Emerging Markets Equity Fund  (PEMYX)

Pursuing growth opportunities in developing economies


Track this fund
Morningstar ratings as of 10/31/17
Diversified Emerging Mkts (funds in category)
Overall
(637)
3 yrs.
(637)
5 yrs.
(452)

Objective

The fund seeks capital appreciation.

Strategy and process

  • Growth potential: Emerging markets offer the potential for continued growth due to attractive demographics, rising wealth, and increased investment in infrastructure in developing countries.
  • A disciplined process: By integrating multiple perspectives into portfolio construction, the fund manager is able to better evaluate individual companies within the context of changing local and global influences.
  • Rigorous research: The manager leverages Putnam's global research platform to identify opportunities across emerging and select frontier markets.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $12.69
0.40% | $0.05
$12.69
11/17/17
$8.92
12/27/16
Historical fund price

Fund facts as of 10/31/17

Total net assets
$72.60M
Turnover (fiscal year end)
137%
Dividend frequency
Annually
Number of holdings
109
Fiscal year-end
August
CUSIP / Fund code
746764604 / 1859
Inception date
09/29/08
Category
Blend
Open to new investors
Ticker
PEMYX

Management team


Portfolio Manager


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)

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Performance

  • Total return (%) as of 09/30/17

  • Annual performance as of 09/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. Life (inception: 09/29/08 )
Before sales charge 24.07% 6.37% 6.52% 5.18%
After sales charge N/A N/A N/A N/A
MSCI Emerging Markets Index (ND) 22.46% 4.90% 3.99% --

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 10/31/17 3.07 % -
YTD as of 11/17/17 40.07 % -

Risk-adjusted performance as of 10/31/17

Alpha (3 yrs.) 2.30
Sharpe ratio (3 yrs.) 0.49
Treynor ratio (3 yrs.) 8.06
Information ratio (3 yrs.) 0.34

Volatility as of 10/31/17

Standard deviation (3 yrs.) 14.14%
Beta 0.87
R-squared 0.91

Capture ratio as of 10/31/17

Up-market (3 yrs.) 90.57
Down-market (3 yrs.) 80.22

Lipper rankings as of 10/31/17

Emerging Markets Funds Percentile ranking Rank/Funds in category
1 yr. 16% 124/808
3 yrs. 18% 112/648
5 yrs. 15% 66/462
10 yrs.   --

Morningstar ratings as of 10/31/17

Diversified Emerging Mkts Rating Funds in category
Overall (637)
3 yrs. (637)
5 yrs. (452)

Distributions

Record/Ex dividend date 12/22/16
Payable date 12/27/16
Income $0.107
Extra income $0.0
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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See how this fund compares:

  • Putnam Emerging Markets Equity Fund vs.
  • Vanguard Emerging Mkts Stock Idx InsPlus**

Trailing 5 year performance

** FundVisualizer comparison based on Putnam fund versus the largest fund in its Morningstar category.

** FundVisualizer comparison based on Putnam fund versus the largest fund in its Morningstar category.


Holdings

Top 10 holdings as of 10/31/17

Samsung Electronics 5.94%
Tencent Holdings 5.86%
Alibaba Group Holding 5.85%
Naspers 3.20%
Taiwan Semiconductor Manufacturing 2.73%
China Construction Bank Corp 2.72%
Sberbank Of Russia Pjsc 1.95%
Ping An Insurance Group Of China 1.95%
Industrial Commercial Bank Of China 1.88%
Mediatek 1.58%
Top 10 holdings, percent of portfolio 33.66%

