Prior to March 19, 2018, the fund was known as Putnam Multi-Cap Value Fund. As of 3/19, Stephanie Henderson was added to the fund as an Assistant Portfolio Manager.

Sustainable Future Fund (Class Y)  (PMVYX)

Investing in growing companies solving sustainability challenges

Highlights

Objective

The fund seeks seeks long-term capital appreciation.

Strategy and process

  • Impact companies: The fund invests in growth companies that directly demonstrate positive impact in social, environmental, or economic development.
  • Active strategy: The managers utilize bottom-up research to identify companies with attractive sustainability, fundamental, and valuation characteristics.
  • Veteran team: A dedicated sustainable investing team is backed by Putnam's equity research and quantitative/risk analysis groups.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $19.65
-1.40% | $-0.28
$21.29
01/26/18
$19.03
05/17/17
Historical fund price

Fund facts as of 03/31/18

Total net assets
$413.00M
Turnover (fiscal year end)
78%
Dividend frequency
Annually
Number of holdings
57
Fiscal year-end
April
CUSIP / Fund code
746802198 / 1856
Inception date
04/02/02
Class Y  
Category
Growth
Open to new investors
Ticker
PMVYX

Management team

Head of Sustainable Investing
Portfolio Manager, Analyst


Manager commentary | Q1 2018

Sustainability is a facet of solid fundamental research

Portfolio Manager Katherine Collins discusses Putnam's approach to ESG investing and how it builds on the firm's historic strengths in research.



Performance

  • Total return (%) as of 03/31/18

  • Annual performance as of 03/31/18

Annualized Total return (%) as of 03/31/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 4.99% 4.23% 10.62% 8.61%
After sales charge N/A N/A N/A N/A
Russell Midcap Growth Index 19.74% 9.17% 13.31% 10.61%
Russell 3000V-Russell MidcapG Linked Benchmark 5.63% 7.47% 10.47% 7.72%

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 03/31/18 -1.71 % -
YTD as of 04/23/18 -0.25 % -

Lipper rankings as of 03/31/18

Multi-Cap Value Funds Percentile ranking Rank/Funds in category
1 yr. 91% 316/350
3 yrs. 92% 277/302
5 yrs. 42% 110/265
10 yrs. 28% 58/212

Morningstar ratings as of 03/31/18

Mid-Cap Value Rating Funds in category
Overall (361)
3 yrs. (361)
5 yrs. (309)
10 yrs. (225)

Distributions

Record/Ex dividend date 12/06/17
Payable date 12/08/17
Income --
Extra income --
Short-term cap. gain $0.228
Long-term cap. gain $0.665

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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Holdings

Top 10 holdings as of 03/31/18

Novozymes A/S - B Shares 4.65%
Dxc Technology 4.35%
Mccormick Md 3.58%
Becton Dickinson And 3.44%
Unilever 3.28%
Vail Resorts 2.98%
Alphabet 2.94%
Salesforce.Com 2.89%
Teladoc 2.74%
First Republic Bank/Ca 2.72%
Top 10 holdings, percent of portfolio 33.57%

Full portfolio holdings as of 12/31/17

DXC TECHNOLOGY CO 3.91%
BANK OF AMERICA CORP 3.48%
UNION PACIFIC CORP 2.99%
NORTHROP GRUMMAN CORP 2.62%
SNAP-ON INC 2.62%
JAZZ PHARMACEUTICALS PLC 2.26%
E*TRADE FINANCIAL CORPORATION 2.25%
FIRST REPUBLIC BANK/CA 2.24%
CONOCOPHILLIPS 2.17%
AMETEK INC 2.16%
BOSTON SCIENTIFIC CORP 2.06%
HARRIS CORP 2.04%
DANAHER CORP 1.98%
CITIGROUP INC 1.95%
BECTON DICKINSON AND CO 1.87%
EXELON CORP 1.82%
WYNN RESORTS LTD 1.81%
EOG RESOURCES INC 1.78%
BALL CORP 1.76%
AMEREN CORPORATION 1.66%
FIDELITY NATIONAL INFO SERV 1.66%
ALLERGAN PLC 1.58%
JOHNSON CONTROLS INTERNATION 1.57%
KEYCORP 1.57%
XEROX CORP 1.53%
L3 TECHNOLOGIES INC 1.52%
EAST WEST BANCORP INC 1.49%
GOLDMAN SACHS GROUP INC 1.49%
INVESCO LTD 1.47%
PINNACLE FOODS INC 1.39%
ENCANA CORP 1.38%
W.R. GRACE & CO 1.37%
LAM RESEARCH CORP 1.34%
HARTFORD FINANCIAL SVCS GRP 1.21%
ALCOA CORP 1.18%
CMS ENERGY CORP 1.11%
NORFOLK SOUTHERN CORP 1.07%
PACWEST BANCORP 1.07%
HOST HOTELS & RESORTS INC 1.04%
KRAFT HEINZ CO/THE 1.01%
OLIN CORP 1.01%
NRG ENERGY INC 0.97%
GRAPHIC PACKAGING HOLDING CO 0.94%
PULTEGROUP INC 0.89%
AMERICAN INTERNATIONAL GROUP 0.88%
DENTSPLY SIRONA INC 0.88%
JM SMUCKER CO/THE 0.87%
MARATHON OIL CORP 0.85%
AGILENT TECHNOLOGIES INC 0.80%
AMERICAN AIRLINES GROUP INC 0.75%
HILTON WORLDWIDE HOLDINGS IN 0.73%
OLD NATIONAL BANCORP 0.72%
TIFFANY & CO 0.69%
ANADARKO PETROLEUM CORP 0.68%
CF INDUSTRIES HOLDINGS INC 0.67%
OWENS CORNING 0.67%
TJX COMPANIES INC 0.67%
CELANESE CORP-SERIES A 0.65%
PENN NATIONAL GAMING INC 0.65%
BRUNSWICK CORP 0.63%
MICHAELS COS INC/THE 0.63%
ASSURED GUARANTY LTD 0.61%
APACHE CORP 0.56%
REGIONS FINANCIAL CORP 0.53%
UNITED STATES STEEL CORP 0.53%
GAP INC/THE 0.51%
SUMMIT MATERIALS INC -CL A 0.51%
MICRO FOCUS INTL-SPN ADR 0.49%
GOODYEAR TIRE & RUBBER CO 0.46%
MILACRON HOLDINGS CORP 0.43%
ARAMARK 0.41%
OSHKOSH CORP 0.36%
DEVON ENERGY CORP 0.35%
DOVER CORP 0.33%
AVON PRODUCTS INC 0.31%
MEDICINES COMPANY 0.30%
TRANSOCEAN LTD 0.29%
HASBRO INC 0.28%
EQT CORP 0.26%
S&P500 EMINI FUT MAR18 ESH8 0.01%
S&P MID 400 EMINI MAR18 FAH8 0.00%

