Active Income

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 sub-sector allocations and macro strategies also serving as potential alpha generators.

Fund price

 Yesterday’s close 52-week high 52-week low
Net asset value $12.30
0.00% | $0.00 		$12.46
08/15/19 		$11.42
11/27/18
Historical fund price

Fund facts as of 10/31/19

Total net assets
$230.61M
Turnover (fiscal year end)
451%
Dividend frequency (view rate)
Monthly
Number of holdings
999
Fiscal year-end
October
CUSIP / Fund code
74677Q604 / 1820
Inception date
10/04/05
Category
Taxable Income
Open to new investors
Ticker
PGGYX

Management team

D. William Kohli

Chief Investment Officer, Fixed Income

Michael J. Atkin

Portfolio Manager

Robert L. Davis, CFA

Portfolio Manager

Michael V. Salm

Co-Head of Fixed Income

Paul D. Scanlon, CFA

Co-Head of Fixed Income

Manager commentary | Q3 2019

Why trade talks might fail

Bill Kohli, Chief Investment Officer, Fixed Income, explains why trade will likely continue to be an ongoing issue.

Literature

How the Japan election may influence global interest rates
The Japan election could have consequences for the future leadership of the Bank of Japan and the country's impact on global interest rate trends.
Why Brazil's crisis creates new concerns
The revelations of May 17 may pose a threat to President Temer's administration, and therefore a threat to Brazil's short- and medium-term economic outlook.
See the dove in the Fed's dot plot
The market sees a more hawkish Fed in the December 2016 rate hike, but we see see signs of a dove in the Fed's dot plot.

Performance

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)

0.22%

Worst 5-year annualized return

(for period ending 12/31/01)

5.88%

Average 5-year annualized return

  • Total return (%) as of 09/30/19

  • Annual performance as of 09/30/19

Annualized Total return (%) as of 09/30/19

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 8.27% 3.28% 2.45% 4.23%
After sales charge N/A N/A N/A N/A
Bloomberg Barclays Global Aggregate Index 7.60%1.59%1.99%2.34%

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 10/31/19 0.20% -
YTD as of 11/15/19 8.61% -

Yield

Distribution rate before sales charge
as of 11/15/19		 2.34%
Distribution rate after sales charge
as of 11/15/19		 2.34%
30-day SEC yield with subsidy
as of 10/31/19		 1.82%
30-day SEC yield without subsidy
as of 10/31/19		 1.81%

Risk-adjusted performance as of 10/31/19

Sharpe ratio (3 yrs.) 0.74
Information ratio (3 yrs.) 0.75

Volatility as of 10/31/19

Standard deviation (3 yrs.) 3.51%
Beta 0.75
R-squared 0.83

Lipper rankings as of 10/31/19

Time period Rank/Funds in category Percentile ranking
1 yr. 80/207 39%
3 yrs. 30/171 18%
5 yrs. 48/159 30%
10 yrs. 26/94 28%
Lipper category: Global Income Funds

Morningstar Ratings™ as of 10/31/19

Time period Funds in category Morningstar Rating™
Overall 184
3 yrs. 184
5 yrs. 174
10 yrs. 103
Morningstar category: World Bond

Distributions

Record/Ex dividend date 10/28/19
Payable date 10/30/19
Income $0.024
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.

Holdings

Japan (10 Year Issue) 01.0000 09/20/2021 2.88%
Japan (10 Year Issue) 00.8000 09/20/2023 2.72%
Japan (30 Year Issue) 02.3000 03/20/2040 2.29%
Fnma Fn30 Tba Umbs 04.0000 11/01/2049 2.25%
Fnma Fn30 Tba Umbs 03.0000 12/01/2049 2.20%
Japan (20 Year Issue) 02.3000 06/20/2027 1.79%
European Investment Bank Gbp 05.6250 06/07/2032 1.65%
Japan (20 Year Issue) 02.2000 03/20/2031 1.34%
Japan (40 Year Issue) 02.2000 03/20/2051 1.33%
Uk Tsy 4 2060 Regs 04.0000 01/22/2060 1.27%
Top 10 holdings, percent of portfolio 19.72%

