Europe Equity Fund  (PEUGX)

Pursuing the growth potential of established companies in European markets


Track this fund

Objective

The fund seeks capital appreciation.

Strategy and process

  • European companies: The fund invests in established large and midsize companies across Europe that benefit from the region's economy and from operations in global markets.
  • A flexible strategy: Pursuing Putnam's blend strategy, the fund can own growth- or value-style stocks to participate when either style leads European markets.
  • A disciplined process: The fund manager combines fundamental research and quantitative tools to pursue multiple sources of return, supported by strong risk controls in portfolio construction.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $27.63
-0.36% | $-0.10
$29.39
01/26/18
$23.46
02/24/17
Historical fund price

Fund facts as of 01/31/18

Total net assets
$227.66M
Turnover (fiscal year end)
47%
Dividend frequency
Annually
Number of holdings
63
Fiscal year-end
June
CUSIP / Fund code
746747104 / 0032
Inception date
09/07/90
Category
Blend
Open to new investors
Ticker
PEUGX

Management team

Co-Head of Equities


Literature

Fund documents

Fact Sheet (Y share) (PDF)
Prospectus (PDF)
Annual Report (PDF)
Semiannual Report (PDF)
Proxy voting results (Form N-PX) (PDF)
Equity Outlook (PDF)
Comparing Putnam's international/global equity funds (PDF)

Just how cheap are European equities?
Our analysis finds that industry group weightings play a significant role in valuation discrepancies between U.S. and European equities.
Proceeding toward Brexit: The risks for investors
With the United Kingdom beginning to move forward with Brexit, we see risks to the economy, the pound, and the markets.
Why Brexit would spell trouble for the United Kingdom
Several risks exist for U.K. stocks and European markets if what is known as Brexit wins approval from British voters.

Performance

  • Total return (%) as of 12/31/17

  • Annual performance as of 12/31/17

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 21.15% 5.39% 7.44% 2.07%
After sales charge 14.18% 3.33% 6.18% 1.47%
MSCI Europe Index (ND) 25.51% 6.69% 7.37% 1.34%

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. To obtain the most recent month-end performance, visit putnam.com. Performance assumes reinvestment of distributions and does not account for taxes. Returns before sales charge do not reflect the current maximum sales charges as indicated below. Had the sales charge been reflected, returns would be lower. Returns at public offering price (after sales charge) for class A and class M shares reflect the current maximum initial sales charges of 5.75% and 3.50% for equity funds and Putnam Absolute Return 500 Fund and 700 Fund, and 4.00% and 3.25% for income funds (1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income Fund), respectively. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income Fund, which is 1% in the first year, declining to 0.5% in the second 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, T1, 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 Municipal Fund, which are based on the historical performance of class B shares). Class R5/R6 shares, 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 R5/R6 shares before their inception are derived from the historical performance of class Y shares, which have not been adjusted for the lower expenses; had they, returns would have been higher. Class A, M, and T1 shares of Putnam money market funds have no initial sales charge. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses, without which returns would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 01/31/18 5.50 % -0.56 %
YTD as of 02/21/18 0.69 % -5.10 %

Risk-adjusted performance as of 01/31/18

Alpha (3 yrs.) -1.18
Sharpe ratio (3 yrs.) 0.53
Treynor ratio (3 yrs.) 6.94
Information ratio (3 yrs.) -0.56

Volatility as of 01/31/18

Standard deviation (3 yrs.) 12.27%
Beta 0.94
R-squared 0.95

Capture ratio as of 01/31/18

Up-market (3 yrs.) 90.79
Down-market (3 yrs.) 96.42

Lipper rankings as of 01/31/18

European Region Funds Percentile ranking Rank/Funds in category
1 yr. 72% 111/154
3 yrs. 75% 96/128
5 yrs. 58% 56/96
10 yrs. 40% 27/67

Morningstar ratings as of 01/31/18

Europe Stock Rating Funds in category
Overall (102)
3 yrs. (102)
5 yrs. (77)
10 yrs. (57)

Distributions

Record/Ex dividend date 12/21/17
Payable date 12/28/17
Income $0.132
Extra income --
Short-term cap. gain --
Long-term cap. gain --

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.


