International Equity Fund  (POVSX)

Pursuing the growth potential of overseas markets since 1991

Objective

The fund seeks capital appreciation.

Strategy and process

  • International companies: The fund invests in established large and midsize companies, mainly in developed markets to benefit from opportunities outside the United States.
  • A flexible strategy: Pursuing Putnam's blend strategy, the fund can own growth- or value-style stocks to participate when either style leads international markets.
  • A disciplined process: The portfolio manager invests using fundamental research and quantitative tools supported by strong risk controls in portfolio construction.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $25.73
0.08% | $0.02
$26.00
11/02/17
$20.60
12/28/16
Historical fund price

Fund facts as of 11/30/17

Total net assets
$1,007.50M
Turnover (fiscal year end)
67%
Dividend frequency
Annually
Number of holdings
86
Fiscal year-end
June
CUSIP / Fund code
74680E101 / 0035
Inception date
02/28/91
Category
Blend
Open to new investors
Ticker
POVSX

Management team


Co-Head of Equities


Literature


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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.

26.45%

Best 5-year annualized return

(for period ending 03/31/00)


-8.05%

Worst 5-year annualized return

(for period ending 06/30/12)


7.66%

Average 5-year annualized return


  • 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 19.11% 4.75% 8.76% 0.62%
After sales charge 12.26% 2.70% 7.48% 0.03%
MSCI EAFE Index (ND) 19.10% 5.04% 8.38% 1.34%

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 11/30/17 0.16 % -5.60 %
YTD as of 12/12/17 23.94 % 16.81 %

Risk-adjusted performance as of 10/31/17

Alpha (3 yrs.) 0.13
Sharpe ratio (3 yrs.) 0.48
Treynor ratio (3 yrs.) 5.92
Information ratio (3 yrs.) -0.08

Volatility as of 10/31/17

Standard deviation (3 yrs.) 11.66%
Beta 0.94
R-squared 0.94

Capture ratio as of 10/31/17

Up-market (3 yrs.) 99.67
Down-market (3 yrs.) 101.15

Lipper rankings as of 10/31/17

International Multi-Cap Core Percentile ranking Rank/Funds in category
1 yr. 32% 133/424
3 yrs. 54% 180/338
5 yrs. 33% 90/277
10 yrs. 62% 108/175

Morningstar ratings as of 10/31/17

Foreign Large Blend Rating Funds in category
Overall (177)
3 yrs. (593)
5 yrs. (159)
10 yrs. (341)

Distributions

Record/Ex dividend date 12/22/16
Payable date 12/27/16
Income $0.641
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 10/31/17

Ing Groep Nv 2.24%
Siemens Ag 2.18%
Bayer Ag 2.13%
Prudential 2.10%
Unilever Nv 2.08%
Total 2.02%
Orix Corp 1.91%
Airbus 1.69%
Rio Tinto 1.69%
Sony Corp 1.69%
Top 10 holdings, percent of portfolio 19.73%

