Small Cap Value Fund  (PSLAX)

Pursuing capital appreciation through undervalued small companies

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 $13.39
0.30% | $0.04
$18.61
12/04/17
$12.87
02/08/18
Historical fund price

Fund facts as of 01/31/18

Total net assets
$385.02M
Turnover (fiscal year end)
63%
Dividend frequency
Annually
Number of holdings
251
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 12/31/17

  • Annual performance as of 12/31/17

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 7.91% 9.50% 13.39% 7.49%
After sales charge 1.70% 7.36% 12.06% 6.86%
Russell 2000 Value Index 7.84% 9.55% 13.01% 8.17%

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. To obtain the most recent month-end performance, visit putnam.com. 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 Absolute Return 500 Fund and 700 Fund, and 4.00% and 3.25% for income funds (1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 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 Absolute Return 100 Fund and 300 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, 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). 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 01/31/18 0.89 % -4.91 %
YTD as of 02/16/18 -1.11 % -6.79 %

Risk-adjusted performance as of 01/31/18

Alpha (3 yrs.) 0.90
Sharpe ratio (3 yrs.) 0.87
Treynor ratio (3 yrs.) 12.18
Information ratio (3 yrs.) -0.05

Volatility as of 01/31/18

Standard deviation (3 yrs.) 12.70%
Beta 0.90
R-squared 0.94

Capture ratio as of 01/31/18

Up-market (3 yrs.) 87.54
Down-market (3 yrs.) 78.18

Lipper rankings as of 01/31/18

Small-Cap Value Funds Percentile ranking Rank/Funds in category
1 yr. 70% 191/273
3 yrs. 39% 93/240
5 yrs. 39% 80/207
10 yrs. 70% 98/139

Morningstar ratings as of 01/31/18

Small Value Rating Funds in category
Overall (345)
3 yrs. (345)
5 yrs. (298)
10 yrs. (205)

Distributions

Record/Ex dividend date 12/06/17
Payable date 12/08/17
Income $0.081
Extra income --
Short-term cap. gain $1.202
Long-term cap. gain $3.882

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 01/31/18

Dave Buster'S Entertainment 1.76%
Bemis 1.42%
Minerals Technologies 1.40%
Bloomin' Brands 1.35%
Hain Celestial Group The 1.23%
Walker Dunlop 1.01%
Assured Guaranty 0.95%
Summit Materials 0.95%
Hersha Hospitality Trust 0.91%
Caesars Entertainment Corp 0.90%
Top 10 holdings, percent of portfolio 11.88%

