Floating Rate Income Fund  (PFLRX)

An income fund that can benefit from higher interest rates

Objective

The fund seeks high current income. Preservation of capital is a secondary goal.

Strategy and process

  • Floating-rate bank loans: The fund invests in bank loans with yields that are set at a margin above short-term interest rates and adjust when rates change.
  • Protection from interest rates: Bank loans have historically performed well amid rising interest rates because their yields adjust higher and become more attractive.
  • Backed by team research: The fund's experienced managers select a diverse range of loans using careful credit research.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $8.59
0.00% | $0.00
$8.65
01/19/17
$8.58
08/28/17
Historical fund price

Fund facts as of 11/30/17

Total net assets
$819.10M
Turnover (fiscal year end)
49%
Dividend frequency (view rate)
Monthly
Number of issues
270
Fiscal year-end
February
CUSIP / Fund code
746763481 / 0057
Inception date
08/04/04
Category
Taxable Income
Open to new investors
Ticker
PFLRX

Management team


Co-Head of Fixed Income

Portfolio Manager

Portfolio Manager


Literature


Market sectors that might lead in 2018
Technology’s strength seems set to continue, but with the prospect of rising rates, financials may also be among the leading market sectors.
Just how cheap are European equities?
Our analysis finds that industry group weightings play a significant role in valuation discrepancies between U.S. and European equities.
What could disturb unprecedented calm in markets?
What’s most remarkable about 2017 is the market calm, but this is not a sign that the trend will revert to the mean.

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.

12.52%

Best 5-year annualized return

(for period ending 12/31/13)


1.94%

Worst 5-year annualized return

(for period ending 09/30/11)


4.22%

Average 5-year annualized return


  • Total return (%) as of 09/30/17

  • Annual performance as of 09/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 3.90% 2.97% 3.39% 3.38%
After sales charge 2.86% 2.62% 3.18% 3.28%
S&P/LSTA Leveraged Loan Index 5.29% 3.87% 4.09% 4.72%

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. To obtain the most recent month-end performance, visit putnam.com. 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 Absolute Return 500 Fund and 700 Fund, and 4.00% and 3.25% for income funds (1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 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 Absolute Return 100 Fund and 300 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, T1, 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. Class A, M, and T1 shares of Putnam money market funds have no initial sales charge. 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 11/30/17 0.10 % -0.91 %
YTD as of 12/13/17 3.08 % 2.05 %

Yield

Distribution rate before sales charge
as of 12/13/17
3.93%
Distribution rate after sales charge
as of 12/13/17
3.89%
30-day SEC yield as of 11/30/17
(after sales charge)
3.43%

Risk-adjusted performance as of 10/31/17

Sharpe ratio (3 yrs.) 0.96
Information ratio (3 yrs.) -1.52

Volatility as of 10/31/17

Standard deviation (3 yrs.) 2.88%
Beta 0.99
R-squared 0.95

Lipper rankings as of 10/31/17

Loan Participation Funds Percentile ranking Rank/Funds in category
1 yr. 80% 181/228
3 yrs. 68% 140/207
5 yrs. 62% 99/160
10 yrs. 60% 39/64

Morningstar ratings as of 10/31/17

Bank Loan Rating Funds in category
Overall (209)
3 yrs. (209)
5 yrs. (160)
10 yrs. (64)

Distributions

Accrual days 30
Accrual start date 11/01/17
Accrual end date 11/30/17
Payable date 11/30/17
Income $0.02819775
Extra taxable income $0.0
Dividend frequency Monthly

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

Top 10 holdings as of 10/31/17

Cequel Communications 1.25%
Scientific Games 1.18%
Transdigm 0.98%
Univision Communications Inc 0.97%
Brand Holdings 0.96%
Beacon Roofing Supply 0.96%
Ortho-Clinical Diagnostics 0.93%
Sprint Communications 0.90%
Chesapeake Energy 0.83%
Vistra Energy 0.82%
Top 10 holdings, percent of portfolio 9.78%

