Active Allocation

George Putnam Balanced Fund (Class Y)  (PGEYX)

A prudent balance of stocks and bonds since 1937

George Putnam Balanced Fund received an  Overall Morningstar Rating  of  

Highlights

Objective

The fund seeks to provide a balanced investment composed of a well-diversified portfolio of stocks and bonds which produce both capital growth and current income.

Strategy and process

  • Balanced approach One of the pioneering mutual funds, it offers a mix of stocks and bonds in a classic balanced portfolio.
  • Seeks lower volatility A focus on high-quality bonds helps manage volatility, while high-conviction stocks can help drive relative returns.
  • Disciplined process Experienced portfolio managers use rigorous fundamental research to find opportunities and manage risk.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $23.32
-0.60% | $-0.14
$25.82
11/08/21
$22.05
12/14/20
(Optional)

Fund facts as of 10/31/21

Total net assets
$2,018.89M
Turnover (fiscal year end)
93%
Dividend frequency (view rate)
Quarterly
Number of holdings
596
Fiscal year-end
July
CUSIP / Fund code
37252M603 / 1802
Inception date
03/31/94
Category
Asset Allocation
Open to new investors
Ticker
PGEYX

Management team

Director of Equity Research
Portfolio Manager
Co-Head of Corporate and Tax-exempt Credit

Literature


At the crossroads of pandemic, policy, disruption, and inflation
Strains on supply chains, rising prices, slowing growth, and shifting policies have pushed up volatility and changed our tactical stance.

Performance

Consistency of positive performance over five years

Performance represents 5-year returns in rolling quarter-end periods since inception.

Performance shown above does not reflect the effects of any sales charges. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please see below.

22.26%

Best 5-year annualized return

(for period ending 06/30/87)


-6.01%

Worst 5-year annualized return

(for period ending 03/31/09)


9.16%

Average 5-year annualized return


  • Total return (%) as of 09/30/21

  • Annual performance as of 09/30/21

Annualized Total return (%) as of 09/30/21

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 17.22% 12.76% 12.17% 11.52%
After sales charge N/A N/A N/A N/A
George Putnam Blended Index 16.91%12.41%11.64%11.41%
S&P 500 Index 30.00%15.99%16.90%16.63%

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. Performance assumes reinvestment of distributions and does not account for taxes. The "before sales charge" performance does not reflect the current maximum sales charges, which we explain below. If performance did reflect the charges, it would be lower. The "after sales charge" performance (or returns at public offering price) varies by share class and fund. For class A and class M shares, the current maximum initial sales charges are 5.75% and 3.50% for equity funds and 4.00% and 3.25% for income funds, respectively (with these exceptions: 2.25% for class A of Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return Fund). Class B share performance reflects the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declines to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, Putnam Short Duration Bond Fund, Putnam Fixed Income Absolute Return Fund, and Putnam Short-Term Municipal Income Fund; for these funds, the CDSC is 1% in the first year, declines to 0.5% in the second year, and is eliminated thereafter). Class C share performance reflects a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, N, R, and Y shares prior to their inception is derived from the historical performance of class A shares by adjusting for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (note, for two funds — Putnam Tax-Free High Yield Fund and Putnam Strategic Intermediate Municipal Fund performance prior to inception is based on the historical performance of class B shares). Performance for class A, C, R6, and Y shares of Putnam Mortgage Opportunities Fund before their inception is derived from the historical performance of class I shares, which has been adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares. The "after sales charge" performance (at public offering price) for class N shares reflects the current maximum initial sales charge of 1.50%. Class R, R3, R4, R5, and R6 shares, which are 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 R3 and R4 shares prior to their inception is derived from the historical performance of class Y shares by adjusting for the higher operating expenses for such shares. Performance for class R5 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower expenses; had it been adjusted, performance would be higher (with the exception of the RetirementReady Maturity, 2025, 2030, 2035, and 2040 Funds, for which performance is derived from the historical performance of class R6 shares and has been adjusted for the higher operating expenses for such shares; and the RetirementReady 2045, 2050, 2055, and 2060 Funds, for which performance is derived from the historical performance of class R6 shares and has not been adjusted for the lower expenses; had it been adjusted, performance would be higher). Performance for class R6 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would be higher. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses. Had these limits not been in place, performance would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 11/30/21 -1.01% -
YTD as of 12/03/21 11.82% -

