Putnam Ultra Short Duration Income Fund (Class I)

Seeking capital preservation and a higher rate of current income

Highlights

Objective

The fund 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 and process

  • A broader opportunity set: The fund 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 fund'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 fund may offer higher income potential than other short-term investments.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $10.01
0.00% | $0.00
$10.01
08/04/2019
$9.98
03/01/2019
Historical fund price

Fund facts as of 31/08/2019

Total net assets
$1,180.77M
Dividend frequency (view rate)
Monthly
Number of issuers
308
Fiscal year-end
June
CUSIP / Fund code
G7S002236 / RK8
Inception date
20/12/2016
Category
Fixed Income
Open to new investors

Net income attributable to Unitholders of Class A Units and Class I Units will be distributed monthly. The Fund does not currently intend to distribute net income to Unitholders of the other Classes of Units of the Fund.

The number of issues can be found in the fact sheet.

Management team

Portfolio Manager
Co-Head of Fixed Income
Portfolio Manager



Performance

  • Total return (%) as of 30/06/2019

  • Annual performance as of 30/06/2019

Annualized Total return (%) as of 30/06/2019

Annualized performance 1 yr. 3 yrs. 5 yrs. Life (inception: 20/12/2016 )
Before sales charge 2.54% -- -- 1.88%
ICE BofAML U.S. Treasury Bill Index 2.39%1.38%0.89%--

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 31/08/2019 0.21%
YTD as of 18/09/2019 2.19%

Yield

Distribution rate before sales charge
as of 18/09/2019
2.33%
Distribution rate after sales charge
as of 18/09/2019
2.33%

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

Top 10 issuers as of 31/08/2019

Citigroup 1.10%
Morgan Stanley 1.07%
Bank of America 1.06%
Wells Fargo 1.06%
Sumitomo Mitsui Financial 1.04%
US Bank 1.04%
PNC Bank 1.03%
UBS 1.00%
American Express 1.00%
Santander Bank 0.99%
Top 10 issuers, percent of portfolio 10.39%

Full portfolio holdings

Prior top 10 issuers

Top 10 issuers as of 31/08/2019
Citigroup
Morgan Stanley
Bank of America
Wells Fargo
Sumitomo Mitsui Financial
US Bank
PNC Bank
UBS
American Express
Santander Bank
Issuers represent 10.39% of portfolio
Top 10 issuers as of 31/07/2019
Citigroup
Morgan Stanley
Credit Suisse
Bank of America
Wells Fargo
Sumitomo Mitsui Financial
US Bank
Pnc Financial Services Group
JPMorgan Chase
UBS Group
Issuers represent 10.23% of portfolio
Top 10 issuers as of 30/06/2019
Citigroup
Bank of America
Wells Fargo
US Bank
Credit Suisse
Pnc Financial Services Group
JPMorgan Chase
Morgan Stanley
UBS Group
Bank of Montreal
Issuers represent 10.17% of portfolio
Top 10 issuers as of 31/05/2019
Citigroup
US Bank
UBS Group
Bank of Montreal
Wells Fargo
Morgan Stanley
Credit Suisse
Sumitomo Mitsui Financial
Bank of America
Jackson National Life Global Funding
Issuers represent 9.99% of portfolio

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.

The number of issues can be found in the fact sheet.

Portfolio composition as of 31/08/2019

Investment-grade corporate bonds 54.91%
Commercial paper 29.11%
Residential MBS (non-agency) 8.95%
Certificates of deposit 3.55%
Short-term asset-backed securities 2.96%
Asset-backed securities (ABS) 0.43%
Asset-backed commercial paper 0.23%
Net cash -0.14%

Fixed income statistics as of 31/08/2019

Average effective maturity 1.01 yrs.
Average effective duration 0.25 yrs.
Average yield to maturity 2.21%
Average coupon 2.21%

Quality rating as of 31/08/2019

A-1+ 2.67%
A-1 7.95%
A-2 19.71%
A-3 2.56%
AAA 7.37%
AA 19.97%
A 30.02%
BBB 9.70%
Not Rated 0.19%
Net cash -0.14%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Risks: Ultra Short Duration Income Fund is not a money market fund. The effects of inflation may erode the value of your investment over time. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are also 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 may have to invest the proceeds from prepaid investments, including mortgage-backed investments, in other investments with less attractive terms and yields. 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. 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. Credit risk is generally greater for debt not backed by the full faith and credit of the U.S. government. 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. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of net assets as of the date indicated above. A bond rated BBB or higher (A-3/SP-3 or higher, for short-term debt) 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 may vary over time. Net cash, if any, represent the market value weights of cash and derivatives and may show a negative market value as a result of the timing of trade versus settlement date transactions. The fund itself has not been rated by an independent rating agency.

Country allocation as of 31/08/2019

United States 67.94%
Canada 7.20%
United Kingdom 7.19%
France 4.52%
Netherlands 3.88%
Australia 2.64%
Japan 2.57%
Sweden 1.72%
Norway 0.87%
 
Other
1.47%
Switzerland 0.63%
Finland 0.47%
Denmark 0.34%
Bermuda 0.17%
Net cash -0.14%

Expenses

Expense ratio

Class A Class A2 Class I Class I2
Total expense ratio 0.60% 0.60% 0.35% 0.35%

The ICE BofAML U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar denominated U.S. 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. You cannot invest directly in an index.

Risks: Ultra Short Duration Income Fund is not a money market fund. The effects of inflation may erode the value of your investment over time. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are also 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 may have to invest the proceeds from prepaid investments, including mortgage-backed investments, in other investments with less attractive terms and yields. 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. 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. Credit risk is generally greater for debt not backed by the full faith and credit of the U.S. government. 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. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of net assets as of the date indicated above. A bond rated BBB or higher (A-3/SP-3 or higher, for short-term debt) 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 may vary over time. Net cash, if any, represent the market value weights of cash and derivatives and may show a negative market value as a result of the timing of trade versus settlement date transactions. The fund itself has not been rated by an independent rating agency.