Multi-Cap Core Fund  (PMYAX)

Seeking opportunities across a wide range of stocks

Objective

The fund seeks capital appreciation.

Strategy and process

  • "Go anywhere" approach: The fund invests in stocks of U.S. companies of all sizes, with the flexibility to own both growth and value stocks.
  • A disciplined process: The portfolio manager uses a disciplined bottom-up fundamental investment process that focuses on three buckets of idea generation.
  • Research focus: Backed by an Equity Research team, the portfolio manager uses his stock-picking expertise to identify opportunities and manage risk.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $22.50
0.54% | $0.12
$22.50
11/21/17
$18.63
11/21/16
Historical fund price

Fund facts as of 10/31/17

Total net assets
$545.79M
Turnover (fiscal year end)
76%
Dividend frequency
Annually
Number of holdings
156
Fiscal year-end
April
CUSIP / Fund code
74676P888 / 0076
Inception date
09/24/10
Category
Blend
Open to new investors
Ticker
PMYAX

Management team


Portfolio Manager


Manager commentary | Q3 2017

High valuations are an unreliable correction signal

Portfolio Manager Jerry Sullivan says high stock valuations do not always indicate a market correction is near.


Literature


Just how cheap are European equities?
Our analysis finds that industry group weightings play a significant role in valuation discrepancies between U.S. and European equities.
What could disturb unprecedented calm in markets?
What’s most remarkable about 2017 is the market calm, but this is not a sign that the trend will revert to the mean.
Looking for impact in CEO compensation
It’s important for investors to be able to understand how a company’s performance relates to CEO compensation.

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.

16.94%

Best 5-year annualized return

(for period ending 09/30/16)


11.00%

Worst 5-year annualized return

(for period ending 03/31/16)


14.28%

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: 09/24/10 )
Before sales charge 24.23% 9.49% 15.79% 15.89%
After sales charge 17.09% 7.35% 14.42% 14.91%
Russell 3000 Index 18.71% 10.74% 14.23% --

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 10/31/17 2.06 % -3.81 %
YTD as of 11/20/17 18.16 % 11.37 %

Risk-adjusted performance as of 10/31/17

Alpha (3 yrs.) -1.46
Sharpe ratio (3 yrs.) 0.86
Treynor ratio (3 yrs.) 8.86
Information ratio (3 yrs.) -0.32

Volatility as of 10/31/17

Standard deviation (3 yrs.) 10.96%
Beta 1.06
R-squared 0.94

Capture ratio as of 10/31/17

Up-market (3 yrs.) 102.35
Down-market (3 yrs.) 111.03

Lipper rankings as of 10/31/17

Multi-Cap Core Funds Percentile ranking Rank/Funds in category
1 yr. 6% 41/762
3 yrs. 33% 206/638
5 yrs. 5% 25/561
10 yrs.   --

Morningstar ratings as of 10/31/17

Large Blend Rating Funds in category
Overall (1214)
3 yrs. (1214)
5 yrs. (1078)

Distributions

Record/Ex dividend date 12/07/16
Payable date 12/09/16
Income $0.179
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 10/31/17

Microsoft Corp 3.75%
Bank Of America Corp 2.72%
Apple 2.65%
JPMorgan Chase 2.56%
Alphabet 2.41%
Citigroup 2.38%
Wal-Mart Stores 1.75%
Johnson & Johnson 1.33%
Amgen 1.30%
Morgan Stanley 1.28%
Top 10 holdings, percent of portfolio 22.13%

