Small Cap Value Fund  (PYSVX)

Pursuing capital appreciation through undervalued small companies


Track this fund

Objective

The fund seeks capital appreciation.

Strategy and process

  • Small companies: Often overlooked by Wall Street analysts, the stocks of small companies can represent attractive opportunities.
  • Active value strategy: The portfolio managers seeks attractively valued companies with improving fundamentals or catalysts that may unlock value.
  • Rigorous research: The portfolio managers and a team of senior research analysts offer the collaboration of a boutique with the extensive resources of a large, global firm.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $18.63
0.81% | $0.15
$19.16
10/02/17
$17.19
11/17/16
Historical fund price

Fund facts as of 10/31/17

Total net assets
$420.93M
Turnover (fiscal year end)
63%
Dividend frequency
Annually
Number of holdings
236
Fiscal year-end
February
CUSIP / Fund code
746802289 / 1853
Inception date
01/03/01
Category
Value
Open to new investors
Ticker
PYSVX

Management team


Portfolio Manager

Portfolio Manager


Literature

Fund documents

Fact Sheet (Y share) (PDF)
Fact Sheet (VT share) (PDF)
Prospectus (PDF)
Annual Report (PDF)
Semiannual Report (PDF)
Proxy voting results (Form N-PX) (PDF)
Equity Outlook (PDF)
Comparing Putnam's U.S. equity funds (PDF)

Just how cheap are European equities?
Our analysis finds that industry group weightings play a significant role in valuation discrepancies between U.S. and European equities.
What could disturb unprecedented calm in markets?
What’s most remarkable about 2017 is the market calm, but this is not a sign that the trend will revert to the mean.
Looking for impact in CEO compensation
It’s important for investors to be able to understand how a company’s performance relates to CEO compensation.

Performance

  • Total return (%) as of 09/30/17

  • Annual performance as of 09/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 21.04% 11.07% 13.84% 6.31%
After sales charge N/A N/A N/A N/A
Russell 2000 Value Index 20.55% 12.12% 13.27% 7.14%

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. To obtain the most recent month-end performance, visit putnam.com. 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 Absolute Return 500 Fund and 700 Fund, and 4.00% and 3.25% for income funds (1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income 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, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income Fund, which is 1% in the first year, declining to 0.5% in the second 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, R, T1, 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). 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, M, and T1 shares of Putnam money market funds have no initial sales charge. For a portion of the period, some funds had expenses 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 10/31/17 -1.42 % -
YTD as of 11/17/17 2.87 % -

Risk-adjusted performance as of 10/31/17

Alpha (3 yrs.) 0.11
Sharpe ratio (3 yrs.) 0.67
Treynor ratio (3 yrs.) 9.50
Information ratio (3 yrs.) -0.23

Volatility as of 10/31/17

Standard deviation (3 yrs.) 13.04%
Beta 0.91
R-squared 0.96

Capture ratio as of 10/31/17

Up-market (3 yrs.) 88.49
Down-market (3 yrs.) 85.58

Lipper rankings as of 10/31/17

Small-Cap Value Funds Percentile ranking Rank/Funds in category
1 yr. 68% 182/267
3 yrs. 35% 82/236
5 yrs. 37% 76/209
10 yrs. 67% 91/135

Morningstar ratings as of 10/31/17

Small Value Rating Funds in category
Overall (337)
3 yrs. (337)
5 yrs. (292)
10 yrs. (198)

Distributions

Record/Ex dividend date 12/07/16
Payable date 12/09/16
Income $0.152
Extra income $0.0
Short-term cap. gain --
Long-term cap. gain --

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.


Compare

See how this fund stacks up against its peers with FundVisualizer®

— or —

New to FundVisualizer? Watch tutorials on how to get started.

