Important update on the dividend policy for this fund: The Trustees of the Putnam Funds have approved an amendment to the dividend policy for the Putnam closed-end funds to establish targeted distribution rates for common shares. Read more here.


Master Intermediate Income Trust (Class A)  (NYSE: PIM)

A closed-end fund seeking high current income and relative stability of net asset value by investing in a wide variety of fixed-income securities globally.

Webcast | Update on Putnam closed-end funds: PIM and PPT | September 17, 2019

Highlights

A closed-end fund seeking high current income and relative stability of net asset value by investing in a wide variety of fixed-income securities globally.

The fund seeks to provide high current income and relative stability of net asset value. The fund pursues its goal by investing in U.S. high-grade, high-yield, and international fixed-income securities with limited maturities.

Strategy and process

  • Broad diversification: The fund seeks multiple sources of return outside the constraints of its benchmark, investing across traditional and alternative bond markets.
  • Flexible risk allocations: The fund takes a unique approach to asset allocation, dynamically establishing diversified risk exposures rather than sector exposures.
  • Active duration management: As the fund's duration is independent of any index, the fund employs strategies that seek to reduce interest-rate risk.

Daily pricing as of 10/11/19

Ticker NYSE: PIM
Net asset value $4.84
Net asset value change 0.02
Market price $4.59
Market price change -0.02
Discount/Premium -5.16%
Dividend rate at net asset value 7.44%
Dividend rate at market price 7.84%

Fund facts as of 06/30/19

Inception date
04/29/88
Total net assets
$250.29M
Dividend frequency
Monthly
Number of holdings
1439
Product status
Trades on secondary market
Common share CUSIP
746909100
Ticker
NYSE: PIM
Fiscal year-end
September
Category
Closed End
Turnover (fiscal year end)
715%
Number of common share accounts
--
Outstanding common shares
-
AMT
N/A

Management team

Chief Investment Officer, Fixed Income
Portfolio Manager
Portfolio Manager
Portfolio Manager
Co-Head of Fixed Income
Co-Head of Fixed Income


Literature

Fund documents

Annual Report (PDF)
Semiannual Report (PDF)
Fact Sheet (PDF)

How the Japan election may influence global interest rates
The Japan election could have consequences for the future leadership of the Bank of Japan and the country's impact on global interest rate trends.
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Why Brazil's crisis creates new concerns
The revelations of May 17 may pose a threat to President Temer's administration, and therefore a threat to Brazil's short- and medium-term economic outlook.

Performance

  • Performance as of 09/30/19

  • Annual performance as of 09/30/19

Last month Last quarter Year to date 1 yr. 3 yrs. 5 yrs. 10 yrs.
Net asset value 0.83% 1.88% 9.39% 5.02% 6.41% 3.23% 5.59%
Market price -0.23% 1.95% 14.51% 9.48% 8.36% 5.04% 5.30%
Comparative index: ICE BofAML U.S. Treasury Bill Index†
Net asset value 0.17%0.56%1.86%2.46%1.54%1.00%0.56%

Data is historical. Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Investment return at both net asset value and market price as well as principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Performance at net asset value reflects the deduction of all management and administrative fees. 12b-1 (distribution) fees are not applicable to this fund.

Performance snapshot

  Net asset value Market price
1 mt. 0.83% -0.23%
as of 09/30/19
YTD 9.62% -
as of 10/11/19

Lipper rankings as of 06/30/19

Time period Rank/Funds in category Percentile ranking
1 yr. 35/38 90%
3 yrs. 20/30 65%
5 yrs. 22/25 85%
10 yrs. 14/16 83%
Lipper category: General Bond Funds

Distribution history (past 12 mts.)

Ex-distribution date Distribution amount
per common share
09/24/19 $00.03
08/23/19 $00.03
07/24/19 $00.03
06/24/19 $00.03
05/24/19 $00.03
04/24/19 $00.03
03/22/19 $00.03
02/22/19 $00.03
01/24/19 $00.03
12/21/18 $00.03
11/23/18 $00.022
10/24/18 $00.022

Distributions are sourced entirely from net investment income, unless noted otherwise. Distribution rates represent the latest declared regular distribution, annualized, relative to the most recent market price and NAV. Special distributions, including special capital gains distributions, are not included in the calculation.

Risk characteristics 

Average effective maturity 4.22
Average stated maturity N/A
Average effective duration
without leverage
3.50
Average effective duration
with leverage
3.50
Average yield to maturity 5.85
Average coupon 5.90

Data is historical. Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Investment return at both net asset value and market price as well as principal value will fluctuate, and you may have a gain or a loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Performance at net asset value reflects the deduction of all management and administrative fees. 12b-1 (distribution) fees are not applicable to this fund.

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Past performance is not indicative of future results.