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Holdings

Top 10 holdings as of 01/31/18

Total 3.31%
Siemens Ag 3.15%
Bayer Ag 3.13%
Unilever Nv 2.82%
Ing Groep Nv 2.73%
Prudential 2.68%
Novartis Ag 2.58%
Rio Tinto 2.29%
Airbus 2.22%
Societe Generale 2.20%
Top 10 holdings, percent of portfolio 27.11%

Full portfolio holdings as of 12/31/17

TOTAL SA 3.41%
SIEMENS AG 2.96%
BAYER AG-REG 2.91%
UNILEVER NV-CVA 2.81%
ING GROEP NV-CVA 2.78%
SANOFI 2.78%
PRUDENTIAL PLC 2.72%
RIO TINTO PLC 2.23%
DANSKE BANK A/S 2.14%
VALEO SA 2.08%
VEOLIA ENVIRONNEMENT 2.06%
BASF SE 2.03%
SOCIETE GENERALE SA 2.01%
AIRBUS SE 1.98%
ASTRAZENECA PLC 1.96%
SHIRE PLC 1.96%
KONINKLIJKE AHOLD DELHAIZE N 1.94%
DIAGEO PLC 1.90%
NOVARTIS AG-REG 1.85%
UNIPER SE 1.81%
RHEINMETALL AG 1.80%
HEINEKEN NV 1.69%
COMPASS GROUP PLC 1.68%
ENI SPA 1.67%
NATIXIS 1.65%
STMICROELECTRONICS NV 1.54%
CRH PLC 1.53%
NORSK HYDRO ASA 1.53%
EVONIK INDUSTRIES AG 1.52%
ASSOCIATED BRITISH FOODS PLC 1.51%
KERRY GROUP PLC-A 1.50%
PARTNERS GROUP HOLDING AG 1.50%
ADIDAS AG 1.44%
COM HEM HOLDING AB 1.41%
EURAZEO SA 1.41%
KKR & CO LP 1.35%
AENA SME SA 1.34%
NOKIA OYJ 1.34%
HENKEL AG & CO KGAA VORZUG 1.33%
ASML HOLDING NV 1.22%
ST JAMES'S PLACE PLC 1.22%
RPC GROUP PLC 1.20%
ASSA ABLOY AB-B 1.17%
DIXONS CARPHONE PLC 1.11%
PIRELLI & C SPA 1.11%
KION GROUP AG 1.09%
MICRO FOCUS INTERNATIONAL 1.09%
ROYAL DUTCH SHELL PLC-A SHS 1.09%
ALPHABET INC-CL C 1.00%
BANK OF IRELAND GROUP PLC 1.00%
BERKELEY GROUP HOLDINGS/THE 0.99%
AMAZON.COM INC 0.95%
BAE SYSTEMS PLC 0.94%
CAIXABANK S.A 0.90%
VIRGIN MONEY HOLDINGS UK 0.89%
ADECCO GROUP AG-REG 0.86%
TURKCELL ILETISI 0.85%
COMPUGROUP MEDICAL SE 0.83%
HIBERNIA REIT PLC 0.83%
ORION ENGINEERED CARBONS SA 0.80%
JOHNSON CONTROLS INTERNATION 0.74%
DELIVERY HERO AG 0.72%
ALTICE NV - A 0.70%
CHF/USD 03/21/2018 JPMCB 0.02%
GBP/USD 03/21/2018 JPMCB 0.02%
CHF/USD 03/21/2018 BCAP-FX 0.00%
DKK/USD 03/21/2018 CITI 0.00%
EUR/USD 03/21/2018 BANKAM 0.00%
EUR/USD 03/21/2018 CITI 0.00%
EUR/USD 03/21/2018 GSFX 0.00%
EUR/USD 03/21/2018 HSBCB 0.00%
EUR/USD 03/21/2018 JPMCB 0.00%
EUR/USD 03/21/2018 SSBT 0.00%
GBP/USD 03/21/2018 BANKAM 0.00%
GBP/USD 03/21/2018 GSFX 0.00%
GBP/USD 03/21/2018 SSBT 0.00%
NOK/USD 03/21/2018 JPMCB 0.00%
POUND STERLING CALL ACCOUNT 0.00%
SEK/USD 03/21/2018 JPMCB 0.00%
SEK/USD 03/21/2018 SSBT 0.00%
THE EURO EUR CALL ACCOUNT 0.00%

