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Emerging Markets Equity Fund (Class Y)  (PEMYX)

Pursuing growth opportunities in developing economies

Highlights

Objective

The fund seeks long-term 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 $10.92
-0.09% | $-0.01
$14.21
01/26/18
$10.31
10/29/18
Historical fund price

Fund facts as of 10/31/18

Total net assets
$163.78M
Turnover (fiscal year end)
172%
Dividend frequency
Annually
Number of holdings
89
Fiscal year-end
August
CUSIP / Fund code
746764604 / 1859
Inception date
09/29/08
Class Y  
Category
Blend
Open to new investors
Ticker
PEMYX

Management team

Portfolio Manager


Performance

  • Total return (%) as of 09/30/18

  • Annual performance as of 09/30/18

Annualized Total return (%) as of 09/30/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge -2.34% 12.68% 4.73% 4.41%
After sales charge N/A N/A N/A N/A
MSCI Emerging Markets Index (ND) -0.81% 12.36% 3.61% 5.40%

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. 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 Multi-Asset Absolute Return Fund, and 4.00% and 3.25% for income funds (2.25% and 0.75% for Putnam Short Duration Bond Fund and 1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Fixed Income Absolute Return 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 Short Duration Bond Fund, Putnam Fixed Income Absolute Return 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, N, 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). Returns at public offering price (after sales charge) for class N shares reflect the current maximum initial sales charge of 1.50%. 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 10/31/18 -9.89 % -
YTD as of 11/16/18 -15.35 % -

Risk-adjusted performance as of 10/31/18

Alpha (3 yrs.) 0.39
Sharpe ratio (3 yrs.) 0.39
Treynor ratio (3 yrs.) 6.15
Information ratio (3 yrs.) -0.05

Volatility as of 10/31/18

Standard deviation (3 yrs.) 13.77%
Beta 0.89
R-squared 0.89

Capture ratio as of 10/31/18

Up-market (3 yrs.) 91.21
Down-market (3 yrs.) 89.78

Lipper rankings as of 10/31/18

Time period Rank/Funds in category Percentile ranking
1 yr. 469/846 56%
3 yrs. 201/722 28%
5 yrs. 95/518 19%
10 yrs. 149/237 63%
Lipper category: Emerging Markets Funds

Morningstar Ratings as of 10/31/18

Time period Funds in category Morningstar Rating
Overall 710
3 yrs. 710
5 yrs. 511
10 yrs. 230
Morningstar category: Diversified Emerging Mkts

Distributions

Record/Ex dividend date 12/21/17
Payable date 12/26/17
Income $0.031
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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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 10/31/18

Samsung Electronics 5.27%
Alibaba Group Holding 4.81%
Tencent Holdings 3.63%
Taiwan Semiconductor Manufacturing 2.88%
Ishares Msci Emerging Mkt In Sedol 2582409 2.84%
Lukoil Pjsc 2.59%
Ping An Insurance Group Of China 1.96%
Itau Unibanco Holding 1.93%
Petroleo Brasileiro 1.93%
Aia Group 1.87%
Top 10 holdings, percent of portfolio 29.71%

