Dynamic Asset Allocation Balanced Fund (PABYX)
A globally diversified fund pursuing a balance of growth and income
Allocation--50% to 70% Equity (funds in category)
(725)
(725)
(664)
(458)
Objective
The Balanced Fund seeks total return.
Fund price |
Yesterday’s close | 52-week high | 52-week low |
|---|---|---|---|
| Net asset value |
$15.65
0.06% | $0.01 |
$15.65
10/19/17 |
$13.66
11/04/16 |
Fund facts as of 09/30/17
$2,639.46M
374%
Quarterly
1775
September
746444884 / 1841
07/05/94
Asset Allocation
PABYX
Management team
Strategy and process
- More than 10 asset classes: The fund holds a variety of investments in all market conditions to be positioned to benefit from a wide range of opportunities.
- Individual securities: The managers select individual stocks and bonds, not other funds, to finely tune the portfolio and avoid overlap in holdings.
- Active rebalancing: The managers proactively pursue opportunities and regularly rebalance the portfolio to maintain a consistent risk profile.
Manager commentary | Q2 2017
Security selection can drive diversification
Jason Vaillancourt, Co-Head of Global Asset Allocation, explains how security selection can be a method of diversification.
Literature
Fund documents |
||
| Prospectuses/SAI | ||
| Fact Sheet (A share) (PDF) | ||
| Fact Sheet (Y share) (PDF) | ||
| Annual Fund Report (PDF) | ||
| Semiannual Fund Report (PDF) | ||
| Brochure (PDF) | ||
| Quarterly commentary (PDF) | ||
| Equity Outlook (PDF) | ||
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Consistency of positive performance over five years
Performance shown above does not reflect the effects of any sales charges. Click on the dots to see specific returns in each five-year period as of the date revealed. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please see below.
17.79%
Best 5-year annualized return
(for period ending 12/31/99)
-3.21%
Worst 5-year annualized return
(for period ending 03/31/09)
6.77%
Average 5-year annualized return
Total return (%) as of 09/30/17
Annual performance as of 09/30/17
| Annualized performance | 1 yr. | 3 yrs. | 5 yrs. | 10 yrs. |
|---|---|---|---|---|
| Before sales charge | 12.92% | 7.28% | 9.56% | 6.08% |
| After sales charge | N/A | N/A | N/A | N/A |
| Russell 3000 Index | 18.71% | 10.74% | 14.23% | 7.57% |
| Putnam Balanced Blended Benchmark | 11.52% | 7.23% | 9.03% | 6.15% |
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 09/30/17 | 1.48 % | - |
| YTD as of 10/19/17 | 12.10 % | - |
Yield
| Distribution rate before sales charge as of 10/19/17 |
1.69% |
|---|---|
| Distribution rate after sales charge as of 10/19/17 |
1.69% |
| 30-day SEC yield as of 09/29/17 | 1.84% |
Risk-adjusted performance as of 09/30/17
| Alpha (3 yrs.) | 0.36 |
|---|---|
| Sharpe ratio (3 yrs.) | 1.06 |
| Treynor ratio (3 yrs.) | 11.04 |
| Information ratio (3 yrs.) | -0.87 |
Volatility as of 09/30/17
| Standard deviation (3 yrs.) | 6.60% |
|---|---|
| Beta | 0.64 |
| R-squared | 0.95 |
Capture ratio as of 09/30/17
| Up-market (3 yrs.) | 67.91 |
|---|---|
| Down-market (3 yrs.) | 66.91 |
Lipper rankings as of 09/30/17
| Mixed-Asset Target Alloc Moderate Funds | Percentile ranking | Rank/Funds in category |
|---|---|---|
| 1 yr. | 9% | 45/546 |
| 3 yrs. | 4% | 17/494 |
| 5 yrs. | 3% | 11/452 |
| 10 yrs. | 6% | 19/334 |
Morningstar ratings as of 09/30/17
| Allocation--50% to 70% Equity | Rating | Funds in category |
|---|---|---|
| Overall | (725) | |
| 3 yrs. | (725) | |
| 5 yrs. | (664) | |
| 10 yrs. | (458) |
Distributions
| Record/Ex dividend date | 09/18/17 |
|---|---|
| Payable date | 09/20/17 |
| Income | $0.066 |
| Extra income | $0.0 |
| 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.
