Active Equities

International Value Fund (Class A)  (PNGAX)

Seeks to benefit from undervalued international companies poised to experience positive change

Highlights

Objective

The fund seeks capital growth. Current income is a secondary objective.

Strategy and process

  • International companies The fund provides broad exposure to established large-cap non-U.S. companies trading at a discount to their intrinsic value.
  • A value strategy This relative-value fund focuses on companies that the managers believe possess a catalyst for positive change.
  • A disciplined process The portfolio managers invest using fundamental research and quantitative tools supported by strong risk controls in portfolio construction.

Fund price and assets

 Yesterday’s close 52-week high 52-week low Net assets and outstanding shares
Net asset value $11.43
0.00% | $0.00 		$13.35
06/07/21 		$10.73
05/12/22 		Download CSV
Net assets and outstanding shares
(Optional)

Fund facts as of 04/30/22

Total net assets
$204.00M
Turnover (fiscal year end)
17%
Dividend frequency
Annually
Number of holdings
69
Fiscal year-end
June
CUSIP / Fund code
746763200 / 0051
Inception date
08/01/96
Category
Value
Open to new investors
Ticker
PNGAX

Management team

Darren A. Jaroch, CFA

Portfolio Manager

Lauren B. DeMore, CFA

Portfolio Manager

Literature

A new age of opportunity in health care
As Covid concerns ease and investors focus elsewhere, we remain bullish on health care investing.
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Investors may be underestimating the immense range of potential outcomes for the Russia-Ukraine War.
Teaming up on DX: A compelling investment opportunity
As businesses work at a faster pace to modernize their technology systems, compelling investment opportunities are emerging.

Performance

  • Total return (%) as of 03/31/22

  • Annual performance as of 03/31/22

Annualized Total return (%) as of 03/31/22

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 2.24% 8.66% 5.66% 5.21%
After sales charge -3.64% 6.54% 4.42% 4.59%
MSCI EAFE Value Index (ND) 3.55%5.24%4.18%4.87%

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. The "before sales charge" performance does not reflect the current maximum sales charges, which we explain below. If performance did reflect the charges, it would be lower. The "after sales charge" performance (or returns at public offering price) varies by share class and fund. For class A and class M shares, the current maximum initial sales charges are 5.75% and 3.50% for equity funds and 4.00% and 3.25% for income funds, respectively (with these exceptions: 2.25% for class A of Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return Fund). Class B share performance reflects 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 Floating Rate Income Fund, Putnam Short Duration Bond Fund, and Putnam Fixed Income Absolute Return Fund; for these funds, the CDSC is 1% in the first year, declines to 0.5% in the second year, and is eliminated thereafter). Class C share performance reflects a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, N, R, and Y shares prior to their inception is derived from the historical performance of class A shares by adjusting for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (note, for two funds — Putnam Tax-Free High Yield Fund and Putnam Strategic Intermediate Municipal Fund performance prior to inception is based on the historical performance of class B shares). Performance for class A, C, R6, and Y shares of Putnam Mortgage Opportunities Fund before their inception is derived from the historical performance of class I shares, which has been adjusted for the applicable sales charge (or CDSC) and the higher operating expenses for such shares. The "after sales charge" performance (at public offering price) for class N shares reflects the current maximum initial sales charge of 1.50%. Class R, R3, R4, R5, and R6 shares, which are 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 R3 and R4 shares prior to their inception is derived from the historical performance of class Y shares by adjusting for the higher operating expenses for such shares. Performance for class R5 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower expenses; had it been adjusted, performance would be higher (with the exception of the RetirementReady Maturity, 2025, 2030, 2035, and 2040 Funds, for which performance is derived from the historical performance of class R6 shares and has been adjusted for the higher operating expenses for such shares; and the RetirementReady 2045, 2050, 2055, and 2060 Funds, for which performance is derived from the historical performance of class R6 shares and has not been adjusted for the lower expenses; had it been adjusted, performance would be higher). Performance for class R6 shares before their inception is derived from the historical performance of class Y shares, which has not been adjusted for the lower operating expenses; had it been adjusted, performance would be higher. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses. Had these limits not been in place, performance would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 04/30/22 -5.99% -11.39%
YTD as of 05/23/22 -6.46% -11.84%

Risk-adjusted performance as of 04/30/22

Alpha (3 yrs.) 2.65
Sharpe ratio (3 yrs.) 0.23
Treynor ratio (3 yrs.) 4.71
Information ratio (3 yrs.) 0.90

