Fixed Income

PSDQX Putnam Ultra Short Duration Income Fund

A broader opportunity set. The fund invests in a diversified portfolio composed of short duration, investment-grade money market and other fixed income securities.
Active risk management. In today's complex bond market, the fund's experienced managers actively manage risk with the goal of superior risk-adjusted performance over time.
Higher income potential. Access to a wider range of income opportunities means the fund may offer higher income potential than other short-term investments.

Overview

See the risks and other important information.

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 and maintenance of liquidity by investing in a diversified portfolio composed of short-duration, investment-grade money market and other fixed income securities.

Benchmark: ICE BofA U.S. Treasury Bill Index
Dividend Frequency, if any: Monthly
Fund Inception Date: 10/17/2011
Distribution Rate at NAV⁴As of 02/06/2026 (Updated Daily): 4.18%
30-Day SEC Yield—With Waiver^5,6,7As of 12/31/2025 (Updated Monthly): 3.98%
30-Day SEC Yield—Without Waiver^6,7As of 12/31/2025 (Updated Monthly): 3.94%
Effective DurationAs of 12/31/2025 (Updated Monthly): 0.49 Years

Sales Charges, Expenses & Fees

As of 12/01/2025

Gross Expense Ratio⁸: 0.33%
Net Expense Ratio^8,9: 0.29%
Maximum Initial Charge: —
CDSC: N/A
12b-1 Fee: —

Identifiers

Ticker: PSDQX
Fund Number: 8878
CUSIP Code: 74676P672

Average Annual Total Returns As of 12/31/2025

View performance section for additional info As of 12/31/2025

Class R6

With Sales Charge (POP)

Without Sales Charge (NAV)

5.00%1 Year
5.60%3 Years
3.55%5 Years
2.66%10 Years
2.07%Since Inception
10/17/2011

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 12/31/2025 % of Total (Updated Monthly)

Top Sectors
Banks40.57%
Consumer Discretionary9.92%
Insurance7.45%
Industrials5.91%
Capital Markets5.67%

Additional Fund Info

Share Class Inception Date: 07/02/2012
Investment Style: Multi-Sector
Lipper Classification: Ultra-Short Obligations Funds
Morningstar Category¹⁰: Ultrashort Bond

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

A global leader in fixed income, the team strives to provide consistent and resilient returns by combining deep fundamental research with rigorous portfolio construction. This solutions-drives approach means maintaining portfolio and risk exposures that align with client expectations.

Commentary Highlights

12/31/2025

Markets: The fourth quarter of 2025 saw monthly shifts in market sentiment as uncertainties increased in the first part of the quarter. The US federal government went into a shutdown on October 1 as the US Senate was unable to pass a spending bill. This delayed or canceled the publication of key economic data leading to a lack of clarity on the economic condition of the United States. The shutdown was lifted mid-November, and subsequent data showed that economic growth in the United States remained resilient. The US Federal Reserve delivered three consecutive 25-basis point cuts in Q4, helping market sentiment improve in December. Global economies continued to reset themselves due to US tariffs, with many looking to spur domestic growth.
Contributors: Investment grade corporate credit; Non-agency RMBS
Detractors: N/A
Outlook: Although the Fed has signaled one more cut for 2026, we continue to believe that so long as growth remains resilient and the expansion continues in line with our expectations, the Fed will remain on pause at least through Powell’s term ending in May 2026, and potentially through 2026. That said, the Fed’s reaction function does lean dovish, and any signs of labor market weakness could force additional “risk-management” cuts under Powell or his successor.

For complete information, please see the full commentary:

Franklin Templeton Fixed Income

Managed Fund Since 2011

Managed Fund Since 2021

Managed Fund Since 2019

Managed Fund Since 2011

Latest Insights

January 26, 2026

European fixed income outlook—cautious optimism

January 20, 2026

The municipal bond market outlook: Continued stability—a good sign for investors

January 15, 2026

Flash Insights: Addressing US housing affordability—a targeted financing approach

January 8, 2026

Flash Insights: Notes on Venezuela

Performance

Average Annual Total Returns

As of 12/31/2025

Month End

Quarter End

As of

Class R6 - With Sales Charge (POP) (%)

Month End

As of 12/31/2025

Class R6 - Without Sales Charge (NAV) (%)

Month End

As of 12/31/2025

ICE BofA U.S. Treasury Bill Index (%)

Month End

As of 12/31/2025

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 R6 shares on 7/2/2012. Returns for periods prior to 7/2/2012 are based on the fund's Class Y 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 01/31/2026

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

5 Years: 5 Years: 4 out of 5 stars
181 Funds in category

10 Years: 10 Years: 3 out of 5 stars
109 Funds in category

Rating Category: Ultrashort Bond

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 01/31/2026

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 of12/31/2025 (Updated Monthly)

Total Net Assets: $12.61 Billion

Positions

As of 12/31/2025 (Updated Monthly)

Number of Holdings

Fund: 568

Number of Issuers

Fund: 259

Download All Holdings

Portfolio Statistics

As of 12/31/2025 (Updated Monthly)

Weighted Average Life

Fund: 1.31 Years

Yield to Maturity ¹¹
Yield to Maturity (‘YTM’) also known as the ‘Gross Redemption Yield’ or ‘Redemption Yield’. The rate of return anticipated on a bond if it is held until the maturity date. YTM is considered a long-term bond yield expressed as an annual rate. The calculation of YTM takes into account the current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupons are reinvested at the same rate.