Full portfolio holdings as of 09/30/17

TRANSDIGM TLG L+300 04.2639 08/22/2024 0.98%
BRAND ENERGY TL L+425 05.5219 06/21/2024 0.97%
UNIVISION TLC5 L+275 03.9850 03/15/2024 0.96%
ORTHO-CLINICAL TLB L+375 05.0828 06/30/2021 0.93%
SPRINT TLB L+250 03.7500 02/02/2024 0.90%
CHESAPEAKE ENERGY 1.5L L+750 08.5000 08/23/2021 0.83%
BWAY CORP TLB L+325 04.5986 04/03/2024 0.81%
SCIENTIFIC GAMES TLB4 L+325 04.5144 08/14/2024 0.80%
QUIKRETE TLB L+275 03.9850 11/15/2023 0.78%
ENERGY TRANSFER EQ TL L+275 02.7500 02/02/2024 0.76%
PPDI TL L+275 04.0368 08/18/2022 0.75%
REVLON CONS TLB L+350 04.7350 09/07/2023 0.75%
MEG ENERGY TLB L+350 04.8328 12/31/2023 0.73%
RACKSPACE TLB L+300 04.3106 11/03/2023 0.73%
DELL INTERNATIONAL LLC L+250 03.7400 09/07/2023 0.72%
SFR GROUP SA TLB11 L+275 03.9062 06/22/2025 0.72%
SOLERA HOLDINGS TLB L+325 04.4850 03/03/2023 0.72%
VERTIV TLB L+400 05.2350 11/30/2023 0.72%
WIDEOPENWEST TLB L+325 04.4844 08/19/2023 0.71%
BUILDERS FIRSTSOURCE L+300 04.3328 02/29/2024 0.70%
CERIDIAN TLB2 L+350 04.7372 09/15/2020 0.70%
INTELSAT JACKSON TLB2 L+275 04.0711 06/30/2019 0.69%
ENDO PHARMA TLB L+425 05.5000 04/27/2024 0.68%
CLEAR CHANNEL TLD L+675 08.0828 01/30/2019 0.66%
COMMUNITY HEALTH TLH L+300 04.3169 01/27/2021 0.66%
KMG CHEMICALS TLB L+425 05.4850 06/15/2024 0.66%
MULTIPLAN TLB L+300 04.3328 06/07/2023 0.65%
NAVISTAR TLB L+400 05.2400 08/07/2020 0.65%
SINCLAIR BROADCASTING TLB2 L+225 03.2473 01/31/2024 0.65%
NEIMAN MARCUS TL L+325 04.4878 10/25/2020 0.64%
CAESARS GROWTH PROP TL L+300 04.2350 05/08/2021 0.62%
GATES GLOBAL TLB L+325 04.5828 03/31/2024 0.62%
NRG ENERGY TLB L+225 03.0283 06/30/2023 0.62%
YONKERS RACING CORP L+325 04.4900 05/31/2024 0.62%
CITYCENTER TLB L+250 03.7350 04/18/2024 0.61%
INFOR TLB6 L+275 03.7500 02/01/2022 0.61%
CARAUSTAR TL L+550 06.8328 03/09/2022 0.60%
CPG INTL TL L+375 05.0828 05/03/2024 0.60%
GREEKTOWN TLB L+300 03.7500 04/25/2024 0.60%
LPL HOLDINGS INC TLB L+225 03.6524 09/21/2024 0.60%
RESTAURANT BRANDS TLB L+225 03.5231 02/17/2024 0.60%
TMS INTL TLB L+300 04.3091 08/14/2024 0.60%
VALEANT PHARMA TLBF1 L+475 05.9900 04/01/2022 0.60%
WASTE INDUSTRIES TLB L+300 04.2344 09/19/2024 0.60%
YUM BRANDS TLB L+200 03.2344 06/16/2023 0.60%
ALLIANT HOLD TL L+325 04.5639 08/14/2022 0.59%
ASSOC ASPHALT TLB L+525 06.4850 04/05/2024 0.59%
STERIGENICS TLB L+300 04.2350 05/15/2022 0.59%
ZEKELMAN TLB L+275 03.7500 06/14/2021 0.59%