For more tutorials, please visit Advisor Tech Tips

** FundVisualizer comparison based on Putnam fund versus the largest fund in its Morningstar category.


Holdings

Top 10 holdings as of 10/31/17

Minerals Technologies 1.42%
Hain Celestial Group The 1.10%
Maxlinear 0.99%
Atkore International Group 0.96%
Caesars Entertainment Corp 0.95%
Hub Group 0.92%
Radian Group 0.92%
Party City Holdco 0.89%
J2 Global 0.86%
Carpenter Technology Corp 0.82%
Top 10 holdings, percent of portfolio 9.83%

Full portfolio holdings as of 09/30/17

HAIN CELESTIAL GROUP INC 1.24%
RLJ LODGING TRUST 1.23%
CARPENTER TECHNOLOGY 1.19%
SPROUTS FARMERS MARKET INC 1.11%
HUB GROUP INC-CL A 1.07%
CALPINE CORP 1.03%
MINERALS TECHNOLOGIES INC 0.98%
PARTY CITY HOLDCO INC 0.91%
RADIAN GROUP INC 0.90%
ATKORE INTERNATIONAL GROUP I 0.89%
CISION LTD 0.89%
NEW YORK REIT INC 0.86%
HEALTHSOUTH CORP 0.78%
HYSTER-YALE MATERIALS 0.78%
CAESARS ENTERTAINMENT CORP 0.75%
IBERIABANK CORP 0.74%
MAXLINEAR INC 0.74%
CONDUENT INC 0.73%
UNIT CORP 0.73%
MAJOR DRILLING GROUP INTL 0.72%
CELESTICA INC 0.69%
J2 GLOBAL INC 0.69%
KENNEDY-WILSON HOLDINGS INC 0.69%
VALLEY NATIONAL BANCORP 0.68%
SUMMIT HOTEL PROPERTIES INC 0.66%
VALVOLINE INC 0.66%
WADDELL & REED FINANCIAL-A 0.66%
INDEPENDENT BANK GROUP INC 0.65%
BLUE BUFFALO PET PRODUCTS IN 0.63%
DYCOM INDUSTRIES INC 0.63%
SCHNEIDER NATIONAL INC-CL B 0.63%
OLYMPIC STEEL INC 0.62%
ASSURED GUARANTY LTD 0.61%
PATTERSON-UTI ENERGY INC 0.60%
FINISAR CORPORATION 0.59%
ICF INTERNATIONAL INC 0.57%
KNOWLES CORP 0.56%
ULTRA PETROLEUM CORP 0.56%
GENESCO INC 0.55%
SILICON MOTION TECHNOL-ADR 0.55%
STURM RUGER & CO INC 0.55%
AMERICAN EAGLE OUTFITTERS 0.54%
BERKSHIRE HILLS BANCORP INC 0.54%
FLOWERS FOODS INC 0.54%
FLOWSERVE CORP 0.54%
ENERGEN CORP 0.53%
EDGEWELL PERSONAL CARE CO 0.52%
MILACRON HOLDINGS CORP 0.52%
TRINITY INDUSTRIES INC 0.52%
ENSIGN GROUP INC/THE 0.51%
FABRINET 0.51%
STORE CAPITAL CORP 0.51%
TIMKENSTEEL CORP 0.51%
BRINKER INTERNATIONAL INC 0.50%
KBR INC 0.49%
APOGEE ENTERPRISES INC 0.48%
CAPITOL INVESTMENT CORP IV 0.48%
FOUNDATION BUILDING MATERIAL 0.48%
SILVER RUN ACQUISITION COR-A 0.48%
MBIA INC 0.47%
PCSB FINANCIAL CORP 0.47%
TRIPLEPOINT VENTURE GROWTH B 0.46%
AMERICAN OUTDOOR BRANDS CORP 0.45%
MALLINCKRODT PLC 0.45%
SIMPLY GOOD FOODS CO/THE 0.45%
WEB.COM GROUP INC 0.45%
INFINERA CORP 0.44%
PERRY ELLIS INTERNATIONAL 0.44%
CECO ENVIRONMENTAL CORP 0.43%
CHAPARRAL ENERGY INC-CLASS A 0.43%
FOOT LOCKER INC 0.43%
GRAY TELEVISION INC 0.43%
HOPE BANCORP INC 0.43%
INTERNATIONAL GAME TECHNOLOG 0.43%
SENIOR HOUSING PROP TRUST 0.43%
SOUTHWESTERN ENERGY CO 0.43%
TCP CAPITAL CORP 0.43%
WPX ENERGY INC 0.43%
NCR CORPORATION 0.42%
NMI HOLDINGS INC-CLASS A 0.42%
OM ASSET MANAGEMENT PLC 0.42%
THERMON GROUP HOLDINGS INC 0.42%
