Short-Term Municipal Income Fund  (PSMEX)

A national portfolio of short-term municipal bonds seeking tax-free income with lower interest-rate sensitivity

Objective

The fund seeks as high a level of current income exempt from federal income tax as the managers believe is consistent with preservation of capital.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $10.04
0.00% | $0.00
$10.05
09/08/17
$9.91
12/05/16
Historical fund price

Fund facts as of 08/31/17

Total net assets
$14.26M
Turnover (fiscal year end)
46%
Dividend frequency (view rate)
Monthly
Number of holdings
104
Fiscal year end
November
CUSIP / Fund code
74676A865 / 80
Inception Date
03/18/13
Category
Tax-free Income
Open to new investors
Ticker
PSMEX

Management team


Portfolio Manager

Portfolio Manager

Strategy and process

  • Tax-advantaged income: Pursues income free from federal income tax with a portfolio of municipal bonds selected from many states and market sectors.
  • Focus on total return: Seeks to offer a competitive yield and the potential for price appreciation while striving to protect investors' capital through prudent security selection and active risk management.
  • High-quality, short-term portfolio: The national portfolio features a range of high-quality, short-term bonds that seek to provide tax-free income with lower interest-rate sensitivity.

Literature


Using and enhancing ESG investment data
ESG data is having investment impact but is still evolving, and stands to benefit from feedback offered by fundamental analysts.
Why there's nothing wrong with a "just right" market
When assessing the markets and economy the media often looks for drama, but headlines are our least-used investment tool.
Value benefits from an expanding economy
Value stocks have lagged the market in 2017, but if the economy continues to expand, rates rise, and the yield curve steepens, this trend could reverse.

Performance

  • Total return (%) as of 06/30/17

  • Annual performance as of 06/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. Life (inception: 03/18/13 )
Before sales charge 0.35% 0.48% -- 0.52%
After sales charge -0.66% 0.14% -- 0.29%
Bloomberg Barclays 3 Year Municipal Index 0.42% 1.08% 1.23% --

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 08/31/17 0.29 % -0.71 %
YTD as of 09/19/17 1.91 % 0.89 %

Yield

Distribution rate before sales charge
as of 09/19/17
0.87%
Distribution rate after sales charge
as of 09/19/17
0.86%
30-day SEC yield with subsidy
as of 08/31/17 (after sales charge)
0.70%
30-day SEC yield without subsidy
as of 08/31/17 (after sales charge)
-0.44%

Risk-adjusted performance as of 08/31/17

Sharpe ratio (3 yrs.) 0.55
Information ratio (3 yrs.) -0.92

Volatility as of 08/31/17

Standard deviation (3 yrs.) 0.76%
Beta 0.54
R-squared 0.89

Lipper rankings as of 08/31/17

Short Municipal Debt Funds Percentile ranking Rank/Funds in category
1 yr. 42% 45/107
3 yrs. 55% 52/94
5 yrs.   --
10 yrs.   --

Morningstar ratings as of 08/31/17

Muni National Short Rating Funds in category
Overall (172)
3 yrs. (172)

Distributions

Accrual days 31
Accrual start date 08/01/17
Accrual end date 08/31/17
Payable date 08/31/17
Non-taxable income $0.008850695
Extra taxable income $0.0

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 08/31/17

Ny Mtge Agy-186-Amt 02.0000 04/01/2019 3.59%
Ca Infrastructure-A2 01.3620 10/01/2047 2.13%
Triboro B&T-Var 01.1790 01/01/2033 2.11%
Mo H/E Var-Wa Univ-C 00.8100 09/01/2030 2.11%
Ct Hlth & Eductnl-A 01.3000 07/01/2048 1.76%
Ms Bus Fin-Var-E-Chev 00.8700 12/01/2030 1.76%
Atlanta Wtr-Ref 04.0000 11/01/2017 1.72%
New Jersey St Transpr 05.0000 06/15/2019 1.49%
Main St Nat Gas Inc-A 05.0000 03/15/2018 1.47%
Pasco Cnty Sch Brd-A 05.0000 08/01/2018 1.46%
Top 10 holdings, percent of portfolio 19.60%

