Global Income Trust (Class Y)  (PGGYX)

Seeking attractive bond investments across world markets since 1987

Global Income Trust received an  Overall Morningstar Rating  of  

Highlights

Objective

The fund seeks high current income by investing principally in debt securities of sovereign and private issuers worldwide, including supranational issuers. Preservation of capital and long-term total return are secondary objectives, but only to the extent consistent with the objective of seeking high current income.

Strategy and process

  • Worldwide opportunities The fund's managers search for attractive income securities from a broad range of sectors in U.S. and international markets.
  • Flexible risk allocations The fund takes a unique approach to asset allocation, dynamically establishing diversified risk expo­sures rather than sector exposures.
  • Bottom-up approach Security selection is the primary driver of returns, with subsector allocations and macro strategies also serving as potential alpha generators.

Fund price and assets

Yesterday’s close 52-week high 52-week low Net assets and outstanding shares
Net asset value $10.46
-0.19% | $-0.02
$12.38
08/23/21
$10.22
06/14/22
Download CSV
Net assets and outstanding shares

(Optional)

Consistency of positive performance over five years

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

Performance shown above 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 see below.

14.16%

Best 5-year annualized return

(for period ending 09/30/92)


-0.70%

Worst 5-year annualized return

(for period ending 06/30/22)


5.58%

Average 5-year annualized return


Fund facts as of 07/31/22

Total net assets
$174.82M
Turnover (fiscal year end)
838%
Dividend frequency (view rate)
Monthly
Number of holdings
1092
Fiscal year-end
October
CUSIP / Fund code
74677Q604 / 1820
Inception date
10/04/05
Class Y  
Category
Fixed Income
Open to new investors
Ticker
PGGYX

Management team

Chief Investment Officer, Fixed Income
Head of Global Sovereign Credit
Portfolio Manager
Head of Portfolio Construction
Portfolio Manager


Literature


Cautious stance as slowing growth may help yields stabilize
Although central bank efforts to fight inflation could end in recession, we are constructive on some areas of fixed income.
Are bonds too risky right now?
With historical context in mind, we argue that the fear surrounding rising rates and their impact on bonds and retirement portfolios is likely overblown.
Cracks emerge in Europe's resilience
Recent economic data and the outlook for energy supplies are casting doubt on whether Europe has the resilience to withstand a recession.

Performance

  • Total return (%) as of 06/30/22

  • Annual performance as of 06/30/22

Annualized Total return (%) as of 06/30/22

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge -14.83% -3.59% -0.70% 1.00%
After sales charge N/A N/A N/A N/A
Bloomberg Global Aggregate Bond Index -15.25%-3.22%-0.55%0.11%

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. The "before sales charge" performance does not reflect the current maximum sales charges, which we explain below. If performance did reflect the charges, it would be lower. The "after sales charge" performance (or returns at public offering price) varies by share class and fund. For class A and class M shares, the current maximum initial sales charges are 5.75% and 3.50% for equity funds and 4.00% and 3.25% for income funds, respectively (with these exceptions: 2.25% for class A of Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, Strategic Intermediate Municipal Fund, and Fixed Income Absolute Return Fund). Class B share performance reflects the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declines to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, Putnam Short Duration Bond Fund, and Putnam Fixed Income Absolute Return Fund; for these funds, the CDSC is 1% in the first year, declines to 0.5% in the second year, and is eliminated thereafter). Class C share performance reflects 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 by adjusting for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (note, for two funds — Putnam Tax-Free High Yield Fund and Putnam Strategic Intermediate Municipal Fund performance prior to inception is based on the historical performance of class B shares). Performance for class A, C, R6, and Y shares of Putnam Mortgage Opportunities Fund before their inception is derived from the historical performance of class I shares, which has been adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares. The "after sales charge" performance (at public offering price) for class N shares reflects the current maximum initial sales charge of 1.50%. Class R, R3, R4, R5, and R6 shares, which are 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 R3 and R4 shares prior to their inception is derived from the historical performance of class Y shares by adjusting for the higher operating expenses for such shares. Performance for class R5 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower expenses; had it been adjusted, performance would be higher (with the exception of the RetirementReady Maturity, 2025, 2030, 2035, and 2040 Funds, for which performance is derived from the historical performance of class R6 shares and has been adjusted for the higher operating expenses for such shares; and the RetirementReady 2045, 2050, 2055, and 2060 Funds, for which performance is derived from the historical performance of class R6 shares and has not been adjusted for the lower expenses; had it been adjusted, performance would be higher). Performance for class R6 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would be 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. Had these limits not been in place, performance would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 07/31/22 2.03% -
YTD as of 08/16/22 -10.72% -

Yield

Distribution rate before sales charge
as of 08/16/22
2.18%
Distribution rate after sales charge
as of 08/16/22
2.18%
30-day SEC yield with subsidy
as of 07/31/22
3.36%
30-day SEC yield without subsidy
as of 07/31/22
2.92%

Lipper rankings as of 07/31/22

Time period Rank/Funds in category Percentile ranking
1 yr. 129/224 58%
3 yrs. 168/209 80%
5 yrs. 118/179 66%
10 yrs. 61/137 45%
Lipper category: Global Income Funds

Morningstar Ratings as of 07/31/22

Time period Funds in category Morningstar Rating
Overall 190
3 yrs. 190
5 yrs. 170
10 yrs. 133
Morningstar category: Global Bond