JABIL INC 0.41%
KEANE GROUP INC 0.41%
PATTERSON COS INC 0.41%
TAILORED BRANDS INC 0.41%
TIME INC 0.41%
BEMIS COMPANY 0.40%
FIREEYE INC 0.40%
SPIRIT AIRLINES INC 0.40%
AMPLIFY SNACK BRANDS INC 0.39%
GENERAC HOLDINGS INC 0.39%
J. JILL INC 0.39%
NAVIGANT CONSULTING INC 0.38%
RANGE RESOURCES CORP 0.38%
CHEESECAKE FACTORY INC/THE 0.37%
FIFTH STREET FINANCE CORP 0.37%
MRC GLOBAL INC 0.37%
TRI POINTE GROUP INC 0.37%
ENERGIZER HOLDINGS INC 0.36%
CONVERGYS CORP 0.35%
MITEL NETWORKS CORP 0.35%
RED LION HOTELS CORP 0.35%
AMERICAN AXLE & MFG HOLDINGS 0.34%
DYNEGY INC 0.34%
GLATFELTER 0.34%
AMERIS BANCORP 0.33%
DUNKIN' BRANDS GROUP INC 0.33%
NORTHWEST PIPE CO 0.33%
SOLAR CAPITAL LTD 0.33%
ARMSTRONG FLOORING INC 0.32%
BRIDGE BANCORP INC 0.32%
BROOKDALE SENIOR LIVING INC 0.32%
COOPER TIRE & RUBBER 0.32%
FORMFACTOR INC 0.32%
MYR GROUP INC/DELAWARE 0.32%
RENT-A-CENTER INC 0.32%
STERLING BANCORP/DE 0.32%
VIRTUS INVESTMENT PARTNERS 0.32%
ADVANCED DRAINAGE SYSTEMS IN 0.31%
BLOOMIN' BRANDS INC 0.31%
DILLARDS INC-CL A 0.31%
DMC GLOBAL INC 0.31%
GENER8 MARITIME INC 0.31%
MATSON INC 0.31%
PANDORA MEDIA INC 0.31%
ZUMIEZ INC 0.31%
CLIFTON BANCORP INC 0.30%
COMMERCIAL VEHICLE GROUP INC 0.30%
LA-Z-BOY INC 0.30%
LIVE NATION ENTERTAINMENT IN 0.30%
MULLEN GROUP LTD 0.30%
TTM TECHNOLOGIES 0.30%
CENTRAL EUROPEAN MEDIA ENT-A 0.29%
KNOLL INC 0.29%
OCEANFIRST FINANCIAL CORP 0.29%
XPERI CORP 0.29%
CIENA CORP 0.28%
FIRST MIDWEST BANCORP INC/IL 0.28%
ILG INC 0.28%
MACOM TECHNOLOGY SOLUTIONS H 0.28%
PACIFIC PREMIER BANCORP INC 0.28%
ENERPLUS CORP 0.27%
FOSTER (LB) CO-A 0.27%
REDWOOD TRUST INC 0.27%
SALLY BEAUTY HOLDINGS INC 0.27%
BED BATH & BEYOND INC 0.26%
BLUE HILLS BANCORP INC 0.26%
FRED S INC 0.26%
OVERSEAS SHIPHOLDING GROUP-A 0.26%
ADVANSIX INC 0.25%
C&J ENERGY SERVICES INC 0.25%
CLIPPER REALTY INC 0.25%
LAYNE CHRISTENSEN COMPANY 0.25%
MASTEC INC 0.25%
SUPERIOR ENERGY SERVICES INC 0.25%
TITAN INTERNATIONAL INC 0.25%
AZZ INC 0.24%
ENCORE WIRE CORP 0.24%
OLD NATIONAL BANCORP 0.24%
ORION ENGINEERED CARBONS SA 0.24%
SRC ENERGY INC 0.24%
TPG SPECIALTY LENDING INC 0.24%
UNITED COMMUNITY BANKS/GA 0.24%
WESTERN ALLIANCE BANCORP 0.24%
WILDHORSE RESOURCE DEVELOPME 0.24%
FRANKLIN FINANCIAL NETWORK 0.23%
KEY ENERGY SERVICES INC 0.23%
ORBOTECH LTD 0.23%
ASTORIA FINANCIAL CORP 0.22%
FIRST BUSEY CORP 0.22%
LIBBEY INC 0.22%
MILLER INDUSTRIES INC/TENN 0.22%
ZYNGA INC - CL A 0.22%
ECHO GLOBAL LOGISTICS INC 0.21%
GOLUB CAPITAL BDC INC 0.21%
RAMBUS INC 0.21%
REXNORD CORP 0.21%
RYERSON HOLDING CORP 0.21%
SUPER MICRO COMPUTER INC 0.21%
TENET HEALTHCARE CORP 0.21%
ENTRAVISION COMMUNICATIONS-A 0.20%
SUCAMPO PHARMACEUTICALS-CL A 0.20%
TRIVAGO NV - ADR 0.20%
XENIA HOTELS & RESORTS INC 0.20%
GREENLIGHT CAPITAL RE LTD-A 0.19%
NOMAD FOODS LTD 0.19%
