Fixed Income

PUSYX Putnam Mortgage Securities Fund

Broad securitized opportunities. The fund invests in mortgage sectors, including agency MBS and CMOs, and non-agency RMBS and CMBS, and ABS.
Higher potential returns. By investing in mortgage-backed bonds, the fund can offer the potential for higher returns than an investment strategy focused only on agency MBS.
Leading research. The fund's portfolio managers use proprietary models to assist in the evaluation of mortgage-backed bonds and to manage the fund's interest-rate risk.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks as high a level of current income as the portfolio managers believe is consistent with preservation of capital by investing in mortgage sectors, including agency mortgage-backed securities (MBS) and collateralized mortgage obligations, and non-agency residential MBS and commercial MBS, and asset-backed securities.

Benchmark: Bloomberg U.S. MBS Index
Additional Benchmark: Putnam Mortgage Securities Linked Benchmark
Dividend Frequency, if any: Monthly
Fund Inception Date: 02/08/1984
Distribution Rate at NAV⁴As of 12/09/2025 (Updated Daily): 5.57%
30-Day SEC Yield—With Waiver^5,6,7As of 11/30/2025 (Updated Monthly): 5.64%
30-Day SEC Yield—Without Waiver^5,7As of 11/30/2025 (Updated Monthly): 5.64%
Effective DurationAs of 11/30/2025 (Updated Monthly): 5.30 Years

Sales Charges, Expenses & Fees

As of 01/30/2025

Gross Expense Ratio⁸: 0.70%
Net Expense Ratio^8,9: 0.70%
Maximum Initial Charge: N/A
CDSC: N/A
12b-1 Fee: N/A

Identifiers

Ticker: PUSYX
Fund Number: 1817
CUSIP Code: 746885409

Average Annual Total Returns As of 11/30/2025

View performance section for additional info As of 11/30/2025

Class Y

With Sales Charge (POP)

Without Sales Charge (NAV)

8.56%1 Year
6.23%3 Years
0.89%5 Years
1.63%10 Years
5.48%Since Inception
02/08/1984

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

Top Sectors

View portfolio section for additional info

As of 11/30/2025 - Notional Exposure % of Total (Updated Monthly)

Top Sectors
Agency Pass-through164.99%
Agency CMO31.00%
Commercial Mortgage-Backed Securities26.70%
Residential MBS (Non-agency)20.13%
Asset-Backed Securities2.12%

Additional Fund Info

Share Class Inception Date: 04/11/1994
Investment Style: Securitized
Lipper Classification: U.S. Mortgage Funds
Morningstar Category³: Securitized Bond - Diversified

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

Franklin Templeton Fixed Income is a fixed income specialist with a measured "no surprises" approach that is committed to the goal of delivering clients consistent, predictable fixed income results. We pursue dimensional sources of potential alpha across all global fixed income securities, sectors, and markets.

Franklin Templeton Fixed Income

Managed Fund Since 2007

Managed Fund Since 2017

Managed Fund Since 2024

Latest Insights

November 18, 2025

Sector Views: Proceed with caution

November 12, 2025

Flash Insights: Rate cuts and returns—what past Fed cycles reveal

October 30, 2025

On My Mind: Dancing in the dark

October 28, 2025

Flash Insights: New York (City) state of mind—NYC mayoral election

Performance

Calendar Year Returns

As of 11/30/2025

Month End

Quarter End

Class Y - Without Sales Charge (NAV) (%)

Bloomberg U.S. MBS Index (%)

Putnam Mortgage Securities Linked Benchmark (%)

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Performance would have been lower if fees had not been waived in various periods. Total returns assume the reinvestment of all distributions and the deduction of all Fund expenses. Returns with sales charge reflect a deduction of the stated maximum sales charge. Returns without sales charge would have been lower had sales charges been reflected. An investor cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. Returns for periods of less than one year are not annualized.

See the risks and other important information.

The fund began offering Class Y shares on 4/11/1994. Returns for periods prior to 4/11/1994 are based on the fund's Class A performance, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would be higher. For periods after the share class offering, performance for the specific share class is used, reflecting the applicable expenses and maximum sales charges.

