ACTIVE EQUITY

An active strategy for harnessing the potential of U.S. value stocks

PUTNAM EQUITY INCOME FUND

Overall Morningstar Rating
out of 1,130 funds in the Large Value category based on total return as of 01/31/21.


Global expertise

Portfolio Managers Darren Jaroch and Lauren DeMore manage U.S. and international portfolios, giving them broad investing insight. Their knowledge of the landscape across global markets enhances their research of U.S. companies and dividend opportunities.

Multiple sources of insight

The portfolio managers combine their analysis with ideas from analysts in Putnam's Equity Research organization and information from quantitative screening and risk-management tools.

A strategic dividend investor

"It's important to differentiate companies that can simply support a dividend from those that can grow that dividend," says Darren of the fund's approach. They focus on company cash flows, earnings quality, and capital allocation.

An investment team with a differentiated process

Can value maintain its market lead?

Portfolio Manager Lauren Demore, CFA, explains why she believes the tailwinds driving value stocks will continue.

About the portfolio managers

Darren A. Jaroch, CFA
24 years in the investment industry
21 years managing value portfolios at Putnam

Lauren DeMore, CFA
18 years in the investment industry
14 years managing value portfolios at Putnam

35 analysts provide support for the fund's investment process

Watch a video about Darren's research approach.

A multidimensional approach to value investing

Darren Jaroch, CFA, and Lauren DeMore, CFA, manage a disciplined process to target a wider array of opportunities than many other equity income funds. In selecting stocks, they place extra emphasis on businesses that could enhance the fund's capital appreciation potential.

VALUE STOCKS | Attractively priced stocks of companies poised for improvement

DIVIDEND GROWERS | Stocks of companies that are willing and able to increase their dividends

CASH-FLOW GENERATORS | Stocks of companies with strong cash flows, earnings quality, and capital allocation strategies

See brochure

Value Investing Value Investing

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The Morningstar Rating™ 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 ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.