Putnam Spectrum Funds
Seeking returns from opportunities
in leveraged companies
With a career that spans the history of
leveraged investing, portfolio manager David Glancy has deep expertise and specialized skills.
Putnam's rigorous investment processPortfolio Manager David Glancy's investment process is based on thorough fundamental research into the securities of leveraged companies, focused on identifying securities with the most attractive total return potential relative to risk. The investment universe consists of companies with high debt levels relative to their earnings before interest payments, taxes, and depreciation (also known as EBITD) are taken into account. The first research step is to analyze each company as a business and understand its sources of cash flow, and the risks to it. The second is to analyze the company's capital structure and see what opportunities and risks it poses. After determining the securities he finds most attractive, Mr. Glancy carefully constructs each portfolio by balancing the risks of different securities. He has latitude to establish large weightings in individual securities, or to establish short positions in some securities that he considers overvalued. |
Read David Glancy’s latest insight into why leveraged companies are choosing to pay more for financing. Product InformationFund Fact Sheets (pdf)Literature (pdf) |
Consider these risks before investing: Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Our focus on leveraged companies and the fund's "non-diversified" status can increase the fund's vulnerability to these factors. Our use of short selling may increase these risks.
Additional risks associated with Putnam Capital Spectrum Fund: Funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Our focus on leveraged companies and the fund's "non-diversified" status can increase the fund's vulnerability to these factors. Our use of short selling may increase these risks.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus or summary prospectus containing this and other information for any Putnam fund or product, click on the prospectus section or call your financial representative or call Putnam at 1-800-225-1581. Please read carefully the prospectus if available before investing.
Putnam Retail Management