Full portfolio holdings as of 09/30/17

ING GROEP NV-CVA 2.31%
BAYER AG-REG 2.30%
SIEMENS AG 2.22%
PRUDENTIAL PLC 2.10%
UNILEVER NV-CVA 2.07%
TOTAL SA 2.00%
ORIX CORP 1.86%
RIO TINTO PLC 1.73%
SANOFI 1.68%
SONY CORP 1.67%
HOYA CORP 1.64%
AIRBUS SE 1.62%
SUMITOMO MITSUI FINANCIAL GR 1.61%
CHALLENGER LTD 1.59%
SOCIETE GENERALE SA 1.56%
NSK LTD 1.54%
VALEO SA 1.54%
KOMATSU LTD 1.53%
SHIRE PLC 1.49%
BASF SE 1.46%
DANSKE BANK A/S 1.41%
LIXIL GROUP CORP 1.41%
ROHM CO LTD 1.37%
KONINKLIJKE AHOLD DELHAIZE N 1.36%
ADIDAS AG 1.33%
ASTRAZENECA PLC 1.33%
EVONIK INDUSTRIES AG 1.32%
ASSOCIATED BRITISH FOODS PLC 1.31%
CRH PLC 1.30%
WH GROUP LTD 1.30%
ENI SPA 1.29%
DIAGEO PLC 1.28%
NOKIA OYJ 1.27%
TENCENT HOLDINGS LTD 1.25%
NINTENDO CO LTD 1.23%
UNIPER SE 1.23%
ALIBABA GROUP HOLDING-SP ADR 1.22%
BERKELEY GROUP HOLDINGS/THE 1.22%
NATIXIS 1.22%
SOFTBANK GROUP CORP 1.20%
TDK CORP 1.20%
RHEINMETALL AG 1.18%
VEOLIA ENVIRONNEMENT 1.18%
COMPASS GROUP PLC 1.17%
HEINEKEN NV 1.16%
CENOVUS ENERGY INC 1.13%
CHUGAI PHARMACEUTICAL CO LTD 1.13%
COM HEM HOLDING AB 1.13%
MAGNA INTERNATIONAL INC 1.13%
BANCO MACRO SA-ADR 1.11%
HENKEL AG & CO KGAA VORZUG 1.11%
KERRY GROUP PLC-A 1.07%
RPC GROUP PLC 1.04%
NORSK HYDRO ASA 1.02%
PARTNERS GROUP HOLDING AG 1.00%
KKR & CO LP 0.99%
GRIFOLS SA-ADR 0.97%
AKZO NOBEL 0.95%
EURAZEO SA 0.95%
BARCLAYS PLC 0.93%
KION GROUP AG 0.93%
DIXONS CARPHONE PLC 0.90%
KYUDENKO CORP 0.90%
INSURANCE AUSTRALIA GROUP LTD 0.88%
VIRGIN MONEY HOLDINGS UK 0.88%
ALTICE NV - A 0.87%
TECHTRONIC INDUSTRIES CO LTD 0.85%
JAPAN AIRLINES CO LTD 0.82%
SMC CORP 0.82%
ALPHABET INC-CL C 0.81%
BANK OF IRELAND GROUP PLC 0.80%
SK HYNIX INC 0.79%
AMAZON.COM INC 0.78%
AENA SME SA 0.77%
JOHNSON CONTROLS INTERNATION 0.76%
CONSTELLATION SOFTWARE INC 0.74%
DELIVERY HERO AG 0.63%
SAMSUNG ELECTRONICS-PREF 0.56%
PIRELLI & C. SPA 0.41%
TELECOM ITALIA-RSP 0.28%
THE EURO EUR CALL ACCOUNT 0.23%
GLOBAL FASHION GRP P/P 0.03%
INDIAN RUPEE CALL ACCOUNT 0.03%
TAIWAN DOLLAR CALL ACCOUNT 0.03%
CHF/USD 12/20/2017 BCAP-FX 0.02%
CHF/USD 12/20/2017 JPMCB 0.02%
CHF/USD 12/20/2017 SSBT 0.02%
CHF/USD 12/20/2017 UBS 0.02%
GLOBAL FASHION GRP 0.02%
CHF/USD 12/20/2017 CSI-FX 0.01%
DKK/USD 12/20/2017 CITI 0.01%
GBP/USD 12/20/2017 GSFX 0.01%
GBP/USD 12/20/2017 JPMCB 0.01%
SEK/USD 12/20/2017 JPMCB 0.01%
SGD/USD 11/15/2017 JPMCB 0.01%
AUD/USD 10/18/2017 BANKAM 0.00%
AUD/USD 10/18/2017 CITI 0.00%
AUD/USD 10/18/2017 CSI-FX 0.00%
AUD/USD 10/18/2017 SSBT 0.00%
AUSTRALIAN DOLLAR ACCOUNT 0.00%
CAD/USD 10/18/2017 BANKAM 0.00%
CAD/USD 10/18/2017 CITI 0.00%
CAD/USD 10/18/2017 JPMCB 0.00%
CAD/USD 10/18/2017 WPAC 0.00%
EUR/USD 12/20/2017 CITI 0.00%
FABFURNISH GMBH P/P 0.00%
GBP/USD 12/20/2017 CITI 0.00%
HKD/USD 11/15/2017 BANKAM 0.00%
HKD/USD 11/15/2017 BCAP-FX 0.00%
HONG KONG DOLLAR CALL ACCOUNT 0.00%
ILS/USD 10/18/2017 SSBT 0.00%
JPY/USD 11/15/2017 BANKAM 0.00%
JPY/USD 11/15/2017 CITI 0.00%
JPY/USD 11/15/2017 GSFX 0.00%
JPY/USD 11/15/2017 JPMCB 0.00%
JPY/USD 11/15/2017 SSBT 0.00%
JPY/USD 11/15/2017 WPAC 0.00%
KOREAN WON CALL ACCOUNT 0.00%
KRW/USD 11/15/2017 JPMCB 0.00%
NEW BIGFOOT OTHER ASSETS GMBH P/P 0.00%
NEW MIDDLE EAST OTHER ASSETS GMBH P/P 0.00%
NOK/USD 12/20/2017 JPMCB 0.00%
NZD/USD 10/18/2017 CITI 0.00%
NZD/USD 10/18/2017 HSBCB 0.00%
POUND STERLING CALL ACCOUNT 0.00%
CNH/USD 11/15/2017 GSFX -0.01%
EUR/USD 12/20/2017 BANKAM -0.01%
EUR/USD 12/20/2017 CSI-FX -0.01%
EUR/USD 12/20/2017 HSBCB -0.01%
EUR/USD 12/20/2017 JPMCB -0.01%
GBP/USD 12/20/2017 BANKAM -0.01%
EUR/USD 12/20/2017 SSBT -0.04%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
Ing Groep Nv
Siemens Ag
Bayer Ag
Prudential
Unilever Nv
Total
Orix Corp
Airbus
Rio Tinto
Sony Corp
Holdings represent 19.73% of portfolio
Top 10 holdings as of 09/30/17
Ing Groep Nv
Bayer Ag
Siemens Ag
Prudential
Unilever Nv
Total
Orix Corp
Rio Tinto
Sanofi
Sony Corp
Holdings represent 19.94% of portfolio
Top 10 holdings as of 08/31/17
Ing Groep Nv
Bayer Ag
Unilever Nv
Prudential
Siemens Ag
Royal Dutch Shell
Orix Corp
Rio Tinto
Sony Corp
Hoya Corp
Holdings represent 20.38% of portfolio
Top 10 holdings as of 07/31/17
Ing Groep Nv
Prudential
Siemens Ag
Bayer Ag
Royal Dutch Shell
Unilever Nv
Sony Corp
Orix Corp
Hoya Corp
Rio Tinto
Holdings represent 20.40% of portfolio

