Global Equity Fund  (PEQUX)

Selecting companies around the world that are attractive for investors

Objective

The fund seeks capital appreciation.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $15.23
0.07% | $0.01
$15.23
10/16/17
$12.09
11/04/16
Historical fund price

Fund facts as of 09/30/17

Total net assets
$826.17M
Turnover (fiscal year end)
48%
Dividend frequency
Annually
Number of holdings
110
Fiscal year end
October
CUSIP / Fund code
746772102 / 0044
Inception Date
07/01/94
Category
Blend
Open to new investors
Ticker
PEQUX

Management team


Co-Head of Equities

Strategy and process

  • Global companies: The fund seeks to capitalize on opportunities across global regions and market-cap sizes.
  • A flexible strategy: Pursuing Putnam's blend strategy, the fund can own growth- or value-style stocks to participate when either style leads global markets.
  • 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.

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 20.22% 6.37% 10.90% 3.02%
After sales charge 13.31% 4.29% 9.59% 2.41%
MSCI World Index (ND) 18.17% 7.69% 10.99% 4.22%

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 2.73 % -3.17 %
YTD as of 10/16/17 23.42 % 16.32 %

Risk-adjusted performance as of 09/30/17

Alpha (3 yrs.) -1.00
Sharpe ratio (3 yrs.) 0.59
Treynor ratio (3 yrs.) 6.39
Information ratio (3 yrs.) -0.41

Volatility as of 09/30/17

Standard deviation (3 yrs.) 10.35%
Beta 0.96
R-squared 0.90

Capture ratio as of 09/30/17

Up-market (3 yrs.) 99.10
Down-market (3 yrs.) 110.84

Lipper rankings as of 09/30/17

Global Multi-Cap Core Percentile ranking Rank/Funds in category
1 yr. 36% 69/193
3 yrs. 76% 106/139
5 yrs. 56% 64/114
10 yrs. 77% 39/50

Morningstar ratings as of 09/30/17

World Large Stock Rating Funds in category
Overall (703)
3 yrs. (293)
5 yrs. (583)
10 yrs. (165)

Distributions

Record/Ex dividend date 12/22/16
Payable date 12/27/16
Income $0.196
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

Alphabet 2.98%
Nrg Energy 2.26%
Yamaha Motor 2.08%
Becton Dickinson And 1.87%
Norfolk Southern Corp 1.73%
Unilever Nv 1.69%
Suncor Energy 1.60%
Amazon.Com 1.58%
E*Trade Financial Corp 1.50%
Bank Of America Corp 1.44%
Top 10 holdings, percent of portfolio 18.73%

