Multi-Cap Growth Fund  (PNOPX)

A flexible approach to seeking companies growing faster than the market

Objective

The fund seeks long-term capital appreciation.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $90.09
-0.13% | $-0.12
$90.21
10/16/17
$69.08
11/04/16
Historical fund price

Fund facts as of 09/30/17

Total net assets
$4,182.39M
Turnover (fiscal year end)
76%
Dividend frequency
Annually
Number of holdings
121
Fiscal year end
June
CUSIP / Fund code
746916105 / 0031
Inception Date
08/31/90
Category
Growth
Open to new investors
Ticker
PNOPX

Management team


Portfolio Manager

Portfolio Manager, Analyst

Strategy and process

  • Multi-cap flexibility: The fund invests in U.S. companies of all sizes, targeting those with a competitive edge and strong earnings and cash flows that can lead to better growth potential.
  • A thematic approach: The portfolio manager combines top-down investment themes with bottom-up research to select securities that can benefit from growth trends.
  • Rigorous analysis: Backed by fundamental research, the portfolio manager seeks to take advantage of market opportunities and differentiated views.

Literature


Why a meaningful near-term market correction is unlikely
2017 is a rare year without a stock market correction of at least 5%, but that doesn't make a correction more likely in the fourth quarter.
How the Japan election may influence global interest rates
The Japan election could have consequences for the future leadership of the Bank of Japan and the country's impact on global interest rate trends.
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.

Performance

  • 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 22.65% 11.08% 15.35% 7.78%
After sales charge 15.60% 8.91% 13.99% 7.14%
Russell 3000 Growth Index 21.87% 12.65% 15.18% 9.03%

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 1.50 % -4.34 %
YTD as of 10/17/17 23.78 % 16.67 %

Risk-adjusted performance as of 09/30/17

Alpha (3 yrs.) -2.35
Sharpe ratio (3 yrs.) 0.94
Treynor ratio (3 yrs.) 10.18
Information ratio (3 yrs.) -0.68

Volatility as of 09/30/17

Standard deviation (3 yrs.) 11.50%
Beta 1.06
R-squared 0.96

Capture ratio as of 09/30/17

Up-market (3 yrs.) 101.05
Down-market (3 yrs.) 117.50

Lipper rankings as of 09/30/17

Multi-Cap Growth Funds Percentile ranking Rank/Funds in category
1 yr. 24% 124/532
3 yrs. 37% 174/474
5 yrs. 21% 86/411
10 yrs. 42% 121/292

Morningstar ratings as of 09/30/17

Large Growth Rating Funds in category
Overall (1259)
3 yrs. (498)
5 yrs. (1125)
10 yrs. (800)

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

Alphabet 5.80%
Microsoft Corp 3.97%
Amazon.Com 3.61%
Visa 3.50%
Facebook 3.36%
Apple 3.23%
Northrop Grumman Corp 2.60%
Becton Dickinson And 2.57%
Norfolk Southern Corp 2.34%
Bank Of America Corp 2.26%
Top 10 holdings, percent of portfolio 33.24%

