U.S. Convertible Securities
July 31, 1993
ICE BofA U.S. Convertible Index
Total strategy assets†
(as of February 2020)
- Separate account
- Convertible securities offer strong capital appreciation potential with contractually guaranteed income
- As a large part of the investment process, the team will use less efficient areas of the convertibles market to pursue performance
- The team is comprised of experienced managers providing analysis of both the equity and fixed income exposures that exist in convertibles. They are supported by Putnam's credit research team, which helps to identify opportunities in lower credit quality and unrated securities
*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.
Annualized composite performance (%) as of February 29, 2020
|MTD||QTD||YTD||1 Year||3 Years||5 Years||10 Years|
|U.S. Convertible Securities (gross)||-3.23%||-0.71%||-0.71%||11.65%||10.69%||7.47%||9.93%|
|U.S. Convertible Securities (net)||-3.28%||-0.82%||-0.82%||10.95%||10.00%||6.80%||9.23%|
|ICE BofA U.S. Convertible Index||-2.82%||-0.09%||-0.09%||11.59%||10.22%||7.75%||9.97%|
Calendar-year composite performance (%) as of February 29, 2020
|U.S. Convertible Securities (gross)||25.61%||-2.28%||16.14%||10.61%||-6.08%||8.51%||23.17%||16.30%||-5.42%||20.64%|
|U.S. Convertible Securities (net)||24.83%||-2.89%||15.41%||9.92%||-6.67%||7.82%||22.37%||15.54%||-6.04%||19.86%|
|ICE BofA U.S. Convertible Index||23.15%||0.15%||13.70%||10.43%||-2.99%||9.44%||24.92%||14.96%||-5.18%||16.77%|
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.
The Putnam Investments U.S. Convertible Securities Composite (the "Composite") seeks above-average total returns through an actively managed, broadly diversified significantly U.S. portfolio. The strategy seeks current income and capital appreciation with conservation of capital as a secondary objective. Accounts in the Composite will invest mainly in U.S. convertible securities and may invest in all sectors of the convertible securities universe, including convertible bonds and convertible preferred stock, as well as other security types including, but not limited to, corporate bonds and common stock. The strategy utilizes specialized analysis on all sectors of the convertible universe combined with risk-controlled portfolio construction. Derivatives, including futures, options, warrants, and swaps, may be used for hedging or non-hedging purposes. The composite's benchmark is the ICE BofA U.S. Convertible Index. The Composite comprises all fully discretionary accounts, including carve-out assets, managed by Putnam Investments in this investment style. A "carve-out" is a portion of a portfolio that is by itself representative of a distinct investment strategy. It is used to create a track record for a narrower mandate from a multiple-strategy portfolio managed to a broader mandate. The Composite may contain accounts with different but largely similar benchmarks. The Composite inception date was July 31, 1993. The Composite creation date was July 22, 2004.
The ICE BofA U.S. Convertibles Index is an unmanaged index of high-yield U.S. convertible securities.
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.