Non-U.S. Small Cap Equity

The strategy seeks to outperform over the long-term, by investing in high quality stocks trading below their intrinsic value.*

Strategy highlights

Inception date

March 31, 2016

Benchmark

S&P Developed ex-U.S. SmallCap Index
MSCI EAFE Small Cap Index

Total strategy assets

$260.8M

(as of October 2022)

Investment vehicles

  • Separate account

Quality companies: Seeks investments in quality small companies in developed non-U.S. markets that are trading at a discount to their long-term intrinsic value.

Disciplined process: A fundamental investment process focuses on identifying inefficiencies in three segments of the market: franchise, cyclically depressed, and transformative franchises.

Efficient portfolio construction: The strategy seeks to build a concentrated portfolio with high active share, high stock specific risk and a long-term investment horizon.

 

*No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her initial investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risks involved before deciding to invest. As with any investment, there is a potential for profit as well as the possibility of loss.

Assets may include accounts that are not reflected in the composite.

Investment team

Performance

Annualized composite performance (%) as of October 31, 2022

  MTD QTD YTD 1 Year 3 Years 5 Years Since Inception
Non-U.S. Small Cap Equity (gross) 6.02% 6.02% -28.17% -29.04% -0.03% 1.20% 4.80%
Non-U.S. Small Cap Equity (net) 5.94% 5.94% -28.68% -29.64% -0.88% 0.34% 3.91%
S&P Developed ex-U.S. SmallCap Index 4.79% 4.79% -29.24% -30.62% -1.75% -1.13% 3.21%
MSCI EAFE Small Cap Index 4.23% 4.23% -29.24% -30.28% -2.26% -1.30% 3.17%

Calendar-year composite performance (%) as of October 31, 2022

  2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Non-U.S. Small Cap Equity (gross) 15.13% 12.66% 27.81% -15.32% 36.34% -- -- -- -- --
Non-U.S. Small Cap Equity (net) 14.15% 11.69% 26.72% -16.04% 35.18% -- -- -- -- --
S&P Developed ex-U.S. SmallCap Index 9.56% 14.27% 24.66% -18.41% 32.37% -- -- -- -- --
MSCI EAFE Small Cap Index 10.10% 12.34% 24.96% -17.89% 33.01% -- -- -- -- --

Past performance is not a guarantee of future results. An investment in this strategy could lose value. Most recent month-end performance is preliminary. Returns are subject to change.

Periods less than one year are not annualized. Performance is stated in U.S. dollars and includes the reinvestment of dividends and interest.

Literature

Important disclosures

The Putnam Investments Non-U.S. Small Cap Equity Composite (the “Composite”) seeks long term capital appreciation by investing mainly in common stocks of small and midsize companies outside the U.S., including companies from emerging markets. The strategy pursues a core investment focus that seeks to minimize exposure to single factors, such as value or quality, and uses a disciplined bottom-up fundamental investment process that seeks stocks with the potential for price and earnings momentum. The Composite’s primary benchmark is the S&P Developed Ex-U.S. SmallCap Index. The secondary benchmark is the MSCI EAFE Small Cap Index. Leverage is not utilized in any account in the Composite. However, derivatives (including futures, options, forwards, and swaps) may be used for hedging and non-hedging purposes. The Composite comprises all fully discretionary accounts managed by Putnam Investments in this investment style. The Composite may include accounts with different, but largely similar benchmarks. The Composite inception date was March 31, 2016. The Composite creation date was April 13, 2016. Effective March 31, 2017, there was a portfolio manager change for this strategy. The Composite was previously named International Small Cap Core Equity.

The S&P Developed Ex-U.S. SmallCap Index comprises the stocks representing the lowest 15% of float-adjusted market cap in each developed country. It is a subset of the S&P Global BMI ex U.S., a comprehensive, rules-based index measuring global stock market performance.  

 

The MSCI EAFE Small Cap Index is an equity index which captures small cap representation across Developed Markets countries around the world, excluding the U.S. and Canada. 

Gross performance includes the deduction of transaction costs but does not include the deduction of management fees and other expenses that may be incurred in managing an investment account. A portfolio's return will be reduced by advisory and other fees. Net performance reflects the deduction of a model fee applied on a monthly basis, equal to the actual management fee incurred by a portfolio in the Composite or the highest management fee that would be charged to a prospect of the strategy, whichever is higher. The model fee may change over time. Actual advisory fees may vary among clients with the same investment strategy. The Composite includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the Composite's investment strategy. Benchmarks are generally taken from published sources and may have different calculation methodologies, pricing times, and/or foreign-exchange sources from the Composite. The effect of those differences is generally deemed to be immaterial. The securities holdings of the Composite strategy may differ materially from those of the index used for comparative purposes.