Full portfolio holdings as of 12/31/17

BEMIS COMPANY 1.71%
HAIN CELESTIAL GROUP INC 1.69%
APOGEE ENTERPRISES INC 1.52%
MINERALS TECHNOLOGIES INC 1.51%
PENN VIRGINIA CORP 1.46%
BLOOMIN' BRANDS INC 1.45%
HUB GROUP INC-CL A 1.28%
BRINK'S CO/THE 1.10%
MASTEC INC 1.06%
CAESARS ENTERTAINMENT CORP 1.05%
AZZ INC 1.02%
CELESTICA INC 0.99%
KNOWLES CORP 0.99%
RADIAN GROUP INC 0.99%
CRESCENT POINT ENERGY CORP 0.98%
KNOLL INC 0.97%
LINN ENERGY INC 0.97%
SILICON MOTION TECHNOL-ADR 0.97%
LEGG MASON INC 0.91%
MAJOR DRILLING GROUP INTL 0.90%
SUMMIT MATERIALS INC -CL A 0.88%
SPROUTS FARMERS MARKET INC 0.84%
ENERGEN CORP 0.80%
FRANKLIN ELECTRIC CO INC 0.77%
REXNORD CORP 0.77%
ARES CAPITAL CORP 0.76%
BADGER DAYLIGHTING LTD 0.72%
BROOKDALE SENIOR LIVING INC 0.72%
CLEAN HARBORS INC 0.72%
ASSURED GUARANTY LTD 0.71%
ENERSYS 0.71%
COLFAX CORP 0.69%
REGAL BELOIT CORP 0.69%
HERSHA HOSPITALITY TRUST 0.68%
MATRIX SERVICE CO 0.68%
MOTORCAR PARTS OF AMERICA IN 0.66%
SLM CORP 0.66%
BRUNSWICK CORP 0.64%
OCEAN RIG UDW INC-A 0.63%
CHAPARRAL ENERGY INC-CLASS A 0.62%
ENSIGN GROUP INC/THE 0.60%
FLOWERS FOODS INC 0.59%
FORMFACTOR INC 0.58%
HERITAGE INSURANCE HOLDINGS 0.58%
ATKORE INTERNATIONAL GROUP I 0.57%
THERMON GROUP HOLDINGS INC 0.57%
ASTEC INDUSTRIES INC 0.56%
CONDUENT INC 0.55%
IMAX CORP 0.55%
KAPSTONE PAPER AND PACKAGING 0.55%
RLJ LODGING TRUST 0.54%
AXALTA COATING SYSTEMS LTD 0.53%
INVESTMENT TECHNOLOGY GROUP 0.53%
KOHLS CORP 0.53%
QUANTENNA COMMUNICATIONS INC 0.53%
ROOTS CORP 0.53%
CAPITOL INVESTMENT CORP IV 0.52%
TITAN INTERNATIONAL INC 0.52%
VIRTUS INVESTMENT PARTNERS 0.52%
ENVISION HEALTHCARE CORP 0.51%
OCLARO INC 0.51%
PCSB FINANCIAL CORP 0.51%
SILVER RUN ACQUISITION COR-A 0.51%
US CONCRETE INC 0.51%
MATTEL INC 0.50%
PLAYA HOTELS & RESORTS NV 0.50%
HORIZON GLOBAL CORP 0.49%
PARTY CITY HOLDCO INC 0.49%
TRIPLEPOINT VENTURE GROWTH B 0.49%
GOLUB CAPITAL BDC INC 0.48%
KENNEDY-WILSON HOLDINGS INC 0.48%
LUMENTUM HOLDINGS INC 0.48%
GENER8 MARITIME INC 0.47%
OASIS PETROLEUM INC 0.47%
ARGO GROUP INTERNATIONAL 0.46%
GLOBAL BRASS & COPPER HOLDIN 0.46%
GRAPHIC PACKAGING HOLDING CO 0.46%
HERCULES CAPITAL INC 0.46%
JABIL INC 0.46%
MIDSTATES PETROLEUM CO INC 0.46%
BRIDGE BANCORP INC 0.45%
LA QUINTA HOLDINGS INC 0.45%
MACOM TECHNOLOGY SOLUTIONS H 0.45%
SANDRIDGE ENERGY INC 0.45%
SENIOR HOUSING PROP TRUST 0.45%
UNIT CORP 0.45%
CLARUS CORP 0.44%
DEUTZ AG 0.44%
MRC GLOBAL INC 0.44%
NORTHWEST PIPE CO 0.44%
BONANZA CREEK ENERGY INC 0.43%
CARROLS RESTAURANT GROUP INC 0.43%
BROOKS AUTOMATION INC 0.42%
LAYNE CHRISTENSEN COMPANY 0.42%
MAXLINEAR INC 0.42%
FOSTER (LB) CO-A 0.41%
GRIFFON CORP 0.41%
INSTEEL INDUSTRIES INC 0.41%
WEATHERFORD INTERNATIONAL PL 0.41%
GENESCO INC 0.40%
MYR GROUP INC/DELAWARE 0.40%
TIMKENSTEEL CORP 0.40%
BERKSHIRE HILLS BANCORP INC 0.39%
FIRST INTERNET BANCORP 0.39%
PETIQ INC 0.39%
SCHNEIDER NATIONAL INC-CL B 0.39%
ADVANCED ENERGY INDUSTRIES 0.38%
DMC GLOBAL INC 0.38%
FREIGHTCAR AMERICA INC 0.38%
ILG INC 0.38%
AMERICAN AXLE & MFG HOLDINGS 0.37%
CRAFT BREW ALLIANCE INC 0.37%
TSAKOS ENERGY NAVIGATION LTD 0.37%
UNITED COMMUNITY BANKS/GA 0.37%
BENEFICIAL BANCORP INC 0.36%
BLUE HILLS BANCORP INC 0.36%
BROOKLINE BANCORP INC 0.36%
ICF INTERNATIONAL INC 0.36%
INFINERA CORP 0.36%
QUANTA SERVICES INC 0.36%
CIENA CORP 0.35%
GENTEX CORP 0.35%
OWENS-ILLINOIS INC 0.35%
RED LION HOTELS CORP 0.35%
VALVOLINE INC 0.34%
AMERICAN EAGLE OUTFITTERS 0.33%
MITEL NETWORKS CORP 0.33%
