Global Financials Fund (Class A)  (PGFFX)

Pursuing investment opportunities in financial-related companies worldwide

Highlights

Objective

The fund seeks capital appreciation.

Strategy and process

  • A dynamic sector: From banking and insurance to real estate, the fund invests in industries that can profit from the global demand for financial services.
  • A global approach: To seek the best opportunities, the fund's manager has the flexibility to invest in stocks from around the world.
  • Active management: The manager, supported by experienced research analysts, combines rigorous fundamental research with macroeconomic views to pinpoint opportunities across the sector.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $13.43
-0.67% | $-0.09
$14.52
01/26/18
$12.02
05/31/17
Historical fund price

Fund facts as of 04/30/18

Total net assets
$32.41M
Turnover (fiscal year end)
40%
Dividend frequency
Annually
Number of holdings
63
Fiscal year-end
August
CUSIP / Fund code
746764711 / 0067
Inception date
12/18/08
Category
Global Sector
Open to new investors
Ticker
PGFFX

Management team

Portfolio Manager, Analyst



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.

18.38%

Best 5-year annualized return

(for period ending 03/31/14)


2.59%

Worst 5-year annualized return

(for period ending 06/30/16)


8.83%

Average 5-year annualized return


  • 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. Life (inception: 12/18/08 )
Before sales charge 14.74% 6.15% 7.67% 9.16%
After sales charge 8.14% 4.08% 6.40% 8.46%
MSCI World Financials & Real Estate Index (ND) 13.51% 7.50% 8.87% --

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, 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, Putnam Fixed Income Absolute Return 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, Putnam Fixed Income Absolute Return 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, 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. 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 04/30/18 0.75 % -5.04 %
YTD as of 05/25/18 -0.67 % -6.38 %

Risk-adjusted performance as of 04/30/18

Alpha (3 yrs.) -1.73
Sharpe ratio (3 yrs.) 0.34
Treynor ratio (3 yrs.) 4.66
Information ratio (3 yrs.) -0.62

Volatility as of 04/30/18

Standard deviation (3 yrs.) 13.58%
Beta 1.00
R-squared 0.96

Capture ratio as of 04/30/18

Up-market (3 yrs.) 93.75
Down-market (3 yrs.) 101.75

Morningstar ratings as of 04/30/18

Financial Rating Funds in category
Overall (94)
3 yrs. (94)
5 yrs. (89)

Distributions

Record/Ex dividend date 12/21/17
Payable date 12/26/17
Income $0.2
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.

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 04/30/18

Bank Of America Corp 4.71%
Prudential 4.17%
Citigroup 4.09%
Assured Guaranty 3.98%
Aia Group 3.49%
Goldman Sachs Group The 3.29%
E*Trade Financial Corp 2.98%
Kkr Lp 2.91%
Irb Brasil Resseguros S/A 2.73%
Insurance Australia Group 2.70%
Top 10 holdings, percent of portfolio 35.05%

