Low Volatility Equity Fund (Class A)  (PLVEX)

Pursuing returns comparable to the U.S. stock market, but with lower volatility over a market cycle

Highlights

Objective

The fund seeks a total return comparable to that of the U.S. equity market, but with lower volatility, over a market cycle (generally at least three years or more).

Strategy and process

  • Low-beta stocks: The fund invests in low-beta stocks, which have historically provided better risk-adjusted returns than the overall stock market.
  • Sector diversity: The fund seeks to capitalize on a diverse range of low-beta stocks across all sectors rather than simply overweighting low-beta sectors.
  • Option strategies: The veteran management team employs options strategies that can improve performance and reduce risk.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $12.08
0.00% | $0.00
$12.58
01/26/18
$11.07
05/17/17
Historical fund price

Fund facts as of 03/31/18

Total net assets
$24.35M
Turnover (fiscal year end)
47%
Dividend frequency
Annually
Number of holdings
150
Fiscal year-end
July
CUSIP / Fund code
74676A642 / 084
Inception date
03/18/13
Category
Blend
Open to new investors
Ticker
PLVEX

Management team

Chief Investment Officer, Global Asset Allocation
Portfolio Manager



Performance

  • 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: 03/18/13 )
Before sales charge 9.99% 4.36% 6.30% 6.59%
After sales charge 3.66% 2.32% 5.05% 5.35%
S&P 500 Index 13.99% 10.78% 13.31% --

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 03/31/18 -0.33 % -6.06 %
YTD as of 04/25/18 0.33 % -5.44 %

Risk-adjusted performance as of 03/31/18

Alpha (3 yrs.) -1.52
Sharpe ratio (3 yrs.) 0.65
Treynor ratio (3 yrs.) 7.42
Information ratio (3 yrs.) -1.16

Volatility as of 03/31/18

Standard deviation (3 yrs.) 6.01%
Beta 0.53
R-squared 0.78

Capture ratio as of 03/31/18

Up-market (3 yrs.) 49.76
Down-market (3 yrs.) 60.14

Lipper rankings as of 03/31/18

Large-Cap Core Funds Percentile ranking Rank/Funds in category
1 yr. 81% 650/802
3 yrs. 97% 671/694
5 yrs. 100% 624/628
10 yrs.   --

Morningstar ratings as of 03/31/18

Large Blend Rating Funds in category
Overall (1204)
3 yrs. (1204)
5 yrs. (1077)

Distributions

Record/Ex dividend date 12/06/17
Payable date 12/08/17
Income $0.167
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 03/31/18

JPMorgan Chase 2.71%
Alphabet 2.19%
Northrop Grumman Corp 1.85%
Raytheon 1.85%
Apple 1.82%
Mcdonald'S Corp 1.78%
Time Warner 1.77%
Pnc Financial Services Group The 1.72%
Intuit 1.71%
Texas Instruments 1.70%
Top 10 holdings, percent of portfolio 19.10%

