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Managed Fund Since 2017
Fixed Income
PARYX Putnam Short Duration Bond Fund
- Sector diversification. The fund invests in a diversified portfolio of fixed income securities, including corporate debt, bank loans, sovereign debt, and securitized assets, such as mortgage-backed and asset-backed securities.
- Managing rate sensitivity. The fund invests in short-term bonds and other securities, and generally maintains an effective duration, or interest-rate sensitivity, of three years or less.
- Fundamental approach. The fund's experienced portfolio managers implement active strategies that consider several factors, including credit, interest-rate, and prepayment risks, and general market conditions.
Popular Documents
Total Net Assets
$1.35B
As of 10/31/2025 (Updated Monthly)
Overview
Fund Facts
Fund description
The fund seeks as high a rate of current income as the portfolio managers believe is consistent with preservation of capital by investing in short-term bonds and other securities while generally maintaining an effective duration of three years or less.
- Benchmark
- ICE BofA 1-3 Year US Corporate Index
- Additional Benchmark
- Putnam Short Duration Bond Linked Benchmark
- Dividend Frequency, if any
- Monthly
- Fund Inception Date
- 12/23/2008
- Distribution Rate at NAV
4 As of 11/13/2025 (Updated Daily) - 4.50%
- Effective Duration
As of 10/31/2025 (Updated Monthly) - 1.69 Years
Identifiers
- Ticker
- PARYX
- Fund Number
- 1863
- CUSIP Code
- 746764380
Average Annual Total Returns As of 10/31/2025
Class Y
- 5.56%1 Year
- 6.18%3 Years
- 2.80%5 Years
- 2.94%10 Years
- 2.33%Since Inception
12/23/2008
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
As of 10/31/2025 % of Total (Updated Monthly)
Additional Fund Info
- Share Class Inception Date
- 12/23/2008
- Investment Style
- Multi-Sector
- Lipper Classification
- Short Investment Grade Debt Funds
- Morningstar Category
- Short-Term Bond
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.
Commentary Highlights
June 30, 2025- Markets: There were large swings in financial market sentiment across the second quarter of 2025. In April, US President Donald Trump announced significant increases in US tariff rates as part of his “Liberation Day” measures. Spreads across fixed income sectors widened as fears grew that tariffs could lead to a drop in growth and a new round of inflationary pressures, which could damage the US economy. Subsequently, a temporary pause (in many cases, 90 days) in increased levies helped calm some of the market nerves. The passage of the “One Big Beautiful Bill” spending package after quarter-end further helped reduce the uncertainties that had been a strong headwind to fixed income markets.
- Contributors: Collateralized loan obligation (CLO) and high-yield exposures within corporate credit; securitized credit exposures, especially commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS).
- Detractors: Investment-grade (IG) exposures within corporate credit.
- Outlook: We believe the macroeconomic outlook remains resilient despite ongoing policy uncertainty, supported by strong consumption, a tight labor market and reaffirmed low tax rates. While tariffs have introduced volatility, the overall balance of risks and steady growth suggest the US Federal Reserve is likely to limit itself to at most one more rate cut this year. With resilient growth and large fiscal deficits keeping pressure on yields, we continue to expect 10-year US Treasury yields to end the year in a 4.50%–5.00% range.
Franklin Templeton Fixed Income
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Managed Fund Since 2021
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Managed Fund Since 2024
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Managed Fund Since 2021
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Managed Fund Since 2021
Latest Insights
November 12, 2025
October 30, 2025
October 28, 2025
October 9, 2025
Performance
Calendar Year Returns
As of 10/31/2025
Class Y - Without Sales Charge (NAV) (%)
ICE BofA 1-3 Year US Corporate Index (%)
Putnam Short Duration Bond 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.
