Investment Ad
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Looking through a financial newspaper recently, you will find a full page of investing ads about top Putnam mutual funds. This ad provides two top rated mutual funds for your investment accounts including 401(k), IRA (individual retirement account), and regular brokerage account.Should you or shouldn’t you invest in these mutual funds? You will find the answer below. I have provided the fund review, performance, and more for your reading. Let me know if you have any comments below.
The financial investment ad is as follow:
When economic factors weigh on an index, individual companies can offer opportunity.
Pursue the best ideas, wherever they are. – David L. Glancy, Portfolio Manager
Putnam Spectrum Funds
Consider these funds for:
Portfolio diversification
Overall Morningstar risk-adjusted rating among 770 moderate allocation funds (Capital Spectrum Fund) and 361 mid-cap value funds (Equity Spectrum Fund) as of 8/31/13.
THIS IS PUTNAM TODAY.
Discover Putnam’s proactive approach to managing volatility and pursuing superior results. putnam.com/spectrum.
PUTNAM INVESTMENTS – A world of investing since 1937.
Request a prospectus or summary prospectus from your financial representative or by calling Putnam at 1-800-225-1581. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investment. - Putnam Retail Management.
Putnam Fund Review
Putnam Capital Spectrum Fund (PVSAX) has $4.4 billion of total net assets. This top fund objective is to seek total return. It invests the majority of the assets in equity and fixed-income securities, including floating and fixed rate bank loans and both growth and value stocks, of leveraged U.S. companies of any size that the adviser believes have promising investment potential. The expense ratio is 1.27%. The dividend yield is 0.67%.This top moderate allocation mutual fund uses Large Value investment style. It is ranked with 5-stars rating by Morningstar and it is on the top 1 percentile among its peers. This class A fund has a front-end sales load of 5.75% and the maximum 12b1 fee is 0.25%. The other classes are Class B (PVSBX), Class C (PVSCX), Class M (PVSMX), Class R (PVSRX) and Class Y (PVSYX).
As of the third quarter of 2013, the top holdings are DISH Network, Echo Star, Siemens, Apple and Japan Airlines. The top sectors are Communicating services (19.6%), Health Care (13.9%) and Financials (10.6%).
The other Putnam best fund is Putnam Equity Spectrum Fund (PYSAX). This U.S. stock fund pursues aggressive growth opportunities in leveraged companies. Its expense ratio is above average, 1.45%. The average ratio in mid-cap value category is 1.28%. The fund has 0.13% dividend yield with the most recent distribution in December 2012 ($0.05).
This equity mutual fund has 31.25% of YTD return as of October 16, 2013. Morningstar analysts rank it with 5-stars rating. The highest 1-year total return was in 2012 with 24.29%. It has returned an average of 27.4% annually since inception. It is also available in other classes, such as PYSOX (Class B), PYSCX (Class C), PYSMX (Class M), PYSRX (Class R) and PYSYX (Class Y).
The top 4 sectors as of September 2013 are Health care (19.0%), Consumer Discretionary (18.9%), Industrials (17.8%) and Information Technology (11.7%). The top holdings are DISH Network, Echo Star, Siemens, Japan Airlines and Jazz Pharmaceuticals.
Last Words
- Avoid the class A funds, hence they have a steep sales load. Unless it is being waived, it is probably not worth for long term investment. Choose the Class R or Class Y for no load mutual fund.
- Both funds have great return for the past 3 years; however I can’t judge how these top funds will perform during down markets.
- Both funds may be suitable for alternative choice and not as the core portfolio.
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