Emerging Markets Income Fund  (PEMWX)

Pursuing high current income and diverse return opportunities across the emerging-market debt landscape

Objective

The fund seeks high current income. Capital growth is a secondary goal when consistent with achieving high current income.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $9.42
0.21% | $0.02
$9.54
09/08/17
$8.56
12/02/16
Historical fund price

Fund facts as of 08/31/17

Total net assets
$18.89M
Turnover (fiscal year end)
48%
Dividend frequency (view rate)
Monthly
Number of holdings
97
Fiscal year end
November
CUSIP / Fund code
74676A758 / 082
Inception Date
03/27/13
Category
Taxable Income
Open to new investors
Ticker
PEMWX

Management team


Co-Head of Fixed Income

Portfolio Manager

Chief Investment Officer, Fixed Income

Strategy and process

  • Improving fundamentals: Today, many emerging-market economies are better positioned than those of developed countries, given lower sovereign debt levels, faster economic growth, and the tailwind of solid commodity prices.
  • Diversification benefits: Emerging-market debt as an asset class offers low correlation and can help add diversification to investments in a number of more traditional asset classes.
  • Active management: Putnam's veteran fund managers have experience investing in emerging markets using fundamental research and top-down macro analysis, and have the expertise to pursue attractive opportunities while mitigating unwanted risks.

Literature


Using and enhancing ESG investment data
ESG data is having investment impact but is still evolving, and stands to benefit from feedback offered by fundamental analysts.
Why there's nothing wrong with a "just right" market
When assessing the markets and economy the media often looks for drama, but headlines are our least-used investment tool.
Value benefits from an expanding economy
Value stocks have lagged the market in 2017, but if the economy continues to expand, rates rise, and the yield curve steepens, this trend could reverse.

Performance

  • Total return (%) as of 06/30/17

  • Annual performance as of 06/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. Life (inception: 03/27/13 )
Before sales charge 6.81% 2.37% -- 2.02%
After sales charge 2.54% 0.99% -- 1.05%
Putnam Emerging Market Debt Blended Index 6.50% 2.54% 3.63% --

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 08/31/17 2.03 % -2.05 %
YTD as of 09/22/17 10.78 % 6.35 %

Yield

Distribution rate before sales charge
as of 09/22/17
3.57%
Distribution rate after sales charge
as of 09/22/17
3.43%
30-day SEC yield with subsidy
as of 08/31/17 (after sales charge)
4.39%
30-day SEC yield without subsidy
as of 08/31/17 (after sales charge)
3.56%

Risk-adjusted performance as of 08/31/17

Sharpe ratio (3 yrs.) 0.41
Information ratio (3 yrs.) 0.14

Volatility as of 08/31/17

Standard deviation (3 yrs.) 8.06%
Beta 1.14
R-squared 0.95

Lipper rankings as of 08/31/17

Emerging Mrkts Hard Currency Debt Funds Percentile ranking Rank/Funds in category
1 yr. 60% 163/275
3 yrs. 62% 132/213
5 yrs.   --
10 yrs.   --

Morningstar ratings as of 08/31/17

Emerging Markets Bond Rating Funds in category
Overall (223)
3 yrs. (223)

Distributions

Record/Ex dividend date 09/21/17
Payable date 09/25/17
Income $0.028
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 08/31/17

Russia Govt Bond - Ofz 08.1500 02/03/2027 4.50%
Turkey Government Bond Try 11.0000 03/02/2022 4.43%
Petroleos Mexicanos Usd 05.5000 01/21/2021 2.97%
Titulos De Tesoreria B 10.0000 07/24/2024 2.71%
Nota Do Tesouro Nacional 10.0000 01/01/2025 2.44%
Vtb Bank (Vtb Cap P/P 144a 06.9500 10/17/2022 2.35%
Cemex Sab De Cv Regs 06.1250 05/05/2025 2.32%
Republic Of Colombia Usd 04.5000 01/28/2026 2.28%
Mex Bonos Desarr Fix Rt 08.0000 12/07/2023 2.27%
Republic Of Turkey Usd 06.0000 01/14/2041 2.26%
Top 10 holdings, percent of portfolio 28.53%

