International Equity Fund  (POVSX)

Pursuing the growth potential of overseas markets since 1991

Objective

The fund seeks capital appreciation.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $25.79
-0.27% | $-0.07
$25.86
10/18/17
$20.60
12/28/16
Historical fund price

Fund facts as of 09/30/17

Total net assets
$990.27M
Turnover (fiscal year end)
67%
Dividend frequency
Annually
Number of holdings
85
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

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.

Literature


Longevity and medical costs – education for the great unknowns
Understanding the impact of longevity and medical costs on savings requires education and a proactive approach to saving.
Why a meaningful near-term market correction is unlikely
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

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 09/30/17 3.58 % -2.38 %
YTD as of 10/19/17 24.23 % 17.09 %

Risk-adjusted performance as of 09/30/17

Alpha (3 yrs.) -0.01
Sharpe ratio (3 yrs.) 0.38
Treynor ratio (3 yrs.) 4.77
Information ratio (3 yrs.) -0.10

Volatility as of 09/30/17

Standard deviation (3 yrs.) 11.75%
Beta 0.94
R-squared 0.94

Capture ratio as of 09/30/17

Up-market (3 yrs.) 100.64
Down-market (3 yrs.) 102.36

Lipper rankings as of 09/30/17

International Multi-Cap Core Percentile ranking Rank/Funds in category
1 yr. 47% 198/421
3 yrs. 61% 209/344
5 yrs. 28% 79/282
10 yrs. 63% 114/180

Morningstar ratings as of 09/30/17

Foreign Large Blend Rating Funds in category
Overall (598)
3 yrs. (168)
5 yrs. (155)
10 yrs. (110)

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 09/30/17

Ing Groep Nv 2.31%
Bayer Ag 2.30%
Siemens Ag 2.22%
Prudential 2.10%
Unilever Nv 2.07%
Total 2.00%
Orix Corp 1.86%
Rio Tinto 1.73%
Sanofi 1.68%
Sony Corp 1.67%
Top 10 holdings, percent of portfolio 19.94%

