Investment objective & strategy
As of Feb. 24, 2026 · prospectusObjective. The fund seeks high current income.
Strategy. The fund invests mainly in bonds and securitized debt instruments (such as mortgage-backed investments) that are obligations of companies and governments worldwide; that are investment-grade in quality; and that have intermediate - to long-term maturities (three years or longer). The fund currently has significant investment exposure to residential and commercial mortgage-backed securities. Under normal circumstances, the fund invests at least 80% of its net assets in investment-grade securities. This policy may be changed only after 60 days notice to shareholders. The fund may also invest in bonds that are below investment-grade in quality (sometimes referred to as junk bonds). The Investment Manager, as defined below, may consider, among other factors, credit, interest rate and prepayment risks, as well as general … The fund invests mainly in bonds and securitized debt instruments (such as mortgage-backed investments) that are obligations of companies and governments worldwide; that are investment-grade in quality; and that have intermediate - to long-term maturities (three years or longer). The fund currently has significant investment exposure to residential and commercial mortgage-backed securities. Under normal circumstances, the fund invests at least 80% of its net assets in investment-grade securities. This policy may be changed only after 60 days notice to shareholders. The fund may also invest in bonds that are below investment-grade in quality (sometimes referred to as junk bonds). The Investment Manager, as defined below, may consider, among other factors, credit, interest rate and prepayment risks, as well as general market conditions, when deciding whether to buy or sell investments. The fund typically uses, to a significant extent, derivatives, including credit default swaps, interest rate swaps, total return swaps, to-be-announced (TBA) commitments, futures, options and swaptions on mortgage-backed securities and indices, and certain foreign currency transactions, for both hedging and non-hedging purposes, including to obtain or adjust exposure to mortgage-backed investments. The fund is non-diversified, which means it may invest a greater percentage of its assets in fewer issuers than a diversified fund. The fund expects to invest in a limited number of issuers.
Top holdings
As of Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Uniform Mortgage-Backed Security, TBA | FNMA | $34.48M | 15.75% |
| Putnam Short Term Investment Fund, Class P | — | $18.37M | 8.39% |
| JAPAN GOVT 20-YR | — | $5.60M | 2.56% |
| Franklin Ultra Short Bond ETF | FLUD | $5.45M | 2.49% |
| Uniform Mortgage-Backed Security, TBA | FNMA | $5.18M | 2.37% |
| Uniform Mortgage-Backed Security, TBA | FNMA | $4.24M | 1.94% |
| Uniform Mortgage-Backed Security, TBA | FNMA | $4.06M | 1.85% |
| JAPAN GOVT 10-YR | — | $3.84M | 1.75% |
| JAPAN GOVT 20-YR | — | $2.34M | 1.07% |
| Uniform Mortgage-Backed Security, TBA | FNMA | $2.05M | 0.94% |
Portfolio moves
Oct 31, 2025 → Jan 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Putnam Income Fund · PINCX, PNCBX, PUICX, PNCMX, PIFRX, PNCYX | 48% | 0.38% |
| Putnam Core Bond Fund | 35% | 0.39% |
| Putnam Premier Income Trust | 30% | — |
Advisers
| Firm | Role |
|---|---|
| Franklin Advisers, Inc. | Adviser |
| Franklin Templeton Investment Management Limited | Sub-adviser |
| Putnam Investment Management, LLC | Sub-adviser |
Footnotes
- Expense ratio as of February 24, 2026, from the fund's prospectus.
- Net assets and holdings count as of January 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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