Always Diligent. Always Active.

Floating Rate Income Fund (Class Y)  (PFRYX)

An income fund that can benefit from higher interest rates

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 $8.51
0.00% | $0.00
$8.63
04/23/18
$8.17
12/27/18
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)


4.28%

Average 5-year annualized return


Fund facts as of 03/31/19

Total net assets
$540.75M
Turnover (fiscal year end)
57%
Dividend frequency (view rate)
Monthly
Number of issues
207
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


Manager commentary | Q4 2018

Leveraged loan market growing

Paul Scanlon, Co-Head of Fixed Income, talks about trends in the leveraged loan and high-yield markets.


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.

Performance

  • Total return (%) as of 03/31/19

  • Annual performance as of 03/31/19

Annualized Total return (%) as of 03/31/19

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 2.19% 4.61% 2.94% 6.80%
After sales charge N/A N/A N/A N/A
S&P/LSTA Leveraged Loan Index 2.96%5.65%3.61%7.98%

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, 4.00% and 3.25% for income funds and 2.25% and 0.75% for Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return 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, which is 3% in the first year, declining to 1% in the fourth 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, N, 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). Returns at public offering price (after sales charge) for class N shares reflect the current maximum initial sales charge of 1.50%. 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 and M shares of Putnam money market funds have no initial sales charge. For a portion of the periods, some funds had expense 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 03/31/19 -0.30% -
YTD as of 04/18/19 5.62% -

Yield

Distribution rate before sales charge
as of 04/18/19
4.89%
Distribution rate after sales charge
as of 04/18/19
4.89%
30-day SEC yield as of 03/31/19 4.87%

Risk-adjusted performance as of 03/31/19

Sharpe ratio (3 yrs.) 1.25
Information ratio (3 yrs.) -2.04

Volatility as of 03/31/19

Standard deviation (3 yrs.) 2.79%
Beta 0.98
R-squared 0.97

Lipper rankings as of 03/31/19

Time period Rank/Funds in category Percentile ranking
1 yr. 125/237 53%
3 yrs. 120/212 57%
5 yrs. 89/193 46%
10 yrs. 31/81 38%
Lipper category: Loan Participation Funds

Morningstar Ratings as of 03/31/19

Time period Funds in category Morningstar Rating
Overall 215
3 yrs. 215
5 yrs. 196
10 yrs. 81
Morningstar category: Bank Loan

Distributions

Accrual days 31
Accrual start date 03/01/19
Accrual end date 03/31/19
Payable date 03/29/19
Income $0.034644484
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 03/31/19

Cequel Communications 1.20%
Asurion 1.18%
Travelport Worldwide 1.18%
Charter Communications 1.16%
Centurylink 1.15%
Refinitiv 1.13%
Kronos Inc 1.10%
Intelsat 1.06%
California Resources 1.02%
Altice Numericable 1.02%
Top 10 holdings, percent of portfolio 11.20%

