 2011 | - | - | - | 6,569,062
November 1 - November 30, 2011 | - | - | - | 6,569,062
December 1 - December 31, 2011 | - | - | - | 6,569,062
January 1 - January 31, 2012 | - | - | - | 6,569,062
February 1 - February 28, 2012 | - | - | - | 6,569,062
March 1 - March 31, 2012 | - | - | - | 6,569,062
April 1 - April 30, 2012 | - | - | - | 6,569,062
May 1 - May 31, 2012 | - | - | - | 6,569,062
June 1 - June 30, 2012 | - | - | - | 6,569,062
July 1 - July 31, 2012 | - | - | - | 6,569,062
August 1 - August 31, 2012 | - | - | - | 6,569,062
September 1 - September 30, 2012 | - | - | - | 6,569,062

* In October 2005, the Board of Trustees of the Putnam Funds initiated the closed-end fund share repurchase program, which, as subsequently amended, authorized the fund to repurchase of up to 10% of its fund's outstanding common shares over the two-years ending October 5, 2007. The Trustees have subsequently renewed the program on an annual basis. The program renewed by the Board in September 2011, which remained in effect between October 8, 2011 and October 7, 2012, allowed the fund to repurchase up to 6,569,062 of its shares. The program renewed by the Board in September 2012, which will remain in effect between October 8, 2012 and October 7, 2013, allows the fund to repurchase up to 6,569,062 of its shares.

**Information prior to October 7, 2011 is based on the total number of shares eligible for repurchase under the program, as amended through September 2010. Information from October 8, 2011 forward is based on the total number of shares eligible for repurchase under the program, as amended through September 2011.

Item 10. Submission of Matters to a Vote of Security Holders:

Not applicable

Item 11. Controls and Procedures:

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

(b) Changes in internal control over financial reporting: Not applicable

Item 12. Exhibits:

(a)(1) The Code of Ethics of The Putnam Funds, which incorporates the Code of Ethics of Putnam Investments, is filed herewith.

(a)(2) Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

(b) The certifications required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Putnam Master Intermediate Income Trust

By (Signature and Title):

/s/Janet C. Smith

Janet C. Smith

Principal Accounting Officer

Date: November 28, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):

/s/Jonathan S. Horwitz

Jonathan S. Horwitz

Principal Executive Officer

Date: November 28, 2012

By (Signature and Title):

/s/Steven D. Krichmar

Steven D. Krichmar

Principal Financial Officer

Date: November 28, 2012