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Prior to June 1, 2018, the fund was known as Putnam Absolute Return 100 Fund. All fund data for dates prior to June 1, 2018, reflect the fund's previous investment strategy in effect at that time.

Short Duration Bond Fund (Class Y)  (PARYX)

Pursuing income consistent with capital preservation from diverse short-term bonds

Short Duration Bond Fund received an  Overall Morningstar Rating  of  

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Highlights

Objective

The fund seeks as high a rate of current income as we believe is consistent with preservation of capital.

Strategy and process

  • Sector diversification: The fund invests in a diversified portfolio of fixed-income securities, including corporate debt, bank loans, sovereign debt, and securitized assets, such as mortgage-backed and asset-backed securities.
  • Managing rate sensitivity: The fund invests in short-term bonds and other securities, and generally maintains an effective duration, or interest-rate sensitivity, of three years or less.
  • Fundamental approach: The fund's experienced portfolio managers implement active strategies that consider several factors, including credit, interest-rate, and prepayment risks, and general market conditions.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $10.05
0.10% | $0.01
$10.21
12/15/17
$9.96
12/22/17
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.

1.86%

Best 5-year annualized return

(for period ending 09/30/18)


0.42%

Worst 5-year annualized return

(for period ending 03/31/16)


1.41%

Average 5-year annualized return


Fund facts as of 09/30/18

Total net assets
$165.61M
Turnover (fiscal year end)
256%
Dividend frequency (view rate)
Monthly
Number of holdings
345
Fiscal year-end
October
CUSIP / Fund code
746764380 / 1863
Inception date
12/23/08
Category
Taxable Income
Open to new investors
Ticker
PARYX

Management team

Portfolio Manager
Portfolio Manager
Chief Investment Officer, Fixed Income
Portfolio Manager


Literature


Don’t underestimate this economy
Despite worrisome headlines about the economy, recent data show only a modest loss of momentum.
The fixed-income risks that we favor
We see more attractive fixed income risks outside of interest rates, in part because U.S. economic growth may warrant more rate hikes by the Fed.
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 09/30/18

  • Annual performance as of 09/30/18

Annualized Total return (%) as of 09/30/18

Annualized performance 1 yr. 3 yrs. 5 yrs. Life (inception: 12/23/08 )
Before sales charge 2.23% 2.58% 1.86% 1.78%
After sales charge N/A N/A N/A N/A
ICE BofAML 1-3 Year U.S. Corporate Index 0.79% 1.66% 1.58% --
ICEBAML US TBill-ICEBAML 1-3yr US Corp Linkd Bench 1.60% 0.84% 0.54% --

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 (2.25% and 0.75% for Putnam Short Duration Bond Fund and 1.00% and 0.75% for Putnam Floating Rate Income 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 Short Duration Bond 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 09/30/18 0.15 % -
YTD as of 10/22/18 1.70 % -

Yield

Distribution rate before sales charge
as of 10/22/18
2.99%
Distribution rate after sales charge
as of 10/22/18
2.99%
30-day SEC yield as of 09/30/18 3.08%

Risk-adjusted performance as of 09/30/18

Sharpe ratio (3 yrs.) 1.44
Information ratio (3 yrs.) 1.36

Volatility as of 09/30/18

Standard deviation (3 yrs.) 1.27%
Beta 0.17
R-squared 0.00

Lipper rankings as of 09/30/18

Time period Rank/Funds in category Percentile ranking
1 yr. 13/362 4%
3 yrs. 25/321 8%
5 yrs. 33/260 13%
10 yrs. --  
Lipper category: Short Investment Grade Debt Funds

Morningstar Ratings as of 09/30/18

Time period Funds in category Morningstar Rating
Overall 474
3 yrs. 474
5 yrs. 400
Morningstar category: Short-Term Bond

Distributions

Record/Ex dividend date 09/21/18
Payable date 09/25/18
Income $0.025
Extra income --
Short-term cap. gain --
Long-term cap. gain --

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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Holdings

Top 10 holdings as of 09/30/18

Spst 2018-1 A 03.1122 04/24/2019 1.80%
Spst 2018-3 A 02.9122 07/24/2019 1.30%
Kkr Group Finance P/P 144a 06.3750 09/29/2020 1.26%
Citigroup 04.0440 06/01/2024 1.23%
Skandinaviska Enskilda Usd 02.3000 03/11/2020 0.98%
Stacr 2015-Dna3 M2 05.0658 04/25/2028 0.96%
Anz New Zealand Intl P/P 144a 03.3353 01/25/2022 0.92%
Goldman Sachs Group 03.4838 11/15/2021 0.92%
Morgan Stanley 03.5275 01/20/2022 0.92%
CAS 2014-C04 2M2 07.2158 11/25/2024 0.91%
Top 10 holdings, percent of portfolio 11.20%