Overall Morningstar Rating: Overall Morningstar Rating: 3 out of 5 stars
As of 11/30/2025

3 Years: 3 Years: 3 out of 5 stars
82 Funds in category

5 Years: 5 Years: 3 out of 5 stars
68 Funds in category

10 Years: 10 Years: 2 out of 5 stars
43 Funds in category

Rating Category: Securitized Bond - Diversified

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Morningstar Style Box

As of 11/30/2025

Current Historical
			High
			Medium
			Low
LTD	MOD	EXT
Duration

Quality

Source: Morningstar®. The style box reveals a fund's investment style. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). For fixed income funds, the vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. Placement is determined by fund portfolio holding figures most recently entered into Morningstar's database and corresponding market conditions. Shaded areas show the past 3 years of quarterly data. Past performance does not guarantee future results.

©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Portfolio

Assets

As of10/31/2025 (Updated Monthly)

Total Net Assets: $396.56 Million

Positions

As of 10/31/2025 (Updated Monthly)

Number of Holdings

Fund: 450

Portfolio Statistics

As of 10/31/2025 (Updated Monthly)

Weighted Average Life

Fund: 12.66 Years

Effective Duration

Fund: 5.39 Years

Sector Exposure
Notional exposure figures are estimated and are intended to show the portfolio's direct exposure to securities and indirect exposure, through derivatives. Direct and indirect exposures are subject to change over time and methodologies for calculating indirect exposures vary by derivative type. Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of derivatives, unsettled trades or other factors.

As of 11/30/2025 - Notional Exposure % of Total (Updated Monthly)

Sector Exposure
Sector	% of Total	Benchmark
Agency Pass-through	164.99%	100.00%
Agency CMO	31.00%	—
Commercial Mortgage-Backed Securities	26.70%	—
Residential MBS (Non-agency)	20.13%	—
Asset-Backed Securities	2.12%	—
Net Cash	16.85%	—

Holdings
As of 10/31/2025 (Updated Monthly)

FNMA FN30 TBA UMBS 05.5000 11/01/2055

FNMA FN30 TBA UMBS 06.0000 11/01/2055

FNMA FN30 TBA UMBS 06.5000 11/01/2055

FNMA FN30 TBA UMBS 02.0000 11/01/2055

FNMA FN30 TBA UMBS 02.5000 11/01/2055

FNMA FN30 TBA UMBS 03.5000 11/01/2055

FNMA FN30 TBA UMBS 03.0000 11/01/2055

FNMA FN30 TBA UMBS 04.0000 11/01/2052

GNMA GII30 TBA 04.5000 11/01/2055

FNMA FN30 TBA UMBS 04.5000 11/01/2055

Portfolio holdings are based on the total portfolio and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security.

Distributions & Tax

Distribution Frequency
Ex-Dividend Fund: This type of fund declares periodic dividends, which are paid to shareholders who own the fund as of a certain date - known as the "record date". After the record date, the fund is said to be trading "ex-dividend"(literally, without the dividend). An investor who buys shares during the interval between the record date and the payment of the dividend does not receive the dividend. A fund that's in the ex-dividend period is marked with an "x" in newspaper listings.

Daily Accrual Fund: This type of fund typically declares income dividends each day that its net asset value is calculated. These dividends remain in the fund until the designated reinvestment or payment date and are distributed to the shareholders, generally once a month, as additional shares or cash, respectively.: MonthlyThis fund is an ex-Dividend fund
Capital Gain Distributions: December

Rates and Yields Read important information about results and other investment disclosures

Distribution Rate ⁴

As of 12/09/2025 (Updated Daily)

At Net Asset Value (NAV) 5.57%

30-Day SEC Yield ^5,6,7

As of 11/30/2025 (Updated Monthly)

w/ Waiver 5.64%

w/o Waiver 5.64%

Final composition of the current year’s distribution—income, capital gains and/or return of capital—are based on US tax rules and will be determined by February of the following year. For tax characterization of a distribution, such as return of capital and tax-exempt income, click on the “Tax Information” tab above.