Prior top 10 holdings

Top 10 holdings as of 01/31/18
Total
Siemens Ag
Bayer Ag
Unilever Nv
Ing Groep Nv
Prudential
Novartis Ag
Rio Tinto
Airbus
Societe Generale
Holdings represent 27.11% of portfolio
Top 10 holdings as of 12/31/17
Total
Siemens Ag
Bayer Ag
Unilever Nv
Sanofi
Ing Groep Nv
Prudential
Rio Tinto
Danske Bank A/S
Valeo
Holdings represent 26.82% of portfolio
Top 10 holdings as of 11/30/17
Total
Bayer Ag
Sanofi
Siemens Ag
Unilever Nv
Prudential
Ing Groep Nv
BASF
Airbus
Danske Bank A/S
Holdings represent 27.71% of portfolio
Top 10 holdings as of 10/31/17
Total
Siemens Ag
Bayer Ag
Sanofi
Unilever Nv
Ing Groep Nv
Prudential
Airbus
Societe Generale
Danske Bank A/S
Holdings represent 28.03% of portfolio

Portfolio composition as of 01/31/18

Common stock 96.84%
Cash and net other assets 3.16%

Equity statistics as of 01/31/18

Median market cap $21.83B
Weighted average market cap $71.31B
Price to book 1.98
Price to earnings 15.62

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Investments in a single region may be affected by common economic forces and other factors. In addition, events in any one country within the region may impact the other countries or the region as a whole. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Risks associated with derivatives include increased investment exposure, which may be considered leverage, or, 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. Stock prices may fall or fail to rise over time for a variety of reasons, including general financial market conditions and factors related to a specific issuer or industry. You can lose money by investing in the fund.

Top Industry Sectors as of 01/31/18

Financials 20.85%
Industrials 15.04%
Consumer staples 12.07%
Health care 10.15%
Materials 9.81%
Consumer discretionary 9.52%
Information technology 6.55%
Energy 6.01%
Utilities 3.65%
 
Other
6.35%
Cash and net other assets 3.16%
Telecommunication services 2.71%
Real estate 0.48%

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

Sectors will vary over time.

Country Allocation as of 01/31/18

United Kingdom 21.46%
Germany 17.98%
France 17.45%
Netherlands 11.13%
Switzerland 5.86%
Ireland 4.52%
United States 3.82%
Cash and net other assets 3.16%
Spain 3.12%
 
Other
11.50%
Italy 3.09%
Sweden 2.78%
Denmark 2.18%
Norway 1.43%
Luxembourg 0.90%
Russia 0.67%
Turkey 0.45%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 1.29% 2.04% 2.04% 1.79% 1.54% 1.04%
What you pay 1.29% 2.04% 2.04% 1.79% 1.54% 1.04%

Sales charge/Dealer allowance

 Breakpoint Class A Class B Class C Class M Class R Class Y
$0-$49,999 5.75% / 5.00% 0.00% / 4.00% 0.00% / 1.00% 3.50% / 3.00% -- --
$50,000-$99,999 4.50% / 3.75% 0.00% / 4.00% 0.00% / 1.00% 2.50% / 2.00% -- --
$100,000-$249,999 3.50% / 2.75% -- 0.00% / 1.00% 1.50% / 1.00% -- --
$250,000-$499,999 2.50% / 2.00% -- 0.00% / 1.00% 1.00% / 1.00% -- --
$500,000-$999,999 2.00% / 1.75% -- 0.00% / 1.00% 1.00% / 1.00% -- --
$1M-$4M 0.00% / 1.00% -- -- -- -- --
$4M-$50M 0.00% / 0.50% -- -- -- -- --
$50M+ 0.00% / 0.25% -- -- -- -- --

CDSC

  Class A (sales for $1,000,000+) Class B Class C Class M Class R Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- --
9 to 12 mts. 0.00% 5.00% 1.00% -- -- --
2 yrs. -- 4.00% 0.00% -- -- --
3 yrs. -- 3.00% 0.00% -- -- --
4 yrs. -- 3.00% 0.00% -- -- --
5 yrs. -- 2.00% 0.00% -- -- --
6 yrs. -- 1.00% 0.00% -- -- --
7+ yrs. -- 0.00% 0.00% -- -- --

Trail commissions

  Class A Class B Class C Class M Class R Class Y
  0.25% 0.25% 1.00% 0.65% 0.50% 0.00%
  NA NA NA NA NA NA
  NA NA NA NA NA NA

For sales and trail commission information on purchases over $1 million and participant-directed qualified retirement plans, see a Putnam fund prospectus and the statement of additional information.

MSCI Europe Index is an unmanaged index of Western European equity securities. You cannot invest directly in an index.

Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Investments in a single region may be affected by common economic forces and other factors. In addition, events in any one country within the region may impact the other countries or the region as a whole. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Risks associated with derivatives include increased investment exposure, which may be considered leverage, or, 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. Stock prices may fall or fail to rise over time for a variety of reasons, including general financial market conditions and factors related to a specific issuer or industry. You can lose money by investing in the fund.