International Capital Opportunities Fund  (PNVAX)

Harnessing the potential of international small and midsize companies since 1995

Objective

The fund seeks long-term capital appreciation.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $41.05
-0.24% | $-0.10
$41.32
10/13/17
$31.87
12/22/16
Historical fund price

Fund facts as of 09/30/17

Total net assets
$456.01M
Turnover (fiscal year end)
103%
Dividend frequency
Annually
Number of holdings
70
Fiscal year end
August
CUSIP / Fund code
746802859 / 0050
Inception Date
12/28/95
Category
Blend
Open to new investors
Ticker
PNVAX

Management team


Portfolio Manager

Portfolio Manager, Analyst

Portfolio Manager, Analyst

Strategy and process

  • Undiscovered stocks: The fund invests in small to midsize companies located outside the United States, which are frequently overlooked by Wall Street.
  • A flexible strategy: The fund managers take a core investment focus that seeks to minimize exposure to single factors, such as value or quality.
  • A disciplined process: The portfolio managers use a disciplined bottom-up fundamental investment process that seeks stocks with the potential for price and earnings momentum.

Literature


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Performance

Consistency of positive performance over five years

Performance represents 5-year returns in rolling quarter-end periods since inception.

Performance shown above does not reflect the effects of any sales charges. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please see below.

28.77%

Best 5-year annualized return

(for period ending 09/30/07)


-5.33%

Worst 5-year annualized return

(for period ending 06/30/12)


8.00%

Average 5-year annualized return


  • 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 20.63% 6.21% 7.11% 1.44%
After sales charge 13.70% 4.14% 5.85% 0.84%
S&P Developed Ex-U.S. SmallCap Index 20.70% 10.09% 11.89% 4.09%

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 1.64 % -4.20 %
YTD as of 10/19/17 27.09 % 19.78 %

Risk-adjusted performance as of 09/30/17

Alpha (3 yrs.) -3.75
Sharpe ratio (3 yrs.) 0.50
Treynor ratio (3 yrs.) 6.03
Information ratio (3 yrs.) -1.04

Volatility as of 09/30/17

Standard deviation (3 yrs.) 12.01%
Beta 0.99
R-squared 0.90

Capture ratio as of 09/30/17

Up-market (3 yrs.) 91.77
Down-market (3 yrs.) 116.99

Lipper rankings as of 09/30/17

International Small/Mid-Cap Core Percentile ranking Rank/Funds in category
1 yr. 59% 47/79
3 yrs. 72% 47/65
5 yrs. 72% 41/56
10 yrs. 75% 27/35

Morningstar ratings as of 09/30/17

Foreign Small/Mid Value Rating Funds in category
Overall (56)
3 yrs. (56)
5 yrs. (43)
10 yrs. (24)

Distributions

Record/Ex dividend date 12/22/16
Payable date 12/27/16
Income $0.816
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

Kyudenko Corp 2.55%
Eurazeo 2.52%
Berkeley Group Holdings 2.42%
Paltac Corporation 2.34%
Dassault Aviation 2.28%
Sanwa Shutter 2.18%
Rheinmetall Ag 2.00%
Fairfax Financial Holdings 1.99%
Mtu Aero Engines Ag 1.92%
Diasorin Spa 1.92%
Top 10 holdings, percent of portfolio 22.12%