Fund: 3.99%

Effective Duration

Fund: 0.49 Years

Asset Allocation

As of 12/31/2025 % of Total (Updated Monthly)

Asset Allocation
Holdings	Fund
Investment-Grade Corporate Bonds	80.05%
Commercial Paper	11.37%
Short-Term Asset-Backed Securities	2.97%
Asset-Backed Securities	1.79%
Residential MBS (non-Agency)	0.87%
U.S. Treasury/Agency	0.39%
Agency CMO	0.00%
Net Cash	1.46%

Top Fixed Income Issuers

As of 12/31/2025 (Updated Monthly)

Top Fixed Income Issuers
Holdings	Fund
Morgan Stanley	1.40%
Bank of Montreal	1.32%
Bank of America	1.29%
TD Bank	1.26%
JPMorgan Chase	1.25%
Macquarie Group	1.24%
Rabobank	1.24%
UBS	1.23%
Wells Fargo	1.22%
Apollo Global Management	1.21%

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 Accrual fund.
Capital Gain Distributions: December

Proposed 2026 Distribution dates for Putnam funds (excluding ETFs).

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

Distribution Rate ⁴

As of 02/06/2026 (Updated Daily)

At Net Asset Value (NAV) 4.18%

30-Day SEC Yield ^5,6,7

As of 12/31/2025 (Updated Monthly)

w/ Waiver 3.98%

w/o Waiver 3.94%

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

01/30/2026

Pricing

Pricing History

As of 02/06/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 02/06/2026

Share Prices

As of 02/06/2026

NAV ¹(Net Asset Value): $10.16
NAV Change ¹: $0.00
NAV Change (%) ¹: 0.00%
POP ¹²(Public Offering Price): $10.16

52-Week Range

Highest NAV As of 02/06/2026: $10.16
Lowest NAV As of 04/11/2025: $10.10

Documents

Fund Literature

Fund Literature
Checkbox	Name	Download
Checkbox	Factsheet - Putnam Ultra Short Duration Income Fund	Download Document
Checkbox	Portfolio Holdings - Putnam Ultra Short Duration Income Fund
Checkbox	Product Commentary - Putnam Ultra Short Duration Income Fund	Download Document
Checkbox	Flyer - KISS your way to smarter income	Download Document

Regulatory Documents

Regulatory Documents
Checkbox	Name	Download
Checkbox	Annual Report - Putnam Ultra Short Duration Income Fund - Class R6	Download Document
Checkbox	Annual Financial Statements and Other Information - Putnam Ultra Short Duration Income Fund	Download Document
Checkbox	Semi-Annual Report - Putnam Ultra Short Duration Income Fund - Class R6	Download Document
Checkbox	Semi-Annual Financial Statements and Other Information - Putnam Ultra Short Duration Income Fund	Download Document
Checkbox	Prospectus - Putnam Ultra Short Duration Income Fund	Download Document
Checkbox	Summary Prospectus - Putnam Ultra Short Duration Income Fund	Download Document
Checkbox	Statement of Additional Information - Putnam Funds Trust	Download Document
Checkbox	Fiscal Q1 Holdings - Putnam Funds Trust	Download Document
Checkbox	Fiscal Q3 Holdings - Putnam Ultra Short Duration Income 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. 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

Total Returns include change in share price, assume reinvestment of all distributions, and reflect the deduction of fund expenses and applicable fees. Total returns, distribution rate, and yields reflect any applicable expense reductions and fee waivers; without these reductions, the results would have been lower.

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.

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.

The ICE BofA U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar denominated U.S. Treasury Bills publicly issued in the U.S. domestic market. Qualifying securities must have a remaining term of at least one month to final maturity and a minimum amount outstanding of $1 billion. You cannot invest directly in an index.

The ICE BofA U.S. Treasury Bill Index is an unmanaged index that tracks the performance of U.S. dollar-denominated U.S. Treasury bills publicly issued in the U.S. domestic market. 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.

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. ©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.
Distribution Rate is calculated by annualizing the daily accrual, 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.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
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.
©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.
Yield to Maturity is calculated without the deduction of fees and expenses.
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 for long term or A-1 for short term (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.

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PSDQX Putnam Ultra Short Duration Income Fund

Popular Documents

Overview

Fund description

Sales Charges, Expenses & Fees

Identifiers

Class R6

Top Sectors

Additional Fund Info

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Ratings 3

Portfolio

Asset Allocation

Top Fixed Income Issuers

Distributions & Tax

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

Pricing

Chart

Daily Fund Prices

Documents

Risks

Important Information

Footnotes

Ratings ³