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Research Fund (Class Y)  (PURYX)

Seeking to capitalize on the expertise of Putnam's research organization

Research Fund received an  Overall Morningstar Rating  of  

Highlights

Objective

The fund seeks capital appreciation.

Strategy and process

  • A best-ideas fund: The fund invests in stocks that represent the highest conviction ideas from Putnam's Equity Research team.
  • Sector neutral: The fund is managed with a sector-neutral approach, with the flexibility to own both growth and value stocks.
  • Differentiated research: The portfolio managers select stocks in a collaborative effort that emphasizes non-consensus critical thinking.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $33.35
-0.21% | $-0.07
$36.98
09/21/18
$26.16
12/24/18
Historical fund price

Fund facts as of 05/31/19

Total net assets
$310.49M
Turnover (fiscal year end)
97%
Dividend frequency
Annually
Number of holdings
157
Fiscal year-end
July
CUSIP / Fund code
746802487 / 1849
Inception date
04/04/00
Category
Blend
Open to new investors
Ticker
PURYX

Management team

Director of Equity Research
Portfolio Manager, Analyst
Assistant Director of Equity Research
Portfolio Manager, Analyst
Portfolio Manager, Analyst


Manager commentary | Q1 2019

Is there more volatility ahead?

Portfolio Manager Walter Scully discusses the likelihood of a rise in market volatility.


Literature


Implications of the Huawei export ban
With Huawei blocked by the U.S. Commerce Department from buying U.S. technology, we discuss ramifications on the technology sector and how the ban may end.

Performance

  • Total return (%) as of 03/31/19

  • Annual performance as of 03/31/19

Annualized Total return (%) as of 03/31/19

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 8.56% 13.99% 10.24% 15.93%
After sales charge N/A N/A N/A N/A
S&P 500 Index 9.50%13.51%10.91%15.92%

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. Performance assumes reinvestment of distributions and does not account for taxes. Returns before sales charge do not reflect the current maximum sales charges as indicated below. Had the sales charge been reflected, returns would be lower. Returns at public offering price (after sales charge) for class A and class M shares reflect the current maximum initial sales charges of 5.75% and 3.50% for equity funds and Putnam Multi-Asset Absolute Return Fund, 4.00% and 3.25% for income funds and 2.25% and 0.75% for Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return Fund, respectively. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, which is 3% in the first year, declining to 1% in the fourth year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, N, R, and Y shares prior to their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (with the exception of Putnam Tax-Free High Yield Fund and Putnam AMT-Free Municipal Fund, which are based on the historical performance of class B shares). Returns at public offering price (after sales charge) for class N shares reflect the current maximum initial sales charge of 1.50%. Class R5/R6 shares, available to qualified employee-benefit plans only, are sold without an initial sales charge and have no CDSC. Class Y shares are generally only available for corporate and institutional clients and have no initial sales charge. Performance for Class R5/R6 shares before their inception are derived from the historical performance of class Y shares, which have not been adjusted for the lower expenses; had they, returns would have been higher. Class A and M shares of Putnam money market funds have no initial sales charge. For a portion of the periods, some funds had expense limitations or had been sold on a limited basis with limited assets and expenses, without which returns would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 05/31/19 -6.31% -
YTD as of 06/24/19 19.75% -

Risk-adjusted performance as of 05/31/19

Alpha (3 yrs.) 1.06
Sharpe ratio (3 yrs.) 0.99
Treynor ratio (3 yrs.) 11.55
Information ratio (3 yrs.) 0.37

Volatility as of 05/31/19

Standard deviation (3 yrs.) 11.36%
Beta 0.97
R-squared 0.97

Capture ratio as of 05/31/19

Up-market (3 yrs.) 100.92
Down-market (3 yrs.) 95.67

Lipper rankings as of 05/31/19

Time period Rank/Funds in category Percentile ranking
1 yr. 221/719 31%
3 yrs. 69/621 12%
5 yrs. 136/549 25%
10 yrs. 51/437 12%
Lipper category: Large-Cap Core Funds

Morningstar Ratings as of 05/31/19

Time period Funds in category Morningstar Rating
Overall 1197
3 yrs. 1197
5 yrs. 1065
10 yrs. 808
Morningstar category: Large Blend

Distributions

Record/Ex dividend date 12/06/18
Payable date 12/10/18
Income $0.221
Extra income --
Short-term cap. gain $1.28
Long-term cap. gain $2.77

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Past performance is not indicative of future results.

