Research Fund (Class A)  (PNRAX)

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 $33.88
0.09% | $0.03
$36.59
09/20/18
$32.16
02/08/18
Historical fund price

Fund facts as of 10/31/18

Total net assets
$303.63M
Turnover (fiscal year end)
97%
Dividend frequency
Annually
Number of holdings
144
Fiscal year-end
July
CUSIP / Fund code
746802883 / 0049
Inception date
10/02/95
Category
Blend
Open to new investors
Ticker
PNRAX

Management team

Chief Investment Officer, Equities
Co-Director of Equity Research
Co-Director of Equity Research
Portfolio Manager, Analyst
Portfolio Manager, Analyst
Portfolio Manager, Analyst


Manager commentary | Q3 2018

Sector strengths drive performance in global strategy

Portfolio Manager Jacquelyne Cavanaugh highlights promising sector themes in today's equity market.



Performance

  • Total return (%) as of 09/30/18

  • Annual performance as of 09/30/18

Annualized Total return (%) as of 09/30/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 16.11% 16.55% 13.32% 11.88%
After sales charge 9.43% 14.27% 11.99% 11.22%
S&P 500 Index 17.91% 17.31% 13.95% 11.97%

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, N, 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). 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, 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 10/31/18 -7.11 % -12.45 %
YTD as of 11/16/18 2.39 % -3.50 %

Risk-adjusted performance as of 10/31/18

Alpha (3 yrs.) -0.71
Sharpe ratio (3 yrs.) 1.05
Treynor ratio (3 yrs.) 9.98
Information ratio (3 yrs.) -0.42

Volatility as of 10/31/18

Standard deviation (3 yrs.) 9.37%
Beta 0.99
R-squared 0.96

Capture ratio as of 10/31/18

Up-market (3 yrs.) 97.91
Down-market (3 yrs.) 105.16

Lipper rankings as of 10/31/18

Time period Rank/Funds in category Percentile ranking
1 yr. 439/726 61%
3 yrs. 204/627 33%
5 yrs. 144/568 26%
10 yrs. 88/444 20%
Lipper category: Large-Cap Core Funds

Morningstar Ratings as of 10/31/18

Time period Funds in category Morningstar Rating
Overall 1218
3 yrs. 1218
5 yrs. 1084
10 yrs. 817
Morningstar category: Large Blend

Distributions

Record/Ex dividend date 12/06/17
Payable date 12/08/17
Income --
Extra income --
Short-term cap. gain --
Long-term cap. gain $0.52

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

Top 10 holdings as of 10/31/18

Microsoft Corp 3.85%
Apple 3.44%
Alphabet 3.17%
Amazon.Com 2.86%
Bank Of America Corp 2.12%
Visa 1.94%
Coca-Cola The 1.94%
Citigroup 1.84%
Facebook 1.75%
Bp 1.67%
Top 10 holdings, percent of portfolio 24.58%

Full portfolio holdings as of 09/30/18

MICROSOFT CORP 3.81%
AMAZON.COM INC 3.31%
APPLE INC 3.28%
ALPHABET INC-CL A 3.24%
BANK OF AMERICA CORP 2.24%
VISA INC-CLASS A SHARES 1.96%
CITIGROUP INC 1.80%
FACEBOOK INC-A 1.75%
HOME DEPOT INC 1.73%
COCA-COLA CO/THE 1.65%
BP PLC 1.63%
HONEYWELL INTERNATIONAL INC 1.58%
QUALCOMM INC 1.55%
ACTIVISION BLIZZARD INC 1.43%
JPMORGAN CHASE & CO 1.36%
DANAHER CORP 1.30%
KKR & CO INC -A 1.25%
BECTON DICKINSON AND CO 1.22%
EMERSON ELECTRIC CO 1.21%
DXC TECHNOLOGY CO 1.17%
GOLDMAN SACHS GROUP INC 1.16%
DOWDUPONT INC 1.12%
PROCTER & GAMBLE CO/THE 1.12%
SALESFORCE.COM INC 1.09%
MERCK & CO. INC. 1.08%
ADOBE SYSTEMS INC 1.06%
PRUDENTIAL PLC 1.03%
CIGNA CORP 1.00%
EXXON MOBIL CORP 0.97%
GILEAD SCIENCES INC 0.97%
CENOVUS ENERGY INC 0.96%
UNITEDHEALTH GROUP INC 0.95%
BOEING CO/THE 0.92%
NORFOLK SOUTHERN CORP 0.91%
KINDER MORGAN INC 0.90%
GENERAL MOTORS CO 0.88%
NXP SEMICONDUCTORS NV 0.88%
FORTIVE CORP 0.86%
AT&T INC 0.85%
ROPER TECHNOLOGIES INC 0.83%
ASSURED GUARANTY LTD 0.82%
BRISTOL-MYERS SQUIBB CO 0.80%
JOHNSON & JOHNSON 0.80%
E*TRADE FINANCIAL CORPORATION 0.79%
INTEL CORP 0.78%
AMERICAN ELECTRIC POWER 0.74%
TEXTRON INC 0.73%
WALMART INC 0.73%
BOOKING HOLDINGS INC 0.70%
BOSTON SCIENTIFIC CORP 0.70%
NRG ENERGY INC 0.70%
BLACKROCK INC 0.69%
PFIZER INC 0.69%
RAYTHEON COMPANY 0.69%
NCSOFT CORP 0.68%
SHERWIN-WILLIAMS CO/THE 0.66%
WASTE CONNECTIONS INC 0.66%
CHARTER COMMUNICATIONS INC-A 0.64%
TJX COMPANIES INC 0.62%
UNION PACIFIC CORP 0.62%
TWENTY-FIRST CENTURY FOX-A 0.61%
HILTON WORLDWIDE HOLDINGS IN 0.60%
AMGEN INC 0.59%
EXELON CORP 0.59%
RAYMOND JAMES FINANCIAL INC 0.59%
COMCAST CORP-CLASS A 0.58%
NIKE INC -CL B 0.58%
VERIZON COMMUNICATIONS INC 0.58%
MCCORMICK & CO-NON VTG SHRS 0.56%
COSTCO WHOLESALE CORP 0.55%
PEPSICO INC 0.55%
KELLOGG CO 0.54%
JAZZ PHARMACEUTICALS PLC 0.52%
NETEASE INC-ADR 0.52%
NEXTERA ENERGY INC 0.52%
VERTEX PHARMACEUTICALS INC 0.52%
ON SEMICONDUCTOR CORP 0.49%
AMERICAN INTERNATIONAL GROUP 0.48%
BAXTER INTERNATIONAL INC 0.48%
CHUBB LTD 0.48%
INTUITIVE SURGICAL INC 0.48%
YUM CHINA HOLDINGS INC 0.48%
INTERCONTINENTAL EXCHANGE IN 0.47%
COOPER COS INC/THE 0.46%
FMC CORP 0.45%
WALGREENS BOOTS ALLIANCE INC 0.45%
ALEXION PHARMACEUTICALS INC 0.44%
CHIPOTLE MEXICAN GRILL INC 0.44%
CLOROX COMPANY 0.44%
CONOCOPHILLIPS 0.44%
FIRST DATA CORP- CLASS A 0.43%
BIOGEN INC 0.42%
SBA COMMUNICATIONS CORP 0.41%
GAMING AND LEISURE PROPERTIE 0.40%
WYNN RESORTS LTD 0.40%
EVERBRIDGE INC 0.39%
SEVEN GENERATIONS ENERGY - A 0.39%
YELLOW CAKE PLC 0.39%
FIDELITY NATIONAL INFO SERV 0.38%
METTLER-TOLEDO INTERNATIONAL 0.38%
TENCENT HOLDINGS LTD 0.37%
CAIRN ENERGY PLC 0.34%
LIVE NATION ENTERTAINMENT IN 0.34%
BALL CORP 0.33%
ANADARKO PETROLEUM CORP 0.32%
DOMINION ENERGY INC 0.30%
GODADDY INC - CLASS A 0.30%
DEERE & CO 0.29%
ADVANCE AUTO PARTS 0.28%
DUKE ENERGY CORP 0.27%
NOBLE ENERGY INC 0.26%
O'REILLY AUTOMOTIVE INC 0.25%
BURLINGTON STORES INC 0.24%
SUMMIT MATERIALS INC -CL A 0.24%
ELI LILLY & CO 0.23%
INVESCO LTD 0.22%
MGM RESORTS INTERNATIONAL 0.22%
APTIV PLC 0.21%
EDISON INTERNATIONAL 0.20%
ALCOA CORP 0.18%
PPG INDUSTRIES INC 0.17%
HEINEKEN NV 0.16%
INVESTMENT TECHNOLOGY GROUP 0.16%
RESTAURANT BRANDS INTERN 0.16%
ALIBABA GROUP HOLDING-SP ADR 0.13%
AMEREN CORPORATION 0.13%
P G & E CORP 0.13%
APOLLO GLOBAL MANAGEMENT - A 0.11%
W.R. GRACE & CO 0.10%
BJ'S WHOLESALE CLUB HOLDINGS 0.09%
ECOLAB INC 0.09%
JOHN BEAN TECHNOLOGIES CORP 0.07%
ARCHER-DANIELS-MIDLAND CO 0.05%
OPORTUN FIN CORP P/P SERIES H PFD 0.05%
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%
OPORTUN FIN D-1 PFD CV P/P 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
CAD/USD 10/17/2018 BANKAM 0.00%
CAD/USD 10/17/2018 BCAP-FX 0.00%
CAD/USD 10/17/2018 GSFX 0.00%
CAD/USD 10/17/2018 JPMCB 0.00%
CAD/USD 10/17/2018 SSBT 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
EUR/USD 12/19/2018 BANKAM 0.00%
GBP/USD 12/19/2018 BCAP-FX 0.00%
GBP/USD 12/19/2018 GSFX 0.00%
ILS/USD 10/17/2018 SSBT 0.00%
KOREAN WON CALL ACCOUNT 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%
RU20INTR P USL1M R 12/15/20 GS 0.00%
S&P500 EMINI FUT DEC18 ESZ8 0.00%
THE EURO EUR CALL ACCOUNT 0.00%
GBP/USD 12/19/2018 BANKAM -0.01%

