Fund Evaluator:
Putnam Diversified Income C (PDVCX)
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Best Performing in Multisector Bond Over the Last Year
| 7.1% | Morningstar Multisector Bond (MSTMX) |
| 6.0% | Fidelity Advisor Strategic Income Z (FIWDX) |
| 5.4% | Russell Inv Opportunistic Credit Y (RGCYX) |
| 5.4% | Russell Inv Opportunistic Credit M (RGOTX) |
| 5.2% | Payden Managed Income SI (PKBIX) |
Fund Details
Putnam Diversified Income C Overview
Putnam Diversified Income C (PDVCX) is an actively managed Taxable Bond Multisector Bond fund. Franklin Templeton Investments launched the fund in 1999.
The investment seeks as high a level of current income as Putnam Investment Management, LLC believes is consistent with preservation of capital. The fund invests mainly in bonds that are securitized debt instruments (such as mortgage-backed investments) and related derivative instruments, and other obligations of companies and governments worldwide, including bank loans that are either investment-grade or below-investment-grade in quality (sometimes referred to as “junk bonds”) and have intermediate- to long-term maturities (three years or longer).
About Putnam Diversified Income C (PDVCX)
There are 4 members of the management team with an average tenure of 6.36 years: Michael Salm (2011), Patrick Klein (2024), Albert Chan (2020), Matthew Walkup (2024). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA US Treasury Bill TR USD index with a weighting of 100%. Putnam Diversified Income C has 975 securities in its portfolio. The top 10 holdings constitute 22.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Putnam Diversified Income C is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Putnam Diversified Income C has 19.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 103.2% (83.8% domestic bond, 19.4% foreign bond and 3.9% convertible bond). Putnam Diversified Income C has -10.1% of the portfolio in cash.
Assets Under Management
The fund has $20 million in total assets, which is below the $1 billion average for the Multisector Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
PDVCX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Putnam Diversified Income C expense ratio is high compared to funds in the Multisector Bond category. Putnam Diversified Income C has an expense ratio of 1.73%, which is 84% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Putnam Diversified Income C has a portfolio turnover rate of 549%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 162% for the Multisector Bond category.
Recently, in the month of July 2026, Putnam Diversified Income C returned -0.9%, which earned it a grade of D, as the Multisector Bond category had an average return of -0.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Putnam Diversified Income C has a trailing yield of 4.39%, which is below the 5.31% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Putnam Diversified Income C Grades
Year to date, the fund has returned 0.7%, 0.2 percentage points worse than the category, which translates into a grade of C. The fund has returned 3.3% over the past year (grade of D), 5.7% over the past three years (grade of D) and 1.7% per year over the past five years (grade of D) and 2.4% per year over the past 10 years (grade of F).
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PDVCX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PDVCX Return (NAV) | -0.9% | -0.2% | 3.3% | 5.7% | 1.7% | 2.4% |
| PDVCX Grade | D | D | D | D | D | F |
| +/- Category | -0.2% | -0.3% | -1.0% | -0.6% | -0.6% | -1.1% |
| Multisector Bond Avg | -0.7% | 0.0% | 4.3% | 6.3% | 2.4% | 3.5% |
| PDVCX Tax Cost Ratio | na | na | 1.8% | 3.6% | 2.9% | 2.3% |
PDVCX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PDVCX Return (NAV) | 0.7% | 7.8% | 4.9% | 3.9% | -3.9% | -7.6% | -1.0% | 11.3% | -2.1% | 5.9% | 4.2% |
| PDVCX Grade | C | C | D | F | A | F | F | B | C | D | F |
| +/- Category | -0.2% | -0.3% | -0.8% | -4.5% | 6.2% | -9.9% | -7.3% | 1.1% | -0.2% | -0.7% | -3.2% |
| Multisector Bond Avg | 0.9% | 8.1% | 5.7% | 8.4% | -10.1% | 2.2% | 6.3% | 10.3% | -1.9% | 6.6% | 7.5% |
| Risk Measures | |
| Standard Deviation: | 4.6% |
| Total Risk Index: | 0.37 - Low |
| Category Risk Index: | 1.02 - Average |
| Category Risk Grade: | C (45% Rank) |
| Beta: | 0.77 |
| R-Squared: | 91% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 4.4% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $893 Mil |
| Fund Total Assets: | $ 21 Mil |
| Share Class Type: | C |
| Portfolio Turnover: | 549% |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 15.3 years | |||
| Average Tenure: 6.4 years | |||
| Managers (Year): Salm Michael (2011), Chan Albert (2020), Walkup Matthew (2024), Klein Patrick (2024) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 975 |
| % in Top 10 Holdings: | 22.0% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 19.4% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 83.8% |
| Foreign Bond: | 19.4% |
| Convertible Bond: | 3.9% |
| Other: | 3.0% |
| Cash: | -10.1% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-225-1581 |
| Website: | www.putnam.com |
| Status: | Open |
| Inception Date: | February 1, 1999 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 1.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 1.00% |
Expenses and Fees | |
| Expense Ratio (%): | 1.73% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.94% |
| Share Class: | Putnam Diversified Income A |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
