Active Allocation

George Putnam Balanced Fund (Class Y)  (PGEYX)

A prudent balance of stocks and bonds since 1937

George Putnam Balanced Fund received an  Overall Morningstar Rating  of  

Balance and ballast: A strategy for uncertain markets

With heightened uncertainty in the financial markets, we believe it is an attractive time to invest in balanced funds, thanks to uncorrelated asset class returns and the ballast provided by the fixed-income portion of their portfolios.

Read More

Highlights

Objective

The fund seeks to provide a balanced investment composed of a well-diversified portfolio of stocks and bonds that produces both capital growth and current income.

Strategy and process

  • Balanced approach One of the pioneering mutual funds, it offers a mix of stocks and bonds in a classic balanced portfolio.
  • Seeks lower volatility A focus on high-quality bonds helps manage volatility, while high-conviction stocks can help drive relative returns.
  • Disciplined process Experienced portfolio managers use rigorous fundamental research to find opportunities and manage risk.

Fund price and assets

Prior close 52-week high 52-week low Net assets and outstanding shares
Net asset value $24.22
-0.12% | $-0.03
$24.25
03/01/24
$19.64
03/13/23
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Fund facts as of 02/29/24

Total net assets
$1,881.69M
Turnover (fiscal year end)
47%
Dividend frequency (view rate)
Quarterly
Number of holdings
635
Fiscal year-end
July
CUSIP / Fund code
37252M603 / 1802
Inception date
03/31/94
Category
Asset Allocation
Open to new investors
Ticker
PGEYX

Management team

Director of Equity Research
Portfolio Manager

Literature


Balance and ballast: A strategy for uncertain markets
With heightened uncertainty in the financial markets, we believe it is an attractive time to invest in balanced funds, thanks to uncorrelated asset class returns and the ballast provided by the fixed-income portion of their portfolios.
Driving with the rearview mirror
With the economic outlook causing wide-ranging debate, we consider what stock and bond valuations indicate.
Why favor higher quality as credit squeeze tightens
Prudent credit selection is paramount as the Fed juggles monetary policy and financial security. Get Putnam’s insights on the SLOOS and the tightening credit squeeze.

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.

22.26%

Best 5-year annualized return

(for period ending 06/30/87)


-6.01%

Worst 5-year annualized return

(for period ending 03/31/09)


9.14%

Average 5-year annualized return


  • Total return (%) as of 12/31/23

  • Annual performance as of 12/31/23

Annualized Total return (%) as of 12/31/23

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 20.17% 4.96% 10.75% 8.28%
After sales charge N/A N/A N/A N/A
George Putnam Blended Index 17.82%4.86%10.25%8.27%

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. The "before sales charge" performance does not reflect the current maximum sales charges, which we explain below. If performance did reflect the charges, it would be lower. The "after sales charge" performance (or returns at public offering price) varies by share class and fund. For class A and class M shares, the current maximum initial sales charges are 5.75% and 3.50% for equity funds and 4.00% and 3.25% for income funds, respectively (with these exceptions: 2.25% for class A of Floating Rate Income Fund, Short-Term Municipal Income Fund, Short Duration Bond Fund, and Strategic Intermediate Municipal Fund). Class B share performance reflects the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declines to 1% in the sixth year, and is eliminated thereafter (except for Floating Rate Income Fund and Short Duration Bond Fund; for these funds, the CDSC is 1% in the first year, declines to 0.5% in the second year, and is eliminated thereafter). Class C share performance reflects 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 by adjusting for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (note, for two funds - Tax-Free High Yield Fund and Strategic Intermediate Municipal Fund performance prior to inception is based on the historical performance of class B shares). Performance for class A, C, R6, and Y shares of Mortgage Opportunities Fund before their inception is derived from the historical performance of class I shares, which has been adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares. The "after sales charge" performance (at public offering price) for class N shares reflects the current maximum initial sales charge of 1.50%. Class R, R3, R4, R5, and R6 shares, which are 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 R3 and R4 shares prior to their inception is derived from the historical performance of class Y shares by adjusting for the higher operating expenses for such shares. Performance for class R5 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower expenses; had it been adjusted, performance would be higher (with the exception of the Sustainable Retirement Maturity, 2025, 2030, 2035, and 2040 Funds, for which performance is derived from the historical performance of class R6 shares and has been adjusted for the higher operating expenses for such shares; and the Sustainable Retirement 2045, 2050, 2055, and 2060 Funds, for which performance is derived from the historical performance of class R6 shares and has not been adjusted for the lower expenses; had it been adjusted, performance would be higher). Performance for class R6 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would be 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. Had these limits not been in place, performance would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 02/29/24 3.12% -
YTD as of 03/04/24 or prior close 5.47% -

Yield

Distribution rate before sales charge
as of 03/04/24
1.49%
Distribution rate after sales charge
as of 03/04/24
1.49%
30-day SEC yield as of 02/29/24 1.93%

Risk-adjusted performance as of 01/31/24

Alpha (3 yrs.) 0.24
Sharpe ratio (3 yrs.) 0.28
Treynor ratio (3 yrs.) 3.45
Information ratio (3 yrs.) 0.24

Volatility as of 01/31/24

Standard deviation (3 yrs.) 12.71%
Beta 1.01
R-squared 0.99

Fixed income statistics as of 01/31/24

Average effective duration 6.01 yrs.