Full portfolio holdings as of 09/30/17

MICROSOFT CORP 3.36%
BANK OF AMERICA CORP 2.51%
JPMORGAN CHASE & CO 2.43%
APPLE INC 2.42%
CITIGROUP INC 2.35%
WAL-MART STORES INC 1.56%
ALPHABET INC-CL A 1.52%
AMGEN INC 1.36%
JOHNSON & JOHNSON 1.24%
ROYAL DUTCH SHELL-SPON ADR-A 1.23%
MORGAN STANLEY 1.21%
CISCO SYSTEMS INC 1.18%
WALGREENS BOOTS ALLIANCE INC 1.17%
GOLDMAN SACHS GROUP INC 1.15%
BOEING CO/THE 1.04%
CVS HEALTH CORP 0.97%
GILEAD SCIENCES INC 0.96%
BECTON DICKINSON AND CO 0.94%
FACEBOOK INC-A 0.93%
PFIZER INC 0.91%
VISA INC-CLASS A SHARES 0.90%
LAM RESEARCH CORP 0.89%
CELGENE CORP 0.88%
AMAZON.COM INC 0.86%
HOME DEPOT INC 0.85%
COMCAST CORP-CLASS A 0.82%
AMERIPRISE FINANCIAL INC 0.81%
APPLIED MATERIALS INC 0.81%
HUMANA INC 0.76%
LIVE NATION ENTERTAINMENT IN 0.76%
NRG ENERGY INC 0.76%
TEXAS INSTRUMENTS INC 0.76%
ALPHABET INC-CL C 0.75%
ANTHEM INC 0.73%
CAPITAL ONE FINANCIAL CORP 0.73%
CF INDUSTRIES HOLDINGS INC 0.72%
EXELON CORP 0.72%
PULTEGROUP INC 0.72%
INVESCO LTD 0.71%
DELL TECHNOLOGIES INC-CL V 0.70%
CONOCOPHILLIPS 0.69%
PEPSICO INC 0.69%
ROCKWELL AUTOMATION INC 0.69%
BAXTER INTERNATIONAL INC 0.68%
FREEPORT-MCMORAN INC 0.66%
NORFOLK SOUTHERN CORP 0.66%
HANESBRANDS INC 0.65%
STATE STREET CORP 0.65%
ALCOA CORP 0.64%
ENTERPRISE PRODUCTS PARTNERS 0.64%
LAS VEGAS SANDS CORP 0.64%
MCKESSON CORP 0.63%
UNITED RENTALS INC 0.63%
DOWDUPONT INC 0.62%
SUNCOR ENERGY INC 0.62%
VALERO ENERGY CORP 0.61%
CATERPILLAR INC 0.60%
MANPOWERGROUP INC 0.60%
MARATHON OIL CORP 0.60%
COCA-COLA CO/THE 0.59%
JAZZ PHARMACEUTICALS PLC 0.59%
ORACLE CORP 0.58%
WYNDHAM WORLDWIDE CORP 0.58%
CONVERGYS CORP 0.57%
DXC TECHNOLOGY CO 0.57%
FEDEX CORP 0.57%
HONEYWELL INTERNATIONAL INC 0.57%
PENN NATIONAL GAMING INC 0.57%
ENTERGY CORP 0.56%
HP INC 0.56%
LINCOLN NATIONAL CORP 0.56%
OSHKOSH CORP 0.56%
VERIZON COMMUNICATIONS INC 0.56%
ASSURED GUARANTY LTD 0.55%
LEAR CORP 0.55%
NORTHROP GRUMMAN CORP 0.55%
GOODYEAR TIRE & RUBBER CO 0.54%
HCA HEALTHCARE INC 0.54%
TARGET CORP 0.54%
XEROX CORP 0.54%
CISION LTD 0.53%
EXPEDIA INC 0.53%
OWENS CORNING 0.53%
TERADYNE INC 0.53%
CBRE GROUP INC - A 0.52%
CF CORP FORWARD PURCHASE P/P 144A 0.52%
CUMMINS INC 0.52%
HYATT HOTELS CORP - CL A 0.52%
RADIAN GROUP INC 0.52%
AMERICAN INTERNATIONAL GROUP 0.51%
BEST BUY CO INC 0.51%
GENERAL MOTORS CO 0.51%
SYNCHRONY FINANCIAL 0.51%
VERTEX PHARMACEUTICALS INC 0.51%
BIOVERATIV INC 0.50%
CHILDREN'S PLACE INC/THE 0.50%
PLAYA HOTELS & RESORTS NV 0.50%
TOTAL SA-SPON ADR 0.50%
TELEPHONE AND DATA SYSTEMS 0.49%
DELTA AIR LINES INC 0.48%
FIRST DATA CORP- CLASS A 0.48%
ADOBE SYSTEMS INC 0.47%
NOMAD FOODS LTD 0.47%
SOUTHWEST AIRLINES CO 0.47%
TRANSDIGM GROUP INC 0.47%
JABIL INC 0.46%
LOWES COMPANIES INC 0.46%
NCR CORPORATION 0.46%
GAP INC/THE 0.45%
MICHAELS COS INC/THE 0.45%
BLOOMIN' BRANDS INC 0.44%
REGIONS FINANCIAL CORP 0.44%
SPIRIT AEROSYSTEMS HOLD-CL A 0.44%
AMERICAN AIRLINES GROUP INC 0.43%
KKR & CO LP 0.43%
ARCHER-DANIELS-MIDLAND CO 0.42%
ARMADA HOFFLER PROPERTIES IN 0.42%
BYLINE BANCORP INC 0.42%
MCCORMICK & CO-NON VTG SHRS 0.42%
TPG PACE HOLDINGS CORP 0.42%
DELIVERY HERO AG 0.41%
EQT CORP 0.40%
PIRELLI & C. SPA 0.40%