Full portfolio holdings as of 09/30/18

ALIBABA GROUP HOLDING-SP ADR 5.15%
SAMSUNG ELECTRONICS CO LTD 4.46%
TENCENT HOLDINGS LTD 4.15%
TAIWAN SEMICONDUCTOR MANUFAC 3.12%
LUKOIL PJSC-SPON ADR 2.35%
PING AN INSURANCE GROUP CO-H 2.26%
CNOOC LTD 1.95%
AIA GROUP LTD 1.85%
CHINA CONSTRUCTION BANK-H 1.70%
ITAU UNIBANCO H-SPON PRF ADR 1.69%
MEDIATEK INC 1.59%
NASPERS LTD-N SHS 1.54%
CHINA MOBILE LTD 1.51%
HOUSING DEVELOPMENT FINANCE 1.50%
SASOL LTD 1.49%
GRUMA S.A.B.-B 1.47%
CHINA WATER AFFAIRS GROUP 1.34%
HONG KONG DOLLAR CALL ACCOUNT 1.34%
VALE SA-SP ADR 1.26%
GENTERA SAB DE CV 1.24%
BRILLIANCE CHINA AUTOMOTIVE 1.23%
WULIANGYE YIBIN 144A/REGS WARRANT 04/12/2019 1.16%
HDFC BANK LIMITED 1.13%
HANA FINANCIAL GROUP 1.12%
MEGACABLE HOLDINGS-CPO 1.11%
DB INSURANCE CO LTD 1.10%
AL RAJHI BANK 144A/REGS WARRANT 02/21/2019 1.07%
CANVEST ENVIRONMENTAL PROTEC 1.05%
CATHAY FINANCIAL HOLDING CO 1.05%
GRUPO FINANCIERO BANORTE-O 1.04%
INDORAMA VENTURES-FOREIGN 1.04%
SAMSUNG ELECTRONICS-PREF 1.04%
SUNNY FRIEND ENVIRONMENTAL T 1.04%
MOTOR OIL (HELLAS) SA 1.02%
PETRONAS CHEMICALS GROUP BHD 1.02%
GEOPARK LTD 0.99%
TAIWAN DOLLAR CALL ACCOUNT 0.98%
ABU DHABI COMMERCIAL BANK 0.97%
CHINA STATE CONSTRUCTION INT 0.96%
CREDICORP LTD 0.96%
CHAILEASE HOLDING CO LTD 0.95%
LARSEN & TOUBRO INFO 0.95%
INFOSYS LTD 0.93%
SAMBA FINANCIAL GROUP 144A/REGS WARRANT 07/15/19 0.93%
CTCI CORP 0.91%
FORMOSA PLASTICS CORP 0.87%
ADVANCED INFO SERVICE-FOR RG 0.86%
DINO POLSKA SA 0.86%
CHINA TRADITIONAL CHINESE ME 0.85%
WALMART DE MEXICO SAB DE CV 0.85%
MGM CHINA HOLDINGS LTD 0.84%
MEXICHEM SAB DE CV-* 0.82%
PETROLEO BRASILEIRO-SPON ADR 0.82%
DISCOVERY LTD 0.80%
HANGZHOU HIKVISION DIGITAL - A 144A/REGS WARRANT 02/11/2019 0.79%
LOCALIZA RENT A CAR 0.77%
HYUNDAI MARINE 0.75%
LG HOUSEHOLD & HEALTH CARE 0.75%
GRAPE KING BIO LTD 0.74%
JNBY DESIGN LTD 0.72%
NEW ORIENTAL EDUCATIO-SP ADR 0.72%
YANDEX NV-A 0.71%
CAFE24 CORP 0.69%
CTBC FINANCIAL HOLDING CO LT 0.69%
KEI INDUSTRIES LTD 0.67%
SUNNY OPTICAL TECH 0.67%
CLEAN TEQ HOLDINGS LTD 0.66%
SBERBANK PJSC -SPONSORED ADR 0.66%
SHENGYI TECH 144A/REGS WARRANT 05/24/2019 0.65%
BANGKOK CHAIN HOSPITAL-FOREG 0.64%
NATURA COSMETICOS SA 0.62%
POYA INTERNATIONAL CO LTD 0.61%
DAI DONG CO LTD 0.60%
SUZANO PAPEL E CELULOSE SA 0.58%
HANS LASER TECHNOLOGY 144A/REGS WARRANT 09/27/2019 0.56%
FIRST ABU DHABI BANK PJSC 0.55%
AUROBINDO PHARMA LTD 0.53%
CHINA EVERBRIGHT GREENTECH L 0.53%
TCI CO LTD 0.53%
SAUDI KAYAN PETROCHEMICAL 144A/REGS WARRANT 02/16/2021 0.52%
AZUL SA-ADR 0.51%
KOREAN WON CALL ACCOUNT 0.51%
CHINA ORIENTAL GROUP CO LTD 0.49%
FLEURY SA 0.49%
ERAJAYA SWASEMBADA TBK PT 0.48%
KEC INTERNATIONAL LTD 0.44%
EDELWEISS FINANCIAL SERVICES 0.43%
CHINA NATIONAL BUILDING MA-H 0.42%
HILONG HOLDING LTD 0.42%
FU SHOU YUAN INTERNATIONAL 0.40%
WEST CHINA CEMENT LTD 0.40%
ELITE MATERIAL CO LTD 0.38%
SKIPPER LTD 0.35%
INDIAN RUPEE CALL ACCOUNT 0.27%
THAILAND BAHT CALL ACCOUNT 0.13%
SOUTH AFRICAN RAND CALL ACCOUNT 0.12%
BRAZILIAN REAL CALL ACCOUNT 0.07%
MALAYSIAN RINGGIT CALL ACCOUNT 0.05%
THE EURO EUR CALL ACCOUNT 0.05%
POLISH ZLOTY CALL ACCOUNT 0.04%
UAE DIRHAM CALL ACCOUNT 0.04%
AUSTRALIAN DOLLAR ACCOUNT 0.01%
GLOBAL FASHION GRP 0.01%
GLOBAL FASHION GRP P/P 0.01%
CHILEAN PESO CALL ACCOUNT 0.00%
EGYPTIAN POUND CALL ACCOUNT 0.00%
HC BRILLANT SERVICES 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%
MEXICAN PESO CALL ACCOUNT -0.11%
POUND STERLING CALL ACCOUNT -0.57%