Holdings information

 (PDF)

Fixed income statistics as of 10/31/19

Average effective maturity 8.06 yrs.
Average effective duration 5.92 yrs.
Average yield to maturity 2.24%
Average coupon 3.53%

Sector weightings as of 10/31/19

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
International Treasury/agency 34.45% 3.09 0.00% -0.53 34.45% 2.56
Investment-grade corporate bonds 22.12% 1.87 0.00% 0.00 22.12% 1.87
Commercial MBS 9.14% 0.27 4.81% 0.09 13.95% 0.36
Residential MBS (non-agency) 7.87% 0.21 0.00% 0.00 7.87% 0.21
Agency pass-through 0.89% 0.04 4.72% 0.17 5.61% 0.21
Agency CMO 5.44% 0.18 0.08% 0.00 5.52% 0.18
Emerging-market bonds 4.66% 0.27 0.00% 0.00 4.66% 0.27
High-yield corporate bonds 2.26% 0.09 0.03% 0.00 2.29% 0.09
Asset-backed securities (ABS) 1.68% 0.04 0.00% 0.00 1.68% 0.04
Interest rate swaps 0.00% 0.00 0.00% -0.26 0.00% -0.26
U.S. Treasury/agency 0.00% 0.00 0.00% 0.83 0.00% 0.83
Net cash 11.48% 0.00 0.00% 0.00 11.48% 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 10/31/19

0 - 1 yr. 8.80%
1 - 5 yrs. 37.93%
5 - 10 yrs. 33.74%
10 - 15 yrs. 4.30%
Over 15 yrs. 15.23%

Quality rating as of 10/31/19

AAA 19.77%
AA 9.28%
A 29.04%
BBB 26.39%
BB 5.61%
B 0.47%
CCC and Below 1.49%
Not Rated 7.95%

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. 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. 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 10/31/19

United States 56.37%
Japan 14.14%
France 3.98%
Italy 3.19%
Canada 2.66%
United Kingdom 2.52%
Spain 2.49%
Greece 1.95%
Supra-Nation 1.92%
 
Other		 10.78%
Mexico 1.46%
Switzerland 1.19%
Australia 1.02%
Brazil 0.96%
Belgium 0.87%
Netherlands 0.64%
Indonesia 0.56%
Bermuda 0.55%
Austria 0.47%
South Africa 0.46%
Sweden 0.44%
Ireland 0.29%
Malaysia 0.29%
Ivory Coast 0.28%
Portugal 0.24%
Poland 0.23%
Russia 0.21%
Denmark 0.20%
Luxembourg 0.15%
Senegal 0.11%
Uruguay 0.11%
Germany 0.10%
New Zealand 0.09%
Norway 0.09%
South Korea 0.03%
Thailand 0.01%
China -0.02%
Czech Republic -0.08%
European Community -0.17%

Expenses

Expense ratio

 Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
Total expense ratio 1.24% 1.99% 1.99% 1.49% 1.49% 0.88% 0.82% 0.99%
What you pay† 1.22% 1.97% 1.97% 1.47% 1.47% 0.86% 0.80% 0.97%

† 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 02/28/20

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
$0-$49,999 4.00% 0.00% 0.00% 3.25% -- -- -- --
$50,000-$99,999 4.00% 0.00% 0.00% 2.25% -- -- -- --
$100,000-$249,999 3.25% -- 0.00% 1.25% -- -- -- --
$250,000-$499,999 2.50% -- 0.00% 1.00% -- -- -- --
$500,000-$999,999 0.00% -- -- -- -- -- -- --
$1M-$4M 0.00% -- -- -- -- -- -- --
$4M-$50M 0.00% -- -- -- -- -- -- --
$50M+ 0.00% -- -- -- -- -- -- --

CDSC

  Class A (sales for $500,000+) Class B Class C Class M 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% -- -- -- -- --

The Bloomberg Barclays 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. 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. 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.