Full portfolio holdings as of 06/30/18

FNMA FN30 TBA 03.0000 08/01/2048 4.64%
GNMA GII30 TBA 04.5000 07/01/2048 2.13%
SPST 2018-1 A 02.8613 04/24/2019 2.04%
SPST 2018-3 A 02.7911 07/24/2019 1.47%
KKR GROUP FINANCE CO P/P 144A 06.3750 09/29/2020 1.46%
ALTRIA GROUP INC 02.6250 01/14/2020 1.31%
SKANDINAVISKA ENSKILDA USD 02.3000 03/11/2020 1.12%
CWALT 2006-OA10 4A1 02.2811 08/25/2046 1.09%
LNSTR 2015-3 B P/P 144A 03.2457 04/20/2048 1.09%
ROYAL BK SCOTLND USD 04.7000 07/03/2018 1.08%
MORGAN STANLEY 03.5387 01/20/2022 1.05%
ANZ NEW ZEALAND INTL P/P 144A 03.3617 01/25/2022 1.04%
GOLDMAN SACHS GROUP INC 03.5125 11/15/2021 1.04%
CAS 2018-C04 2M1 02.8519 12/25/2030 1.03%
WESTPAC BANKING CORP USD 02.1500 03/06/2020 1.02%
NATIONAL AUSTRALIA BK/NY 02.8000 01/10/2022 1.01%
AIR LEASE CORP 02.6250 09/04/2018 0.96%
SOUTHERN CO 02.3500 07/01/2021 0.96%
APPLE INC 02.1000 05/06/2019 0.95%
CSAIL 2015-C1 AS 03.7910 04/15/2050 0.93%
WFRBS 2013-C16 AS 04.6680 09/15/2046 0.93%
CAS 2015-C04 2M2 07.6411 04/25/2028 0.86%
STACR 2014-HQ2 M2 04.2911 09/25/2024 0.86%
SIEMENS FINANCIERING P/P 144A 02.2000 03/16/2020 0.85%
STACR 2015-HQ2 M2 04.0411 05/25/2025 0.85%
MSRR 2015-R4 CB1 02.7853 08/26/2047 0.83%
WFRBS 2011-C4 D P/P 144A 05.3988 06/15/2044 0.81%
UNITED TECHNOLOGIES CORP 01.9000 05/04/2020 0.80%
ABN AMRO BANK NV P/P 144A 02.9951 01/18/2019 0.78%
COMMONWEALTH BK AUST P/P 144A 02.2000 11/09/2020 0.77%
CVS HEALTH CORP 04.7500 12/01/2022 0.73%
CREDIT SUISSE NEW YORK 05.4000 01/14/2020 0.72%
GEORGIA-PACIFIC LLC P/P 144A 05.4000 11/01/2020 0.72%
THE BOEING COMPANY 08.7500 08/15/2021 0.71%
FNMA FN30 TBA 04.0000 07/01/2048 0.70%
GENERAL MOTORS FINL CO 03.1000 01/15/2019 0.70%
GNMA GII30 TBA 04.0000 07/01/2048 0.70%
S&P GLOBAL INC 03.3000 08/14/2020 0.70%
CHARTER COMM OPT LLC/CAP 04.0428 02/01/2024 0.69%
HSBC USA INC 02.0000 08/07/2018 0.69%
KRAFT HEINZ FOODS CO 03.1725 08/10/2022 0.69%
PHILLIPS 66 P/P 144A 03.0977 04/15/2020 0.69%
VERIZON COMMUNICATIONS 02.7125 08/15/2019 0.69%
WELLS FARGO & COMPANY 02.6000 07/22/2020 0.69%
BANK OF AMERICA CORP 02.9851 06/25/2022 0.68%
BRDCOM CRP / FIN 03.0000 01/15/2022 0.68%
JPMORGAN CHASE & CO 02.2500 01/23/2020 0.68%
MARSH & MCLENNAN COS INC 02.7500 01/30/2022 0.68%
ROCKWELL COLLINS INC 01.9500 07/15/2019 0.68%
AT&T INC P/P 144A 04.3000 02/15/2030 0.67%
MONDELEZ INTL P/P 144A 01.6250 10/28/2019 0.67%
MOODY'S CORPORATION 02.7500 12/15/2021 0.67%
METLIFE INC. 04.7500 02/08/2021 0.66%
US BANK NA CINCINNATI 03.1500 04/26/2021 0.65%
GE CAP INTL FUNDING USD 02.3420 11/15/2020 0.62%
BF0101 03.5000 06/01/2056 0.59%
WFCM 2013-LC12 C 04.4231 07/15/2046 0.58%
WFCM 2013-LC12 D P/P 144A 04.4231 07/15/2046 0.58%
PETROBRAS GLOBAL FINANCE USD 06.1250 01/17/2022 0.57%
FHR 3835 FO PO 00.0000 04/15/2041 0.56%
GNR 2013-23 IK IO 03.0000 09/20/2037 0.55%
JPMCC 2012-C6 E P/P 144A 05.3121 05/15/2045 0.55%
STACR 2015-DNA3 M2 04.9411 04/25/2028 0.55%
MET LIFE GLOB FUND P/P 144A 03.0000 01/10/2023 0.54%
SPST 2017-LD1 A 02.8911 11/25/2050 0.54%
BIOGEN INC 03.6250 09/15/2022 0.50%
GSMS 2014-GC18 C 05.1083 01/10/2047 0.50%
ROYAL BANK OF CANADA USD 02.1250 03/02/2020 0.50%
TPAT 2018-SL1 A P/P 144A 02.6911 01/25/2046 0.49%
TEXAS-NEW MEXICO PR P/P 144A 09.5000 04/01/2019 0.48%
WFCM 2012-LC5 AS 03.5390 10/15/2045 0.48%
CITIZENS BANK NA/RI 02.2500 03/02/2020 0.47%
COMM 2012-CR1 AM 03.9120 05/15/2045 0.47%
MSBAM 2013-C7 XA IO 01.5232 02/15/2046 0.47%
UBSBB 2012-C2 XA IO P/P 144A 01.4919 05/10/2063 0.45%
BNP PARIBAS USD 05.0000 01/15/2021 0.44%
GECMC 2005-C1 D 04.4139 06/10/2048 0.43%
GNR 2013-20 QI IO 04.5000 12/16/2042 0.43%
FEDEX CORP 03.2000 02/01/2025 0.42%
SVENSKA HANDELSBANKEN AB USD 01.9500 09/08/2020 0.42%
ANHEUSER-BUSCH INBEV FIN 04.9000 02/01/2046 0.41%
BANQUE FED CRED MUTU P/P 144A 02.2000 07/20/2020 0.41%
COMM 2014-CR17 C 04.8978 05/10/2047 0.40%
ANHEUSER-BUSCH INBEV FIN 03.6500 02/01/2026 0.39%
GSMS 2014-GC22 C 04.8003 06/10/2047 0.38%
