Global Telecommunications Fund  (PGBZX)

Pursuing investment opportunities in telecommunications-related companies worldwide

Objective

The fund seeks capital appreciation.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $15.87
0.89% | $0.14
$16.10
08/07/17
$13.75
11/14/16
Historical fund price

Fund facts as of 08/31/17

Total net assets
$27.24M
Turnover (fiscal year end)
49%
Dividend frequency
Annually
Number of holdings
21
Fiscal year end
August
CUSIP / Fund code
746764513 / 0070
Inception Date
12/18/08
Category
Global Sector
Open to new investors
Ticker
PGBZX

Management team


Portfolio Manager, Analyst

Strategy and process

  • A dynamic sector: From wire-line telephones and mobile devices to fiber-optic cable, the fund invests in industries that can profit from the global demand for telecommunications products and services.
  • A global approach: To seek the best opportunities, the fund 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.

Literature


Using and enhancing ESG investment data
ESG data is having investment impact but is still evolving, and stands to benefit from feedback offered by fundamental analysts.
Why there's nothing wrong with a "just right" market
When assessing the markets and economy the media often looks for drama, but headlines are our least-used investment tool.
Value benefits from an expanding economy
Value stocks have lagged the market in 2017, but if the economy continues to expand, rates rise, and the yield curve steepens, this trend could reverse.

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.

21.42%

Best 5-year annualized return

(for period ending 03/31/14)


9.64%

Worst 5-year annualized return

(for period ending 06/30/16)


14.05%

Average 5-year annualized return


  • Total return (%) as of 06/30/17

  • Annual performance as of 06/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. Life (inception: 12/18/08 )
Before sales charge 9.10% 4.05% 10.52% 12.22%
After sales charge 2.82% 2.01% 9.22% 11.45%
MSCI World Telecommunications Services Index (ND) -3.78% 1.28% 7.17% --

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 08/31/17 0.50 % -5.28 %
YTD as of 09/19/17 12.79 % 6.31 %

Risk-adjusted performance as of 08/31/17

Alpha (3 yrs.) 5.52
Sharpe ratio (3 yrs.) 0.67
Treynor ratio (3 yrs.) 9.14
Information ratio (3 yrs.) 0.81

Volatility as of 08/31/17

Standard deviation (3 yrs.) 10.84%
Beta 0.79
R-squared 0.72

Capture ratio as of 08/31/17

Up-market (3 yrs.) 97.53
Down-market (3 yrs.) 63.29

Morningstar ratings as of 08/31/17

Communications Rating Funds in category
Overall (32)
3 yrs. (32)
5 yrs. (31)

Distributions

Record/Ex dividend date 12/22/16
Payable date 12/27/16
Income $0.566
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 08/31/17

AT&T 9.44%
Softbank Group Corp 9.35%
Charter Communications 6.21%
Kddi Corp 6.09%
Interxion Holding Nv 4.87%
Com Hem Holding 4.79%
Vodafone Group 4.71%
Telecom Italia Spa/Milano 4.66%
American Tower Corp 4.51%
Altice Nv 4.50%
Top 10 holdings, percent of portfolio 59.13%