Volatility as of 04/30/22

Standard deviation (3 yrs.) 19.95%
Beta 0.98
R-squared 0.98

Capture ratio as of 04/30/22

Up-market (3 yrs.) 106.65
Down-market (3 yrs.) 96.62

Lipper rankings as of 04/30/22

Time period Rank/Funds in category Percentile ranking
1 yr. 37/73 50%
3 yrs. 10/60 17%
5 yrs. 15/57 26%
10 yrs. 20/46 43%
Lipper category: International Large-Cp Val Fds

Morningstar Ratings™ as of 04/30/22

Time period Funds in category Morningstar Rating™
Overall 317
3 yrs. 317
5 yrs. 285
10 yrs. 175
Morningstar category: Foreign Large Value

Distributions

Record/Ex dividend date 12/22/21
Payable date 12/27/21
Income $0.142
Extra income --
Short-term cap. gain $0.138
Long-term cap. gain $0.416

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.

Holdings

Sanofi 3.44%
Mitsubishi Corp 2.73%
Shell 2.61%
Vinci 2.59%
Ing Groep Nv 2.47%
HSBC Holdings 2.41%
Australia New Zealand Banking Group 2.39%
Suncor Energy 2.34%
Nippon Telegraph Telephone Corp 2.33%
Sony Group Corp 2.29%
Top 10 holdings, percent of portfolio 25.60%

Portfolio composition as of 04/30/22

Common stock 95.57%
Cash and net other assets 4.43%

Equity statistics as of 04/30/22

Median market cap $33.48B
Weighted average market cap $65.63B
Price to book 1.33
Price to earnings 10.07

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. Because the fund currently invests, and may in the future invest, significantly in European companies, the fund is particularly susceptible to economic, political, regulatory, or other events or conditions affecting issuers in Europe. Investments in small and/or midsize companies increase the risk of greater price fluctuations.

Value stocks may fail to rebound, and the market may not favor value-style investing. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. 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.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.

Top industry sectors as of 04/30/22

Financials 30.47%
Industrials 15.85%
Consumer discretionary 8.42%
Energy 7.94%
Consumer staples 7.41%
Health care 6.82%
Communication services 6.49%
Materials 5.49%
Cash and net other assets 4.43%
 
Other		 6.68%
Utilities 4.17%
Information technology 2.51%

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 04/30/22

United Kingdom 24.98%
Japan 20.22%
France 15.08%
Australia 6.13%
Germany 5.35%
Canada 4.50%
Cash and net other assets 4.43%
Netherlands 4.14%
Ireland 3.69%
 
Other		 11.48%
South Korea 3.09%
Hong Kong 2.26%
Switzerland 1.69%
Singapore 1.10%
Taiwan 1.05%
Norway 1.00%
Spain 0.65%
Finland 0.64%

Expenses

Expense ratio

 Class A Class B Class C Class R Class R6 Class Y
Total expense ratio 1.43% 2.18% 2.18% 1.68% 0.99% 1.18%
What you pay† 1.14% 1.89% 1.89% 1.39% 0.70% 0.89%

† 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 10/30/23

Sales charge

Investment Breakpoint Class A Class B Class C Class R Class R6 Class Y
$0-$49,999 5.75% 0.00% 0.00% -- -- --
$50,000-$99,999 4.50% 0.00% 0.00% -- -- --
$100,000-$249,999 3.50% -- 0.00% -- -- --
$250,000-$499,999 2.50% -- 0.00% -- -- --
$500,000-$999,999 2.00% -- 0.00% -- -- --
$1M-$4M 0.00% -- -- -- -- --
$4M-$50M 0.00% -- -- -- -- --
$50M+ 0.00% -- -- -- -- --

CDSC

  Class A (sales for $1,000,000+) Class B Class C 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% -- -- --

The MSCI EAFE Value Index is an unmanaged index that measures the performance of equity securities in 20 countries within Europe, Australasia and the Far East, chosen for their value orientation. 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. Because the fund currently invests, and may in the future invest, significantly in European companies, the fund is particularly susceptible to economic, political, regulatory, or other events or conditions affecting issuers in Europe. Investments in small and/or midsize companies increase the risk of greater price fluctuations.

Value stocks may fail to rebound, and the market may not favor value-style investing. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. 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.

Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund.