Core Plus Fixed Income

Inception date Benchmark Total strategy assets Product literature
June 30, 1991 BBG Barclays U.S. Aggregate Bond Index $2.5B (As of October 2017) Strategy profile (PDF)
  • Highlights
  • Performance

Objective**

The strategy seeks to outperform the benchmark by 100-200 basis points 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) of 0.5 to 1.0.

Product highlights

  • The strategy mandate allows the managers to pursue investment opportunities throughout the U.S. fixed-income universe, creating a diversified portfolio across sectors, risk factors and investment horizons
  • May hold securities from a broad range of sectors within fixed income including credit (investment grade, high yield, bank loans, convertible bonds), securitized debt (MBS, CMBS, CMO, ABS), and government debt (treasuries and agencies)
  • The emphasis on portfolio construction is on making security selection the primary driver of returns, with sub-sector allocations and macro strategies (such as term structure decisions) also serving as potential alpha generators

Investment team

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

**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. See the product profile for a summary of risk considerations. As with any investment, there is a potential for profit as well as the possibility of loss.

The excess return objective is based on managing the strategy to a level of tracking error (typically 2%-4%) commensurate with the target return. Return expectations are derived using conservative cash flow assumptions for asset classes typically represented in the portfolio, including corporate credit, mortgage credit, prepayment, and term structure strategies. Target returns represent results of statistical modeling and are provided for informational purposes only. Targets are presented for the purpose of communicating the intended risk profile of the investment opportunities that Putnam will pursue and are not intended to be projections of performance. Target returns are based on a number of assumptions, are subject to significant revision and may change materially with changes in underlying observations.