George Putnam Balanced fund
A prudent balance of stocks and bonds since 1937
This fund received a Overall Morningstar Rating™ out of 658 funds in the Allocation — 50% to 70% Equity category based on total return as of 09/30/19.
George Putnam Balanced Fund was introduced in 1937, at a time when many investors considered the stock market to be risky. Named for the founder of Putnam Investments, the fund offered an innovative concept for the time — a diversified portfolio with bonds to balance the risk of stocks.
The fund's classic balanced approach continues to serve investors today, under the leadership of seasoned portfolio managers who use fundamental research to find opportunities and manage risk.
“The fund's diversification and balanced approach are designed to moderate volatility for investors.”
—Kathryn B. Lakin, Director of Equity Research
How Sharpe ratio incorporates risk
The Sharpe ratio compares a portfolio's return (minus the risk-free T-bill return) with its volatility, or standard deviation.
George Putnam Balanced Fund has a higher Sharpe ratio than its category over many periods. Analyze its risk-adjusted performance in FundVisualizer.
Portfolio management team
The fund's typical allocation is 60% stocks and 40% bonds.
In managing the stock portion of the portfolio, Kate Lakin works with a team of equity research analysts. The team pursues a risk-aware strategy and invests in stocks across all sectors that may have value or growth characteristics.
For the fund's fixed-income investments, Paul Scanlon and Emily Shanks assemble a mix of government and investment-grade bonds. Historically, government bonds have shown relatively low correlation with stocks, which can help to dampen the impact of stock market downturns on fund performance.
Kathryn B. Lakin, Portfolio Manager, Director of Equity Research
Ms. Lakin is Director of Equity Research. She is responsible for managing a team of analysts, associates, and interns covering multiple sectors. She joined Putnam in 2012 and has been in the investment industry since 2008.
Paul D. Scanlon, CFA, Portfolio Manager, Co-Head of Fixed Income
Mr. Scanlon is a Co-Head of Fixed Income. He is responsible for managing all facets of the corporate credit investment process and overseeing Putnam's tax-exempt team. He joined Putnam in 1999 and has been in the investment industry since 1986.
Emily E. Shanks, Portfolio Manager
Ms. Shanks is experienced in conducting fundamental analysis of high-yield and investment-grade corporate-bond issuers in the retail and services sector, and making buy/sell recommendations. She joined Putnam in 2012 and has been in the investment industry since 1999.
A market of mixed messages
We enter the final quarter of the year with a somewhat puzzling backdrop for equity investors.
The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.