Distributions Per Share
Distributions with future dates are estimates and those figures are not final

12/26/2025

11/24/2025

10/28/2025

09/25/2025

08/26/2025

07/28/2025

06/25/2025

05/27/2025

04/21/2025

03/20/2025

Pricing

Pricing History

As of 12/09/2025 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 12/09/2025

Share Prices

As of 12/09/2025

NAV ¹(Net Asset Value): $7.74
NAV Change ¹: $-0.02
NAV Change (%) ¹: -0.26%
POP ¹⁰(Public Offering Price): $7.74

52-Week Range

Highest NAV As of 12/09/2024: $8.33
Lowest NAV As of 04/21/2025: $7.41

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download	Add to Cart
Checkbox	Factsheet - Putnam Mortgage Securities Fund	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Putnam Mortgage Securities Fund - Class Y	Download Document
Checkbox	Annual Financial Statements and Other Information - Putnam Mortgage Securities Fund	Download Document
Checkbox	Semi-Annual Report - Putnam Mortgage Securities Fund - Class Y	Download Document
Checkbox	Semi-Annual Financial Statements and Other Information - Putnam Mortgage Securities Fund	Download Document
Checkbox	Prospectus - Putnam Mortgage Securities Fund	Download Document
Checkbox	Summary Prospectus - Putnam Mortgage Securities Fund	Download Document
Checkbox	Statement Of Additional Information - Putnam Mortgage Securities FundMailed hardcopies unavailable.	Download Document
Checkbox	Policy and Procedures - Putnam Mortgage Securities FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q1 Holdings - Putnam Mortgage Securities FundMailed hardcopies unavailable.	Download Document
Checkbox	Fiscal Q3 Holdings - Putnam Mortgage Securities FundMailed hardcopies unavailable.	Download Document

Risks

All investments involve risks, including possible loss of principal. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. Active management does not ensure gains or protect against market declines. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund's prospectus.

Important Information

Most funds offer multiple share classes. Share classes are subject to different fees and expenses, which will affect their performance.

Certain share classes are only offered to eligible investors as stated in the prospectus. Different minimums may apply to clients of certain service agents. All classes of shares are not available through all distribution channels. See the Fund's prospectus for additional information.

You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.

Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

Putnam Mortgage Securities Linked Benchmark represents the performance of the Bloomberg GNMA Index through April 18, 2018, and the performance of the Bloomberg U.S. MBS Index thereafter.

The Bloomberg U.S. MBS Index is an unmanaged index of agency mortgage-backed pass-through securities (both fixed-rate and hybrid adjustable-rate mortgages) guaranteed by Ginnie Mae, Fannie Mae, and Freddie Mac. Source: Bloomberg Indices.

Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

Putnam funds are not exchangeable for other funds distributed by Franklin Distributors, LLC.

Franklin Distributors, LLC. Member FINRA/SIPC. Putnam Investment is a Franklin Templeton company. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.

Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

Footnotes

Net Asset Value - the amount per share you would receive if you sold shares that day. NAV Change indicates a change in the Net Asset Value from the previous business day.
Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics.
Distribution Rate is calculated by annualizing the most recent distribution amount paid, divided by the NAV as of the date indicated. The Distribution Rate calculation includes income and return of capital, and excludes special distributions. The Distribution Rate is not guaranteed, subject to change, and is not a quotation of fund performance.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
Public Offering Price – the purchase price for each share of the fund on a given day. It includes the maximum initial sales charge, if any.
Credit Quality is a measure of a bond issuer's ability to repay interest and principal in a timely manner. The credit ratings shown are based on each portfolio security's rating as provided by S&P Global Ratings, Moody's Investors Service and/or Fitch Ratings, Inc. and typically range from AAA (highest) to D (lowest), or an equivalent and/or similar rating. For this purpose, if two or more of the agencies have assigned differing ratings to a security, the highest rating is used. Securities that are unrated by all three agencies are reflected as such. The credit quality of the investments in the portfolio does not apply to the stability or safety of the portfolio. The methodology used for the calculation of credit quality ratings displayed may differ from the methodology for monitoring investment limits, if applicable. Please note, the portfolio itself has not been rated by an independent rating agency.

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Sunday	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday

Individual Investor

Financial Professional

Institutional Investor