Full portfolio holdings as of 06/30/17

RUSSIA GOVT BOND - OFZ 08.1500 02/03/2027 4.50%
PETROLEOS MEXICANOS USD 05.5000 01/21/2021 2.95%
TITULOS DE TESORERIA B 10.0000 07/24/2024 2.80%
MEX BONOS DESARR FIX RT 08.0000 12/07/2023 2.70%
VTB BANK (VTB CAP SA P/P 144A 06.9500 10/17/2022 2.30%
CEMEX SAB DE CV REGS 06.1250 05/05/2025 2.29%
RUSSIAN FEDERATION REGS 04.8750 09/16/2023 2.29%
REPUBLIC OF COLOMBIA USD 04.5000 01/28/2026 2.28%
REPUBLIC OF TURKEY USD 06.0000 01/14/2041 2.21%
NOTA DO TESOURO NACIONAL 10.0000 01/01/2025 2.19%
RUSSIA GOVT BOND - OFZ 07.6000 07/20/2022 2.18%
REPUBLIC OF CHILE USD 03.1250 01/21/2026 2.12%
TURKEY GOVERNMENT BOND TRY 08.8000 09/27/2023 2.00%
CODELCO INC P/P 144A 03.7500 11/04/2020 1.80%
REPUBLIC OF POLAND USD 05.0000 03/23/2022 1.80%
FED REPUBLIC OF BRAZIL USD 06.0000 04/07/2026 1.64%
PROVINCIA DE BUENOS AIRE REGS 07.8750 06/15/2027 1.63%
PROVINCIA DE BUENOS P/P REGS 23.9550 05/31/2022 1.59%
INDONESIA GOVERNMENT 08.3750 09/15/2026 1.56%
REP OF ARGENTINA USD 07.1250 07/06/2036 1.54%
KINGDOM OF BAHRAIN REGS 07.0000 10/12/2028 1.46%
NOTA DO TESOURO NACIONAL 10.0000 01/01/2023 1.45%
INDONESIA GOVERNMENT 08.7500 05/15/2031 1.41%
INTER-AMERICAN DEVEL BK 07.2000 01/22/2018 1.30%
PETROBRAS GLOBAL FINANCE USD 08.7500 05/23/2026 1.28%
REPUBLIC OF TURKEY USD 06.6250 02/17/2045 1.19%
MONGOLIA INTL BOND P/P 144A 08.7500 03/09/2024 1.18%
BANCO DE CREDITO P/P 144A 06.1250 04/24/2027 1.17%
KAZMUNAIGAZ FIN SUB P/P 144A 06.3750 04/09/2021 1.16%
REPUBLIC OF PERU USD 07.3500 07/21/2025 1.16%
CENCOSUD SA P/P 144A 04.8750 01/20/2023 1.15%
REP OF INDONESIA P/P 144A 05.1250 01/15/2045 1.15%
RUSSIAN FEDERATION P/P 144A 05.6250 04/04/2042 1.15%
CEMEX SAB DE CV P/P 144A 06.1250 05/05/2025 1.14%
UNITED MEXICAN STATES USD 04.3500 01/15/2047 1.14%
MEXICHEM SAB DE CV P/P 144A 04.8750 09/19/2022 1.13%
REP OF SRI LANKA P/P 144A 06.8500 11/03/2025 1.12%
REPUBLIC OF PHILIPPINES USD 03.9500 01/20/2040 1.12%
SOCIALIST REP OF VIE P/P 144A 04.8000 11/19/2024 1.11%
ARAB REP OF EGYPT P/P 144A 06.1250 01/31/2022 1.10%
HUNGARY USD 05.3750 03/25/2024 1.10%
PETROBRAS GLOBAL FINANCE USD 05.3750 01/27/2021 1.09%
BANCO NAL COSTA RICA P/P 144A 04.8750 11/01/2018 1.08%
TURKIYE GARANTI BANK P/P 144A 05.2500 09/13/2022 1.08%
ST BK INDIA/LON P/P 144A 04.1250 08/01/2017 1.07%
ARGENTINE REPUBLIC USD 07.6250 04/22/2046 1.06%
IVORY COAST P/P 144A 06.1250 06/15/2033 1.02%
DIGICEL GROUP LTD P/P 144A 08.2500 09/30/2020 1.01%
INDO ENERGY FIN II P/P 144A 06.3750 01/24/2023 1.01%
POLAND GOVERNMENT BOND PLN 02.5000 07/25/2026 1.00%
HUNGARY GOVERNMENT BOND 05.5000 06/24/2025 0.97%