Prior top 10 holdings

Top 10 holdings as of 10/31/18
Microsoft Corp
Apple
Alphabet
Amazon.Com
Bank Of America Corp
Visa
Coca-Cola The
Citigroup
Facebook
Bp
Holdings represent 24.58% of portfolio
Top 10 holdings as of 09/30/18
Microsoft Corp
Apple
Amazon.Com
Alphabet
Bank Of America Corp
Visa
Citigroup
Facebook
Qualcomm
Home Depot
Holdings represent 24.59% of portfolio
Top 10 holdings as of 08/31/18
Apple
Microsoft Corp
Amazon.Com
Alphabet
Bank Of America Corp
Visa
Facebook
Citigroup
Home Depot The
Qualcomm
Holdings represent 24.89% of portfolio
Top 10 holdings as of 07/31/18
Alphabet
Microsoft Corp
Amazon
Apple
Bank of America
Facebook
Citigroup
Visa
Home Depot
Bp
Holdings represent 23.81% of portfolio

Portfolio composition as of 10/31/18

Common stock 98.86%
Cash and net other assets 1.00%
Convertible preferred stock 0.14%

Equity statistics as of 10/31/18

Median market cap $37.20B
Weighted average market cap $212.96B
Price to book 2.89
Price to earnings 15.64

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. Stock prices may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer or industry. 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 10/31/18

Information technology 17.39%
Health care 14.03%
Financials 13.89%
Communication services 11.30%
Consumer discretionary 10.72%
Industrials 9.58%
Consumer staples 7.99%
Energy 6.00%
Utilities 3.97%
 
Other
5.13%
Materials 3.26%
Cash and net other assets 1.00%
Real estate 0.87%

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 1.15% 1.90% 1.90% 1.65% 1.40% 0.72% 0.90%
What you pay 1.15% 1.90% 1.90% 1.65% 1.40% 0.72% 0.90%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R Class R6 Class Y
$0-$49,999 5.75% 0.00% 0.00% 3.50% -- -- --
$50,000-$99,999 4.50% 0.00% 0.00% 2.50% -- -- --
$100,000-$249,999 3.50% -- 0.00% 1.50% -- -- --
$250,000-$499,999 2.50% -- 0.00% 1.00% -- -- --
$500,000-$999,999 2.00% -- 0.00% 1.00% -- -- --
$1M-$4M 0.00% -- -- -- -- -- --
$4M-$50M 0.00% -- -- -- -- -- --
$50M+ 0.00% -- -- -- -- -- --

CDSC

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

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. Stock prices may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer or industry. 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.