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 (1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 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 Absolute Return 100 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.
Convertible Securities Fund (Class A) (PCONX)
Offering investors the diverse benefits of convertible securities since 1972
Highlights
Objective
The fund seeks, with equal emphasis, current income and capital appreciation. Its secondary objective is conservation of capital.
Strategy and process
- Growth potential: The fund seeks to provide stock-like returns over time as the stock component of convertible securities tends to rise with the broader market.
- Steady income: The fund's performance in down markets is bolstered by the contractually guaranteed income from convertible securities.
- Effective diversification: The fund can provide effective diversification for many investor portfolios, because convertible securities are not highly correlated with either stocks or bonds.
Fund price |
Yesterday’s close | 52-week high | 52-week low |
|---|---|---|---|
| Net asset value |
$26.62
0.15% | $0.04 |
$26.87
03/12/18 |
$24.65
07/03/17 |
Fund facts as of 04/30/18
$707.69M
56%
Quarterly
119
October
746476100 / 0007
06/29/72
Value
PCONX
Literature
Fund documents |
||
| Prospectuses/SAI | ||
| Holding the middle ground with convertible securities (PDF) | ||
| Fact Sheet (Y share) (PDF) | ||
| Annual Fund Report (PDF) | ||
| Semiannual Fund Report (PDF) | ||
| Quarterly commentary (PDF) | ||
Performance
Consistency of positive performance over five years
Performance shown above does not reflect the effects of any sales charges. Click on the dots to see specific returns in each five-year period as of the date revealed. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please see below.
23.04%
Best 5-year annualized return
(for period ending 03/31/83)
-3.55%
Worst 5-year annualized return
(for period ending 12/31/08)
10.52%
Average 5-year annualized return
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 | 11.30% | 5.27% | 7.93% | 7.07% |
| After sales charge | 4.90% | 3.21% | 6.65% | 6.44% |
| ICE BofAML U.S. Convertible Index | 10.57% | 6.58% | 9.65% | 8.22% |
Performance snapshot
| Before sales charge | After sales charge | ||
|---|---|---|---|
| 1 mt. as of 04/30/18 | -1.08 % | -6.77 % | |
| YTD as of 05/25/18 | 4.92 % | -1.11 % | |
Yield
| Distribution rate before sales charge as of 05/25/18 |
1.80% |
|---|---|
| Distribution rate after sales charge as of 05/25/18 |
1.70% |
| 30-day SEC yield as of 04/30/18 (after sales charge) |
0.78% |
Risk-adjusted performance as of 04/30/18
| Alpha (3 yrs.) | -1.77 |
|---|---|
| Sharpe ratio (3 yrs.) | 0.52 |
| Treynor ratio (3 yrs.) | 4.05 |
| Information ratio (3 yrs.) | -1.12 |
Volatility as of 04/30/18
| Standard deviation (3 yrs.) | 8.02% |
|---|---|
| Beta | 1.04 |
| R-squared | 0.97 |
Capture ratio as of 04/30/18
| Up-market (3 yrs.) | 100.00 |
|---|---|
| Down-market (3 yrs.) | 119.50 |
Lipper rankings as of 04/30/18
| Convertible Securities Funds | Percentile ranking | Rank/Funds in category |
|---|---|---|
| 1 yr. | 60% | 49/82 |
| 3 yrs. | 61% | 43/70 |
| 5 yrs. | 55% | 34/61 |
| 10 yrs. | 33% | 13/39 |
Morningstar ratings as of 04/30/18
| Convertibles | Rating | Funds in category |
|---|---|---|
| Overall | (78) | |
| 3 yrs. | (78) | |
| 5 yrs. | (64) | |
| 10 yrs. | (42) |
Distributions
| Record/Ex dividend date | 03/27/18 |
|---|---|
| Payable date | 03/29/18 |
| Income | $0.12 |
| Extra income | -- |
| Short-term cap. gain | -- |
| Long-term cap. gain | -- |
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 04/30/18
| Microchip Technology | 3.21% |
|---|---|
| Liberty Media Corp | 2.44% |
| Micron Technology | 2.26% |
| BD Medical | 2.15% |
| Intel Corp | 1.99% |
| Dish Network Corp | 1.79% |
| Lam Research Corp | 1.78% |
| Booking Holdings | 1.69% |
| Jazz Investments I | 1.64% |
| On Semiconductor Corp | 1.64% |
| Top 10 holdings, percent of portfolio | 20.59% |
Portfolio composition as of 04/30/18
| Convertible bonds and notes | 76.35% |
|---|---|
| Mandatories | 13.50% |
| Cash and net other assets | 4.01% |
| Convertible preferred stock | 3.98% |
| Common stock | 2.00% |
| Corporate bonds and notes | 0.16% |
Equity statistics as of 04/30/18
| Median market cap | $4.50B |
|---|---|
| Weighted average market cap | $36.26B |
| Price to book | 3.26 |
| Price to earnings | 20.64 |
Fixed income statistics as of 04/30/18
| Average stated maturity | 7.51 yrs. |
|---|---|
| Average effective duration | 1.61 yrs. |
| Average yield to maturity | -1.98% |
| Average coupon | 2.54% |
| Average price | $132.36 |
Maturity detail as of 04/30/18
| 0 - 1 yr. | 12.18% |
|---|---|
| 1 - 5 yrs. | 50.75% |
| 5 - 10 yrs. | 20.86% |
| 10 - 15 yrs. | 1.04% |
| Over 15 yrs. | 15.17% |
Quality rating as of 04/30/18
| A | 2.73% |
|---|---|
| BBB | 14.57% |
| BB | 14.22% |
| B | 10.51% |
| CCC and Below | 1.03% |
| Not Rated | 52.93% |
| Cash and net other assets | 4.01% |
Fund characteristics will vary over time.
