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Emerging Markets Equity Fund (Class A)  (PEMMX)

Pursuing growth opportunities in developing economies

Highlights

Objective

The fund seeks long-term capital appreciation.

Strategy and process

  • Growth potential: Emerging markets offer the potential for continued growth due to attractive demographics, rising wealth, and increased investment in infrastructure in developing countries.
  • A disciplined process: By integrating multiple perspectives into portfolio construction, the fund manager is able to better evaluate individual companies within the context of changing local and global influences.
  • Rigorous research: The manager leverages Putnam's global research platform to identify opportunities across emerging and select frontier markets.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $11.57
0.00% | $0.00
$13.57
03/21/18
$10.06
12/24/18
Historical fund price

Fund facts as of 02/28/19

Total net assets
$179.21M
Turnover (fiscal year end)
172%
Dividend frequency
Annually
Number of holdings
101
Fiscal year-end
August
CUSIP / Fund code
746764109 / 0059
Inception date
09/29/08
Category
Blend
Open to new investors
Ticker
PEMMX

Management team

Portfolio Manager


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.

12.70%

Best 5-year annualized return

(for period ending 12/31/13)


-4.95%

Worst 5-year annualized return

(for period ending 03/31/16)


3.24%

Average 5-year annualized return


  • Total return (%) as of 12/31/18

  • Annual performance as of 12/31/18

Annualized Total return (%) as of 12/31/18

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge -17.55% 7.46% 1.68% 7.05%
After sales charge -22.29% 5.36% 0.48% 6.42%
MSCI Emerging Markets Index (ND) -14.57%9.25%1.65%8.02%

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 02/28/19 0.09% -5.67%
YTD as of 03/20/19 12.22% 5.77%

Risk-adjusted performance as of 02/28/19

Alpha (3 yrs.) -0.05
Sharpe ratio (3 yrs.) 0.90
Treynor ratio (3 yrs.) 13.91
Information ratio (3 yrs.) -0.28

Volatility as of 02/28/19

Standard deviation (3 yrs.) 14.04%
Beta 0.91
R-squared 0.90

Capture ratio as of 02/28/19

Up-market (3 yrs.) 91.84
Down-market (3 yrs.) 91.85

Lipper rankings as of 02/28/19

Time period Rank/Funds in category Percentile ranking
1 yr. 536/848 64%
3 yrs. 270/729 37%
5 yrs. 219/563 39%
10 yrs. 168/244 69%
Lipper category: Emerging Markets Funds

Morningstar Ratings as of 02/28/19

Time period Funds in category Morningstar Rating
Overall 713
3 yrs. 713
5 yrs. 552
10 yrs. 235
Morningstar category: Diversified Emerging Mkts

Distributions

Record/Ex dividend date 12/21/18
Payable date 12/26/18
Income $0.009
Extra income --
Short-term cap. gain --
Long-term cap. gain $0.206

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 02/28/19

Alibaba Group Holding 5.07%
Samsung Electronics 4.95%
Tencent Holdings 4.77%
Taiwan Semiconductor Manufacturing 3.66%
Ping An Insurance Group Of China 2.56%
Aia Group 2.44%
Lukoil Pjsc 2.05%
Credicorp 1.90%
Hdfc Bank 1.90%
Cnooc 1.76%
Top 10 holdings, percent of portfolio 31.06%

