Global Industrials Fund  (PGIAX)

Pursuing investment opportunities in industrial products, services, and equipment companies worldwide

Morningstar ratings as of 10/31/17
Industrials (funds in category)
Overall
(43)
3 yrs.
(43)
5 yrs.
(40)

Objective

The fund seeks capital appreciation.

Strategy and process

  • A dynamic sector: From aerospace and trucking to infrastructure, the fund invests in industries that can profit from the global demand for industrial products and 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 $22.74
0.84% | $0.19
$22.74
12/13/17
$18.23
12/30/16
Historical fund price

Fund facts as of 11/30/17

Total net assets
$85.83M
Turnover (fiscal year end)
275%
Dividend frequency
Annually
Number of holdings
37
Fiscal year-end
August
CUSIP / Fund code
746764646 / 0068
Inception date
12/18/08
Category
Global Sector
Open to new investors
Ticker
PGIAX

Management team


Portfolio Manager, Analyst


Literature


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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.

25.73%

Best 5-year annualized return

(for period ending 03/31/14)


8.40%

Worst 5-year annualized return

(for period ending 03/31/16)


15.53%

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. Life (inception: 12/18/08 )
Before sales charge 17.72% 11.75% 16.61% 15.73%
After sales charge 10.95% 9.56% 15.23% 14.96%
MSCI World Industrials Index (ND) 21.65% 10.10% 13.10% --

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 11/30/17 2.17 % -3.71 %
YTD as of 12/13/17 24.74 % 17.57 %

Risk-adjusted performance as of 10/31/17

Alpha (3 yrs.) 3.60
Sharpe ratio (3 yrs.) 1.20
Treynor ratio (3 yrs.) 14.43
Information ratio (3 yrs.) 0.42

Volatility as of 10/31/17

Standard deviation (3 yrs.) 10.07%
Beta 0.83
R-squared 0.82

Capture ratio as of 10/31/17

Up-market (3 yrs.) 88.98
Down-market (3 yrs.) 61.35

Morningstar ratings as of 10/31/17

Industrials Rating Funds in category
Overall (43)
3 yrs. (43)
5 yrs. (40)

Distributions

Record/Ex dividend date 12/22/16
Payable date 12/27/16
Income $0.418
Extra income $0.0
Short-term cap. gain $0.053
Long-term cap. gain $0.125

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 10/31/17

Raytheon 6.38%
Northrop Grumman Corp 6.07%
Komatsu 4.86%
Roper Technologies 4.85%
Honeywell International 4.79%
Kion Group Ag 4.26%
Caterpillar 4.25%
Johnson Controls International 3.80%
Boeing The 3.79%
Abb Limited 3.75%
Top 10 holdings, percent of portfolio 46.80%