AKORN INC TLB L+425 05.5000 04/16/2021 0.58%
CASELLA WASTE TLB L+275 03.9844 10/17/2023 0.58%
CCC INFO 1STL L+300 04.2400 03/30/2024 0.58%
CENTURYLINK TLB L+275 02.7500 01/31/2025 0.58%
AIR MEDICAL TLB L+350 04.4850 04/28/2022 0.57%
DIAMOND RESORTS TLB L+600 07.2350 09/02/2023 0.57%
JO-ANN STORES TL L+500 06.3907 10/21/2023 0.57%
KINETIC CONCEPTS TLB L+325 04.2846 02/03/2024 0.57%
STEINWAY MUSIC 1STL L+375 04.7500 09/19/2019 0.56%
CHUCK E CHEESE'S TLB L+300 04.2350 02/14/2021 0.55%
KRONOS TLB L+350 04.8114 11/01/2023 0.55%
WERNER TLB L+400 05.2583 07/24/2024 0.55%
FREEDOM MORTGAGE TLB L+550 06.9564 02/23/2022 0.54%
TRAVELPORT TLB L+275 04.0606 09/02/2021 0.54%
UNIVAR INC TLB L+275 03.6083 07/01/2022 0.53%
CSC HOLDINGS TLB L+225 03.4844 06/15/2025 0.52%
JELD-WEN TLB L+300 04.3328 07/01/2022 0.52%
LIGHTOWER TLB L+325 04.4850 04/13/2020 0.52%
TEMPO ACQUISITION TLB L+300 04.2350 05/01/2024 0.52%
COVERIS TL L+425 05.5828 06/26/2022 0.51%
EXTENDED STAY TLB L+250 03.7350 08/30/2023 0.50%
GFL ENVIRONMENT TLB L+275 03.7500 09/27/2023 0.50%
BMC SOFTWARE TLB L+400 05.2350 09/10/2022 0.49%
CAESARS ENT OPER TLB6B L+775 11.7500 03/01/2018 0.49%
DYNEGY TLC L+325 04.4850 02/07/2024 0.49%
FIRST DATA TL L+250 03.7372 04/26/2024 0.49%
GATEWAY CASINO TLB1 L+375 04.7500 02/22/2023 0.49%
HUB INTL TLB L+300 04.3117 10/02/2020 0.49%
WORLD KITCHEN TLB L+400 05.3106 05/02/2024 0.49%
ATLANTIC BROADBAND TLB L+238 02.3750 08/10/2024 0.48%
ATOTECH TLB1 L+300 04.3328 01/31/2024 0.48%
CHARTER COMM TLI L+225 03.4900 01/15/2024 0.48%
DIVERSEY TL L+300 03.0000 09/06/2024 0.48%
EAGLECLAW MID TL L+425 05.5222 06/08/2024 0.48%
GRIFOLS TLB L+225 03.2879 01/31/2025 0.48%
JBS USA TLB L+250 03.8039 10/30/2022 0.48%
PAREXEL TLB L+300 04.2350 09/29/2024 0.48%
PENN NATL TLB L+250 03.2500 01/19/2024 0.48%
SUDDENLINK TLB L+225 03.4850 07/28/2025 0.48%
USI INC TLB L+300 04.3142 05/16/2024 0.48%
VIRGIN MEDIA TLI L+275 03.9844 01/31/2025 0.48%
AIR METHODS TLB L+350 04.7964 04/21/2024 0.47%
BASS PRO TLB L+500 06.2350 11/14/2023 0.46%
BJ'S WHOLESALE 1STL L+375 04.9878 02/03/2024 0.46%
ACADEMY SPORTS TLB L+400 05.2737 07/02/2022 0.45%
FORTERRA TL L+300 04.2350 10/25/2023 0.45%
ADS WASTE TLB L+275 03.5000 10/28/2023 0.44%
LANDRY'S TLB L+275 03.9925 10/04/2023 0.44%
CBS RADIO TLB L+350 04.5000 10/17/2023 0.42%
GARDA WORLD TLB L+400 05.3106 05/03/2024 0.42%
HD SUPPLY WATERWORKS TLB L+300 04.0000 08/01/2024 0.42%
