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Emerging Markets Equity Fund (Class Y)  (PEMYX)

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 $10.94
-1.35% | $-0.15
$12.10
08/27/18
$10.17
12/24/18
Historical fund price

Fund facts as of 07/31/19

Total net assets
$145.13M
Turnover (fiscal year end)
172%
Dividend frequency
Annually
Number of holdings
84
Fiscal year-end
August
CUSIP / Fund code
746764604 / 1859
Inception date
09/29/08
Category
Blend
Open to new investors
Ticker
PEMYX

Management team

Portfolio Manager
Portfolio Manager, Analyst



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.

12.97%

Best 5-year annualized return

(for period ending 12/31/13)


-4.72%

Worst 5-year annualized return

(for period ending 03/31/16)


3.51%

Average 5-year annualized return


  • Total return (%) as of 06/30/19

  • Annual performance as of 06/30/19

Annualized Total return (%) as of 06/30/19

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge -1.87% 10.59% 3.17% 5.43%
After sales charge N/A N/A N/A N/A
MSCI Emerging Markets Index (ND) 1.21%10.66%2.49%5.81%

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 07/31/19 -1.27% -
YTD as of 08/23/19 4.89% -

Risk-adjusted performance as of 07/31/19

Alpha (3 yrs.) 0.28
Sharpe ratio (3 yrs.) 0.52
Treynor ratio (3 yrs.) 7.32
Information ratio (3 yrs.) 0.04

Volatility as of 07/31/19

Standard deviation (3 yrs.) 13.78%
Beta 0.98
R-squared 0.93

Capture ratio as of 07/31/19

Up-market (3 yrs.) 98.01
Down-market (3 yrs.) 96.37

Lipper rankings as of 07/31/19

Time period Rank/Funds in category Percentile ranking
1 yr. 543/790 69%
3 yrs. 208/676 31%
5 yrs. 135/537 26%
10 yrs. 138/241 58%
Lipper category: Emerging Markets Funds

Morningstar Ratings as of 07/31/19

Time period Funds in category Morningstar Rating
Overall 713
3 yrs. 713
5 yrs. 565
10 yrs. 240
Morningstar category: Diversified Emerging Mkts

Distributions

Record/Ex dividend date 12/21/18
Payable date 12/26/18
Income $0.019
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 07/31/19

Tencent Holdings 5.98%
Alibaba Group Holding 5.55%
Samsung Electronics 4.84%
Taiwan Semiconductor Manufacturing 3.46%
Ping An Insurance Group Of China 3.18%
Naspers 3.01%
Lukoil Pjsc 2.20%
Aia Group 2.17%
Petroleo Brasileiro 1.94%
Housing Development Finance Corp 1.93%
Top 10 holdings, percent of portfolio 34.26%

