International Value Fund  (PNGYX)

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

Objective

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

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $12.12
-0.08% | $-0.01
$12.13
10/13/17
$9.87
11/18/16
Historical fund price

Fund facts as of 09/30/17

Total net assets
$164.28M
Turnover (fiscal year end)
16%
Dividend frequency
Annually
Number of holdings
86
Fiscal year end
June
CUSIP / Fund code
746763614 / 1851
Inception Date
10/02/00
Category
Value
Open to new investors
Ticker
PNGYX

Management team


Portfolio Manager

Portfolio Manager

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 manager believes possess a catalyst for positive change.
  • 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.

Manager commentary | Q2 2017

France outshines U.K. in investment opportunity

Portfolio Manager Darren Jaroch offers his outlook for equity markets in the United Kingdom and France.


Literature


Why a meaningful near-term market correction is unlikely
2017 is a rare year without a stock market correction of at least 5%, but that doesn't make a correction more likely in the fourth quarter.
How the Japan election may influence global interest rates
The Japan election could have consequences for the future leadership of the Bank of Japan and the country's impact on global interest rate trends.
Using and enhancing ESG investment data
ESG data is having investment impact but is still evolving, and stands to benefit from feedback offered by fundamental analysts.

Performance

  • Total return (%) as of 09/30/17

  • Annual performance as of 09/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 20.87% 4.24% 7.40% -0.13%
After sales charge N/A N/A N/A N/A
MSCI EAFE Value Index (ND) 22.55% 3.50% 7.80% 0.49%

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 09/30/17 3.17 % -
YTD as of 10/16/17 21.93 % -

Risk-adjusted performance as of 09/30/17

Alpha (3 yrs.) 1.17
Sharpe ratio (3 yrs.) 0.34
Treynor ratio (3 yrs.) 4.58
Information ratio (3 yrs.) 0.19

Volatility as of 09/30/17

Standard deviation (3 yrs.) 11.75%
Beta 0.87
R-squared 0.91

Capture ratio as of 09/30/17

Up-market (3 yrs.) 92.03
Down-market (3 yrs.) 86.09

Lipper rankings as of 09/30/17

International Large-Cap Value Percentile ranking Rank/Funds in category
1 yr. 56% 19/33
3 yrs. 19% 6/31
5 yrs. 30% 9/29
10 yrs. 60% 12/19

Morningstar ratings as of 09/30/17

Foreign Large Value Rating Funds in category
Overall (261)
3 yrs. (88)
5 yrs. (84)
10 yrs. (136)

Distributions

Record/Ex dividend date 12/22/16
Payable date 12/27/16
Income $0.251
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.


Holdings

Top 10 holdings as of 09/30/17

Ing Groep Nv 4.22%
Royal Dutch Shell 3.15%
Sanofi 2.70%
Siemens Ag 2.38%
Societe Generale 2.15%
Australia New Zealand Banking Group 2.14%
Vinci 2.12%
Prudential 2.04%
Novartis Ag 1.97%
Suncor Energy 1.95%
Top 10 holdings, percent of portfolio 24.82%

