High Income Securities Fund  (NYSE: PCF)

A closed-end fund seeking high current income and capital appreciation by investing primarily in corporate and convertible bonds and preferred stock.

Morningstar ratings as of 10/31/17
Convertibles-Clsd End (funds in category)
Overall
(9)
3 yrs.
(9)
5 yrs.
(9)
10 yrs.
(9)

Objective

Formerly Putnam High Income Bond Fund. The fund seeks to provide high current income as a primary objective and capital appreciation as a secondary objective. The fund pursues its objective by investing in both convertible bonds and convertible preferred stocks, which share many of the same characteristics as convertible bonds, but offer greater potential for capital appreciation.

Daily pricing as of 11/21/17

Ticker NYSE: PCF
Net asset value $9.82
Net asset value change 0.05
Market price $9.01
Market price change 0.04
Discount/Premium -8.24%
Dividend rate at net asset value 3.46%
Dividend rate at market price 3.77%

Fund facts as of 10/31/17

Inception date
07/09/87
Total net assets
$126.48M
Dividend frequency
Monthly
Number of holdings
596
Product status
Trades on secondary market
Common share CUSIP
746779107
Ticker
NYSE: PCF
Fiscal year-end
August
Category
Closed End
Turnover (fiscal year end)
50%
Number of common share accounts
560
Outstanding common shares
-
AMT
N/A

Management team


Portfolio Manager

Portfolio Manager


Literature

Fund documents

Annual Report (PDF)
Semiannual Report (PDF)
Analyst Report (PDF)

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Performance

  • Performance as of 09/30/17

  • Annual performance as of 09/30/17

Last month Last quarter Year to date 1 yr. 3 yrs. 5 yrs. 10 yrs.
Net asset value 1.45% 3.39% 9.67% 12.30% 5.60% 7.63% 6.22%
Market price 2.15% 2.60% 12.34% 16.19% 7.21% 6.35% 6.90%
Comparative index: High Income Securities Blended Index†
Net asset value 1.91% 3.65% 10.17% 13.68% 6.23% 8.51% 7.62%

* Data is historical. Past performance is not a guarantee of future results. More recent returns may be less or more than those shown. Investment return, net asset value, and market price will fluctuate and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes.

Performance snapshot

  Net asset value Market price
1 mt. 1.44% 1.10%
as of 10/31/17
YTD 12.04% -
as of 11/21/17

Lipper rankings as of 10/31/17

Convertible Securities Funds Percentile ranking Rank/Funds in category
1 yr. 65% 9/13
3 yrs. 42% 5/11
5 yrs. 67% 8/11
10 yrs. 25% 3/11

Morningstar ratings as of 10/31/17

Convertibles-Clsd End Rating Funds in category
Overall (9)
3 yrs. (9)
5 yrs. (9)
10 yrs. (9)

Distribution history (past 12 mts.)

Ex-distribution date Distribution amount
per common share
10/24/17 $00.0283
09/22/17 $00.0283
08/24/17 $00.0283
07/24/17 $00.0309
06/23/17 $00.0309
05/24/17 $00.0309
04/24/17 $00.0309
03/24/17 $00.0309
02/23/17 $00.0309
01/24/17 $00.0309
12/23/16 $00.0309
11/23/16 $00.0309

The dividend information above, which includes both regular and special distributions, does not address the accounting or tax characteristics of any distribution, and should not be used for tax reporting purposes. Distributions may include investment income, capital gains or returns of capital. For tax-exempt funds, some distributions may have been taxable.

* Data is historical. Past performance is not a guarantee of future results. More recent returns may be less or more than those shown. Investment return, net asset value, and market price will fluctuate and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes.

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Past performance is not indicative of future results.

The Morningstar RatingTM 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.

The up-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen. The ratio is calculated by dividing the manager’s returns by the returns of the index during the up-market, and multiplying that factor by 100. The down-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has dropped. The ratio is calculated by dividing the manager’s returns by the returns of the index during the down-market and multiplying that factor by 100.


Holdings

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Lower-rated bonds may offer higher yields in return for more risk. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. The value of bonds in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. You can lose money by investing in the fund. The fund's shares trade on a stock exchange at market prices, which may be lower than the fund's net asset value.

Credit qualities are shown as a percentage of the fund's net assets. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings and portfolio credit quality will vary over time. Net cash, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.

†The BofA Merrill Lynch All-Convertibles Speculative Quality Index is comprised of approximately 300 issues of only speculative-grade convertible bonds and preferreds. The JPMorgan Developed High Yield Index is an unmanaged index of high-yield fixed-income securities issued in developed countries. You cannot invest directly in an index.

Consider these risks before investing: Lower-rated bonds may offer higher yields in return for more risk. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. The value of bonds in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. You can lose money by investing in the fund. The fund's shares trade on a stock exchange at market prices, which may be lower than the fund's net asset value.

Credit qualities are shown as a percentage of the fund's net assets. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings and portfolio credit quality will vary over time. Net cash, if any, represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency.

Eric Harthun will retire from Putnam effective 12/31/17.