Q4 | 2015
Putnam
Equity Income
Fund
A large-cap value fund that
seeks to harness the power
of dividends
Managed by
Darren A. Jaroch, CFA
putnam.com/equityincome
Class A
Class B
Class C
Class M
Class R
Class Y
PEYAX
PEQNX
PEQCX
PEIMX
PEQRX
PEIYX
Pursuing greater returns with
experience, discipline, and dividends
A seasoned investment manager
Seeking income potential in dividends
Portfolio Manager Darren A. Jaroch, CFA, has
The fund’s portfolio includes companies that
been investing for over 20 years and has been a
pay dividends — which are excess profits
member of Putnam’s U.S. and international value
distributed to shareholders. In addition to their
teams since 1999. His experience as manager
income potential, dividends can be a sign that
of Putnam Global Dividend Fund and Putnam
a company’s management is confident in the
International Value Fund provides critical global
ongoing health of the business.
insight for analyzing the large-cap equity universe.
In addition to seeking dividend-paying
A disciplined value strategy
With an investment process grounded in
fundamental research, Darren seeks growth
potential from large U.S. companies across a
range of sectors. A value-investing veteran,
companies, Darren looks for companies that have
the potential to grow their dividends over time.
Dividends have historically represented a significant
portion of the total return of S&P 500 companies.
he looks for attractively priced stocks that he
believes will appreciate as the market recognizes
their long-term worth.
9.8%
S&P 500 annual return (1926–2015)
4.0% from income
5.8% from capital appreciation
Source: Morningstar Direct/Ibbotson Associates.
$10,000
invested in Putnam
Equity Income Fund
6/15/77
0
Data as of 12/31/15.
$405,272
with capital gains and
dividends reinvested
10.08%
annualized return
before sales charge
98%
A focus on positive performance for over 38 years
Highlights of five-year performance periods* (6/15/77–12/31/15)
% positive
periods
s 21.64%
t -2.36%
Best 5-year return
Worst 5-year return
s 10.30%
Average 5-year return
....................
....................
....................
....................
...............
98%
% positive
periods
132
3
....................
....................
....................
...............
positive
periods
negative
periods
1Based on annualized returns before sales charges
for quarterly rolling periods.
Dividends can
help you pursue
greater returns.
$391,252
The benefit of
reinvested dividends
and capital gains
Annualized total returns
Class A shares
Inception 6/15/77
Before
sales charge
1 year
-3.18%
-8.75%
-3.83%
3 years
12.74
10.54
13.08
5 years
11.66
10.34
11.27
10 years
7.72
7.08
6.16
10.08
9.91
—
Life of fund
Total expense ratio: 0.98%
After
sales charge
Russell 1000
Value Index
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 a loss when you sell your
shares. Performance assumes reinvestment of
distributions and does not account for taxes.
After-sales-charge returns reflect a maximum
load of 5.75%. To obtain the most recent
month-end performance, visit putnam.com.
The Russell 1000 Value Index is an unmanaged index of those companies in the large-cap Russell 1000 Index
chosen for their value orientation. You cannot invest directly in an index.
$14,020
with $31,574 in
dividends and capital
gains taken in cash
12/31/15
Consider these risks before investing: Value stocks
may fail to rebound, and the market may not favor
value-style investing.
Income provided by the fund may be reduced by
changes in the dividend policies of, and the capital
resources available at, the companies in which the
fund invests.
A BALANCED APPROACH
Since 1937, when George Putnam created a diverse
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.
mix of stocks and bonds in a single, professionally
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 investing.
A WORLD OF INVESTING
managed portfolio, Putnam has championed the
balanced approach.
Today, we offer investors a world of equity, fixedincome, multi-asset, and absolute-return portfolios
to suit a range of financial goals.
A COMMITMENT TO EXCELLENCE
Our portfolio managers seek superior results over time,
backed by original, fundamental research on a global
scale. We believe in the value of experienced financial
advice, in providing exemplary service, and in putting
clients first in all we do.
One Post Office Square
Boston, MA 02109
Putnam Retail Management
FB529 297443 2/16
putnam.com