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Managed Fund Since 2011
Fixed Income
PSDYX 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.
Popular Documents
Total Net Assets
$12.78B
As of 06/30/2026 (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 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 NAV
4 As of 08/06/2026 (Updated Daily) - 4.12%
- Effective Duration
As of 06/30/2026 (Updated Monthly) - 0.52 Years
Identifiers
- Ticker
- PSDYX
- Fund Number
- 1878
- CUSIP Code
- 74676P698
Average Annual Total Returns As of 06/30/2026
Class Y
- 4.24%1 Year
- 5.27%3 Years
- 3.87%5 Years
- 2.77%10 Years
- 2.11%Since Inception
10/17/2011
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.
Top Sectors
As of 06/30/2026 % of Total (Updated Monthly)
Banks44.31% | |
Consumer Discretionary7.81% | |
Insurance6.75% | |
Capital Markets6.20% | |
Industrials4.80% |
Additional Fund Info
- Share Class Inception Date
- 10/17/2011
- Investment Style
- Multi-Sector
- Lipper Classification
- Ultra-Short Obligations Funds
- Morningstar Category
10 - 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-driven approach means maintaining portfolio and risk exposures that align with client expectations.
Commentary Highlights
June 30, 2026- Markets: Some of the risk aversion that had characterized financial markets at the end of the previous quarter eased during the second quarter, although geopolitical developments remained a key focus. The Middle East conflict continued to drive sentiment through the quarter, with markets reacting to shifting news around negotiations, before the United States and Iran signed a 14-point Memorandum of Understanding (MOU) in late June. The MOU formalized a ceasefire, established a 60-day negotiation framework and included provisions to restore shipping through the Strait of Hormuz. The US dollar was modestly stronger over the quarter, appreciating against most other currencies. The Federal Reserve (Fed) kept policy rates unchanged, but its tone became more hawkish overall as internal disagreement over the easing bias increased, minutes suggested rates could remain unchanged for longer, and the June meeting removed previous easing guidance despite a more dovish press conference from new Fed Chair Kevin Warsh. The benchmark 10-year UST yield rose by 15 basis points to 4.47% over the quarter. Fixed income volatility measures eased during the quarter as risk aversion retreated somewhat. For similar reasons, credit spreads narrowed over the quarter, with the declines more pronounced in the high-yield sectors. Total returns in corporate bonds were positive over the quarter. Securitized sectors generated a positive excess return versus duration-matched Treasuries.
- Contributors: Investment grade corporate credit; ABS; Non-agency RMBS
- Detractors: N/A
- Outlook: On interest rates, the June FOMC reinforced our view that the Fed is likely to remain on hold in the near term, but the balance of risks has shifted modestly toward further tightening. With inflation continuing to firm and real policy rates already drifting lower, a year-end or early-2027 rate hike cannot be ruled out. Our base case remains one of continued economic expansion rather than recession, with inflation proving more persistent than previously expected. While geopolitical developments and supply-side risk continue to warrant close monitoring, the greater near-term focus is on whether inflation pressures remain sufficiently strong to prompt additional Fed tightening.
Franklin Templeton Fixed Income
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Managed Fund Since 2021
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Managed Fund Since 2019
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Managed Fund Since 2011
Latest Insights
August 6, 2026
July 30, 2026
July 17, 2026
Performance
Average Annual Total Returns
As of 06/30/2026
Selected Month June 2026
Class Y - With Sales Charge (POP) (%)
Month End
As of 06/30/2026
- 1 Year
- 4.24
- 3 Years
- 5.27
- 5 Years
- 3.87
- 10 Years
- 2.77
- Since Inception(10/17/2011)
- 2.11
Class Y - Without Sales Charge (NAV) (%)
Month End
As of 06/30/2026
- 1 Year
- 4.24
- 3 Years
- 5.27
- 5 Years
- 3.87
- 10 Years
- 2.77
- Since Inception(10/17/2011)
- 2.11
ICE BofA U.S. Treasury Bill Index (%)
Month End
As of 06/30/2026
- 1 Year
- 3.94
- 3 Years
- 4.71
- 5 Years
- 3.54
- 10 Years
- 2.36
- Since Inception(10/17/2011)
- 1.64
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
©2026 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 of06/30/2026 (Updated Monthly)
- Total Net Assets
- $12.78 Billion
Positions
As of 06/30/2026 (Updated Monthly)
Number of Holdings
- Fund
- 551
- Fund
- 251
Portfolio Statistics
As of 06/30/2026 (Updated Monthly)
Asset Allocation
As of 06/30/2026 % of Total (Updated Monthly)
| Holdings | Fund |
|---|---|
Investment-Grade Corporate Bonds | 84.13% |
Commercial Paper | 4.90% |
Short-Term Asset-Backed Securities | 2.66% |
U.S. Treasury/Agency | 2.05% |
Asset-Backed Securities | 1.73% |
Residential MBS (non-Agency) | 0.77% |
Agency CMO | 0.00% |
Net Cash | 2.48% |
Top Fixed Income Issuers
As of 06/30/2026 (Updated Monthly)
| Holdings | Fund |
|---|---|
U.S. Treasury | 2.05% |
Mizuho Financial Group | 1.43% |
Citigroup | 1.42% |
JPMorgan Chase | 1.39% |
Rabobank | 1.35% |
Scotiabank | 1.34% |
Bank of America | 1.34% |
Bank of Montreal | 1.33% |
Lloyds Banking Group | 1.32% |
La Caixa | 1.28% |
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
- MonthlyThis fund is an Accrual fund.
- Capital Gain Distributions
- December
Rates and Yields
Distribution Rate
At Net Asset Value (NAV) 4.12%
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
07/31/2026
06/30/2026
05/29/2026
04/30/2026
03/31/2026
02/27/2026
01/30/2026
Pricing
Documents
Fund Literature
Factsheet - Putnam Ultra Short Duration Income Fund
Portfolio Holdings - Putnam Ultra Short Duration Income Fund
Product Commentary - Putnam Ultra Short Duration Income Fund
Flyer - KISS your way to smarter income
Regulatory Documents
Annual Report - Putnam Ultra Short Duration Income Fund - Class Y
Annual Financial Statements and Other Information - Putnam Ultra Short Duration Income Fund
Semi-Annual Report - Putnam Ultra Short Duration Income Fund - Class Y
Semi-Annual Financial Statements and Other Information - Putnam Ultra Short Duration Income Fund
Prospectus - Putnam Ultra Short Duration Income Fund
Summary Prospectus - Putnam Ultra Short Duration Income Fund
Statement of Additional Information - Putnam Funds Trust
Fiscal Q1 Holdings - Putnam Funds Trust
Fiscal Q3 Holdings - Putnam Funds Trust
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.
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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.
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. 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.
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.
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.