Distributions

Record/Ex dividend date 07/27/22
Payable date 07/29/22
Income $0.019
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

Fnma Fn30 Tba Umbs 05.0000 08/01/2052 22.33%
Fnma Fn30 Tba Umbs 04.5000 08/01/2052 8.15%
Fnma Fn30 Tba Umbs 03.0000 09/01/2052 3.30%
Gnma Gii30 Tba 04.5000 08/01/2052 2.91%
Fnma Fn30 Tba Umbs 03.5000 09/01/2052 2.82%
Gnma Gii30 Tba 03.0000 08/01/2052 2.79%
Fnma Fn30 Tba Umbs 05.5000 09/01/2052 2.36%
Gnma Gii30 Tba 04.0000 08/01/2052 2.31%
Japan (10 Year Issue) 00.1000 03/20/2027 1.99%
Japan (30 Year Issue) 02.3000 03/20/2040 1.74%
Top 10 holdings, percent of portfolio 50.69%



Fixed income statistics as of 07/31/22

Average effective maturity 7.90 yrs.
Average effective duration 6.70 yrs.
Average yield to maturity 4.15%
Average coupon 5.14%

Maturity detail as of 07/31/22

0 - 1 yr. -20.60%
1 - 5 yrs. 80.52%
5 - 10 yrs. 37.57%
10 - 15 yrs. -6.59%
Over 15 yrs. 9.10%

Quality rating as of 07/31/22

AAA 20.36%
AA 12.75%
A 19.12%
BBB 27.77%
BB 4.50%
B 0.88%
CCC and Below 2.60%
Not Rated 3.59%
Net cash 8.43%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging market securities carry illiquidity and volatility risks. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise.

The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers than a diversified fund, it is vulnerable to common economic forces and may result in greater losses and volatility. 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. 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. Unlike bonds, funds that invest in bonds have fees and expenses. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. 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 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 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. Data in the chart reflect a new calculation methodology put into effect 6/30/22.

Country allocation as of 07/31/22

United States 61.22%
Japan 8.02%
France 4.50%
Cayman Islands 4.03%
Italy 3.35%
Spain 2.16%
United Kingdom 2.00%
Canada 1.75%
Switzerland 1.24%
 
Other
11.73%
Indonesia 1.22%
Mexico 1.05%
Netherlands 0.89%
Uruguay 0.84%
Australia 0.73%
Belgium 0.68%
Ireland 0.61%
China 0.56%
Kazakhstan 0.56%
Colombia 0.50%
Austria 0.49%
Germany 0.49%
Dominican Republic 0.45%
Paraguay 0.43%
Côte d'Ivoire 0.36%
Malaysia 0.34%
Sweden 0.34%
Portugal 0.31%
Thailand 0.29%
Bermuda 0.26%
Romania 0.26%
Denmark 0.21%
Poland 0.21%
Brazil 0.19%
New Zealand 0.17%
Finland 0.15%
Nigeria 0.12%
Norway 0.10%
Senegal 0.10%
Hungary -0.01%
South Korea -0.02%
European Community -1.15%

Expenses

Expense ratio

Class A Class B Class C Class R Class R5 Class R6 Class Y
Total expense ratio 1.18% 1.93% 1.93% 1.43% 0.85% 0.78% 0.93%
What you pay† 0.88% 1.63% 1.63% 1.13% 0.55% 0.48% 0.63%

† The fund's expense ratio is taken from the most recent prospectus and is subject to change. What you pay reflects Putnam Management's decision to contractually limit expenses through 02/28/23

Sales charge

 Breakpoint Class A Class B Class C Class R Class R5 Class R6 Class Y
$0-$49,999 4.00% / 3.50% 0.00% / 4.00% 0.00% / 1.00% -- -- -- --
$50,000-$99,999 4.00% / 3.50% 0.00% / 4.00% 0.00% / 1.00% -- -- -- --
$100,000-$249,999 3.25% / 2.75% -- 0.00% / 1.00% -- -- -- --
$250,000-$499,999 2.50% / 2.00% -- 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 $500,000+) Class B Class C Class R Class R5 Class R6 Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- -- --
9 to 12 mts. 1.00% 5.00% 1.00% -- -- -- --
2 yrs. 0.00% 4.00% 0.00% -- -- -- --
3 yrs. 0.00% 3.00% 0.00% -- -- -- --
4 yrs. 0.00% 3.00% 0.00% -- -- -- --
5 yrs. 0.00% 2.00% 0.00% -- -- -- --
6 yrs. 0.00% 1.00% 0.00% -- -- -- --
7+ yrs. 0.00% 0.00% 0.00% -- -- -- --

Trail commissions

  Class A Class B Class C Class R Class R5 Class R6 Class Y
  0.25% 0.25% 1.00% 0.50% 0.00% 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 Bloomberg Global Aggregate Bond Index is an unmanaged index of global investment-grade fixed income securities. You cannot invest directly in an index.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging market securities carry illiquidity and volatility risks. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise.

The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers than a diversified fund, it is vulnerable to common economic forces and may result in greater losses and volatility. 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. 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. Unlike bonds, funds that invest in bonds have fees and expenses. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. 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 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 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. Data in the chart reflect a new calculation methodology put into effect 6/30/22.