The Morningstar RatingTM 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 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The up-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen. The ratio is calculated by dividing the manager’s returns by the returns of the index during the up-market, and multiplying that factor by 100. The down-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has dropped. The ratio is calculated by dividing the manager’s returns by the returns of the index during the down-market and multiplying that factor by 100.


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Holdings

Top 10 holdings as of 05/31/19

Microsoft 4.48%
Alphabet 3.37%
Amazon 3.32%
Apple 2.61%
Facebook 1.99%
Bank of America 1.95%
Procter & Gamble Co 1.82%
Home Depot 1.74%
Coca-Cola 1.71%
Citigroup 1.49%
Top 10 holdings, percent of portfolio 24.48%

Full portfolio holdings as of 03/31/19

MICROSOFT CORP 4.04%
ALPHABET INC-CL A 3.03%
AMAZON.COM INC 2.90%
APPLE INC 2.68%
BANK OF AMERICA CORP 2.12%
FACEBOOK INC-CLASS A 1.83%
HONEYWELL INTERNATIONAL INC 1.82%
COCA-COLA CO/THE 1.77%
VISA INC-CLASS A SHARES 1.75%
HOME DEPOT INC 1.71%
PROCTER & GAMBLE CO/THE 1.68%
BP PLC 1.59%
CITIGROUP INC 1.51%
GENERAL MOTORS CO 1.38%
JOHNSON & JOHNSON 1.34%
DANAHER CORP 1.30%
ASSURED GUARANTY LTD 1.27%
QUALCOMM INC 1.26%
CENOVUS ENERGY INC 1.21%
ACTIVISION BLIZZARD INC 1.20%
MERCK & CO. INC. 1.15%
GOLDMAN SACHS GROUP INC 1.08%
NXP SEMICONDUCTORS NV 1.08%
CIGNA CORP 1.07%
DOWDUPONT INC 1.05%
DXC TECHNOLOGY CO 1.05%
SALESFORCE.COM INC 1.04%
KKR & CO INC -A 1.03%
ADOBE INC 1.01%
PFIZER INC 0.99%
WALMART INC 0.97%
UNION PACIFIC CORP 0.94%
PRUDENTIAL PLC 0.93%
FIDELITY NATIONAL INFO SERV 0.91%
GAMING AND LEISURE PROPERTIE 0.91%
UNITEDHEALTH GROUP INC 0.91%
INTEL CORP 0.89%
JPMORGAN CHASE & CO 0.89%
AMERICAN ELECTRIC POWER 0.88%
WELLS FARGO & CO 0.82%
EXELON CORP 0.81%
ROPER TECHNOLOGIES INC 0.79%
EATON CORP PLC 0.78%
JOHNSON CONTROLS INTERNATION 0.78%
WALT DISNEY CO/THE 0.77%
VERIZON COMMUNICATIONS INC 0.76%
BOOKING HOLDINGS INC 0.73%
HERSHEY CO/THE 0.73%
E*TRADE FINANCIAL CORPORATION 0.72%
ON SEMICONDUCTOR CORP 0.72%
ENTERPRISE PRODUCTS PARTNERS 0.70%
MCCORMICK & CO-NON VTG SHRS 0.69%
ELI LILLY & CO 0.68%
SHERWIN-WILLIAMS CO/THE 0.68%
COMCAST CORP-CLASS A 0.67%
CHARTER COMMUNICATIONS INC-A 0.66%
WASTE CONNECTIONS INC 0.65%
AMGEN INC 0.64%
AT&T INC 0.63%
KINDER MORGAN INC 0.63%
HILTON WORLDWIDE HOLDINGS IN 0.62%
NIKE INC -CL B 0.61%
BOEING CO/THE 0.58%
LINDE PLC 0.58%
NORFOLK SOUTHERN CORP 0.58%
BLACKROCK INC 0.57%
RAYMOND JAMES FINANCIAL INC 0.56%
FORTUNE BRANDS HOME & SECURI 0.54%
NRG ENERGY INC 0.53%
PEPSICO INC 0.53%
AMERICAN INTERNATIONAL GROUP 0.52%
NEXTERA ENERGY INC 0.51%
YUM CHINA HOLDINGS INC 0.51%
CHIPOTLE MEXICAN GRILL INC 0.50%
SBA COMMUNICATIONS CORP 0.50%
BAXTER INTERNATIONAL INC 0.49%
BRISTOL-MYERS SQUIBB CO 0.48%
CLOROX COMPANY 0.48%
FIRST DATA CORP- CLASS A 0.48%
FORTIVE CORP 0.48%
BECTON DICKINSON AND CO 0.46%
FREEPORT-MCMORAN INC 0.46%
WYNN RESORTS LTD 0.46%
CISCO SYSTEMS INC 0.44%
INTERCONTINENTAL EXCHANGE IN 0.44%
INTUITIVE SURGICAL INC 0.44%
NETEASE INC-ADR 0.44%
