Floating Rate Income Fund (Class A)  (PFLRX)

An income fund that can benefit from higher interest rates

Highlights

Objective

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

Strategy and process

  • Floating-rate bank loans: The fund primarily invests in bank loans with yields that are set at a margin above short-term interest rates and adjust when rates change.
  • Guard against rising 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
$8.66
02/01/18
$8.56
06/29/18
Historical fund price

Fund facts as of 08/31/18

Total net assets
$761.48M
Turnover (fiscal year end)
60%
Dividend frequency (view rate)
Monthly
Number of issues
251
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


Manager commentary | Q2 2018

Bank loan investors benefit as LIBOR rises

Paul Scanlon, Co-Head of Fixed Income, talks about opportunities in the bank loan market and the tailwind provided by higher LIBOR rates.



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)


4.13%

Average 5-year annualized return


  • Total return (%) as of 06/30/18

  • Annual performance as of 06/30/18

Annualized Total return (%) as of 06/30/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 3.71% 3.17% 3.17% 3.71%
After sales charge 2.67% 2.83% 2.96% 3.61%
S&P/LSTA Leveraged Loan Index 4.35% 4.20% 4.00% 5.19%

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, and 4.00% and 3.25% for income funds (2.25% and 0.75% for Putnam Short Duration Bond Fund and 1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Fixed Income Absolute Return 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 Short Duration Bond Fund, Putnam Fixed Income Absolute Return 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, 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. 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 08/31/18 0.60 % -0.40 %
YTD as of 09/19/18 3.06 % 2.03 %

Yield

Distribution rate before sales charge
as of 09/19/18
4.40%
Distribution rate after sales charge
as of 09/19/18
4.35%
30-day SEC yield as of 08/31/18
(after sales charge)
4.15%

Risk-adjusted performance as of 08/31/18

Sharpe ratio (3 yrs.) 1.23
Information ratio (3 yrs.) -1.61

Volatility as of 08/31/18

Standard deviation (3 yrs.) 2.58%
Beta 0.99
R-squared 0.94

Lipper rankings as of 08/31/18

Time period Rank/Funds in category Percentile ranking
1 yr. 110/231 48%
3 yrs. 127/208 61%
5 yrs. 105/171 62%
10 yrs. 55/81 68%
Lipper category: Loan Participation Funds

Morningstar Ratings as of 08/31/18

Time period Funds in category Morningstar Rating
Overall 211
3 yrs. 211
5 yrs. 175
10 yrs. 81
Morningstar category: Bank Loan

Distributions

Accrual days 34
Accrual start date 08/01/18
Accrual end date 09/03/18
Payable date 08/31/18
Income $0.031494744
Extra taxable income --
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 08/31/18

Cequel Communications 1.27%
Vistra Energy 1.01%
Transdigm 0.97%
Bausch Health 0.94%
Avaya Inc 0.93%
Scientific Games 0.90%
DELL Technologies 0.88%
Altice Numericable 0.87%
Centurylink 0.86%
Asurion 0.85%
Top 10 holdings, percent of portfolio 9.48%