LIBBEY GLASS TLB L+300 04.2378 04/09/2021 0.42%
CAPITAL AUTO 2NDL L+600 07.2400 03/24/2025 0.41%
COMMSCOPE TLB5 L+200 03.2350 12/29/2022 0.41%
HILTON WORLDWIDE TLB2 L+200 03.2578 10/25/2023 0.41%
INDUS CONT SERV TL L+400 05.0000 04/28/2024 0.41%
SOLENIS 1STL L+325 04.5669 07/31/2021 0.41%
VISTRA TLB L+275 03.5000 08/04/2023 0.41%
REYNOLDS GRP ISS/REY P/P 144A 04.8036 07/15/2021 0.40%
HCA INC 06.5000 02/15/2020 0.39%
GOLDMAN SACHS GROUP INC 03.0639 10/28/2027 0.38%
JPMORGAN CHASE & CO 05.3000 12/29/2049 0.38%
REYNOLDS GROUP TL L+300 03.9850 02/05/2023 0.38%
CITIGROUP INC 02.7461 09/01/2023 0.37%
SCIENTIFIC GAMES INT P/P 144A 07.0000 01/01/2022 0.37%
ADT/PRIME SECURITY TLB L+275 03.9850 05/02/2022 0.36%
ANHEUSER-BUSCH INBEV FIN 01.9000 02/01/2019 0.36%
BCP RENAISSANCE TLB L+400 05.0000 09/20/2024 0.36%
BERRY PLASTICS TLM L+225 01.3119 10/01/2022 0.36%
CLUBCORP TLB L+325 04.5877 09/18/2024 0.36%
CONCORDIA HEALTH TLB L+425 05.4850 10/21/2021 0.36%
DOOSAN BOBCAT TLB L+275 04.0828 05/12/2024 0.36%
MGM GROWTH PROP TLB L+225 03.4850 05/01/2023 0.36%
MITSUBISHI UFJ FIN GRP USD 02.3767 09/13/2021 0.36%
NIELSEN FIN TLB4 L+200 03.2378 10/04/2023 0.36%
TEREX TLB L+225 03.5828 01/31/2024 0.36%
VENATOR MATERIALS TLB L+300 04.2872 08/08/2024 0.36%
AMAYA GAMING TLB L+350 04.8328 08/01/2021 0.35%
AMERICAN CASINO TLB L+225 06.5000 07/07/2022 0.35%
BEACON ROOFING TLB L+275 03.9872 10/01/2022 0.35%
BOYD GAMING TLB L+250 03.7033 09/15/2023 0.35%
SYNCHRONOSS TLB L+275 03.7718 01/19/2024 0.35%
AMERICAN TIRE DIST TL L+425 05.2500 09/01/2021 0.34%
GETTY IMAGES TLB L+350 04.7500 10/18/2019 0.34%
ISTAR INC TLB L+300 04.2339 10/01/2021 0.34%
JC PENNEY TLB L+425 05.5678 06/23/2023 0.34%
WELBILT TLB L+300 03.9811 03/03/2023 0.34%
CALPINE CONSTRUCT TLB2 L+250 03.7400 01/31/2022 0.33%
JACK OHIO FIN LLC/FI P/P 144A 06.7500 11/15/2021 0.33%
TOWNSQUARE TLB L+300 04.2722 04/01/2022 0.33%
TRONOX FIN TLB L+300 04.3192 09/14/2024 0.33%
RIVERS PITTSBURGH LP P/P 144A 06.1250 08/15/2021 0.32%
UFC 1STL L+325 04.4900 08/18/2023 0.31%
CABLE ONE TLB L+225 03.5700 05/01/2024 0.30%
PETSMART INC TLB L+300 04.2460 03/11/2022 0.30%
TRINSEO TLB L+250 03.7097 08/17/2024 0.30%
VISTRA TLB2 L+275 04.0093 12/14/2023 0.30%
ASURION TLB5 L+300 04.2350 11/03/2023 0.29%
CHEMOURS TLB L+250 03.7400 05/12/2022 0.29%
COLUMBUS MCKINNON TLB L+300 04.3328 01/20/2024 0.29%
