Prior to March 19, 2018, the fund was known as Putnam Multi-Cap Value Fund. As of 3/19, Stephanie Henderson was added to the fund as an Assistant Portfolio Manager.

Sustainable Future Fund (Class A)  (PMVAX)

Investing in growing companies solving sustainability challenges

Highlights

Objective

The fund seeks seeks long-term capital appreciation.

Strategy and process

  • Impact companies: The fund invests in growth companies that directly demonstrate positive impact in social, environmental, or economic development.
  • Active strategy: The managers utilize bottom-up research to identify companies with attractive sustainability, fundamental, and valuation characteristics.
  • Veteran team: A dedicated sustainable investing team is backed by Putnam's equity research and quantitative/risk analysis groups.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $21.21
0.14% | $0.03
$21.21
07/13/18
$19.08
04/02/18
Historical fund price

Fund facts as of 06/30/18

Total net assets
$407.94M
Turnover (fiscal year end)
116%
Dividend frequency
Annually
Number of holdings
56
Fiscal year-end
April
CUSIP / Fund code
746802511 / 0056
Inception date
11/01/99
Category
Growth
Open to new investors
Ticker
PMVAX

Management team

Head of Sustainable Investing
Portfolio Manager, Analyst


Manager commentary | Q1 2018

Sustainability is a facet of solid fundamental research

Portfolio Manager Katherine Collins discusses Putnam's approach to ESG investing and how it builds on the firm's historic strengths in research.


Literature


Sustainable investing: Assessing the choices
Sustainable investing is growing in popularity, and investors should be thoughtful about choosing from a range of strategies and portfolios.
Looking for impact in CEO compensation
It’s important for investors to be able to understand how a company’s performance relates to CEO compensation.
Looking for impact in CEO compensation
It’s important for investors to be able to understand how a company’s performance relates to CEO compensation.

Performance

Consistency of positive performance over five years

Performance represents 5-year returns in rolling quarter-end periods since inception.

Performance shown above does not reflect the effects of any sales charges. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please see below.

25.73%

Best 5-year annualized return

(for period ending 03/31/14)


-5.44%

Worst 5-year annualized return

(for period ending 03/31/09)


9.39%

Average 5-year annualized return


  • Total return (%) as of 06/30/18

  • Annual performance as of 06/30/18

Annualized Total return (%) as of 06/30/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 8.56% 6.20% 10.63% 8.60%
After sales charge 2.32% 4.12% 9.33% 7.96%
Russell Midcap Growth Index 18.52% 10.73% 13.37% 10.45%
Russell 3000V-Russell MidcapG Linked Benchmark 7.58% 8.59% 10.47% 8.63%

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. 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, 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.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 06/30/18 0.94 % -4.87 %
YTD as of 07/13/18 6.53 % 0.40 %

Risk-adjusted performance as of 05/31/18

Alpha (3 yrs.) -1.54
Sharpe ratio (3 yrs.) 0.48
Treynor ratio (3 yrs.) 5.50
Information ratio (3 yrs.) -0.61

Volatility as of 05/31/18

Standard deviation (3 yrs.) 10.14%
Beta 0.89
R-squared 0.87

Capture ratio as of 05/31/18

Up-market (3 yrs.) 86.06
Down-market (3 yrs.) 97.35

Lipper rankings as of 05/31/18

Multi-Cap Growth Funds Percentile ranking Rank/Funds in category
1 yr. 97% 495/512
3 yrs. 94% 426/453
5 yrs. 87% 347/399
10 yrs. 86% 259/301

Morningstar ratings as of 05/31/18

Mid-Cap Value Rating Funds in category
Overall (365)
3 yrs. (365)
5 yrs. (311)
10 yrs. (225)

Distributions

Record/Ex dividend date 12/06/17
Payable date 12/08/17
Income --
Extra income --
Short-term cap. gain $0.228
Long-term cap. gain $0.665

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 05/31/18

Novozymes A/S - B Shares 4.60%
Dxc Technology 4.02%
Becton Dickinson And 3.54%
Mccormick Md 3.42%
Unilever 3.28%
Vail Resorts 3.27%
Salesforce.Com 3.23%
Alphabet 3.14%
First Republic Bank/Ca 2.95%
Penumbra 2.95%
Top 10 holdings, percent of portfolio 34.40%

