U.S. Convertible Securities

The portfolio seeks, with equal emphasis, current income and capital appreciation.  Its secondary objective is conservation of capital.*

Product highlights

Inception date

July 31, 1993

Benchmark

ICE BofAML U.S. Convertible Index

Total strategy assets

$827.1M

(as of September 2019)

Investment vehicles

  • Separate account
  • Convertible securities offer strong capital appreciation potential with contractually guaranteed income
  • As a large part of the investment process, the team will use less efficient areas of the convertibles market to pursue performance
  • The team is comprised of experienced managers providing analysis of both the equity and fixed income exposures that exist in convertibles.  They are supported by Putnam's credit research team, which helps to identify opportunities in lower credit quality and unrated securities

 

*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 disclosures 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 September 30, 2019

  MTD QTD YTD 1 Year 3 Years 5 Years 10 Years
U.S. Convertible Securities (gross) -0.92% -0.23% 17.63% 6.25% 10.54% 7.16% 10.05%
U.S. Convertible Securities (net) -0.97% -0.38% 17.08% 5.59% 9.85% 6.49% 9.35%
ICE BofAML U.S. Convertible Index -0.29% 0.15% 14.68% 4.01% 10.06% 7.29% 9.94%

Calendar Year Composite Performance (%) as of September 30, 2019

  2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
U.S. Convertible Securities (gross) -2.28% 16.14% 10.61% -6.08% 8.51% 23.17% 16.30% -5.42% 20.64% 55.24%
U.S. Convertible Securities (net) -2.89% 15.41% 9.92% -6.67% 7.82% 22.37% 15.54% -6.04% 19.86% 54.15%
ICE BofAML U.S. Convertible Index 0.15% 13.70% 10.43% -2.99% 9.44% 24.92% 14.96% -5.18% 16.77% 49.13%

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 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.

Literature

Important disclosures

The Putnam Investments U.S. Convertible Securities Composite (the "Composite") seeks above-average total returns through an actively managed, broadly diversified significantly U.S. portfolio. The strategy seeks current income and capital appreciation with conservation of capital as a secondary objective. The Composite will invest largely in U.S. convertible securities and may invest in all sectors of the convertible securities universe, including convertible bonds and convertible preferred stock, as well as other security types including, but not limited to, corporate bonds and common stock. Putnam Investments utilizes specialized analysis on all sectors of the convertible universe combined with risk controlled portfolio construction. The composite's benchmark is the ICE BofA Merrill Lynch U.S. Convertible Index. The Composite comprises all fully discretionary accounts managed by Putnam Investments in this investment style. Composite may contain accounts with different but largely similar benchmarks. The Composite creation date was July 22, 2004.

The ICE BofA Merrill Lynch U.S. Convertibles Index is an unmanaged index of high-yield U.S. convertible securities.

 

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-fees 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.