Equity
Active strategies seeking long-term outperformance
We offer a range of attractive equity portfolios for DC plans, including multiple 4- and 5-star funds.
Equity strategies with a record of solid performance
| Name of fund | Category | Overall Morningstar RatingTM as of 10/31/23 |
Retirement share class expense ratio |
|---|---|---|---|
| Core Equity Fund | Blend | (out of 1,298 in category) | 0.64 |
| Global Health Care Fund | Global Sector | (out of 158 in category) | 0.71 |
| International Value Fund | Value | (out of 339 in category) | 0.92 |
| Large Cap Value Fund | Value | (out of 1,138 in category) | 0.55 |
| Research Fund | Blend | (out of 1,298 in category) | 0.68 |
| Focused International Equity Fund | Blend | (out of 699 in category) | 0.74 |
| Global Technology Fund | Global Sector | (out of 227 in category) | 0.72 |
| International Capital Opportunities Fund | Blend | (out of 88 in category) | 1.09 |
| International Equity Fund | Blend | (out of 699 in category) | 0.83 |
| Large Cap Growth Fund | Growth | (out of 1,126 in category) | 0.58 |
| Small Cap Growth Fund | Growth | (out of 560 in category) | 0.85 |
| Sustainable Leaders Fund | Growth | (out of 1,126 in category) | 0.58 |
Putnam Large Cap Growth Fund (PGOEX)
Durable growth themes and companies that benefit from them
A thematic approach is a distinctive feature of the fund. The team analyzes global trends, as well as problems and potential solutions, to identify which themes could drive sustained growth for businesses over a multi-year time horizon.
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Cloud infrastructure and software
Businesses are increasingly shifting their information technology systems to cloud storage. See which business we believe can achieve an annual growth rate of more than 30% through 2023.
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Artificial intelligence
Immediate AI beneficiaries include semiconductor and cloud service companies, but there is meaningful potential for future applications across many other sectors. Learn more about one of them, a developer of leading-edge graphic processing units.
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Digital marketing
More companies are recognizing the importance of digital marketing in driving business growth. Learn about the dominant information provider for the commercial real estate industry.
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Increased screen time
In 2019, for the first time, U.S. consumers spent more time with on mobile devices than watching TV. Learn about the company with a best-in-class reputation in the gaming industry.
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Autonomous and electric vehicles
The revenue opportunity for semiconductor companies that supply these markets is growing at above-market rates. See which company we expect to benefit from this and other secular growth trends.
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Humanization of pets
Pets increasingly receive the same level of attention, care, and health maintenance as human family members do. See which company has spent more on R&D over the past five years than all of its competitors combined.
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A healthier tomorrow
People around the globe are prioritizing exercise, diet, and environmental health, and they are seeking greater access to and control over their personal health data. See which leading retailer we believe will benefit from this trend.
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Personalized medicine
The genetic makeup of patients will become increasingly important in the therapy and treatment they receive. See which company opened the world’s largest dedicated cell and gene therapy facility in 2018.
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5G connectivity and the Internet of things
The rapid growth in connected devices and systems will drive carriers to invest rapidly in 5G networks. See one business we believe will benefit as companies make this transition.
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E-commerce and payment processing
The U.S. e-commerce market has grown 16% annually since 2001, and peer-to-peer electronic money transfers have rapidly become more common. See which company we believe has a distinct advantage with its near-universal merchant acceptance and large consumer base.
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The experience economy
The appeal of experiences has become more widespread after the pandemic lockdowns in 2020. This demand, combined with higher levels of personal savings, should help a number of businesses grow at above-market rates for an extended period of time.
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Controlled distribution
How companies sell and distribute their products and services can offer a distinct advantage. See which company gained its leadership position by building customer relationships.
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More to explore:See the fund's consistent outperformance versus peers
Investing for consistency through durable growth themes (PDF)Get details on performance, holdings, and sector weightings
Fund detailsRead the quarterly Q&A with the portfolio managers
Quarterly commentary
Putnam Large Cap Value Fund (PEQSX)
(also available as a CIT)
A multidimensional approach to value investing.
A focus on dividend growth and defining value outside the index. The fund invests in three dimensions of value:
VALUE STOCKS
Attractively priced stocks of companies that are poised for improvement
DIVIDEND GROWERS
Stocks of companies that are willing and able to increase their dividends
CASH-FLOW GENERATORS
Stocks of companies with strong cash flows, earnings quality, and capital allocation strategies
More to explore:See how the fund has consistently ranked in the top quartile
Investing for consistency in all markets (PDF)Learn about the fund's differentiated process
A multidimensional approach to value investing brochure (PDF)Get details on performance, holdings, and sector weightings
Fund details or CIT detailsRead the quarterly Q&A with the portfolio managers
Quarterly commentary
Putnam Small Cap Growth Fund (PLKGX)
(also available as a CIT)
Seeking to capitalize on growing small companies
Small companies can add an attractive source of long-term investment growth for participants of a retirement plan. These companies tend to be flexible and innovative, and can often grow their earnings at faster rates than larger companies.
The portfolio is diversified across two primary types of small company stocks: high-quality growth and aggressive growth. This portfolio offers growth with a more moderate level of volatility that may be compelling for retirement investors.
HIGH-QUALITY GROWTH COMPANIES
60% to 80% of the portfolio
The largest portion of the portfolio consists of stable, well-established growth companies we believe to be mispriced by the market.
The small-cap asset class can be volatile, especially when targeting the fastest-growing companies. To help moderate the fund's volatility over time, we invest a majority of assets in stable, well-established companies that are often less volatile than the asset class as a whole. We believe these companies can grow at high rates, and that the market is not pricing in their full profitability potential.
AGGRESSIVE GROWTH COMPANIES
20% to 40% of the portfolio
A smaller portion of the portfolio is invested in emerging growth and cyclical growth companies. We define emerging growth companies as those that offer disruptive products, services, or technology that will enable them to grow rapidly. They are typically early in their life cycles, and their quality metrics, such as return on capital or margins, may look weak today. However, if they grow at the rates we are projecting, they could mature into high-quality growth leaders. We put less emphasis on cyclical growth companies, but we will own them if we believe they are competitively positioned and offer durable growth prospects.
More to explore:Get details on performance, holdings, and sector weightings
Fund details or fact sheetRead the quarterly Q&A with the portfolio managers
Quarterly commentaryTimely articles and key literature
ESG materiality | Analyzing the growing role of ESG factors in executive compensation
A rising number of S&P 500 companies are now tying ESG metrics to executive pay. Explore insights on how this impacts corporate goals and investment opportunities.
Balance and ballast: A strategy for uncertain markets
With heightened uncertainty in the financial markets, we believe it is an attractive time to invest in balanced funds, thanks to uncorrelated asset class returns and the ballast provided by the fixed-income portion of their portfolios.
| November 1, 2023