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 $39.65
0.86% | $0.34
$41.34
03/12/18
$32.16
05/17/17
Historical fund price

Fund facts as of 03/31/18

Total net assets
$169.02M
Turnover (fiscal year end)
127%
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


Literature


Performance

  • 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 19.85% 7.70% 12.16% 9.02%
After sales charge 12.96% 5.60% 10.84% 8.38%
Russell 2000 Growth Index 18.63% 8.77% 12.90% 10.95%

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. To obtain the most recent month-end performance, visit putnam.com. 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 Absolute Return 500 Fund and 700 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 and 300 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 and 300 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, T1, 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. Class A, M, and T1 shares of Putnam money market funds have no initial sales charge. 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 03/31/18 1.96 % -3.90 %
YTD as of 04/26/18 5.06 % -0.98 %

Risk-adjusted performance as of 03/31/18

Alpha (3 yrs.) -1.02
Sharpe ratio (3 yrs.) 0.50
Treynor ratio (3 yrs.) 7.28
Information ratio (3 yrs.) -0.34

Volatility as of 03/31/18

Standard deviation (3 yrs.) 14.53%
Beta 0.99
R-squared 0.95

Capture ratio as of 03/31/18

Up-market (3 yrs.) 96.15
Down-market (3 yrs.) 100.74

Lipper rankings as of 03/31/18

Small-Cap Growth Funds Percentile ranking Rank/Funds in category
1 yr. 51% 276/549
3 yrs. 64% 307/479
5 yrs. 49% 215/439
10 yrs. 77% 254/333

Morningstar ratings as of 03/31/18

Small Growth Rating Funds in category
Overall (592)
3 yrs. (592)
5 yrs. (531)
10 yrs. (402)

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 03/31/18

Five Below 2.57%
Realpage 2.46%
Wingstop 2.37%
Grand Canyon Education 2.32%
Siteone Landscape Supply 2.31%
John Bean Technologies Corp 2.31%
Bright Horizons Family Solutions 2.29%
Summit Materials 2.15%
Trex 2.12%
Bwx Technologies 2.06%
Top 10 holdings, percent of portfolio 22.96%

