Investment Grade Corporate Credit
September 30, 2009
BBG Barclays U.S. Corporate Bond Index
Total strategy assets†
(as of May 2021)
- Separate account
- The team believes generating outperformance over time requires avoiding deteriorating credits, identifying opportunities for capital appreciation, adhering to a stringent risk management process, and actively managing the portfolio's profile from the top down
- The managers emphasize a top-down macro framework with a bottom-up fundamental credit research as the primary driver of portfolio returns, seeking to exploit inefficiencies and opportunities within the investment-grade market
- Security selection is primarily driven by weighing the relative value offered versus the potential risk-adjusted return
- Invests mainly in investment-grade, corporate debt securities, but may also invest in some high-yield and emerging-market debt as well as derivatives
- Tracking error will typically range between 1.25% and 2.0%
- Typical duration of +/- 0.25 per year versus the index
Tracking error targets are based on a number of assumptions and are subject to revision and may change materially with changes in underlying assumptions. While the investment manager considers tracking error in the investment process, the strategy's composition and performance may vary substantially from that of the target. Achieved tracking error is the result of many factors, including market conditions and there can be no assurance that the tracking error actually reflected in client portfolios will be at levels indicated in the investment objectives.
*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. 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.
Annualized composite performance (%) as of May 31, 2021
|MTD||QTD||YTD||1 Year||3 Years||5 Years||10 Years|
|Investment Grade Corporate Credit (gross)||0.68%||1.86%||-3.06%||3.14%||7.40%||5.95%||5.75%|
|Investment Grade Corporate Credit (net)||0.65%||1.80%||-3.20%||2.78%||7.03%||5.58%||5.38%|
|BBG Barclays U.S. Corporate Bond Index||0.77%||1.88%||-2.85%||3.64%||7.00%||5.03%||4.91%|
Calendar-year composite performance (%) as of May 31, 2021
|Investment Grade Corporate Credit (gross)||10.40%||15.96%||-3.12%||8.35%||7.44%||-0.58%||9.59%||0.93%||14.82%||4.25%|
|Investment Grade Corporate Credit (net)||10.01%||15.55%||-3.46%||7.97%||7.06%||-0.93%||9.20%||0.57%||14.42%||3.88%|
|BBG Barclays U.S. Corporate Bond Index||9.89%||14.54%||-2.51%||6.42%||6.11%||-0.68%||7.46%||-1.53%||9.82%||8.15%|
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.
Periods less than one year are not annualized. Performance is stated in U.S. dollars and includes the reinvestment of dividends and interest.
The Putnam Investments Investment Grade Corporate Credit Composite (the "Composite") seeks to achieve above-average total return with commensurate volatility relative to the benchmark through an actively managed, broadly diversified exposure to investment-grade issues over a credit cycle. The strategy emphasizes a top-down macro framework with a bottom-up fundamental credit research as the primary driver of portfolio returns, seeking to exploit inefficiencies and opportunities within the investment-grade market. Accounts in the composite invest mainly in investment-grade, corporate debt securities, but may also invest in some high-yield and emerging-market debt as well as derivatives. Leverage is not utilized in any account in this Composite; however, accounts in the Composite may use derivatives, including the use of "short" derivatives, such as futures, options, warrants, and swap contracts, for hedging or non-hedging purposes. The Composite's benchmark is the Bloomberg Barclays U.S. Corporate Bond Index. The Composite includes all fully discretionary accounts, including carve-out assets, managed in this style by Putnam Investments. Carve-out assets included in the Composite are managed separately with their own cash. A "carve-out" is a portion of a portfolio that is by itself representative of a distinct investment strategy. It is used to create a track record for a narrower mandate from a multiple-strategy portfolio managed to a broader mandate. The Composite inception date was September 30, 2009. The Composite creation date was October 5, 2009.
The Bloomberg Barclays U.S. Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers.
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.