Floating Rate Income Fund  (PFRYX)

An income fund that can benefit from higher interest rates


Track this fund

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 $8.63
0.00% | $0.00
$8.66
01/31/18
$8.59
09/14/17
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.

12.82%

Best 5-year annualized return

(for period ending 12/31/13)


2.19%

Worst 5-year annualized return

(for period ending 09/30/09)


4.45%

Average 5-year annualized return


Fund facts as of 01/31/18

Total net assets
$773.06M
Turnover (fiscal year end)
49%
Dividend frequency (view rate)
Monthly
Number of issues
254
Fiscal year-end
February
CUSIP / Fund code
746763226 / 1857
Inception date
10/04/05
Category
Taxable Income
Open to new investors
Ticker
PFRYX

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 12/31/17

  • Annual performance as of 12/31/17

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 3.54% 3.77% 3.54% 3.78%
After sales charge N/A N/A N/A N/A
S&P/LSTA Leveraged Loan Index 4.11% 4.43% 4.02% 4.85%

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. To obtain the most recent month-end performance, visit putnam.com. 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 Absolute Return 500 Fund and 700 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 and 300 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 and 300 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, T1, 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. Class A, M, and T1 shares of Putnam money market funds have no initial sales charge. 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 01/31/18 1.04 % -
YTD as of 02/16/18 0.93 % -

Yield

Distribution rate before sales charge
as of 02/16/18
4.09%
Distribution rate after sales charge
as of 02/16/18
4.09%
30-day SEC yield as of 01/31/18 3.88%

Risk-adjusted performance as of 01/31/18

Sharpe ratio (3 yrs.) 1.32
Information ratio (3 yrs.) -0.93

Volatility as of 01/31/18

Standard deviation (3 yrs.) 2.79%
Beta 1.00
R-squared 0.95

Lipper rankings as of 01/31/18

Loan Participation Funds Percentile ranking Rank/Funds in category
1 yr. 33% 75/228
3 yrs. 50% 102/204
5 yrs. 44% 71/162
10 yrs. 52% 40/77

Morningstar ratings as of 01/31/18

Bank Loan Rating Funds in category
Overall (206)
3 yrs. (206)
5 yrs. (165)
10 yrs. (77)

Distributions

Accrual days 33
Accrual start date 01/01/18
Accrual end date 01/31/18
Payable date 01/31/18
Income $0.029392493
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 01/31/18

Cequel Communications 1.33%
Sinclair Broadcast Group 1.06%
Transdigm 1.04%
Avaya Inc 1.04%
Vistra Energy 1.00%
Scientific Games 1.00%
Rackspace Hosting 0.96%
Brand Holdings 0.94%
Univision Communications Inc 0.92%
DELL Technologies 0.88%
Top 10 holdings, percent of portfolio 10.17%