Full portfolio holdings as of 03/31/18

BANK OF AMERICA CORP 4.48%
PRUDENTIAL PLC 4.07%
CITIGROUP INC 4.05%
ASSURED GUARANTY LTD 3.98%
GOLDMAN SACHS GROUP INC 3.48%
AIA GROUP LTD 3.34%
E*TRADE FINANCIAL CORPORATION 3.03%
KKR & CO LP 2.83%
ING GROEP NV-CVA 2.70%
RADIAN GROUP INC 2.65%
BLACKROCK INC 2.63%
IRB BRASIL RESSEGUROS SA 2.57%
CHALLENGER LTD 2.26%
INSURANCE AUSTRALIA GROUP LTD 2.20%
VISA INC-CLASS A SHARES 2.04%
INVESCO LTD 2.01%
SUMITOMO MITSUI FINANCIAL GR 2.01%
SCHWAB (CHARLES) CORP 2.00%
ORIX CORP 1.98%
SUNTRUST BANKS INC 1.98%
NATIXIS 1.97%
ST JAMES'S PLACE PLC 1.96%
KYUDENKO CORP 1.94%
AMERICAN INTERNATIONAL GROUP 1.91%
GRUPO FINANCIERO GALICIA-ADR 1.85%
CAIXABANK S.A 1.79%
OLD MUTUAL PLC 1.76%
PARTNERS GROUP HOLDING AG 1.68%
EURAZEO SA 1.67%
CHUBB LTD 1.66%
METLIFE INC 1.66%
INTESA SANPAOLO 1.58%
DALATA HOTEL GROUP PLC 1.51%
FAIRFAX FINANCIAL HLDGS LTD 1.50%
HAMILTON LANE INC-CLASS A 1.27%
BANK OF IRELAND GROUP PLC 1.14%
HDFC BANK LTD-ADR 1.14%
KENNEDY-WILSON HOLDINGS INC 1.11%
FIRST REPUBLIC BANK/CA 1.10%
SUMITOMO WAREHOUSE CO LTD 1.09%
INTACT FINANCIAL CORP 1.04%
BIG YELLOW GROUP PLC 1.01%
AMUNDI SA 1.00%
PUBLIC STORAGE 0.92%
BOSTON PROPERTIES INC 0.89%
HIBERNIA REIT PLC 0.75%
WISDOMTREE INVESTMENTS INC 0.72%
ADMIRAL GROUP PLC 0.66%
BURFORD CAPITAL LTD 0.49%
FOXTONS GROUP PLC 0.46%
OPORTUN FIN CORP P/P SERIES H PFD 0.04%
OPORTUN FIN CORP P/P 0.01%
OPORTUN FIN F-1 PFD CV P/P 0.01%
OPORTUN FIN G-1 PFD CV P/P 0.01%
SEK/USD 06/20/2018 CSI-FX 0.01%
AUD/USD 04/18/2018 GSFX 0.00%
AUD/USD 04/18/2018 JPMCB 0.00%
AUD/USD 04/18/2018 SSBT 0.00%
AUD/USD 04/18/2018 UBS 0.00%
AUSTRALIAN DOLLAR ACCOUNT 0.00%
BGP HOLDINGS PLC 0.00%
CAD/USD 04/18/2018 BCAP-FX 0.00%
CAD/USD 04/18/2018 CSI-FX 0.00%
CAD/USD 04/18/2018 JPMCB 0.00%
CAD/USD 04/18/2018 RBSF 0.00%
CAD/USD 04/18/2018 SSBT 0.00%
CAD/USD 04/18/2018 WPAC 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
CHF/USD 06/20/2018 BCAP-FX 0.00%
CHF/USD 06/20/2018 JPMCB 0.00%
DKK/USD 06/20/2018 JPMCB 0.00%
EUR/USD 06/20/2018 BCAP-FX 0.00%
EUR/USD 06/20/2018 CITI 0.00%
EUR/USD 06/20/2018 SSBT 0.00%
GBP/USD 06/20/2018 BCAP-FX 0.00%
GBP/USD 06/20/2018 GSFX 0.00%
GBP/USD 06/20/2018 JPMCB 0.00%
GBP/USD 06/20/2018 SSBT 0.00%
GBP/USD 06/20/2018 WPAC 0.00%
HKD/USD 05/16/2018 BCAP-FX 0.00%
ILS/USD 04/18/2018 SSBT 0.00%
JPY/USD 05/16/2018 JPMCB 0.00%
JPY/USD 05/16/2018 RBSF 0.00%
JPY/USD 05/16/2018 SSBT 0.00%
KOREAN WON CALL ACCOUNT 0.00%
NOK/USD 06/20/2018 CSI-FX 0.00%
OPORTUN FIN A-1 PFD CV P/P 0.00%
OPORTUN FIN B-1 PFD CV P/P 0.00%
OPORTUN FIN C-1 PFD CV P/P 0.00%
OPORTUN FIN D-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%
OPORTUN FIN F PFD CV P/P 0.00%
SEK/USD 06/20/2018 JPMCB 0.00%
SEK/USD 06/20/2018 SSBT 0.00%
SGD/USD 05/16/2018 SSBT 0.00%
EUR/USD 06/20/2018 JPMCB -0.01%