HUNGARY GOVERNMENT BOND 03.2500 10/22/2031 0.95%
MALAYSIA GOVERNMENT 03.9550 09/15/2025 0.93%
MEX BONOS DESARR FIX RT 07.7500 11/13/2042 0.92%
ROMANIA GOVERNMENT BOND RON 05.9500 06/11/2021 0.91%
DOMINICAN REPUBLIC P/P 144A 05.5000 01/27/2025 0.83%
FIBRIA OVERSEAS FINANCE USD 05.2500 05/12/2024 0.83%
MALAYSIA GOVERNMENT 03.4920 03/31/2020 0.83%
REPUBLIC OF SOUTH AFRICA 07.7500 02/28/2023 0.81%
REPUBLIC OF TURKEY USD 07.3750 02/05/2025 0.78%
REPUBLIC OF EL SALVADOR REGS 05.8750 01/30/2025 0.73%
NEXEN ENERGY ULC USD 06.4000 05/15/2037 0.67%
EMBRAER OVERSEAS LTD P/P 144A 05.6960 09/16/2023 0.64%
POLAND GOVERNMENT BOND PLN 05.2500 10/25/2020 0.64%
REPUBLIC OF SOUTH AFRICA 10.5000 12/21/2026 0.62%
REPUBLIC OF PERU USD 08.7500 11/21/2033 0.61%
ENGIE ENERGIA CHILE P/P 144A 05.6250 01/15/2021 0.59%
CENT ELET BRASILEIRA P/P 144A 06.8750 07/30/2019 0.57%
PETRO CO TRIN/TOBAGO P/P 144A 09.7500 08/14/2019 0.56%
REPUBLIC OF SOUTH AFRICA 08.2500 03/31/2032 0.56%
DP WORLD SUKUK LTD P/P 144A 06.2500 07/02/2017 0.54%
UKRAINE GOVERNMENT REGS 07.7500 09/01/2027 0.52%
MEX BONOS DESARR FIX RT 07.7500 05/29/2031 0.50%
REPUBLIC OF COLOMBIA 04.3750 03/21/2023 0.49%
HELLENIC REPUBLIC P/P REGS 04.7500 04/17/2019 0.48%
REPUBLIC OF VENEZUELA REGS 12.7500 08/23/2022 0.46%
PETROLEOS MEXICANOS P/P 144A 07.6500 11/24/2021 0.31%
BANCO DE CREDITO DEL P/P 144A 06.8750 09/16/2026 0.30%
REPUBLIC OF PERU USD 04.1250 08/25/2027 0.29%
REPUBLIC OF PERU P/P 144A 06.9000 08/12/2037 0.23%
PETROBRAS GLOBAL FINANCE USD 08.3750 05/23/2021 0.21%
COP/USD 07/19/2017 SSBT 0.13%
PETROLEOS DE VENEZUELA S REGS 05.3750 04/12/2027 0.10%
RUB/USD 09/20/2017 GSFX 0.10%
PETROLEOS DE VEN P/P 144A 06.0000 11/15/2026 0.07%
PETROBRAS GLOBAL FINANCE USD 06.1250 01/17/2022 0.06%
ZAR/USD 07/19/2017 CITI 0.05%
PLN/USD 09/20/2017 SSBT 0.02%
TRY/USD 09/20/2017 SSBT 0.02%
BRL/USD 10/03/2017 CITI 0.01%
MXN/USD 07/19/2017 CITI 0.01%
CNH/USD 08/16/2017 GSFX 0.00%
EUR/USD 09/20/2017 RBSF 0.00%
IDR/USD 08/16/2017 JPMCB 0.00%
INR/USD 08/16/2017 GSFX 0.00%
MYR/USD 08/16/2017 CITI 0.00%
PEN/USD 07/19/2017 SSBT 0.00%
TRY/USD 09/20/2017 RBSF 0.00%
TRY/USD 09/20/2017 UBS 0.00%
TWD/USD 08/16/2017 CITI 0.00%
US 10YR NOTE (CBT)SEP17 TYU7 0.00%
US 2YR NOTE (CBT) SEP17 TUU7 0.00%
US 5YR NOTE (CBT) SEP17 FVU7 0.00%
US ULTRA BOND CBT SEP17 WNU7 0.00%
ZAR/USD 07/19/2017 GSFX 0.00%
EUR/USD 09/20/2017 BANKAM -0.01%
EUR/USD 09/20/2017 JPMCB -0.01%
INR/USD 08/16/2017 BANKAM -0.01%
RON/USD 09/20/2017 SSBT -0.01%
SGD/USD 08/16/2017 BANKAM -0.01%
SGD/USD 08/16/2017 HSBCB -0.01%
HUF/USD 09/20/2017 SSBT -0.02%
SGD/USD 08/16/2017 SSBT -0.02%

