4 / 5 Stars
5 5 4 4 1
Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#98 in Large Value
U.S. News evaluated 330 Large Value Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 23.43 percent over the past year, 16.75 percent over the past three years, 18.28 percent over the past five years, and 9.20 percent over the past decade.
|Trailing Returns||Updated 06.30.2014|
|Year to date||8.1%|
|3 Years (Annualized)||16.7%|
|5 Years (Annualized)||18.3%|
|10 Years (Annualized)||9.2%|
Over time, Putnam Equity Income's diversified, value-oriented strategy has served investors well.
As of July 03, 2014, the fund has assets totaling almost $5.68 billion invested in 124 different holdings. Its portfolio consists primarily of shares of large companies.
This fund's management team scours the market for companies that appear to be undervalued. Like many of its value-oriented peers, this fund maintains a hefty allocation to the financial sector. The connection between value investing and this sector allocation should come as no surprise. After all, the financial sector nearly imploded during the downturn and, due to uncertainty over financial reform, underwent an unsteady recovery. As a result, it has proved a fertile hunting ground for managers looking to scoop up shares on the cheap. Notably, State Street Corporation and JPMorgan Chase are among this fund's top holdings. After top-notch performances in 2008 and 2009, this fund slowed down last year, and its 12 percent return trailed 65 percent of its peers in Morningstar's large-value category. The fund's exposure to drilling companies, including BP, hurt performance in the wake of the Gulf of Mexico spill. The fund has returned 23.43 percent over the past year and 16.75 percent over the past three years.
With well over 100 holdings, this fund is broadly diversified. This diversification helps reduce risk and helps explain why, despite a few slow years, this fund is not prone to large disasters. As of the end of 2010, the fund's trailing 10-year returns beat those of the broader market by upwards of 3 percentage points per year. The fund has returned 18.28 percent over the past five years and 9.20 percent over the past decade.
According to the fund's annual report: "When a company is in a building phase, profits are generally reinvested in areas such as research or infrastructure. However, a large, mature company that has progressed beyond the growth stage will often use a portion of its profits for dividends, paid directly to its shareholders. Putnam Equity Income Fund is composed primarily of stocks of large U.S. companies that pay dividends to their shareholders. ... In addition to targeting dividend-paying companies, the fund's manager seeks stocks whose issuing companies are undervalued and poised for positive change. The goal is to uncover stocks that will appreciate in value as the market recognizes their long-term worth."
Role in Portfolio
Morningstar calls the fund a "core" holding.
Bartlett Geer manages the fund.
Putnam Equity Income Fund has an expense ratio of 1.02 percent.
Like all stock funds, this one comes with some risks.