Full portfolio holdings as of 06/30/17

ING GROEP NV-CVA 4.12%
SANOFI 2.71%
SIEMENS AG 2.42%
AUST AND NZ BANKING GROUP 2.11%
PHILIP MORRIS INTERNATIONAL 2.08%
SOCIETE GENERALE SA 2.06%
PRUDENTIAL PLC 2.04%
NOVARTIS AG-REG 1.99%
VINCI SA 1.99%
VODAFONE GROUP PLC 1.92%
NISSAN MOTOR CO LTD 1.86%
ROYAL DUTCH SHELL PLC-A SHS 1.83%
SUNCOR ENERGY INC 1.70%
AXA SA 1.69%
ASTRAZENECA PLC 1.68%
CHALLENGER LTD 1.68%
NIPPON TELEGRAPH & TELEPHONE 1.63%
SUMITOMO MITSUI FINANCIAL GR 1.63%
WPP PLC 1.60%
AIA GROUP LTD 1.49%
MITSUBISHI CORP 1.48%
SAMSUNG ELECTRONICS CO LTD 1.48%
CHUBB LTD 1.43%
KERRY GROUP PLC-A 1.36%
RIO TINTO PLC 1.35%
BAYER AG-REG 1.30%
IMPERIAL BRANDS PLC 1.30%
AKZO NOBEL 1.27%
NINTENDO CO LTD 1.23%
HIBERNIA REIT PLC 1.17%
SCOR SE 1.16%
SPARK NEW ZEALAND LTD 1.15%
VEOLIA ENVIRONNEMENT 1.15%
INSURANCE AUSTRALIA GROUP LTD 1.12%
NOKIA OYJ 1.11%
SSE PLC 1.11%
TOTAL SA 1.11%
DANSKE BANK A/S 1.08%
ROYAL DUTCH SHELL PLC-B SHS 1.05%
TDK CORP 1.03%
LANXESS AG 1.00%
JAPAN AIRLINES CO LTD 0.97%
ALLIANZ SE-REG 0.96%
MURATA MANUFACTURING CO LTD 0.93%
EURAZEO SA 0.91%
ORIX CORP 0.90%
YAMAHA MOTOR CO LTD 0.90%
COMPAGNIE DE SAINT-GOBAIN 0.89%
MITSUI FUDOSAN CO LTD 0.89%
SKANDINAVISKA ENSKILDA BAN-A 0.88%
ITOCHU CORP 0.86%
WOLSELEY PLC 0.86%
CRH PLC 0.85%
FIAT CHRYSLER AUTOMOBILES NV 0.84%
HOYA CORP 0.84%
NATIXIS 0.84%
SWEDBANK AB - A SHARES 0.83%
MIZUHO FINANCIAL GROUP INC 0.82%
BCE INC 0.80%
ORKLA ASA 0.80%
KONINKLIJKE AHOLD DELHAIZE N 0.79%
PANASONIC CORP 0.79%
COM HEM HOLDING AB 0.77%
NSK LTD 0.77%
RWE AG 0.77%
AENA SA 0.75%
DNB NOR ASA 0.74%
UBS GROUP AG-REG 0.74%
ENCANA CORP 0.73%
SEVEN & I HOLDINGS CO LTD 0.73%
BANK OF IRELAND 0.72%
GLENCORE PLC 0.72%
HENKEL AG & CO KGAA VORZUG 0.71%
VALEO SA 0.71%
SHISEIDO CO LTD 0.68%
SUMITOMO WAREHOUSE CO LTD 0.67%
LAFARGEHOLCIM LTD-REG 0.66%
TELECOM ITALIA-RSP 0.66%
DALATA HOTEL GROUP PLC 0.65%
KDDI CORP 0.55%
CREDIT SUISSE GROUP AG-REG 0.54%
MAGNA INTERNATIONAL INC 0.49%
ADMIRAL GROUP PLC 0.42%
LLOYDS BANKING GROUP PLC 0.42%
VIVA ENERGY REIT 0.10%
CHF/USD 09/20/2017 JPMCB 0.04%
JPY/USD 08/16/2017 GSFX 0.03%
AUD/USD 07/19/2017 BANKAM 0.01%
GBP/USD 09/20/2017 CITI 0.01%
GBP/USD 09/20/2017 JPMCB 0.01%
SEK/USD 09/20/2017 JPMCB 0.01%
SGD/USD 08/16/2017 JPMCB 0.01%
AUD/USD 07/19/2017 CITI 0.00%
AUD/USD 07/19/2017 JPMCB 0.00%
CAD/USD 07/19/2017 BANKAM 0.00%
CAD/USD 07/19/2017 BCAP-FX 0.00%
CAD/USD 07/19/2017 JPMCB 0.00%
CAD/USD 07/19/2017 SSBT 0.00%
CAD/USD 07/19/2017 UBS 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
CNH/USD 08/16/2017 GSFX 0.00%
DKK/USD 09/20/2017 CITI 0.00%
EUR/USD 09/20/2017 BANKAM 0.00%
EUR/USD 09/20/2017 CITI 0.00%
GBP/USD 09/20/2017 BANKAM 0.00%
GBP/USD 09/20/2017 SSBT 0.00%
HKD/USD 08/16/2017 BANKAM 0.00%
HKD/USD 08/16/2017 BCAP-FX 0.00%
ILS/USD 07/19/2017 SSBT 0.00%
JPY/USD 08/16/2017 CITI 0.00%
JPY/USD 08/16/2017 JPMCB 0.00%
KRW/USD 08/16/2017 JPMCB 0.00%
NOK/USD 09/20/2017 JPMCB 0.00%
NZD/USD 07/19/2017 CSI-FX 0.00%
NZD/USD 07/19/2017 JPMCB 0.00%
POUND STERLING CALL ACCOUNT 0.00%
THE EURO EUR CALL ACCOUNT 0.00%
AUD/USD 07/19/2017 UBS -0.01%
EUR/USD 09/20/2017 SSBT -0.01%
JPY/USD 08/16/2017 SSBT -0.01%
EUR/USD 09/20/2017 GSFX -0.02%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
Ing Groep Nv
Royal Dutch Shell
Sanofi
Siemens Ag
Societe Generale
Australia New Zealand Banking Group
Vinci
Prudential
Novartis Ag
Suncor Energy
Holdings represent 24.82% of portfolio
Top 10 holdings as of 08/31/17
Ing Groep Nv
Royal Dutch Shell
Sanofi
Siemens Ag
Australia New Zealand Banking Group
Societe Generale
Vinci
Prudential
Novartis Ag
Vodafone Group
Holdings represent 24.55% of portfolio
Top 10 holdings as of 07/31/17
Ing Groep Nv
Royal Dutch Shell
Sanofi
Siemens Ag
Australia New Zealand Banking Group
Societe Generale
Prudential
Vinci
Novartis Ag
Vodafone Group
Holdings represent 24.80% of portfolio
Top 10 holdings as of 06/30/17
Ing Groep Nv
Royal Dutch Shell
Sanofi
Siemens Ag
Australia New Zealand Banking Group
Philip Morris International
Societe Generale
Prudential
Novartis Ag
Vinci
Holdings represent 24.40% of portfolio