Prior top 10 holdings

Top 10 holdings as of 08/31/17
Russia Govt Bond - Ofz 08.1500 02/03/2027
Turkey Government Bond Try 11.0000 03/02/2022
Petroleos Mexicanos Usd 05.5000 01/21/2021
Titulos De Tesoreria B 10.0000 07/24/2024
Nota Do Tesouro Nacional 10.0000 01/01/2025
Vtb Bank (Vtb Cap P/P 144a 06.9500 10/17/2022
Cemex Sab De Cv Regs 06.1250 05/05/2025
Republic Of Colombia Usd 04.5000 01/28/2026
Mex Bonos Desarr Fix Rt 08.0000 12/07/2023
Republic Of Turkey Usd 06.0000 01/14/2041
Holdings represent 28.53% of portfolio
Top 10 holdings as of 07/31/17
Russia Govt Bond - Ofz 08.1500 02/03/2027
Petroleos Mexicanos Usd 05.5000 01/21/2021
Titulos De Tesoreria B 10.0000 07/24/2024
Nota Do Tesouro Nacional 10.0000 01/01/2025
Vtb Bank (Vtb Cap P/P 144a 06.9500 10/17/2022
Cemex Sab De Cv Regs 06.1250 05/05/2025
Republic Of Colombia Usd 04.5000 01/28/2026
Mex Bonos Desarr Fix Rt 08.0000 12/07/2023
Republic Of Turkey Usd 06.0000 01/14/2041
Republic Of Chile Usd 03.1250 01/21/2026
Holdings represent 26.51% of portfolio
Top 10 holdings as of 06/30/17
Russia Govt Bond - Ofz 08.1500 02/03/2027
Petroleos Mexicanos Usd 05.5000 01/21/2021
Titulos De Tesoreria B 10.0000 07/24/2024
Mex Bonos Desarr Fix Rt 08.0000 12/07/2023
Vtb Bank (Vtb Cap P/P 144a 06.9500 10/17/2022
Russian Federation Regs 04.8750 09/16/2023
Cemex Sab De Cv Regs 06.1250 05/05/2025
Republic Of Colombia Usd 04.5000 01/28/2026
Republic Of Turkey Usd 06.0000 01/14/2041
Nota Do Tesouro Nacional 10.0000 01/01/2025
Holdings represent 26.51% of portfolio
Top 10 holdings as of 05/31/17
Titulos De Tesoreria B 10.0000 07/24/2024
Republic Of Chile Usd 03.1250 01/21/2026
Russia Govt Bond - Ofz 08.1500 02/03/2027
Petroleos Mexicanos Usd 05.5000 01/21/2021
Petroleos Mexicanos Usd 06.7500 09/21/2047
Mex Bonos Desarr Fix Rt 08.0000 12/07/2023
Vtb Bank (Vtb Cap P/P 144a 06.9500 10/17/2022
Russian Federation Regs 04.8750 09/16/2023
Nota Do Tesouro Nacional 10.0000 01/01/2025
Russia Govt Bond - Ofz 07.6000 07/20/2022
Holdings represent 27.62% of portfolio

Fixed income statistics as of 08/31/17

Average effective maturity 7.90 yrs.
Average effective duration 5.44 yrs.
Average yield to maturity 5.82%
Average coupon 7.00%
Average price $147.79

Sector weightings as of 08/31/17

  Cash investments Non-cash investments Total portfolio
  Weight Spread duration Weight Spread duration Weight Spread duration
Emerging-market bonds 90.50% 5.69 0.00% 0.00 90.50% 5.69
Net cash 4.84% 0.00 0.00% 0.00 4.84% 0.00
High-yield corporate bonds 2.16% 0.06 0.00% 0.00 2.16% 0.06
International Treasury/agency 1.80% 0.03 0.00% 0.00 1.80% 0.03
Investment-grade corporate bonds 0.70% 0.09 0.00% 0.00 0.70% 0.09
U.S. Treasury/agency 0.00% 0.00 0.00% -0.36 0.00% -0.36

Spread duration is displayed in years and reflects the contribution by sector to the portfolio's total spread duration with the exception of the Treasury and Interest-rate swap sectors where effective duration is displayed. Spread duration estimates the price sensitivity of a specific sector or asset class to a 100 basis-point movement, 1%, (either widening or narrowing) in its yield spread relative to Treasuries. Effective duration provides a measure of a portfolio's interest-rate sensitivity. The longer a portfolio's duration, the more sensitive the portfolio is to shifts in the interest rates. Allocations may not total 100% of net assets because the table includes the notional value of derivatives (the economic value for purposes of calculating periodic payment obligations), in addition to the market value of securities.

