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Focused Equity Fund (Class Y)  (PGILX)

A concentrated portfolio of stocks believed to offer upside potential that exceeds risk

Highlights

Objective

The fund seeks capital appreciation.

Strategy and process

  • Seeks to limit downside riskSeeks to protect capital during market drawdowns while investing in stocks believed to have multiple catalysts to drive returns.
  • Multi-skilled managerThe portfolio manager has more than 20 years of experience in the investment industry, including private equity, hedge funds, and mutual funds.
  • Evaluates sentimentThe investment process combines fundamental analysis with consideration of investor sentiment and asset flows.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $22.09
1.19% | $0.26
$24.24
09/21/18
$16.86
12/24/18
Historical fund price

Fund facts as of 07/31/19

Total net assets
$189.02M
Turnover (fiscal year end)
293%
Dividend frequency
Annually
Number of holdings
30
Fiscal year-end
August
CUSIP / Fund code
746764588 / 1868
Inception date
12/18/08
Class Y  
Category
Blend
Open to new investors
Ticker
PGILX

Management team

Portfolio Manager


Literature


Performance

  • Total return (%) as of 06/30/19

  • Annual performance as of 06/30/19

Annualized Total return (%) as of 06/30/19

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 8.39% 12.86% 9.12% 15.27%
After sales charge N/A N/A N/A N/A
S&P 500 Index 10.42%14.19%10.71%14.70%
MSCI Wrld Industls (ND) - S&P 500 Linked Benchmark 5.67%11.37%6.53%11.78%

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, 4.00% and 3.25% for income funds and 2.25% and 0.75% for Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return 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, which is 3% in the first year, declining to 1% in the fourth 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, N, 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). Returns at public offering price (after sales charge) for class N shares reflect the current maximum initial sales charge of 1.50%. 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 and M shares of Putnam money market funds have no initial sales charge. For a portion of the periods, some funds had expense 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 07/31/19 0.86% -
YTD as of 08/19/19 23.34% -

Distributions

Record/Ex dividend date 12/21/18
Payable date 12/26/18
Income --
Extra income --
Short-term cap. gain --
Long-term cap. gain $1.495

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 07/31/19

Microsoft Corp 7.24%
Amazon.Com 5.80%
Visa 4.73%
Nextera Energy 3.87%
Cisco Systems 3.86%
Fidelity National Information Services 3.74%
Roper Technologies 3.64%
Live Nation Entertainment 3.58%
Walt Disney The 3.57%
Transdigm Group 3.56%
Top 10 holdings, percent of portfolio 43.59%

Full portfolio holdings as of 06/30/19

MICROSOFT CORP 6.20%
AMAZON.COM INC 5.26%
VISA INC-CLASS A SHARES 4.05%
DANAHER CORP 4.00%
NEXTERA ENERGY INC 3.97%
FIDELITY NATIONAL INFO SERV 3.74%
ROPER TECHNOLOGIES INC 3.70%
CHENIERE ENERGY INC 3.59%
TRANSDIGM GROUP INC 3.58%
WASTE CONNECTIONS INC 3.52%
WALMART INC 3.51%
LIVE NATION ENTERTAINMENT IN 3.51%
HONEYWELL INTERNATIONAL INC 3.47%
MERCK & CO. INC. 3.42%
CISCO SYSTEMS INC 3.40%
GOLDMAN SACHS GROUP INC 3.13%
PAYPAL HOLDINGS INC 3.03%
WALT DISNEY CO/THE 3.03%
THERMO FISHER SCIENTIFIC INC 2.99%
GODADDY INC - CLASS A 2.90%
BOSTON SCIENTIFIC CORP 2.83%
INTUITIVE SURGICAL INC 2.76%
KKR & CO INC -A 2.59%
COSTCO WHOLESALE CORP 2.50%
OKTA INC 2.32%
ILLUMINA INC 2.30%
COCA-COLA CO/THE 2.27%
NORFOLK SOUTHERN CORP 1.76%
PROCTER & GAMBLE CO/THE 1.62%
MCCORMICK & CO-NON VTG SHRS 1.51%
TWILIO INC - A 1.51%
TALEND SA - ADR 1.04%
TREASURY BILL 00.0000 08/01/2019 0.04%
TREASURY BILL 00.0000 07/18/2019 0.02%