Full portfolio holdings as of 12/31/17

BRAND ENERGY TL L+425 05.6150 06/21/2024 0.92%
RACKSPACE HOSTING INC L+300 04.3848 11/03/2023 0.92%
TRANSDIGM TLE L+280 04.2264 05/14/2022 0.91%
UNIVISION TLC5 L+275 04.3190 03/15/2024 0.90%
DELL INTL TLB L+200 03.5700 09/07/2023 0.85%
NAVISTAR TLB L+350 04.7500 11/06/2024 0.83%
SPRINT TLB L+250 04.1250 02/02/2024 0.82%
QUIKRETE TLB L+275 04.3190 11/15/2023 0.80%
PPDI TL L+275 04.3849 08/18/2022 0.79%
CAESARS RESORT TL L+275 02.7500 12/22/2024 0.77%
SINCLAIR BRDCAST TLB L+250 02.5000 12/11/2024 0.77%
SOLERA HOLDINGS TLB L+325 04.8178 03/03/2023 0.76%
ORTHO-CLINICAL TLB L+375 05.4434 06/30/2021 0.74%
CHESAPEAKE ENERGY 1.5L L+750 08.5000 08/23/2021 0.73%
AVAYA TLB-EXIT L+475 06.2270 11/09/2024 0.72%
SCIENTIFIC GAMES TLB4 L+325 04.7035 08/14/2024 0.72%
ENDO PHARMA TLB L+425 05.8750 04/27/2024 0.71%
CLEAR CHANNEL TLD L+675 08.4434 01/30/2019 0.69%
USI INC TLB L+300 04.6934 05/16/2024 0.68%
MEG ENERGY TLB L+350 05.2000 12/31/2023 0.67%
MULTIPLAN TLB L+300 04.6934 06/07/2023 0.67%
GATES GLOBAL TLB L+300 04.6934 03/31/2024 0.65%
INFOR TLB6 L+275 03.7500 02/01/2022 0.65%
BEACON ROOFING TLB L+225 03.8178 01/02/2025 0.64%
CARAUSTAR TL L+550 07.1934 03/09/2022 0.64%
WASTE INDUSTRIES TLB L+300 04.5690 09/19/2024 0.64%
CPG INTL TL L+375 05.0828 05/05/2024 0.63%
GREEKTOWN TLB L+300 03.7500 04/25/2024 0.63%
MEDALLION MID TLB L+325 04.8190 10/30/2024 0.63%
RESTAURANT BRANDS TLB L+225 03.8675 02/17/2024 0.63%
TMS INTL TLB L+300 04.3091 08/14/2024 0.63%
YUM BRANDS TLB L+200 03.4908 06/16/2023 0.63%
ALLIANT HOLD TL L+325 04.8021 08/14/2022 0.62%
CERIDIAN TLB2 L+350 05.0521 09/15/2020 0.62%
STERIGENICS TLB L+300 04.5690 05/15/2022 0.62%
WIDEOPENWEST TLB L+325 04.7511 08/19/2023 0.62%
AKORN INC TLB L+425 05.8750 04/16/2021 0.61%
BUILDERS FIRSTSOURCE L+300 04.6934 02/29/2024 0.61%
BWAY CORP TLB L+325 04.9580 04/03/2024 0.61%
CENTURYLINK TLB L+275 02.7500 01/31/2025 0.61%
DIAMOND RESORTS TLB L+450 06.0690 09/02/2023 0.61%
HUB INTL TLB L+300 04.4129 10/02/2020 0.61%
JO-ANN STORES TL L+500 06.5507 10/21/2023 0.61%
AIR MEDICAL TLB L+350 04.9434 04/28/2022 0.60%
GOLDEN NUGGET INC TLB L+325 04.7703 10/04/2023 0.60%
KINETIC CONCEPTS TLB L+325 04.2846 02/03/2024 0.60%
SFR GROUP SA TLB11 L+275 03.9062 07/18/2025 0.60%
VERTIV TLB L+400 05.5678 11/15/2023 0.59%
KRONOS TLB L+350 04.9026 11/01/2023 0.58%
ASSOC ASPHALT TLB L+525 06.8190 04/05/2024 0.57%
COMMUNITY HEALTH TLH L+300 04.4788 01/27/2021 0.57%
FREEDOM MORTGAGE TLB L+550 06.9564 02/23/2022 0.57%
INDUS CONT SERV TLB L+350 04.8819 04/28/2024 0.57%
LPL HOLDINGS INC TLB L+225 03.6524 09/21/2024 0.57%
REVLON CONS TLB L+350 05.0690 09/07/2023 0.57%
STEINWAY MUSIC 1STL L+375 04.7500 09/19/2019 0.57%
WERNER TLB L+400 05.2583 07/24/2024 0.57%
TRAVELPORT TLB L+275 04.1659 09/02/2021 0.56%
UNIVAR USA TLB L+250 04.0690 07/01/2024 0.56%
CHUCK E CHEESE'S TLB L+325 04.8190 02/14/2021 0.55%
CSC HOLDINGS TLB L+225 03.7408 06/15/2025 0.55%