Maturity detail as of 08/31/17

0 - 1 yr. 6.15%
1 - 5 yrs. 27.50%
5 - 10 yrs. 48.86%
10 - 15 yrs. 4.06%
Over 15 yrs. 13.43%

Quality rating as of 08/31/17

AAA 1.40%
AA 2.14%
A 10.80%
BBB 35.93%
BB 29.95%
B 13.76%
CCC and Below 1.27%
Not Rated 4.75%

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including perceptions about the risk of default and expectations about monetary policy or interest rates), 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. International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. 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 fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than can a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a more diversified fund. Emerging markets often do not provide legal remedies for bondholders comparable to those available to bondholders in the United States, and it may not be possible to dispose of bonds of distressed issuers. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of net assets as of the date indicated above. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor's, Moody's and Fitch. Short-term cash bonds are included in their closest long-term equivalent rating category. To be announced (TBA) mortgage commitments, if any, are included based on their issuer ratings. Ratings and portfolio credit quality will vary over time. Derivative instruments, including currency forwards, are only included to the extent of any unrealized gain or loss on such instruments and are shown in the not-rated category. Cash is also shown in the not-rated category. Derivative offset values are included in the not-rated category and may result in negative weights. The fund itself has not been rated by an independent rating agency.

Country Allocation as of 08/31/17

Mexico 11.71%
Turkey 11.21%
Brazil 11.15%
Russia 9.62%
Argentina 6.07%
Colombia 5.45%
Indonesia 5.25%
United States 3.93%
Peru 3.82%
 
Other
31.79%
Chile 2.72%
Costa Rica 2.26%
South Africa 2.11%
Uruguay 1.94%
Dominican Republic 1.84%
Canada 1.80%
Malaysia 1.80%
Bahrain 1.51%
Supra-Nation 1.31%
Mongolia 1.24%
Kazakhstan 1.19%
Sri Lanka 1.19%
Hungary 1.15%
Vietnam 1.14%
Philippines 1.12%
Egypt 1.11%
Ivory Coast 1.07%
Jamaica 1.05%
Poland 0.94%
Romania 0.91%
El Salvador 0.76%
Ukraine 0.56%
Venezuela 0.50%
Greece 0.49%
China 0.13%
Australia -0.02%
European Community -0.03%

Expenses

Expense ratio

Class A Class B Class C Class M Class Y
Total expense ratio 2.18% 2.93% 2.93% 2.43% 1.93%
What you pay† 1.25% 2.00% 2.00% 1.50% 1.00%

† 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 03/30/18

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class Y
$0-$49,999 4.00% 0.00% 0.00% 3.25% --
$50,000-$99,999 4.00% 0.00% 0.00% 2.25% --
$100,000-$249,999 3.25% -- 0.00% 1.25% --
$250,000-$499,999 2.50% -- 0.00% 1.00% --
$500,000-$999,999 0.00% -- -- -- --
$1M-$4M 0.00% -- -- -- --
$4M-$50M 0.00% -- -- -- --
$50M+ 0.00% -- -- -- --

CDSC

  Class A (sales for $500,000+) Class B Class C Class M 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 blended index is equally weighted between one third JPMorgan Emerging Markets Bond Index Global Diversified, one third JPMorgan Corporate Emerging Markets Bond Index Diversified, and one third JPMorgan Government Bond Index - Emerging Markets Global Diversified. You cannot invest directly in an index.

Consider these risks before investing: Bond prices may fall or fail to rise over time for several reasons, including general financial market conditions, changing market perceptions (including perceptions about the risk of default and expectations about monetary policy or interest rates), 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. International investing involves currency, economic, and political risks. Emerging-market securities carry illiquidity and volatility risks. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. 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 fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than can a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a more diversified fund. Emerging markets often do not provide legal remedies for bondholders comparable to those available to bondholders in the United States, and it may not be possible to dispose of bonds of distressed issuers. You can lose money by investing in the fund.

Credit qualities are shown as a percentage of net assets as of the date indicated above. A bond rated BBB or higher (A-3 or higher, for short-term debt) is considered investment grade. This chart reflects the highest security rating provided by one or more of Standard & Poor's, Moody's and Fitch. Short-term cash bonds are included in their closest long-term equivalent rating category. To be announced (TBA) mortgage commitments, if any, are included based on their issuer ratings. Ratings and portfolio credit quality will vary over time. Derivative instruments, including currency forwards, are only included to the extent of any unrealized gain or loss on such instruments and are shown in the not-rated category. Cash is also shown in the not-rated category. Derivative offset values are included in the not-rated category and may result in negative weights. The fund itself has not been rated by an independent rating agency.