Global Equity Fund  (PEQUX)

Selecting companies around the world that are attractive for investors

Objective

The fund seeks capital appreciation.

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.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $15.59
0.19% | $0.03
$15.65
11/28/17
$12.33
12/28/16
Historical fund price

Fund facts as of 11/30/17

Total net assets
$846.01M
Turnover (fiscal year end)
48%
Dividend frequency
Annually
Number of holdings
107
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


Manager commentary | Q3 2017

Earnings may rise above rate risk and industry disruptions

Shep Perkins, Co-Head of Equities, explains why he believes the outlook for global earnings is positive.


Literature


Market sectors that might lead in 2018
Technology’s strength seems set to continue, but with the prospect of rising rates, financials may also be among the leading market sectors.
Just how cheap are European equities?
Our analysis finds that industry group weightings play a significant role in valuation discrepancies between U.S. and European equities.
What could disturb unprecedented calm in markets?
What’s most remarkable about 2017 is the market calm, but this is not a sign that the trend will revert to the mean.

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 11/30/17 1.96 % -3.90 %
YTD as of 12/13/17 26.34 % 19.07 %

Risk-adjusted performance as of 10/31/17

Alpha (3 yrs.) -0.86
Sharpe ratio (3 yrs.) 0.64
Treynor ratio (3 yrs.) 6.94
Information ratio (3 yrs.) -0.37

Volatility as of 10/31/17

Standard deviation (3 yrs.) 10.36%
Beta 0.96
R-squared 0.90

Capture ratio as of 10/31/17

Up-market (3 yrs.) 100.00
Down-market (3 yrs.) 110.84

Lipper rankings as of 10/31/17

Global Multi-Cap Core Percentile ranking Rank/Funds in category
1 yr. 22% 40/187
3 yrs. 76% 100/132
5 yrs. 59% 64/108
10 yrs. 73% 37/50

Morningstar ratings as of 10/31/17

World Large Stock Rating Funds in category
Overall (704)
3 yrs. (704)
5 yrs. (583)
10 yrs. (178)

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 10/31/17

Alphabet 3.12%
Nrg Energy 2.18%
Yamaha Motor 2.03%
Becton Dickinson And 1.97%
Suncor Energy 1.73%
Norfolk Southern Corp 1.70%
Unilever Nv 1.65%
Amazon.Com 1.57%
Bank Of America Corp 1.54%
Micron Technology 1.52%
Top 10 holdings, percent of portfolio 19.01%