Capture ratio as of 01/31/24

Up-market (3 yrs.) 101.72
Down-market (3 yrs.) 100.30

Lipper rankings as of 01/31/24

Time period Rank/Funds in category Percentile ranking
1 yr. 6/414 2%
3 yrs. 26/393 7%
5 yrs. 9/369 3%
10 yrs. 7/295 3%
Lipper category: BALANCED FUNDS

Morningstar Ratings as of 01/31/24

Time period Funds in category Morningstar Rating
Overall 703
3 yrs. 703
5 yrs. 662
10 yrs. 494
Morningstar category: Moderate Allocation

Distributions

Record/Ex dividend date 02/27/24
Payable date 02/29/24
Income $0.09
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.

Morningstar Ratings for the specific share classes only; other classes may have different performance characteristics.

The Morningstar Rating™ 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 3-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 Morningstar Rating does not include any adjustment for sales loads. 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 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% 3-year rating for 36–59 months of total returns, 60% 5-year rating/40% 3-year rating for 60–119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-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 3-year period actually has the greatest impact because it is included in all three rating periods.

Some of Morningstar's proprietary calculations, including the Morningstar Rating™, are not customarily calculated based on adjusted historical returns. However, for new share classes/channels, Morningstar may calculate an extended performance Morningstar Rating that is based, in part, on adjusted historical (or "pre-inception") returns for periods prior to the inception of the share class of the fund shown herein ("Report Share Class").

The extended performance is calculated by creating a performance stream consisting of the Report Share Class and older share class(s). Morningstar adjusts the historical total returns of the older share class(es) of a fund to reflect higher expenses in the Report Share Class. Morningstar does not hypothetically adjust returns upwards for lower expenses.

The extended performance Morningstar Risk-Adjusted Return is then calculated for 3-, 5-, and 10-year time periods and used to determine the extended performance Morningstar Rating. The extended performance Morningstar Rating for this fund does not affect the retail fund data published by Morningstar, as the bell curve distribution on which the ratings are based includes only funds with actual returns. The Overall Morningstar Rating for multi-share open-end funds will be either based on actual performance only or extended performance only. Once the share class turns three years old, the Overall Morningstar Rating will be based on actual ratings only. The Overall Morningstar Rating for multi-share variable annuities is based on a weighted average of any ratings that are available.

While the inclusion of pre-inception data, in the form of extended performance, can provide valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can only provide an approximation of that behavior. For example, the fee structures of a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. The underlying investments in the share classes used to calculate the pre-performance string will likely vary from the underlying investments held in the fund after inception. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself.

© 2023 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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

Microsoft 5.12%
Apple 2.69%
Alphabet 2.45%
Amazon 2.45%
Nvidia 2.25%
Oracle 1.56%
Meta Platforms 1.53%
Broadcom 1.42%
Us Treasury N/B 01.6250 02/15/2026 1.39%
Salesforce 1.36%
Top 10 holdings, percent of portfolio 22.22%



Portfolio composition as of 01/31/24

Common stock 61.66%
Investment-grade corporate bonds 14.02%
U.S. Treasury/agency 11.53%
Agency pass-through 9.67%
Cash and net other assets 2.14%
Commercial MBS 0.50%
High-yield corporate bonds 0.39%
Municipal bonds 0.05%
Emerging-market bonds 0.02%
Residential MBS (non-agency) 0.01%

Fixed income statistics as of 01/31/24

Average effective maturity 8.48 yrs.
Average effective duration 6.01 yrs.

Maturity detail as of 01/31/24

0 - 1 yr. 4.10%
1 - 5 yrs. 34.82%
5 - 10 yrs. 41.25%
10 - 15 yrs. 3.32%
Over 15 yrs. 16.51%

Quality rating as of 01/31/24

AAA 51.09%
AA 2.75%
A 13.26%
BBB 24.54%
BB 1.02%
B 0.09%
Cash and net other assets 7.24%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before 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.

Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. 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 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 and portfolio credit quality will vary over time. Cash and net other assets represent the market value weights of cash, derivatives, and short-term securities in the fixed portion of the portfolio and may not match the value shown in other breakdowns. The fund itself has not been rated by an independent rating agency. Data in the chart reflect a new calculation methodology put into effect 6/30/22.

Sector weightings as of 01/31/24

Information technology 28.75%
Financials 12.90%
Health care 12.89%
Consumer discretionary 10.81%
Communication services 8.47%
Industrials 6.89%
Consumer staples 6.44%
Energy 3.90%
Materials 3.32%
 
Other
5.63%
Utilities 2.55%
Cash and net other assets 2.14%
Real Estate 0.94%

The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Sectors will vary over time.

Represents the equity portion of the portfolio.


Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
Total expense ratio 0.96% 1.71% 1.71% 1.46% 1.21% 0.72% 0.62% 0.71%
What you pay 0.96% 1.71% 1.71% 1.46% 1.21% 0.72% 0.62% 0.71%

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 George Putnam Blended Index is an unmanaged index administered by Putnam Management, 60% of which is the S&P 500® Index and 40% of which is the Bloomberg U.S. Aggregate Bond Index. The S&P 500® Index is an unmanaged index of common stock performance. The Bloomberg U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed income securities. You cannot invest directly in an index.

Consider these risks before 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.

Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. Risks associated with derivatives include increased investment exposure (which may be considered leverage) and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. 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 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 and portfolio credit quality will vary over time. Cash and net other assets represent the market value weights of cash, derivatives, and short-term securities in the fixed portion of the portfolio and may not match the value shown in other breakdowns. The fund itself has not been rated by an independent rating agency. Data in the chart reflect a new calculation methodology put into effect 6/30/22.