SAMI 2007-AR7 1A1 02.9411 05/25/2047 0.38%
UBS GROUP FUNDIN P/P 144A 02.6500 02/01/2022 0.38%
CAS 2016-C03 2M2 07.9911 10/25/2028 0.37%
MANUF & TRADERS TRUST CO 02.0500 08/17/2020 0.37%
BANK OF AMERICA CORP 02.1510 11/09/2020 0.36%
BOARDWALK PIPELINES LLC 05.7500 09/15/2019 0.36%
COMM 2012-LC4 C 05.7774 12/10/2044 0.36%
BSCMS 2007-T26 AJ 05.5660 01/12/2045 0.35%
CFCRE 2011-C2 D P/P 144A 05.9467 12/15/2047 0.35%
CITIGROUP INC 02.6500 10/26/2020 0.35%
CWALT 2005-59 1A1 02.4138 11/20/2035 0.35%
JPMCC 2005-CB11 C 05.7119 08/12/2037 0.35%
JPMCC 2012-C6 AS 04.1166 05/15/2045 0.35%
WFRBS 2011-C5 E P/P 144A 05.8594 11/15/2044 0.35%
WFRBS 2013-C18 AS 04.3870 12/15/2046 0.35%
BMW US CAPITAL LLC P/P 144A 02.0000 04/11/2021 0.34%
COMMONWEALTH BK AUST P/P 144A 01.7500 11/07/2019 0.34%
GSMS 2013-GC10 D P/P 144A 04.5576 02/10/2046 0.34%
JPMCC 2012-C6 D 05.3121 05/15/2045 0.34%
PETROLEOS MEXICANOS USD 05.3750 03/13/2022 0.34%
SHIRE ACQ INV IRELAND DA USD 01.9000 09/23/2019 0.34%
BMIR 2017-1 M1 P/P 144A 03.7911 10/25/2027 0.33%
WESTROCK RKT CO 04.4500 03/01/2019 0.32%
CSAIL 2015-C1 C 04.4401 04/15/2050 0.31%
KEYCORP 02.3000 12/13/2018 0.31%
CVS HEALTH CORP 02.2500 12/05/2018 0.29%
CMLTI 2005-2 1A2A 03.8164 05/25/2035 0.28%
CSMC 2008-C1 AJ P/P 144A 06.1704 02/15/2041 0.28%
GNR 2014-20 SQ IO 04.0163 07/20/2043 0.28%
CONAGRA BRANDS INC 02.8386 10/09/2020 0.27%
CVS HEALTH CORP 03.7000 03/09/2023 0.27%
GSMS 2012-GC6 D P/P 144A 05.8403 01/10/2045 0.27%
JPMCC 2013-C10 XA IO 01.1720 12/15/2047 0.27%
MSBAM 2012-C5 AS 03.7920 08/15/2045 0.27%
WFRBS 2013-C12 AS 03.5600 03/15/2048 0.27%
EQT CORP 03.1074 10/01/2020 0.26%
UBS AG LONDON P/P 144A 02.2000 06/08/2020 0.26%
BSCMS 2006-PW11 B P/P 144A 05.2830 03/11/2039 0.25%
MSBAM 2013-C7 XB IO P/P 144A 00.4278 02/15/2046 0.25%
BANK OF MONTREAL USD 03.1000 04/13/2021 0.24%
CARR 2006-NC2 A4 02.3311 06/25/2036 0.24%
EQUINOR ASA USD 02.9000 11/08/2020 0.24%
MSBAM 2014-C17 XA IO 01.3553 08/15/2047 0.24%
PNC BANK NA 02.0000 05/19/2020 0.24%
AMERICAN EXPRESS CO 04.9000 12/29/2049 0.23%
WFRBS 2013-C17 C 05.2928 12/15/2046 0.23%
AIG GLOBAL FUNDING P/P 144A 02.1500 07/02/2020 0.22%
CGCMT 2014-GC21 AS 04.0260 05/10/2047 0.22%
CONSOLIDATED EDISON INC 02.0000 03/15/2020 0.22%
PROTECTIVE LIFE GLO P/P 144A 02.2620 04/08/2020 0.22%
WFRBS 2013-UBS1 AS 04.3060 03/15/2046 0.22%
GSMS 2011-GC5 D P/P 144A 05.5644 08/10/2044 0.21%
MACQUARIE BANK LTD P/P 144A 04.0000 07/29/2025 0.21%
UBSBB 2012-C3 C P/P 144A 05.2095 08/10/2049 0.21%
CONSOLIDATED EDISON COMPANY 07.1250 12/01/2018 0.20%
FNR 2017-8 SB IO 04.0089 02/25/2047 0.20%
GSAA 2006-8 2A2 02.2711 05/25/2036 0.20%
LNSTR 2015-3 C P/P 144A 03.2457 04/20/2048 0.20%
GCCFC 2005-GG5 B 05.6065 04/10/2037 0.19%
GOLDMAN SACHS GROUP INC 02.6000 12/27/2020 0.19%
JPMBB 2014-C22 XA IO 01.0462 09/15/2047 0.19%
MACQUARIE GROUP LTD P/P 144A 07.6250 08/13/2019 0.19%
STACR 2014-HQ3 M3 06.8411 10/25/2024 0.19%
BUMT 2005-1 1A1 02.3911 09/25/2045 0.18%
COMM 2013-LC13 XA IO 01.4230 08/10/2046 0.18%
STACR 2016-DNA2 M2 04.2911 10/25/2028 0.18%
UBSBB 2012-C2 D P/P 144A 05.0502 05/10/2063 0.18%
WFRBS 2011-C2 D P/P 144A 05.8385 02/15/2044 0.18%
WFRBS 2012-C10 C 04.5268 12/15/2045 0.18%
BP CAPITAL MARKETS PLC USD 01.7680 09/19/2019 0.17%
CAS 2014-C03 2M2 04.9911 07/25/2024 0.17%
COMM 2014-CR14 XA IO 00.8764 02/10/2047 0.17%
COMM 2014-CR17 XA IO 01.2444 05/10/2047 0.17%
GNR 2010-35 QI IO 04.5000 03/20/2040 0.17%
JPMBB 2013-C17 AS 04.4584 01/15/2047 0.17%
MSC 2012-C4 C P/P 144A 05.6009 03/15/2045 0.17%
VOLT 2017-NP10 A1 P/P 144A 03.0000 10/25/2047 0.17%
WBCMT 2005-C21 D 05.4644 10/15/2044 0.17%
CAS 2016-C02 1M2 08.0911 09/25/2028 0.16%
CGCMT 2014-GC21 C 04.7800 05/10/2047 0.16%
GSMS 2013-GC12 XA IO 01.5781 06/10/2046 0.16%
STACR 2015-DNA2 M2 04.6911 12/25/2027 0.16%
JPMCC 2005-LDP5 F 05.8948 12/15/2044 0.15%
JPMCC 2011-C3 E P/P 144A 05.8653 02/15/2046 0.15%
