Investment objective & strategy
As of Feb. 24, 2026 · prospectusObjective. The fund seeks high current income consistent with what the Investment Manager (as defined below) believes to be prudent risk.
Strategy. The fund invests mainly in bonds that are securitized debt instruments (such as mortgage-backed investments) and related derivative instruments, and other obligations of companies and governments worldwide denominated in U.S. dollars or (to a lesser extent) foreign currencies, that are either investment-grade or below-investment-grade in quality (sometimes referred to as junk bonds) 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. The Investment Manager 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, … The fund invests mainly in bonds that are securitized debt instruments (such as mortgage-backed investments) and related derivative instruments, and other obligations of companies and governments worldwide denominated in U.S. dollars or (to a lesser extent) foreign currencies, that are either investment-grade or below-investment-grade in quality (sometimes referred to as junk bonds) 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. The Investment Manager 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, including 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.
Top holdings
As of Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Uniform Mortgage-Backed Security, TBA | FNMA | $109.52M | 10.76% |
| Putnam Short Term Investment Fund, Class P | — | $89.71M | 8.82% |
| Uniform Mortgage-Backed Security, TBA | FNMA | $51.12M | 5.03% |
| Uniform Mortgage-Backed Security, TBA | FNMA | $31.84M | 3.13% |
| TBA GNMA 30 YR 5.50000000 | GNR | $30.84M | 3.03% |
| Franklin Ultra Short Bond ETF | FLUD | $25.43M | 2.50% |
| Uniform Mortgage-Backed Security, TBA | FNMA | $18.43M | 1.81% |
| U.S. Treasury Bills | — | $12.99M | 1.28% |
| Government National Mortgage Association | GNR | $9.98M | 0.98% |
| Uniform Mortgage-Backed Security, TBA | FNMA | $9.32M | 0.92% |
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 Global Income Trust · PGGIX, PGLBX, PGBRX | 48% | 0.48% |
| Putnam VT Income Fund | 40% | 0.60% |
| Putnam Core Bond Fund | 40% | 0.39% |
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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