International Growth Fund  (PINOX)

Harnessing the potential of international growth 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 $22.14
-0.45% | $-0.10
$22.24
10/18/17
$16.75
12/22/16
Historical fund price

Fund facts as of 09/30/17

Total net assets
$295.26M
Turnover (fiscal year end)
146%
Dividend frequency
Annually
Number of holdings
100
Fiscal year end
September
CUSIP / Fund code
746802206 / 0045
Inception Date
01/03/95
Category
Growth
Open to new investors
Ticker
PINOX

Management team


Portfolio Manager

Strategy and process

  • International growth: The fund invests in international companies that the manager believes have sustainable above-average earnings growth.
  • Diverse companies: The portfolio includes large companies that dominate their industries and midsize companies that may be emerging industry leaders.
  • A rigorous process: The fund follows a disciplined investment process with fundamental stock selection supported by quantitative tools and macroeconomic analysis.

Literature


Longevity and medical costs – education for the great unknowns
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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.

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 20.25% 5.38% 8.35% 2.10%
After sales charge 13.33% 3.32% 7.07% 1.50%
MSCI EAFE Growth Index (ND) 15.68% 6.48% 8.89% 2.12%

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 2.87 % -3.05 %
YTD as of 10/19/17 30.85 % 23.33 %

Risk-adjusted performance as of 09/30/17

Alpha (3 yrs.) -0.75
Sharpe ratio (3 yrs.) 0.43
Treynor ratio (3 yrs.) 5.42
Information ratio (3 yrs.) -0.31

Volatility as of 09/30/17

Standard deviation (3 yrs.) 11.79%
Beta 0.94
R-squared 0.91

Capture ratio as of 09/30/17

Up-market (3 yrs.) 95.05
Down-market (3 yrs.) 100.41

Lipper rankings as of 09/30/17

International Multi-Cap Growth Percentile ranking Rank/Funds in category
1 yr. 25% 121/493
3 yrs. 67% 273/408
5 yrs. 45% 163/363
10 yrs. 32% 75/236

Morningstar ratings as of 09/30/17

Foreign Large Growth Rating Funds in category
Overall (325)
3 yrs. (122)
5 yrs. (117)
10 yrs. (192)

Distributions

Record/Ex dividend date 12/22/16
Payable date 12/27/16
Income $0.317
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

Bayer Ag 2.51%
Tencent Holdings 1.97%
Aia Group 1.93%
Sony Corp 1.84%
Airbus 1.82%
Challenger Financial Service 1.76%
Valeo 1.69%
Alibaba Group Holding 1.67%
Shire 1.66%
Compass Group 1.64%
Top 10 holdings, percent of portfolio 18.49%