Full portfolio holdings as of 06/30/18

SCIENTIFIC GAMES TLB5 L+275 04.5390 08/14/2024 0.88%
DELL INTL TLB L+200 04.1000 09/07/2023 0.87%
SPRINT TLB L+250 04.6250 02/02/2024 0.83%
ZEKELMAN TLB L+225 04.5819 06/14/2021 0.83%
AVAYA TLB L+425 06.3232 12/15/2024 0.81%
ORTHO-CLINICAL TLB L+325 06/01/2025 0.81%
QUIKRETE TLB L+275 04.8435 11/15/2023 0.81%
CINEWORLD TLB L+250 04.2999 02/22/2025 0.80%
PPD TL L+250 04.7856 08/18/2022 0.80%
BRAND ENERGY TL L+425 06.6108 06/21/2024 0.77%
UNIVISION TLC5 L+275 04.8435 03/15/2024 0.73%
CLEAR CHANNEL TLD L+675 08.8435 01/30/2019 0.72%
DIVERSEY TL L+300 03.0000 09/06/2024 0.72%
RACKSPACE HOSTING INC L+300 05.3631 11/03/2023 0.71%
USI INC TLB L+300 05.3344 05/16/2024 0.69%
AIR MEDICAL TLB L+325 05.2796 04/28/2022 0.67%
NAVISTAR TLB L+350 04.7500 11/06/2024 0.67%
CARAUSTAR TL L+550 07.8344 03/09/2022 0.66%
GATES GLOBAL TLB L+275 05.0844 03/31/2024 0.66%
HUSKY TLB L+300 05.2018 03/28/2025 0.66%
TMS INTL TLB L+275 05.0356 08/14/2024 0.66%
VALEANT PHARMA TLB L+300 05.0921 05/28/2025 0.66%
BEACON ROOFING TLB L+225 04.2796 01/02/2025 0.65%
CAESARS RESORT TL L+275 02.7500 12/22/2024 0.65%
GREEKTOWN TLB L+300 03.7500 04/25/2024 0.65%
INFOR TLB6 L+275 03.7500 02/01/2022 0.65%
MULTIPLAN TLB L+275 05.0844 06/07/2023 0.65%
WASTE INDUSTRIES TLB L+275 05.0800 09/28/2024 0.65%
WERNER TLB L+400 05.2583 07/24/2024 0.65%
CENTURYLINK TLB L+275 02.7500 01/31/2025 0.64%
MEDALLION MID TLB L+325 05.3435 10/30/2024 0.64%
SOLERA TLB L+275 04.7563 03/03/2023 0.64%
STERIGENICS TLB L+300 05.3344 05/15/2022 0.64%
YUM BRANDS TLB L+175 04.0580 04/03/2025 0.64%
ASSOC ASPHALT TLB L+525 07.3435 04/05/2024 0.63%
BUILDERS FIRSTSOURCE L+300 05.3344 02/29/2024 0.63%
CPG INTL TL L+375 05.0828 05/05/2024 0.63%
SFR GROUP SA TLB11 L+275 03.9062 07/18/2025 0.63%
BWAY CORP TLB L+325 05.5875 04/03/2024 0.62%
DIAMOND RESORTS TLB L+375 05.8435 09/02/2023 0.62%
KINETIC CONCEPTS TLB L+325 04.2846 02/03/2024 0.62%
GOLDEN NUGGET TL L+275 05.1028 10/04/2023 0.61%
WIDEOPENWEST TLB L+325 05.3351 08/19/2023 0.61%
ALLIANT HOLD TLB L+300 05.3581 05/10/2025 0.60%
CHESAPEAKE ENERGY 1.5L L+750 08.5000 08/23/2021 0.60%
VERTIV TLB L+400 06.0999 11/15/2023 0.60%
KRONOS TLB L+300 05.2225 11/01/2023 0.59%
COMMUNITY HEALTH TLH L+325 05.5572 01/27/2021 0.58%
INDUS CONT SERV TLB L+325 05.3500 04/28/2024 0.58%
LPL HOLDINGS INC TLB L+225 03.6524 09/21/2024 0.58%
FREEDOM MORTGAGE TLB L+475 07.0356 02/23/2022 0.57%
GFL ENVIRONMENTAL TLB L+275 05.1050 05/31/2025 0.57%
CALPINE CONS FIN TL L+250 03.9770 01/15/2025 0.56%
TEMPO ACQUISITION TLB L+300 05.0935 05/01/2024 0.56%
VISTRA ENERGY TLB1 L+200 04.0935 08/04/2023 0.56%
CHARTER COMM TLB L+200 02.0000 04/30/2025 0.55%
CHUCK E CHEESE'S TLB L+325 05.3435 02/14/2021 0.55%
NRG ENERGY TLB L+175 03.9725 06/30/2023 0.54%
SINCLAIR BRDCAST TLB L+250 02.5000 12/11/2024 0.54%
VICI PROPERTIES TL L+200 04.0836 12/22/2024 0.53%