Prior top 10 holdings

Top 10 holdings as of 03/31/18
Novozymes A/S - B Shares
Dxc Technology
Mccormick Md
Becton Dickinson And
Unilever
Vail Resorts
Alphabet
Salesforce.Com
Teladoc
First Republic Bank/Ca
Holdings represent 33.57% of portfolio
Top 10 holdings as of 02/28/18
Dxc Technology
Bank Of America Corp
Becton Dickinson And
E*Trade Financial Corp
Union Pacific Corp
First Republic Bank/Ca
Northrop Grumman Corp
Danaher Corp
Jazz Pharmaceuticals
ConocoPhillips
Holdings represent 30.20% of portfolio
Top 10 holdings as of 01/31/18
Dxc Technology
Bank Of America Corp
Union Pacific Corp
Becton Dickinson And
Northrop Grumman Corp
E*Trade Financial Corp
First Republic Bank/Ca
ConocoPhillips
Jazz Pharmaceuticals
Ametek
Holdings represent 28.30% of portfolio
Top 10 holdings as of 12/31/17
Dxc Technology
Bank Of America Corp
Union Pacific Corp
Snap-On
Northrop Grumman Corp
Jazz Pharmaceuticals
E*Trade Financial Corp
First Republic Bank/Ca
ConocoPhillips
Ametek
Holdings represent 26.70% of portfolio

Portfolio composition as of 03/31/18

Common stock 95.43%
Cash and net other assets 4.57%

Equity statistics as of 03/31/18

Median market cap $14.32B
Weighted average market cap $58.96B
Price to book 4.10
Price to earnings 23.27

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Stock values may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Investments in small and/or midsize companies increase the risk of greater price fluctuations. The fund's sustainable investment strategy limits the types and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not have a sustainable focus. A fund's environmental, social, and/or corporate governance (ESG) investment strategy may result in the fund investing in securities or industry sectors that underperform the market as a whole or underperform other funds screened for ESG standards. You can lose money by investing in the fund.

Top Industry Sectors as of 03/31/18

Information technology 25.17%
Health care 20.48%
Financials 13.65%
Consumer staples 8.93%
Industrials 8.79%
Materials 8.76%
Consumer discretionary 8.60%
Cash and net other assets 4.57%
Utilities 1.05%

The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Sectors will vary over time.


Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 1.08% 1.83% 1.83% 1.58% 1.33% 0.83%
What you pay 1.08% 1.83% 1.83% 1.58% 1.33% 0.83%

Sales charge/Dealer allowance

 Breakpoint Class A Class B Class C Class M Class R 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 Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- --
9 to 12 mts. 1.00% 5.00% 1.00% -- -- --
2 yrs. 0.00% 4.00% 0.00% -- -- --
3 yrs. 0.00% 3.00% 0.00% -- -- --
4 yrs. 0.00% 3.00% 0.00% -- -- --
5 yrs. 0.00% 2.00% 0.00% -- -- --
6 yrs. 0.00% 1.00% 0.00% -- -- --
7+ yrs. 0.00% 0.00% 0.00% -- -- --

Trail commissions

  Class A Class B Class C Class M Class R Class Y
  0.25% 0.25% 1.00% 0.65% 0.50% 0.00%
  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 Midcap Growth Index is an unmanaged index of those companies in the Russell Midcap Index chosen for their growth orientation. The Russell 3000 Value Index is an unmanaged index of those companies in the broad-market Russell 3000 Index chosen for their value orientation. The Russell 3000 Value - Russell Midcap Growth Linked Benchmark represents performance of the Russell 3000 Value Index through March 20, 2018 and performance of the Russell Midcap Growth Index thereafter. You cannot invest directly in an index. As of March 21, 2018, the Russell Midcap Growth Index replaced the Russell 3000 Value Index as the benchmark for this fund because, in Putnam Investment Management, LLC’s opinion, the securities tracked by this index more accurately reflect the types of securities that generally will be held by the fund.

Consider these risks before investing: Stock values may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Investments in small and/or midsize companies increase the risk of greater price fluctuations. The fund's sustainable investment strategy limits the types and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not have a sustainable focus. A fund's environmental, social, and/or corporate governance (ESG) investment strategy may result in the fund investing in securities or industry sectors that underperform the market as a whole or underperform other funds screened for ESG standards. You can lose money by investing in the fund.