CALPINE CONS FIN TLB1 L+225 03.4900 05/03/2020 0.28%
MURRAY ENERGY TLB2 L+725 08.5828 04/17/2020 0.28%
SYNIVERSE HLDG TL L+300 04.3328 04/23/2019 0.28%
TALBOTS INC 1STL L+450 05.7350 03/19/2020 0.28%
CAPITAL AUTO 1STL L+300 04.2350 03/24/2024 0.27%
MOTOR CITY TLB L+275 03.9850 08/09/2021 0.27%
ARCELORMITTAL USD 06.0000 03/01/2021 0.26%
DISH DBS CORP 05.1250 05/01/2020 0.26%
FORD MOTOR CREDIT CO LLC 02.2428 11/04/2019 0.26%
ROBERTSHAW 1STL L+450 05.7500 08/10/2024 0.26%
SOLENIS 2NDL L+675 08.0669 07/31/2022 0.26%
ALLY FINANCIAL INC 04.7500 09/10/2018 0.25%
ASURION 2NDL L+600 07.3000 08/04/2025 0.25%
AVAYA TLB7 L+525 06.5639 05/29/2020 0.25%
BARCLAYS PLC USD 03.4194 08/10/2021 0.25%
CABLEVISION SYS CORP 08.0000 04/15/2020 0.25%
ELDORADO RESORTS TLB L+225 03.5000 04/17/2024 0.25%
GLP CAP LP / FIN II 04.3750 11/01/2018 0.25%
LIONS GATE TLB L+300 04.2389 12/08/2023 0.25%
MISYS 2NDL L+725 08.4588 06/13/2025 0.25%
ON SEMICONDUCTOR TLB L+225 03.4850 03/31/2023 0.25%
ONEMAIN FIN HLDG INC P/P 144A 06.7500 12/15/2019 0.25%
WELLS FARGO & COMPANY 02.6561 03/04/2021 0.25%
ABC SUPPLY TLB L+250 03.7350 10/31/2023 0.24%
ALLERGAN FUNDING SCS USD 02.5653 03/12/2020 0.24%
CONSOL CONTAINER TLB L+350 04.7350 05/22/2024 0.24%
HORSESHOE BALTIMORE TL L+400 05.2306 07/07/2024 0.24%
ISTAR INC 04.6250 09/15/2020 0.24%
KINDER MORGAN INC 02.5894 01/15/2023 0.24%
KRAFT HEINZ FOODS CO 02.1294 08/10/2022 0.24%
MICRON TECH TLB L+250 03.7400 04/26/2022 0.24%
MISYS 1STL L+350 04.8169 06/16/2024 0.24%
NEW ARCLIN 1STL L+425 05.5828 02/14/2024 0.24%
PENSKE AUTOMOTIVE GROUP 03.7500 08/15/2020 0.24%
REMAX LLC TLB L+275 03.5000 11/30/2023 0.24%
RITE AID 2NDL L+387.5 04.8750 06/07/2021 0.24%
ZEP INC TLB L+400 05.2350 08/08/2024 0.24%
ENTERCOM RADIO TLB L+350 04.7326 11/01/2023 0.23%
GENERAL ELECTRIC CO 01.6917 05/05/2026 0.23%
HD SUPPLY TLB3 L+225 03.5828 08/13/2021 0.23%
RITE AID 2NDL L+475 05.9900 08/21/2020 0.23%
TRIBUNE MEDIA TLB L+300 04.2350 01/27/2024 0.23%
COMMUNITY HEALTH TLG L+275 04.0669 12/31/2019 0.22%
NATIONSTAR MORT/CAP CORP 06.5000 08/01/2018 0.22%
AVAYA INC TLB6 L+550 06.8139 03/31/2018 0.21%
CEMEX FINANCE LLC P/P 144A 09.3750 10/12/2022 0.21%
GREAT LAKES D&D 08.0000 05/15/2022 0.21%
HUNTSMAN CORP TLB2 L+300 04.2339 04/01/2023 0.21%
TALBOTS INC 2NDL L+850 09.7350 03/19/2021 0.21%
AVAYA INC P/P 144A 07.0000 04/01/2019 0.20%
CCC INFO 2NDL L+675 07.9850 03/30/2025 0.20%