Full portfolio holdings as of 12/31/18

REFINITIV TLB L+375 06.2724 10/01/2025 0.96%
SCIENTIFIC GAMES TLB5 L+275 05.2502 08/14/2024 0.96%
DELL INTL TLB L+200 04.5300 09/07/2023 0.89%
QUIKRETE TLB L+275 05.2724 11/15/2023 0.84%
CENTURYLINK TLB L+275 02.7500 01/31/2025 0.83%
AVAYA TLB L+425 06.7010 12/15/2024 0.82%
USI INC TLB L+300 05.8030 05/16/2024 0.82%
AIR MEDICAL TLB L+325 05.6824 04/28/2022 0.80%
CINEWORLD TLB L+250 04.2999 02/28/2025 0.80%
VERTIV TLB L+400 06.7066 11/15/2023 0.80%
PPD TL L+250 05.0224 08/18/2022 0.79%
INFOR TLB6 L+275 03.7500 02/01/2022 0.78%
MESSER INDUST TLB L+250 04.8981 10/01/2025 0.78%
BWAY CORP TLB L+325 05.6581 04/03/2024 0.77%
CAESARS RESORT TL L+275 02.7500 12/22/2024 0.77%
CLEAR CHANNEL TLD L+675 09.2724 01/30/2019 0.77%
GFL ENVIRONMENTAL TLB L+300 05.5224 05/31/2025 0.76%
BRAND ENERGY TL L+425 06.7324 06/21/2024 0.75%
MEDALLION MID TLB L+325 05.7724 10/30/2024 0.75%
SOLERA TLB L+275 05.2724 03/03/2023 0.75%
DIVERSEY TL L+300 03.0000 09/06/2024 0.74%
TMS INTL TLB L+275 05.2750 08/14/2024 0.74%
WIDEOPENWEST TLB L+325 05.7196 08/19/2023 0.74%
TEMPO ACQUISITION TLB L+300 05.5224 05/01/2024 0.73%
GOLDEN NUGGET TL L+275 05.2367 10/04/2023 0.72%
ALLIANT HOLD TLB L+275 05.2051 05/10/2025 0.71%
FREEDOM MORTGAGE TLB L+475 06.0000 02/23/2022 0.70%
KRONOS TLB L+300 05.2225 11/01/2023 0.70%
CHUCK E CHEESE'S TLB L+325 05.7724 02/14/2021 0.69%
HUSKY TLB L+300 05.5224 03/28/2025 0.69%
UNIVISION TLC5 L+275 05.2724 03/15/2024 0.69%
SPRINT TLB L+250 05.0625 02/03/2024 0.68%
STERIGENICS TLB L+300 05.5224 05/15/2022 0.68%
VISTRA ENERGY TLB1 L+200 04.5224 08/04/2023 0.68%
MULTIPLAN TLB L+275 05.5530 06/07/2023 0.67%
ORTHO-CLINICAL TLB L+325 06/01/2025 0.67%
PLY GEM TLB L+375 06.1752 04/12/2025 0.67%
ZEKELMAN TLB L+225 04.8620 06/14/2021 0.67%
BJ'S WHOLESALE TLB L+300 05.4324 02/03/2024 0.66%
CALPINE CONS FIN TL L+250 03.9770 01/15/2025 0.66%
CHARTER COMM TLB L+200 02.0000 04/30/2025 0.66%
SS&C TECH TLB3 L+225 04.5946 04/16/2025 0.66%
CPG INTL TL L+375 05.0828 05/05/2024 0.65%
VALEANT PHARMA TLB L+300 05.3789 06/01/2025 0.65%
STARS GROUP TLB L+350 06.3030 07/10/2025 0.64%
VICI PROPERTIES TL L+200 04.5038 12/22/2024 0.64%
AMERICAN TRAFFIC SOL TLB L+375 05.7063 03/01/2025 0.63%
COMMUNITY HEALTH TLH L+325 05.9566 01/27/2021 0.63%
GRAY TV TLC L+250 02.5000 11/02/2025 0.63%
INSPIRE BRANDS TLB L+325 5.759250 02/05/2025 0.63%
PLANTRONICS TLB L+250 04.8178 07/02/2025 0.63%
RACKSPACE HOSTING INC L+300 05.5815 11/03/2023 0.63%
WEIGHT WATCHERS TLB L+475 07.1500 11/29/2024 0.62%
YUM BRANDS TLB L+175 04.2196 04/03/2025 0.62%