Full portfolio holdings as of 03/31/18

DXC TECHNOLOGY CO 4.35%
NOVOZYMES A/S-B SHARES 4.12%
MCCORMICK & CO-NON VTG SHRS 3.58%
BECTON DICKINSON AND CO 3.44%
UNILEVER PLC 3.28%
VAIL RESORTS INC 2.98%
ALPHABET INC-CL A 2.94%
SALESFORCE.COM INC 2.89%
TELADOC INC 2.74%
FIRST REPUBLIC BANK/CA 2.72%
DANAHER CORP 2.70%
PENUMBRA INC 2.66%
FORTIVE CORP 2.57%
JAZZ PHARMACEUTICALS PLC 2.56%
KION GROUP AG 2.12%
CHIPOTLE MEXICAN GRILL INC 2.09%
DR PEPPER SNAPPLE GROUP INC 2.07%
EDWARDS LIFESCIENCES CORP 2.04%
BLACKROCK INC 2.01%
EVERBRIDGE INC 2.01%
WEBSTER FINANCIAL CORP 2.01%
MASTERCARD INC - A 1.98%
ADOBE SYSTEMS INC 1.95%
APPLIED MATERIALS INC 1.94%
PRUDENTIAL PLC 1.94%
INSTRUCTURE INC 1.93%
BALL CORP 1.68%
ADIDAS AG 1.57%
CHR HANSEN HOLDING A/S 1.54%
FIRST SOLAR INC 1.21%
NORFOLK SOUTHERN CORP 1.09%
TJX COMPANIES INC 1.06%
NEXTERA ENERGY INC 1.05%
INVESCO LTD 1.02%
ITRON INC 1.02%
XYLEM INC 1.01%
E*TRADE FINANCIAL CORPORATION 1.00%
EAST WEST BANCORP INC 0.99%
AGILENT TECHNOLOGIES INC 0.98%
MSCI INC 0.98%
ON SEMICONDUCTOR CORP 0.98%
BANK OF AMERICA CORP 0.97%
HEALTHEQUITY INC 0.97%
ORBOTECH LTD 0.91%
ECOLAB INC 0.89%
TESLA INC 0.89%
OSHKOSH CORP 0.75%
XEROX CORP 0.69%
OWENS CORNING 0.63%
DOVER CORP 0.62%
NOVOZYMES A/S-UNSPONS ADR 0.53%
GALAPAGOS NV-SPON ADR 0.50%
VERTEX PHARMACEUTICALS INC 0.49%
CLOVIS ONCOLOGY INC 0.48%
BLUEBIRD BIO INC 0.47%
MEDICINES COMPANY 0.43%
LAM RESEARCH CORP 0.38%
S&P MID 400 EMINI JUN18 FAM8 -0.01%
S&P500 EMINI FUT JUN18 ESM8 -0.02%

Prior top 10 holdings

Top 10 holdings as of 05/31/18
Novozymes A/S - B Shares
Dxc Technology
Becton Dickinson And
Mccormick Md
Unilever
Vail Resorts
Salesforce.Com
Alphabet
First Republic Bank/Ca
Penumbra
Holdings represent 34.40% of portfolio
Top 10 holdings as of 04/30/18
Dxc Technology
Novozymes A/S - B Shares
Becton Dickinson And
Mccormick Md
Unilever
Vail Resorts
Salesforce.Com
Alphabet
Penumbra
Danaher Corp
Holdings represent 34.65% of portfolio
Top 10 holdings as of 03/31/18
Novozymes A/S - B Shares
Dxc Technology
Mccormick Md
Becton Dickinson And
Unilever
Vail Resorts
Alphabet
Salesforce.Com
Teladoc
First Republic Bank/Ca
Holdings represent 33.57% of portfolio
Top 10 holdings as of 02/28/18
Dxc Technology
Bank Of America Corp
Becton Dickinson And
E*Trade Financial Corp
Union Pacific Corp
First Republic Bank/Ca
Northrop Grumman Corp
Danaher Corp
Jazz Pharmaceuticals
ConocoPhillips
Holdings represent 30.20% of portfolio

Portfolio composition as of 05/31/18

Common stock 97.70%
Cash and net other assets 2.30%

Equity statistics as of 05/31/18

Median market cap $14.08B
Weighted average market cap $62.81B
Price to book 4.20
Price to earnings 23.11

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Stock values may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Investments in small and/or midsize companies increase the risk of greater price fluctuations. The fund's sustainable investment strategy limits the types and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not have a sustainable focus. A fund's environmental, social, and/or corporate governance (ESG) investment strategy may result in the fund investing in securities or industry sectors that underperform the market as a whole or underperform other funds screened for ESG standards. You can lose money by investing in the fund.

Top Industry Sectors as of 05/31/18

Information technology 26.24%
Health care 20.51%
Financials 15.67%
Consumer discretionary 9.54%
Materials 8.84%
Consumer staples 8.80%
Industrials 6.50%
Cash and net other assets 2.30%
Utilities 1.60%

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 1.08% 1.83% 1.83% 1.58% 1.33% 0.67% 0.83%
What you pay 1.08% 1.83% 1.83% 1.58% 1.33% 0.67% 0.83%

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 Russell Midcap Growth Index is an unmanaged index of those companies in the Russell Midcap Index chosen for their growth orientation. The Russell 3000 Value Index is an unmanaged index of those companies in the broad-market Russell 3000 Index chosen for their value orientation. The Russell 3000 Value - Russell Midcap Growth Linked Benchmark represents performance of the Russell 3000 Value Index through March 20, 2018 and performance of the Russell Midcap Growth Index thereafter. You cannot invest directly in an index. As of March 21, 2018, the Russell Midcap Growth Index replaced the Russell 3000 Value Index as the benchmark for this fund because, in Putnam Investment Management, LLC’s opinion, the securities tracked by this index more accurately reflect the types of securities that generally will be held by the fund.

Consider these risks before investing: Stock values may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Investments in small and/or midsize companies increase the risk of greater price fluctuations. The fund's sustainable investment strategy limits the types and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not have a sustainable focus. A fund's environmental, social, and/or corporate governance (ESG) investment strategy may result in the fund investing in securities or industry sectors that underperform the market as a whole or underperform other funds screened for ESG standards. You can lose money by investing in the fund.