Floating Rate Income Fund (Class A)  (PFLRX)

An income fund that can benefit from higher interest rates


Track this fund

Highlights

Objective

The fund seeks high current income. Preservation of capital is a secondary goal.

Strategy and process

  • Floating-rate bank loans: The fund primarily invests in bank loans with yields that are set at a margin above short-term interest rates and adjust when rates change.
  • Guard against rising interest rates: Bank loans have historically performed well amid rising interest rates because their yields adjust higher and become more attractive.
  • Backed by team research: The fund's experienced managers select a diverse range of loans using careful credit research.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $8.60
0.00% | $0.00
$8.66
02/01/18
$8.58
08/30/17
Historical fund price

Consistency of positive performance over five years

Performance represents 5-year returns in rolling quarter-end periods since inception.

Performance shown does not reflect the effects of any sales charges. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please click on the performance tab.

12.52%

Best 5-year annualized return

(for period ending 12/31/13)


1.94%

Worst 5-year annualized return

(for period ending 09/30/11)


4.16%

Average 5-year annualized return


Fund facts as of 04/30/18

Total net assets
$774.13M
Turnover (fiscal year end)
60%
Dividend frequency (view rate)
Monthly
Number of issues
260
Fiscal year-end
February
CUSIP / Fund code
746763481 / 0057
Inception date
08/04/04
Category
Taxable Income
Open to new investors
Ticker
PFLRX

Management team

Co-Head of Fixed Income
Portfolio Manager
Portfolio Manager


Literature


Headwinds buffet emerging-market debt
Higher interest rates can challenge any fixed-income market, but rate increases in advanced economies can cause particular difficulty for emerging markets.
What may unlock consumer spending
While retail sales have been rather weak, key elements of consumer spending on services, including housing, are growing.
The outlook for high yield in the oilfield
Fundamental research offers a guide to the risk that low oil prices pose to energy companies with high yield debt.

Performance

  • Total return (%) as of 03/31/18

  • Annual performance as of 03/31/18

Annualized Total return (%) as of 03/31/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 4.00% 3.33% 3.08% 4.18%
After sales charge 2.96% 2.99% 2.87% 4.07%
S&P/LSTA Leveraged Loan Index 4.40% 4.19% 3.89% 5.62%

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Returns before sales charge do not reflect the current maximum sales charges as indicated below. Had the sales charge been reflected, returns would be lower. Returns at public offering price (after sales charge) for class A and class M shares reflect the current maximum initial sales charges of 5.75% and 3.50% for equity funds and Putnam Multi-Asset Absolute Return Fund, and 4.00% and 3.25% for income funds (1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund, Putnam Fixed Income Absolute Return Fund, and Putnam Short-Term Municipal Income Fund), respectively. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund, Putnam Fixed Income Absolute Return Fund, and Putnam Short-Term Municipal Income Fund, which is 1% in the first year, declining to 0.5% in the second year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, R, and Y shares prior to their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (with the exception of Putnam Tax-Free High Yield Fund and Putnam AMT-Free Municipal Fund, which are based on the historical performance of class B shares). Class R5/R6 shares, available to qualified employee-benefit plans only, are sold without an initial sales charge and have no CDSC. Class Y shares are generally only available for corporate and institutional clients and have no initial sales charge. Performance for Class R5/R6 shares before their inception are derived from the historical performance of class Y shares, which have not been adjusted for the lower expenses; had they, returns would have been higher. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses, without which returns would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 04/30/18 0.34 % -0.66 %
YTD as of 05/25/18 1.79 % 0.77 %

Yield

Distribution rate before sales charge
as of 05/25/18
4.12%
Distribution rate after sales charge
as of 05/25/18
4.07%
30-day SEC yield as of 04/30/18
(after sales charge)
4.12%

Risk-adjusted performance as of 04/30/18

Sharpe ratio (3 yrs.) 0.97
Information ratio (3 yrs.) -1.58

Volatility as of 04/30/18

Standard deviation (3 yrs.) 2.67%
Beta 0.99
R-squared 0.95

Lipper rankings as of 04/30/18

Loan Participation Funds Percentile ranking Rank/Funds in category
1 yr. 37% 84/232
3 yrs. 65% 133/204
5 yrs. 60% 97/163
10 yrs. 74% 60/81

Morningstar ratings as of 04/30/18

Bank Loan Rating Funds in category
Overall (207)
3 yrs. (207)
5 yrs. (167)
10 yrs. (81)

Distributions

Accrual days 32
Accrual start date 04/02/18
Accrual end date 04/30/18
Payable date 04/30/18
Income $0.029523508
Extra taxable income --
Dividend frequency Monthly

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.