MSBAM 2014-C18 C 04.4893 10/15/2047 0.15%
BANCO SANTANDER SA USD 05.1790 11/19/2025 0.14%
FNR 2012-36 SN IO 04.3589 04/25/2042 0.14%
PPSI 2004-WCW2 M3 03.1411 10/25/2034 0.14%
PROVINCIA DE CORDOBA P/P 144A 07.1250 08/01/2027 0.14%
ROYAL BK SCOTLND GRP PLC USD 07.5000 12/29/2049 0.14%
2.75 R ISWP FWD US0003M P 06/20/2023 0.13%
CWCI 2007-C3 AJ 06.0153 05/15/2046 0.13%
LBUBS 2006-C6 AJ 05.4520 09/15/2039 0.13%
CWHL 2005-3 1A1 02.7111 04/25/2035 0.12%
JPMCC 2012-LC9 D P/P 144A 04.5177 12/15/2047 0.12%
CAS 2015-C04 1M2 07.7911 04/25/2028 0.11%
FNR 2011-4 CS 08.7177 05/25/2040 0.11%
NBCUNIVERSAL MEDIA LLC 05.1500 04/30/2020 0.11%
SASC 2006-AM1 A4 02.2511 04/25/2036 0.11%
WASTE MANAGEMENT INC. 04.7500 06/30/2020 0.11%
STACR 2015-HQA2 M2 04.8911 05/25/2028 0.10%
VOLT 2017-NPL8 A1 P/P 144A 03.1250 06/25/2047 0.10%
FNR 2003-43 YA 04.0000 03/25/2033 0.09%
GNR 2014-163 NI IO 05.0000 02/20/2044 0.09%
JPMORGAN CHASE & CO. 03.8750 09/10/2024 0.09%
MLMI 2005-A2 A2 03.5373 02/25/2035 0.09%
CAS 2014-C04 1M2 06.9911 11/25/2024 0.08%
CMB CMBX.NA.BB.6 2063-05-11 500.0 05/11/2063 CS 0.08%
FNR 2005-75 GS 13.9766 08/25/2035 0.08%
GSMS 2010-C1 D P/P 144A 06.1964 08/10/2043 0.08%
WFRBS 2013-C11 AS 03.3110 03/15/2045 0.08%
AUTONATION INC. 05.5000 02/01/2020 0.07%
GNR 2010-151 KO PO 00.0000 06/16/2037 0.07%
MSC 2012-C4 XA IO P/P 144A 02.2706 03/15/2045 0.07%
WFRBS 2014-C19 C 04.6460 03/15/2047 0.07%
CAS 2016-C05 2M1 03.4411 01/25/2029 0.06%
MLMT 2004-KEY2 D 05.0460 08/12/2039 0.05%
PETROBRAS GLOBAL FINANCE USD 08.7500 05/23/2026 0.05%
CMB CMBX.NA.BB.6 2063-05-11 500.0 05/11/2063 GS 0.04%
FNR 2010-81 AP 02.5000 07/25/2040 0.04%
WFRBS 2011-C4 E P/P 144A 05.3988 06/15/2044 0.04%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 CS 0.03%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 CS 0.03%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 ML 0.03%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 CS 0.03%
FHR 3609 LK 02.0000 12/15/2024 0.03%
FHR 3724 CM 05.5000 06/15/2037 0.03%
LBUBS 2006-C6 B 05.4720 09/15/2039 0.03%
STACR 2015-HQ1 M2 04.2911 03/25/2025 0.03%
CAS 2016-C06 1M2 06.3411 04/25/2029 0.02%
FNW 1998-W2 X IO 00.3856 06/25/2028 0.02%
HESS CORP 07.3000 08/15/2031 0.02%
2.79375 R ISWP US0003M P 06/07/2020 0.01%
2.875 R ISWP FWD US0003M P 09/19/2020 0.01%
CAS 2015-C03 2M2 07.0911 07/25/2025 0.01%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 CG 0.01%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 GS 0.01%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 JP 0.01%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 JP 0.01%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 JP 0.01%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 JP 0.01%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 JP 0.01%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 MS 0.01%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 MS 0.01%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 MS 0.01%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 GS 0.01%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 JP 0.01%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 JP 0.01%
CPURNSA R 1.89 P 07/05/22 0.01%
CPURNSA R 1.9225 P 07/03/22 0.01%
FHR 2976 LC 16.8181 05/15/2035 0.01%
FHR 3539 PM 04.5000 05/15/2037 0.01%
FNR 2005-68 PC 05.5000 07/25/2035 0.01%
FNR 2010-155 A 03.5000 09/25/2025 0.01%
FNR 2011-60 PA 04.0000 10/25/2039 0.01%
FNW 1998-W5 X IO 00.0478 07/25/2028 0.01%
GNR 2009-32 AB 04.0000 05/16/2039 0.01%
MLCFC 2006-4 XC IO P/P 144A 00.7100 12/12/2049 0.01%
OPTN FN30 3.5 09/06/18 PUT 98.5234375 JPMC 0.01%
OPTN FN30 3.5 09/06/18 PUT 98.6796875 JPMC 0.01%
OPTN FN30 3.5 09/06/18 PUT 98.8359375 JPMC 0.01%
SWPTN 3MX10Y R 2.8475 USD 08/15/2018 CS 0.01%
SWPTN 3MX1Y R 3.04375 USD 09/11/2018 GS 0.01%
SWPTN 5WX10Y R 2.945 USD 07/09/2018 CI 0.01%
2.899 R ISWP US0003M P 07/03/2028 0.00%
2.90 R ISWP FWD US0003M P 09/19/2023 0.00%