DCP MIDSTREAM P/P 144A 09.7500 03/15/2019 0.20%
PLATFORM SPEC TLB6 L+300 04.2350 06/07/2023 0.20%
SM ENERGY CO 06.5000 11/15/2021 0.20%
ENDEAVOR ENERGY RESO P/P 144A 07.0000 08/15/2021 0.19%
GFL ENVIRONMENTAL P/P 144A 09.8750 02/01/2021 0.19%
KRONOS 2NDL L+825 09.5606 11/01/2024 0.19%
FORMULA ONE TLB L+300 04.2350 02/01/2024 0.18%
PLATFORM SPEC TLB7 L+250 03.7322 06/07/2020 0.18%
TMX FIN/TITLEMAX P/P 144A 08.5000 09/15/2018 0.17%
OASIS PETROLEUM INC 06.5000 11/01/2021 0.16%
USI INC TLB L+300 04.0000 05/16/2024 0.16%
AMER ENERGY MARC 1STL L+425 05.4850 08/04/2020 0.15%
ICAHN ENTER/FIN 06.0000 08/01/2020 0.15%
TRONOX BLOCKED TLB L+300 04.3231 09/14/2024 0.15%
WPX ENERGY INC 07.5000 08/01/2020 0.15%
ALLNEX TLB2 L+325 04.5672 09/13/2023 0.14%
ASURION TLB4 L+275 03.9850 08/04/2022 0.14%
FRAC TECH INTL TLB L+475 05.9850 04/16/2021 0.14%
GCP APPLIED TECH P/P 144A 09.5000 02/01/2023 0.14%
INFOR SOFTWARE P/P 144A 07.1250 05/01/2021 0.14%
ALLEGHENY TECHNOLOGIES INC 09.3750 06/01/2019 0.13%
BOMBARDIER INC P/P 144A 08.7500 12/01/2021 0.13%
CALATLANTIC GROUP INC 08.3750 05/15/2018 0.13%
CALIFORNIA RESOURCES L+1038 11.6094 12/31/2021 0.13%
CNO FINANCIAL GROUP INC 04.5000 05/30/2020 0.13%
HUNTSMAN INTERNATIONAL LLC 04.8750 11/15/2020 0.13%
J CREW TLB L+300 04.2437 03/05/2021 0.13%
RANGE RESOURCES CORP 05.7500 06/01/2021 0.13%
VALEANT PHARMA P/P 144A 06.5000 03/15/2022 0.13%
VANTAGE DRILLING INT-UNIT 0.13%
AVANTOR TL L+400 05.0000 09/20/2024 0.12%
BERRY PLASTICS TLN L+225 03.5619 01/19/2024 0.12%
BIG RIVER STEEL TLB L+500 06.3328 08/15/2023 0.12%
CLEAR CHNL WORLD 07.6250 03/15/2020 0.12%
FTS INTL INC P/P 144A 08.8200 06/15/2020 0.12%
GOLDEN NUGGET TL L+325 04.4883 10/04/2023 0.12%
HD SUPPLY TLB4 L+250 03.8328 10/17/2023 0.12%
NEW ARCLIN 2NDL L+875 10.0828 02/14/2025 0.12%
OXBOW CARBON 2NDL L+700 08.0000 01/19/2020 0.12%
RING CONTAINER TL L+275 02.7500 09/29/2024 0.12%
TI AUTO TLB L+275 03.9839 06/30/2022 0.12%
VALEANT PHARMA P/P 144A 07.0000 10/01/2020 0.12%
WELBILT TLB L+275 03.9850 03/03/2023 0.12%
DIEBOLD INC TLB L+275 04.0000 11/06/2023 0.11%
FIRST DATA TL L+225 03.4872 07/10/2022 0.11%
TRAVERSE TLB L+400 05.0000 09/27/2024 0.11%
ALLNEX TLB3 L+325 04.2500 09/13/2023 0.10%
NAVISTAR INTERNATIONAL CORP 08.2500 11/01/2021 0.10%
AMERICAN AXLE & MFG INC 07.7500 11/15/2019 0.09%
BRIGGS & STRATTON CORPORATION 06.8750 12/15/2020 0.09%
BROOKFIELD RESID P/P 144A 06.5000 12/15/2020 0.09%