Full portfolio holdings as of 09/30/17

TENCENT HOLDINGS LTD 5.84%
ALIBABA GROUP HOLDING-SP ADR 5.65%
SAMSUNG ELECTRONICS CO LTD 4.92%
NASPERS LTD-N SHS 2.93%
TAIWAN SEMICONDUCTOR MANUFAC 2.52%
CHINA CONSTRUCTION BANK-H 2.39%
IND & COMM BK OF CHINA-H 2.04%
PING AN INSURANCE GROUP CO-H 1.77%
SBERBANK PJSC -SPONSORED ADR 1.76%
ITAU UNIBANCO H-SPON PRF ADR 1.54%
BANK OF CHINA LTD-H 1.36%
ISHARES MSCI EMERGING MARKET 1.29%
BANCO MACRO SA-ADR 1.24%
CHINA WATER AFFAIRS GROUP 1.17%
GRUPO SUPERVIELLE SA-SP ADR 1.17%
TELEKOMUNIKASI INDONESIA PER 1.03%
CTBC FINANCIAL HOLDING CO LT 1.01%
X 5 RETAIL GROUP NV-REGS GDR 1.00%
MEDIATEK INC 0.99%
QUALICORP SA 0.97%
NCSOFT CORP 0.96%
QINGDAO HAIER CO LTD 144A/REGS WARRANT 09/24/2018 0.96%
SK HYNIX INC 0.95%
IRB BRASIL RESSEGUROS SA 0.93%
RICHTER GEDEON NYRT 0.92%
ELITE MATERIAL CO LTD 0.91%
LUKOIL PJSC-SPON ADR 0.91%
MRV ENGENHARIA 0.91%
PTT PCL/FOREIGN 0.90%
BASSO INDUSTRY CORP 0.88%
POWER GRID CORP OF INDIA LTD 0.87%
CHINA TRADITIONAL CHINESE ME 0.86%
FORMOSA PLASTICS CORP 0.85%
CHAILEASE HOLDING CO LTD 0.84%
MEGACABLE HOLDINGS-CPO 0.84%
GRUMA S.A.B.-B 0.82%
UNIFIN FINANCIERA SAB DE CV 0.82%
DUBAI ISLAMIC BANK 0.81%
KOREA ZINC CO LTD 0.81%
CHINA STATE CONSTRUCTION INT 0.80%
RUSHYDRO PJSC-ADR 0.80%
FU SHOU YUAN INTERNATIONAL 0.79%
MONETA MONEY BANK AS 0.79%
NIEN MADE ENTERPRISE CO LTD 0.79%
ING LIFE INS KOREA 0.78%
POYA INTERNATIONAL CO LTD 0.77%
HDFC BANK LIMITED 0.76%
TAIWAN DOLLAR CALL ACCOUNT 0.76%
YANDEX NV-A 0.76%
DEWAN HOUSING FINANCE CORP 0.74%
SAMSUNG ELECTRONICS-PREF 0.74%
WH GROUP LTD 0.74%
EDELWEISS FINANCIAL SERVICES 0.73%
DINO POLSKA SA 0.72%
SER EDUCACIONAL SA 0.70%
CTCI CORP 0.69%
HINDALCO INDUSTRIES LTD 0.69%
KEC INTERNATIONAL LTD 0.69%
AIA GROUP LTD 0.68%
PLAY COMM SA 0.68%
YY INC-ADR 0.68%
BUPA ARABIA FOR COOPERATIVE 144A/REGS WARRANT 03/22/18 0.67%
ATACADAO DISTRIBUICAO COMERC 0.65%
GRAND PACIFIC PETROCHEMICAL 0.65%
PETRONET LNG LTD 0.65%
DONGBU INSURANCE CO LTD 0.63%
CASETEK HOLDINGS LTD 0.62%
ROBINSONS RETAIL HOLDINGS IN 0.62%
SPORTON INTERNATIONAL INC 0.62%
TURKCELL ILETISI 0.62%
ITAUSA-INVESTIMENTOS ITAU-PR 0.60%
KEI INDUSTRIES LTD 0.59%
HYUNDAI MARINE 0.58%
MINTH GROUP LTD 0.58%
UNITED CO RUSAL PLC 0.58%
GENTING BHD 0.56%
SHANGHAI INTL AIRPORT CO LTD 144A REGS WARRANT 05/07/2018 0.56%
CHINASOFT INTERNATIONAL LTD 0.55%
JIANGSU NHWA PHARMACEUTICAL CO LTD 144A REGS WARRANT 06/22/2 0.55%
NCC LTD 0.55%
STERLITE TECHNOLOGIES LTD 0.55%
BIM BIRLESIK MAGAZALAR AS 0.54%
MOTA ENGIL SGPS SA 0.52%
DILIP BUILDCON LTD 0.50%
FLEURY SA 0.50%
BLOOMBERRY RESORTS CORP 0.49%
PADINI HOLDINGS BERHAD 0.49%
CHINA COMMUNICATIONS CONST-H 0.48%
BEIJING CAPITAL INTL AIRPO-H 0.47%
SHANGHAI FOSUN PHARMACEUTI-H 0.46%
BEAUTY COMMUNITY PCL-FOREIGN 0.45%
PAMPA ENERGIA SA-SPON ADR 0.44%
JAIN IRRIGATION SYSTEMS LTD 0.43%
WASKITA BETON PRECAST TBK PT 0.40%
INTER RAO UES PJSC 0.38%
WULIANGYE YIBIN 144A/REGS WARRANT 04/12/2018 0.38%
DELIVERY HERO HOLDIN P/P 0.37%
PC JEWELLER LTD 0.37%
PETROLEO BRASILEIRO-SPON ADR 0.37%
PETROLEO BRASIL-SP PREF ADR 0.24%
GOURMET MASTER CO LTD 0.19%
EEM 20171215 P 43.00UBS 0.13%
GRAPE KING BIO LTD 0.13%
DELIVERY HERO AG 0.12%
BRAZILIAN REAL CALL ACCOUNT 0.10%
GLOBAL FASHION GRP P/P 0.04%
HONG KONG DOLLAR CALL ACCOUNT 0.04%
EEM 20171117 P 42.00UBS 0.03%
GLOBAL FASHION GRP 0.03%
INDIAN RUPEE CALL ACCOUNT 0.03%
VIEWORKS CO LTD 0.03%
CHILEAN PESO CALL ACCOUNT 0.00%
EGYPTIAN POUND CALL ACCOUNT 0.00%
FABFURNISH GMBH P/P 0.00%
INDONESIAN RUPIAH CALL ACCOUNT 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 0.00%
NOVUS HOLDINGS LTD 0.00%
THE EURO EUR CALL ACCOUNT 0.00%
EEM 20171117 P 40.00UBS -0.02%
0700.HK 20171129 C 320.00UBS -0.04%
EEM 20171215 P 41.00UBS -0.07%
PHILIPPINE PESO CALL ACCOUNT -0.16%
KOREAN WON CALL ACCOUNT -0.32%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
Samsung Electronics
Tencent Holdings
Alibaba Group Holding
Naspers
Taiwan Semiconductor Manufacturing
China Construction Bank Corp
Sberbank Of Russia Pjsc
Ping An Insurance Group Of China
Industrial Commercial Bank Of China
Mediatek
Holdings represent 33.66% of portfolio
Top 10 holdings as of 09/30/17
Tencent Holdings
Samsung Electronics
Alibaba Group Holding
Naspers
Taiwan Semiconductor Manufacturing
China Construction Bank Corp
Industrial Commercial Bank Of China
Ping An Insurance Group Of China
Sberbank Of Russia Pjsc
Itau Unibanco Holding
Holdings represent 32.10% of portfolio
Top 10 holdings as of 08/31/17
Tencent Holdings
Alibaba Group Holding
Samsung Electronics
Naspers
Taiwan Semiconductor Manufacturing
Industrial Commercial Bank Of China
China Construction Bank Corp
Ping An Insurance Group Of China
Sberbank Of Russia Pjsc
Bank Of China
Holdings represent 31.64% of portfolio
Top 10 holdings as of 07/31/17
Tencent Holdings
Alibaba Group Holding
Samsung Electronics
Naspers
Taiwan Semiconductor Manufacturing
China Construction Bank Corp
Industrial Commercial Bank Of China
Ping An Insurance Group Of China
Sberbank Of Russia Pjsc
Bank Of China
Holdings represent 30.95% of portfolio