2.9035 R ISWP US0003M P 06/27/2023 0.00%
2.90375 R ISWP US0003M P 06/07/2020 0.00%
2.91024 R ISWP US0003M P 07/02/2028 0.00%
2.92287 R ISWP US0003M P 07/03/2028 0.00%
2.9245 R ISWP US0003M P 06/29/2028 0.00%
2.92594 R ISWP US0003M P 07/03/2028 0.00%
2.9398 R ISWP US0003M P 06/28/2028 0.00%
2.95 R ISWP FWD US0003M P 09/19/2028 0.00%
2.9715 R ISWP US0003M P 06/26/2028 0.00%
BACM 2004-4 XC IO P/P 144A 00.0521 07/10/2042 0.00%
BACM 2007-1 XW IO 00.4118 01/15/2049 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 CG 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 CG 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 CG 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 CG 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 CS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 CS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 CS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 GS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 GS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 GS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 GS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 GS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 GS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 GS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 JP 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 JP 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 JP 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 JP 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 JP 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 JP 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 JP 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 MS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 MS 0.00%
CMB CMBX.NA.A.6 2063-05-11 200.0 05/11/2063 MS 0.00%
CMB CMBX.NA.A.7 2047-01-17 200.0 01/17/2047 CG 0.00%
CMB CMBX.NA.A.7 2047-01-17 200.0 01/17/2047 GS 0.00%
CMB CMBX.NA.A.7 2047-01-17 200.0 01/17/2047 MS 0.00%
CMB CMBX.NA.BB.6 2063-05-11 500.0 05/11/2063 JP 0.00%
CMB CMBX.NA.BB.6 2063-05-11 500.0 05/11/2063 MS 0.00%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 CG 0.00%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 CG 0.00%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 GS 0.00%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 GS 0.00%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 JP 0.00%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 JP 0.00%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 JP 0.00%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 JP 0.00%
CMB CMBX.NA.BB.7 2047-01-17 500.0 01/17/2047 JP 0.00%
CMB CMBX.NA.BB.9 2058-09-17 500.0 09/17/2058 CG 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 BA 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 CG 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 CG 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 CS 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 GS 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 GS 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 JP 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 JP 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 JP 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 JP 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 JP 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 ML 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 MS 0.00%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 MS 0.00%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 GS 0.00%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 GS 0.00%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 GS 0.00%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 JP 0.00%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 JP 0.00%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 JP 0.00%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 ML 0.00%
