Putnam Dynamic Risk Allocation Fund
Data updated: 2023-08-14
C000071723 — Putnam Dynamic Risk Allocation Fund. Total Return Allocation · $10.27M AUM · 1.17% expense ratio. Holdings, fees, performance and SEC filings.
C000071723 Fund Overview
Putnam Dynamic Risk Allocation Fund is a US mutual fund managed by Putnam Funds Trust, categorised as Total Return Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Putnam Funds Trust
- Category: Total Return Allocation
- Assets under management: $10.27M
- 1-year return: -17.5%
- SEC CIK: 0001005942
- SEC series ID: S000024277
- Share class ID: C000071723
C000071723 Investment Objective and Strategy
Putnam Dynamic Risk Allocation Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Putnam Funds Trust.
Investment objective
Putnam Dynamic Risk Allocation Fund seeks total return. Total return is composed of capital appreciation and income.
Principal investment strategy
The fund invests in a diversified set of asset classes. By investing in a broader set of asset classes than a traditional balanced fund, and by using leverage to increase the funds exposures to asset classes, we believe that the fund may achieve a higher total return than a traditional balanced fund with approximately the same amount of risk as a traditional balanced fund. Risk is measured by the volatility of the funds investment portfolio. The fund may invest without limit in U.S., international, and emerging markets equity securities (growth or value stocks or both) of companies of any size and fixed-income securities (including in below-investment-grade securities, which are sometimes referred to as junk bonds); mortgage- and asset-backed securities; inflation-protected securities; commodities; and real estate investment trusts (REITs).
These asset classes offer different return potential and exposure to different investment risks. We allocate the funds assets among asset classes in a manner intended to diversify the funds exposure to these different types of risk. We typically use leverage to adjust or to increase the funds exposure to certain asset classes in order to diversify, or balance, risk exposure. We expect that, on average, net notional investment exposure of approximately 150% of the net assets of the fund will result from the funds allocation strategy under normal market conditions, although the amounts of leverage may be significantly higher or lower at any given time. We believe that better risk diversification creates the potential for the fund to perform well in a variety of market environments. Because the potential risks and returns of asset classes, the costs of leverage, and the benefits of diversification vary over time and with market conditions, we make dynamic adjustments to the funds asset allocations as the market environment changes.
We use qualitative analysis, which includes evaluation of the business cycle environment and its impact on different asset classes, and quantitative techniques, which incorporate individual valuation and relative valuation measures, to establish asset class allocations that we believe will enable the fund to perform well in a variety of environments. We also use active trading strategies, such as active security selection, tactical asset allocation, currency transactions and options transactions. Certain of these strategies may introduce additional investment leverage. When making particular investments within an asset class, we may consider, among other factors, a companys valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell equity investments, and, among other factors, credit, interest rate and prepayment risks when deciding whether to buy or sell fixed-income investments.
We may also take into account general market conditions when making investment decisions. We typically use derivatives, such as futures, options, certain foreign currency transactions, warrants and swap contracts, to a significant extent for hedging purposes, to obtain leverage, and to adjust the return and volatility characteristics of the funds investments. We may also engage in short sales of securities.
C000071723 Holdings
Top 10 holdings of Putnam Dynamic Risk Allocation Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Putnam Short Term Investment Fund | 78.86% |
| Chicago Board Of Trade | 23.64% |
| Jp Morganchase Bank | 18.12% |
| Jp Morganchase Bank | 11.52% |
| Osaka Exchange | 9.72% |
| Montreal Stock Exchange | 9.24% |
| Jp Morganchase Bank | 8.71% |
| Eurex Deutschland | 7.76% |
| Ice Futures Europe Financials | 7.33% |
| Eurex Deutschland | 6.84% |
C000071723 Portfolio Allocation
Asset-class allocation of Putnam Dynamic Risk Allocation Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Cash & Equivalents | 83.5% |
| Derivatives | 79.0% |
| Real Estate | 71.3% |
| Equity | 9.8% |
| Fixed Income | 6.7% |
| Other | 1.1% |
C000071723 Performance
Total returns for C000071723 (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | -17.5% |
| 3 years (annualised) | -6.3% |
C000071723 Risk Information
Risk metrics for C000071723, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 12.7%
C000071723 Costs and Fees
C000071723 costs about $117 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.17%
- Gross expense ratio: 1.99%
- Portfolio turnover: 366%
- Brokerage commissions: 18.03 bps of average net assets (SEC N-CEN)
C000071723 Cashflows
Over the 12 months to 2022-11, Putnam Dynamic Risk Allocation Fund had net inflows of $14.97M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2022-11 | $371.45K |
| 2022-10 | $317.73K |
| 2022-09 | $479.02K |
| 2022-08 | $649.81K |
| 2022-07 | $531.35K |
| 2022-06 | $454.13K |
C000071723 Debt Constituents
Largest debt holdings of Putnam Dynamic Risk Allocation Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Debt holding | % of net assets |
|---|---|
| United States Of America | 3.34% |
| United States Of America | 2.51% |
| United States Of America | 0.84% |
C000071723 Prospectus and SEC Filings
Official Putnam Dynamic Risk Allocation Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2022-09-26
- Prospectus (485BPOS) — filed 2021-09-27
- Prospectus (485BPOS) — filed 2020-09-28
- Portfolio holdings (N-PORT) — filed 2023-01-26
- Portfolio holdings (N-PORT) — filed 2022-10-28
- Portfolio holdings (N-PORT) — filed 2022-07-27
- Annual census (N-CEN) — filed 2023-08-14
- Annual census (N-CEN) — filed 2022-08-10
Related Funds
Other Total Return Allocation funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.