Portfolio composition as of 09/30/17

Common stock 97.87%
Cash and net other assets 2.13%

Equity statistics as of 09/30/17

Median market cap $32.97B
Weighted average market cap $60.90B
Price to book 1.53
Price to earnings 13.38

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. Value stocks may fail to rebound, and the market may not favor value-style investing. 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. 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. You can lose money by investing in the fund.

Top Industry Sectors as of 09/30/17

Financials 31.28%
Industrials 14.72%
Health care 8.42%
Energy 7.19%
Telecommunication services 7.11%
Consumer discretionary 6.52%
Consumer staples 6.21%
Materials 5.59%
Information technology 5.58%
 
Other
7.38%
Utilities 3.10%
Real estate 2.15%
Cash and net other assets 2.13%

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 09/30/17

Japan 19.97%
France 16.20%
United Kingdom 15.47%
Germany 7.24%
Netherlands 6.25%
Ireland 5.07%
Australia 4.80%
Canada 4.23%
Switzerland 3.90%
 
Other
16.87%
Sweden 2.58%
United States 2.40%
Cash and net other assets 2.13%
Norway 1.61%
South Korea 1.53%
Hong Kong 1.45%
Italy 1.34%
Denmark 1.08%
New Zealand 1.05%
Finland 1.04%
Spain 0.66%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 1.36% 2.11% 2.11% 1.86% 1.61% 0.91% 1.11%
What you pay 1.36% 2.11% 2.11% 1.86% 1.61% 0.91% 1.11%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R Class R6 Class Y
$0-$49,999 5.75% 0.00% 0.00% 3.50% -- -- --
$50,000-$99,999 4.50% 0.00% 0.00% 2.50% -- -- --
$100,000-$249,999 3.50% -- 0.00% 1.50% -- -- --
$250,000-$499,999 2.50% -- 0.00% 1.00% -- -- --
$500,000-$999,999 2.00% -- 0.00% 1.00% -- -- --
$1M-$4M 0.00% -- -- -- -- -- --
$4M-$50M 0.00% -- -- -- -- -- --
$50M+ 0.00% -- -- -- -- -- --

CDSC

  Class A (sales for $1,000,000+) Class B Class C Class M Class R Class R6 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% -- -- -- --

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. 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. 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. 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. You can lose money by investing in the fund.