Always Inspired. Always Active.

Small Cap Value Fund (Class A)  (PSLAX)

Pursuing capital appreciation through undervalued 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.
  • Active value strategy: The portfolio manager seeks attractively valued companies with improving fundamentals or catalysts that may unlock value.
  • Rigorous research: The portfolio manager and a team of senior research analysts offer the collaboration of a boutique with the extensive resources of a large, global firm.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $10.25
-1.25% | $-0.13
$14.35
08/29/18
$8.60
12/24/18
Historical fund price

Fund facts as of 05/31/19

Total net assets
$229.29M
Turnover (fiscal year end)
534%
Dividend frequency
Annually
Number of holdings
126
Fiscal year-end
February
CUSIP / Fund code
746802610 / 0053
Inception date
04/13/99
Category
Value
Open to new investors
Ticker
PSLAX

Management team

Portfolio Manager



Performance

  • Total return (%) as of 03/31/19

  • Annual performance as of 03/31/19

Annualized Total return (%) as of 03/31/19

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge -5.29% 7.93% 3.74% 14.36%
After sales charge -10.74% 5.82% 2.51% 13.69%
Russell 2000 Value Index 0.17%10.86%5.59%14.12%

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 05/31/19 -8.90% -14.14%
YTD as of 06/24/19 12.76% 6.28%

Risk-adjusted performance as of 05/31/19

Alpha (3 yrs.) -2.53
Sharpe ratio (3 yrs.) 0.23
Treynor ratio (3 yrs.) 3.91
Information ratio (3 yrs.) -0.59

Volatility as of 05/31/19

Standard deviation (3 yrs.) 17.46%
Beta 1.01
R-squared 0.94

Capture ratio as of 05/31/19

Up-market (3 yrs.) 86.16
Down-market (3 yrs.) 93.97

Lipper rankings as of 05/31/19

Time period Rank/Funds in category Percentile ranking
1 yr. 122/276 45%
3 yrs. 117/244 48%
5 yrs. 96/215 45%
10 yrs. 60/142 42%
Lipper category: Small-Cap Value Funds

Morningstar Ratings as of 05/31/19

Time period Funds in category Morningstar Rating
Overall 388
3 yrs. 388
5 yrs. 343
10 yrs. 233
Morningstar category: Small Value

Distributions

Record/Ex dividend date 12/06/18
Payable date 12/10/18
Income $0.217
Extra income --
Short-term cap. gain $1.465
Long-term cap. gain $0.268

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 05/31/19

Cedar Fair Lp 1.55%
Premier 1.52%
Vermilion Energy 1.44%
Scorpio Tankers 1.40%
William Lyon Homes 1.40%
Mesa Air Group 1.32%
Sp Plus Corp 1.25%
Hancock Whitney Corp 1.23%
Caci International 1.22%
Allete 1.21%
Top 10 holdings, percent of portfolio 13.54%