Full portfolio holdings as of 12/31/17

FIVE BELOW 2.40%
SITEONE LANDSCAPE SUPPLY INC 2.38%
JOHN BEAN TECHNOLOGIES CORP 2.33%
SUMMIT MATERIALS INC -CL A 2.31%
PATRICK INDUSTRIES INC 2.27%
BRIGHT HORIZONS FAMILY SOLUT 2.23%
REALPAGE INC 2.19%
TREX COMPANY INC 2.19%
NEKTAR THERAPEUTICS 2.15%
INSTALLED BUILDING PRODUCTS 2.12%
WINGSTOP INC 2.06%
GRAND CANYON EDUCATION INC 2.05%
LITTELFUSE INC 2.05%
BWX TECHNOLOGIES INC 2.03%
FERRO CORP 2.01%
LIVE NATION ENTERTAINMENT IN 2.00%
EVERCORE INC - A 1.98%
GODADDY INC - CLASS A 1.77%
HEICO CORP 1.72%
CENTRAL GARDEN & PET CO 1.68%
MAXIMUS INC 1.64%
LIGAND PHARMACEUTICALS 1.57%
HEALTHCARE SERVICES GROUP 1.53%
ESCO TECHNOLOGIES INC 1.44%
J2 GLOBAL INC 1.41%
QTS REALTY TRUST INC-CL A 1.40%
2U INC 1.37%
RINGCENTRAL INC-CLASS A 1.36%
EVERBRIDGE INC 1.34%
HAMILTON LANE INC-CLASS A 1.29%
SAIA INC 1.24%
QAD INC-A 1.23%
ENVESTNET INC 1.22%
PACIFIC PREMIER BANCORP INC 1.21%
LOGMEIN INC 1.20%
KINSALE CAPITAL GROUP INC 1.19%
EXACT SCIENCES CORP 1.18%
INSULET CORP 1.17%
ORION ENGINEERED CARBONS SA 1.16%
INTEGRATED DEVICE TECH INC 1.14%
CABLE ONE INC 1.12%
EMERGENT BIOSOLUTIONS INC 1.12%
H AND E EQUIPMENT SERVICES INC 1.12%
MASTEC INC 1.08%
ROGERS CORP 1.08%
PENUMBRA INC 1.05%
HEALTHEQUITY INC 1.02%
MERCURY SYSTEMS INC 1.00%
ENTEGRIS INC 0.97%
STAG INDUSTRIAL INC 0.97%
PROOFPOINT INC 0.95%
Q2 HOLDINGS INC 0.94%
ADVANCED ENERGY INDUSTRIES 0.91%
ACLARIS THERAPEUTICS INC 0.90%
PROS HOLDINGS INC 0.85%
REPLIGEN CORP 0.85%
INSTRUCTURE INC 0.84%
MKS INSTRUMENTS INC 0.84%
LIBERTY MEDIA CORP-BRAVES A 0.83%
CLOVIS ONCOLOGY INC 0.82%
K2M GROUP HOLDINGS INC 0.82%
ARRAY BIOPHARMA INC 0.81%
AVEXIS INC 0.81%
MERIT MEDICAL SYSTEMS INC 0.78%
WINNEBAGO INDUSTRIES 0.77%
BROOKS AUTOMATION INC 0.76%
QUANTA SERVICES INC 0.76%
PORTOLA PHARMACEUTICALS INC 0.74%
SAREPTA THERAPEUTICS INC 0.73%
ACCELERON PHARMA INC 0.70%
INTEGRA LIFESCIENCES HOLDING 0.68%
PACIRA PHARMACEUTICALS INC 0.66%
WISDOMTREE INVESTMENTS INC 0.63%
SAGE THERAPEUTICS INC 0.57%
CHEGG INC 0.52%
LUMBER LIQUIDATORS HOLDINGS 0.50%
PUMA BIOTECHNOLOGY INC 0.42%
HESKA CORP 0.40%
MIRATI THERAPEUTICS INC 0.24%

Prior top 10 holdings

Top 10 holdings as of 03/31/18
Five Below
Realpage
Wingstop
Grand Canyon Education
Siteone Landscape Supply
John Bean Technologies Corp
Bright Horizons Family Solutions
Summit Materials
Trex
Bwx Technologies
Holdings represent 22.96% of portfolio
Top 10 holdings as of 02/28/18
Realpage
Five Below
Wingstop
John Bean Technologies Corp
Summit Materials
Bright Horizons Family Solutions
Grand Canyon Education
Siteone Landscape Supply
Bwx Technologies
Godaddy
Holdings represent 22.48% of portfolio
Top 10 holdings as of 01/31/18
Nektar Therapeutics
Wingstop
Realpage
John Bean Technologies Corp
Siteone Landscape Supply
Five Below
Summit Materials
Bright Horizons Family Solutions
Trex
Evercore
Holdings represent 23.18% of portfolio
Top 10 holdings as of 12/31/17
Five Below
Siteone Landscape Supply
John Bean Technologies Corp
Summit Materials
Patrick Industries
Bright Horizons Family Solutions
Realpage
Trex
Nektar Therapeutics
Installed Building Products
Holdings represent 22.57% of portfolio

Portfolio composition as of 03/31/18

Common stock 99.76%
Cash and net other assets 0.24%

Equity statistics as of 03/31/18

Median market cap $2.67B
Weighted average market cap $3.70B
Price to book 5.99
Price to earnings 38.97

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 and factors related to a specific issuer or industry. You can lose money by investing in the fund.

Top Industry Sectors as of 03/31/18

Information technology 28.27%
Health care 21.31%
Industrials 19.52%
Consumer discretionary 17.34%
Financials 6.27%
Materials 5.25%
Consumer staples 1.80%
Cash and net other assets 0.24%

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 1.21% 1.96% 1.96% 1.71% 1.46% 0.77% 0.96%
What you pay 1.21% 1.96% 1.96% 1.71% 1.46% 0.77% 0.96%

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 and factors related to a specific issuer or industry. You can lose money by investing in the fund.