Full portfolio holdings as of 06/30/17

EURAZEO SA 1.99%
DASSAULT AVIATION SA 1.96%
KYUDENKO CORP 1.96%
BERKELEY GROUP HOLDINGS/THE 1.92%
DART GROUP PLC 1.83%
RHEINMETALL AG 1.75%
ADMIRAL GROUP PLC 1.73%
BANK OF IRELAND 1.66%
COMPUGROUP MEDICAL SE 1.63%
MTU AERO ENGINES AG 1.62%
ACCIONA S.A. 1.61%
FAIRFAX FINANCIAL HLDGS LTD 1.59%
LONZA GROUP AG-REG 1.56%
MAEDA ROAD CONSTRUCTION CO 1.55%
NIPPO CORP 1.52%
FISCHER (GEORG)-REG 1.51%
COM HEM HOLDING AB 1.49%
INTERXION HOLDING NV 1.49%
TAKUMA CO LTD 1.49%
SCOR SE 1.46%
SANWA HOLDINGS CORP 1.45%
CONSTELLATION SOFTWARE INC 1.44%
MEGACABLE HOLDINGS-CPO 1.41%
BML INC 1.36%
CLINIGEN GROUP PLC 1.36%
STADA ARZNEIMITTEL AG 1.36%
ATRESMEDIA CORP DE MEDIOS DE 1.34%
AZIMUT HOLDING SPA 1.33%
DONGBU INSURANCE CO LTD 1.33%
NUVISTA ENERGY LTD 1.33%
AMUNDI SA 1.32%
PALTAC CORPORATION 1.32%
TECHTRONIC INDUSTRIES CO LTD 1.32%
INCHCAPE PLC 1.30%
TECHNOPRO HOLDINGS INC 1.30%
AMPLIFON SPA 1.29%
APPLUS SERVICES SA 1.27%
KENNEDY WILSON EUROPE REA 1.26%
TOKYO SEIMITSU CO LTD 1.25%
KAWASAKI HEAVY INDUSTRIES 1.22%
SOFTWARE AG 1.21%
CTCI CORP 1.20%
HANA FINANCIAL GROUP 1.20%
CAIRN ENERGY PLC 1.19%
CASCADES INC 1.18%
RWE AG 1.18%
TELEPIZZA GROUP SA 1.17%
CAPITAL POWER CORP 1.16%
RIGHTMOVE PLC 1.16%
DIASORIN SPA 1.15%
DALATA HOTEL GROUP PLC 1.13%
SAFESTORE HOLDINGS PLC 1.13%
TIETO OYJ 1.13%
HYUNDAI MARINE 1.12%
ADEKA CORP 1.08%
SSP GROUP PLC 1.08%
ULVAC INC 1.07%
CRESCENT POINT ENERGY CORP 1.02%
FAURECIA 0.99%
KENNEDY-WILSON HOLDINGS INC 0.98%
FUJI MACHINE MFG CO LTD 0.94%
MAPLETREE INDUSTRIAL TRUST 0.91%
TSUBAKIMOTO CHAIN CO 0.91%
SUMITOMO WAREHOUSE CO LTD 0.87%
AEON DELIGHT CO LTD 0.84%
TAKEUCHI MFG CO LTD 0.79%
IPSEN 0.75%
MODEC INC 0.74%
LOTTE FINE CHEMICAL CO LTD 0.72%
BLUESCOPE STEEL LTD 0.68%
NUFLARE TECHNOLOGY INC 0.65%
HOME CAPITAL GROUP INC 0.61%
HAZAMA ANDO CORP 0.60%
WESTSHORE TERMINALS INVESTME 0.54%
DOMINION DIAMOND CORP 0.52%
SHINMAYWA INDUSTRIES LTD 0.50%
FOMENTO DE CONSTRUC Y CONTRA 0.48%
FOXTONS GROUP PLC 0.45%
JAPANESE YEN CALL ACCOUNT 0.25%
THE EURO EUR CALL ACCOUNT 0.16%
CENTERRA GOLD INC 0.04%
CHF/USD 09/20/2017 BCAP-FX 0.02%
CHF/USD 09/20/2017 SSBT 0.02%
AUD/USD 07/19/2017 BANKAM 0.01%
AUD/USD 07/19/2017 UBS 0.01%
CHF/USD 09/20/2017 JPMCB 0.01%
DKK/USD 09/20/2017 CITI 0.01%
EUR/USD 09/20/2017 GSFX 0.01%
SEK/USD 09/20/2017 CSI-FX 0.01%
SEK/USD 09/20/2017 JPMCB 0.01%
AFREN PLC 0.00%
CAD/USD 07/19/2017 BANKAM 0.00%
CAD/USD 07/19/2017 JPMCB 0.00%
CAD/USD 07/19/2017 SSBT 0.00%
GBP/USD 09/20/2017 BANKAM 0.00%
GBP/USD 09/20/2017 JPMCB 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%
HONG KONG DOLLAR CALL ACCOUNT 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%
JPY/USD 08/16/2017 SSBT 0.00%
NOK/USD 09/20/2017 CSI-FX 0.00%
NOK/USD 09/20/2017 JPMCB 0.00%
NZD/USD 07/19/2017 JPMCB 0.00%
POUND STERLING CALL ACCOUNT 0.00%
SGD/USD 08/16/2017 JPMCB 0.00%
TAIWAN DOLLAR CALL ACCOUNT 0.00%
EUR/USD 09/20/2017 CITI -0.01%
EUR/USD 09/20/2017 HSBCB -0.01%
JPY/USD 08/16/2017 GSFX -0.01%
EUR/USD 09/20/2017 JPMCB -0.05%
CANADIAN DOLLAR ACCOUNT -0.49%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
Kyudenko Corp
Eurazeo
Berkeley Group Holdings
Paltac Corporation
Dassault Aviation
Sanwa Shutter
Rheinmetall Ag
Fairfax Financial Holdings
Mtu Aero Engines Ag
Diasorin Spa
Holdings represent 22.12% of portfolio
Top 10 holdings as of 08/31/17
Kyudenko Corp
Eurazeo
Berkeley Group Holdings
Paltac Corporation
Dassault Aviation
Fairfax Financial Holdings
Takuma
Sanwa Shutter
Diasorin Spa
Rheinmetall Ag
Holdings represent 21.18% of portfolio
Top 10 holdings as of 07/31/17
Kyudenko Corp
Eurazeo
Berkeley Group Holdings
Dassault Aviation
Sanwa Shutter
Bank Of Ireland Group
Rheinmetall Ag
Mtu Aero Engines Ag
Compugroup Medical
Acciona
Holdings represent 19.14% of portfolio
Top 10 holdings as of 06/30/17
Eurazeo
Dassault Aviation
Kyudenko Corp
Berkeley Group Holdings
Dart Group
Rheinmetall Ag
Admiral Group
Bank Of Ireland
Compugroup Medical
Mtu Aero Engines Ag
Holdings represent 18.05% of portfolio