AKZONOBEL TLB L+325 05.5992 09/20/2025 0.61%
ATOTECH TLB1 L+300 05.8030 01/31/2024 0.61%
CLUBCORP TLB L+275 05.5530 09/18/2024 0.61%
ENVISION HEALTHCARE TL L+375 10/11/2025 0.61%
FIRST DATA TL L+200 04.5038 04/26/2024 0.61%
GRIFOLS TLB L+225 03.2879 01/31/2025 0.61%
MGM GROWTH PROP TLB L+200 04.2225 03/25/2025 0.61%
WERNER TLB L+400 05.2583 07/24/2024 0.61%
EAGLECLAW MID TL L+425 06.8690 06/30/2024 0.60%
FOREST CITY TLB L+400 06.5204 12/07/2025 0.60%
INTELSAT S.A. TLB3 L+375 06.2562 11/27/2023 0.60%
TRANSDIGM INC TLE 05.0224 05/30/2025 0.60%
BEACON ROOFING TLB L+225 04.6824 01/02/2025 0.59%
KINETIC CONCEPTS TLB L+325 04.2846 02/03/2024 0.59%
SFR GROUP SA TLB11 L+275 03.9062 07/18/2025 0.59%
CALIFORNIA RESOURC TL L+475 07.0365 11/17/2022 0.58%
HUB INTL TLB L+275 05.3616 04/25/2025 0.58%
LPL HOLDINGS INC TLB L+225 03.6524 09/21/2024 0.58%
NAVISTAR TLB L+350 04.7500 11/06/2024 0.58%
PAREXEL TLB L+300 04.2350 09/27/2024 0.58%
CSC HOLDINGS TLB L+225 04.7051 06/15/2025 0.57%
DIAMOND RESORTS TLB L+375 06.2724 09/02/2023 0.57%
ORYX TLB L+325 05.7724 02/28/2025 0.57%
ADS WASTE TLB L+225 04.4745 11/10/2023 0.55%
HD SUPPLY WATERWORKS TLB L+300 04.0000 08/01/2024 0.55%
ATLANTIC BROADBAND TLB L+238 04.8974 08/02/2024 0.54%
LIONS GATE TLB L+225 04.7724 03/24/2025 0.54%
TRANSDIGM INC TLF L+250 05.0224 06/09/2023 0.53%
FORTERRA TL L+300 05.5224 10/25/2023 0.52%
AIR METHODS TLB L+350 04.7964 04/21/2024 0.51%
BMC TLB L+425 07.0530 06/28/2025 0.51%
ROBERTSHAW 1STL L+350 05.3725 02/15/2025 0.51%
MICROCHIP TECH TLB L+200 04.5300 05/29/2025 0.50%
TALBOTS TLB L+700 09.5056 11/28/2022 0.50%
JPMORGAN CHASE & CO 05.3000 12/29/2049 0.49%
REYNOLDS GROUP TL L+300 05.2724 02/05/2023 0.49%
BCP RENAISSANCE PARENT L+350 05.8424 10/31/2024 0.48%
ROCKET SOFTWARE TLB L+425 06.7452 11/20/2025 0.48%
TRAVELPORT TLB L+250 05.1161 03/16/2025 0.48%
FILTRATION GROUP TLB L+300 05.3118 03/29/2025 0.47%
GATES GLOBAL TLB L+275 05.2724 03/31/2024 0.47%
GOLDMAN SACHS GROUP INC 04.2593 10/28/2027 0.47%
SOLENIS 1STL L+400 06.7066 12/26/2023 0.47%
TTM TECH INC TL L+250 04.8492 09/28/2024 0.47%
WESTERN DIGITAL TLB L+175 04.0925 04/29/2023 0.47%
YONKERS RACING CORP L+225 07.7500 05/31/2024 0.47%
ABC SUPPLY TLB L+200 04.5224 10/31/2023 0.46%
ADT/PRIME SECURITY TLB L+275 05.2724 05/02/2022 0.46%
ALTRA INDUSTIAL TLB L+200 04.5224 10/01/2025 0.46%
BASS PRO TLB L+500 07.5224 09/25/2024 0.46%
BUILDERS FIRSTSOURCE L+300 05.8030 02/29/2024 0.46%
IRON MOUNTAIN TLB L+175 04.2724 01/02/2026 0.46%
LIFEPOINT TLB L+450 07.1290 11/16/2025 0.46%
NOVOLEX TL L+325 05.5992 06/22/2025 0.46%