OM ASSET MANAGEMENT PLC 0.33%
SILGAN HOLDINGS INC 0.33%
ATS AUTOMATION TOOLING SYS 0.32%
FIRST BANCSHARES INC/MS 0.32%
IAMGOLD CORP 0.31%
ULTRA PETROLEUM CORP 0.31%
AMPLIFY SNACK BRANDS INC 0.30%
ARDAGH GROUP SA 0.30%
ARMSTRONG FLOORING INC 0.30%
DEL FRISCO'S RESTAURANT GROU 0.30%
NEW YORK & CO 0.30%
OLD NATIONAL BANCORP 0.30%
TPG SPECIALTY LENDING INC 0.30%
VASCO DATA SECURITY INTL 0.30%
BENCHMARK ELECTRONICS INC 0.29%
ENERGIZER HOLDINGS INC 0.29%
RANGE RESOURCES CORP 0.29%
HYSTER-YALE MATERIALS 0.28%
MULLEN GROUP LTD 0.28%
OLYMPIC STEEL INC 0.28%
RED ROBIN GOURMET BURGERS 0.28%
CAI INTERNATIONAL INC 0.27%
CENTRAL EUROPEAN MEDIA ENT-A 0.27%
THE GEO GROUP INC 0.27%
CARPENTER TECHNOLOGY 0.26%
SEAWORLD ENTERTAINMENT INC 0.26%
STERLING BANCORP/DE 0.26%
FABRINET 0.25%
SPEEDWAY MOTORSPORTS INC 0.25%
TRONOX LTD-CL A 0.25%
GREENLIGHT CAPITAL RE LTD-A 0.24%
HNI CORP 0.24%
KEY ENERGY SERVICES INC 0.24%
LAREDO PETROLEUM INC 0.24%
STERLING BANCORP INC/MI 0.24%
TENNECO INC 0.24%
BOOZ ALLEN HAMILTON HOLDINGS 0.23%
SONIC CORP 0.23%
OCEANFIRST FINANCIAL CORP 0.22%
PATTERSON-UTI ENERGY INC 0.22%
SOLAR CAPITAL LTD 0.22%
TCP CAPITAL CORP 0.22%
VISTA OUTDOOR INC 0.22%
OAKTREE SPECIALTY LENDING CO 0.21%
CLIFTON BANCORP INC 0.20%
CLIPPER REALTY INC 0.20%
CRANE CO 0.20%
FIESTA RESTAURANT GROUP 0.20%
FOOT LOCKER INC 0.20%
INPHI CORP 0.20%
MUELLER INDUSTRIES INC 0.20%
NCR CORPORATION 0.20%
ORION ENGINEERED CARBONS SA 0.20%
WILLIAMS SCOTSMAN CORP 0.20%
EASTERLY ACQUISITION CORP 0.19%
IWM 20180316 P 142.00GSI 0.19%
MUELLER WATER PRODUCTS INC-A 0.19%
TTM TECHNOLOGIES 0.19%
CANADIAN DOLLAR ACCOUNT 0.18%
HALCON RESOURCES CORP 0.17%
OVERSEAS SHIPHOLDING GROUP-A 0.17%
ACACIA COMMUNICATIONS INC 0.16%
ANIXTER INTERNATIONAL INC 0.16%
FINISAR CORPORATION 0.16%
HARDWOODS DISTRIBUTION INC 0.16%
LEGACYTEXAS FINANCIAL GROUP 0.16%
MARTINREA INTERNATIONAL INC 0.16%
MERIDIAN BANCORP INC 0.16%
AMERICAN OUTDOOR BRANDS CORP 0.15%
DONEGAL GROUP INC-CL A 0.15%
IWM 20180316 P 145.00CITI 0.15%
J2 GLOBAL INC 0.15%
SOUTHWESTERN ENERGY CO 0.15%
B&G FOODS INC 0.14%
CORE MOLDING TECHNOLOGIES IN 0.14%
HARBORONE BANCORP INC 0.14%
HELIX ENERGY SOLUTIONS GROUP 0.13%
PERRY ELLIS INTERNATIONAL 0.13%
SEACHANGE INTERNATIONAL INC 0.13%
FLUSHING FINANCIAL CORP 0.12%
FRANCESCAS HOLDINGS CORP 0.12%
FULTON FINANCIAL CORP 0.12%
JMP GROUP LLC 0.12%
KBR INC 0.12%
MATSON INC 0.12%
CLEVELAND-CLIFFS INC 0.11%
FIREEYE INC 0.11%
GULF ISLAND FABRICATION INC 0.11%
SUMMIT HOTEL PROPERTIES INC 0.11%
LOUISIANA-PACIFIC CORP 0.10%
STURM RUGER & CO INC 0.10%
TECSYS INC 0.10%
BARNES & NOBLE INC 0.09%
UNIVERSAL STAINLESS & ALLOY 0.09%
BLACK DIAMOND GROUP LTD 0.08%
SAFE BULKERS INC 0.08%
STAR BULK CARRIERS CORP 0.08%
GDI INTEGRATED FACILITY SERV 0.07%
DILLARDS INC-CL A 0.06%
IWM 20180316 P 146.00UBS 0.06%
NATIONAL CINEMEDIA INC 0.06%
AGROFRESH SOLUTIONS INC 0.05%
AMIRA NATURE FOODS LTD 0.05%
FLOWSERVE CORP 0.05%
INDIGO BOOKS & MUSIC INC 0.05%
PC-TEL INC 0.05%
SILVERBOW RESOURCES INC 0.05%
AMERICAN RAILCAR INDUSTRIES 0.04%
AEO 20180119 C 20.00UBS 0.00%
BANCTEC INC-144A CONTINGENT VALUE RIGHTS 0.00%
CRS 20180119 P 50.00UBS 0.00%
FERROGLOBE REPRESENTATION & 0.00%
KSS 20180119 P 52.00CITI 0.00%
KSS 20180119 P 53.00CITI 0.00%
LITE 20180119 P 47.50UBS 0.00%
LITE 20180119 P 50.00UBS 0.00%
FNSR 20180119 P 23.00BCBP -0.01%
KSS 20180119 P 55.00CSI -0.01%
IWM 20180316 P 138.00UBS -0.03%
IWM 20180316 P 137.00CITI -0.07%
IWM 20180316 P 132.00GSI -0.08%