Portfolio composition as of 10/31/17

Common stock 97.48%
Cash and net other assets 1.89%
Preferred stock 0.61%
Convertible preferred stock 0.02%

Equity statistics as of 10/31/17

Median market cap $22.28B
Weighted average market cap $65.76B
Price to book 1.97
Price to earnings 15.04

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. Stock prices may fall or fail to rise over time for a variety of reasons, including general financial market conditions and factors related to a specific issuer 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 10/31/17

Financials 20.21%
Industrials 14.72%
Information technology 12.16%
Consumer discretionary 11.88%
Consumer staples 11.44%
Health care 10.04%
Materials 8.54%
Energy 4.33%
Telecommunication services 2.43%
 
Other
4.25%
Utilities 2.36%
Cash and net other assets 1.89%

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 10/31/17

Japan 21.99%
United Kingdom 14.93%
Germany 13.49%
France 11.43%
Netherlands 7.59%
United States 3.47%
China 3.17%
Ireland 3.13%
Canada 2.98%
 
Other
17.82%
Australia 2.35%
Hong Kong 2.15%
Italy 1.97%
Cash and net other assets 1.89%
South Korea 1.40%
Denmark 1.30%
Sweden 1.17%
Norway 1.07%
Finland 1.04%
Switzerland 0.98%
Argentina 0.95%
Spain 0.77%
Brazil 0.74%
Luxembourg 0.04%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
Total expense ratio 1.23% 1.98% 1.98% 1.73% 1.48% 0.89% 0.79% 0.98%
What you pay 1.23% 1.98% 1.98% 1.73% 1.48% 0.89% 0.79% 0.98%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R Class R5 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 R5 Class R6 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 Index is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australasia. 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. Stock prices may fall or fail to rise over time for a variety of reasons, including general financial market conditions and factors related to a specific issuer 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.