U.S. Small Cap Value Equity

The strategy seeks to outperform the Russell 2000 Value Index by investing in a portfolio of stocks with attractive valuation and quality characteristics and improving business momentum or catalysts that can unlock value.*

Product highlights

Inception date

March 31, 1993

Benchmark

Russell 2000 Value Index

Total strategy assets

$337.3M

(as of September 2019)

Investment vehicles

  • Separate account
  • Seeks to outperform the Russell 2000 Value Index by investing in a portfolio of what we believe to be attractively valued small-cap U.S. stocks issued by quality companies with improving business momentum or catalysts that may unlock value
  • Focus on bottom-up stock selection, well-diversified portfolios, and downside risk management
  • Seeks to manage risk through security selection, portfolio construction, and liquidity management
  • Portfolio manager and senior analysts with extensive experience working together as a boutique with access to large firm resources

*No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her initial investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risks involved before deciding to invest. See the composite disclosures for a summary of risk considerations. As with any investment, there is a potential for profit as well as the possibility of loss.

Assets may include accounts that are not reflected in the composite.

Investment team

Performance

Annualized composite performance (%) as of September 30, 2019

  MTD QTD YTD 1 Year 3 Years 5 Years 10 Years
U.S. Small Cap Value Equity (gross) 5.08% -1.96% 14.22% -11.93% 5.43% 6.20% 10.77%
U.S. Small Cap Value Equity (net) 5.01% -2.16% 13.53% -12.63% 4.58% 5.34% 9.77%
Russell 2000 Value Index 5.13% -0.57% 12.82% -8.24% 6.54% 7.17% 10.06%

Calendar Year Composite Performance (%) as of September 30, 2019

  2018 2017 2016 2015 2014 2013 2012 2011 2010 2009
U.S. Small Cap Value Equity (gross) -18.78% 9.19% 28.35% -2.97% 4.44% 40.16% 18.49% -3.71% 27.11% 30.69%
U.S. Small Cap Value Equity (net) -19.43% 8.31% 27.31% -3.79% 3.49% 38.75% 17.30% -4.68% 25.83% 29.38%
Russell 2000 Value Index -12.86% 7.84% 31.74% -7.47% 4.22% 34.52% 18.05% -5.50% 24.50% 20.58%

Past performance is not a guarantee of future results. An investment in this strategy could lose value. Most recent month-end performance is preliminary. Returns are subject to change. Please refer to the composite report for additional important information regarding performance disclosures and investments risks.

Periods less than one year are not annualized. Performance is stated in U.S. dollars.

Literature

Important disclosures

The Putnam Investments U.S. Small Cap Value Equity Composite (the "Composite") seeks to achieve superior long-term performance versus its benchmark, the Russell 2000 Value Index, while maintaining low relative volatility.  The strategy invests in a broadly diversified portfolio of inexpensively priced small cap stocks issued by quality companies with a catalyst for change.  The composite includes all fully discretionary accounts managed by Putnam Investments in this investment style.  The Composite may contain accounts with different but largely similar benchmarks. The Composite creation date is April 1, 1997.

The Russell 2000 Value Index measures the performance of the Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

Composites may include portfolios with certain existing investment restrictions that the Firm believes do not materially impact the investment strategy. Benchmarks are generally taken from published sources and may have different calculation methodologies, pricing times, and/or foreign-exchange sources from the composite. The effect of those differences is generally deemed to be immaterial. The securities holdings of the Composite may differ materially from those of the index used for comparative purposes. Composites and benchmarks include the reinvestment of dividends and other earnings. Indexes are unmanaged and do not incur expenses. You cannot invest directly in an index. Gross-of-fees returns do not include the deduction of management fees and other expenses that may be incurred in managing an investment account. A portfolio's return will be reduced by advisory and other fees. Net-of-fee returns are calculated using a model fee. For the applicable time periods, net-of-fees returns reflect either the deduction of the highest management fee that is paid by a portfolio in the Composite during the performance period, applied on a monthly basis, or the deduction of the highest applicable management fee in effect during the performance period that would be charged based on the fee schedule appropriate to this mandate, without the benefit of breakpoints, applied on a monthly basis, whichever is higher. Net-of-fee calculation methodology may change over time. Actual investment advisory fees incurred by clients are typically negotiated on an individual basis and may vary depending upon, among other things, the applicable fee schedule and portfolio size. Our standard fee schedules are available upon request.