TEMPO ACQUISITION TLB L+300 04.5690 05/01/2024 0.55%
VICI PROPERTIES TL L+225 03.7849 12/15/2024 0.55%
VISTRA TLB L+250 04.0680 08/04/2023 0.55%
CALPINE CONS FIN TL L+250 03.9770 01/15/2025 0.54%
COVERIS TL L+425 05.5828 06/26/2022 0.54%
CHARTER COMM TLB L+200 02.0000 04/30/2025 0.53%
GFL ENVIRONMENT TLB L+275 03.7500 09/27/2023 0.53%
NRG ENERGY TLB L+225 03.0283 06/30/2023 0.53%
CITYCENTER TLB L+250 04.0690 04/18/2024 0.52%
DYNEGY TLC L+275 04.2511 02/07/2024 0.52%
EXTENDED STAY TLB L+225 03.8190 08/30/2023 0.52%
FORTERRA TL L+300 04.5690 10/25/2023 0.52%
YONKERS RACING CORP L+325 04.8200 05/31/2024 0.52%
ATLANTIC BROADBAND TLB L+238 03.9368 08/11/2024 0.51%
ATOTECH TLB1 L+300 04.6934 01/31/2024 0.51%
BMC SOFTWARE TL L+325 04.8190 09/10/2022 0.51%
DIVERSEY TL L+300 03.0000 09/06/2024 0.51%
EAGLECLAW MID TL L+425 05.7288 06/08/2024 0.51%
PAREXEL TLB L+300 04.2350 09/27/2024 0.51%
VIRGIN MEDIA TLK L + 250 03.7449 01/15/2026 0.51%
WEIGHT WATCHERS TLB L+475 06.4253 11/29/2024 0.51%
WORLD KITCHEN TLB L+400 05.3768 05/02/2024 0.51%
AIR METHODS TLB L+350 04.7964 04/21/2024 0.50%
BASS PRO TLB L+500 06.5690 09/25/2024 0.50%
BJ'S WHOLESALE 1STL L+350 04.9530 02/03/2024 0.50%
CLUBCORP TLB L+325 04.5877 09/18/2024 0.50%
FIRST DATA TL L+225 03.8021 04/26/2024 0.50%
GRIFOLS TLB L+225 03.2879 01/31/2025 0.50%
NEIMAN MARCUS TL L+325 04.8050 10/25/2020 0.50%
SUDDENLINK TLB L+225 03.8190 07/28/2025 0.50%
CASELLA WASTE TLB L+250 03.9908 10/17/2023 0.49%
CCC INFO 1STL L+300 04.5700 03/30/2024 0.49%
JBS USA TLB L+250 04.1004 10/30/2022 0.49%
PENN NATL TLB L+250 03.2500 01/19/2024 0.48%
ADS WASTE TLB L+225 03.5135 11/10/2023 0.47%
INTELSAT S.A. TLB3 L+375 05.2123 11/27/2023 0.47%
HD SUPPLY WATERWORKS TLB L+300 04.0000 08/01/2024 0.45%
KMG CHEMICALS TLB L+275 04.3190 06/15/2024 0.45%
GARDA WORLD TLB L+350 4.812870 05/26/2024 0.44%
SOLENIS 1STL L+325 04.7288 07/31/2021 0.44%
ZEKELMAN TLB L+275 04.4080 06/14/2021 0.44%
ACADEMY SPORTS TLB L+400 05.5463 07/02/2022 0.43%
CALIFORNIA RESOURC TL L+475 06.2408 11/17/2022 0.43%
HILTON WORLDWIDE TLB2 L+200 03.4152 10/25/2023 0.43%
REYNOLDS GRP ISS/REY P/P 144A 04.8592 07/15/2021 0.42%
HCA INC 06.5000 02/15/2020 0.41%
GOLDMAN SACHS GROUP INC 03.1280 10/28/2027 0.40%
JPMORGAN CHASE & CO 05.3000 12/29/2049 0.40%
REYNOLDS GROUP TL L+300 04.3190 02/05/2023 0.40%
BCP RENAISSANCE TLB L+400 05.3801 10/31/2024 0.39%
CITIGROUP INC 02.9106 09/01/2023 0.39%
ENTERCOM/CBS RADIO TLB L+275 04.1719 11/13/2024 0.39%
VENATOR MATERIALS TLB L+300 04.2872 08/08/2024 0.39%
ADT/PRIME SECURITY TLB L+275 04.3190 05/02/2022 0.38%
BERRY PLASTICS TLM L+225 01.3119 10/01/2022 0.38%
GATEWAY CASINO TLB1 L+375 04.7500 02/22/2023 0.38%
MITSUBISHI UFJ FIN GRP USD 02.6235 09/13/2021 0.38%
NIELSEN FIN TLB4 L+200 03.5525 10/04/2023 0.38%
TEREX TLB L+225 03.9434 01/31/2024 0.38%
AMAYA GAMING TLB L+350 05.1934 08/01/2021 0.37%
BEACON ROOFING TLB L+275 04.0000 10/01/2022 0.37%
MGM GROWTH PROP TLB L+225 03.4850 04/25/2023 0.37%
