July 31, 2026
An American-focused equity fund that aims to reduce volatility while providing opportunities for long-term growth.
Is this fund right for you?
- You want your money to grow over a longer term.
- You want in invest in large U.S. companies with lower volatility than the S&P 500 index.
- You're comfortable with a moderate level of risk.
RISK RATING
How is the fund invested? (as of July 31, 2026)
| Name | Percent |
|---|---|
| US Equity | 96.5 |
| International Equity | 3.4 |
| Cash and Equivalents | 0.1 |
| Name | Percent |
|---|---|
| United States | 96.5 |
| Bermuda | 1.4 |
| United Kingdom | 1.1 |
| Switzerland | 0.5 |
| Ireland | 0.2 |
| Canada | 0.1 |
| Luxembourg | 0.1 |
| Puerto Rico | 0.1 |
| Name | Percent |
|---|---|
| Technology | 40.1 |
| Financial Services | 13.5 |
| Healthcare | 10.1 |
| Consumer Services | 9.4 |
| Industrial Goods | 6.0 |
| Consumer Goods | 5.8 |
| Energy | 3.3 |
| Utilities | 2.8 |
| Real Estate | 2.6 |
| Other | 6.4 |
Growth of $10,000 (since inception)
For the period 07/09/2018 through 07/31/2026 tr.with $10,000 CAD investment, The value of the investment would be $23,207
Fund details (as of July 31, 2026)
| Top holdings | Percent (%) |
|---|---|
| Apple Inc | 7.9 |
| NVIDIA Corp | 7.5 |
| Alphabet Inc Cl A | 6.8 |
| Microsoft Corp | 3.9 |
| Amazon.com Inc | 3.7 |
| Meta Platforms Inc Cl A | 2.7 |
| Lam Research Corp | 2.0 |
| Mastercard Inc Cl A | 1.9 |
| Caterpillar Inc | 1.9 |
| Broadcom Inc | 1.9 |
| Total allocation in top holdings | 40.2 |
| Portfolio characteristics | Value |
|---|---|
| Standard deviation | 9.98% |
| Dividend yield | 1.06% |
| Yield to maturity | - |
| Duration (years) | - |
| Coupon | - |
| Average credit rating | Not rated |
| Average market cap (million) | $2,058,567.7 |
Understanding returns
Annual compound returns (%)
| 1 MO | 3 MO | YTD | 1 YR |
|---|---|---|---|
| 1.24 | 10.34 | 10.42 | 17.18 |
| 3 YR | 5 YR | 10 YR | INCEPTION |
|---|---|---|---|
| 18.88 | 12.82 | - | 11.01 |
Calendar year returns (%)
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 11.00 | 29.43 | 18.24 | -10.51 |
| 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|
| 22.03 | 7.15 | 7.43 | - |
Range of returns over five years (August 01, 2018 - July 31, 2026)
| Best return | Best period end date | Worst return | Worst period end date |
|---|---|---|---|
| 14.93% | Oct 2025 | 5.83% | Sep 2023 |
| Average return | % of periods with positive returns | Number of positive periods | Number of negative periods |
|---|---|---|---|
| 11.29% | 100 | 37 | 0 |
Q2 2026 Fund Commentary
Commentary and opinions are provided by Putnam Investments.
Market commentary
U.S. equities advanced during the quarter as investors responded positively to strong corporate earnings, enthusiasm around artificial intelligence (AI) infrastructure and software, and resilient economic data. The U.S. equity market reached new all-time highs repeatedly through May and June, and non-U.S. equity markets, particularly emerging markets, also performed well.
Challenges included uncertainty around the Middle East conflict and the blockade of the Strait of Hormuz, rising oil prices and inflation concerns. Skepticism related to AI also surfaced during the quarter. Some equity market volatility came with a rise in U.S. Treasury yields, sparked by concerns around inflation and U.S. government debt levels.
Performance
Security selection in the financials, health care and materials sectors contributed to performance.
An overweight position in Lam Research Corp. and an underweight position in Microsoft Corp., both in the information technology sector, contributed to performance, as did an overweight position in Caterpillar Inc. in the industrials sector.
Holdings in the information technology sector detracted from performance.
Underweight positions in Micron Technology Inc. and Advanced Micro Devices Inc. detracted from performance, as did the decision not to hold Intel Corp. In the sub-advisor's view, the Fund's low-beta bias wasn't in favour during the period given the consistently strong, low-volatility U.S. equity environment.
Portfolio activity
The sub-advisor added FedEx Corp., Honeywell Aerospace Inc. and TPG Inc. The sub-advisor sold Hologic Inc., while NVIDIA Corp., Apple Inc. and Alphabet Inc. were reduced.
Outlook
In the sub-advisor's view, equity markets demonstrated resilience in a quarter that had plenty of potential headwinds for investors. Inflation was gaining steam, U.S. government deficits were higher than expected, and uncertainty continued around the Middle East conflict and the closing of the Strait of Hormuz, an essential artery for global energy and trade.
At the midpoint of 2026, the sub-advisor's outlook is broadly constructive, with a dose of caution. In the sub-advisor's view, investors shouldn't lose sight of why equity markets have continued to climb. Investor enthusiasm was exemplified by the strong appetite for the revolutionary potential in areas such as AI, satellites and space transport, which the sub-advisor believes bodes well for equity markets. This exuberance also comes with increased risks, such as stretched valuations and bouts of volatility. In the sub-advisor's opinion, these periods of increased volatility could benefit the Fund's low-beta approach.
Summary
For the period 07/09/2018 through 07/31/2026 with $10,000 CAD investment
Total returns performance
132.07%
Last price
$23.21 CAD
as of market close 07/31/2026
Value of $10,000 investment
$23,207.06 CAD