Full portfolio holdings as of 06/30/17

ALPHABET INC-CL C 5.70%
APPLE INC 4.01%
MICROSOFT CORP 3.81%
AMAZON.COM INC 3.77%
VISA INC-CLASS A SHARES 3.53%
NORFOLK SOUTHERN CORP 2.88%
FACEBOOK INC-A 2.71%
BECTON DICKINSON AND CO 2.65%
NORTHROP GRUMMAN CORP 2.40%
HOME DEPOT INC 2.04%
DANAHER CORP 2.00%
BANK OF AMERICA CORP 1.77%
WALGREENS BOOTS ALLIANCE INC 1.75%
ALIBABA GROUP HOLDING-SP ADR 1.72%
AGILENT TECHNOLOGIES INC 1.57%
JOHNSON CONTROLS INTERNATION 1.56%
BROADCOM LTD 1.47%
UNITEDHEALTH GROUP INC 1.44%
SCHWAB (CHARLES) CORP 1.36%
ADOBE SYSTEMS INC 1.30%
UNITED TECHNOLOGIES CORP 1.27%
INTUITIVE SURGICAL INC 1.25%
BOSTON SCIENTIFIC CORP 1.18%
CELGENE CORP 1.15%
CHARTER COMMUNICATIONS INC-A 1.09%
PRICELINE GROUP INC/THE 1.07%
SALESFORCE.COM INC 1.03%
FIDELITY NATIONAL INFO SERV 1.02%
SHERWIN-WILLIAMS CO/THE 1.00%
CONSTELLATION BRANDS INC-A 0.97%
BIOGEN INC 0.94%
SYMRISE AG 0.94%
HUMANA INC 0.93%
PEPSICO INC 0.91%
LIVE NATION ENTERTAINMENT IN 0.90%
ALBEMARLE CORP 0.87%
COMCAST CORP-CLASS A 0.86%
APPLIED MATERIALS INC 0.85%
MIDDLEBY CORP 0.80%
SYNCHRONY FINANCIAL 0.78%
EXPEDIA INC 0.75%
WASTE CONNECTIONS INC 0.74%
HALLIBURTON CO 0.73%
JAZZ PHARMACEUTICALS PLC 0.71%
HILTON WORLDWIDE HOLDINGS IN 0.70%
SEALED AIR CORP 0.70%
INVESCO LTD 0.68%
TENCENT HOLDINGS LTD 0.65%
GAMING AND LEISURE PROPERTIE 0.63%
PACWEST BANCORP 0.63%
ADIDAS AG 0.62%
W.R. GRACE & CO 0.61%
CUMMINS INC 0.60%
FORTUNE BRANDS HOME & SECURI 0.60%
LAS VEGAS SANDS CORP 0.60%
PULTEGROUP INC 0.60%
DOVER CORP 0.59%
FORTIVE CORP 0.59%
REGENERON PHARMACEUTICALS 0.59%
PRUDENTIAL PLC 0.56%
DAVE & BUSTER'S ENTERTAINMEN 0.53%
PROOFPOINT INC 0.50%
STERICYCLE INC 0.50%
WALT DISNEY CO/THE 0.50%
AIRBUS SE 0.49%
MONSTER BEVERAGE CORP 0.49%
RPC GROUP PLC 0.49%
EOG RESOURCES INC 0.48%
LINDBLAD EXPEDITIONS HOLDING 0.48%
NVIDIA CORP 0.47%
PLAINS GP HOLDINGS LP-CL A 0.47%
SUMMIT MATERIALS INC -CL A 0.47%
SUNCOR ENERGY INC 0.47%
CLOVIS ONCOLOGY INC 0.45%
QORVO INC 0.44%
CHENIERE ENERGY INC 0.43%
ULTA BEAUTY INC 0.43%
IHS MARKIT LTD 0.42%
BWX TECHNOLOGIES INC 0.41%
MICRON TECHNOLOGY INC 0.41%
REALPAGE INC 0.41%
LOGMEIN INC 0.40%
YUM CHINA HOLDINGS INC 0.40%
COLGATE-PALMOLIVE CO 0.39%
KION GROUP AG 0.37%
DENTSPLY SIRONA INC 0.36%
SERVICENOW INC 0.34%
HAMILTON LANE INC-CLASS A 0.33%
KLA-TENCOR CORP 0.33%
DISH NETWORK CORP-A 0.30%
BIOVERATIV INC 0.28%
INSTRUCTURE INC 0.28%
CAVIUM INC 0.27%
GENMARK DIAGNOSTICS INC 0.27%
BIO-RAD LABORATORIES-A 0.26%
HOYA CORP 0.26%
PENUMBRA INC 0.26%
WISDOMTREE INVESTMENTS INC 0.26%
T-MOBILE US INC 0.20%
BECTON DICKINSON AND CO 06.1250 CV PFD 0.18%
DELIVERY HERO HOLDIN P/P 0.18%
SELECT ENERGY SVCS 0.17%
OPORTUN FIN CORP P/P SERIES H PFD 0.15%
PEGASYSTEMS INC 0.15%
CARDIOME PHARMA CORP 0.10%
OKTA INC 0.07%
OVID THERAPEUTICS INC - RESTRICTED 0.07%
OPORTUN FIN G-1 PFD CV P/P 0.05%
OPORTUN FIN CORP P/P 0.04%
OPORTUN FIN F-1 PFD CV P/P 0.04%
GLOBAL FASHION GRP P/P 0.02%
OPORTUN FIN C-1 PFD CV P/P 0.01%
OPORTUN FIN D-1 PFD CV P/P 0.01%
OPORTUN FIN F PFD CV P/P 0.01%
RE/MAX HOLDINGS INC-CL A 0.01%
CANADIAN DOLLAR ACCOUNT 0.00%
EUR/USD 09/20/2017 UBS 0.00%
FABFURNISH GMBH P/P 0.00%
KOREAN WON CALL ACCOUNT 0.00%
NASDAQ 100 E-MINI SEP17 NQU7 0.00%
NEURALSTEM INC SERIES K COMMON STOCK PURCHASE WARRANT 0.00%
NEW BIGFOOT OTHER AS P/P 0.00%
NEW MIDDLE EAST OTHE P/P 0.00%
OPORTUN FIN A-1 PFD CV P/P 0.00%
OPORTUN FIN B-1 PFD CV P/P 0.00%
OPORTUN FIN E-1 PFD CV P/P 0.00%
POUND STERLING CALL ACCOUNT 0.00%
RUSSELL 2000 MINI SEP17 RTAU7 0.00%
S&P MID 400 EMINI SEP17 FAU7 0.00%
S&P500 EMINI FUT SEP17 ESU7 0.00%
UNEXT.COM LLC CORP (PRIVATE) P/P 0.00%
EUR/USD 09/20/2017 JPMCB -0.01%
GBP/USD 09/20/2017 BANKAM -0.01%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
Alphabet
Microsoft Corp
Amazon.Com
Visa
Facebook
Apple
Northrop Grumman Corp
Becton Dickinson And
Norfolk Southern Corp
Bank Of America Corp
Holdings represent 33.24% of portfolio
Top 10 holdings as of 08/31/17
Alphabet
Apple
Microsoft Corp
Amazon.Com
Visa
Facebook
Becton Dickinson And
Northrop Grumman Corp
Norfolk Southern Corp
Alibaba Group Holding
Holdings represent 34.16% of portfolio
Top 10 holdings as of 07/31/17
Alphabet
Microsoft Corp
Apple
Amazon.Com
Facebook
Visa
Becton Dickinson And
Norfolk Southern Corp
Northrop Grumman Corp
Home Depot The
Holdings represent 33.91% of portfolio
Top 10 holdings as of 06/30/17
Alphabet
Apple
Microsoft Corp
Amazon.Com
Visa
Norfolk Southern Corp
Becton Dickinson And
Facebook
Northrop Grumman Corp
Home Depot The
Holdings represent 33.68% of portfolio