LIVE NATION ENTERTAINMENT IN 0.43%
ABBOTT LABORATORIES 0.42%
COSTCO WHOLESALE CORP 0.41%
EVERBRIDGE INC 0.40%
ABBVIE INC 0.39%
FMC CORP 0.39%
CHUBB LTD 0.38%
ALLERGAN PLC 0.37%
TENCENT HOLDINGS LTD 0.36%
METTLER-TOLEDO INTERNATIONAL 0.35%
ENCANA CORP 0.34%
TJX COMPANIES INC 0.34%
ANADARKO PETROLEUM CORP 0.33%
AMETEK INC 0.31%
DEERE & CO 0.31%
MEDTRONIC PLC 0.31%
TRANSDIGM GROUP INC 0.31%
BOSTON SCIENTIFIC CORP 0.30%
ICU MEDICAL INC 0.30%
SUNTRUST BANKS INC 0.30%
EDWARDS LIFESCIENCES CORP 0.29%
GILEAD SCIENCES INC 0.29%
VERTEX PHARMACEUTICALS INC 0.28%
WALGREENS BOOTS ALLIANCE INC 0.28%
CVS HEALTH CORP 0.27%
GODADDY INC - CLASS A 0.27%
CAIRN ENERGY PLC 0.25%
SUMMIT MATERIALS INC -CL A 0.24%
BJ'S WHOLESALE CLUB HOLDINGS 0.23%
BURLINGTON STORES INC 0.23%
MGM RESORTS INTERNATIONAL 0.23%
BALL CORP 0.22%
REGENERON PHARMACEUTICALS 0.21%
SEMPRA ENERGY 0.21%
YELLOW CAKE PLC 144A 0.21%
ADVANCE AUTO PARTS 0.20%
CARMAX INC 0.20%
THERMO FISHER SCIENTIFIC INC 0.20%
CMS ENERGY CORP 0.19%
SOUTHERN CO/THE 0.19%
LEVI STRAUSS & CO- CLASS A 0.18%
CONOCOPHILLIPS 0.17%
AMEREN CORPORATION 0.15%
ARCHER-DANIELS-MIDLAND CO 0.15%
CELGENE CORP 0.15%
DOMINION ENERGY INC 0.15%
ALIBABA GROUP HOLDING-SP ADR 0.14%
DUKE ENERGY CORP 0.14%
EDISON INTERNATIONAL 0.14%
FIRSTENERGY CORP 0.14%
W.R. GRACE & CO 0.12%
ECOLAB INC 0.11%
PACKAGING CORP OF AMERICA 0.11%
APOLLO GLOBAL MANAGEMENT - A 0.07%
OPORTUN FIN CORP P/P SERIES H PFD 0.05%
PPL CORP 0.04%
OPORTUN FIN CORP P/P 0.03%
OPORTUN FIN F-1 PFD CV P/P 0.03%
OPORTUN FIN G-1 PFD CV P/P 0.03%
GBP/USD 06/19/2019 BANKAM 0.01%
OPORTUN FIN D-1 PFD CV P/P 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
RU20INTR P USL1M R 12/15/20 GS 0.01%
CAD/USD 04/17/2019 BANKAM 0.00%
CAD/USD 04/17/2019 BCAP-FX 0.00%
CAD/USD 04/17/2019 GSFX 0.00%
CAD/USD 04/17/2019 JPMCB 0.00%
CAD/USD 04/17/2019 SSBT 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
CNH/USD 05/15/2019 HSBCB 0.00%
EUR/USD 06/19/2019 BANKAM 0.00%
GBP/USD 06/19/2019 BCAP-FX 0.00%
GBP/USD 06/19/2019 GSFX 0.00%
HONG KONG DOLLAR CALL ACCOUNT 0.00%
ILS/USD 04/17/2019 SSBT 0.00%
KOREAN WON CALL ACCOUNT 0.00%
KRW/USD 05/15/2019 JPMCB 0.00%
OPORTUN FIN A-1 PFD CV P/P 0.00%
OPORTUN FIN B-1 PFD CV P/P 0.00%
OPORTUN FIN C-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%
POUND STERLING CALL ACCOUNT 0.00%
THE EURO EUR CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 05/31/19
Microsoft
Alphabet
Amazon
Apple
Facebook
Bank of America
Procter & Gamble Co
Home Depot
Coca-Cola
Citigroup
Holdings represent 24.48% of portfolio
Top 10 holdings as of 04/30/19
Microsoft Corp
Amazon.Com
Alphabet
Apple
Facebook
Bank Of America Corp
Visa
Home Depot The
Coca-Cola The
Citigroup
Holdings represent 24.14% of portfolio
Top 10 holdings as of 03/31/19
Microsoft Corp
Alphabet
Amazon.Com
Apple
Bank Of America Corp
Facebook
Honeywell International
Coca-Cola The
Visa
Home Depot The
Holdings represent 23.65% of portfolio
Top 10 holdings as of 02/28/19
Microsoft Corp
Alphabet
Amazon.Com
Apple
Bank Of America Corp
Visa
Facebook
Coca-Cola The
Home Depot
Honeywell International
Holdings represent 23.17% of portfolio

