Putnam Income Fund (PNCYX): Winner of the 2019 Lipper Fund Award for superior 10-year performance - Press release (PDF)
Multi-sector income
Income strategies that invest outside the aggregate index
As you move outside of the benchmark ... you get away from interest-rate risk and into other types of risk that we think are more attractive.
— Bill Kohli, CIO, Fixed Income
Morningstar Overall Rating™
out of 539 Intermediate Core-Plus Bond funds as of 7/31/19
0.88 Correlation to the index
The outcome of this outside-the-index approach is a fund with positive but lower historical correlation to the index.
Portfolio managers
Co-Head of Fixed Income
Portfolio Manager
Portfolio Manager
Morningstar Overall Rating™
out of 269 Nontraditional Bond funds as of 7/31/19
-0.21 Correlation to the index
The outcome of this outside-the-index approach is a fund with a negative historical correlation to the index.
Portfolio managers
CIO, Fixed Income
Portfolio Manager
Portfolio Manager
Portfolio Manager
Co-Head of Fixed Income
Co-Head of Fixed Income
Two flexible income strategies that invest outside the index
We view interest-rate risk as only one source of potential returns, and it isn’t always the most attractive. That’s why we use a risk- based approach focused on four key areas in pursuit of alpha generation: rates, credit, prepayment, and liquidity.
Product brochure (PDF)
Bonds rally as the Fed signals possible rate cut
The global economy has cooled in 2019 as the fallout from the ongoing trade rifts, waning business confidence, and financial market volatility have kept the lid on expansion.
| Q3 2019Read more about the advantages of our active approach
Comparing Putnam's taxable income funds
Putnam Income Fund: Quarterly commentary
Putnam Diversified Income Trust: Quarterly commentary
Sales idea: Income opportunities beyond indexes
Two flexible income strategies that invest outside the index
Duration measures the sensitivity of bond prices to interest-rate changes. A negative duration indicates that a security or fund may be poised to increase in value when interest rates increase. For correlation, numbers less than 1 indicate a diminishing correlation. The maximum correlation is 1 and the minimum is 0, with values between 0 and -1 indicating negative correlation.
The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.