Full portfolio holdings as of 12/31/17

JOHNSON & JOHNSON 2.95%
JPMORGAN CHASE & CO 2.69%
PFIZER INC 2.26%
MCDONALD'S CORP 2.12%
TEXAS INSTRUMENTS INC 2.12%
APPLE INC 2.05%
UNITEDHEALTH GROUP INC 1.95%
ALTRIA GROUP INC 1.86%
APPLIED MATERIALS INC 1.82%
PNC FINANCIAL SERVICES GROUP 1.81%
INTUIT INC 1.79%
RAYTHEON COMPANY 1.76%
NORFOLK SOUTHERN CORP 1.70%
DANAHER CORP 1.67%
HONEYWELL INTERNATIONAL INC 1.66%
NORTHROP GRUMMAN CORP 1.66%
EBAY INC 1.63%
EXXON MOBIL CORP 1.63%
HUMANA INC 1.56%
LOWES COMPANIES INC 1.47%
WALT DISNEY CO/THE 1.44%
SHERWIN-WILLIAMS CO/THE 1.43%
ZOETIS INC 1.42%
KIMBERLY-CLARK CORP 1.40%
AUTOMATIC DATA PROCESSING 1.38%
TJX COMPANIES INC 1.34%
CBS CORP-CLASS B NON VOTING 1.27%
ALLSTATE CORP 1.22%
SPDR S&P 500 ETF TRUST 1.18%
ALPHABET INC-CL A 1.14%
AFLAC INC 1.11%
JUNIPER NETWORKS INC 1.09%
ROSS STORES INC 1.09%
VERIZON COMMUNICATIONS INC 1.03%
BERKSHIRE HATHAWAY INC-CL B 1.02%
CME GROUP INC 1.01%
F5 NETWORKS INC 0.99%
MARATHON PETROLEUM CORP 0.98%
GENERAL DYNAMICS CORP 0.97%
CVS HEALTH CORP 0.95%
FIDELITY NATIONAL INFO SERV 0.95%
SYSCO CORP 0.87%
ADOBE SYSTEMS INC 0.86%
KINDER MORGAN INC 0.86%
MICROSOFT CORP 0.84%
WASTE MANAGEMENT INC 0.80%
NETAPP INC 0.77%
GREAT PLAINS ENERGY INC 0.76%
HARRIS CORP 0.76%
EQUITY RESIDENTIAL TR REIT 0.74%
NVR INC 0.72%
MERCK & CO. INC. 0.70%
TRAVELERS COS INC/THE 0.70%
JM SMUCKER CO/THE 0.69%
HERSHEY CO/THE 0.68%
L3 TECHNOLOGIES INC 0.68%
FISERV INC 0.66%
PAYCHEX INC 0.65%
US BANCORP 0.65%
AMERICAN ELECTRIC POWER 0.62%
SUNTRUST BANKS INC 0.62%
AGNC INVESTMENT CORP 0.61%
P G & E CORP 0.60%
EDISON INTERNATIONAL 0.59%
VANTIV INC - CL A 0.58%
AT&T INC 0.54%
BAKER HUGHES A GE CO 0.53%
ANNALY CAPITAL MANAGEMENT IN 0.52%
AVERY DENNISON CORP 0.52%
VOYA FINANCIAL INC 0.51%
SYNOPSYS INC 0.50%
PROCTER & GAMBLE CO/THE 0.49%
CDK GLOBAL INC 0.46%
LEAR CORP 0.46%
PHILLIPS 66 0.45%
WELLCARE HEALTH PLANS INC 0.44%
ALTABA INC 0.43%
SERVICEMASTER GLOBAL HOLDING 0.40%
PINNACLE FOODS INC 0.38%
REPUBLIC SERVICES INC 0.37%
SPY 20181221 P 235.00JPMCB 0.37%
ECOLAB INC 0.34%
PRICELINE GROUP INC/THE 0.34%
CAMDEN PROPERTY TRUST 0.33%
CORNING INC 0.33%
GAMING AND LEISURE PROPERTIE 0.33%
EPR PROPERTIES 0.31%
CONAGRA BRANDS INC 0.29%
REINSURANCE GROUP OF AMERICA 0.29%
BIO-RAD LABORATORIES-A 0.28%
HOME DEPOT INC 0.28%
LAMAR ADVERTISING CO-A 0.28%
STARWOOD PROPERTY TRUST INC 0.27%
TWENTY-FIRST CENTURY FOX-A 0.27%
BWX TECHNOLOGIES INC 0.26%
CHIMERA INVESTMENT CORP 0.25%
DELL TECHNOLOGIES INC-CL V 0.25%
SOUTHERN CO/THE 0.25%
SPY 20181019 P 225.00BANKAM 0.25%
SPY 20181116 P 225.00JPMCB 0.25%
HASBRO INC 0.24%
SPIRIT REALTY CAPITAL INC 0.23%
BERRY GLOBAL GROUP INC 0.22%
AMERICAN HOME 4 RENT 0.20%
CORELOGIC INC 0.20%
AMDOCS LTD 0.19%
LANDSTAR SYSTEM INC 0.19%
WALGREENS BOOTS ALLIANCE INC 0.18%
BAXTER INTERNATIONAL INC 0.17%
EURONET WORLDWIDE INC 0.17%
GENPACT LTD 0.17%
HIGHWOODS PROPERTIES INC 0.17%
POOL CORP 0.17%
RETAIL PROPERTIES OF AME - A 0.17%
SCOTTS MIRACLE-GRO CO 0.17%
HUNTINGTON INGALLS INDUSTRIE 0.16%
SONOCO PRODUCTS CO 0.16%
SPY 20180921 P 215.00JPMCB 0.16%
BROADRIDGE FINANCIAL SOLUTIO 0.15%
CORPORATE OFFICE PROPERTIES 0.15%
ULTA BEAUTY INC 0.15%
CHARLES RIVER LABORATORIES 0.14%
LIBERTY PROPERTY TRUST 0.14%
MFA FINANCIAL INC 0.14%
TWO HARBORS INVESTMENT CORP 0.14%
ARAMARK 0.13%
INTERCONTINENTAL EXCHANGE IN 0.13%
SPY 20180817 P 215.00CITI 0.13%
THERMO FISHER SCIENTIFIC INC 0.13%
PEPSICO INC 0.12%
POPULAR INC 0.12%
AMAZON.COM INC 0.10%
APPLE HOSPITALITY REIT INC 0.10%
ASSURED GUARANTY LTD 0.10%
BRANDYWINE REALTY TRUST 0.10%
SPY 20180720 P 215.00CITI 0.10%
COMMERCEHUB INC-SERIES C 0.09%
EQUITY COMMONWEALTH 0.09%
HEICO CORP 0.09%
MARRIOTT INTERNATIONAL -CL A 0.09%
WORLD FUEL SERVICES CORP 0.09%
ASPEN INSURANCE HOLDINGS LTD 0.08%
EMPIRE STATE REALTY TRUST-A 0.08%
GRAHAM HOLDINGS CO-CLASS B 0.08%
INTUITIVE SURGICAL INC 0.08%
PARK HOTELS & RESORTS INC 0.08%
NEWS CORP - CLASS B 0.06%
QUALITY CARE PROPERTIES 0.06%
US FOODS HOLDING CORP 0.06%
WILEY (JOHN) & SONS-CLASS A 0.06%
CISCO SYSTEMS INC 0.05%
COLGATE-PALMOLIVE CO 0.05%
DAVITA INC 0.05%
LIBERTY EXPEDIA HOLD-A 0.05%
SPY 20180131 C 274.00CITI -0.01%