WEIGHT WATCHERS TLB L+475 07.0508 11/29/2024 0.53%
ATOTECH TLB1 L+300 05.3344 01/31/2024 0.52%
BASS PRO TLB L+500 07.0935 09/25/2024 0.52%
FORTERRA TL L+300 05.0935 10/25/2023 0.52%
KEANE GROUP TLB L+375 06.0794 05/18/2025 0.52%
STARS GROUP TLB L+350 05.8358 07/29/2025 0.52%
TRAVELPORT TLB L+250 04.5888 03/16/2025 0.52%
YONKERS RACING CORP L+325 05.3500 05/31/2024 0.52%
BJ'S WHOLESALE 1STL L+350 05.5296 02/03/2024 0.51%
CLUBCORP TLB L+275 05.1116 09/18/2024 0.51%
EAGLECLAW MID TL L+425 06.4211 06/30/2024 0.51%
FIRST DATA TL L+200 04.0911 04/26/2024 0.51%
GRIFOLS TLB L+225 03.2879 01/31/2025 0.51%
MEREDITH CORP TLB L+300 05.0935 01/31/2025 0.51%
PAREXEL TLB L+300 04.2350 09/27/2024 0.51%
RESTAURANT BRANDS TLB L+225 04.3435 02/17/2024 0.51%
SUDDENLINK TLB L+225 04.3435 07/28/2025 0.51%
TRANSDIGM INC TLE L+250 04.4756 05/14/2022 0.51%
EXTENDED STAY TLB L+200 04.3691 08/30/2023 0.50%
REVLON CONS TLB L+350 05.5935 09/07/2023 0.50%
AIR METHODS TLB L+350 04.7964 04/21/2024 0.49%
CSC HOLDINGS TLB L+225 04.3232 06/15/2025 0.49%
INTELSAT S.A. TLB3 L+375 05.8529 11/27/2023 0.49%
KMG CHEMICALS TLB L+275 04.8435 06/15/2024 0.48%
ACADEMY SPORTS TLB L+400 06.0916 07/02/2022 0.47%
ADS WASTE TLB L+225 04.0226 11/10/2023 0.47%
MICROCHIP TECH TLB L+200 04.3194 05/24/2025 0.47%
AMERICAN TRAFFIC SOL TLB L+375 05.7063 02/28/2025 0.46%
CERIDIAN TLB L+325 05.5875 04/30/2025 0.46%
HD SUPPLY WATERWORKS TLB L+300 04.0000 08/01/2024 0.46%
SS&C TECH TLB3 L+250 04.5172 04/16/2025 0.46%
TTM TECH INC TL L+250 04.5921 09/28/2024 0.46%
ATLANTIC BROADBAND TLB L+238 04.4685 08/02/2024 0.45%
CALIFORNIA RESOURC TL L+475 06.8379 11/17/2022 0.45%
LIONS GATE TLB L+225 04.4981 03/24/2025 0.45%
ROBERTSHAW 1STL L+350 05.3725 02/15/2025 0.45%
TRANSDIGM INC TLF L+275 04.7872 06/09/2023 0.45%
GARDA WORLD TLB L+350 4.812870 05/26/2024 0.44%
UNIVAR USA TLB L+250 04.5935 07/01/2024 0.44%
HCA INC 06.5000 02/15/2020 0.42%
REYNOLDS GROUP TL L+300 04.8435 02/05/2023 0.41%
CITIGROUP INC 03.7303 09/01/2023 0.40%
GOLDMAN SACHS GROUP INC 04.1088 10/28/2027 0.40%
JPMORGAN CHASE & CO 05.3000 12/29/2049 0.40%
KCA DEUTAG US FIN LLC L+675 09.0211 03/21/2023 0.40%
MITSUBISHI UFJ FIN GRP USD 03.3926 09/13/2021 0.40%
BCP RENAISSANCE TLB L+350 05.8629 10/31/2024 0.39%
BERRY PLATICS TLQ L+200 03.8200 10/01/2022 0.39%
CBS RADIO TLB1 L+275 04.8379 11/18/2024 0.39%
CVS HEALTH CORP 03.0471 03/09/2021 0.39%
FILTRATION GROUP TLB L+300 05.3118 03/29/2025 0.39%
FRONTIER COMMUNICAT L+375 05.8500 06/15/2024 0.39%
HUB INTL TLB L+300 05.3616 04/25/2025 0.39%
MGM STUDIOS 1STL L+250 06/28/2025 0.39%
NOVOLEX TL L+325 05.7506 06/21/2025 0.39%
PLANTRONICS TLB L+250 04.8178 06/01/2025 0.39%
SOLENIS 1STL L+400 06.3247 12/18/2023 0.39%
SYNIVERSE TL 1L L+500 06.8200 03/09/2023 0.39%
TEREX CORP TL L+200 03.9563 01/31/2024 0.39%
WESTERN DIGITAL TLB L+175 04.0925 04/29/2023 0.39%
ABC SUPPLY TLB L+200 04.3118 10/31/2023 0.38%