Full portfolio holdings as of 06/30/17

NY MTGE AGY-186-AMT 02.0000 04/01/2019 3.79%
MASSACHUSETTS ST-D-2 01.1600 08/01/2043 3.74%
CA INFRASTRUCTURE-A2 01.3570 10/01/2047 2.26%
TRIBORO B&T-VAR 01.1720 01/01/2033 2.23%
ATLANTA WTR-REF 04.0000 11/01/2017 1.82%
PASCO CNTY SCH BRD-A 05.0000 08/01/2018 1.59%
NEW JERSEY ST TRANSPR 05.0000 06/15/2019 1.57%
MAIN ST NAT GAS INC-A 05.0000 03/15/2018 1.55%
PIMA IDA-A-AMERN CHRT 05.6250 07/01/2038 1.53%
SAN ANTONIO ELEC-A 02.2500 02/01/2033 1.53%
BAY AREA TOLL AUTH-B 01.5000 04/01/2047 1.50%
BURKE CO DEV-5TH-REMK 01.8000 10/01/2032 1.50%
DENVER ARPT-B-VAR 01.7190 11/15/2031 1.50%
MET TRANS AUTH-A2A 01.3100 11/01/2026 1.50%
MET WTR DIST STHRN-C 00.9600 07/01/2047 1.49%
RIVERSIDE-A-REF-WTR 01.4900 10/01/2035 1.49%
TOMBALL ISD-B3-VAR 01.1000 02/15/2043 1.49%
NY ENERGY VAR-A1-BROO 01.5930 12/01/2020 1.48%
RENO S/TAX-VAR-RF-RET 00.8800 06/01/2042 1.46%
CITIZENS PROPERTY INS 05.0000 06/01/2018 1.37%
CHICAGO BOE CAB-B-1 00.0000 12/01/2017 1.36%
HIGH PLAINS CO MET DI 04.0000 12/01/2021 1.22%
MADISON CDD 536-PRERF 05.0000 11/01/2019 1.22%
NIAGARA FRONTIER-B 05.0000 04/01/2019 1.21%
ILLINOIS ST-REF 05.0000 02/01/2018 1.16%
MA HSG FIN AGY-169 04.0000 12/01/2044 1.16%
FARMINGTON POLL-A-REF 01.8750 04/01/2029 1.14%
LOUISA VA INDL DEV AU 01.8500 11/01/2035 1.13%
CA POLLUTN-VAR-REF-A P/P 144A 01.3000 08/01/2023 1.12%
PR COMWLTH REF-IMPT-A 05.5000 07/01/2019 1.01%
NEW JERSEY ECO DEV 05.0000 09/01/2017 0.95%
GREAT LAKES MI WTR AU 05.0000 07/01/2024 0.89%
PHILADELPHIA GAS-REF 05.0000 10/01/2022 0.87%
RI HLTH & EDUCTNL-REF 05.0000 05/15/2022 0.85%
UNIV OF COLORADO CO H 05.0000 11/15/2038 0.85%
GLENDALE AZ EXCISE TA 05.0000 07/01/2021 0.84%
ST PUB SCH BLDG-A 05.0000 06/01/2023 0.84%
GLENDALE INDL DEV-REF 04.0000 05/15/2022 0.82%
NY DORM AUTH 05.0000 07/01/2019 0.82%
PHILADELPHIA GAS WKS 05.0000 08/01/2019 0.82%
IL FIN AUTH 05.0000 11/15/2019 0.81%
MASSACHUSETTS ST DEV 05.0000 07/01/2019 0.81%
MICHIGAN ST FIN AUTH 05.0000 11/15/2019 0.81%
MYRTLE BEACH SC TAX I 05.0000 10/01/2019 0.81%
NEW JERSEY ST ECON DE 05.0000 11/01/2021 0.81%
NJ ECON DEV-A 05.0000 07/15/2019 0.81%
NJ HLTH CARE FACS FIN 05.0000 07/01/2019 0.81%
CHICAGO WSTWTR TRANS 05.0000 01/01/2019 0.80%
CAPITAL REGION WTR-A 05.0000 07/15/2018 0.79%
CENTRAL PLAINS 05.2500 12/01/2018 0.79%
ILLINOIS ST-A 05.0000 04/01/2021 0.79%
MONROE CO-REF 04.0000 06/01/2019 0.79%
PALM BEACH HLTH-REF 04.0000 11/15/2019 0.79%
SC PUB SVC-B-REF 04.0000 12/01/2019 0.79%
TSASC INC-A-REF 04.0000 06/01/2019 0.79%
MINNEAPOLIS HLTH-REF 04.0000 11/15/2018 0.78%
NJ ECON DEV AUTH-AAA 05.0000 06/15/2019 0.78%
PHILADELPHIA AUTH-A 04.0000 12/01/2018 0.78%
CHICAGO TRANSIT AUTH 05.0000 06/01/2018 0.77%
MA DEV FIN AGY-I 03.0000 07/01/2018 0.77%
VT EDU HLTH BLDG FIN 03.0000 12/01/2018 0.77%
YPSILANTI SD-A-REF 04.0000 05/01/2018 0.77%
COOK CNTY REF-SER A 04.0000 11/15/2017 0.76%
MONTGOMERY CO IND DEV 03.0000 12/01/2018 0.76%
PA ST UNIV-SER A 04.0000 09/01/2017 0.76%
BARTOW CO DEV AUTH 02.3750 09/01/2029 0.75%
E-470 HWY-A-LIBOR 01.7200 09/01/2039 0.75%
FARMINGTON NM POLL CO 02.1250 06/01/2040 0.75%
WASHINGTON ST HLTH CA 01.9200 01/01/2042 0.75%
MET PIER-A-CABS-UNREF 00.0000 06/15/2018 0.73%
MAIN ST NAT GAS INC-B 05.0000 03/15/2020 0.70%
SA ENERGY ACQ PUB FAC 05.5000 08/01/2025 0.69%
MD ECON DEV CORP-REF 04.0000 07/01/2020 0.68%
ILLINOIS ST FIN AUTH 05.0000 11/01/2023 0.66%
MADISON CDD 536-UNREF 05.0000 11/01/2019 0.65%
CHICAGO INTL ARPT -D 04.0000 01/01/2018 0.58%
IRVINE SPL TAX-REF 04.0000 09/01/2018 0.58%
MULTNOMAH CO HOSP FAC 03.0000 12/01/2018 0.57%
WV EDA-A-REF 01.9000 03/01/2040 0.57%
CA STWD CMNTYS-REF 01.3750 04/01/2028 0.56%
MI STRATEGIC FUND 02.7500 11/15/2017 0.56%
MN HSG FIN AGY-A-RSDL 04.0000 07/01/2038 0.56%
MT BRD HSG-A2-SFH-AMT 03.0000 12/01/2043 0.54%
ESCAMBIA HLTH FACS-A 05.0000 08/15/2018 0.48%
PHILADELPHIA SD-D-REF 05.0000 09/01/2020 0.41%
AZ INDL DEV-A-REF P/P 144A 04.0000 07/01/2021 0.39%
CHICAGO-A 05.0000 01/01/2019 0.39%
CHICAGO-A-REF 05.0000 01/01/2021 0.39%
PA HSG-115A-AMT 01.6000 10/01/2017 0.38%
S ORANGE FING-A-REF 04.0000 08/15/2017 0.38%
WV DEV AUTH-C-REF 03.2500 05/01/2019 0.38%
KY ST ECON DEV-A 05.0000 06/01/2020 0.36%
GAINESVILLE ETC DEV 05.0000 03/01/2027 0.33%
ROSEVILLE SPL TAX-REF 04.0000 09/01/2019 0.32%
ESCAMBIA HLTH FACS-A 05.1250 08/15/2020 0.25%
PHOENIX INDL DEV AUTH 03.7500 07/01/2024 0.20%
CORONA-NORCO SD-A 04.0000 09/01/2017 0.19%
PHOENIX INDL DEV AUTH 03.0000 07/01/2020 0.19%
L A ARPT-INTL ARPT-A 05.2500 05/15/2024 0.16%
DENVER-A-AMT-ARPT REV 04.0000 11/15/2017 0.15%