Yield

Distribution rate before sales charge
as of 12/03/21
0.89%
Distribution rate after sales charge
as of 12/03/21
0.89%
30-day SEC yield as of 11/30/21 0.77%

Risk-adjusted performance as of 10/31/21

Alpha (3 yrs.) -0.32
Sharpe ratio (3 yrs.) 1.32
Treynor ratio (3 yrs.) 14.36
Information ratio (3 yrs.) 0.50

Volatility as of 10/31/21

Standard deviation (3 yrs.) 11.63%
Beta 1.07
R-squared 0.99

Fixed income statistics as of 10/31/21

Average effective duration 6.54 yrs.

Capture ratio as of 10/31/21

Up-market (3 yrs.) 105.81
Down-market (3 yrs.) 107.33

Lipper rankings as of 10/31/21

Time period Rank/Funds in category Percentile ranking
1 yr. 170/534 32%
3 yrs. 18/505 4%
5 yrs. 26/478 6%
10 yrs. 21/395 6%
Lipper category: BALANCED FUNDS

Morningstar Ratings as of 10/31/21

Time period Funds in category Morningstar Rating
Overall 669
3 yrs. 669
5 yrs. 601
10 yrs. 431
Morningstar category: Allocation--50% to 70% Equity

Distributions

Record/Ex dividend date 11/26/21
Payable date 11/30/21
Income $0.052
Extra income --
Short-term cap. gain $0.609
Long-term cap. gain $1.082

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

Microsoft 4.36%
Alphabet 3.39%
Amazon 3.22%
Apple 2.12%
Us Treasury N/B 01.1250 02/28/2025 1.96%
Us Treasury N/B 02.3750 08/15/2024 1.51%
Nvidia 1.49%
Meta Platforms 1.42%
Us Treasury N/B 02.7500 08/15/2042 1.42%
Home Depot 1.28%
Top 10 holdings, percent of portfolio 22.17%



Portfolio composition as of 10/31/21

Common stock 62.97%
Corporate bonds and notes 13.83%
Treasury 13.63%
Agency pass-through 6.43%
Cash and net other assets 2.21%
Commercial MBS 0.81%
Municipal bonds 0.06%
Residential MBS (non-agency) 0.06%

Fixed income statistics as of 10/31/21

Average effective maturity 8.57 yrs.
Average effective duration 6.54 yrs.

Maturity detail as of 10/31/21

0 - 1 yr. 2.81%
1 - 5 yrs. 41.48%
5 - 10 yrs. 35.34%
10 - 15 yrs. 2.76%
Over 15 yrs. 17.61%

Quality rating as of 10/31/21

AAA 58.03%
AA 3.48%
A 10.70%
BBB 23.50%
BB 1.96%
Not Rated 2.33%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: The value of investments in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political or financial market conditions, investor sentiment and market perceptions, government actions, geopolitical events or changes, and factors related to a specific issuer, asset class, geography, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. 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. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund's other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.

Top industry sectors as of 10/31/21

Information technology 24.88%
Consumer discretionary 15.41%
Health care 12.94%
Financials 11.32%
Communication services 9.27%
Industrials 8.49%
Consumer staples 5.68%
Energy 3.00%
Utilities 2.97%
 
Other
6.04%
Materials 2.73%
Cash and net other assets 2.21%
Real estate 1.10%

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

Sectors will vary over time.

Represents the equity portion of the portfolio.


Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
Total expense ratio 0.94% 1.69% 1.69% 1.44% 1.19% 0.71% 0.61% 0.69%
What you pay 0.94% 1.69% 1.69% 1.44% 1.19% 0.71% 0.61% 0.69%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R Class R5 Class R6 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 R Class R5 Class R6 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. The Bloomberg U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed income securities. You cannot invest directly in an index.

Consider these risks before investing: The value of investments in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political or financial market conditions, investor sentiment and market perceptions, government actions, geopolitical events or changes, and factors related to a specific issuer, asset class, geography, industry or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds. 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. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund's other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.