Full portfolio holdings as of 09/30/17

ALPHABET INC-CL C 2.98%
NRG ENERGY INC 2.26%
YAMAHA MOTOR CO LTD 2.08%
BECTON DICKINSON AND CO 1.87%
NORFOLK SOUTHERN CORP 1.73%
UNILEVER NV-CVA 1.69%
SUNCOR ENERGY INC 1.60%
AMAZON.COM INC 1.58%
E*TRADE FINANCIAL CORPORATION 1.50%
BANK OF AMERICA CORP 1.44%
ASSURED GUARANTY LTD 1.41%
ALIBABA GROUP HOLDING-SP ADR 1.40%
MICRON TECHNOLOGY INC 1.36%
DXC TECHNOLOGY CO 1.35%
CF INDUSTRIES HOLDINGS INC 1.32%
PRUDENTIAL PLC 1.32%
RPC GROUP PLC 1.30%
FAIRFAX FINANCIAL HLDGS LTD 1.27%
BAYER AG-REG 1.26%
BANCO MACRO SA-ADR 1.25%
LOWES COMPANIES INC 1.17%
EURAZEO SA 1.14%
EXELON CORP 1.14%
BOSTON SCIENTIFIC CORP 1.13%
GOODYEAR TIRE & RUBBER CO 1.13%
NCSOFT CORP 1.09%
VISA INC-CLASS A SHARES 1.09%
INSTRUCTURE INC 1.08%
ALCOA CORP 1.04%
BRUNSWICK CORP 1.02%
CALPINE CORP 1.02%
KERRY GROUP PLC-A 1.01%
ASSA ABLOY AB-B 0.99%
KENNEDY-WILSON HOLDINGS INC 0.99%
KRAFT HEINZ CO/THE 0.99%
RAYTHEON COMPANY 0.99%
SEVEN GENERATIONS ENERGY - A 0.99%
ASSOCIATED BRITISH FOODS PLC 0.97%
KYUDENKO CORP 0.96%
CALATLANTIC GROUP INC 0.95%
CHALLENGER LTD 0.95%
NOMAD FOODS LTD 0.95%
DIAGEO PLC 0.94%
NINTENDO CO LTD 0.92%
RADIAN GROUP INC 0.92%
LIVE NATION ENTERTAINMENT IN 0.90%
BANK OF IRELAND GROUP PLC 0.88%
COMPASS GROUP PLC 0.88%
DANAHER CORP 0.88%
SERVICENOW INC 0.88%
ROHM CO LTD 0.87%
SAMSUNG ELECTRONICS-PREF 0.87%
HIBERNIA REIT PLC 0.86%
GODADDY INC - CLASS A 0.85%
BROADCOM LTD 0.84%
DALATA HOTEL GROUP PLC 0.84%
PIONEER NAT RES CO 0.83%
CONOCOPHILLIPS 0.82%
REALPAGE INC 0.82%
NEWMONT MINING CORP 0.81%
TECHTRONIC INDUSTRIES CO LTD 0.81%
DENTSPLY SIRONA INC 0.79%
CHUGAI PHARMACEUTICAL CO LTD 0.78%
VERTEX PHARMACEUTICALS INC 0.78%
TELECOM ITALIA-RSP 0.76%
BALL CORP 0.75%
SHERWIN-WILLIAMS CO/THE 0.75%
CHUBB LTD 0.74%
JOHNSON CONTROLS INTERNATION 0.74%
PALTAC CORPORATION 0.74%
VODAFONE GROUP PLC-SP ADR 0.73%
YOOX NET-A-PORTER GROUP 0.73%
ADOBE SYSTEMS INC 0.72%
JAZZ PHARMACEUTICALS PLC 0.72%
COMPUGROUP MEDICAL SE 0.71%
HILTON WORLDWIDE HOLDINGS IN 0.69%
MICRO FOCUS INTERNATIONAL 0.69%
EOG RESOURCES INC 0.68%
MOLSON COORS BREWING CO -B 0.68%
KDDI CORP 0.67%
SERVICE CORP INTERNATIONAL 0.67%
ASTRAZENECA PLC 0.65%
SHISEIDO CO LTD 0.65%
DOWDUPONT INC 0.63%
FORTUNE BRANDS HOME & SECURI 0.63%
MAKEMYTRIP LTD 0.63%
SONY CORP 0.63%
KONINKLIJKE KPN NV 0.62%
L3 TECHNOLOGIES INC 0.61%
EXPEDIA INC 0.59%
REGENERON PHARMACEUTICALS 0.59%
KION GROUP AG 0.58%
ATRESMEDIA CORP DE MEDIOS DE 0.57%
IRB BRASIL RESSEGUROS SA 0.57%
PLAINS ALL AMER PIPELINE LP 0.57%
UBER TECH INC P/P CV PFD 0.57%
WORKPOINT ENTERTAINMENT-FOR 0.53%
MBIA INC 0.50%
SUMMIT MATERIALS INC -CL A 0.50%
SYMRISE AG 0.49%
ALKERMES PLC 0.48%
HARTFORD FINANCIAL SVCS GRP 0.47%
PACIRA PHARMACEUTICALS INC 0.46%
