Putnam Income fund

Complement core income strategies with an active fund recognized for long-term performance

Putnam Income Fund offers an all-weather core bond portfolio with active flexibility to invest in corporate and mortgage credit strategies unavailable to most index strategies.

Best Fund over 10 years in the Core Bond Fund category, recognized by Lipper, 2019.

Michael Salm, Co-Head of Fixed Income
Brett Kozlowski, CFA, Portfolio Manager
Emily E. Shanks, Portfolio Manager
Management team (pictured left to right):
Michael V. Salm, Co-Head of Fixed Income
Brett S. Kozlowski, CFA, Portfolio Manager
Emily E. Shanks, Portfolio Manager

Webcast Replay

Complementing core: Insights on today's credit and securitized markets
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Video roundtable with the fund managers

How is Putnam Income Fund differentiated from other core bond funds?

"We invest along risk lines, rather than just exposures."

Brett S. Kozlowski, CFA

How is the investment team organized around the Income Fund?

"Our analysts cover investment-grade companies all the way to distressed. Rigorous analysis allows us to better identify rising stars and avoid fallen angels."

Emily E. Shanks

What are examples of outside-the- index strategies?

"All of this creates great diversification in the fund and gives us an opportunity to utilize true fundamental research."

Brett S. Kozlowski, CFA

Is credit risk a current worry for the team?

"The bigger part of the story is where are we in the credit cycle ... we are relatively constructive on the investment-grade cohort fundamentals."

Emily E. Shanks

Can CMBS perform if retail stores close?

"What you are really investing in is the property itself and the ability of the operator of that property to transition."

Brett S. Kozlowski, CFA

Performance update

Fund outperforms amid declining rates

  • Investor risk aversion and U.S. Federal Reserve policy led to declining interest rates across the yield curve in the third quarter.
  • Positions targeting prepayment risk and investments in commercial mortgage-backed securities fueled the fund’s relative outperformance. Interest-rate and yield-curve positioning slightly detracted.
  • We believe the Fed will cut rates once more this year and will continue to assess whether further reductions are needed.

What was the fund’s investment environment like during the third quarter of 2019?

The U.S.–China trade conflict, slowing global growth, and fears of a recession injected volatility and risk aversion into the market for risk assets the past three months. That said, expectations that the Federal Reserve would maintain an accommodative monetary policy helped offset fears about economic growth and skepticism that the U.S.–China trade dispute will be resolved soon. The Fed cut its target for short-term interest rates by a quarter percentage point twice during the period, its first reductions in more than a decade. The rate cuts are part of an effort to keep borrowing cheap, credit widely available, and businesses and consumers confident.


Market outlook and resources

Bond rally reflects economic uncertainty

Bond rally reflects economic uncertainty

Global growth has cooled in 2019 as trade conflicts have taken a toll on international manufacturing, investments, and financial markets.

Fixed Income Outlook | Q4 2019
Fed relieves pressure on repo market

Fed relieves pressure on repo market

In recent weeks, the Federal Reserve has provided billions of dollars of liquidity for participants in the market for repurchase agreements, or repos, to stabilize interest rates following a spike in mid-September.

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