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.
Active Income
High Yield Fund (Class Y) (PHAYX)
Seeking a high level of income for investors since 1986
Highlights
Objective
The fund seeks high current income. Capital growth is a secondary goal when consistent with achieving high current income.
Strategy and process
- Income-focused The portfolio managers strive for a higher level of income than most bonds offer by investing in higher-yielding, lower-rated corporate bonds.
- Focus on performance The managers can invest across a range of industries and companies, and can adjust the fund's holdings to capitalize on market opportunities.
- Leading research The fund's managers, supported by Putnam's fixed income research division, analyze a range of bonds to build a diversified portfolio.
Fund price and assets |
Prior close | 52-week high | 52-week low | Net assets and outstanding shares |
|---|---|---|---|---|
| Net asset value |
$5.40
0.19% | $0.01 |
$6.33
01/03/22 |
$5.20
09/29/22 |
Download CSV |
Fund facts as of 10/31/22
$913.05M
48%
Monthly
612
November
74678J401 / 1819
12/31/98
Taxable Income
PHAYX
Management team
Literature
Fund documents |
| Prospectuses/SAI |
| Fact Sheet (R6 share) (PDF) |
| Fact Sheet (YA share) (PDF) |
| Annual Fund Report (PDF) |
| Semiannual Fund Report (PDF) |
Expect a pause, not a pivot, as savings fuel spending
In the coming months, the Fed will not likely pivot, but pause and wait with a high level of rates for convincing signs of disinflation.As inflation takes root, fixed income opportunities change
Fixed income markets experienced widespread declines in the U.S. and globally in the third quarter of 2022, as inflation remained high and became more broad-based.High job openings signal wage-price spiral
Limited labor supply, higher wages, and a high staff turnover seems to have initiated a wage-price spiral.Performance
Consistency of positive performance over five years
Performance shown above does not reflect the effects of any sales charges. Click on the dots to see specific returns in each five-year period as of the date revealed. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please see below.
18.71%
Best 5-year annualized return
(for period ending 12/31/95)
-2.56%
Worst 5-year annualized return
(for period ending 09/30/02)
7.43%
Average 5-year annualized return
Total return (%) as of 09/30/22
Annual performance as of 09/30/22
Annualized Total return (%) as of 09/30/22
| Annualized performance | 1 yr. | 3 yrs. | 5 yrs. | 10 yrs. |
|---|---|---|---|---|
| Before sales charge | -14.16% | -0.92% | 1.07% | 3.29% |
| After sales charge | N/A | N/A | N/A | N/A |
| JPMorgan Developed High Yield Index | -13.08% | -0.32% | 1.65% | 4.11% |
Performance snapshot
| Before sales charge | After sales charge | ||
|---|---|---|---|
| 1 mt. as of 10/31/22 | 2.54% | - | |
| YTD as of 11/25/22 or prior close | -10.94% | - | |
Yield
| Distribution rate before sales charge as of 11/25/22 |
4.89% |
|---|---|
| Distribution rate after sales charge as of 11/25/22 |
4.89% |
| 30-day SEC yield as of 10/31/22 | 7.46% |
Risk-adjusted performance as of 10/31/22
| Sharpe ratio (3 yrs.) | -0.07 |
|---|---|
| Information ratio (3 yrs.) | -0.65 |
Volatility as of 10/31/22
| Standard deviation (3 yrs.) | 10.73% |
|---|---|
| Beta | 0.96 |
| R-squared | 0.99 |
Fixed income statistics as of 10/31/22