Prior top 10 holdings

Top 10 holdings as of 03/31/18
JPMorgan Chase
Alphabet
Northrop Grumman Corp
Raytheon
Apple
Mcdonald'S Corp
Time Warner
Pnc Financial Services Group The
Intuit
Texas Instruments
Holdings represent 19.10% of portfolio
Top 10 holdings as of 02/28/18
JPMorgan Chase
Alphabet
Apple
Raytheon
Northrop Grumman Corp
Mcdonald'S Corp
Pnc Financial Services Group The
eBay
Texas Instruments
Time Warner
Holdings represent 19.81% of portfolio
Top 10 holdings as of 01/31/18
JPMorgan Chase
Alphabet
Mcdonald'S Corp
Apple
Northrop Grumman Corp
Pnc Financial Services Group The
Raytheon
Texas Instruments
Time Warner
Danaher Corp
Holdings represent 19.15% of portfolio
Top 10 holdings as of 12/31/17
Johnson & Johnson
JPMorgan Chase
Pfizer
Texas Instruments
Mcdonald'S Corp
Apple
UnitedHealth Group
Altria Group
Applied Materials
Pnc Financial Services Group The
Holdings represent 21.63% of portfolio

Portfolio composition as of 03/31/18

Common stock 96.46%
Cash and net other assets 3.54%

Equity statistics as of 03/31/18

Median market cap $34.83B
Weighted average market cap $65.02B
Price to book 3.21
Price to earnings 16.58

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: 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 company issuer or sector. There may be times when stocks in the fund's portfolio exhibit higher volatility than we expect, are not correlated with market movements as we expect, or underperform the markets. By selling covered call options, the fund limits its opportunity to profit from an increase in the price of the underlying portfolio securities, but continues to bear the risk of a decline in the value of these securities. The fund also risks losing all or part of the cash paid for purchasing put options. You can lose money by investing in the fund.

Top Industry Sectors as of 03/31/18

Information technology 22.40%
Financials 13.72%
Health care 12.69%
Consumer discretionary 11.72%
Industrials 10.44%
Consumer staples 7.39%
Energy 5.66%
Real estate 3.60%
Cash and net other assets 3.54%
 
Other
8.84%
Utilities 3.14%
Materials 2.52%
Unclassified 1.95%
Telecommunication services 1.23%

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

Sectors will vary over time.


Expenses

Expense ratio

Class A Class B Class C Class M Class Y
Total expense ratio 1.52% 2.27% 2.27% 2.02% 1.27%
What you pay† 1.20% 1.95% 1.95% 1.70% 0.95%

† 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 11/30/18

Sales charge

Investment Breakpoint Class A Class B Class C Class M 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 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 S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index.

Consider these risks before investing: 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 company issuer or sector. There may be times when stocks in the fund's portfolio exhibit higher volatility than we expect, are not correlated with market movements as we expect, or underperform the markets. By selling covered call options, the fund limits its opportunity to profit from an increase in the price of the underlying portfolio securities, but continues to bear the risk of a decline in the value of these securities. The fund also risks losing all or part of the cash paid for purchasing put options. You can lose money by investing in the fund.