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

Sustainable Leaders Fund (Class Y)  (PNOYX)

Investing in growing companies committed to sustainable practices

Highlights

Objective

The fund seeks long-term capital appreciation.

Strategy and process

  • Committed companies: The fund invests in growth companies with the goal of delivering positive financial and ESG performance.
  • 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 $103.99
-0.12% | $-0.12
$105.83
06/12/18
$88.90
07/06/17
Historical fund price

Fund facts as of 05/31/18

Total net assets
$4,514.63M
Turnover (fiscal year end)
76%
Dividend frequency
Annually
Number of holdings
84
Fiscal year-end
June
CUSIP / Fund code
746916402 / 1831
Inception date
07/19/94
Class Y  
Category
Growth
Open to new investors
Ticker
PNOYX

Management team

Head of Sustainable Investing
Co-Head of Equities
Portfolio Manager, Analyst


Manager commentary | Q1 2018

Sustainable investing depends on knowing companies

Portfolio Manager Katherine Collins explains what she believes distinguishes Putnam's research capabilities in the area of ESG investing.



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 21.88% 11.70% 15.43% 10.70%
After sales charge N/A N/A N/A N/A
Russell 3000 Growth Index 21.06% 12.57% 15.32% 11.31%

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 05/31/18 3.72 % -
YTD as of 06/22/18 8.86 % -

Risk-adjusted performance as of 05/31/18

Alpha (3 yrs.) -1.83
Sharpe ratio (3 yrs.) 1.01
Treynor ratio (3 yrs.) 11.42
Information ratio (3 yrs.) -0.37

Volatility as of 05/31/18

Standard deviation (3 yrs.) 12.05%
Beta 1.07
R-squared 0.96

Capture ratio as of 05/31/18

Up-market (3 yrs.) 102.04
Down-market (3 yrs.) 113.42

Lipper rankings as of 05/31/18

Multi-Cap Growth Funds Percentile ranking Rank/Funds in category
1 yr. 45% 228/512
3 yrs. 30% 132/453
5 yrs. 21% 81/399
10 yrs. 35% 105/301

Morningstar ratings as of 05/31/18

Large Growth Rating Funds in category
Overall (1269)
3 yrs. (1269)
5 yrs. (1151)
10 yrs. (836)

Distributions

Record/Ex dividend date 12/06/17
Payable date 12/08/17
Income $0.666
Extra income --
Short-term cap. gain --
Long-term cap. gain $3.94

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 05/31/18

Microsoft Corp 4.81%
Alphabet 3.98%
Novozymes A/S - B Shares 3.94%
Visa 3.69%
Amazon.Com 3.62%
Unilever Nv 3.15%
Norfolk Southern Corp 2.93%
Blackrock 2.89%
Becton Dickinson And 2.78%
Home Depot The 2.62%
Top 10 holdings, percent of portfolio 34.41%