Full portfolio holdings as of 06/30/17

ALPHABET INC-CL C 3.02%
BECTON DICKINSON AND CO 2.02%
YAMAHA MOTOR CO LTD 1.91%
AMAZON.COM INC 1.70%
ASSURED GUARANTY LTD 1.64%
NORFOLK SOUTHERN CORP 1.50%
E*TRADE FINANCIAL CORPORATION 1.42%
SUNCOR ENERGY INC 1.42%
MICRON TECHNOLOGY INC 1.39%
DXC TECHNOLOGY CO 1.29%
IMPERIAL BRANDS PLC 1.29%
PRUDENTIAL PLC 1.28%
GOODYEAR TIRE & RUBBER CO 1.26%
SHISEIDO CO LTD 1.26%
ALIBABA GROUP HOLDING-SP ADR 1.22%
LOWES COMPANIES INC 1.22%
CALPINE CORP 1.18%
BAYER AG-REG 1.17%
EXELON CORP 1.17%
UNILEVER NV-CVA 1.17%
NRG ENERGY INC 1.14%
CF INDUSTRIES HOLDINGS INC 1.13%
FAIRFAX FINANCIAL HLDGS LTD 1.13%
SEALED AIR CORP 1.09%
BANCO MACRO SA-ADR 1.06%
BANK OF AMERICA CORP 1.05%
VISA INC-CLASS A SHARES 1.05%
ASSA ABLOY AB-B 1.03%
EURAZEO SA 1.03%
INSTRUCTURE INC 1.03%
SEVEN GENERATIONS ENERGY - A 1.02%
NOMAD FOODS LTD 0.99%
ASSOCIATED BRITISH FOODS PLC 0.98%
KERRY GROUP PLC-A 0.97%
BANK OF IRELAND 0.91%
COMPASS GROUP PLC 0.90%
GODADDY INC - CLASS A 0.89%
NINTENDO CO LTD 0.89%
BOSTON SCIENTIFIC CORP 0.88%
RADIAN GROUP INC 0.86%
CHALLENGER LTD 0.85%
NCSOFT CORP 0.85%
SERVICENOW INC 0.85%
TELECOM ITALIA-RSP 0.85%
KYUDENKO CORP 0.84%
NORTHROP GRUMMAN CORP 0.84%
RE/MAX HOLDINGS INC-CL A 0.84%
SAMSUNG ELECTRONICS-PREF 0.84%
BALL CORP 0.83%
BRUNSWICK CORP 0.83%
ORKLA ASA 0.83%
PULTEGROUP INC 0.83%
RPC GROUP PLC 0.83%
JAZZ PHARMACEUTICALS PLC 0.82%
KRAFT HEINZ CO/THE 0.82%
HARTFORD FINANCIAL SVCS GRP 0.81%
HIBERNIA REIT PLC 0.80%
VODAFONE GROUP PLC-SP ADR 0.79%
ALCOA CORP 0.78%
GOLDMAN SACHS GROUP INC 0.78%
CONOCOPHILLIPS 0.77%
KENNEDY-WILSON HOLDINGS INC 0.77%
LIVE NATION ENTERTAINMENT IN 0.77%
CHUGAI PHARMACEUTICAL CO LTD 0.75%
COMPUGROUP MEDICAL SE 0.75%
PIONEER NAT RES CO 0.75%
TECHTRONIC INDUSTRIES CO LTD 0.75%
DALATA HOTEL GROUP PLC 0.74%
ADOBE SYSTEMS INC 0.73%
DR PEPPER SNAPPLE GROUP INC 0.72%
KDDI CORP 0.72%
BROADCOM LTD 0.71%
DOW CHEMICAL CO/THE 0.70%
NOKIA OYJ 0.70%
REALPAGE INC 0.70%
SHERWIN-WILLIAMS CO/THE 0.70%
EOG RESOURCES INC 0.69%
SERVICE CORP INTERNATIONAL 0.69%
ASTRAZENECA PLC 0.68%
REGENERON PHARMACEUTICALS 0.68%
ROHM CO LTD 0.68%
HILTON WORLDWIDE HOLDINGS IN 0.67%
ADMIRAL GROUP PLC 0.66%
ATRESMEDIA CORP DE MEDIOS DE 0.66%
EXPEDIA INC 0.66%
FORTUNE BRANDS HOME & SECURI 0.66%
RAYTHEON COMPANY 0.66%
PLAINS ALL AMER PIPELINE LP 0.65%
CHUBB LTD 0.64%
BIG YELLOW GROUP PLC 0.63%
KONINKLIJKE KPN NV 0.62%
NEWMONT MINING CORP 0.62%
SYMRISE AG 0.61%
HOYA CORP 0.60%
UBER TECH INC P/P CV PFD 0.60%
MOLSON COORS BREWING CO -B 0.58%
ALKERMES PLC 0.57%
HOME CAPITAL GROUP INC 0.57%
YOOX NET-A-PORTER GROUP 0.55%
BIOGEN INC 0.52%
QUANTA SERVICES INC 0.52%
PACIRA PHARMACEUTICALS INC 0.50%
AENA SA 0.48%
STERICYCLE INC 0.46%
CENOVUS ENERGY INC 0.40%
THE EURO EUR CALL ACCOUNT 0.37%
CALATLANTIC GROUP INC 0.30%
RIB SOFTWARE SE 0.29%
KOREAN WON CALL ACCOUNT 0.09%
CHF/USD 09/20/2017 JPMCB 0.03%
GLOBAL FASHION GRP 0.02%
GLOBAL FASHION GRP P/P 0.02%
DKK/USD 09/20/2017 CITI 0.01%
AUD/USD 07/19/2017 BANKAM 0.00%
AUD/USD 07/19/2017 CITI 0.00%
AUD/USD 07/19/2017 JPMCB 0.00%
AUD/USD 07/19/2017 SSBT 0.00%
AUD/USD 07/19/2017 UBS 0.00%
AUD/USD 07/19/2017 WPAC 0.00%
AUSTRALIAN DOLLAR ACCOUNT 0.00%
CAD/USD 07/19/2017 GSFX 0.00%
CAD/USD 07/19/2017 JPMCB 0.00%
CAD/USD 07/19/2017 WPAC 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
CHF/USD 09/20/2017 BCAP-FX 0.00%
CHF/USD 09/20/2017 SSBT 0.00%
CHF/USD 09/20/2017 UBS 0.00%
CNH/USD 08/16/2017 GSFX 0.00%
EUR/USD 09/20/2017 BANKAM 0.00%
EUR/USD 09/20/2017 CITI 0.00%
EUR/USD 09/20/2017 GSFX 0.00%
EUR/USD 09/20/2017 HSBCB 0.00%
EUR/USD 09/20/2017 JPMCB 0.00%
EUR/USD 09/20/2017 SSBT 0.00%
FABFURNISH GMBH P/P 0.00%
GBP/USD 09/20/2017 GSFX 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%
INDIAN RUPEE CALL ACCOUNT 0.00%
JPY/USD 08/16/2017 CITI 0.00%
JPY/USD 08/16/2017 GSFX 0.00%
JPY/USD 08/16/2017 JPMCB 0.00%
JPY/USD 08/16/2017 WPAC 0.00%
KRW/USD 08/16/2017 JPMCB 0.00%
NEW BIGFOOT OTHER AS P/P 0.00%
NEW MIDDLE EAST OTHE P/P 0.00%
NOK/USD 09/20/2017 JPMCB 0.00%
SEK/USD 09/20/2017 JPMCB 0.00%
SGD/USD 08/16/2017 JPMCB 0.00%
GBP/USD 09/20/2017 JPMCB -0.02%
POUND STERLING CALL ACCOUNT -0.46%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
Alphabet
Nrg Energy
Yamaha Motor
Becton Dickinson And
Norfolk Southern Corp
Unilever Nv
Suncor Energy
Amazon.Com
E*Trade Financial Corp
Bank Of America Corp
Holdings represent 18.73% of portfolio
Top 10 holdings as of 08/31/17
Alphabet
Nrg Energy
Yamaha Motor
Becton Dickinson And
Unilever Nv
Amazon.Com
Norfolk Southern Corp
Assured Guaranty
Suncor Energy
E*Trade Financial Corp
Holdings represent 18.65% of portfolio
Top 10 holdings as of 07/31/17
Alphabet
Nrg Energy
Becton Dickinson And
Yamaha Motor
Assured Guaranty
Amazon.Com
Suncor Energy
E*Trade Financial Corp
Bank Of America Corp
Norfolk Southern Corp
Holdings represent 18.45% of portfolio
Top 10 holdings as of 06/30/17
Alphabet
Becton Dickinson And
Yamaha Motor
Amazon.Com
Assured Guaranty
Norfolk Southern Corp
E*Trade Financial Corp
Suncor Energy
Micron Technology
Dxc Technology
Holdings represent 17.31% of portfolio