CSFB 2003-C3 AX IO P/P 144A 02.2220 05/15/2038 0.00%
FHLMC FH15G E01425 04.5000 08/01/2018 0.00%
FHLMC FH15OT M30301 04.5000 10/01/2018 0.00%
FHR 3876 CA 02.7500 06/15/2026 0.00%
FNMA FN10 257370 06.0000 09/01/2018 0.00%
FNMA FN15 725993 06.0000 09/01/2019 0.00%
FNR 2004-2 QL 04.0000 02/25/2019 0.00%
FSPC T-48 AIO2 IO 00.2120 07/25/2033 0.00%
FSPC T-59 1AX IO 00.2761 10/25/2043 0.00%
FSPC T-8 A9 IO 00.4342 11/15/2028 0.00%
GSMPS 1998-2 IO IO 01.0041 05/19/2027 0.00%
GSMPS 1998-3 IO IO 00.0000 09/19/2027 0.00%
GSMPS 1998-4 IO IO 00.0000 12/19/2026 0.00%
GSMPS 1999-2 IO IO 00.8396 09/19/2027 0.00%
LBUBS 2007-C2 XW IO 00.3470 02/15/2040 0.00%
MLMT 2005-MCP1 XC IO P/P 144A 00.0016 06/12/2043 0.00%
OPTN FN30 3.5 07/05/18 PUT 97.875 JPMC 0.00%
OPTN FN30 3.5 07/05/18 PUT 98.03125 JPMC 0.00%
OPTN FN30 3.5 07/05/18 PUT 98.1875 JPMC 0.00%
OPTN FN30 3.5 07/05/18 PUT 98.234375 JPMC 0.00%
OPTN FN30 3.5 07/05/18 PUT 98.390625 JPMC 0.00%
OPTN FN30 3.5 07/05/18 PUT 98.546875 JPMC 0.00%
OPTN FN30 3.5 07/05/18 PUT 98.59375 JPMC 0.00%
OPTN FN30 3.5 07/05/18 PUT 98.75 JPMC 0.00%
OPTN FN30 3.5 07/05/18 PUT 98.90625 JPMC 0.00%
OPTN FN30 3.5 09/06/18 PUT 97.3828125 JPMC 0.00%
OPTN FN30 3.5 09/06/18 PUT 97.5390625 JPMC 0.00%
OPTN FN30 3.5 09/06/18 PUT 97.6953125 JPMC 0.00%
OPTN FN30 3.5 09/06/18 PUT 97.953125 JPMC 0.00%
OPTN FN30 3.5 09/06/18 PUT 98.109375 JPMC 0.00%
OPTN FN30 3.5 09/06/18 PUT 98.265625 JPMC 0.00%
SWPTN 14WX10Y P 3.255 USD 08/28/2018 MS 0.00%
SWPTN 14WX10Y P 3.255 USD 09/04/2018 BC 0.00%
SWPTN 14WX10Y R 2.655 USD 09/04/2018 BC 0.00%
SWPTN 14WX10Y R 2.745 USD 08/28/2018 MS 0.00%
SWPTN 14WX10Y R 2.915 USD 07/25/2018 CS 0.00%
SWPTN 14WX2Y R 2.8 USD 07/25/2018 CS 0.00%
SWPTN 1MX10Y P 2.9425 USD 07/02/2018 BC 0.00%
SWPTN 1MX10Y P 2.9525 USD 07/02/2018 MS 0.00%
SWPTN 1MX10Y P 3.0625 USD 07/02/2018 MS 0.00%
SWPTN 1MX10Y R 2.8425 USD 07/02/2018 MS 0.00%
SWPTN 1MX10Y R 2.9425 USD 07/02/2018 BC 0.00%
SWPTN 3MX10Y P 3.029 USD 07/17/2018 CI 0.00%
SWPTN 3MX10Y P 3.3575 USD 08/15/2018 CS 0.00%
SWPTN 3MX10Y R 2.739 USD 07/17/2018 CI 0.00%
SWPTN 3MX10Y R 2.8525 USD 07/18/2018 MS 0.00%
SWPTN 3MX10Y R 2.884 USD 07/17/2018 CI 0.00%
SWPTN 3MX1Y P 2.7 USD 09/04/2018 GS 0.00%
SWPTN 3MX1Y P 2.73375 USD 09/11/2018 GS 0.00%
SWPTN 3MX1Y P 3.005 USD 09/04/2018 GS 0.00%
SWPTN 3MX1Y P 3.04375 USD 09/11/2018 GS 0.00%
SWPTN 3MX1Y R 2.7 USD 09/04/2018 GS 0.00%
SWPTN 3MX1Y R 2.73375 USD 09/11/2018 GS 0.00%
SWPTN 3MX1Y R 3.005 USD 09/04/2018 GS 0.00%
SWPTN 3MX2Y R 2.78 USD 07/18/2018 MS 0.00%
SWPTN 5WX10Y P 3.03 USD 07/09/2018 CI 0.00%
SWPTN 5WX10Y P 3.115 USD 07/09/2018 CI 0.00%
SWPTN 6MX1Y R 2.47 USD 08/14/2018 CI 0.00%
SWPTN 6MX1Y R 2.6325 USD 08/14/2018 CI 0.00%
WBCMT 2006-C29 IO IO 00.3769 11/15/2048 0.00%
WBCMT 2007-C31 IO IO P/P 144A 00.2359 04/15/2047 0.00%
3.00 R ISWP FWD US0003M P 09/19/2048 -0.01%
CMB CMBX.NA.BB.6 2063-05-11 500.0 05/11/2063 JP -0.01%
CMB CMBX.NA.BB.6 2063-05-11 500.0 05/11/2063 MS -0.01%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 BA -0.01%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 BA -0.01%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 BA -0.01%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 CS -0.01%
CMB CMBX.NA.BBB-.6 2063-05-11 300.0 05/11/2063 JP -0.01%
CPURNSA P 2.05 R 07/05/27 -0.01%
CPURNSA P 2.085 R 07/03/27 -0.01%
SWPTN 3MX10Y P 3.02 USD 07/27/2018 MS -0.01%
SWPTN 3MX2Y P 2.85 USD 09/04/2018 GS -0.01%
SWPTN 3MX2Y P 2.8875 USD 09/11/2018 GS -0.01%
SWPTN 3MX2Y R 2.85 USD 09/04/2018 GS -0.01%
SWPTN 3MX2Y R 2.8875 USD 09/11/2018 GS -0.01%
SWPTN 5WX10Y R 3.03 USD 07/09/2018 CI -0.01%
CMB CMBX.NA.BB.6 2063-05-11 500.0 05/11/2063 CG -0.02%
CMB CMBX.NA.BBB-.7 2047-01-17 300.0 01/17/2047 CS -0.03%
SWPTN 3MX10Y R 3.02 USD 07/27/2018 MS -0.03%
FNMA FN30 TBA 04.5000 07/01/2048 -1.43%
FNMA FN30 TBA 03.5000 07/01/2048 -4.77%