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** FundVisualizer comparison based on Putnam fund versus the largest fund in its Morningstar category.


Holdings

Top 10 holdings as of 04/30/18

Vistra Energy 1.53%
Cequel Communications 1.25%
Alliant Holdings LP 1.04%
Avaya Inc 0.98%
Transdigm 0.97%
Rackspace Hosting 0.95%
Scientific Games 0.89%
DELL Technologies 0.87%
Brand Holdings 0.87%
iHeartCommunications 0.86%
Top 10 holdings, percent of portfolio 10.21%

Full portfolio holdings as of 03/31/18

RACKSPACE HOSTING INC L+300 04.7870 11/03/2023 0.95%
SCIENTIFIC GAMES TLB5 L+275 04.5390 08/14/2024 0.89%
BRAND ENERGY TL L+425 06.0026 06/21/2024 0.88%
DELL INTL TLB L+200 03.8800 09/07/2023 0.88%
TRANSDIGM INC TLE L+275 04.6269 05/14/2022 0.86%
SPRINT TLB L+250 04.4375 02/02/2024 0.84%
AVAYA TLB-EXIT L+475 06.5364 12/15/2024 0.82%
QUIKRETE TLB L+275 04.6269 11/15/2023 0.82%
PPDI TL L+275 04.4221 08/18/2022 0.81%
CINEWORLD TLB L+250 04.2999 02/22/2025 0.80%
HUSKY TLB L+300 05.2018 03/16/2025 0.80%
SINCLAIR BRDCAST TLB L+250 02.5000 12/11/2024 0.80%
NAVISTAR TLB L+350 04.7500 11/06/2024 0.78%
SOLERA TLB L+275 04.7563 03/03/2023 0.77%
CLEAR CHANNEL TLD L+675 09.0520 01/30/2019 0.75%
UNIVISION TLC5 L+275 04.6269 03/15/2024 0.74%
DIVERSEY TL L+300 03.0000 09/06/2024 0.73%
ENDO PHARMA TLB L+425 06.1875 04/27/2024 0.72%
AIR MEDICAL TLB L+325 05.2672 04/28/2022 0.69%
USI INC TLB L+300 05.3020 05/16/2024 0.69%
GATES GLOBAL TLB L+275 05.0520 03/31/2024 0.67%
CARAUSTAR TL L+550 07.8020 03/09/2022 0.66%
INFOR TLB6 L+275 03.7500 02/01/2022 0.66%
MEDALLION MID TLB L+325 05.1269 10/30/2024 0.66%
MULTIPLAN TLB L+275 05.0520 06/07/2023 0.66%
WASTE INDUSTRIES TLB L+300 04.8769 09/19/2024 0.66%
WERNER TLB L+400 05.2583 07/24/2024 0.66%
BEACON ROOFING TLB L+225 04.1275 01/02/2025 0.65%
CAESARS RESORT TL L+275 02.7500 12/22/2024 0.65%
GREEKTOWN TLB L+300 03.7500 04/25/2024 0.65%
TMS INTL TLB L+275 05.0356 08/14/2024 0.65%
CENTURYLINK TLB L+275 02.7500 01/31/2025 0.64%
CPG INTL TL L+375 05.0828 05/05/2024 0.64%
STERIGENICS TLB L+300 04.8769 05/15/2022 0.64%
YUM BRANDS TLB L+200 03.8082 06/16/2023 0.64%
BUILDERS FIRSTSOURCE L+300 05.3020 02/29/2024 0.63%
BWAY CORP TLB L+325 04.9580 04/03/2024 0.63%
CERIDIAN TLB2 L+350 05.3769 09/15/2020 0.63%
HUB INTL TLB L+300 04.8388 10/02/2020 0.63%
JO-ANN STORES TL L+500 06.5507 10/16/2023 0.63%
SFR GROUP SA TLB11 L+275 03.9062 07/18/2025 0.63%
ASSOC ASPHALT TLB L+525 07.1269 04/05/2024 0.62%
DIAMOND RESORTS TLB L+450 06.3769 09/02/2023 0.62%
