Multisector Bond
Multisector bond funds provide opportunity for investor to invest in a broad mix of bonds, including high yield or investment grade bonds issued by governments or corporations. Depending on the fund’s strategies, it may focus on various investment strategies. You can invest in your brokerage or retirement account such as 401k plan, Roth IRA, traditional IRA.One of these Multisector bond funds is Putnam Diversified Income Fund (PDINX). Putnam Investments provide an ad in one of the financial newspaper. The ad is titled as “Alternatives@Putnam.” You can find the fund ads details below. I also provide the fund review. The investment ad details are:
Alternatives@Putnam
Rising rates could undermine long-duration strategies.
Find new drivers of return.
Putnam Diversified Income Trust (PDINX)
Consider this fund for: All-weather income. The fund seeks high current income.
Why this fund:
Managed duration. Employing strategies to reduce interest-rate risk.
Sector expertise. Pursuing opportunities that require extensive fundamental research.
Broadly diversified. Investing in sectors within and beyond traditional benchmarks.
About the team:
The veteran team looks beyond the benchmark for overlooked and undervalued opportunities.
This is Putnam today.
- D. William Kohli (industry since 1986)
- Michael V. Salm (industry since 1989)
- Paul D. Scanion, CFA (industry since 1986)
Discover Putnam’s proactive approach to managing volatility and pursuing superior results. Putnam.com/DIT
Request a prospectus or summary prospectus from your financial representative or by calling Putnam at 1-800-225-1581. The prospective include investment objectives, risks, fees, expenses, and other information carefully before investing.
Putnam Retail Management
Putnam Fund Review
The Putnam Diversified Income Fund was incepted in October 3, 1988. It is currently managed by D. William Kohli, Michael J. Atkin, Kevin F. Murphy, Michael V. Salm and Paul D. Scanlon. The total net assets are $5.4 billion. This bond fund has a high dividend yield of 5.67%. The yield is distributed monthly. The annual expense ratio is 0.99%.More: Putnam Spectrum Mutual Funds
Morningstar analysts rank this PDINX fund with 2-stars and Negative rating. The YTD return is 0.18%. Since the inception, the fund has returned 20 years of positive return and 5 years of negative return. The best 1-year total return was recorded in 2009 with 57.97% and the worst in 2008 with -36.14%. Based on the load adjusted returns, the performance of this PDINX fund is as below:
- 1-year: 0.67%
- 3-year: 3.42%
- 5-year: 14.08%
- 10-year: 4.58%
PDINX Fund
The average maturity is 6.8 years and the average duration is -1.88 years. The top country allocation is United States (83.37%). The top 10 holdings as of December 2013 represent 10.31% of the total portfolio. The top sector weightings are High-yield corporate bonds (23.94%) and Agency CMO (22.48%).Investing Opinion
- This Putnam Diversified Income Fund (PDINX) has a low rating.
- The fund performance has been improving for the past 2 years. If you are interested in this fund, you should only invest in it as an alternative bond fund.
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