Active Equities

Research Fund (Class Y)  (PURYX)

Seeking to capitalize on the expertise of Putnam's research organization

Research Fund received an  Overall Morningstar Rating  of  

Highlights

Objective

The fund seeks capital appreciation.

Strategy and process

  • A best-ideas fund The fund invests in stocks that represent the highest conviction ideas from Putnam's Equity Research team.
  • Sector neutral The fund is managed with a sector-neutral approach, with the flexibility to own both growth and value stocks.
  • Differentiated research The portfolio managers select stocks in a collaborative effort that emphasizes non-consensus critical thinking.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $48.51
0.87% | $0.42
$49.04
09/03/21
$35.90
10/30/20
(Optional)

Fund facts as of 09/30/21

Total net assets
$476.43M
Turnover (fiscal year end)
54%
Dividend frequency
Annually
Number of holdings
143
Fiscal year-end
July
CUSIP / Fund code
746802487 / 1849
Inception date
04/04/00
Category
Blend
Open to new investors
Ticker
PURYX

Management team

Director of Equity Research
Portfolio Manager, Analyst
Assistant Director of Equity Research
Portfolio Manager, Analyst
Portfolio Manager, Analyst

Manager commentary

Kate Lakin, Director of Equity Research, explains the team’s mosaic investment process and stock selection.

Literature


Emerging markets leading the way in innovation
Innovation is driving exciting growth across emerging market countries.
Value investing for all seasons
We believe the durability of this recent value rally is being underestimated. Based on our analysis, the case for value stocks, particularly in international markets, remains compelling
China property problem — Bigger than Mt. Evergrande
Recent default warnings from one of China's leading real estate development companies signaled a bigger property problem in the sector.

Performance

  • Total return (%) as of 09/30/21

  • Annual performance as of 09/30/21

Annualized Total return (%) as of 09/30/21

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 28.67% 16.77% 17.52% 16.95%
After sales charge N/A N/A N/A N/A
S&P 500 Index 30.00%15.99%16.90%16.63%

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. The "before sales charge" performance does not reflect the current maximum sales charges, which we explain below. If performance did reflect the charges, it would be lower. The "after sales charge" performance (or returns at public offering price) varies by share class and fund. For class A and class M shares, the current maximum initial sales charges are 5.75% and 3.50% for equity funds and 4.00% and 3.25% for income funds, respectively (with these exceptions: 2.25% for class A of Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return Fund). Class B share performance reflects the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declines 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; for these funds, the CDSC is 1% in the first year, declines to 0.5% in the second year, and is eliminated thereafter). Class C share performance reflects 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 by adjusting for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (note, for two funds — Putnam Tax-Free High Yield Fund and Putnam Strategic Intermediate Municipal Fund performance prior to inception is based on the historical performance of class B shares). Performance for class A, C, R6, and Y shares of Putnam Mortgage Opportunities Fund before their inception is derived from the historical performance of class I shares, which has been adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares. The "after sales charge" performance (at public offering price) for class N shares reflects the current maximum initial sales charge of 1.50%. Class R, R3, R4, R5, and R6 shares, which are 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 R3 and R4 shares prior to their inception is derived from the historical performance of class Y shares by adjusting for the higher operating expenses for such shares. Performance for class R5 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower expenses; had it been adjusted, performance would be higher (with the exception of the RetirementReady Maturity, 2025, 2030, 2035, and 2040 Funds, for which performance is derived from the historical performance of class R6 shares and has been adjusted for the higher operating expenses for such shares; and the RetirementReady 2045, 2050, 2055, and 2060 Funds, for which performance is derived from the historical performance of class R6 shares and has not been adjusted for the lower expenses; had it been adjusted, performance would be higher). Performance for class R6 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would be 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. Had these limits not been in place, performance would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 09/30/21 -4.89% -
YTD as of 10/14/21 18.71% -

Risk-adjusted performance as of 09/30/21

Alpha (3 yrs.) 1.00
Sharpe ratio (3 yrs.) 0.86
Treynor ratio (3 yrs.) 15.93
Information ratio (3 yrs.) 0.50

Volatility as of 09/30/21

Standard deviation (3 yrs.) 18.34%
Beta 0.99
R-squared 0.99

Capture ratio as of 09/30/21

Up-market (3 yrs.) 101.18
Down-market (3 yrs.) 98.46

Lipper rankings as of 09/30/21

Time period Rank/Funds in category Percentile ranking
1 yr. 326/642 51%
3 yrs. 134/576 24%
5 yrs. 90/519 18%
10 yrs. 49/415 12%
Lipper category: Large-Cap Core Funds

Morningstar Ratings as of 09/30/21

Time period Funds in category Morningstar Rating
Overall 1257
3 yrs. 1257
5 yrs. 1102
10 yrs. 812
Morningstar category: Large Blend

Distributions

Record/Ex dividend date 12/04/20
Payable date 12/08/20
Income $0.313
Extra income --
Short-term cap. gain $0.163
Long-term cap. gain $0.409

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.


Holdings

Microsoft Corp 6.25%
Alphabet 5.36%
Amazon.Com 4.85%
Apple 3.92%
Facebook 2.97%
Citigroup 2.17%
Nvidia Corp 2.03%
Home Depot 1.89%
Paypal Holdings 1.88%
Procter Gamble 1.66%
Top 10 holdings, percent of portfolio 32.98%



Portfolio composition as of 09/30/21

Common stock 97.64%
Cash and net other assets 2.36%

Equity statistics as of 09/30/21

Median market cap $60.19B
Weighted average market cap $568.16B
Price to book 3.92
Price to earnings 19.72

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. 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. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund's other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.

Top industry sectors as of 09/30/21

Information technology 24.58%
Consumer discretionary 14.55%
Health care 13.17%
Financials 11.04%
Communication services 10.18%
Industrials 8.67%
Consumer staples 5.57%
Utilities 3.06%
Energy 2.95%
 
Other
6.23%
Materials 2.71%
Cash and net other assets 2.36%
Real estate 1.16%

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 R Class R6 Class Y
Total expense ratio 1.08% 1.83% 1.83% 1.33% 0.69% 0.83%
What you pay 1.08% 1.83% 1.83% 1.33% 0.69% 0.83%

Sales charge

Investment Breakpoint Class A Class B Class C Class R Class R6 Class Y
$0-$49,999 5.75% 0.00% 0.00% -- -- --
$50,000-$99,999 4.50% 0.00% 0.00% -- -- --
$100,000-$249,999 3.50% -- 0.00% -- -- --
$250,000-$499,999 2.50% -- 0.00% -- -- --
$500,000-$999,999 2.00% -- 0.00% -- -- --
$1M-$4M 0.00% -- -- -- -- --
$4M-$50M 0.00% -- -- -- -- --
$50M+ 0.00% -- -- -- -- --

CDSC

  Class A (sales for $1,000,000+) Class B Class C 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% -- -- --

The S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index.

Consider these risks before investing: Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. 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. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund's other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.