Due to rounding, percentages may not equal 100%.
Consider these risks before investing: Convertible securities prices may fall or fail to rise over time for several reasons, including general financial market conditions, factors related to a specific company or industry, changing market perceptions of the risk of default and changes in government intervention in the financial markets. These factors may also lead to increased volatility and reduced liquidity in the markets for convertible securities. These risks are generally greater for convertible securities issued by small and/or midsize companies. Convertible securities prices may be adversely affected by underlying common stock price changes. While convertible securities tend to provide higher yields than common stocks, the higher yield may not protect against the risk of loss or mitigate any loss associated with a convertible security's price decline. Convertible securities are subject to credit risk, which is the risk that an issuer of the fund's investments may default on payment of interest or principal. Credit risk is greater for below investment-grade convertible securities. Convertible securities may be less sensitive to interest-rate changes than non-convertible bonds because of their structural features (e.g., convertibility, "put" features). Interest-rate risk is generally greater, however, for longer-term bonds and convertible securities whose underlying stock price has fallen significantly below the conversion price. You can lose money by investing in the fund.
Credit qualities are shown as a percentage of the fund’s net assets. A bond rated BBB or higher (A-3/SP-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings may vary over time. Equity securities are shown in the not-rated category. Cash and net other assets, if any, represent the market value weights of cash and derivatives and may show a negative market value as a result of the timing of trade versus settlement date transactions. The fund itself has not been rated by an independent rating agency.
Top Industry Sectors as of 04/30/18
| Information technology | 39.21% |
|---|---|
| Health care | 15.30% |
| Consumer discretionary | 13.00% |
| Industrials | 8.86% |
| Financials | 6.57% |
| Energy | 4.78% |
| Cash and net other assets | 4.01% |
| Real estate | 3.67% |
| Utilities | 2.77% |
| Other | 1.83% |
0
The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.
Sectors will vary over time.
Country Allocation as of 04/30/18
| United States | 92.76% |
|---|---|
| Cash and net other assets | 4.01% |
| Ireland | 1.64% |
| Mexico | 0.79% |
| Netherlands | 0.74% |
| China | 0.06% |
0
Expenses
Expense ratio |
Class A | Class B | Class C | Class M | Class R | Class R6 | Class Y |
|---|---|---|---|---|---|---|---|
| Total expense ratio | 1.07% | 1.82% | 1.82% | 1.57% | 1.32% | 0.73% | 0.82% |
| What you pay | 1.07% | 1.82% | 1.82% | 1.57% | 1.32% | 0.73% | 0.82% |
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 ICE BofAML All U.S. Convertible Index consists of convertible bonds traded in the U.S. dollar denominated investment grade and non investment grade convertible securities sold into the U.S. market and publicly traded in the United States. You cannot invest directly in an index.
Consider these risks before investing: Convertible securities prices may fall or fail to rise over time for several reasons, including general financial market conditions, factors related to a specific company or industry, changing market perceptions of the risk of default and changes in government intervention in the financial markets. These factors may also lead to increased volatility and reduced liquidity in the markets for convertible securities. These risks are generally greater for convertible securities issued by small and/or midsize companies. Convertible securities prices may be adversely affected by underlying common stock price changes. While convertible securities tend to provide higher yields than common stocks, the higher yield may not protect against the risk of loss or mitigate any loss associated with a convertible security's price decline. Convertible securities are subject to credit risk, which is the risk that an issuer of the fund's investments may default on payment of interest or principal. Credit risk is greater for below investment-grade convertible securities. Convertible securities may be less sensitive to interest-rate changes than non-convertible bonds because of their structural features (e.g., convertibility, "put" features). Interest-rate risk is generally greater, however, for longer-term bonds and convertible securities whose underlying stock price has fallen significantly below the conversion price. You can lose money by investing in the fund.
Credit qualities are shown as a percentage of the fund’s net assets. A bond rated BBB or higher (A-3/SP-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor’s, Moody’s, and Fitch. Ratings may vary over time. Equity securities are shown in the not-rated category. Cash and net other assets, if any, represent the market value weights of cash and derivatives and may show a negative market value as a result of the timing of trade versus settlement date transactions. The fund itself has not been rated by an independent rating agency.