Prior top 10 holdings

Top 10 holdings as of 04/30/18
Bank Of America Corp
Prudential
Citigroup
Assured Guaranty
Aia Group
Goldman Sachs Group The
E*Trade Financial Corp
Kkr Lp
Irb Brasil Resseguros S/A
Insurance Australia Group
Holdings represent 35.05% of portfolio
Top 10 holdings as of 03/31/18
Bank Of America Corp
Prudential
Citigroup
Assured Guaranty
Goldman Sachs Group The
Aia Group
E*Trade Financial Corp
Kkr Lp
Ing Groep Nv
Radian Group
Holdings represent 34.61% of portfolio
Top 10 holdings as of 02/28/18
Bank Of America Corp
Citigroup
Prudential
Assured Guaranty
Goldman Sachs Group The
Aia Group
Kkr Lp
E*Trade Financial Corp
Ing Groep Nv
Blackrock
Holdings represent 35.28% of portfolio
Top 10 holdings as of 01/31/18
Bank Of America Corp
Citigroup
Prudential
Assured Guaranty
Goldman Sachs Group The
Kkr Lp
Aia Group
Ing Groep Nv
E*Trade Financial Corp
Blackrock
Holdings represent 34.93% of portfolio

Portfolio composition as of 04/30/18

Common stock 98.56%
Cash and net other assets 1.37%
Convertible preferred stock 0.07%

Equity statistics as of 04/30/18

Median market cap $11.90B
Weighted average market cap $56.98B
Price to book 1.48
Price to earnings 13.14

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: 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. Financial services companies may be affected by the availability and cost of capital; changes in interest rates, insurance claims activity, industry consolidation and general economic conditions; and reduced profitability from limitations on loans, proprietary trading and interest rates and fees charged as a result of extensive government regulations. The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers, it is vulnerable to common economic forces and may result in greater losses and volatility. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The use of short selling may result in losses if the securities appreciate in value. 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. 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.

Top Industry Sectors as of 04/30/18

Insurance 27.39%
Capital Markets 26.08%
Banks 24.55%
Diversified Financial Services 5.57%
Equity Real Estate Investment Trusts (REITs) 3.62%
IT Services 2.16%
Thrifts & Mortgage Finance 1.99%
Construction & Engineering 1.84%
Real Estate Management & Development 1.64%
 
Other
5.16%
Hotels, Restaurants & Leisure 1.57%
Cash and net other assets 1.37%
Transportation Infrastructure 1.12%
Health Care Providers & Services 1.01%
Consumer Finance 0.09%

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

Sectors will vary over time.

Country Allocation as of 04/30/18

United States 45.20%
United Kingdom 9.24%
Japan 6.87%
France 5.57%
Australia 4.74%
Ireland 3.76%
Hong Kong 3.49%
Brazil 2.73%
Canada 2.70%
 
Other
15.70%
Netherlands 2.68%
Argentina 1.99%
Spain 1.82%
South Africa 1.81%
Singapore 1.65%
Italy 1.64%
Switzerland 1.64%
Cash and net other assets 1.37%
India 1.10%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 2.05% 2.80% 2.80% 2.55% 2.30% 1.80%
What you pay† 1.30% 2.05% 2.05% 1.80% 1.55% 1.05%

† The fund's expense ratio is taken from the most recent prospectus and is subject to change. What you pay reflects Putnam Management's decision to contractually limit expenses through 12/30/18

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R 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 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 MSCI World Financials & Real Estate Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets in the financial and real estate sectors. You cannot invest directly in an index.

Consider these risks before investing: 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. Financial services companies may be affected by the availability and cost of capital; changes in interest rates, insurance claims activity, industry consolidation and general economic conditions; and reduced profitability from limitations on loans, proprietary trading and interest rates and fees charged as a result of extensive government regulations. The fund concentrates on a limited group of industries and is non-diversified. Because the fund may invest in fewer issuers, it is vulnerable to common economic forces and may result in greater losses and volatility. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The use of short selling may result in losses if the securities appreciate in value. 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. 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.