Active Equities

Global Equity Fund (Class Y)  (PEQYX)

Selecting companies around the world that are attractive for investors

Highlights

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 $16.82
1.20% | $0.20 		$17.07
09/19/19 		$13.43
12/24/18
Historical fund price

Fund facts as of 09/30/19

Total net assets
$980.38M
Turnover (fiscal year end)
60%
Dividend frequency
Annually
Number of holdings
87
Fiscal year-end
October
CUSIP / Fund code
746772409 / 1844
Inception date
09/23/02
Category
Blend
Open to new investors
Ticker
PEQYX

Management team

Shep Perkins, CFA

Chief Investment Officer, Equities

Jacquelyne J. Cavanaugh

Portfolio Manager, Analyst

Walter D. Scully, CPA

Portfolio Manager, Analyst

Manager commentary | Q2 2019

Rates signal opportunity for homebuyers

Shep Perkins, Chief Investment Officer, Equities, said mortgage rate movements are creating opportunity for pent-up housing demand.

Literature

Italy may be conduit for EM contagion
If Italy's populist government increases government debt, prices of Italian bonds and banks could drop and trigger a larger crisis for the region and world.
Are international stocks truly cheap?
On the surface, U.S. stocks appear more expensive than international stocks, but a quantitative comparison reveals the impact of sector valuations.
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.

Performance

  • Total return (%) as of 09/30/19

  • Annual performance as of 09/30/19

Annualized Total return (%) as of 09/30/19

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 0.00% 9.53% 5.73% 8.64%
After sales charge N/A N/A N/A N/A
MSCI World Index (ND) 1.83%10.21%7.18%9.01%

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. 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 Multi-Asset Absolute Return Fund, 4.00% and 3.25% for income funds and 2.25% and 0.75% for Putnam Floating Rate Income Fund, Short-Term Municipal Income, Short Duration Bond Fund, and Fixed Income Absolute Return 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, which is 3% in the first year, declining to 1% in the fourth 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, N, R, 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). Returns at public offering price (after sales charge) for class N shares reflect the current maximum initial sales charge of 1.50%. 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 and M shares of Putnam money market funds have no initial sales charge. For a portion of the periods, some funds had expense 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 09/30/19 2.06% -
YTD as of 10/11/19 18.12% -

Risk-adjusted performance as of 08/31/19

Alpha (3 yrs.) -0.73
Sharpe ratio (3 yrs.) 0.65
Treynor ratio (3 yrs.) 7.49
Information ratio (3 yrs.) -0.16

Volatility as of 08/31/19

Standard deviation (3 yrs.) 11.88%
Beta 1.03
R-squared 0.92

Capture ratio as of 08/31/19

Up-market (3 yrs.) 102.79
Down-market (3 yrs.) 109.16

Lipper rankings as of 08/31/19

Time period Rank/Funds in category Percentile ranking
1 yr. 149/204 73%
3 yrs. 104/160 65%
5 yrs. 102/138 74%
10 yrs. 43/78 55%
Lipper category: Global Multi-Cap Growth Fds

Morningstar Ratings™ as of 08/31/19

Time period Funds in category Morningstar Rating™
Overall 727
3 yrs. 727
5 yrs. 597
10 yrs. 364
Morningstar category: World Large Stock

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 08/31/19

Nrg Energy 3.98%
Amazon.Com 3.07%
Assured Guaranty 2.87%
Nomad Foods 2.70%
Unilever Nv 2.64%
Asahi Group Holdings 2.14%
Microsoft Corp 2.06%
Cenovus Energy 2.02%
BD Medical 1.85%
Compass Group 1.83%
Top 10 holdings, percent of portfolio 25.16%
as of 09/30/19 |

Portfolio composition as of 08/31/19

Common stock 97.61%
Cash and net other assets 2.06%
Convertible preferred stock 0.33%

Equity statistics as of 08/31/19

Median market cap $14.84B
Weighted average market cap $113.84B
Price to book 2.36
Price to earnings 16.69

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

Top industry sectors as of 08/31/19

Information technology 14.78%
Consumer discretionary 13.52%
Financials 12.40%
Consumer staples 12.35%
Industrials 9.62%
Energy 8.44%
Health care 8.17%
Materials 7.20%
Communication services 5.15%
 
Other		 8.37%
Utilities 3.98%
Real estate 2.33%
Cash and net other assets 2.06%

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 08/31/19

United States 62.41%
United Kingdom 9.04%
Japan 8.45%
Canada 3.92%
Netherlands 2.64%
France 2.35%
Cash and net other assets 2.06%
Ireland 1.61%
Switzerland 1.61%
 
Other		 5.91%
Australia 1.29%
Denmark 1.03%
Italy 0.87%
South Korea 0.82%
Brazil 0.76%
Taiwan 0.74%
India 0.39%
Luxembourg 0.01%

Expenses

Expense ratio

 Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 1.15% 1.90% 1.90% 1.65% 1.40% 0.76% 0.90%
What you pay 1.15% 1.90% 1.90% 1.65% 1.40% 0.76% 0.90%

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