Prior top 10 holdings

Top 10 holdings as of 08/31/17
Ny Mtge Agy-186-Amt 02.0000 04/01/2019
Ca Infrastructure-A2 01.3620 10/01/2047
Triboro B&T-Var 01.1790 01/01/2033
Mo H/E Var-Wa Univ-C 00.8100 09/01/2030
Ct Hlth & Eductnl-A 01.3000 07/01/2048
Ms Bus Fin-Var-E-Chev 00.8700 12/01/2030
Atlanta Wtr-Ref 04.0000 11/01/2017
New Jersey St Transpr 05.0000 06/15/2019
Main St Nat Gas Inc-A 05.0000 03/15/2018
Pasco Cnty Sch Brd-A 05.0000 08/01/2018
Holdings represent 19.60% of portfolio
Top 10 holdings as of 07/31/17
Massachusetts St-D-2 01.7000 08/01/2043
Ny Mtge Agy-186-Amt 02.0000 04/01/2019
Ca Infrastructure-A2 01.3640 10/01/2047
Ca Pollutn-Var-Ref-A P/P 144a 01.2500 08/01/2023
Triboro B&T-Var 01.1750 01/01/2033
Ct Hlth & Eductnl-A 01.3000 07/01/2048
Atlanta Wtr-Ref 04.0000 11/01/2017
Pasco Cnty Sch Brd-A 05.0000 08/01/2018
New Jersey St Transpr 05.0000 06/15/2019
Main St Nat Gas Inc-A 05.0000 03/15/2018
Holdings represent 22.64% of portfolio
Top 10 holdings as of 06/30/17
Ny Mtge Agy-186-Amt 02.0000 04/01/2019
Massachusetts St-D-2 01.2100 08/01/2043
Ca Infrastructure-A2 01.3590 10/01/2047
Triboro B&T-Var 01.1720 01/01/2033
Atlanta Wtr-Ref 04.0000 11/01/2017
Pasco Cnty Sch Brd-A 05.0000 08/01/2018
New Jersey St Transpr 05.0000 06/15/2019
Main St Nat Gas Inc-A 05.0000 03/15/2018
Pima Ida-A-Amern Chrt 05.6250 07/01/2038
San Antonio Elec-A 02.2500 02/01/2033
Holdings represent 21.61% of portfolio
Top 10 holdings as of 05/31/17
Ny Mtge Agy-186-Amt 02.0000 04/01/2019
Massachusetts St-D-2 01.0600 08/01/2043
Ca Infrastructure-A2 01.2530 10/01/2047
Triboro B&T-Var 01.0540 01/01/2033
Madison Etc Clg 05.0000 11/01/2019
Atlanta Wtr-Ref 04.0000 11/01/2017
Ky Ppty Ref-Pj No 84 05.0000 08/01/2020
New Jersey St Transpr 05.0000 06/15/2019
Pasco Cnty Sch Brd-A 05.0000 08/01/2018
Main St Nat Gas Inc-A 05.0000 03/15/2018
Holdings represent 21.52% of portfolio

