Active Income

Global Income Trust (Class Y)  (PGGYX)

Seeking attractive bond investments across world markets since 1987

Global Income Trust received an  Overall Morningstar Rating  of  

Highlights

Objective

The fund seeks high current income by investing principally in debt securities of sovereign and private issuers worldwide, including supranational issuers. Preservation of capital and long-term total return are secondary objectives, but only to the extent consistent with the objective of seeking high current income.

Strategy and process

  • Worldwide opportunities The fund's managers search for attractive income securities from a broad range of sectors in U.S. and international markets.
  • Flexible risk allocations The fund takes a unique approach to asset allocation, dynamically establishing diversified risk expo­sures rather than sector exposures.
  • Bottom-up approach Security selection is the primary driver of returns, with sub-sector allocations and macro strategies also serving as potential alpha generators.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $12.39
-0.08% | $-0.01
$12.90
01/05/21
$12.21
07/01/20
(Optional)

Fund facts as of 05/31/21

Total net assets
$253.05M
Turnover (fiscal year end)
590%
Dividend frequency (view rate)
Monthly
Number of holdings
1127
Fiscal year-end
October
CUSIP / Fund code
74677Q604 / 1820
Inception date
10/04/05
Category
Taxable Income
Open to new investors
Ticker
PGGYX

Management team

Co-Chief Investment Officer, Fixed Income
Head of Macro and Sovereign Credit
Head of Portfolio Construction
Portfolio Manager
Co-Chief Investment Officer, Fixed Income
Co-Head of Corporate and Tax-exempt Credit

Literature


Toys, cars, and the U.S. recovery
We believe growth in the United States remains strong, but expectations need to be revised lower.
Fiscal impetus and the U.S. labor market
We examine the interplay between President Biden's multi-trillion-dollar stimulus plans, the labor market, and corporate profits.
If taxes go higher, will munis be hurt?
The Administration's recent plan would increase the highest marginal income tax rate but would not likely impact muni yields.

Performance

Consistency of positive performance over five years

Performance represents 5-year returns in rolling quarter-end periods since inception.

Performance shown above does not reflect the effects of any sales charges. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please see below.

14.16%

Best 5-year annualized return

(for period ending 09/30/92)


0.22%

Worst 5-year annualized return

(for period ending 12/31/01)


5.75%

Average 5-year annualized return


  • Total return (%) as of 03/31/21

  • Annual performance as of 03/31/21

Annualized Total return (%) as of 03/31/21

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 8.74% 2.95% 3.71% 2.87%
After sales charge N/A N/A N/A N/A
Bloomberg Barclays Global Aggregate Bond Index 4.67%2.80%2.66%2.23%

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. The "before sales charge" performance does not reflect the current maximum sales charges, which we explain below. If performance did reflect the charges, it would be lower. The "after sales charge" performance (or returns at public offering price) varies by share class and fund. For class A and class M shares, the current maximum initial sales charges are 5.75% and 3.50% for equity funds and 4.00% and 3.25% for income funds, respectively (with these exceptions: 2.25% for class A of Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return Fund). Class B share performance reflects the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declines to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, Putnam Short Duration Bond Fund, Putnam Fixed Income Absolute Return Fund, and Putnam Short-Term Municipal Income Fund; for these funds, the CDSC is 1% in the first year, declines to 0.5% in the second year, and is eliminated thereafter). Class C share performance reflects a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, N, R, and Y shares prior to their inception is derived from the historical performance of class A shares by adjusting for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (note, for two funds — Putnam Tax-Free High Yield Fund and Putnam Strategic Intermediate Municipal Fund performance prior to inception is based on the historical performance of class B shares). Performance for class A, C, R6, and Y shares of Putnam Mortgage Opportunities Fund before their inception is derived from the historical performance of class I shares, which has been adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares. The "after sales charge" performance (at public offering price) for class N shares reflects the current maximum initial sales charge of 1.50%. Class R, R3, R4, R5, and R6 shares, which are available to qualified employee-benefit plans only, are sold without an initial sales charge and have no CDSC. Class Y shares are generally only available for corporate and institutional clients and have no initial sales charge. Performance for class R3 and R4 shares prior to their inception is derived from the historical performance of class Y shares by adjusting for the higher operating expenses for such shares. Performance for class R5 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower expenses; had it been adjusted, performance would be higher (with the exception of the RetirementReady Maturity, 2025, 2030, 2035, and 2040 Funds, for which performance is derived from the historical performance of class R6 shares and has been adjusted for the higher operating expenses for such shares; and the RetirementReady 2045, 2050, 2055, and 2060 Funds, for which performance is derived from the historical performance of class R6 shares and has not been adjusted for the lower expenses; had it been adjusted, performance would be higher). Performance for class R6 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would be higher. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses. Had these limits not been in place, performance would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 05/31/21 0.07% -
YTD as of 06/17/21 -2.82% -

