Core Global Fixed Income

The strategy seeks to outperform its benchmark over a full market cycle while efficiently tracking primary benchmark risks. The strategy's flexible approach emphasizes attractive risk/return opportunities across countries and sectors within the global fixed-income universe.*

Strategy highlights

Inception date

August 31, 1993

Benchmark

Bloomberg Global Aggregate Bond Index

Total strategy assets

$2.8B

(as of April 2022)

Investment vehicles

  • Separate account
  • The team's approach to global fixed-income investing seeks to efficiently track primary benchmark risks, while retaining the flexibility to emphasize what we believe are the most attractive strategies from a risk/return perspective across all countries and sectors of the global fixed-income universe
  • May hold securities from a broad range of sectors, including sovereign (developed and emerging), credit (investment grade, high yield, bank loans, convertible bonds), and securitized debt (MBS, ABS, CMBS, CMO)
  • The emphasis in portfolio construction is on making security selection the primary driver of returns with sub-sector allocations and macro strategies (such as country, currency, and global term structure decisions) also serving as potential alpha generators

 

*No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her initial investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risks involved before deciding to invest. As with any investment, there is a potential for profit as well as the possibility of loss.

Assets may include accounts that are not reflected in the composite.

Investment team

Performance

Annualized composite performance (%) as of April 30, 2022

  MTD QTD YTD 1 Year 3 Years 5 Years 10 Years
Core Global Fixed Income (gross) -4.99% -4.99% -10.71% -14.12% -1.27% 0.72% 1.43%
Core Global Fixed Income (net) -5.02% -5.02% -10.82% -14.42% -1.61% 0.37% 1.03%
Bloomberg Global Aggregate Bond Index -5.48% -5.48% -11.30% -12.63% -1.09% 0.33% 0.35%

Calendar-year composite performance (%) as of April 30, 2022

  2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Core Global Fixed Income (gross) -6.38% 7.87% 10.51% -1.68% 10.95% 3.33% -3.93% 1.37% 1.18% 8.12%
Core Global Fixed Income (net) -6.71% 7.49% 10.12% -2.03% 10.56% 2.97% -4.26% 0.95% 0.63% 7.52%
Bloomberg Global Aggregate Bond Index -4.71% 9.20% 6.84% -1.20% 7.40% 2.09% -3.15% 0.59% -2.60% 4.32%

Past performance is not a guarantee of future results. An investment in this strategy could lose value. Most recent month-end performance is preliminary. Returns are subject to change.

Periods less than one year are not annualized. Performance is stated in U.S. dollars and includes the reinvestment of dividends and interest.

Literature


Commercial mortgage credit recovering from the pandemic

Portfolio Manager Brett Kozlowski, CFA, describes how Putnam focused its specialized expertise on the CMBS sector during the pandemic and how the team is finding compelling opportunities in that space.


Important disclosures

 

The Putnam Investments Core Global Fixed Income Composite (the “Composite”) seeks to outperform the benchmark, the Bloomberg Global Aggregate Bond Index, over a full market cycle. Active risk will be managed commensurate to the strategy's performance goal with a target Information Ratio (measure of excess return divided by risk) from 0.5 to 1.0. The strategy seeks to efficiently track primary benchmark risks, while retaining the flexibility to emphasize what we believe are the most attractive strategies from a risk/return perspective across all countries and sectors of the global fixed-income universe. Accounts in the Composite may hold securities from a broad range of sectors, including sovereign (developed and emerging), credit (investment grade, high yield, bank loans, convertible bonds), and securitized debt (MBS, ABS, CMBS, CMO). The Composite’s benchmark is the Bloomberg Global Aggregate Bond Index. The Composite may include accounts with different, but largely similar benchmarks. Leverage is not utilized in any account in the Composite. However, derivatives (including forwards, futures, options, and swaps) are allowed for hedging, an alternative to investing in cash markets, and managing portfolio characteristics such as position of yield curve. The Composite includes all fully discretionary accounts managed by Putnam in this investment style. The Composite inception date was August 31, 1993. The Composite creation date was June 3, 2003.

The Bloomberg Global Aggregate Bond Index provides a broad-based measure of the global investment grade fixed-rate debt markets.


Gross performance includes the deduction of transaction costs but does not include the deduction of management fees and other expenses that may be incurred in managing an investment account. A portfolio's return will be reduced by advisory and other fees. Net performance reflects the deduction of a model fee applied on a monthly basis, equal to the actual management fee incurred by a portfolio in the Composite or the highest management fee that would be charged to a prospect of the strategy, whichever is higher. The model fee may change over time. Actual advisory fees may vary among clients with the same investment strategy. The Composite includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the Composite's investment strategy. Benchmarks are generally taken from published sources and may have different calculation methodologies, pricing times, and/or foreign-exchange sources from the Composite. The effect of those differences is generally deemed to be immaterial. The securities holdings of the Composite strategy may differ materially from those of the index used for comparative purposes.