Core Global Fixed Income

The strategy seeks to outperform the benchmark over a full market cycle. Active risk will be managed commensurate to the strategy's performance goal with a target Information Ratio (measure of excess return divided by risk) from 0.5 to 1.0.*

Strategy highlights

Inception date

August 31, 1993

Benchmark

BBG Barclays Global Aggregate Bond Index

Total strategy assets

$3.6B

(as of January 2020)

Investment vehicles

  • Separate account
  • The team's approach to global fixed-income investing seeks to efficiently track primary benchmark risks, while retaining the flexibility to emphasize what we believe are the most attractive strategies from a risk/return perspective across all countries and sectors of the global fixed-income universe
  • May hold securities from a broad range of sectors, including sovereign (developed and emerging), credit (investment grade, high yield, bank loans, convertible bonds), and securitized debt (MBS, ABS, CMBS, CMO)
  • The emphasis in portfolio construction is on making security selection the primary driver of returns with sub-sector allocations and macro strategies (such as country, currency, and global term structure decisions) also serving as potential alpha generators

Information ratio targets are based on a number of assumptions and are subject to revision and may change materially with changes in underlying observations.

*No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her initial investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risks involved before deciding to invest. See the composite report for a summary of risk considerations. As with any investment, there is a potential for profit as well as the possibility of loss.

Assets may include accounts that are not reflected in the composite.

Investment team

Performance

Annualized composite performance (%) as of January 31, 2020

  MTD QTD YTD 1 Year 3 Years 5 Years 10 Years
Core Global Fixed Income (gross) 0.63% 0.63% 0.63% 8.51% 5.88% 4.01% 4.13%
Core Global Fixed Income (net) 0.60% 0.60% 0.60% 8.13% 5.50% 3.65% 3.67%
BBG Barclays Global Aggregate Bond Index 1.28% 1.28% 1.28% 6.58% 4.32% 2.60% 2.56%

Calendar-year composite performance (%) as of January 31, 2020

  2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Core Global Fixed Income (gross) 10.51% -1.68% 10.95% 3.33% -3.93% 1.37% 1.18% 8.12% 2.61% 10.65%
Core Global Fixed Income (net) 10.12% -2.03% 10.56% 2.97% -4.26% 0.95% 0.63% 7.52% 2.05% 10.04%
BBG Barclays Global Aggregate Bond Index 6.84% -1.20% 7.40% 2.09% -3.15% 0.59% -2.60% 4.32% 5.64% 5.54%

Past performance is not a guarantee of future results. An investment in this strategy could lose value. Most recent month-end performance is preliminary. Returns are subject to change. Please refer to the composite report and disclosures below for additional important information regarding performance disclosures and investments risks.

Periods less than one year are not annualized. Performance is stated in U.S. dollars. and includes the reinvestment of dividends and interest.

Literature

Important disclosures

The Putnam Investments Core Global Fixed Income Composite (the “Composite”) seeks to outperform the benchmark, the Bloomberg Barclays Global Aggregate Bond Index, over a full market cycle. Active risk will be managed commensurate to the strategy's performance goal with a target Information Ratio (measure of excess return divided by risk) from 0.5 to 1.0. The strategy seeks to efficiently track primary benchmark risks, while retaining the flexibility to emphasize what we believe are the most attractive strategies from a risk/return perspective across all countries and sectors of the global fixed-income universe. Accounts in the Composite may hold securities from a broad range of sectors, including sovereign (developed and emerging), credit (investment grade, high yield, bank loans, convertible bonds), and securitized debt (MBS, ABS, CMBS, CMO). The Composite’s benchmark is the Bloomberg Barclays Global Aggregate Bond Index. The Composite may include accounts with different, but largely similar benchmarks. Leverage is not utilized in any account in the Composite. However, derivatives (including forwards, futures, options, and swaps) are allowed for hedging, an alternative to investing in cash markets, and managing portfolio characteristics such as position of yield curve. The Composite includes all fully discretionary accounts managed by Putnam in this investment style. The Composite inception date was August 31, 1993. The Composite creation date was June 3, 2003.

The Bloomberg Barclays Global Aggregate Bond Index provides a broad-based measure of the global investment grade fixed-rate debt markets.

Composites may include portfolios with certain existing investment restrictions that the Firm believes do not materially impact the investment strategy. Benchmarks are generally taken from published sources and may have different calculation methodologies, pricing times, and/or foreign-exchange sources from the composite. The effect of those differences is generally deemed to be immaterial. The securities holdings of the Composite may differ materially from those of the index used for comparative purposes. Composites and benchmarks include the reinvestment of dividends and other earnings. Indexes are unmanaged and do not incur expenses. You cannot invest directly in an index. Gross-of-fee returns do not include the deduction of management fees and other expenses that may be incurred in managing an investment account. A portfolio's return will be reduced by advisory and other fees. Net-of-fee returns are calculated using a model fee. For the applicable time periods, net-of-fees returns reflect either the deduction of the highest management fee that is paid by a portfolio in the Composite during the performance period, applied on a monthly basis, or the deduction of the highest applicable management fee in effect during the performance period that would be charged based on the fee schedule appropriate to this mandate, without the benefit of breakpoints, applied on a monthly basis, whichever is higher. Net-of-fee calculation methodology may change over time. Actual investment advisory fees incurred by clients are typically negotiated on an individual basis and may vary depending upon, among other things, the applicable fee schedule and portfolio size. Our standard fee schedules are available upon request.