ADT/PRIME SECURITY TLB L+275 04.8435 05/02/2022 0.38%
IRON MOUNTAIN TLB L+175 04.0356 01/02/2026 0.38%
MGM GROWTH PROP TLB L+200 04.2225 03/25/2025 0.38%
STARS GRP HLDG BV TLB L+300 05.3118 03/29/2025 0.38%
COMMSCOPE TLB5 L+200 04.0935 12/29/2022 0.37%
JO-ANN STORES TL L+500 07.5094 10/16/2023 0.37%
TRONOX FIN TLB L+300 04.3192 09/22/2024 0.37%
BOYD GAMING TLB L+250 04.4769 09/15/2023 0.36%
JC PENNEY TLB L+425 06.5694 06/23/2023 0.36%
WELBILT TLB L+300 03.9811 03/03/2023 0.36%
ORYX TLB L+325 05.2672 02/28/2025 0.35%
JACK OHIO FIN LLC/FI P/P 144A 06.7500 11/15/2021 0.34%
TOWNSQUARE TLB L+300 05.0935 04/01/2022 0.34%
UFC 1STL L+325 05.3500 08/18/2023 0.33%
REXNORD TLB L+225 04.3411 08/21/2024 0.32%
TRIDENT TPI HLDG INC L+325 05.3435 10/05/2024 0.32%
TRINSEO TLB L+200 04.3206 09/06/2024 0.32%
VIRGIN MEDIA TLK L + 250 03.7449 01/15/2026 0.32%
VISTRA TLB2 L+225 04.3435 12/14/2023 0.32%
ASURION TLB6 L+275 04.7342 11/03/2023 0.31%
MURRAY ENERGY TLB2 L+725 09.3435 04/17/2020 0.31%
TALBOTS INC 1STL L+450 06.5935 03/19/2020 0.31%
CAPITAL AUTO 2NDL L+600 08.1000 03/24/2025 0.30%
FORMULA ONE TLB L+250 04.2700 02/01/2024 0.30%
CCC INFO 1STL L+300 05.1000 03/30/2024 0.29%
THERMON TLB L+375 05.8421 10/30/2024 0.29%
ARCELORMITTAL USD 05.5000 03/01/2021 0.28%
MORGAN STANLEY 03.7592 10/24/2023 0.28%
BARCLAYS PLC USD 04.4625 08/10/2021 0.27%
HILTON WORLDWIDE TLB L+215 04.0977 10/25/2023 0.27%
INTELSAT JACKSON TLB4 L+450 06.6029 01/02/2024 0.27%
KINDER MORGAN INC 03.6277 01/15/2023 0.27%
VALEANT PHARMA P/P 144A 06.5000 03/15/2022 0.27%
ALBERTSONS COS INC P/P 144A 06.0851 01/15/2024 0.26%
APERGY TLB L+250 04.8616 05/09/2025 0.26%
ASURION 2NDL L+600 07.5734 08/04/2025 0.26%
BANK OF AMERICA CORP 03.1331 02/05/2026 0.26%
CABLEVISION SYS CORP 08.0000 04/15/2020 0.26%
CHARTER COMM OPT LLC/CAP 04.0428 02/01/2024 0.26%
DELEK US HOLD TLB L+250 04.7018 03/30/2025 0.26%
ELDORADO RESORTS TLB L+225 04.3750 04/17/2024 0.26%
ENERGY TRANSFER EQUITY L+200 04.0911 02/02/2024 0.26%
FLORA FOOD TLB L+300 05.0573 03/07/2025 0.26%
HORSESHOE BALTIMORE TL L+400 05.2306 07/07/2024 0.26%
HOUSTON FUEL TLB L+275 05.0900 06/19/2025 0.26%
JO-ANN STORES 2NDL L+925 11.6038 05/21/2024 0.26%
KRAFT HEINZ FOODS CO 03.1725 08/10/2022 0.26%
LUCID ENERGY TLB L+300 04.7870 02/18/2025 0.26%
NAI ENTERTAINMENT TLB L+250 04.6000 05/08/2025 0.26%
NUMERICABLE TLB12 L+300 05.3477 01/31/2026 0.26%
PENSKE AUTOMOTIVE GROUP 03.7500 08/15/2020 0.26%
PLY GEM TLB L+375 06.0618 04/12/2025 0.26%
REYNOLDS GRP ISS/REY P/P 144A 05.8477 07/15/2021 0.26%
STEINWAY MUSIC TLB L+375 05.5888 02/15/2025 0.26%
DISH DBS CORP 05.8750 07/15/2022 0.25%
MISYS 1STL L+350 05.8072 06/16/2024 0.25%
MISYS 2NDL L+725 08.4588 06/13/2025 0.25%
RIVERS PITTSBURGH LP P/P 144A 06.1250 08/15/2021 0.25%
ROBERTSHAW 2NDL L+800 09.8725 02/15/2026 0.25%
TRIBUNE MEDIA TLB L+300 05.0935 01/27/2024 0.25%
WORLD KITCHEN TLB L+400 06.3581 05/02/2024 0.25%
ZEP INC TLB L+400 06.3344 08/08/2024 0.25%
