Putnam Global High Yield Bond Fund (Class I)

Seeking attractive bond investment across the world markets

Highlights

Objective

The fund seeks high current income. Capital growth is a secondary goal when consistent with achieving higher current income.

Strategy and process

  • Extensive capabilities: The fund's long-tenured managers are backed by the deep experience of Putnam's US and European high-yield team.
  • Active approach: The managers constantly evaluate changing global bond markets and uncover opportunities through a combination of fundamental and quantitative analysis.
  • Diversified exposure: The fund is diversified across countries, industries, sectors, companies and credit ratings within the global high-yield universe to help reduce volatility.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $2.55
-0.39% | $-0.01
$2.57
05/11/2019
$2.36
28/12/2018
Historical fund price

Fund facts as of 31/10/2019

Total net assets
$345.32M
Dividend frequency
Monthly
Number of holdings
539
Fiscal year-end
June
CUSIP / Fund code
G73008446 / 2IK
Inception date
08/06/2000
Category
Fixed Income
Open to new investors

The Fund does not currently intend to distribute net income to class E2 Unitholders.

Management team

Co-Head of Fixed Income
Portfolio Manager
Portfolio Manager
Portfolio Manager


Literature

Fund documents

Fact Sheet (PDF)
UK Country Supplement (PDF)
Daily yields (PDF)

Performance

  • Total return (%) as of 30/09/2019

  • Annual performance as of 30/09/2019

Annualized Total return (%) as of 30/09/2019

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 6.89% 5.68% 4.96% 7.41%
ICE BofAML Global HY IG Country Constrained Index 6.94%6.20%5.45%8.06%

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 31/10/2019 0.39%
YTD as of 15/11/2019 12.58%

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

Charter Communications 2.09%
Sprint Communications 1.76%
Bausch Health 1.66%
Altice Numericable 1.63%
Altice USA 1.63%
Tenet Healthcare 1.60%
Netflix 1.16%
Ally Financial 1.14%
Hca 1.06%
Centurylink 1.05%
Top 10 holdings, percent of portfolio 14.78%



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 31/10/2019

Average effective maturity 3.53 yrs.
Average effective duration 2.92 yrs.
Average yield to maturity 4.92%
Average coupon 5.44%

Sector weightings as of 31/10/2019

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
High-yield corporate bonds 77.10% 2.29 0.00% 0.00 77.10% 2.29
Investment-grade corporate bonds 10.16% 0.52 0.00% 0.00 10.16% 0.52
Emerging-market bonds 1.58% 0.07 0.00% 0.00 1.58% 0.07
Convertible securities 0.46% 0.01 0.00% 0.00 0.46% 0.01
International Treasury/agency 0.43% 0.03 0.00% 0.00 0.43% 0.03
Equity investments 0.39% 0.00 0.00% 0.00 0.39% 0.00
Net cash 9.88% 0.00 0.00% 0.00 9.88% 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 31/10/2019

0 - 1 yr. 21.43%
1 - 5 yrs. 53.28%
5 - 10 yrs. 22.04%
10 - 15 yrs. 2.03%
Over 15 yrs. 1.22%

Quality rating as of 31/10/2019

AAA 0.01%
BBB 10.72%
BB 42.21%
B 29.96%
CCC and Below 6.63%
Not Rated 0.59%
Net cash 9.88%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Risks: 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. The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers than a diversified fund, it is vulnerable to common economic forces and may result in greater losses and volatility. 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. You can lose money by investing in the fund.

Top industry sectors as of 31/10/2019

Consumer cyclicals 19.45%
Communication services 14.73%
Basic materials 10.49%
Net Cash 9.88%
Financials 8.79%
Health care 8.62%
Consumer staples 7.33%
Capital goods 7.27%
Energy 6.75%
 
Other
6.69%
Technology 3.50%
Utilities 2.81%
Transportation 0.38%

Allocations may not total 100% of net assets because the table includes the notional value of certain derivatives (the economic value for purposes of calculating periodic payment obligations), in addition to the market value of securities.

Sectors will vary over time.

Country allocation as of 31/10/2019

United States 73.95%
Canada 4.88%
France 3.80%
Luxembourg 3.22%
United Kingdom 2.74%
Netherlands 2.72%
Ireland 1.68%
Spain 1.27%
Switzerland 1.23%
 
Other
4.51%
Israel 1.02%
Italy 0.80%
Germany 0.79%
Norway 0.50%
Mexico 0.38%
Sweden 0.34%
Bermuda 0.31%
Cayman Islands 0.31%
Indonesia 0.18%
European Community -0.12%

Expenses

Expense ratio

Class A Class B Class C Class E Class I Class S Class S3
Total expense ratio 1.59% 2.09% 1.99% 0.74% 0.74% 0.74% -

The ICE BofAML Global High Yield Investment Grade Country Constrained Index is an unmanaged, USD-hedged index of high yield corporate bonds from those countries that issue investment-grade government bonds. It is not possible to invest directly in an index.

Risks: 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. The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers than a diversified fund, it is vulnerable to common economic forces and may result in greater losses and volatility. 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. You can lose money by investing in the fund.