Putnam Securitised Credit Fund (Class I)

Highlights

Objective

The fund seeks to achieve an average annual total return, gross of fees, that exceeds the 1-Month USD LIBOR (100% hedged to and reported in the relevant currency of the unit class, where applicable) by 3.0-5.0%, as measured over a full market cycle (generally at least three years or more).

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $10.86
0.00% | $0.00
$10.87
18/11/2019
$9.77
24/12/2018
Historical fund price

Fund facts as of 31/10/2019

Total net assets
$10.65M
Dividend frequency
Semi-Annually
Number of holdings
260
Fiscal year-end
June
CUSIP / Fund code
-- / TM2
Inception date
11/07/2018
Category
Fixed Income
Open to new investors

Management team

Co-Head of Fixed Income
Portfolio Manager
Portfolio Manager


Literature


Performance

  • Total return (%) as of 30/09/2019

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

Annualized performance 1 yr. 3 yrs. 5 yrs. Life (inception: 11/07/2018 )
Before sales charge 6.90% -- -- 5.63%
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 0.19%
YTD as of 20/11/2019 10.82%

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

Fnma Fn30 Tba Umbs 03.5000 11/01/2049 48.22%
Gnma Gii30 Tba 03.0000 12/01/2049 28.97%
Fnma Fn30 Tba Umbs 03.0000 12/01/2049 9.54%
Omir 2018-1a M2 04.6728 07/25/2028 1.41%
Carr 2006-Nc2 A4 02.0628 06/25/2036 0.99%
Comm 2014-Cr17 D P/P 144a 04.8500 05/10/2047 0.97%
Cas 2017-C07 1b1 05.8228 05/25/2030 0.96%
Fnr 2017-74 Io 03.9273 10/25/2047 0.95%
Stacr 2018-Hqa1 M2 04.1228 09/25/2030 0.94%
Cas 2018-C02 2m2 04.0228 08/25/2030 0.94%
Top 10 holdings, percent of portfolio 93.89%



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.

Fixed income statistics as of 31/10/2019

Average effective maturity 6.67 yrs.
Average effective duration -0.23 yrs.
Average yield to maturity 5.66%
Average coupon 6.61%

Sector weightings as of 31/10/2019

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
Agency pass-through 0.00% 0.00 86.73% 3.51 86.73% 3.51
Commercial MBS 3.41% 0.13 39.23% 0.83 42.64% 0.96
Agency CMO 37.13% 1.33 0.00% 0.00 37.13% 1.33
Residential MBS (non-agency) 19.58% 0.88 0.00% 0.00 19.58% 0.88
Asset-backed securities (ABS) 0.56% 0.01 0.00% 0.00 0.56% 0.01
Interest rate swaps 0.00% 0.00 0.00% -2.35 0.00% -2.35
Net cash 39.32% 0.00 0.00% 0.00 39.32% 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. -46.83%
1 - 5 yrs. 112.63%
5 - 10 yrs. 34.20%

Quality rating as of 31/10/2019

AAA 154.74%
AA 2.53%
A 10.78%
BBB 2.87%
BB 1.08%
B 6.25%
CCC and Below 2.00%
Not Rated -80.25%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Funds that invest in government securities are not guaranteed. Mortgage- and asset-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. The fund may have to invest the proceeds from prepaid investments, including mortgage- and asset-backed investments, in other investments with less attractive terms and yields. The fund’s investments in mortgage-backed securities and asset-backed securities, and in certain other securities and derivatives, may be or become illiquid. The fund’s exposure to privately issued mortgage-backed securities and mortgage-backed securities issued or guaranteed by the U.S. government or its agencies or instrumentalities may make the fund’s net asset value more susceptible to economic, market, political and other developments affecting the housing or real estate markets. 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. Default risk is generally higher for non-qualified mortgages. 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 (such as a region of the United States), industry or sector, such as the housing or real estate markets. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings or in relevant markets. You can lose money by investing in the fund.

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.

Credit qualities are shown as a percentage of the fund's net assets. A bond rated BBB or higher (A-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 and portfolio credit quality will vary over time. Net cash, if any, 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.

Country allocation as of 31/10/2019

United States 98.59%
Bermuda 1.41%

Expenses

Expense ratio

Class E Class I Class S
Total expense ratio 0.70% 0.70% 0.70%

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.

Consider these risks before investing: Funds that invest in government securities are not guaranteed. Mortgage- and asset-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. The fund may have to invest the proceeds from prepaid investments, including mortgage- and asset-backed investments, in other investments with less attractive terms and yields. The fund’s investments in mortgage-backed securities and asset-backed securities, and in certain other securities and derivatives, may be or become illiquid. The fund’s exposure to privately issued mortgage-backed securities and mortgage-backed securities issued or guaranteed by the U.S. government or its agencies or instrumentalities may make the fund’s net asset value more susceptible to economic, market, political and other developments affecting the housing or real estate markets. 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. Default risk is generally higher for non-qualified mortgages. 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 (such as a region of the United States), industry or sector, such as the housing or real estate markets. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings or in relevant markets. You can lose money by investing in the fund.

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.

Credit qualities are shown as a percentage of the fund's net assets. A bond rated BBB or higher (A-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 and portfolio credit quality will vary over time. Net cash, if any, 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.