AMERICAN TIRE DIST TL L+425 05.2500 09/01/2021 0.24%
CAPITAL AUTO 1STL L+250 04.6000 03/24/2024 0.24%
NATIONSTAR MORT/CAP CORP 06.5000 08/01/2018 0.24%
GATEWAY CASINO TLB L+300 05.0714 03/13/2025 0.23%
TALBOTS INC 2NDL L+850 10.5935 03/19/2021 0.23%
GREAT LAKES D&D 08.0000 05/15/2022 0.22%
PETSMART INC TLB L+300 04.2460 03/11/2022 0.22%
CCC INFO 2NDL L+675 08.8435 03/30/2025 0.21%
DCP MIDSTREAM P/P 144A 09.7500 03/15/2019 0.21%
NEIMAN MARCUS TL L+325 05.2630 10/25/2020 0.21%
COMMUNITY HEALTH TLG L+300 05.3072 12/31/2019 0.20%
KRONOS 2NDL L+825 10.6080 11/01/2024 0.20%
PLATFORM SPEC TLB6 L+300 05.0935 06/07/2023 0.20%
TEVA PHARMACEUTICALS NE USD 01.7000 07/19/2019 0.20%
JDA SOFTWARE TLB L+275 05.0870 10/12/2023 0.19%
ISTAR INC TLB L+300 04.2339 10/01/2021 0.18%
J. CREW GROUP TL L+322 04.4895 03/05/2021 0.18%
PLATFORM SPEC TLB7 L+250 04.5935 06/07/2020 0.18%
SS&C TECH TLB4 L+250 04.5172 04/16/2025 0.17%
FRAC TECH INTL TLB L+475 06.8435 04/16/2021 0.16%
ICAHN ENTER/FIN 06.0000 08/01/2020 0.16%
SYNIVERSE TL 2L L+900 10.8200 03/11/2024 0.16%
TRONOX BLOCKED TLB L+300 05.0935 09/22/2024 0.16%
BOMBARDIER INC P/P 144A 08.7500 12/01/2021 0.14%
CALIFORNIA RESOURCES L+1038 12.4661 12/31/2021 0.14%
AES CORP/THE 04.0000 03/15/2021 0.13%
AMERICAN TRAFFIC SOL 2NDL L+775 09.7063 02/28/2026 0.13%
ANTERO RESOURCES 05.3750 11/01/2021 0.13%
ASURION TLB7 L+300 05.3358 11/03/2024 0.13%
ATOTECH TLB L+300 05.3194 01/31/2024 0.13%
BERRY PLASTICS TLR L+200 03.8200 01/19/2024 0.13%
BIG RIVER STEEL TLB L+500 07.3344 08/23/2023 0.13%
BLOUNT INTL TLB L+425 05.4921 04/12/2023 0.13%
CHESAPEAKE ENERGY CORP 05.5977 04/15/2019 0.13%
CIT GROUP INC 04.1250 03/09/2021 0.13%
CLEAR CHNL WORLD 07.6250 03/15/2020 0.13%
CNO FINANCIAL GROUP INC 04.5000 05/30/2020 0.13%
HUNTSMAN INTERNATIONAL LLC 04.8750 11/15/2020 0.13%
ISTAR INC 04.6250 09/15/2020 0.13%
ISTAR INC TLB L+275 02.7500 06/19/2023 0.13%
MEG ENERGY TLB L+350 05.6000 12/31/2023 0.13%
PQ CORP TLB L+250 04.5935 02/08/2025 0.13%
RANGE RESOURCES CORP 05.7500 06/01/2021 0.13%
SABRE GLBL TLB L+200 03.9842 02/22/2024 0.13%
TRAVERSE TLB L+400 05.0000 09/27/2024 0.12%
FIRST DATA TL L+200 04.0911 07/10/2022 0.11%
INFOR SOFTWARE P/P 144A 07.1250 05/01/2021 0.10%
VISTRA ENERGY TLB3 L+200 04.0670 12/01/2025 0.10%
AMERICAN AXLE & MFG INC 07.7500 11/15/2019 0.09%
AVAYA HOLDINGS CORP 0.09%
ZUFFA (UFC) 2NDL L+750 09.5935 08/18/2024 0.09%
GFL ENVIRONMENTAL DD L+275 05.1050 05/31/2025 0.07%
INDUS CONT SERV DD L+350 04.6148 04/28/2024 0.07%
AIR MEDICAL TLB L+425 06.3351 09/26/2024 0.06%
CHC GRP LLC/FIN P/P USD 00.0000 10/01/2020 0.06%
INFOR US INC 06.5000 05/15/2022 0.05%
ASCENT RESOURCES TLB L+650 08.5999 03/30/2023 0.04%
ASURION 2NDL L+650 08.8358 08/04/2025 0.04%
CAESARS ENTERTAINMENT CORP 0.04%
TRIBUNE CLASS 1C LITIGAT 0.03%
CHC GROUP LLC P/P 0.01%
TXU TCEH RIGHTS 0.01%
AVAYA INC ESCROW P/P 144A 07.0000 04/01/2019 0.00%