VALEANT PHARMA TLB1 L+350 04.7635 04/01/2022 0.37%
AMERICAN TIRE DIST TL L+425 05.2500 09/01/2021 0.36%
COMMSCOPE TLB5 L+200 03.3827 12/29/2022 0.36%
TRONOX FIN TLB L+300 04.3192 09/22/2024 0.36%
BOYD GAMING TLB L+250 03.9683 09/15/2023 0.35%
DOOSAN BOBCAT TLB L+250 04.1934 05/12/2024 0.35%
TOWNSQUARE TLB L+300 04.4228 04/01/2022 0.35%
JACK OHIO FIN LLC/FI P/P 144A 06.7500 11/15/2021 0.34%
JC PENNEY TLB L+425 05.7288 06/23/2023 0.34%
RIVERS PITTSBURGH LP P/P 144A 06.1250 08/15/2021 0.33%
UFC 1STL L+325 04.8100 08/18/2023 0.33%
AVAYA HOLDINGS CORP 0.32%
CABLE ONE TLB L+225 03.9500 05/01/2024 0.32%
REXNORD TLB L+225 03.8021 08/21/2024 0.32%
THERMON TLB L+375 05.3750 10/30/2024 0.32%
VISTRA TLB2 L+275 04.2591 12/14/2023 0.32%
ASURION TLB5 L+300 04.5690 11/03/2023 0.31%
CAPITAL AUTO 2NDL L+600 07.5700 03/24/2025 0.31%
TRINSEO TLB L+250 03.7097 09/06/2024 0.31%
PETSMART INC TLB L+300 04.2460 03/11/2022 0.30%
SYNIVERSE HLDG TL L+300 04.5690 04/23/2019 0.30%
TALBOTS INC 1STL L+450 06.0690 03/19/2020 0.30%
ISTAR INC TLB L+300 04.2339 10/01/2021 0.29%
ARCELORMITTAL USD 06.0000 03/01/2021 0.28%
CAPITAL AUTO 1STL L+250 04.0700 03/24/2024 0.28%
MURRAY ENERGY TLB2 L+725 08.9434 04/17/2020 0.28%
ASURION 2NDL L+600 07.3000 08/04/2025 0.27%
BARCLAYS PLC USD 03.5198 08/10/2021 0.27%
FORD MOTOR CREDIT CO LLC 02.3214 11/04/2019 0.27%
ROBERTSHAW 1STL L+450 05.7500 08/10/2024 0.27%
ALLERGAN FUNDING SCS USD 02.8038 03/12/2020 0.26%
ALLY FINANCIAL INC 04.7500 09/10/2018 0.26%
DISH DBS CORP 05.8750 07/15/2022 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%
INTELSAT JACKSON TLB4 L+450 05.5000 01/14/2024 0.26%
ISTAR INC 04.6250 09/15/2020 0.26%
KINDER MORGAN INC 02.6392 01/15/2023 0.26%
MISYS 2NDL L+725 08.4588 06/13/2025 0.26%
NEW ARCLIN 1STL L+425 05.9434 02/14/2024 0.26%
PENSKE AUTOMOTIVE GROUP 03.7500 08/15/2020 0.26%
SCIENTIFIC GAMES INT P/P 144A 07.0000 01/01/2022 0.26%
SINCLAIR BROADCASTING TLB2 L+225 03.2473 01/31/2024 0.26%
SOLENIS 2NDL L+675 08.2288 07/31/2022 0.26%
WELLS FARGO & COMPANY 02.8274 03/04/2021 0.26%
ZEP INC TLB L+400 05.3801 08/08/2024 0.26%
ABC SUPPLY TLB L+250 04.0690 10/31/2023 0.25%
CABLEVISION SYS CORP 08.0000 04/15/2020 0.25%
CONSOL CONTAINER TLB L+350 05.0690 05/22/2024 0.25%
ELDORADO RESORTS TLB L+225 03.7841 04/17/2024 0.25%
KRAFT HEINZ FOODS CO 02.2298 08/10/2022 0.25%
MISYS 1STL L+350 04.9788 06/16/2024 0.25%
NUMERICABLE TLB12 L+300 04.3491 01/31/2026 0.25%
RITE AID 2NDL L+387.5 04.8750 06/07/2021 0.25%
TRIBUNE MEDIA TLB L+300 04.5690 01/27/2024 0.25%
HD SUPPLY TLB3 L+225 03.9434 08/13/2021 0.24%
LIONS GATE TLB L+225 03.8190 12/08/2023 0.24%
RITE AID 2NDL L+475 06.2400 08/21/2020 0.24%
NATIONSTAR MORT/CAP CORP 06.5000 08/01/2018 0.23%
TALBOTS INC 2NDL L+850 10.0690 03/19/2021 0.23%
WELBILT TLB L+300 03.9811 03/03/2023 0.23%
GETTY IMAGES TLB L+350 04.7500 10/18/2019 0.22%
GREAT LAKES D&D 08.0000 05/15/2022 0.22%
CCC INFO 2NDL L+675 08.3190 03/30/2025 0.21%
DCP MIDSTREAM P/P 144A 09.7500 03/15/2019 0.21%