KINETIC CONCEPTS TLB L+325 04.2846 02/03/2024 0.62%
ORTHO-CLINICAL TLB L+375 05.6269 06/30/2021 0.62%
REVLON CONS TLB L+350 05.3769 09/07/2023 0.62%
WIDEOPENWEST TLB L+325 05.1038 08/19/2023 0.62%
CHESAPEAKE ENERGY 1.5L L+750 08.5000 08/23/2021 0.61%
GOLDEN NUGGET INC TLB L+325 04.9792 10/04/2023 0.61%
VERTIV TLB L+400 05.8869 11/15/2023 0.61%
COMMUNITY HEALTH TLH L+300 04.9842 01/27/2021 0.59%
KRONOS TLB L+300 05.2225 11/01/2023 0.59%
FREEDOM MORTGAGE TLB L+475 07.0356 02/23/2022 0.58%
INDUS CONT SERV TLB L+350 05.3800 04/28/2024 0.58%
LPL HOLDINGS INC TLB L+225 03.6524 09/21/2024 0.58%
TEMPO ACQUISITION TLB L+300 04.8769 05/01/2024 0.57%
VISTRA TLB L+250 04.3769 08/04/2023 0.57%
CALPINE CONS FIN TL L+250 03.9770 01/15/2025 0.56%
CHUCK E CHEESE'S TLB L+325 05.1269 02/14/2021 0.56%
CHARTER COMM TLB L+200 02.0000 04/30/2025 0.55%
GFL ENVIRONMENT TLB L+275 03.7500 09/27/2023 0.54%
NRG ENERGY TLB L+175 03.9725 06/30/2023 0.54%
VICI PROPERTIES TL L+200 03.8538 12/15/2024 0.54%
ATOTECH TLB1 L+300 05.3020 01/31/2024 0.53%
BMC SOFTWARE TL L+325 05.1269 09/10/2022 0.53%
CITYCENTER TLB L+250 04.3769 04/18/2024 0.53%
DYNEGY TLC L+275 04.6038 02/07/2024 0.53%
EAGLECLAW MID TL L+425 06.0389 06/30/2024 0.53%
FORTERRA TL L+300 04.8769 10/25/2023 0.53%
WEIGHT WATCHERS TLB L+475 06.9836 11/29/2024 0.53%
YONKERS RACING CORP L+325 05.1300 05/31/2024 0.53%
AIR METHODS TLB L+350 04.7964 04/21/2024 0.52%
BJ'S WHOLESALE 1STL L+350 05.3906 02/03/2024 0.52%
CLUBCORP TLB L+325 04.5877 09/18/2024 0.52%
GRIFOLS TLB L+225 03.2879 01/31/2025 0.52%
PAREXEL TLB L+300 04.2350 09/27/2024 0.52%
RESTAURANT BRANDS TLB L+225 04.2927 02/17/2024 0.52%
STEINWAY MUSIC TLB L+375 05.5888 02/15/2025 0.52%
SUDDENLINK TLB L+225 04.1269 07/28/2025 0.52%
TRAVELPORT TLB L+250 04.5888 03/16/2025 0.52%
WORLD KITCHEN TLB L+400 05.7734 05/02/2024 0.52%
BASS PRO TLB L+500 06.8769 09/25/2024 0.51%
EXTENDED STAY TLB L+238 03.9297 08/30/2023 0.51%
FIRST DATA TL L+225 04.1215 04/26/2024 0.51%
JBS USA TLB L+250 04.6775 10/30/2022 0.51%
MEREDITH CORP TLB L+300 04.8769 01/31/2025 0.51%
CASELLA WASTE TLB L+250 04.3082 10/17/2023 0.50%
KMG CHEMICALS TLB L+275 04.6269 06/15/2024 0.50%
UNIVAR USA TLB L+250 04.3769 07/01/2024 0.50%
CSC HOLDINGS TLB L+225 04.0364 06/15/2025 0.49%
INTELSAT S.A. TLB3 L+375 05.7062 11/27/2023 0.49%
ADS WASTE TLB L+225 03.9938 11/10/2023 0.48%
SS&C TECH TLB3 L+250 04.5172 02/27/2025 0.48%
CCC INFO 1STL L+300 04.8800 03/30/2024 0.47%
AMERICAN TRAFFIC SOL TLB L+375 05.7063 03/01/2025 0.46%