| Average effective duration | 4.00 yrs. |
|---|
Lipper rankings as of 10/31/22
| Time period | Rank/Funds in category | Percentile ranking |
|---|---|---|
| 1 yr. | 350/517 | 68% |
| 3 yrs. | 264/487 | 55% |
| 5 yrs. | 221/438 | 51% |
| 10 yrs. | 121/304 | 40% |
Morningstar Ratings™ as of 10/31/22
| Time period | Funds in category | Morningstar Rating™ |
|---|---|---|
| Overall | 633 | |
| 3 yrs. | 633 | |
| 5 yrs. | 583 | |
| 10 yrs. | 405 |
Distributions
| Record/Ex dividend date | 11/22/22 |
|---|---|
| Payable date | 11/25/22 |
| Income | $0.022 |
| 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
| Cco Holdings Llc P/P 144a 05.3750 06/01/2029 | 0.76% |
|---|---|
| Occidental Petroleum Cor 06.2000 03/15/2040 | 0.68% |
| Endeavor Energy P/P 144a 05.7500 01/30/2028 | 0.66% |
| Occidental Petroleum Cor 06.4500 09/15/2036 | 0.64% |
| Teva Pharmaceuticals Ne Usd 05.1250 05/09/2029 | 0.58% |
| Ally Financial 08.0000 11/01/2031 | 0.58% |
| Watco Cos Llc/Fi P/P 144a 06.5000 06/15/2027 | 0.58% |
| Zi Tech/Zi Fin P/P 144a 03.8750 02/01/2029 | 0.57% |
| Staples P/P 144a 07.5000 04/15/2026 | 0.56% |
| Tenet Healthcare Cor P/P 144a 05.1250 11/01/2027 | 0.54% |
| Top 10 holdings, percent of portfolio | 6.15% |
| Top 10 holdings as of 10/31/22 | |
|---|---|
| Cco Holdings Llc P/P 144a 05.3750 06/01/2029 | |
| Occidental Petroleum Cor 06.2000 03/15/2040 | |
| Endeavor Energy P/P 144a 05.7500 01/30/2028 | |
| Occidental Petroleum Cor 06.4500 09/15/2036 | |
| Teva Pharmaceuticals Ne Usd 05.1250 05/09/2029 | |
| Ally Financial 08.0000 11/01/2031 | |
| Watco Cos Llc/Fi P/P 144a 06.5000 06/15/2027 | |
| Zi Tech/Zi Fin P/P 144a 03.8750 02/01/2029 | |
| Staples P/P 144a 07.5000 04/15/2026 | |
| Tenet Healthcare Cor P/P 144a 05.1250 11/01/2027 | |
| Holdings represent 6.15% of portfolio | |
| Top 10 holdings as of 09/30/22 | |
|---|---|
| Cco Holdings Llc P/P 144a 05.3750 06/01/2029 | |
| Occidental Petroleum Cor 06.2000 03/15/2040 | |
| Centene Corp 04.6250 12/15/2029 | |
| Endeavor Energy P/P 144a 05.7500 01/30/2028 | |
| Occidental Petroleum Cor 06.4500 09/15/2036 | |
| Ally Financial 08.0000 11/01/2031 | |
| Ford Motor Credit Llc 04.0000 11/13/2030 | |
| Staples P/P 144a 07.5000 04/15/2026 | |
| Teva Pharmaceuticals Ne Usd 05.1250 05/09/2029 | |
| Zi Tech/Zi Fin P/P 144a 03.8750 02/01/2029 | |
| Holdings represent 6.35% of portfolio | |
| Top 10 holdings as of 08/31/22 | |
|---|---|
| Cco Holdings Llc P/P 144a 05.3750 06/01/2029 | |
| Occidental Petroleum Cor 06.2000 03/15/2040 | |
| Occidental Petroleum Cor 06.4500 09/15/2036 | |
| Centene Corp 04.6250 12/15/2029 | |
| Endeavor Energy P/P 144a 05.7500 01/30/2028 | |
| Ally Financial 08.0000 11/01/2031 | |
| Ford Motor Credit Llc 04.0000 11/13/2030 | |
| Csc Holdings Llc 05.2500 06/01/2024 | |
| Teva Pharmaceuticals Ne Usd 05.1250 05/09/2029 | |
| Zi Tech/Zi Fin P/P 144a 03.8750 02/01/2029 | |
| Holdings represent 6.26% of portfolio | |
| Top 10 holdings as of 07/31/22 | |
|---|---|
| Cco Holdings Llc P/P 144a 05.3750 06/01/2029 | |
| Occidental Petroleum Cor 06.2000 03/15/2040 | |
| Occidental Petroleum Cor 06.4500 09/15/2036 | |
| Endeavor Energy P/P 144a 05.7500 01/30/2028 | |
| Ford Motor Credit Llc 04.0000 11/13/2030 | |
| Ally Financial 08.0000 11/01/2031 | |
| Centene Corp 04.6250 12/15/2029 | |
| Zi Tech/Zi Fin P/P 144a 03.8750 02/01/2029 | |
| Csc Holdings Llc 05.2500 06/01/2024 | |
