Active Allocation

Putnam Total Return Fund (Class I)

A global allocation strategy that seeks to improve risk-adjusted returns for a better investment experience through full market cycles.

Highlights

Objective

The fund aims to provide a positive total return, both relative and absolute, throughout varying market conditions.

Strategy and process

  • A more efficient risk/return profile: The fund's dynamic risk allocation process leads to greater risk efficiency.
  • Active allocations across four types of risk: Allocations to sources of market risk - equity, credit, rates and inflation - are dynamic rather than static.
  • A disciplined investment process: The investment process has three components: Building a strategic policy portfolio, dynamically allocating risk and actively executing investment strategies.
  • Experienced portfolio managers: Putnam's dedicated Global Asset Allocation group has managed multi-asset strategies since 1994 and institutional risk allocation portfolios since 2006.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $12.58
0.24% | $0.03
$12.62
01/11/2019
$10.86
24/12/2018
Historical fund price

Fund facts as of 31/10/2019

Total net assets
$118.02M
Dividend frequency
Annually
Number of holdings
1245
Fiscal year-end
June
CUSIP / Fund code
G73008446 / 7KX
Inception date
28/12/2012
Category
Asset Allocation
Open to new investors

Net income attributable to Unitholders of Class E Units and Class S 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, Global Asset Allocation
Co-Head of Global Asset Allocation
Co-Head of Global Asset Allocation
Portfolio Manager



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. Life (inception: 28/12/2012 )
Before sales charge -1.34% 4.11% 3.01% 3.35%
ICE BofAML USD 1-Month LIBOR Index 2.44%1.68%1.12%--

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 0.48%
YTD as of 15/11/2019 13.44%

Risk-adjusted performance as of 31/10/2019

Sharpe ratio (3 yrs.) 0.44

Volatility as of 31/10/2019

Standard deviation (3 yrs.) 7.77%

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

Gnma Gii30 Tba 03.5000 11/01/2049 2.64%
Fnma Fn30 Tba Umbs 04.0000 11/01/2049 2.64%
Fnma Fn30 Fm1521 Umbs 04.0000 05/01/2049 1.77%
Jpmorgan Chase & Co Sedol 2190385 1.03%
Apple Inc Sedol 2046251 1.01%
Alphabet Inc-Cl A Sedol Byvy8g0 1.00%
Verizon Communications Inc Sedol 2090571 0.94%
Fnma Fn30 Tba Umbs 06.0000 11/01/2049 0.94%
Microsoft Corp Sedol 2588173 0.92%
Fnma Fn30 Tba Umbs 03.5000 11/01/2049 0.87%
Top 10 holdings, percent of portfolio 13.76%



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.

Portfolio composition as of 31/10/2019

U.S. TIPS 31.23%
International bonds 26.05%
U.S. Equity 19.31%
Commodities 17.84%
U.S. Investment-grade bonds 14.92%
U.S. High-yield bonds 13.70%
International equity 11.15%
Emerging-market bonds 5.24%
Emerging-markets equity 5.00%
Real estate investment trust 4.32%
U.S. money markets -48.75%

Fixed income statistics as of 31/10/2019

Average effective maturity 7.95 yrs.
Average effective duration 6.29 yrs.

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Risks: Emerging-market securities carry illiquidity and volatility risks. The fund may invest a portion of its assets in small and/or midsize companies. Such investments increase the risk of greater price fluctuations. Funds that invest in government securities are not guaranteed. Mortgage-backed securities 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. Allocation of assets among asset classes may hurt performance, and efforts to diversify risk through the use of leverage and allocation decisions may not be successful. If the quantitative models or data that are used in managing the fund prove to be incorrect or incomplete, investment decisions made in reliance on the models or data may not produce the desired results and the fund may realize losses. Derivatives carry additional risks, such as the inability to terminate or sell derivatives positions and the failure of the other party to meet its obligations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. 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. Unlike bonds, funds that invest in bonds have fees and expenses. Active trading strategies may lose money or not earn a return sufficient to cover trading and other costs. Use of leverage obtained through derivatives increases these risks by increasing investment exposure. Over-the-counter derivatives are also subject to the risk of the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. REITs are subject to the risk of economic downturns that have an adverse impact on real estate markets. The use of short selling may result in losses if the securities appreciate in value. Commodities involve market, political, regulatory, and natural conditions risks. 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, asset class, geography, industry or sector. International investing involves currency, economic, and political risks. 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.


Expenses

Expense ratio

Class A Class B Class C Class E Class I Class M
Total expense ratio 1.80% 2.30% 2.05% 1.05% 1.05% 1.80%

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

Risks: Emerging-market securities carry illiquidity and volatility risks. The fund may invest a portion of its assets in small and/or midsize companies. Such investments increase the risk of greater price fluctuations. Funds that invest in government securities are not guaranteed. Mortgage-backed securities 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. Allocation of assets among asset classes may hurt performance, and efforts to diversify risk through the use of leverage and allocation decisions may not be successful. If the quantitative models or data that are used in managing the fund prove to be incorrect or incomplete, investment decisions made in reliance on the models or data may not produce the desired results and the fund may realize losses. Derivatives carry additional risks, such as the inability to terminate or sell derivatives positions and the failure of the other party to meet its obligations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. 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. Unlike bonds, funds that invest in bonds have fees and expenses. Active trading strategies may lose money or not earn a return sufficient to cover trading and other costs. Use of leverage obtained through derivatives increases these risks by increasing investment exposure. Over-the-counter derivatives are also subject to the risk of the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. REITs are subject to the risk of economic downturns that have an adverse impact on real estate markets. The use of short selling may result in losses if the securities appreciate in value. Commodities involve market, political, regulatory, and natural conditions risks. 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, asset class, geography, industry or sector. International investing involves currency, economic, and political risks. 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.