SM ENERGY CO 06.5000 11/15/2021 0.21%
COMMUNITY HEALTH TLG L+275 04.2288 12/31/2019 0.20%
KRONOS 2NDL L+825 09.6268 11/01/2024 0.20%
PLATFORM SPEC TLB6 L+300 04.5690 06/07/2023 0.20%
TEVA PHARMACEUTICALS NE USD 01.7000 07/19/2019 0.20%
FORMULA ONE TLB L+300 04.5690 02/01/2024 0.19%
TEKNI-PLEX TL L+325 04.6728 10/05/2024 0.19%
PLATFORM SPEC TLB7 L+250 04.0690 06/07/2020 0.18%
TMX FIN/TITLEMAX P/P 144A 08.5000 09/15/2018 0.18%
AMER ENERGY MARC 1STL L+425 05.7095 08/04/2020 0.16%
FRAC TECH INTL TLB L+475 06.3190 04/16/2021 0.16%
ICAHN ENTER/FIN 06.0000 08/01/2020 0.16%
OASIS PETROLEUM INC 06.5000 11/01/2021 0.16%
TRONOX BLOCKED TLB L+300 04.6934 09/22/2024 0.16%
WPX ENERGY INC 07.5000 08/01/2020 0.16%
ASURION TLB4 L+275 04.3190 08/04/2022 0.15%
GCP APPLIED TECH P/P 144A 09.5000 02/01/2023 0.15%
INFOR SOFTWARE P/P 144A 07.1250 05/01/2021 0.15%
ALLNEX TLB2 L+325 04.7121 09/13/2023 0.14%
BOMBARDIER INC P/P 144A 08.7500 12/01/2021 0.14%
CALIFORNIA RESOURCES L+1038 11.8761 12/31/2021 0.14%
VANTAGE DRILLING INT-UNIT 0.14%
BERRY PLASTICS TLN L+225 03.5619 01/19/2024 0.13%
BIG RIVER STEEL TLB L+500 06.6934 08/23/2023 0.13%
BLOUNT INTL TLB L+425 05.4921 04/12/2023 0.13%
CALATLANTIC GROUP INC 08.3750 05/15/2018 0.13%
CLEAR CHNL WORLD 07.6250 03/15/2020 0.13%
CNO FINANCIAL GROUP INC 04.5000 05/30/2020 0.13%
HD SUPPLY TLB4 L+250 04.1934 10/17/2023 0.13%
HUNTSMAN INTERNATIONAL LLC 04.8750 11/15/2020 0.13%
J. CREW GROUP TL L+322 04.4895 03/05/2021 0.13%
NEW ARCLIN 2NDL L+875 10.4434 02/14/2025 0.13%
OXBOW CARBON 2NDL L+700 08.0000 01/19/2020 0.13%
PLASTIPAK TLB L+275 03.9900 10/12/2024 0.13%
RANGE RESOURCES CORP 05.7500 06/01/2021 0.13%
VALEANT PHARMA P/P 144A 06.5000 03/15/2022 0.13%
WELBILT TLB L+275 03.9850 03/03/2023 0.13%
FIRST DATA TL L+225 03.8021 07/10/2022 0.12%
KCA DEUTAG TL L+525 07.1959 05/16/2020 0.12%
TRAVERSE TLB L+400 05.0000 09/27/2024 0.12%
ALLNEX TLB3 L+325 04.2500 09/13/2023 0.11%
FTS INTL INC P/P 144A 09.0885 06/15/2020 0.11%
AMERICAN AXLE & MFG INC 07.7500 11/15/2019 0.10%
BROOKFIELD RESID P/P 144A 06.5000 12/15/2020 0.10%
TI AUTO TLB L+275 03.9839 06/30/2022 0.10%
VISTRA TLC L+250 04.0642 08/04/2023 0.10%
BRIGGS & STRATTON CORPORATION 06.8750 12/15/2020 0.09%
ZUFFA (UFC) 2NDL L+750 09.0521 08/18/2024 0.09%
ROBERTSHAW 2NDL L+900 10.5000 02/04/2025 0.08%
CHC GRP LLC/FIN P/P USD 00.0000 10/01/2020 0.07%
CIT GROUP INC P/P 144A 05.5000 02/15/2019 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%
AIR MEDICAL GROUP TLB1 L+400 05.6746 04/28/2022 0.06%
AIR MEDICAL TLB L+425 05.2500 09/26/2024 0.06%
DEL MONTE 2NDL L+725 09.0641 08/18/2021 0.06%
KMG CHEMICALS TLB L+275 04.3190 06/15/2024 0.06%
WERNER TLB L+400 05.0000 07/24/2024 0.06%
CAESARS ENTERTAINMENT CORP 0.04%
TRIBUNE CLASS 1C LITIGAT 0.02%
CHC GROUP LLC P/P 0.01%
TXU TCEH RIGHTS 0.01%
VICI PROP 1 / VICI FC 08.0000 10/15/2023 0.01%
AVAYA INC ESCROW P/P 144A 07.0000 04/01/2019 0.00%
SIGNODE INDUSTRIAL TLB L+275 04.3784 05/01/2021 0.00%

