Fund Evaluator:
Putnam Ultra Short Duration Income C (PSDLX)
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Fund Details
Putnam Ultra Short Duration Income C Overview
Putnam Ultra Short Duration Income C (PSDLX) is an actively managed Taxable Bond Ultrashort Bond fund. Franklin Templeton Investments launched the fund in 2011.
The investment seeks as high a rate of current income as Putnam Investment Management, LLC believes is consistent with preservation of capital and maintenance of liquidity. The fund invests in a diversified portfolio of fixed income securities comprised of short duration, investment-grade money market and other fixed income securities. It may also invest in U.S. dollar-denominated foreign securities of these types. Under normal circumstances, the effective duration of the fund's portfolio will generally not be greater than one year.
About Putnam Ultra Short Duration Income C (PSDLX)
There are 4 members of the management team with an average tenure of 10.45 years: Michael Salm (2011), Michael Lima (2019), Andrew Benson (2021), Joanne Driscoll (2011). 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 Ultra Short Duration Income C has 538 securities in its portfolio. The top 10 holdings constitute 5.8% 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 Ultra Short Duration Income C is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Putnam Ultra Short Duration Income C has 39.5% 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 82.5% (43.0% domestic bond, 39.5% foreign bond and 0.0% convertible bond). Putnam Ultra Short Duration Income C has 17.5% of the portfolio in cash.
Assets Under Management
The fund has $19 million in total assets, which is below the $950 million average for the Ultrashort 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.
PSDLX 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 Ultra Short Duration Income C expense ratio is high compared to funds in the Ultrashort Bond category. Putnam Ultra Short Duration Income C has an expense ratio of 0.82%, which is 83% 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 Ultra Short Duration Income C has a portfolio turnover rate of 61%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 77% for the Ultrashort Bond category.
Recently, in the month of July 2026, Putnam Ultra Short Duration Income C returned 0.2%, which earned it a grade of F, as the Ultrashort Bond category had an average return of 0.3%. 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 Ultra Short Duration Income C has a trailing yield of 3.84%, which is below the 4.21% 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 Ultra Short Duration Income C Grades
Year to date, the fund has returned 1.8%, 0.3 percentage points worse than the category, which translates into a grade of F. The fund has returned 3.6% over the past year (grade of F), 4.7% over the past three years (grade of F) and 3.4% per year over the past five years (grade of D) and 2.3% per year over the past 10 years (grade of F).
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PSDLX 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 |
|
| PSDLX Return (NAV) | 0.2% | 0.8% | 3.6% | 4.7% | 3.4% | 2.3% |
| PSDLX Grade | F | D | F | F | D | F |
| +/- Category | -0.1% | -0.1% | -0.5% | -0.5% | -0.2% | -0.4% |
| Ultrashort Bond Avg | 0.3% | 0.9% | 4.1% | 5.2% | 3.6% | 2.7% |
| PSDLX Tax Cost Ratio | na | na | 1.6% | 1.8% | 1.4% | 0.9% |
PSDLX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PSDLX Return (NAV) | 1.8% | 4.5% | 5.1% | 5.5% | 0.6% | -0.3% | 1.0% | 2.3% | 1.4% | 0.9% | 0.7% |
| PSDLX Grade | F | F | F | D | B | F | D | F | D | F | F |
| +/- Category | -0.3% | -0.4% | -0.7% | -0.4% | 0.8% | -0.4% | -0.6% | -0.7% | -0.2% | -0.7% | -0.8% |
| Ultrashort Bond Avg | 2.1% | 4.9% | 5.9% | 5.9% | -0.2% | 0.1% | 1.5% | 3.1% | 1.7% | 1.6% | 1.5% |
| Risk Measures | |
| Standard Deviation: | 0.5% |
| Total Risk Index: | 0.04 - Low |
| Category Risk Index: | 0.85 - Average |
| Category Risk Grade: | C (42% Rank) |
| Beta: | 0.06 |
| R-Squared: | 68% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 3.8% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $12699 Mil |
| Fund Total Assets: | $ 20 Mil |
| Share Class Type: | C |
| Portfolio Turnover: | 61% |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 14.8 years | |||
| Average Tenure: 10.4 years | |||
| Managers (Year): Salm Michael (2011), Driscoll Joanne (2011), Lima Michael (2019), Benson Andrew (2021) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 538 |
| % in Top 10 Holdings: | 5.8% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 39.5% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 43.0% |
| Foreign Bond: | 39.5% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 17.5% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-225-1581 |
| Website: | www.putnam.com |
| Status: | Open |
| Inception Date: | October 17, 2011 |
| 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: | 0.50% |
Expenses and Fees | |
| Expense Ratio (%): | 0.82% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.45% |
| Share Class: | Putnam Ultra Short Duration Income Y |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