Portfolio composition as of 09/30/17

Common stock 97.24%
Cash and net other assets 1.30%
Preferred stock 0.87%
Convertible preferred stock 0.59%

Equity statistics as of 09/30/17

Median market cap $14.23B
Weighted average market cap $69.49B
Price to book 2.43
Price to earnings 18.52

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. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. You can lose money by investing in the fund.

Top Industry Sectors as of 09/30/17

Information technology 17.82%
Consumer discretionary 17.76%
Financials 14.41%
Health care 11.08%
Consumer staples 7.90%
Materials 7.70%
Industrials 7.24%
Energy 5.49%
Utilities 4.42%
 
Other
6.18%
Telecommunication services 2.78%
Real estate 2.10%
Cash and net other assets 1.30%

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

United States 56.69%
United Kingdom 8.43%
Japan 8.28%
Canada 3.86%
Ireland 3.59%
Germany 3.14%
Netherlands 2.32%
South Korea 1.96%
Italy 1.50%
 
Other
10.23%
China 1.45%
Cash and net other assets 1.30%
Argentina 1.25%
France 1.14%
Sweden 0.99%
Australia 0.94%
Hong Kong 0.81%
India 0.63%
Brazil 0.57%
Spain 0.57%
Thailand 0.53%
Luxembourg 0.05%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 1.17% 1.92% 1.92% 1.67% 1.42% 0.75% 0.92%
What you pay 1.17% 1.92% 1.92% 1.67% 1.42% 0.75% 0.92%

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 World Index is an unmanaged index of equity securities from developed countries. 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. These and other factors may lead to increased volatility and reduced liquidity in the fund's portfolio holdings. You can lose money by investing in the fund.