Investment objective & strategy
As of Jan. 27, 2026 · prospectusObjective. The fund seeks as high a level of current income as the Investment Manager (as defined below) believes is consistent with preservation of capital.
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, including bank loans that are either investment-grade or below-investment-grade in quality (sometimes referred to as junk bonds) and 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, 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 derivatives to a significant extent, including credit default swaps, interest rate swaps, total return swaps, to-be-announced (TBA) commitments, … 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, including bank loans that are either investment-grade or below-investment-grade in quality (sometimes referred to as junk bonds) and 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, 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 derivatives to a significant extent, 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 and credit default, total return and interest rate swap contracts for both hedging and non-hedging purposes, including to obtain or adjust exposure to mortgage-backed securities.
Top holdings
As of March 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Putnam Short Term Investment Fund, Class P | — | $110.40M | 12.00% |
| FNCL 4.5 4/26 | — | $45.37M | 4.93% |
| G2SF 5.5 4/25 | — | $32.21M | 3.50% |
| FNCL 6 4/26 | — | $17.33M | 1.88% |
| Franklin Ultra Short Bond ETF | FLUD | $17.30M | 1.88% |
| FNCL 5 4/26 | — | $12.82M | 1.39% |
| FNMA Connecticut Avenue Securities Trust, Series 2016-C03, Class 1B | CAS | $7.68M | 0.84% |
| FNCL 2.5 4/26 | — | $7.57M | 0.82% |
| FNCL 6.5 4/26 | — | $7.24M | 0.79% |
| FNCL 3.5 4/26 | — | $6.42M | 0.70% |
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 VT Diversified Income Fund | 71% | 0.81% |
| Putnam Master Intermediate Income Trust | 68% | — |
| Putnam Premier Income Trust | 48% | — |
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.
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