SAFE BULKERS INC 0.19%
BARNES & NOBLE INC 0.18%
FREIGHTCAR AMERICA INC 0.18%
HARDWOODS DISTRIBUTION INC 0.18%
TFI INTERNATIONAL INC 0.18%
AMIRA NATURE FOODS LTD 0.17%
BUCKLE INC/THE 0.17%
CBL & ASSOCIATES PROPERTIES 0.17%
EASTERLY ACQUISITION CORP 0.17%
FIRST DEFIANCE FINL CORP 0.17%
FULTON FINANCIAL CORP 0.17%
ITT INC 0.17%
NOW INC 0.17%
PROVIDENT FINANCIAL SERVICES 0.17%
SOUTHSIDE BANCSHARES INC 0.17%
B&G FOODS INC 0.16%
FERRO CORP 0.16%
HERC HOLDINGS INC 0.16%
KENNAMETAL INC 0.16%
PZENA INVESTMENT MANAGM-CL A 0.16%
BENEFICIAL BANCORP INC 0.15%
DIME COMMUNITY BANCSHARES 0.15%
FLEX LTD 0.15%
GREIF INC -CL A 0.15%
HEARTLAND FINANCIAL USA INC 0.15%
LIFETIME BRANDS INC 0.15%
SEAWORLD ENTERTAINMENT INC 0.15%
UMPQUA HOLDINGS CORP 0.15%
AMPCO-PITTSBURGH CORP 0.14%
DOUBLE EAGLE ACQUISITION-A 0.14%
MEREDITH CORP 0.14%
BONANZA CREEK ENERGY INC 0.13%
BROOKLINE BANCORP INC 0.13%
PREFERRED BANK/LOS ANGELES 0.13%
WSFS FINANCIAL CORP 0.13%
AGT FOOD & INGREDIENTS INC 0.12%
EXTENDED STAY AMERICA INC 0.12%
HEIDRICK & STRUGGLES INTL 0.12%
NEW YORK & CO 0.12%
PROPETRO HOLDING CORP 0.12%
BEL FUSE INC-CL B 0.11%
FIESTA RESTAURANT GROUP 0.11%
LAKELAND INDUSTRIES INC 0.11%
RBB BANCORP 0.11%
AMERICAN RAILCAR INDUSTRIES 0.10%
CLARUS CORP 0.10%
FIRST BANCORP/NC 0.10%
INVESTORS BANCORP INC 0.10%
MOTORCAR PARTS OF AMERICA IN 0.10%
PLY GEM HOLDINGS INC 0.10%
RR DONNELLEY & SONS CO 0.10%
AUTOBYTEL INC 0.09%
OASIS PETROLEUM INC 0.08%
GROUPON INC 0.07%
TECSYS INC 0.07%
UNIVERSAL STAINLESS & ALLOY 0.07%
ADTRAN INC 0.06%
BMC STOCK HOLDINGS INC 0.06%
IDT CORP-CLASS B 0.05%
BANCTEC INC-144A CONTINGENT VALUE RIGHTS 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
FERROGLOBE REPRESENTATION & 0.00%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
Minerals Technologies
Hain Celestial Group The
Maxlinear
Atkore International Group
Caesars Entertainment Corp
Hub Group
Radian Group
Party City Holdco
J2 Global
Carpenter Technology Corp
Holdings represent 9.83% of portfolio
Top 10 holdings as of 09/30/17
Hain Celestial Group The
Rlj Lodging Trust
Carpenter Technology Corp
Sprouts Farmers Market
Calpine Corp
Hub Group
Minerals Technologies
Party City Holdco
Radian Group
Atkore International Group
Holdings represent 10.43% of portfolio
Top 10 holdings as of 08/31/17
Cision
Hyster-Yale Materials Handling
Hain Celestial Group The
Radian Group
New York Reit
Rlj Lodging Trust
Energen Corp
Store Capital Corp
Kennedy-Wilson Holdings
Calpine Corp
Holdings represent 12.48% of portfolio
Top 10 holdings as of 07/31/17
Radian Group
Party City Holdco
Hyster-Yale Materials Handling
New York Reit
Rlj Lodging Trust
Sprouts Farmers Market
Kennedy-Wilson Holdings
Seaworld Entertainment
Calpine Corp
Healthsouth Corp
Holdings represent 11.36% of portfolio

