Putnam Master Intermediate Income Trust Semiannual report 3 | 31 | 21 Income funds invest in bonds and other securities with the goal of providing a steady stream of income over time. FUND SYMBOL PIM Putnam Master Intermediate Income Trust Semiannual report 3 | 31 | 21 Message from the Trustees 1 About the fund 2 Interview with your fund’s portfolio manager 5 Your fund’s performance 11 Consider these risks before investing 13 Terms and definitions 14 Other information for shareholders 16 Summary of dividend reinvestment plans 17 Financial statements 19 Shareholder meeting results 120 Message from the Trustees May 14, 2021 Dear Fellow Shareholder: As society continues to grapple with the Covid-19 pandemic, optimism remains tempered by concern about newer, more aggressive strains of the virus. After infection rates dropped early in the year, they began to rise again in some areas during March. At the same time, the pace of vaccinations accelerated, and several states eased restrictions on consumer activity. Markets appear to expect an improving economy. The S&P 500 Index crossed the 4,000 threshold as the calendar turned to April. In addition, yields rose in the bond market. This is typically a sign that fixed-income investors anticipate both higher gross domestic product (GDP) growth and the risk of inflation. No matter how markets move, Putnam’s portfolio managers and analysts keep their focus on researching new opportunities and potential risks. This active approach is intended to serve you through changing conditions. As always, thank you for investing with Putnam. Respectfully yours, Robert L. Reynolds Kenneth R. Leibler President and Chief Executive Officer Chair, Board of Trustees Putnam Investments About the fund A multi-sector approach to fixed income 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. In the more than 30 years since then, the fixed-income landscape has undergone a dramatic transformation, but the spirit of ingenuity that helped launch the fund is still with it today. A veteran portfolio management team The fund’s managers strive to build a well-diversified portfolio that carefully balances risk and return, targeting opportunities in interest rates, credit, mortgages, and currencies from across the full spectrum of the global bond markets. D. William Kohli Michael V. Salm Paul D. Scanlon, CFA Michael J. Atkin Co-Chief Investment Co-Chief Investment Co-Head of Corporate Head of Macro and Officer, Fixed Income Officer, Fixed Income and Tax-exempt Credit Sovereign Credit Industry since 1988 Industry since 1989 Industry since 1986 Industry since 1988 At Putnam since 1994 At Putnam since 1997 At Putnam since 1999 At Putnam since 1997 (Photo not available.) Brett S. Kozlowski, CFA Albert Chan, CFA Robert L. Davis, CFA Co-Head of Head of Portfolio Portfolio Manager Structured Credit Construction Industry since 1999 Industry since 1997 Industry since 2002 At Putnam since 1999 At Putnam since 2008 At Putnam since 2002 2 Master Intermediate Income Trust Diversified holdings across a wide range of security types and market sectors INVESTMENT ALLOCATIONS BY SECURITY TYPE Securitized 109.2% Credit 33.5% Government 12.8% Equity 0.1% Cash and net other assets 7.2% 0% INVESTMENT ALLOCATIONS BY SECTOR 0% Agency pass-through 46.2% 0% Commercial MBS 25.4% 0% Agency collateralized mortgage obligations 23.1% 0% High-yield corporate bonds 16.9% 0% Emerging-market bonds 15.6% 0.00 13.7527.50 41.2555.00 68.7582.50 96.25110.00 Non-agency residential MBS 13.6% Convertible securities 7.9% Bank loans 3.4% Investment-grade corporate bonds 2.6% Asset-backed securities 0.9% Equity investments 0.1% Cash and net other assets 7.2% Fund allocations are shown as a percentage of the fund’s net assets as of 3/31/21. Cash and net other assets, if any, represent the market value weights of cash, derivatives, short-term securities, and other unclassified assets in the portfolio. Summary information may differ from the portfolio schedule included in the financial statements due to the inclusion of derivative securities, any interest accruals, the use of different classifications of securities for presentation purposes and rounding. Allocations may not total 100% because the table includes the notional value of certain derivatives (the economic value for purposes of calculating periodic payment obligations), in addition to the market value of securities. Holdings and allocations may vary over time. For more information on current fund holdings, see pages 20–99. Master Intermediate Income Trust 3 Performance history