RE/MAX HOLDINGS INC-CL A 0.26%
ZHONGAN ONLINE P&C I 0.05%
CHF/USD 12/20/2017 JPMCB 0.04%
GLOBAL FASHION GRP P/P 0.03%
GLOBAL FASHION GRP 0.02%
DKK/USD 12/20/2017 CITI 0.01%
AUD/USD 10/18/2017 BANKAM 0.00%
AUD/USD 10/18/2017 CITI 0.00%
AUD/USD 10/18/2017 JPMCB 0.00%
AUD/USD 10/18/2017 SSBT 0.00%
AUD/USD 10/18/2017 UBS 0.00%
AUD/USD 10/18/2017 WPAC 0.00%
AUSTRALIAN DOLLAR ACCOUNT 0.00%
CAD/USD 10/18/2017 BANKAM 0.00%
CAD/USD 10/18/2017 GSFX 0.00%
CAD/USD 10/18/2017 WPAC 0.00%
CANADIAN DOLLAR ACCOUNT 0.00%
CHF/USD 12/20/2017 BCAP-FX 0.00%
CHF/USD 12/20/2017 SSBT 0.00%
CNH/USD 11/15/2017 GSFX 0.00%
EUR/USD 12/20/2017 BANKAM 0.00%
EUR/USD 12/20/2017 JPMCB 0.00%
EUR/USD 12/20/2017 SSBT 0.00%
FABFURNISH GMBH P/P 0.00%
GBP/USD 12/20/2017 BANKAM 0.00%
GBP/USD 12/20/2017 CITI 0.00%
GBP/USD 12/20/2017 GSFX 0.00%
HKD/USD 11/15/2017 BANKAM 0.00%
HKD/USD 11/15/2017 BCAP-FX 0.00%
ILS/USD 10/18/2017 SSBT 0.00%
INDIAN RUPEE CALL ACCOUNT 0.00%
JPY/USD 11/15/2017 CITI 0.00%
JPY/USD 11/15/2017 GSFX 0.00%
JPY/USD 11/15/2017 JPMCB 0.00%
KOREAN WON CALL ACCOUNT 0.00%
KRW/USD 11/15/2017 JPMCB 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 0.00%
NOK/USD 12/20/2017 JPMCB 0.00%
POUND STERLING CALL ACCOUNT 0.00%
SEK/USD 12/20/2017 JPMCB 0.00%
SGD/USD 11/15/2017 JPMCB 0.00%
GBP/USD 12/20/2017 JPMCB -0.01%
THE EURO EUR CALL ACCOUNT -0.14%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
Alphabet
Nrg Energy
Yamaha Motor
Becton Dickinson And
Suncor Energy
Norfolk Southern Corp
Unilever Nv
Amazon.Com
Bank Of America Corp
Micron Technology
Holdings represent 19.01% of portfolio
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

Portfolio composition as of 10/31/17

Common stock 98.07%
Cash and net other assets 1.34%
Convertible preferred stock 0.59%

Equity statistics as of 10/31/17

Median market cap $14.69B
Weighted average market cap $77.29B
Price to book 2.48
Price to earnings 18.13

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 10/31/17

Information technology 19.33%
Consumer discretionary 15.40%
Financials 15.08%
Health care 10.43%
Materials 7.94%
Industrials 7.74%
Consumer staples 7.30%
Energy 6.19%
Utilities 4.41%
 
Other
6.18%
Telecommunication services 2.91%
Real estate 1.93%
Cash and net other assets 1.34%

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 10/31/17

United States 57.75%
Japan 8.56%
United Kingdom 7.37%
Canada 3.80%
Ireland 3.36%
Netherlands 2.84%
Germany 2.36%
South Korea 2.09%
China 2.00%
 
Other
9.87%
Australia 1.63%
Italy 1.40%
Cash and net other assets 1.34%
France 1.17%
Argentina 1.14%
Sweden 0.91%
Brazil 0.59%
India 0.59%
Spain 0.55%
Hong Kong 0.51%
Luxembourg 0.04%

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.