Yield

Distribution rate before sales charge
as of 06/23/21
1.84%
Distribution rate after sales charge
as of 06/23/21
1.84%
30-day SEC yield with subsidy
as of 05/31/21
1.98%
30-day SEC yield without subsidy
as of 05/31/21
1.64%

Risk-adjusted performance as of 04/30/21

Sharpe ratio (3 yrs.) 0.39
Information ratio (3 yrs.) -0.11

Volatility as of 04/30/21

Standard deviation (3 yrs.) 5.45%
Beta 1.04
R-squared 0.69

Fixed income statistics as of 04/30/21

Average effective duration 5.51 yrs.

Lipper rankings as of 04/30/21

Time period Rank/Funds in category Percentile ranking
1 yr. 119/208 57%
3 yrs. 133/188 71%
5 yrs. 73/166 44%
10 yrs. 56/109 51%
Lipper category: Global Income Funds

Morningstar Ratings as of 04/30/21

Time period Funds in category Morningstar Rating
Overall 187
3 yrs. 187
5 yrs. 173
10 yrs. 119
Morningstar category: World Bond

Distributions

Record/Ex dividend date 05/26/21
Payable date 05/28/21
Income $0.019
Extra income --
Short-term cap. gain --
Long-term cap. gain --

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

Fnma Fn30 Tba Umbs 02.5000 06/01/2051 11.91%
Japan (10 Year Issue) 00.8000 09/20/2023 3.36%
France (Govt Of) Regs 03.2500 10/25/2021 2.62%
Fnma Fn30 Tba Umbs 03.5000 06/01/2051 2.53%
Fnma Fn30 Tba Umbs 04.0000 05/01/2051 2.13%
Japan (30 Year Issue) 02.3000 03/20/2040 1.98%
Fnma Fn30 Tba Umbs 03.0000 05/01/2051 1.25%
Japan (20 Year Issue) 02.3000 06/20/2027 1.17%
Japan (20 Year Issue) 02.2000 03/20/2031 1.16%
Uk Tsy 4 2060 Regs 04.0000 01/22/2060 1.11%
Top 10 holdings, percent of portfolio 29.22%



Fixed income statistics as of 04/30/21

Average effective maturity 9.31 yrs.
Average effective duration 5.51 yrs.
Average yield to maturity 2.56%
Average coupon 3.92%

Sector weightings as of 04/30/21

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
International Treasury/agency 27.87% 2.49 0.00% 0.31 27.87% 2.80
Agency pass-through 0.00% 0.00 22.78% 1.04 22.78% 1.04
Commercial MBS 19.46% 0.68 0.42% -0.02 19.88% 0.66
Investment-grade corporate bonds 19.64% 1.74 0.00% 0.00 19.64% 1.74
Residential MBS (non-agency) 12.48% 0.25 0.00% 0.00 12.48% 0.25
Emerging-market bonds 7.25% 0.47 0.00% 0.00 7.25% 0.47
Agency CMO 3.74% 0.12 0.02% 0.00 3.76% 0.12
High-yield corporate bonds 2.12% 0.10 0.00% 0.00 2.12% 0.10
Collateralized loan obligations 1.64% 0.05 0.00% 0.00 1.64% 0.05
Asset-backed securities (ABS) 1.48% 0.02 0.00% 0.00 1.48% 0.02
Interest rate swaps 0.00% 0.00 0.00% -1.63 0.00% -1.63
U.S. Treasury/agency 0.00% 0.00 0.00% 0.02 0.00% 0.02
Net cash 4.32% 0.00 0.00% 0.00 4.32% 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 04/30/21