ATLANTIC BROADBAND TLB L+238 04.2519 08/11/2024 0.46%
HD SUPPLY WATERWORKS TLB L+300 04.0000 08/01/2024 0.46%
LIONS GATE TLB L+225 04.4981 03/20/2025 0.46%
TTM TECHNOLOGIES TL L+250 04.4198 09/28/2024 0.46%
ACADEMY SPORTS TLB L+400 05.9267 07/02/2022 0.45%
GARDA WORLD TLB L+350 4.812870 05/26/2024 0.45%
PENN NATL TLB L+250 03.2500 01/19/2024 0.45%
ROBERTSHAW 1STL L+350 05.3725 02/15/2025 0.45%
SOLENIS 1STL L+325 05.2342 07/31/2021 0.45%
ZEKELMAN TLB L+275 04.9990 06/14/2021 0.45%
ALLIANT HOLD TL L+325 05.1269 08/14/2022 0.44%
CALIFORNIA RESOURC TL L+475 06.5721 11/17/2022 0.44%
GOLDMAN SACHS GROUP INC 03.5103 10/28/2027 0.41%
HCA INC 06.5000 02/15/2020 0.41%
JPMORGAN CHASE & CO 05.3000 12/29/2049 0.41%
REYNOLDS GROUP TL L+300 04.6269 02/05/2023 0.41%
BCP RENAISSANCE TLB L+400 05.7722 10/31/2024 0.40%
CBS RADIO TLB1 L+275 04.6225 11/17/2024 0.40%
CITIGROUP INC 03.4363 09/01/2023 0.40%
MITSUBISHI UFJ FIN GRP USD 03.1488 09/13/2021 0.40%
ADT/PRIME SECURITY TLB L+275 04.6269 05/02/2022 0.39%
BERRY PLATICS TLQ L+200 03.8200 10/01/2022 0.39%
CVS HEALTH CORP 02.7773 03/09/2021 0.39%
FILTRATION GROUP TLB L+300 05.3118 03/27/2025 0.39%
IRON MOUNTAIN TLB L+175 04.0356 03/22/2026 0.39%
SYNIVERSE TL 1L L+500 06.8200 02/09/2023 0.39%
TEREX CORP TL L+200 03.9563 01/31/2024 0.39%
VENATOR MATERIALS TLB L+300 04.2872 08/08/2024 0.39%
AMAYA GAMING TLB L+350 05.8020 08/01/2021 0.38%
FRONTIER COMMUNICAT L+375 05.6300 06/15/2024 0.38%
MGM GROWTH PROP TLB L+200 04.2225 03/16/2025 0.38%
AMERICAN TIRE DIST TL L+425 05.2500 09/01/2021 0.37%
COMMSCOPE TLB5 L+200 03.8769 12/29/2022 0.37%
JC PENNEY TLB L+425 06.2342 06/23/2023 0.37%
TRONOX FIN TLB L+300 04.3192 09/22/2024 0.37%
WELBILT TLB L+300 03.9811 03/03/2023 0.37%
BOYD GAMING TLB L+250 04.2450 09/15/2023 0.36%
NIELSEN FIN TLB4 L+200 03.7179 10/04/2023 0.36%
VALEANT PHARMA TLB1 L+350 04.94 04/01/2022 0.36%
JACK OHIO FIN LLC/FI P/P 144A 06.7500 11/15/2021 0.35%
TOWNSQUARE TLB L+300 04.8769 04/01/2022 0.34%
RIVERS PITTSBURGH LP P/P 144A 06.1250 08/15/2021 0.33%
THERMON TLB L+375 05.6369 10/30/2024 0.33%
UFC 1STL L+325 05.1300 08/18/2023 0.33%
VIRGIN MEDIA TLK L + 250 03.7449 01/15/2026 0.33%
CAPITAL AUTO 2NDL L+600 07.8800 03/24/2025 0.32%
REXNORD TLB L+225 04.1112 08/21/2024 0.32%
TRINSEO TLB L+250 03.7097 09/06/2024 0.32%
VISTRA TLB2 L+225 04.0278 12/14/2023 0.32%
ASURION TLB6 L+275 04.7342 11/03/2023 0.31%
HILTON WORLDWIDE TLB2 L+200 03.5749 10/25/2023 0.31%
NEW ARCLIN 1STL L+350 05.2778 02/14/2024 0.31%
