Emerging Markets Income Fund (Class A)  (PEMWX)

Pursuing high current income and diverse return opportunities across the emerging-market debt landscape

Highlights

Objective

The fund seeks high current income. Capital growth is a secondary goal when consistent with achieving high current income.

Strategy and process

  • Improving fundamentals: Today, many emerging-market economies are better positioned than those of developed countries, given lower sovereign debt levels and faster economic growth.
  • Diversification benefits: Emerging-market debt as an asset class offers low correlation and can help add diversification to investments in a number of more traditional asset classes.
  • Active management: Putnam's veteran fund managers have experience investing in emerging markets using fundamental research and top-down macro analysis, and have the expertise to pursue attractive opportunities while mitigating unwanted risks.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $8.07
-0.62% | $-0.05
$9.54
09/08/17
$8.07
08/15/18
Historical fund price

Fund facts as of 07/31/18

Total net assets
$17.16M
Turnover (fiscal year end)
45%
Dividend frequency (view rate)
Monthly
Number of holdings
94
Fiscal year-end
November
CUSIP / Fund code
74676A758 / 082
Inception date
03/27/13
Category
Taxable Income
Open to new investors
Ticker
PEMWX

Management team

Co-Head of Fixed Income
Portfolio Manager
Chief Investment Officer, Fixed Income


Literature


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

Performance

  • 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. Life (inception: 03/27/13 )
Before sales charge -6.86% 2.25% 2.08% 0.27%
After sales charge -10.59% 0.86% 1.25% -0.51%
Putnam Emerging Market Debt Blended Index -1.41% 3.62% 2.93% --

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 07/31/18 2.40 % -1.69 %
YTD as of 08/15/18 -11.09 % -14.64 %

Yield

Distribution rate before sales charge
as of 08/15/18
4.16%
Distribution rate after sales charge
as of 08/15/18
4.00%
30-day SEC yield with subsidy
as of 07/31/18 (after sales charge)
5.10%
30-day SEC yield without subsidy
as of 07/31/18 (after sales charge)
4.10%

Risk-adjusted performance as of 07/31/18

Sharpe ratio (3 yrs.) 0.32
Information ratio (3 yrs.) -0.52

Volatility as of 07/31/18

Standard deviation (3 yrs.) 8.17%
Beta 1.20
R-squared 0.94

Lipper rankings as of 07/31/18

Time period Rank/Funds in category Percentile ranking
1 yr. 265/269 99%
3 yrs. 178/221 81%
5 yrs. 115/154 75%
10 yrs. --  
Lipper category: Emerging Mrkts Hard Currency Debt Funds

Morningstar Ratings as of 07/31/18

Time period Funds in category Morningstar Rating
Overall 223
3 yrs. 223
5 yrs. 155
Morningstar category: Emerging Markets Bond

Distributions

Record/Ex dividend date 07/23/18
Payable date 07/25/18
Income $0.028
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

Top 10 holdings as of 07/31/18

Letras Banco Cent Argent 00.0000 09/19/2018 3.54%
Petroleos Mexicanos Usd 05.5000 01/21/2021 3.12%
Republic Of South Africa 07.7500 02/28/2023 3.00%
Titulos De Tesoreria B 10.0000 07/24/2024 2.98%
Cemex Sab De Cv Regs 06.1250 05/05/2025 2.44%
Russia Govt Bond - Ofz 08.1500 02/03/2027 2.44%
Republic Of Colombia Usd 04.5000 01/28/2026 2.39%
Mex Bonos Desarr Fix Rt 08.0000 12/07/2023 2.26%
Republic Of Chile Usd 03.1250 01/21/2026 2.19%
Republic Of Turkey Usd 05.1250 03/25/2022 2.02%
Top 10 holdings, percent of portfolio 26.38%

