Small Cap Growth Fund  (PNSAX)

Seeking to capitalize on growing 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.
  • A focus on growth: Small companies tend to be flexible and innovative, and can often expand their earnings at faster rates than larger companies.
  • A disciplined process: The portfolio manager uses a disciplined bottom-up fundamental investment process that focuses on quality and growth.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $37.22
0.79% | $0.29
$37.83
11/28/17
$31.40
12/30/16
Historical fund price

Fund facts as of 11/30/17

Total net assets
$164.27M
Turnover (fiscal year end)
127%
Dividend frequency
Annually
Number of holdings
77
Fiscal year-end
June
CUSIP / Fund code
746763549 / 0052
Inception date
12/31/97
Category
Growth
Open to new investors
Ticker
PNSAX

Management team


Portfolio Manager


Literature

Fund documents

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)

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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 18.10% 8.98% 12.56% 5.50%
After sales charge 11.31% 6.85% 11.23% 4.88%
Russell 2000 Growth Index 20.98% 12.17% 14.28% 8.47%

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 11/30/17 3.62 % -2.33 %
YTD as of 12/13/17 18.54 % 11.72 %

Risk-adjusted performance as of 10/31/17

Alpha (3 yrs.) -2.18
Sharpe ratio (3 yrs.) 0.54
Treynor ratio (3 yrs.) 8.03
Information ratio (3 yrs.) -0.75

Volatility as of 10/31/17

Standard deviation (3 yrs.) 14.80%
Beta 0.99
R-squared 0.96

Capture ratio as of 10/31/17

Up-market (3 yrs.) 94.06
Down-market (3 yrs.) 104.02

Lipper rankings as of 10/31/17

Small-Cap Growth Funds Percentile ranking Rank/Funds in category
1 yr. 58% 319/550
3 yrs. 71% 347/494
5 yrs. 53% 236/448
10 yrs. 85% 287/337

Morningstar ratings as of 10/31/17

Small Growth Rating Funds in category
Overall (254)
3 yrs. (598)
5 yrs. (247)
10 yrs. (206)

Distributions

Record/Ex dividend date 12/07/16
Payable date 12/09/16
Income $0.001
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.


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


Holdings

Top 10 holdings as of 10/31/17

Trex 2.64%
Summit Materials 2.33%
John Bean Technologies Corp 2.31%
Siteone Landscape Supply 2.25%
Littelfuse 2.22%
Realpage 2.20%
Live Nation Entertainment 2.11%
Grand Canyon Education 2.10%
Bright Horizons Family Solutions 2.10%
Patrick Industries 2.08%
Top 10 holdings, percent of portfolio 22.34%