Portfolio composition as of 09/30/17

Common stock 98.01%
Cash and net other assets 1.77%
Convertible preferred stock 0.22%

Equity statistics as of 09/30/17

Median market cap $15.32B
Weighted average market cap $186.31B
Price to book 4.54
Price to earnings 22.80

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Stock values may fall or fail to rise over time for a variety of reasons, including general financial market conditions and factors related to a specific issuer or industry. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Investments in small and/or midsize companies increase the risk of greater price fluctuations. You can lose money by investing in the fund.

Top Industry Sectors as of 09/30/17

Information technology 35.30%
Health care 17.09%
Consumer discretionary 15.23%
Industrials 13.60%
Financials 6.87%
Materials 4.32%
Consumer staples 3.21%
Energy 2.02%
Cash and net other assets 1.77%
 
Other
0.59%
Real estate 0.59%

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 1.05% 1.80% 1.80% 1.55% 1.30% 0.80%
What you pay 1.05% 1.80% 1.80% 1.55% 1.30% 0.80%

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 Growth Index is an unmanaged index of those companies in the broad-market Russell 3000 Index chosen for their growth orientation. You cannot invest directly in an index.

Stock values may fall or fail to rise over time for a variety of reasons, including general financial market conditions and factors related to a specific issuer or industry. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Investments in small and/or midsize companies increase the risk of greater price fluctuations. You can lose money by investing in the fund.