TALBOTS INC 1STL L+450 06.3769 03/19/2020 0.31%
FORMULA ONE TLB L+250 04.2700 02/01/2024 0.30%
MORGAN STANLEY 03.1413 10/24/2023 0.28%
MURRAY ENERGY TLB2 L+725 09.5520 04/17/2020 0.28%
ARCELORMITTAL USD 05.7500 03/01/2021 0.27%
ASURION 2NDL 07.5734 08/04/2025 0.27%
BARCLAYS PLC USD 03.9205 08/10/2021 0.27%
INTELSAT JACKSON TLB4 L+450 06.4562 01/02/2024 0.27%
KINDER MORGAN INC 03.0002 01/15/2023 0.27%
ABC SUPPLY TLB L+250 04.3769 10/31/2023 0.26%
BANK OF AMERICA CORP 02.5570 02/05/2026 0.26%
CABLEVISION SYS CORP 08.0000 04/15/2020 0.26%
CONSOL CONTAINER TLB L+300 04.7890 05/22/2024 0.26%
DELEK US HOLD TLB L+250 04.7018 03/13/2025 0.26%
ELDORADO RESORTS TLB L+225 04.1269 04/17/2024 0.26%
ENERGY TRANSFER EQUITY L+200 03.8538 02/02/2024 0.26%
FLORA FOOD TLB L+300 05.0573 03/07/2025 0.26%
GLP CAP LP / FIN II 04.3750 11/01/2018 0.26%
HORSESHOE BALTIMORE TL L+400 05.2306 07/07/2024 0.26%
ISTAR INC 04.6250 09/15/2020 0.26%
KRAFT HEINZ FOODS CO 02.6305 08/10/2022 0.26%
LUCID ENERGY TLB L+300 04.7870 02/18/2025 0.26%
MISYS 1STL L+350 05.4842 06/16/2024 0.26%
MISYS 2NDL L+725 08.4588 06/13/2025 0.26%
PENSKE AUTOMOTIVE GROUP 03.7500 08/15/2020 0.26%
PLY GEM TLB L+375 06.0618 03/29/2025 0.26%
REYNOLDS GRP ISS/REY P/P 144A 05.2215 07/15/2021 0.26%
SOLENIS 2NDL L+675 08.7342 07/31/2022 0.26%
ZEP INC TLB L+400 05.7722 08/08/2024 0.26%
DISH DBS CORP 05.8750 07/15/2022 0.25%
KCA DEUTAG TL L+525 07.6539 05/16/2020 0.25%
NUMERICABLE TLB12 L+300 04.7202 01/31/2026 0.25%
ROBERTSHAW 2NDL L+800 09.8725 02/15/2026 0.25%
TRIBUNE MEDIA TLB L+300 04.8769 01/27/2024 0.25%
WPX ENERGY INC 07.5000 08/01/2020 0.25%
CAPITAL AUTO 1STL L+250 04.3800 03/24/2024 0.24%
NATIONSTAR MORT/CAP CORP 06.5000 08/01/2018 0.24%
FRAC TECH INTL TLB L+475 06.6269 04/16/2021 0.23%
GATEWAY CASINO TLB L+300 05.0714 03/13/2025 0.23%
GREAT LAKES D&D 08.0000 05/15/2022 0.23%
TALBOTS INC 2NDL L+850 10.3769 03/19/2021 0.23%
CCC INFO 2NDL L+675 08.6269 03/30/2025 0.21%
DCP MIDSTREAM P/P 144A 09.7500 03/15/2019 0.21%
NEIMAN MARCUS TL L+325 05.1406 10/25/2020 0.21%
PETSMART INC TLB L+300 04.2460 03/11/2022 0.21%
SM ENERGY CO 06.5000 11/15/2021 0.21%
COMMUNITY HEALTH TLG L+275 04.7342 12/31/2019 0.20%
KRONOS 2NDL L+825 10.0234 11/01/2024 0.20%
PLATFORM SPEC TLB6 L+300 04.8769 06/07/2023 0.20%
TEKNI-PLEX TL L+325 05.1269 10/05/2024 0.20%
TEVA PHARMACEUTICALS NE USD 01.7000 07/19/2019 0.20%
TMX FIN/TITLEMAX P/P 144A 08.5000 09/15/2018 0.19%
ISTAR INC TLB L+300 04.2339 10/01/2021 0.18%
PLATFORM SPEC TLB7 L+250 04.3769 06/07/2020 0.18%