HUB INTL ADD-ON TLB L+325 04.2500 10/02/2020 0.09%
SEVEN GENS ENER P/P 144A 08.2500 05/15/2020 0.09%
VISTRA TLC L+275 04.0839 08/04/2023 0.09%
ZUFFA (UFC) 2NDL L+750 08.7372 08/18/2024 0.09%
CHC GRP LLC/FIN P/P USD 00.0000 10/01/2020 0.08%
DHX MEDIA TLB L+375 04.9850 12/22/2023 0.08%
ROBERTSHAW 2NDL L+900 10.2500 02/04/2025 0.08%
CEMEX SAB DE CV P/P 144A 06.0536 10/15/2018 0.07%
INDUS CONT SERV DD L+400 05.0000 04/25/2024 0.07%
AIR MEDICAL GROUP TLB1 L+400 05.2372 04/28/2022 0.06%
AIR MEDICAL TLB L+425 05.2500 09/26/2024 0.06%
CIT GROUP INC P/P 144A 05.5000 02/15/2019 0.06%
DEL MONTE 2NDL L+725 08.6900 08/18/2021 0.06%
TRIBUNE MEDIA TLB L+300 04.2350 12/27/2020 0.03%
STANDARD IND INC P/P 144A 05.1250 02/15/2021 0.02%
TRIBUNE CLASS 1C LITIGAT 0.02%
CHC GROUP LLC P/P 0.01%
TXU TCEH RIGHTS 0.01%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
Cequel Communications
Scientific Games
Transdigm
Univision Communications Inc
Brand Holdings
Beacon Roofing Supply
Ortho-Clinical Diagnostics
Sprint Communications
Chesapeake Energy
Vistra Energy
Holdings represent 9.78% of portfolio
Top 10 holdings as of 09/30/17
Cequel Communications
Scientific Games
Caesars Entertainment Corp
Transdigm
Brand Holdings
Univision Communications Inc
Ortho-Clinical Diagnostics
Sprint Communications
Community Health Systems
Valeant Pharmaceuticals International
Holdings represent 10.00% of portfolio
Top 10 holdings as of 08/31/17
Transdigm Tlg L+300 04.2639 08/16/2024
Brand Energy Tl L+425 05.5219 06/21/2024
Univision Tlc5 L+275 03.9889 03/15/2024
Ortho-Clinical Tlb L+375 05.0464 06/30/2021
Sprint Tlb L+250 03.7500 02/02/2024
Bway Corp Tlb L+325 04.4806 04/03/2024
Chesapeake Energy 1.5l L+750 08.5000 08/23/2021
Scientific Games Tlb4 L+325 04.5122 08/14/2024
Quikrete Tlb L+275 03.9889 11/15/2023
Energy Transfer Eq Tl L+275 02.7500 02/02/2024
Holdings represent 8.65% of portfolio
Top 10 holdings as of 07/31/17
Univision Tlc5 L+275 03.9839 03/15/2024
Brand Energy Tl L+425 05.5070 06/21/2024
Ortho-Clinical Tlb L+375 05.0464 06/30/2021
Sprint Tlb L+250 03.7500 02/02/2024
Chesapeake Energy 1.5l L+750 08.5000 08/23/2021
Bway Corp Tlb L+325 04.4739 04/03/2024
Scientific Games Tlb4 L+325 04.5606 08/14/2024
Quikrete Tlb L+275 03.9839 11/15/2023
Energy Transfer Eq Tl L+275 02.7500 02/02/2024
Revlon Cons Tlb L+350 04.7339 09/07/2023
Holdings represent 8.44% of portfolio