Ratings 3
©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
- $1.35 Billion
Positions
As of 10/31/2025 (Updated Monthly)
Number of Holdings
- Fund
- 478
Portfolio Statistics
As of 10/31/2025 (Updated Monthly)
Effective Duration
- Fund
- 1.69 Years
- Fund
- 1.88 Years
Sector Allocation
As of 10/31/2025 % of Total (Updated Monthly)
| Sector | % of Total | Benchmark |
|---|---|---|
Corporate Bond - Investment Grade | 53.66% | 94.39% |
Residential MBS (Non-agency) | 6.47% | — |
Asset-Backed Securities | 5.48% | — |
U.S. Treasury/Agency | 5.33% | 0.11% |
Commercial Mortgage-Backed Securities | 3.45% | — |
Collateralized Loan Obligation | 3.33% | — |
Investment Vehicle | 2.54% | — |
Agency CMO | 2.03% | — |
Corporate Bond - High Yield | 1.50% | — |
Emerging Markets Bonds | 0.96% | 4.94% |
Agency Pass-through | 0.21% | — |
Local Currency Government/Agency Bonds | — | 0.26% |
Net Cash | 15.04% | 0.30% |
Holdings
As of 09/30/2025 (Updated Monthly)
US 2YR NOTE (CBT) DEC25 TUZ5
US TREASURY N/B 03.8750 05/31/2027
FRANKLIN ULTRA SHORT BOND ET SEDOL BL9YJL3
BANCO SANTANDER SA USD 01.7220 09/14/2027
GOLDMAN SACHS GROUP INC 01.9480 10/21/2027
ATHENE GLOBAL FUNDIN P/P 144A 01.7300 10/02/2026
GENERAL MOTORS FINL CO 01.5000 06/10/2026
CITIGROUP INC. 04.4500 09/29/2027
UBS GROUP AG P/P 144A 01.3050 02/02/2027
CELANESE US HOLDINGS LLC 01.4000 08/05/2026
Distributions & Tax
Federal ID Number 26-3468951
For information on tax years prior to 2008, please contact usThese amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.
Distributions per Share ($)
Jan 31
Feb 29
Mar 28
Apr 30
May 31
Jun 28
Jul 31
Aug 30
Sep 30
Oct 31
Nov 29
Dec 31
Supplemental Tax Information
- Foreign Source Income
- —
- Foreign Source Qualified Dividends
- —
- Direct U.S. Government Obligations
- 0.03%
- Specified Private Activity Bond Interest
- —
- Dividends Received Deduction
- —
- Section 163(j)
- —
- Indiana Resident Taxable Income
- —
- Utah Resident Taxable Income
- —
Franklin Templeton and its specialized investment managers and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Each investor’s tax situation is different, and is based on an individual’s tax bracket, type of account used for investment and other factors. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
Pricing
Documents
Fund Literature
| Name | Download | Add to Cart | |
|---|---|---|---|
| Factsheet - Putnam Short Duration Bond Fund | |||
| Product Commentary - Putnam Short Duration Bond Fund |
Regulatory Documents
| Name | Download | Add to Cart | |
|---|---|---|---|
| Annual Report - Putnam Short Duration Bond Fund - Class Y | |||
| Annual Financial Statements and Other Information - Putnam Short Duration Bond Fund | |||
| Semi-Annual Report - Putnam Short Duration Bond Fund Class Y | |||
| Semiannual Financial Statements and Other Information - Putnam Short Duration Bond Fund | |||
| Prospectus - Putnam Short Duration Bond Fund | |||
| Summary Prospectus - Putnam Short Duration Bond Fund | |||
| Statement Of Additional Information - Putnam Funds Trust | |||
| Fiscal Q1 Holdings - Putnam Short Duration Bond Fund | |||
| Fiscal Q3 Holdings - Putnam Short Duration Bond Fund |
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. Low-rated, high-yield bonds are subject to greater price volatility, illiquidity and possibility of default. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. 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.
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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.
The Putnam Short Duration Bond Linked Benchmark represents the performance of the ICE BofA U.S. Treasury Bill Index through May 31, 2018, and the performance of the ICE BofA 1-3 Year U.S. Corporate Index thereafter.
The ICE BofA 1-3 Year U.S. Corporate Index is an unmanaged index of U.S. investment-grade corporate debt with a remaining term to maturity of less than 3 years. Source: The index data referenced herein is the property of Intercontinental Exchange ("ICE") and/or its licensors and has been licensed for use by Franklin Templeton. ICE and its licensors accept no liability in connection with this use.
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.