J. CREW GROUP TL L+322 04.4895 03/05/2021 0.17%
OASIS PETROLEUM INC 06.5000 11/01/2021 0.17%
SS&C TECH TLB4 L+250 04.5172 02/27/2025 0.17%
SYNIVERSE TL 2L L+900 10.8200 02/09/2024 0.17%
AVAYA HOLDINGS CORP 0.16%
ICAHN ENTER/FIN 06.0000 08/01/2020 0.16%
TRONOX BLOCKED TLB L+300 05.3020 09/22/2024 0.16%
ALLNEX TLB2 L+325 05.2062 09/13/2023 0.15%
BOMBARDIER INC P/P 144A 08.7500 12/01/2021 0.15%
CALIFORNIA RESOURCES L+1038 12.2288 12/31/2021 0.15%
GCP APPLIED TECH P/P 144A 09.5000 02/01/2023 0.14%
ORYX TLB L+325 05.2672 02/26/2025 0.14%
AES CORP/THE 04.0000 03/15/2021 0.13%
AMER ENERGY MARC 1STL L+325 07.7500 08/04/2020 0.13%
AMERICAN TRAFFIC SOL 2NDL L+775 09.7063 03/01/2026 0.13%
ANTERO RESOURCES 05.3750 11/01/2021 0.13%
BERRY PLASTICS TLR L+200 03.8200 01/19/2024 0.13%
BIG RIVER STEEL TLB L+500 07.3020 08/23/2023 0.13%
BLOUNT INTL TLB L+425 05.4921 04/12/2023 0.13%
CIT GROUP INC 04.1250 03/09/2021 0.13%
CLEAR CHNL WORLD 07.6250 03/15/2020 0.13%
CNO FINANCIAL GROUP INC 04.5000 05/30/2020 0.13%
GETTY IMAGES TLB L+350 04.7500 10/18/2019 0.13%
HUNTSMAN INTERNATIONAL LLC 04.8750 11/15/2020 0.13%
MEG ENERGY TLB L+350 05.8100 12/31/2023 0.13%
PHOENIX SERVICES TL L+375 05.5223 01/29/2025 0.13%
PQ CORP TLB L+250 04.2907 02/08/2025 0.13%
RANGE RESOURCES CORP 05.7500 06/01/2021 0.13%
SABRE GLBL TLB L+200 03.9842 02/22/2024 0.13%
VALEANT PHARMA P/P 144A 06.5000 03/15/2022 0.13%
FIRST DATA TL L+225 04.1215 07/10/2022 0.12%
TRAVERSE TLB L+400 05.0000 09/27/2024 0.12%
ALLNEX TLB3 L+325 04.2500 09/13/2023 0.11%
AMERICAN AXLE & MFG INC 07.7500 11/15/2019 0.10%
INFOR SOFTWARE P/P 144A 07.1250 05/01/2021 0.10%
TRANSDIGM INC TLF L+275 04.7714 06/09/2023 0.10%
VISTRA TLC L+250 04.3769 08/04/2023 0.10%
NEW ARCLIN 2NDL L+875 11.0520 02/14/2025 0.09%
ZUFFA (UFC) 2NDL L+750 09.3769 08/18/2024 0.09%
AIR MEDICAL TLB L+425 06.0150 09/26/2024 0.07%
CHC GRP LLC/FIN P/P USD 00.0000 10/01/2020 0.07%
GFL ENVIRONMENTAL P/P 144A 09.8750 02/01/2021 0.07%
INDUS CONT SERV DD L+350 04.6148 04/28/2024 0.07%
LIVE NATION TLB3 L+175 04.0416 10/27/2023 0.07%
INFOR US INC 06.5000 05/15/2022 0.05%
CAESARS ENTERTAINMENT CORP 0.04%
TEKNI-PLEX TL L+202 05.5580 10/05/2024 0.04%
CHESAPEAKE ENERGY CORP 04.9702 04/15/2019 0.03%
NEWFIELD EXPLORATION CO 05.7500 01/30/2022 0.02%
TEKNI-PLEX DD L+325 05.5580 10/05/2024 0.02%
CHC GROUP LLC P/P 0.01%
TXU TCEH RIGHTS 0.01%
AVAYA INC ESCROW P/P 144A 07.0000 04/01/2019 0.00%
SIGNODE INDUSTRIAL TLB L+175 06.5000 05/01/2021 0.00%
TRIBUNE CLASS 1C LITIGAT 0.00%

