Equity Income Fund (PEYAX)
Seeking to harness the power of stock dividends since 1977
Darren A. Jaroch, CFA®
Designed to combine growth and income potential
Is it time to consider stocks as a source of income?
Dividends have been an important contributor to the total return of S&P 500 companies
Putnam Equity Income Fund combines the income potential of dividends with the growth potential of stocks
Dividend-paying companies: Seeks income for investors by targeting companies that pay dividends
Value stocks: Taps into undervalued companies, seeking to invest in them before the market recognizes their growth potential
Dividend growers: Rather than looking for absolute yield alone, targets companies with the potential to grow their dividends
A focus on positive performance for 35 years
Annualized returns for quarterly periods,
|Best 5-year return||21.64%|
|Worst 5-year return||-2.36%|
|Average 5-year return||9.90%|
|% of 5-year periods with positive returns||98%|
|Number of positive 5-year periods||123|
|Number of negative 5-year period||3|
Putnam Equity Income Fund received 4, 5, and 4 stars (load waived) and 3, 4, and 4 stars (load-adjusted) for the 3-, 5-, and 10-year periods among 1,036, 922, and 605 Large Value funds, respectively, as of 10/31/13. For each fund with at least a three-year history, Morningstar calculates two sets of ratings based on a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Risk-adjusted ratings reflect the effects of sales charges, loads, and redemption fees; load-waived ratings exclude those effects. Load-waived ratings should only be used by investors not subject to the sales charge. Load-waived share classes are for qualified plan participants only (e.g., plan participants of a defined contribution plan). The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. Data is historical. Past performance is no guarantee of future results. Morningstar Ratings shown are for class A shares only; other classes may have different performance characteristics.
S&P 500 Index is an unmanaged index of common stock performance.
The fund seeks current income. Capital growth is a secondary objective when consistent with seeking current income.
Putnam Equity Income Fund
(as of 12/31/13)
Overall Morningstar risk-adjusted rating among 1,056 large value funds.
Fund facts as of 02/28/14
|Fiscal year end||November|
|Total net assets||$5,375.07M|
|View distribution rate|
|Number of holdings||119|
|Open to new investors|
|Turnover (fiscal year end)||34%|
For more information, talk to your financial advisor or:
The Russell 1000 Value Index is an unmanaged index of those companies in the large-cap Russell 1000 Index chosen for their value orientation. Securities in the fund do not match those in the indexes and performance of the fund will differ. It is not possible to invest directly in an index.
Consider these risks before investing: Value stocks may fail to rebound, and the market may not favor value-style investing. Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests. Stock prices 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. You can lose money by investing in the fund.
You can lose money by investing in a fund. Any given fund may not achieve its goal, and is not intended as a complete investment program. All funds have risk. The value and/or returns of a portfolio will fluctuate with market conditions. You may have more or less than the original amount invested when you redeem your shares.