Prior top 10 holdings

Top 10 holdings as of 09/30/18
Spst 2018-1 A 03.1122 04/24/2019
Spst 2018-3 A 02.9122 07/24/2019
Kkr Group Finance P/P 144a 06.3750 09/29/2020
Citigroup 04.0440 06/01/2024
Skandinaviska Enskilda Usd 02.3000 03/11/2020
Stacr 2015-Dna3 M2 05.0658 04/25/2028
Anz New Zealand Intl P/P 144a 03.3353 01/25/2022
Goldman Sachs Group 03.4838 11/15/2021
Morgan Stanley 03.5275 01/20/2022
CAS 2014-C04 2M2 07.2158 11/25/2024
Holdings represent 11.20% of portfolio
Top 10 holdings as of 08/31/18
Net cash
Fnma Fn30 Tba 03.0000 10/01/2048
Gnma Gii30 Tba 04.5000 09/01/2048
Spst 2018-1 A 02.9660 04/24/2019
Kkr Group Finance P/P 144a 06.3750 09/29/2020
Spst 2018-3 A 02.7660 07/24/2019
Stacr 2015-Dna3 M2 04.9148 04/25/2028
Skandinaviska Enskilda Usd 02.3000 03/11/2020
Cas 2014-C04 2m2 07.0648 11/25/2024
Morgan Stanley 03.5275 01/20/2022
Holdings represent 31.53% of portfolio
Top 10 holdings as of 07/31/18
Net cash
Fnma Fn30 Tba 03.0000 08/01/2048
Gnma Gii30 Tba 04.5000 08/01/2048
Spst 2018-1 A 02.9690 04/24/2019
Spst 2018-3 A 02.7690 07/24/2019
Kkr Group Finance P/P 144a 06.3750 09/29/2020
Skandinaviska Enskilda Usd 02.3000 03/11/2020
Cwalt 2006-Oa10 4a1 02.2536 08/25/2046
Cas 2014-C04 2m2 07.0636 11/25/2024
Goldman Sachs Group 03.5125 11/15/2021
Holdings represent 29.17% of portfolio
Top 10 holdings as of 06/30/18
Net cash
Fnma Fn30 Tba 03.0000 08/01/2048
Gnma Gii30 Tba 04.5000 07/01/2048
Spst 2018-1 A 02.8613 04/24/2019
Spst 2018-3 A 02.7911 07/24/2019
Kkr Group Finance P/P 144a 06.3750 09/29/2020
Altria Group 02.6250 01/14/2020
Skandinaviska Enskilda Usd 02.3000 03/11/2020
Cwalt 2006-Oa10 4a1 02.2811 08/25/2046
Lnstr 2015-3 B P/P 144a 03.2457 04/20/2048
Holdings represent 32.36% of portfolio

Fixed income statistics as of 09/30/18

Average effective maturity 2.35 yrs.
Average effective duration 1.79 yrs.
Average yield to maturity 3.30%
Average coupon 3.18%
Average price $88.44

