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 shifting rate expectations

  • The U.S. Federal Reserve indicated a willingness to reduce interest rates if the outlook for economic growth weakens.
  • Investments in commercial mortgage-backed securities fueled the fund’s relative outperformance. Interest-rate and yield-curve positioning also added value.
  • We believe the Fed will cut rates at least once this year.

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

Corporate and mortgage credit generally performed well, despite a period of volatility and spread widening in May. During that month, trade negotiations between the United States and China stalled, prompting President Trump to announce that he would dramatically ramp up U.S. tariffs on Chinese imports. [Yield spreads are the yield advantage riskier bonds offer over comparable-maturity U.S. Treasuries. Bond prices rise as spreads tighten and fall as spreads widen.]

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Market outlook and resources

Bonds rally as the Fed signals possible rate cut

Bonds rally as the Fed signals possible rate cut

The global economy has cooled in 2019 as the fallout from the ongoing trade rifts, waning business confidence, and financial market volatility have kept the lid on expansion.

Fixed Income Outlook | Q3 2019
July rate cut: “Insurance” policy or recession guard?

July rate cut: “Insurance” policy or recession guard?

The Federal Reserve delivered on its widely expected quarter-percentage point interest-rate cut at the July meeting. It was the first reduction since 2008 and came in response to slowing global economic growth and muted inflation.

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