as of 3/31/21 Annualized total return (%) comparison The fund — at NAV Fund’s benchmark* Fund’s Lipper Putnam Master Intermediate ICE BofA U.S. Treasury peer group average† Income Trust (NYSE ticker: PIM) Bill Index Closed-end General Bond Funds 28.39 16.69 8.95 9.75 7.02 7.85 7.47 5.99 5.81 6.30 3.54 3.14 1.21 1.55 0.66 0.12 0.06 LIFE OF FUND 10 YEARS 5 YEARS 3 YEARS 1 YEAR 6 MONTHS‡ (since 4/29/88) Data are historical. Past performance does not guarantee future results. More recent returns may be less or more than those shown. Investment return and net asset value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart are at NAV. See below and pages 11–12 for additional performance information, including fund returns at market price. Index and Lipper results should be compared with fund performance at NAV. * The fund’s benchmark, the ICE BofA U.S. Treasury Bill Index, was introduced on 6/30/92, which post-dates the inception of the fund. † Source: Lipper, a Refinitiv company. ‡ Returns for the six-month period are not annualized, but cumulative. Recent broad market index and fund performance U.S. stocks 19.07% (S&P 500 Index) Putnam Master Intermediate Income Trust 7.47% (at NAV) Fund’s benchmark 0.06% (ICE BofA U.S. Treasury Bill Index) U.S. bonds –2.73% (Bloomberg Barclays U.S. Aggregate Bond Index)* This comparison shows your fund’s performance in the context of broad market indexes for the six months ended 3/31/21. See above and pages 11–12 for additional fund performance information. Index descriptions can be found on pages 14–15. * Source: Bloomberg Index Services Limited. 4 Master Intermediate Income Trust Interview with your fund’s portfolio manager Interview with your fund’s portfolio manager Performance history as of 3/31/21 Bill Kohli discusses the investment environment and strategies driving fund performance for the Annualized total return (%) comparison The fund — at NAV Fund’s benchmark* Fund’s Lipper six months ended March 31, 2021, as well as his Putnam Master Intermediate ICE BofA U.S. Treasury peer group average† Income Trust (NYSE ticker: PIM) Bill Index Closed-end General Bond Funds outlook for the fund. 28.39 16.69 8.95 9.75 7.02 7.85 7.47 5.99 5.81 6.30 3.54 3.14 1.21 1.55 0.66 0.12 0.06 LIFE OF FUND 10 YEARS 5 YEARS 3 YEARS 1 YEAR 6 MONTHS‡ Bill, what was the fund’s investment (since 4/29/88) environment like during the Data are historical. Past performance does not guarantee future results. More recent returns may be less or more than reporting period? those shown. Investment return and net asset value will fluctuate, and you may have a gain or a loss when you sell your As 2020 came to a close, news of multiple shares. Performance assumes reinvestment of distributions and does not account for taxes. Fund returns in the bar chart Covid-19 vaccines fueled hopes of returning to are at NAV. See below and pages 11–12 for additional performance information, including fund returns at market price. more normalcy in the economy, markets, and Index and Lipper results should be compared with fund performance at NAV. D. William Kohli * The fund’s benchmark, the ICE BofA U.S. Treasury Bill Index, was introduced on 6/30/92, which post-dates the inception Portfolio Manager society. In the early months of the new year, of the fund. widespread vaccine distribution bolstered Bill Kohli is Co-Chief Investment Officer, † Source: Lipper, a Refinitiv company. investor optimism about the strength of the Fixed Income. He has an M.B.A. from the economic recovery in 2021. A $1.9 trillion aid ‡ Returns for the six-month period are not annualized, but cumulative. Haas School of Business at the University of California, Berkeley, and a B.A. from the package signed into law by President Biden University of California, San Diego. Bill in early March provided a further boost to Recent broad market index and fund performance joined Putnam in 1994 and has been in the market sentiment. investment industry since 1988. Against this backdrop, rising prices for stocks U.S. stocks Michael J. Atkin; Albert Chan, CFA; 19.07% and commodities helped lift the overall (S&P 500 Index) Robert L. Davis, CFA; Brett S. Kozlowski, CFA; Michael V. Salm; and Paul D. Scanlon, CFA, market environment. Credit performed Putnam Master Intermediate Income Trust are also Portfolio Managers of the fund. 7.47% well with yield spreads tightening across (at NAV) the quality spectrum. [Spreads are the yield Fund’s benchmark advantage credit-sensitive bonds offer over 0.06% (ICE BofA U.S. Treasury Bill Index) comparable-maturity U.S.