Ultra Short Duration Income

The strategy aims to provide capital preservation and a rate of current income higher than U.S. Treasury bills by investing in a diversified portfolio composed of short duration, investment-grade money market and other fixed-income securities.*

Strategy highlights

Inception date

November 30, 2011

Benchmark

ICE BofA U.S. Treasury Bill Index

Total strategy assets

$18.0B

(as of August 2020)

Investment vehicles

A broader opportunity set: The strategy invests in a diversified portfolio composed of short duration, investment-grade money market and other fixed-income securities.

Active risk management: In today's complex bond market, the strategy's experienced managers actively manage risk with the goal of superior risk-adjusted performance over time.

Higher income potential: Access to a wider range of income opportunities means the strategy may offer higher income potential than other short-term investments.

*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 composite report for a summary of risk considerations. 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 August 31, 2020

  MTD QTD YTD 1 Year 3 Years 5 Years Since Inception
Ultra Short Duration Income (gross) 0.07% 0.26% 1.41% 2.22% 2.44% 2.02% 1.58%
Ultra Short Duration Income (net) 0.04% 0.20% 1.17% 1.87% 2.09% 1.67% 1.24%
ICE BofA U.S. Treasury Bill Index 0.01% 0.03% 0.70% 1.35% 1.75% 1.23% 0.74%

Calendar-year composite performance (%) as of August 31, 2020

  2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Ultra Short Duration Income (gross) 3.15% 2.24% 1.69% 1.39% 0.67% 0.91% 0.99% 1.35% -- --
Ultra Short Duration Income (net) 2.80% 1.89% 1.35% 1.04% 0.33% 0.57% 0.64% 0.99% -- --
ICE BofA U.S. Treasury Bill Index 2.35% 1.88% 0.81% 0.37% 0.09% 0.06% 0.09% 0.12% -- --

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. Please refer to the composite report and disclosures below for additional important information regarding performance disclosures and investments risks.

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

Literature

Important disclosures

The Putnam Investments Ultra Short Duration Income Composite (the "Composite") seeks high current income consistent with preservation of capital and maintenance of liquidity by investing primarily in a diversified portfolio of fixed income securities comprising short duration, investment grade money market, and fixed income securities. The Composite's benchmark is the ICE BofA U.S. Treasury Bill Index. The Composite includes all fully discretionary accounts managed by Putnam Investments in this investment style. Leverage is not utilized in any account in this Composite; however, the strategy may use derivatives (including the use of "short" derivatives, such as futures, options, and swap contracts) for hedging and non-hedging purposes. The Composite inception date was November 30, 2011. The Composite creation date was December 30, 2011. The Composite was previously named Short Duration Income.

The ICE BofA U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar-denominated Treasury bills publicly issued in the U.S. domestic market. Qualifying securities must have a remaining term of at least one month to final maturity and a minimum amount outstanding of $1 billion.  

 

Composites may include portfolios with certain existing investment restrictions that the Firm believes do not materially impact the 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 may differ materially from those of the index used for comparative purposes. Composites and benchmarks include the reinvestment of dividends and other earnings. Indexes are unmanaged and do not incur expenses. You cannot invest directly in an index. Gross-of-fee returns do 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-of-fee returns are calculated using a model fee. For the applicable time periods, net-of-fees returns reflect either the deduction of the highest management fee that is paid by a portfolio in the Composite during the performance period, applied on a monthly basis, or the deduction of the highest applicable management fee in effect during the performance period that would be charged based on the fee schedule appropriate to this mandate, without the benefit of breakpoints, applied on a monthly basis, whichever is higher. Net-of-fee calculation methodology may change over time. Actual investment advisory fees incurred by clients are typically negotiated on an individual basis and may vary depending upon, among other things, the applicable fee schedule and portfolio size. Our standard fee schedules are available upon request.