As of August 24, 2018, Putnam Capital Opportunities Fund merged into Putnam Small Cap Growth Fund.

Always Inspired. Always Active.

Small Cap Growth Fund (Class A)  (PNSAX)

Seeking to capitalize on growing small companies

Highlights

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.
  • A focus on growth: Small companies tend to be flexible and innovative, and can often expand their earnings at faster rates than larger companies.
  • A disciplined process: The portfolio manager uses a disciplined bottom-up fundamental investment process that focuses on quality and growth.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $44.08
1.71% | $0.74
$46.75
09/11/18
$33.25
12/24/18
Historical fund price

Fund facts as of 02/28/19

Total net assets
$460.61M
Turnover (fiscal year end)
22%
Dividend frequency
Annually
Number of holdings
79
Fiscal year-end
June
CUSIP / Fund code
746763549 / 0052
Inception date
12/31/97
Category
Growth
Open to new investors
Ticker
PNSAX

Management team

Portfolio Manager



Performance

  • Total return (%) as of 12/31/18

  • Annual performance as of 12/31/18

Annualized Total return (%) as of 12/31/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge -2.49% 8.34% 4.74% 12.70%
After sales charge -8.10% 6.22% 3.50% 12.04%
Russell 2000 Growth Index -9.31%7.24%5.13%13.52%

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, 4.00% and 3.25% for income funds and 2.25% and 0.75% for Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return 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, which is 3% in the first year, declining to 1% in the fourth 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, N, 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). Returns at public offering price (after sales charge) for class N shares reflect the current maximum initial sales charge of 1.50%. 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 and M shares of Putnam money market funds have no initial sales charge. For a portion of the periods, some funds had expense 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 02/28/19 7.67% 1.48%
YTD as of 03/20/19 19.56% 12.68%

Risk-adjusted performance as of 02/28/19

Alpha (3 yrs.) 1.97
Sharpe ratio (3 yrs.) 1.15
Treynor ratio (3 yrs.) 19.20
Information ratio (3 yrs.) 0.56

Volatility as of 02/28/19

Standard deviation (3 yrs.) 16.48%
Beta 0.99
R-squared 0.96

Capture ratio as of 02/28/19

Up-market (3 yrs.) 103.08
Down-market (3 yrs.) 96.02

Lipper rankings as of 02/28/19

Time period Rank/Funds in category Percentile ranking
1 yr. 185/560 33%
3 yrs. 239/484 50%
5 yrs. 258/441 59%
10 yrs. 206/328 63%
Lipper category: Small-Cap Growth Funds

Morningstar Ratings as of 02/28/19

Time period Funds in category Morningstar Rating
Overall 587
3 yrs. 587
5 yrs. 523
10 yrs. 391
Morningstar category: Small Growth

Distributions

Record/Ex dividend date 08/22/18
Payable date 08/24/18
Income --
Extra income --
Short-term cap. gain --
Long-term cap. gain $0.68

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 02/28/19

Five Below 3.22%
Wingstop 2.86%
Mercury Systems 2.56%
Realpage 2.54%
Bright Horizons Family Solutions 2.48%
Novanta 2.45%
Heico Corp 2.41%
Trex 2.30%
Merit Medical Systems 2.24%
Grand Canyon Education 2.21%
Top 10 holdings, percent of portfolio 25.27%