Full portfolio holdings as of 06/30/18

LETRAS BANCO CENT ARGENT 00.0000 09/19/2018 3.27%
PETROLEOS MEXICANOS USD 05.5000 01/21/2021 3.17%
TITULOS DE TESORERIA B 10.0000 07/24/2024 3.16%
REPUBLIC OF SOUTH AFRICA 07.7500 02/28/2023 2.82%
REPUBLIC OF COLOMBIA USD 04.5000 01/28/2026 2.41%
RUSSIA GOVT BOND - OFZ 08.1500 02/03/2027 2.41%
CEMEX SAB DE CV REGS 06.1250 05/05/2025 2.38%
REPUBLIC OF CHILE USD 03.1250 01/21/2026 2.20%
MEX BONOS DESARR FIX RT 08.0000 12/07/2023 2.13%
REPUBLIC OF TURKEY USD 05.1250 03/25/2022 2.02%
INDONESIA GOVERNMENT 07.5000 05/15/2038 1.78%
ARGENTINE REPUBLIC USD 07.6250 04/22/2046 1.72%
FED REPUBLIC OF BRAZIL USD 04.6250 01/13/2028 1.69%
PROVINCIA DE BUENOS AIRE REGS 07.8750 06/15/2027 1.53%
TURKEY GOVERNMENT BOND TRY 11.0000 03/02/2022 1.49%
INDONESIA GOVERNMENT 08.3750 09/15/2026 1.48%
IVORY COAST P/P 144A 05.2500 03/22/2030 1.45%
NOTA DO TESOURO NACIONAL 10.0000 01/01/2023 1.43%
PROV BUENOS AIRE P/P 144A 07.8750 06/15/2027 1.39%
PETROBRAS GLOBAL FINANCE USD 08.7500 05/23/2026 1.33%
INDONESIA GOVERNMENT 08.7500 05/15/2031 1.32%
MONGOLIA INTL BOND P/P 144A 08.7500 03/09/2024 1.28%
REPUBLIC OF ANGOLA REGS 09.5000 11/12/2025 1.28%
REPUBLIC OF INDONESIA REGS 05.8750 01/15/2024 1.27%
BANCO DE CREDITO P/P 144A 06.1250 04/24/2027 1.23%
RUSSIAN FEDERATION REGS 04.8750 09/16/2023 1.22%
REPUBLIC OF SOUTH AFRICA USD 05.8750 09/16/2025 1.21%
REPUBLIC OF PERU USD 07.3500 07/21/2025 1.20%
VTB BANK (VTB CAP SA P/P 144A 06.9500 10/17/2022 1.20%
MEXICHEM SAB DE CV P/P 144A 04.8750 09/19/2022 1.19%
ARAB REPUBLIC OF EGYPT REGS 07.5000 01/31/2027 1.18%
FIRST QUANTUM MINERALS L REGS 07.2500 05/15/2022 1.18%
REPUBLIC OF NIGERIA REGS 07.8750 02/16/2032 1.18%
REPUBLICA ORIENT URUGUAY USD 04.3750 10/27/2027 1.18%
BANCO NAL COSTA RICA P/P 144A 04.8750 11/01/2018 1.17%
PETROBRAS GLOBAL FIN P/P 144A 05.2990 01/27/2025 1.17%
UNITED MEXICAN STATES USD 04.0000 10/02/2023 1.17%
SOCIALIST REP OF VIE P/P 144A 04.8000 11/19/2024 1.16%
HUNGARY USD 05.3750 03/25/2024 1.15%
BONOS TESORERIA PESOS 05.0000 03/01/2035 1.14%
REP OF SRI LANKA P/P 144A 06.8500 11/03/2025 1.14%
INDO ENERGY FIN II P/P 144A 06.3750 01/24/2023 1.12%
TURKIYE GARANTI BANK P/P 144A 05.2500 09/13/2022 1.11%
COSTA RICA GOVERNMENT REGS 04.3750 04/30/2025 1.08%
IVORY COAST P/P 144A 06.1250 06/15/2033 1.03%
MALAYSIA GOVERNMENT 03.8990 11/16/2027 1.01%
DOMINICAN REPUBLIC REGS 08.6250 04/20/2027 0.99%
LEBANESE REPUBLIC REGS 07.2500 03/23/2037 0.92%
ROMANIA GOVERNMENT BOND RON 05.9500 06/11/2021 0.92%
DIGICEL GROUP LTD P/P 144A 08.2500 09/30/2020 0.90%
MEX BONOS DESARR FIX RT 07.7500 11/13/2042 0.89%
DOMINICAN REPUBLIC P/P 144A 05.5000 01/27/2025 0.88%
FIBRIA OVERSEAS FINANCE USD 05.2500 05/12/2024 0.88%
PROVINCIA DE BUENOS P/P 144A 35.8577 05/31/2022 0.84%
REPUBLIC OF EL SALVADOR REGS 05.8750 01/30/2025 0.84%
NOTA DO TESOURO NACIONAL 10.0000 01/01/2021 0.80%
NEXEN ENERGY ULC USD 06.4000 05/15/2037 0.72%
EMBRAER OVERSEAS LTD P/P 144A 05.6960 09/16/2023 0.68%
REPUBLIC OF PERU USD 08.7500 11/21/2033 0.64%
ENGIE ENERGIA CHILE P/P 144A 05.6250 01/15/2021 0.62%
REPUBLIC OF SOUTH AFRICA 08.2500 03/31/2032 0.60%
HELLENIC REPUBLIC P/P REGS 04.3750 08/01/2022 0.58%
UKRAINE GOVERNMENT REGS 07.7500 09/01/2027 0.55%
MALAYSIA GOVERNMENT 03.9550 09/15/2025 0.54%
PETROBRAS GLOBAL FINANCE USD 06.8750 01/20/2040 0.52%
LETRAS BANCO CENT ARGENT 00.0000 08/15/2018 0.50%
MEX BONOS DESARR FIX RT 07.7500 05/29/2031 0.48%
BANCO DE CREDITO DEL P/P 144A 06.8750 09/16/2026 0.32%
PETROLEOS MEXICANOS P/P 144A 07.6500 11/24/2021 0.31%
REPUBLIC OF VENEZUELA REGS 12.7500 08/23/2022 0.28%
REPUBLIC OF PERU P/P 144A 06.9000 08/12/2037 0.24%
COP/USD 07/18/2018 CITI 0.17%
PETROLEOS DE VENEZUELA S REGS 05.3750 04/12/2027 0.07%
MXN/USD 07/18/2018 HSBCB 0.06%
PETROLEOS DE VEN P/P 144A 06.0000 11/15/2026 0.04%
PETROBRAS GLOBAL FINANCE USD 06.1250 01/17/2022 0.02%
IDR/USD 08/16/2018 JPMCB 0.01%
TWD/USD 08/16/2018 BANKAM 0.01%
EUR/USD 09/19/2018 BANKAM 0.00%
EUR/USD 09/19/2018 RBSF 0.00%
PEN/USD 07/18/2018 CITI 0.00%
RON/USD 09/19/2018 SSBT 0.00%
RUB/USD 09/19/2018 JPMCB 0.00%
TWD/USD 08/16/2018 GSFX 0.00%
US 10YR NOTE (CBT)SEP18 TYU8 0.00%
US 2YR NOTE (CBT) SEP18 TUU8 0.00%
US 5YR NOTE (CBT) SEP18 FVU8 0.00%
US ULTRA BOND CBT SEP18 WNU8 0.00%
CZK/USD 09/19/2018 BANKAM -0.01%
RUB/USD 09/19/2018 BANKAM -0.01%
TRY/USD 09/19/2018 SSBT -0.01%
CNH/USD 08/16/2018 GSFX -0.03%
CNH/USD 08/16/2018 HSBCB -0.03%
BRL/USD 10/02/2018 GSFX -0.08%
PLN/USD 09/19/2018 SSBT -0.10%
ZAR/USD 07/18/2018 GSFX -0.15%

