Investment objective & strategy
As of April 28, 2025 · prospectusObjective. The fund seeks high current income consistent with what the Investment Manager (as defined below) believes to be prudent risk.
Strategy. Investments We invest 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. We 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. We typically use to a significant extent derivatives, including credit default swaps, interest rate swaps, total return swaps, … Investments We invest 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. We 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. We typically use 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 March 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Putnam Short Term Investment Fund, Class P | — | $8.21M | 6.25% |
| FNCL 2 4/26 | — | $6.45M | 4.91% |
| FNCL 2.5 4/26 | — | $5.89M | 4.48% |
| FNCL 4.5 4/26 | — | $4.83M | 3.68% |
| GNMA II, Single-family, 30 Year | — | $3.29M | 2.50% |
| G2SF 5 4/26 | — | $2.97M | 2.26% |
| U.S. Treasury Bills | — | $1.09M | 0.83% |
| FNCL 6 4/26 | — | $1.02M | 0.78% |
| FNCL 5 4/26 | — | $986.36K | 0.75% |
| GNMA II, Single-family, 30 Year | — | $962.44K | 0.73% |
Portfolio moves
Dec 31, 2025 → Mar 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 | 40% | 0.38% |
| Putnam Global Income Trust · PGGIX, PGLBX, PGBRX | 28% | 0.48% |
| Putnam Morgtage Securities Fund · PGSIX, PGSBX, PGVCX, PGVRX, PUSYX | 24% | 0.51% |
Advisers
| Firm | Role |
|---|---|
| Franklin Advisers, Inc. | Adviser |
| Franklin Templeton Investment Management Limited | Sub-adviser |
| Putnam Investment Management, LLC | Sub-adviser |
Footnotes
- Net assets and holdings count as of March 31, 2026, from the fund's N-PORT filing.
Machine-readable: JSON · Markdown. Programmatic access via the agent surface.