Full portfolio holdings as of 03/31/19

VERMILION ENERGY INC 1.84%
ENCANA CORP 1.52%
CEDAR FAIR LP 1.51%
TRONOX HOLDINGS PLC-CLASS A 1.39%
PREMIER INC-CLASS A 1.35%
MADISON SQUARE GARDEN CO- A 1.30%
AMERICAN EQUITY INVT LIFE HL 1.29%
SP PLUS CORP 1.29%
SCORPIO TANKERS INC 1.23%
SYNNEX CORP 1.23%
HANCOCK WHITNEY CORP 1.22%
IBERIABANK CORP 1.20%
APOGEE ENTERPRISES INC 1.16%
CHEMICAL FINANCIAL CORP 1.16%
BIG LOTS INC 1.15%
DAVE & BUSTER'S ENTERTAINMEN 1.15%
DONNELLEY FINANCIAL SOLUTION 1.14%
FEDERAL SIGNAL CORP 1.14%
WESCO INTERNATIONAL INC 1.13%
PERFICIENT INC 1.10%
ELECTRONICS FOR IMAGING 1.09%
HERMAN MILLER INC 1.09%
PLANTRONICS INC 1.08%
STERLING BANCORP/DE 1.08%
WILLIAM LYON HOMES-CL A 1.05%
WILLSCOT CORP 1.05%
CACI INTERNATIONAL INC -CL A 1.04%
ALLETE INC 1.02%
JABIL INC 1.01%
J2 GLOBAL INC 1.00%
MESA AIR GROUP INC 1.00%
QTS REALTY TRUST INC-CL A 1.00%
FIRST HORIZON NATIONAL CORP 0.99%
SYNOVUS FINANCIAL CORP 0.99%
BLOOMIN' BRANDS INC 0.98%
GRANITE POINT MORTGAGE TRUST 0.98%
MARINEMAX INC 0.96%
PORTLAND GENERAL ELECTRIC CO 0.96%
PERSPECTA INC 0.94%
LUMENTUM HOLDINGS INC 0.91%
HERITAGE INSURANCE HOLDINGS 0.89%
UNIVEST FINANCIAL CORP 0.87%
WESTERN ALLIANCE BANCORP 0.87%
CHEESECAKE FACTORY INC/THE 0.86%
COOPER TIRE & RUBBER 0.86%
II-VI INC 0.86%
MAGELLAN HEALTH INC 0.86%
IMAX CORP 0.85%
LADDER CAPITAL CORP-REIT 0.85%
SAIA INC 0.84%
WINTRUST FINANCIAL CORP 0.84%
ANDEAVOR LOGISTICS LP 0.83%
GAMING AND LEISURE PROPERTIE 0.81%
MYR GROUP INC/DELAWARE 0.81%
PROPETRO HOLDING CORP 0.81%
VERSO CORP - A 0.81%
ZAYO GROUP HOLDINGS INC 0.81%
FIRST MERCHANTS CORP 0.80%
PHOTRONICS INC 0.80%
JETBLUE AIRWAYS CORP 0.79%
DMC GLOBAL INC 0.78%
PAPA JOHN S INTL 0.78%
REXNORD CORP 0.78%
QUAD GRAPHICS INC 0.76%
RANGE RESOURCES CORP 0.76%
CLARUS CORP 0.75%
CLEAN HARBORS INC 0.75%
ARES CAPITAL CORP 0.73%
CARROLS RESTAURANT GROUP INC 0.73%
EL PASO ELECTRIC CO 0.73%
KNOWLES CORP 0.73%
DINE BRANDS GLOBAL INC 0.72%
INDEPENDENT BANK GROUP INC 0.71%
COMMSCOPE HOLDING CO INC 0.70%
COLUMBIA PROPERTY TRUST INC 0.69%
EAGLE MATERIALS INC 0.69%
SHENANDOAH TELECOMMUNICATION 0.69%
OLIN CORP 0.67%
AMERIS BANCORP 0.66%
MATTHEWS INTL CORP-CLASS A 0.66%
MAGNOLIA OIL & GAS CORP 0.64%
LIONS GATE ENTERTAINMENT-A 0.62%
PENNANTPARK INVESTMENT CORP 0.61%
SPORTSMAN'S WAREHOUSE HOLDIN 0.61%
BAIN CAPITAL SPECIALTY FINAN 0.60%
CONNECTONE BANCORP INC 0.59%
INVESTORS BANCORP INC 0.59%
TRIPLEPOINT VENTURE GROWTH B 0.59%
VECTRUS INC 0.59%
CARS.COM INC 0.58%
COHU INC 0.58%
CRAFT BREW ALLIANCE INC 0.55%
BROOKDALE SENIOR LIVING INC 0.54%
TRIBUNE PUBLISHING CO 0.53%
TPG SPECIALTY LENDING INC 0.51%
ALLEGHENY TECHNOLOGIES INC 0.50%
QUANEX BUILDING PRODUCTS 0.49%
UNION BANKSHARES CORP 0.49%
BRUNSWICK CORP 0.48%
COLUMBUS MCKINNON CORP/NY 0.48%
OMNOVA SOLUTIONS INC 0.48%
ALAMO GROUP INC 0.45%
TIVO CORP 0.45%
MASTERCRAFT BOAT HOLDINGS IN 0.44%
SELECT ENERGY SERVICES INC-A 0.44%
ACADIA HEALTHCARE CO INC 0.42%
OCEANFIRST FINANCIAL CORP 0.41%
AMERICAN EAGLE OUTFITTERS 0.40%
MANITEX INTERNATIONAL INC 0.40%
RLJ LODGING TRUST 0.39%
NEWMARK GROUP INC-CLASS A 0.38%
SELECT MEDICAL HOLDINGS CORP 0.37%
CECO ENVIRONMENTAL CORP 0.36%
FIRST DEFIANCE FINL CORP 0.36%
BERRY GLOBAL GROUP INC 0.35%
ADVANSIX INC 0.33%
STERLING CONSTRUCTION CO 0.33%
NVENT ELECTRIC PLC 0.32%
CONSTRUCTION PARTNERS INC-A 0.31%
CAMDEN NATIONAL CORP 0.30%
WILLDAN GROUP INC 0.30%
FRANKLIN FINANCIAL NETWORK 0.28%
POWELL INDUSTRIES INC 0.28%
BEL FUSE INC-CL B 0.23%
ORION ENGINEERED CARBONS SA 0.23%
SCHNEIDER NATIONAL INC-CL B 0.23%
ATS AUTOMATION TOOLING SYS 0.22%
SEVEN GENERATIONS ENERGY - A 0.19%
COASTAL FINANCIAL CORP/WA 0.18%
VOXX INTERNATIONAL CORP 0.18%
FGL HOLDINGS 0.15%
TESSCO TECHNOLOGIES INC 0.08%
CITI TRENDS INC 0.06%
CHARAH SOLUTIONS INC 0.03%
INFORMATION SERVICES GROUP 0.01%
BANCTEC INC-144A CONTINGENT VALUE RIGHTS 0.00%
FERROGLOBE REPRESENTATION & 0.00%
CANADIAN DOLLAR ACCOUNT -0.16%