Prior top 10 holdings

Top 10 holdings as of 04/30/18
Vistra Energy
Cequel Communications
Alliant Holdings LP
Avaya Inc
Transdigm
Rackspace Hosting
Scientific Games
DELL Technologies
Brand Holdings
iHeartCommunications
Holdings represent 10.21% of portfolio
Top 10 holdings as of 03/31/18
Cequel Communications
Vistra Energy
Avaya Inc
Transdigm
Rackspace Hosting
Scientific Games
iHeartCommunications
Brand Holdings
DELL Technologies
Sprint Communications
Holdings represent 9.54% of portfolio
Top 10 holdings as of 02/28/18
Cequel Communications
Vistra Energy
Transdigm
Avaya Inc
Rackspace Hosting
Scientific Games
Brand Holdings
DELL Technologies
iHeartCommunications
Syniverse Holdings Inc
Holdings represent 9.58% of portfolio
Top 10 holdings as of 01/31/18
Cequel Communications
Sinclair Broadcast Group
Transdigm
Avaya Inc
Vistra Energy
Scientific Games
Rackspace Hosting
Brand Holdings
Univision Communications Inc
DELL Technologies
Holdings represent 10.17% of portfolio

Fixed income statistics as of 04/30/18

Average effective maturity 5.32 yrs.
Average effective duration 0.18 yrs.
Average yield to maturity 5.93%
Average coupon 5.07%
Average price $100.38

Sector weightings as of 04/30/18

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
Bank loans 88.11% 3.99 0.00% 0.00 88.11% 3.99
High-yield corporate bonds 5.00% 0.09 0.00% 0.00 5.00% 0.09
Investment-grade corporate bonds 4.64% 0.16 0.00% 0.00 4.64% 0.16
Net cash 1.87% 0.00 0.00% 0.00 1.87% 0.00
Equity investments 0.32% 0.00 0.00% 0.00 0.32% 0.00
Convertible securities 0.06% 0.00 0.00% 0.00 0.06% 0.00

Spread duration is displayed in years and reflects the contribution by sector to the portfolio's total spread duration with the exception of the Treasury and Interest-rate swap sectors where effective duration is displayed. Spread duration estimates the price sensitivity of a specific sector or asset class to a 100 basis-point movement, 1%, (either widening or narrowing) in its yield spread relative to Treasuries. Effective duration provides a measure of a portfolio's interest-rate sensitivity. The longer a portfolio's duration, the more sensitive the portfolio is to shifts in the interest rates. Allocations may not total 100% of net assets because the table includes the notional value of derivatives (the economic value for purposes of calculating periodic payment obligations), in addition to the market value of securities.