Full portfolio holdings as of 06/30/17

BAYER AG-REG 2.23%
AIA GROUP LTD 2.03%
CHALLENGER LTD 1.95%
BRITISH AMERICAN TOBACCO PLC 1.76%
COMPASS GROUP PLC 1.73%
SONY CORP 1.65%
TENCENT HOLDINGS LTD 1.65%
KUMAGAI GUMI CO LTD 1.62%
RELX NV 1.61%
SIEMENS AG 1.59%
ALIBABA GROUP HOLDING-SP ADR 1.56%
HDFC BANK LIMITED 1.44%
ASSOCIATED BRITISH FOODS PLC 1.33%
KERRY GROUP PLC-A 1.33%
NOKIA OYJ 1.32%
SOCIETE GENERALE SA 1.32%
BURFORD CAPITAL LTD 1.29%
SHIRE PLC 1.28%
AIRBUS SE 1.27%
DALATA HOTEL GROUP PLC 1.26%
SMS CO LTD 1.26%
CLINIGEN GROUP PLC 1.24%
ING GROEP NV-CVA 1.23%
NINTENDO CO LTD 1.21%
KYUDENKO CORP 1.19%
ADIDAS AG 1.18%
ORIX CORP 1.17%
SOFTBANK GROUP CORP 1.15%
TDK CORP 1.14%
UNICREDIT SPA 1.14%
THALES SA 1.13%
AMUNDI SA 1.11%
COMPUGROUP MEDICAL SE 1.11%
ROYAL DUTCH SHELL PLC-A SHS 1.11%
JOHNSON CONTROLS INTERNATION 1.10%
ORKLA ASA 1.10%
VALEO SA 1.09%
HEINEKEN NV 1.08%
LAFARGEHOLCIM LTD-REG 1.08%
HIBERNIA REIT PLC 1.07%
COX AND KINGS LTD 1.05%
SK HYNIX INC 1.05%
KOMATSU LTD 1.04%
ALTICE NV - A 1.03%
TOYO TIRE & RUBBER CO LTD 1.03%
SMC CORP 1.00%
KONINKLIJKE AHOLD DELHAIZE N 0.99%
UNILEVER NV-CVA 0.99%
HANGZHOU HIKVISION DIGITAL-A 144A REGS WARRANT 12/18/2017 0.98%
SECURITAS AB-B SHS 0.96%
SARTORIUS AG-PFD PCT 0.000 0.91%
SCREEN HOLDINGS CO LTD 0.91%
ROHM CO LTD 0.86%
SAFARICOM LTD 0.85%
SBERBANK PJSC -SPONSORED ADR 0.84%
BANCO MACRO SA-ADR 0.83%
BEAUTY COMMUNITY PCL-FOREIGN 0.80%
CHINA WATER AFFAIRS GROUP 0.78%
ALBEMARLE CORP 0.77%
ARCELORMITTAL 0.77%
ENCANA CORP 0.76%
VEOLIA ENVIRONNEMENT 0.76%
RPC GROUP PLC 0.75%
X 5 RETAIL GROUP NV-REGS GDR 0.75%
SHANGHAI FOSUN PHARMACEUTI-H 0.74%
LINDAB INTERNATIONAL AB 0.73%
SHISEIDO CO LTD 0.73%
AIN HOLDINGS INC 0.72%
AIXTRON AG 0.72%
DXC TECHNOLOGY CO 0.72%
RIB SOFTWARE SE 0.72%
AKZO NOBEL 0.71%
ILUKA RESOURCES LTD 0.71%
RHEINMETALL AG 0.71%
ALCOA CORP 0.68%
AENA SA 0.67%
CENOVUS ENERGY INC 0.67%
DART GROUP PLC 0.67%
SHANGHAI INTL AIRPORT CO LTD 144A REGS WARRANT 05/07/2018 0.67%
BASSO INDUSTRY CORP 0.66%
CREDICORP LTD 0.65%
ADMIRAL GROUP PLC 0.61%
NOMAD FOODS LTD 0.61%
RAYTHEON COMPANY 0.61%
COM HEM HOLDING AB 0.58%
GREENCORE GROUP PLC 0.58%
KENNEDY-WILSON HOLDINGS INC 0.58%
ZEE ENTERTAINMENT ENTERPRISE 0.58%
ASML HOLDING NV 0.57%
FACEBOOK INC-A 0.57%
JAZZ PHARMACEUTICALS PLC 0.57%
AMAZON.COM INC 0.56%
SODICK CO LTD 0.55%
NCSOFT CORP 0.54%
UBI SOFT ENTERTA 0.54%
DELIVERY HERO HOLDIN P/P 0.50%
ALPHABET INC-CL C 0.46%
HAMILTON LANE INC-CLASS A 0.44%
KKR & CO LP 0.40%
MTU AERO ENGINES AG 0.40%
INDIAN RUPEE CALL ACCOUNT 0.37%
INSTRUCTURE INC 0.36%
POUND STERLING CALL ACCOUNT 0.36%
FOXTONS GROUP PLC 0.31%
HONG KONG DOLLAR CALL ACCOUNT 0.25%
DELIVERY HERO AG 0.22%
MATAHARI DEPARTMENT STORE TB 0.21%
CANADIAN DOLLAR ACCOUNT 0.15%
CHF/USD 09/20/2017 BCAP-FX 0.03%
CHF/USD 09/20/2017 SSBT 0.03%
GBP/USD 09/20/2017 JPMCB 0.03%
GLOBAL FASHION GRP P/P 0.03%
EUR/USD 09/20/2017 GSFX 0.02%
JPY/USD 08/16/2017 GSFX 0.02%
DKK/USD 09/20/2017 CITI 0.01%
EUR/USD 09/20/2017 CITI 0.01%
JPY/USD 08/16/2017 CITI 0.01%
SEK/USD 09/20/2017 JPMCB 0.01%
AUD/USD 07/19/2017 BANKAM 0.00%
AUD/USD 07/19/2017 CITI 0.00%
AUD/USD 07/19/2017 GSFX 0.00%
CAD/USD 07/19/2017 BANKAM 0.00%
CAD/USD 07/19/2017 CITI 0.00%
CAD/USD 07/19/2017 SSBT 0.00%
CHF/USD 09/20/2017 UBS 0.00%
CNH/USD 08/16/2017 GSFX 0.00%
EGYPTIAN POUND CALL ACCOUNT 0.00%
EUR/USD 09/20/2017 SSBT 0.00%
FABFURNISH GMBH P/P 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 JPMCB 0.00%
KOREAN WON CALL ACCOUNT 0.00%
KRW/USD 08/16/2017 JPMCB 0.00%
MXN/USD 07/19/2017 CITI 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%
NZD/USD 07/19/2017 CSI-FX 0.00%
SEK/USD 09/20/2017 CSI-FX 0.00%
SFR GROUP SA 0.00%
SGD/USD 08/16/2017 JPMCB 0.00%
EUR/USD 09/20/2017 UBS -0.01%
GBP/USD 09/20/2017 BANKAM -0.01%
JPY/USD 08/16/2017 SSBT -0.01%
CHF/USD 09/20/2017 JPMCB -0.02%
EUR/USD 09/20/2017 JPMCB -0.02%
EUR/USD 09/20/2017 HSBCB -0.03%
KENYA SHILLING CALL ACCOUNT -0.04%
JAPANESE YEN CALL ACCOUNT -0.19%
THE EURO EUR CALL ACCOUNT -0.32%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
Bayer Ag
Tencent Holdings
Aia Group
Sony Corp
Airbus
Challenger Financial Service
Valeo
Alibaba Group Holding
Shire
Compass Group
Holdings represent 18.49% of portfolio
Top 10 holdings as of 08/31/17
Bayer Ag
Aia Group
Tencent Holdings
Sony Corp
Challenger Financial Service
Alibaba Group Holding
Compass Group
Clinigen Group
Heineken Nv
Unilever Nv
Holdings represent 18.37% of portfolio
Top 10 holdings as of 07/31/17
Bayer Ag
Aia Group
Sony Corp
Challenger Financial Service
Tencent Holdings
Shire
Compass Group
Kumagai Gumi
Alibaba Group Holding
Valeo
Holdings represent 18.35% of portfolio
Top 10 holdings as of 06/30/17
Bayer Ag
Aia Group
Challenger Financial Service
British American Tobacco
Compass Group
Tencent Holdings
Sony Corp
Kumagai Gumi
Reed Elsevier N.V.
Siemens Ag
Holdings represent 17.82% of portfolio