Full portfolio holdings as of 09/30/17

RAYTHEON COMPANY 6.06%
NORTHROP GRUMMAN CORP 5.65%
CATERPILLAR INC 5.57%
FORTIVE CORP 5.16%
KOMATSU LTD 4.88%
JOHNSON CONTROLS INTERNATION 4.85%
ROPER TECHNOLOGIES INC 4.59%
KION GROUP AG 4.57%
SIEMENS AG 4.45%
NORFOLK SOUTHERN CORP 4.40%
DOVER CORP 4.32%
BOEING CO/THE 4.24%
CUMMINS INC 4.09%
ROCKWELL AUTOMATION INC 4.01%
WASTE CONNECTIONS INC 3.49%
AIRBUS SE 3.36%
HONEYWELL INTERNATIONAL INC 3.31%
L3 TECHNOLOGIES INC 3.30%
ABB LTD-REG 3.10%
MITSUBISHI CORP 2.22%
HARRIS CORP 2.09%
AMERICAN AIRLINES GROUP INC 2.08%
FANUC LTD 1.87%
BAE SYSTEMS PLC 1.61%
TECHTRONIC INDUSTRIES CO LTD 1.52%
CHENIERE ENERGY INC 1.01%
NIDEC CORP 0.67%
DAIKIN INDUSTRIES LTD 0.58%
CALYXT INC 0.49%
GE 20171215 C 26.00BCBP 0.06%
EUR/USD 12/20/2017 HSBCB 0.04%
GBP/USD 12/20/2017 CSI-FX 0.03%
DKK/USD 12/20/2017 CITI 0.02%
EUR/USD 12/20/2017 CSI-FX 0.01%
GBP/USD 12/20/2017 CITI 0.01%
GBP/USD 12/20/2017 JPMCB 0.01%
JPY/USD 11/15/2017 JPMCB 0.01%
JPY/USD 11/15/2017 SSBT 0.01%
SEK/USD 12/20/2017 JPMCB 0.01%
SEK/USD 12/20/2017 SSBT 0.01%
AUD/USD 10/18/2017 BANKAM 0.00%
AUD/USD 10/18/2017 GSFX 0.00%
CAD/USD 10/18/2017 JPMCB 0.00%
CAD/USD 10/18/2017 SSBT 0.00%
CHF/USD 12/20/2017 BCAP-FX 0.00%
EUR/USD 12/20/2017 JPMCB 0.00%
HKD/USD 11/15/2017 BCAP-FX 0.00%
ILS/USD 10/18/2017 SSBT 0.00%
JPY/USD 11/15/2017 BANKAM 0.00%
JPY/USD 11/15/2017 CITI 0.00%
JPY/USD 11/15/2017 GSFX 0.00%
KOREAN WON CALL ACCOUNT 0.00%
NZD/USD 10/18/2017 BANKAM 0.00%
SEK/USD 12/20/2017 CSI-FX 0.00%
SGD/USD 11/15/2017 JPMCB 0.00%
THE EURO EUR CALL ACCOUNT 0.00%
CHF/USD 12/20/2017 SSBT -0.01%
EUR/USD 12/20/2017 GSFX -0.01%
GBP/USD 12/20/2017 SSBT -0.01%
POUND STERLING CALL ACCOUNT -0.56%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
Raytheon
Northrop Grumman Corp
Komatsu
Roper Technologies
Honeywell International
Kion Group Ag
Caterpillar
Johnson Controls International
Boeing The
Abb Limited
Holdings represent 46.80% of portfolio
Top 10 holdings as of 09/30/17
Raytheon
Northrop Grumman Corp
Caterpillar
Fortive Corp
Komatsu
Johnson Controls International
Roper Technologies
Kion Group Ag
Siemens Ag
Norfolk Southern Corp
Holdings represent 50.18% of portfolio
Top 10 holdings as of 08/31/17
Siemens Ag
Raytheon
Northrop Grumman Corp
Johnson Controls International
Norfolk Southern Corp
United Technologies Corp
Fortive Corp
Caterpillar
Dover Corp
Kion Group Ag
Holdings represent 52.93% of portfolio
Top 10 holdings as of 07/31/17
Siemens Ag
Raytheon
Northrop Grumman Corp
Cummins Engine Company,
United Technologies Corp
Fortive Corp
L3 Technologies
Komatsu
Caterpillar
Kion Group Ag
Holdings represent 54.66% of portfolio

Portfolio composition as of 10/31/17

Common stock 96.46%
Cash and net other assets 3.54%

Equity statistics as of 10/31/17

Median market cap $29.36B
Weighted average market cap $46.04B
Price to book 3.61
Price to earnings 19.17

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

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. Industrial products, services, and equipment industries may be affected by economic trends, commodity prices, technological obsolescence, labor relations, legislation, worldwide competition, and liability for environmental damage. 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, changing market perceptions, changes in government intervention in financial markets, and factors related to a specific issuer or industry. You can lose money by investing in the fund.

Top Industry Sectors as of 10/31/17

Machinery 27.75%
Aerospace & Defense 22.43%
Electrical Equipment 13.78%
Industrial Conglomerates 12.58%
Building Products 5.89%
Cash and net other assets 3.54%
Commercial Services & Supplies 3.43%
Road & Rail 3.31%
Trading Companies & Distributors 2.26%
 
Other
5.03%
Communications Equipment 1.52%
Oil, Gas & Consumable Fuels 1.05%
Airlines 0.85%
Internet Software & Services 0.52%
Household Durables 0.52%
Metals & Mining 0.49%
Biotechnology 0.05%
Transportation Infrastructure 0.03%

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.

Country Allocation as of 10/31/17

United States 65.26%
Japan 12.91%
Germany 7.69%
Switzerland 3.75%
Cash and net other assets 3.54%
Canada 3.43%
France 1.83%
United Kingdom 1.07%
Hong Kong 0.52%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 1.97% 2.72% 2.72% 2.47% 2.22% 1.72%
What you pay† 1.29% 2.04% 2.04% 1.79% 1.54% 1.04%

† 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 12/30/17

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. 0.00% 5.00% 1.00% -- -- --
2 yrs. -- 4.00% 0.50% -- -- --
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 MSCI World Industrials Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets in the industrial sector. You cannot invest directly in an index.

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. Industrial products, services, and equipment industries may be affected by economic trends, commodity prices, technological obsolescence, labor relations, legislation, worldwide competition, and liability for environmental damage. 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, changing market perceptions, changes in government intervention in financial markets, and factors related to a specific issuer or industry. You can lose money by investing in the fund.