Full portfolio holdings as of 06/30/17

AT&T INC 12.16%
SOFTBANK GROUP CORP 9.85%
VERIZON COMMUNICATIONS INC 7.33%
KDDI CORP 6.32%
ALTICE NV - A 4.77%
COM HEM HOLDING AB 4.73%
TELECOM ITALIA-RSP 4.68%
INTERXION HOLDING NV 4.56%
CHARTER COMMUNICATIONS INC-A 4.51%
CELLNEX TELECOM SAU 4.14%
T-MOBILE US INC 4.13%
COMCAST CORP-CLASS A 4.09%
EUSKALTEL SA 3.80%
LIBERTY GLOBAL PLC- C 3.64%
LIVE NATION ENTERTAINMENT IN 3.57%
SPRINT CORP 3.40%
TIM PARTICIPACOES SA-ADR 3.18%
AMERICAN TOWER CORP 3.04%
FIDELITY NATIONAL INFO SERV 2.46%
GBP/USD 09/20/2017 BANKAM 0.03%
CHF/USD 09/20/2017 CSI-FX 0.01%
EUR/USD 09/20/2017 JPMCB 0.01%
GBP/USD 09/20/2017 CITI 0.01%
GBP/USD 09/20/2017 SSBT 0.01%
SGD/USD 08/16/2017 JPMCB 0.01%
AUD/USD 07/19/2017 BANKAM 0.00%
AUD/USD 07/19/2017 SSBT 0.00%
AUD/USD 07/19/2017 WPAC 0.00%
CAD/USD 07/19/2017 CSI-FX 0.00%
CAD/USD 07/19/2017 HSBCB 0.00%
CAD/USD 07/19/2017 JPMCB 0.00%
CAD/USD 07/19/2017 UBS 0.00%
CAD/USD 07/19/2017 WPAC 0.00%
CHF/USD 09/20/2017 JPMCB 0.00%
CHF/USD 09/20/2017 UBS 0.00%
DKK/USD 09/20/2017 CITI 0.00%
EUR/USD 09/20/2017 CSI-FX 0.00%
EUR/USD 09/20/2017 HSBCB 0.00%
GBP/USD 09/20/2017 JPMCB 0.00%
HKD/USD 08/16/2017 BCAP-FX 0.00%
ILS/USD 07/19/2017 SSBT 0.00%
JPY/USD 08/16/2017 CITI 0.00%
JPY/USD 08/16/2017 GSFX 0.00%
JPY/USD 08/16/2017 JPMCB 0.00%
JPY/USD 08/16/2017 SSBT 0.00%
NOK/USD 09/20/2017 CSI-FX 0.00%
NOK/USD 09/20/2017 JPMCB 0.00%
NOK/USD 09/20/2017 SSBT 0.00%
NZD/USD 07/19/2017 CSI-FX 0.00%
NZD/USD 07/19/2017 GSFX 0.00%
SFR GROUP SA 0.00%
SGD/USD 08/16/2017 BANKAM 0.00%
EUR/USD 09/20/2017 BANKAM -0.01%
JPY/USD 08/16/2017 WPAC -0.01%
SEK/USD 09/20/2017 BANKAM -0.01%
SEK/USD 09/20/2017 CSI-FX -0.01%
SEK/USD 09/20/2017 JPMCB -0.01%
SEK/USD 09/20/2017 SSBT -0.01%
EUR/USD 09/20/2017 GSFX -0.02%
EUR/USD 09/20/2017 CITI -0.03%

Prior top 10 holdings

Top 10 holdings as of 08/31/17
AT&T
Softbank Group Corp
Charter Communications
Kddi Corp
Interxion Holding Nv
Com Hem Holding
Vodafone Group
Telecom Italia Spa/Milano
American Tower Corp
Altice Nv
Holdings represent 59.13% of portfolio
Top 10 holdings as of 07/31/17
AT&T
Softbank Group Corp
Charter Communications
Kddi Corp
Telecom Italia Spa/Milano
Altice Nv
Vodafone Group
Com Hem Holding
Interxion Holding Nv
Verizon Communications
Holdings represent 59.44% of portfolio
Top 10 holdings as of 06/30/17
AT&T
Softbank Group Corp
Verizon Communications
Kddi Corp
Altice Nv
Com Hem Holding
Telecom Italia Spa/Milano
Interxion Holding Nv
Charter Communications
Cellnex Telecom
Holdings represent 63.05% of portfolio
Top 10 holdings as of 05/31/17
AT&T
Softbank Group Corp
Verizon Communications
Kddi Corp
Telecom Italia Spa/Milano
Com Hem Holding
Sfr Group
Charter Communications
T-Mobile Us
Interxion Holding Nv
Holdings represent 64.40% of portfolio

Portfolio composition as of 08/31/17

Common stock 101.21%
Cash and net other assets -1.21%

Equity statistics as of 08/31/17

Median market cap $36.39B
Weighted average market cap $83.68B
Price to book 2.50
Price to earnings 19.55

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. The telecommunications industry may be affected by government regulation, intense competition, equipment incompatibility, changing consumer preferences, technological obsolescence, and large capital expenditures and debt burdens. 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 08/31/17

Wireless Telecommunication Services 33.75%
Diversified Telecommunication Services 30.82%
Media 22.23%
IT Services 7.40%
Equity Real Estate Investment Trusts (REITs) 4.51%
Internet Software & Services 2.50%
Cash and net other assets -1.21%

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 08/31/17

United States 42.21%
Japan 15.44%
Netherlands 9.38%
United Kingdom 8.35%
Spain 7.67%
Sweden 4.79%
Italy 4.66%
Brazil 3.61%
Turkey 2.60%
 
Other
1.29%
China 2.50%
Cash and net other assets -1.21%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 1.60% 2.35% 2.35% 2.10% 1.85% 1.35%
What you pay† 1.31% 2.06% 2.06% 1.81% 1.56% 1.06%

† 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% 0.00% -- -- --
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 MSCI World Telecommunications Services Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets in the telecommunications sector. 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. The telecommunications industry may be affected by government regulation, intense competition, equipment incompatibility, changing consumer preferences, technological obsolescence, and large capital expenditures and debt burdens. 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.