Portfolio composition as of 08/31/17

Municipal bonds and notes 85.96%
Cash and net other assets 14.04%

Fixed income statistics as of 08/31/17

Average stated maturity 8.60 yrs.
Average effective maturity 1.91 yrs.
Option adjusted duration 1.62 yrs.
Duration to worst 1.60 yrs.
Average yield to maturity 1.36%
Average coupon 2.92%
Average price $103.41
AMT exposure 6.33%

Quality rating as of 08/31/17

AAA 9.31%
AA 26.11%
A 36.48%
BBB 13.22%
BB 0.54%
Not Rated 0.30%
Cash and net other assets 14.04%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer or industry. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. 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. Interest the fund receives might be taxable. Unlike bonds, funds that invest in bonds have fees and expenses. Tax-exempt bonds may be issued under the Internal Revenue Code only by limited types of issuers for limited types of projects. As a result, the fund's investments may be focused in certain market segments and be more vulnerable to fluctuations in the values of the securities it holds than a more broadly invested fund. Capital gains, if any, are taxed at the federal and, in most cases, state levels. For some investors, investment income may be subject to the federal alternative minimum tax. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of net assets as of the date indicated above. A bond rated BBB or higher (SP-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. Short-term cash bonds are included in the cash and net other assets category. Ratings and portfolio credit quality will vary over time. Derivative instruments are only included to the extent of any unrealized gain or loss on such instruments and are shown in the cash and net other assets category. Cash is also shown in the cash and net other assets category. The fund itself has not been rated by an independent rating agency.

Top Industry Sectors as of 08/31/17

Utilities 18.89%
Cash and net other assets 14.04%
Health care 13.31%
Local Debt 11.60%
Transportation 7.62%
Housing 6.62%
State Debt 6.26%
Financials 4.82%
Other 4.36%
 
Other
12.48%
Education 3.57%
Special Tax 2.92%
Land 2.43%
Prerefunded 1.76%
Industrials 1.06%
Tobacco 0.74%

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.


Expenses

Expense ratio

Class A Class B Class C Class M Class Y
Total expense ratio 1.62% 1.82% 2.37% 1.67% 1.37%
What you pay† 0.60% 0.80% 1.35% 0.65% 0.35%

† 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 03/30/18

Sales charge

Investment Breakpoint Class A Class B Class C Class M 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 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 Bloomberg Barclays 3 Year Municipal Index is a subset of the Bloomberg Barclays Municipal Bond Index, covering those issues with remaining maturities of two to three years. You cannot invest directly in an index.

Consider these risks before investing: Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including perceptions about the risk of default and expectations about monetary policy or interest rates), changes in government intervention in the financial markets, and factors related to a specific issuer or industry. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. 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. Interest the fund receives might be taxable. Unlike bonds, funds that invest in bonds have fees and expenses. Tax-exempt bonds may be issued under the Internal Revenue Code only by limited types of issuers for limited types of projects. As a result, the fund's investments may be focused in certain market segments and be more vulnerable to fluctuations in the values of the securities it holds than a more broadly invested fund. Capital gains, if any, are taxed at the federal and, in most cases, state levels. For some investors, investment income may be subject to the federal alternative minimum tax. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of net assets as of the date indicated above. A bond rated BBB or higher (SP-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. Short-term cash bonds are included in the cash and net other assets category. Ratings and portfolio credit quality will vary over time. Derivative instruments are only included to the extent of any unrealized gain or loss on such instruments and are shown in the cash and net other assets category. Cash is also shown in the cash and net other assets category. The fund itself has not been rated by an independent rating agency.