Fund Description

The fund was incepted in February 1978 and is managed by Putnam Management. The fund seeks high current income. Capital growth is a secondary goal when consistent with achieving high current income. The fund invests mainly in bonds that are obligations of U.S. companies, are below investment-grade in quality (junk bonds) and have intermediate to long-term maturities (three years or longer). Under normal circumstances, the fund invests at least 80% of its net assets in securities rated below investment grade. The fund distributes dividends monthly. Capital gains are distributed annually.