Full portfolio holdings as of 06/30/17

BAYER AG-REG 2.31%
SIEMENS AG 2.30%
ING GROEP NV-CVA 2.29%
PRUDENTIAL PLC 2.14%
ROYAL DUTCH SHELL PLC-A SHS 2.00%
UNILEVER NV-CVA 1.93%
ORIX CORP 1.89%
SONY CORP 1.81%
CHALLENGER LTD 1.77%
SUMITOMO MITSUI FINANCIAL GR 1.73%
SANOFI 1.72%
SHIRE PLC 1.72%
RIO TINTO PLC 1.66%
HOYA CORP 1.65%
DANSKE BANK A/S 1.53%
SOCIETE GENERALE SA 1.52%
HENKEL AG & CO KGAA VORZUG 1.51%
NSK LTD 1.51%
AIRBUS SE 1.49%
VALEO SA 1.49%
KONINKLIJKE AHOLD DELHAIZE N 1.47%
KOMATSU LTD 1.45%
ASTRAZENECA PLC 1.43%
NINTENDO CO LTD 1.38%
NOKIA OYJ 1.37%
BASF SE 1.35%
LIXIL GROUP CORP 1.31%
SOFTBANK GROUP CORP 1.27%
EVONIK INDUSTRIES AG 1.25%
COMPASS GROUP PLC 1.24%
SK HYNIX INC 1.24%
ASSOCIATED BRITISH FOODS PLC 1.23%
WH GROUP LTD 1.23%
TDK CORP 1.22%
ADIDAS AG 1.20%
RWE AG 1.20%
CRH PLC 1.19%
COM HEM HOLDING AB 1.16%
ENI SPA 1.15%
VEOLIA ENVIRONNEMENT 1.15%
ALIBABA GROUP HOLDING-SP ADR 1.14%
HEINEKEN NV 1.11%
TENCENT HOLDINGS LTD 1.10%
BERKELEY GROUP HOLDINGS/THE 1.09%
NATIXIS 1.09%
CHUGAI PHARMACEUTICAL CO LTD 1.08%
ALTICE NV - A 1.07%
SECURITAS AB-B SHS 1.06%
RHEINMETALL AG 1.05%
MAGNA INTERNATIONAL INC 1.04%
BANCO MACRO SA-ADR 1.02%
KERRY GROUP PLC-A 1.02%
BARCLAYS PLC 1.01%
GRIFOLS SA-ADR 0.99%
IMPERIAL BRANDS PLC 0.99%
ORKLA ASA 0.99%
TELECOM ITALIA-RSP 0.99%
PARTNERS GROUP HOLDING AG 0.97%
ADMIRAL GROUP PLC 0.96%
KKR & CO LP 0.96%
AKZO NOBEL 0.95%
DIXONS CARPHONE PLC 0.95%
ISUZU MOTORS LTD 0.93%
RPC GROUP PLC 0.93%
WOLSELEY PLC 0.91%
ROHM CO LTD 0.89%
CENOVUS ENERGY INC 0.88%
JOHNSON CONTROLS INTERNATION 0.88%
KYUDENKO CORP 0.88%
KION GROUP AG 0.87%
TAIWAN SEMICONDUCTOR MANUFAC 0.85%
VIRGIN MONEY HOLDINGS UK 0.85%
EURAZEO SA 0.84%
AMAZON.COM INC 0.83%
ALPHABET INC-CL C 0.82%
BANK OF IRELAND 0.81%
JAPAN AIRLINES CO LTD 0.79%
NORSK HYDRO ASA 0.77%
DELIVERY HERO AG 0.54%
MATAHARI DEPARTMENT STORE TB 0.51%
THE EURO EUR CALL ACCOUNT 0.50%
JAPANESE YEN CALL ACCOUNT 0.06%
INDIAN RUPEE CALL ACCOUNT 0.03%
CHF/USD 09/20/2017 JPMCB 0.02%
CHF/USD 09/20/2017 SSBT 0.02%
CHF/USD 09/20/2017 UBS 0.02%
GLOBAL FASHION GRP 0.02%
GLOBAL FASHION GRP P/P 0.02%
JPY/USD 08/16/2017 CITI 0.02%
AUD/USD 07/19/2017 CITI 0.01%
CHF/USD 09/20/2017 BCAP-FX 0.01%
CHF/USD 09/20/2017 CSI-FX 0.01%
GBP/USD 09/20/2017 JPMCB 0.01%
JPY/USD 08/16/2017 GSFX 0.01%
JPY/USD 08/16/2017 JPMCB 0.01%
SEK/USD 09/20/2017 JPMCB 0.01%
SGD/USD 08/16/2017 JPMCB 0.01%
AUD/USD 07/19/2017 BANKAM 0.00%
AUD/USD 07/19/2017 CSI-FX 0.00%
AUD/USD 07/19/2017 SSBT 0.00%
AUSTRALIAN DOLLAR ACCOUNT 0.00%
CAD/USD 07/19/2017 BANKAM 0.00%
CAD/USD 07/19/2017 JPMCB 0.00%
CNH/USD 08/16/2017 GSFX 0.00%
DKK/USD 09/20/2017 CITI 0.00%
EUR/USD 09/20/2017 CITI 0.00%
EUR/USD 09/20/2017 GSFX 0.00%
FABFURNISH GMBH P/P 0.00%
HKD/USD 08/16/2017 BANKAM 0.00%
HKD/USD 08/16/2017 BCAP-FX 0.00%
HONG KONG DOLLAR CALL ACCOUNT 0.00%
ILS/USD 07/19/2017 SSBT 0.00%
JPY/USD 08/16/2017 SSBT 0.00%
JPY/USD 08/16/2017 WPAC 0.00%
KOREAN WON CALL ACCOUNT 0.00%
KRW/USD 08/16/2017 JPMCB 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 CITI 0.00%
NZD/USD 07/19/2017 HSBCB 0.00%
POUND STERLING CALL ACCOUNT 0.00%
SFR GROUP SA 0.00%
EUR/USD 09/20/2017 CSI-FX -0.01%
EUR/USD 09/20/2017 JPMCB -0.01%
EUR/USD 09/20/2017 SSBT -0.01%
GBP/USD 09/20/2017 BANKAM -0.01%
GBP/USD 09/20/2017 CITI -0.01%
GBP/USD 09/20/2017 GSFX -0.01%
EUR/USD 09/20/2017 BANKAM -0.02%
EUR/USD 09/20/2017 HSBCB -0.02%

Prior top 10 holdings

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
Top 10 holdings as of 06/30/17
Bayer Ag
Siemens Ag
Ing Groep Nv
Prudential
Royal Dutch Shell
Unilever Nv
Orix Corp
Sony Corp
Challenger Financial Service
Sumitomo Mitsui Financial Group
Holdings represent 20.17% of portfolio

Portfolio composition as of 09/30/17

Common stock 97.26%
Cash and net other assets 2.16%
Preferred stock 0.56%
Convertible preferred stock 0.02%

Equity statistics as of 09/30/17

Median market cap $23.35B
Weighted average market cap $63.13B
Price to book 1.86
Price to earnings 14.64

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 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 09/30/17

Financials 21.18%
Industrials 14.50%
Consumer discretionary 11.50%
Information technology 11.09%
Consumer staples 10.67%
Health care 10.54%
Materials 8.82%
Energy 4.42%
Telecommunication services 2.71%
 
Other
4.57%
Utilities 2.41%
Cash and net other assets 2.16%

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 19.93%
United Kingdom 15.39%
Germany 13.71%
France 11.76%
Netherlands 8.72%
United States 3.33%
Ireland 3.16%
Canada 2.99%
China 2.48%
 
Other
18.53%
Australia 2.47%
Cash and net other assets 2.16%
Hong Kong 2.15%
Spain 1.74%
Italy 1.67%
Denmark 1.41%
South Korea 1.35%
Finland 1.27%
Sweden 1.13%
Argentina 1.11%
Norway 1.02%
Switzerland 1.00%
Luxembourg 0.05%

Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
Total expense ratio 1.32% 2.07% 2.07% 1.82% 1.57% 0.96% 0.86% 1.07%
What you pay 1.32% 2.07% 2.07% 1.82% 1.57% 0.96% 0.86% 1.07%

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.