| Staples P/P 144a 07.5000 04/15/2026 | |
| Holdings represent 6.02% of portfolio | |
Fixed income statistics as of 10/31/22
| Average effective maturity | 5.28 yrs. |
|---|---|
| Average effective duration | 4.00 yrs. |
| Average yield to maturity | 8.11% |
| Average coupon | 5.37% |
Sector weightings as of 10/31/22
| Cash investments | Non-cash investments | Total portfolio | ||||
|---|---|---|---|---|---|---|
| Weight | Spread duration | Weight | Spread duration | Weight | Spread duration | |
| High-yield corporate bonds | 71.74% | 3.20 | 0.44% | 0.02 | 72.18% | 3.21 |
| Investment-grade corporate bonds | 12.37% | 0.65 | 0.00% | 0.00 | 12.37% | 0.65 |
| Bank loans | 5.15% | 0.17 | 0.00% | 0.00 | 5.15% | 0.17 |
| Convertible securities | 2.75% | 0.05 | 0.00% | 0.00 | 2.75% | 0.05 |
| Emerging-market bonds | 1.43% | 0.07 | 0.00% | 0.00 | 1.43% | 0.07 |
| Equity investments | 0.80% | 0.00 | 0.00% | 0.00 | 0.80% | 0.00 |
| Net cash | 5.76% | 0.00 | 0.00% | 0.00 | 5.76% | 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 10/31/22
| 0 - 1 yr. | 8.71% |
|---|---|
| 1 - 5 yrs. | 32.07% |
| 5 - 10 yrs. | 55.77% |
| 10 - 15 yrs. | 1.69% |
| Over 15 yrs. | 1.76% |
Quality rating as of 10/31/22
| A | 0.04% |
|---|---|
| BBB | 13.22% |
| BB | 43.06% |
| B | 26.07% |
| CCC and Below | 8.72% |
| Not Rated | 3.13% |
| Net cash | 5.76% |
Fund characteristics will vary over time.
Due to rounding, percentages may not equal 100%.
Consider these risks before investing: 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.
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 (a significant part of the fund’s investments). 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.
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 (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 10/31/22
| Consumer cyclicals | 20.93% |
|---|---|
| Energy | 13.62% |
| Capital goods | 8.82% |
| Financials | 8.56% |
| Health care | 8.55% |
| Basic materials | 8.42% |
| Communication services | 7.56% |
| Consumer staples | 6.60% |
| Technology | 6.32% |
| Other | 11.06% |
0
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 10/31/22
| United States | 89.25% |
|---|---|
| Canada | 3.89% |
| France | 1.64% |
| Israel | 1.28% |
| Luxembourg | 0.92% |
| Germany | 0.76% |
| Ireland | 0.57% |
| United Kingdom | 0.54% |
| Netherlands | 0.44% |
| Other | 0.71% |
0
Expenses
Expense ratio |
Class A | Class B | Class C | Class M | Class R | Class R6 | Class Y |
|---|---|---|---|---|---|---|---|
| Total expense ratio | 1.01% | 1.76% | 1.76% | 1.26% | 1.26% | 0.66% | 0.76% |
| What you pay | 1.01% | 1.76% | 1.76% | 1.26% | 1.26% | 0.66% | 0.76% |
Sales charge
| Investment Breakpoint | Class A | Class B | Class C | Class M | Class R | 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 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 JPMorgan Developed High Yield Index is an unmanaged index of high-yield fixed income securities issued in developed countries. You cannot invest directly in an index.
Consider these risks before investing: 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.
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 (a significant part of the fund’s investments). 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.
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 (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.