Fund Evaluator:
Putnam Mortgage Securities Y (PUSYX)
Follow This Fund
Best Performing in Securitized Bond - Diversified Over the Last Year
| 8.3% | Putnam Mortgage Securities Y (PUSYX) |
| 7.8% | Putnam Mortgage Opportunities Y (PMOYX) |
| 6.0% | Diamond Hill Securitized Total Return I (DHWIX) |
| 5.7% | Diamond Hill Securitized Total Ret Inv (DHWAX) |
| 5.5% | Medlst MBS Ttl Rtn Inv (SEMPX) |
Fund Details
Putnam Mortgage Securities Y Overview
Putnam Mortgage Securities Y (PUSYX) is an actively managed Taxable Bond Securitized Bond - Diversified fund. Franklin Templeton Investments launched the fund in 1994.
The investment seeks as high a level of current income as the adviser believes is consistent with preservation of capital. Under normal circumstances, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in mortgages, mortgage-related fixed income securities and related derivatives (i.e., derivatives used to acquire exposure to, or whose underlying securities are, mortgages or mortgage-related securities).
About Putnam Mortgage Securities Y (PUSYX)
There are 3 members of the management team with an average tenure of 9.95 years: Michael Salm (2007), Jatin Misra (2017), Neil Dhruv (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 Bloomberg US MBS TR USD index with a weighting of 100%. Putnam Mortgage Securities Y has 468 securities in its portfolio. The top 10 holdings constitute 125.7% 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 Mortgage Securities Y is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Putnam Mortgage Securities Y has 1.0% 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 229.1% (228.1% domestic bond, 1.0% foreign bond and 0.0% convertible bond). Putnam Mortgage Securities Y has -127.9% of the portfolio in cash.
Assets Under Management
The fund has $26 million in total assets, which is below the $547 million average for the Securitized Bond - Diversified 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.
PUSYX 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 Mortgage Securities Y expense ratio is above average compared to funds in the Securitized Bond - Diversified category. Putnam Mortgage Securities Y has an expense ratio of 0.67%, which is 32% lower than its category average, making the fund expense ratio grade a B. 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 Mortgage Securities Y has a portfolio turnover rate of 1013%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 387% for the Securitized Bond - Diversified category.
Recently, in the month of June 2026, Putnam Mortgage Securities Y returned 0.6%, which earned it a grade of A, as the Securitized Bond - Diversified category had an average return of 0.4%. 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 Mortgage Securities Y has a trailing yield of 5.33%, which is above the 5.06% 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 Mortgage Securities Y Grades
Year to date, the fund has returned 3.7%, 1.9 percentage points better than the category, which translates into a grade of A. The fund has returned 8.3% over the past year (grade of A), 7.5% over the past three years (grade of B) and 1.6% per year over the past five years (grade of C) and 2.0% per year over the past 10 years (grade of C).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Putnam Mortgage Securities Y, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
PUSYX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PUSYX Return (NAV) | 0.6% | 2.0% | 8.3% | 7.5% | 1.6% | 2.0% |
| PUSYX Grade | A | A | A | B | C | C |
| +/- Category | 0.2% | 1.0% | 3.0% | 0.9% | -0.7% | -0.7% |
| Securitized Bond - Diversified Avg | 0.4% | 1.0% | 5.3% | 6.6% | 2.3% | 2.7% |
| PUSYX Tax Cost Ratio | na | na | 2.2% | 4.2% | 3.9% | 2.8% |
PUSYX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PUSYX Return (NAV) | 3.7% | 10.5% | 4.7% | 3.9% | -10.6% | -4.0% | -0.4% | 12.7% | -0.6% | 1.1% | 0.9% |
| PUSYX Grade | A | A | C | F | C | F | D | A | F | F | F |
| +/- Category | 1.9% | 2.4% | -1.1% | -2.8% | -1.2% | -5.8% | -1.7% | 5.5% | -2.5% | -3.1% | -2.2% |
| Securitized Bond - Diversified Avg | 1.8% | 8.1% | 5.7% | 6.6% | -9.3% | 1.8% | 1.3% | 7.2% | 1.9% | 4.2% | 3.1% |
| Risk Measures | |
| Standard Deviation: | 6.3% |
| Total Risk Index: | 0.52 - Below Average |
| Category Risk Index: | 1.42 - Above Average |
| Category Risk Grade: | D (76% Rank) |
| Beta: | 1.10 |
| R-Squared: | 93% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 5.3% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $373 Mil |
| Fund Total Assets: | $ 26 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 1013% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 18.8 years | |||
| Average Tenure: 10.0 years | |||
| Managers (Year): Salm Michael (2007), Misra Jatin (2017), Dhruv Neil (2024) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 468 |
| % in Top 10 Holdings: | 125.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 1.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 228.1% |
| Foreign Bond: | 1.0% |
| Convertible Bond: | 0.0% |
| Other: | -1.2% |
| Cash: | -127.9% |
Purchase Information
| Fund Family: | Franklin Templeton Investments |
| Phone Number: | 800-225-1581 |
| Website: | www.putnam.com |
| Status: | Open |
| Inception Date: | April 11, 1994 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.67% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.99% |
| Share Class: | Putnam Mortgage Securities A |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