FRONTIER COMMUNICAT L+375 06.2800 06/15/2024 0.45%
JO-ANN STORES TL L+500 07.4772 10/16/2023 0.44%
MEREDITH TLB L+275 05.2724 01/31/2025 0.44%
BOYD GAMING TLB L+225 04.4661 09/15/2023 0.43%
CARAUSTAR TL L+550 08.3030 03/14/2022 0.42%
JACK OHIO FIN LLC/FI P/P 144A 06.7500 11/15/2021 0.42%
SYNIVERSE TL 1L L+500 07.4551 03/09/2023 0.42%
TOWNSQUARE TLB L+300 05.5224 04/01/2022 0.42%
CERIDIAN TLB L+325 05.7724 04/30/2025 0.41%
WELBILT TLB L+250 04.9496 10/23/2025 0.40%
JC PENNEY TLB L+425 06.9560 06/23/2023 0.39%
REXNORD TLB L+200 04.5224 08/21/2024 0.39%
VIRGIN MEDIA TLK L + 250 03.7449 01/15/2026 0.39%
VISTRA TLB2 L+225 04.7724 12/14/2023 0.39%
ASURION 2NDL L+600 07.5734 08/04/2025 0.37%
ASURION TLB6 L+300 05.5224 11/03/2023 0.37%
CAPITAL AUTO 2NDL L+600 08.5224 03/24/2025 0.37%
KEANE GROUP TLB L+375 06.3125 05/25/2025 0.37%
PQ CORP TLB L+250 05.0266 02/08/2025 0.37%
TRIDENT TPI HLDG INC L+325 05.7724 10/05/2024 0.37%
EXTENDED STAY TLB L+200 04.5224 08/30/2023 0.36%
FORMULA ONE TLB L+250 05.0224 02/01/2024 0.36%
TEVA PHARMACEUTICALS NE USD 02.2000 07/21/2021 0.35%
THERMON TLB L+375 06.0494 10/30/2024 0.35%
CCC INFO 1STL L+300 05.5300 04/27/2024 0.34%
MURRAY ENERGY TLB2 L+725 09.4922 04/17/2020 0.34%
BARCLAYS PLC USD 04.7281 08/10/2021 0.33%
CHARTER COMM OPT LLC/CAP 04.1910 02/01/2024 0.32%
EQUITRANS TLB L+450 04.5000 12/13/2023 0.32%
HORSESHOE BALTIMORE TL L+400 05.2306 07/07/2024 0.32%
INTELSAT JACKSON TLB4 L+450 07.0062 01/02/2024 0.32%
JO-ANN STORES 2NDL L+925 11.6038 05/21/2024 0.32%
MODA MIDSTREAM TLB L+325 05.7724 09/28/2025 0.32%
PENSKE AUTOMOTIVE GROUP 03.7500 08/15/2020 0.32%
RESIDEO TLB L+200 04.4096 10/25/2025 0.32%
ALBERTSON'S TLB7 L+300 05.5224 11/16/2025 0.31%
ALTICE USA TLB L+225 04.7454 01/15/2026 0.31%
DELEK US HOLD TLB L+250 04.7018 03/30/2025 0.31%
ELDORADO RESORTS TLB L+219 04.6591 04/17/2024 0.31%
FLORA FOOD TLB L+300 05.0573 07/02/2025 0.31%
LOTUS MIDSTREAM TLB L+325 06.0530 09/30/2025 0.31%
MISYS 2NDL L+725 08.4588 06/13/2025 0.31%
RESTAURANT BRANDS TLB L+225 04.7724 02/17/2024 0.31%
ROYAL BK SCOTLND GRP PLC USD 04.3716 06/25/2024 0.31%
STEINWAY MUSIC TLB L+375 06.2051 02/15/2025 0.31%
TRIBUNE MEDIA TLB L+300 05.5224 01/27/2024 0.31%
CBS RADIO TLB1 L+275 05.0365 11/17/2024 0.30%
HILTON WORLDWIDE TLB L+217 03.7099 10/25/2023 0.30%
NUMERICABLE TLB12 L+369 06.1426 01/31/2026 0.30%
ROBERTSHAW 2NDL L+800 09.8725 02/15/2026 0.29%
ZEP INC TLB L+400 06.8030 08/08/2024 0.29%
CAPITAL AUTO 1STL L+250 05.0300 03/24/2024 0.28%
ENERGY TRANSFER EQUITY L+200 04.5224 02/02/2024 0.28%