Full portfolio holdings as of 12/31/18

TENCENT HOLDINGS LTD 4.30%
ALIBABA GROUP HOLDING-SP ADR 4.23%
SAMSUNG ELECTRONICS CO LTD 3.99%
ISHARES MSCI EMERGING MARKET 2.99%
TAIWAN SEMICONDUCTOR MANUFAC 2.82%
LUKOIL PJSC-SPON ADR 2.13%
AIA GROUP LTD 2.07%
HDFC BANK LIMITED 2.03%
NASPERS LTD-N SHS 1.90%
PING AN INSURANCE GROUP CO-H 1.85%
CREDICORP LTD 1.79%
CHINA MOBILE LTD 1.74%
ITAU UNIBANCO H-SPON PRF ADR 1.74%
CHINA WATER AFFAIRS GROUP 1.64%
CHINA CONSTRUCTION BANK-H 1.61%
CNOOC LTD 1.60%
MEDIATEK INC 1.55%
PETROLEO BRASILEIRO-SPON ADR 1.47%
HOUSING DEVELOPMENT FINANCE 1.46%
INFOSYS LTD 1.37%
SASOL LTD 1.30%
AL RAJHI BANK 144A/REGS WARRANT 02/21/2019 1.26%
CANVEST ENVIRONMENTAL PROTEC 1.21%
WULIANGYE YIBIN 144A/REGS WARRANT 04/12/2019 1.13%
BUPA ARABIA 144A/REGS WARRANT 03/06/19 1.05%
X 5 RETAIL GROUP NV-REGS GDR 1.04%
SAMBA FINANCIAL GROUP 144A/REGS WARRANT 07/15/19 1.02%
SUNNY FRIEND ENVIRONMENTAL T 1.01%
ABU DHABI COMMERCIAL BANK 1.00%
GS RETAIL CO LTD 1.00%
ABSA GROUP LTD 0.99%
MOL HUNGARIAN OIL AND GAS PL 0.99%
NATIONAL BANK OF KUWAIT 144A/REGS WARRANT 11/13/2019 0.99%
POYA INTERNATIONAL CO LTD 0.99%
LARSEN & TOUBRO INFO 0.97%
HANA FINANCIAL GROUP 0.96%
TCI CO LTD 0.96%
SAMSUNG ELECTRONICS-PREF 0.95%
VALE SA-SP ADR 0.93%
CTCI CORP 0.92%
FORMOSA PLASTICS CORP 0.92%
DB INSURANCE CO LTD 0.91%
INDORAMA VENTURES-FOREIGN 0.90%
DINO POLSKA SA 0.89%
NESTLE INDIA LTD 0.87%
GRUMA S.A.B.-B 0.85%
CHINA TRADITIONAL CHINESE ME 0.84%
GEOPARK LTD 0.83%
ALLIANCE GLOBAL GROUP INC 0.81%
HYUNDAI MARINE 0.80%
NATURA COSMETICOS SA 0.80%
PETRONAS CHEMICALS GROUP BHD 0.79%
TUPY SA 0.79%
MONETA MONEY BANK AS 0.76%
BANK TABUNGAN PENSIUNAN NASI 0.73%
MEXICHEM SAB DE CV-* 0.73%
TURKIYE GARANTI BANKASI 0.72%
AYALA LAND INC 0.71%
GRAPE KING BIO LTD 0.71%
KEI INDUSTRIES LTD 0.70%
LG HOUSEHOLD & HEALTH CARE 0.70%
ELITE MATERIAL CO LTD 0.68%
CTBC FINANCIAL HOLDING CO LT 0.67%
EDELWEISS FINANCIAL SERVICES 0.67%
LOGAN PROPERTY HOLDINGS CO L 0.67%
CHINA OVERSEAS LAND & INVEST 0.66%
CLEAN TEQ HOLDINGS LTD 0.66%
AUROBINDO PHARMA LTD 0.64%
NETEASE INC-ADR 0.64%
FU SHOU YUAN INTERNATIONAL 0.63%
MAVI GIYIM SANAYI 0.63%
WEST CHINA CEMENT LTD 0.63%
SBERBANK PJSC -SPONSORED ADR 0.62%
LOCALIZA RENT A CAR 0.59%
BANGKOK CHAIN HOSPITAL-FOREG 0.57%
CHAILEASE HOLDING CO LTD 0.56%
MATAHARI DEPARTMENT STORE TB 0.56%
OLD MUTUAL LTD 0.56%
DAI DONG CO LTD 0.54%
KWG GROUP HOLDINGS LTD 0.54%
SAFARICOM PLC 0.48%
HANS LASER TECHNOLOGY 144A/REGS WARRANT 09/27/2019 0.45%
JNBY DESIGN LTD 0.41%
HILONG HOLDING LTD 0.36%
TENCENT HOLDINGS LTD-UNS ADR 0.26%
SKIPPER LTD 0.17%
GLOBAL FASHION GRP 0.01%
GLOBAL FASHION GRP P/P 0.01%
HC BRILLANT SERVICES GMBH P/P 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 0.00%