Prior top 10 holdings

Top 10 holdings as of 01/31/18
Dave Buster'S Entertainment
Bemis
Minerals Technologies
Bloomin' Brands
Hain Celestial Group The
Walker Dunlop
Assured Guaranty
Summit Materials
Hersha Hospitality Trust
Caesars Entertainment Corp
Holdings represent 11.88% of portfolio
Top 10 holdings as of 12/31/17
Bemis
Hain Celestial Group The
Apogee Enterprises
Minerals Technologies
Bloomin' Brands
Penn Virginia Corp
Hub Group
Brink'S The
Mastec
Caesars Entertainment Corp
Holdings represent 13.80% of portfolio
Top 10 holdings as of 11/30/17
Minerals Technologies
Brunswick Corp/De
Hain Celestial Group The
Mastec
Hub Group
Apogee Enterprises
Carpenter Technology Corp
Bemis
Caesars Entertainment Corp
Legg Mason
Holdings represent 12.43% of portfolio
Top 10 holdings as of 10/31/17
Minerals Technologies
Hain Celestial Group The
Maxlinear
Atkore International Group
Caesars Entertainment Corp
Hub Group
Radian Group
Party City Holdco
J2 Global
Carpenter Technology Corp
Holdings represent 9.83% of portfolio

Portfolio composition as of 01/31/18

Common stock 90.52%
Cash and net other assets 9.48%

Equity statistics as of 01/31/18

Median market cap $1.15B
Weighted average market cap $1.16B
Price to book 1.78
Price to earnings 16.70

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. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific company or industry. You can lose money by investing in the fund.

Top Industry Sectors as of 01/31/18

Industrials 20.24%
Financials 16.06%
Consumer discretionary 15.11%
Energy 10.59%
Materials 10.38%
Information technology 9.64%
Cash and net other assets 9.48%
Consumer staples 3.24%
Real estate 2.65%
 
Other
2.61%
Health care 2.48%
Telecommunication services 0.13%

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 1.42% 2.17% 2.17% 1.92% 1.67% 1.11% 1.01% 1.17%
What you pay 1.42% 2.17% 2.17% 1.92% 1.67% 1.11% 1.01% 1.17%

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. 0.00% 5.00% 1.00% -- -- -- -- --
2 yrs. -- 4.00% 0.00% -- -- -- -- --
3 yrs. -- 3.00% 0.00% -- -- -- -- --
4 yrs. -- 3.00% 0.00% -- -- -- -- --
5 yrs. -- 2.00% 0.00% -- -- -- -- --
6 yrs. -- 1.00% 0.00% -- -- -- -- --
7+ yrs. -- 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. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific company or industry. You can lose money by investing in the fund.