GATEWAY CASINO TLB L+300 05.8030 03/13/2025 0.28%
GREAT LAKES D&D 08.0000 05/15/2022 0.28%
APERGY TLB L+250 05.0625 05/09/2025 0.27%
ASURION TLB7 L+300 05.5224 11/03/2024 0.27%
CALIFORNIA RESOURCES L+1038 12.8974 12/31/2021 0.27%
BRIGGS & STRATTON CORPORATION 06.8750 12/15/2020 0.26%
CCC INFO 2NDL L+675 09.0946 04/27/2025 0.26%
PETSMART INC TLB L+300 04.2460 03/11/2022 0.26%
ACADEMY SPORTS TLB L+400 06.3492 07/02/2022 0.25%
NEIMAN MARCUS TL L+325 05.6295 10/25/2020 0.25%
SS&C TECH TLB4 L+225 04.5946 04/16/2025 0.25%
COMMSCOPE TLB5 L+200 04.5224 12/29/2022 0.24%
KRONOS 2NDL L+825 09.2500 11/01/2024 0.24%
NEWFIELD EXPLORATION CO 05.7500 01/30/2022 0.24%
WHITING PETROLEUM CORP 05.7500 03/15/2021 0.24%
WPX ENERGY INC 06.0000 01/15/2022 0.24%
REVLON CONS TLB L+350 06.2066 09/07/2023 0.23%
CREDIT SUISSE GRP AG P/P 144A 04.0159 06/12/2024 0.22%
J. CREW GROUP TL L+322 05.9753 03/05/2021 0.22%
TRAVERSE TLB L+400 05.0000 09/27/2024 0.22%
TRONOX FIN TLB L+300 04.3192 09/22/2024 0.22%
BAUSCH HLTH COS INC P/P 144A 06.5000 03/15/2022 0.19%
KCA DEUTAG US FIN LLC L+675 09.5530 03/21/2023 0.19%
SOLERA LLC / SOLERA P/P 144A 10.5000 03/01/2024 0.18%
SYNIVERSE TL 2L L+900 11.4551 03/11/2024 0.17%
VIDEOTRON LTD USD 05.0000 07/15/2022 0.17%
ALBERTSON'S LLC TLB5 L+300 05.8216 12/21/2022 0.16%
BIG RIVER STEEL TLB L+500 07.8030 08/23/2023 0.16%
BLOUNT INTL TLB L+375 06.0520 04/12/2023 0.16%
CHESAPEAKE ENERGY CORP 05.6863 04/15/2019 0.16%
HUNTSMAN INTERNATIONAL LLC 04.8750 11/15/2020 0.16%
KINDER MORGAN INC 03.7163 01/15/2023 0.16%
NAVISTAR INTL CORP TLB L+375 06.3125 07/30/2025 0.16%
RANGE RESOURCES CORP 05.7500 06/01/2021 0.16%
RIVERS PITTSBURGH LP P/P 144A 06.1250 08/15/2021 0.16%
SABRE GLBL TLB L+200 03.9842 02/22/2024 0.16%
ARCELORMITTAL USD 05.5000 03/01/2021 0.15%
SS&C TECH TLB5 L+250 04.82225 04/16/2025 0.15%
CABLEVISION SYS CORP 08.0000 04/15/2020 0.14%
LEVEL 3 TLB L+225 04.7538 02/22/2024 0.13%
VISTRA ENERGY TLB3 L+200 04.4253 12/01/2025 0.12%
FRAC TECH INTL TLB L+475 07.2724 04/16/2021 0.11%
FIRST DATA TL L+200 04.5038 07/10/2022 0.10%
TRONOX BLOCKED TLB L+300 05.5224 09/22/2024 0.10%
AIR MEDICAL TLB L+425 06.5296 09/26/2024 0.08%
KRAFT HEINZ FOODS CO 03.4381 08/10/2022 0.08%
INFOR SOFTWARE P/P 144A 07.1250 05/01/2021 0.07%
CHC GRP LLC/FIN P/P USD 00.0000 10/01/2020 0.06%
INFOR US INC 06.5000 05/15/2022 0.06%
TRIBUNE CLASS 1C LITIGAT 0.06%
ASCENT RESOURCES TLB L+650 08.8869 03/30/2023 0.05%
CAESARS ENTERTAINMENT CORP 0.03%
CHC GROUP LLC P/P 0.01%
TXU TCEH RIGHTS 0.01%
AVAYA HOLDINGS CORP 0.00%
NRG ENERGY TLB L+175 04.2724 06/30/2023 0.00%