Portfolio composition as of 10/31/17

Common stock 86.70%
Cash and net other assets 13.30%

Equity statistics as of 10/31/17

Median market cap $1.37B
Weighted average market cap $2.10B
Price to book 1.86
Price to earnings 16.35

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Value stocks may fail to rebound, and the market may not favor value-style investing. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific company or industry. You can lose money by investing in the fund.

Top Industry Sectors as of 10/31/17

Industrials 19.93%
Financials 16.80%
Cash and net other assets 13.30%
Information technology 12.59%
Consumer discretionary 11.53%
Energy 8.04%
Materials 7.64%
Consumer staples 5.24%
Real estate 3.00%
 
Other
1.93%
Health care 1.93%

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

Sectors will vary over time. Represents the equity portion of the portfolio.


Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
Total expense ratio 1.42% 2.17% 2.17% 1.92% 1.67% 1.11% 1.01% 1.17%
What you pay 1.42% 2.17% 2.17% 1.92% 1.67% 1.11% 1.01% 1.17%

Sales charge/Dealer allowance

 Breakpoint Class A Class B Class C Class M Class R Class R5 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 R5 Class R6 Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- -- -- --
9 to 12 mts. 0.00% 5.00% 1.00% -- -- -- -- --
2 yrs. -- 4.00% 0.00% -- -- -- -- --
3 yrs. -- 3.00% 0.00% -- -- -- -- --
4 yrs. -- 3.00% 0.00% -- -- -- -- --
5 yrs. -- 2.00% 0.00% -- -- -- -- --
6 yrs. -- 1.00% 0.00% -- -- -- -- --
7+ yrs. -- 0.00% 0.00% -- -- -- -- --

Trail commissions

  Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
  0.25% 0.25% 1.00% 0.65% 0.50% 0.00% 0.00% 0.00%
  NA NA 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 Russell 2000 Value Index is an unmanaged index of those companies in the small-cap Russell 2000 Index chosen for their value orientation. You cannot invest directly in an index.

Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Value stocks may fail to rebound, and the market may not favor value-style investing. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific company or industry. You can lose money by investing in the fund.

Eric Harthun will retire from Putnam effective 12/31/17.