Prior top 10 holdings

Top 10 holdings as of 08/31/18
Cequel Communications
Vistra Energy
Transdigm
Bausch Health
Avaya Inc
Scientific Games
DELL Technologies
Altice Numericable
Centurylink
Asurion
Holdings represent 9.48% of portfolio
Top 10 holdings as of 07/31/18
Cequel Communications
Vistra Energy
Transdigm
Bausch Health
Avaya Inc
Scientific Games
DELL Technologies
Altice Numericable
iHeartCommunications
Centurylink
Holdings represent 9.36% of portfolio
Top 10 holdings as of 06/30/18
Cequel Communications
Vistra Energy
Transdigm
Valeant Pharmaceuticals International
Avaya Inc
Stars Group
Altice Numericable
Scientific Games
DELL Technologies
iHeartCommunications
Holdings represent 9.46% of portfolio
Top 10 holdings as of 05/31/18
Vistra Energy
Cequel Communications
GFL Environmental
Avaya Inc
Transdigm
Rackspace Hosting
Valeant Pharmaceuticals
Scientific Games
Jo-Ann Stores Inc
Brand Holdings
Holdings represent 10.38% of portfolio

Fixed income statistics as of 08/31/18

Average effective maturity 5.03 yrs.
Average effective duration 0.18 yrs.
Average yield to maturity 5.65%
Average coupon 5.00%
Average price $100.10

Sector weightings as of 08/31/18

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
Bank loans 84.08% 3.74 0.00% 0.00 84.08% 3.74
High-yield corporate bonds 5.33% 0.10 0.00% 0.00 5.33% 0.10
Investment-grade corporate bonds 5.18% 0.19 0.00% 0.00 5.18% 0.19
Net cash 5.16% 0.00 0.00% 0.00 5.16% 0.00
Equity investments 0.19% 0.00 0.00% 0.00 0.19% 0.00
Convertible securities 0.06% 0.00 0.00% 0.00 0.06% 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 08/31/18

0 - 1 yr. 6.93%
1 - 5 yrs. 24.40%
5 - 10 yrs. 68.67%

Quality rating as of 08/31/18

A 2.22%
BBB 10.30%
BB 41.08%
B 37.94%
CCC and Below 3.01%
Not Rated 0.29%
Net cash 5.16%

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 08/31/18

Consumer cyclicals 20.54%
Technology 11.68%
Basic materials 11.20%
Capital goods 9.83%
Financials 8.86%
Communication services 8.55%
Health care 8.42%
Energy 6.91%
Consumer staples 5.96%
 
Other
8.05%
Net Cash 5.16%
Utilities 2.89%

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 08/31/18

United States 97.45%
United Kingdom 0.54%
Canada 0.48%
Japan 0.40%
Luxembourg 0.32%
France 0.28%
Netherlands 0.28%
Switzerland 0.18%
Cayman Islands 0.07%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 1.02% 1.22% 1.77% 1.07% 1.27% 0.68% 0.77%
What you pay 1.02% 1.22% 1.77% 1.07% 1.27% 0.68% 0.77%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R Class R6 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 R6 Class Y
0 to 9 mts. 1.00% 1.00% 1.00% -- -- -- --
9 to 12 mts. 1.00% 1.00% 1.00% -- -- -- --
2 yrs. 0.00% 0.50% 0.00% -- -- -- --
3 yrs. 0.00% -- 0.00% -- -- -- --
4 yrs. 0.00% -- 0.00% -- -- -- --
5 yrs. 0.00% -- 0.00% -- -- -- --
6 yrs. 0.00% -- 0.00% -- -- -- --
7+ yrs. 0.00% -- 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.