Small Cap Growth Fund (Class Y)  (PSYGX)

Seeking to capitalize on growing small companies

Highlights

Objective

The fund seeks capital appreciation.

Strategy and process

  • Small companies: Often overlooked by Wall Street analysts, the stocks of small companies can represent attractive opportunities.
  • A focus on growth: Small companies tend to be flexible and innovative, and can often expand their earnings at faster rates than larger companies.
  • A disciplined process: The portfolio manager uses a disciplined bottom-up fundamental investment process that focuses on quality and growth.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $46.74
0.26% | $0.12
$46.74
07/19/18
$34.14
08/25/17
Historical fund price

Fund facts as of 06/30/18

Total net assets
$190.62M
Turnover (fiscal year end)
127%
Dividend frequency
Annually
Number of holdings
85
Fiscal year-end
June
CUSIP / Fund code
746763499 / 1852
Inception date
11/03/03
Class Y  
Category
Growth
Open to new investors
Ticker
PSYGX

Management team

Portfolio Manager



Performance

  • Total return (%) as of 06/30/18

  • Annual performance as of 06/30/18

Annualized Total return (%) as of 06/30/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 26.64% 10.16% 13.59% 9.91%
After sales charge N/A N/A N/A N/A
Russell 2000 Growth Index 21.86% 10.60% 13.65% 11.24%

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. 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 Multi-Asset Absolute Return Fund, and 4.00% and 3.25% for income funds (2.25% and 0.75% for Putnam Short Duration Bond Fund and 1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Fixed Income Absolute Return 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 Short Duration Bond Fund, Putnam Fixed Income Absolute Return 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, 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. 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 06/30/18 1.23 % -
YTD as of 07/19/18 19.82 % -

Risk-adjusted performance as of 06/30/18

Alpha (3 yrs.) -0.66
Sharpe ratio (3 yrs.) 0.64
Treynor ratio (3 yrs.) 9.36
Information ratio (3 yrs.) -0.13

Volatility as of 06/30/18

Standard deviation (3 yrs.) 15.05%
Beta 1.02
R-squared 0.95

Capture ratio as of 06/30/18

Up-market (3 yrs.) 99.65
Down-market (3 yrs.) 102.17

Lipper rankings as of 06/30/18

Small-Cap Growth Funds Percentile ranking Rank/Funds in category
1 yr. 32% 178/566
3 yrs. 59% 288/494
5 yrs. 39% 170/445
10 yrs. 69% 230/336

Morningstar ratings as of 06/30/18

Small Growth Rating Funds in category
Overall (606)
3 yrs. (606)
5 yrs. (534)
10 yrs. (404)

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 06/30/18

Five Below 2.85%
Realpage 2.34%
Wingstop 2.32%
Siteone Landscape Supply 2.23%
Hamilton Lane 2.21%
Trex 2.17%
Ligand Pharmaceuticals 2.09%
Bright Horizons Family Solutions 2.08%
Grand Canyon Education 2.07%
Merit Medical Systems 2.07%
Top 10 holdings, percent of portfolio 22.43%