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 09/30/17
| Gnma Gii30 Ma4652 03.5000 08/20/2047 | 2.41% |
|---|---|
| Apple | 1.80% |
| Alphabet | 1.73% |
| Microsoft | 1.73% |
| JPMorgan Chase | 1.29% |
| Johnson & Johnson | 1.19% |
| Fnma Fn30 Ma2864 03.5000 01/01/2047 | 1.17% |
| Citigroup | 1.10% |
| Fnma Fn15 Al9468 03.0000 12/01/2031 | 1.04% |
| Fhlmc Fh30g G08677 04.0000 11/01/2045 | 0.99% |
| Top 10 holdings, percent of portfolio | 14.45% |
Portfolio composition as of 09/30/17
| U.S. large-cap equity | 36.64% |
|---|---|
| U.S. Investment-grade bonds | 30.19% |
| U.S. small- and mid-cap equity | 13.96% |
| International equity | 13.03% |
| U.S. money markets | 3.24% |
| U.S. High-yield bonds | 2.94% |
Fixed income statistics as of 09/30/17
| Average effective maturity | 8.03 yrs. |
|---|---|
| Average effective duration | 1.93 yrs. |
Fund characteristics will vary over time.
Due to rounding, percentages may not equal 100%.
Consider these risks before investing: Allocation of assets among asset classes may hurt performance. Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, factors related to a specific issuer or industry and, with respect to bond prices, changing market perceptions of the risk of default and changes in government intervention. These factors may also lead to increased volatility and reduced liquidity in the bond markets. International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are also subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise. 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). Default risk is generally higher for non-qualified mortgages. Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. The use of derivatives may increase these risks by increasing investment exposure (which may be considered leverage) or, in the case of over-the-counter instruments, because of the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. You can lose money by investing in the fund.
Expenses
Expense ratio |
Class A | Class B | Class C | Class M | Class R | Class R5 | Class R6 | Class Y |
|---|---|---|---|---|---|---|---|---|
| Total expense ratio | 1.00% | 1.75% | 1.75% | 1.50% | 1.25% | 0.74% | 0.64% | 0.75% |
| What you pay | 1.00% | 1.75% | 1.75% | 1.50% | 1.25% | 0.74% | 0.64% | 0.75% |
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. | 0.00% | 5.00% | 1.00% | -- | -- | -- | -- | -- |
| 2 yrs. | -- | 4.00% | 0.00% | -- | -- | -- | -- | -- |
| 3 yrs. | -- | 3.00% | 0.00% | -- | -- | -- | -- | -- |
| 4 yrs. | -- | 3.00% | 0.00% | -- | -- | -- | -- | -- |
| 5 yrs. | -- | 2.00% | 0.00% | -- | -- | -- | -- | -- |
| 6 yrs. | -- | 1.00% | 0.00% | -- | -- | -- | -- | -- |
| 7+ yrs. | -- | 0.00% | 0.00% | -- | -- | -- | -- | -- |
The Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies. You cannot invest directly in an index.
Consider these risks before investing: Allocation of assets among asset classes may hurt performance. Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, factors related to a specific issuer or industry and, with respect to bond prices, changing market perceptions of the risk of default and changes in government intervention. These factors may also lead to increased volatility and reduced liquidity in the bond markets. International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Funds that invest in government securities are not guaranteed. Mortgage-backed investments, unlike traditional debt investments, are also subject to prepayment risk, which means that they may increase in value less than other bonds when interest rates decline and decline in value more than other bonds when interest rates rise. 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). Default risk is generally higher for non-qualified mortgages. Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. The use of derivatives may increase these risks by increasing investment exposure (which may be considered leverage) or, in the case of over-the-counter instruments, because of the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. You can lose money by investing in the fund.
‡ Robert Kea will retire from Putnam effective 12/31/17.