Portfolio composition as of 09/30/17

Common stock 96.51%
Cash and net other assets 3.49%

Equity statistics as of 09/30/17

Median market cap $2.68B
Weighted average market cap $4.27B
Price to book 1.81
Price to earnings 15.73

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions, market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer or industry. 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. You can lose money by investing in the fund.

Top Industry Sectors as of 09/30/17

Industrials 30.39%
Consumer discretionary 17.28%
Financials 12.22%
Health care 8.58%
Information technology 8.36%
Energy 6.09%
Real estate 5.94%
Cash and net other assets 3.49%
Utilities 2.63%
 
Other
5.02%
Telecommunication services 2.34%
Consumer staples 1.40%
Materials 1.28%

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 21.66%
United Kingdom 18.42%
Canada 10.67%
Germany 7.81%
Spain 6.68%
Italy 5.07%
France 4.80%
Cash and net other assets 3.49%
Ireland 3.47%
 
Other
17.93%
South Korea 3.03%
Switzerland 2.91%
Taiwan 2.63%
Netherlands 1.60%
Sweden 1.47%
Mexico 1.44%
United States 1.19%
Australia 1.16%
Singapore 0.90%
Indonesia 0.86%
India 0.74%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 1.26% 2.01% 2.01% 1.76% 1.51% 1.01%
What you pay 1.26% 2.01% 2.01% 1.76% 1.51% 1.01%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R 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 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 S&P Developed Ex-U.S. SmallCap Index is an unmanaged index of small-cap stocks from developed countries, excluding the United States. You cannot invest directly in an index.

Consider these risks before investing: Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions, market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer or industry. 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. You can lose money by investing in the fund.