Prior top 10 holdings

Top 10 holdings as of 03/31/19
Cequel Communications
Asurion
Travelport Worldwide
Charter Communications
Centurylink
Refinitiv
Kronos Inc
Intelsat
California Resources
Altice Numericable
Holdings represent 11.20% of portfolio
Top 10 holdings as of 02/28/19
Cequel Communications
Asurion
Centurylink
Charter Communications
Refinitiv
Kronos Inc
Intelsat
California Resources
Altice Numericable
Mgm Resorts International
Holdings represent 10.87% of portfolio
Top 10 holdings as of 01/31/19
Cequel Communications
Asurion
Transdigm
Charter Communications
Centurylink
Scientific Games
Refinitiv
Kronos Inc
Solera Holdings Inc
Intelsat
Holdings represent 9.94% of portfolio
Top 10 holdings as of 12/31/18
Vistra Energy
Transdigm
Ss&C Tech Inc
Cequel Communications
Asurion
Charter Communications
Centurylink
Scientific Games
Refinitiv
Kronos Inc
Holdings represent 10.23% of portfolio

Fixed income statistics as of 03/31/19

Average effective maturity 4.79 yrs.
Average effective duration 0.14 yrs.
Average yield to maturity 5.76%
Average coupon 5.39%
Average price $97.95

Sector weightings as of 03/31/19

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
Bank loans 86.83% 3.72 0.00% 0.00 86.83% 3.72
High-yield corporate bonds 5.85% 0.11 0.00% 0.00 5.85% 0.11
Investment-grade corporate bonds 1.20% 0.04 0.00% 0.00 1.20% 0.04
Emerging-market bonds 0.41% 0.01 0.00% 0.00 0.41% 0.01
Equity investments 0.09% 0.00 0.00% 0.00 0.09% 0.00
Convertible securities 0.03% 0.00 0.00% 0.00 0.03% 0.00
Net cash 5.59% 0.00 0.00% 0.00 5.59% 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 03/31/19

0 - 1 yr. 7.42%
1 - 5 yrs. 34.66%
5 - 10 yrs. 57.92%

Quality rating as of 03/31/19

BBB 7.42%
BB 39.66%
B 44.11%
CCC and Below 3.05%
Not Rated 0.17%
Net cash 5.59%

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 (including perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer or industry. These and other factors may lead to periods of high volatility and reduced liquidity in the fund's portfolio holdings. 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 generally greater for longer-term bonds, and credit risk is generally 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 (so that 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). The 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 03/31/19

Consumer cyclicals 25.01%
Technology 10.39%
Communication services 10.15%
Health care 9.49%
Basic materials 9.11%
Capital goods 7.98%
Consumer staples 6.75%
Energy 6.74%
Financials 6.65%
 
Other
7.73%
Net Cash 5.59%
Utilities 2.14%

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 03/31/19

United States 98.60%
Luxembourg 0.63%
Israel 0.41%
Canada 0.33%
Cayman Islands 0.03%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 1.02% 1.22% 1.77% 1.07% 1.27% 0.68% 0.77%
What you pay 1.02% 1.22% 1.77% 1.07% 1.27% 0.68% 0.77%

Sales charge

 Breakpoint Class A Class B Class C Class M Class R Class R6 Class Y
$0-$49,999 2.25% / 2.00% 0.00% / 1.00% 0.00% / 1.00% 0.75% / 0.75% -- -- --
$50,000-$99,999 2.25% / 2.00% 0.00% / 1.00% 0.00% / 1.00% 0.75% / 0.75% -- -- --
$100,000-$249,999 1.75% / 1.50% -- 0.00% / 1.00% 0.75% / 0.75% -- -- --
$250,000-$499,999 1.25% / 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 (including perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer or industry. These and other factors may lead to periods of high volatility and reduced liquidity in the fund's portfolio holdings. 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 generally greater for longer-term bonds, and credit risk is generally 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 (so that 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). The 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.