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Having trouble finding a Diversified Bonds fund? Putnam Diversified Income Y (PDVYX - Free Report) is a possible starting point. PDVYX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify PDVYX in the Diversified Bonds category, an area that is rife with potential choices. Diversified Bonds funds offer exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. Generally speaking, bond funds here will have sizable exposure to government debt, as well as modest holdings in the corporate bond market too.
History of Fund/Manager
Putnam Funds is based in Canton, MA, and is the manager of PDVYX. The Putnam Diversified Income Y made its debut in October of 1998 and PDVYX has managed to accumulate roughly $431.76 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 3.01%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 4.51%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of PDVYX over the past three years is 5.43% compared to the category average of 12.22%. Over the past 5 years, the standard deviation of the fund is 5.07% compared to the category average of 11.97%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
For those that believe interest rates will rise, this is an important factor to consider. PDVYX has a modified duration of 3.89, which suggests that the fund will decline 3.89% for every hundred-basis-point increase in interest rates.
This fund has a beta of 0.53, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PDVYX has a positive alpha of 2.39, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, PDVYX 's junk bond component-bonds rated 'BB' or below-is at 28.92%. This means that the fund has an average quality of BBB, and focuses on medium quality securities.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PDVYX is a no load fund. It has an expense ratio of 0.78% compared to the category average of 1%. Looking at the fund from a cost perspective, PDVYX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Putnam Diversified Income Y ( PDVYX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, Putnam Diversified Income Y ( PDVYX ) looks like a somewhat average choice for investors right now.
Want even more information about PDVYX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is PDVYX a Strong Bond Fund Right Now?
Having trouble finding a Diversified Bonds fund? Putnam Diversified Income Y (PDVYX - Free Report) is a possible starting point. PDVYX holds a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
We classify PDVYX in the Diversified Bonds category, an area that is rife with potential choices. Diversified Bonds funds offer exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. Generally speaking, bond funds here will have sizable exposure to government debt, as well as modest holdings in the corporate bond market too.
History of Fund/Manager
Putnam Funds is based in Canton, MA, and is the manager of PDVYX. The Putnam Diversified Income Y made its debut in October of 1998 and PDVYX has managed to accumulate roughly $431.76 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 3.01%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 4.51%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of PDVYX over the past three years is 5.43% compared to the category average of 12.22%. Over the past 5 years, the standard deviation of the fund is 5.07% compared to the category average of 11.97%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
For those that believe interest rates will rise, this is an important factor to consider. PDVYX has a modified duration of 3.89, which suggests that the fund will decline 3.89% for every hundred-basis-point increase in interest rates.
This fund has a beta of 0.53, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PDVYX has a positive alpha of 2.39, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, PDVYX 's junk bond component-bonds rated 'BB' or below-is at 28.92%. This means that the fund has an average quality of BBB, and focuses on medium quality securities.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PDVYX is a no load fund. It has an expense ratio of 0.78% compared to the category average of 1%. Looking at the fund from a cost perspective, PDVYX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Putnam Diversified Income Y ( PDVYX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, better downside risk, and lower fees, Putnam Diversified Income Y ( PDVYX ) looks like a somewhat average choice for investors right now.
Want even more information about PDVYX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.