Prior top 10 holdings

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
Top 10 holdings as of 12/31/17
Cequel Communications
Avaya Inc
Sinclair Broadcast Group
Beacon Roofing Supply
Scientific Games
Vistra Energy
Rackspace Hosting
Brand Holdings
Transdigm
Univision Communications Inc
Holdings represent 9.99% of portfolio
Top 10 holdings as of 11/30/17
Avaya Inc
Cequel Communications
Scientific Games
Transdigm
Univision Communications Inc
Brand Holdings
Beacon Roofing Supply
Sprint Communications
Rackspace Hosting
Bway Holding
Holdings represent 10.51% of portfolio
Top 10 holdings as of 10/31/17
Cequel Communications
Scientific Games
Transdigm
Univision Communications Inc
Brand Holdings
Beacon Roofing Supply
Ortho-Clinical Diagnostics
Sprint Communications
Chesapeake Energy
Vistra Energy
Holdings represent 9.78% of portfolio

Fixed income statistics as of 01/31/18

Average effective maturity 5.20 yrs.
Average effective duration 0.30 yrs.
Average yield to maturity 4.87%
Average coupon 4.83%
Average price $100.84

Sector weightings as of 01/31/18

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
Bank loans 88.01% 4.18 0.00% 0.00 88.01% 4.18
High-yield corporate bonds 6.02% 0.11 0.00% 0.00 6.02% 0.11
Investment-grade corporate bonds 4.32% 0.16 0.00% 0.00 4.32% 0.16
Net cash 1.34% 0.00 0.00% 0.00 1.34% 0.00
Equity investments 0.23% 0.00 0.00% 0.00 0.23% 0.00
Convertible securities 0.08% 0.00 0.00% 0.00 0.08% 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 01/31/18

0 - 1 yr. 4.28%
1 - 5 yrs. 28.96%
5 - 10 yrs. 66.76%

Quality rating as of 01/31/18

A 1.74%
BBB 8.28%
BB 42.98%
B 42.12%
CCC and Below 3.24%
Not Rated 0.30%
Net cash 1.34%

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 01/31/18

Consumer cyclicals 23.53%
Basic materials 13.17%
Capital goods 10.32%
Health care 9.36%
Technology 8.92%
Financials 8.90%
Communication services 8.01%
Consumer staples 7.38%
Energy 5.89%
 
Other
4.52%
Utilities 3.17%
Net Cash 1.34%
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 01/31/18

United States 98.05%
Japan 0.40%
Luxembourg 0.39%
Canada 0.32%
France 0.28%
United Kingdom 0.27%
Netherlands 0.20%
Cayman Islands 0.09%

Expenses

Expense ratio

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

Sales charge/Dealer allowance

 Breakpoint Class A Class B Class C Class M Class R 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 Y
0 to 9 mts. 1.00% 1.00% 1.00% -- -- --
9 to 12 mts. 0.00% 1.00% 1.00% -- -- --
2 yrs. -- 0.50% 0.00% -- -- --
3 yrs. -- -- 0.00% -- -- --
4 yrs. -- -- 0.00% -- -- --
5 yrs. -- -- 0.00% -- -- --
6 yrs. -- -- 0.00% -- -- --
7+ yrs. -- -- 0.00% -- -- --

Trail commissions

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