Full portfolio holdings as of 03/31/18

MICROSOFT CORP 4.57%
NOVOZYMES A/S-B SHARES 4.13%
ALPHABET INC-CL C 3.89%
VISA INC-CLASS A SHARES 3.47%
AMAZON.COM INC 3.31%
UNILEVER NV-CVA 3.29%
BLACKROCK INC 3.02%
APPLE INC 2.97%
BECTON DICKINSON AND CO 2.80%
NORFOLK SOUTHERN CORP 2.70%
HOME DEPOT INC 2.57%
DANAHER CORP 2.52%
BANK OF AMERICA CORP 2.35%
HEINEKEN NV 2.27%
APPLIED MATERIALS INC 1.94%
DXC TECHNOLOGY CO 1.94%
PRUDENTIAL PLC 1.94%
MCCORMICK & CO-NON VTG SHRS 1.72%
FORTIVE CORP 1.69%
STMICROELECTRONICS NV-NY SHS 1.66%
ADOBE SYSTEMS INC 1.59%
BOSTON SCIENTIFIC CORP 1.40%
SALESFORCE.COM INC 1.38%
OKTA INC 1.15%
AES CORP 1.10%
KION GROUP AG 1.09%
LOWES COMPANIES INC 1.06%
CHIPOTLE MEXICAN GRILL INC 1.05%
NEXTERA ENERGY INC 1.05%
ECOLAB INC 1.04%
KIMBERLY-CLARK CORP 1.04%
OWENS CORNING 1.04%
BALL CORP 1.03%
CHR HANSEN HOLDING A/S 1.03%
TJX COMPANIES INC 1.03%
FIRST SOLAR INC 1.01%
ROPER TECHNOLOGIES INC 1.01%
WEBSTER FINANCIAL CORP 1.01%
E*TRADE FINANCIAL CORPORATION 1.00%
FIRST REPUBLIC BANK/CA 1.00%
SCHWAB (CHARLES) CORP 1.00%
HONEYWELL INTERNATIONAL INC 0.99%
SERVICENOW INC 0.99%
ACCENTURE PLC-CL A 0.98%
MSCI INC 0.98%
ON SEMICONDUCTOR CORP 0.98%
VERTEX PHARMACEUTICALS INC 0.98%
TALEND SA - ADR 0.97%
PENUMBRA INC 0.90%
HILTON WORLDWIDE HOLDINGS IN 0.88%
ROCKWELL AUTOMATION INC 0.88%
AMERICAN TOWER CORP 0.86%
REALPAGE INC 0.85%
ADIDAS AG 0.84%
CHALLENGER LTD 0.76%
DENTSPLY SIRONA INC 0.76%
PRAXAIR INC 0.75%
JAZZ PHARMACEUTICALS PLC 0.63%
CELLNEX TELECOM SAU 0.62%
SUMMIT MATERIALS INC -CL A 0.55%
MEDICINES COMPANY 0.54%
BIOGEN INC 0.51%
VAIL RESORTS INC 0.51%
STANLEY BLACK & DECKER INC 0.50%
AGILENT TECHNOLOGIES INC 0.48%
BLUEBIRD BIO INC 0.47%
CLOVIS ONCOLOGY INC 0.43%
BIO-RAD LABORATORIES-A 0.40%
BROOKS AUTOMATION INC 0.27%
SELECT ENERGY SVCS-A-1 0.12%
OPORTUN FIN CORP P/P SERIES H PFD 0.10%
OPORTUN FIN CORP P/P 0.03%
OPORTUN FIN F-1 PFD CV P/P 0.03%
OPORTUN FIN G-1 PFD CV P/P 0.03%
GLOBAL FASHION GRP P/P 0.02%
OPORTUN FIN D-1 PFD CV P/P 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
AUD/USD 04/18/2018 SSBT 0.00%
AUSTRALIAN DOLLAR ACCOUNT 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
EUR/USD 06/20/2018 SSBT 0.00%
GBP/USD 06/20/2018 BANKAM 0.00%
HC BRILLANT SERVICES GMBH P/P 0.00%
KOREAN WON CALL ACCOUNT 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 0.00%
OPORTUN FIN A-1 PFD CV P/P 0.00%
OPORTUN FIN B-1 PFD CV P/P 0.00%
OPORTUN FIN C-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%
POUND STERLING CALL ACCOUNT 0.00%
S&P500 EMINI FUT JUN18 ESM8 0.00%
UNEXT.COM LLC CORP (PRIVATE) P/P 0.00%
EUR/USD 06/20/2018 JPMCB -0.01%
EUR/USD 06/20/2018 UBS -0.01%

Prior top 10 holdings

Top 10 holdings as of 05/31/18
Microsoft Corp
Alphabet
Novozymes A/S - B Shares
Visa
Amazon.Com
Unilever Nv
Norfolk Southern Corp
Blackrock
Becton Dickinson And
Home Depot The
Holdings represent 34.41% of portfolio
Top 10 holdings as of 04/30/18
Microsoft Corp
Alphabet
Novozymes A/S - B Shares
Visa
Amazon.Com
Unilever Nv
Becton Dickinson And
Apple
Blackrock
Norfolk Southern Corp
Holdings represent 34.62% of portfolio
Top 10 holdings as of 03/31/18
Microsoft Corp
Novozymes A/S - B Shares
Alphabet
Visa
Amazon.Com
Unilever Nv
Blackrock
Apple
Becton Dickinson And
Norfolk Southern Corp
Holdings represent 34.15% of portfolio
Top 10 holdings as of 02/28/18
Alphabet
Amazon.Com
Microsoft Corp
Visa
Apple
Facebook
Becton Dickinson And
Norfolk Southern Corp
Home Depot The
Bank Of America Corp
Holdings represent 37.02% of portfolio

Portfolio composition as of 05/31/18

Common stock 98.58%
Cash and net other assets 1.24%
Convertible preferred stock 0.18%

Equity statistics as of 05/31/18

Median market cap $15.12B
Weighted average market cap $177.60B
Price to book 4.57
Price to earnings 21.86

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 a variety of 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 05/31/18

Information technology 31.34%
Financials 13.29%
Health care 13.01%
Consumer discretionary 12.03%
Industrials 8.99%
Materials 8.77%
Consumer staples 7.72%
Utilities 2.24%
Cash and net other assets 1.24%
 
Other
1.37%
Real estate 0.79%
Telecommunication services 0.58%

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 1.00% 1.75% 1.75% 1.50% 1.25% 0.61% 0.75%
What you pay 1.00% 1.75% 1.75% 1.50% 1.25% 0.61% 0.75%

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 3000 Growth Index is an unmanaged index of those companies in the broad-market Russell 3000 Index chosen for their growth orientation. You cannot invest directly in an index.

Consider these risks before investing: Stock values 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. 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.