Sector weightings as of 09/30/18

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
Investment-grade corporate bonds 42.56% 1.07 0.00% 0.00 42.56% 1.07
Net cash 18.23% 0.01 0.00% 0.00 18.23% 0.01
Commercial MBS 15.24% 0.47 0.53% 0.02 15.77% 0.49
Agency CMO 8.58% 0.22 0.00% 0.00 8.58% 0.22
Residential MBS (non-agency) 6.18% 0.19 0.00% 0.00 6.18% 0.19
High-yield corporate bonds 5.24% 0.20 0.00% 0.00 5.24% 0.20
Asset-backed securities (ABS) 3.97% 0.03 0.00% 0.00 3.97% 0.03
Interest rate swaps 0.00% 0.00 0.00% 0.21 0.00% 0.21

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 09/30/18

0 - 1 yr. 27.68%
1 - 5 yrs. 62.46%
5 - 10 yrs. 9.59%
Over 15 yrs. 0.27%

Quality rating as of 09/30/18

AAA 12.53%
AA 12.49%
A 31.15%
BBB 25.88%
BB 7.13%
B 1.00%
CCC and Below 0.67%
Not Rated 9.15%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Allocation of assets among fixed-income strategies and sectors may hurt performance. Bond prices 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 (including perceptions about 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 increased volatility and reduced liquidity in the fund's portfolio holdings. 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 greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk and the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise. International investing involves currency, economic, and political risks. Emerging-market securities have illiquidity and volatility risks. The fund may not achieve its goal, and it is not intended to be a complete investment program. 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. The fund's efforts to produce lower-volatility returns may not be successful and may make it more difficult at times for the fund to achieve its targeted return. Under certain market conditions, the fund may accept greater-than-typical volatility to seek its targeted return. You can lose money by investing in the fund. The fund's prospectus lists additional risks.

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. To-be-announced (TBA) mortgage commitments, if any, are included based on their issuer ratings. Ratings may vary over time. Cash, derivative instruments, and net other assets are shown in the not-rated category. Payables and receivables for TBA mortgage commitments are included in the not-rated category and may result in negative weights. The fund itself has not been rated by an independent rating agency.

Country allocation as of 09/30/18

United States 86.27%
Australia 3.35%
Canada 2.85%
United Kingdom 2.16%
Sweden 1.35%
Bermuda 1.30%
Netherlands 0.75%
France 0.74%
Germany 0.33%
 
Other
0.90%
Switzerland 0.33%
Ireland 0.30%
Japan 0.27%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 0.63% 0.83% 1.38% 0.68% 0.88% 0.38% 0.38%
What you pay 0.63% 0.83% 1.38% 0.68% 0.88% 0.38% 0.38%

Sales charge/Dealer allowance

 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 1.25% / 1.25% -- 0.00% / 1.00% 0.75% / 0.75% -- -- --
$250,000-$499,999 0.00% / 1.00% -- -- -- -- -- --
$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 $250,000+) 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. 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 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 $250,000 and participant-directed qualified retirement plans, see a Putnam fund prospectus and the statement of additional information.

The ICE BofAML 1-3 Year U.S. Corporate Index is an unmanaged index U.S. investment-grade corporate debt with a remaining term to maturity of less than 3 years. The ICE BofAML U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar denominated U.S. Treasury Bills publicly issued in the U.S. domestic market. Qualifying securities must have a remaining term of at least one month to final maturity and a minimum amount outstanding of $1 billion. The ICE BofAML U.S. Treasury Bill-ICE BofAML 1-3 Year U.S. Corporate Linked Benchmark represents performance of the ICE BofAML U.S. Treasury Bill Index from the inception date of the fund through May 31, 2018, and performance of the ICE BofAML 1-3 Year U.S. Corporate Index from June 1, 2018 thereafter. You cannot invest directly in an index. As of June 1, 2018, the ICE BofAML 1-3 Year U.S. Corporate Index replaced the ICE BofAML U.S. Treasury Bill Index as the benchmark for this fund because, in Putnam Investment Management, LLC's opinion, the securities tracked by this index more accurately reflect the types of securities that generally will be held by the fund.

Each fund seeks to earn a positive total return that exceeds the rate of inflation by a targeted amount over a reasonable period of time regardless of market conditions. There can be no assurance that a fund will meet its objective. The fund is not intended to outperform stocks and bonds during strong market rallies. Consult your financial advisor to determine which fund fits into your investment goals and time horizon.

Consider these risks before investing: Allocation of assets among fixed-income strategies and sectors may hurt performance. Bond prices 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 (including perceptions about 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 increased volatility and reduced liquidity in the fund's portfolio holdings. 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 greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk and the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise. International investing involves currency, economic, and political risks. Emerging-market securities have illiquidity and volatility risks. The fund may not achieve its goal, and it is not intended to be a complete investment program. 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. The fund's efforts to produce lower-volatility returns may not be successful and may make it more difficult at times for the fund to achieve its targeted return. Under certain market conditions, the fund may accept greater-than-typical volatility to seek its targeted return. You can lose money by investing in the fund. The fund's prospectus lists additional risks.

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. To-be-announced (TBA) mortgage commitments, if any, are included based on their issuer ratings. Ratings may vary over time. Cash, derivative instruments, and net other assets are shown in the not-rated category. Payables and receivables for TBA mortgage commitments are included in the not-rated category and may result in negative weights. The fund itself has not been rated by an independent rating agency.