Prior top 10 holdings

Top 10 holdings as of 10/31/18
Samsung Electronics
Alibaba Group Holding
Tencent Holdings
Taiwan Semiconductor Manufacturing
Ishares Msci Emerging Mkt In Sedol 2582409
Lukoil Pjsc
Ping An Insurance Group Of China
Itau Unibanco Holding
Petroleo Brasileiro
Aia Group
Holdings represent 29.71% of portfolio
Top 10 holdings as of 09/30/18
Samsung Electronics
Alibaba Group Holding
Tencent Holdings
Taiwan Semiconductor Manufacturing
Lukoil Pjsc
Ping An Insurance Group Of China
Cnooc
Aia Group
China Construction Bank Corp
Itau Unibanco Holding
Holdings represent 29.72% of portfolio
Top 10 holdings as of 08/31/18
Tencent Holdings
Samsung Electronics
Alibaba Group Holding
Taiwan Semiconductor Manufacturing
Naspers
Ping An Insurance Group Of China
Lukoil Pjsc
Sasol
Mediatek
China Construction Bank Corp
Holdings represent 31.57% of portfolio
Top 10 holdings as of 07/31/18
Tencent Holdings
Alibaba Group Holding
Samsung Electronics
Naspers
Taiwan Semiconductor Manufacturing
Lukoil Pjsc
Sasol
Housing Development Finance Corp
Mediatek
China Construction Bank Corp
Holdings represent 30.69% of portfolio

Portfolio composition as of 10/31/18

Common stock 91.28%
Cash and net other assets 7.69%
Preferred stock 1.02%
Convertible preferred stock 0.01%

Equity statistics as of 10/31/18

Median market cap $4.98B
Weighted average market cap $83.78B
Price to book 1.96
Price to earnings 10.41

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, industry or sector. You can lose money by investing in the fund.

Top industry sectors as of 10/31/18

Financials 24.13%
Information technology 13.46%
Materials 8.63%
Energy 8.61%
Communication services 8.46%
Consumer discretionary 7.83%
Cash and net other assets 7.69%
Consumer staples 7.20%
Industrials 5.91%
 
Other
8.08%
Unclassified 2.84%
Health care 2.72%
Utilities 2.52%

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 10/31/18

China 23.93%
Taiwan 11.06%
South Korea 9.63%
Brazil 8.90%
Cash and net other assets 7.69%
India 7.10%
Russia 4.16%
Mexico 4.04%
South Africa 3.76%
 
Other
19.73%
Saudi Arabia 3.41%
United States 2.84%
Thailand 2.71%
Hong Kong 1.87%
United Arab Emirates 1.75%
Peru 1.53%
Malaysia 1.07%
Greece 1.04%
Colombia 0.84%
Poland 0.81%
Kuwait 0.67%
Indonesia 0.65%
Australia 0.52%
Luxembourg 0.02%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 2.06% 2.81% 2.81% 2.56% 2.31% 1.61% 1.81%
What you pay† 1.28% 2.03% 2.03% 1.78% 1.53% 0.83% 1.03%

† 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 12/30/19

Sales charge

 Breakpoint Class A Class B Class C Class M Class R Class R6 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 R6 Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- -- --
9 to 12 mts. 1.00% 5.00% 1.00% -- -- -- --
2 yrs. 0.00% 4.00% 0.00% -- -- -- --
3 yrs. 0.00% 3.00% 0.00% -- -- -- --
4 yrs. 0.00% 3.00% 0.00% -- -- -- --
5 yrs. 0.00% 2.00% 0.00% -- -- -- --
6 yrs. 0.00% 1.00% 0.00% -- -- -- --
7+ yrs. 0.00% 0.00% 0.00% -- -- -- --

Trail commissions

  Class A Class B Class C Class M Class R Class R6 Class Y
  0.25% 0.25% 1.00% 0.65% 0.50% 0.00% 0.00%
  NA NA 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, industry or sector. You can lose money by investing in the fund.