Europe Equity Fund	Daily Fund Prices (NAV)

Investment Objective
The fund seeks capital appreciation.

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Fund Description
Formerly Europe Growth Fund. The name change does not reflect a shift in fund objective or strategy.



The fund is designed to provide broad exposure to European companies and markets. The management team targets stocks of large and midsize European companies that are priced below their long-term worth. The portfolio has no predetermined style bias and may contain both growth and value stocks.

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Data is historical. Past performance is no guarantee of future results. More recent returns may be worth more or less than those shown. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. For the most recent month-end performance, visit www.putnaminvestments.com.



Performance assumes reinvestment of distributions and does not account for taxes. Returns at public offering price (POP) for class A and class M shares reflect the current maximum initial sales charges of 5.25% and 3.25% for equity funds, and 3.75% and 3.25% for income funds (3.25% and 2.00% for Putnam Limited Duration Government Income Fund and Putnam Floating Rate Income Fund), respectively. POP performance of income funds' class A shares (other than Putnam Limited Duration Government Income Fund and Putnam Floating Rate Income Fund) and equity funds' class M shares reflects a reduction in maximum sales charge that took effect April 1, 2005. Class B share returns reflect 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 Limited Duration Government Income Fund and Putnam Floating Rate Income Fund, which is 3% in the first year, declines to 1% in the fourth year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, R, T, and Y shares prior to their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (with the exception of Putnam Tax-Free High Yield Fund and Putnam AMT-Free Insured Municipal Fund, which are based on the historical performance of class B shares). Class A, M, and T shares of Putnam money market funds have no initial sales charge. For a portion of the period some funds may have limited expenses or been sold on a limited basis with limited assets and expenses, without which returns would be lower. A short-term trading fee of up to 1% may apply.

The Morgan Stanley Capital International (MSCI) Europe Index is an unmanaged index of Western European equity securities. Securities in the fund do not match those in the indexes and performance of the fund will differ. It is not possible to invest directly in an index.

International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. The fund concentrates its investments in one region or in one sector and involves more risk than a fund that invests more broadly.

You can lose money by investing in a fund. Any given fund may not achieve its goal, and is not intended as a complete investment program. All funds have risk. The value and/or returns of a portfolio will fluctuate with market conditions. You may have more or less than the original amount invested when you redeem your shares.

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Expense Ratio

A

1.48%

1.48%

B

2.23%

2.23%

C

2.23%

2.23%

M

1.98%

1.98%

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Lipper Rankings
As of July 31, 2007

Class

1 Year

3 Years

5 Years

10 Years

Lipper Category: European Region

A

40% (41/102)

49% (45/92)

62% (49/79)

75% (27/35)

B

50% (51/102)

61% (56/92)

79% (63/79)

89% (32/35)

C

52% (53/102)

62% (57/92)

78% (62/79)

---

M

43% (44/102)

59% (54/92)

68% (54/79)

84% (30/35)

Lipper Analytical Services, Inc. is an industry research firm whose rankings are based on total return performance and do not reflect the effect of sales charges. Each fund is ranked within a universe of funds similar in investment objective. Past performance is no guarantee of future results.

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Top 10 Holdings	Holdings will vary over time
As of July 31, 2007	Holdings represent 29.76% of portfolio

Rank

Fund

Percentage of Portfolio

1.

Bp Plc Sedol 0798059

4.04%

2.

Total Sa Sedol B15c557

3.64%

3.

Roche Hldg-Genus Sedol 7110388

2.99%

4.

Allianz Se-Reg Sedol 5231485

2.94%

5.

Bhp Billiton Plc Sedol 0056650

2.88%

6.

Basf Ag Sedol 5086577

2.78%

7.

Banco Bilbao Viz Sedol 5501906

2.70%

8.

Hbos Plc Sedol 3058750

2.67%

9.

Siemens Ag Sedol 5727973

2.56%

10.

Statoil Asa Sedol 7133608

2.56%

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Industry Sectors
As of July 31, 2007	Sectors will vary over time

Rank

Sector

Percentage of Portfolio

1.

Financial

27.05%

2.

Basic Materials

11.88%

3.

Other

11.66%

4.

Energy

11.61%

5.

Consumer Cyclical

10.80%

6.

Consumer Staples

8.01%

7.

Utilities

6.06%

8.

Healthcare

5.63%

9.

Communications

5.27%

10.

Cash

2.03%

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Country Allocation
As of July 31, 2007	Allocations will vary over time

Rank

Country

Percentage of Portfolio

1.

United Kingdom

32.63%

2.

Germany

18.16%

3.

France

13.19%

4.

Switzerland

6.67%

5.

Norway

6.52%

6.

Italy

4.53%

7.

Greece

3.37%

8.

Ireland

2.70%

9.

Spain

2.65%

10.

Belgium

2.32%

11.

Finland

2.14%

12.

Netherlands

1.93%

13.

Austria

1.34%

14.

Sweden

1.30%

15.

Russia

0.55%

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Portfolio Composition
As of July 31, 2007	Composition will vary over time

Allocation

Percentage

Common Stock

97.97%

Cash

2.03%

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Portfolio Characteristics
As of July 31, 2007	Portfolio characteristics will vary over time

Risk

Beta

1.02%

Standard Deviation

9.79%

Distribution

Class

Record/Ex Dividend Date

Payable Date

Income

ST Cap Gain

LT Cap Gain

A

12/19/2006

12/28/2006

$0.556000

$0.000000

$0.092000

B

12/19/2006

12/28/2006

$0.270000

$0.000000

$0.092000

C

12/19/2006

12/28/2006

$0.352000

$0.000000

$0.092000

M

12/19/2006

12/28/2006

$0.381000

$0.000000

$0.092000

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Fund Facts
As of July 31, 2007

Fiscal Year End	June
Fund Status	Open to new investors
Dividend Frequency	Annually
Number of Issues	62
Turnover (as of fiscal year end)	106.13%

Class

Inception

Symbol

CUSIP

Number of Accounts

Outstanding Shares

Net Assets

A

September 7, 1990

PEUGX

746747104

36,852

14,165,896

457,936,128

B

February 1, 1994

PEUBX

746747203

8,900

2,276,152

71,053,785

C

July 26, 1999

---

746747401

687

213,326

6,818,258

M

December 1, 1994

PEUMX

746747302

1,479

426,715

13,689,361

Totals

47,918

17,082,089

549,497,531

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Investment Management

Investment Management Team

International Core

Portfolio Leader

Joshua L. Byrne

Portfolio Members

Simon Davis

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Prospectus
You agree to receive this prospectus electronically and to read and agree to its terms before investing or sending money. It contains detailed information about the fund's investment policies, risks, charges and expenses. You can read and print the prospectus while you are online, using a supported browser and Adobe Acrobat Reader™ software. If you would like a preprinted copy of the prospectus, please contact your Edward Jones financial advisor.

This prospectus is not an offer to sell, or a solicitation of an offer to buy shares in the fund nor shall any such shares be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction.

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Copyright 2007, Putnam Retail Management