THE EURO EUR CALL ACCOUNT 0.40%
MICRO FOCUS INTL-SPN ADR 0.39%
PHILIP MORRIS INTERNATIONAL 0.39%
UNITED CONTINENTAL HOLDINGS 0.39%
EXPRESS SCRIPTS HOLDING CO 0.37%
VISTA OIL & GAS SAB DE CV 0.37%
EASTERLY ACQUISITION CORP 0.35%
ACTIVISION BLIZZARD INC 0.34%
J. JILL INC 0.34%
RANGER ENERGY SERVICES INC 0.34%
EASTERLY GOVERNMENT PROPERTI 0.32%
AIR CANADA 0.31%
CLOVIS ONCOLOGY INC 0.31%
KAPSTONE PAPER AND PACKAGING 0.30%
SELECT ENERGY SVCS-A-1 0.29%
KOMATSU LTD 0.28%
ECHOSTAR CORP-A 0.27%
MALIBU BOATS INC - A 0.27%
BMC STOCK HOLDINGS INC 0.26%
GARDNER DENVER HOLDINGS INC 0.26%
KENNEDY-WILSON HOLDINGS INC 0.26%
EDGEWELL PERSONAL CARE CO 0.25%
TOTAL SYSTEM SERVICES INC 0.25%
ALIGNVEST ACQUISITION II C-A 0.24%
FEDERAL STREET ACQUISITION 0.24%
BECTON DICKINSON AND CO 06.1250 CV PFD 0.20%
DISH NETWORK CORP-A 0.19%
CF CORPORATION - CLASS A 0.18%
ENSERVCO CORP 0.13%
GORES HOLDINGS II INC 0.11%
FORTERRA INC 0.06%
ALIGNVEST ACQUISITION - CW 0.01%
CISION LTD - CW22 0.01%
EASTERLY ACQ CORP - CW20 0.01%
VISTA OIL & GAS -CW22 0.01%
FABFURNISH GMBH P/P 0.00%
GLOBAL FASHION GRP P/P 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 0.00%
POUND STERLING CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
Microsoft Corp
Bank Of America Corp
Apple
JPMorgan Chase
Alphabet
Citigroup
Wal-Mart Stores
Johnson & Johnson
Amgen
Morgan Stanley
Holdings represent 22.13% of portfolio
Top 10 holdings as of 09/30/17
Microsoft Corp
Bank Of America Corp
JPMorgan Chase
Apple
Citigroup
Alphabet
Wal-Mart Stores
Amgen
Johnson & Johnson
Royal Dutch Shell
Holdings represent 20.73% of portfolio
Top 10 holdings as of 08/31/17
Microsoft Corp
Apple
Bank Of America Corp
Alphabet
JPMorgan Chase
Citigroup
Wal-Mart Stores
Johnson & Johnson
Amgen
Walgreens Boots Alliance
Holdings represent 21.40% of portfolio
Top 10 holdings as of 07/31/17
Microsoft
Alphabet
Bank of America
Apple
JPMorgan Chase
Citigroup
Johnson & Johnson
Wal-Mart Stores
Walgreens Boots Alliance
Amgen
Holdings represent 21.98% of portfolio

Portfolio composition as of 10/31/17

Common stock 98.47%
Cash and net other assets 1.32%
Convertible preferred stock 0.21%

Equity statistics as of 10/31/17

Median market cap $19.61B
Weighted average market cap $150.84B
Price to book 2.60
Price to earnings 15.97

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 value stocks may fail to rebound. 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 10/31/17

Information technology 22.49%
Financials 19.61%
Consumer discretionary 14.13%
Health care 11.32%
Industrials 9.83%
Consumer staples 6.54%
Energy 6.38%
Materials 3.30%
Real estate 2.01%
 
Other
4.39%
Utilities 1.99%
Cash and net other assets 1.32%
Telecommunication services 1.08%

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.


Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 1.03% 1.78% 1.78% 1.53% 1.28% 0.78%
What you pay 1.03% 1.78% 1.78% 1.53% 1.28% 0.78%

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 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: 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. 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.