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

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 holdings as of 06/30/19

Fnma Fn30 Tba Umbs 03.5000 08/01/2049 17.15%
Fnma Fn30 Tba Umbs 04.0000 08/01/2049 7.43%
Fnma Fn30 Tba Umbs 04.0000 07/01/2049 4.54%
Gnma Gii30 Tba 04.5000 07/01/2049 3.33%
Hellenic Republic Regs 03.0000 02/24/2024 1.88%
Gnma Gii30 Tba 04.0000 07/01/2049 1.66%
Fnma Fn30 Tba Umbs 02.5000 08/01/2049 1.58%
Fnma Fn30 Tba Umbs 05.5000 08/01/2049 1.28%
Hellenic Republic Regs 03.0000 02/24/2023 1.18%
Cwalt 2006-Oa10 4a1 02.5944 08/25/2046 0.98%
Top 10 holdings, percent of portfolio 41.01%

Sector weightings as of 06/30/19

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
Agency pass-through 0.62% 0.02 34.94% 1.33 35.56% 1.35
Commercial MBS 9.14% 0.31 17.49% 0.44 26.63% 0.75
Agency CMO 21.01% 0.76 0.41% 0.02 21.42% 0.78
High-yield corporate bonds 18.84% 0.53 -4.11% -0.19 14.73% 0.34
Residential MBS (non-agency) 13.50% 0.65 0.00% 0.00 13.50% 0.65
Emerging-market bonds 12.70% 0.54 0.00% 0.00 12.70% 0.54
Convertible securities 3.95% 0.07 0.00% 0.00 3.95% 0.07
International Treasury/agency 3.73% 0.16 0.00% -0.04 3.73% 0.12
Investment-grade corporate bonds 2.47% 0.11 0.00% 0.00 2.47% 0.11
Bank loans 2.11% 0.09 0.00% 0.00 2.11% 0.09
Asset-backed securities (ABS) 0.64% 0.01 0.00% 0.00 0.64% 0.01
Equity investments 0.12% 0.00 0.00% 0.00 0.12% 0.00
Interest rate swaps 0.00% 0.00 0.00% 2.42 0.00% 2.42
U.S. Treasury/agency 0.00% 0.00 0.00% 0.13 0.00% 0.13
Net cash 11.17% 0.00 0.00% 0.00 11.17% 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

0 - 1 yr. -13.30%
1 - 5 yrs. 76.27%
5 - 10 yrs. 35.08%
10 - 15 yrs. 1.63%
Over 15 yrs. 0.32%

Quality rating

AAA 56.44%
AA 1.96%
A 0.75%
BBB 10.26%
BB 26.63%
B 13.63%
CCC and Below 5.58%
Not Rated -15.25%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Emerging-market securities carry illiquidity and volatility risks.  Lower-rated bonds may offer higher yields in return for more risk. 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. 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. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk and the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise. International investing involves currency, economic, and political risks. You can lose money by investing in the fund. The fund's shares trade on a stock exchange at market prices, which may be lower than the fund's net asset value.

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. To-be-announced (TBA) mortgage commitments, if any, are included based on their issuer ratings. Ratings may vary over time. Cash, derivative instruments, and net other assets are shown in the not-rated category. Payables and receivables for TBA mortgage commitments are included in the not-rated category and may result in negative weights. The fund itself has not been rated by an independent rating agency.

Country allocation as of 06/30/19

United States 81.08%
Greece 3.60%
Argentina 2.93%
Brazil 2.79%
Indonesia 1.75%
Mexico 1.72%
Canada 1.03%
Russia 0.76%
Ivory Coast 0.69%
 
Other
3.65%
Dominican Republic 0.67%
Bermuda 0.58%
Egypt 0.49%
United Kingdom 0.44%
Venezuela 0.35%
Luxembourg 0.31%
Germany 0.29%
Norway 0.26%
Israel 0.25%
Ireland 0.20%
France 0.18%
Senegal 0.18%
Sweden 0.16%
South Africa 0.15%
Cayman Islands 0.13%
El Salvador 0.12%
Italy 0.08%
Jamaica 0.06%
Netherlands 0.06%
Switzerland 0.06%
Spain 0.05%
Cash and net other assets -0.04%
Czech Republic -0.05%
New Zealand -0.09%
Australia -0.10%
Japan -0.16%
European Community -0.98%

†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.

Consider these risks before investing: Emerging-market securities carry illiquidity and volatility risks.  Lower-rated bonds may offer higher yields in return for more risk. 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. 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. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk and the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise. International investing involves currency, economic, and political risks. You can lose money by investing in the fund. The fund's shares trade on a stock exchange at market prices, which may be lower than the fund's net asset value.

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. To-be-announced (TBA) mortgage commitments, if any, are included based on their issuer ratings. Ratings may vary over time. Cash, derivative instruments, and net other assets are shown in the not-rated category. Payables and receivables for TBA mortgage commitments are included in the not-rated category and may result in negative weights. The fund itself has not been rated by an independent rating agency.