Maturity detail as of 04/30/18

0 - 1 yr. 4.54%
1 - 5 yrs. 25.04%
5 - 10 yrs. 70.42%

Quality rating as of 04/30/18

A 2.01%
BBB 7.58%
BB 40.57%
B 44.37%
CCC and Below 3.12%
Not Rated 0.48%
Net cash 1.87%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over time for several 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 or industry. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. 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. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Floating rate loans may reduce, but not eliminate, interest-rate risk. These loans are typically secured by specific collateral or assets of the issuer. (Holders of the loan, such as the fund, have a priority claim on those assets in the event of the issuer's default or bankruptcy.) Value of collateral may be insufficient to meet the issuer's obligations, and the fund's access to collateral may be limited by bankruptcy or other insolvency laws. You can lose money by investing in the fund.

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.

Top Industry Sectors as of 04/30/18

Consumer cyclicals 22.17%
Basic materials 12.13%
Capital goods 11.11%
Technology 10.70%
Financials 9.36%
Consumer staples 8.03%
Health care 7.69%
Communication services 7.54%
Energy 6.11%
 
Other
5.16%
Utilities 3.28%
Net Cash 1.87%
Transportation 0.01%

Allocations may not total 100% of net assets because the table includes the notional value of certain derivatives (the economic value for purposes of calculating periodic payment obligations), in addition to the market value of securities.

Sectors will vary over time.

Country Allocation as of 04/30/18

United States 98.27%
United Kingdom 0.57%
Japan 0.40%
France 0.27%
Canada 0.22%
Netherlands 0.20%
Cayman Islands 0.07%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 1.03% 1.23% 1.78% 1.08% 1.28% 0.68% 0.78%
What you pay 1.03% 1.23% 1.78% 1.08% 1.28% 0.68% 0.78%

Sales charge/Dealer allowance

 Breakpoint Class A Class B Class C Class M Class R Class R6 Class Y
$0-$49,999 1.00% / 1.00% 0.00% / 1.00% 0.00% / 1.00% 0.75% / 0.75% -- -- --
$50,000-$99,999 1.00% / 1.00% 0.00% / 1.00% 0.00% / 1.00% 0.75% / 0.75% -- -- --
$100,000-$249,999 1.00% / 1.00% -- 0.00% / 1.00% 0.75% / 0.75% -- -- --
$250,000-$499,999 1.00% / 1.00% -- 0.00% / 1.00% 0.75% / 0.75% -- -- --
$500,000-$999,999 0.00% / 1.00% -- -- -- -- -- --
$1M-$4M 0.00% / 1.00% -- -- -- -- -- --
$4M-$50M 0.00% / 0.50% -- -- -- -- -- --
$50M+ 0.00% / 0.25% -- -- -- -- -- --

CDSC

  Class A (sales for $500,000+) Class B Class C Class M Class R Class R6 Class Y
0 to 9 mts. 1.00% 1.00% 1.00% -- -- -- --
9 to 12 mts. 1.00% 1.00% 1.00% -- -- -- --
2 yrs. 0.00% 0.50% 0.00% -- -- -- --
3 yrs. 0.00% -- 0.00% -- -- -- --
4 yrs. 0.00% -- 0.00% -- -- -- --
5 yrs. 0.00% -- 0.00% -- -- -- --
6 yrs. 0.00% -- 0.00% -- -- -- --
7+ yrs. 0.00% -- 0.00% -- -- -- --

Trail commissions

  Class A Class B Class C Class M Class R Class R6 Class Y
  0.25% 0.25% 1.00% 0.30% 0.50% 0.00% 0.00%
  NA NA NA NA NA NA NA
  NA NA NA NA NA NA NA

For sales and trail commission information on purchases over $500,000 and participant-directed qualified retirement plans, see a Putnam fund prospectus and the statement of additional information.

The S&P/LSTA Leveraged Loan Index is an unmanaged index of U.S. leveraged loans. The Barclays U.S. High Yield Loan Index is an unmanaged index that provides broad and comprehensive total return metrics of the universe of U.S. dollar denominated, syndicated term loans.You cannot invest directly in an index.

Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over time for several 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 or industry. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. 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. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Floating rate loans may reduce, but not eliminate, interest-rate risk. These loans are typically secured by specific collateral or assets of the issuer. (Holders of the loan, such as the fund, have a priority claim on those assets in the event of the issuer's default or bankruptcy.) Value of collateral may be insufficient to meet the issuer's obligations, and the fund's access to collateral may be limited by bankruptcy or other insolvency laws. You can lose money by investing in the fund.

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.