Active Allocation

Dynamic Asset Allocation Conservative Fund (Class Y)  (PACYX)

A globally diversified fund for preserving wealth

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Manager commentary: Markets look to Fed, Covid-19 outbreaks for signals
Dynamic Asset Allocation Conservative Fund (PACYX)

Q4 2021 allocations

  • Neutral on equities
  • Reducing high yield to neutral
  • Commodities back to neutral
See Q4 2021 asset allocations

Highlights

Objective

The fund seeks total return consistent with preservation of capital.

Strategy and process

  • Global benchmarkThe fund starts with a globally diversified benchmark with more efficient exposures relative to a typical 30/70 benchmark.
  • Tactical flexibilityThe managers have the ability to tilt overall equity and fixed-income allocations +/-15% and shift exposures within each asset class.
  • Active implementationManagers proactively research and determine the most efficient implementation for each asset class.

Fund price

Net asset value
(yesterday’s close)		 $11.20
-0.27% | $-0.03
52-week high $12.19 (09/02/21)
52-week low $11.20 (01/26/22)
(Optional)

Yield

Distribution rate before sales charge
as of 01/25/22		 1.60%
Distribution rate after sales charge
as of 01/25/22		 1.60%
30-day SEC yield as of 12/31/21 1.21%

Consistency of positive performance over five years

Performance represents 5-year returns in rolling quarter-end periods since inception.

Performance shown does not reflect the effects of any sales charges. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please click on the performance tab.

12.85%

Best 5-year annualized return

(for period ending 03/31/14)

-1.45%

Worst 5-year annualized return

(for period ending 03/31/09)

5.81%

Average 5-year annualized return

Fund facts as of 12/31/21

Total net assets
$1,072.22M
Turnover (fiscal year end)
380%
Dividend frequency (view rate)
Monthly
Number of holdings
2320
Fiscal year-end
September
CUSIP / Fund code
746444801 / 1842
Inception date
07/14/94
Category
Asset Allocation
Open to new investors
Ticker
PACYX

Management team

Robert J. Schoen

Co-Chief Investment Officer, Global Asset Allocation

Brett S. Goldstein, CFA

Co-Chief Investment Officer, Global Asset Allocation

Adrian H. Chan, CFA

Portfolio Manager

James A. Fetch

Co-Head of Global Asset Allocation

Jason R. Vaillancourt, CFA

Co-Head of Global Asset Allocation

Bottom-up views drive multi-asset strategy

Jason Vaillancourt, CFA, Co-Head of Global Asset Allocation, discusses reasons to reduce equity, credit, and commodity allocations as year-end approaches.

Literature

Revisiting the rates conundrum
Bond bears expecting bad news in 2022 should think about the stubbornly low yields of the past two decades.

Performance

  • Total return (%) as of 12/31/21

  • Annual performance as of 12/31/21

Annualized Total return (%) as of 12/31/21

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 5.96% 9.41% 6.59% 6.70%
After sales charge N/A N/A N/A N/A
Bloomberg U.S. Aggregate Bond Index -1.54%4.79%3.57%2.90%
Putnam Conservative Blended Benchmark 5.84%10.73%7.73%6.79%

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. The "before sales charge" performance does not reflect the current maximum sales charges, which we explain below. If performance did reflect the charges, it would be lower. The "after sales charge" performance (or returns at public offering price) varies by share class and fund. For class A and class M shares, the current maximum initial sales charges are 5.75% and 3.50% for equity funds and 4.00% and 3.25% for income funds, respectively (with these exceptions: 2.25% for class A of Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return Fund). Class B share performance reflects the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declines to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, Putnam Short Duration Bond Fund, and Putnam Fixed Income Absolute Return Fund; for these funds, the CDSC is 1% in the first year, declines to 0.5% in the second year, and is eliminated thereafter). Class C share performance reflects 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 by adjusting for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (note, for two funds — Putnam Tax-Free High Yield Fund and Putnam Strategic Intermediate Municipal Fund performance prior to inception is based on the historical performance of class B shares). Performance for class A, C, R6, and Y shares of Putnam Mortgage Opportunities Fund before their inception is derived from the historical performance of class I shares, which has been adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares. The "after sales charge" performance (at public offering price) for class N shares reflects the current maximum initial sales charge of 1.50%. Class R, R3, R4, R5, and R6 shares, which are 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 R3 and R4 shares prior to their inception is derived from the historical performance of class Y shares by adjusting for the higher operating expenses for such shares. Performance for class R5 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower expenses; had it been adjusted, performance would be higher (with the exception of the RetirementReady Maturity, 2025, 2030, 2035, and 2040 Funds, for which performance is derived from the historical performance of class R6 shares and has been adjusted for the higher operating expenses for such shares; and the RetirementReady 2045, 2050, 2055, and 2060 Funds, for which performance is derived from the historical performance of class R6 shares and has not been adjusted for the lower expenses; had it been adjusted, performance would be higher). Performance for class R6 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would be higher. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses. Had these limits not been in place, performance would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 12/31/21 1.03% -
YTD as of 01/25/22 -3.81% -

Yield

Distribution rate before sales charge
as of 01/25/22		 1.60%
Distribution rate after sales charge
as of 01/25/22		 1.60%
30-day SEC yield as of 12/31/21 1.21%

Risk-adjusted performance as of 12/31/21

Sharpe ratio (3 yrs.) 1.37

Volatility as of 12/31/21

Standard deviation (3 yrs.) 6.24%

Fixed income statistics as of 12/31/21

Average effective duration 3.59 yrs.

Lipper rankings as of 12/31/21

Time period Rank/Funds in category Percentile ranking
1 yr. 168/320 53%
3 yrs. 127/295 43%
5 yrs. 115/277 42%
10 yrs. 39/201 20%
Lipper category: Mixed-Asset Trgt Alloc Con Fds

Morningstar Ratings™ as of 12/31/21

Time period Funds in category Morningstar Rating™
Overall 465
3 yrs. 465
5 yrs. 424
10 yrs. 283
Morningstar category: Allocation--30% to 50% Equity

Distributions

Record/Ex dividend date 01/18/22
Payable date 01/20/22
Income $0.015
Extra income --
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

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Fnma Fn30 Tba Umbs 02.5000 02/01/2052 2.94%
Apple Inc Sedol 2046251 2.38%
Microsoft Corp Sedol 2588173 2.04%
Gnma Gii30 Tba 03.0000 01/01/2052 2.03%
Fnma Fn30 Tba Umbs 03.5000 02/01/2052 1.57%
Fnma Fn30 Tba Umbs 03.5000 01/01/2052 1.38%
Amazon.Com Inc Sedol 2000019 1.30%
Alphabet Inc-Cl A Sedol Byvy8g0 1.29%
Nvidia Corp Sedol 2379504 1.06%
Top 10 holdings, percent of portfolio 19.27%