Full portfolio holdings as of 12/31/18

FIVE BELOW 3.51%
WINGSTOP INC 3.28%
BRIGHT HORIZONS FAMILY SOLUT 2.72%
MERIT MEDICAL SYSTEMS INC 2.68%
REALPAGE INC 2.39%
MERCURY SYSTEMS INC 2.38%
HEICO CORP-CLASS A 2.26%
PLANET FITNESS INC - CL A 2.26%
NOVANTA INC 2.25%
GRAND CANYON EDUCATION INC 2.19%
TREX COMPANY INC 2.17%
EMERGENT BIOSOLUTIONS INC 2.10%
EVERBRIDGE INC 2.02%
CABLE ONE INC 2.01%
HAMILTON LANE INC-CLASS A 1.99%
INTEGRATED DEVICE TECH INC 1.84%
LITTELFUSE INC 1.78%
SITEONE LANDSCAPE SUPPLY INC 1.78%
QUIDEL CORP 1.74%
EVO PAYMENTS INC-CLASS A 1.67%
EVERCORE INC - A 1.65%
LIGAND PHARMACEUTICALS 1.60%
RBC BEARINGS INC 1.60%
ENVESTNET INC 1.56%
LIVE NATION ENTERTAINMENT IN 1.52%
MEDPACE HOLDINGS INC 1.47%
WORLD WRESTLING ENTERTAIN-A 1.46%
FERRO CORP 1.40%
INSULET CORP 1.39%
CONMED CORP 1.32%
KINSALE CAPITAL GROUP INC 1.29%
ORION ENGINEERED CARBONS SA 1.25%
TABULA RASA HEALTHCARE INC 1.25%
QAD INC-A 1.23%
ALTERYX INC - CLASS A 1.22%
PAYLOCITY HOLDING CORP 1.20%
REPLIGEN CORP 1.18%
FOCUS FINANCIAL PARTNERS-A 1.15%
MGP INGREDIENTS INC 1.14%
ENTEGRIS INC 1.08%
PROTO LABS INC 1.00%
SAIA INC 1.00%
TACTILE SYSTEMS TECHNOLOGY I 1.00%
PROS HOLDINGS INC 0.97%
BWX TECHNOLOGIES INC 0.96%
HEALTHEQUITY INC 0.94%
Q2 HOLDINGS INC 0.94%
PENUMBRA INC 0.93%
HARSCO CORP 0.88%
SAREPTA THERAPEUTICS INC 0.88%
CHEGG INC 0.87%
NATIONAL VISION HOLDINGS INC 0.85%
CODEXIS INC 0.84%
ALBANY INTL CORP-CL A 0.83%
BROOKS AUTOMATION INC 0.80%
EXACT SCIENCES CORP 0.79%
TELADOC HEALTH INC 0.76%
CADENCE BANCORP 0.75%
J2 GLOBAL INC 0.75%
BLACKLINE INC 0.74%
ACCELERON PHARMA INC 0.73%
MIMECAST LTD 0.73%
ARRAY BIOPHARMA INC 0.67%
ASCENDIS PHARMA A/S - ADR 0.65%
GLOBAL BLOOD THERAPEUTICS IN 0.61%
LOXO ONCOLOGY INC 0.60%
MIRATI THERAPEUTICS INC 0.56%
ANAPLAN INC 0.55%
AXOGEN INC 0.55%
2U INC 0.53%
VERICEL CORP 0.52%
AMICUS THERAPEUTICS INC 0.48%
ATARA BIOTHERAPEUTICS INC 0.46%
JOHN BEAN TECHNOLOGIES CORP 0.45%
AT HOME GROUP INC 0.43%
AERIE PHARMACEUTICALS INC 0.40%
YETI HOLDINGS INC 0.40%
SUPERNUS PHARMACEUTICALS INC 0.39%

Prior top 10 holdings

Top 10 holdings as of 02/28/19
Five Below
Wingstop
Mercury Systems
Realpage
Bright Horizons Family Solutions
Novanta
Heico Corp
Trex
Merit Medical Systems
Grand Canyon Education
Holdings represent 25.27% of portfolio
Top 10 holdings as of 01/31/19
Five Below
Wingstop
Bright Horizons Family Solutions
Mercury Systems
Realpage
Merit Medical Systems
Trex
Heico Corp
Novanta
Planet Fitness
Holdings represent 25.86% of portfolio
Top 10 holdings as of 12/31/18
Five Below
Wingstop
Bright Horizons Family Solutions
Merit Medical Systems
Realpage
Mercury Systems
Heico Corp
Planet Fitness
Novanta
Grand Canyon Education
Holdings represent 25.92% of portfolio
Top 10 holdings as of 11/30/18
Five Below
Wingstop
Merit Medical Systems
Bright Horizons Family Solutions
Grand Canyon Education
Mercury Systems
Emergent Biosolutions
Realpage
Heico Corp
Trex
Holdings represent 24.93% of portfolio

Portfolio composition as of 02/28/19

Common stock 98.15%
Cash and net other assets 1.85%

Equity statistics as of 02/28/19

Median market cap $2.92B
Weighted average market cap $3.95B
Price to book 6.81
Price to earnings 38.94

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. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Stock prices may fall or fail to rise over time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer or industry. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. You can lose money by investing in the fund.

Top industry sectors as of 02/28/19

Information technology 26.25%
Health care 25.71%
Consumer discretionary 15.36%
Industrials 14.86%
Financials 7.18%
Communication services 4.91%
Materials 2.51%
Cash and net other assets 1.85%
Consumer staples 1.37%

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 1.20% 1.95% 1.95% 1.70% 1.45% 0.77% 0.95%
What you pay 1.20% 1.95% 1.95% 1.70% 1.45% 0.77% 0.95%

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 2000 Growth Index is an unmanaged index of those companies in the small-cap Russell 2000 Index chosen for their growth 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. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Stock prices may fall or fail to rise over time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer or industry. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. You can lose money by investing in the fund.