Full portfolio holdings as of 03/31/18

FIVE BELOW 2.57%
REALPAGE INC 2.46%
WINGSTOP INC 2.37%
GRAND CANYON EDUCATION INC 2.32%
JOHN BEAN TECHNOLOGIES CORP 2.31%
SITEONE LANDSCAPE SUPPLY INC 2.31%
BRIGHT HORIZONS FAMILY SOLUT 2.29%
SUMMIT MATERIALS INC -CL A 2.15%
TREX COMPANY INC 2.12%
BWX TECHNOLOGIES INC 2.06%
LITTELFUSE INC 1.99%
MERIT MEDICAL SYSTEMS INC 1.96%
PATRICK INDUSTRIES INC 1.96%
HAMILTON LANE INC-CLASS A 1.94%
FERRO CORP 1.92%
HEICO CORP 1.92%
EVERCORE INC - A 1.85%
GODADDY INC - CLASS A 1.84%
LIGAND PHARMACEUTICALS 1.83%
CENTRAL GARDEN & PET CO 1.80%
RINGCENTRAL INC-CLASS A 1.73%
LIVE NATION ENTERTAINMENT IN 1.68%
INSTALLED BUILDING PRODUCTS 1.62%
2U INC 1.60%
AT HOME GROUP INC 1.57%
MAXIMUS INC 1.48%
J2 GLOBAL INC 1.44%
INSULET CORP 1.42%
EVERBRIDGE INC 1.37%
NEKTAR THERAPEUTICS 1.36%
KINSALE CAPITAL GROUP INC 1.31%
ENVESTNET INC 1.30%
SAIA INC 1.27%
PENUMBRA INC 1.25%
HEALTHEQUITY INC 1.24%
EMERGENT BIOSOLUTIONS INC 1.22%
HEALTHCARE SERVICES GROUP 1.22%
QAD INC-A 1.20%
ORION ENGINEERED CARBONS SA 1.19%
PACIFIC PREMIER BANCORP INC 1.18%
PROOFPOINT INC 1.18%
ESCO TECHNOLOGIES INC 1.16%
MERCURY SYSTEMS INC 1.15%
INTEGRATED DEVICE TECH INC 1.14%
NOVANTA INC 1.10%
ENTEGRIS INC 1.07%
CABLE ONE INC 1.06%
H AND E EQUIPMENT SERVICES INC 1.03%
INSTRUCTURE INC 1.03%
PROS HOLDINGS INC 1.03%
MASTEC INC 1.00%
MKS INSTRUMENTS INC 0.99%
SAREPTA THERAPEUTICS INC 0.99%
EXACT SCIENCES CORP 0.87%
SAGE THERAPEUTICS INC 0.87%
Q2 HOLDINGS INC 0.85%
ADVANCED ENERGY INDUSTRIES 0.83%
BROOKS AUTOMATION INC 0.83%
LIBERTY MEDIA CORP-BRAVES A 0.82%
REPLIGEN CORP 0.79%
AVEXIS INC 0.77%
ROGERS CORP 0.77%
INTEGRA LIFESCIENCES HOLDING 0.76%
AMICUS THERAPEUTICS INC 0.73%
ARRAY BIOPHARMA INC 0.72%
ACCELERON PHARMA INC 0.63%
CLOVIS ONCOLOGY INC 0.62%
GLOBAL BLOOD THERAPEUTICS IN 0.59%
ACLARIS THERAPEUTICS INC 0.55%
WINNEBAGO INDUSTRIES 0.54%
CHEGG INC 0.51%
CANTEL MEDICAL CORP 0.49%
TALEND SA - ADR 0.49%
PORTOLA PHARMACEUTICALS INC 0.48%
MIRATI THERAPEUTICS INC 0.45%
ATARA BIOTHERAPEUTICS INC 0.43%
LOGMEIN INC 0.29%
TG THERAPEUTICS INC 0.28%
ALTERYX INC - CLASS A 0.26%

Prior top 10 holdings

Top 10 holdings as of 06/30/18
Five Below
Realpage
Wingstop
Siteone Landscape Supply
Hamilton Lane
Trex
Ligand Pharmaceuticals
Bright Horizons Family Solutions
Grand Canyon Education
Merit Medical Systems
Holdings represent 22.43% of portfolio
Top 10 holdings as of 05/31/18
Realpage
Wingstop
Five Below
Grand Canyon Education
Hamilton Lane
Bright Horizons Family Solutions
Trex
Siteone Landscape Supply
Evercore
Merit Medical Systems
Holdings represent 21.76% of portfolio
Top 10 holdings as of 04/30/18
Realpage
Five Below
Wingstop
Grand Canyon Education
John Bean Technologies Corp
Hamilton Lane
Bright Horizons Family Solutions
Evercore
Bwx Technologies
Merit Medical Systems
Holdings represent 22.62% of portfolio
Top 10 holdings as of 03/31/18
Five Below
Realpage
Wingstop
Grand Canyon Education
Siteone Landscape Supply
John Bean Technologies Corp
Bright Horizons Family Solutions
Summit Materials
Trex
Bwx Technologies
Holdings represent 22.96% of portfolio

Portfolio composition as of 06/30/18

Common stock 96.90%
Cash and net other assets 3.10%

Equity statistics as of 06/30/18

Median market cap $2.49B
Weighted average market cap $3.35B
Price to book 6.61
Price to earnings 39.65

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Stock prices may fall or fail to rise over time for a variety of reasons, including general financial market conditions and factors related to a specific issuer or industry. You can lose money by investing in the fund.

Top Industry Sectors as of 06/30/18

Health care 25.37%
Information technology 24.50%
Industrials 16.91%
Consumer discretionary 16.12%
Financials 7.96%
Materials 4.28%
Cash and net other assets 3.10%
Consumer staples 1.76%

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 R6 Class Y
Total expense ratio 1.21% 1.96% 1.96% 1.71% 1.46% 0.77% 0.96%
What you pay 1.21% 1.96% 1.96% 1.71% 1.46% 0.77% 0.96%

Sales charge/Dealer allowance

 Breakpoint Class A Class B Class C Class M Class R Class R6 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 R6 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 R6 Class Y
  0.25% 0.25% 1.00% 0.65% 0.50% 0.00% 0.00%
  NA NA 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 2000 Growth Index is an unmanaged index of those companies in the small-cap Russell 2000 Index chosen for their growth orientation. You cannot invest directly in an index.

Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Stock prices may fall or fail to rise over time for a variety of reasons, including general financial market conditions and factors related to a specific issuer or industry. You can lose money by investing in the fund.