0 - 1 yr. -10.35%
1 - 5 yrs. 48.71%
5 - 10 yrs. 43.67%
10 - 15 yrs. 3.19%
Over 15 yrs. 14.78%

Quality rating as of 04/30/21

AAA 42.66%
AA 14.33%
A 24.16%
BBB 29.82%
BB 4.47%
B 1.16%
CCC and Below 1.07%
Not Rated -17.67%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, 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 concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers than a diversified fund, it is vulnerable to common economic forces and may result in greater losses and volatility. 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. 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, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund's other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.

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 04/30/21

United States 60.41%
Japan 10.16%
France 6.98%
Italy 3.24%
Canada 2.49%
Spain 2.24%
United Kingdom 1.81%
Switzerland 1.15%
Mexico 0.97%
 
Other
10.55%
Australia 0.94%
Indonesia 0.91%
Belgium 0.84%
Uruguay 0.65%
Netherlands 0.59%
Dominican Republic 0.52%
Kazakhstan 0.51%
Austria 0.46%
Senegal 0.46%
China 0.42%
Brazil 0.40%
Colombia 0.40%
Bermuda 0.35%
Paraguay 0.34%
Ivory Coast 0.32%
Chile 0.30%
Sweden 0.30%
Germany 0.28%
Malaysia 0.28%
Portugal 0.28%
Ireland 0.26%
Cayman Islands 0.24%
Romania 0.22%
Saudi Arabia 0.22%
Poland 0.20%
Denmark 0.19%
Bahrain 0.18%
Finland 0.14%
Luxembourg 0.14%
Norway 0.12%
New Zealand 0.03%
South Korea 0.02%
Hong Kong 0.01%
European Community -0.97%

Expenses

Expense ratio

Class A Class B Class C Class R Class R5 Class R6 Class Y
Total expense ratio 1.20% 1.95% 1.95% 1.45% 0.86% 0.79% 0.95%
What you pay† 0.89% 1.64% 1.64% 1.14% 0.55% 0.48% 0.64%

† The fund's expense ratio is taken from the most recent prospectus and is subject to change. What you pay reflects Putnam Management's decision to contractually limit expenses through 02/28/22

Sales charge

Investment Breakpoint Class A Class B Class C Class R Class R5 Class R6 Class Y
$0-$49,999 4.00% 0.00% 0.00% -- -- -- --
$50,000-$99,999 4.00% 0.00% 0.00% -- -- -- --
$100,000-$249,999 3.25% -- 0.00% -- -- -- --
$250,000-$499,999 2.50% -- 0.00% -- -- -- --
$500,000-$999,999 0.00% -- -- -- -- -- --
$1M-$4M 0.00% -- -- -- -- -- --
$4M-$50M 0.00% -- -- -- -- -- --
$50M+ 0.00% -- -- -- -- -- --

CDSC

  Class A (sales for $500,000+) Class B Class C Class R Class R5 Class R6 Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- -- --
9 to 12 mts. 1.00% 5.00% 1.00% -- -- -- --
2 yrs. 0.00% 4.00% 0.00% -- -- -- --
3 yrs. 0.00% 3.00% 0.00% -- -- -- --
4 yrs. 0.00% 3.00% 0.00% -- -- -- --
5 yrs. 0.00% 2.00% 0.00% -- -- -- --
6 yrs. 0.00% 1.00% 0.00% -- -- -- --
7+ yrs. 0.00% 0.00% 0.00% -- -- -- --

The Bloomberg Barclays Global Aggregate Bond Index is an unmanaged index of global investment-grade fixed-income securities. You cannot invest directly in an index.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, 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 concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers than a diversified fund, it is vulnerable to common economic forces and may result in greater losses and volatility. 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. 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, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund's other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.

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.