Prior top 10 holdings

Top 10 holdings as of 07/31/18
Letras Banco Cent Argent 00.0000 09/19/2018
Petroleos Mexicanos Usd 05.5000 01/21/2021
Republic Of South Africa 07.7500 02/28/2023
Titulos De Tesoreria B 10.0000 07/24/2024
Cemex Sab De Cv Regs 06.1250 05/05/2025
Russia Govt Bond - Ofz 08.1500 02/03/2027
Republic Of Colombia Usd 04.5000 01/28/2026
Mex Bonos Desarr Fix Rt 08.0000 12/07/2023
Republic Of Chile Usd 03.1250 01/21/2026
Republic Of Turkey Usd 05.1250 03/25/2022
Holdings represent 26.38% of portfolio
Top 10 holdings as of 06/30/18
Letras Banco Cent Argent 00.0000 09/19/2018
Petroleos Mexicanos Usd 05.5000 01/21/2021
Titulos De Tesoreria B 10.0000 07/24/2024
Republic Of South Africa 07.7500 02/28/2023
Republic Of Colombia Usd 04.5000 01/28/2026
Russia Govt Bond - Ofz 08.1500 02/03/2027
Cemex Sab De Cv Regs 06.1250 05/05/2025
Republic Of Chile Usd 03.1250 01/21/2026
Mex Bonos Desarr Fix Rt 08.0000 12/07/2023
Republic Of Turkey Usd 05.1250 03/25/2022
Holdings represent 25.97% of portfolio
Top 10 holdings as of 05/31/18
Letras Banco Cent Argent 00.0000 09/19/2018
Titulos De Tesoreria B 10.0000 07/24/2024
Petroleos Mexicanos Usd 05.5000 01/21/2021
Republic Of South Africa 07.7500 02/28/2023
Turkey Government Bond Try 11.0000 02/24/2027
Russia Govt Bond - Ofz 08.1500 02/03/2027
Republic Of Colombia Usd 04.5000 01/28/2026
Cemex Sab De Cv Regs 06.1250 05/05/2025
Republic Of Chile Usd 03.1250 01/21/2026
Nota Do Tesouro Nacional 10.0000 01/01/2025
Holdings represent 26.01% of portfolio
Top 10 holdings as of 04/30/18
Titulos De Tesoreria B 10.0000 07/24/2024
Petroleos Mexicanos Usd 05.5000 01/21/2021
Uruguay P/P 144a 09.8750 06/20/2022
Republic Of South Africa 07.7500 02/28/2023
Nota Do Tesouro Nacional 10.0000 01/01/2025
Cemex Sab De Cv Regs 06.1250 05/05/2025
Russia Govt Bond - Ofz 08.1500 02/03/2027
Republic Of Colombia Usd 04.5000 01/28/2026
Mex Bonos Desarr Fix Rt 08.0000 12/07/2023
Republic Of Turkey Usd 04.8750 10/09/2026
Holdings represent 25.44% of portfolio

