Putnam Fixed Income Global Alpha Fund (Class E)

Putnam's Fixed Income Global Alpha strategy is built on the premise that one of the most effective deliveries of fixed income alpha results from efficiently mixing as many independent investment strategies as possible.

Highlights

Objective

The fund’s objective is to achieve an annual total return that exceeds one-month LIBOR (reported in the relevant currency of the unit class, as applicable) by 3.0% or more, as measured over rolling three-year periods.

Strategy and process

  • Diversified exposure: Pursues the full opportunity set of available global fixed income instruments to diversify portfolio exposure and seek to maintain advantageous strategies regardless of market conditions.
  • Active sector allocation: Benefits from broad exposure to all sectors and subsectors including sovereign (developed and emerging), credit (investment grade, high yield, convertible bonds), and securitised (MBS, ABS, CMBS, CMO).
  • Active security selection: Emphasises security selection with subsector allocation and macro strategies (currency, country, and global term structure) also serving as important secondary alpha generators.
  • Derivatives: Uses derivatives to fine-tune portfolio strategies, to hedge risk factors and to provide an alternative to cash investments.

Fund price

Prior close 52-week high 52-week low
Net asset value €10.17
-10.71% | €-1.22
€11.39
02/12/2022
€8.89
30/06/2022
(Optional)

Fund facts as of 30/11/2022

Total net assets
$17.63M
Dividend frequency
Annually
Number of holdings
230
Fiscal year-end
June
CUSIP / Fund code
-- / DQ9
Inception date
17/07/2015
Category
Fixed Income
Open to new investors

Net income attributable to Unitholders of Class E Units will be distributed annually. The Fund does not currently intend to distribute net income to Unitholders of the other Classes of Units of the Fund.

Management team

Chief Investment Officer, Fixed Income
Head of Portfolio Construction
Portfolio Manager


Literature

Fund documents

Prospectus (PDF)
UK Country Supplement (PDF)
Fact Sheet (PDF)

Performance

  • Total return (%) as of 30/09/2022

  • Annual performance as of 30/09/2022

Annualized Total return (%) as of 30/09/2022

Annualized performance 1 yr. 3 yrs. 5 yrs. Life (inception: 17/07/2015 )
Before sales charge -10.24% -4.73% -2.53% -1.54%

Data is historical. Past performance is not a guarantee of future results. More recent returns may be more or less than those shown. Investment return and principal value will fluctuate, and you may have a gain or a loss when you sell your units. Performance assumes reinvestment of distributions at net asset value (NAV) and reflects fund operating expenses such as management fees but does not account for any taxes or sales charges. The payment of any sales charges will reduce performance. Performance for each class of Units is denominated in the currency of the respective class. 

Performance snapshot

  Before sales charge
1 mt. as of 30/11/2022 1.33%
YTD as of 05/12/2022 or prior close 4.63%

Volatility as of 31/10/2022

Standard deviation (3 yrs.) 6.59%

Fixed income statistics as of 31/10/2022

Average effective duration 1.33 yrs.

Capture ratio as of 31/10/2022

Up-market (3 yrs.) 2,525.00
Down-market (3 yrs.) 650.00

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

Csmc 2008-C1 Aj 144a 05.8164 02/15/2041 3.37%
Dresdner Fndg Trust I Regs 08.1510 06/30/2031 2.67%
Calpine Corp P/P 144a 04.5000 02/15/2028 2.50%
Staples P/P 144a 07.5000 04/15/2026 1.80%
Frontier Comm P/P 144a 05.8750 10/15/2027 1.73%
Levi Strauss P/P 144a 03.5000 03/01/2031 1.56%
Endeavor Energy P/P 144a 05.7500 01/30/2028 1.55%
Teva Pharmaceuticals Ne Usd 06.0000 04/15/2024 1.47%
Delta/Skymiles P/P 144a 04.7500 10/20/2028 1.41%
Spectrum Brands P/P 144a 05.0000 10/01/2029 1.33%
Top 10 holdings, percent of portfolio 19.38%



Unitholders may obtain more recent information about certain Funds' portfolio holdings from time to time by contacting the Manager. Portfolio holdings information will only be provided for legitimate purposes as determined by the Manager, and will be subject to a reasonable delay intended to protect the Funds.

Fixed income statistics as of 31/10/2022

Average effective maturity 3.84 yrs.
Average effective duration 1.33 yrs.
Average yield to maturity 5.00%
Average coupon 3.96%

Sector weightings as of 31/10/2022

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
High-yield corporate bonds 31.63% 1.37 8.25% 0.31 39.88% 1.68
Investment-grade corporate bonds 18.29% 0.74 0.00% 0.00 18.29% 0.74
Emerging-market bonds 11.10% 0.52 0.00% 0.00 11.10% 0.52
Commercial MBS 3.37% 0.00 0.00% 0.00 3.37% 0.00
Interest rate swaps 0.00% 0.00 0.00% -1.34 0.00% -1.34
Net cash 35.62% 0.00 0.00% 0.00 35.62% 0.00

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 31/10/2022

0 - 1 yr. 31.59%
1 - 5 yrs. 34.21%
5 - 10 yrs. 29.24%
10 - 15 yrs. 2.06%
Over 15 yrs. 2.90%

Quality rating as of 31/10/2022

AA 0.54%
A 4.55%
BBB 17.35%
BB 31.49%
B 5.90%
CCC and Below 4.55%
Net cash 35.62%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise. 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 generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. 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. Unlike bonds, funds that invest in bonds have fees and expenses.

The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. 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 is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings and portfolio credit quality will vary over time. Net cash represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency. Data in the chart reflect a new calculation methodology put into effect 6/30/22.

Country allocation as of 31/10/2022

United States 88.55%
Mexico 1.50%
Israel 1.47%
Vietnam 1.19%
Indonesia 1.09%
Egypt 1.02%
Côte d'Ivoire 0.97%
Chile 0.95%
Dominican Republic 0.87%
 
Other
2.39%
Tunisia 0.78%
Ghana 0.64%
Romania 0.61%
Germany 0.46%
Sweden 0.03%
European Community 0.02%
Norway 0.02%
United Kingdom 0.01%
New Zealand -0.01%
Switzerland -0.06%
Japan -0.11%

Expenses

Expense ratio

Class E
Total expense ratio 0.70%

The ICE BofA U.S. Dollar 1-month Constant Maturity Index tracks the performance of a synthetic asset paying Libor to a stated maturity. You cannot directly invest in an index.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise. 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 generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. 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. Unlike bonds, funds that invest in bonds have fees and expenses.

The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. 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 is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings and portfolio credit quality will vary over time. Net cash represent the market value weights of cash, derivatives, and short-term securities in the portfolio. The fund itself has not been rated by an independent rating agency. Data in the chart reflect a new calculation methodology put into effect 6/30/22.