An active strategy for harnessing the potential of U.S. value stocks
This fund received a Overall Morningstar Rating™ out of 1,104 funds in the Large Value category based on total return as of 04/30/20.
Portfolio Manager Darren Jaroch manages U.S. and international portfolios, giving him broad investing insight. His knowledge of the landscape across global markets enhances his research of U.S. companies and dividend opportunities.
Multiple sources of insight
Darren combines his own analysis with ideas from analysts in Putnam's Equity Research organization and information from quantitative screening and risk-management tools.
A strategic dividend investor
"It's important to differentiate companies that can simply support a dividend from those that can grow that dividend," says Darren of his approach. He focuses on company cash flows, earnings quality, and capital allocation.
I've always been patient and disciplined. And I think those traits have served me well as an investor.
Darren A. Jaroch, CFA
Portfolio Manager | Industry since 1996
years in the investment industry
years managing value portfolios at Putnam
analysts provide support for Darren's research and stock selection process
A multidimensional approach to value investing
A distinct feature of Putnam Equity Income Fund is Darren's multidimensional strategy. He targets a wider array of opportunities than many other equity income funds. In selecting stocks, he places extra emphasis on businesses that could enhance the fund's capital appreciation potential.
VALUE STOCKS | Attractively priced stocks of companies 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
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The Morningstar Rating™ 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 ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.