Full portfolio holdings as of 06/30/19

ALIBABA GROUP HOLDING-SP ADR 5.29%
SAMSUNG ELECTRONICS CO LTD 5.06%
TENCENT HOLDINGS LTD 4.93%
TAIWAN SEMICONDUCTOR MANUFAC 3.14%
PING AN INSURANCE GROUP CO-H 2.96%
HDFC BANK LIMITED 2.33%
NASPERS LTD-N SHS 2.27%
LUKOIL PJSC-SPON ADR 2.23%
AIA GROUP LTD 2.21%
HOUSING DEVELOPMENT FINANCE 1.96%
PETROLEO BRASILEIRO-SPON ADR 1.92%
MEDIATEK INC 1.58%
INFOSYS LTD 1.48%
CHINA WATER AFFAIRS GROUP 1.44%
ABU DHABI COMMERCIAL BANK 1.42%
CNOOC LTD 1.40%
SUNNY FRIEND ENVIRONMENTAL T 1.39%
HONG KONG EXCHANGES & CLEAR 1.30%
COMMERCIAL INTL BANK-GDR REG 1.30%
CREDICORP LTD 1.22%
JUBILANT FOODWORKS LTD 1.22%
LG HOUSEHOLD & HEALTH CARE 1.20%
COMPANHIA DE LOCACAO DAS AME 1.20%
CHINA CONSTRUCTION BANK-H 1.12%
NETEASE INC-ADR 1.10%
ISHARES MSCI EMERGING MARKET 1.09%
MOL HUNGARIAN OIL AND GAS PL 1.09%
CHINA OVERSEAS LAND & INVEST 1.08%
BUPA ARABIA 144A/REGS WARRANT 12/16/2021 1.06%
NATIONAL BANK OF KUWAIT 144A/REGS WARRANT 01/16/2020 1.06%
GEOPARK LTD 1.05%
IVANHOE MINES LTD-CL A 1.03%
WALMART DE MEXICO SAB DE CV 1.02%
ABSA GROUP LTD 0.99%
WILCON DEPOT INC 0.98%
TCI CO LTD 0.95%
LOGAN PROPERTY HOLDINGS CO L 0.94%
CTRIP.COM INTERNATIONAL-ADR 0.94%
ALLIANCE GLOBAL GROUP INC 0.93%
INTER RAO UES PJSC 0.92%
X 5 RETAIL GROUP NV-REGS GDR 0.92%
SINO-AMERICAN SILICON PRODUC 0.91%
FU SHOU YUAN INTERNATIONAL 0.90%
GUANGZHOU BAIYUN AIRPORT 144A/REGS WARRANT 04/10/2020 0.88%
CHINA RAILWAY GROUP LTD-H 0.88%
NESTLE INDIA LTD 0.86%
GRUPO BIMBO SAB- SERIES A 0.85%
CTCI CORP 0.85%
DINO POLSKA SA 0.84%
GRUPO FINANCIERO GALICIA-ADR 0.82%
UPL LTD 0.81%
POYA INTERNATIONAL CO LTD 0.81%
ATACADAO SA 0.80%
JERONIMO MARTINS 0.80%
SHENZHOU INTERNATIONAL GROUP 0.80%
EDELWEISS FINANCIAL SERVICES 0.79%
ANGLO AMERICAN PLC 0.79%
AYALA LAND INC 0.79%
SBERBANK PJSC -SPONSORED ADR 0.77%
SAFARICOM PLC 0.77%
ITAU UNIBANCO H-SPON PRF ADR 0.76%
KEI INDUSTRIES LTD 0.74%
TENCENT HOLDINGS LTD-UNS ADR 0.74%
CLEAN TEQ HOLDINGS LTD 0.71%
GRAPE KING BIO LTD 0.70%
YANDEX NV-A 0.70%
CHAILEASE HOLDING CO LTD 0.69%
MONETA MONEY BANK AS 0.69%
COBALT 27 CAPITAL CORP 0.68%
IRB BRASIL RESSEGUROS SA 0.64%
WIJAYA KARYA PERSERO TBK PT 0.64%
LOMA NEGRA CIA IND-SPON ADR 0.62%
PINDUODUO INC-ADR 0.59%
MOTA ENGIL SGPS SA 0.56%
JARIR AB R US0001M P 03/30/20 BA 0.55%
UNITED INTL TRANSPORTATION 144A/REGS WARRANT 12/09/2021 0.55%
NASPERS LTD-N SHS SPON ADR 0.50%
AFREECATV CO LTD 0.47%
SAUDI CO FOR HARDWARE 144A/REGS WARRANT 01/20/2022 0.47%
I-SENS INC 0.45%
BANK TABUNGAN PENSIUNAN NASI 0.44%
HILONG HOLDING LTD 0.39%
AZUL SA-ADR 0.38%
CHINA TRADITIONAL CHINESE ME 0.34%
JARIR AB R US0001M P 04/06/20 BA 0.22%
SCH AB R US0001M P 04/27/20 BA 0.21%
TREASURY BILL 00.0000 08/08/2019 0.08%
BUDGET AB R US0001M P 04/27/20 BA 0.02%
BUPA AB R US0001M P 04/30/20 BA 0.02%
GLOBAL FASHION GRP P/P 0.01%
GLOBAL FASHION GRP 0.00%
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 07/31/19
Tencent Holdings
Alibaba Group Holding
Samsung Electronics
Taiwan Semiconductor Manufacturing
Ping An Insurance Group Of China
Naspers
Lukoil Pjsc
Aia Group
Petroleo Brasileiro
Housing Development Finance Corp
Holdings represent 34.26% of portfolio
Top 10 holdings as of 06/30/19
Tencent Holdings
Alibaba Group Holding
Samsung Electronics
Taiwan Semiconductor Manufacturing
Ping An Insurance Group Of China
Naspers
Hdfc Bank
Lukoil Pjsc
Aia Group
Housing Development Finance Corp
Holdings represent 33.63% of portfolio
Top 10 holdings as of 05/31/19
Tencent Holdings
Alibaba Group Holding
Samsung Electronics
Taiwan Semiconductor Manufacturing
Ping An Insurance Group Of China
Hdfc Bank
Naspers
Housing Development Finance Corp
Aia Group
Lukoil Pjsc
Holdings represent 30.80% of portfolio
Top 10 holdings as of 04/30/19
Tencent Holdings
Alibaba Group Holding
Taiwan Semiconductor Manufacturing
Samsung Electronics
Ping An Insurance Group Of China
Naspers
Hdfc Bank
Aia Group
Petroleo Brasileiro
Credicorp
Holdings represent 30.89% of portfolio

Portfolio composition as of 07/31/19

Common stock 96.15%
Cash and net other assets 3.14%
Preferred stock 0.71%

Equity statistics as of 07/31/19

Median market cap $7.62B
Weighted average market cap $101.70B
Price to book 2.35
Price to earnings 13.08

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.  From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. 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 07/31/19

Financials 22.24%
Consumer discretionary 15.07%
Information technology 12.55%
Industrials 11.06%
Communication services 9.80%
Energy 9.01%
Consumer staples 7.15%
Materials 4.42%
Cash and net other assets 3.14%
 
Other
5.56%
Real estate 2.69%
Utilities 2.40%
Health care 0.47%

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 07/31/19

China 27.53%
Taiwan 10.70%
India 8.65%
South Korea 7.11%
Brazil 6.40%
Russia 5.90%
Hong Kong 3.42%
Cash and net other assets 3.14%
South Africa 3.01%
 
Other
24.14%
Philippines 2.64%
Saudi Arabia 2.20%
Canada 1.73%
United Arab Emirates 1.57%
Argentina 1.55%
Egypt 1.47%
Portugal 1.34%
Peru 1.21%
Colombia 1.12%
Kuwait 1.12%
Mexico 1.11%
United Kingdom 1.11%
Indonesia 1.07%
Hungary 1.04%
Australia 0.83%
Thailand 0.83%
Kenya 0.77%
Czech Republic 0.72%
Poland 0.70%
Luxembourg 0.01%

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.  From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. 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.