Portfolio composition as of 05/31/19

Common stock 97.83%
Cash and net other assets 2.03%
Convertible preferred stock 0.14%

Equity statistics as of 05/31/19

Median market cap $40.20B
Weighted average market cap $218.33B
Price to book 2.85
Price to earnings 15.57

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political or financial market conditions, investor sentiment and market perceptions, government actions, geopolitical events or changes, and factors related to a specific issuer, geography, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. You can lose money by investing in the fund.

Top industry sectors as of 05/31/19

Information technology 18.74%
Health care 13.07%
Financials 12.59%
Consumer discretionary 11.12%
Communication services 10.95%
Industrials 9.09%
Consumer staples 7.84%
Energy 5.15%
Utilities 4.04%
 
Other
7.41%
Materials 3.52%
Cash and net other assets 2.03%
Real estate 1.86%

The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Sectors will vary over time.


Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 1.11% 1.86% 1.86% 1.61% 1.36% 0.70% 0.86%
What you pay 1.11% 1.86% 1.86% 1.61% 1.36% 0.70% 0.86%

Sales charge

 Breakpoint Class A Class B Class C Class M Class R Class R6 Class Y
$0-$49,999 5.75% / 5.00% 0.00% / 4.00% 0.00% / 1.00% 3.50% / 3.00% -- -- --
$50,000-$99,999 4.50% / 3.75% 0.00% / 4.00% 0.00% / 1.00% 2.50% / 2.00% -- -- --
$100,000-$249,999 3.50% / 2.75% -- 0.00% / 1.00% 1.50% / 1.00% -- -- --
$250,000-$499,999 2.50% / 2.00% -- 0.00% / 1.00% 1.00% / 1.00% -- -- --
$500,000-$999,999 2.00% / 1.75% -- 0.00% / 1.00% 1.00% / 1.00% -- -- --
$1M-$4M 0.00% / 1.00% -- -- -- -- -- --
$4M-$50M 0.00% / 0.50% -- -- -- -- -- --
$50M+ 0.00% / 0.25% -- -- -- -- -- --

CDSC

  Class A (sales for $1,000,000+) Class B Class C Class M Class R Class R6 Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- -- --
9 to 12 mts. 1.00% 5.00% 1.00% -- -- -- --
2 yrs. 0.00% 4.00% 0.00% -- -- -- --
3 yrs. 0.00% 3.00% 0.00% -- -- -- --
4 yrs. 0.00% 3.00% 0.00% -- -- -- --
5 yrs. 0.00% 2.00% 0.00% -- -- -- --
6 yrs. 0.00% 1.00% 0.00% -- -- -- --
7+ yrs. 0.00% 0.00% 0.00% -- -- -- --

Trail commissions

  Class A Class B Class C Class M Class R Class R6 Class Y
  0.25% 0.25% 1.00% 0.65% 0.50% 0.00% 0.00%
  NA NA NA NA NA NA NA
  NA NA NA NA NA NA NA

For sales and trail commission information on purchases over $1 million and participant-directed qualified retirement plans, see a Putnam fund prospectus and the statement of additional information.

The S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index.

Consider these risks before investing: Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political or financial market conditions, investor sentiment and market perceptions, government actions, geopolitical events or changes, and factors related to a specific issuer, geography, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. You can lose money by investing in the fund.