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.

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Equity strategies with a record of solid performance

Name of fund	Category	Overall Morningstar Rating^TM as of 10/31/22	Retirement share class expense ratio
Large Cap Value Fund	Value	(out of 1,139 in category)	0.54
Multi-Cap Core Fund	Blend	(out of 1,221 in category)	0.62
Small Cap Growth Fund	Growth	(out of 576 in category)	0.85
Emerging Markets Equity Fund	Blend	(out of 732 in category)	1.21
Focused International Equity Fund	Blend	(out of 700 in category)	0.7
Global Health Care Fund	Global Sector	(out of 150 in category)	0.71
Global Technology Fund	Global Sector	(out of 217 in category)	0.73
Growth Opportunities Fund	Growth	(out of 1,129 in category)	0.64
International Equity Fund	Blend	(out of 700 in category)	0.84
International Value Fund	Value	(out of 317 in category)	0.97
Research Fund	Blend	(out of 1,221 in category)	0.66
Sustainable Leaders Fund	Growth	(out of 1,129 in category)	0.65

Putnam Growth Opportunities 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.

Learn more about Putnam Growth Opportunities Fund: Fund details | 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

Learn more about Putnam Large Cap Value Fund: Brochure | Fund details | CIT details | 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.

Stock example: Boot Barn Holdings (BOOT)

This is a California-based retailer of work boots, western footwear, and apparel for men and women. The company's mix of both essential items and more discretionary goods that are difficult to purchase online has contributed to the company's growth. This growth continued through the Covid-19 pandemic, and the company has emerged as an even stronger retailer, in our view. Its store-level return profile is robust, which allows the company to internally fund an accelerating store-opening plan.

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.

Stock example: Tenable (TENB)

Tenable is a leader in vulnerability management — an increasingly critical component of cyber security. Tenable's high level of focus has enabled it to provide a broader view of its clients' vulnerabilities, examining areas beyond the physical footprint of a business. This is necessary as businesses shift to mobile workforces and the cloud. This is a complicated endeavor for businesses, and Tenable can offer answers and help security personnel prioritize remedies.

Learn more about Putnam Small Cap Growth Fund: Fund details | Fact Sheet | Quarterly commentary

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