Portfolio composition as of 09/30/17

Common stock 98.77%
Cash and net other assets 1.23%

Equity statistics as of 09/30/17

Median market cap $8.85B
Weighted average market cap $50.49B
Price to book 2.40
Price to earnings 15.64

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 the market may not favor growth-style investing. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific company 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

Industrials 20.86%
Financials 17.06%
Information technology 16.73%
Consumer discretionary 13.24%
Consumer staples 9.87%
Health care 7.89%
Materials 6.33%
Energy 3.05%
Telecommunication services 1.50%
 
Other
3.47%
Utilities 1.42%
Cash and net other assets 1.23%
Real estate 0.82%

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 18.25%
United Kingdom 15.87%
Germany 7.90%
United States 7.88%
France 7.61%
China 6.70%
Netherlands 5.80%
India 4.39%
Ireland 3.62%
 
Other
21.98%
Australia 2.71%
Sweden 2.50%
South Korea 2.02%
Russia 2.00%
Hong Kong 1.93%
Taiwan 1.42%
Finland 1.39%
Cash and net other assets 1.23%
Canada 1.22%
Italy 1.22%
Switzerland 1.04%
Argentina 0.99%
Brazil 0.89%
Turkey 0.74%
Hungary 0.65%
Luxembourg 0.03%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class Y
Total expense ratio 1.50% 2.25% 2.25% 2.00% 1.75% 1.25%
What you pay 1.50% 2.25% 2.25% 2.00% 1.75% 1.25%

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 MSCI EAFE Growth Index is an unmanaged index that measures the performance of equity securities in 20 countries within Europe, Australasia and the Far East with a greater-than-average growth 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. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific company 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.