Full portfolio holdings as of 09/30/17

SUMMIT MATERIALS INC -CL A 2.43%
JOHN BEAN TECHNOLOGIES CORP 2.23%
TREX COMPANY INC 2.22%
LOGMEIN INC 2.17%
BRIGHT HORIZONS FAMILY SOLUT 2.14%
LIVE NATION ENTERTAINMENT IN 2.14%
LITTELFUSE INC 2.13%
SITEONE LANDSCAPE SUPPLY INC 2.10%
FIVE BELOW 2.08%
GRAND CANYON EDUCATION INC 2.08%
REALPAGE INC 2.07%
BWX TECHNOLOGIES INC 1.97%
PATRICK INDUSTRIES INC 1.93%
FERRO CORP 1.90%
INSTALLED BUILDING PRODUCTS 1.90%
WINGSTOP INC 1.85%
PRESTIGE BRANDS HOLDINGS INC 1.70%
GLOBUS MEDICAL INC - A 1.64%
HEALTHCARE SERVICES GROUP 1.64%
LIGAND PHARMACEUTICALS 1.63%
GODADDY INC - CLASS A 1.61%
MAXIMUS INC 1.55%
PHYSICIANS REALTY TRUST 1.55%
CENTRAL GARDEN & PET CO 1.53%
EVERCORE INC - A 1.52%
ESCO TECHNOLOGIES INC 1.51%
J2 GLOBAL INC 1.46%
ENVESTNET INC 1.31%
VEEVA SYSTEMS INC-CLASS A 1.31%
EVERBRIDGE INC 1.26%
2U INC 1.25%
RINGCENTRAL INC-CLASS A 1.23%
CABLE ONE INC 1.21%
INTEGRA LIFESCIENCES HOLDING 1.21%
PACIFIC PREMIER BANCORP INC 1.20%
KINSALE CAPITAL GROUP INC 1.19%
HEALTHEQUITY INC 1.16%
SAIA INC 1.15%
ADVANCED ENERGY INDUSTRIES 1.14%
QAD INC-A 1.14%
EXACT SCIENCES CORP 1.11%
Q2 HOLDINGS INC 1.11%
INTEGRATED DEVICE TECH INC 1.07%
MASTEC INC 1.07%
PENUMBRA INC 1.06%
ARRAY BIOPHARMA INC 1.04%
CLOVIS ONCOLOGY INC 1.04%
EMERGENT BIOSOLUTIONS INC 1.02%
K2M GROUP HOLDINGS INC 1.01%
LIBERTY MEDIA CORP-BRAVES A 1.00%
ACLARIS THERAPEUTICS INC 0.99%
HEICO CORP 0.99%
NEKTAR THERAPEUTICS 0.99%
INSULET CORP 0.98%
PROOFPOINT INC 0.98%
ACCELERON PHARMA INC 0.96%
REPLIGEN CORP 0.94%
INSTRUCTURE INC 0.88%
MKS INSTRUMENTS INC 0.88%
CEVA INC 0.86%
H AND E EQUIPMENT SERVICES INC 0.81%
PROS HOLDINGS INC 0.81%
HESKA CORP 0.78%
QUANTA SERVICES INC 0.77%
AVEXIS INC 0.75%
HOSTESS BRANDS INC 0.74%
MEDICINES COMPANY 0.72%
GENMARK DIAGNOSTICS INC 0.70%
QTS REALTY TRUST INC-CL A 0.70%
PACIRA PHARMACEUTICALS INC 0.68%
AGIOS PHARMACEUTICALS INC 0.63%
RADIUS HEALTH INC 0.55%
PUMA BIOTECHNOLOGY INC 0.54%
MARCUS CORPORATION 0.53%
WISDOMTREE INVESTMENTS INC 0.53%
ORION ENGINEERED CARBONS SA 0.51%
CHEGG INC 0.50%
SAREPTA THERAPEUTICS INC 0.48%
PORTOLA PHARMACEUTICALS INC 0.18%
MIRATI THERAPEUTICS INC 0.04%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
Trex
Summit Materials
John Bean Technologies Corp
Siteone Landscape Supply
Littelfuse
Realpage
Live Nation Entertainment
Grand Canyon Education
Bright Horizons Family Solutions
Patrick Industries
Holdings represent 22.34% of portfolio
Top 10 holdings as of 09/30/17
Summit Materials
John Bean Technologies Corp
Trex
Logmein
Live Nation Entertainment
Bright Horizons Family Solutions
Littelfuse
Siteone Landscape Supply
Five Below
Grand Canyon Education
Holdings represent 21.72% of portfolio
Top 10 holdings as of 08/31/17
Logmein
Summit Materials
Realpage
Littelfuse
Bright Horizons Family Solutions
Live Nation Entertainment
John Bean Technologies Corp
Bwx Technologies
Grand Canyon Education
Trex
Holdings represent 21.06% of portfolio
Top 10 holdings as of 07/31/17
Logmein
Summit Materials
John Bean Technologies Corp
Realpage
Five Below
Healthequity
Littelfuse
Siteone Landscape Supply
Globus Medical
Trex
Holdings represent 20.25% of portfolio

Portfolio composition as of 10/31/17

Common stock 99.40%
Cash and net other assets 0.60%

Equity statistics as of 10/31/17

Median market cap $3.05B
Weighted average market cap $3.30B
Price to book 5.59
Price to earnings 46.58

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. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Stock prices may fall or fail to rise over time for a variety of reasons, including general financial market conditions and factors related to a specific issuer or industry. You can lose money by investing in the fund.

Top Industry Sectors as of 10/31/17

Information technology 27.01%
Health care 22.95%
Industrials 19.59%
Consumer discretionary 14.77%
Financials 5.51%
Materials 4.94%
Real estate 2.54%
Consumer staples 2.09%
Cash and net other assets 0.60%

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 R6 Class Y
Total expense ratio 1.21% 1.96% 1.96% 1.71% 1.46% 0.77% 0.96%
What you pay 1.21% 1.96% 1.96% 1.71% 1.46% 0.77% 0.96%

Sales charge/Dealer allowance

 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. 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 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 Russell 2000 Growth Index is an unmanaged index of those companies in the small-cap Russell 2000 Index chosen for their growth 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. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Stock prices may fall or fail to rise over time for a variety of reasons, including general financial market conditions and factors related to a specific issuer or industry. You can lose money by investing in the fund.