Fixed income statistics as of 07/31/18

Average effective maturity 5.96 yrs.
Average effective duration 4.29 yrs.
Average yield to maturity 6.47%
Average coupon 6.19%
Average price $123.94

Sector weightings as of 07/31/18

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
Emerging-market bonds 89.93% 4.44 0.00% 0.00 89.93% 4.44
Net cash 6.70% 0.00 0.00% 0.00 6.70% 0.00
High-yield corporate bonds 2.07% 0.04 0.00% 0.00 2.07% 0.04
Investment-grade corporate bonds 0.72% 0.08 0.00% 0.00 0.72% 0.08
International Treasury/agency 0.58% 0.02 0.00% 0.00 0.58% 0.02
U.S. Treasury/agency 0.00% 0.00 0.00% -0.32 0.00% -0.32

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 07/31/18

0 - 1 yr. 12.38%
1 - 5 yrs. 24.60%
5 - 10 yrs. 49.70%
10 - 15 yrs. 6.31%
Over 15 yrs. 7.01%

Quality rating as of 07/31/18

AAA 0.11%
AA 0.00%
A 11.76%
BBB 32.29%
BB 23.00%
B 20.57%
CCC and Below 0.42%
Not Rated 11.85%

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. International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. 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. The fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than can a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a more diversified fund. Emerging markets often do not provide legal remedies for bondholders comparable to those available to bondholders in the United States, and it may not be possible to dispose of bonds of distressed issuers. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of the fund's net assets. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. To-be-announced (TBA) mortgage commitments, if any, are included based on their issuer ratings. Ratings may vary over time. Cash, derivative instruments, and net other assets are shown in the not-rated category. Payables and receivables for TBA mortgage commitments are included in the not-rated category and may result in negative weights. The fund itself has not been rated by an independent rating agency.

Country allocation as of 07/31/18

Mexico 12.07%
Argentina 9.99%
Brazil 8.64%
Indonesia 7.05%
United States 6.64%
Colombia 6.34%
South Africa 4.93%
Russia 4.90%
Chile 3.97%
 
Other
35.47%
Peru 3.66%
Turkey 3.07%
Ivory Coast 2.57%
Costa Rica 2.30%
Canada 1.90%
Dominican Republic 1.89%
El Salvador 1.68%
Malaysia 1.57%
Angola 1.35%
Pakistan 1.35%
Mongolia 1.33%
Egypt 1.25%
Nigeria 1.25%
Uruguay 1.21%
Sri Lanka 1.20%
Vietnam 1.19%
Hungary 1.17%
Tunisia 1.07%
Lebanon 0.97%
Romania 0.94%
Jamaica 0.88%
Greece 0.58%
Ukraine 0.58%
Venezuela 0.42%
Poland 0.05%
European Community 0.03%
Czech Republic 0.01%

Expenses

Expense ratio

Class A Class B Class C Class M Class Y
Total expense ratio 2.16% 2.91% 2.91% 2.41% 1.91%
What you pay† 1.25% 2.00% 2.00% 1.50% 1.00%

† 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 03/30/19

Sales charge

Investment Breakpoint Class A Class B Class C Class M 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 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 blended index is equally weighted between one third JPMorgan Emerging Markets Bond Index Global Diversified, one third JPMorgan Corporate Emerging Markets Bond Index Diversified, and one third JPMorgan Government Bond Index - Emerging Markets Global Diversified. 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. International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. 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. The fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than can a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a more diversified fund. Emerging markets often do not provide legal remedies for bondholders comparable to those available to bondholders in the United States, and it may not be possible to dispose of bonds of distressed issuers. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of the fund's net assets. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. To-be-announced (TBA) mortgage commitments, if any, are included based on their issuer ratings. Ratings may vary over time. Cash, derivative instruments, and net other assets are shown in the not-rated category. Payables and receivables for TBA mortgage commitments are included in the not-rated category and may result in negative weights. The fund itself has not been rated by an independent rating agency.