Fixed income statistics as of 10/31/17

Average effective maturity 4.97 yrs.
Average effective duration 0.29 yrs.
Average yield to maturity 4.65%
Average coupon 4.50%
Average price $100.30

Sector weightings as of 10/31/17

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
Bank loans 85.17% 4.02 0.00% 0.00 85.17% 4.02
High-yield corporate bonds 6.92% 0.11 0.00% 0.00 6.92% 0.11
Investment-grade corporate bonds 4.45% 0.17 0.00% 0.00 4.45% 0.17
Net cash 3.11% 0.00 0.00% 0.00 3.11% 0.00
Equity investments 0.20% 0.00 0.00% 0.00 0.20% 0.00
Convertible securities 0.08% 0.00 0.00% 0.00 0.08% 0.00
Emerging-market bonds 0.07% 0.00 0.00% 0.00 0.07% 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 10/31/17

0 - 1 yr. 6.98%
1 - 5 yrs. 34.13%
5 - 10 yrs. 58.89%

Quality rating as of 10/31/17

AA 0.23%
A 1.98%
BBB 7.37%
BB 41.26%
B 41.89%
CCC and Below 3.71%
Not Rated 0.45%
Net cash 3.11%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer or industry. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. 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 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. 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. Floating rate loans may reduce, but not eliminate, interest-rate risk. These loans are typically secured by specific collateral or assets of the issuer. (Holders of the loan, such as the fund, have a priority claim on those assets in the event of the issuer's default or bankruptcy.) Value of collateral may be insufficient to meet the issuer's obligations, and the fund's access to collateral may be limited by bankruptcy or other insolvency laws. 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 10/31/17

Consumer cyclicals 24.10%
Basic materials 12.83%
Capital goods 10.37%
Health care 8.92%
Financials 8.57%
Technology 8.55%
Communication services 8.32%
Consumer staples 7.63%
Energy 4.58%
 
Other
6.13%
Net Cash 3.11%
Utilities 2.78%
Conglomerates 0.23%
Transportation 0.01%

The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Sectors will vary over time. Represents the equity portion of the portfolio.

Country Allocation as of 10/31/17

United States 98.04%
France 0.51%
Canada 0.43%
Japan 0.37%
Luxembourg 0.25%
United Kingdom 0.25%
Cayman Islands 0.08%
Mexico 0.07%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 1.03% 1.23% 1.78% 1.08% 1.28% 0.78%
What you pay 1.03% 1.23% 1.78% 1.08% 1.28% 0.78%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R Class Y
$0-$49,999 1.00% 0.00% 0.00% 0.75% -- --
$50,000-$99,999 1.00% 0.00% 0.00% 0.75% -- --
$100,000-$249,999 1.00% -- 0.00% 0.75% -- --
$250,000-$499,999 1.00% -- 0.00% 0.75% -- --
$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 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% -- -- --

The S&P/LSTA Leveraged Loan Index is an unmanaged index of U.S. leveraged loans. The Barclays U.S. High Yield Loan Index is an unmanaged index that provides broad and comprehensive total return metrics of the universe of U.S. dollar denominated, syndicated term loans.You cannot invest directly in an index.

Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions of the risk of default, changes in government intervention, and factors related to a specific issuer or industry. These factors may also lead to periods of high volatility and reduced liquidity in the bond markets. 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 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. 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. Floating rate loans may reduce, but not eliminate, interest-rate risk. These loans are typically secured by specific collateral or assets of the issuer. (Holders of the loan, such as the fund, have a priority claim on those assets in the event of the issuer's default or bankruptcy.) Value of collateral may be insufficient to meet the issuer's obligations, and the fund's access to collateral may be limited by bankruptcy or other insolvency laws. 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.