Prior top 10 holdings

Top 10 holdings as of 07/31/19
Microsoft Corp
Amazon.Com
Visa
Nextera Energy
Cisco Systems
Fidelity National Information Services
Roper Technologies
Live Nation Entertainment
Walt Disney The
Transdigm Group
Holdings represent 43.59% of portfolio
Top 10 holdings as of 06/30/19
Microsoft Corp
Amazon.Com
Visa
Danaher Corp
Nextera Energy
Fidelity National Information Services
Roper Technologies
Cheniere Energy
Transdigm Group
Waste Connections
Holdings represent 41.61% of portfolio
Top 10 holdings as of 05/31/19
Honeywell International
Waste Connections
Roper Technologies
Union Pacific Corp
United Technologies Corp
Transdigm Group
Johnson Controls International
Airbus
Norfolk Southern Corp
Fortive Corp
Holdings represent 59.59% of portfolio
Top 10 holdings as of 04/30/19
Honeywell International
United Technologies Corp
Union Pacific Corp
Roper Technologies
Waste Connections
Transdigm Group
Boeing The
Airbus
Norfolk Southern Corp
Emerson Electric
Holdings represent 56.05% of portfolio

Portfolio composition as of 07/31/19

Common stock 98.22%
Cash and net other assets 1.78%

Equity statistics as of 07/31/19

Median market cap $91.50B
Weighted average market cap $234.96B
Price to book 4.93
Price to earnings 24.35

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. The fund concentrates on a limited number of issuers or sectors and is non-diversified. Because the fund may invest in fewer issuers than a diversified fund, it is vulnerable to common economic forces and may result in greater losses and volatility. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The use of short selling may result in losses if the securities appreciate in value. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. The value of investments in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political or financial market conditions, investor sentiment and market perceptions, government actions, geopolitical events or changes, and factors related to a specific issuer, geography, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. You can lose money by investing in the fund.

Top industry sectors as of 07/31/19

Information technology 30.08%
Industrials 15.49%
Health care 13.68%
Consumer staples 11.02%
Financials 8.30%
Communication services 7.16%
Consumer discretionary 5.80%
Utilities 3.87%
Energy 2.82%
 
Other
1.78%
Cash and net other assets 1.78%

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

Sectors will vary over time.

Country allocation as of 07/31/19

United States 98.22%
Cash and net other assets 1.78%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 1.27% 2.02% 2.02% 1.77% 1.52% 0.88% 1.02%
What you pay 1.27% 2.02% 2.02% 1.77% 1.52% 0.88% 1.02%

Sales charge

 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% 0.50% -- -- -- --
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 S&P 500 Index is an unmanaged index of common stock performance. The MSCI World Industrials Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets in the industrial sector. The MSCI World Industrials (ND) - S&P 500 Linked Benchmark represents performance of the MSCI World Industrials Index (ND) through June 21, 2019 and performance of the S&P 500 Index thereafter. You cannot invest directly in an index. As of June 24, 2019, the S&P 500 Index replaced the MSCI World Industrials Index (ND) 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: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. The fund concentrates on a limited number of issuers or sectors and is non-diversified. Because the fund may invest in fewer issuers than a diversified fund, it is vulnerable to common economic forces and may result in greater losses and volatility. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The use of short selling may result in losses if the securities appreciate in value. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. The value of investments in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political or financial market conditions, investor sentiment and market perceptions, government actions, geopolitical events or changes, and factors related to a specific issuer, geography, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. You can lose money by investing in the fund.