Putnam Income fund

Complement core income strategies with an active fund recognized for long-term performance

Putnam Income Fund offers an all-weather core bond portfolio with active flexibility to invest in corporate and mortgage credit strategies unavailable to most index strategies.

Best Fund over 10 years in the Core Bond Fund category, recognized by Lipper, 2019.

Michael Salm, Co-Head of Fixed Income
Brett Kozlowski, CFA, Portfolio Manager
Emily E. Shanks, Portfolio Manager
Management team (pictured left to right):
Michael V. Salm, Co-Head of Fixed Income
Brett S. Kozlowski, CFA, Portfolio Manager
Emily E. Shanks, Portfolio Manager

Webcast Replay

Complementing core: Insights on today's credit and securitized markets
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Video roundtable with the fund managers

How is Putnam Income Fund differentiated from other core bond funds?

"We invest along risk lines, rather than just exposures."

Brett S. Kozlowski, CFA

How is the investment team organized around the Income Fund?

"Our analysts cover investment-grade companies all the way to distressed. Rigorous analysis allows us to better identify rising stars and avoid fallen angels."

Emily E. Shanks

What are examples of outside-the- index strategies?

"All of this creates great diversification in the fund and gives us an opportunity to utilize true fundamental research."

Brett S. Kozlowski, CFA

Is credit risk a current worry for the team?

"The bigger part of the story is where are we in the credit cycle ... we are relatively constructive on the investment-grade cohort fundamentals."

Emily E. Shanks

Can CMBS perform if retail stores close?

"What you are really investing in is the property itself and the ability of the operator of that property to transition."

Brett S. Kozlowski, CFA

Performance update

Fund outperforms as risk fears recede

  • A more patient tone from the Federal Reserve encouraged a return to risk-taking.
  • Mortgage credit strategies fueled the fund's relative out performance. Corporate credit also added value.
  • We believe concerns about the growth of BBB-rated bonds in the investment-grade corporate market may be overblown.

What was the fund's investment environment like during the first quarter of 2019?

Following a pretty severe downturn in 2018's fourth quarter, markets rebounded impressively in the first quarter. In fact, January was one of the strongest months for risk assets in nearly 30 years

Investor sentiment improved markedly following comments from U.S. Federal Reserve Chair Jerome Powell that mild inflation would give the central bank greater flexibility to set policy in 2019. Market participants also welcomed Powell's announcement that the Fed was not on a "pre-set" path to push its benchmark rate higher, after hiking rates every quarter in 2018. Progress in U.S.-China trade talks provided a further boost to sentiment across risk-driven markets.

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Market outlook and resources

Bonds rally as the Fed hits the pause button

Bonds rally as the Fed hits the pause button

The outlook for global growth has cooled in 2019.

Fixed Income Outlook | Q2 2019
Trade tensions could reduce global GDP

Trade tensions could reduce global GDP

There is a significant likelihood that U.S.-China trade tensions will remain high. Effects on global GDP effects are uncertain, but could exceed 1%.

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