Putnam US Government Income APGSIX

Morningstar Rating

Fund Research and Analysis

by Eric Jacobson

The shock of Putnam U.S. Government Income's 2008 trouble is exceeded only by the power of its 2009 recovery.

We can't take anything away from management for engineering that rebound. The fund has soared 21% for the year through Sept. 16, 2009, topping the intermediate-government category and pushing its long-term returns near the category's apex. Read more

Kudos

Management appears to have had the fundamentals right in 2008, avoiding credit and sticking with government-backed securities, despite being hurt by the liquidity squeeze; that helped it come roaring back in 2009. Read more

Risks

High fee hurdle.

Strategies reliant on risky mortgage derivatives caught up with the fund in 2008. Read more

Strategy

Management focuses on government-backed mortgage securities here, with the bulk of assets parked in Ginnie Mae mortgages. The fund may also hold Fannie Mae or Freddie Mac notes, a smattering of Treasuries, and non-government-backed securities. Read more

Management

Rob Bloemker, Putnam's head of fixed income, has been a manager here since 2002. He's joined by Daniel Choquette and Michael Salm. The trio also manages Putnam American Government Income PAGVX (a broader-based government offering) and contributes to Putnam Income PINCX. Read more

Inside Scoop

This fund isn't as diversified as its name might suggest, as it focuses primarily on Ginnie Mae and Fannie Mae mortgages. It's also volatile and costly. Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Picking Positions in Health Care
Watch more