Prior top 10 holdings

Top 10 holdings as of 05/31/19
Cedar Fair Lp
Premier
Vermilion Energy
Scorpio Tankers
William Lyon Homes
Mesa Air Group
Sp Plus Corp
Hancock Whitney Corp
Caci International
Allete
Holdings represent 13.54% of portfolio
Top 10 holdings as of 04/30/19
Vermilion Energy
Cedar Fair Lp
Scorpio Tankers
Tronox Holdings
Synnex Corp
Hancock Whitney Corp
Iberiabank Corp
Sp Plus Corp
Premier
Perficient
Holdings represent 13.56% of portfolio
Top 10 holdings as of 03/31/19
Vermilion Energy
Encana Corp
Cedar Fair Lp
Tronox Holdings
Premier
Madison Square Garden The
American Equity Investment Life Holding
Sp Plus Corp
Scorpio Tankers
Synnex Corp
Holdings represent 14.05% of portfolio
Top 10 holdings as of 02/28/19
Vermilion Energy
Cedar Fair Lp
Encana Corp
American Equity Investment Life Holding
Iberiabank Corp
Sp Plus Corp
Chemical Financial Corp
Dave Buster'S Entertainment
Madison Square Garden The
Hancock Whitney Corp
Holdings represent 13.73% of portfolio

Portfolio composition as of 05/31/19

Common stock 99.31%
Cash and net other assets 0.69%

Equity statistics as of 05/31/19

Median market cap $1.40B
Weighted average market cap $2.16B
Price to book 1.38
Price to earnings 11.19

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. Value stocks may fail to rebound, and the market may not favor value-style investing. 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. These risks are generally greater for small and midsize companies. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. You can lose money by investing in the fund.

Top industry sectors as of 05/31/19

Financials 26.34%
Industrials 16.71%
Consumer discretionary 12.72%
Information technology 11.53%
Energy 7.75%
Materials 5.71%
Real estate 5.68%
Communication services 5.32%
Health care 3.83%
 
Other
4.41%
Utilities 3.18%
Cash and net other assets 0.69%
Consumer staples 0.54%

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 R5 Class R6 Class Y
Total expense ratio 1.48% 2.23% 2.23% 1.98% 1.73% 1.16% 1.06% 1.23%
What you pay 1.48% 2.23% 2.23% 1.98% 1.73% 1.16% 1.06% 1.23%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R Class R5 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 R5 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 Russell 2000 Value Index is an unmanaged index of those companies in the small-cap Russell 2000 Index chosen for their value 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. Value stocks may fail to rebound, and the market may not favor value-style investing. 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. These risks are generally greater for small and midsize companies. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. You can lose money by investing in the fund.