PGSMX — Putnam Mortgage Securities Fund
Data updated: 2026-08-27
PGSMX — Putnam Mortgage Securities Fund. Long Securitized (MBS/ABS/CMBS) Bond · $373.72M AUM. Holdings, fees, performance and SEC filings.
PGSMX Fund Overview
PGSMX — Putnam Mortgage Securities Fund is a US mutual fund managed by Putnam Mortgage Securities Fund, categorised as Long Securitized (MBS/ABS/CMBS) Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Putnam Mortgage Securities Fund
- Category: Long Securitized (MBS/ABS/CMBS) Bond
- Assets under management: $373.72M
- Ticker: PGSMX
- SEC CIK: 0000732337
- SEC series ID: S000006570
- Share class ID: C000017925
PGSMX Investment Objective and Strategy
Putnam Mortgage Securities Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Putnam Mortgage Securities Fund.
Investment objective
Putnam Mortgage Securities Fund seeks as high a level of current income as Putnam Investment Management, LLC believes is consistent with preservation of capital.
Principal investment strategy
We invest mainly in mortgages, mortgage-related fixed income securities and related derivatives that are either investment-grade or below-investment-grade in quality (sometimes referred to as junk bonds). Under normal circumstances, we invest at least 80% of the funds net assets (plus any borrowings for investment purposes) in mortgages, mortgage-related fixed income securities and related derivatives (i.e., derivatives used to acquire exposure to, or whose underlying securities are, mortgages or mortgage-related securities). The fund generally uses the net unrealized gain or loss, or market value, of mortgage-related derivatives for purposes of this policy, but may use the notional value of a derivative if that is determined to be a more appropriate measure of the funds investment exposure.
This policy may be changed only after 60 days notice to shareholders. We expect to invest in mortgage-backed investments that are obligations of U.S. government agencies and instrumentalities and accordingly are backed by the full faith and credit of the United States ( e.g., Ginnie Mae mortgage-backed bonds) as well as in mortgage-backed investments that are backed by only the credit of a federal agency or government-sponsored entity ( e.g., Fannie Mae and Freddie Mac mortgage-backed bonds), and that have short- to long-term maturities. We also expect to invest in lower-rated, higher-yielding mortgage-backed securities, including non-agency residential mortgage-backed securities (which may be backed by non-qualified or sub-prime mortgages), commercial mortgage-backed securities, and collateralized mortgage obligations (including interest only, principal only, and other prepayment derivatives).
Non-agency (i.e., privately issued) securities typically are lower-rated and higher yielding than securities issued or backed by agencies such as Ginnie Mae, Fannie Mae or Freddie Mac. While our emphasis will be on mortgage-backed securities, we may also invest to a lesser extent in other types of asset-backed securities. We may consider, among other factors, credit, interest rate, prepayment and liquidity risks, as well as general market conditions, when deciding whether to buy or sell investments. We typically use to a significant extent derivatives, including interest rate swaps, swaptions, forward delivery contracts, total return swaps, and options on mortgage-backed securities and indices, for both hedging and non-hedging purposes, including to obtain or adjust exposure to mortgage-backed investments.
PGSMX Holdings
Top 10 holdings of Putnam Mortgage Securities Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| FNMA or FHLMC | 32.44% |
| FNMA or FHLMC | 19.63% |
| FNMA or FHLMC | 19.08% |
| FNMA or FHLMC | 15.81% |
| FNMA or FHLMC | 14.18% |
| Putnam Short Term Investment Fund | 10.19% |
| FNMA or FHLMC | 9.61% |
| FNMA or FHLMC | 8.32% |
| FNMA or FHLMC | 6.06% |
| FNMA or FHLMC | 5.82% |
PGSMX Portfolio Allocation
Asset-class allocation of Putnam Mortgage Securities Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Securitized | 252.6% |
| Other | 10.2% |
| Cash & Equivalents | 3.4% |
| Real Estate | 2.7% |
PGSMX Costs and Fees
PGSMX costs about $99 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.99%
- Gross expense ratio: 1.18%
- Portfolio turnover: 1013%
- Brokerage commissions: 0.27 bps of average net assets (SEC N-CEN)
PGSMX Cashflows
Over the 12 months to 2026-06, Putnam Mortgage Securities Fund had net outflows of $53.84M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2026-06 | −$3.70M |
| 2026-05 | −$5.04M |
| 2026-04 | −$7.74M |
| 2026-03 | −$212.04K |
| 2026-02 | −$2.18M |
| 2026-01 | −$2.62M |
PGSMX Debt Constituents
Largest debt holdings of Putnam Mortgage Securities Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Debt holding | % of net assets |
|---|---|
| United States of America | 0.05% |
PGSMX Prospectus and SEC Filings
Official Putnam Mortgage Securities Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2026-01-27
- Prospectus (485BPOS) — filed 2025-01-28
- Prospectus (485BPOS) — filed 2024-01-25
- Portfolio holdings (N-PORT) — filed 2026-08-27
- Portfolio holdings (N-PORT) — filed 2026-05-27
- Portfolio holdings (N-PORT) — filed 2026-02-25
- Annual census (N-CEN) — filed 2025-12-12
- Annual census (N-CEN) — filed 2024-12-12
Related Funds
Other Long Securitized (MBS/ABS/CMBS) Bond funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.