Portfolio composition as of 10/31/17

Common stock 96.14%
Cash and net other assets 3.06%
Preferred stock 0.78%
Convertible preferred stock 0.02%

Equity statistics as of 10/31/17

Median market cap $5.99B
Weighted average market cap $111.88B
Price to book 2.42
Price to earnings 12.06

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. 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) and, 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 several reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer or industry. You can lose money by investing in the fund.

Top Industry Sectors as of 10/31/17

Information technology 28.14%
Financials 25.12%
Consumer discretionary 13.34%
Industrials 6.97%
Consumer staples 4.91%
Health care 4.42%
Materials 4.15%
Energy 4.02%
Cash and net other assets 3.06%
 
Other
5.87%
Utilities 2.93%
Telecommunication services 2.25%
Unclassified 0.69%

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

Sectors will vary over time. Represents the equity portion of the portfolio.

Country Allocation as of 10/31/17

China 28.86%
Taiwan 14.22%
South Korea 11.44%
India 9.64%
Brazil 7.18%
Russia 5.75%
Mexico 3.32%
Argentina 3.27%
South Africa 3.20%
 
Other
13.12%
Cash and net other assets 3.06%
Thailand 1.30%
Hong Kong 1.27%
Turkey 1.13%
Indonesia 1.07%
Malaysia 1.00%
Hungary 0.89%
United Arab Emirates 0.79%
United States 0.69%
Portugal 0.54%
Philippines 0.47%
Germany 0.44%
Greece 0.42%
Luxembourg 0.05%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 2.24% 2.99% 2.99% 2.74% 2.49% 1.99%
What you pay† 1.69% 2.44% 2.44% 2.19% 1.94% 1.44%

† The fund's expense ratio is taken from the most recent prospectus and is subject to change. What you pay reflects Putnam Management's decision to contractually limit expenses through 12/30/17

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 Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. 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. 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) and, 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 several reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer or industry. You can lose money by investing in the fund.