Prior top 10 holdings

Top 10 holdings as of 02/28/19
Alibaba Group Holding
Samsung Electronics
Tencent Holdings
Taiwan Semiconductor Manufacturing
Ping An Insurance Group Of China
Aia Group
Lukoil Pjsc
Credicorp
Hdfc Bank
Cnooc
Holdings represent 31.06% of portfolio
Top 10 holdings as of 01/31/19
Samsung Electronics
Tencent Holdings
Alibaba Group Holding
Taiwan Semiconductor Manufacturing
Ping An Insurance Group Of China
Aia Group
Lukoil Pjsc
Credicorp
Hdfc Bank
China Mobile Hk
Holdings represent 31.42% of portfolio
Top 10 holdings as of 12/31/18
Samsung Electronics
Tencent Holdings
Alibaba Group Holding
Ishares Msci Emerging Markets
Taiwan Semiconductor Manufacturing
Lukoil Pjsc
Aia Group
Hdfc Bank
Naspers
Ping An Insurance Group Of China
Holdings represent 29.52% of portfolio
Top 10 holdings as of 11/30/18
Samsung Electronics
Alibaba Group Holding
Tencent Holdings
Taiwan Semiconductor Manufacturing
Ishares Msci Emerging Markets
Lukoil Pjsc
Hdfc Bank
Aia Group
Ping An Insurance Group Of China
Itau Unibanco Holding
Holdings represent 30.02% of portfolio

Portfolio composition as of 02/28/19

Common stock 97.99%
Preferred stock 1.02%
Cash and net other assets 0.98%
Convertible preferred stock 0.01%

Equity statistics as of 02/28/19

Median market cap $5.85B
Weighted average market cap $92.27B
Price to book 2.05
Price to earnings 11.39

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, industry or sector. You can lose money by investing in the fund.

Top industry sectors as of 02/28/19

Financials 27.80%
Information technology 12.56%
Consumer discretionary 11.96%
Consumer staples 10.27%
Communication services 8.85%
Energy 8.43%
Industrials 5.43%
Utilities 4.26%
Materials 3.84%
 
Other
6.60%
Real estate 3.02%
Health care 2.60%
Cash and net other assets 0.98%

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 02/28/19

China 27.76%
Taiwan 11.69%
South Korea 9.87%
India 8.11%
Brazil 5.06%
South Africa 4.00%
Russia 3.27%
Saudi Arabia 3.01%
Philippines 2.66%
 
Other
24.57%
Hong Kong 2.44%
Turkey 2.26%
Peru 1.90%
Indonesia 1.87%
Hungary 1.73%
Argentina 1.65%
Kuwait 1.24%
Canada 1.22%
United Arab Emirates 1.06%
Colombia 1.03%
Cash and net other assets 0.98%
Czech Republic 0.98%
Poland 0.96%
Malaysia 0.80%
Portugal 0.78%
Egypt 0.73%
Chile 0.72%
Kenya 0.57%
Mexico 0.57%
Australia 0.54%
Netherlands 0.52%
Luxembourg 0.02%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R6 Class Y
Total expense ratio 1.83% 2.58% 2.58% 2.33% 2.08% 1.41% 1.58%
What you pay† 1.32% 2.07% 2.07% 1.82% 1.57% 0.90% 1.07%

† The fund's expense ratio is taken from the most recent prospectus and is subject to change. What you pay reflects Putnam Management's decision to contractually limit expenses through 12/30/19

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% -- -- -- --

MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. 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, industry or sector. You can lose money by investing in the fund.